MIRA
INFORM REPORT
|
Report Date : |
04.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
P.T. BAT INDONESIA TBK. |
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Registered Office : |
Plaza MANDIRI,
25th Floor, Jl. Jend. Gatot Subroto Kav. 36-38, Jakarta 12190 |
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Country : |
Indonesia |
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Date of Incorporation : |
7 August 1917 |
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Legal Form : |
Public Listed Company |
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Line of Business : |
White Cigarette Manufacturing (including
Tobacco Processing) Vanilla and Ginger Processing Industry Investment Holding |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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Maximum Credit Limit : |
US$ 12.0 million |
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Status : |
Moderate |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
Name of Company
P.T. BAT INDONESIA TBK.
Address
Head Office
Plaza MANDIRI, 25th
Floor
Jl. Jend. Gatot
Subroto Kav. 36-38
Jakarta 12190
Indonesia
Phone - (62-21) 5268388
(hunting)
Fax. - (62-21) 5268389
P.O. Box - 1078 Jakarta
10010
Building Area - 32 storey
Office Space - 500 sq. meters
Region - Commercial
Building
Status - Rent
Factories
a. White Cigarette Mfg.
Jalan Pabean No.1
Cirebon, West Java
Indonesia
b. Vanilla and Ginger Processing
Desa Ngempon
Kec. Klepu – Semarang
Central Java
Date of Incorporation
- 7 August 1917
as NV. INDO-EGYPTIAN Cigarette Company
- In 1923 as
British American Tobacco Company (Java) Ltd.
- In 1949 as
Brits-Americaanse Tabak Fabricage Maatschappij (Indonesie), NV.
(British-American Tobacco Manufacturers
(Indonesia) Limited
d. In
1979 as P.T. BAT INDONESIA
- 12 October
1997 as P.T. BAT INDONESIA Tbk.
Legal Form
P.T. Tbk.
(Perseroan Terbatas Terbuka) or Public Listed Company
Company Reg. No.
The Ministry of Justice and Human Rights
No.
C-05107.HT.01.04.TH.2001
Dated 7 August
2001
Company Status
Foreign Investment Company
Permit by the
Government Department
The Capital Investment Coordinating Board
- No. 18/II/PMA/1979
Dated 9August 1979
- No. 239/II/PMA/1996
Dated 13 November 1996
- No. 1718/III/1999
Dated 24 December 1999
- No. 160/II/PMA/2002
Dated 31 July 2002
The Department of Industry and Trade
- No. 539/DJAI/IUT-I/PMA/IV/82
Dated 21 April 1982
- No. 372/DJAI/IUT-1/PMA/VII/1987
Dated 16 July 1987
- No. 703/T/Industri/1996
Dated 31 October 1996
- No. 285/T/Industri/2001
Dated 16 July 2001
The Department of Finance
NPWP No.
01.000.164.2-092.000
Related Company
- BRITISH-AMERICAN TOBBACO (Investments) Ltd., of U.K.
- The BAT Group Member
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital
: Rp. 88,000,000,000.-
Issued Capital : Rp. 66,000,000,000.-
Paid up Capital : Rp. 66,000,000,000.-
Shareholders/Owners :
a. British-American Tobacco (Investments) Ltd. - Rp. 46,933,530,000.- (71.11%)
b. The Publics -
Rp. 19,066,470,000.- (28.89%)
BUSINESS ACTIVITIES
Lines of Business:
- White
Cigarette Manufacturing (including Tobacco Processing)
- Vanilla and
Ginger Processing Industry
- Investment
Holding
Production Capacity
a. White Cigarettes -
19.2 billion sticks p.a.
b. Tobacco Processed -
10,000 tons p.a.
c. Vanilla Processed -
66.7 tons p.a.
d. Ginger Processed -
7,500 tons p.a.
Total Investment
a. Equity Capital - Rp. 66.0 billion
b. Loan Capital - Rp. 20.0 billion
c. Total Investment - Rp. 86.0 billion
Started Operation
1917 when it was
named NV. INDO-EGYPTIAN CIGARETTE Co.
Brand Name
a. LUCKY STRIKE
b. DUNHILL
c. ARDATH
(inactive)
d. KENT (inactive)
e. COMMODORE
(inactive)
Technical Assistance
BAT Industries Ltd., of United Kingdom
Number of Employee
2,450 persons
Marketing Area
Domestic - 90%
Export - 10%
Main Customer
a. Supermarkets
b. Shops, etc.
Market Situation
Very Competitive
Main Competitors
a. P.T. PHILIP
MORRIS INDONESIA
b. P.T. HM
SAMPOERNA Tbk.
c. P.T. GUDANG
GARAM Tbk.
d. P.T. DJARUM
e. Etc.
Business Trend
Fluctuating
BANKER, AUDITOR &
LITIGATION
Banker :
P.T. Bank MANDIRI Tbk.
Wisma Bank Mandiri
Jalan Jend. Gatot Subroto Kav. 36-38
Jakarta Selatan
Indonesia
Auditor :
Haryanto Sahari & REkan (a member firm of PricewaterhouseCooper)
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Gross Sales/Turnover :
2004 – Rp. 1,364.3
billion
2005 – Rp. 1,510.4
billion
2006 – Rp. 1,372.1
billion
Net Profit (Loss)
:
2004 – (Rp. 20.4 billion)
2005 – Rp. 19.1 billion
2006 – (Rp. 62.1
billion)
Payment Manner
Average
Financial Comments
Weak
KEY EXECUTIVES
Board of Management :
President Director - Mr. Ian Thomas Morton
Directors - a. Mr. Masudil Badri
b. Mr. Lekir Amir Daud
c. Mr. Mark Drain
d. Mr. Wahyu Indrawanto
Board of Commissioner :
President Commissioner - Mr. Frans Seda
Independent Commissioners - a. Mr. Subarto Zaini
b.Mr.
Djoko Moeljono
Commissioner - Mr. Stuart Damon Brazier
Signatories :
The President Director (Mr. Ian Thomas
Morton) or one of the Directors (Mr.
Masudil Badri, Mr. Lekir Amir Daud, Mr. Mark Drain or Mr. Wahyu Indrawanto)
which must be approved by the Board of Commissioner (Mr. Frans Seda)
CAPABILITIES
Management Capability :
Good
Business Morality
Good
Credit Risk
Average
Credit Recommendation
Credit should be proceeded with monitor
Proposed Credit
Limit
Small amount – periodical review
Maximum Credit Limit
US$ 12.0 million on the 90 days of payments
OVERALL PERFOMANCE
The company is an old business organization established in
1917 in Jakarta, then named NV. INDO-EGYPTIAN CIGARETTES Coy. In 1923 the
company’s name was changed to BRITISH AMERICAN TOBACCO MANUFACTURERS
(INDONESIA) Ltd. In 1949 the company’s name was changed again to
BRITS-AMERICAANSE TABAK FABRICAGE MAATSCHAPPIJ (Indonesie) NV., and in 1979 its
name was changed again to P.T. BAT INDONESIA. Its authorized capital at that
time amounted to Rp 22,000,000,000.- and its issued capital at Rp
15,400,000,000.- Its shares were then entirely controlled by The British
American Tobacco Industries Ltd., of the United Kingdom. In 1980 its authorized
capital was fully issued and paid up. On this occasion the company went public,
selling 30% of its shares to the public. In 1997 the company was renamed P.T.
BAT INDONESIA Tbk., (P.T. BIT) or publicly listed company.
The latest in August 2001, the authorized capital was raised to Rp. 88,000,000,000.- and its issued and paid up capital at Rp. 66,000,000,000. The deed of amendment was made by Mrs. Kartini Mulyadi SH., a public notary in Jakarta, under Company Registration Number C-05107.HT.01.04.TH.2001, dated August 7, 2001. P.T. BIT is a member of th BAT Group, a large busness group based in the UK.
P.T. BAT acquired a Foreign Investment (PMA) license for dealing with white cigarettes manufacturing and Investment holding whose plant has started with operation since 1919. It operates two factories which are respectively located in Cirebon (West Java) for white cigarette manufacturing and in Semarang (Central Java) for vanilla and ginger processing industry. P.T. BI has underwent several expansion for increasing its total production capacity. Its current total installed production capacity are listed under page 3 of this report. The company produces white cigarettes with many international brands and local as well. Some of its most popular brands are LUCKY STRIKE and DUNHILL. Its business has also in 1989 diversified into agribusiness particularly in cultivating of vanilla, ginger and others.
In the investment
holding, P.T. BIT controls 99.99% shares of P.T. BAT KAREB, a Foreign Capital Investment (PMA) company
dealing into a manufacturer of cigarettes.
The subsidiary currently focuses solely on tobacco drying. P.T. BAT KAREB would start with an initial
production of about 590 million cigarettes next year, expandable to 5.58 billion
cigarettes by 2015. The project would
cost Rp. 23.85billion comprising Rp. 6.0 billion in initial working capital,
Rp. 13.2 billion for the conversion of the tobacco-drying facility into a
production plant, and R. 4.65 billion in additional working capital to increase
production and sales.
In overall we
find the clove cigarette industries kept on rising and nothing wrong with the
prolonged economic crisis occurred in the country since mid-1997 because they
used mostly local contents. While white cigarette industries slowed down since
mid-1997 due to a small amount of local product is used and mostly under the
license of foreign companies. The
cigarette industries will keep going down within the coming two years.
Competition is very tight as there are
73 cigarette producers operating in the country. In 2004 the most leading
producers are P.T. GUDANG GARAM Tbk., of 30.25% market segment, P.T. HM
SAMPOERNA Tbk., of 20.91% market segment, P.T. DJARUM of 18.26% market segment,
P.T. BENTOEL PRIMA of 1.93% market
segment, P.T. NOYORNO of 2.79% market segment, P.T. PHILLIP MORRIS
INDONESIA of 3.91% market segment, P.T.
BAT INDONESIA of 2.54% market segment and the rest is controlled by other small
producers. It is seen from the table
below :
Development of Cigarette Production
in Indonesia
(in million sticks)
|
No. |
Cigarette Producers |
2003 |
2004 |
|
1. |
P.T. Gudang
Garam Tbk. |
63,290 |
64,731 |
|
2. |
P.T. HM
Sampoerna Tbk. |
35,558 |
42,594 |
|
3. |
P.T. Djarum |
36,285 |
39,066 |
|
4. |
P.T. Bentoel
Prima |
3,865 |
4,138 |
|
5. |
P.T. Noyorono |
3,775 |
5,974 |
|
6. |
P.T. Phillip
Morris Indonesia |
9,103 |
8,370 |
|
7. |
P.T. BAT
Indonesia |
5,553 |
5,426 |
|
8. |
Rokok Putih
(others white cigarettes) |
3,406 |
4,000 |
|
9. |
Rokok Kretek
(others clove cigarettes) |
33,127 |
39,673 |
|
10. |
Total |
193,962 |
213,972 |
Source
: GAPPRI (Gabungan Produsen
Pengusaha Rokok Indonesia)
Sharp rupiah depreciation
against hard foreign currencies has bad impact to the company operation because
the demand of product and purchasing power diminished sharply while the selling
prices increased significantly, Sharp rupiah depreciation followed by high
local bank interest rate caused the operation cost to soar highly. According to the company financial report,
its sales turnover in 2004 reached Rp. 1,364.3 billion with a net loss Rp. 20.4
billion, increased to Rp. 1,510.4 billion with a net profit of Rp. 19.1 billion
in 2005 and declined to Rp. 1,372.1
billion with a net loss of Rp. 62.1 billion in 2006. Its financial report of 31 December 2004, 2005 and 2006 is
attached herewith.
The management is headed by Mr. Ian Thomas Morton, a
professional manager of the UK. He is assigned by the BRITISH AMERICAN TOBACCO
LTD.,to lead and develop the company in Indonesia. He is assisted by Mr. Masudil Badri, Mr. Lekir Amir Daud, Mr.
Mark Drain and Mr. Wahyu Indrawanto, respectively as director. The management
is also suspported by a number of professional managers both local and
expatriate. They have maintained a wide business relation among private
businessmen at home and abroad as well as among government agencies.
Considering the company’s operation is losses (2004 & 2006) and unstable economic condition in the country, recommend to treat extra prudently in extending any new loans to P.T. BAT INDONESIA Tbk.
Attachment :
FINANCIAL STATEMENT OF P.T. BAT INDONESIA Tbk.
Per 31
December 2004, 2005 and 2006
A. BALANCE SHEETS
STATEMENT
(in Rp million)
|
D e s c r i p t i o n |
31 December |
||
|
2006 |
2005 |
2004 |
|
|
A. Current
Assets |
|
|
|
|
- Cash and Cash Equivalent |
12,806 |
108,460 |
28,193 |
|
- Trade Receivable |
|
|
|
|
* Third Parties |
39,364 |
20,978 |
15,727 |
|
* Related parties |
632 |
9,247 |
4,200 |
|
- Other Receivable |
|
|
|
|
* Third Parties |
21,387 |
8,589 |
6,972 |
|
- Inventories |
327,344 |
314,897 |
411,373 |
|
- Prepaid Taxes |
18,108 |
40,879 |
49,436 |
|
- Prepayment |
5,276 |
11,315 |
8,998 |
|
- Other Current Assets |
- |
- |
890 |
|
Total Current Assets |
424,917 |
514,365 |
525,789 |
|
B. Non Current
Assets |
|
|
|
|
- Accounts due from
related parties |
341 |
383 |
3,915 |
|
- Fixed Assets |
138,494 |
143,408 |
138,980 |
|
- Deferred Tax Assets |
21,330 |
- |
3,901 |
|
- Deferred Charges |
1,250 |
1,332 |
552 |
|
- Prepayments |
654 |
1,178 |
370 |
|
- Goodwill |
3,856 |
- |
- |
|
- Other Assets |
21,121 |
21,121 |
26,100 |
|
Total Non Current Assets |
187,046 |
167,422 |
173,818 |
|
TOTAL ASSETS |
611,963 |
681,787 |
699,607 |
|
C. Current
Liabilities |
|
|
|
|
- Short term Borrowings |
|
|
|
|
* Third Parties |
19,000 |
3,500 |
- |
|
- Trade Payable |
|
|
|
|
* Third Parties |
33,883 |
8,477 |
30,030 |
|
* Related Parties |
6,835 |
3,209 |
938 |
|
- Tax Payable |
3,857 |
1,995 |
4,429 |
|
- Tobacco Excise Payable |
132,776 |
174,049 |
137,817 |
|
- Accrued Expenses and
Estimated Liabilities |
33,032 |
37,917 |
55,867 |
|
- Prevision for employee benefit |
- |
- |
6,214 |
|
- Advance Received |
3,524 |
6,919 |
33,800 |
|
- Other Current
Liabilities |
739 |
875 |
1,723 |
|
Total Current Liabilities |
233,646 |
236,961 |
271,543 |
|
D. Non Current
Liabilities |
|
|
|
|
- Amounts due to related
parties |
4,846 |
3,702 |
14,587 |
|
- Deferred Tax Liabilities |
- |
1,781 |
- |
|
- Provision for employee
benefit |
22,500 |
20,575 |
14,832 |
|
Total Non Current
Liabilities |
27,346 |
26,058 |
29,419 |
|
- Minority Interests |
|
5,674 |
5,358 |
|
Equity |
|
|
|
|
- Issued and Paid up Capital |
66,000 |
66,000 |
66,000 |
|
- Additional Paid in
Capital-net |
208,722 |
208,722 |
208,722 |
|
- Statutory Reserve |
13,200 |
13,200 |
13,200 |
|
- Fixed Assets Revaluation
Reserve |
1,952 |
1,952 |
1,952 |
|
- Difference in value of restructuring transaction among
entities under common control |
125,190 |
125,190 |
125,190 |
|
- Other Comprehensive
Losses |
- |
- |
(725) |
|
- Accumulated Losses |
(64,093) |
(1,970) |
(21,052) |
|
Total Equity (Deficit Equity) |
350,971 |
413,094 |
393,287 |
|
TOTAL LIABILITIES & DEFICIT EQUITY |
611,963 |
681,787 |
699,607 |
B. PROFIT &
LOSS STATEMENT
|
D e s c r I p t I o n |
31 December |
||
|
2006 |
2005 |
2004 |
|
|
INCOME STATEMENT |
|
|
|
|
a. Gross Sales |
1,372,102 |
1,510,386 |
1,364,299 |
|
b. Tobacco Excise and VAT |
(862,361) |
(857,858) |
(790,873) |
|
c. Net Sales |
509,741 |
652,528 |
573,426 |
|
d. Cost of Goods Sold |
(315,586) |
(401,272) |
(313,378) |
|
e. Gross Profit |
194,155 |
251,256 |
260,043 |
|
f. Operating Expenses |
|
|
|
|
* Selling and Distribution
Expenses |
(176,414) |
(168,252) |
(148,261) |
|
* General and
Administration Expenses |
(100,143) |
(91,196) |
(95,864) |
|
h. Operating Profit (Loss) |
(82,402) |
(8,192) |
(27,307) |
|
i. Non-operating (expense)
Income net |
(253) |
38,334 |
100 |
|
j. (Loss) Income before income tax |
20,532 |
(10,744) |
6,691 |
|
k. Minority Interest in net loss of subsidiary |
- |
(316) |
115 |
|
l. Net (loss) Income |
(62,123) |
19,082 |
(20,401) |
Remarks : a. In 2004, 2005 and 2006 audited by Public
Accountant Haryanto Sahari & Rekan
==== ++++
====
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)