Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q1 2021 Earnings Presentation
33 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, May 11, 2021
Slide 1: 1Q21 Results
1Q21 Results INVESTOR & ANALYST UPDATE 11 MAY 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: 1Q21 Highlights
01 1Q21 Highlights
Slide 4: 1Q21 highlights – “poised” to capture coal uptrend benefit
1Q21 highlights – “poised” to capture coal uptrend benefit Uninterrupted mining ops and reliable logistics capabilities to capture current coal price hikes EBITDA generated at $86M (+40% qoq Cash position at $276M and or +48% yoy), supported by coal price consistent dividend payout, ready to recover
Slide 5: ITM Plus Main Goals in 2021
ITM 4 Plus Main Goals in 2021 Taking care of our employees Maximize profitability of existing reserve Flagship business target ITM participated in ‘Gotong Royong’ vaccine to • Production Volume : 17.7-19.9 mtpa • Accelerate growth transition protect its employees both physically and • Sales Volume :
Slide 6: ESG Initiatives
ESG Initiatives ITM is committed to focus on ESG initiatives for future sustainability of the Company ENVIRONMENT SOCIAL GOVERNANCE • Green House Gas (GHG) • Human Capital Development • Sustainability Governance Emissions • Community Engagement • Business Ethics • Biodiversity • Community Developmen
Slide 7: ITM for Environment
ITM for Environment GHG Emission in MTon CO2 eq 2.383 1.955 1.666 2018 2019 2020 • Lower GHG emission in 2020 • Mangrove Seed Planted • 8.01% lower energy usage in • 100% Effluent Quality Standard vs 2019. Based on emission in 2020. As a way to preserve 2020. ITM lower its fossil fuel compliance in
Slide 8: ITM for Social
ITM for Social • 73% Employee Engagement • 100% of WIUP Covered by CD • Providing COVID Assistance in 2020. in 2020. Ensuring measurement of Program in 2020. ITM ensure its CD Distributed across communities around employee satisfaction with the program reach the entire mining areas ITM’s mining oper
Slide 9: ITM for Governance
ITM for Governance • Organization Structure Build for • Code of Conduct internalization. ITM • Business Continuity Plan Deployment. Sustainability. Apart from the usual actively campaign the internalization of its During pandemic condition, ITM rapidly governance structures (i.e GMS, BOC, code of co
Slide 10: Operation Updates
02 Operation Updates
Slide 11: Operational summary 2021
Operational summary 2021 SCHEMATIC OUTPUT TREND Unit: Mt 2021 Target: East Kalimantan 17.7-19.9* Mt Indominco Trubaindo 4.9 4.9 7.1-7.2 Mt 4.5 4.4 4.6 3.9 Mt Jorong 4.0 Kitadin Bunyut Port Bharinto Graha Panca Kitadin Embalut 1.7 Mt Trub aindo 0.1-0.3 Mt Samarinda Indominco Bharinto Balikpapan Centr
Slide 12: Coal operations: Indominco Mandiri
Coal operations: Indominco Mandiri SCHEMATIC OUTPUT TREND Unit: Mt 2021 TARGET: 7.1-7.2 Mt Operations Barge Ports Hauling Stockpile 2.5 West Block Crusher 2.3 ROM Mine 1.8 1.8 stockpile stockyard East Block Bontang City 1Q20 4Q20 1Q21 2Q21e 35Km S/R (bcm/t) 10.1x 10.3x 12.5x 9.9x Sea conveyor Asphal
Slide 13: Coal operations: Melak group – Trubaindo and Bharinto
Coal operations: Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND Unit: Mt 2021 TARGET: TCM 3.9 Mt | BEK 3.5-5.5 Mt Mahakam River Bunyut Port East Kalimantan 2.0 2.3 Product coal conveyor, 1.5 1.7 0.9 0.9 Trubaindo stacking, 0.7 stockpile 1.0 1.1 1.0 1.4 Bharinto Operations 0.5 40km Mine
Slide 14: Coal operations: Kitadin Embalut and Tandung Mayang
Coal operations: Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND Unit: Mt 2021 TARGET: EMB 1.7 Mt TD. Mayang 0.5 Bontang city IMM WB IMM EB 0.2 0.3 0.1 ROM stockpile Bontang Port 1Q20 4Q20 1Q21 2Q21e Embalut S/R (bcm/t) 5km Mine to port - Embalut: 16.4x 10.6x 18.6x 15.2x Emb alut Port Maha
Slide 15: Coal operations: Jorong
Coal operations: Jorong SCHEMATIC OUTPUT TREND Unit: Mt 2021 TARGET: 1.3-1.4 Mt Pelaihari 0.3 0.3 0.2 0.2 Haul road 20km 1Q20 4Q20 1Q21 2Q21e S/R (bcm/t) 11.3x 7.4x 11.6x 9.8x Jorong COMMENTS Coal ▪ 1Q21 production remained at 0.2 mt as operation hampered by terminal Operations heavy rainfalls impac
Slide 16: Coal Market Trends
03 Coal Market Trends
Slide 17: Global thermal coal market
Global thermal coal market COAL DEMAND AND SUPPLY CHANGE – 2021E VS 2020 TRENDS Unit: Mt SUPPLY DEMAND DEMAND Economic recovery supports coal demand but a resurgence in coronavirus infections slower the growth. Trade tensions between China and Australia has been elevated and are likely to continue t
Slide 18: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Monthly NEX ▪ Coal price surge momentum continued into 1Q21 mainly as a result Unit: US$/t 200 of the Northern Hemisphere cold snap, however the surge started 150 losing steam as milder temperatures kicked-in alongside do
Slide 19: ITM coal sales 1Q21
ITM coal sales 1Q21 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 1Q21 Others 4% Taiwan 2% Malaysia 4% Korea 4% Japan 0.2 Mt India 5% 23% 0.8 Mt 0.9 Mt S KOREA JAPAN Phillippines CHINA 6% 0.4 Mt BANGLADESH Thailand 0.1 Mt 0.2 Mt 0.4 Mt TAIWAN 9% THAILAND 0.3 Mt China 19% INDIA 0.2 Mt PHILIPPINES 2.
Slide 20: Indicative coal sales 2021
Indicative coal sales 2021 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Unsold 33% Fixed Uncontracted 27% 33% 67% Unpriced 2% Contracted 39% Indexed Target sales 2021: 20.7-22.9 Mt 20
Slide 21: Financial Summary
01 02 03 04 05 1Q21 Operation Coal Market Financial Q&A Highlights Updates Trends Summary Session
Slide 22: Highlights of 1Q21 results
Highlights of 1Q21 results 4Q20 1Q21 1Q20 Coal sales (Mt) 5.8 4.1 5.8 ASP (USD/t) 52.7 68.1 58.7 Unit: US$ million Total Revenue 313 284 366 Gross Profit Margin 19% 30% 18% EBIT 42 64 36 EBITDA 61 86 58 Net Income (1) 42 14 22
Slide 23: Revenue consolidated
Revenue consolidated Unit: US$ million -9% (QoQ) -22% (YoY) Other Jorong Others Kitadin Bharinto -23% (QoQ); -59% (YoY) Trubaindo Indominco Jorong 366 -40% (QoQ); -51% (YoY) 59 313 19 284 Kitadin 11 31 16 24 +24% (QoQ); 9 9 +6% (YoY) 79 12 82 Bharinto 107 +31% (QoQ); 120 +36% (YoY) 94 57 Trubaindo -
Slide 24: Average gross margin
Average gross margin Avg. FY20: 17% Unit : US$ Million Revenue GPM (%) 366 155 313 284 141 148 120 107 94 82 79 57 19 16 27% 11 9 12 9 30% 20% 27% 32% 18% 19% 14% 16% 24% 20% 17% 3% 8% -6% -1% -11% -27% 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 1Q20 4Q20 1Q21 Indomin
Slide 25: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Unit: Bcm/t Avg. FY20: 10.1 Unit: US$/t Avg. FY2020: $41.9/t 50.0 11.5 44.6 10.7 10.8 41.1 38.7 10.0 37.9 Non-Coal 8.9 45.1 39.8 43.8 Coal 36.1 37.5 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 FUEL PRICE TOTAL COST* Unit: US$/Ltr Avg.
Slide 26: EBITDA
EBITDA +40% (QoQ) +48% (YoY) Unit: US$ million Other Kitadin Jorong 86 -67% (QoQ) 3 -14% (YoY) Kitadin 1 Bharinto Bharinto +195% (QoQ) Trubaindo 9 +334% (YoY) Indominco 58 61 3 4 7 2 34 5 Trubaindo -29% (QoQ) 12 +35% (YoY) 8 24 30 Indominco 8 +110% (QoQ) +34% (YoY) (1) (3) (3) (3) 1Q20 4Q20 1Q21 Jor
Slide 27: Net income
Net income 1Q20 NET INCOME 4Q20 NET INCOME Other including: Other including: 58 • FX Gain/(Loss) (USD/IDR): $(6.7) M 61 • FX Gain/(Loss) (USD/IDR): $2.8M • Derivative Gain/(Loss) (commodities): $(0.8)M • Derivative Gain/(Loss) (commodities): $(7.4)M • Other gain/(loss): $16.3M • Other gain/(loss): $
Slide 28: Balance sheet
Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) 374 368 Net D/E (times) 328 276 231 (36%) (39%) (17%) (25%) (38%) (21%) 159 (0.36) (0.39) (0.38) (0.17) (0.21) (0.25) 2016 2017 2018 2019 2020 1Q21 2016 2017 2018 2019 2020 1Q21 DEBT POSITION Unit: US$ million 43 44 11 0 0 0 0
Slide 29: 1Q21 Capital expenditure realization
1Q21 Capital expenditure realization Units: US$ million 0.4 Indominco 2.4 0.3 Trubaindo 3.6 Realized up to Mar 2021 2021 Capex plan 0.4 Bharinto 4.7 1.2 TRUST 11.5 0.4 Other 18.3 2.7 ITM Consolidated 40.5 Note: Total capex plan including Jak arta office after elimination 29
Slide 30: Q&A Session
05 Q&A Session
Slide 31: Nit
Nit
Slide 32: 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% 99.99% 99.99% 99.99% 99.99% 70.00% 99.90% 99.99% 99.99% Indominco Trubaindo Bharinto Kitadin Jorong NPR GPK TIS TRUST ITMI 91.99% PT Tambang Raya PT ITM Indone
Slide 33: Income statement
Income statement Unit: US$ thousand 1Q21 4Q20 1Q20 QoQ% YoY% Net Sales 284,240 313,452 365,903 -9% -22% Gross Profit 84,890 59,317 66,022 43% 29% GPM 30% 19% 18% SG&A (21,095) (17,691) (30,199) 19% -30% EBIT 63,795 41,626 35,823 53% 78% EBIT Margin 22% 13% 10% EBITDA 85,717 61,359 57,922 40% 48% EBI
PT Indo Tambangraya Megah — Q1 2021 Earnings Presentation on 6ix