Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q3 2023 Earnings Presentation
28 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Nov 15, 2023
Slide 1: Analyst Briefing 3Q23 Performance Result
Analyst Briefing 3Q23 Performance Result 15 November 2023
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 significant risks and uncertainties. All statements, other than statements of
Slide 3: Agenda
1 Highlights 2 Coal Market Trends AGENDA 3 Operational Updates 4 Financial Updates 5 Q&A Session 3
Slide 4: Highlights
Nitm Highlights
Slide 5: 3Q23 highlights – optimized operational performance
3Q23 highlights – optimized operational performance BUSINESS PERFORMANCE GOOD RESPONSIBLE MINER Deliver strong production Completion of Mentawir nursery 3Q23 production level was higher by 10% from target Indonesian President Jokowi visited Mentawir Nursery at 5.3Mt (+20% QoQ / +13% YoY), supported
Slide 6: Benefitting from Graha Panca Karsa (GPK)
Benefitting from Graha Panca Karsa (GPK) • GPK coal production will enrich ITM total production not only as Strengthening ITM portfolio Operations an additional volume but also in term of quality (low sulfur). GPK concession is Barge Ports under IUP permit with • ITM through its experienced team off
Slide 7: GPK preparation to start in 2024
GPK preparation to start in 2024 Tracking plan hauling road 2022 – 1Q23 Timber cruising activities 3Q23 and onwards Land clearing for hauling road • Tracking plan for hauling road preparation. • Timber cruising activity. • Land clearance and site preparation for port area. • Bidding process of suppo
Slide 8: Renewable business development and update
Renewable business development and update Renewable Strategic Direction About Suryanesia Synergies Energy Generation Energy Technology • Suryanesia operates a Solar-as-a-Service Expanding renewable capacity through business model. investment in business partner. • Offers solar rooftop installation,
Slide 9: ITM way forward: a diversified energy company
ITM way forward: a diversified energy company MINING ENERGY SERVICES RENEWABLES & OTHERS Solar-based Contractor business renewable Capacity expansion Solar PV hybrid Coal mining and business process powerplant and improvement. solar rooftop. Utilizing existing mine and conduct organic exploration Co
Slide 10: Coal Market Trends
ITM Coal Market Trends
Slide 11: Global thermal coal market
Global thermal coal market COAL DEMAND AND SUPPLY CHANGE – 2023E VS 2022 TRENDS Unit: Mt SUPPLY DEMAND DEMAND In 2023, seaborne thermal coal is expected to experience the largest growth in history. While Europe and JKT* expect reduced coal use, especially for Pacific high CV coal. Strong demand for
Slide 12: ITM ASP vs thermal coal benchmark prices
ITM ASP vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/t ▪ Seaborne premium thermal coal market has been fairly stable through Q3. The weekly GCNewc has been fluctuating in a narrow Monthly NEX 450 range between $120-160. 400 460 350 ▪ The lower quality thermal coal
Slide 13: ITM coal sales
ITM coal sales 9M23 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 9M23 Others Bangladesh 3% 9% 0.2 Mt EUROPE India 4% China 5.4 Mt Thailand 5% 35% 9M23 1.9 Mt Philippines 8% Sales 0.1 Mt 15.3 Mt KOREA JAPAN Japan 12% Indonesia CHINA 23% 0.3 Mt 0.2 Mt 0.6 Mt 0.5 Mt HONGKONG TAIWAN INDICATIVE COAL SA
Slide 14: Operational Updates
Operational Updates
Slide 15: Operational summary 3Q23
Operational summary 3Q23 2023 Target: 16.9 Mt Unit: Mt 5.3 4.6 4.4 East Kalimantan 3.5 IMM 6.5 Mt TCM Bontang Coal Bunyut Terminal 2.8 Mt Port 3Q22 2Q23 3Q23 4Q23e SR (bcm/t) 10.2x 12.5x 11.7x 13.1x Samarinda BEK 7.1 Mt Central Balikpapan Kalimantan ▪ 3Q23 production achieved at 5.3Mt, exceeding tar
Slide 16: Coal operations: Indominco Mandiri
Coal operations: Indominco Mandiri 2023 Target: 6.5Mt Unit: Mt Indominco 2.0 1.7 1.7 1.6 West Block East Block Asphalt haul Sea road conveyor 3Q22 2Q23 3Q23 4Q23e SR (bcm/t) 8.9x 14.1x 13.9x 14.8x Bontang port Inland conveyor ▪ Supported by favorable weather, 3Q23 production achieved Operations the
Slide 17: Coal operations: Trubaindo Coal Mining
Coal operations: Trubaindo Coal Mining 2023 Target: 2.8Mt Unit: Mt Bunyut Port 0.9 1.0 East Kalimantan 0.7 0.4 North Block Trubaindo 3Q22 2Q23 3Q23 4Q23e SR (bcm/t) 10.8x 16.1x 13.1x 16.4x South Block 1 Heading toward Bharinto South Block 2 ▪ 3Q23 production of 1Mt exceeded the target of 0.8Mt due t
Slide 18: Coal operations: Bharinto Ekatama
Coal operations: Bharinto Ekatama 2023 Target: 7.1Mt Unit: Mt East Bunyut 2.3 Port Kalimantan 1.8 1.6 1.3 Central Kalimantan 3Q22 2Q23 3Q23 4Q23e SR (bcm/t) 10.6x 9.6x 9.7x 9.8x Bharinto South Kalimantan ▪ 3Q23 production achieved at 2.3Mt, higher than target of East Operations 2.1Mt. The higher pro
Slide 19: Coal operations: Jorong Barutama Greston
Coal operations: Jorong Barutama Greston 2023 Target: 0.6Mt Unit: Mt 0.2 Hauling road 0.2 0.1 0.1 3Q22 2Q23 3Q23 4Q23e SR (bcm/t) 17.4x 11.0x 10.4x 13.8x Jorong Java Sea Jorong Port ▪ 3Q23 production of 0.2Mt with lower strip ratio at 10.4x, supported Operations by favorable weather, low rain and lo
Slide 20: Financial Updates
7 / ITM Financial Updates
Slide 21: Profitability – Income statement
Profitability – Income statement SALES VOLUME AND ASP REVENUE Unit: Mt and US$/t Unit: US$ million 210.5 1,195 113.5 98.7 Normalized coal benchmark price impacting revenue 614 3Q23 sales volume recorded flattish growth 527 5.7 5.4 5.3 of -1% QoQ / -6% YoY, while 3Q23 revenue decreased by 14% QoQ / 5
Slide 22: Cost analysis
Cost analysis TOTAL COST BREAKDOWN Unit: US$/t 100 80 74 ▪ Consistent cost control measures resulted in continuous 32 15 14 Royalty decline on total cost excluding royalty from $65/ton in 2Q23 67 65 60 to $60/ton in 2023 (-7% QoQ), despite fuel price increase SG&A expenses and other macroeconomics u
Slide 23: Balance sheet and key ratios
Balance sheet and key ratios 9M23 BALANCE SHEET BANK LOAN DETAILS KEY RATIOS Unit: US$ million Unit: US$ million Borrowing Debt to Equity (x) 30 Other 0.03 Liabilities Current maturities of Cash 429 long-term bank loan 0.02 0.01 872 FY21 FY22 9M23 14 15 Net Gearing (%) Total Equity FY21 FY22 9M23 Ot
Slide 24: Capital expenditure
Capital expenditure Unit: US$ million Total 9M23 CAPEX: 22.3 $26.7M 1.0 Total FY23E CAPEX: $44.4M 7.1 15.0 0.7 4.7 11.7 9.2 7.1 5.6 5.3 4.0 2.6 5.0 4.0 1.0 0.9 1.0 9M23 FY23E 9M23 FY23E 9M23 FY23E 9M23 FY23E 9M23 FY23E 1 Coal mines TRUST Greenfield projects Renewable Others Indominco Trubaindo Bhari
Slide 25: Q&A Session
NITM Q&A Session
Slide 26: Income statement – 9M23 vs 9M22
Income statement – 9M23 vs 9M22 Unit: US$ thousand 9M23 9M22 YoY(%) Net Revenues 1,826,662 2,616,438 (30%) Gross Profit 610,194 1,406,710 (57%) Gross Profit Margin 33% 54% Selling Expenses (90,866) (106,685) (15%) General And Administration Expenses (30,053) (26,917) 12% EBIT 489,275 1,273,108 (62%)
Slide 27: Income statement – 3Q23 vs 2Q23
Income statement – 3Q23 vs 2Q23 Unit: US$ thousand 3Q23 2Q23 QoQ (%) Net Revenues 527,473 613,603 (14%) Gross Profit 151,948 191,330 (21%) Gross Profit Margin 29% 31% Selling Expenses (27,154) (28,423) (4%) General And Administration Expenses (9,584) (9,701) (1%) EBIT 115,210 153,206 (25%) EBIT Marg
Slide 28: ITM structure
ITM structure Banpu 65% INDONESIAN STOCK 35%* EXCHANGE Public ITMG PT Indo Tambangraya Megah Tbk. IPO 18th Dec 2007 95.07%1 SME 99.99% 70.00% 99.99% 99.99% 99.00% 99.00% 99.99% 99.99% 70.00% 99.99% TRUST IBP Indominco Trubaindo Bharinto Jorong TIS GPK Kitadin PT Tambang Raya Usaha Tama PT ITM Bhinne
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