in IDR million Krakatau Steel Gunawan Dianjaya Steel

2008 (In USD) 2009 (In USD) 2010 (In USD) 2008 (In USD) 2009
Revenue 20631431 2411.623 16913535 1977.035 14856156 1736.547 3020530 353.0719 1641555
COGS 17915367 2094.14 15728146 1838.474 12621376 1475.322 2460755 287.6394 1829359
Groos Profit 2716064 317.4826 1185389 138.561 2234780 261.225 559775 65.4325 -187804
Operating Exp 1355676 158.4659 1159449 135.5288 1241851 145.1608 142573 16.66546 85622
Operating Inc 1360388 159.0167 25940 3.032145 992929 116.0642 142573 16.66546 -273426
Net Income 459571 53.71958 494672 57.82256 1062683 124.2178 83070 9.710111 -150055
EBIT 1536600 179.6143 413494 48.33361 1298480 151.7802 261010 30.50964 145676
0 0 0 0
Asset 15374427 1797.128 12795803 1495.71 17584059 2055.413 2092780 244.6265 970737
Debt 9934666 1161.27 6989965 817.062 8290144 969.0408 1919567 224.3795 496452
Equity 5439761 635.8575 5805838 678.6485 9293915 1086.372 173213 20.24699 474285
0 0 0 0
CFF -7468 -0.87294 -184001 -21.50801 2663432 311.3305 10 0.001169 -98851
CFO 607123 70.96704 883379 103.2588 848429 99.17347 213874 24.99988 -52402
CFI 203210 23.75336 -18216 -2.129281 -1028399 -120.2103 -90 -0.01052 -542

3 Yrs Avg (2008-Krakatau (In USD) Gunawan (In USD) Jaya Pari (In USD)
POSCOArcelor MilitalUS. Steel

Depreciation 353292 41.29655 29116 3.40339 933 0.109059 2215 4935 481
Interest Exp 360295 42.11514 40877 4.778141 802 0.093746 423 1930 174
Other Asset 256230 29.95091 6692 0.782233 74 0.00865 797 11299 279
Free Cash Flow -415816 -48.60503 110098 12.86943 60343 7.053536 2220 916 116

CFO/Net Sales KS GDS JPS POSCO Arcelor MitUS. Steel

2008 0.029427 0.070807 0.159539 0.089647 0.117276 0.069799
2009 0.052229 -0.031922 0.031783 0.233467 0.11178 -0.005521
2010 0.05711 -0.020463 0.114135 0.033389 0.051458 -0.021814
Average 0.046255 0.00614 0.101819 0.118835 0.093505 0.014154
Gunawan Dianjaya Steel Jaya Pari Steel POSCO
(In USD) 2010 (In USD) 2008 (In USD) 2009 (In USD) 2010 (In USD) 2008
191.8825 1710132 199.8985 732703 85.64617 302868 35.40245 427792 50.00491 33141
213.8351 1413251 165.1959 617319 72.15885 267460 31.26359 372059 43.49024 24048
-21.95254 296881 34.70263 115384 13.48732 35408 4.138866 55733 6.51467 9093
10.00842 90757 10.60865 17033 1.990999 15103 1.7654 17314 2.023846 3398
-31.96096 206124 24.09398 98351 11.49632 20305 2.373466 38419 4.490824 5695
-17.54004 171428 20.03834 49158 5.746113 1917 0.224079 28445 3.324956 3454
17.02817 211234 24.69129 92819 10.84968 21724 2.539334 41276 4.824781 5127
0 0 0 0 0
113.4701 1074570 125.6072 399344 46.6796 353951 41.37358 411282 48.07504 37284
58.03063 428856 50.12928 129633 15.15289 82262 9.615663 111148 12.99217 15321
55.43951 645713 75.47785 269711 31.52671 271689 31.75792 300134 35.08288 21963
0 0 0 0 0
-11.55476 0 0 0 0 2474
-6.125307 -34995 -4.09059 116895 13.66394 9626 1.12519 48826 5.707306 2971
-0.063355 -1336 -0.156166 -4676 -0.546581 -99900 -11.67738 -37220 -4.350672 -4607
POSCO Arcelor Mittal U.S Steel
2009 2010 2008 2009 2010 2008 2009 2010
31649 53430 124936 65110 78025 23754 11048 17374
24567 43035 100010 58019 66689 19723 11597 16259
7082 10395 24926 7091 11336 4031 -549 1115
3760 5339 12690 8769 7731 962 1135 1226
3322 5056 12236 -1678 3605 3069 -1684 -111
2764 3684 9399 118 2916 2112 -1401 -482
3702 5276 14053 -2741 3434 3176 -1686 -190

43206 59869 133088 127697 130904 16087 15422 15350

16663 29122 77890 66652 68474 11192 10746 11499
26543 30747 55198 61045 62430 4895 4676 3851

740 5004 -2132 -6347 -7 -305 938 335

7389 1784 14652 7278 4015 1658 -61 -379
-8344 -6071 12428 -2784 -3438 -1032 -374 -583
 Factor Score
Categories

Weighting
Sub-factor
Krakatau Steel

Weighted
Scoring

Rating
2008

2009

2010
Net Consolidated Sales (To
1 1.74 B 1 25% 0.25
day in Billion)

Size and Business 2 Operational Diversity

1
profile 3 Regional Diversity
5 A 4 10% 0.40
4 Import Threat/Export Reliant

1 Ebit Margin 6.2% Ba 2 10% 0.20

Return on Average Tangible

Operating 2 Assets (EBIT / Total Asset - 7.2% Baa 3 5% 0.15
Other Asset)
2 Performance and
Volantility

Volatility based on the

3 Coefficient of Variation of 31.9% A 4 10% 0.40
CFO/Net Sales 3 Y

Debt/Capital (Today Debt /

1 47.15% Baa 15% 0.45
Todey Debt+ Today Equity)
3 Financial Policies
Debt/EBITDA
2 5.85 Caa 0 10% 0.00
(3 y Averege)

Ebit/Interest
1 3.01 Ba 2 5% 0.10
(3 Y Average)

CFO-Div/Debt
4 Financial Strength 2 9.3% Caa 0 5% 0.00
(3 Y Average)

FCF/Debt
3 -4.9% Caa 0 5% 0.00
(3 Y Average)

Aggregate Weighted Fact. Score 100% 1.95

Total
Indicated Rating Ba2

Conclution
1. Based on Size and Business profile :
- KS has the highest score among its two local competitors, karena merupakan BUMN yang mendapatkan sumber d
- but KS still need to increase their revenue to match the three other international companies. Thus, KS have the op
- Difficulties may occur because of the exposure to steel demand for manufacturing and volatile material cost

2. Based on Operating Performance and Volantility :

- KS has well used the tangible asset and get bigest Return of Tangible Asset than other company.
- KS also get the good score in term managing the Volatility variation on CFO/net sale.

3. Based on the Financial Policies :

- Compared to local competitors, KS has the highest debt to equity ratio. the higher the debt to equity ratio, the mo
- Compared to local competitors, KS has the higst Debt/EBITDA ratio. This ratio measures a company's ability to pay
4. Based Financial Strength :
- Based on Financial Strength Ratio , it shows the capability of the company to service its debt. The six companies s
but KS show negative Free Cash Flow to Debt is a ratio. The company's stability will be affected if free cash flow is u

If the financial manager wants to see the condition of the Steel companies, JPS is the best Steel company compared

1. Asumsi KS sebagai the bigest valuable

dari Moodys Score

Kenapa milih KS, karena skala nya lbh besar daripada JPS,
 Factor Score

Factor Score
Categories

Categories

Categories
Sub-factor
Weighting

Weighting
Sub-factor
Gunawan Sianjaya Steel Jaya Pari Steel POSCO

Weighted

Weighted
Scoring

Scoring

Scoring
Rating

Rating

Rating
2008

2009

2010

2008

2009

2010

2008

2009

2010
0.20 Caa 0 25% 0.00 0.05 Caa 0 25% 0.00 53.43 Aaa 6

3 Baa 3 10% 0.30 2 Ba 2 10% 0.20 7 Aa 5

9.7% Baa 3 10% 0.30 10.6% Baa 3 10% 0.30 11.9% Baa 3

15.0% Aa 5 5% 0.25 13.4% A 4 5% 0.20 10.2% A 4

916.8% Caa 0 10% 0.00 63.6% Ba 2 10% 0.20 86.8% B 1

39.9% A 4 15% 0.60 27.0% Aa 5 15% 0.75 48.6% Baa 3

4.03 B 1 10% 0.10 2.04 Baa 3 10% 0.30 2.94 Baa 3

5.04 Baa 3 5% 0.15 64.76 Aaa 6 5% 0.30 11.12 Aa 5

4.4% Caa 0 5% 0.00 54.3% Aa 5 5% 0.25 19.9% Ba 2

11.6% Baa 3 5% 0.15 56.0% Aaa 6 5% 0.30 10.9% Baa 3

Aggregate Weighted Fact. Score 100% 1.85 Aggregate Weighted Fact. Score 1 2.8 Aggregate Weighted Fact. Score
Indicated Rating Ba2 Indicated Rating Baa3 Indicated Rating

0.64
0.52

g mendapatkan sumber daya / modal dari pemerintah yang lebih pasti

nies. Thus, KS have the opportunity to compete developing their operational and increasing export commodities
olatile material cost

bt to equity ratio, the more risky the company is. This is because the higher the ratio, the more the company is financed by debt rather th
a company's ability to pay off its incurred debt. A high ratio result could indicate a company has a too-heavy debt load.
debt. The six companies showed a fairly good ratio value.
ected if free cash flow is used to pay debts within one year

Steel company compared with two others companies by Aggregate Weighted Fact. Meanwhile, if he compared the 6 companies, POSCO
 Factor Score

Factor Score

Factor Score
Categories

Categories
Sub-factor
Weighting

Weighting

Weighting
Sub-factor

Sub-factor
Arcerol Mittal US Steel
Weighted

Weighted

Weighted
Scoring

Scoring
Rating

Rating
2008

2009

2010

2008

2009

2010
25% 1.50 78.025 Aaa 6 25% 1.50 17.4 A 4 25% 1.00

10% 0.50 7 Aa 5 10% 0.50 6 A 4 10% 0.40

10% 0.30 5.5% Ba 2 10% 0.20 2.49% B 1 10% 0.10

5% 0.20 4.1% Ba 2 5% 0.10 2.8% Ba 2 5% 0.10

10% 0.10 39.1% A 4 10% 0.40 345.3% Caa 0 10% 0.00

15% 0.45 52.3% Ba 2 15% 0.30 74.9% Ba 2 15% 0.30

10% 0.30 7.21 Caa 0 10% 0.00 12.19 Caa 0 10% 0.00

5% 0.25 2.55 Ba 2 5% 0.10 2.49 B 1 5% 0.05

5% 0.10 12.2% B 1 5% 0.05 3.6% Caa 0 5% 0.00

5% 0.15 1.3% B 1 5% 0.05 1.0% B 1 5% 0.05

100% 3.9 Aggregate Weighted Fact. Score 1 3.2 Aggregate Weighted Fact. Score 100% 2.00

d Rating A2 Indicated Rating Baa2 Indicated Rating Ba2

nanced by debt rather than equity, which means a higher obligation to pay debt and a greater risk of loan foreclosure if debt is not repaid
he 6 companies, POSCO has the bigest score Aggregate Weighted Fact
osure if debt is not repaid on time.