Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q2 2020 Earnings Presentation
30 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Aug 13, 2020
Slide 1: 2Q20 results
2Q20 results Investor and analyst update 13th August 2020
Slide 2: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 2
Slide 3: Economies Opens Up, COVID-19 Continues to Spread
Economies Opens Up, COVID-19 Continues to Spread EUROPE – REOPENING BORDERS ▪ Travel restrictions begin to relax as lockdown Show sign of recovery CHINA – SIGNS OF RECOVERY measures are cautiously lifted and core business activities are allowed to resume. Muted recovery ▪ According to IMF tracks, Ch
Slide 4: ITM: Navigating through COVID-19
ITM: Navigating through COVID-19 Discipline cost control Strong cash position to Smooth operations Overall cost expectation to be lower by support inorganic expansion with safety measures in place and US$ 8/t vs FY19 coming from lower Strong cash amid current coal price no major disruption at mine s
Slide 5: COVID-19: ITM continued support to the community
COVID-19: ITM continued support to the community SUPPORT & DONATION PROTECTION & PREVENTION EDUCATION & LIFESTYLE ITM distributed donation and support ITM provided (PPE) to health personnel ITM educate importance of sanitation • Basic foodstuff and food package distribution • Mask, Hazmat suits, goo
Slide 6: Annual General Meeting of Shareholders 2020
Annual General Meeting of Shareholders 2020 AGMS 2020 HIGHLIGHTS BOARD OF COMMISIONERS Prof. Djisman Simandjuntak Somruedee Chaimongkol Somsak Sithinamsuwan Kirana Limpaphayom President Commissioner & Commissioner Commissioner Commissioner Independent Prof. Djoko Wintoro, PhD Mahyudin Lubis Fredi Ch
Slide 7: Highlights of 2Q20 and 1H20 results
Highlights of 2Q20 and 1H20 results Coal sales Coal sales 5.3 Mt 11.1 Mt Down 0.4 Mt Down 1.2 Mt -8% Q-Q -10% Y-Y Unit: US$ million 2Q20 1Q20 Q-Q 1H20 1H19 y-y Total Revenue 287 366 -22% 653 893 -27% Gross Profit Margin 11% 17% -6% 14% 18% -4% EBIT 4 33 -87% 38 96 -61% EBITDA 24 56 -57% 79 127 -37%
Slide 8: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 8
Slide 9: Operational Summary 2020
Operational Summary 2020 2020 TARGET: 19 - 20.1 Mt* OUTPUT TREND East Unit: Mt Kalimantan 6.7 Indominco 5.6 8.9 Mt 5.3 5.1 4.5 Jorong 4.4 Kitadin Trubaindo Bunyut Port Bharinto 4.3 Mt Trubaindo Kitadin – Samarinda Embalut Bharinto 1.6 Mt Indominco Balikpapan 2.6 - 3.7 Mt East Kalimantan 2Q19 3Q19 4Q
Slide 10: Indominco Mandiri
Indominco Mandiri SCHEMATIC OUTPUT TREND 2020 target: 8.9 Mt Operations Unit: Mt Ports Hauling 3.1 Stockpile West Block 0.4 2.5 ROM Crusher 2.2 2.2 stockpile Mine 0.5 stockyard 0.7 0.8 W Block East Block 2.7 2.0 1.5 1.4 E. Block Bontang City 35Km 2Q19 1Q20 2Q20 3Q20e Sea conveyor Avg.S/R 11.7x 10.1x
Slide 11: Melak group – Trubaindo and Bharinto
Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND 2020 target: TCM 4.3 Mt Unit: Mt Mahakam BEK 2.6 - 3.7 Mt River Bunyut 2.2 Port 1.8 Product coal 1.5 1.6 East Kalimantan conveyor, stacking, 1.3 Trubaindo stockpile 1.1 1.0 1.0 40km Mine to port 0.7 0.6 0.9 Bharinto Operations 0.5 Barge Por
Slide 12: Kitadin Embalut and Tandung Mayang
Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND Unit: Mt 2020 target: EMB 1.6 Mt TD. Mayang 0.4 0.4 Bontang 0.3 city IMM WB IMM EB 0.2 ROM Bontang stockpile Port Embalut 5km Mine to port 2Q19 1Q20 2Q20 3Q20e Embalut Port S/R (bcm/t) - Embalut : 10.1x 16.4x 10.8x 10.9x Mahakam Samarinda Riv
Slide 13: Jorong
Jorong SCHEMATIC OUTPUT TREND 2020 target: 1.4 – 1.6 Mt Unit: Mt Pelaihari 0.4 0.3 0.3 0.2 Haul road 20km 2Q19 1Q20 2Q20 3Q20e S/R (bcm/t) : 8.1x 11.3x 6.2x 6.9x Jorong COMMENTS COMMENTS Coal Operations terminal ▪ 2Q20 production slightly lower target as mine site experiencing Barge Port Java Sea he
Slide 14: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONALREVIEW REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 14
Slide 15: Global thermal coal market trends
Global thermal coal market trends GLOBAL COAL DEMAND & SUPPLY CHANGE GLOBAL COAL DEMAND TRENDS Unit: Mt SUPPLY DEMAND Lockdowns around the globe ended in May and global power demand continues to improve. Recovery has been tepid and spotty. ▪ China: Economic recovery, strong hydro, improving domestic
Slide 16: ITM coal sales 6M20
ITM coal sales 6M20 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 6M20 Vietnam 1% Malaysia 1% Others 1% Taiwan 2% India 4% Bangladesh 4% 3.2 Mt 2.4 2.6 Mt 0.5 Mt China Korea 28% S KOREA 5% JAPAN Thailand CHINA 7% 0.4 Mt BANGLADESH Phillippines 0.2 Mt 7% 0.4 Mt 0.7 Mt TAIWAN 0.8 Mt INDIA THAILAND 0.
Slide 17: Indicative coal sales 2020
Indicative coal sales 2020 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Uncontracted Unsold 13% 13% Indexed 20% 67% 87% Fixed Contracted TARGET SALES 2020: 22.0 Mt 17
Slide 18: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/ton Monthly NEX ▪ NEX has been trading at mid US$50s through most of 150 200 2Q20, dropping from mid US$60s in 1Q20. 150 ▪ COVID 19 spread through China caused interruption in 100 130 Monthly 50 domestic coal pr
Slide 19: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONALREVIEW REVIEW 33 COMMERCIAL REVIEW 424 FINANCIALREVIEW FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 19
Slide 20: Sales revenue
Sales revenue 893 -27% (YoY) Unit: US$ million -22% (QoQ) -35% (YoY) 104 Others 44 Others -46% (QoQ); 42 653 -13% (YoY) 453 -30% (YoY) Jorong Jorong 151 91 -22% (YoY) 46 366 -20% (QoQ); 34 Kitadin 23 -34% (YoY) 33 -21% (YoY) 27 59 Kitadin Bharinto 19 287 231 130 75 11 +103% (QoQ); -14% (YoY) 32 -17%
Slide 21: Average gross margin
Average gross margin Avg. 1H19: 18% Unit : US$ Million Revenue Avg. 1H20: 14% GPM (%) 440 215 366 287 155 140 120 114 99 75 79 51 15 22 23 19 15 11 16% 19% 17% 8% 9% 15% 16% 14% 24% 17% 11% 12% 38% 3% 14% 6% -1% 3% 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 2Q19 1Q20
Slide 22: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Unit: Bcm/t Avg. 1H19: 12.4 Unit: US$/t Avg. 1H19: $54.2/t Avg. 1H20: 10.7 Avg. 1H20: $46.9/t 51.7 50.6 11.6 10.7 10.8 41.0 41.9 43.1 Non-Coal 9.5 9.3 48.5 45.6 39.4 41.8 Coal 37.5 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 FUEL PRICE
Slide 23: EBITDA
EBITDA Unit: US$ million 127 13 -37% (YoY) -57% (QoQ) -56% (YoY) 54 56 0 13 Kitadin 6 -77% (YoY) 13 79 Bharinto 13 Kitadin 0 -78% (YoY) +785% (QoQ) 6 13 -69% (YoY) 12 24 Bharinto 13 Trubaindo -84% (QoQ) 4 -92% (YoY) -57% (YoY) 12 1 Other 30 5 Trubaindo Jorong -58% (QoQ) 15 30 Indominco Kitadin 15 13
Slide 24: Net income
Net income 2Q19 NET INCOME 1Q20 NET INCOME Other: • FX Gain/(Loss) (USD/IDR) $1.4 M Other: • Derivative Gain/(Loss) (commodities) $1.9M • FX Gain/(Loss) (USD/IDR) $(6.7)M 54 • Other gain $0.7M 56 • Derivative Gain/(Loss) (commodities) $1.6M • Other gain $16.3M (15) (22) 1 4 (14) 0 (11) 30 (30) 14 EB
Slide 25: Balance sheet
Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) 374 368 328 Net D/E (times) 268 208 159 (32%) (36%) (39%) (38%) (17%) (21%) (0.32) (0.36) (0.39) (0.38) (0.17) (0.21) 2016 2016 2017 2018 2019 2Q20 2015 2016 2017 2018 2019 2Q20 DEBT POSITION Unit: US$ million 11 0 0 0 0 0 2015
Slide 26: 6M20 Capital expenditure realization
6M20 Capital expenditure realization Units: US$ million 2.0 Indominco 4.4 1.8 Trubaindo Realized up to Jun 2020 15.6 2020 Capex plan 2.8 Bharinto 9.5 3.1 TRUST 18.7 11.0 ITM Consolidated 49.9 Note: Total capex plan including Jakarta office after elimination 26
Slide 27: Nit
Nit
Slide 28: Income statement
Income statement Unit: US$ thousand 1H20 1H19 YoY% Net Sales 652,628 892,701 -27% Gross Profit 93,989 162,401 -42% GPM 14% 18% SG&A (56,311) (66,315) EBIT 37,678 96,086 -61% EBIT Margin 6% 11% EBITDA 79,268 126,717 -37% EBITDA Margin 12% 14% Net Interest Income / (Expenses) (193) 2,917 n.m FX Gain /
Slide 29: Income statement
Income statement Unit: US$ thousand 2Q20 1Q20 QoQ% Net Sales 286,725 365,903 -22% Gross Profit 30,329 63,660 -52% GPM 11% 17% SG&A (26,112) (30,199) EBIT 4,217 33,461 -87% EBIT Margin 1% 9% EBITDA 23,708 55,560 -57% EBITDA Margin 8% 15% Net Interest Income / (Expenses) (52) (141) n.m FX Gain / (Loss
Slide 30: ITM structure
ITM structure Banpu 65% INDONESIAN STOCK 35%* EXCHANGE Public ITMG PT Indo Tambangraya Megah Tbk. IPO 18th Dec 2007 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 91.99% Indominco Trubaindo Bharinto Embalut Jorong TIS NPR TRUST ITMI PT Tambang Raya PT ITM Indonesia PT Indominco PT Tr
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