MIRA INFORM REPORT

 

 

Report Date :

25.07.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. GOODYEAR INDONESIA TBK

 

 

Formerly Known As :

P.T. GOODYEAR INDONESIA

 

 

Registered Office :

Jalan Pemuda No. 27 Bogor, 16161 West Java

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

26.01.1917

 

 

Com. Reg. No.:

No. AHU-41493.AH.01.02.TH.2008

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Tires Manufacturing

 

 

No. of Employees :

1,070 persons

 

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

 

Status :

Satisfactory

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew more than 6% annually in 2010-12. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a fiscal deficit below 3%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2013 faces the ongoing challenge of improving Indonesia''s insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of high oil prices.

Source : CIA


Name of Company

 

P.T. GOODYEAR INDONESIA Tbk

 

 

Address

 

Head Office & Factory

Jalan Pemuda No. 27

Bogor, 16161

West Java

Indonesia

Phones             - (62-251) 322071 (Hunting), 899 4499, 800 1 222 777

Fax                   - (62-251) 328088, 311441, 336035

E-mail               - cs_indonesia@goodyear.com

Website            -           http://www.gooyear-indonesia.com

Land Area         - 15 hectares

Building Space  - 87,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

a.   26 January 1917 as N.V. THE GOODYEAR TIRE AND RUBBER COMPANY LTD.

b.   25 July 1978 as P.T. GOODYEAR INDONESIA

c.   16 June 1997 as P.T. GOODYEAR INDONESIA Tbk

 

Legal Form :

P.T. (Perseroan Terbatas Terbuka) or Public Listed Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. Y.A.5/250/7

  Dated 25 July 1978

- No. AHU-41493.AH.01.02.TH.2008

  Dated 15 July 2008

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.002.075.8-092.000

 

The Capital Investment Coordinating Board

- No. 97/VI/PMA/1980

  Dated 14 October 1980

 

- No. 87/II/PMA/91

  Dated 7 August 1991

- No. 59/II/PMA/93

  Dated 7 June 1993

- No. 79/II/PMA/2007

  Dated 15 March 2007                     

 

Related Company :

A Member Company of the GOODYEAR Group, USA

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 41,000,000,000.-

Issued Capital                                  : Rp. 41,000,000,000.-

Paid up Capital                                : Rp. 41,000,000,000.-

 

Shareholders/Owners :

a. The GOODYEAR Tire & Rubber Company                     - Rp. 34,850,000,000.-

b. P.T. KALI BESAR ASRI                                                 - Rp.   3,698,000,000.-

c. Public each below 5%                                                   - Rp.   2,452,000,000.-  

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Tires Manufacturing

 

Production Capacity :

a.   Vehicle Tires                                      - 4,368,000 units p.a.

b.   Tubes                                                - 2,371,848 pieces p.a.

c.   Flaps                                                 -    573.700 pieces p.a.

d.   Bladders                                            -      27,332 pieces p.a.

e.   Rubber Thread & Repair Materials   - 3,147,372 kgs. p.a.

f.    Two Wheel Tires                                 -    114,000 pieces p.a.

g.   Four Wheel Tires                                - 1,435,568 pieces p.a.

h.   Truck and Heavy Equipment Tires   - 1,993,660 pieces p.a.

 

Total Investment :

a.   Equity Capital                            - Rp.   41.0 billion

b.   Reinvested Profit                        - Rp. 138.3 billion

c.   Loan Capital                              - Rp. 144.7 billion

d.   Total Investment                         - Rp. 324.0 billion

 

Started Operation :

1935

 

Brand Name :

Goodyear

 

Technical Assistance :

The Goodyear Tire & Rubber Company, USA

 

Number of Employee :

1,070 persons

 

Marketing Area :

Export      - 35%

Local       - 65%

 

Main Customer :

Buyers in Europe Union, Middle East and Asian countries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BRIGESTONE INDONESIA Tbk

b. P.T. ELANGPERDANA TYRE INDDUSTRY

c. P.T. GAJAH TUNGGAL Tbk

d. P.T. INDUSTRI KARET DELI

e. P.T. MULTISTRADA ARAH SARANA Tbk

f.  P.T. SUMI RUBBER INDUSTRIES

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank MANDIRI Tbk.

      Jalan Kali Besar Barat No. 1 - 2

      Jakarta Barat

      Indonesia

b.   STANDARD CHARTERED Bank

      Menara Standard Chartered Bank

      Jalan Prof. Dr. Satrio No. 164

      Jakarta Selatan

      Indonesia

c.   CITIBANK N.A.

      Landmark Centre

      Jalan Jenderal Sudirman Kav. 21

      Jakarta Selatan

      Indonesia

 

Auditor :

KAP Tanudiredja, Wibisana & Rekan (PWC)

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales  :

2010 – US$ 193.4 million

2011 – US$ 207.3 million

2012 – US$ 203.4 million

2013 – US$   51.8 million (as per 31 March 2013)

 

Net Profit :

2010 – US$ 7.4 million

2011 – US$ 2.1 million

2012 – US$ 6.7 million

2013 – US$ 2.4 million (as per 31 March 2013)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Marco H. Vlasman

Directors                                         - a. Mr. Budiman Husin

                                                        b. Mr. Istata Siddharta

 

Board of Commissioners :

President Commissioner                   - Mr. Paul A. Cadena

Commissioners                                - a. Mr. Bhra Eka Gunapriya

                                                        b. Mr. Brad S. Lakhia

 

Signatories :

President Director (Mr. Marco H. Vlasman) or one the Directors (Mr. Budiman Husin or Mr. Istata Siddharta) which must be approved by Board of Commissioner

 

 


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

 

 

OVERALL PERFORMANCE

 

Originally named The GOODYEAR Tire & Rubber Company, the company was founded in 1898 under the laws of the State of Ohio, USA. The company entered Indonesia only in 1917 and in 1935 built a tires plant in Bogor, West Java. After undergoing several revisions, the company in 1967 obtained a Foreign Investment (PMA) license, with all of the company's shares being controlled by The GOODYEAR Tire & Rubber Company. In 1978 the company's legal status was converted to Perseroan Terbatas (P.T.) or Limited Liability Company, and its name changed to P.T. GOODYEAR INDONESIA (P.T. GI). In 1980 P.T. GI released 15% of its shares for sale to the public. According to the latest notarial act in June 1997 the authorized capital amounted to Rp 41,000,000,000.-, entirely issued and paid up. Concurrently the word Tbk. (Terbuka) was added behind the name to comply with the new law on publicly listed company to become P.T.GOODYEAR INDONESIA Tbk., (P.T. GI). According to the latest revision of notary documents of Mr. Haji Syarif Siangan Tanudjaja, SH., No. 22 dated 29 May 2008 the latest composition of its shareholders has been changed to become The GOODYEAR Tire & Rubber Company, USA (85%), P.T. KALI BESAR ASRI (9.02%), and Public below 5% (5.98%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-41493.AH.01.02.TH.2008 dated July 15, 2008.

 

We note that the foreign partner in P.T.GI, i.e. The GOODYEAR Tire & Rubber Company of the USA, is owner of the entire shares of P.T. GOODYEAR SUMATRA PLANTATION, which operates in rubber plantation management & rubber processing in North Sumatra. But in December 2004, The GOODYEAR Tire & Rubber Company of the USA had sold the whole share to BRISGESTONE Corporation of Japan.

 

P.T. GI with also known with trading style GOODYEAR has been in operation since 1935 in automotive tires & tube manufacturing with its plant located in Bogor, West Java. The plant has undergone machinery restructuring and capacity expansion several times. The plant had been absorbed an investment of Rp. 324.0 billion come from owned capital of Rp. 41.0 billion, reinvested profit of Rp. 138.3 billion and the rest from loans. The plant had been operating since the early 1996 by produced vehicle tires of  4,368,000 pieces, tubes of 2,371,848 pieces, flaps of 573,700 pieces, bladders of 27,332 pieces, rubber thread & repair materials of 3,147,372 pieces, two wheel tires of 114,000 pieces, four wheel tires of 1,435,568 pieces, truck and heavy equipment tires of 1,993,660 pieces respectively per annum. About 35% of P.T. GI's production is exported to Singapore, Malaysia, Philippine, Thailand, Papua Nugini, Germany, Canada, Switzerland, Australia, Middle East and other countries, with the rest 65% marketed in Indonesia through 185 retail stores scattered in the country's big cities. Besides, the vehicle tires also supplied to P.T. TOYOTA MOTOR MANUFACTURING INDONESIA. Some of raw material purchase from P.T. GOODYEAR SUMATRA PLANTATIONS. We observe P.T. GI’s business operation has been growing in the last three years.

 

In general, the demand for automotive tires, inner tubes, flaps and including vulcanize tires for motorcar, truck and heavy duty is in line with the progress achieved by Indonesian automotive manufacturing and heavy duty industries. We observe that automotive assembling and heavy duty assembling industries have kept on increasing in the last five years. However, the competition is very tight because automotive tires imported from the People Republic of Chinese are sold for cheaper compared with local made. P.T. GI's business position is still quite good for it has established extensive marketing networks in Jakarta and surroundings. The development of automotive tires industry in the country can be seen under table below.

 

Production and Export of National Tires, 2005 – 2012*

Year

Production

(units)

Export

( units)

2005

36,000,000

28,000,000

2006

38,000,000

32,000,000

2007

41,900,000

26,500,000

2008

42,840,000

29,900,000

2009

39,187,000

27,940,000

2010

50,000,000

35,100,000

2011

51,200,000

35,200,000

 2012*

52,000,000

35,900,000

Source: Processed from Indonesian Tires Producers Association (APBI)

*) Projected

 

According to the financial statement of P.T. GI having been audited by public accountant, sales turnover of the company in 2010 amounted to US$ 193.4 million with a net loss of US$ 7.4 million increasing to US$ 207.3 million with a net profit of US$ 2.1 million in 2011 and decreased to US$ 203.4 million with a net profit of US$ 6.7 million in 2012. As per 31 March 2013 the sales turnover has reached at US$ 51.8 million with a net profit of US$ 2.4 million. It is projected to go on rising by at least 6% in 2014. Based on information obtained from some customers, the payment habit of the company is smooth ranging from 1 to 3 months. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. GI is led by Mr. Marco H. Vlasman (54) a professional manager with experience in tires manufacturing. Mr. Marco H. Vlasman serves as President Director of PT Goodyear Indonesia Tbk since November 14, 2011. In 1990, he was with ABB Asea Brown Boveri in Hong Kong. His career started as Financial Analyst and become the Treasurer of the company. He has worked with Perfetti Van Melle. He has been posted in Hong Kong, China, Indonesia and Vietnam. Mr. Vlasman earned his undergraduate degree in Business and Commercial Economics from the School for Management and Economics in Holland. He supplemented his academic credentials with certificate programs in Organizational Science, Operational Management, Economical Order and Markets, Statistics and Marketing.

 

The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. GOODYEAR INDONESIA Tbk is sufficiently fairly good for business transaction.

 

Attachment:

 

P.T. GOODYEAR INDONESIA Tbk

FINANCIAL STATEMENTS

Per 31 December 2010, 2011, 2012 and 31 March 2013

 

 

(In US$)

DECCRIPTION

31 March 2013

                   31 December

2012

2011

2010

A.   ASSETS

 

 

 

 

      a.    Current Assets

 

 

 

 

             - Cash and Cash Equivalent 

9,358,476

8,723,245

12,720,231

12,513,738

             - Trade Receivable

 

 

 

 

                * Third parties

2,378,574

2,561,381

2,007,457

1,445,218

                * Related parties

14,850,539

12,348,065

11,962,407

15,618,222

             - Other Receivable

 

 

 

 

                * Third parties

471,856

509,217

1,381,767

383,290

                * Related parties

1,728,818

277,033

205,798

1,577,991

             - Inventories

22,384,363

25,501,127

25,606,417

23,630,848

             - Prepaid Taxes

 

 

 

 

                * Corporate income tax

4,024,678

4,024,678

3,535,640

1,448,503

                * Others

7,093,752

7,171,320

7,329,907

1,406,394

             - Prepaid expenses

348,111

447,773

88,215

93,536

             - Advances

300,295

594,237

590,913

69,395

             Total Current Assets

62,939,462

62,158,076

65,428,752

58,187,135

      b.    Non Current Assets

 

 

 

 

             - Deferred tax assets

2,940,402

2,879,160

2,222,139

2,770,177

             - Fixed assets

56,544,248

57,448,404

61,719,888

65,215,676

             - Deferred charges

534,823

558,000

604,098

675,879

             - Other non current assets

884,076

871,691

827,433

836,218

             Total Non Current Assets 

60,903,549

61,757,255

65,373,558

69,497,950

TOTAL ASSETS =    LIABILITIES

                                  STOCKHOLDERS’ EQUITY 

123,843,011

123,915,331

130,802,310

127,685,085

B.  LIABILITIES & STOCKHOLDERS’ EQUITY 

 

 

 

 

      a.    Current Liabilities 

 

 

 

 

             - Trade payable

 

 

 

 

                * Third parties

27,831,284

21,628,981

17,299,008

22,075,637

                * Related parties

1,382,783

3,224,346

7,517,601

960,765

             - Advances

 

 

 

 

                * Third parties

928,336

75,965

1,139,065

616,881

                * Related parties

18,016,662

19,286,497

27,316,315

22,842,946

             - Other payable

 

 

 

 

                * Third parties

4,958,399

5,873,715

5,849,163

3,679,251

                * Related parties

4,926,984

8,912,333

6,688,211

5,379,656

             - Accrued Expenses

4,054,631

3,920,844

2,580,536

3,283,014

             - Income tax payable

 

 

 

 

                * Corporate

227,823

144,692

12,329

68,504

                * Others

232,622

146,932

190,298

126,633

             - Dividend payables

106,481

91,216

87,410

88,205

             - Long term loan – due within one

               year

3,750,000

5,625,000

7,500,000

7,500,000

             - Provision to products warranties

179,953

198,039

154,622

98,429

             - Employee benefit obligations

311,563

336,032

333,247

611,840

             Total Current Liabilities 

66,907,521

69,464,592

76,667,805

67,331,781

      b.    Non Current Liabilities 

 

 

 

 

             - Long-term due with one year

-

-

5,625,000

13,125,000

             - Asset retirement obligations

310,229

304,529

-

-

             - Employee benefit obligations

1,515,236

1,415,918

1,333,910

1,004,444

             - Total Non Current Liabilities 

1,825,465

1,720,447

6,958,910

14,129,444

             Total Liabilities

68,732,986

71,185,039

83,626,715

81,461,205

      c.    Minority interest

-

-

-

-

      d.    Stockholders Equity  

 

 

 

 

             -  Share Capital 

78,378,525

78,378,525

78,378,525

78,378,525

             -  Retained Earnings

51,239,588

48,859,855

43,305,158

42,353,443

             Total Shareholder Equity

55,110,025

52,730,292

47,175,595

46,223,880

 

DECCRIPTION

 

 

 

 

 

C.  INCOME STATEMENTS  

 

 

 

 

      a.  Sales – Net 

51,773,772

203,402,375

207,310,260

193,371,346

      b.  Cost of Goods Sold 

(44,409,970)

(180,408,287)

(193,290,214)

(174,150,448)

      c.  Gross Profit

7,363,802

22,994,088

14,020,046

19,220,898

      d.  Operating Expenses

(4,237,673)

(13,400,265)

(11,234,704)

(9,512,965)

      e.  Profit Before Income Tax

3,141,192

9,100,459

3,130,124

8,620,427

      f.  Income Tax

(761,459)

(2,426,462)

(973,660)

(1,204,559)

      g.   Net Profit

2,379,733

6,673,997

2,156,464

7,415,868

Notes: 31 December 2010, 2011, & 2012 audited by Tanudiredja, Wibisana & Rekan (Price WaterhouseCoopers)

            31 March 2013 Un Audited

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.44

UK Pound

1

Rs.91.24

Euro

1

Rs.78.43

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.