ANNUAL REPORT AND INTERPRETATION
PT. BETONJAYA MANUNGGAL TBK
Lecturer :
Hajanirina Andrianantenaina, B.Sc.,B.A., M.M
Arranged by :
Muhajir (014201900162)
FACULTY OF BUSINESS
MANAGEMENT BUSINESS INTERNATIONAL
PRESIDENT UNIVERSITY
2020
Contents
PT. BETONJAYA MANUNGGAL TBK..............................................................................................................1
Contents......................................................................................................................................................2
Company Profile..................................................................................................................................3
Annual Report......................................................................................................................................4
Performance Highlights 2018..............................................................................................................4
Financial Highlights..............................................................................................................................5
Share Price Fluctuation........................................................................................................................7
THE COMPANY’S PERFORMANCE IN 2018...........................................................................................8
STRATEGIES AND STRATEGIC POLICY...................................................................................................8
COMPARISON BETWEEN THE ACHIEVED RESULTS WITH TARGET DETERMINATION...........................8
CORPORATE GOVERNANCE IMPLEMENTATION..................................................................................9
Business Strategy.................................................................................................................................9
PRODUCTION CAPACITY....................................................................................................................10
CORPORATE SOCIAL RESPONSIBILITY................................................................................................10
HUMAN RESOURCES..........................................................................................................................10
Organization Chart.............................................................................................................................11
CURRENT ASSETS...............................................................................................................................11
NON-CURRENT ASSETS......................................................................................................................11
Board of Commissioners’ Profile.......................................................................................................13
Board of Directors’ Profile.................................................................................................................14
CORPORATE GOVERNANCE...............................................................................................................15
Code of Ethics.......................................................................................................................................15
Award & Certification........................................................................................................................17
Financial Ratio Analysis......................................................................................................................18
Vertical Analysis.................................................................................................................................21
Horizontal Analysis............................................................................................................................22
SUMMARY OF FINANCIAL STATEMENT.............................................................................................23
CONCLUSION.....................................................................................................................................24
Reference..........................................................................................................................................25
Appendix............................................................................................................................................26
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PT BetonJaya Manunggal Tbk
2018
Company Profile
PT Betonjaya Manunggal, Tbk. (BJM) was established on February 27, 1995 based on a Notarial
Deed No. 116 by Suyati Subadi, S.H. in Gresik. The deed was approved by the decision letter of
Minister of Justice of the Republic of Indonesia No. C2-10.173.HT.01.01.th.95 dated August 16,
1995 and was published in the State Gazette No.18 dated March 1, 1996. The Articles of
Association have been amended several times. The latest amendment was made before Notarial
Deed Dian Silviyana Khusnarini, S.H. No. 16 dated November 24, 2015, regarding the
adjustment of the articles of association to Financial Services Authority (OJK) regulation. This
amendment has been notified and approved by the Minister of Justice and Human Rights No.
AHU-AH.01.03-0987707 dated December 14, 2015, and has been announced in the Supplement
to the State Report No. 11 dated 9 February 2016. In accordance with the Articles of
Association, the Company’s scopes of activities are primarily compromising iron and steel
industry. The Company started its commercial operations in May 1996 and currently engages in
6-12 mm round bar industry with total installed capacity amounted to 45,000 tons of raw
material/waste plate of per year.
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Annual Report
Performance Highlights 2018
The consistency of the growth of the Company’s achievement is a concrete manifestation of hard
work and strong commitment results in the Company. The Company always strives to optimize
all of the Company’s resources and to utilize various business opportunities selectively to
support sustainable growth in the future.
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Financial Highlights
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Share Price Fluctuation
STOCK SPLIT IMPLEMENTATION The EGM held on June 2, 2016 has agreed upon an
implementation of stock split with 1:4 ratio and a nominal of Rp100 per share into Rp25 per
share, thus the present share amount is 720.000.000 shares. The stock trading in Indonesia Stock
Exchange under the new nominal was implemented on August 1, 2016 in Regular Market and
August 4, 2016 in Cash Market.
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THE COMPANY’S PERFORMANCE IN 2018
At the time when global economic conditions were uncertain due to the United States and
China’s trade wars. As known, in 2018 the two countries made an economic barrier by imposing
higher tariffs on export products from both countries so that production goods from each other
would be difficult to enter. This certainly had an impact which triggered world’s economic
weakening. Even so, Indonesia’s economic growth continued to experience growth, reaching
5.17%.
In line with Indonesia’s growing economy, the Company recorded a significant increase in
performance. The Company closed 2018 with satisfying business performance. Netincome
reached Rp27.8 billion in 2018 while in 2017 it was Rp11.3 billion, with net-sales of Rp117.4
billion for 2018 increased from 2017 which was only Rp88 billion.
STRATEGIES AND STRATEGIC POLICY
The strategies for running a business in 2018 included the implementation of flexibility in selling
prices, quantity, timeliness of goods delivery, and conservative policies, especially those related
to financial management which resulted in the Company’s better operational and financial
performance compared to 2017, for that this strategy was made as the strategic policy by
management in running its business in 2019.
COMPARISON BETWEEN THE ACHIEVED RESULTS WITH TARGET
DETERMINATION
In the midst of tight and tend to be disruptive competition, the Company was able to achieve
sales exceeded the target set. The Company’s sales in 2018 increased by 33.5% compared to
2017 or 33.5% higher than the determined target. While the net income achieved in 2018 was
23.7% of net sales with an expected target of 5% of net sales. This value exceeded the
determined target of 18.6%. The achievement was mainly due to an increase in the average
selling price of concrete iron by 29.2% compared to 2017, and the average increase in raw
material prices by 28.8%
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The Company’s achievement did not mean without constraints. During 2018, the Company faced
challenges in production which certainly affected work productivity. The limited source of
efficient raw materials for the Company’s machinery is still the main obstacle faced by the
Company. While this raw material is 100% obtained from affiliated companies. Raw materials
produced/rolled in 2018 was 13,593 tons or 30% of the Company’s normal production machine
capacity and in 2017 was 11,843 tons. In addition, there are many similar producers in the
Company’s work area’s vicinity which make competition becomes tighter. Through accurate
business strategies which supported by the Company’s resources optimization, it was the right
measures in facing the current competitive climate.
CORPORATE GOVERNANCE IMPLEMENTATION
The Board of Directors believes that Corporate Governance (GCG) implementation is essential
for a company’s success in increasing values for stakeholders. Therefore, the Company is
committed to implementing GCG in accordance with prevailing standards and regulations in
Indonesia. Through proper GCG implementation, the Company has the capital to win the
competition. That’s why GCG implementation is always conducted in every line of work and at
every level.
Business Strategy
The Company strives to improve performance and drive sustainable growth by implementing
business strategy, among others:
• Expanding the existing market share by approaching and presenting products to distributors
and new steel stores.
• Ensuring product quality, on time distribution, and flexibility in order quantity.
• Maintaining a good relation with customers including distributors, hardwares stores, and end
users.
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PRODUCTION CAPACITY
The installed capacity of the Company production machines in 2018 is 45,000 tons of waste plate
per year. Utilization of production in 2018 with 13,593 tons of waste plate, an increase compared
to 2017 which reached 11,843 tons, up by 14.8% and 100% of its materials supplied from PT.
Gunawan Dianjaya Steel Tbk. (company affiliation). During 2018 and 2017 purchases of total
materials each amounting to 17,479 tons and 17,473 tons. The raw materials from PT Gunawan
Dianjaya Steel, Tbk. is the most efficient raw material for the Company’s machinery, and
management is yet to find alternative materials.
CORPORATE SOCIAL RESPONSIBILITY
The implementation of the Company's social responsibility to maintain a balance between
internal interests and the interests of the general public is demonstrated by sustainable synergy.
For social and environmental management, the Company conducts UPL-UKL; ISO 9001: 2008
certification and SNI standard certification.
HUMAN RESOURCES
Qualified Human Resources is the main asset to the Company’s success. Therefore, the
Company provides opportunities to the employees to enroll in socializations, seminars, and
trainings. In 2018, the Company has enrolled some of its employees to several trainings,
socialization and workshop programs which organizes by private or governmental institutions,
among others: 1. Taxation and PSAK seminars 2. Financial Service Authorization Socialization
3. ISO 90001:2015 audit development 4. Seminars regarding First Aid, Tensile test calibration,
Crane and genset operators certifications.
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Organization Chart
CURRENT ASSETS
Current assets in 2018 amounted to Rp176 billion, whereas in 2017 amounted to Rp138.1 billion,
up by Rp37.9 billion or 27.4%. This was mainly due to 2018 profit which resulted in cash and
cash equivalent account, account receivables and inventory.
NON-CURRENT ASSETS
Non-current assets in 2018 amounted to Rp41.2 billion. Whereas in 2017 amounted to Rp45.3
billion, decreased by Rp4.1 billion or 9%. This was mainly due to a decrease in investment
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account in association entity (the loss of association entity) and the imposition of fixed
investment depreciation.
TOTAL ASSETS
Total assets in 2018 amounted to Rp217.3 billion while in 2017 amounted to Rp183.5 billion,
increased by Rp33.8 billion or 18.4%. The increase in total assets mainly occurred in current
assets at estimated cash and cash equivalent account, account receivables and inventory.
CURRENT LIABILITIES
Current liabilities in 2018 amounted to Rp30.4 billion while in 2017 amounted to Rp25.2 billion,
increased by Rp5.2 billion or 20.6%. This was mainly due to the increase in the account payables
to related parties. This trade payables was a debt related to the materials purchase as well as an
increase in debt of income tax.
NON-CURRENT LIABILITY
Non-current liabilities in 2018 amounted to Rp3.78 billion, while in 2017 amounted to Rp3.62
billion, increased by Rp160.9 million or 4.4%. This non-current liabilities was only an estimate
of liabilities for employee benefits and not funded.
TOTAL LIABILITY
Total liabilities in 2018 amounted to Rp34.2 billion, while in 2017 amounted to Rp28.8 billion,
increased by Rp5.4 billion or 18.7%. This was mainly due to increasing current liabilities. See
explanation on Current Liabilities.
EQUITY
The Company equity in 2018 amounted to Rp183.1 billion, while in 2017 it was Rp154.6 billion,
an increase of Rp28.5 billion or 18.4%. This was mainly due to comprehensive profit in 2018
amounting to Rp28.5 billion.
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Board of Commissioners’ Profile
Indonesian citizens. Born in Surabaya, December 13,
1969 (age 49). Appointed as President Commissioner
based on Notarial Deed Dian Silviyana Khusnarini,
S.H. No. 54 dated June 26, 2014 for a term of 5 years
since June 26, 2014. He also serves as Director of
International Trade of PT Gunawan Dianjaya Steel,
Tbk. (since 1992), Managing Director of PT Jaya Pari
Steel, Tbk. (since 2016), and Director of Production
and International Trade of PT Jaya Pari Steel, Tbk.
(since 1992 - June 2016). Previously served as
Director of PT Betonjaya Manunggal, Tbk. (1998-
2001). He completed his last education at Stamford
Colleges, Singapore (1990). The President
Commissioner of the Company is the sibling of the
President Director of the Company, the biological
child of the Company's Major Shareholders / controlling Company, and has no affiliation with
other members of the Board of Commissioners and Directors.
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Board of Directors’ Profile
An Indonesian citizen. Born in Surabaya, September 10, 1964
(age 54). Appointed as President Director based on the
Notarial Deed of Dian Silviyana Khusnarini, SH. No. 54
dated June 26, 2014 for 5 years period office term since June
26, 2014. He served as President Director of PT Jaya Pari
Steel, Tbk. (1997-December 1999), Director of PT Jaya Pari
Steel, Tbk. (2000-June 2015) and as Commissioner of PT
Jaya Pari Steel Tbk. (since June 2015) and also Director of
PT Gunawan Dianjaya Steel, Tbk. (since 1992). Previously,
he served as Finance Director of PT Gunawan Dianjaya Steel,
Tbk. (1989-1992). He is the sibling of President
Commissioner, biological child of the Company’s
principal/controlling Shareholder And has no affiliation with
the other Board of Commissioners and Directors members.
With the increasing infrastructure and housing development needed by public in Indonesia,
especially in the eastern region, which is supported by the Government and private parties, which
in turn will also increase the demand for iron concrete to support various projects. That is why
the Board of Commissioners has confidence in the future business prospects of the Company will
continue to grow. To achieve sustainable growth, the Board of Directors needs to continue
efforts to strengthen management and internal capabilities, optimize various resources and
always be aware of changes in the domestic and global business climate, and be careful in
conducting business analysis.
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CORPORATE GOVERNANCE
Code of Ethics
BJM is highly committed to a code of ethics that governs corporate and individual
behavior.
The Company's code of ethics adheres to Labor Law No. 13 of 2003 and Law No. 10 of 2007
concerning Limited Liability Companies, and the implementation of good corporate governance.
The Company's Code of Ethics aims to develop good behavior in accordance with ethical
standards for the Company, the Board of Commissioners, Directors and all employees.
AUDIT COMMITTEE
To support the smooth supervision activities, the Board of Commissioners established an Audit
Committee. The Audit Committee is responsible for supervising the Company's financial
reporting process, monitoring and evaluating the audit process by external auditors.
In addition, the Audit Committee is also tasked with reviewing the financial information to be
reported by the Company, reviewing the Company's compliance with laws and regulations,
reporting to the Commissioner on the Company's risks and how to anticipate them, and
maintaining the confidentiality of documents containing Company information or data.
Audit Committee Composition
Chairman of the Audit Committee / Independent Commissioner
Dr. Bambang Hariadi, M.Ec., Ak.
Audit Committee Member
Rahmat Zuhdi, S.E., MSA., Ak
Isomuddin, S.E.
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The duties and responsibilities of the Audit Committee include:
I. Periodic evaluations and reviews of the Company's operational performance and financial
information, and the Company's compliance with laws and regulations that directly relate
to the Company's activities.
II. Evaluate the independence and objectivity of the External Auditor and ensure that the
presentation of the Company's Financial Statements is in accordance with the applicable
standards in Indonesia.
III. Evaluation and study of plans, programs and work results of the internal supervisory unit
to be more effective to be carried out in accordance with the situation and conditions of
the Company.
IV. Provide input to the Board of Directors on the effectiveness of the Company's operational
implementation.
Violation Reporting System
The reporting system if violations occur is always endeavored to use the philosophy of "stick and
carrots" or "praise and sanctions" and adjusted to the severity of violations. To reduce the
occurrence of violations, the Company always prioritizes coaching and avoids the possibility of
slander that will interfere with the climate of cooperation within the Company.
The purpose of reporting, sanctions and praise is direct authority to and from the Director in
charge of it.
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Award & Certification
2015:
Charter awards for achievements in implementing the K3 Program without work accidents.
Renewal of ISO 9001: 2008 certificates until April 1, 2018.
The award charter has implemented the K3 Management System until 2018.
2016:
Received the Zero Accident Award dated May 16, 2016 from the Ministry of Manpower of the
Republic of Indonesia.
BJM is engaged in the production of plain concrete iron in the size of 6 mm to 12 mm. The main
advantage of this company's products is the quality of the national standard.
BJM products are widely applied for building construction, both high-rise buildings and simple
houses.
Spesifikasi Produk Kelas Baja
SNI 07 - 0065 -
BJR 24
2002
SNI 07 - 0408 -
BJR 30
1989
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Spesifikasi Produk Kelas Baja
SNI 07 - 0371 -
1998
SNI 07 - 0410 -
1989
JIS 3117 -87
Quality control
All BJM products have gone through a series of quality control processes in accordance with
national standards, as evidenced by the achievement of the 2009 Business Indonesia Award and
Product Certification for Using the Indonesian National Standard (SPPT SNI).
Financial Ratio Analysis
Financial ratio analysis is done by:
1. Express the mathematical relationship between one amount and another
2. Relationship between one post with another post
3. Useful, if it has meaning
4. Give a way out and draw symptoms
5. Show the areas that need to be studied and studied more deeply
6. Disclose relationships and be the basis of comparison
The types of ratio analysis in a financial statement include the following:
1. Liquidity Ratio
2. Solvency Ratio
3. Profitability Ratio
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4. Activity Ratio
5. Coverage Ratio
Regarding the financial ratio formulas used in this report and their respective functions will be
explained in the next Section.
Current Ratio
The ratio used to measure a company's ability to pay its short-term liabilities using
current assets.
Current Ratio = (Current Assets) / (Current Liabilities)
Current Ratio = Current Assets
Current Debt
Current Ratio = Rp.223,000,000
IDR 45,000,000
= 5.15
That is, every Rp. 1 current debt is guaranteed with Rp. 5.15 current assets
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Quick Ratio
The ratio used to measure a company's ability to pay its short-term liabilities by using
more liquid assets.
Quick ratio = Current Assets - Inventory
Current Debt
= Rp.22,000,000 - Rp.75,000,000
IDR 45,000,000
= Rp. 157,000,000
IDR 45,000,000
= 3.48
Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / (Current Liabilities)
This means that the company's ability to meet its current liabilities with assets is every
IDR 1 current debt with IDR 3.48 liquid current assets.
Cash Ratio
Ratios used to measure a company's ability to pay short-term liabilities with cash
available and held in a bank.
Cash Ratio = (Cash and Marketable Securities) / (Current Liabilities)
Cash ratio = Cash + Bank / Current Debt
= IDR 50,000,000 / IDR 45,000,000
= 1.1
This means that the company's ability to meet its current liabilities with cash is every IDR
1 current debt with IDR 1.1 cash of the company.
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Vertical Analysis, comparing each item in the current period with the total amount in
the same report can be useful to highlight a significant relationship in the financial
statements. Vertical analysis is a term used to describe such comparisons. In a vertical
analysis of the balance sheet, each item of assets is stated as a percent of total assets.
Each item of liability and owner's equity is stated as a percent of total liabilities and
owner's equity. In a vertical analysis of the income statement, each item is stated as a
percent of total income. Vertical analysis can also be applied for several periods to
highlight changes in relationships over time. The table above shows both good and
unfavorable trends that affect the income statement of PT. BetonJaya Manunggal, Tbk. A
decrease in selling expenses by 0.22 was a bad trend, as was a decrease in general and
administrative expenses by 7.59%. A good trend is the decrease in other expenses by
0.05%.
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Analysis of the various percentages shown for PT. ConcreteJaya Manunggal, can be
strengthened by comparing it to the industry averages published by trade associations and
financial information services. Every major difference with the industry average must be
traced to the company's progress going forward.
Horizontal Analysis is an analysis by comparing financial statements for several
periods or moments so that their progress will be known. In conducting a horizontal
analysis, all of the current year's financial statement accounts are compared with the same
account in the previous period. Increase or decrease in the number of posts is calculated
as a percentage increase or decrease. In comparing reports from two different periods,
earlier financial statements are always used as the basis of calculations for horizontal
analysis. For example, the following shows a horizontal analysis of the financial
statements of PT. BetonJaya Manunggal which shows good and bad trends that affect the
company's income statement.
In the horizontal analysis above, a decrease in sales revenue is a bad trend,
as well as a decrease in equipment load. A bad trend is an increase in selling expenses,
general and administrative expenses, and others. This expense increased faster than sales
revenue. The amount of increase (decrease) of various accounts of the financial
statements and the causes must be traced further to find out whether the company's
operations can still be improved efficiency. For example, one of them is the increase in
utility load due to the addition of production capacity than before so that it requires a load
of electricity greater than. This explains an increase in utility expenses by 38.9% and an
increase in wage expenses by 33.3% due to the addition of employees. Likewise with the
increase in income, the increase in income comes from the results of additional sales that
occurred in the current period. So, the decision to add the employee is a very appropriate
decision. The example above provides a description of the use of horizontal analysis in
interpreting and analyzing financial statements. The horizontal analysis shown above can
also be used for analysis on the balance sheet, owner's equity statement, and cash flow
statement.
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SUMMARY OF FINANCIAL STATEMENT
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CONCLUSION
The sale of steel products by PT Betonjaya Manunggal Tbk (BTM) as a subsidiary of PT
Gunawan Dianjaya Steel Tbk (GDS) in 2018 also experienced an increase like its parent.
Companies engaged in the steel industry for the domestic retail market, especially this housing
project, are still optimistic that it will continue to increase in 2019 despite the political party
going on that year.
The company, which is on the stock exchange with the BTON code, in 2018 has recorded
revenue from sales of Rp 97.2 billion until the end of October 2018. That value has increased
from the target until the end of 2018 which reached Rp 88 billion.In a vertical analysis of the
income statement, each item is stated as a percent of total income. Vertical analysis can also be
applied for several periods to highlight changes in relationships over time. The table above
shows both good and unfavorable trends that affect the income statement of PT. BetonJaya
Manunggal, Tbk. A decrease in selling expenses by 0.22 was a bad trend, as was a decrease in
general and administrative expenses by 7.59%. A good trend is the decrease in other expenses by
0.05%.
One of them is the increase in utility load due to the addition of production capacity than before
that it requires a greater than. This explains an increase in utility expenses by 38.9% and an
increase in wage expenses by 33.3% due to the addition of employees. Likewise with the
increase in income, the increase in income comes from the results of additional sales that
occurred in the current period. So, the decision to add the employee is a very appropriate
decision.
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Reference
https://www.bjm.co.id/downloads/financial/BTON_LapKeu31122018.pdf
https://id.scribd.com/document/411931226/Analisis-Vertikal-Dan-Horizon
http://www.bjm.co.id/en/download/annual/Annual%20Report%202018/
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Appendix
Annual reports and accounts can be quite lengthy. Those for a relatively small plc, for example,
can easily stretch to 50 pages while those for a large international plc may go well beyond 150
pages. So for shareholders there is an awful lot to read. In addition, much of the content is
complex, highly technical and full of jargon. The section is usually confined to the first few
pages of the document (including sometimes the use of the inside page of the front cover). The
information provided will probably tell you something about the company: what it does, where it
has done it and how it was done, i.e. its history, location and a summary of its financial results.
Most companies usually give a brief financial summary of the group’s performance for the year
as part of the introductory section. This usually takes up no more than one page. Often it is a
combination of numbers and graphs. Many companies take the opportunity of promoting the
company’s products in their annual report and accounts. This makes sound business sense.
Shareholders are also consumers and if there are thousands of them, the company might as well
encourage them to buy its products. Most company chairmen like to include a report or statement
of their own in the annual report. There are no statutory, FRC/IASB or Stock Exchange
requirements for chairmen to publish a report so the format and content will vary from company
to company.
So for shareholders there is an awful lot to read. In addition, much of the content is complex,
highly technical and full of jargon. Most companies usually give a brief financial summary of the
group’s performance for the year as part of the introductory section. Many companies take the
opportunity of promoting the company’s products in their annual report and accounts.
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