PT Indika Energy Tbk · IDX:INDY
PT Indika Energy Tbk — 9M22 Earnings Presentation
60 slides from PT Indika Energy Tbk's earnings presentation, November 2022
Slide 1: Company Update 9M22
Company Update 9M22 PT Indika Energy Tbk. Nov 2022
Slide 2: Indika Energy - To Energize Indonesia for a Sustainable Future
Indika Energy - To Energize Indonesia for a Sustainable Future ✓ An Investment Holding Company with portfolio spanning across Indonesia, especially in energy value chain. ✓ Well-placed to capture domestic economic growth and global economic recovery ✓ Provides complementary products and services to
Slide 3: Indika Energy – 9M22 Revenue Contribution
Indika Energy – 9M22 Revenue Contribution Revenue 9M22 : US$3,133.4m Revenue 9M21 : US$1,993.8m Non-coal Non-coal 11.4% 9.7% 1% 1% 7% 2% 8% 3% 9% 13% Kideco 5,8% 5% MUTU Coal Trading 7% Tripatra Interport 70% Others 13,6% 74% 78,1% 7,1% Coal Coal 88.6% 90.3% *) PTRO’s figures have been excluded 3
Slide 4: Indika Energy’s Consolidated Income Statement Highlights
Indika Energy’s Consolidated Income Statement Highlights Year To Date Summary P&L 3Q22 3Q21 YoY 2Q22 QoQ 9M22 9M21 YTD YoY Revenues 1,194.4 829.1 44.1% 1,108.2 7.8% 3,133.4 1,993.8 57.2% (2,047.1 COGS (777.0) (568.6) 36.7% (700.1) 11.0% (1,474.3) 38.9% ) Gross Profit 417.4 260.5 60.2% 408.1 2.3% 1,0
Slide 5: 9M22 Business Highlights – Revenue Breakdown
9M22 Business Highlights – Revenue Breakdown 9M22 9M21 Subsidiaries (US$ mn) (US$ mn) YoY Chg Remarks ASP ▲ 55.4% (+US$30.0/ton) from US$54.2/ton in 9M21 to US$84.2/ton Kideco 49.1% in 9M22, Sales Volume ▼ -4.1% (-1.1MT) to 26.3MT in 9M22 due to lower 2,216.2 1,486.1 annual target production in 2022
Slide 6: 9M22 Business Highlights- Gross Profit/ Margin
9M22 Business Highlights- Gross Profit/ Margin 9M22 9M21 YoY Subsidiaries Remarks (US$ mn) (US$ mn) Change Gross Profit 1,086.3 519.5 109.1% Gross Margin (%) 34.7% 26.1% ASP ▲ 55.4% (+US$30.0/ton) from US$54.2ton in 9M21 to US$84.2/ton in 9M22 Sales Volume ▼ 4.1% (-1.1MT) from 27.4 MT in 9M21 to 26.
Slide 7: Indika Energy – Sound Balance Sheet
Indika Energy – Sound Balance Sheet Cash Breakdown by Subsidiaries LTM Free Cash Flow US$ million US$ million HoldCo & Others Kideco Tripatra 900 830 36 800 700 597 63 600 530 500 450 400 323 134 43 154 188 300 171 198 176 114 667 200 392 473 100 337 310 0 2018 2019 2020 2021 9M22 2018 2019 2020 202
Slide 8: Cash and Debt Position
Cash and Debt Position Cash and Debt Breakdown as of 30 Sept 2022 US$m 1) 1,233 1,172 149 33 178 1,085 961 Cash Debt Cash Other Financial Assets Bonds 2) Bank Loans 3) Other Loans 4) 1) Kideco: US$530.8m, Tripatra: US$36.1m, IIR: US$127.7m, Interport: US$7.5m, IMP: US$4.3m, IMG: US$9.5m; ITB: US$3.4
Slide 9: Highlights of Recent Key Events
Highlights of Recent Key Events New Fiscal Tariff • On 11 April 2022, the Government of Indonesia has issued a new regulation Peraturan Pemerintah No 15/2022 about taxation on coal miners, including new royalty tariff for CCOW holders. • With the new royalty tariff (from current 45%), IUPK holders w
Slide 10: Thermal Coal Price
Thermal Coal Price USD/ton 450 421 400 373 350 300 264 250 200 184 168 150 109 96 81 86 93 82 89 82 100 70 66 69 66 73 46 47 44 43 43 57 53 45 54 50 36 36 35 85 91 89 35 38 27 31 41 65 71 52 0 33 34 34 24 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 NEWC ICI-4 ASP Suppl
Slide 11: Indonesia Coal Outlook
Indonesia Coal Outlook • Supply remained stable in the end of August with some delays specially from South Kalimantan due to rains and high swell in transportation • Total production YTD Aug 22 was estimated 437.7 MT, rose 7.3% YoY or 66% of annual target of 663MT • Total export YTD Jun 22 reached 2
Slide 12: Operational Highlights Vs Corporate Guidance
Operational Highlights Vs Corporate Guidance 2022 2022 Budget 9M22 % Operational Data Guidance 9M22 9M21 % CAPEX Budget R (US$M) (US$M) KIDECO Kideco 17.0 11.5 67.5% Production (MT) 34.0 26.1 26.9 -2.9% Indika Resources 14.0 6.8 48.7% Strip Ratio (x) 5.4 5.1 5.1 -0.1% Indika Hold Co. 1.0 1.2 123.0%
Slide 13: Net-Zero
Indika Energy has set out bold aspirations as part 50% non-coal revenue by 2025 of its ESG commitment Net-Zero emissions by 2050 2
Slide 14: Our Diversified Business Portfolio
Our Diversified Business Portfolio
Slide 15: Transforming into a diversified business portfolio
Transforming into a diversified business portfolio Current: Coal as core business Future: Diversified Business Portfolio Business that ✓ Diversified Business relies on coal, from Portfolio resources, ✓ Significant growth services and ✓ Less volatility infrastructure ✓ ESG investment Funding - Key Co
Slide 16: Indika Energy People Know Today and The Future
Indika Energy People Know Today The Future of Indika Energy Strong capabilities across the entire coal value chain Unlocking sustainable development in Indonesia Logistic assets, EPC Field exploration of coal Energy Logistics & services, infrastructure, resources, production and trading GAPURA TERMI
Slide 17: Diversification Investments – Green Businesses: Electric 2W
Diversification Investments – Green Businesses ‘ Electric 2W – Establishment of Ilectra Motor Group (IMG) IMG is a national company which focuses on B2C premium markets initially with a view to dominate Indonesia market in all Indika Energy segments including B2B IMG is a joint-collaboration between
Slide 18: Ilectra Motor Group
Ilectra Motor Group Ilectra Motor Group (IMG) is a lifestyle mobility solution company with aspiration to become a leading electric two wheelers champion and prime mover of the local green mobility ecosystem • ALVA is a lifestyle mobility solution from IMG, part of Indika Energy, Alpha JWC Ventures,
Slide 19: Introducing Our Electric Motorcycle Brand : ALVA
Introducing Our Electric Motorcycle Brand : ALVA Alva Mobile APP 1. Remote On/Off 2. Bike Sharing Access 3. GPS Locator & Tracker 4. Battery Monitoring 5. Charging Station Locator 6. ALVA Experience Center Locator 7. ALVA Roadside Assistance 8. Monthly Saving Estimator 19
Slide 20: IMG’s Vision to be the Leading E-Mobility Brand In Indonesia
Diversification Investments – Green Businesses ‘ Electric 2W – IMG’s Vision to be the Leading E-Mobility Brand In Indonesia Leading e-mobility brand in Indonesia Preferred ecosystem partner & experience beyond bike (charge, app, partners) 20
Slide 21: EV 4W – Foxconn Indika Motor (FIM)
EV 4W – Foxconn Indika Motor (FIM) to support EV Ecosystem in Indonesia 100% Mitra Motor Foxteq Singapore Group (MMG) Pte Ltd 60% 40% Foxconn Indika Motor (FIM) • On 22 Sept 2022, through fully owned PT Mitra Motor Group (MMG) has established a JV with Foxteq Singapore Pte Ltd (Foxconn Group) to dev
Slide 22: EV Sector – To Develop EV Ecosystem in Indonesia
EV Sector – To Develop EV Ecosystem in Indonesia IBC MOU Electric Battery Industry Electric Vehicle Industry Supporting Industries Value Cell, ESS, Precursor, R&D Chain module exchange cathode, 2-wheel EV 4-wheel EV E-Bus of Battery & & battery stations anode pack EV & recycling INDY signed MOU toge
Slide 23: EV Sector – Government Sets Up Favourable Policy
EV Sector – Government Sets Up Favourable Policy in EV Sector • Indonesia has aligned with global efforts to adopt EVs as a mean to tackle GHG emissions. The government plans to introduce EVs to the public under the Low Carbon Fiscal Incentives Non-Fiscal Incentives Emission Vehicles(LCEV) scheme. •
Slide 24: Electric 2W – Indonesia is the 3rd Largest Market for 2W
Diversification Investments – Green Businesses Electric 2W – Indonesia is the 3rd Largest Market for 2W in the World 2W ownership penetration, by country, 2019-20 # owned per 100 population Indonesia EV vehicle sales1, Million vehicles Total Addressable Market ~US$ 7 Bn in 2035 E2W penetration2 1. I
Slide 25: Solar Power – EMITS
Diversification Investments – Green Businesses Solar Power – EMITS • Formed a JV to develop solar power business with Fourth Partner Energy Limited (4PEL), India’s leading solar developer, called Empat Mitra Indika Tenaga Surya (EMITS), with 51% stakes. • EMITS will provide a one-stop-shop, renewabl
Slide 26: Solar Power – EMITS has 50MWp Projects in the Pipeline
Diversification Investments – Green Businesses Solar Power – EMITS has Total of 50MWp Projects in the Pipeline • Have installed almost 1MWp in Kideco’s site and INDY’s office building in Bintaro area • Appr. 10MWp to be developed for INDY’s consumption • Projects come from various sectors, located a
Slide 27: Solar Power – Huge Untapped Solar PV Potential
Diversification Investments – Green Businesses Solar Power – Huge Untapped Solar PV Potential in Indonesia 500 GWp Solar PV Potential EMITS corporate structure Indika Tenaga Baru & Green Energy, Accelerated. 51% 49% JV Co Established in March 2021 Focused Area on C&I Market 27
Slide 28: Solar Power – Indonesia to Rely More on New and Renewable Energy
Diversification Investments – Green Businesses Solar Power – Indonesia is to Rely More on New and Renewable Energy (NRE) National Primary Energy Mix (MTOE) 2014 2025 NRE, 4.2 2050 Gas, NRE, 23 18.6 NRE, 31 Gas, 22 Gas, 24 Fuel, 43.0 Coal, Coal, Fuel, Coal, 25 34.2 30 25 Fuel, 20 ~400 MTOE 197 MTOE ~
Slide 29: Solar Power - Govt Boosts the Use of Solar PV
Diversification Investments – Green Businesses Solar Power - Govt Boosts the Use of Solar PV Policy To increase Solar Power capacity Utilisation of rooftop for solar panel RUEN • Target to develop solar power capacity by 2025 6.5GW 30% Requirement to utilize minimum of 30% rooftop area on government
Slide 30: Indika Nature – Biomass, Agroforestry, Carbon Offset
Diversification Investments – Green Businesses Indika Nature – Biomass, Agroforestry, Carbon Offset Energy Plantation Environment Services Agroforestry & (Carbon & Water) Non Timber Forest Product • Designated for planting Calliandra trees • Process of obtaining a carbon credit • Develop agricultura
Slide 31: Indika Nature – Biomass, Agroforestry, Carbon Offset
Diversification Investments – Green Businesses Indika Nature – Biomass, Agroforestry, Carbon Offset DIVA Energy Environment Agroforestry & Plantation Services Non-Timber Forest -Biomass- (Carbon & Water) Product TMK Jaya Bumi Paser Telaga Mas Kalimantan Trisetia Citagraha TCG 23,590 Ha 82,805 Ha 24,
Slide 32: Developing Gold Asset Project through Nusantara Resources
Diversification Investments – Minerals Developing Gold Asset Project through Nusantara Resources A Strategic investment in Nusantara Resources Limited. Nusantara owned 100% PT Masmindo Dwi Area which has sole rights to exploit in Awak Mas Gold Project Location : South Sulawesi, 370 km from Makasar P
Slide 33: Completed Further Acquisition to Accelerate Awakmas Gold Project
Diversification Investments – Minerals Completed Further Acquisition to Accelerate Development of Awakmas Gold Project Ownership in Gold Project Investment in Gold Project Indika energy has direct and indirect 100% ownership in Awakmas project Amount Period Investment (US$ M) Indika Energy Dec-18 5.
Slide 34: Divestment - Reducing Exposure in Coal Related Business
Divestment - Reducing Exposure in Coal Related Business Completed Completed PT Petrosea Tbk PT Mitrabahtera Segara Sejati Tbk ✓ One of strategic directions to diversify away from coal ✓ Signed CSPA to divest 69.8% stake in PTRO on 18 Feb ✓ Signed CSPA to divest 51.0% stake in MBSS on 6 Aug 22 to PT
Slide 35: Net-Zero
Indika Energy has set out bold aspirations as part 50% non-coal revenue by 2025 of its ESG commitment Net-Zero emissions by 2050 2
Slide 36: ESG: Setting 2025 Target Across Key ESG Metrics
ESG: Setting 2025 Target Across Key ESG Metrics for Indika Energy 36
Slide 37: Performance highlights across key ESG metrics in 9M 2022
Performance highlights across key ESG metrics in 9M 2022 29.0% 18.3% 13.0% Scope 1 GHG 9M 2022: 0.022 tCO2e/ton coal prod Gender Overall women representation emissions Target: 10% by 2025 Water 9M 2022: 2,964 ML equality Target: 10% by 2025 intensity withdrawal 18.2% 0.43% of EBIT Zero fatalities La
Slide 38: Key ESG initiatives to drive impact throughout the past year
Key ESG initiatives to drive impact throughout the past year Environmental Social Increased use of solar power Kideco’s ESG Day • Solar PV in INDY Bintaro office (313Kwp) • A 10-day program to increase employees’ • Solar PV in Interport Business Park, knowledge of ESG through competitions and Balikp
Slide 39: Comprehensive review of ESG-related policy framework
We also embarked on a comprehensive review of our company’s ESG- related policy framework As part of our efforts to improve our sustainability governance, we have developed and published five new policies on our website Contents Scope Governance Next Steps Mechanism Each policy outlines the key Thes
Slide 40: Expanded network by joining ESG-related associations
We also expanded our network by joining ESG-related associations Overview Overview The UN Global Compact is a conviction rooted in universal Indonesia Business Council for Sustainable Development principles to help the global marketplace to be more socially and (IBCSD) is a CEO-led association of co
Slide 41: Indika Energy’s ESG strategy and performance
We have established the Sustainability Committee to oversee Indika Energy’s ESG strategy and performance • Three of our subsidiaries have followed our footsteps in establishing their own Sustainability Committees Farid Harianto Eko Putro Sandjojo Indracahya Basuki Azis Armand Farid Harianto Hanif Dh
Slide 42: ESG: Upgrades of ESG Scores by Two Independent Providers
ESG: Upgrades of ESG Scores by Two Independent Global Providers from ‘BB’ to ‘BBB’ from 38.1 (High Risk) to 34.5 (High Risk) Last update: 22 December 2020 Last update: 28 July 2022 Score: BBB Score: 34.5 (High Risk) • The company falls into the • Exposure: Our ESG risk average scoring range relative
Slide 43: Appendix
INDIKA ENERGY 43
Slide 44: Indika Energy, Indonesia’s a diversified investment company
Indika Energy, Indonesia’s a diversified investment company PT Indika Energy Tbk. 1 ▪ Energy Resources 2 ▪ Energy Services 4 Logistic & Infrastructure 6 • Green Businesses Renewable Energy - Established since 2018 - Established since 2021 - Established since 1991 - Integrated logistic services - Joi
Slide 45: Indika Energy’s Financial Highlights
Indika Energy’s Financial Highlights Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 3500 1200 1050 3,069.2 3,133.4 1086.3 935.3 2,962.9 2,782.7 900 1000 918.1 772.7 2800 750 800 2100 1,813.8 641.2 600 508.1 600 426.7 450 1400 400 289.5 300 700 173.3 200 150 71.9 0 0 0 2018 2019 20
Slide 46: Indika Energy’s Key Business and Credit Ratios
Indika Energy’s Key Business and Credit Ratios LTM Adj EBITDA* (USD mn) & LTM Adj EBITDA Margin (%) Gross Debt & Net Debt / Adj. EBITDA (x) Debt / Capital (%) 70% 66.1% 63.7% EBITDA EBITDA Margin Gross Debt Net Debt 59.9% 1,500 1,409.8 40% 60% 56.7% 33.5% 8 31.8% 35% 6.2 49.4% 1,150 977.5 6 50% 30%
Slide 47: Kideco – Leading Coal Producer in Indonesia
Kideco – Leading Coal Producer in Indonesia • Third largest coal producer in Indonesia • Environmental friendly thermal coal with ultra-low sulphur of 0.1% and low ash of (2.1% to 4.9%) • Attractive location with well-built infrastructure, and integrated value chain within the group, allowing for st
Slide 48: Kideco’s Financial Highlights
Kideco’s Financial Highlights Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 2,196.9 2,216.2 1050 900 856.2 2200 923.5 773.7 1,802.2 900 835.4 750 1650 1,574.2 750 600 1,249.5 600 450.3 492.1 1100 450 450 248.5 300 300 208.2 550 177.1 138.3 150 150 0 0 0 2018 2019 2020 2021 9M22 2
Slide 49: Kideco’s Operational Highlights
Kideco’s Operational Highlights Cash Cost Breakdown Coal Production (mn ton) Coal Sales (mn ton) 40 40 Labor & Others, 35.8 35.8 34.0 34.3 34.1 34.9 14.3% 35 33.0 35 33.0 CM & Rental, 30 30 30.2% 26.1 26.3 25 25 O/H, 12.9% 20 20 15 15 Freight, 4.1% 10 10 5 5 Material, Gov. Royalty, 7.4% 31.0% 0 0 20
Slide 50: Kideco’s Operational Highlights
Kideco’s Operational Highlights YTD Summary P&L (US$mn) 3Q22 3Q21 YoY 2Q22 QoQ 9M22 9M21 YoY Sales 831.4 609.3 36.5% 820.1 1.4% 2,216.2 1,486.1 49.1% Gross profit 349.5 239.6 45.9% 361.9 -3.4% 923.5 479.6 92.6% Operating profit 326.6 223.6 46.0% 338.4 -3.5% 856.2 440.0 94.6% Net income 182.7 123.5 4
Slide 51: Peer Comparison (6M22 Data)
Peer Comparison (6M22 Data) PRODUCTION ANNUAL (MT) STRIP RATIO (x) CASH COSTS ex Royalty (US$/t) 60 56 12 60 10.8 49 50 10 50 39 40 8 40 32 32 33 5.6 30 28 30 6 5.3 4.1 20 15 4 20 10 2 10 0 0 - ADRO INDY * PTBA ITMG PTBA ADRO INDY * ITMG ADRO PTBA INDY * ITMG EBITDA MARGIN Domestic Sales/ Total (DMO
Slide 52: Tripatra’s Financial Highlights (1)
Tripatra’s Financial Highlights (1) Revenue (USD mn) Gross Profit (USD mn) Net Profit* (USD mn) 500 462.3 50 40 41.7 37.5 28.4 40 30 400 30 20 16.9 301.0 20 10 11.8 300 278.3 10 0 233.3 219.4 0 -10 200 -6.3 -10 -6.0 -20 -20 -30 -21.6 100 -30 -40 -31.4 0 -40 -50 -43.5 2018 2019 2020 2021 9M12 2018 20
Slide 53: Tripatra’s Financial Highlights (2)
Tripatra’s Financial Highlights (2) * Revenues Breakdown by Value 9M22: US$219.4 mn 9M21 : US$155.1 mn TPE 10.5% TPE 10.7% TPEC TPEC 89.5% 89.3% Cost Structure 9M22: US$205.3 mn 9M21: US$168.9 mn Others 11.9% Rental Rental Others 8.1% 5.2% 16.0% Constructions Constructions 41.8% Travel 43.3% Travel
Slide 54: Tripatra Backlog
Tripatra Backlog New Contract/ Remaining Contract Revenue Remaining Contract Adjustment Value Descriptions Value Recognition Value in 2022 Per 31 Dec 2021 Per 30 Sept. 2022 Per 30 Sept, 2022 Tripatra Tripatra Engineers & Constructors 253.5 10.4 196.3 67.6 Tripatra Engineering 23.3 48.9 23.1 49.1 Tot
Slide 55: Indika Resources’ Financial Highlights
Indika Resources’ Financial Highlights Revenues (USD mn) Cost of Good Sold (USD mn) Gross Profit (USD mn) 700 600 160 622.5 141.7 600 480.8 140 500 491.4 417.4 120 500 400 359.4 398.8 100 400 300.8 325.9 300 80 74.0 300 60 190.5 200 167.9 200 36.2 40 21.3 22.6 100 100 20 0 0 0 2018 2019 2020 2021 9M
Slide 56: Indika Resources’ Financial Highlights (2)
Indika Resources’ Financial Highlights (2) * Revenues Breakdown 9M22: US$628.5 mn 9M21: US$294.7 mn Coal MUTU Coal MUTU Trading 36.8% Trading 35.8% 63.2% 64.2% MUTU ASP (USD/ton) * MUTU Cash Cost ex Royalti (USD/ton) 250 140 117.2 193.3 120 200 100 150 80 61.3 60.3 93.0 60 53.2 100 87.6 46.6 76.3 60
Slide 57: Interport’s Financial Highlights
Interport’s Financial Highlights Revenues (USD mn) Revenue Breakdown 9M22 Gross Profit (USD mn) Others 12 35 11.4% 10.0 28.7 29.0 10 30 8.7 25.4 25 IBP 8 7.2 11.4% 20 6 15.2 15 KGTE 4 3.2 10 77.2% 5.7 2.0 2 5 0 0 2018 2019 2020 2021 9M22 2018 2019 2020 2021 9M22 Net Profit (USD mn) EBITDA (USD mn) F
Slide 58: Notes Outstanding
Notes Outstanding Ba 3 Stable Outlook (as of Oct. 2021) The Senior BB - / Stable Outlook Notes are rated: International Ratings (as of May 2022) A + / Stable Outlook National Ratings (as of May 2022) Indo Energy Capital III Pte. Ltd. Indo Energy Capital IV Pte. Ltd. USD 333.4mn USD598.9 mn 5.875% 7-
Slide 59: Strong Focus on and Commitment to ESG Initiatives
Strong Focus on and Commitment to ESG Initiatives Environmental Social Responsibility Governance ✓ Comply with all Indonesian environmental laws, ✓ Focus on supporting long-term economic growth and improving the quality of life in regions of operation ✓ Continuously implementing and improving good r
Slide 60: THANK YOU
INDIKA ENE THANK YOU 60