Financial Ratios, Risk and Return

CHAPTER I

INTRODUCTION

A. PT Ace Hardware Indonesia Tbk.

PT Ace Hardware Indonesia Tbk is a home improvement retailer. The Company is engaged in general trading including local and inter-island export and import for home improvement needs such as home and kitchen appliances, paint and sundries, tools, furnitures, household goods, hotel supplies, pet supplies and an assortment of electrical, lighting, gardening, outdoor living, plumbing, sanitary, hobby, sporting, automotive and building interior products. The Company also acts as a distributor and agent for household appliances and lifestyle products. The Company has 39 retail outlets located in Jakarta, Tangerang, Bekasi, Cirebon, Bandung, Semarang, Surabaya, Bali, Medan, Pekan Baru, Batam, Balikpapan and Makassar.

A recognized leader in the hardware and lifestyle retail business in indonesia, operating a network of sizeable modern stores, Ace Hardware Indonesia has served its consumer public with high-quality products for over a decade. It emerged from the founding in 1995 of PT Kawan Lama Home Center by Kawan Lama Group, with a pioneer outlet situated in Karawaci, Tangerang, West Java (opened in 1996). From this beginning the firm has expanded steadily and confidently, presently operating 39 retail stores in major urban centres across Indonesia.

AHI caters to a particular Indonesian cultural habit, namely, ‘Buy It Yourself" (B.I.Y.) where we supply attractive arrays of home improvement and lifestyle products, and customers buy what they need and hire skilled man to do the actual work on their homes.

The success of AHI in securing a reputation as a one-stop shopping centre for reliable high-quality hardware products is the result of our synergies in integration of all processes in securing and selling best-value products to our valued customers. Offering a wide array of merchandise, the latest and best in value-for-money, we pursue and sharpen efficiency in business from procurement and warehousing to distribution and marketing, thus enabling our firm to add value, in selling at realistic prices.

B. Corporate Vision

"We strive to become the leading retail company in Indonesia for hardware and lifestyle products."

C. Corporate Mission

"We aim to offer a wide-range of high-quality products at competitive prices, supported by the integrated service of a professional team."

D. Corporate Culture

Building upon long and productive success in the retail business, ACE Hardware Indonesia (also known as AHI) has founded a culture tailored to the needs of our personnel, our products and workplace and service