Transformation of SOE Ministry Annual Report 2020
CHAPTER 1 2 3 4
HEALTH
5
6 7
SOE PORTFOLIO & CONSOLIDATED FINANCIAL PERFORMANCE REVIEW
Assets Composition of Health Cluster- 31 December 2020
100%
0%
2020 Milestones
> Establishment of Pharmaceutical Holding
> Provision of COVID-19 vaccines in cooperation with
several partners such as Sinovac
> Provision of medications, supplements, and
health equipment needed to address COVID-19,
such as Remdesivir, Oseltamivir, Chloroquine,
Hydrochloroquin, Azithromicyn, vitamins, COVID PCR
Kit (mBioCov), BioVTM, rapid tests, masks, and hand
sanitizers
Bio
Inuki
Financial Parameter
Rp Billion
>
2020
2019
Revenue
14,375
Operating Income
827
EBITDA
1,188
EBIT
810
NOPAT
1,002
Net Profit
276
13,353
899
1,202
870
986
359
Assets
Invested Capital
32,731 27,703
27,179 23,909
(A + B)
>
A. Financing
11,351
9,833
Liabilities
Current
8,373
Non Current
B. Capital
6,391
2,977
3,442
15,828 14,077
Financial Performance Indicators
Operating Margin
5.8%
6.7%
EBITDA Margin
8.3%
9.0%
Net Margin
1.9%
2.7%
ROA
0.8%
1.3%
ROE
1.7%
2.6%
>
ROIC
3.7%
4.1%
Gearing Ratio & Capital Structure
2020 Performance Analysis
The pandemic made several export destination
countries impose lockdowns and public activity
restrictions, which resulted in clinical trial delays
and a declining number of patient visits to
health facilities. However, Bio Farma continued
to play a fully active role in preparing vaccines,
medications, health equipment, distribution,
and health facilities such as pharmacies and
services, as an effort to support the government
in mitigating the COVID-19 pandemic. On
production utilization, the increase can be seen
on production of vaccines and medications,
particularly those related to the COVID-19, such
as anti-viral drugs, supplements, and vitamins.
To that end, revenue of Health Cluster remained
increase in 2020, which rose by 7.7% to Rp14.4
trillion. This was mainly due to the growth of
sales recorded by Bio Farma's subsidiary, Kimia
Farma, from its pharmacy business segment.
> However, the Health Cluster recorded a 23%
decline in net profit for the year to Rp276 billion
from Rp359 billion in the previous year due to a
4.6% increase in operating expense from Rp4.1
trillion to Rp4.3 trillion and a 13.1% increase in
non-operating expense from Rp381 billion to
Rp431 billion.
>
Assets & Liabilities
On financial structure, debt to EBITDA ratio and
debt to invested capital ratio in 2020 stood at
9.6x and 41.8%, respectively.
The fairly high solvency ratio was due to business
expansion in the previous years, particularly at
Kimia Farma with the openings of pharmacies
across Indonesia, the construction of a new
production facility in Banjaran, and the
acquisition of the majority stake in Phapros to
Debt to Invested
41.8%
41.1%
Capital
Debt to EBITDA
9.6x
8.2x
EBITDA to Interest
1.6x
1.9x
Coverage
become a subsidiary of Kimia Farma.
Composition of Manpower
2020 by:
48%
Gender
14,103
O
38%
Male
Female
Education
52%
59%
O
3%
14,103
≤D3
Bachelor Degree
Post Graduates
Age
1%
14,103
18%
<45
45-55
>55
81%
MINISTRY OF STATE-OWNED ENTERPRISES
DANAREKSA-PPA
Assets Composition of Danareksa-PPA Cluster - 31 December 2020
7%
6%
5%
17%
25%
40%
Investment Restructuring
Industrial Utility
Construction Estate
Services
Other
Industrials
2020 Milestones
ANNUAL REPORT 2020
> Issuance of the Special Power of Attorney to PT PPA
in regards to future SOEs joining the Holding to take
actions that are the authorities and/or rights of the
Shareholders
› SEP to PT Kawasan Industri Wijayakusuma for its
subsidiary, PT Kawasan Industri Terpadu Batang
Financial Parameter
2020 Performance Analysis
>
Rp Billion
2020
2019
Revenue
12,409
Operating Income
EBITDA
EBIT
NOPAT
Net Profit
-96
915
27
-284
-1,306
17,079
1,089
2,045
1,199
989
146
>
Assets
Invested Capital
(A + B)
44,604 45,523
23,515
25,074
A. Financing
23,813 22,530
Liabilities
Current
Non Current
B. Capital
15,213 14,914
8,600 7,616
-298
2,543
>
Danareksa-PPA Cluster was established by the
Ministry of SOE to accommodate two SOES
categories, namely a) the SOEs group with
positive performance, however in small volume
and/or its value chains cannot be combined
with other clusters, and b) the SOES group
under restructuring due to the weak financial
conditions. Overall, the performance of SOES
group under restructuring were negative due to
the COVID-19 pandemic.
This was reflected from the consolidated financial
condition of Danareksa-PPA Cluster that reported
a 27.3% decrease of total revenue in 2020,
whereas operating expenses and financing
expenses cannot be reduced. This resulted in
net loss of Rp1.3 trillion in 2020 by this Cluster's
portfolio.
On financing structure, as most of this clusters
consisted of SOES with significant restructuring,
the debt to invested capital ratio was posted
far above the maximum target of the Ministry
of SOE.
Financial Performance Indicators
Composition of Manpower
2020 by:
Gender
17,815
17%
>
Operating Margin
-0.8%
6.4%
EBITDA Margin
7.4%
12.0%
Net Margin
-10.5%
0.9%
ROA
-2.9%
ROE
438.8%
ROIC
-1.2%
0.3%
5.7%
3.9%
The largest loss in this Cluster was primarily
recorded by PT Dok & Perkapalan Kodja
Bahari (Persero), PT Merpati Nusantara Airlines
(Persero), and PT Barata Indonesia (Persero)..
The restructuring process and/or liquidation will
be continued for these companies, in which
restructuring implementation will be carried out
in 2021.
44%
9%
Gearing Ratio & Capital Structure
Debt to Invested
101.3% 89.9%
Capital
Debt to EBITDA
26.0x
11.0x
EBITDA to Interest
Coverage
0.9x
2.4x
72
RESILIENCE AMIDST UNCERTAINTY
RESILIENCE AMIDST UNCERTAINTY
10%
Male
Female
Education
83%
47%
17,815
≤D3
Bachelor Degree
Post Graduates
Age
17,815
35%
<45
45-55
>55
55%
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