PT Indika Energy Tbk · IDX:INDY
PT Indika Energy Tbk — FY2013 Earnings Presentation
106 slides from PT Indika Energy Tbk's earnings presentation, April 2014
Slide 1: PT Indika Energy Tbk. Company Update FY2013
PT Indika Energy Tbk. Company Update FY2013
Slide 2: Disclaimer
Disclaimer Investors and security holders are cautioned that this communication contains forward-looking statements and that forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of PT Indika Energy Tbk.
Slide 3: Table of Contents
Table of Contents • 2013 highlights 4 • What to expect in 2014 36 • Business overview • Energy Resources 45 • Energy Services 63 • Energy Infrastructure 71 • Appendix • Financial highlights 78 • Fast facts 98 3
Slide 4: 2013 highlights
INDIKA_ 2013 highlights
Slide 5: Key Developments
Key Developments Signed an PT. Tripatra Signed a principal PT. Mitra Energi Agung agreement with Engineers and agreement with (“MEA”) signed Total E&P Constructors has China Railway cooperation agreement Indonesia West signed sale and Group Limited with PT. Ganda Alam Papua to acquire purchase agree
Slide 6: 2013 Key Assumptions Vs. Actual
2013 Key Assumptions Vs.Actual Exchange rate Rp9.500/USD 1 Thermal Coal Price (New Castle Index) USD90.0/ton Fuel Cost (Diesel)-Pertamina Rp10,900/liter 2013 Assumptions 3M13 6M13 9M13 12M13 Average Selling Price USD55.0/ton USD60.4/ton USD60.4/ton USD58.8/ton USD57.2/ton (ASP) Kideco Production Vol
Slide 7: Indika's Financial Highlights (1)
Indika’s Financial Highlights (1) Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) * 900 200 193.2 193.1 50 863.4 749.7 40.6 228.9 50.5 52.2 207.0 34.7 11.6 PTRO: US$360.1 5.4 221.0 MBSS: US$151.1 55.9 51.6 450 TPE : US$303.4 100 25 5.8 208.6 Others: US$ 48.8 16.4 227.9 47.5 47.3 14
Slide 8: Indika's Financial Highlights (2)
Indika’s Financial Highlights (2) Revenues Others 5.4% MBSS 17.6% Tripatra 35.2% Petrosea 41.8% USD863.4 million 8
Slide 9: Indika's Financial Highlights (3) Cash Balance & Debt
Indika’s Financial Highlights (3) Cash Balance & Debt (USD mn) 1,200 1,038.2 99.8 Lease 138.4 Bank loan 600 405.7* Bond 800.0 *** 326.6 ** 79.1 0 Cash Balance Debt Note : *Consists of : Petrosea : USD58.5 mn, MBSS : USD43.9 mn, Tripatra : USD77.6 mn & Indika : 225.7 mn (including IIC,IIR and Others)
Slide 10: Indika's Financial Highlights (4) Capex Realization
Indika’s Financial Highlights (4) Capex Realization Allocation 2013 2013 2013 Budget Realization Realization (USD mn) (USD mn) % Petrosea 33.9 31.6 93.2% MBSS 1.9 8.0 422.6% Tripatra 3.0 3.3 111.3% Resources* 34.9 20.1 57.2% Holding** 4.5 11.5 256.2% Total 78.2 74.5 95.2% Note : *Include MTU of USD2
Slide 11: Indika's Key Business Indicators (5)
Indika’s Key Business Indicators (5) Revenue (USD mn) Adj. EBITDA (USD mn) & EBITDA Margin (%) 700 60% 863 750 600 50% 593 500 40% 400 333 30% 300 250 261 20% 200 100 10% 0 0% 2011 2012 2013 2011 2012 2013 EBITDA EBITDA Margin Adj. EBIT (USD mn) & EBIT Margin* (%) Adj. EBIT to Assets (ROA) 300 40% 1
Slide 12: Indika's Key Credit Ratios (6)
Indika’s Key Credit Ratios (6) Gross Debt & Net Debt / Adj. EBITDA (x) Debt / Capital (%) 52.4% 4.08 3.76 51.3% 3.12 2.43 1.76 1.87 50.3% 2011 2012 2013 2011 2012 2013 Gross Debt Net Debt Adj. FFO / Debt (%) Adj. FCF / Debt (%) 23.1% 20.8% 16.9% 5.9% 14.5% (21.0%) 2011 2012 2013 2011 2012 2013 12
Slide 13: Indika's Key Credit Ratios (7)
Indika’s Key Credit Ratios (7) Adj. EBITDA / Interest* (x) Adj. EBIT / Interest* (x) 3.60 4.44 2.66 3.35 2.90 1.97 2011 2012 2013 2011 2012 2013 Adj. FFO + Interest / Interest (x) Adj. EBITDA Less Capex / Interest* (x) 2.47 4.19 0.82 3.13 2.72 (2.64) 2011 2012 2013 2011 2012 2013 *Note: Adjusted EBI
Slide 14: Kideco's Financial Highlights (1)
Kideco’s Financial Highlights (1) Revenue (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 2,500 750 733.4 700 692.9 2,357.3 84.3 72.7 2,120.6 532.9 477.2 153.1 143.4 500 465.7 434.1 567.4 49.7 519.2 59.1 1,250 350 213.2 224.0 97.9 91.4 625.8 575.0 250 138.6 128.6 631.3 549.2 272.0 263.6 170
Slide 15: Kideco's Financial Highlights (2) Cash Balance & Debt
Kideco’s Financial Highlights (2) Cash Balance & Debt (USD mn) 200 142.2 100 126.6 * Restricted Cash 15.6 0 Cash Balance Note : * Guarantee Deposit in relation to sales contracts. 15
Slide 16: Kideco's Financial Highlights (3) Capex Realization
Kideco’s Financial Highlights (3) Capex Realization Allocation 2013 2013 2013 Budget Realization Realization (USD mn) (USD mn) % Maintenance 12.2 3.8 30.6% Expansion- 30.4 17.8 58.6% 8th infrastructure expansion * Total 42.7 21.6 50.5% 16
Slide 17: Kideco's Operating Highlights (1)
Kideco’s Operating Highlights(1) Overburden Removal (mn bcm) Coal Production (mn ton) Stripping Ratio (X) 260 241.1 40 239.4 37.3 8 7.00 34.2 6.46 67.7 63.1 9.4 8.7 7.81 6.74 60.2 9.4 130 64.7 20 8.9 4 7.31 6.44 60.3 9.6 55.1 8.6 6.43 6.26 52.0 57.4 8.1 8.9 6.40 6.43 0 0 0 2012 2013 2012 2013 2012 2
Slide 18: Kideco's Operating Highlights (2)
Kideco’s Operating Highlights (2) Description 2012 1Q 2Q 3Q 4Q 12M Coal Production (mn ton) 8.12 8.57 8.85 8.66 34.20 Coal Sales (mn ton) 8.41 8.42 8.97 8.41 34.22 Stripping ratio (X) 6.40 6.43 7.31 7.81 7.00 Cash Cost (USD/ton incl. royalty) 43.50 46.17 46.36 50.89 46.71 Cash Cost (USD/ton excl. ro
Slide 19: Kideco's Operating Highlights (3)
Kideco’s Operating Highlights (3) Description 2012 Roto North Roto South Roto Middle Samarangau Susubang Total Overburden (mn bcm) 18.2 125.6 31.0 57.6 7.1 239.4 Coal Production (mn tons) 2.4 16.3 3.6 11.3 0.5 34.2 SR 7.55 7.68 8.62 5.08 13.72 7.00 Description 2013 Roto North Roto South Roto Middle
Slide 20: Petrosea's Financial Highlights (1)
Petrosea’s Financial Highlights(1) Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 400 385.5 120 112.7 90 360.1 80.1 97.3 27.5 90.6 88.1 19.6 62.1 24.5 89.9 17.7 113.7 39.0 28.0 200 60 45 Mining: US$312.2 22.6 Services: US$ 33.1 E&C : US$ 14.7 16.0 94.6 91.1 23.7 21.3 15.8 12.3 79.
Slide 21: Petrosea's Financial Highlights (2)
Petrosea’s Financial Highlights(2) Revenues Breakdown by Value (USD mn) E&C POSB E&C POSB 4.1% 6.9% 0.6% 9.2% Coal Coal Contract Contract Mining Mining 86.7% 92.5% 2013 Revenues : USD360.1 mn 2012 Revenues : USD385.5 mn Cost Structure (USD mn) Subcontractors MIS Subcontractors MIS 6.8% 0.6% 6.9% 0.2
Slide 22: Petrosea's Financial Highlights (3) Cash Balance & Debt
Petrosea’s Financial Highlights(3) Cash Balance & Debt (USD mn) 300 227.5 200 99.6 Lease 12.5 Bank loan 100 58.5 Loan from 115.4 Other Financial Indika Energy 57.1 Assets 0 1.4 Cash Balance Debt 22
Slide 23: Petrosea's Operating Highlights Mining's Operation
Petrosea’s Operating Highlights Mining’s Operation Overburden Removal Volume (mn bcm) 160 156.7 141.1 40.5 35.3 46.2 34.6 80 38.1 34.4 31.9 36.8 0 2012 2013 Client 2012 2013 Changes Gunung Bayan Pratama 51.4 36.2 -29.6% Santan Batubara 32.7 23.6 -28.0% Adimitra Baratama 45.8 46.1 0.6% Kideco Jaya Ag
Slide 24: Petrosea's Financial Highlights Santan's Financial
Petrosea’s Financial Highlights Santan’s Financial Revenue (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 250 70 20 64.3 225.5 14.5 13.0 66.9 3.2 10 139.7 18.8 4.0 125 62.5 36.9 35 28.5 6.0 (7.5) 34.8 14.1 8.5 0 (0.1) 44.5 (3.7) 36.7 8.7 (2.1) 51.6 16.9 (0.4) 31.3 6.8 (1.2) 0 0 4.5 -10 201
Slide 25: Petrosea's Operating Highlights (1)
Petrosea’s Operating Highlights(1) Santan’s Operation Overburden Removal (mn bcm) Coal Production (mn ton) Stripping Ratio (X) 40 3 20 2.6 32.7 0.9 13.29 10.3 12.45 23.7 1.8 11.42 10.07 20 4.5 2 0.4 10 9.8 4.4 0.7 10.49 0.4 13.87 5.5 13.26 6.6 0.6 0.4 11.96 9.4 0.5 18.34 6.1 0.5 12.84 0 0 0 2012 201
Slide 26: Petrosea's Operating Highlights (2)
Petrosea’s Operating Highlights(2) Santan’s Operation Description 2012 1Q 2Q 3Q 4Q FY Coal Production (mn ton) 0.48 0.55 0.70 0.90 2.63 Coal Sales (mn ton) 0.54 0.48 0.71 0.84 2.57 Stripping ratio (X) 12.84 11.96 13.87 11.42 12.45 Cash Cost (USD/ton incl. royalty) 82.12 83.69 80.28 73.31 79.03 Cash
Slide 27: Tripatra's Financial Highlights (1)
Tripatra’s Financial Highlights (1) Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 310 303.4 40 25 36.6 85.2 17.7 210.1 12.0 5.7 15 22.5 69.4 78.0 155 20 10.7 6.6 9.7 7.0 57.8 5 2.9 84.7 3.4 0.6 1.5 7.0 39.8 11.3 2.0 5.3 (1.6) 43.1 55.5 4.1 0 2.5 0 -5 2012 2013 2012 2013 2012 2013
Slide 28: Tripatra's Financial Highlights (2)
Tripatra’s Financial Highlights (2) Revenue Breakdown by Value (USD mn) * O&M Port & 2.2% Logistic 5.3.% Port& * Logitsic 26.9% EPC 68.3% O&M 4.8% EPC 92.5% 2013 Revenue : USD303.4 mn 2012 Revenue : USD210.1 mn Cost Structure (USD mn) Others Others 10.1% 12.7% Materials Materials 52.9% 24.7% Constru
Slide 29: Tripatra's Financial Highlights (3)
Tripatra’s Financial Highlights(3) Cash Balance & Debt (USD mn) 105 77.6 70 75.4 35 27.6* Other Financial Assets 0 Cash Balance Debt-Bank Loan Note : * Working capital loan & Investment Loan. 29
Slide 30: Tripatra's Financial Highlights (4) Cotrans' Operation
Tripatra’s Financial Highlights(4) Cotrans’ Operation Revenue (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 78.9 8.5 80 76.0 12 12 10.9 18.2 21.1 3.0 2.9 18.4 21.5 4.7 40 6 5.0 6 5.5 1.5 4.8 0.2 1.3 20.8 19.2 0.1 2.6 2.4 2.0 1.8 18.6 17.1 1.9 1.5 1.7 1.4 0 0 0 2012 2013 2012 2013 2012 201
Slide 31: Tripatra's Financial Highlights (5) Sea Bridge Shipping
Tripatra’s Financial Highlights (5) Sea Bridge Shipping’s Operation Revenue (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 36 20 18.5 20 31.1 17.7 28.2 2.4 2.1 7.4 13.7 8.1 12.8 5.5 5.4 8.3 5.3 18 10 10 5.1 7.0 5.8 2.7 5.6 8.1 2.5 7.5 3.1 2.9 7.3 4.8 4.6 5.6 2.6 2.3 0 0 0 2012 2013 2012 20
Slide 32: MBSS' Financial Highlights (1)
MBSS’ Financial Highlights (1) Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 160 151.1 70 50 48.0 141.4 60.7 44.6 39.1 56.4 12.4 38.2 14.5 12.6 15.6 37.1 11.2 35.2 Barges :US$109.7 15.5 10.2 80 35 25 FC : US$ 41.4 13.5 38.1 12.0 34.5 15.7 10.2 13.1 11.6 12.5 33.6 36.8 14.2 15.1 0
Slide 33: MBSS' Financial Highlights (2)
MBSS’ Financial Highlights (2) Revenues Breakdown by Value (USD mn) Floating Crane Floating 27.8% Crane 24.5% Barging 72.2% Barging 75.5% 2013 Revenues : USD 151.1 mn 2012 Revenues : USD 141.4 mn Cost Structure (USD mn) Others Others 15.9% 16.2% Vessel Rental Fuel Vessel Rental Fuel 3.6% 30.1% 6.3%
Slide 34: MBSS' Financial Highlights (3) Cash Balance & Debt
MBSS’ Financial Highlights (3) Cash Balance & Debt (USD mn) 120 97.5 - 60 43.9 0 Cash Balance Debt-Bank Loan 34
Slide 35: MBSS' Operating Highlights
MBSS’ Operating Highlights Barging (mn ton) Floating Crane (mn ton) 40 38.4 22 20.9 10.1 17.5 5.2 29.3 5.1 8.5 4.4 9.9 20 11 4.5 7.8 5.7 9.9 7.2 4.4 8.5 5.6 5.8 3.5 0 0 2012 2013 2012 2013 Client 2012 2013 Changes Client 2012 2013 Changes Kideco Jaya Agung 5.2 9.1 75.6% Kideco Jaya Agung 3.1 7.7 148
Slide 36: What to expect in 2014
INDIKA_ What to expect in 2014
Slide 37: 2014 Key Assumptions (1)
Exchange rate 2014 Key Assumptions (1) Rp12.000/USD 1 Thermal Coal Price (New Castle Index) USD83.0/ton Fuel Cost (Diesel)-Pertamina Rp12,346/liter 2014 Assumptions Average Selling Price (ASP) USD51.8/ton Production Volume 40 mn tons Kideco Strip Ratio (SR) 6.8 X Cash Cost excl. Royalty USD38.9/ton
Slide 38: 2014 Key Assumptions (2) Capex budget
2014 Key Assumptions (2) Capex budget Allocation 2014 Budget (USD mn) Petrosea 30.1 MBSS 35.0 Tripatra 3.8 MTU 15.1 Resources 1.5 Holding & incubating unit 28.0 Total 113.5 38
Slide 39: CAPEX Breakdown (3)
CAPEX Breakdown (3) PT Indika Energy Tbk (Consolidated CAPEX) USD mn 600 558 480 447 316 360 168 240 242 114 279 120 74 0 2011 2012 2013 2014F Petrosea MBSS MTU Holding & Others 154 150 143 360 358 100 100 120 80 77 76 288 80 90 60 216 216 60 316 60 40 35 40 144 168 32 30 30 20 20 15 72 8 11 3 30 0
Slide 40: 2014 Key Assumptions (4) Kideco's Capex budget
2014 Key Assumptions (4) Kideco’s Capex budget Allocation 2014 Budget (USD mn) Maintenance 17.9 Heavy Equipement & Others 3.3 Total 21.3 CAPEX 56.0 48.8 21.6 21.3 2011 2012 2013 2014F 40
Slide 41: Dividends to be paid in 2014 (5)
Dividends to be paid in 2014 (5) Dividends Received Company Net Profit 2013 Dividend Declared Indika Portion Payment Date (USD mn) (USD mn) (USD mn) (USD mn) Payout ratio: 89.99% Kideco 212.24 190.00 87.86 27.60 25 Apr 2014 27.60 25 Jun 2014 32.66 25 Nov 2014 41
Slide 42: Supply & Demand Forecast
Supply & Demand Forecast 2013 +/ - 2014 Remarks Asia 695 28 723 China 206 5 211 Jan ~ Aug 138 Mt, yoy +13Mt India 133 20 153 Jan ~ Aug from Indonesia 79Mt, yoy +24Mt 7,000MW IPP added in ‘13.Jan ~Aug(Total coal fired 11,950MW)/ Demand 4,630MW planned in ‘13.Sep~ ’14.Mar(Total coal fired 11,930MW) Ko
Slide 43: Thermal Coal Price vs. Crude Oil Price
Thermal Coal Price vs. Crude Oil Price 200 USD/ton USD/barrel 28 March’ 14 101.73 100 74.40 28 March’ 14 2007 2008 2009 2010 2011 2012 2013 2014 0 Newcastle Coal Price WTI Crude Oil Price Source: Platts & U.S. Energy Information Administration 43
Slide 44: Coal price remain weak
Coal price remain weak (USD/ton) 200 Jan’12 175 168.4 116.5 150 127.4 130.0 125 77.0 116.3 112.9 March’14 117.6 100 95.2 95.8 84.7 85.7 78.1 81.4 86.6 89.4 75 79.2 76.6 66.7 54.5 61.4 50 74.0 March ’14 2009 Average 2010 Average 2011 Average 2012 Average 2013 Average 25 2007 Average 2008 Average USD
Slide 45: Energy Resources
Energy Resources Kideco Santan Batubara MTU MEA 45
Slide 46: Indika's Coal Reserves and Resources
Indika’s Coal Reserves and Resources Coal Reserves Resources 2011A 2012A 2013 2014F Production Production Production Target Assets (mn ton) (mn ton) (mn ton) (mn ton) (mn ton) (mn ton) Kideco 651.0 1,376.0 31.5 34.2 37.3 40.0 Santan 47.9 283.7 1.7 2.6 1.8 1.1 MTU 40.6 75.2 n/a n/a n/a 0.8 SETELAH 40
Slide 47: PT Kideco Jaya Agung
PT Kideco Jaya Agung Indika owns 46% of Kideco, the third- largest coal producer in Indonesia with 50,400 Ha concession in East Kalimantan Kideco engages in surface open-cut mining since 1993 First-generation Coal Contract of Work valid through 2023 JORC resources as of April 2011 at 1,376mt and res
Slide 48: Indika and Samtan are equal partners in the Kideco joint venture
Indika and Samtan are equal partners in the Kideco joint venture PT Muji Inti Utama Shareholding 46% 49% 5% Indonesian expertise and local access Leading Korean energy company Indonesian coal producer Role Business opportunities via the energy 45 years of mining experience A customer of Indika platf
Slide 49: Abundant Reserves and Resources
Abundant Reserves and Resources Reserves (in million ton)(1) Calorific 2) Area Value (kcal) Proved Probable Total Roto South 4,870 91 66 157 Roto North 5,470 - 18 18 651 million tons Roto Middle 4,730 22 17 39 in Reserves Susubang 5,120 - 16 16 Samarangau 4,430 79 342 421 Total 192 459 651 Resources
Slide 50: Well Developed Infrastructure with End-to-End Control of Mining Process
Well Developed Infrastructure with End-to-End Control of Mining Process … Overburden Removal Process Barging and Shipping Production of “Run of Mine” (58km) 1 (ROM) Coal 6 2 Capable of loading a number of vessels simultaneously Total Distance: 99 – 107km Stockpiling at TMCT Crushing (3-11km) Exclusi
Slide 51: Supporting Reputation as the Most Reliable Supplier
… Supporting Reputation as the Most Reliable Supplier Unmatched Track Record of Production Achievement (mn ton) FY14 53 Target 100.8% 101.6% 100.6% 40.0 100.2% 37.0 37.3 34.0 34.2 35 103.1% 31.0 31.5 104.1% 100.0% 29.0 29.1 101.1% 102.2% 24.0 24.8 22.0 22.0 18.0 18.2 18.5 18.9 19.7 20.5 18 0 2005 20
Slide 52: One of the Lowest Cost Coal Producers in Indonesia
One of the Lowest Cost Coal Producers in Indonesia Cash Cost Component USD Cash Cost / ton Overhead Overhead Labor Labor Material 1.3% 5.8% Material 1.5% 4.7% 2013 13.1% 13.7% USD43.57 incl. royalty USD36.88 excl. royalty Freight Freight 5.9% 5.3% 2012 USD46.71 incl. royalty Mining Gov. Mining USD38
Slide 53: Kideco Operations Performance
Kideco Operations Performance (mn ton/bcm) (multiple) 300.0 8.00 Overburden Coal Production Strip Ratio 7.05 6.95 7.00 7.00 250.0 6.60 239.4 241.1 6.46 219.0 6.00 5.85 5.45 200.0 5.00 4.85 170.1 163.0 150.0 4.00 133.3 112.1 106.7 3.00 100.0 2.00 50.0 34.2 37.3 29.1 31.5 1.00 22.0 24.7 18.9 20.6 - -
Slide 54: Kideco Sales By Destination
Kideco Sales By Destination Strong Presence in Traditional & New Markets 2013 – Total Sales Volume : 37.1 mn tons 2012 – Total Sales Volume : 34.2 mn tons Thailand Others Japan 2.5% 5.1% 5.6% Philippines Taiwan 4.8% 4.7% China Indonesia Hong Kong Korea 22.5% 29.0% 5.4% 7.8% Malaysia 6.2% India 8.8%
Slide 55: PT Santan Batubara
PT Santan Batubara Petrosea owns 50% of Santan, the third-generation Coal Contract of Work with 24,930 Ha concession in East Kalimantan and valid through 2038. Petrosea engages coal mining services and Harum Energy who owns other 50% stake in Santan, engages coal marketing services. Santan engages i
Slide 56: Santan Batubara – High Value Coal Mining Asset
Santan Batubara – High Value Coal Mining Asset Resources & Reserve (in million tons) Coal Quality Area Resources Reserves Calorific Value (kcal/kg) 5,500 – 5,800 Separi 61.5 1) 17.3 1) Sulphur Content 1.0% Birawa 57.8 2) 20.5 2) Ash Content 4 – 8% Uskap 96.1 2) 8.1 2) Royalty 13.5% Santan 68.3 2) 2.
Slide 57: Indika Completed the Acquisition of MTU (1)
Indika Completed the Acquisition of MTU (1) On May 31, 2012, Indika completed acquisition of 85% of PT Multi Tambangjaya Utama (“MTU”) from Asia Thai Mining Co. Ltd. (“ATM”) & an individual shareholder, and its coal right from International Coal Trading Limited. Total transaction value of USD108.9m
Slide 58: Key Investment Highlights (2)
Key Investment Highlights (2) 1 High CV Thermal and Coking Coal Reserves* • Thermal Coal CV : 6,500 – 7,200 adb • Coking Coal CV : 7,800 adb 5 2 Rare Opportunity to Acquire Developed Infrastructure and Asset Close to Production Stage Logistics • Production can commence once • Barge port capacity : 5
Slide 59: Existing Infrastructure Supports Production of up to 3 MTPA (3)
Existing Infrastructure Supports Production of up to 3 MTPA (3) Haul Road Crusher Approximately 63 km Capacity is sufficient private hauling road to handle 3 Mtpa. from Pit to Port is owned by MTU. Conveyor Jetty Barge Port Capacity of conveyor MTU’s own barge jetty can be port has capacity of incre
Slide 60: MTU's Resources and Reserves (4)
MTU’s Resources and Reserves (4) Coal Reserves & Resources Thermal Coking Total Resources (mn ton)* 51.6 23.6 75.2 Reserves (mn ton)* 31.2 9.4 40.6 Strip Ratio (X) 13.0 17.0 Coal Quality Parameter** Thermal Coking Calorific Value (kcal/kg) 6,721 – 7,208 7,808 Total Moisture (%) 6.7 – 14.2 12.8 Ash (
Slide 61: MTU's Capex Planning in Next Five Years (5)
MTU’s Capex Planning in Next Five Years (5) Allocation Budget % (USD mn) Land Compensation & Licenses 42.2 43.8% Infrastructure & Mine Development SETELAH 36.0 REFLOATI 37.4% Exploration NG 17.3 18.0% Heavy Equipment 0.8 0.8% Total 96.3 100.0% 61
Slide 62: Indika Completed the Acquisition of MEA
Indika Completed the Acquisition of MEA On March 21, 2012, Indika completed the acquisition of 60% stake on PT Mitra Energi Agung a greenfield coal asset located in East Kalimantan for USD27 mn. Business Description • MEA hold an IUP license. • The concession covers an area of 5,000 ha located at Ea
Slide 63: Energy Services
Energy Services Tripatra & Subsidiaries PT Petrosea Tbk. 63
Slide 64: Tripatra Has 40 Years Track Record in the Energy Services
Tripatra Has 40 Years Track Record in the Energy Services Established in 1973 Multi-discipline engineering / EPC and project capabilities Well-established track record with highly rated multinational companies Long-term relationships with key customers including Chevron, Exxon Mobil and HESS Leading
Slide 65: Tripatra's Subsidiaries
Tripatra’s Subsidiaries PT Cotrans Asia Establish in June 2004, Tripatra has 45% equity interest in Cotrans. Cotrans provides offshore coal transportation and transshipment services to any transshipment point in Adang Bay. It also provides floating crane facility to gearless vessels. COTRANS Tug-boa
Slide 66: Tripatra's Backlog in 2014
Tripatra’s Backlog in 2014 BackLog Jobs Description Client (USD mn) Pertamina HE TSC Pertamina 18.3 Premier Oil Premier Oil 0.5 Exxon Mobil – Cepu Exxon Mobil 109.0 Donggi Senoro JOB Pertamina Medco 212.4 Conoco Phillips Conoco Phillips 11.9 Cilacap RFCC Project Foster Wheeler Indonesia 2.5 Chevron
Slide 67: PT Petrosea Tbk.
PT Petrosea Tbk. PT Petrosea Tbk. is a multi-disciplinary engineering, construction and mining company with a track record of achievement in Indonesia since 1972. Today, Petrosea is recognised as one of Indonesia's leading engineering and construction contractors. Petrosea’s strategy is to be an Ind
Slide 68: Petrosea's Backlog in 2014
Petrosea’s Backlog in 2014 Client Project descriptions Contract Scope of Work Time period Remaining Addition/ Adjusted Revenue Remaining value Contract Adjustment Remaining Recognition Contract Value In 2013 Contract Value Value (USD mn) (USD mn) (USD mn) (USD mn) (USD mn) (USD mn) Per Period Per 31
Slide 69: Mining Fleet
Mining Fleet Petrosea maintains an extensive & high quality fleet. This allows flexibility in fleet management and lowers the risk of operational disruptions to customers. Type 31 Dec 31 Dec 31 Dec 31 Mar 31 Jun 30 Sep 31 Dec 2010 2011 2012 2013 2013 2013 2013 Excavators 21 29 42 42 41 41 40 2 Dump
Slide 70: Petrosea Offshore Supply Base
Petrosea Offshore Supply Base Facilities Equipment • Quay (inner : 4-6 meters & outer 5-8 meters water depth) • 8 various type Cranes • Storage : • 9 various type Fork lifts - Undercover (13,500 square meters) & Open (80,000 square meters) • 4 prime mover and trailers - Oil (4,000 cubic meters) & di
Slide 71: Energy Infrastructure
Energy Infrastructure PT Mitrabahtera Segara Sejati Tbk. PT Cirebon Electric Power 71
Slide 72: PT Mitrabahtera Segara Sejati Tbk.
PT Mitrabahtera Segara Sejati Tbk. MBSS is an integrated coal transport and logistics (one-stop-solution) service company incorporated in 1994. Since 1998 MBSS has shown its commitment to customers by being the first company in Indonesia to sign a contract with a dispatch and demurrage provision cla
Slide 73: MBSS' Backlog in 2014
MBSS’ Backlog in 2014 Clients Remaining New Contract/ Revenue Remaining Contract Value Adjustment Value Recognition Contract Value (USD mn) in 2013 (USD mn) (USD mn) (USD mn) Per Period ended Per 31 Dec 2012 31 Dec 2013 31 Dec 2013 Barging Barging 229.3 15.6 106.4 138.5 Floating Crane 176.5 7.2 40.6
Slide 74: Large Fleet of Vessels
Large Fleet of Vessels Tug Barges Floating Crane 80 2 74 1 7 0 Total 82 Total 75 Total 7 Cement Vessel Support Vessel 1 0 1 0 Total 1 Total 1 As of Dec 31’ 2012 Additional up to December 31’ 2013 74
Slide 75: PT Cirebon Electric Power
PT Cirebon Electric Power Location ● Cirebon, Java Capacity ● 1x660MW Shareholding ● Marubeni Corp.: 32.5% ● KOMIPO Co.: 27.5% ● Samtan Co.: 20.0% ● Indika: 20.0% Off-taker ● PLN Power Purchase Agreement ● 30 Years Tariff ● USD0.0443/kwh* Commercial Operation Date ● 27 July 2012 Sources of Coal ● Ki
Slide 76: Cirebon Electric Power
Cirebon Electric Power CEP reached the Commercial Operation Date (COD) and started selling electricity to PLN On July 27, 2012. The Power Purchase Agreement (PPA), a 30 years contract between PT PLN (Persero) and PT CEP. The project cost was USD877.5 million (18 years – USD595 million funded by a co
Slide 77: Appendix
Appendix 1. Financial highlights 2. Fast facts 77
Slide 78: Financial Highlights
INDIKA_ Financial Highlights
Slide 79: Kideco's Financial and Operating Highlights (1)
Kideco’s Financial and Operating Highlights (1) Description 2011 2012 2013 (in USD mn) audited audited audited Sales 2,266.6 2,357.3 2,120.6 Gross profit 864.7 733.4 465.7 Operating profit 823.9 692.9 434.1 Net income 456.1 380.0 212.2 Depreciation Expenses 22.9 25.5 28.9 EBITDA 847.8 719.4 463.7 Gr
Slide 80: Kideco's Financial and Operating Highlights (2)
Kideco’s Financial and Operating Highlights (2) Description 2011 2012 2013 (in USD mn) audited audited audited Current assets 604.0 523.7 457.6 Total assets 817.7 745.1 686.6 Current liabilities 316.5 312.1 272.0 Debt 7.3 - - Total equity 456.0 386.0 363.3 Cash balance 293.5 172.0 142.2 Current rati
Slide 81: Petrosea's Financial Highlights (1)
Petrosea’s Financial Highlights (1) Description 2011 2012 2013 (in USD mn) audited audited audited Revenues 263.8 385.5 360.1 Coal Contract Mining 233.0 356.8 312.2 POSB 17.9 26.5 33.2 Engineering & Construction 12.8 2.3 14.7 Gross Profit 76.3 112.7 90.6 Share in jointly controlled entities net inco
Slide 82: Petrosea's Financial Highlights (2)
Petrosea’s Financial Highlights (2) Description 2011 2012 2013 (in USD mn) audited audited audited Current Assets 105.2 165.6 188.6 Total Assets 377.3 529.7 509.2 Current Liabilities 112.5 125.9 121.3 Total Debt 137.0 267.7 227.5 Shareholders' Equity 159.2 187.3 197.6 Cash Balance 22.6 45.0 58.5 Cur
Slide 83: Petrosea's Financial Highlights (3) Santan's Financial & Operation
Petrosea’s Financial Highlights (3) Santan’s Financial & Operation Description 2011 2012 2013 (in USD mn) Net Sales 156.2 225.5 139.7 Gross Profit 67.6 64.3 28.5 Operating Profit 30.9 13.0 (7.5) Net Profit 23.0 4.9 (8.6) Depreciation Expenses 0.2 0.3 0.4 EBITDA 31.0 8.0 (8.0) Gross Margin 43.3% 28.5
Slide 84: Petrosea's Financial Highlights (4) Santan's Financial
Petrosea’s Financial Highlights (4) Santan’s Financial Description 2011 2012 2013 (in USD mn) Current Assets 40.3 76.8 45.2 Total Assets 56.0 91.9 64.9 Current Liabilities 24.4 54.8 37.0 Debt - - - Total Liabilities 25.5 56.4 38.0 Shareholders' Equity 30.6 35.5 26.9 Cash Balance 8.9 16.7 6.6 Current
Slide 85: MBSS' Financial Highlights (1)
MBSS’ Financial Highlights (1) Description 2011 2012 2013 (in USD mn) audited audited audited Revenues 121.6 141.4 151.1 Gross Profit 49.4 56.4 60.7 Selling & General and administrative expenses (11.8) (11.9) (12.7) Interest income 0.1 0.1 0.5 Finance cost (5.7) (6.7) (6.2) Other gains & losses-net
Slide 86: MBSS' Financial Highlights (2)
MBSS’ Financial Highlights (2) Description 2011 2012 2013 (in USD mn) audited audited audited Current Assets 40.6 52.9 80.3 Total Assets 304.2 345.4 352.8 Current Liabilities 59.6 61.5 37.2 Total Debt 103.0 115.5 97.5 Shareholders' Equity 180.9 211.3 241.8 Cash Balance 6.3 17.7 43.9 Current Ratio (X
Slide 87: Tripatra's Financial Highlights (1)
Tripatra’s Financial Highlights (1) Description 2011 2012 2013 (in USD mn) audited audited audited Revenue 189.7 210.1 303.4 Gross Profit 14.6 22.5 36.6 Equity in net earnings of associates 8.1 8.0 8.8 General and administrative expenses (7.4) (15.5) (18.9) Interest income 2.7 2.8 2.5 Finance cost (
Slide 88: Tripatra's Financial Highlights (2)
Tripatra’s Financial Highlights (2) Description 2011 2012 2013 (in USD mn) audited audited audited Current Assets 110.6 115.4 234.6 Total Assets 177.6 185.3 302.1 Current Liabilities 49.8 55.0 154.9 Total Debt 18.6 20.5 27.6 Shareholders' Equity 109.2 110.1 127.5 Cash Balance 56.8 39.8 77.6 Current
Slide 89: Cirebon's Financial Highlights (1)
Cirebon’s Financial Highlights (1) Description 2011 2012 2013 (in USD mn) audited audited audited Revenue - 141.6 272.3 Gross Profit - 48.9 107.5 Operating expenses (6.4) (7.3) (5.3) Operating Income (6.4) 41.6 102.3 Interest Income 0.003 0.02 0.2 Interest expenses & Financial charges (0.03) (25.4)
Slide 90: Cirebon's Financial Highlights (2)
Cirebon’s Financial Highlights (2) Description 2011 2012 2013 (in USD mn) audited audited audited Cash Balance 23.0 44.9 100.6 Current Assets 26.5 175.7 195.4 Total Assets 790.4 944.3 954.8 Current Liabilities 62.4 198.0 197.0 Total Debt 627.1 726.9 713.0 Shareholders' Equity 47.5 56.5 117.2 Current
Slide 91: Indika's Financial Highlights (1)
Indika’s Financial Highlights (1) Description 2011 2012 2013 (in USD mn) audited Audited Audited Total Revenues 593.4 749.7 863.4 Gross profit 130.8 193.2 193.1 Equity in profit of associates & jointly-controlled entities 222.3 179.0 102.5 General and administrative expenses (109.7) (158.6) (152.5)
Slide 92: Indika's Financial Highlights (2)
Indika’s Financial Highlights (2) Description 2011 2012 2013 (in USD mn) audited Audited Audited Current assets 702.2 698.9 759.3 Total assets 2,015.0 2359.7 2316.3 Current liabilities 492.1 542.3 347.4 Total Debt 980.1 1073.3 1038.2 Total equity 854.8 1022.5 949.9 Subscribed & paid-up 56.9 56.9 56.
Slide 93: Indika's Financial Highlights (3) General and administrative expenses
Indika’s Financial Highlights* (3) General and administrative expenses Description 2012 % 2013 % % (in USD mn) audited audited changes Salaries, Wages and Employee benefits 80.1 50.5% 85.3 55.9% 6.4% Losses attributable to temporary suspension of production 12.9 8.1% 2.9 1.9% -77.4% Professional Fee
Slide 94: Indika's Financial Highlights (4) Finance Cost
Indika’s Financial Highlights (4) Finance Cost Description 2012 % 2013 % % (in USD mn) audited audited changes Interest expense on bonds payable 45.8 61.1% 69.8 61.3% 52.5% Interest on bank loans and long-term loans 14.1 18.9% 9.7 8.6% -31.0% Amortization of bond issuance cost 6.7 9.0% 13.6 12.0% 10
Slide 95: Indika's Financial Highlights (5) Amortization of intangible assets
Indika’s Financial Highlights (5) Amortization of intangible assets Description 2012 % 2013 % % (in USD mn) audited audited changes PT Multi Tambangjaya Utama 4.2 12.2% 9.6 17.7% 131.3% PT Mitrabahtera Segara Sejati Tbk. 18.7 55.0% 18.7 34.4% 0.0% PT Mitra Energi Agung 7.0 20.5% 6.9 12.7% -0.8% PT P
Slide 96: Indika's Financial Highlights (6) One-off exceptional charges in 2013
Indika’s Financial Highlights (6) One-off exceptional charges recorded in 2013 Description In USD mn Additional interest expense* 13.8 Premium charged on the early redemption of 2016 Senior Notes in November 2013 11.2 Full recognition of exploration expenses related to the investment in the Southwes
Slide 97: Dividends in 2013
Dividends in 2013 Dividends Received Company Net Profit 2012 Dividend Declared Indika Portion Dividend Received Payment Date (USD mn) (USD mn) (USD mn) (USD mn) Payout ratio: 88.16% Kideco 380.00 335.00 154.10 46.00 20 Nov 2012 29.90 26 Apr 2013 41.40 27 Jun 2013 36.80 28 Nov 2013 Payout ratio: 14.2
Slide 98: Fast Facts
INDIKA_ Fast Facts 98
Slide 99: Indonesia's leading fully integrated energy company
Indonesia’s leading fully integrated energy company Through its unique, complementary and integrated energy platform, Indika is able to generate stable and increasingly diverse earnings Energy Resources Energy Services Energy Infrastructure • 69.8% stake at Petrosea • 51% stake at MBSS • 46% stake a
Slide 100: A well-integrated energy platform across the entire value chain
Unique large-scale diversified Indonesian energy company with strong presence in all parts of the energy value chain…which creates synergies and earnings diversification… Identification / acquisition Energy resources of assets a Operational synergies from intra-group cross-selling Exploration opport
Slide 101: Corporate Structure
Corporate Structure as of 31 March 2014 PT. Indika Energy Tbk. (Indonesia) 100% 100% 90% 100% 100% 69.80% 100% 100% 100% PT. Indika Indonesia Resources PT. Indika Inti Corpindo PT Indika (Indonesia) PT. Tripatra Engineers PT. Tripatra Indika Power PT Indika Energy Indo Integrated Energy (Indonesia)
Slide 102: Notes Outstanding
Notes Outstanding B1 The Senior Stable Outlook Notes are rated: B+ Stable Outlook Indo Energy Finance B.V. Indo Energy Finance II B.V. USD300 mn USD500 mn 7.00% 7-year Senior Notes 6.375% 10-year Senior Notes Reg S / 144A Reg S / 144A due 2018 due 2023 April 2011 January 2013 102
Slide 103: INDY Shareholding Structure
INDY Shareholding Structure PT Indika Mitra Individual Founders Public Energi (less than 5% each) 63.47%* 29.01% 7.52% PT Indika Energy Tbk. (INDY) listed in the Indonesia Stock Exchange on June 11, 2008 Number of shares : 5,210,192,000 Part of IDX’s LQ 45 Index and MSCI Indonesia Index Market Cap.
Slide 104: PTRO Shareholding Structure
PTRO Shareholding Structure PT Indika Energy Tbk. Public 69.8%* 30.2% PT Petrosea Tbk. (PTRO) listed in the Indonesia Stock Exchange on May 21, 1990 Number of shares : 1,008,605,000** Market Cap. as of April 3, 2014 – IDR1.39 trillion (USD123 million)*** Note: *Since February 09, 2012 (Indika comple
Slide 105: MBSS Shareholding Structure
MBSS Shareholding Structure PT Indika Energy PT Patin Resources Public Infrastructure 51.00% 25.07%* 23.93% PT Mitrabahtera Segara Sejati Tbk. (MBSS) listed in the Indonesia Stock Exchange on April 06, 2011 Number of shares : 1,750,026,639 Market Cap. as of April 3, 2014 – IDR1.76 trillion (USD155 m
Slide 106: Thank you
Thank you PT Indika Energy Tbk. Mitra Building Jl. Jend. Gatot Subroto Kav. 21 Jakarta 12930 Indonesia (6221) 2557-9888 www.indikaenergy.co.id investor.relations@indikaenergy.co.id 106