FinancialStatementJuni2016

Saratoga Investment Portfolio Grows Stronger on the Back of Investee Companies Positive Performance

4 August, 2016

Jakarta, 4 August 2016 – In the first half of 2016, PT Saratoga Investama Sedaya Tbk. (IDX Ticker: SRTG) enjoyed a 26% growth in investment portfolio from IDR 13.6 trillion on 31 December 2015 to IDR 17.1 trillion on 30 June 2016. The growth is mainly generated from higher market value of the Company’s investments in natural resources and supported by the strong performance sustained by investee companies in infrastructure and consumer sectors.

 

Starting from the first half of 2016, PT Saratoga Investama Sedaya Tbk. applies “PSAK 65: Exemption on the Consolidation” in reporting its financial performance. The new PSAK 65 allows Saratoga to apply fair valuation on its investment assets. As the change is applied prospectively, the company’s financial reports of 2016 cannot be compared with the financial reports of 2015.

 

Saratoga President Director Michael W.P. Soeryadjaya explained that the fund accounting methodology provides a clearer representation on Saratoga’s performance as an active investment company in line with its effective business model of investing, growing and monetizing.

 

Saratoga Finance Director Jerry Ngo remarked that the change in the presentation of financial reporting was thoughtfully made to deliver clearer financial reports to facilitate shareholders, creditors, and other capital market professionals in assessing our Company’s performance and making a fair investment decision in the company.

 

With the new accounting presentation, Saratoga booked IDR 4.8 trillion profit attributable to shareholders, which includes one-off gain of IDR 2.2 trillion as a result of financial reporting presentation change and IDR 2.6 trillion contributed mostly by the increase in market value of Saratoga’s investment in Adaro Energy and Tower Bersama

 

Michael added that Saratoga has continued its disciplined approach in seizing investment opportunities. Earlier this year, Saratoga entered cold-chain logistics by acquiring a stake in PT Mulia Bosco Logistik (MGM Bosco). The deal gives an excellent opportunity for Saratoga to build a platform in the high-growth cold chain logistic sector, an interesting sector which aligns with the increasing demand of vital logistics infrastructure in the country.

 

Moreover, Saratoga is able to deliver full cycle of its business model (Invest-Grow-Monetize) through its recent divestment in PT Pulau Seroja Jaya at IDR 98 billion, generating an internal rate of return of 48 percent over 8 years. As part of its commitment to shareholders, Saratoga distributed dividend this year – the first since its IPO in 2013.

 

“Saratoga’s investment growth has proven that our investment strategy and business model have been successful in creating value for our investee companies. We believe that this strategy will strengthen Saratoga’s businesses, allowing it to grow its investment portfolio optimally and sustainably, making more significant contributions to the Indonesian economy,” he said.

 

 

Highlights of Investee Companies Performance

 

In the natural resources sector, PT Adaro Energy Tbk. (IDX ticker: ADRO) through PT Bhimasena Power Indonesia (BPI) achieved financial closing in June 2016 for its 2×1,000 MW power project in Batang Regency, Central Java.

 

Furthermore, Adaro through its subsidiary also signed a Share Sale Agreement with BHP Minerals Holdings Pty. Ltd. and BHP Minerals Asia Pacific Pty. Ltd. for the purchase and takeover of all shares in the Indomet Coal project, consisting of seven Coal Mining Business Work Agreements (PKP2B) in Central Kalimantan, for an overall transaction value of USD 120 million.

 

These achievements bring Adaro closer to its vision to be a leading Indonesian mining and energy group.

 

In the infrastructure sector, PT Lintas Marga Sedaya (LMS), the concession holder of 116.75-km Cikopo-Palimanan (Cipali) toll road saw an increase in traffic. During the 2016 Eid al-Fitr homecoming season, the total number of vehicles traveling through the Cipali Toll – both those that exited at the Palimanan toll gate (Cirebon-bound) and those that entered through the Palimanan toll gate (Jakarta-bound) on D-Day- 7 through D-Day + 7 (June 29 – July 14, 2016) – was recorded at more than a million vehicles.

 

In the first half of 2016, PT Triwahana Universal (TWU) stopped its production and discontinued procuring crude oil supply due to on-going discussion and clarification on the well-mouth crude oil purchase price formula with related parties. On 23 June 2016, the Minister of Oil & Gas issued a Decree No. 168.K/12/DJM.B/2016 that determined temporary crude oil price, which will be applied temporarily until further issuance of permanent regulation on crude oil price for mini refinery. As of the end of July 2016, the agreement on crude oil delivery for TWU is still being processed.

 

In the consumer sector, PT Mitra Pinasthika Mustika Tbk. (IDX ticker: MPMX), a leading consumer automotive company in Indonesia, continues to strengthen its business fundamentals, improve operational efficiency and employ strategic initiatives to increase competitiveness. As a result, MPMX booked 9 percent revenue growth to IDR 8.9 trillion in the first semester of 2016 compared to the same period last year. The Company also managed to book Net Profits Attributable to the Parent (NPATMI) of IDR 180 billion in the same period of 2016.

 

As part of its commitment to shareholders, MPMX paid out IDR 75.9 billion cash dividends, or 2.5 times greater than previous year. The dividends made up 26.6 percent of the profits attributable to owners of the parent companies.

 

 

***END***

 

 

About PT Saratoga Investama Sedaya Tbk.

 

Founded in 1998, Saratoga Investama Sedaya (Saratoga) is a leading active investment company in Indonesia. Saratoga takes an active role in managing its investee companies as well as in exploring investment opportunities in Indonesia.

 

Saratoga focuses on investment opportunities in the early-stage as well as in the growth stage, and also in special conditions with emphasis on sectors that support Indonesian economic development, such as consumer, infrastructure, and natural resources.

 

Saratoga’s vision is to continue to be the major active investment company in Indonesia as well as the partner of choice for national and foreign investors, who wish to participate in the dynamic growth of the Indonesian economy.

 

 

For further information on Saratoga, please visit www.saratoga-investama.com or contact:

 

General                                                                    Financials

Sandi Rahaju/Paulanie Wijaya                                    Leona Karnali

Corporate Secretary                                                  Investor Relations

sandi.rahaju@saratoga-investama.com                      investor.relations@saratoga-investama.com

paulanie.wijaya@saratoga-investama.com

 

 

 

Supplemental Information

As mentioned above, the 1H 2016 results using fair value methodology cannot be compared with previous year financial results. Had Saratoga continued to apply the old methodology of presenting its financial performance, the results for this period are shown below.

 

 (IDR Billion) 1H 2016 1H 2015 Variance
Net Revenues 280 2,302 -88%
Cost of Revenues (277) (1,804) -85%
Gross Profit 3 498 -99%
Operating Expenses (96) (129) -25%
Non-Operating Income 476 1,292 -63%
Profit Before Tax 383 1,662 -77%
Income Tax (12) (102) -88%
Profit for the Period 371 1,560 -76%
 
Other Comprehensive Income 682 (733) -193%
 
Total Comprehensive Income for the Period 1,053 827 27%
 
Profit Attributable to:
Owners of the Company 392 1,191 -67%
Non-Controlling Interest (21) 368 -106%
  371 1,560 -76%
 
Total Comprehensive Income Attributable to:
Owners of the Company 1,094 460 138%
Non-Controlling Interest (41) 367 -111%
  1,052 827 27%

 

  • Net revenues declined by 88%, mainly due to TWU’s production stoppage as a result of on-going discussion and negotiation on the well-mouth crude oil purchase price formula with related parties.
  • Non-operating profit declined by 63%, due to last year one-off gain from MDKA listing.
  • Saratoga delivered profit attributable to shareholders of IDR 392B in comparison with IDR 1,191B last year.

About PT Saratoga Investama Sedaya Tbk.

Founded in 1998, Saratoga Investama Sedaya (Saratoga) is a leading active investment company in Indonesia. Saratoga takes an active role in managing its investee companies as well as in exploring investment opportunities in Indonesia.

Saratoga focuses on investment opportunites in the early-stage as well as in the growth stage, and also in special conditions with emphasis on sectors that support Indonesian economic development, such as consumer, infrastructure, and natural resources.

Saratoga’s vision is to continue to be the major active investment company in Indonesia as well as the partner of choice for national and foreign investors, who wish to participate in the dynamic growth of the Indonesian economy.

For more information on PT Saratoga Investama Sedaya Tbk. please visit: www.saratoga-investama.com

For further information, please contact:

Financial
Leona Karnali
Investor Relations
E: investor.relations@saratoga-investama.com
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