Multistrada Arah Sarana Tbk

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RUPSLB MASA Approves PUT Plan II

19 Desember 2011

Jakarta, December 19, 2011 - PT Multistrada Arah Sarana Tbk (MASA), the issuer of the fastest growing tire approved by the shareholders at the EGM to conduct a Limited Public Offering (LPO) II with the issuance of Pre-emptive rights Rp 1,53 trillion. The results of rights issue funds will be used for business expansion.

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MASA allocated Rp 673.42 billion or 44% of rights issue to fund the purchase of machinery and equipment to manufacture automobile tires and motorcycle tires, including the construction of the building as support facilities. Worth Rp 397.93 billion or by 26% will be used for expansion of cultivation and processing of plantation forest industry, including the cultivation and processing of rubber. While the value of Rp 459.15 billion, or 30% will be used for working capital of the company, such as purchasing raw materials, spare parts and other operational costs.

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"MASA is aggressively targeting growth in the coming years, in 2012 we are targeting revenue growth of 50% and 2013 we project the range of 20-30%. We will push global sales to capitalize on surging demand for larger high-quality tires at competitive prices. "Said Pieter Tanuri, President Director of PT Multistrada Arah Sarana, Tbk.

Pieter further added, "Management is currently assessing the right time to do a 'PUT'. Moreover, as of 15 November 2011 MASA has entered the list of stocks leading stocks Morgan Stanley Composite Index (MSCI) for small caps, so it will attract foreign and local investors in the stock market".

Any old shareholders whose names are recorded in the Register of Shareholders on December 29, 2011 at 16:00 pm by holding two shares of the company will obtain a pre-emptive rights that entitle the holder to buy as many new shares at a price of Rp 500. The Company will offer a total of 3.06 billion shares in a rights issue.

Currently the Company has a production capacity of automobile tires knowledge to reach 7 million units, while motorcycle tire capacity has reached 4.7 million units. At the end of 2011 targeted annual production capacity will reach 8.7 million units for car tires and 5.6 million units for motorcycle tires.

With the funds the Company's rights issue will also be pursuing a strategy of vertical integration with upstream business expansion into the tire, through the cultivation of rubber plantation and rubber processing plant to supply the raw materials company tires.
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"The opportunity to expand their business into the upstream conveyor, ranging from development to management of plantation rubber processing factory, is a rare opportunity", explains Pieter. "The strategy of production capacity and expansion into the upstream business by using the proceeds of rights issue to shore up growth in the Company's performance in the long run and ensure availability of quality supply to ensure the quality of end product tire company," says Managing Director Pieter Tanuri Multistrada.
 
Currently Multistrada has mastered the land area of ​​33,000 hectares of plantation land in Kalimantan through the Company's subsidiary, Multistrada Agro. In the first 2 to 3 years the Company will do the planting of 5,000 hectares of plantation.
 
In addition to developing the natural rubber plantations, the Company will also build a rubber processing factory with an investment of US$ 10 million. Processing plant with a capacity of 24,000 tons will be able to meet the needs of production reached 10 million-15 million units of car tires per year. Until now all the natural rubber supply needs required by the Company is still supplied by local suppliers.
 
"By having the upstream business to sustain the production of automobile tires and motorcycle tires, the Company will have an integrated business from upstream to downstream which provides growth performance as well as the creation of long-term efficiency for the Company," he continued.

In the nine months of 2011, the Company prints the value of sales reached Rp 2.08 trillion, growing at a solid 36.51% compared to same period last year. Operating income of Rp 203.02 billion, or grew 16.64%. While the net profit reached Rp 136.25 billion, up 18.51% compared with same period in 2010.

Globally, the Multistrada is one of tire manufacturers who recorded the fastest growth over the period 2006 to 2010. Company sales grew to a 37% compounded annual growth rate (CAGR) from 2006 to 2010. Company's sales growth was the highest compared to the global tire producers and local record growth of between minus 1% to an increase of 25% CAGR 2006-2010.
 
Multsitrada sales include local market and international market. Company's international markets, including Europe, the United States, Australia, and Asia Pacific countries, until to the Middle East countries. [yus]

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