Corporate Report 2016
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CORPORATE REPORT 2016 Building Greater Impact and Sharing Growth 2 Building Greater Impact and Sharing Growth PT Wijaya Karya (Persero) Tbk. Building Greater Impact and Sharing Growth We make greater impact. Build commitment to contribute to the success of government programs, especially in infrastructure developments, in line with the Company's core business in construction. 4.08 NEW CONTRACT in billion US$ 1.88 GROWTH 2015-2016 117.13% 2015 2016 1.17 NET SALES 1.01 in billion US$ GROWTH 2015-2016 15.04% 2015 2016 0.93 EQUITY in billion US$ 0.40 GROWTH 2015-2016 129.84% 2015 2016 Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 3 Building Greater Impact and Sharing Growth 4 PT Wijaya Karya (Persero) Tbk. Merah Putih Bridge Merah Putih Bridge, cable bridge columns constructed by a Consortium led by WIKA. Located in the city of Ambon, Maluku province, Indonesia. This bridge spans Ambon Island Bay, and connects the villages of Rumah Tiga (Poka) in Sirimau District on the north side, and the village of Desa Hative Kecil/Galala on the south side of Ambon Bay. This bridge is the longest bridge in eastern Indonesia, be part of the overall layout of Ambon City and will become an icon for the city of Ambon. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 5 Building Greater Impact and Sharing Growth 6 PT Wijaya Karya (Persero) Tbk. FINANCIAL HIGHLIGHTS WIKA and Subsidiaries Consolidated Statement of Financial Position as of December 31, 2016 Description 2012 2013 2014 2015 2016 Financial Position (in million US$) Total Assets 820.24 937.40 1,184.07 1,458.95 2,314.42 Total Liabilities 609.29 697.23 821.11 1,054.21 1,384.18 Total Equity 193.09 219.48 362.96 404.74 930.24 Result of Operations (in million US$) Net Sales 737.21 884.54 927.60 1,013.70 1,166.18 Operating Income 64.75 90.50 104.31 112.68 154.73 Net Income 38.95 46.47 55.36 52.32 85.38 Income Attributable to Parent Entity Owner 35.43 42.42 45.26 46.52 75.31 Income Attributable to Non Controlling Interest 3.52 4.05 10.09 5.80 10.07 Description 2012 2013 2014 2015 2016 Financial indicator Return on Equity (%) 18.35 19.33 15.64 14.29 8.91 Cash Ratio (%) 23.28 27.15 27.14 24.16 63.47 Debt to Equity Ratio (%) 3.16 3.18 2.84 3.24 1.64 Operating Income Margin (%) 8.78 10.23 11.24 11.12 13.27 Collection Period (days) 50 45 57 75 64 Earning per Share (iDr/share) 77.96 92.84 99.06 101.81 158.64 Number of Employees (persons) 1,619 1,809 1,912 2,069 2,187 ASSETS LIABILITY EQUITY 930.24 2,314.42 1,384.18 1,054.21 1,458.95 821.11 1,184.07 697.23 362.96 404.74 937.40 609.29 820.24 219.48 193.09 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 CAGR CAGR CAGR 2012-2016 29.61% 2012-2016 22.77% 2012-2016 48.15% in million US$ in million US$ in million US$ Stock Price Movements and Volume Graphic 4.500 120.000.000 4.000 100.000.000 3.500 3.000 80.000.000 2.500 60.000.000 2.000 1.500 40.000.000 1.000 20.000.000 500 0 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Income Attributable Equity Order Book New Contract Assets Total sales Net sales to Parent Entity Owner 2015 404.74 3,611.43 1,877.18 1,458.95 1,272.39 46.52 1,013.70 2016 930.24 6,198.99 4,075.88 2,314.42 1,487.05 75.31 1,166.18 Growth 129.84% 71.65% 117.13% 58.64% 16.87% 61.88% 15.04% NET SALES NET INCOME EARNING PER SHARE 1,166.18 85.38 158.64 1,013.70 927.60 884.54 101.81 55.36 737.21 52.32 46.47 99.06 38.95 92.84 77.96 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 CAGR CAGR CAGR 2012-2016 12.15% 2012-2016 21.68% 2012-2016 19.44% in million US$ in million US$ in Rupiah Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 7 Building Greater Impact and Sharing Growth 8 PT Wijaya Karya (Persero) Tbk. PROJECTS PROGRESS SEMANGGI FLYOVER AUTOMATED PEOPLE MOVER SYSTEM PASALLORENG DAM MASS RAPID TRANSIT PROJECTS PROGRESS DEPO LIGHT RAIL TRANSIT VELODROME UNDerpaSS MANDAI MAKASSAR BANGKINANG BRIDGE Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 9 Building Greater Impact and Sharing Growth 10 PT Wijaya Karya (Persero) Tbk. TABLE OF CONTENT 06 Financial Highlights 08 Projects Progress 10 Table of Content 14 Company Overview 16 Operational Review Per Business Line 20 Operation Area 24 Message From President Director 26 Vision, Mission, Core Values, And Strategy 30 Wika's Competitiveness 32 Corporate History 36 Business Pillars 37 Business Portfolio 40 Human Capital 44 Good Corporate Governance 50 Risk Mangement 56 Corporate Social Responsibility 66 Awards & Certification 72 Board of Director Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 11 Building Greater Impact and Sharing Growth 12 PT Wijaya Karya (Persero) Tbk. Semanggi Interchange Project Jakarta City icon being constructed by WIKA using precast segmental technology, with the longest curved length being 80M, using a progressive cantilever erection method used for the first time in Indonesia. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 13 Building Greater Impact and Sharing Growth 14 PT Wijaya Karya (Persero) Tbk. COMPANY OVERVIEW PT WIJAYA KARYA (PERSERO) Tbk Indonesia’s Leading Integrated EPC & Investment Company Head Office WIKA TOWER Jl. D.I. Panjaitan Kav. 10 Jakarta 13340, Indonesia T. +62 21 819 2808 Directors are optimistic to able F. +62 21 819 1235 E. [email protected] to increase better performance www.wika.co.id sustained by experience and participation in various strategic infrastructure projects under the Government of Indonesia’s agenda. Bintang Perbowo, SE, MM President Director BE A LEADER Starting a business as an electrical fitter that grew into an EPC (Engineering, Procurement, Construction) and Experienced in working any kind of foreign projects Investment Company in many sectors such as power spread around North Africa (Aljazair, Libya), Middle plants, tollroads, ports and bridges, and transportation East (Dubai-UEA, Jeddah-Arab Saudi), South East Asia industries. WIKA has Capable to transform into a (Malaysia, Timor Leste, Myanmar, Brunei Darussalam) business group with various business pillars, to develop and will continue to expand to other countries through subsidiaries, departments or associated companies development design of Project Management Services of which focus to develop certain types of businesses. (PMS). WIKA is capable to execute civil construction with However, it still integrates each other through vertical design and build method. It is executed starting from integration strategy (backward-forward integration). project planning to construction process. WIKA has a strong leadership and capable to select the Experienced in business realty and property right peoples to realize future business direction. Wika development, both as contractor and developer. grows as a Pioneer in the precast concrete industry's Recently, WIKA is entered in TOD (Transit Oriented first development in the country, marked by precast Development) business, one of the city concrete plant being constructing in regions throughout developer adapted spatial mix and maximizing the the archipelago in the late 1970s. Now continues to use of mass transit, such as Bus Rapid Transit (BRT), grow with 11 concrete plants, 3 quarry, 1 concrete Commuter Line, Mass Rapit Transit (MRT), Light Rail mobile plant with a production capacity of 2.84 million Transit (LRT), Automated People Movers (APM). WIKA ton/year, always producing a variety of precast concrete have Inovation and development of intangible assets; products, including being a pioneer for major projects knowledge management (KMWIKA), Management (railroad pillow tracks, poles, power poles, box girders, System of WIKA (ISO 9001, ISO 14001, ISO 31000, MRT tunnel spans, shunts, etc.). OHSAS 18001, Security System Management) and the integrated Information System of WIKA. WIKA is always the first in the latest technology construction and unit business expansion (Mass Rapid Transit, Oil and Gas, Smelter and Power Plant WIKA 2016 Technology). WIKA is also the First mover in expanding its operation to foreign countries and continuously Global economy in 2016 showed an improvement develops Engineering Procurement and Construction though not yet fully recovered, indicated amongst (EPC), investing and developing infrastructure projects others by the fluctuation of world oil and other several especially for government projects corresponding with commodities prices which indirectly affects the global State and Regional State Budget. economy. WIKA was able to record an excellent financial performance amidst the a full year of pressure in 2016. Several financial indicators that could be stated amongst others the Company's profit and loss performance, financial position performance and key financial ratios. Corporate Report 2016 | PT Wijaya Karya (Persero) Tbk. 15 Building Greater Impact and Sharing Growth 16 PT Wijaya Karya (Persero) Tbk. Operational REView PER BUSINESS LINE INFRASTRUCTURE AND BUILDING SEGMENT This segment consists of general civil construction services Graph Net Income from line of business covering facilities and infrastructure such infrastructure and building as roads, bridges, docks, airports, dams, irrigation and building. The infrastructure and building segment provides an excellent result. 25.38 Infrastructure and Building segment was successfully 17.88 obtained US$2,950.90 million of new contract during 2016, up by 107.83% compared to 2015’s achievement of US$1,419.85 million.