United Tractors

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Business Summary

United Tractors has three business units:

• Construction Machinery
• Mining Contracting
• Mining

United Tractors is a subsidiary of Astra International, Indonesia's largest diversified conglomerate.

The machinery business unit of United Tractors is the sole distributor for heavy equipment on the Indonesian market. Its machinery products (which are used in mining, plantation, construction, forestry, material handling and transportation) include Komatsu, UD Trucks, Scania, Bomag, Komatsu Forest and Tadano. The company also provides after sales services through its distribution network which consists of 18 branches, 22 support offices and 12 representative offices.

The mining contracting business segment, which is carried out by the company's subsidiary Pamapersada Nusantara, provides mining services, including mine planning, exploration, infrastructure construction, mining, transportation, barging and loading. It is Indonesia's largest mining contractor and its activities are conducted throughout all well known coal mining areas in Indonesia.

The mining business unit covers United Tractor's activities as a coal mine operator, carried out by Prima Multi Mineral (a subsidiary of Pamapersada Nusantara). In South Kalimantan, Prima Multi Mineral owns high quality coal reserves of 6,700 kcal (adb) with production capacity of three million tons per year. Coal mining is also carried out by Tuah Turangga Agung, which was acquired in 2008 and is located in Central Kalimantan. It has concession rights to a coal mining area of 4,897 hectares for 30 years. Production capacity amounts to 2.5 million tons per year. Through several acquisitions, United Tractors currently manages nine mining concession areas with estimated coal reserves totaling 424 million tons, ranging from medium to high quality coal.

United Tractors' Revenue Contribution by Business Unit:

	2010	2011	2012	2013	2014	2015
Construction Machinery	8.4%	9.9%	10.4%	n.a.	28.2%	27.6%
Mining Contracting	45.4%	40.7%	50.0%	n.a.	63.0%	61.9%
Mining	46.3%	49.4%	39.6%	n.a.	8.9%	7.7%
Construction Industry	-	-	-	-	-	2.7%

^{Source: United Tractors, Annual Report 2015}

United Tractors' Financial Highlights:

	2010	2011	2012	2013	2014	2015	2016
Net Revenue	37,323.9	55,052.6	55,953.9	51,012.4	53,141.8	49,347.5	45,539.2
Gross Profit	6,795.7	10,193.5	10,521.0	9,516.8	12,070.4	11,702.3	9,661.0
Profit before Tax	5,061.3	7,784.6	7,446.8	6,587.3	6,506.7	4,192.7	6,730.0
Net Income	3,872.9	5,900.9	5,779.7	4,833.7	5,361.7	3,853.5	5,002.2
Total Assets	29,700.9	46,440.1	50,300.6	57,362.2	60,306.8	61,715.4	63,991.2
Total Liabilities	13,535.5	18,936.1	18,000.1	21,713.3	21,777.1	22,465.1	21,369.3
Earnings per Share¹	1,164	1,657	1,549	1,296	1,437	1,033	1,341
Cash Dividend per Share¹	430	635	620	515	740	691

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: United Tractors, Annual Report 2016}

Future Forecast United Tractors' Corporate Earnings:

	2017	2018	2019	2020F	2021F	2022F
Net Revenue	64,559.0	84,625.0	84,430.0	65,610.0	74,428.0	77,831.0
EBITDA	14,261.0	23,296.0	22,537.0	15,928.0	19,696.0	21,845.0
Net Income	7,403.0	11,126.0	11,312.0	7,606.0	10,215.0	10,957.0
PER (x)	14.0	7.8	7.7	11.4	8.5	7.9
P/BV (x)	2.3	1.6	1.5	1.4	1.3	1.2
ROAA (%)	-	11.2	9.9	7.1	9.5	9.8

^{in billion IDR rupiah unless otherwise stated
Source: Danareksa Sekuritas (27.09.2020)}