Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q4 2022 Earnings Presentation
31 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Mar 1, 2023
Slide 1: Analyst Briefing 4Q22 Performance Result
Analyst Briefing 4Q22 Performance Result 1 March 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
T/A ITM Highlights
Slide 5: 4Q22 highlights – finishing strong amidst challenges
4Q22 highlights – finishing strong amidst challenges Committed as a good and responsible corporate Moving towards greener, smarter transformation Strong financial performance ITM 4Q22 ASP achieved 4Q22 production was lower $198/ton (-6% QoQ ITM and BRIN (National Research The construction of Bunyut
Slide 6: 2022 in review – setting up for transformative period
2022 in review – setting up for transformative period Financially sound year throughout opportunities and uncertainties Robust operations amidst challenges ITM is well-positioned in capturing the Our first year expanding in Central Kalimantan positively strong commodity price environments impact pro
Slide 7: 2022 business performance and accomplishment
2022 business performance and accomplishment Mining – Earnest effort, rewarding result 16.6 Mt • BEK mine expansion to Central Kalimantan area has increased its production from previously 1.0-1.1Mt per quarter into 1.7-1.8Mt per quarter. FY22 coal production • To ensure more competitive in term of o
Slide 8: ESG initiatives throughout 2022
ESG initiatives throughout 2022 Contributing to Indonesia new capital city “Nusantara” ITM has been appointed by the government and involve in “Nusantara” development by constructing Mentawir Nursery to supply Biomass co-firing Strengthening Deepening corporate seeds needed to support for smart fore
Slide 9: ESG related award and accolades
ESG related award and accolades 11 awards in Good Mining 4 awards in TOP GRC awards 2022 Practice Award (GMP) 2022, namely Top GRC Awards 2022 #4 Stars, 7 awards in CSR and Top CSR Award #5 Stars including Aditama Awards that was The Most Committed GRC Leader 2022, Sustainable Rural and CSR commitme
Slide 10: 2023 MINE goals: continue to excel and grow transformatively
2023 MINE goals: continue to excel and grow transformatively M profitability with I corporate value through N corporate culture EESG practices and optimized asset Greener, Smarter through Banpu Heart digital savviness business expansion • Achieve coal production and • Renewable business expansion •
Slide 11: ITM transformation journey: embracing future, realizing our vision
ITM transformation journey: embracing future, realizing our vision Supporting Coal mining infrastructures Optimizing the existing business and beyond Before 2020 Renewable Well-established as and others traditional coal miner, we redefined our purpose to 2023-2025 Manpower and deliver more business
Slide 12: ITM way forward: a diversified energy company
ITM way forward: a diversified energy company MINING ENERGY SERVICES RENEWABLES & OTHERS Coal mining Contractor business Solar farm Through organic Capacity expansion Solar PV hybrid exploration and and business process powerplant greenfield mine improvement development Coal trading Solar rooftop Op
Slide 13: Coal Market Trends
ITM Coal Market Trends
Slide 14: Global thermal coal market
Global thermal coal market COAL DEMAND AND SUPPLY CHANGE – 2023E VS 2022 TRENDS Unit: Mt SUPPLY DEMAND DEMAND In 2023, the coal market is expected to remain relatively calm compared to 2022, although prices is expected to remain at current high levels. Although winter demand won’t be as strong as or
Slide 15: ITM ASP vs thermal coal benchmark prices
ITM ASP vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS ▪ The overall seaborne premium thermal coal market remained relatively strong Unit: US$/t Monthly NEX through 4Q22, particularly in the later part of the quarter, mainly due to the wet 450 weather in major coal fields in N
Slide 16: ITM coal sales
ITM coal sales FY22 COAL SALES BREAKDOWN BY DESTINATION COAL SALES FY22 Bangladesh 5% Others 0.1 Mt 7% Thailand 5% China EUROPE 31% 5.9 Mt India 6% FY22 Sales Philippines 8% 18.9 Mt 2.9 Mt Japan 15% Indonesia JAPAN 22% CHINA 1.1 Mt 0.1 Mt 0.4 Mt 1.0 Mt HONGKONG TAIWAN INDICATIVE COAL SALES FY23 INDI
Slide 17: Operational Updates
Operational Updates
Slide 18: Operational summary
Operational summary 2023 Target: 16.6-17.0Mt Unit: Mt 4.9 4.6 4.3 East Kalimantan 3.8 IMM 6.4 Mt GPK 0.2 Mt Bontang Coal TCM Terminal Bunyut 2.7 Mt Port 4Q21 3Q22 4Q22 1Q23e TIS SR (bcm/t) 9.6x 10.2x 11.0x 11.8x 0.03 Mt Samarinda BEK 6.8 Mt Central Balikpapan Kalimantan ▪ 4Q22 production was below t
Slide 19: Coal operations: Indominco Mandiri
Coal operations: Indominco Mandiri 2023 Target: 6.4Mt Unit: Mt Indominco 1.9 2.0 1.6 1.4 Bontang City West Block East Block Sea conveyor Asphalt haul road 4Q21 3Q22 4Q22 1Q23e Santan River 9.6x 8.9x 10.5x 13.1x SR (bcm/t) Bontang port Inland conveyor ▪ Despite heavier rainfalls than expected, 4Q22 p
Slide 20: Coal operations: Trubaindo Coal Mining
Coal operations: Trubaindo Coal Mining 2023 Target: 2.7Mt Unit: Mt Mahakam River Bunyut Port 1.2 East Kalimantan 0.9 Kedangpahu 0.8 River 0.6 North Block Trubaindo 4Q21 3Q22 4Q22 1Q23e SR (bcm/t) 9.0x 10.8x 12.7x 16.7x South Block 1 Heading toward Bharinto South Block 2 ▪ 4Q22 production exceeded th
Slide 21: Coal operations: Bharinto Ekatama
Coal operations: Bharinto Ekatama 2023 Target: 6.8Mt Unit: Mt Mahakam Bunyut River Port East 1.8 1.7 1.6 Kalimantan Kedangpahu River 1.2 Central Kalimantan 4Q21 3Q22 4Q22 1Q23e SR (bcm/t) 6.6x 10.6x 10.4x 8.7x Bharinto South Kalimantan ▪ 4Q22 actual production achieved at 1.8Mt, slightly below than
Slide 22: Coal operations: Jorong Barutama Greston
Coal operations: Jorong Barutama Greston 2023 Target: 0.5Mt Unit: Mt Pelaihari Hauling road 0.2 0.2 0.2 0.1 4Q21 3Q22 4Q22 1Q23e SR (bcm/t) 15.5x 17.4x 15.5x 17.4x Jorong Java Sea Jorong Port ▪ 4Q22 production achieved lower than target at 0.2Mt with Operations maintained strip ratio at 15.5x. The p
Slide 23: Financial Updates
Nitm Financial Updates
Slide 24: Profitability – Income statement
Profitability – Income statement SALES VOLUME AND ASP REVENUE Unit: Mt and US$/t Unit: US$ million 210.5 198.1 192.0 Capturing the opportunity on 3,636 143.1 commodity supercycle 103.2 Robust financial performance as 2,077 revenue/EBITDA/net profit FY22 20.1 18.9 1,195 1,020 increased by 75%/101%/15
Slide 25: Cost analysis
Cost analysis TOTAL COST BREAKDOWN Unit: US$/t 100 109 94 ▪ Average total cost per ton (excluding royalty) rose 70 32 59 Royalty to $81/t in 4Q22 impacted by: 18 28 27 12 1) Slight increase on strip ratio. 4Q21 3Q22 4Q22 81 FY21 FY22 2) Lower production volume affecting unit cost. 67 67 SG&A expense
Slide 26: Balance sheet and key ratios
Balance sheet and key ratios FY22 BALANCE SHEET BANK LOAN DETAILS KEY RATIOS Unit: US$ million Unit: US$ million Debt to Equity (x) Borrowing 26 0.05 Other Liabilities Current maturities of 0.03 664 Long-term bank loan Cash 0.01 1,430 FY20 FY21 FY22 13 13 Net Gearing (%) Equity FY20 FY21 FY22 1,950
Slide 27: Capital expenditure
Capital expenditure Unit: US$ million Total FY22 CAPEX actual: $36.1M 39.9 1.6 Total FY23 CAPEX budget: $84.3M 14.7 18.1 18.7 18.0 11.9 8.0 0.7 7.2 5.9 2.4 11.7 1.8 2.7 1.8 3.1 0.1 FY22 FY23B FY22 FY23B FY22 FY23B FY22 FY23B FY22 FY23B Coal mines TRUST Greenfield Renewable Others2 projects1 Indominc
Slide 28: Q&A Session
N ITM O&A Session
Slide 29: Income statement – 4Q22 vs 3Q22
Income statement – 4Q22 vs 3Q22 Unit: US$ thousand 4Q22 3Q22 QoQ (%) Net Revenues 1,019,775 1,194,897 (15%) Gross Profit 487,682 657,550 (26%) Gross Profit Margin 48% 55% EBITDA 441,529 629,516 (30%) EBITDA Margin 43% 53% EBIT 409,608 603,744 (32%) EBIT Margin 40% 51% Selling Expenses 63,079 42,579
Slide 30: Income statement – FY22 vs FY21
Income statement – FY22 vs FY21 Unit: US$ thousand FY22 FY21 YoY(%) Net Revenues 3,636,213 2,076,813 75% Gross Profit 1,894,392 916,533 107% Gross Profit Margin 52% 44% EBITDA 1,783,077 885,341 101% EBITDA Margin 49% 43% EBIT 1,682,716 791,182 113% EBIT Margin 46% 38% Selling Expenses 169,764 100,41
Slide 31: ITM structure
ITM structure Banpu 65.00% INDONESIAN STOCK 35.00% EXCHANGE Public ITMG PT Indo Tambangraya Megah Tbk. IPO 18th Dec 2007 95.07%1 SME 99.99% 99.99% 99.00% 99.00% 99.99% 99.99% 70.00% 99.99% 99.99% 70.00% Indominco Trubaindo Bharinto Jorong TIS NPR GPK Kitadin TRUST IBP PT Tambang Raya Usaha Tama PT I
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