Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q3 2021 Earnings Presentation
30 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Nov 15, 2021
Slide 1: 3Q21 Results Investor & Analyst Update
3Q21 Results INVESTOR & ANALYST UPDATE 15 NOVEMBER 2021
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is intended solely for your reference. This presentation contains “forward-looking” statements that relate to future events, which are, by their nature, subject to sig nificant risks and uncertainties. All statements, other than statements of
Slide 3: 3Q21 Highlights
Conservation of white paperbark forest in Jorong mine area 01 3Q21 Highlights
Slide 4: 3Q21 highlights – upbeat financial results amidst extreme weather
3Q21 highlights – upbeat financial results amidst extreme weather Stellar coal price performance driving the financial performance and profitability up in 3Q21 despite mining activities slowed down due to torrential rain EBITDA generated at $291M (+111% Cash position gaining further from qoq or +720
Slide 5: ITM endorse public health cause of communities and employee
ITM endorse public health cause of communities and employee Simultaneous vaccinations in operational areas Protecting our Starting in July 2021 Headquarters employee Starting in July 2021 ITM carried out vaccination through Vaksinasi Gotong Royong (VGR) to our ITM carried out vaccination employee th
Slide 6: ITM way forward plan
ITM way forward plan M INING BUSINESS Investment Organic coal Greenfield coal Underground coal opportunities in clean reserve growth mines development gasification techs minerals Continue on mining GPK mines Currently in the Explore potential exploration activities development are feasibility study
Slide 7: Graha Panca Karsa (GPK) mine update
Graha Panca Karsa (GPK) mine update OUTPUT FORECAST Unit: Mt Indicative Only GPK 3.0 2.0 Bunyut Trial 1.0 1.0 Port Period 0.0 2021e 2022f 2023f 2024f 2025 Onward S/R (bcm/t) 4.0x 2.5x 2.5x 3.5x 4.5x NPR TCM GENERAL INFORMATION TIS • GPK is a low sulphur, low CV coal concession which has IUP operatio
Slide 8: EBP inaugural shipment marks the start as ITM coal trading arms
EBP inaugural shipment marks the start as ITM coal trading arms OPERATIONAL COVERAGE BUSINESS MODEL Normal or Off-take Shipment ITM Mines Bontang Coal Terminal Vessel Bunyut Port Blended Muara Musi Product Banyuasin Samarinda Port Muara 3rd Party Balikpapan Berau Coal Terminal Mines Customer Muara J
Slide 9: Operation Updates
Bunyut port equipped with telescopic coal loading technology 02 Operation Updates
Slide 10: Operational summary 2021
Operational summary 2021 SCHEMATIC OUTPUT TREND Unit: Mt 2021 Target: East Kalimantan 18.6-18.8 Mt Indominco 5.5 Trubaindo 4.9 4.7 Jorong 7.3 Mt 4.6 4.6 Kitadin 4.0 Mt 4.0 Bunyut Port Bharinto Kitadin Embalut Trub aindo 1.4 Mt Samarinda Indominco Bharinto Balikpapan Central 5.1-5.2 Mt 3Q20 4Q20 1Q21
Slide 11: Coal operations: Indominco Mandiri
Coal operations: Indominco Mandiri SCHEMATIC OUTPUT TREND Unit: Mt 2021 TARGET: 7.3 Mt Operations Barge Ports Hauling Stockpile 2.0 1.9 West Block 1.8 1.9 Crusher ROM Mine stockpile stockyard East Block Bontang City 3Q20 2Q21 3Q21 4Q21e 35km S/R (bcm/t) 11.9x 11.0x 11.5x 9.7x Sea conveyor Asphalt ha
Slide 12: Coal operations: Melak group – Trubaindo and Bharinto
Coal operations: Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND 2021 TARGET: TCM 4.0 Mt | BEK 5.1-5.2 Mt Unit: Mt 3.0 Mahakam 2.2 2.2 2.3 Bunyut Port Trubaindo River 1.4 East Kalimantan 0.9 1.0 Product coal conveyor, 1.4 stacking, 1.6 Bharinto 1.3 1.4 stockpile 0.8 Operations 40km 3Q20
Slide 13: Coal operations: Kitadin Embalut and Tandung Mayang
Coal operations: Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND 2021 TARGET: EMB 1.4 Mt Unit: Mt TD. Mayang Bontang city IMM WB IMM EB 0.4 0.4 0.5 0.3 ROM stockpile Bontang Port 3Q20 2Q21 3Q21 4Q21e Embalut S/R (bcm/t) 5km Mine to port - Embalut: 10.6x 17.0x 22.9x 15.5x Emb alut Port Maha
Slide 14: Coal operations: Jorong
Coal operations: Jorong SCHEMATIC OUTPUT TREND Unit: Mt 2021 TARGET: 0.9 Mt Pelaihari 0.3 0.3 0.2 0.2 Haul road 3Q20 2Q21 3Q21 4Q21e S/R (bcm/t) 7.8x 13.4x 11.8x 15.7x 20km COMMENTS Jorong ▪ 3Q21 production lower than target at 0.2 Mt as operation remained hampered by heavy rainfalls. Coal Operation
Slide 15: Coal Market Trends
Hauling road area at PT Indominco Mandiri 03 Coal Market Trends
Slide 16: Global thermal coal market
Global thermal coal market COAL DEMAND AND SUPPLY CHANGE – 2021E VS 2020 TRENDS Unit: Mt SUPPLY DEMAND DEMAND Current record prices are likely ease, but we are likely to be in a high-priced environment through the northern hemisphere winter, and likely well into 2022. High natural gas prices helped
Slide 17: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS ▪ Coal price has been keeping strengthening through 3Q21, mainly as a result of Unit: US$/t Monthly NEX strong demand together with tight supply. Particularly from late Aug. to Sep., 250 200 coal price jumped to the level
Slide 18: ITM coal sales 9M21
ITM coal sales 9M21 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 9M21 Vietnam 1% Korea 1% Others 2% 4.1 Mt Taiwan 3% India 3% 0.2 Mt 2.1 Mt Malaysia 4% China 28% S KOREA Bangladesh 6% JAPAN CHINA Thailand 0.9 Mt 7% BANGLADESH 1.0 Mt 0.4 Mt 0.5 Mt TAIWAN 1.4 Mt Phillippines INDIA THAILAND 10% 0.2 M
Slide 19: Indicative coal sales 2021
Indicative coal sales 2021 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Indexed 16% 100% 84% Contracted Fixed Target sales 2021: 20.2-20.4 Mt 19
Slide 20: Financial Summary
Power generation installation activity in Indominco site 04 Financial Summary
Slide 21: Highlights of 3Q21 and 9M21 results
Highlights of 3Q21 and 9M21 results 2Q21 3Q21 9M20 9M21 Coal sales (Mt) 4.9 5.8 15.4 14.8 ASP (US$/t) 80.3 111.0 53.8 89.0 Unit: US$ million Total Revenue 392 647 872 1,323 Gross Profit Margin 36% 47% 16% 40% EBIT 117 269 62 449 EBITDA 138 291 126 514 Net Income 76 154 39 271 21
Slide 22: Profitability – Income statement
Profitability – Income statement REVENUE GROSS PROFIT AND GROSS PROFIT MARGIN Unit: US$ million FY20: US$ 1,715 mio Unit: Gross profit is US$ million, GPM is % of revenue FY20: 17% FY19: US$ 1,185 mio FY19: 19% 1,323 47% 36% 40% 531 16% 16% 872 647 304 392 142 140 219 35 3Q20 2Q21 3Q21 9M20 9M21 3Q2
Slide 23: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Unit: Bcm/t Avg. FY20: 10.1 Unit: US$/t Avg. FY20: $41.9/t Avg. FY19: 10.9 Avg. FY19: $46.8/t 41.4 42.8 41.5 37.8 40.0 Non-Coal 10.0 10.5 10.6 10.5 10.9 40.0 41.4 40.2 41.3 Coal 36.2 3Q20 2Q21 3Q21 9M20 9M21 3Q20 2Q21 3Q21 9M20 9M21 FUEL PRI
Slide 24: Balance sheet
Balance sheet 9M21 BALANCE SHEET BANK LOAN DETAILS KEY RATIOS Unit: US$ million Unit: US$ million Borrowing 40 Debt to Equity (x) 0.05 Other Current maturities of 0.04 Cash Long-term bank loan Liabilities 510 432 0.01 9 FY19 FY20 9M21 31 Net Gearing (%) Other Equity Assets 1,038 FY19 FY20 9M21 1,000
Slide 25: 9M21 capital expenditure realization
9M21 capital expenditure realization Units: US$ million 1.4 Indominco 2.4 1.7 Trubaindo 3.6 Realized up to Sep 2021 2021 CAPEX plan 6.3 Bharinto 4.7 3.3 TRUST 11.5 6.8 Other 18.3 19.5 ITM Consolidated 40.5 Note: Total capex plan including Jak arta office after elimination 25
Slide 26: Q&A Session
Hauling road area at PT Bharinto Ekatama 05 Q&A Session
Slide 27: Appendix
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Slide 28: Income statement – 9M21 vs 9M20
Income statement – 9M21 vs 9M20 Unit: US$ thousand 9M21 9M20 YoY% Net Sales 1,323,345 871,884 52% Gross Profit 531,047 139,833 280% GPM 40% 16% SG&A (81,801) (77,548) EBIT 449,246 62,285 621% EBIT Margin 34% 7% EBITDA 514,490 125,680 309% EBITDA Margin 39% 14% Net Interest Income / (Expenses) 191 (3
Slide 29: Income statement – 3Q21 vs 2Q21
Income statement – 3Q21 vs 2Q21 Unit: US$ thousand 3Q21 2Q21 QoQ% Net Sales 647,042 392,063 65% Gross Profit 303,703 142,454 113% GPM 47% 36% SG&A (34,951) (25,755) EBIT 268,752 116,699 130% EBIT Margin 42% 30% EBITDA 290,728 138,044 111% EBITDA Margin 45% 35% Net Interest Income / (Expenses) (64) 3
Slide 30: ITM structure
ITM structure Banpu 65% INDONESIAN STOCK 35%* EXCHANGE Public ITMG PT Indo Tambangraya Megah Tbk. IPO 18th Dec 2007 95.07% SME 99.99% 99.99% 99.00% 99.99% 99.99% 99.99% 70.00% 99.90% 99.99% 99.99% Indominco Trubaindo Bharinto Kitadin Jorong NPR GPK TIS TRUST ITMI 94.80% PT Tambang Raya PT ITM Indone
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