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Adira Finance Group.


PT. Adira Dinamika Multifinance, also known as Adira Finance was established in 1990 operating mainly in financing the purchases of automotive products. In the beginning it provided credits for the purchases of cars, but after the monetary crisis in 1997, Adira Finance changed its financing market by offering credits only for the purchases of motorcycles, the market of which began to boom and continued to grow fast after that year.

In 2003, Adira Finance resumed its old business offering financing service for car purchases.

In 2004, Adira Finance launched initial public offering (IPO) followed with the transfer of 75% of its shares from old shareholders to PT Bank Danamon Indonesia Tbk (Bank Danamon), a major private bank, now controlled by the Temasek Group, an investment company owned by the government of Singapore.

In 2009, Bank Danamon Tbk increased its control of Adira Finance by 20 percentage point valued at Rp1.4 trillion. Bank Danamon increased its control by acquiring the stake of Mega Value Profit.

With the new deal, Adira Finance is now 95% owned by Bank Danamon, 0.44% by PT. Asuransi Adira DInamika and 4.56% by other minority shareholders.

Adira Finance is the embryo of the Adira Group which has a number of subsidiaries operating mainly in financing business, investment business, motor vehicle sales, car rental, car repair shop and insurance sector.

Automotive financing

PT. Adira Dinamika Multifinance (Adira Finance)

Adira Finance is one of the country's largest financing companies offering financing service for the purchases of automotive products. By September 2009, Adira Finance had more than 15,000 workers serving more than 2.1 million clients in 8 marketing areas--the Greater Jakarta area, West Java, Central Java, East Java, Sumatra, Kalimantan, Sulawesi and Bali. Currently it operates 319 outlets spread all over Indonesia.

In June 2009, Adira Finance repaid bonds valued at Rp570 billion with internal fund. The bonds include Adira II bond issued in 2006 valued at Rp750 billion in three series--A,B and C. The series A was due in June 2009 and the series B valued at Rp90 billion maturing in June 2010 and series C valued at Rp90 billion maturing in June 2011.

In 2009, Adira planned to issue its third bonds Adira III valued at Rp500 billion in 2009 with a fixed coupon rate.

This year, Adira Finance sets its financing target at Rp20 trillion--up 37.9% from Rp14.5 trillion recorded in 2009.

Around 90% of its financing service is for the purchases of new motorcycles. Adira hopes to have a 20% share of the motorcycle financing market in 2010 up from 14%-15% last year.

Its financing share in the car market was only 5% in 2009 and this year it hopes to raise the share to 10%.

In 2009, Adira succeeded in listing 2 million new clients among the cars and motorcycle buyers.

In 2010, Adira Finance plans to spend Rp150 billion on business expansion opening more than 100 new outlets with target of 3 million--4 million new. The new outlet will bring the number of its outlets to 496 units this year.

Electronic financing

PT Adira Quantum Multifinance (AQM)

AQM operates in the financing of the purchases of electronic goods including television sets, refrigerators, ACs, washing machines, computer sets, etc. AQM is the market leader in the business in large cities in East Java such as Surabaya, Sidoarjo and Gresik. Currently it has around 15,000 clients using its financing service.

Until October 2009, AQM succeeded in offering financing service valued at Rp 1 trillion for the purchases of household electronic goods. Its financing target for the whole of 2009 was set at Rp1.3 trillion. Its capital spending that year was set at Rp 20 billion.

In 2010 AQM plans to open 100 new outlets in large cities and set financing target at Rp2 trillion this year. AQM has also cut its credit interest rate by 1.5-2 percentage points to follow a cut in bank interest rates.

General insurance

PT. Asuransi Adira Dinamika (Adira Insurance) was established in 2002 to operate in general insurance.

It offers insurance services of Autocillin Classic and sharia-based Autocillin Ikhlas for cars and Motorpo for motorcycles.

Adira Insurance also offers fire, money, transport service, heavy equipment and accident insurance services. Its car insurance business is supported by repair shops in various areas.

In 2008, Adira Insurance strengthened its distribution systems by establishing The Agency of Adira Insurance to recruit and trained new professional insurance agents.

By the end of 2009, Adira Insurance had more than 3.5 million policy holders served by more than 30 outlets all over Indonesia, on line with the head office. Currently Adira Insurance has 49 representative offices in 40 cities in Indonesia.

Car and Motorcycle Dealers

The group established PT. Asco Dinamika Mobilindo in 1989 to start operation in car sales. It was originally known as Adira Mobil, with the opening of its first car showroom at JI. Fatmawati, South Jakarta. The showroom is the dealer for Isuzu cars. In 2004, Adira Mobil was changed in name with Asco Automotive.

Currently Asco groups 4 companies selling different brands of cars. PT. Asco Dwi Mobilindo is the agent for Peugeot cars. PT. Asco Prima Mobilindo sells Daihatsu cars and PT. Asco Citra Mobilindo is the agent for Diesel Nissan cars. Asco also has repair shops.

In 2008, Asco and PT. Ovis Intenasional signed a cooperation agreement on membership card service. The card called Asco VIP is offered to customers buying cars from Asco's networks. The card holders are offered free crane service, cash back at Asco repair shops and special discount in all merchant networks of its partners

PT. Daya Adira Mustika (DAM)

Originally this company was named PD. Daya which was established in 1972 in Bandung, West Java. In 1984, the name of the company was changed with PT. Daya Adira Mustika. This company operates in the marketing of Honda motorcycles in West Java.

Currently DAM has two divisions Honda Sales Division, as the main official dealer of Honda motorcycles in West Java and Honda Parts and Service division, handling the establishment of Astra Honda Authorized Service Station (AHASS) and official procurement of and sales of Honda parts in West Java.

Car Rental

PT. Adi Sarana Armada

This company was established in 2003 with the name of Adira Rent to operate in business providing transport service. Currently Adira Rent is enjoying a fast growth operating more than 5,000 vehicles. It has networks of branches and service points all over the country.

Adira Rent offer car rental service under long term rent with or without drivers. Adira Rent also offers integrated logistic services such as Warehouse Management, Inventory Management, and Moving & Packing.

Financial performance

Despite the slump that hit car market in 2009, an increase was recorded in the financial performance of Adira Finance. In 2009, Adira Finance recorded Rp 3.941 trillion in income or an increase of 16.66% from the previous year's income of Rp 3,378 trillion. Consumer financing contributed Rp 2.777 trillion to the total income or an increase of 19.18% from Rp 2.330 trillion in 2008.

Its net profit rose 18.82% to Rp 1.212 trillion from Rp1.020 trillion.

Meanwhile its operating cost totaled Rp 2.282 trillion, up 16.48% from Rp 1.959 trillion. The increase in the operating costs was partly as a result of a rise in consumer financing, which increased 20.46% to Rp 949.821 billion from Rp 788.492 billion, and 11.78% increase in salaries and allowances to Rp 732.102 billion from Rp654.911 billion.

In 2009, new financing reached Rpl4.5 trillion, up 3.8% from 2008's Rpl4 trillion. The new financing in 2009 was for the purchases of 1.1 million units of motor vehicles. The financing in 2009 exceeded the target of Rp l2.5 trillion.

The share of Adira Finance in the new motorcycle financing market fell from around 13.6% in 2008 to 13.2% in 2009.
Summary of financial report of PT. Adira Dinamika Multifinance,

(Rp billion)

Description 2009 2008

Current assets 4,312 3,488
Non current assets 17 41
Total assets 4,329 3,592
Current liabilities 1,568 1,616
Other liabilities 109 26
Total liabilities 1,677 1,642
Minority interest -- --
Equities 2,652 1,950
Total equities and liabilities 4,329
Total income 3,941 3,378
Net profit 1,212 1,020

Source : Adira Finance
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Title Annotation:COMPANY PROFILE; PT. Adira Dinamika Multifinance
Comment:Adira Finance Group.(COMPANY PROFILE)(PT. Adira Dinamika Multifinance)
Publication:Indonesian Commercial Newsletter
Article Type:Company overview
Geographic Code:9INDO
Date:Mar 1, 2010
Previous Article:Development of motorcycle industry in Indonesia.
Next Article:Financing firms play greater role in expansion of motorcycle industry.

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