MIRA INFORM REPORT

Report Date :

11.03.2011

IDENTIFICATION DETAILS

Name :	P.T. SCHNEIDER INDONESIA
Formerly Known As :	P.T. MERLIN GERIN INDONESIA
Registered Office :	Ventura Building, 7^th Floor Jl. R.A. Kartini No. 26 Cilandak, Jakarta 12430
Country :	Indonesia
Date of Incorporation :	08 July 1988
Com. Reg. No.:	No. AHU-AH.01.10-05429
Legal Form :	Limited Liability Company
Line of Business :	Manufacturing of Distribution/Connection Accessories of Electricity Components and Sub Assemblies and Electronic Components, including Services for Installation and Maintenance Products

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 9,650,000
Status :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Indonesia	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Name of Company

P.T. SCHNEIDER INDONESIA

Address

Head Office

Ventura Building, 7^th Floor

Jl. R.A. Kartini No. 26

Cilandak, Jakarta 12430

Indonesia

Phones - (62-21) 750 4406 (hunting)

Fax - (62-21) 7504415 - 6

Building Area - 22 storey

Office Space - 260 sq. meters

Region - Commercial

Status - Rent

Factories

a. East Java Industrial Park (EJIP) Plot 4 B1-B-2

Lemahabang, Bekasi 17550

Cikarang, West Java

Indonesia

Phones - (62-21) 897 0203-8

Fax - (62-21) 897 0209, 897 0085

Land Area - 48,110 sq. meters

Building Space - 12,965 sq. meters

Region - Industrial Estate

Status - Rent

b. Jalan Pulo Buaran Raya Blok III EE Kav. 2-3-6

Kawasan Industri Pulogadung

Jakarta 13260

Indonesia

Phone - (62-21) 245 75700 (Hunting)

Fax - (62-21) 468 26942

Land Area - 6,900 sq. meters

Building Space - 2,200 sq. meters

Region - Industrial Estate

Status - Rent

Date of Incorporation :

a. 08 July 1988 as P.T. MERLIN GERIN INDONESIA

b. 01 December 1993 as P.T. SCHNEIDER INDONESIA

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

Company Reg. No. :

The Ministry of Laws and Human Rights

a. No. C-21838.HT.01.04.TH.2002

Dated 08 December 2002

b. No. AHU-100632.AH.01.02.Tahun 2008

Dated 30 December 2008

c. No. AHU-AH.01.10-05429

Dated 04 March 2010

Company Status :

Foreign Investment Company (PMA)

Permit by the Government Department :

The Department of Finance (Tax License)

NPWP No. 01.061.747.0-092.000

The Capital Investment Coordinating Board

a. No. 68/I/PMA/1988

Dated 04 July 1988

b. No. 44/II/PMA/1994

Dated 18 March 1994

c. No. 35/II/PMA/1999

Dated 02 March 1999

Related Companies :

A Member of the SCHNEIDER Group of France

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - US$. 3,000,000.- (Rp. 5,037,000,000)

Issued Capital - US$. 3,000,000.- (Rp. 5,037,000,000)

Paid up Capital - US$. 3,000,000.- (Rp. 5,037,000,000)

Shareholders/Owners :

a. SCHNEIDER ELECTRIC INDUSTRIES SAS - US$. 2,850,000.-

Address: 89 Boulevard Franklin Roosevelt

92500 Rueil Malmai

France

b. ELECTRO PORCELAINE SAS - US$. 150,000.-

Address: 2 Chemin Des Sources

38240 Meylan

France

BUSINESS ACTIVITIES

Lines of Business :

Manufacturing of Distribution/Connection Accessories of Electricity Components and Sub Assemblies and Electronic Components, including Services for Installation and Maintenance Products

Production Capacity :

a. MV Metal Enclosed Switchgears - 10,000 units p.a.

b. MV Metal Clad Switchgears - 5,000 units p.a.

c. LV Distribution Panels - 4,000 units p.a.

d. LV Miniature Circuit Breakers - 9,000,000 poles p.a.

Total Investment :

a. Equity Capital - US$ 3.0 million

b. Reinvested Profit - US$ 8.8 million

c. Loan Capital - US$ 29.2 million

d. Total Investment - US$ 40.0 million

Started Operation :

1988

Brand Name :

MERLIN GEERIN, SQUARE-D and TELEMECANIQUE

Technical Assistance :

SCHNEIDER ELECTRIC INDUSTRIES SAS of France

Number of Employee :

710 persons

Marketing Area :

Domestic - 95%

Export - 15%

Main Customers :

a. PT. Pertamina

b. PT. Chevron Pacific Indonesia

c. PT. ConocoPhilips Indonesia

d. PT. Total Indonesia

e. PT. Perusahaan Gas Negara (PGN)

f. PT. Kaltim Methanol Indonesia

g. PT. Chiyoda Indonesia

h. PT. Nestle Indonesia

i. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ASATA UTAMA ELECTRIC

b. P.T. INTIMUARA ELECTRINDO

c. P.T. PANELINDO MAKMUR SENTOSA

d. P.T. SIEMENS INDONESIA

e. P.T. GIKOKO KOGYA INDONESIA

f. P.T. METRO ABDIBINA SENTOSA

g. P.T. SINAR ELEKTRONIKA

h. P.T. UNILEC INDONESIA

i. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

Mandiri Plaza

Jalan Jend. Gatot Subroto Kav. 36-38

Jakarta Selatan

Indonesia

b. ABN AMRO BANK N.A.

ABN AMRO Building

Jalan Ir. H. Juanda No. 23-24

Jakarta Pusat

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2007 – Rp. 510.0 billion

2008 – Rp. 550.0 billon

2009 – Rp. 620.0 billion

2010 – Rp. 695.0 billion

Net Profit (estimated) :

2007 – Rp. 23.0 billion

2008 – Rp. 24.7 billion

2009 – Rp. 27.8 billion

2010 – Rp. 31.2 billion

Payment Manner :

Almost Promptly

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Stuart John Thorogood

Director s - a. Mr. Michael Christopher Bennett

b. Mr. Rijanto Mashan

Board of Commissioners :

President Commissioner - Mr. Eric Hendri Edouard Rondolat

Commissioner - Mrs. Brigitte Veronique Blanc

Signatories :

President Director (Mr. Stuart John Thorogood) or one of Directors (Mr. Michael Christopher Bennett or Mr. Rijanto Mashan) which must be approved by the Board of Commissioners (Mr. Eric Hendri Edouard Rondolat and Mrs. Brigitte Veronique Blanc)

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

Credit Risk :

Below Average

Credit Recommendation :

Credit should be proceeded normally

Proposed Credit Limit :

Moderate amount

Maximum Credit Limit :

US$ 9,650,000.- on the 90 days of payments

OVERALL PERFOMANCE

Initially named P.T. MERLIN GERIN INDONESIA, it was established in July 1988 with an authorized capital of US$ 3,000,000.- entirely was issued and paid up. The original founding shareholders were P.T. OMETRACO of Indonesia and MERLIN GERIN S.A. of France. The company's notarial act has frequently been revised. In December 1993 the company was renamed P.T. SCHNEIDER INDONESIA (P.T. SI), and in December 2000 the whole shares had been controlled by SCHNEIDER ELECTRIC INDUSTRIES SAS (95%) and ELECTRO PORCELAINE SAS (5%), both of France. The Articles of Association amendment was approved by the Minister of Law and Human Rights of the Republic of Indonesia by virtue of Decision Letter No. AHU-100632.AH.01.02.Year 2008 dated December 30, 2008 and No. AHU-AH.01.10-05429 dated 04 March 2010.

P.T. SI obtained a Foreign Capital Investment (PMA) license in the manufacturing of electrical equipment for various use. The has been operating since 1988 in electrical device manufacturing industry, such as Low voltage Distribution Panel, Motor Control Center, Control Panel, Medium Voltage (Primary & Secondary) Distribution Panel, Miniature Circuit Breaker, Retrofit and Retrofill solution. Its plant is located at EJIP estate Plot 4B1-B2, Lemahabang, Cikarang, Bekasi, West Java. Factory has up to 48,110 sq. meters land area consist o f 9,675 sq. meters factory area and 3,290 sq. meter office area. The electrical devices produced by the company are known with various brands like Merlin Gerin, Square D and Telemecanique. The Merlin Gerin product specializes in electrical energy protection from low voltage to extra high voltage system. Square D specializes in electrical distribution and control, and Telemecanique specializes in industrial control. The above products are marketed locally to PT. Pertamina, PT. Chevron Pacific Indonesia, PT. conocoPhilips Indonesia, PT. Total Indonesia, PT. Perusahaan Gas Negara (PGN), etc. Some 15% of the products are exported to China, Taiwan, Philippines, Japan, Vietnam, Brunei, Thailand, Korea, Myanmar, Qatar, India and others. Besides, the company also provides the services of engineering and assembling of low-medium voltage panel, after sales service (spare parts, maintenance contract revision, retrofit, modification and at once giving technical training.

In December 2010, P.T. SI taking over all assets of P.T. AREVA T&D, an electrical panel manufacturing with its plant located at Jl. Pulo Buaran Raya Blok III EE Kav. 2-3-6, Kawasan Industri Pulogadung, East Jakarta. The company’s plant produces electrical equipments like air insulated switchgears, capacitors, circuit breakers, generator circuit breakers, controls, monitoring systems, facts, fuses, instrument transformers, LV switch boards, measuring, recording products, protection relay, substation automation, transformators and others. Mrs. Ekawati, a staff of the company said that some 80% of the company’s products are marketed to various companies like PT. Indonesia Power, PT. Perusahaan Listrik Negara (PLN), PT. Pertamina, PT. Chevron Pacific Indonesia and other electrical contracting companies in major cities in the country while the rest is exported to Asian and European countries. We observe that P.T. SI belongs to a large-sized of its kind and the operation had been growing within the last five years.

Other Facilities of Schneider Electric in Indonesia is PT. Schneider Electric Manufacturing Batam located in Batamindo Industrial Park with land space 320 hectares and factory space 585,446 sq. meters. Schneider Electric Manufacturing Batam electromechanic Plant start operating in August 1991 (the products such as contactors, relays, auxiliaries, push button, pilot light, beacons, limit switches), while the Electronic Plant start operating in June 2007 (the products such as inductive & photo-electric sensors, timer, measurement relays, distributed I/O, safety module, drives, HMI).

The factory mainly supplies Schneider Electric products to Indonesia, USA, Japan, Singapore, Hong Kong and France. This factory is ISO 9001:2000, ISO 14001 and OHSAS 1800 CERTIFIED.

Generally we find the demand for electrical equipment and components has been increasing in the last five years. Planning electricity in Indonesia could barely be carried out by simply having national consideration. Observing merely the figures at the national level could even ‘deceive’ us. There is a prominent difference of those figures in Java-Bali, and western and eastern parts of Indonesia. So, if we only see about the average national figures, it will really deceive us, because its misleads the planning, goes out of needs fulfillment, and misinforms the investors who make long term investment planning.

Java and Bali alone have absorbed 60 percent of electricity in Indonesia. The power covering Java-Bali in early January 2010 hit the highest point at 17,000 MW. The power capacity across the nation is only 28,000 MW. Such figures will be very misleading if we make the average of national figures. The current establishment of directorates for the western and eastern parts of Indonesia in the boards of directors of PT. PLN is to adjust with the actual needs in the fields. Planning nationwide electricity will bring about such imbalance bigger that eventually will jeopardize the national security. It might even be considered that the ideal national average figures in fact leave serious problems in major parts of the other regions of Indonesia. (Source: Dahlan Iskan, President Director of State Electricity Company (PLN). Business position of P.T. SI is quite well for it has controlled customers and wide marketing network in major cities in the country.

Until this time P.T. SI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management is financially not transparent and rejected to disclose its financial condition, but we estimated the total sales turnover in 2008 amounted to Rp 550.0 billion increased to Rp 620.0 billion in 2009 rose again to Rp. 695.0 billion in 2010 and estimated will be higher by about 30% in 2011. P.T. SI’s operation in 2010 yielded a total net profit of about Rp 31.2 billion, with a total net worth of Rp 320.0 billion. We did not hear that the company has been black listed by Central Bank (Bank Indonesia) and having detrimental cases being settled in the courts.

Since February 2010, the management is headed by Mr. Stuart Jon Thorogood (53) replace Mr. Khoo Siang Tee (55) as President Director. Mr. Thorogood is a professional manager from New Zealand with experience for some 20 years in this business. In daily operation he is assisted by two directors namely Mr. Michael Christopher Bennett (54) of Hong Kong and Mr. Rijanto Mashan (47) of Indonesia. The management, which is evaluated quite creative and dynamic, also has succeeded in expanding their overseas marketing network. We consider the management is quite capable of further developing business in the future. They have close relations with many high-ranking government officials as well as with private businessmen within and outside the country. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. We believe that P.T. SCHNEIDER INDONESIA is appraised fairly good for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.11
UK Pound	1	Rs.72.91
Euro	1	Rs.62.56

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	Capability to overcome financial difficulties seems comparatively below average.	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
--	NB	New Business	--

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.