Page 60 - XL Axiata Integrated Anual Report 2020 ENG

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2020 Integrated Annual Report
MANAGEMENT DISCUSSION & ANALYSIS
Capital Structure Details (In Rp Billion)
Total Current Liabilities
Total Non Current Liabilities
Total Liabilities
21,293
22,311
43,603
18,857
29,750
48,607
19,137
67,745
33.95
35.57
69.51
30.49
100.00
27.84
43.91
71.75
28.25
100.00
Equity 19,122
Total Capital Invested 62,725
Notes:
Debt consists of both short-term and long-term portion of Loans, Sukuk Ijarah & Bonds Payable. Net Debt is Debt reduced by Cash and Cash equivalents.
Management Policy on Capital Structure
The objectives of the Company when managing capital are to safeguard the ability of the Company to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, including to maintain an optimal capital structure to minimise the effective cost of capital. This is reflected from gearing ratio, where the Company’s debt to equity ratio and debt to EBITDA ratio was respectively at 0.5x and 0.7x in 2020.
In order to maintain the capital structure, the Company may from time to time adjust the amount of dividends, issue new shares, and or increase/ reduce debt levels.
Material Commitments to Investment Expenditures
The Company had commitments related to various purchases for the network expansions totaling USD229.39 million or equivalent to Rp3.24 trillion.
Capital Expenditures Realization
The Company has used capital expenditures (CAPEX) of Rp6.16 trillion in 2020 or decreased by 23% from 2019 CAPEX of Rp7.99 trillion. Allocation of CAPEX for 2020 was mainly for network rollout, fiberization and preparation of 5G technologies adoption. The sources of funding for capital expenditures derived from internal cash, bank loans, and or sukuk/bonds.
Strategy, Targets & Realization In 2020
Innovative and prudent strategies during 2020 have enabled the Company to achieve certain targets in 2020. EBITDA margin reached 50% or exceeded the set target of above 30%. The following are targets and realization of the Company during 2020:
Financial Indicators
Revenue Growth
EBITDA Margin
Capital Expenditure
2021 Targets
Financial Indicators
Revenue Growth
EBITDA Margin
Capital Expenditure
Subsequent Events
Component Absolute Amount Porpotion
2019 2020 2019 2020
2020 Targets
In Line With The Industry
High 30s
Rp7.5 Trillion
2021 Targets
Inline with Market
Low 50%
Around Rp7.0 Trillion
There were no subsequent events during 2020.
Dividend and Dividend Policy
The current XL Axiata Dividend Policy is as approved by the Board of Commissioners through the Board of Commissioners’ Meeting No. 1/11
Realization
Above Market
Achieved
Rp6,195 Trillion
dated January 28, 2011 and has been informed to the Shareholders at the Annual General Meeting of Shareholders on April 14, 2011. XL Axiata shall distribute dividends to the Shareholder of at least 30% of net profit normalized in the previous year that aimed to progressively improve the payout ratio in the future. The dividend distribution also depends on the adequacy of the Company’s capital, financial conditions and other matters with due observance to the Board of Directors’ consideration as well as pursuant to the prevailing laws and regulations.
PT. XL AXIATA TBK TRANSFORM FASTER TO EMERGE STRONGER – GIVING BACK TO THE NATION