Below, Indonesia Investments provides details about the performance of United Tractors in the first half of 2013 by business segment:

Construction Machinery Segment

Net revenue of the company's Construction Machinery segment decreased by 40 percent to IDR 8.5 trillion and accounted for 34 percent of total consolidated revenue. The Komatsu sales volume reached 2,452 units or fell by 42 percent from 4,231 units in the previous year due to reduced demand from the mining and plantation sectors, which are affected by low commodity prices of coal and crude palm oil (CPO).

Out of the total Komatsu sales volume, the largest portion of sales went to the mining sector (48 percent), construction sector (23 percent), plantation sector (21 percent), with the remaining 8 percent to the forestry sector. In the midst of tight competition, Komatsu maintained its position as market leader with a market share of 41 percent (according to the company's internal market research).

In line with weaker demand for heavy equipment, revenue of spare parts and maintenance services was down to IDR 2.5 trillion, a fall of 18 percent. Sales of other products, such as UD Trucks decreased from 310 units to 287 units, while Scania trucks increased from 258 units to 263 units.

Mining Contracting Segment

PT Pamapersada Nusantara (Pama), United Tractor’s subsidiary in mining contracting, recorded net revenue of IDR 14.4 trillion and contributed 58 percent of total consolidated revenue, with an increased coal production volume from 44.5 million tons to 50.1 million tons and overburden removal from 407.3 million bcm to 414.5 million bcm.

Mining Segment

The Mining segment revenue, through PT Prima Multi Mineral and PT Tuah Turangga Agung, recorded a drop by 44 percent to IDR 2.0 trillion and accounted for 8 percent of total consolidated revenue. The decrease in revenue was due to the decrease in coal sales volume by 29 percent to 2.2 million tons and the lower average selling price of coal.

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United Tractors' Financial Highlights:

       2008      2009      2010      2011      2012
Net Revenue   27,903.2   29,241.9   37,323.9   55,052.6   55,953.9
Gross Profit    5,499.2    6,671.1    6,795.7   10,193.5   10,521.0
Profit before Tax    3,851.9    5,444.2    5,061.3    7,784.6    7,446.8
Net Income    2,660.7    3,817.5    3,872.9    5,900.9    5,779.7
Total Assets   22,847.7   24,404.8   29,700.9   46,440.1   50,300.6
Total Liabilities   22,847.7   24,404.8   29,700.9   46,440.1   50,300.6
Earnings per Share¹       884     1,147     1,164     1,657     1,549
Cash Dividend per Share¹       320       460       430       635       620
P/E Ratio (x)      4.98     13.51     20.45     15.90     12.72

in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: United Tractors, Annual Report 2012


Future Projection United Tractors' Financial Highlights:

        2011       2012      2013F      2014F      2015F
Net Revenue    55,052.6    55,953.9    51,334.0    63,689.0    73,532.0
Net Income     5,900.9     5,779.7     4,326.0     6,224.0     6,735.0
Earnings per Share¹      1,657      1,549      1,159      1,668      1,805
P/E Ratio (x)       15.9       12.7       14.7       10.2        9.5

in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Sources: JP Morgan Securities & United Tractors, Annual Report 2012

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