FINANCIAL REVIEW

BUSINESS CONTINUITY INFORMATION

MATTERS THAT COULD POTENTIALLY INFLUENCE BUSINESS CONTINUITY

In 2021, overall Pelindo’s business experienced a growth with revenues in 2021 reaching 100.4% of the RKAP, 8% higher than the previous year. Operating expenses reached 102% of the RKAP, 9% higher than the previous year, while EBITDA achieved 95% of the RKAP. This was due to the recording of concession assets expenses. Even though EBITDA was below the RKAP target, the net profit was 102% of the RKAP, 7% higher than the previous year, due to the efficiencies in interest expenses for loans and bonds, which were Rp278 billion lower than the RKAP target.

Total assets reached 92% of the RKAP target, 2% lower than the previous year due to investments still falling below the target, including the Construction of the North Kalibaru Terminal Phase I and the Development of the Benoa Port. Liabilities reached 90% of the RKAP, 5% lower than the previous year due to several external funding plans not being realized in 2021, as well as the repayment of bank loans and bonds for interest expense efficiency. Equity reached 95% of the RKAP, 4% higher than the previous year due to the difference in the value of the PT CTP acquisition transaction in October 2021 of Rp2.1 trillion. Pelindo’s cash balance as of December 2021 stood at Rp12.92 trillion, or 107% of the RKAP and 11% higher than the previous year. This was due to cash receipts from customers and PMN receipts, as well as cash absorption for investments being below the RKAP target.

Some important factors from the 2021 Management Report include:

1. Payments of interest expense and loans help improve the Company’s financial performance;
2. The investment realization including strategic projects in 2021 was 29.21% below the 2021 RKAP. Related to this, management needs to improve the investment achievement performance, especially for the strategic projects implementation and completion. Also, the Company’s objective to improve investment efficiency through integrated capital allocation and centralized procurement, screening, and planning for each investment must be carried out with care;
3. The Company achieved a KPI score of 104.81% in 2021, so overall it met the target set in 2021.

Based on the above factors, there are none that could potentially influence Pelindo’s business continuity. Management’s view is that although there are obstacles being faced by Pelindo, these can still be overcome by using the right strategic initiatives, and by using optimal resources, so that Pelindo’s business continuity can be well maintained.