Pt Indo Tambangraya Megah Tbk · IDX:ITMG

Pt Indo Tambangraya Megah Tbk — 2Q19 Earnings Presentation

30 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Aug 15, 2019

  1. Slide 1: Analyst Briefing 2Q19 Performance Results

    ANALYST BRIEFING 2Q19 PERFORMANCE RESULTS Jakarta, 15th August 2019 1

  2. Slide 2: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 2

  3. Slide 3: Highlights of 2Q19 and 1H18 results

    Highlights of 2Q19 and 1H18 results Coal sales Coal sales 6.3 Mt 12.3 Mt Up 0.3 Mt Up 2.7 Mt +5% Q-Q +28% Y-Y Unit: US$ million 1Q19 2Q19 Q-Q 1H18 1H19 y-y Total Revenue 453 440 -3% 809 893 +10% Gross Profit Margin 21% 16% -5% 28% 18% -10% EBIT 57 39 -32% 167 96 -42% EBITDA 72 54 -25% 196 127 -35% N

  4. Slide 4: Cost discipline initiatives in current coal price environment

    We have done several initiatives to maintain our cost discipline in the current coal price environment Lowered strip ratio Average strip ratio Unit: bcm/t Reduced OB removal distance 13.1 Evaluated alternative fuel suppliers to get more competitive price 11.6 11.4 Reduced overhaul cost of heavy equi

  5. Slide 5: Digital initiatives to enable cost discipline along coal mining value chain

    Our latest digital initiatives would enable cost discipline along our coal mining value chain EXPLORATION MINE MINING HAULING & BARGING & GEO MODEL PLANNING OPERATION STOCKPILING SHIPPING Ecosystem Creation & Scale Up Learning Initiative Mining Dashboard Apps On-Site Digital Center Scale Up Joint Co

  6. Slide 6: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 6

  7. Slide 7: Operational Summary 2019

    Operational Summary 2019 2019 TARGET: 23.6 Mt* OUTPUT TREND East Unit: Mt Kalimantan 6.4 6.4 6.1 5.8 5.6 INDOMINCO 5.2 Bharinto Jorong 12.5 Mt Kitadin Bunyut Port Trubaindo TRUBAINDO 4.9 Mt EMBALUT 1.4 Mt Indominco BHARINTO Samarinda 3.1 Mt Balikpapan 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19e East 2Q18 3Q18 4Q

  8. Slide 8: Indominco Mandiri

    Indominco Mandiri SCHEMATIC OUTPUT TREND 2019 target: 12.5 Mt Operations Unit: Mt Ports 3.9 Hauling 3.7 0.5 3.3 3.1 Stockpile 2.8 0.4 2.9 West Block 0.5 0.4 0.1 0.5 W Block ROM Mine Crusher stockpile stockyard 3.3 3.4 East Block 2.7 2.8 2.7 E. Block 2.4 Bontang City 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19e 35

  9. Slide 9: Melak group – Trubaindo and Bharinto

    Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND 2019 target: TCM 4.9 Mt Unit: Mt Mahakam BEK 3.1 Mt 2.4 River 2.1 2.0 Bunyut 1.8 1.8 0.9 Port 1.7 0.7 0.7 0.7 0.7 0.7 Bharinto East Kalimantan Product coal conveyor, stacking, stockpile 40km 1.4 1.3 1.5 1.1 1.0 1.1 Trubaindo Mine to port Op

  10. Slide 10: Kitadin Embalut and Tandung Mayang

    Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND 2019 target: EMB 1.4 Mt Unit: Mt 0.4 0.3 0.3 0.3 0.3 TD. Mayang 0.2 Bontang city IMM WB IMM EB ROM Bontang stockpile Port 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19e Embalut S/R (bcm/t) 5km Mine to port - Embalut : 11.9x 10.1x 10.9x 9.5x 9.8x 12.8x Embalu

  11. Slide 11: Jorong

    Jorong SCHEMATIC OUTPUT TREND 2019 target: 1.7 Mt Unit: Mt 0.5 0.4 0.3 0.3 0.3 0.3 Pelaihari Haul road 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19e S/R (bcm/t) : 6.1x 6.5x 6.5x 10.5x 8.1x 5.9x 20km COMMENTS Jorong  2Q19 production achieved as according to target. Coal Operations terminal  Strip ratio in 2Q19 lo

  12. Slide 12: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 12

  13. Slide 13: Global coal demand trends: 2019 vs 2018

    Global coal demand trends: 2019 vs 2018 CHANGE COMMENTS 2019-18 (Mt)  Strong import growth in 1H is likely to slowdown in 2H due to high stocks and high domestic coal supply INDIA +17  Soft international coal prices and volatility in domestic supply is making import more attractive for non-power s

  14. Slide 14: Global coal supply trends: 2019 vs 2018

    Global coal supply trends: 2019 vs 2018 CHANGE COMMENTS 2019-18 (Mt)  Expect significant production growth  Rain and weak global demand is the key risk for export growth INDONESIA +39  Steep decline coal prices will make some producers running at loss  Uncertainty on government regulations remai

  15. Slide 15: ITM coal sales 1H19

    ITM coal sales 1H19 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 1H19 4.0 Mt 2.0 Mt Malaysia Taiwan Korea 2% Vietnam 3% 0.4 Mt 3% 0.5 Mt Hongkong 4% 0.8 Mt 4% 0.5 Mt Thailand China KOREA 5% 33% 0.6 Mt CHINA 0.3 Mt Bangladesh VIETNAM 0.6 Mt 5% HK 1.5 JAPAN 0.2 Mt Philippines INDIA TAIWAN 0.8 Mt 6%

  16. Slide 16: Indicative coal sales 2019

    Indicative coal sales 2019 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Uncontracted Unsold 7% 7% Indexed 22% 71% Contracted 93% Contracted Fixed TARGET SALES 2019: 26.5 Mt 16

  17. Slide 17: ITM ASPs vs thermal coal benchmark prices

    ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/ton 200 Monthly NEX  2Q19 ASP weaker for ITM, shadow the 150 150 global coal price movement 100 50  ITM ASP: US$66.7/t (-7% QoQ) 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 130  NEX (Au

  18. Slide 18: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIALREVIEW FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 18

  19. Slide 19: Sales revenue

    Sales revenue Unit: US$ million -3% QoQ +2% YoY 453 431 440 42 56 48 Others -14% (QoQ) ; +13% (YoY) 18 21 23 Jorong +10% (QoQ) ; +29% (YoY) 21 15 Kitadin +75% (QoQ) ; +26% (YoY) 27 62 76 75 Bharinto -1% (QoQ) ; +21% (YoY) 126 117 Trubaindo -3% (QoQ) ; -10% (YoY) 114 Others Jorong Kitadin 247 233 Ind

  20. Slide 20: Average gross margin

    Average gross margin Avg. 1H18: 28% Unit : US$ Million Revenue 1H19: 18% GPM (%) 453 440 247 233 431 215 126 117 114 76 75 62 27 21 15 18 23 27% 21% 16% 21 21% 13% 8% 23% 32% 15% 31% 33% 24% 44% 38% 45% 15% (11%) 6% 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 2Q18 1Q19

  21. Slide 21: Cost analysis

    Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Avg. 1H18: 11.4 Unit: US$/t Avg. 1H18: $50.2/t Unit: Bcm/t 1H19: 12.4 1H19: $54.2/t 55.1 13.2 50.2 51.8 51.7 48.0 Non-coal 10.8 10.8 11.1 10.5 49.0 48.5 Coal 44.5 43.7 45.3 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Note: Based on pro

  22. Slide 22: EBITDA

    EBITDA Unit: US$ million -25% QoQ -42% YoY 93 1 72 Others n.m (QoQ) 8 Kitadin 15 5 54 +113% (QoQ) Others 19 Bharinto Jorong 20 2 -34% (QoQ) 11 Trubaindo Kitadin 30 12 -61% (QoQ) Bharinto 44 12 Indominco Trubaindo -37% (QoQ) 23 14 Indominco Jorong (4) (1) (2) n.m (QoQ) 2Q18 1Q19 2Q19 Note : Total EBI

  23. Slide 23: Net income

    Net income Unit: US$ million -23% QoQ -32% YoY 44 1 39 4 5 30 11 Kitadin Others 13 +87% (QoQ) Jorong 13 9 Bharinto -34% (QoQ) Kitadin 8 Trubaindo 17 Bharinto -61% (QoQ) Trubaindo 24 7 Indominco 11 -30% (QoQ) Indominco 8 Jorong (4) (1) n.m (QoQ) (3) (4) Others n.m (QoQ) 2Q18 1Q19 2Q19 Note : Total co

  24. Slide 24: Balance sheet

    Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) 374 368 Net D/E (times) 328 287 268 (32%) (36%) (39%) (38%) (33%) (0.32) (0.36) (0.39) (0.38) (0.33) 2015 2016 2017 2018 2Q19 2015 2016 2017 2018 2Q19 DEBT POSITION Unit: US$ million 4 0 0 0 0 2015 2016 2017 2018 2Q19 24

  25. Slide 25: 2019 Capital expenditure plan

    2019 Capital expenditure plan Units: US$ million 6.3 Indominco 11.7 3.7 Trubaindo Realized up to June 2019 14.4 2019 Capex plan 6.2 Bharinto 31.2 0.6 Jorong 2.4 8.5 TRUST 60.4 25.9 ITM Consolidated 121.9 Note: Total capex plan including Jakarta office after elimination 25

  26. Slide 26: Thank you

    Thank you 26

  27. Slide 27: Appendices

    Nit™ Appendices

  28. Slide 28: Income statement

    Income statement Unit: US$ thousand 1H19 1H18 YoY% Net Sales 892,701 808,896 10% Gross Profit 162,401 225,745 -28% GPM 18% 28% SG&A (66,315) (59,183) EBIT 96,086 166,562 -42% EBIT Margin 11% 21% EBITDA 126,717 195,657 -35% EBITDA Margin 14% 24% Net Interest Income / (Expenses) 2,917 1,428 FX Gain /

  29. Slide 29: Income statement

    Income statement Unit: US$ thousand 2Q19 1Q19 QoQ% Net Sales 439,676 453,025 -3% Gross Profit 68,789 93,612 -27% GPM 16% 21% SG&A (29,795) (36,520) EBIT 38,994 57,092 -32% EBIT Margin 9% 13% EBITDA 54,254 72,463 -25% EBITDA Margin 12% 16% Net Interest Income / (Expenses) 1,310 1,607 FX Gain / (Loss)

  30. 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% 99.00% 99.99% 99.00% 70.00% 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

PT Indo Tambangraya Megah — 2Q19 Earnings Presentation on 6ix