Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q1 2020 Earnings Presentation
30 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, May 13, 2020
Slide 1: Analyst Briefing 1Q20 Performance Results
ANALYST BRIEFING 1Q20 PERFORMANCE RESULTS Jakarta, 13th May 2020
Slide 2: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 2
Slide 3: Covid-19 impact, but early signs of recovery
Covid-19 impact, but early signs of recovery EUROPE – RESTRICTION PARTIALLY EASED CHINA – SIGNS OF RECOVERY ▪ EU Q1 GDP down by 3% YoY CHINA PMI INDEX ▪ Germany: re-opened of some non-essential shops ▪ Italy: resumed factories, construction sites, wholesale supply businesses 50 49 50 50 50 52 51 36
Slide 4: COVID-19: ITMG Three Focus Areas During Pandemic
COVID-19: ITMG Three Focus Areas During Pandemic Taking Care of Securing Our Support Our Our Employees From vectorified.com Business From flaticon.com Community From pngtree.com ITM committed to protect ITM maintain uninterrupted ITM is here to stay and its employees both business operation through
Slide 5: COVID-19: ITMG Business Continuity Plan
COVID-19: ITMG Business Continuity Plan POTENTIAL KEY ISSUE RESPONSE PLAN • Lower commodity price outlook due to global uncertainty and • Closely monitor coal demand and country specific condition while pandemic in which several countries have put in place large consider alternate revenue stream. ga
Slide 6: COVID-19: ITMG Support The Communities
COVID-19: ITMG Support The Communities ITM continues to support the communities in fighting COVID-19: • Medical equipment, Personal Protective Equipment (PPE) and sanitary-ware distribution to health facilities such as regional hospital, public health center (Puskesmas) and local government health a
Slide 7: Highlights of 1Q20 results
Highlights of 1Q20 results Coal Sales: 5.8 Mt Down 0.7 Mt Down 0.2 Mt -11% Q-Q -3% y-y Unit: US$ million 1Q20 4Q19 1Q19 Q-Q y-y Total Revenue 366 411 453 -11% -19% Gross Profit Margin 18% 22% 21% -4% -2% EBIT 36 46 57 -22% -37% EBITDA 52 62 72 -17% -29% Net Income 14 28 39 -48% -63% ASP (USD/ton) $5
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 5.7 5.6 8.9 Mt 5.3 4.5 4.5 Jorong Trubaindo Bunyut Port Kitadin Bharinto 4.3 Mt Trubaindo Kitadin – Samarinda Embalut Bharinto 1.6 Mt Indominco Balikpapan 2.6 - 3.7 Mt East Kalimantan 1Q19 2Q19 3Q
Slide 10: Indominco Mandiri
Indominco Mandiri SCHEMATIC OUTPUT TREND 2020 target: 8.9 Mt Operations Unit: Mt Ports Hauling 3.3 West Block Stockpile 0.5 2.7 2.5 ROM Crusher 0.5 2.1 stockpile Mine 0.5 stockyard 0.7 W Block East Block 2.8 2.1 2.0 1.4 E. Block Bontang City 35Km 1Q19 4Q19 1Q20 2Q20e Sea conveyor Avg.S/R 13.9x 10.2x
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 Port 1.9 1.7 1.7 Product coal 1.5 East Kalimantan conveyor, stacking, stockpile 1.1 1.2 1.0 Trubaindo 1.0 40km Mine to port 0.7 Bharinto Operations 0.6 0.5 0.7 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 1Q19 4Q19 1Q20 2Q20e Embalut Port S/R (bcm/t) - Embalut : 11.9x 8.1x 16.4x 11.2x Mahakam Samarinda Rive
Slide 13: Jorong
Jorong SCHEMATIC OUTPUT TREND 2020 target: 1.4 – 1.6 Mt Unit: Mt 0.5 Pelaihari 0.3 0.3 0.3 Haul road 20km 1Q19 4Q19 1Q20 2Q20e S/R (bcm/t) : 10.5x 6.0x 11.3x 6.2x Jorong COMMENTS COMMENTS Coal Operations terminal ▪ 1Q20 production achieved according to target. Barge Port Java Sea ▪ Overall strip rat
Slide 14: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 14
Slide 15: Global coal demand trends: 2020 vs 2019
Global coal demand trends: 2020 vs 2019 CHANGE GEOGRAPHY COMMENTS 2020-19 (Mt) ▪ Import remained strong in Q1 as buyers rushed to imports on the fear of domestic production disruption. CHINA -30 ▪ Domestic coal prices fell sharply and approach red zone due to oversupply. Government intervention to t
Slide 16: Global coal supply trends: 2020 vs 2019
Global coal supply trends: 2020 vs 2019 CHANGE GEOGRAPHY COMMENTS 2020-19 (Mt) ▪ Export is expected to slowdown from April onward as weak Chinese and Indian -40 demand seems to hit Indonesia the most. INDONESIA ▪ Weak demand are pushing supply lower but we have not seen significant supply cut announ
Slide 17: ITM coal sales 1Q20
ITM coal sales 1Q20 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 1Q20 1.6 Mt 1.5 Mt Korea Vietnam 1% 1% Taiwan 3% Phillippines 0.1 Mt 6% India 6% China 0.5 Mt 0.1 Mt 29% 0.3 Mt Thailand CHINA KOREA 7% 0.4 Mt JAPAN 0.3 Mt Bangladesh 0.7 Mt 0.2 Mt BANGLADESH VIETNAM 1.5 9% INDIA TAIWAN Indonesia THA
Slide 18: Indicative coal sales 2020
Indicative coal sales 2020 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status 19% Uncontracted 19% Unsold 50% 31% 81% Contracted Indexed Fixed TARGET SALES 2020: 22.0 Mt 18
Slide 19: 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 ▪ Upper $60’s maintain through most of 1Q20. 150 200 ▪ COVID 19 spread through China caused interruption in 150 domestic coal production, hence increase demand of 100 130 50 import coal, help sup
Slide 20: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIALREVIEW FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 20
Slide 21: Sales revenue
Sales revenue Unit: US$ million -11% (QoQ) -19% (YoY) Others +5% (QoQ); +5% (YoY) 453 Jorong 411 0% (QoQ); 56 21 56 366 -10% (YoY) 15 Kitadin 19 59 19 -42% (QoQ); 76 19 11 -26% (YoY) 92 Bharinto 79 117 -14% (QoQ); 4% (YoY) 123 Trubaindo Other 120 -2% (QoQ); Jorong 3% (YoY) Kitadin 233 Bharinto 178 1
Slide 22: Average gross margin
Average gross margin Avg. FY18: 29% Unit : US$ Million Revenue Avg. FY19: 19% GPM (%) 453 411 233 366 178 155 123 120 117 92 76 79 19 21 19 19 15 21% 22% 19% 32% 11 18% 13% 19% 19% 32% 16% 16% 17% -12% 21% -1% 38% 42% 3% 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 1Q19
Slide 23: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Unit: Bcm/t Avg. FY18: 11.1 Unit: US$/t Avg. FY18: $50.6/t Avg. FY19: 10.9 Avg. FY19: $47.3/t 13.2 55.1 51.7 11.6 48.7 10.7 41.0 41.9 Non-Coal 9.5 9.3 49.0 48.5 43.8 39.4 Coal 37.5 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 FUEL PRICE
Slide 24: EBITDA
EBITDA Unit: US$ million -17% (QoQ) -29% (YoY) 72 5 Kitadin -96% (QoQ) 19 -94% (YoY) 62 1 7 52 Bharinto 0 +24% (QoQ) 5 6 -67% (YoY) Other 30 12 12 Trubaindo Jorong +3% (QoQ) Kitadin -59% (YoY) Bharinto 30 29 Indominco Trubaindo 23 -2% (QoQ) Indominco +28% (YoY) (4) (1) (2) Jorong (6) (2) n.m (QoQ) 1
Slide 25: Net income
Net income 1Q19 NET INCOME 4Q19 NET INCOME Other: • FX Gain/(Loss) (USD/IDR) $0.5 M Other: • Derivative Gain/(Loss) (commodities) $0.8M • FX Gain/(Loss) (USD/IDR) $3.8M 72 • Other loss $(2.4)M 62 • Derivative Gain/(Loss) (commodities) $3.8M KTD OTH • Other loss $(15.7)M BEK (15) 2 (1) KTD (16) 1 (19
Slide 26: Balance sheet
Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) 374 368 328 Net D/E (times) 268 222 159 (32%) (36%) (39%) (38%) (17%) (21%) (0.32) (0.36) (0.39) (0.38) (0.17) (0.21) 2016 2016 2017 2018 2019 1Q20 2015 2016 2017 2018 2019 1Q20 DEBT POSITION Unit: US$ million 11 2 0 0 0 0 2015
Slide 27: 1Q20 Capital expenditure realization
1Q20 Capital expenditure realization Units: US$ million 1.2 Indominco 4.4 1.1 Realized up to Mar 2020 Trubaindo 15.6 2020 Capex plan 1.7 Bharinto 9.5 1.4 TRUST 18.7 5.6 ITM Consolidated 49.9 Note: Total capex plan including Jakarta office after elimination 27
Slide 28: Appendix
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Slide 29: Income statement
Income statement Unit: US$ thousand 1Q20 4Q19 1Q19 QoQ% YoY% Net Sales 365,903 410,812 453,025 -11% -19% Gross Profit 66,022 88,856 93,612 -26% -29% GPM 18% 22% 21% SG&A (30,199) (42,768) (36,520) -29% -17% EBIT 35,823 46,088 57,092 -22% -37% EBIT Margin 10% 11% 13% EBITDA 51,835 61,921 72,463 -16%
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% Indominco Trubaindo Bharinto Embalut Jorong TIS NPR TRUST ITMI PT Tambang Raya PT ITM Indonesia PT Indominco PT Trubaindo
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