PT ANTAM (Persero) Tbk · IDX:ANTM
PT ANTAM (Persero) Tbk — PT Antam — CLSA Corporate Access Conference Singapore (May 2008)
37 slides from PT ANTAM (Persero) Tbk's conference presentation, May 2008
Slide 1: Poised For Growth
Poised For Growth PT Antam Tbk An Overview of Performance and Outlook May 2008
Slide 2: Disclaimer
Disclaimer • We are not in a position to advise you, we are not advising you you, and the contents of this presentation must not be construed as any advice to you, on (a) whether to purchase any of our securities or, (b) if you hold an investment in our securities, the value of your investment or ho
Slide 3: Our Key Message
Our Key Message • We are poised for growth and with large reserves and resources and good partnerships, partnerships we will create substantial value in the years to come. • We W h have a strong t g and d strengthening t gth i g fifinancial i l structure, healthy cash flows and a large project pipel
Slide 4: What is Antam?
Rapat Pimpinan What is Antam?2007
Slide 5: Got Three Minutes? Consider:
Got Three Minutes? Consider: • Diversified. Vertically-Integrated. Indonesian. Experienced. • Gold. Nickel. Bauxite. A great mix. • Large quality reserves and resources. • Low cost operations. p • Unique position to lower costs. • Industry-beating margins and returns. returns • Possible ferronickel
Slide 6: How Antam Makes Its Money
How Antam Makes Its Money • Profitably exploring, discovering, excavating, processing and refining mineral deposits and then selling them around the world as we have been doing for four decades – locate and add to our vast reserves and resources – develop those deposits with a view to extracting max
Slide 7: How Antam Makes Its Money
How Antam Makes Its Money DIVERSE PRODUCT MIX EXPORT ORIENTED* 41% 1% 9% RPS, 79 3pinion 48% RP4, 769 eaon Ferronickel . Nickel Ore Eastern Euro Gold Bauxite Silver RP 1 30oa00 Japan China
Slide 8: Our Strategy
Our Strategy • We will create maximum shareholder value by: y – diversify horizontally into other commodities where suitable – focus on those commodities we know best, which are nickel, gold and bauxite. – diversify through an active exploration program and through strategic acquisitions – maintain
Slide 9: Vertically-Integrated, Diversified
Vertically--Integrated, Diversified Vertically CGA Tayan Project Mornopo (Bauxite) (Nickel Ore) Gee Geomin (Nickel Ore) (Exploration Unit) Pomalaa (Ferronickel and Tanjung Buli Kijang Nickel Ore) (Nickel Ore) (Bauxite) Pearl FeNi IV Logam Mulia Project (Precious Metals (Nickel) Refinery and Pearl Pr
Slide 10: Minority Joint Ventures – Blue Sky
Minority Joint Ventures – Blue Sky PT Dairi Prima Minerals PT Pelsart Tambang Kencana (Base Metals) 20% (Gold) 15% PT Gorontalo PT Nusa Halmahera PT Galuh Cempaka Minerals Minerals (Diamond) 20% (Gold) 20% (Gold) 17.5% PT Sorikmas Mining (G ld) 25% (Gold) PT Cibaliung PT Straits PT Sumbawa PT Weda B
Slide 11: What it All Boils Down to: Our Large Resources and Reserves
What it All Boils Down to: Our Large R Resources and dR Reserves
Slide 12: Quarterly Income
Quarterly Income (Rp Billi (R Billion)) 3000 2386 2500 2092 2000 1425 1500 937 1000 600 1073 675 566 563 402 500 218 222 148 92 147 196 131 0 62 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 Sales Operating Profit Net Profit * FY07 results are unaudited
Slide 13: Significant and Consistent Annual Income and Margin Growth
Significant and Consistent Annual Income and Margin Growth (Rp Billi (R Billion)) 14000 12008 12000 10000 8000 6796 5629 6000 5132 4000 3251 2859 2139 2404 1771 2000 1097 1100 247 448 227 810 1553 0 177 842 2002 2003 2004 2005 2006 2007 Sales Operating Profit Net Profit * FY07 results are unaudited
Slide 14: First Quarter 08 Performance
First Quarter 08 Performance Comparison Description 1Q07 1Q08 (%) Sales 2 386 2,386 2 092 2,092 -12 12 COGS 884 1,061 20 Operating p g Income 1,425 937 -34 34 Net Income 1,073 675 -37 Net Margin g 45% 32% -29 Assets 8,178 12,004 47 Cash , 2,095 4,568 , 118 Total LT Debt 891 685 -23 Long Term Debt /
Slide 15: Solid Annual Performance
Solid Annual Performance Comparison Description 2006 2007 (%) Sales 5 629 5,629 12 008 12,008 113% COGS 2,888 4,795 66% Operating p g Income 2,404 6,796 183% Net Income 1,553 5,132 230% Net Margin g 28% 43% 54% Assets 7,291 12,038 75% Cash , 1,194 4,744 , 297% Total LT Debt 1,070 700 -35% Long Term
Slide 16: FeNi III – Holding Stable
FeNi III – Holding Stable ● FeNi III is currently running at 32MW ● Rather than a complete redesign we seek to optimalize the design we have ● The repairs were covered under warranty. ● Big leap in size and new cooling system require time to get used to ● However, no bells or alarms went off at time
Slide 17: Low Cost Operations – except FeNi
Low Cost Operations – except FeNi
Slide 18: Low Cost Operations – except FeNi
Low Cost Operations – except FeNi 2007 Nickel Industry Cost Curve (2007$) 14.0 12 0 12.0 PT Aneka - Pomaala 10.0 8.0 C1 Cash Cost ($/lb Ni) P 60 6.0 4.0 2.0 0.0 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 3000 -2.0 -4.0 -6.0 Production (kt Ni) Copyright Brook Hunt 2008
Slide 19: Historical Antam
Rapat Pimpinan Historical Antam2007
Slide 20: Industry Beating Margins and Returns
Industry dust y Beating eat g Margins a g sa and d Returns etu s Antam’s net profit margin was 43% in full year 2007 Source: PWC mineIndonesia 2006
Slide 21: Vs Peers: Historical ROE Better
Vs Peers: Historical ROE Better
Slide 22: Vs Peers: Historical ROE Better
Vs Peers: Historical ROE Better
Slide 23: Vs Peers: Historical ROE Better
Vs Peers: Historical ROE Better
Slide 24: Vs Peers: Historical ROE Better
Vs Peers: Historical ROE Better
Slide 25: Future Antam
Rapat FuturePimpinan Antam 2007
Slide 26: Production and Sales Outlook
Production and Sales Outlook • In order to maintain safety and prevent further leakages, Antam currently operates the smelter at 30-32 megawatts. • Antam targets 2008 production of 17,000 tonnes of nickel contained in ferronickel. • In 2008, depending on demand from China, Antam expects t nickel i k
Slide 27: Sources of Future Growth
Sources of Future Growth 1 - Indonesia Chemical Alumina (ICA) – (Antam 49%, with an option to increase ownership) ● 300,000 tonnes per annum of CGA27 ● Location: Tayan, y , West Kalimantan ● +US$350 million ● ICA established in February 2007 ● To maximize value of large bauxite reserves ● Attractive
Slide 28: Sources of Future Growth
Sources of Future Growth 3– High content NCPI/Stainless Steel with Tsingshan (Antam 49%) ● First phase to produce high content NCPI using electric arc furnace. Second phase to produce stainless steel. ● US$350 million ● JVA signed in October 2007 ● Location: Obi, North Maluku ● Current progress: BFS
Slide 29: Sources of Future Growth
Sources of Future Growth 6–SGA Mempawah with Hangzhou (Antam 55%) ● 1,000,000 tpa of Smelter Grade Alumina ● US$800-US1 billion ● Location: West Kalimantan ● Current progress: JVA, Feasibility studies 7– SGA Munggu Pasir with Rusal (Antam 49%) ● 1,200,000 1 200 000 tpa of Smelter Grade Alumina ● US$
Slide 30: Sources of Future Growth
Sources of Future Growth 8. Acquisition of Herald Resources/PT Dairi Prima (lead/zinc): ● Antam/Zhongjin made takeover bid made for Herald, A$2.50 per share on January 29, 2008 ● Higher valuation then other bid justified due to introduction of experienced partner, Zhongjin ● Zhongjin, at its mine in
Slide 31: Energy Conversion
Energy Conversion Mornopo, Tg Buli, Gee Kalimantan Lake Poso Tangguh Pomalaa Sengkang ENERGY CONVERSION ALTERNATIVES: 1 1. C l Coal Pre feasibility study completed on Target: use of SPLC (Smart Predictive Line Control) technology to reduce load Decision by 2008 and fluctuation. conversion by 201
Slide 32: The Big Picture
Rapat Pimpinan The Big Picture 2007
Slide 33: Big Picture Items:
Big Picture Items: ● Regulatory and Investment Climate Improving ● Cautious Optimism ● Mining Law – will it or won’t it get passed. ● Possible upside for Antam as well as Industry ● Debate ongoing regarding the “transition transition period period” of 3-5 3 5 years after law is passed ● Ore Exports
Slide 34: Commodities Outlook: Nickel and Gold
Commodities Outlook: Nickel and Gold Nickel Supply vs. Consumption Commodity Price Outlook 2007 2008E 2009E 2010E Nickel (US$/lb) 16.9 14.8 12.0 7.5 Gold (US$/toz) 684 750 800 820 Source: Brookhunt, Citigroup Source: Brookhunt, Antam’s Annual Report 2006 Nickel: Supply side remains tight with unde
Slide 35: The Point
Rapat Pimpinan 2007 The Point
Slide 36: Our Key Message
Our Key Message • We are poised for growth and with large reserves and resources and good partnerships, partnerships we will create substantial value in the years to come. • We W h have a strong t g and d strengthening t gth i g fifinancial i l structure, healthy cash flows and a large project pipel
Slide 37: Thank You Any Question ?
Thank You Any Question ? Visit our website: www.antam.com
PT Antam — CLSA Corporate Access Conference Singapore (May 2008) on 6ix