BOD Message

CHIEF FINANCIAL OFFICER MESSAGE

Financial Discussion

The swift growth of TRUST Group over the past few years have been fundamentally supported by bold but careful financial management. Even as TRUST Group revenues have grown, both organically and through injected funds and loans, TRUST Group has shifted away from being a purely asset-heavy company in the manner of a traditional shipping company. Rather, we have sought to distinguish ourselves by developing our human resources expertise to offer integrated solutions instead of being limited to only physical assets.

Overall, financial performance in 2013 and 2014 has been encouraging. Sales and profitability in 2013 and 2014 have expanded rapidly along with the balance sheet, thanks to funds injection from a Private Equity investor from Hong Kong which has tripled the available funding. The new capital has strengthened the capital base of the company, enabling the Group to realise its plan to enter into Marine Oil support business and bring more stability to its volatile Tug and Barge business which is sensitive to weather and seasonality, requiring more working capital during periods of unfriendly weather. For the OSV Marine Oil support business, heavy capital investment is also needed, amounting to hundreds of millions of dollars. To address this capital requirement, the Group is preparing to IPO in 2017 as well as raise quasi equity in the interim prior to IPO.

Besides bringing in more funds, the Private equity investor has also brought more professionalism in work ethics, transparancy and high quality reporting requrement. Revenue planning and controls are to be strengthened by introducing ERP and coordination meetings among departments/divisions so that processes and decision making can be streamlined to provide better response to the problem and challenges. In parallel, corporate compliance has been reinforced, with Internal Audit and Inventory Control, Corporate Legal and Integrated Corporate Finance all in place as part of the roadmap to IPO as planned.

Various strategic initiatives from Corporate Finance to sustain growth and profitability have been initiated and targeted to maintain our revenue at the same growth rate or even higher. Specifically, we are targeting CAGR of a minimum 70 % in NPAT and Revenue within 5 years prior our planned 2015-2016 IPO, when we hope to deliver multiples of value for investors as a leading marine company in Indonesia. At the same time, we continue to seek cost efficiencies where possible, and to seek financing on advantageous rates and terms, as well as diversifying the currency risk by renegotiating more sales contracts into USD-denominated contracts, while selectively allocating investment and capital expenditures to support the growing business. Cost control is important as the business challenges and competitions are getting more intense. Going forward, strengthening the balance sheet will be the main focus of the finance division going forward in line with the plan to go public in 2017.

Untoro Angkawijaya, Group Chief Financial Officer

Safety is our Attitude
We are Indonesian company
TRUST is 100% Indonesian company, headquartered in Jakarta with domestic and regional Operation in South East Asia
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