Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(Incorporated in the Cayman Islands with limited liability) (Stock Code: 8061)
OVERSEAS REGULATORY ANNOUNCEMENT
The following is a translation of an announcement of PT Multipolar Tbk (a subsidiary of AcrossAsia Limited (“AcrossAsia”) listed on the Indonesia Stock Exchange in which AcrossAsia has an approximately 51.15% interest) published on the Indonesia Stock Exchange.
As at the date hereof, the Board of Directors of AcrossAsia comprises one executive Director, namely, Mr. Marshall Wallace COOPER and three independent non-executive Directors, namely, Mr. Albert Saychuan CHEOK, Dr. Boh Soon LIM and Mr. Kwong Yiu MAK.
Hong Kong, 12th June 2009
PT Multipolar Tbk
ANNUAL REPORT 2008 THE NEXT LEVEL OF INNOVATION TABLE OF CONTENT
01 Our Vision 02 Our Journey 04 Financial Highlights 05 Stock Highlights 06 Board of Commissioners 08 Message from the President Commissioner 10 Board of Directors 12 Message from the President Director 14 Business Pillars 20 Development of Human Capital 22 Good Corporate Governance 24 Audit Committee’s Report 26 Management Discussion & Analysis 28 Corporate Data 29 Achievements in 2008 30 Curriculum Vitae of Audit Committee 31 Responsibility for 2008 Annual Report THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 1
OUR VISION
To be an admired company in the region, which delivers high values to its stakeholders through the deployment of the best available information and management technology THE NEXT LEVEL OF INNOVATION 2 Annual Report 2008 • PT Multipolar Tbk
Our Journey
2008 Strong Growth for Outsourcing Business Asia Pacific Outstanding Enterpreneurship Award Upgrade to Oracle Certified Advance Partner
2007 Strong Revenue & Profitability Expanding growth for outsourcing business
2006 Strong Leader for IT Solutions The largest holding co. for retailing business Renewal ISO 9001:2000 Certification 4th rights issue
2005 Server, Solution and Service emphasis IT Oursourcing Strengthen equity through 3rd rights issue
2001 - 2004 Total Enterprise Solutions Provider Establishing Consulting Business Awarded ISO 9001:2000 certification in 2004 THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 3
1998 - 2000 System Integrator Business Solutions and Application Service Provider
1997 1st IT co. to be awarded ISO 9001:1994 certification Acquiring MPPA, Indonesian largest retailer 2nd rights issue
1989 - 1996 1st IT co. to be listed in JSX in 1989 1st rights issue in 1996
1986 1st IBM Business Partner in Indonesia
1982 Pioneer of banking & financial computerization
1976 Electronic Retailer
Dec 4, 1975 Establishment of Multipolar THE NEXT LEVEL OF INNOVATION 4 Annual Report 2008 • PT Multipolar Tbk
Financial Highlights
PT Multipolar Tbk. and Subsidiaries In Millions Rupiah (except stated otherwise)
2008 2007 2006 2005 2004
RESULT OF OPERATION Net Sales, Services, and 12,709,388 10,370,107 9,100,380 7,490,735 2,506,936 Other Operating Revenue Gross Profit 3,242,232 2,689,060 2,415,906 2,103,496 683,307 Income from Operations 529,842 441,501 436,275 321,491 148,369 Other Charges (739,411) (260,520) (273,821) (121,036) (83,900) Income Before Tax Benefit (Expense) (259,968) 188,521 167,998 205,662 82,776 Net Income (196,509) 61,317 45,159 60,718 23,127 Number of Shares (Shares) 6,785,159,000 6,785,159,000 4,365,500,658 4,211,478,000 1,871,768.000 Earnings per Share (In Full Rupiah) (28.96) 9.25 10.72 20.37 12,36
BALANCE SHEET Cash dan Cash Equivalents 1,896,282 2,813,019 1,433,573 542,066 1,073,699 Short-term Investments 1,913,659 958,300 527,381 232,745 243,726 Accounts Receivable - Trade - Net 218,575 201,987 252,288 128,776 156,532 Inventories - Net 1,030,304 944,886 853,539 735,531 466,899 Total Current Assets 6,253,209 5,262,257 3,391,468 1,919,853 2,136,365 Investments in Associates and 271,963 415,818 243,121 236,709 304,118 Other Long-Term Investments Total Non-Current Assets 5,149,289 4,576,483 4,081,127 3,562,030 2,736,516 Total Assets 11,402,498 9,838,740 7,472,595 5,480,658 4,872,881 Total Current Liabilities 5,214,135 2,433,991 2,488,807 1,542,306 1,578,479 Total Non-Current Liabilities 3,052,138 3,954,561 2,458,283 1,538,129 1,331,373 Total Liabilities 8,266,273 6,388,552 4,947,090 3,080,435 2,909,852 Stockholder’s Equity 1,505,134 1,750,532 1,364,375 1,287,991 945,427 Working Capital - Net 1,039,074 2,828,266 902,661 377,547 557,886
RATIO Gross Margin 25.51% 25.93% 26.55% 28.08% 27.26% Operating Margin 4.17% 4.26% 4.79% 4.29% 5.92% Return on Assets -1.72% 0.62% 0.60% 1.11% 0.47% Return on Equity -13.06% 3.50% 3.31% 4.71% 2.45% Current Ratio 1.20x 2.16x 1.36x 1.24x 1.35x Debt to Equity 2.64x 1.85x 1.96x 1.28x 1.21x Debt to Assets 0.72x 0.65x 0.66x 0.56x 0.60x
WORKING CAPITAL TURN OVER (Days) Accounts Receivable Turn-Over 6 7 10 6 23 Inventory Turn-Over 40 45 47 50 93 THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 5
Stock Highlights
SHARE PERFORMANCE 2008 2007 Earnings per Share (Rp) (28.96) 9.25 Outstanding Shares (Shares) 6,785,159,000 6,785,159,000 Weighted Average Shares (Shares) 6,785,159,000 6,626,058,178 Book Value per Share (Rp) 221 264
SHAREHOLDERS 2008 2007 1. AcrossAsia Limited 3,470,636,478 51.15% 3,470,636,478 51.15% 2. Others/Public 3,314,522,522 48.85% 3,314,522,522 48.85% 6,785,159,000 6,785,159,000
SHARE PRICE PER QUARTER 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2008 Highest (Rp) 104 96 81 50 Lowest (Rp) 71 65 50 50 Closing (Rp) 77 76 50 50 Volume (Shares) 618,940,500 484,499,500 447,810,500 11,648,500
2007 Highest (Rp) 145 148 152 125 Lowest (Rp) 103 106 89 99 Closing (Rp) 108 126 125 102 Volume (Shares) 3,565,858 4,353,126 5,158,381 752,002
HISTORY OF REGISTRATION OF SHARES ON THE INDONESIA STOCK EXCHANGE Origin of Share Listing Date Additional Number of Shares Total Outstanding Shares Nominal Value Per Share (Sheet) After Transaction Saham (Rp)
Initial Public Offering 6 November 1989 3,428,000 3,428,000 1,000 Company Listing 16 July 1990 8,000,000 11,428,000 1,000 Bonus Share (1:2) 9 November 1992 22,856,000 34,284,000 1,000 Rights Issue I 12 July 96 102,852,000 137,136,000 1,000 (1:3 @ Rp 1,000) Stock Split 1 April 1997 137,136,000 274,272,000 500 Rights Issue II 14 July 1997 1,508,496,000 1,782,768,000 500 (10:55 @ Rp 500) Limited Public Offering 27 July 2000 89,000,000 1,871,768,000 500 Rights Issue III 24 June 2005 2,339,710,000 1,871,768,000 Class A Shares Class A @ Rp 500 (4:5 @ Rp 125) 2,339,710,000 Class B Shares Class B @ Rp 125 Rights Issue IV 8 December 2006 2,573,681,000 1,871,768,000 Class A Shares Class A @ Rp 500 (18:11 @ Rp 125) 4,913,391,000 Class B Shares Class B @ Rp 125
HISTORY OF DIVIDEND PAY-OUT Payment Date Period AGM Date Dividend Outstanding Shares Total Dividend Pay-out
16-Nov-92 July 1991 - July 1992 11 September 1992 240 11,428,000 2,742,720,000 16-Nov-93 July 1992 - June 1993 11 September 1993 35 34,284,000 1,199,940,000 16-Nov-94 July 1993 - June 1994 11 September 1994 45 34,284,000 1,542,780,000 16-Nov-95 July 1994 - June 1995 11 September 1995 55 34,284,000 1,885,620,000 16-Nov-96 July 1995 - June 1996 11 September 1996 16 137,136,000 2,194,176,000 4-Jul-07 July 2006 - June 2007 23 May 2007 1 6,785,159,000 6,785,159,000 5-May-08 July 2007 - June 2008 19 March 08 1 6,785,159,000 6,785,159,000 THE NEXT LEVEL OF INNOVATION 6 Annual Report 2008 • PT Multipolar Tbk
Board of Commissioners
Dr. Cheng Cheng Wen President Commissioner
Was appointed as the Commissioner of the Company in 2000 and as the President Commissioner in 2002. His over 30 years of international experience, includes extensive career at AT&T, USA, Bell Telephone Manufacturing, Belgium, Philips Electronic China Group, China. Currently, Dr. Cheng is also President Commissioner of PT Matahari Putra Prima Tbk. Dr. Cheng holds a Bachelor of Science degree from National Chengkung University, Taiwan as well as Master of Science and PhD degrees in Electrical Engineering from Iowa State University, USA. THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 7
Jonathan L. Parapak Independent Commissioner
Was appointed as the Commissioner of the Company in 2000 and as the Independent Commissioner since 2001. Mr. Parapak has an an extensive career for over 40 years. His professional career in Telecom Australia and PT Indosat Indonesia has led him to be one of the most recognized expert in the Telecommunication industry and respected member of international organization. He is also the President Commissioners of PT First Media Tbk. and an Independent Commissioner of PT Matahari Putra Prima Tbk. Mr. Parapak holds a Bachelor degree in Technology and a Master degree in Engineering Science from University of Tasmania, Australia.
Dr. Isnandar Rachmat Ali, SE, MM Independent Commissioner
Dr. Isnandar Rachmat Ali, obtained his Doctoral Degree (PhD) in Education Management from the Jakarta State University. He began his career at various industrial companies. In 1980-1989 he was Vice President Director of Bank Bhumy Bahari and from 1989-2001 as Vice President Director at Tokai Lippo Bank. Since 1990 until now, active as a lecturer at Krisnadwipayana University.
Benyamin J. Mailool Commissioner
Appointed as Commissioner in 2006. Mr. Benyamin has been the CEO/ President Director of PT Matahari Putra Prima Tbk. since 2002. He started his career at Citibank, Jakarta in 1989 until 1997 with the last position as Vice President, Risk Management Treasury Head. From 1997 to 2001 he was the CEO of PT Bukit Sentul Tbk. Mr. Benyamin graduated from the Oklahoma State University, USA with a Master Degree in Business Administration.
Marshall W. Cooper Commissioner
Appointed as Commissioner in 2004. Mr. Cooper is an Executive Director of AcrossAsia Limited and Commissioner of PT First Media Tbk. He has over 20 years experience in Asia and was the Asia-Pacific controller for an oil and gas service company and regional controller for a mining company. He holds a Bachelor degree in Statistics (Operation Research Analysis) from Perth Institute of Technology, Australia and a Bachelor degree in Accounting and a Master degree in Business Administration from University of Texas, USA. He resigned from the Company on 29 October 2008.
L. Krisnan Cahya Commissioner
Joined the Company in March 2001 as Chief Financial Officer. Mr. Cahya graduated from Tarumanegara University majoring in Accounting. Started his career as Finance Manager in a trading company before joining PT Bank Panin. He held various positions in PT Bank Panin in 1984-1985. He moved to PT Bank Bali in 1995-2001 with last position as Head of Treasury. He resigned from the Company on 10 November 2008. THE NEXT LEVEL OF INNOVATION 8 Annual Report 2008 • PT Multipolar Tbk
Message from the President Commissioner
“PT Multipolar Tbk reaffirmed its position as the leading provider of Information Technology (“IT”) solutions in Indonesia in the banking and financial sector for which we are widely recognized as well as in a growing range of other IT business applications.” THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 9
In 2008, PT Multipolar Tbk. (“Multipolar”) reaffirmed This helps ensure every Multipolar stakeholder obtain its position as the leading provider of Information all the necessary information through our ongoing Technology (“IT”) solutions in Indonesia in the banking transparency initiatives as well as routine public and financial sector for which we are widely recognized releases in the Company’s quest to constantly build as well as in a growing range of other IT business value and benefit for our shareholders. applications. These results are commendable as in the midst of a volatile economic environment, especially In July 2008, the Board of Commissioners appointed in the second semester of 2008 due to the world a new Audit Committee to replace the previous economic crisis. committee in line with Bapepam Regulations on the Formation and Guidelines of the Audit Committee. The extraordinary fluctuations of the Rupiah against At the Annual General Meeting of Shareholders held major world currencies has significantly impacted in March 2008, shareholders bid a fond farewell to the Company’s overall performance. Multipolar Commissioners H.M. Salim Radjiman and Ketut Budi booked a net loss amounting to Rp 196,5 billion on a Wijaya, as well as directors Eddy Handoko and Krisnan consolidated basis, mainly from the unrealized mark Cahya, thanking them for their years of service at to market loss from hedging contracts and unrealized Multipolar. Bapak Krisnan Cahya was then appointed foreign exchange loss of our subsidiaries and associates. as a member of the Board of Commissioners of the Nevertheless, our total operating performance showed Company. an improvement, with revenues for the year reaching Rp 12.7 trilion or a 22.56% increase from last year’s As one of the few companies in Indonesia to obtain a figure of Rp 10.4 trillion. Gross profits increased by ISO 9001:2000 certification for management quality in 20.57% to Rp 3.2 trillion in 2008 as has operating hardware, software and professional services, Multipolar profits up by 20.01% to Rp 529.8 billion in 2008. Retail is in a strong position as a leader in the Information and IT services continue to be major contributors to Technology industry. With contributions from our Multipolar’s revenue, thus reflecting the Company’s investments, 2008 has shown that despite global continuing efforts to enhance its business. economic calamities, Multipolar’s diverse strategies and assets will help us to sustain our business growth We also received positive contributions from in these difficult economic times. We are confident Multipolar’s subsidiary companies, who continue Multipolar will be able to weather the global downturn to aggressively expand their products, services and and turn challenges into opportunities. customer base. The increase in revenues came from subsidiary PT Matahari Putra Prima Tbk. (“Matahari”), Finally, the Board of Commissioners would like to thank supported by a growth in Indonesian household everyone who continued to contribute towards our consumption, and from the Company’s investment in mutual success. From our employees to our partners, PT. First Media Tbk. (“First Media”), as a Cable TV and we truly appreciate their hard work, commitment, and Internet Broadband provider that continues to show dedication towards achieving the Company’s goals. significant growth and performance.
We are proud to say that management continued its pace to intensify corporate performance through revenue growth and increasing competitiveness. This is reflected in our President Director, Bapak Jeffrey Wonsono receiving the Outstanding Entrepreneur Award 2008 from the Asia Pacific Entrepreneurship Awards as well as PT Multipolar Tbk. becoming the First Winner of the 2008 Indonesian Financial Reporting Dr. Cheng Cheng Wen Award for the Trade Industry category. The Board President Commissioner congratulates Bapak Jeffrey for these remarkable awards as recognition of Multipolar’s continued commitment to the industry and Indonesia.
Multipolar’s dedication to Good Corporate Governance is reflected in its policies that are enforced corporate- wide and with its partners. The Company’s audit committee, which holds routine meetings and provides oversight for financial reports and internal audits, actively provides recommendations to the Board of Commissioners regarding best practices. THE NEXT LEVEL OF INNOVATION 10 Annual Report 2008 • PT Multipolar Tbk
Board of Directors THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 11
Jeffrey Koes Wonsono President Director
Appointed as President Director in 2002. Mr. Wonsono started his career with various multinational joint venture banks including PT Bank Multicor, PT Bank LTCB Central Asia before joining Lippo group in 1994. Currently, Mr. Wonsono is also Commissioner of PT Matahari Putra Prima Tbk. Mr. Wonsono received a Bachelor degree in Marketing from the Centre for Business Studies, England and a Master degree in Business Administration from Golden Gate University, USA.
Harijono Suwarno Managing Director
Appointed as Director in 2004, Mr. Suwarno graduated from Trisakti University Jakarta, Telecommunication Department. He started his career as workshop engineer in PT Guna Electro. In 1977 – 1981 worked as Workshop Manager in PT Centronix. Later he joined PT Panorama Timur Jaya and held various positions with last position as Director. Currently is still the President Commissioner of PT TeleNet.
Antonius Agus Susanto Director
Appointed as Director in 1990, Mr. Susanto has been with the Company since 1984. He began his professional career as a Sales Representative for PT Komputa Agung, before joining the Company with the same position. Previously, Mr. Agus was Sales Manager and Deputy Manager of the Company. Mr. Susanto received a Bachelor Degree in Electrical Engineering from Trisakti University and a Master degree in Marketing Management from Univerisity of Pelita Harapan.
Reynold Pena Ong Director
Appointed as Director in 2008, Mr. Reynold P. Ong, Philippines citizenship, obtained his Master of Business Administration from the University of the Philippines, Philippines and Bachelor of Science in Commerce, major in Accounting from De La Salle University, Philippines. He started his career in Consulting Division of SGV in the Philippines and from 1983 – 1987 worked at PepsiCo Inc, Philippines and Analog Devices, Philippines. He was Assistant Vice President, Financial Services Division in PT Rajawali Corporation in 1989 – 1993 and during 1993 – 1998 as Associate Director in PT Lippo Karawaci. In 1998 – 2000 he was Vice President Finance and Administration in Jardine Davies Inc., Philipines. Since 2001 until 2004 he was Chief Financial Officer of PT Natrindo Telepon Seluler and as Director/ CFO of PT Bank Lippo Tbk. in 2005. THE NEXT LEVEL OF INNOVATION 12 Annual Report 2008 • PT Multipolar Tbk
Message from the President Director
“With more than three decades of experience in the business, PT Multipolar Tbk continues its pace to become the leading provider of information technology in Indonesia.”
2008 was a year of contrasts. Its promising start was concluded with a world suddenly in economic turmoil. Despite these challenges, PT. Multipolar Tbk. (“the company”) continued its pace to become the leading provider of information technology (“IT”) in Indonesia. Multipolar continues to make a difference for a growing number of companies that have sought the Company’s total business solutions concept. And it is where Multipolar’s more than three decades of experience in the business will be an even greater impetus for growth and value creation for customers in the long term. Even so, the global downturn is expected to prompt many companies to reduce budgets and costs, thus increasing competition for Multipolar to provide the best value through its quality IT products and services.
As both the IT division and the Company’s subsidiaries continue to bring sustained contribution to the Company, revenues for the year went up by 22.56% from Rp 10.4 trillion in 2007 to Rp 12.7 trillion in 2008 with an increase in gross profits of 20.57% from Rp 2.7 trillion in 2007 to Rp 3.2 trillion in 2008. Operating profits went up by 20.10% from Rp 441.5 billion in 2007 to Rp 529.8 billion in 2008. Multipolar booked a net loss amounting to Rp 196.5 billion on a consolidated basis, mainly from the unrealized mark to market loss from hedging contracts and unrealized foreign exchange loss of our subsidiaries and associates, as a result of extraordinary sharp fluctuations in THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 13
exchange rates in the last quarter of 2008. Nevertheless, Indonesian Financial Reporting Award for the Trade the Company continues to restructure its loans and Industry category. As such, Multipolar continues to liabilities to provide better cash flow, ease interest build up its Human Capital by providing training and expense burdens and simultaneously mitigate foreign keeping up to date with the latest technologies. In exchange risk. addition, the Company continues to contribute back to the community via a number of initiatives such as Management’s efforts to further reduce the company’s the Blood Donation program that Multipolar conducts reliance on selling information technology applications regularly. to the banking and financial sectors are also proving fruitful, providing additional revenue and market I believe our supportive corporate culture, long term exposure for the Company. The outsourcing division, vision and development of human capital at all levels PT Visionet Internasional (“VisioNet”), continues to shall remain as the backbone of the company. Our trail blaze its service line with a significant increase close relations with strategic partners, both within of clients and service points throughout the country, Indonesia and overseas, as well as Multipolar’s now available in 28 cities throughout Indonesia. In consistent efficiency drives, shall assist us in weathering addition to its success, VisioNet obtained ISO 9001:2000 the current economic storm. certification that is valid until 2011. This attests to the quality management in the field of Electronic Data On behalf of the Board of Directors, I would like to Capture (EDC) operation and maintenance services. thank all our stakeholders that include our valued The Company believes outsourcing services will play employees, trusted partners and loyal customers for a significant role in 2009 onwards due to growing their trust and commitment with us as without them demand from clients that delegate their IT functions we would not be able to achieve our goals for 2008. to VisioNet, allowing them to focus more on their core I also thank the Board of Commissioners who has business competencies as well as reducing costs. provided oversight for our mutual advancement and advice as we navigate today’s difficult global economic Multipolar’s investment in PT. Matahari Putra Prima climate. I am confident that with the support of all Tbk. (”Matahari”) continue to excel as it remains the our stakeholders, Multipolar will be able to not only country’s largest retailer that offer consistent growth survive but find successful opportunities in the current and a large customer base. Despite the world financial crisis and be well positioned to substantially global recession, the company managed to increase grow as a world class IT company once it is over. its revenues from Rp 9.8 trillion in 2007 to Rp 12 Exciting opportunities lay ahead! trillion thanks to substantial growth in the Matahari Department Store (MDS) and Matahari Food Businesses (MFB) divisions. Matahari has strategically positioned itself for future growth opportunities that include outlet expansions and distribution capabilities. With a network of over 300 stores throughout the archipelago, Matahari remains the main contributor in the Company’s future earnings growth.
Multipolar’s other investment in PT. First Media Tbk. Jeffrey Koes Wonsono (”First Media”) also continues toimprove, as demand for President Director real time information and access through cable TV and broadband Internet maintains it upward ascent. First Media expansion in fiber optic cable and fast internet accesss has had remarkable results as its customer base has grown by 169% during the year to 110,239 subscribers with an increase in revenues of 20.75% from Rp438.6 billion in 2007 to Rp 529.6 billion in 2008.
The company’s commitment to Good Corporate Governance of transparency, accountability, responsibility and fairness remains a cornerstone of Multipolar’s success. It is reflected in the award the Company received as the First Winner of 2008 THE NEXT LEVEL OF INNOVATION 14 Laporan Tahunan 2008 • PT Multipolar Tbk
Business Pillars
Despite the global economic crisis in the last quarter, 2008 was a relatively good year for Multipolar. The Company had managed to finalize a bulk of its contracts and agreements prior to the beginning of Q4 thus managed to come out of the year on a positive note. This occurred despite the country experiencing macroeconomic instability as a result of the world crisis, increasing inflation, and the devaluation of the Rupiah among other things.
Although Multipolar focuses in the information technology solutions area, the Company is also supported by a number of subsidiary companies and investments that include PT. Matahari Putra Prima Tbk. (”Matahari”) in the retail sector, PT. First Media Tbk. (”First Media”), a multi-channel Pay TV and high-speed broadband internet provider, PT VisioNet Internasional (”VisioNet”) which offers outsourcing services, and PT. Multifiling Mitra Indonesia (”MMI”), which provides corporate archival management. THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 15
IT Division With over three decades of experience, Multipolar is without doubt a leading figure within the Information Technology solutions industry, a sector that demands the best products and services that are offered from a diverse range of hardware and software vendors. From off- the-shelf solutions to unique software and hardware customizations, Multipolar has served a variety of industries that include finance, banking, educational institutions and government, to name a few.
In order to maintain its leadership position, the Company seeks and recruits the best and talented professionals in the industry, invest in the development of their skills, competencies and abilities as well as offer a supportive working environment that retains its key employees through competitive compensation packages. For every new technological breakthrough that enters the market, Multipolar makes sure that it is able to stay ahead of the curve by learning and implementing the latest technologies for the benefit of their customers.
The Company’s commitment to excellence has led to many awards and high levels of confidence from a number of leading organizations from around the world. Recently, Jeffrey Wonsono, the President Director of PT Multipolar Tbk., received the Outstanding Entrepreneur Award 2008 from the Asia Pacific Entrepreneurship Awards. Multipolar was also awarded First Winner of the 2008 Indonesian Financial Reporting Award for the Trade Industry category,
In addition, 2008 also saw the Company receiving recognition from its vendor partners such as Vision Solutions, IBM, Symantec, CTI and Oracle. Multipolar recently upgraded its partnership with Oracle by becoming a Certified Advance Partner to assist in the implementation of Oracle solutions for their client base. The Company was also recognized as a leading IBM Business Partner for 2008, thanks to its above target sales of the IBM iSeries and POS solutions.
Some of 2008 client wins include the Indonesian Constitutional Court, who entrusted Multipolar to develop an Internet Protocol-based video conferencing solution to connect the court with 34 law faculties throughout Indonesia. The objective of this project is to enhance communication and coordination between the Indonesian Constitutional Court and its regional offices to ensure timely collaboration, workplace efficiency and accurate gathering of information towards rapid decision making. This solution would allow the Constitutional Court to quickly adapt to the demands of the 21st century.
The Company’s System Integration business unit continues to focus on providing value- added services as opposed to merely supplying hardware and software products. The unit listens to its client base - both old and new – to exchange views on ways to improve business performance through greater system integration, better communication systems and broader information technology tools throughout the client’s organization. Clients are responding favorably to the division’s initiatives, reflected in Multipolar’s growing sales and services to the many sectors as well as the high levels of confidence from a number of leading organizations.
The Banking Solutions business unit received recognition for its Core Banking Solutions product VisionShari’a which was implemented in several regional government banks, replacing previous core banking solutions. By utilizing the same system for both its sharia and conventional banking branches, our clients are able to offer integrated online services for their customers to check and transfer funds between accounts. With an increasing interest in sharia banking, Multipolar hopes this solution will grow in line with the digital economy. THE NEXT LEVEL OF INNOVATION 16 Laporan Tahunan 2008 • PT Multipolar Tbk
The Consulting Services business unit also had a commendable year, with the development of an IT Governance program at ICT (Information & Communication Technology) Pusintek, the Ministry of Finance, a project designed to execute their Teknologi Informasi & Komunikasi (ICT) Shared Services Provider role to all Echelon 1 members of the Ministry. The division was also called in to supervise the development and implementation of the Case Management and Court Administration System for the Tax Court. This follows the successful IT modernization program that was recently concluded by the Company.
In addition, Consulting Services consolidated its position in the market by expanding into the health care sector, where it was entrusted to implement the Hospital Information System for the Siloam Group, to help their hospitals take steps towards a “digital hospital”.
Beyond 2008, the IT division will take strategic steps to counteract the negative influences of the global economic crisis. As such, the IT division endeavors not only to win strategic projects, but also ensure that its internal processes are efficient to ensure future growth of the company.
BUSINESS PARTNERS
PARTNERNETWORK Symantec Platinum Partner THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 17
Retail Division Despite the fall in global consumer confidence, food products would always be in demand. That said, retail outlets must listen to what consumers need in order to provide the correct inventory to their benefit. Despite weakening consumer spending power, a minor spike in inflation, and banks freezing new loans in the last quarter of 2008, Matahari had a banner year in terms of operating performance.
Matahari has for years understood the Indonesian market dynamics, allowing it to utilize appropriate business strategies to introduce new products and services ideal for consumers. With this competitive advantage, Matahari has been able to consolidate its market leadership position in 2008 with revenue of Rp 12 trillion, or a 22.62% increase of the 2007 revenue of Rp 9.8 trillion.
The improved performance of Matahari’s two main business units, Matahari Department Store (”MDS”) and Matahari Food Business (”MFB”), have established the retailer as one of Indonesia’s fastest growing and most recognized retail outlet. By the end of December 2008, Matahari had 86 department stores, 43 hypermarkets, 27 foodmarts, 54 pharmacies (under the name of Boston Drugs) and more than 90 family entertainment outlets (under the brand Timezone) throughout Indonesia.
In 2008, Matahari received the “Indonesia’s Most Admired Company Award and The Best Corporate Image” from the Fortune Consulting Group and Business Week Indonesia, respectively. Based on an independent survey by Business Week Indonesia and the Frontier Consulting Group, Matahari for the second time in two years received the highest scores. Matahari also received the “Service Quality Gold Award 2008 – The Company with Best Service” for the second consecutive year in the Department Store category. THE NEXT LEVEL OF INNOVATION 18 Laporan Tahunan 2008 • PT Multipolar Tbk
Another Matahari licensed business unit, Times Bookstore, recently opened its flagship store in Lippo Village. Times Bookstores provide a whole new concept of internal modern design with impeccable color combination complementing the comprehensive selection of books with an enjoyable atmosphere for visitors. Using Information Technology from VisioNet to provide the store with state-of-the-art systems, Times Bookstores seeks to offer thousands of selected international books that can be ordered and delivered to the store. The business unit also seeks to expand through a series of 30 new store openings in the next three to five years throughout Indonesia
Thanks to its strong internal network and plans to expand in the near future, Matahari is ready to anticipate and meet the dynamics of change to satisfy the needs of consumers. THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 19
Multimedia Division PT. First Media Tbk. continues to grow its market base with upgrading its cable services to digital through its network of Hybrid Fiber Coaxial (HFC) infrastructure that spans a number of major Indonesian cities. With its 4,816 kilometer long cable network, First Media provides a wide range of multimedia services for homes and businesses through its high-speed Internet service known as FastNet as well as its high-speed communications service Datacomm. To date First Media paying cable TV subscribers is 126,673 which is 10% higher compared to 2007 of 115,060 subscriber, while Internet broadband subscribers jumped 169% to 110,239 subscribers in the same time frame.
By the end of 2008, Broadband posted revenues of Rp 529 billion, a 20.75% increase from 2007’s Rp 438.6 billion. Home cable and FastNet provided the highest contribution to First Media’s revenues, accounting for 43% and 41%, respectively. While Datacomm and Media Sales each contributed 9% and 7%, respectively. This growth in revenues was achieved due to significant increase of FastNet revenue after launching on September 1, 2007.
Data Management & Archiving and Outsourcing Services PT Multifiling Mitra Indonesia (“MMI”), supported by four warehouses in Lippo Cikarang, Surabaya, Medan and Bandung, A leader in archival outsourcing business and an ISO 9001:2000 certified company, continues to expand its business in line with the increasing awareness of business to delegate their archival and data management processes to firms that specialize in this field. Outsourcing helps increase efficiencies and optimizes human resources for customers, allowing them to focus more on their core business. MMI has successfully increased and developed new innovative products and services for its customers including document conversion with 24- hour online access, record management services, computer data management, CD imaging and micro graphics.
PT Visionet Internasional (“VisioNet”), continues to grow with a significant increase in clients and service points throughout Indonesia. Now operating out of 28 cities nationwide, VisioNet’s ISO 9001:2000 certification ensures that clients will get the best information management in the field of Electronic Data Capture (EDC)
Multipolar believes outsourcing services will play a significant role in 2009 as demand will continue to grow for customers to delegate their non-critical IT functions to allow them to focus more on core business competencies as well as reducing costs. THE NEXT LEVEL OF INNOVATION 20 Annual Report 2008 • PT Multipolar Tbk
Development of Human Capital
“Employees play a key role in making Multipolar an internationally recognized IT Solutions provider over the decades and continue to achieve important milestones through the years.” THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 21
Since its inception, Multipolar is committed to implementing it in their daily activities and thus making continuously enhancing its human resources, as it a part of the company’s culture. the Company believes its future success lies in the current investments toward developing its intellectual Employees play a key role in making Multipolar an capital. This is realized through the advancement internationally recognized IT Solutions provider over and execution of an integrated human resources the decades and continue to achieve important management system, which begins with the milestones through the years. The company rewards recruitment of quality personnel, providing internal accomplished employees who have contributed in and external training as well as periodically evaluating raising Multipolar’s performance and always seek performance to further develop their employees’ skills feedback to further develop its policies and procedures and character. towards a mutually profitable objective.
In addition, the Company provides complete facilities Currently, the company has 230 employees, which and media in-house to support the development of consists 12 in senior management, 35 in middle its employees at all career levels. This investment in a management, and 183 at staff levels. From this pool of strong organizational structure, professionalism, and professionals, 51 are certified by Cisco, Microsoft, IBM corporate commitment would result in individual and others, 63% are between the ages of 26-35 years employees with a strong sense of leadership that old, while 37% are aged between 36-45 years old. is effective in facing future challenges with creative solutions. By continually nurturing and enhancing human capital competencies in line with the latest technologies and Multipolar’s unique corporate culture blends the market developments, Multipolar will always be able principles of mutual respect with professionalism and to meet customer requirements as well as market the personal integrity. The company’s Code of Conduct, latest quality products with the best customer service. which manages the internal relationships between In these difficult economic times, investing in human Multipolar employees as well as external relationships capital would yield promising rewards down the line. with parties outside the company, is provided to all new employees during their orientation. At every opportunity, this Code of Conduct is socialized to employees and customers for it to be consistently implemented. This continuous socialization is hoped to further develop our employees from merely knowing about the Code of Conduct but rather to actually THE NEXT LEVEL OF INNOVATION 22 Annual Report 2008 • PT Multipolar Tbk
Good Corporate Governance
“Multipolar has long believed that its commitment to corporate governance by all stakeholders will provide long-term benefits for the company and all its partners.”
In an era where customers demand greater quarter, in conjunction with its subsidiaries First Media transparency to ensure they receive the best value for and Matahari, to address an issue that sometimes their money, Multipolar is well prepared to ensure that escape the public’s attention, blood bank shortages. its business practices adhere to a number of national Now recognized as a regular event, Multipolar hopes and international standards and treaties. Multipolar that its blood donation drives will help increase has long believed that its commitment to corporate awareness and motivate people to take a little time governance by all stakeholders will provide long- away from their busy schedule to save a life. Scores of term benefits for the company and all its partners. A Multipolar employees participated in these drives and majority of its principals and shareholders continue to shared their experience with others in the hope they support its investment in good corporate governance too will contribute. The Company also participated in at all levels of the company. Multipolar’s corporate sponsoring soccer competitions for local junior schools culture continually ensures that its stakeholders in the Karawaci and Tangerang areas organized by remain transparent, accountable, responsible, fair and Sekolah Pelita Harapan. independent when working towards their common goals. Multipolar also proudly received the 2008 Indonesian Financial Reporting Award (IFRA) where the Company For every business decision, human resources training reached the 1st winner of the IFRA 2008 for Trade and even marketing campaigns, good corporate Industry category. The Award is given to companies governance considerations will always be a part that have a high level of compliance to Bapepam of the process as it will ensure the presence of an (Capital Market Supervisory Body) Rules & Regulations adequate mechanism within the company where the on Financial Reporting. The Steering Committee strategies and business processes can be implemented consists of the Department of Accounting, Faculty consistently, at all levels, in line with the established of Economics of the University of Indonesia (FE-UI); Multipolar vision and mission. This in turn will reflect on Bapepam-LK; Bisnis Indonesia Daily News; Indonesia the quality, responsibilities and long-term development Accounting Association (IAI); Indonesia Public of the company, making Multipolar an ideal trusted Accounting Institute (IAPI); and Accounting Laboratory partner for future opportunities. of FE-UI. The Steering Committee reviewed 229 companies and selected 11 winners from 11 different Like other world-class public companies, all corporate industries. information and data are made available at Multipolar’s offices to anyone who requires it as long as that Multipolar’s Code of Conduct, established in 2006, information and data has already been released to provides an ethical basis for all internal and external the public. The Corporate Secretary is the key contact relationships for its stakeholders, which include person who provides corporate information such as the employees, suppliers, partners, shareholders, Financial and Annual Reports as well as press releases affiliated companies, principals, investors, customers, and others. This information can also be accessed via government, communities and the surrounding Multipolar’s website at www.multipolar.com environment. Adherence to this Code of Conduct helps ensure the Company is consistent with its Good As good corporate citizens, Multipolar has consistently Corporate Governance practices and is continually over the years taken part in a number of community evaluated by Multipolar’s Audit Committee. initiatives to provide its social contribution for its immediate and national surroundings. In 2008, the Formed by the Board of Commissioners, the Audit Company organized Blood Donation drives once every Committee is responsible for reviewing the company’s THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 23
audited financial reports and assessing them with an Relationships with principals are affected by the external auditor. In June 2008, the Board appointed company’s fulfillment of their requirements. The a new Audit Committee to replace the previous Company anticipates this by conducting evaluations committee in line with Bapepam regulations. The from time to time in order to ensure its responsibilities new Audit Committee consists of Bapak Dr. Isnandar for principals are enacted consistently. Rachmat Ali, SE, MM as the committee chairman along with Bapak Herman Latief and Bapak Purnomo Budi As an ISO 9001:2000 certified company in management Satrijo as committee members. The Audit Committee quality for hardware, software and professional continually communicates with the Company’s internal services, Multipolar is consistently focused on customer auditor to discuss oversight issues, as prescribed by the satisfaction by providing high quality products and company’s Audit Committee charter. services towards achieving long term growth and maximizing company value. The Company will The Company’s Board of Commissioners currently continue to enact good corporate governance as an consists of six members, including the President integral part of its daily activities since its carefully Commissioner, who has the main function of prepared implementation will help raise the company’s supervising Multipolar management, including the credibility in the eyes of customers, partners and the implementation of the company’s business plan. general public as a whole. The Board of Commissioners meets at least once every quarter and whenever there is a request from a member of the Board.
The main function of the Board of Directors, which currently consists of four people including the President Director, is to lead and manage the company as well as control and administer its assets. The Board of Directors meets once a month or at the request of one of its directors. THE NEXT LEVEL OF INNOVATION 24 Annual Report 2008 • PT Multipolar Tbk
Audit Committee’’’’’’ s Report
March 31st, 2008
No.CSS.043-2009
The Distinguished Members Board of Commissioners PT Multipolar Tbk. Jakarta
Gentlemen,
Re: Audit Committee Report
In accordance to the Bapepam Rule No. IX.I.5 on the Audit Committee and the Jakarta Stock Exchange Rule No. 1-A on the General Listing Rule of Equity Type of Shares in the Bourse, we as the Audit Committee of PT Multipolar Tbk. (‘the Company’) has executed its duties and responsibilities in accordance with the Audit Committee Charter outlined by the Board of Commissioners of the Company.
We hereby report on the activities and discussions held at the Audit Committee meeting during the period of July 2008 up to March 2009 where the Audit Committee has conducted 3 Meetings and attended by the Management of the Company. The Meetings covered:
1. Analysis on the Financial Report and other relevant financial information for the fiscal year ending December 31, 2008.
2. Analysis on the independency and objectivity of the Public Accountant.
3. Analysis on the effectiveness of the Company’s internal control.
4. Analysis on the Company’s level of compliance towards capital market regulations and other regulations pertaining to the Company’s businesses.
To fulfill the requirements to disclose the results of the Audit Committee’s analysis regarding the Company’s Annual Report, we hereby concluded the following:
1. The Company’s businesses have been effectively carried out the control of an internal function, which is also continuously improved inline with the directions outlined by the Directors, under the supervision of the Board of Commissioners.
2. The Directors have appointed Public Accountant Aryanto Amir Jusuf & Mawar to audit the consolidated financial report of PT. Multipolar Tbk. and its subsidiaries for the year ended December 31, 2008 based on the authorization granted by the shareholders in the Annual General Shareholders’ Meeting held on March 19, 2008. THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 25
3. Based on the Report from the Public Accountant Aryanto Amir Jusuf & Mawar, the Financial Report for the year ending December 31, 2008 has been well compiled and presented in conformity with the accepted general accounting practices in Indonesia.
The Audit Committee hereby submits this Report.
Thank you for your kind attention and for the trust given to us.
Sincerely yours,
DR. Isnandar Rachmat Ali, SE, MM Purnomo Budi Satrijo Herman Latief Chairman Member Member THE NEXT LEVEL OF INNOVATION 26 Annual Report 2008 • PT Multipolar Tbk
Management Discussion & Analysis
“Multipolar’s consolidated operating profit for the year ending on December 31, 2008 increased to Rp 529.8 billion or up 20.01% compared to 2007. This rise is the result of the Company’s cost efficiency.” THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 27
2008 was a chaotic year for the financial markets, Multipolar’s consolidated operating profit for the year which also eventually affected other industries around ending on December 31, 2008 increased to Rp 529.8 the world. Indonesia witnessed massive capital flight billion or up 20.01% compared to 2007. This rise is the from the Indonesia Stock Exchange. In addition, the result of the Company’s cost efficiency. Indonesian inflation rate peaked at 11.4% however it is expected to return to lower levels in 2009. Despite The bottom line of the Company for 2008 was a loss the slowdown in Q4, Multipolar still maintained its IT of Rp 196.5 billion on a consolidated basis, mainly leadership position by continuing to expand its market from the unrealized mark to market loss from hedging base outside of its traditional financial and banking contracts and unrealized foreign exchange loss of our industry portfolio. subsidiaries and associates as a result of extraordinary sharp fluctuations in exchange rates in the last quarter Subsidiary PT Matahari Putra Prima Tbk. (Matahari) of 2008. had a banner year in 2008 with substantial increase in its revenues. Overall, Matahari managed to open Financial Condition seven new department stores, 15 hypermarkets, two In 2008, the company booked total assets of Rp 11.4 foodmarts and several additional supporting retail trillion, or an increase of 15.89% from 2007 levels of Rp outlets including its Timezone entertainment centers 9.8 trillion. This rise is mostly due to business expansion and Times Bookstores during the calendar year. It seeks of the Company. to continue its growth momentum but will undertake strategic measures to control costs and capital Total liabilities for 2008 also went up to Rp 8.3 trillion expenditures during this distressed global economy. or up 29.39% compared to the previous year, which is mostly due to the increase in debt. Operational Results 2008 saw the company booking net revenues of Rp The amount of equity as of December 31 2008 12.7 trillion or 22.56% higher compared to 2007. This decreased 14.02% from Rp 1.8 trillion in 2007 to Rp 1.5 increase is due to the significant contributions from trillion in 2008. The decrease mainly resulted from the Matahari, which saw a 22.61% increase in growth of significant unrealized foreign exchange losses. consolidated sales. Matahari’s two main businesses, the Matahari Department Store (MDS) division posted a total sales growth of 17.6% with sales of Rp 5.9 trillion and the Matahari Food Business (MFB) division came with sales reaching Rp 5.7 trillion or a growth of 27.1% compared to the same period last year.
In 2007, intense competition and price hikes in commodity products forced the company to compete intensely through price, product quality and services. Nevertheless, the company successfully booked a gross profit of Rp 3.2 trillion, or an increase of 20.57% from 2007 with a margin of 25.51%. THE NEXT LEVEL OF INNOVATION 28 Annual Report 2008 • PT Multipolar Tbk
Corporate Data
Corporate Information 16th Fl. Menara Matahari Jl. Palem Raya Bulevar No.7 Lippo Karawaci 1100 Tangerang 15811 Indonesia Tel : (62 21) 55-777-000, 546-0011 Fax : (62 21) 546-0020, 546-3001 Email : [email protected] Website : www.multipolar.com
History Date/tanggal Date of Establishment 4-Dec-75 Initial Public Offering 21-Sep-89 Initial Listing 6-Nov-89 Company Listing 16-Jul-90 Right Issue I 25-Jun-96 Right Issue II 26-Jun-97 Limited Public Offering 15-Feb-00 Right Issue III 10-Jun-05 Right Issue IV 24-Nov-06
Listed in Indonesia Stock Exchange
Share Code MLPL
Share Registration PT Sharestar Indonesia 3rd Fl. Citra Graha Building Jl. Gatot Subroto Kav.35-36 Jakarta 12950 Tel : (62 21) 527-7966 Fax : (62 21) 527-7967
Public Accountant Aryanto Amir Jusuf & Mawar Plaza ABDA Building, 10th & 11th Floor Jl. Jend. Sudirman Kav.59 Jakarta 12190 Tel : (62 21) 5140 1340 Fax : (62 21) 5140 1350, 5140 1312
Total Employees 230
AGM Schedule 24-Apr-09 THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 29
Achievements in 2008
1. IBM Business Partner – 2008 Recognition 2. IBM Business Partner 3rd Q 2008 Recognition 3. Outstanding Entrepreneur Award 2008 from the Asia Pacific Entrepreneurship Awards 4. 2008 Indonesian Financial Reporting Award for Trade Industry category. 5. MIMIX Best Partner 2007 6. The Best Selling Partner 2006- Sistech Kharisma 7. CTI Golden Achievement Award 2006 – IBM Product 8. CTI Golden Achievement Award 2006 – Oracle Product 9. The Best Public Listed Company in Electronic Sector in 2005 by Investor Magazine 10. MIMIX STAR Marketing Achievement Award 11. Partner of the year for MIMIX Marketing 12. Recognition of Achieving a Microsoft Competency in Delivering Information Worker Solutions 13. Recognition of Achieving Microsoft Competency in Delivering Information Infrastructure Solutions 14. NCR Circle of Distinction 15. NCR Best Performance in Asia Region 16. IBM Business Partner 3rd Q 2005 Award 17. IBM Business Partner 4th Q 2005 Award 18. IBM Business Partner 2005 Recognition BP of the Year 19. IBM Business Partner 2005 Recognition Star of the Year 20. IBM Top Contributor Software 2005 Business Partner 21. IBM Business Partner 2005 Recognition 100% Achiever. THE NEXT LEVEL OF INNOVATION 30 Annual Report 2008 • PT Multipolar Tbk
Curriculum Vitae of Audit Committee
DR. Isnandar Rachmat Ali, SE, MM Independent Commissioner
Dr. Isnandar Rachmat Ali, obtained his Doctoral Degree (PhD) in Education Management from the Jakarta State University. He began his career at various industrial companies. In 1980-1989 he was Vice President Director of Bank Bhumy Bahari and from 1989-2001 as Vice President Director at Tokai Lippo Bank. Since 1990 until now, active as a lecturer at Krisnadwipayana University.
Purnomo Budi Satrijo Member of Audit Committee
Appointed as member of Audit Committee in 2008. He started his career at Citibank, Jakarta in 1968 until 1976 with the last position as Pro Manager, Branch Head of Operation. He joined Bank Niaga in 1976 until 1984 with the last position as Vice President, System and Procedure. From 1984 to 1990 he worked at Bank Lippo with the last position as Senior Vice President, System and Procedure. From 1990 until March 1999 he held position as Director, Computerization and Administration at Bank Central Dagang and in November 1999 until June 2002, he was one of team member of ING Bank working as consultant at Bank Lippo. Mr. Purnomo had education from the Faculty of Economics, the University of Diponegoro.
Herman Latief Member of Audit Committee
Appointed as member of Audit Committee in 2008. He has extensive experience in property area. Graduated from Diplom Ingenieru Architect (Dipl.Ing) of TFH – Hamburg, Germany in 1976, he worked as architect in PT Widya Pertiwi Engineering. From 1979-1988 he held position as Director in one of Kalbe Farma Group company. Fron 1989 until 1999 he was President Director of PT Lippo Cikarang Tbk. and in 1999 he was appointed as Vice President Commissioner of PT Lippo Cikarang Tbk. From 2001 to 2004, he was a Commissioner of PT Lippo Land Development and Commissioner of PT Bukit Sentul Tbk. form 2001 – 2005. Since 2004 until now he holds position as Director of PT East Jakarta Industrial Park. He is also active in several organizations including Vice President of Board of Advisory of Indonesia Industrial Estate Association since 2000, Vice President of Real Estate Indonesia since 1999 and Vice President of Infrastructure and people housing area of Indonesian Chamber of Commerce & Industry since 2009. THE NEXT LEVEL OF INNOVATION Annual Report 2008 • PT Multipolar Tbk 31
Responsibility for 2008 Annual Report
The 2008 Annual Report Jakarta, April 2009 including the accompanying financial statement and related information are prepared by the management of PT Multipolar Tbk. The Board of Directors and the Board of Commissioners are fully responsible for the content of the Annual Report.
Dr. Cheng Cheng Wen Jonathan L. Parapak President Commissioner Independent Commissioner
Dr. Isnandar Rachmat Ali, SE, MM Benyamin J. Mailool Independent Commissioner Commissioner
Jeffrey Koes Wonsono Harijono Suwarno President Director Director
Antonius Agus Susanto Reynold Pena Ong Director Director
• Marshall Wallace Cooper resigned as Commissioner of the Company on 29 October 2008 • L. Krisnan Cahya resigned as Commissioner of the Company on 10 November 2008 THE NEXT LEVEL OF INNOVATION 32 Annual Report 2008 • PT Multipolar Tbk
This page is intensionally left blank 2008 FINANCIAL REPORT PT Multipolar Tbk This page is intensionally left blank
These consolidated financial statements are originally issued in Indonesian language
R/099.AGA/5.3/03/09 PT MULTIPOLAR Tbk AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, 2008 and 2007 (In Million Rupiah, Except Share Data)
ASSETS Note 2008 2007 Rp Rp CURRENT ASSETS Cash and Cash Equivalents 2.c, 2.p, 3, 29 1,896,282 2,813,019 Short-term Investments 2.d, 2.p, 4, 29, 32 Related Parties 30 1,156,498 365,060 Third Parties 757,161 593,240 Accounts Receivable 2.e, 2.p, 5, 29 Trade - Net Related Parties 30 18,298 37,367 Third Parties 200,277 164,620 Others 650,122 133,211 Inventories - Net 2.f, 6 1,030,304 944,886 Prepaid Taxes and Expenses 2.g, 2.s, 16.a, 30 207,490 161,835 Option/Forward Contract Assets 2.q, 29, 31 286,550 -- Other Current Assets 2.p, 29 50,227 49,019 Total Current Assets 6,253,209 5,262,257
NON-CURRENT ASSETS Due from Related Parties 30 10,042 7,092 Deferred Tax Assets - Net 2.s, 16.b 116,398 12,975 Investments in Associates 2.d, 7, 30 147,994 192,793 Other Long-term Investments 2.d, 8, 30, 32 123,969 223,025 Property and Equipment (Net of accumulated depreciation of Rp 1,945,448 and Rp 1,649,333 as of December 31, 2008 and 2007 and allowance for possible loss from disposal of Rp 24,897 as of December 31, 2008 and 2007, respectively) 2.h, 2.j, 9, 32 2,009,399 1,819,748 Rental Advances 10, 30, 32 Related Parties 286,433 384,345 Third Parties 847,212 601,469 Prepaid Long-term Rent - Net 2.k, 11, 30 Related Parties 162,971 84,944 Third Parties 615,973 303,725 Advance for Purchase of Property and Equipment 12, 30, 32 Related Parties 118,000 118,000 Third Parties 159,119 172,569 Option Contract Assets 2.q, 29, 31 20,289 98,724 Intangible Assets - Net 2.l 214,050 219,288 Other Non-Current Assets - Net 2.d, 2.h, 2.j, 30, 32 317,440 337,786 Total Non-Current Assets 5,149,289 4,576,483
TOTAL ASSETS 11,402,498 9,838,740
See the Accompanying Notes which are an integral part of these Consolidated Financial Statements FINAL DRAFT For Discussion Purpose Only 1 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
R/099.AGA/5.3/03/09 PT MULTIPOLAR Tbk AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Continued) As of December 31, 2008 and 2007 (In Million Rupiah, Except Share Data)
LIABILITIES, MINORITY INTEREST AND Note 2008 2007 STOCKHOLDERS' EQUITY Rp Rp
CURRENT LIABILITIES Short-term Loans 2.p, 13, 29 466,879 336,430 Promissory Notes 2.p, 29 3,285 2,826 Accounts Payable 2.p, 14, 29, 30 Trade Related Parties 28 552 Third Parties 1,252,375 1,009,690 Others 15, 32 459,270 390,895 Taxes Payable 2.s, 16.c 68,009 65,395 Accrued Expenses 2.m, 2.p, 17, 29, 30 525,979 410,644 Current Maturities of Long-term Debts Notes Payable - Net 2.m, 2.p, 19, 29 1,292,079 -- Loans 2.p, 20, 29 113,204 140,368 Bonds - Net 2.m, 2.n, 18 441,640 -- Current Portion of Deferred Gain on Asset Sale and Lease Transactions 1.c, 2.j, 9, 32 38,362 42,715 Swap Contract Liability 2.q, 29, 31 495,230 -- Other Current Liabilities 2.p, 15, 30 57,795 34,476 Total Current Liabilities 5,214,135 2,433,991
NON-CURRENT LIABILITIES Due to Related Parties 30 3,643 5,427 Deferred Tax Liabilities - Net 2.s, 16.b 9,457 13,030 Long-term Debts - Net of Current Maturities Notes Payable - Net 2.m, 2.p, 19, 29 -- 1,366,081 Loans 2.p, 20, 29 2,360,397 1,447,276 Bonds - Net 1.b, 2.m, 2.n, 2.p, 18 -- 445,144 Deferred Gain on Asset Sale and Lease Transactions - Net of Current Portion 1.c, 2.j, 9, 32 349,427 379,567 Swap Contract Liability 2.q, 29, 30 18,002 84,997 Other Long-term Payables - Net 2.p, 2.t, 21, 29 311,212 213,039 Total Non-Current Liabilities 3,052,138 3,954,561
MINORITY INTEREST 2.b 1,631,091 1,699,656
See the Accompanying Notes which are an integral part of these Consolidated Financial Statements FINAL DRAFT For Discussion Purpose Only 2 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
R/099.AGA/5.3/03/09 PT MULTIPOLAR Tbk AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Continued) As of December 31, 2008 and 2007 (In Million Rupiah, Except Share Data)
LIABILITIES, MINORITY INTEREST AND Note 2008 2007 STOCKHOLDERS' EQUITY Rp Rp
STOCKHOLDERS' EQUITY Capital Stock Authorized Capital 1,871,768,000 shares of class A (par value Rp 500 per share) and 22,452,928,000 shares of class B (par value Rp 125 per share) Issued and Fully Paid 1,871,768,000 shares of class A and 4,913,391,000 shares of class B 1.b, 22 1,550,058 1,550,058 Additional Paid in Capital - Net 1.b, 2.m, 23 14,397 14,397 Changes in Equity Transaction of Subsidiary/Associate 2.d, 24 (81,625) (30,548) Unrealized Gain on Available for Sale Securities 2.d 100,045 73,070 Cash Flow Hedging Reserve 2.q, 31 (18,002) -- Retained Earnings (Deficit) Appropriated 33 300 -- Unappropirated (60,039) 143,555 Total Stockholders' Equity 1,505,134 1,750,532 TOTAL LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY 11,402,498 9,838,740
See the Accompanying Notes which are an integral part of these Consolidated Financial Statements FINAL DRAFT For Discussion Purpose Only 3 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
R/099.AGA/5.3/03/09 PT MULTIPOLAR Tbk AND SUBSIDIAIRIES CONSOLIDATED STATEMENTS OF INCOME For the Years Ended December 31, 2008 and 2007 (In Million Rupiah, Except Share Data)
Note 2008 2007 Rp Rp
NET SALES, SERVICES AND OTHER OPERATING REVENUE 2.o, 25, 30 12,709,388 10,370,107
COST OF SALES AND SERVICES 2.o, 26, 30 9,467,156 7,681,047
GROSS PROFIT 3,242,232 2,689,060
OPERATING EXPENSES 2.o, 27, 30 Selling 957,680 692,485 General and Administrative 1,754,710 1,555,074 Total Operating Expenses 2,712,390 2,247,559
INCOME FROM OPERATIONS 529,842 441,501
OTHER INCOME (CHARGES) Loss on Foreign Exchange - Net, including Gain (Loss) on Changes in Fair Value of Currency Swap/Option/Forward Contracts 2.q (489,598) (8,376) Interest Expense and Other Financing Cost - Net 28, 30 (250,814) (300,745) Gain on Increase in Market Value of Marketable Securities - Net 2.d 32,062 56,258 Others - Net (31,061) (7,657) Total Other Charges - Net (739,411) (260,520)
INCOME (LOSS) BEFORE EQUITY IN NET EARNINGS (LOSS) OF ASSOCIATES (209,569) 180,981
EQUITY IN NET EARNINGS (LOSS) OF ASSOCIATES - NET 2.d, 7, 30 (50,399) 7,540
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE) (259,968) 188,521
INCOME TAX BENEFIT (EXPENSE) 2.s Current 16.a (38,218) (41,339) Deferred 16.b 106,995 3,881 Total Income Tax Benefit (Expense) 68,777 (37,458)
NET INCOME (LOSS) BEFORE MINORITY INTEREST (191,191) 151,063
MINORITY INTEREST 2.b (5,318) (89,746)
NET INCOME (LOSS) (196,509) 61,317
BASIC EARNING (LOSS) PER SHARE (in Full Rupiah) 2.u (28.96) 9.25
See the Accompanying Notes which are an integral part of these Consolidated Financial Statements FINAL DRAFT For Discussion Purpose Only 4 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
R/099.AGA/5.3/03/09
PT MULTIPOLAR Tbk AND SUBSIDIAIRIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY For the Years Ended December 31, 2008 and 2007 (In Million Rupiah, Except Share Data)
Note Capital Stock Additional Paid Changes in Equity Unrealized Gain Cash Flow Retained Earnings (Deficit) Total in Capital - Net Transaction of on Available for Hedging Stockholders' Subsidiary/ Associate Sale Securities Reserve Appropriated Unappropriated Equity Rp Rp Rp Rp Rp Rp Rp Rp
BALANCE AS OF DECEMBER 31, 2006 1,247,601 21,104 (2,176) 8,823 -- -- 89,023 1,364,375
Additional Paid in Capital Through Pre-Emptive Rights Issuance on Limited Public Offering IV 1.b, 22 302,457 ------302,457 Stock Issuance Cost 2.m, 23 -- (6,707) ------(6,707) Changes in Equity Transaction of Subsidiary/Associates 2.d -- -- (28,372) ------(28,372) Unrealized Gain on Available for Sale Securities 2.d ------64,247 ------64,247 Cash Dividend 33 ------(6,785) (6,785) Net Income ------61,317 61,317 BALANCE AS OF DECEMBER 31, 2007 1,550,058 14,397 (30,548) 73,070 -- -- 143,555 1,750,532
Appropriation of Retained Earnings 33 ------300 (300) -- Changes in Equity Transaction of Subsidiary/Associates 2.d -- -- (51,077) ------(51,077) Unrealized Gain on Available for Sale Securities 2.d ------26,975 ------26,975 Unrealized Loss on Cash Flow Hedging Reserve 2.q, 31 ------(18,002) -- -- (18,002) Cash Dividend 33 ------(6,785) (6,785) Net Loss ------(196,509) (196,509) BALANCE AS OF DECEMBER 31, 2008 1,550,058 14,397 (81,625) 100,045 (18,002) 300 (60,039) 1,505,134
See the Accompanying Notes which are an integral part of these Consolidated Financial Statements FINAL DRAFT For Discussion Purpose Only 5 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
R/099.AGA/5.3/03/09 PT MULTIPOLAR Tbk AND SUBSIDIAIRIES CONSOLIDATED STATEMENTS CASH FLOWS For the Years Ended December 31, 2008 and 2007 (In Million Rupiah, Except Share Data)
2008 2007 Rp Rp
CASH FLOWS FROM OPERATING ACTIVITIES Collections from Sales 12,735,809 10,445,247 Cash Paid During the Year for: Operating Expenses (Excluding Salaries, Allowance and Employees Benefits) (775,619) (710,846) Salaries, Allowance and Employee Benefits (838,034) (658,893) Suppliers (9,254,962) (7,394,891) Net Cash Received from Operations 1,867,194 1,680,617 Payment for Taxes (30,742) (47,821) Other Expenses - Net (1,081,208) (268,134) Net Cash Flows Provided by Operating Activities 755,244 1,364,662
CASH FLOWS FROM INVESTING ACTIVITIES Disposal of Other Short-term Investments 96,827 212,584 Proceeds from Disposal of Property and Equipments 10,128 11,833 Cash Dividend Received 5,000 2,500 Increase in Short-term Investments (906,377) (175,857) Increase in Rental Advances (669,256) (891,807) Increase in Advances for Purchase of Property and Equipment (339,684) (251,827) Acquisitions of Property and Equipment (221,491) (158,020) Increase in Other Non-Current Assets (19,383) (37,492) Increase in Investment in Associate Company (13,500) (95,521) Proceeds from Assets Restructurization Program -- 771,562 Disposal of Other Long-term Investments -- 25,031 Placement on Time Deposit Escrow Fund -- (262,175) Increase in Other Payables from the Receipt of Escrow Fund -- 262,175 Net Cash Flows Used in Investing Activities (2,057,736) (587,014)
See the Accompanying Notes which are an integral part of these Consolidated Financial Statements FINAL DRAFT For Discussion Purpose Only 6 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
R/099.AGA/5.3/03/09 PT MULTIPOLAR Tbk AND SUBSIDIAIRIES CONSOLIDATED STATEMENTS CASH FLOWS For the Years Ended December 31, 2008 and 2007 (In Million Rupiah, Except Share Data)
2008 2007 Rp Rp CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Loans and Promissory Notes 1,802,768 2,501,390 Proceeds from Hedging Option Contract 7,095 -- Receipts (Payments) of Other Long-term Payables 2,006 (11,972) Payments of Bonds Payable -- (450,000) Receipt from Limited Public Offering -- 802,926 Payment of Stock Issuance Cost -- (21,550) Receipts from (Payments to) Related Parties (1,784) 2,767 Payment of Cash Dividend of the Company (6,759) (6,785) Buy-back of Bonds Payable (7,000) -- Payment of Cash Dividend to MPP's Minority Interest and Subsidiaries (25,899) (23,422) Interest Expense and Other Financing Cost (157,181) (239,600) Buy-back of Notes Payable (286,948) -- Repayments of Loans and Promissory Notes (940,543) (1,951,956) Net Cash Flows Provided by Financing Activities 385,755 601,798
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (916,737) 1,379,446
TOTAL CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 2,813,019 1,433,573
TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 1,896,282 2,813,019
Supplemental Cash Flows Information
Transactions not Affecting Cash Flows Reclassification of advances for purchase of property and equipment to property and equipment 366,549 462,099 Reclassification of rental advances to prepaid rent 300,977 86,936 Investment in LMIR Trust units through sale of assets -- 258,786 Reclassification of other non-current assets to current assets -- 211,289 Reclassification of other non-current assets to property and equipment -- 8,397
See the Accompanying Notes which are an integral part of these Consolidated Financial Statements FINAL DRAFT For Discussion Purpose Only 7 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
1. General
1.a. The Company's Establishment PT Multipolar Tbk (the Company) was incorporated in the Republic of Indonesia on December 4, 1975 based on notarial deed No. 7 of Adlan Yulizar, SH, which has been amended several times, the latest by notarial deed No. 119 by Misahardi Wilamarta, SH, No. 119 dated March 25, 1982. The deed of establishment and its amendments were approved by the Minister of Justice in his decree No. C2- 1093.HT.01.01.Th.82 dated September 3, 1982 and were published in the State Gazette No. 84, Supplement No. 938 dated October 20, 1987. The articles of association has been amended several times, the latest based on notarial deed No. 40 of Poerbaningsih Adi Warsito, SH, dated August 8, 2008, in order to comply with Law of Republic of Indonesia No. 40 year 2007 concerning limited corporation. The amendment was approved by the Minister of Justice and Human Rights of Republic of Indonesia in his letter No: AHU-80589.AH.01.02.Year 2008 dated October 31, 2008.
The Company is primarily engaged in systems integration services, including importation, trading, distribution and service of computers and related products, rental of computer equipments, management and information technology consulting services, and also acts as IBM business partner (system integration, system remarketer and PS 2 advance function).
The Company is domiciled in Jakarta. Its operational head office is located at Menara Matahari, Palem Raya Bulevar No. 7, Lippo Karawaci - Tangerang, Banten.
The Company started its commercial operation on December 4, 1975.
1.b. Company's Public Offerings On September 18, 1989, by virtue of the letter of the Minister of Finance No. SI-052/SHM/MK.10/1989, the Company offered 3,428,000 shares to the public. All of the issued shares have been listed on the Jakarta Stock Exchange in 1989 and on the Surabaya Stock Exchange in 1990. In 1996 and 1997, the Company listed additional 102,852,000 shares (at par value of Rp 1,000 per share) and 1,508,496,000 new shares (at par value of Rp 500 per share) on the Jakarta and Surabaya Stock Exchanges in connection with Limited Public Offering of Pre-Emptive Rights Issuance I and II, respectively.
In the Extraordinary Stockholders' General Meeting held on February 15, 2000, as covered by notarial deed No. 44 dated February 15, 2000 of Poerbaningsih Adi Warsito, SH, the stockholders approved the issuance of 89,138,400 new shares other than Limited Public Offering to strategic investors. However, only 89,000,000 new shares were approved for listing, other than Limited Public Offering, by PT Bursa Efek Jakarta in its letter No. S-2183/BEJ.EEM/07/2000 dated July 24, 2000 and by PT Bursa Efek Surabaya in its letter No. 005/EMT/LIST/BES/IV/2000 dated April 18, 2000.
In 2005, the Company conducted Limited Public Offering in connection with Pre-Emptive Rights Issuance III of 2,339,710,000 shares class B (at par value of Rp 125 per share) with the offering price at Rp 125 per share. The offering has received an effective notification statement based on the Letter from the Capital Market Supervisory Agency (Bapepam) No. S-1456/PM/2005 dated September 7, 2005, and became effective after obtained an approval from the Company’s Stockholders General Meeting dated September 10, 2005. All the shares were listed on the Indonesian Stock Exchange (formerly Jakarta Stock Exchange and Surabaya Stock Exchange) on September 24, 2005.
FINAL DRAFT For Discussion Purpose Only 8 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
In 2006, the Company conducted Limited Public Offering in connection with Pre-Emptive Rights Issuance IV of a maximum of 2,573,681,000 class B shares (New Share) at par value of Rp 125 per share with offering price of Rp 125 per share and a maximum of 1,429,822,778. Warrant Series I will be issued attached to the new shares which being offered free of cost as an incentive to the stockholders of the Company and/or Pre-Emptive Rights Holders who exercise their rights. The offering has received an effective notification statement based on the Letter from the Chairman of Capital Market Supervisory Agency (Bapepam) No. S-2910/BL/2006 dated November 23, 2006, and became effective after obtained an approval from the Company’s Stockholders General Meeting dated November 24, 2006. Pre-Emptive Rights Issuance trading period from December 8, 2006 until January 22, 2007 with share allotment date on January 25, 2007.
All of the Company's issued shares were listed in the Indonesian Stock Exchange (formerly Jakarta and Surabaya Stock Exchanges).
1.c. Structure of the Subsidiaries (1) The Company has direct and indirect ownership over the following subsidiaries:
Subsidiaries Domicile Operations Percentage of Ownership* Start of Total Asset 2008 2007 Commercial 2008 2007 % % Operations Rp Rp PT Sharestar Indonesia (SI) Jakarta Share Administration and 100.00 100.00 1990 16,735 16,763 Other Services PT Multipolar Technology (MT) Jakarta Trading 100.00 100.00 2000 357 347 PT Visionet Internasional (VI) Jakarta Trading 100.00 100.00 2002 89,619 90,930 PT Reksa Puspita Karya (RPK) Jakarta Trading 100.00 100.00 Non Operating 116,261 141,615 PT Tryane Saptajagat (TS) Jakarta Trading 100.00 100.00 Non Operating 49 53 PT Multifiling Mitra Indonesia Cikarang, Bekasi Archive Management 50.20 50.20 1993 63,203 47,991 (MMI) PT Matahari Putra Prima Tbk Tangerang, West Retail Business 50.10 50.10 1986 9,741,369 8,446,442 (MPP) Java PT Matahari Super Ekonomi Tangerang, West Retail Business 100.00 100.00 1994 15,545 13,834 (MSE) Java Matahari International Finance Rotterdam, Financing Business 100.00 100.00 1996 7,163 6,447 Company B.V. (MIFCO) Netherlands PT Nadya Putra Investama (NPI) Tangerang, West General Trading 100.00 100.00 1998 826,388 855,580 Java PT Taraprima Reksabuana Jakarta Sale and Marketing of 100.00 100.00 1998 14,590 32,633 (TPRB) Mineral Water PT Matahari Kafe Nusantara Tangerang, West Restaurant 100.00 100.00 2001 226 314 (MKN) Java PT Matahari Mega Swalayan Tangerang, West General Trading 100.00 100.00 Non Operating 5,010 4,847 (MMS) Java PT Matahari Mega Toserba Tangerang, West Retail Business 100.00 100.00 Non Operating 2,255 2,294 (MMT) Java PT Matahari Boston Drugstore Tangerang, West Drugstore 100.00 100.00 Non Operating 2,360 2,244 (MBD) Java Prime Connection Limited (PCL) British Virgin Investment Company 100.00 100.00 Non Operating 5 5 Islands PT Matahari Graha Fantasi Jakarta Family Entertainment 50.01 50.01 1995 165,563 177,784 (MGF) Brighter Limited (BL) British Virgin Investment Company 100.00 100.00 Non Operating 8,238 24,264 Islands Matahari Finance B.V. (MF) Armsterdam, Financing Business 100.00 100.00 2006 2,177,864 1,476,833 Netherlands PT Times Prima Indonesia (TPI) Tangerang, West Services and General 100.00 - 2008 24,210 - Java Trading PT Prima Cipta Lestari (Prima) Tangerang, West Restaurant 100.00 - Non Operating 9,735 - Java PT Matahari Pacific (MP) Tangerang, West Trading and services 100.00 - Non Operating 25,069 - Java Bright Regent Corporation (BRC) Hongkong Investment Company 100.00 100.00 Non Operating 7,720 24,202 Merrill Investment Limited (MI) Labuan, Malaysia Investment Company 100.00 100.00 Non Operating 4,931 4,232
FINAL DRAFT For Discussion Purpose Only 9 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Subsidiaries Domicile Operations Percentage of Ownership* Start of Total Asset 2008 2007 Commercial 2008 2007 % % Operations Rp Rp Matahari Department Store China Retail Business 100.00 100.00 Non Operating 7,245 12,845 (Shenzhen) Limited (MDS) Matahari Trading (Shenzhen) China General Trading 100.00 100.00 Non Operating - 604 Limited (MTL) Grandbright Corporation Limited Hongkong Investment Company 100.00 100.00 Non Operating 0,001 0,001 (GCL) PT Matahari Dana Prima (MDP) Jakarta Consumer Financing 99.99 99.99 Non Operating 1,927 1,927 Business Tristar Capital Limited (Tristar) Labuan, Malaysia Investment Company 100,00 100,00 Non Operating 615,879 668,668 PT Prima Gerbang Persada Jakarta Services, General 100,00 100,00 Non Operating 170,642 168,302 (PGP) Trading and Agribusiness *not represents an effective percentage of ownership
(2) Based on Minutes of Meeting of PT Multipolar System, which notarialized under notarial deed of Notary Surjadi SH, No.1 dated September 3, 2007, has been approved the change of the name of PT Multipolar System become PT Multipolar Technology. The amendment of this article of association has been approved by the Minister of Justice and Human Rights of Republic of Indonesia No. W7-06162 HT.01.04-TH.2007.
(3) As of December 31, 2008, RPK and TS operate in investment activity, while MMS, MMT, MBD, PCL, BL, Prima, MP, BRC, MI, MTL, GCL, MDP and PGP have not started their commercial activities.
(4) On January 26, 2007, MPP, a subsidiary, invested through NPI at 100% to Tristar and Tristar invested at 100% to Madiun Properties Pte. Ltd (Madiun), Java Properties Pte. Ltd (Java), Serpong Properties Pte. Ltd (Serpong), Matos Properties Pte. Ltd (Matos), Detos Properties Pte, Ltd (Detos), Palladium Properties Pte. Ltd. (Palladium) and Metropolis Properties Pte. Ltd. (Metropolis).
(5) On January 31, 2007, MPP, a subsidiary, invested through NPI and MMT at 99% and 1%, respectively to PT Madiun Ritelindo (MR), PT Java Mega Jaya (JMJ), PT Dinamika Serpong (DS), PT Matos Surya Perkasa (MSP), PT Megah Detos Utama (MDU), PT Palladium Megah Lestari (PML) and PT Gema Metropolis Modern (GMM).
(6) In accordance with the implementation of the restructurization program involving certain assets of the MPP, a subsidiary (see Note 9) as approved by the shareholders in the Extraordinary Stockholders’ General Meeting held on April 27, 2007, NPI and MMT transferred on August 10, 2007 all of their ownership in MR, JMJ, DS, MSP, MDU, PML and GMM to Madiun, Java, Serpong, Matos, Detos, Palladium and Metropolis, respectively, where Madiun owns 95% interest in MR and 5% in JMJ, Java owns 95% interest in JMJ and 5% in DS, Serpong owns 95% interest in DS and 5% in GMM, Matos owns 95% interest in MSP and 5% in MDU, Detos owns 95% interest in MDU and 5% in PML, Palladium owns 95% interest in PML and 5% in MR, and Metropolis owns 95% interest in GMM and 5% in MSP. Based on the Share Purchase Agreement dated October 18, 2007, between Tristar Capital Ltd (Tristar) and HSBC Institutional Trust Service (Singapore) Limited (HSBC, a trustee of Lippo-Mapletree Indonesia Retail Trust), all of Tristar’s ownership interests in each of Madiun, Java, Serpong, Matos, Detos, Palladium and Metropolis would be transferred to HSBC on the scheduled listing date of LMIR Trust units on the Singapore Stock Exchange (Notes 2.j, 9 and 32). On November 19, 2007, the transfer of Tristar’s ownership interests was consummated at a total price of SGD 161,246 (equivalent to Rp 1,028,750), resulting in a total gain of Rp 407,114 (net of transaction cost). The gain was recorded as part of “Deferred Gain on Asset Sale and Lease Transactions” (see Notes 2.j and 9).
FINAL DRAFT For Discussion Purpose Only 10 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
(7) On October 9, 2007, MPP, a subsidiary, acquired 100% ownership interest in PGP, developer of Plaza Central located in Lampung, through NPI and MSE.
(8) On February 1, 2008, MPP, a subsidiary, and NPI acquired 99% and 1% ownership interests, respectively, in TPI.
(9) On May 2, 2008, MPP, a subsidiary, and NPI acquired 99% and 1% ownership interests, respectively, in Prima.
(10) On August 22, 2008, MPP, a subsidiary, and NPI acquired 99% and 1% ownership interests, respectively, in MP.
1.d. Commissioners, Directors and Employees As of December 31, 2008, the members of the Company's boards of commissioners and directors based on the Stockholders' Annual General Meeting held on March 19, 2008, as covered by notarial deed No. 39 of Poerbaningsih Adi Warsito, SH, dated March 19, 2008, are as follows:
Board of Commissioners President Commissioner : DR. Cheng Cheng Wen Independent Commissioner : Jonathan Limbong Parapak Independent Commissioner : Isnandar Rachmat Ali Commissioner : Lay Krisnan Cahya Commissioner : Marshall Wallace Cooper Commissioner : Benyamin Jonathan Mailool
Directors President Director : Jeffrey Koes Wonsono Director : Harijono Suwarno Director : Antonius Agus Susanto Director : Reynold Pena Ong
As of December 31, 2007, the members of the Company's boards of commissioners and directors based on the Stockholders' Annual General Meeting held on May 23, 2007, as covered by notarial deed No. 63 of Poerbaningsih Adi Warsito, SH, dated May 23, 2007, are as follows:
Board of Commissioners President Commissioner : DR. Cheng Cheng Wen Independent Commissioner : Jonathan Limbong Parapak Independent Commissioner : M. Salim Radjiman Independent Commissioner : Ketut Budi Wijaya Commissioner : Marshall Wallace Cooper Commissioner : Benyamin Jonathan Mailool Directors President Director : Jeffrey Koes Wonsono Vice President Director : Eddy H. Handoko Director : Harijono Suwarno Director : Antonius Agus Susanto Director : Lay Krisnan Cahya
As of December 31, 2008 and 2007, the Company and subsidiaries have approximately 19,239 and 19,129 permanent employees, respectively (unaudited). FINAL DRAFT For Discussion Purpose Only 11 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
2. Summary of Accounting Policies
2.a. Basis of Measurement and Preparation of Consolidated Financial Statements The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and practices in Indonesia, i.e. Statements of Financial Accounting Standards (SFAS) and the Capital Market Supervisory Agency and Financial Institution (BAPEPAM-LK) rules and guidelines for financial statements presentations and disclosures for public listed trading companies.
The consolidated financial statements have been prepared based on the accrual basis, except for statements of cash flows, and using the historical cost method of accounting, except for certain investments which are either stated at fair value or at net assets value or accounted for under the equity method, swap, option and forward contracts which stated at fair value and inventories which are valued at the lower of cost or net realizable value.
The consolidated statements of cash flows present cash receipts and payments classified into operating, investing and financing activities. The cash flows from operating activities are prepared using the direct method.
The reporting currency used in the consolidated financial statements is Indonesian Rupiah.
2.b. Consolidation Principles The consolidated financial statements included accounts of the Company and subsidiaries as described in Note 1.c.
The presentation of consolidated financial statements are carried out based on entity concept. All significant interrelated accounts, transactions and profit among consolidated companies have been eliminated to reflect the financial position and result of operations as a whole.
The carrying value of the Company’s investment in a subsidiary is correspondingly adjusted for the net change in its investment in the subsidiary’s equity by crediting of debiting “Difference in Changes in Equity Transactions of Subsidiary”.
The accounts of foreign subsidiaries were translated into rupiah amounts at the middle rate of exchange prevailing at balance sheet date for balance sheet accounts and the average rate during the year for profit and loss accounts. The resulting difference arising from the translations of the financial statements of subsidiaries which are an integral part of the Company are debited/credited to Gain (Loss) on Foreign Exchange which is presented in the consolidated financial statements, while for the subsidiaries which are not an integral part of the Company, these are debited/credited to and presented as “Difference in Foreign Currency Translation” and are presented as “Difference in Changes in Equity Transactions of Subsidiaries”.
2.c. Cash Equivalents Cash equivalents consist of short-term time deposits with maturities of 3 (three) months or less since the time of their placement, not pledged as collateral and unrestricted.
FINAL DRAFT For Discussion Purpose Only 12 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
2.d. Investments Investments consist of: 1. Marketable securities in the form of debt and equity securities Investment in securities are classified into 3 categories: Trading Included in this classification are investments which are purchased for immediate resale, normally characterized by the high frequency of purchase-and-sale transactions. These investments are made to earn immediate gain from the increase in the short-term prices of the securities. Investments that meet this classification are recorded at fair value. The unrealized gain or loss on the appreciation or decline in market value of the investments at balance sheet date is credited or charged to current operations.
Held to Maturity Investments in debt securities which are held to maturity date are recorded at cost, adjusted for amortization of premium or discount to maturity.
Available for Sale Investments which do not meet the classification of trading and held to maturity categories are recorded at fair value. Any unrealized gain or loss on the appreciation or decline in market value of the investment at balance sheet date is credited or charged to Unrealized Gain or Loss of Available for Sale Securities, under the Stockholders' Equity section of the consolidated balance sheet.
The cost of marketable securities sold is determined using the average method and fair value is determined based on quoted market prices.
2. Mutual Funds Mutual funds are stated at net asset value at balance sheet date. Unrealized gains or losses from the changes in net asset value at balance sheet date are credited or charged to current operations.
3. Time Deposits Time deposits which are either used as collateral and/or with maturity greater than three months but not more than one year from the time of placement are carried at face value.
4. Long-term Investments in Shares of Stock Investments in shares of stock wherein the Company and subsidiaries have an ownership interest of at least 20% but not exceeding 50% are accounted for under the equity method. Under this method, the investments are initially stated at cost, adjusted for the Company's and subsidiaries' share in the net earnings (losses) of the associated companies after acquisition, dividends received and straight- line amortization over a 20 (twenty) years period of the difference between the cost of such investment and the investor's proportionate share in the underlying net assets of the investee at the date of acquisition. Investment wherein the Company and subsidiaries have an ownership interest of less than 20% are stated at cost. The Company reviews and evaluates periodically the carrying values of goodwill, taking into consideration current results and future prospects of the related associate.
The changes in the equity transactions of associates are presented as additions to or reductions from Stockholders' Equity under the account “Changes in the Equity Transactions of a Subsidiary/Associates” in the consolidated balance sheets.
FINAL DRAFT For Discussion Purpose Only 13 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
5. Investment Property Prior to January 1, 2008, investment property was stated at cost less accumulated depreciation, except land which is not depreciated.
Effective January 1, 2008, the Company and subsidiaries have applied PSAK No. 13 (Revised 2007), “Investment Property”, which supersedes PSAK No. 13 (1994) “Accounting for Investment”, and chosen the cost model. Investment property is depreciated under straight-line method over 20 years, except land which is not depreciated.
Investment property comprise of lands, buildings and infrastructures, held by the Company and subsidiaries to earn rentals or for capital appreciation or both, and are not utilized for use in the production or supply of goods or services, for administrative purposes or sale in the ordinary course of business.
Investment property shall be derecognized when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. Any gains or losses are recognised in the consolidated statement of income.
The adoption of this revised PSAK did not have significant effect to the Company’s consolidated financial statements.
2.e. Allowance for Doubtful Accounts Allowance for doubtful accounts is provided based on a review of the status of the individual receivable accounts at the end of the year.
The outstanding balance of receivables is written off against the respective allowance for doubtful accounts or directly written off when management believes that these assets are determined to be definitely uncollectible.
2.f. Inventories Information technology and other inventories, except for goods in transit, are carried at the lower of cost or net realizable value. Cost is determined by the moving average method, except for the cost of certain inventories which is determined by the specific identification method. Goods in transit are carried at cost.
Retail and distribution merchandise inventories are stated at lower of cost, determined by the conventional retail method, or net realizable value. The merchandise inventory does not include goods on consignment.
Allowance for inventory obsolescence is provided based on the review of the condition of the individual inventory items at the end of the year, while the allowance for decline in value is provided to reduce the carrying values of the inventories to their net realizable values.
2.g. Prepaid Expenses Prepaid expenses are amortized over their beneficial periods by using the straight-line method. The short-term portion of prepaid expenses is shown as part of Current Assets, while the long-term portion is shown as part of Non-Current Assets.
FINAL DRAFT For Discussion Purpose Only 14 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
2.h. Property and Equipment Prior to January 1, 2008, property and equipment were stated at cost (except certain assets revalued in 1986 in accordance with government regulation) less accumulated depreciation (except for land which is not depreciated). Effective January 1, 2008, the Company and subsidiaries have applied PSAK No. 16 (Revised 2007), “Fixed Assets”, which supersedes PSAK No. 16 (1994), “Fixed Assets and Other Assets”, and PSAK No. 17 (1994), “Accounting for Depreciation” and chosen the cost model.
Property and equipment are carried at cost less their accumulated depreciation and value impairment. Depreciation is computed over the estimated useful live of the assets using the following methods:
Method Year Rate Buildings (including apartment units which are presented Straight-line 20 -- as part of “Other Non-current Assets”) Building Improvement and Renovation Straight-line 2 - 20 -- Equipment and Installations Double-declining balance -- 15% and 25% Machineries Straight-line 3 - 5 -- Computers Straight-line 3 - 5 -- Fixtures, Furnitures and Equipments Straight-line 3 - 5 -- Equipments for Rental and Advertising Equipments Straight-line 2 - 5 -- Transportation Equipments Straight-line 2 - 5 Assets under Capital Lease – Motor Vehicles Straight-line 5 --
Land is stated at cost and is not depreciated. In accordance with PSAK No. 47 “Accounting for Land”, the Company and subsidiaries recognized the acquisition cost of land separately from the legal expenditures incurred to acquire the land rights and the expenditures for the subsequent extension thereof. These expenditures are deferred and presented as part of Other Non-Current Assets in the consolidated balance sheet and amortized over the period the landrights are valid or their economic lives, whichever period is shorter.
Construction in progress is carried at cost and presented as part of property and equipment. The accumulated costs will be reclassified to the appropriate property and equipment account when construction is substantially completed and the asset is ready for its intended use.
The cost of repairs and maintenance is charged to statement of income as incurred; significant renewals and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and the related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is credited or charged to current operations.
2.i. Leases Prior to January 1, 2008, the Company and subsidiaries recognize a lease transaction as capital lease, if all of the following criteria were met: 1. The lessee had the option to purchase the leased asset at the end of the lease period at a price mutually agreed upon at the commencement of the lease agreement. 2. Total periodic payments made by a lessee plus residual value fully covered the acquisition cost of leased capital goods plus interest thereon which was the lessor’s profit (full payout lease). 3. The lease period was a minimum of 2 (two) years.
FINAL DRAFT For Discussion Purpose Only 15 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Lease transactions that did not meet any or all of the above criteria were reported using the operating lease method, and lease payments were recognized as an expense in the consolidated statement of income on a straight-line basis over the lease term.
Gain or loss on sale-and-leaseback transactions results in a finance lease, shall be deferred and amortized over the lease term.
Long-term lease with contract value payable in installments over a period shorter than the lease period is recorded when the lease agreement is effective by debiting “Prepaid Long-term Rent - Net” at the contract value and crediting the unpaid portion to “Long-term Debts - Others”.
Prepaid long-term rent, generally on store space, is being amortized on the straight-line method starting from the opening of the leased store/renewal of the lease over the lease period. The portion of the rent chargeable to operations within one year is reclassified and presented under current assets as part of “Prepaid Expenses”.
Effective January 1, 2008, the Company and subsidiaries have applied PSAK 30 (Revised 2007), “Leases”, which supersedes PSAK 30 (1990) “Accounting for Leases”. Under this revised PSAK, the classification of a lease is determined based on whether the lessor or lessee controls substantially all the risks and rewards incidental to ownership.
Leases which do not transfer substantially all the risks and rewards incidental to ownership are classified as operating leases. Operating lease payments are recognized as an expense on a straight-line basis over the lease term. Lease income from operating lease is amortized on a straight-line basis over the lease term.
In the adoption of this revised PSAK, the Company has chosen to apply it prospectively. The Company has determined that the outstanding balances related to the financing leases that had existed prior to January 1, 2008 are appropriate. All arrangements containing a lease that existed at beginning of the earliest year presented, were evaluated by the Company to determine their classification in accordance with this revised PSAK.
The gain or loss on sale-and-leaseback transactions results in a finance lease, shall be deferred and amortized over the lease term.
The gain or loss on sale-and-leaseback transactions results in an operating lease, and it is clear that the transaction is established at fair value, any profit or loss shall be recognized immediately. If the sale price is below fair value, any profit or loss shall be recognized immediately except that, if the loss is compensated for by future lease payments at below market price, it shall be deferred and amortized in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value shall be deferred and amortized over the period for which the asset is expected to be used.
The adoption of this revised PSAK did not have significant effect to the Company’s consolidated financial statements.
FINAL DRAFT For Discussion Purpose Only 16 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
2.j. Deferred Gain on Sale and Lease of Assets Transaction The gain or loss on the implementation of the restructurization program of certain assets of MPP, a subsidiary, involving the sale and lease of assets transaction is deferred and amortized proportionally based on the rent expenses related to those assets.
2.k. Impairment in Assets Value The Company and subsidiaries review the carrying values of their assets for any impairment and possible write-down to fair values whenever events or changes in circumstances indicate that their carrying values may not be fully recovered. The excess of the carrying value over the estimated recoverable amount of the asset is charged to current operations.
2.l. Intangible Assets Costs in regard with the purchase of software for voice and data communications, accounting program and the updating are deferred and amortized using the straight-line method over the estimated useful life 4 (four) to 5 (five) years.
Intangible assets also including the excess of acquisition cost over the fair value of net assets of subsidiary (goodwill) is amortized by using the straight-line method for 20 (twenty) years.
2.m. Stock and Bonds/Notes Issuance Costs Expenses incurred in connection with the issuance of bonds/notes are deducted from proceeds thereof. The difference between the net proceeds and the nominal value represents premium or discount that should be amortized over the term of the bonds/notes.
Based on Capital Market Regulation No. 06/PM/2000 dated March 13, 2000, stock issuance cost is presented as deduction of additional paid-in capital.
2.n. Treasury Bonds/Notes Repurchased instrument of indebtedness that are not retired are treated in the consolidated financial statements as if they were retired. The difference between the face value of the instruments of indebtedness and the fair value is credited or charged to current operations.
2.o. Revenues and Expenses Recognition Revenues from sales and services of information technology are recognized when the products or services are delivered or rendered to the customers. Services income billed or received in advance are deferred (presented under Other Current Liabilities) and amortized as services are rendered.
Revenue from sales of retail and distribution inventory (except those sold on “Cash-on-Delivery” basis which is recognized when the goods are delivered to customers) is recognized when the goods are paid for at the sales counter. Revenue consignment sales is recorded at the amount the consignment goods are sold to customers, while the related cost (included as part of Cost of Sales) is recorded at the amount due to consignors.
Revenue from sales of prepaid cards (known as “Power Card”) by family entertainment centers is initially recorded as unearned income and then proportionately recognized as earned revenue based on the actual use of the cards by customers. Revenue from sales of tokens, snacks and beverage are recognized at the time the tokens snacks/packages are purchased by customers.
Expenses and other income (expense) are recognized when these are incurred/earned (accrual basis).
FINAL DRAFT For Discussion Purpose Only 17 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
2.p. Foreign Currencies Transactions and Balances Transactions involving foreign currencies are recorded in Rupiah amounts at the rates of exchange prevailing at the time the transactions are made. At balance sheet date, monetary assets and liabilities denominated in foreign currencies are adjusted to Rupiah to reflect the prevailing rates of exchange as published by Bank Indonesia at the last transaction date for the year/period. Any resulting gains or losses are credited or charged to current operations.
The rates of exchange used (in full Rupiah) are as follows:
2008 2007 Rp Rp 1 EUR 15,433 13,759 1 USD 10,950 9,419 1 SGD 7,607 6,502 1 HKD 1,413 1,208 1 RMB 1,610 1,291
2.q. Derivative Instruments and Hedging Activities The Company applies PSAK No. 55, “Accounting for Derivative Instruments and Hedging Activities”. PSAK No. 55 sets forth the accounting and reporting standards for derivative transactions and hedging activities, which requires that every derivative instrument (including embedded derivatives) be recognized as either an asset or a liability based on the fair value of each contract. Fair value is a computation of present value by using data and assumption which are commonly used.
The method of recognizing resulting gains or losses from derivatives transaction is dependent on the nature of the derivative transaction. If derivatives transactions are not qualified as hedging for accounting purposes, the difference between fair value at balance sheet date and maturity date will be recorded in consolidated statements of income. Changes in fair value of derivatives instrument that meets the criteria as cash flow hedges will be recorded in the consolidated statement of changes in equity on the effective hedged amount. When the instrument is mature, or no longer meets the criteria of hedges, the cumulative gain or losses will be recorded in the consolidated statements of income.
2.r. Segment Information Segment information of the Company and subsidiaries are presented based on business segment. Business segment is a distinguishable component and provides a different product or service, especially for customers outside the Company.
Geographical segment of the Company and subsidiaries represents a distinguishable component and provides a different product or services in certain economic environment (location) and the component has distinct risk and return from other component which operates in other location.
2.s. Income Tax Benefit (Expense) All temporary differences arising between the tax bases of assets and liabilities and their carrying value are recognized as deferred tax using liability method. Currently enacted tax rates are used to determine deferred income tax.
FINAL DRAFT For Discussion Purpose Only 18 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Deferred tax assets relating to the carryforward of unused tax losses are recognized to the extent that it is probable that the future taxable profit will be available against which the unused tax losses can be utilized. A valuation of allowance is provided for the portion of deferred tax assets which is not expected to be realized in the future. Amendment to tax obligations are recorded when an assessment is received or, if appealed against, when the result of the appeal is determined.
Current tax is recognized based on taxable income for the year, in accordance with the current tax regulation.
2.t. Estimated Liabilities on Employees Benefit Post employment benefit is recognized at discounted amount when the employees have rendered their service to the Company during the accounting period. Liabilities and expenses are measured using actuarial techniques which include constructive obligation that arises from the Company’s informal practices. In calculating the liabilities, the benefit must be discounted by using the projected unit credit method.
The Company and certain subsidiaries have defined contribution retirement plans covering certain permanent employees according to their preference. Contributions are funded and consist of employees’ contribution computed at 3% and the Company and subsidiaries contributions at 5% of the employees basic salaries.
2.u. Basic Earning Per Share Basic earning per share (EPS) is computed by dividing net income with the weighted average number of shares outstanding during the year, while for diluted EPS is computed by dividing net income with the weighted average number of shares outstanding during the year plus dilutive potential common stocks. Number of weighted average number of shares outstanding as of December 31, 2008 and 2007 are 6,785,159,000 and 6,626,058,178, respectively.
In 2007, 2,573,681,000 shares have been issued through the exercise of Right Issue IV, though the weighted average shares in 2007 have changed. Basic earnings per share was not adjusted since the offering price from Right Issue IV at Rp 125 per share are higher than the fair price before the exercise of rights, and accordingly there was no bonus element for the stockholders.
Due to the exercise price of warrant was higher than market price of share as of December 31, 2008 and 2007, diluted earnings per share was not computed for December 31, 2008 and 2007.
2.v. Use of Estimates The preparation of the consolidated financial statements is conformity with generally accepted accounting principles requires the Company and subsidiaries’ management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could be different from these estimates.
FINAL DRAFT For Discussion Purpose Only 19 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
2.w. Revised Statement of Financial Accounting Standard (PSAK) Following is the summary of new PSAK issued by Indonesian Institute of Public Accountants:
PSAK 50 (Revised 2006), “Financial Instruments: Presentation and Disclosures”, contains the requirements for the presentation of financial statements and identifies the information that should be disclosed. The presentation requirements apply to the classification of financial instruments, from the perspective of the issuer, into financial assets, financial liabilities and equity instruments, the classification of related interests, dividends, losses and gains; and the circumstances in which financial assets and financial liabilities should be offset. This PSAK requires the disclosure of among others information about factors that effect the amount, timing and certainty of an equity future cash flows relating to financial statements and the accounting policies applied to these instuments. PSAK 50 (Revised 2006) supersedes PSAK 50, “Accounting for Certain Investments in Securities”, and is applied prospectively for financial statements covering the periods beginning on or after January 1, 2010. Early application is encourage.
PSAK 55 (Revised 2006), “Financial Instruments: Recognition and Measurement”, establishes the principles for recognizing and measuring financial assets, financial liabilities and some contracts to buy or sell non financial items. This PSAK provides the definitions and characteristics of derivatives, the categories of financial instruments, recognition and measurement, hedge accounting and determination of hedging relationships, among others. PSAK 55 (Revised 2006) supersedes PSAK 55 (Revised 1999), “Accounting for Derivative Instruments and Hedging Activities”, and is applied prospectively for financial statements covering the periods beginning on or after January 1, 2010. Early application is encouraged.
PSAK 14 (Revised 2008), "Inventories", which prescribes the accounting treatment for inventories and provides guidance on the determination of inventory cost and its subsequent recognition as an expense, including any write-down to net realizable value, as well as guidance on the cost formulas used to assign costs to inventories. This revised PSAK is effective for financial statements beginning on or after January 1, 2009.
The Company and subsidiaries have not adopted early any of these PSAK’s. The Company and subsidiaries are currently studying them and have not yet determined the related effects on the consolidated financial statements.
FINAL DRAFT For Discussion Purpose Only 20 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
3. Cash and Cash Equivalents
2008 2007 Rp Rp Cash on Hand ( including 2008: USD 1, SGD 3 and RMB 32; 2007: SGD 1 and RMB 89) 36,797 31,326
Banks Third Parties PT Bank CIMB Niaga Tbk (formerly PT Bank Niaga Tbk and PT Bank Lippo Tbk), (including 2008: USD 860; 2007: USD 259) 540,969 159,871 PT Bank Negara Indonesia (Persero) Tbk (including 2008: USD 45; 2007: USD 232) 332,283 505,183 PT Bank Permata Tbk (including 2008: USD 1; 2007: USD 8) 300,128 73 PT Bank Danamon Tbk (including 2008: USD 10; 2007: USD 43) 220,967 1,915 Bank Julius Bear & Co. Ltd (2008: SGD 8,448; 2007: SGD 28,394) 64,264 184,630 PT Bank OCBC NISP Tbk 50,416 10,001 PT Bank Central Asia Tbk 45,926 13,561 Raiffeisen Zentralbank Osterreich AG (SGD 5,007) 38,090 -- PT Bank Mayapada Tbk 30,472 42 PT Bank DBS Indonesia 21,758 -- PT Bank Internasional Indonesia Tbk (including 2008: USD 141; 2007: USD 35) 12,915 2,732 PT Bank Mega Tbk (including 2008: USD 2 and SGD 2; 2007: USD 3,307 and SGD 9) 3,539 1,831,440 Others (below Rp 10,000 each) (including 2008: USD 603, HKD 686, RMB 110, SGD 522, EURO 90 and JPY 11,371; 2007: USD 364, HKD 3,138, RMB 1, SGD 25, EURO 102 and JPY 9,479) 32,190 24,969 Sub Total 1,693,917 2,734,417
Time Deposits Third Parties PT Bank CIMB Niaga Tbk (2008: USD 417; 2007: USD 2,355) 76,469 23,252 PT Bank Permata Tbk 60,000 -- PT Bank Mayapada Internasional Tbk 12,000 10,000 PT Bank Panin Tbk 8,068 -- PT Bank Mandiri (Persero) Tbk 6,000 -- Others (2008: USD 97; 2007: HKD 3,930) 3,031 14,024 Sub Total 165,568 47,276 Total 1,896,282 2,813,019
Interest Rate on Time Deposits per Annum: 2008 2007
Rupiah 3% - 13% 6% - 10% US Dollar 1.75% - 3% 3.5% HK Dollar 2.95% 3.4% - 4.2%
FINAL DRAFT For Discussion Purpose Only 21 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
4. Short-term Investments
2008 2007 Rp Rp Related Parties Managed Funds 837,000 87,297 Marketable Securities Trading Shares of PT Lippo Karawaci Tbk 115,202 99,362 Bonds of PT Lippo Karawaci Tbk (2008: USD 735 ; 2007: USD 964) 8,048 9,085 Others 70 114 Available for Sale Shares of PT Lippo Karawaci Tbk 196,178 169,202 Sub Total 1,156,498 365,060
Third Parties Deposit (2008: USD 10,085 and SGD 40,730 ; 2007: USD 1,813 and SGD 40,320) 420,283 279,258 Note Receivable (USD 24,750) 271,013 233,120 Marketable Securities Trading Bonds (2008: USD 3,290; 2007: USD 3,448) 42,234 38,831 Shares of Stock 21 678 Mutual Funds 17,667 31,050 Restricted Funds (including 2008: USD 416; 2007: USD 423) 5,943 10,303 Sub Total 757,161 593,240 Total 1,913,659 958,300
The unrealized gain from the available for sale shares of PT Lippo Karawaci Tbk, a related party, as of December 31, 2008 and 2007 is amounting to Rp 100,045 and Rp 73,070, respectively.
The bonds bore interest at annual rates ranging from 6.62% to 16.15% in 2008 and ranging from 6.62% to 17.5% in 2007.
The Company and MPP, a subsidiary, entered into fund management agreements with PT Ciptadana Sekuritas (CS), a related party. Based on the agreements, which can be extended, the funds placed in CS will be used for the purchase of investments, such as bonds and other debentures.
The deposit placed by the Company in Credit Suisse Bank, Singapore amounted to Rp 110,434 and Rp 17,083 as of December 31, 2008 and 2007, respectively, represent pledged funds for loan obtained from Credit Suisse Bank (see Note 20). The time deposit placed by MPP, a subsidiary, represents deposit placed in Bank Credit Suisse Bank, Singapore Branch amounted to Rp 309,849 in 2008 and placed in Bank Julius Bear & Co. Ltd. amounted to Rp 262,175 in 2007. The MPP’s time deposits represent guarantee (escrow) funds received from Dellmore Investment Limited (“DM”) relating to the LMIR Trust units owned by Tristar which are held by DM (Notes 1c, 2j, 8, 9, 29, 32, and 36). The time deposit placed earned interest at annual rates 1.52% in 2008 and ranging from 0.2% to 1.14% in 2007.
The Company placed fund in note receivable on Supreme Capital Limited, Malaysia amounting to USD 24,750. The note receivable may be rolled over monthly, at annual interest rate ranging from 7.75% to 8% in 2008 and ranging from 10.37% to 11.25% in 2007.
FINAL DRAFT For Discussion Purpose Only 22 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
In 2007, the Company and MPP, a subsidiary, entered into a Managed Investment Assets Agreement (Kontrak Pengelolaan Aset Investasi) with PT Syailendra Capital (Syailendra) wherein, based on the agreement, the Company and MPP appointed Syailendra as their investment manager and gave power and full authority to Syailendra to receive and manage its investment assets on behalf of the Company and MPP. The Company and MPP pay a certain fee as compensation to Syailendra. The Company’s investment portfolio consists of investment in a mutual fund with net assets value of Rp 15,401, including the decline of net assets value by Rp 12,111 in 2008 and of Rp 27,512, including increase of net assets value by Rp 7,512 in 2007.
Restricted fund represents current account (escrow) and deposits used as security for loan facility obtained by the Company and subsidiaries (see Notes 13 and 20).
5. Accounts Receivable
Accounts receivable – trade consist of: 2008 2007 Rp Rp
Related Parties (including 2008: 1,367 ; 2007: USD 3,167) 21,019 37,667 Allowance for Doubtful Accounts (2,721) (300) Net 18,298 37,367
Third Parties (including 2008: 8,648 ; 2007: USD 4,538) 200,820 165,163 Allowance for Doubtful Accounts (543) (543) Net 200,277 164,620 Total 218,575 201,987
Aging analysis of the trade receivables based on number of days outstanding are as follows:
Total Percentage to Total Accounts Receivable 2008 2007 2008 2007 Rp Rp % % Related Parties Less than 31 days 2,252 13,625 1.02 6.72 31 - 60 days 280 12 0.13 0.01 61 - 90 days 3,237 9 1.46 0.00 Over 90 days 15,250 24,021 6.87 11.84 21,019 37,667 9.48 18.57 Third Parties Less than 31 days 188,311 154,540 84.89 76.19 31 - 60 days 6,125 5,861 2.76 2.89 61 - 90 days 2,256 4,406 1.02 2.17 Over 90 days 4,128 356 1.86 0.18 200,820 165,163 90.53 81.43 Total 221,839 202,830 100.00 100.00
The Company’s accounts receivable are used as collateral to the Company's short term and long term loans facilities (see Notes 13 and 20). FINAL DRAFT For Discussion Purpose Only 23 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
The change in the allowance for doubtful accounts is as follows: 2008 2007 Rp Rp Balance at Beginning of the Year 843 543 Provision During the Year 2,421 300 Total 3,264 843
Based on December 31, 2008, other receivables mainly consist of receivables to developers.
Based on the review of the status of the individual debtors at the end of the year, the Company and subsidiaries' management are of the opinion that the allowance for doubtful accounts amounting to Rp 3,264 and Rp 843 as of December 31, 2008 and 2007 is adequate to cover possible losses from the non collection of the accounts.
6. Inventories - Net
2008 2007 Rp Rp Retail and Distribution Daily Needs, Food and Beverages 690,319 646,688 Men's Wear 60,974 53,174 Ladies' Wear 60,811 60,865 Children's Wear 55,478 48,681 Shoes 51,089 47,616 Household Appliance and Bathroom Accessories 39,640 35,041 Toys and Sport Gadgets 9,844 10,449 Books and Stationeries 8,276 -- Bags, Cosmetics and Accessories 6,577 3,863 Sub Total 983,008 906,377 Information Technology 50,492 41,429 Others 123 399 Total 1,033,623 948,205 Allowance for Inventory Obsolescence (3,319) (3,319) Net 1,030,304 944,886
The Company and subsidiaries' management are of the opinion that the allowance for inventory obsolescence is adequate to cover possible losses from inventory obsolescence.
Merchandise inventory is covered by insurance against losses by fire and other risk under blanket policies amounting to Rp 1,219,440 and Rp 1,069,723 as of December 31, 2008 and 2007, respectively, which in the Company and subsidiaries' management opinion, is adequate to cover possible losses arising from such risks.
Certain inventories are used as collateral to the Company and subsidiaries’ loans (see Notes 13 and 20).
FINAL DRAFT For Discussion Purpose Only 24 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
7. Investments in Associates
2008 Percentage Acquisition Accumulated Others Net of Ownership Cost Equity in Net Earnings (Losses) - Net % Rp Rp Rp Rp Investments in: PT First Media Tbk (FM) 33.77 175,643 (56,902) (2,900) 115,841 PT Bintang Sidoraya (BSR) 24.00 2,380 -- -- 2,380 PT Matahari Leisure (ML) 50.00 1,437 30,854 (5,000) 27,291 PT Tason Mitra Prima (TMP) 50.00 3,000 (918) -- 2,082 PT Karya Dinamika Investasi (KDI) 36.36 400 -- -- 400 PT Natrindo Global Telekomunikasi (NGT) 20.00 5,500 (5,500) -- -- PT Tirta Mandiri Sejahtera (TMS) 20.00 1 (1) -- -- Total 188,361 (32,467) (7,900) 147,994
2007 Percentage Acquisition Accumulated Others Net of Ownership Cost Equity in Net Earnings (Losses) - Net % Rp Rp Rp Rp Investments in: PT First Media Tbk (FM) 32.67 162,143 (20,941) -- 141,202 PT Bintang Sidoraya (BSR) 40.00 20,961 162 -- 21,123 PT Matahari Leisure (ML) 50.00 1,437 27,736 (2,500) 26,673 PT Tason Mitra Prima (TMP) 50.00 3,000 395 -- 3,395 PT Karya Dinamika Investasi (KDI) 36.36 400 -- -- 400 PT Natrindo Global Telekomunikasi (NGT) 20.00 5,500 (5,500) -- -- PT Tirta Mandiri Sejahtera (TMS) 20.00 1 (1) -- -- Total 193,442 1,851 (2,500) 192,793
The equity in net earnings (losses) of associates during the year consist of: 2008 2007 Rp Rp
PT Matahari Leisure 5,618 8,328 PT First Media Tbk (35,961) (788) PT Bintang Sidoraya (18,743) -- PT Tason Mitra Prima (1,313) -- Total (50,399) 7,540
FINAL DRAFT For Discussion Purpose Only 25 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
(a) In February 2007, the Company through PT Reksa Puspita Karya (RPK), a subsidiary, purchase additional shares through Limited Public Offering of Pre-Emptive Rights Issuance of PT First Media Tbk (FM) amounting to 191,041,832 shares or equivalents to Rp 95,521, therefore the effective ownership of the shares by the Company increase from 20.18% to 32.67%. In 2008, the Company through RPK, a subsidiary, increase the ownerhip of FM’s shares by exercising the warrants for 13.5 million of shares or equivalent to Rp 13,500, therefore the effective ownership of the shares by the Company increase to be 33.77%.
Part of investment in FM shares are used as collateral for short term and long term loan facility obtained by the Company (see Notes 13).
(b) NGT is engaged in telecommunication services.
(c) TMS is engaged in trading, industry, mining, real estate, agribusiness and other services.
(d) The investment in BSR and TMP were acquired through PT Taraprima Reksabuana, MPP’s subsidiary. BSR is engaged in the sale and marketing of beer, while TMP has not started its commercial operations.
(e) The investment in ML were acquired through MPP, a subsidiary. ML is engaged in the manufacture of amusement machines while PT Nadya Putra Investama, MPP’s subsidiary, owns the 36.36% share ownership in KDI which has not started its commercial operation.
8. Other Long-term Investments
2008 2007 Rp Rp Investment in LMIR Trust Unit (2008: SGD 15,621; 2007: 33,509) 118,831 217,887 Investments in Shares of Stock which are Accounted for Under the Cost Method 5,138 5,138 Total 123,969 223,025
a. Tristar, a subsidiary of MPP, hold an available-for-sale investment of 50,389,000 units of LMIR Trust, a trust which has investments in assets such as commercial mall and retail spaces. As of December 31, 2008 and 2007, the market value of the units were Rp 118,831 and Rp 217,887, respectively. The difference between the acquisition cost and fair value of the investment amounting to Rp 138,354 and Rp 40,899 are recorded as unrealized loss as of December 31, 2008 and 2007, respectively, which is presented under stockholders’ equity (Notes 1c, 32 and 36).
On December 24, 2008, Tristar received 50,389,000 LMIR Trust units as a realization of agreement with Dellmore Investment Ltd (Notes 1c and 32).
FINAL DRAFT For Discussion Purpose Only 26 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
b. As of December 31, 2008 and 2007, the investments in shares of stock which accounted for under the cost method consist of the following: Ownership 2007 Additions 2008 (Deductions) % Rp Rp Rp Investments in: PT Courts Indonesia Tbk (CI) 4.99 4,251 -- 4,251 PT AsiaNet Multimedia 5.00 507 -- 507 PT Multipolar Telemedia 10.00 250 -- 250 PT Lippo On Line 1.00 125 -- 125 BigboXX.com (CI) Limited (BCL) 3.50 5 -- 5 PT Natrindo Kartu Panggil 1.00 ------PT Aneka Tirta Nusa (ATN) 3.13 ------Total 5,138 -- 5,138
Ownership 2006 Additions 2007 (Deductions) % Rp Rp Rp Investments in: PT Courts Indonesia Tbk (CI) 4.99 4,251 -- 4,251 PT AsiaNet Multimedia 5.00 507 -- 507 PT Multipolar Telemedia 10.00 250 -- 250 PT Lippo On Line 1.00 125 -- 125 BigboXX.com (CI) Limited (BCL) 3.50 5 -- 5 PT Natrindo Kartu Panggil 1.00 ------PT Aneka Tirta Nusa (ATN) 3.13 25,031 (25,031) -- Total 30,169 (25,031) 5,138
Investment in CI of 4.9889% owned by MPP, a subsidiary, is engaged in the electronic and furniture retail business.
Prime Connection Limited, a MPP’s subsidiary, owns the investment in BCL, a company which is part of the Hutchison Whampoa Ltd. – Hongkong, a business group which is engaged in the retail and distribution business.
Based on ATN’s Extraordinary Stockholders Meeting dated May 9, 2007, the stockholders agreed to change par value of shares and reduction of authorized capital, issued and fully paid. In 2007, RPK, a subsidiary, has received the amount reduction of such capital.
FINAL DRAFT For Discussion Purpose Only 27 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
9. Property and Equipment
2008 Beginning Additions Deductions Transfer in (Out) Ending Balance Balance Rp Rp Rp Rp Rp Carrying Value Direct Ownership Land 134,116 -- 2,130 -- 131,986 Building 854,816 25 85 7,514 862,270 Building Improvements and Renovations 270,589 65,645 25,733 87,653 398,154 Computer 52,735 12,687 3,889 25 61,558 Office Furniture, Fixtures and Equipments 22,249 5,614 344 -- 27,519 Transportation Equipment 26,075 1,913 1,471 3,572 30,089 Equipment and Installment 1,612,368 116,397 54,551 266,013 1,940,227 Machineries 279,568 10,492 8,315 5,286 287,031 Equipment for Rental 224,152 10,068 21,443 21,340 234,117 Advertising Apparatus 15 ------15 Sub Total 3,476,683 222,841 117,961 391,403 3,972,966 Assets Under Capital Lease -- 2,261 -- -- 2,261 3,476,683 225,102 117,961 391,403 3,975,227
Construction in Progress 17,295 12,076 -- (24,854) 4,517 Total 3,493,978 237,178 117,961 366,549 3,979,744
Accumulated Depreciation Direct Ownership Building 201,952 41,193 12 -- 243,133 Building Improvements and Renovations 125,433 61,064 22,785 -- 163,712 Computer 43,979 3,920 1,534 -- 46,365 Office Furniture, Fixtures and Equipments 19,006 2,043 303 -- 20,746 Transportation Equipment 19,742 4,315 1,427 -- 22,630 Equipment and Installment 844,286 191,757 37,505 -- 998,538 Machineries 222,389 34,952 7,901 -- 249,440 Equipment for Rental 172,438 45,655 17,561 -- 200,532 Advertising Apparatus 15 ------15 Sub Total 1,649,240 384,899 89,028 -- 1,945,111 Assets Under Capital Lease 93 244 -- -- 337 Total 1,649,333 385,143 89,028 -- 1,945,448 Book Value 1,844,645 2,034,296 Allowance for Possible Loss from Disposal (24,897) (24,897) Net 1,819,748 2,009,399
FINAL DRAFT For Discussion Purpose Only 28 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
2007 Beginning Additions Deductions Transfer in (Out) Ending Balance Balance
Rp Rp Rp Rp Rp Carrying Value Direct Ownership Land 142,288 -- 12,141 3,969 134,116 Building 1,195,205 5,193 627,022 281,440 854,816 Building Improvements and Renovations 238,643 20,038 15,645 27,553 270,589 Computer 48,637 3,821 670 947 52,735 Office Furniture, Fixtures and Equipments 19,794 2,471 16 -- 22,249 Transportation Equipment 24,094 3,140 1,838 679 26,075 Equipment and Installment 1,474,521 73,223 93,572 158,196 1,612,368 Machineries 263,191 20,114 9,177 5,440 279,568 Equipment for Rental 199,840 6,271 5,425 23,466 224,152 Advertising Apparatus 15 ------15 Sub Total 3,606,228 134,271 765,506 501,690 3,476,683 Assets Under Capital Lease 8,280 -- -- (8,280) -- 3,614,508 134,271 765,506 493,410 3,476,683
Construction in Progress 12,273 23,967 -- (18,945) 17,295 Total 3,626,781 158,238 765,506 474,465 3,493,978
Accumulated Depreciation Direct Ownership Building 248,006 62,374 108,428 -- 201,952 Building Improvements and Renovations 92,851 46,858 14,276 -- 125,433 Computer 39,597 4,090 655 947 43,979 Office Furniture, Fixtures and Equipments 17,647 1,374 15 -- 19,006 Transportation Equipment 17,659 3,686 1,603 -- 19,742 Equipment and Installment 724,636 171,522 51,872 -- 844,286 Machineries 189,547 41,598 8,756 -- 222,389 Equipment for Rental 119,855 55,505 5,425 2,503 172,438 Advertising Apparatus 15 ------15 Sub Total 1,449,813 387,007 191,030 3,450 1,649,240 Assets Under Capital Lease 920 2,623 -- (3,450) 93 Total 1,450,733 389,630 191,030 -- 1,649,333 Book Value 2,176,048 1,844,645 Allowance for Possible Loss from Disposal (24,897) (24,897) Net 2,151,151 1,819,748
The Company and subsidiaries’ land represent HGB on land located in several cities in Indonesia. These HGB expire on various dates from year 2009 to 2038. The Company and subsidiaries' management believe that the above HGB certificates can be extended upon their expiration.
FINAL DRAFT For Discussion Purpose Only 29 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Depreciation for the years ended December 31, 2008 and 2007 charged to the following:
2008 2007 Rp Rp General and Administrative Expenses 332,043 324,667 Cost of Sales 47,658 59,323 Selling Expenses 889 1,315 Other Expenses -Others 4,552 4,325 Total 385,142 389,630
In 2008 and 2007, the Company and subsidiaries recorded loss on sales of property and equipments as follows:
2008 2007 Rp Rp Proceeds 19,054 11,832 Net Book Value (28,934) (14,954) Total (9,880) (3,122)
On November 19, 2007, MPP and Tristar, a subsidiary of MPP, entered into investment in shares and asset sale and lease transactions. The difference between the proceeds from the sale and net book value was recorded as deferred gain on asset sale and lease transactions and amortized proportionally over the rental period based on the rent expenses related to those assets as follows:
2008 2007 Rp Rp Balance at Beginning of Year 422,282 -- Deferred Gain on Sale of Investment and Asset Sale and Lease Transactions -- 427,146 Amortization (34,493) (4,864) Balance at End of Year 387,789 422,282 Less: Current Portion (38,362) (42,715) Long-term Portion 349,427 379,567
On June 22, 2007, MPP, a subsidiary, entered into Memorandum of Sale and Purchase Agreement (Perjanjian Pengikatan Jual Beli) with each of PT Madiun Ritelindo (MR), PT Java Mega Jaya (JMJ) and PT Dinamika Serpong (DS) and Memorandum of Transfer of Right Agreement (Perjanjian Pengikatan Pengalihan Hak) with each of PT Matos Surya Perkasa (MSP), PT Megah Detos Utama (MDU), PT Palladium Megah Lestari (PML) and PT Gema Metropolis Modern (GMM) relating to the sale of MPP’s properties and facilities located in Madiun (to MR), Semarang (to JMJ), Serpong (to DS), Malang (to MSP), Depok (to MDU), Medan (to PML) and Tangerang (to GMM). The total proceeds amounted to Rp 578,582 and the resulting total gain of Rp 20,032 was recorded as part of Deferred Gain on Asset Sale and Lease Transactions” (Note 2.j).
On November 19, 2007, MPP, a subsidiary, entered into Sale and Purchase Agreements on properties located in Madiun, Serpong and Semarang, and Transfer of Right and Obligation on properties located in Malang, Depok, Medan and Tangerang to each of the respective buyers. As of December 31, 2008, Malang and Tangerang have transferred to MSP and GMM, respectively.
FINAL DRAFT For Discussion Purpose Only 30 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
MPP, a subsidiary, continuously review and maximize MPP’s operations to generate income, review the appropriateness of stores location and demographic condition, close down some non-value added stores, and reduce the spaces occupied by some stores to enhance operating efficiency. In connection with these activities, MPP made provisions, such as allowance for possible loss from disposal of property and equipment.
Property and equipment are covered by insurance against losses by fire and other risks under blanket policies approximately amounting to Rp 3,096,516 in 2008 and Rp 2,618,326 in 2007. The management of the Company and subsidiaries believe that the insurance coverage is adequate to cover possible losses from fire and other risks.
Based on the review on property and equipment individually, the management of the Company and subsidiaries believes that there is no need to provide allowance for impairment of assets value as of December 31, 2008 and 2007.
Certain property and equipment are pledged as collateral to short term and long term loans obtained by the Company and MPP, a subsidiary, and bonds issued by MPP (see Notes 13, 18 and 20).
10. Rental Advances
This account represents rental advances made to building owners for new stores. The rental advances are used for rental payment at the start of the rent period (Note 32). Rental advance to related party amounting to Rp 286,433 and Rp 384,385 as of December 31, 2008 and 2007, respectively (Note 30).
11. Prepaid Long Term Rent- Net
This account represents the long-term rent prepayment for MPP’s stores located at Pluit, Bellanova Country Mall, Puri, Cibubur Town Square, Bandung Indah Plaza, Kramat Jati, King Bandung and other locations in 2008, MPP’s stores located at Bellanova Country Mall, Cibubur Town Square, Bandung Indah Plaza, Kramat Jati, King Bandung and other locations in 2007. Prepaid long term rent-net to related party amounting to Rp 162,971 and Rp 84,944 as of December 31, 2008 and 2007, respectively (Note 30).
12. Advances for Purchase of Property and Equipment
This account primarily represents advances for store spaces under construction to be used for the store of MPP in Lampung. In addition, this account also includes advances for purchase of equipment and installations in its MPP’s existing stores. The advances account will be reclassified to property and equipment upon the transfer of the stores to MPP after completion of construction/installation or delivery of the equipment purchased. Advances for purchase of property and equipment to related party amounting to Rp 118,000 and Rp 131,427 as of December 31, 2008 and 2007, respectively (Note 30).
FINAL DRAFT For Discussion Purpose Only 31 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
13. Short-term Loan
2008 2007 Rp Rp
Raiffeisen Zentralbank Oesterreich AG, Singapore (2008: USD 15,000; 2007:USD 25,000) 164,250 235,475 PT Bank Negara Indonesia (Persero) Tbk 150,000 34,000 PT Bank Mandiri (Persero) Tbk 52,000 15,900 PT Bank CIMB Niaga Tbk (ex PT Bank Lippo Tbk) 45,029 39,500 PT Bank Permata Tbk (2007:USD 89) 40,000 841 Standard Chartered Bank, Jakarta (2008: USD 1,425 ; 2007:USD 1,138) 15,600 10,714 Jumlah 466,879 336,430
On May 11, 2006, the Company obtained short-term loan facility from Raiffeisen Zentralbank Oesterreich AG, Singapore amounting to USD 25,000 for 1 (one) year period. This loan is used, including but not limited, for working capital and refinancing. In 2008, the loan period has been extended with repayment schedule as follows: - Tranche A amounting to USD 15,000 within period of 1 year - Tranche B amounting to USD 10,000 within period of 3 years, with repayment schedule of USD 3,000 on each months of 12th and 24th , and amounting to USD 4,000 on month of 36th starting on May 31, 2008. As of December 31, 2008, the loan amounting to USD 10,000 has been recorded as long-term loan (see Note 20).
The loan obtained by the Company from PT Bank Negara Indonesia Tbk represents working capital credit facilities with total maximum amount of Rp 150,000 and will mature on November 12, 2009.
The loan obtained by the Company from PT Bank Mandiri Tbk represents working capital credit facility with total maximum of credit amounting to Rp 52,000 and will mature on November 16, 2009.
The loan obtained by the Company from PT Bank CIMB Niaga Tbk (ex PT Bank Lippo Tbk) represents fixed loan on demand with total maximum of credit amounting to Rp 55,000 and will due in March 2009 and in the process of extension.
The loans obtained by the Company from Standard Chartered Bank, Jakarta represents credit facility related to procurement with total maximum amount of USD 3,000. This loan facility is available until November 30, 2009.
The loan obtained by the Company from PT Bank Permata Tbk represents revolving loan facility using for the purchase of inventories for purchase value less than USD 250 with maximum amount of USD 1,500 for 1 year period and may be extended.
For all the above loan facilities, the Company and subsidiaries were charged with interest at annual rates ranging from 10.5% to 16% for Rupiah and 5.32% to 9.5% for USD in 2008 and ranging from 11% to 15.75% for Rupiah and 6% to 10% for USD in 2007. The above loan agreements require the Company and subsidiaries to comply with certain conditions, such as maintaining specific financial ratios. As of December 31, 2008, all of these financial ratios have been met. These loan facilities are collateralized by trade receivables, inventories, property and equipments and ownerships in certain subsidiaries/associate companies.
FINAL DRAFT For Discussion Purpose Only 32 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
14. Accounts Payable - Trade
2008 2007 Rp Rp
Related Parties 28 552 Third Parties 1,252,375 1,009,690 Total 1,252,403 1,010,242
The amounts due to suppliers as of December 31, 2008 are all payable in the first quarter of 2009.
15. Other Payables and Other Current Liabilities
This account primarily represents liabilities to MPP, a subsidiary, to Dellmore Investment Limited (DM) related to the receipt of escrow fund from DM (see Notes 2p, 4, 29 and 36), to contractors for building renovation work, including store decoration, and to other parties for marketing expenses. In addition, this account consists of the estimated liabilities relating to MPP’s customer loyalty program amounting to Rp 10,984 and Rp 13,093 as of December 31, 2008 and 2007, respectively.
16. Taxation
a. Income Tax Benefit (Expense) A reconciliation between income before income tax expense, as shown in the consolidated statements of income, and estimated taxable income (tax loss) of the Company is as follows: 2008 2007 Rp Rp Income (Loss) before Income Tax Expense per Consolidated Statement of Income (259,968) 188,521 Loss (Income) before Income Tax Expense of Consolidated Subsidiaries 63,459 (127,204)
Income (Loss) before Income Tax Expense Attributable to the Company (196,509) 61,317 Permanent Differences: Equity in Net Earnings of Subsidiaries/Associates 43,352 (74,234) Interest Income already Subjected to Final Tax (505) (1,289) Others (841) (436) Sub Total 42,006 (75,959) Timing Differences: Depreciation and Amortization 5,627 15,947 Employee's Benefits 1,936 2,032 Equity in Net Earnings of Subsidiaries/Associates (3,336) (3,104) Inventory Obsolescence Write-off -- (2,503) Allowance for Doubtfull Account 2,421 -- Others 3,306 (54,660) Sub Total 9,954 (42,288) Estimated Tax Loss (144,549) (56,930) Tax Loss Carryforward (149,908) (94,331) Corrections from Tax Office 30,541 1,353 Estimated Tax Loss Carryforward Can Be Compensated (263,916) (149,908) FINAL DRAFT For Discussion Purpose Only 33 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
As of the independent auditors’ report date, the Company and its subsidiaries have not yet submitted their respective 2008 Income Tax Returns (SPT) to the Tax Office.
The income tax expense and the computations of the estimated corporate income tax payable (claim for income tax refund) are as follows:
2008 2007 Company Subsidiaries Company Subsidiaries Rp Rp Rp Rp
Income Tax Expenses -- 38,218 -- 41,339 Prepayment of Income Taxes Article 22 4,114 -- 3,242 -- Article 23 9,119 8,701 14,287 761 Others 34 26,661 55 2 Total Prepayments of Income Taxes 13,267 35,362 17,584 763 Estimated Corporate Income Tax Payable (Claim for Income Tax Refund) (13,267) 2,856 (17,584) 40,576
In February 2008, the Company has received net tax refund amounting to Rp 17,851 after considering Under Payment Tax Assessment Notice for Income Tax article 23 and 4(2) amounting to Rp 22. In April 2007, the Company has received net refund amounting to Rp 15,804 after considering Under Payment Tax Assessment Notice for Income Tax article 21 and 23 amounting to Rp 67.
b. Deferred Tax Assets (Liabilities) - Net A computation of deferred income tax benefit (expense) on temporary significant differences using the maximum tax rate of 28% and 30% in 2008 and 2007, respectively, is as follows: 2008 2007 Rp Rp The Company Accumulated Tax Loss - including Correction from Tax Office 34,203 16,673 Correction on Deferred Tax Asset/Liability -Net 6,515 -- Depreciation and Amortization 1,687 4,784 Allowance for Doubtfull Accounts 726 -- Employees' Benefits 581 610 Obsolent Inventory Write-off -- (751) Adjustment in regard with Tax Tariff Decline (401) -- Equity in Net Earnings of Subsidiaries/Associates (1,001) (932) Allowance for Estimated Unrecoverable Deferred Tax Assets (43,302) (3,987) Others 992 (16,397) Net -- -- Subsidiaries PT Visionet Internasional (2,602) 2,033 PT Multifiling Mitra Indonesia (138) 94 PT Matahari Putra Prima Tbk 109,709 1,848 PT Sharestar Indonesia 26 (94) Sub Total 106,995 3,881 Deferred Tax Benefit - Net 106,995 3,881
FINAL DRAFT For Discussion Purpose Only 34 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Accumulated deferred income tax benefit (expense) presented as Deferred Tax Assets (Liabilities)-Net in the consolidated balance sheets, with details as follows: 2008 2007 Rp Rp The Company Tax Losses 73,897 44,972 Accumulated Depreciation and Disposal of Fixed Asset 5,684 4,402 Employees' Benefits 3,907 3,366 Allowance for Inventories Obsolescence 929 996 Allowance for Doubtful Accounts 830 163 Accumulated Equity in Net Earning of Associates (7,106) (6,613) Allowance for Estimated Unrecovered Deferred Tax Assets (52,441) (12,884) Others (20,086) (28,788) Net 5,614 5,614
Subsidiaries PT Matahari Putra Prima Tbk 109,604 4,037 PT Multifiling Mitra Indonesia 674 812 PT Sharestar Indonesia 506 479 PT Visionet Internasional -- 2,033 Sub Total 110,784 7,361 Deferred Tax Assets - Net 116,398 12,975 Deferred Tax Liabilities - Net PT Matahari Putra Prima Tbk 8,888 13,030 PT Visionet Internasional 569 -- Deferred Tax Liabilities - Net 9,457 13,030
Based on review of the status of the deferred tax assets at the end of each year, management believes that the allowance for estimated unrecoverable deferred tax assets is adequate to cover unrecoverable amount.
c. Taxes Payable 2008 2007 Rp Rp Income Taxes Accrued and Withheld Article 21 30,736 10,186 Article 23 12,223 7,467 Article 25 2,859 2,737 Article 26 2,184 2,171 Article 29 1,212 4,264 Article 4 (2) 16 4 Others 109 103 Value Added Tax - Net 18,670 38,463 Total 68,009 65,395
FINAL DRAFT For Discussion Purpose Only 35 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
17. Accrued Expenses
2008 2007 Rp Rp Maintenance and Services 85,247 58,577 Interest 80,433 59,203 Salaries, Allowance and Employee Benefits 69,112 98,047 Marketing and Supplies 67,043 41,616 Electricity and Energy 43,202 31,414 Rent 36,475 27,808 Others 144,467 93,979 Total 525,979 410,644
18. Bonds Payable
2008 2007 Rp Rp Second Matahari Bonds in Year 2004 with Fixed Rates 300,000 300,000 First Matahari Syariah Ijarah Bonds in Year 2004 150,000 150,000 Nominal Value 450,000 450,000 Treasury Bonds (7,000) -- Balance 443,000 450,000 Unamortized Bonds Issuance Cost (1,360) (4,856) Net 441,640 445,144 Less: Bond Due within One Year Second Matahari Bonds in Year 2004 with Fixed Rates 300,000 -- First Matahari Syariah Ijarah Bonds in Year 2004 150,000 -- Treasury Bonds (7,000) -- Unamortized Bonds Issuance Cost (1,360) -- Current Maturities - Net 441,640 -- Long-term Portion - Net -- 445,144
On May 11, 2004, MPP, a subsidiary, issued “Obligasi II Matahari Putra Prima Tahun 2004 dengan Tingkat Bunga Tetap” (Second Matahari Bonds) and “Obligasi Syariah Ijarah I Matahari Putra Prima Tahun 2004” (First Matahari Syariah Ijarah Bonds), with PT Bank Negara Indonesia (Persero) Tbk as the trustee. The bonds have total face values of Rp 300,000 and Rp 150,000, respectively, in Rp 50 denomination and will mature on May 11, 2009. Thus, as of December 31, 2008, the Second Matahari Bonds and the First Matahari Syariah Ijarah Bonds were reclassified to Current Maturities of Long-term Debts - Bonds Payable - Net. The ratings were idA+ (stable outlook) for the Second Matahari Bonds and idA+(sy) (stable outlook) for the First Matahari Syariah Ijarah Bonds.
MPP’s bonds listing on the Surabaya Stock Exchange (BES) was approved on the basis of the BES Decision Letter No. JKT-007/LIST-EMITEN/BES/V/2004 dated May 10, 2004.
The Second Matahari Bonds bear interest at the fixed rate of 13.8% per annum for 5 years starting May 11, 2004. PT Kustodian Sentral Efek Indonesia (KSEI), acting as the payment agent, pays quarterly interest on the bonds starting August 11, 2004 until May 11, 2009.
FINAL DRAFT For Discussion Purpose Only 36 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Each bondholder of First Matahari Syariah Ijarah is entitled to “Ijarah fee” at 13.8% per annum. The fee shall be paid for 5 years starting May 11, 2004. KSEI, acting as the payment agent, pays quarterly Ijarah fee starting August 11, 2004 until May 11, 2009.
The bonds are collateralized by certain landrights and buildings with fair value representing 115% of the total face value of the bonds.
The proceeds of the Second Matahari Bonds were used for the opening of new stores and the renovation of the existing ones and for MPP’s working capital requirements, such as for the purchase of merchandise inventory.
The proceeds of the First Matahari Syariah Ijarah Bonds were used for the lease of store spaces which had been determined in Akad Wakalah.
Based on the Bonds Indenture, MPP is required to comply with certain conditions, such as maintaining several financial ratios. As of December 31, 2008, all of the financial ratios have been met.
The amortization of bonds issuance cost charged to 2008 and 2007 operations amounted to Rp 3,496 and Rp 3,510, respectively.
If the bonds’ annual rating decreased below idA- for the Second Matahari Bonds and idA-(sy) for the First Matahari Syariah Ijarah Bonds, MPP should maintain a sinking fund in amounts as determined amounts based on the Bonds Indenture.
On November 30, 2006, MPP held the General Bondholders’ Meeting of Second Matahari Bonds in Year 2004 and First Matahari Syariah Ijarah Bonds in Year 2004 to approve the changes in the Bonds Indenture and to accept the resignation of PT Bank Negara Indonesia (Persero) Tbk (BNI) as trustee and bond collateral agent, and approve the appointment of PT Bank Mega Tbk to replace BNI as trustee and bond collateral agent.
In 2008, MPP repurchased the Second Matahari Bonds with par value of Rp 7,000 from the market with purchase price of Rp 7,058. The difference amounting to Rp 58 was charged to operations and is presented under Other charges (income) - net in the consolidated statements of income.
19. Notes Payable
2008 2007 Rp Rp Face Value (USD 150,000) 1,642,500 1,408,950 Treasury Notes (USD 30,656) (335,680) -- 1,306,820 1,408,950 Unamortized Notes Discount and Issuance Cost (14,741) (42,869) Total 1,292,079 1,366,081
On October 6, 2006, Matahari Finance B.V., a MPP’s subsidiary, issued Notes with a total face value of USD 150,000 (“the Notes”) in USD 100 denomination at the price of 98.731%, with the DB Trustees (Hong Kong) Limited as the trustee and UBS AG and Credit Suisse Securities (Europe) Limited as Joint Lead Managers.
FINAL DRAFT For Discussion Purpose Only 37 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
The Notes will mature on October 6, 2009 and bear interest at the rate of 9.5% per annum. The proceeds from the Notes were used for debt repayment, capital expenditures, working capital and other general corporate purposes. The Notes are guaranteed by MPP and have no collateral. At any time on or after October 6, 2007, the issuer may redeem the Notes, in whole or in part, at pre-determined prices.
The Notes have been rated “B1” by Moody’s Investor Service, Inc. and “B+” by Standard and Poor’s Rating Group, a division of Mc Graw-Hill Companies, Inc. and have been listed on the Singapore Stock Exchange (“SGX-ST”).
In 2008, the Company and MPP, a subsidiary, repurchased the Notes with par value of USD 30,650 from the market with purchase price of USD 27,912. The difference amounting to Rp 31,095 was credited to operations and is presented under “Other charges (income) - net” in the consolidated statements of income.
The amortization of notes discount and issuance cost charged to years ended December 31, 2008 and 2007 operations amounted to Rp 28,128 and Rp 24,393, respectively.
20. Long-term Loans
2008 2007 Rp Rp Loans Credit Suisse, Singapore (USD 75,000) 821,250 706,425 PT Bank Negara Indonesia (Persero) Tbk 500,000 100,000 PT Bank CIMB Niaga Tbk (ex PT Bank Niaga Tbk and PT Bank Lippo Tbk) (including 2008: USD 104; 2007: USD 892) 244,669 251,662 PT Bank Danamon Tbk 235,000 -- PT Bank Mizuho Indonesia 200,000 200,000 PT Bank Internasional Indonesia Tbk 200,000 200,000 The Hongkong and Shanghai Banking Corporation Ltd 150,000 107,900 Raiffeisen Zentralbank Oesterreich AG, Singapore (USD 10,000) 109,500 -- PT Bank Permata Tbk (2008: USD 603; 2007: including USD 2,175) 6,607 20,488 PT Bank Mayapada Tbk 4,354 -- PT Bank Akita 2,221 1,169 Total 2,473,601 1,587,644
Less : Current Maturiries The Hongkong and Shanghai Banking Corporation Ltd 70,000 107,900 Raiffeisen Zentralbank Oesterreich AG, Singapore (USD 3,000) 32,850 -- PT Bank Permata Tbk (2008: USD 430; 2007: including USD 1,546) 4,712 14,559 PT Bank CIMB Niaga Tbk (ex PT Bank Niaga Tbk and PT Bank Lippo Tbk) (2008: USD 104; 2007: termasuk USD 764) 2,967 8,087 PT Bank Mayapada Tbk 1,985 -- PT Bank Akita 690 731 PT Bank Negara Indonesia (Persero) Tbk -- 9,091 Total 113,204 131,277 Long-term Portion 2,360,397 1,456,367
FINAL DRAFT For Discussion Purpose Only 38 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
In September 2007, the Company obtained US Dollar Secured Term Loan facility with total of USD 75,000 where Credit Suisse Singapore acted as Mandated Arranger. This facility has period of 5 years with Put Option, where after 3 years, the creditor has right to request a full repayment or repayment by installment. This loan collateralized by the shares of PT Matahari Putra Prima Tbk, a subsidiary, at amounts that both parties agreed or the replacing shares, which owned by the Company. This facility was used for repayment for outstanding loan and for working capital of the Company.
The loan obtained by the Company from Raiffeisen Zentralbank Oesterreich AG, Singapore amounting to USD 10,000 is reclassification of short-term loan in 2007 (see Note 13), in line with the installment schedule (Tranche B) amounting to USD 3,000 on each months of 12th and 24th and amounting to USD 4,000 on month of 36th starting on May 31, 2008.
On December 13, 2007, MPP, a subsidiary, obtained from PT Bank CIMB Niaga Tbk (formerly PT Bank Lippo Tbk) a Fixed Loan on Demand 3 (“PTX-OD 3”) facility amounting to Rp 240,000. The loan facility is available up to December 13, 2010.
On September 8, 2006 and September 19, 2006, MPP, a subsidiary, obtained from PT Bank Danamon Tbk two revolving working capital loan facilities amounting to Rp 125,000 and Rp 110,000, respectively. The facilities have been extended up to June 30, 2010.
On April 20, 2007, MPP, a subsidiary, obtained from PT Bank Mizuho Indonesia a revolving working capital loan facility amounting to Rp 100,000. The credit facility has been extended up to September 28, 2010 and the amount was increased to Rp 200,000.
On December 13, 2007, MPP, a subsidiary, obtained from PT Bank Internasional Indonesia Tbk a revolving promissory loan facility amounting to Rp 200,000. The loan facility is available up to December 13, 2010.
The Company and subsidiaries also obtained loans from PT Bank CIMB Niaga Tbk (formerly PT Bank Niaga Tbk and PT Bank Lippo Tbk), PT Bank Internasional Indonesia Tbk, PT Bank Permata Tbk and PT Bank Akita and PT Bank Mayapada Tbk represent credit facilities that were used for financing the purchase of inventories agreed by the banks (contract of sales). Each borrowings used for this contract will have same maturity date with the term of the financed sales. The loans used for sales for more than 1 (one) year consists of: - Loan obtained from PT Bank CIMB Niaga Tbk (formerly PT Bank Lippo Tbk) by PT Visionet Internasional, a subsidiary, which is PTA facility (umbrella line credit facility) amounting to Rp 10,000, with the latest contract will mature on August 11, 2011. - Loan obtained from PT Bank Internasional Indonesia Tbk by the Company with maximum facility amount of USD 5,000. The facility will mature on October 21, 2009. - Loan obtained from PT Bank CIMB Niaga Tbk (ex PT Bank Niaga Tbk) by the Company with the latest contract will mature on July 9, 2009. - Loan obtained from PT Bank Permata Tbk by the Company has maximum credit facility of USD 10,000 with the latest contract will mature on June 20, 2011. - Loan obtained from PT Bank Akita by the Company is installment investment credit facility of Rp 3,158. This loan will mature on May 31, 2010. The loan obtained from PT Bank Akita by PT Visionet Internasional, a subsidiary, is installment credit facility amounting to Rp 1,900 which will mature on July 23, 2013. - Loan obtained from PT Bank Mayapada Tbk by PT Visionet Internasional, a subsidiary, is installment credit facility amounting to Rp 6,000 with the latest contract will mature on August 5, 2011.
FINAL DRAFT For Discussion Purpose Only 39 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
On September 21, 2006, MPP, a subsidiary, obtained from PT Bank Negara Indonesia Tbk (BNI) a term loan facility with a maximum amount of Rp 500,000 which is available up to June 20, 2011. On December 24, 2008, MPP drew down the facility amounting to Rp 500,000 from BNI that is payable in 6 quarterly instalments each amounting to Rp 70,000 per quarter starting on December 24, 2009 and amounting to Rp 80,000 for the last installment on June 20, 2011. Therefore, the first installment that will be due on December 24, 2009 is presented as “Current maturities of long-term debts - Bank loans” on December 31, 2008.
On March 15, 2005, PT Matahari Graha Fantasi (MGF), MPP’s subsidiary, obtained from Hongkong and Shanghai Banking Corporation Ltd (HSBC) revolving working capital loan and overdraft facilities with a maximum aggregate amount of Rp 30,000. In 2006, the facilities were converted into a Reducing Balance Loan Facility and the loan is payable in 22 monthly installments in the amount of Rp 1,300 each starting August 2006 and Rp1,400 for the last installment in June 2008. In June 2008, the final installment on loan was paid.
On September 19, 2006, MPP, a subsidiary, obtained a working capital loan facility from HSBC with a principal amount of Rp 150,000 (or its US Dollar equivalent up to a maximum of USD 15,000). The facility which will due on December 18, 2008 has been rolled over up to December 19, 2010. In September 2006, MPP obtained a trade facility amounting to USD 10,000 (Import Facility amounting to USD 10,000 and Guarantee Facility amounting to USD 10,000, with combined limit of USD 10,000) and a cross currency swap facility amounting to USD 29,000 from HSBC. The trade facility is to be used for payment of imported goods and has a maximum tenor of 90 days. The trade facility also includes a guarantee tranche with a maximum tenor of one year. The facilities were extended up to June 30, 2008. The cross currency swap facility reduced to USD 10,000. This facility which will due on December 18, 2008 has been rolled over up to August 31, 2009.
For all the above loan facilities, those loans bear interest at annual rates ranging from 7.3% to 16.75% for Rupiah denominated loan and 5.32% to 8.79% for USD denominated loan in 2008 and ranging from 9.75% to 15% for Rupiah denominated loan and 7% to 12.75% for USD denominated loan in 2007.
The above loan agreements require the Company and subsidiaries to comply with certain conditions, such as maintaining specific financial ratios. As of December 31, 2008, all of these financial ratios have been met. These loan facilities are collateralized by trade receivable, inventories, property and equipment, ownership in certain subsidiary/associate companies.
21. Other Long-term Payables
2008 2007 Rp Rp Estimated Liabilities on Employee Benefits 234,528 191,191 Others 76,684 21,848 Total 311,212 213,039
The estimated liabilities on employee benefits represent an actuary calculation of SFAS No. 24 (Revised 2004) regarding Employee Benefits. As of December 31, 2008 and 2007, the Company’s estimated liabilities on employee benefits amounting to Rp 14,157 and Rp 13,279, respectively.
FINAL DRAFT For Discussion Purpose Only 40 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
The key assumptions used by independent actuary of PT Dayamandiri Dharmakonsilindo for the calculation of estimated liabilities on employee benefits as of December 31, 2008 and 2007, are as follows: Normal Pension Age : 55 years Interest Rate : 2008: 12% per annum; 2007: 10% per annum Salary Increase Projection Rate : 10% per annum Permanent Disability Rate : 10% of mortality rate Resignation Rate : 15% at age 25 years and reducing linearly 1% at age 45 and thereafter Table of Mortality : USA Table of Mortality 1980 - (CSO‘80) Employee benefits expenses to be recognized during current year period, are as follows:
2008 2007 Rp Rp Current Service Cost 18,363 15,540 Interest Cost 16,149 14,973 Total Amortization of Past Service Cost - Non Vested and Actuarial Losses 2,685 4,116 Compensation Cost 15,149 19,363 Gain on Termination Cost -- (1,029) Total 52,346 52,963
Reconciliation of charges on liabilities recognizedin balance sheets, are as follows: 2008 2007 Rp Rp Liabilities at Beginning of the Year 191,191 151,481 Termination Cost (9,009) (13,253) Recognized Employee Benefit Expenses in Current Year 52,346 52,963 Liabilities at End of the Year 234,528 191,191
22. Capital Stock
The Company's stockholders as of December 31, 2008 and 2007 are as follows:
Number of Percentage of Total Stockholders Shares Ownership % Rp Class A Shares (par value of Rp 500 per share) AccrossAsia Ltd 938,328,300 13.829 469,164 Management Jeffrey Koes Wonsono 112,000 0.001 56 Antonius Agus Susanto 400 0.000 -- Others (each below 5% ownership) 933,327,300 13.756 466,664 Sub Total 1,871,768,000 27.59 935,884
Class B Shares (par value Rp 125 per shares) AccrossAsia Ltd 2,532,308,178 37.321 316,539 Others (each below 5% ownership) 2,380,904,111 35.091 297,613 Management - Jeffrey Koes Wonsono 178,711 0.002 22 Sub Total 4,913,391,000 72.41 614,174 Total 6,785,159,000 100.00 1,550,058
FINAL DRAFT For Discussion Purpose Only 41 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
23. Additional Paid-in Capital
2008 2007 Rp Rp Premium Arising from: - Issuance of Shares through Limited Public Offering II in Connection with Pre-emptive Right Issuance II 32,613 32,613 - Issuance of Shares Other than Limited Public Offering 33,375 33,375 Declaration of Stock Dividends (22,856) (22,856) Stock Issuance Cost (28,735) (28,735) Total 14,397 14,397
24. Changes in Equity Transactions of Subsidiary/Associate
2008 2007 Rp Rp PT Reksa Puspita Karya Difference in Value arising from Restructuring Transaction Entities Under Common Control (6,553) (6,553) Changes in Equity Transaction of NGT, an Associate Company (3,602) (701) Sub Total (10,155) (7,254)
PT Matahari Putra Prima Tbk Changes in Equity Transaction of Subsidiaries (71,470) (23,294) Total (81,625) (30,548)
25. Net Sales, Services and Other Operating Revenues
a. The net sales, services and other operating revenues were derived from the following customers:
Total Percentage to Total Revenue 2008 2007 2008 2007 Rp Rp % %
Related Parties 38,186 55,264 0.3 0.53 Third Parties 12,671,202 10,314,843 99.70 99.47 Total 12,709,388 10,370,107 100.00 100.00
FINAL DRAFT For Discussion Purpose Only 42 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
b. The details of sales by product and services are as follows: 2008 2007 Rp Rp
Retail and Distribution 11,977,370 9,768,075 Information Technology Hardware and its Peripherals 443,525 320,912 Software 62,006 63,713 Other Services 191,190 187,476 Sub Total 696,721 572,101 Share Administration and Other Services 35,297 29,931 Total 12,709,388 10,370,107
Sales of retail and distribution represent sales from MPP, a subsidiary’s stores which include Matahari Super Ekonomi and family entertainment centers known as Time Zone.
In 2008 and 2007, consignment sales from MPP, a subsidiary, amounting to Rp 4,238,885 and Rp 3,436,588, respectively, and the related cost due to consignors amounting to Rp 2,949,752 and Rp 2,399,806, respectively.
The sales of information technology of the Company in 2008 mainly resulted from PT Telekomunikasi Seluler, PT Bank CIMB Niaga Tbk, PT Telkom Tbk, PT Bank Negara Indonesia Tbk and PT Excelkomindo amounting to Rp 365,916. The sales of information technology of the Company in 2007 mainly resulted from PT Bank Lippo Tbk, PT Orix Indonesia Finance, PT Telekomunikasi Seluler and PT Bank Permata Tbk amounting to Rp 207,200.
26. Cost of Sales and Services
a. This account consists of cost of goods sold and services provided by the following suppliers:
Total Percentage to Total Cost of Cost of Sales and Services 2008 2007 2008 2007 Rp Rp % %
PT SUN Microsystem Indonesia 121,626 51,852 1.28 0.68 PT IBM Indonesia 109,401 66,763 1.16 0.87 Cisco System 85,685 102,363 0.91 1.33 PT Computrade Technology International 33,030 39,954 0.35 0.52 PT Metrodata E-Bisnis 13,178 11,028 0.14 0.14 NCR Global Solutions 11,042 13,435 0.12 0.17 NCR Indonesia 7,746 10,708 0.08 0.14 Others 232,233 195,963 2.45 2.55 Sub Total 613,941 492,066 6.48 6.41 Cost of Sales of Retail and Distribution 8,853,215 7,188,981 93.52 93.59 Total 9,467,156 7,681,047 100.00 100.00
FINAL DRAFT For Discussion Purpose Only 43 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
b. Cost of sales and services by products and services consists of:
2008 2007 Rp Rp Retail and Distribution 8,853,215 7,188,981 Information Technology Hardware and its Peripherals 402,727 286,201 Software 57,900 55,629 Other Services 150,181 147,681 Sub Total 610,808 489,511 Share Administration and Other Services 3,133 2,555 Total 9,467,156 7,681,047
27. Operating Expenses
2008 2007 Rp Rp
Selling Rental 700,172 530,098 Supplies 99,365 70,514 Credit Card 55,739 43,005 Marketing 83,039 30,276 Salaries, Allowance and Employee Benefits 12,477 11,388 Others 6,888 7,204 Sub Total 957,680 692,485
General and Administrative Salaries, Allowance and Employee Benefits 836,875 754,328 Depreciation (see Note 9) 332,043 324,667 Water and Electricity 271,788 237,264 Insurance 39,923 38,710 Taxes and Licenses 46,090 36,774 Amortization 35,532 34,869 Professional Fees 74,248 33,950 Traveling and Transportation 36,699 31,960 Telephone, Facsimile and Postage 28,142 24,113 Others 53,370 38,439 Sub Total 1,754,710 1,555,074 Total Operating Expenses 2,712,390 2,247,559
28. Interest Expense and Other Financing Cost - Net
2008 2007 Rp Rp
Interest Income 266,889 212,528 Interest Expense and Other Financing Cost (517,703) (513,273) Net (250,814) (300,745) FINAL DRAFT For Discussion Purpose Only 44 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
29. Assets and Liabilities Denominated in Foreign Currencies
As of December 31, 2008 and 2007, the monetary assets and liabilities in foreign currencies are as follows:
2008 Amount in Foreign Equivalent to Currencies Rp Assets Cash and Cash Equivalents USD 2,177 23,842 SGD 13,982 106,366 JPY 11,371 1,379 HKD 686 969 EUR 90 1,389 RMB 142 229 Short-term Investments USD 39,276 430,073 SGD 40,730 309,849 Accounts Receivable Trade Related Parties USD 1,367 14,967 Third Parties USD 8,648 94,697 Others USD 295 3,235 Other Current Assets USD 513 5,613 Option/Forward Contract Assets USD 21,731 237,953 JPY 568,205 68,883 Other Non-Current Assets USD 10 113 Total Assets 1,299,557
Liabilities Short-term Loans USD 16,425 179,850 Promissory Notes USD 300 3,285 Accounts Payable Trade USD 4,023 44,056 SGD 40,730 309,849 Others USD 24 258 Accrued Expenses USD 400 4,378 Other Current Liabilities USD 1,563 17,118 Long-term Debts Notes Payable USD 119,344 1,306,820 Loans USD 85,707 938,498 Swap Contract Liabilities USD 46,870 513,226 Others Long-term debt USD 2,423 26,528 Total Liabilities 3,343,866 Net Liabilities Denominated in Foreign Currencies (2,044,309)
FINAL DRAFT For Discussion Purpose Only 45 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
2007 Amount in Foreign Equivalent to Currencies Rp Assets Cash and Cash Equivalents USD 6,603 62,099 SGD 28,429 184,856 JPY 9,479 795 HKD 7,068 8,538 EUR 102 1,410 RMB 90 116 Short-term Investments USD 29,968 282,180 SGD 40,320 262,175 Other Long-term Investments SGD 33,509 217,887 Accounts Receivable Trade Related Parties USD 3,167 29,825 Third Parties USD 4,538 42,747 Others USD 26 250 Other Current Assets USD 966 9,103 Option/Forward Contract Assets USD 10,502 98,724 Other Non-Current Assets USD 30 285 Total Assets 1,200,990
Liabilities Short-term Loans USD 26,227 247,030 Promissory Notes USD 300 2,826 Accounts Payable Trade USD 4,286 40,370 SGD 40,320 262,176 Others USD 6 52 Accrued Expenses USD 217 2,047 Other Current Liabilities USD 1,652 15,561 Long-term Debts Notes Payable USD 150,000 1,408,950 Loans USD 78,067 735,312 Option/Swap Contract Liabilities USD 9,049 84,997 Others Long-term Debt USD 2,412 22,657 Total Liabilities 2,821,978 Net Liabilities Denominated in Foreign Currencies (1,620,988)
FINAL DRAFT For Discussion Purpose Only 46 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
30. Account and Transactions with Related Parties
The Company and subsidiaries, in their normal course of business, have engaged in transactions with related parties principally consisting of sales, providing services and space rental which are made on an arm's length basis, and intercompany advances.
The details of the accounts and transactions with related parties are as follows: Percentage to Total Assets/ Liabilities/Respective Amount Revenue and Expenses 2008 2007 2008 2007 Rp Rp % % Short term Investment PT Ciptadana Sekuritas 837,000 87,297 7.34 0.89 PT Lippo Karawaci Tbk 319,428 277,649 2.80 2.82 Others (below Rp 1,000 each) 70 114 -- -- Total 1,156,498 365,060 10.14 3.71
Accounts Receivable PT First Media Tbk 7,388 11,734 0.06 0.12 PT Direct Vision 3,631 5,278 0.03 0.05 PT Link Net 1,709 17,894 0.01 0.18 PT Lippo Karawaci Tbk 1,902 537 0.02 0.01 Others (below Rp 1,000 each) 3,668 1,924 0.03 0.02 Total 18,298 37,367 0.15 0.38
Other Receivables PT First Media Tbk 1,323 -- 0.01 -- Others (below Rp 1,000 each) 2,261 1,982 0.02 0.02 Total 3,584 1,982 0.03 0.02
Due from Related Parties Employees 2,200 2,200 0.02 0.02 PT Bintang Sidoraya 5,027 2,066 0.04 0.02 PT Karya Dinamika Investama 1,600 1,600 0.01 0.02 PT Inti Mitratama Abadi 1,035 1,035 0.01 0.01 Others 180 191 -- -- Total 10,042 7,092 0.08 0.07
Prepaid Expenses Rental PT Mandiri Cipta Gemilang 9,791 -- 0.09 -- PT Direct Power 3,532 3,532 0.03 0.04 Others (below Rp 1,000 each) 388 335 -- -- Total 13,711 3,867 0.12 0.04
Others PT Lippo Karawaci Tbk 452 1,129 -- 0.01 Others (below Rp 1,000 each) 1,139 -- 0.01 -- Total 1,591 1,129 0.01 0.01
FINAL DRAFT For Discussion Purpose Only 47 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Percentage to Total Assets/ Liabilities/Respective Amount Revenue and Expenses 2008 2007 2008 2007 Rp Rp % % Investments in Associates PT First Media Tbk 115,841 141,202 1.02 1.44 PT Matahari Leisure 27,291 26,673 0.24 0.27 PT Bintang Sidoraya 2,380 21,123 0.02 0.21 PT Tason Mitra Prima 2,082 3,395 0.02 0.03 Others 400 400 -- -- Total 147,994 192,793 1.30 1.95
Other Long Term Investments Investments in: PT Courts Indonesia Tbk 4,251 4,251 0.04 0.04 Others 887 887 0.01 0.01 Total 5,138 5,138 0.05 0.05
Long-term Rent - net PT Direct Power 83,010 84,776 0.73 0.86 PT Mandiri Cipta Gemilang 79,961 -- 0.70 -- Others -- 168 -- -- Total 162,971 84,944 1.43 0.86 Advance for Purchase of Property and Equipment PT Lippo Karawaci Tbk 118,000 118,000 1.03 1.20
Rental Advances PT Menara Bhumimegah 286,433 286,433 2.51 2.91 PT Mandiri Cipta Gemilang -- 97,912 -- 1.00 Total 286,433 384,345 2.51 3.91
Other Non-Current Assets Advance for Investments in: PT Asianet Mutlimedia 27,943 27,943 0.25 0.28 Others 124 124 -- -- Guarantee Deposits Others 293 198 -- -- Total 28,360 28,265 0.25 0.28
Accounts Payable 28 552 -- 0.01
Other Current Liabiities Customers' Deposits 2,295 2,357 0.03 0.04 Unearned Services Income 1,699 783 0.02 0.01 Total 3,994 3,140 0.05 0.05
FINAL DRAFT For Discussion Purpose Only 48 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Percentage to Total Assets/ Liabilities/Respective Amount Revenue and Expenses 2008 2007 2008 2007 Rp Rp % % Due to Related Parties PT Buana Trans Mandiri 1,437 558 0.02 0.01 PT Bintang Taratrans Buana 1,350 1,509 0.02 0.02 Avey Pty, Limited Australia 353 2,778 -- 0.04 Others 503 582 0.01 0.01 Total 3,643 5,427 0.05 0.08
Net Sales, Services and Other Operating Expenses PT First Media Tbk 24,002 35,876 0.19 0.35 PT Lippo Karawaci Tbk 6,152 5,245 0.05 0.05 PT AIG Life 2,709 867 0.02 0.01 PT Link Net 6 1,005 -- 0.01 Others (below Rp 1,000 each) 5,317 12,271 0.04 0.13 Total 38,186 55,264 0.30 0.55
Cost of Sales and Services 721 320 -- --
Rental Expenses PT Mandiri Cipta Gemilang 8,159 -- 1.17 -- PT Direct Power 1,766 -- 0.25 -- Others (below Rp 1,000 each) 1,513 561 0.22 0.11 Total 11,438 561 1.64 0.11
Rental Revenue PT Lippo Karawaci Tbk 2,931 2,062 0.42 0.39 PT First Media Tbk 1,652 -- 0.24 -- Total 4,583 2,062 0.66 0.39
Salaries and Employee Benefits 24,425 26,377 -- --
Marketing Expenses Avel Pty. Limited, Australia 4,888 7,771 5.64 25.67 PT First Media Tbk -- 1,381 -- 4.56 Others 121 502 0.14 1.66 Total 5,009 9,654 5.78 31.89
Archive Management Fees 397 815 128.90 0.05
Telephone, Facsimile and Postage Expenses 265 200 0.72 0.01
FINAL DRAFT For Discussion Purpose Only 49 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Percentage to Total Assets/ Liabilities/Respective Amount Revenue and Expenses 2008 2007 2008 2007 Rp Rp % %
Insurance Expenses 838 1,927 2.10 0.12
Consultants Fee 7 288 0.01 0.02
Interest and Other Financing Expenses Interest Income PT Ciptadana Sekuritas 50,180 15,095 27.65 5.79 PT Lippo Securities Tbk -- 1,454 -- 0.56 Others 1,073 124 0.59 0.05 Total 51,253 16,673 28.24 6.40
Other Expenses Others 1,214 268 1.26 0.01
Equity in Net Earnings (Losses) Perusahaanof Associatees Asosiasi PT Matahari Leisure 5,618 8,328 (11.15) 110.45 PT First Media Tbk (35,961) (788) 71.35 (10.45) PT Bintang Sidoraya (18,743) -- 37.19 -- Others (1,313) -- 2.61 -- Total (50,399) 7,540 100.00 100.00
The relationship and nature of account balances/transactions with related parties are as follows:
Related Parties Relationship Nature of Account Balance/Transaction Avel Pty, Limited, Australia Affiliate Payment for promotion expense and intercompany account
PT Bintang Sidoraya Associate Intercompany account and investment in associate PT Buana Trans Mandiri Affiliate Intercompany account
PT Bintang Taratrans Buana Affiliate Intercompany account
PT Ciptadana Sekuritas Affiliate Investment in managed funds, other receivables, sales, archieve management fee, interest income, marketing expense and other expenses PT Direct Vision Associatee Accounts receivable and sales PT Direct Power Affiliate Prepaid expenses, prepaid long term rent - net and rental expenses PT First Media Tbk Associate Accounts receivable, other receivables, investment in associate, customer’s deposits, prepaid expenses, sales, rental revenue, promotion expenses, communication and other expenses
FINAL DRAFT For Discussion Purpose Only 50 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Related Parties Relationship Nature of Account Balance/Transaction PT Inti Miratama Abadi Affiliate Intercompany account
Employees Employees Loans PT Karya Dinamika Investama Affiliate Intercompany receivable and investment in associate PT Link Net Affiliate Accounts receivable, sales, cost of sales and telephone expenses PT Lippo Karawaci Tbk Affiliate Marketable securities, accounts receivable, other receivable, prepaid expenses, renovation of properties, acquisition of investment in properties, deposit, sales, unearned service income, sales, rental income and expense, and interest income PT Lippo Securities Tbk Affiliate Marketable securities, accounts receivable, intercompany account, unearned service income, sales and interest income PT Matahari Leisure Associate Investment in associate and intercompany account PT Mandiri Cipta Gemilang Affiliate Prepaid expenses, rental advance, prepaid long term rent - net and rental expenses PT Menara Bhumimegah Affiliate Rental advance PT Menara Perkasa Megah Affiliate Advance for Purchase of Property and Equipment PT Persada Mandiri Dunia Niaga Affiliate Advance for Purchase of Property and Equipment
PT Tason Mitra Prima Associate Investment in associate
31. Swap/Option/Forward Contracts
a. Cross Currency Swap i. On October 20, 2006, Matahari Finance B.V (MF), MPP’s subsidiary, entered into an agreement for Cross Currency Rate Swap from USD to Japanese Yen with BNP Paribas, Paris. At the end of the contract period on October 6, 2009, MF will buy back the USD 75,000 at the same rate. MF will receive 9.5% interest per annum in USD and pay 5.38% per annum interest in Japanese Yen semiannually, every April 6 and October 6 up to the end of the contract period. The contract is guaranteed by MPP.
ii. On May 2, 2007, MF also entered into an agreement for Cross Currency Rate Swap from USD to Japanese Yen with JP Morgan, London. At the end of the contract period on October 6, 2009, MF will buy the USD 75,000 at the same rate. MF will receive 9.5% interest per annum in USD and pay 5.37% per annum interest in Japanese Yen semiannually, every April 6 and October 6 up to the end of the contract period. The contract is guaranteed by MPP.
As of December 31, 2007, the loss on change in fair value of the cross currency swap amounted to Rp 72,959 (equivalent to USD 7,767) while as of December 31, 2008, the loss on change in fair value of the cross currency swap amounted to Rp 485,913 (equivalent to USD 44,376), the net change in fair value, including the effect of interest income/expense, amounting to Rp 410,233 (equivalent to USD 36,177) was debited to profit and loss and is presented as part of “Other income (charges) - net” in the consolidated statements of income.
FINAL DRAFT For Discussion Purpose Only 51 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
b. Interest Rate Swap On October 22, 2008, the Company has entered into USD Interest Rate Swap contract with PT Bank BNP Paribas Indonesia (BNP) for notional amount of USD 75,000, where BNP will pay floating rate three- months’ LIBOR and the Company will pay annual fixed rate USD of 2.75%. The interest will be paid quarterly and will mature on June 18, 2010.
The purpose of this USD Interest Rate Swap contract is to cover the risks of potential losses from the increase of interest rate. The contract qualified as hedges of future cash flows accounting. Therefore, the effective portion of the changes in fair value is recorded as part of equity. As of December 31, 2008, the cash flows hedging reserve recorded in the equity amounted to Rp 18,002.
c. Options i. On July 30, 2007, the Company has agreement of Buy USD Sell IDR Seagull facility with JP Morgan (SEA) Limited, Singapore amounting to USD 35,000 for spread more or equal to Rp 10,400 (in full amount). If on termination date the rate is below Rp 10,400 (in full amount), then the Company will buy on strike rate amounting to Rp 9,025 (in full amount). This facility will be due on September 18, 2010.
Based on the contract, the Company has to pay in advance the premium amounting to USD 1,640, which will be amortized during the period of contract.
ii. On October 1, 2007, the Company has agreement of Buy USD Sell IDR Seagull facility with JP Morgan (SEA) Limited, Singapore amounting to USD 20,000 for spread more or equal to Rp 9,500 (in full amount). If on termination date the rate is below Rp 9,500 (in full amount), then the Company will buy on strike rate amounting to Rp 9,025 (in full amount). Based on the contract, the Company has to pay in advance the premium amounting to USD 280, which will be amortized during the period of contract. This facility has due on December 31, 2008. The Company record net gain amounting to USD 743 (equivalent to Rp 7,095).
iii. On October 20, 2006, MPP, a subsidiary, entered into an Options Foreign Currency Contract with JP Morgan, Singapore (JPM). Based on the contract, at termination date on October 6, 2009, MPP and JPM may execute the following: MPP has the right to buy JPY 5,915,000 at the strike price of Rp 77.5 per JPY 1 (in full amount) from JPM. JPM has the right to buy JPY 5,915,000 at the strike price of Rp 98 per JPY 1 (in full amount) from MPP. JPM has the right to sell JPY 5,915,000 at the strike price of Rp 76 per JPY 1 (in full amount) to MPP.
Based on the contract, MPP has to pay a fixed premium of 4.54% per annum from the notional amount of JPY 5,915,000 payable semiannually, every April 6 and October 6 up to the end of the contract period.
iv. On October 20, 2006, MPP, a subsidiary, entered into an Options Foreign Currency Contract with JP Morgan, Singapore (JPM). Based on the contract, at termination date on October 6, 2009, MPP and JPM may execute the following: MPP has the right to buy JPY 2,957,500 at the strike price of Rp 77.4 per JPY 1 (in full amount) from JPM. JPM has the right to buy JPY 2,957,500 at the strike price of Rp 98 per JPY 1 (in full amount) from MPP. FINAL DRAFT For Discussion Purpose Only 52 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
JPM has the right to sell JPY 2,957,500 at the strike price of Rp 76 per JPY 1 (in full amount) to the MPP.
Based on the contract, MPP has to pay a fixed premium of 4.54% per annum from the notional amount of JPY 2,957,500 payable semiannually, every April 6 and October 6, up to the end of the contract period.
v. On November 9, 2006, MPP, a subsidiary, entered into other Option Foreign Currency Contract with JPM, Singapore. Based on the contract, at termination date on October 6, 2009, MPP and JPM may execute the following: MPP has the right to buy JPY 8,850,000 at the strike price of Rp 77.4 per JPY 1 (in full amount) from JPM. JPM has the right to buy JPY 8,850,000 at the strike price of Rp 98 per JPY 1 (in full amount) from MPP. JPM has the right to sell JPY 8,850,000 at the strike price of Rp 76 per JPY 1 (in full amount) to MPP.
Based on the contract, MPP has to pay a fixed premium of 4.23% per annum from the notional amount of JPY 8,850,000 payable semiannually, every April 6 and October 6 up to the end of the contract period.
As of December 31, 2007, the gain on fair value of the option contracts amounted to Rp 83,650 (equivalent to USD 8,925) while as of December 31, 2008, the gain on fair value amounted to Rp 214,885 (equivalent to USD 19,704), the net change in fair value, including the effect of interest expense, amounting to Rp 139,232 (equivalent to USD 11,616) was credited to profit and loss and is presented as part of “Other income (charges)” in the consolidated statements of income.
d. Forward On October 20, 2008, MPP, a subsidiary, entered into a Foreign Exchange - Non Deliverable Forward Contract with Prime Venture Pte. Ltd., Singapore. Based on the contract, at termination date on April 22, 2009 the Company has the right to buy JPY 4,000,000 at the strike price of Rp 109.5 per JPY1 (in full amounts) or amounted Rp 438,000.
The net change in fair value amounting to Rp 68,883 (equivalent to JPY 568,205) was credited to profit and loss and is presented as part of “Other income (charges) - net” in consolidated statements of income.
32. Other Agreements and Contingency
Agreements a. On May 18, 1994, the Company entered into a distribution licensing agreement with BankVision Software Ltd. (BV), U.S.A., as amended by agreement dated November 28, 1997, whereby the Company was granted the right to sell and distribute the BV licensed products. As agreed by the parties, the Company paid BV a one-time payment of USD 250 as compensation for the entire grant and license. The amended agreement is valid for 99 years.
FINAL DRAFT For Discussion Purpose Only 53 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
b. In March 2001, MPP, a subsidiary entered into a license agreement with IGA, Inc. (“IGA”), whereby IGA authorized and licensed MPP to use the IGA trademarks (1) to identify MPP as an IGA member, (2) in connection with the distribution and promotion of products with the quality standards established by IGA, solely in MPP’s stores, and rendering of services relating to IGA systems in those stores, and (3) in connection with the procurement and labeling of products with the quality standards established by IGA.
On the same date, MPP entered into a service agreement with IGA to obtain service and support from IGA, including guidance and counsel, international public relations assistance, and attendance at major key events.
c. In December 2002, MPP, a subsidiary, entered into a management agreement with PT Matahari Graha Fantasi (MGF), a subsidiary of MPP, whereby MPP agreed to provide management consultation services to MGF. MPP earns an annual management fee as compensation, which is computed at a certain percentage of the gross revenue of MGF. The agreement is effective for a 12-year period starting January 1, 2003.
The related reciprocal management fee income and expense amounting to Rp 2,222 and Rp 3,532 for the years ended December 31, 2008 and 2007, respectively, have been eliminated in the consolidated financial statements.
d. In January 2003, MGF , a subsidiary of MPP, entered into a “Business System License Agreement” with Avel Pty. Limited, Australia (licensor) whereby the licensor granted MGF the exclusive right in Indonesia to use the “Timezone Business System”. The licensor earns an annual royalty as compensation, which is computed at a certain percentage of the gross revenue of MGF. The agreement is effective for a 12-year period starting January 1, 2003.
The royalty fees charged to current operations as part of “Selling Expenses (Marketing)” amounted to Rp 4,888 and Rp 7,771 in 2008 and 2007, respectively.
e. In August 2004, MPP , a subsidiary, entered into a lease agreement with PT Donindo Menara Utama covering lease of store space with a floor area of 9,000 square meters in Banjarmasin. The lease period covers 11 years to start at the opening day of the store and is extendable. As required in the agreement, MPP made rental deposit amounting to Rp 1,500 which is presented as part of “Other Non-current Assets” as of December 31, 2008 and 2007. The store has not opened yet as of December 31, 2008.
f. In December 2004, MPP , a subsidiary, entered into a “Software License Agreement” with PT Accenture whereby PT Accenture granted to MPP a non-transferable and non-exclusive license to utilize the licensed software program for the entire duration of the agreement. The agreement commenced in December 2004 and shall be perpetual unless terminated by PT Accenture. In addition, MPP entered into a “Consulting Service Agreement” whereby PT Accenture will assist MPP in implementing selected “Retek” application modules. The service is for 18 months. MPP shall pay service fee as compensation for the services over a certain agreed period. As of December 31, 2008, MPP has paid USD 4,000 for the license fee and USD 4,027 for the consultation, which are presented as part of “Other Non-current Assets”.
g. In February 2007, MPP , a subsidiary, entered into a lease agreement with PT Gerbang Perkasa covering a store with floor area of 20,343 square meters in Boutique Mall, Yogyakarta. The lease period covers 15 years to start on the opening day of the store with total rental charge of Rp 129,000. As required in the agreement, MPP has made the rental payment amounting to Rp 129,000 as of December 31, 2008, which is presented as part of “Rental Advances”.
FINAL DRAFT For Discussion Purpose Only 54 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Based on the addendum on rental agreement that was signed on October 2008, the rental period become 19 years to start on the opening day of store, MPP will also received compensation for participation fee amounting to Rp 3,800 that has been presented as part of “Other receivables - net”. The store has not opened yet as of December 31, 2008. The store has not opened yet as of December 31, 2008.
h. In March 2007, MPP , a subsidiary, entered into a lease agreement with PT Lingkar Indah Kencana covering a store with floor area of 13,233 square meters in The Great Town Square, Sidoarjo. The lease period covers 20 years to start on the opening day of the store with total rental charge of Rp 78,241. As required in the agreement, MPP has made the rental payment amounting to Rp 78,241 as of December 31, 2008, which is presented as part of “Rental Advances”.
Based on the addendum on rental agreement that was signed on November 2008, the rental period become 26 years to start on the opening day of store, MPP will also received compensation for participation fee amounting to Rp 2,300 that has been presented as part of “Other receivables - net”. The store has not opened yet as of December 31, 2008. The store has not opened yet as of December 31, 2008.
i. In March 2007, MPP , a subsidiary, entered into a lease agreement with PT Perisai Emas covering a store with floor area of 15,267 square meters in Kuta Beach, Bali. The lease period covers 20 years to start on the opening day of the store with total rental charge of Rp 214,827. As required in the agreement, MPP has made the rental payment amounting to Rp 214,827 as of December 31, 2008, which is presented as part of “Rental Advances”.
Based on the addendum on rental agreement that was signed on October 2008, the rental period become 24 years to start on the opening day of store, MPP will also received compensation for participation fee amounting to Rp 6,400 that has been presented as part of “Other receivables - net”. The store has not opened yet as of December 31, 2008.
j. In April 2007, MPP , a subsidiary, entered into a lease agreement with PT Rekapastika Asri covering a store with floor area of 7,000 square meters in Bekasi. The lease period covers 11 years to start on the opening day of the store. As required in the agreement, MPP made the rental payment amounting to Rp 2,500 which is presented as part of “Rental Advances” as of December 31, 2008. The store has not opened yet as of December 31, 2008.
k. In April 2007, MPP , a subsidiary, entered into a lease agreement with PT Cakrawala Sakti Kencana covering a store with floor area of 7,350 square meters in Paragon City, Semarang. The lease period covers 12 years to start on the opening day of the store. As required in the agreement, MPP made the rental deposit amounting to Rp 1,103 which is presented as part of “Other Non-current Assets” as of December 31, 2008. The store has not opened yet as of December 31, 2008.
In November 2007, MPP , a subsidiary, entered into a lease agreement with PT Cakrawala Sakti Kencana covering a store with floor area of 8,672 square meters in Paragon City, Semarang. The lease period covers 11 years. As required in the agreement, MPP made the rental deposit amounting to Rp 1,561 as of December 31, 2008, which is presented as part of “Other Non current-Assets”. The store has not opened yet as of December 31, 2008.
FINAL DRAFT For Discussion Purpose Only 55 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
l. On June 18, 2007, PT Prima Gerbang Persada (PGP, a wholly-owned indirect subsidiary of MPP) entered into an agreement with PT Lippo Karawaci Tbk to renovate a building located in Bandar Lampung with total cost amounting to Rp 118,000. As required in the agreement, PGP has made payment amounting to Rp 118,000 as of December 31, 2008, which is presented as part of “Advances for Purchase of Property and Equipment”. The store has not opened yet as of December 31, 2008.
m. In July 2007, MPP, a subsidiary, entered into a lease agreement with PT Selyca Mulia covering a store with floor area of 7,100 square meters in Plaza Mulia Samarinda. The lease period covers 10 years to start on the opening day of the store. As required in the agreement, MPP made the rental payment amounting to Rp 11,758 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
In January 2008, MPP, a subsidiary, entered into a lease agreement with PT Selyca Mulia covering a store with floor area of 6,000 square meters in Plaza Mulia Samarinda. The lease period covers 11 years to start on the opening day of the store with rental payment amounting to Rp 2,970 and Rp 1,620 as of December 31, 2008 which are presented as part of “Rental Advances” and “ Other Non current-Assets”. The store has not opened yet as of December 31, 2008.
n. In July and November 2007, MPP, a subsidiary, entered into a lease agreement with PT Gaya Kreasindo Permai covering a store with floor area of 14,715 square meters in Jakarta. The lease period covers 11 years. The store has not opened yet as of December 31, 2008.
o. In August 2007, MPP, a subsidiary, entered into a new lease agreement with PT Menara Bhumimegah covering lease of a store with floor area of 19,795 square meters in Jakarta. The lease period covers 20 years with total rental charge of Rp 286,433. As required in the agreement, MPP made the rental payment amounting to Rp 286,433 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
p. On October 10, 2007, Tristar, a subsidiary of MPP, entered into an agreement with Dellmore Investment Ltd. (“DM”) to obtain an assurance that net proceeds from the restructurization program of MPP’s certain assets shall not be less than Rp 1,000,000 and 25% of the payment consideration will be in the form of LMIR Trust units without lock-up provisions or without encumbrances. DM is required to deliver LMIR Trust units which Tristar is entitled to receive on the listing date of the LMIR units on the Singapore Stock Exchange (SGX-ST). As long as Tristar does not receive the units, DM will provide a guarantee to Tristar in the form of cash equivalent which is retained in an escrow account or other similar arrangement agreed by both parties (Notes 1c, 4 and 36).
q. On October 18, 2007, MPP, together with HSBC Institutional Trust Services (Singapore) Limited (“HSBC”, as trustee of Lippo-Mapletree Indonesia Retail Trust, called Option Holder), Detos Properties e. Ltd (“Detos”) and Matos Properties e. Ltd (“Matos”), both stockholders of Megah Detos Utama (“ MDU”) entered into a put option agreement whereby, if in the following 2 (two) years from the listing date of the LMIR Trust units on the Singapore Stock Exchange (“SGX-ST”), MDU does not acquire the strata titles of the property purchased from MPP, Option Holder has an option to request MPP to repurchase shares of Detos at the Average of Valuations conducted by Valuers or Valuation Amount at the initial offering of the LMIR Trust units, whichever is higher.
FINAL DRAFT For Discussion Purpose Only 56 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
r. On October 18, 2007, MPP, together with HSBC Institutional Trust Services (Singapore) Limited (“HSBC”, as trustee of Lippo-Mapletree Indonesia Retail Trust, called Option Holder), Palladium Properties e. Ltd (“Palladium”) and Detos Properties e. Ltd (“Detos”), both stockholders of Palladium Megah Lestari (“ PML”) entered into a put option agreement whereby, if in the following 2 (two) years from the listing date of the LMIR Trust units on the Singapore Stock Exchange (“SGX-ST”), PML does not acquire the strata titles of the property purchased from MPP, Option Holder has an option to request MPP to repurchase shares of Palladium at the Average of Valuations conducted by Valuers or Valuation Amount at the initial offering of the LMIR Trust units, whichever is higher.
s. In February 2008, MPP, a subsidiary, entered into a lease agreement with PT Pakuwon Jati covering a store with floor area of 7,099 square meters in Pakuwon Town Square, Surabaya. The lease period covers 11 years to start on the opening day of the store. As required in the agreement, MPP has made the rental payment amounting to Rp 3,067 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
t. In March 2008, MPP, a subsidiary, entered into a lease agreement with PT Trimitra Exelindo Utama Karya covering a store with floor area of 20,000 square meters in Setiabudi Signature Semarang. The lease period covers 15 years to start on the opening day of the store with total rental charge of Rp 113,353. As required in the agreement, MPP has made the rental payment amounting to Rp 113,353 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
u. In March 2008, MPP, a subsidiary, entered into a lease agreement with PT Bima Mitra Utama Energi covering a land and building with floor area of 9,968 square meters in Cempaka Putih, Jakarta. The lease period covers 10 years to start on the opening day of the store with total rental charge of Rp 117,682. As required in the agreement, MPP has made the rental payment amounting to Rp 117,682 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
v. In March 2008, MPP, a subsidiary, entered into a lease agreement with PT Rangkai Ribu Paremas covering a store with floor area of 14,000 square meters in Arteri Simpruk, Jakarta. The lease period covers 15 years to start on the opening day of the store with total rental charge of Rp 154,433. As required in the agreement, MPP has made the rental payment amounting to Rp 154,433 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
w. In March 2008, MPP, a subsidiary, entered into a lease term-sheet with PT Win Win Realty Centre covering a store with floor area of 6,855 square meters in Ciputra World, Surabaya. The lease period covers 12 years to start on the opening day of the store. As required in the agreement, MPP has made the rental payment amounting to Rp 2,056 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
x. In June 2008, MPP, a subsidiary, entered into a lease term-sheet with PT Karya Bersama Takarob covering a store with floor area of 6,187 square meters in Cirebon Superblock Mall. The lease period covers 11 years to start on the opening day of the store. As required in the agreement, MPP has made the rental payment amounting to Rp 2,784 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
FINAL DRAFT For Discussion Purpose Only 57 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
In September 2008, MPP, a subsidiary, entered into an additional lease term-sheet with PT Karya Bersama Takarob covering a store with floor area of 5,500 square meters in Cirebon Superblock Mall. The lease period covers 11 years to start on the opening day of the store. As required in the agreement, MPP has made the rental payment amounting to Rp 5,000 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
y. In June 2008, MPP, a subsidiary, entered into a lease term-sheet with PT Wulandari Bangun Laksana covering a store with floor area of 2,180 square meters in e-Walk@Balikpapan Superblock. The lease period covers 10 years to start on the opening day of the store. The store has not opened yet as of December 31, 2008.
z. In July 2008, MPP, a subsidiary, entered into a lease agreement with PT Bangun Cipta Karya Perkasa covering a store with floor area of 5,500 square meters in Mall Taman Palem, Jakarta. The lease period covers 11 years to start on the opening day of the store. As required in the agreement, MPP has made the rental payment amounting to Rp 2,500 and Rp 866 as of December 31, 2008, which are presented as part of “Rental Advances” and “Other Non-current Assets”, respectively. The store has not opened yet as of December 31, 2008.
aa. In September 2008, MPP, a subsidiary, entered into a lease agreement with PT Khatulistiwa Multipromo covering a store with floor area of 19,660 square meters in Salemba, Jakarta. The lease period covers 15 years to start on the opening day of the store with total rental charge of Rp 196,600. As required in the agreement, MPP has made the rental payment amounting to Rp 196,600 as of December 31, 2008, which is presented as part of “Rental Advances”. The store has not opened yet as of December 31, 2008.
On October 28, 2008, MPP, a subsidiary, entered into an addendum to the lease agreement No. 117 dated September 19, 2008 with PT Khatulistiwa Multipromo in Salemba, Jakarta, as agreed in the addendum, MPP has an option to cancel the lease agreement anytime during November 1, 2008 up to December 31, 2009 under the agreed term and condition (Note 36). The store has not opened yet as of December 31, 2008.
bb. In September 2008, MPP, a subsidiary, entered into a lease agreement with PT Inovasi Ragam Abadi covering a store with floor area of 10,789 square meters in Kuta Central Park, Bali. The lease period covers 15 years to start on the opening day of the store with total rental charge of Rp 140,956. As required in the agreement, MPP has made the rental payment amounting to Rp 140,956 as of December 31, 2008, which is presented as part of “Others Current Assets”.
On October 27, 2008, MPP, a subsidiary, entered into an addendum to the lease agreement No. 124 dated September 24, 2008 with PT Inovasi Ragam Abadi in Kuta Central Park, Bali, as agreed in the addendum, MPP has an option to cancel the lease agreement anytime during November 1, 2008 up to December 31, 2009 under the agreed term and condition (Note 36). The store has not opened yet as of December 31, 2008.
cc. In September 2008, MPP, a subsidiary, entered into a lease agreement with PT Sitryco Riwani Jaya covering a store with floor area of 22,739 square meters in Surabaya Junction, Surabaya. The lease period covers 20 years to start on the opening day of the store with total rental charge of Rp 197,716. As required in the agreement, MPP has made the rental payment amounting to Rp 197,716 as of December 31, 2008, which is presented as part of “Others Receivables - net”.
FINAL DRAFT For Discussion Purpose Only 58 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
On October 29, 2008, MPP, a subsidiary, entered into an addendum to lease agreement No. 138 dated September 25, 2008 with PT Sitryco Riwani Jaya in Surabaya Junction, Surabaya, as agreed in the addendum, MPP has an option to cancel the lease agreement anytime during November 1, 2008 up to December 31, 2009 under the agreed term and condition (Note 36). The store has not opened yet as of December 31, 2008.
dd. On November 20, 2008, MPP, a subsidiary, entered lease agreement with PT Mandiri Cipta Gemilang covering a store with floor area of 24,858.91 square meters in Jakarta. The lease period covers 20 years to start on the opening day of the store with total rental charge of Rp 324,260. The store has not opened yet as of December 31, 2008 (Note 36).
Contingency In relation to MPP, a subsidiary’s rent right in the Bogor Internusa Plaza (now Pangrango Plaza) located in Bogor which was not compensated by PT Bogor Internusa Plaza (BIP) as developer after the fire incident in 1996, MPP has filed a legal suit against BIP in the Bogor State Court. The state court has approved a part of the MPP’s suit to recover the amounts of Rp 101,617 and USD 1,441. In January 2006, BIP filed its objection to the decision of the state court in the High Court of Bandung. The high court decided that BIP should pay compensation for the remaining unused rent amounting to Rp 1,617 and USD 1,441 and MPP should pay compensation to BIP amounting to Rp 218,484. On March 14, 2007, MPP filed its objection to the decision of the High Court of Bandung in the Supreme Court. Up to the financial statements completion date, the appeal process has not been completed.
33. Distribution of Income and Appropriation of Retained Earnings
In General Meeting of Stockholders on March 19, 2008 as covered by notarial deed No. 39 of Poerbaningsih Adi Warsito, SH, the shareholders resolved to, among others, declare cash dividend amounting to Rp 1 (in full Rupiah) per share to shareholders’ that registered in list of stockholders as of April 18, 2008 and to appropriate of Rp 300 from retained earnings as a general reserve.
In General Meeting of Stockholders on May 23, 2007 as covered by notarial deed No. 63 of Poerbaningsih Adi Warsito, SH, the shareholders resolved to, among others, declare cash dividend amounting to Rp 6,785 or Rp 1 (in full Rupiah) per share to shareholders’ that registered in list of stockholders as of September 20, 2007.
34. Segment Information
Primary Segment The Company and subsidiaries classify their products and services into three core business segment namely: Retails and Distribution; Information Technology; Share Administration and Other Services; and Others
FINAL DRAFT For Discussion Purpose Only 59 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Information concerning the Company and subsidiaries business segment are as follows:
2008 Retail and Information Share Others Elimination Consolidated Distribution Technology Administration and Other Services Rp Rp Rp Rp Rp Rp Revenues External 11,977,370 696,721 35,297 -- -- 12,709,388 Intersegment -- 42,064 2,772 -- (44,836) -- Total Revenues 11,977,370 738,785 38,069 -- (44,836) 12,709,388
2008 Retail and Information Share Others Elimination Consolidated Distribution Technology Administration and Other Services Rp Rp Rp Rp Rp Rp Result Segment Result 496,720 24,670 8,076 (6) 382 529,842 Loss on Foreign Exchange - Net of Gain (Loss) on change in Fair Value of Currency Option/Swap Contracts (389,593) (100,465) 460 -- -- (489,598) Interest Expenses and Other Financing Costs- Net (173,200) (78,000) 1,091 (1) (704) (250,814) Gain on Increase in Market Value of Marketable Securities - Net 24,388 7,658 16 -- -- 32,062 Others- Net (10,748) (4,547) 236 (12) (15,990) (31,061) Income (Loss) before Income (Loss) in Associates (52,433) (150,684) 9,879 (19) (16,312) (209,569) Income (Loss) in Associates (14,438) -- -- (35,961) -- (50,399) Income (Loss) before Tax Benefit (Expenses) (66,871) (150,684) 9,879 (35,980) (16,312) (259,968) Income Tax Benefit (Expenses) 74,138 (2,602) (2,759) -- -- 68,777 Profit (Loss) before Minority Interest 7,267 (153,286) 7,120 (35,980) (16,312) (191,191)
Segment Assets 9,709,216 3,274,332 79,937 469 (1,809,450) 11,254,504 Investment in Associates with Equity Method 32,153 -- -- 115,841 -- 147,994 Total Assets 9,741,369 3,274,332 79,937 116,310 (1,809,450) 11,402,498
Segment Liabilities 6,578,137 1,710,340 17,097 185,056 (224,357) 8,266,273
Capital Expenditures 491,092 28,556 15,600 -- -- 535,248 Depreciation 358,781 50,196 3,921 -- -- 412,898
FINAL DRAFT For Discussion Purpose Only 60 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
2007 Retail and Information Share Others Elimination Consolidated Distribution Technology Administration and Other Services Rp Rp Rp Rp Rp Rp Revenues External 9,768,075 572,101 29,931 -- -- 10,370,107 Intersegment -- 30,566 3,477 -- (34,043) -- Total Revenues 9,768,075 602,667 33,408 -- (34,043) 10,370,107
Result Segment Result 407,995 25,265 8,171 -- 70 441,501 Loss on Foreign Exchange - Net of Gain (Loss) on change in Fair Value of Currency Option/Swap Contracts (3,454) (5,027) 105 -- -- (8,376) Interest Expenses and Other Financing Costs- Net (211,685) (89,059) 960 (1) (960) (300,745) Gain on Increase in Market Value of Marketable Securities - Net 3,389 52,680 189 -- -- 56,258 Others- Net 9,134 2,255 325 (3,198) (16,173) (7,657) Income (Loss) before Income (Loss) in Associates 205,379 (13,886) 9,750 (3,199) (17,063) 180,981 Income (Loss) in Associates 8,328 -- -- (788) -- 7,540 Income (Loss) before Tax Benefit (Expenses) 213,707 (13,886) 9,750 (3,987) (17,063) 188,521 Income Tax Benefit (Expenses) (36,763) 2,033 (2,728) -- -- (37,458) Profit (Loss) before Minority Interest 176,944 (11,853) 7,022 (3,987) (17,063) 151,063
Segment Assets 8,394,851 3,114,858 64,754 465 (1,928,981) 9,645,947 Investment in Associates with Equity Method 51,591 -- -- 141,202 -- 192,793 Total Assets 8,446,442 3,114,858 64,754 141,667 (1,928,981) 9,838,740
Segment Liabilities 5,142,414 1,308,574 8,284 171,532 (242,252) 6,388,552
Capital Expenditures 372,058 28,313 10,076 -- -- 410,447 Depreciation 380,002 62,451 2,764 -- -- 445,217
FINAL DRAFT For Discussion Purpose Only 61 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
Secondary Segment Information concerning the Company and subsidiaries geographical areas segment are as follows:
2008 2007 Rp Rp Sales Jabotabek Retail and Distribution 4,385,644 3,552,775 Information Technology 738,785 602,667 Shares Administration and Other Services 33,421 30,406 Elimination Inter Segment (44,836) (34,043) Sub Total 5,113,014 4,151,805
Outside Jabotabek Retail and Distribution 7,591,726 6,215,300 Shares Administration and Other Services 4,648 3,002 Sub Total 7,596,374 6,218,302 Total 12,709,388 10,370,107
35. Recent Economic Conditions
The operations of the Company and subsidiaries may be affected by future economic conditions in Indonesia that may contribute to volatility in currency values and negatively impact economic growth. Economic improvements and sustained recovery are dependent upon several factors such as fiscal and monetary actions being undertaken by the Government and others, actions that are beyond the control of the Company and subsidiaries.
36. Subsequent Events
a. On January 6, 2009, MPP, a subsidiary fully repaid the loan obtained from PT Bank CIMB Niaga Tbk amounting to Rp 240,000 (Note 20), and on January 13, 2009, MPP drew down the loan amounting to Rp 240,000.
b. On January 9, 2009, MPP, a subsidiary refunded the guarantee funds given by Dellmore Investment Limited to Tristar, MPP’s subsidiary, relating to the LMIR Trust units that have been received by Tristar (Note 4).
c. On January 16, 2009, the Company acquired 99.92% of share ownership of PT Air Pasifik Utama (APU), and had been approved by Extraordinary General Meeting of Stockholders of APU, which notarialized under notarial deed of Notary Kurnia Ariyani SH, No. 5 dated January 16, 2009.
d. On January 23, 2009 and February 25, 2009, MPP, a subsidiary made rental payments amounting to Rp 129,704 and Rp 97,278, respectively, as required in the lease agreement with PT Mandiri Cipta Gemilang (Note 32).
FINAL DRAFT For Discussion Purpose Only 62 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
e. On January 27, 2009, MPP, a subsidiary entered into a lease agreement with PT Papetra Perkasa Utama covering a store with floor area of 5,800 square meters in Blue Banter City, Manado. The lease period covers 11 years to start on the opening day of the store.
f. On February 24, 2009, MPP, a subsidiary entered into agreement with trustee and underwriters that will be involved in the offering of Third Matahari Bonds Year 2009 and Second Matahari Syariah Ijarah Sukuk Year 2009 totalling Rp 500,000 with detail as follows: Conventional Bonds Year 2009, Series A and Series B totalling Rp 300,000. Syariah Ijarah II, Series A and Series B totalling Rp 200,000.
On March 23, 2009, MPP, a subsidiary entered into an amendment of the agreement with trustee and underwriters designated in the offering of Third Matahari Bonds Year 2009 with Fixed Rates and Second Matahari Syariah Ijarah Bonds Year 2009 with fixed maximum ijarah fee of Rp 600,000 with detail as follows: Bonds with a total maximum amount of Rp 350,000 and interest rate at 16% per annum for Series A with 3 years period and 17% per annum for Series B with 5 years period. Syariah Ijarah with a total maximum of Rp 250,000 and fixed fee amounting to Rp 160 per annum for each Rp 1,000 Syariah Ijarah Fund Series A with 3 years period and Rp 170 per annum for each Rp 1,000 Syariah Ijarah Fund Series B with 5 years period.
g. On March 2, 2009, MPP, a subsidiary fully repaid its outstanding long term bank loan from HSBC amounting to Rp 150,000 (Note 19).
h. On March 24, 2009, MPP, a subsidiary entered into a cancellation of the rental agreement No. 138 dated September 25, 2008 and its amendment dated October 29, 2008 with PT Sitryco Riwani Jaya. Based on the cancellation agreement, MPP will receive the refund of all payments which were made by MPP amounting to Rp 197,716 within 30 days from the cancellation (Note 32).
i. On March 25, 2009, MPP, a subsidiary entered into a cancellation of the rental agreement No. 124 dated September 24, 2008 and its amendment dated October 27, 2008 with PT Inovasi Ragam Abadi. Based on the cancellation agreement, the Company will receive the refund of all payments which were made by the Company amounting to Rp 140,956 within 30 days from the cancellation (Note 32).
j. On March 27, 2009, MPP, a subsidiary entered into a cancellation of the rental agreement No. 117 dated September 19, 2008 and its amendment dated October 28, 2008 with PT Khatulistiwa Multipromo. Based on the cancellation agreement, MPP will receive the refund of all payments which were made by MPP amounting to Rp 196,600 within 30 days from the cancellation (Note 32).
k. During January 2009 up to March 27, 2009, MPP, a subsidiary, has made additional fund placement in PT Ciptadana Sekuritas amounting to Rp 200,000.
l. On March 27, 2009, the exchange rates (in full amounts) were Rp 11,495 to USD 1 and Rp 7,630 to SGD 1 while on December 31, 2008, the rates were Rp 10,950 to USD 1 and Rp 7,607 to SGD 1. On the basis of the rates on March 27, 2009, the Company and subsidiaries recognized foreign exchange loss amounting to approximately Rp 96,836 (not include the effects from derivative contract valuation) on its net foreign currency liabilities as of December 31, 2008.
FINAL DRAFT For Discussion Purpose Only 63 To be Finalized Friday, April 17, 2009 Agreed by : Date : These consolidated financial statements are originally issued in Indonesian language
PT MULTIPOLAR Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended December 31, 2008 and 2007 (In Million Rupiah and Thousand for foreign Currencies, Except Share Data)
37. Reclassification of Accounts
Certain accounts in the 2007 consolidated financial statements were reclassified to conform with the presentation of accounts in 2008 consolidated financial statements.
38. Management Responsibility on the Consolidated Financial Statements
The management of the Company is responsible for the preparation of the consolidated financial statements that were completed on March 27, 2009.
FINAL DRAFT For Discussion Purpose Only 64 To be Finalized Friday, April 17, 2009 Agreed by : Date :
Menara Matahari Lt. 16 Jl. Palem Raya Bulevar No. 7 Lippo Karawaci 1100 Tangerang 15811 Indonesia
Tel : (62 21) 546 0011, 55 777 000 Fax : (62 21) 546 0020, 546 3001 Email : [email protected] Website : www.multipolar.com