In accordance with the provisions of the Company’s Articles of Association, PT Indah Kiat Pulp & Paper Tbk held an Annual General Meeting of Shareholders (AGMS) and an Extraordinary General Meeting of Shareholders (EGM) on August 25, 2020 at the Grand Hyatt Hotel, Jl.MH. Thamrin No.Kav 28-30, Jakarta, where the following decisions were made:
- Approval of the Yearly Report of the Board of Directors and the Supervisory Report of the Board of Commissioners for the financial year that ended on December 31, 2019, as well as approval and ratification of the Company’s Consolidated Financial Statement for the financial year that ended on December 31, 2019, which were audited by Independent Public Accountant Y. Santosa & Rekan, as well as the granting of full release of responsibility to members of the Board of Directors and Board of Commissioners for their actions and management and supervision that were conducted in the 2019 financial year (Acquit et de charge).
- As stated in the Company's Consolidated Financial Statements for the year ending in December 31, 2019, net profit attributable to the owners of the parent company was US $ 274.4 million, or profit per share that can be attributed to the owner of the parent entity was US $ 0.05015. The total net earnings were used for:
- US $ 1,000,000 (one million United States dollars) or the equivalent of Rp. 14,653,000,000 (fourteen billion six hundred and fifty-three million rupiah) at the middle rate of Bank Indonesia on July 31, 2020 to be designated as a reserve in order to comply with the provisions of article 70 of Limited Liability Company Law number 40 of 2007 which will be used in accordance with Article 28 of the Company's Articles of Association.
- Rp 273,549,147,050 (two hundred seventy-three billion five hundred and forty-nine million one hundred and forty-seven thousand and fifty rupiah) or the equivalent of US $ 18,691,434.71 (eighteen million six hundred and ninety-one thousand four hundred and thirty four point seventy-one United States dollars) at the middle rate of Bank Indonesia on July 31, 2020 to be distributed as cash dividends to shareholders of the Company, or cash dividends per share of Rp 50 (fifty rupiah).
- The remaining net profit after tax will be included as retained earnings.
- Power and/or authority was granted to the Board of Directors of the Company to further regulate the procedures for the payment of cash dividends. Dividend payments will be made within the time stipulated in Article 58 of OJK Regulation No.15 / POJK.04 / 2020 with due observance of tax provisions, Indonesian Stock Exchange regulations and other applicable capital market regulations.
- Approved the granting of authority to the Board of Commissioners of the Company to appoint an Independent Public Accountant to audit the Company's books for the 2020 financial year, as well as the granting of authority to the Board of Directors of the Company to determine the honorarium for the Independent Public Accountant to be appointed.
- a. Approved the granting of authority to the Board of Commissioners of the Company to determine the amount of salary, honorarium and/or allowances for members of the Company's Board of Directors for the 2020 financial year and;
b. Approved the granting of authority to the Company’s Board of Commissioners to determine the amount of salary, honorarium and/or allowances for each member of the Board of Commissioners of the Company for the 2020 financial year, at least the same as that received in 2019, with reference to the recommendations of the Nomination and Remuneration Committee.
- Agreed to cancel the fifth meeting agenda, which concerned changes in the composition of the members of the Board of Commissioners and the Board of Directors of the Company.
- At the AGMS, the Board of Directors also submitted an accountability report on the realization of the use of the proceeds from the Public Offering of the Sustainable Bond I of Indah Kiat Pulp & Paper Phase I 2020.
Approved changes to article (s) in the Company's Articles of Association, which among other things involves adjusting the provisions of POJK Number 15 / POJK.04 / 2020 concerning Plans and Implementation of General Meetings of Shareholders of Public Companies and POJK Number 16 / POJK.04 / 2020 concerning the Implementation of General Meetings of Shareholders of Public Companies Electronically and other related regulations.
The Company explained that the Company's consolidated net sales decreased from US $ 3,335.4 million in 2018 to US $ 3,223.2 million in 2019, a drop of 3.4%. The consolidated operating profit decreased from US $ 894.0 million in 2018 to US $ 560.4 million in 2019, a fall of 37.3%. The Company's consolidated net profit decreased from US $ 588.2 million in 2018 to US $ 274.4 million in 2019, down by 53.4%.
For the 6-month period which ended on 30 June 2020, the Company's consolidated net sales were US $ 1,484.1 million, a decrease of 5.7% compared to those in the 6-month period ending 30 June 2019 which amounted to US $ 1,574.7. Meanwhile, consolidated net profit for the 6-month period ending 30 June 2020 was US $ 203.2 million, an increase of 38.4% compared to that in the 6-month period ending 30 June 2019 which amounted to US $ 146.8 million.