Investor Relations – Financial Highlights

Short MD&A

Key movements in Q3/22

Y-on-Y highlights, Q3-2022 against Q3-2021:

• Sales volume has decreased by 19%, contributed by 40% lower export sales volume. Domestic sales volume accounted for 81%, an increase from the prior year 74% to total sales.
• Sales revenue has decreased by 22% due to a decrease in the average selling price by 4% and a decrease in the sales volume.
• Cost of Goods Sold has decreased by 18%, from lower raw material costs, energy costs, and a decrease in production volume by 15%.
• EBITDA’s value and EBITDA’s margin have decreased by 37% and 18%, from higher Cost of Goods Sold.
• Profit for the period has decreased by 71%, from loss on foreign exchange and higher interest expenses.
• Total liabilities decreased by 1% from lower Trade Payable, whereby The company purchased 70% of recycled paper domestically compared to previous year’s 61%. Total debt increased by 2% due to higher short-term working capital loans.
• Net Debt/EBITDA increased by 5% due to higher debt and lower trailing twelve months EBITDA. Debt/Equity decreased by 3% due to higher equity from land revaluation surplus and accumulated incremental net profit in retained earnings.

Q-on-Q highlights, Q3-2022 against Q2-2022:

• Sales volume has decreased by 14%, contributed by 36% lower export sales volume. Domestic sales volume accounted for 81%, an increase from the prior quarter 74% to total sales.
• Sales revenue has decreased by 20% due to a decrease in the average selling price by 7%  and a decrease in the sales volume.
• Cost of Goods Sold has decreased by 18%, from lower raw material costs, energy costs, and a decrease in production volume by 12%.
• EBITDA’s value and EBITDA’s margin have decreased by 25% and 6%, from higher Cost of Goods Sold.
• Profit for the period has decreased by 50%, from loss on foreign exchange and higher interest expense.
• Total liabilities and debt have decreased by 7% and 5% from shorter days of Trade Receivables, resulting in higher cash collection from customer credit sales compared with the previous quarter.
• Net Debt/EBITDA has increased by 5% due to lower trailing twelve months EBITDA, and Debt/Equity has decreased by 6% due to lower debt.

Y-on-Y highlights, 9M-2022 against 9M-2021

• Sales volume has decreased by 6%, contributed by both 6% and 9% decrease in domestic and export sales volume. Domestic sales volume accounted for 79%, an increase from the prior year 78.8% to total sales.
• Sales revenue has increased by 2% due to increase in average selling prices.
• Cost of Goods Sold has increased by 5%, from higher raw material costs and energy costs.
• EBITDA’s value and EBITDA’s margin have decreased by 12% and 14%, from higher Cost of Goods Sold.
• Profit for the period has decreased by 31%, due to an increase in interest expense due to higher debt amount and cost of debt.
• Total liabilities decreased by 1% from lower Trade Payable, whereby The company purchased 65% of recycled paper domestically compared to previous year’s 55%. Total debt increased by 2% due to higher short-term working capital loans.
• Net Debt/EBITDA increased by 5% due to higher debt and lower trailing twelve months EBITDA. Debt/Equity decreased by 3% due to higher equity from land revaluation surplus and accumulated incremental net profit in retained earnings.

Notes:

• On 30 September 2022, the Total Debt of IDR 6,376 billion consisted of around USD 110 million and IDR 4,706 billion.
• Cost of Debt (Pre-Tax) has been increased in Q3-2022, from 3.3% (Q1/22), 3.3% (Q2/22), to 3.8% (Q3/22). The increase was mainly due to rising USD and IDR denominated loan reference rates.