Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — FY2019 Earnings Presentation
33 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Feb 28, 2020
Slide 1: Analyst Briefing FY19 Performance Results
ANALYST BRIEFING FY19 PERFORMANCE RESULTS Jakarta, 28th February 2020
Slide 2: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 2
Slide 3: Highlights of 4Q19 and FY19 results
Highlights of 4Q19 and FY19 results Coal sales Coal sales 6.5 Mt 25.3 Mt Up 0.0 Mt Up 1.8 Mt +0% Q-Q +8% Y-Y Unit: US$ million 3Q19 4Q19 Q-Q FY18 FY19 y-y Total Revenue 412 411 -0% 2,008 1,716 -15% Gross Profit Margin 18% 22% +4% 29% 19% -10% EBIT 38 46 +20% 432 180 -58% EBITDA 53 62 +16% 497 242 -5
Slide 4: 2019 highlights
2018 2019 highlights Highlights ITM remained vigilant and adaptive 23.4 Mt 2.2 Mt $242 M in countering the effect of soft coal Coal production Coal trading Maintained volume; volume price environment +6% y-y +8% y-y sizeable EBITDA Organic and +27% 2.2 Mt 194 ML In-house mining Coal trading volume,
Slide 5: Strategies: 2020 & Beyond
Strategies: 2020 & Beyond CORE BUSINESS COAL VALUE CHAIN COAL OPERATIONAL MARGIN ACROSS VALUE IMPROVEMENT CHAIN ▪ Continue cost efficiency initiatives through ▪ Maximize margin from coal trading mine plan optimization and overhead and coal blending operation to rationalization. improve product quali
Slide 6: Renewable Power: Solar – Diesel Hybrid
Renewable Power: Solar – Diesel Hybrid • 3MW new renewable solar power plant build at Indominco port area. • The solar power sits on 4 hectares of land and is assembled in hybrid configuration with diesel generator. • Objective is to improve fuel efficiency at site through reducing diesel generator
Slide 7: Awards and achievements in 2019
Awards and achievements in 2019 Top 10 Best Platinum Awards for Best Responsibility Most Innovative Performance of Asia Sustainability of The Board Based Company in Mining Respect for Human Report (ASRRAT) on ASEAN CG Score Sector Rights Card 2019 From Business News From From National From Indonesia
Slide 8: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 8
Slide 9: Operational Summary 2019-2020
Operational Summary 2019-2020 2019 OUTPUT: 23.4 Mt 2020 TARGET: 19 - 20.1 Mt* OUTPUT TREND East Kalimantan Indominco 8.9 Mt Trubaindo Bunyut Port 4.3 Mt Kitadin – Samarinda Embalut Bharinto 1.6 Mt Balikpapan 2.6 - 3.7 Mt East Kalimantan Avg.S/R (bcm/t) 13.2x 9.5x 9.3x 10.7x 11.1x 10.9x Palangkaraya
Slide 10: 2019 Operational Review
2019 Operational Review • Indominco production volume 12.4 Mt • Embalut output of 1.4 Mt and in 2019. Jorong 1.6 Mt in 2019. • Rationalized capex spending by 87% • Embalut achieved Blue Level in 2019. while Jorong achieved Green • Construction of 3 MW solar PV plant Level for environmental with batt
Slide 11: Indominco Mandiri
Indominco Mandiri SCHEMATIC OUTPUT TREND 2020 target: 8.9 Mt Operations Unit: Mt Ports Hauling W Block Stockpile West Block ROM Mine Crusher stockpile stockyard E. Block East Block Bontang City 35Km Sea conveyor Avg.S/R 13.9x 9.9x 10.2x 10.2x 11.4x 11.5x (bcm/t) Asphalt haul 2.5Km - W. Block : 14.9x
Slide 12: Melak group – Trubaindo and Bharinto
Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND 2020 target: TCM 4.3 Mt Unit: Mt Mahakam BEK 2.6 - 3.7 Mt River Bunyut Port Bharinto East Kalimantan Product coal conveyor, stacking, stockpile 40km Trubaindo Mine to port Operations Barge Port Kedangpahu Hauling River S/R (bcm/t) Stockpile
Slide 13: Kitadin Embalut and Tandung Mayang
Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND 2020 target: EMB 1.6 Mt Unit: Mt TD. Mayang Bontang city IMM WB IMM EB ROM Bontang stockpile Port Embalut 5km Mine to port Embalut Port S/R (bcm/t) - Embalut : 11.9x 8.6x 8.1x 16.9x 10.7x 9.8x Mahakam Samarinda River to Muara Berau COMMENTS E
Slide 14: Jorong
Jorong SCHEMATIC OUTPUT TREND 2020 target: 1.4 – 1.6 Mt Unit: Mt Pelaihari Haul road 20km S/R (bcm/t) : 10.5x 6.7x 6.0x 9.5x 6.3x 7.5x Jorong COMMENTS Coal Operations terminal ▪ 4Q19 production achieved according to target. Barge Port Java Sea ▪ Overall strip ratio for 2020 will be lower than 1Q20 H
Slide 15: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 15
Slide 16: Global coal demand trends: 2019 vs 2018
Global coal demand trends: 2019 vs 2018 CHANGE GEOGRAPHY COMMENTS 2019-18 (Mt) ▪ Strict import control resulted in significant drop of imported coal in Q4 ▪ Weak demand due to mild winter and weak economy. CHINA +11 ▪ Domestic supply continued improve despite a series of mine accidents. ▪ Coronaviru
Slide 17: Global coal supply trends: 2019 vs 2018
Global coal supply trends: 2019 vs 2018 CHANGE GEOGRAPHY COMMENTS 2019-18 (Mt) ▪ Rain started to impact supply ▪ China’s import restriction has limited impact as producers prepared in INDONESIA +33 advance to face this situation. ▪ Implementation of online monitoring system has limited impact on exp
Slide 18: ITM coal sales FY19
ITM coal sales FY19 COAL SALES BREAKDOWN BY DESTINATION COAL SALES FY19 7.3 Mt 4.7 Mt 0.8 Mt 1.0 Mt 1.6 Mt 0.7 Mt KOREA 1.1 Mt CHINA 1.1 Mt VIETNAM 1.4 Mt HK 1.5 JAPAN 0.4 Mt INDIA TAIWAN 1.7 Mt MALAYSIA 3.3 Mt BANGLADESH THAILAND PHILIPPINES INDONESIA 0.2 Mt OTHERS Total coal sales FY19: 25.3 Mt 18
Slide 19: Indicative coal sales 2020
Indicative coal sales 2020 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Uncontracted Fixed Unsold Contracted Contracted Contracted Unpriced Indexed TARGET SALES 2020: 22.4 - 23.5 Mt 19
Slide 20: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/ton ▪ Price stabilized throughout 4Q19 ASP in upper $60’s with bottom reached in late 3Q19. ASP slightly reduced from previous quarter. ▪ ITM ASP: US$60.0/t (-3% QoQ) ▪ NEX (Feb 21, 2020)*: US$68.1/t Monthly NEX
Slide 21: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIALREVIEW FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 21
Slide 22: Sales revenue
Sales revenue Unit: US$ million -15% (YoY) Jorong +29% (YoY) Kitadin -1% (YoY) Bharinto -0% (QoQ) -9% (YoY) -31% (YoY) Trubaindo -21% (YoY) Jorong +58% (QoQ) Indominco -23% (YoY) Kitadin -34% (QoQ) Bharinto Jorong +51% (QoQ) Kitadin Trubaindo Bharinto -17% (QoQ) Trubaindo Indominco Indominco -2% (Qo
Slide 23: Average gross margin
Average gross margin Avg. FY18: 29% Unit : US$ Million Revenue Avg. FY19: 19% GPM (%) Indominco Trubaindo Bharinto Kitadin Jorong ITM Consolidated Note : Gross margin includes royalty 23
Slide 24: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Avg. FY18: 11.1 Unit: US$/t Avg. FY18: $50.6/t Unit: Bcm/t Avg. FY19: 10.9 Avg. FY19: $47.3/t Non-Coal Coal FUEL PRICE TOTAL COST* Unit: US$/Ltr Avg. FY18: $0.69/ltr Unit: US$/t Avg. FY18: $64.7/t Avg. FY19: $0.62/ltr Avg. FY19: $61.2/t Non-
Slide 25: EBITDA
EBITDA Unit: US$ million +16% (QoQ) -51% (YoY) -53% (YoY) Others n.m (QoQ) Jorong Others n.m (YoY) n.m (QoQ) Jorong Kitadin n.m (YoY) -30% (QoQ) Kitadin Bharinto -22% (YoY) 0% (QoQ) Bharinto -54% (YoY) Other Trubaindo +33% (QoQ) Trubaindo Jorong -65% (YoY) Kitadin Bharinto Indominco Indominco +7% (Q
Slide 26: Net income
Net income 3Q19 NET INCOME 2018 NET INCOME Other: Other: • FX Loss (USD/IDR) $(1.4)M • FX Loss (USD/IDR) $(9.6)M • Derivative Gain (commodities) $4.7M • Derivative Loss (commodities) $(39.5)M • Other loss $(2.5)M 497 • Other loss $(18.9)M OTH 4 OTH KTD (65) KTD BEK (68) BEK (109) 259 TCM TCM IMM IMM
Slide 27: Balance sheet
Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) Net D/E (times) (32%) (36%) (39%) (38%) (17%) (0.32) (0.36) (0.39) (0.38) (0.17) 2015 2016 2017 2018 2019 DEBT POSITION Unit: US$ million 11 0 0 0 0 2015 2016 2017 2018 2019 27 Note : Debt position coming from short-term revolv
Slide 28: 2020 Capital expenditure plan
2020 Capital expenditure plan Units: USD million Equipment & Machinery 18.7 Bharinto infrastructure Road & Port 9.5 49.9 45.2 Trubaindo infrastructure 15.6 Road & Overhaul 4.4 Equipment & machinery 2019 Indominco Trubaindo Bharinto TRUST ITM ITM Consolidated Consolidated* 28 Note: Total capex plan i
Slide 29: NiTM
NiTM
Slide 30: Appendices
Nim™ Appendices
Slide 31: Income statement
Income statement Unit: US$ thousand FY19 FY18 YoY% Net Sales 1,715,592 2,007,630 -15% Gross Profit 326,688 583,959 -44% GPM 19% 29% SG&A (146,162) (151,909) EBIT 180,526 432,050 -58% EBIT Margin 11% 22% EBITDA 241,822 497,287 -51% EBITDA Margin 14% 25% Net Interest Income / (Expenses) 4,716 3,560 32
Slide 32: Income statement
Income statement Unit: US$ thousand 4Q19 3Q19 QoQ% Net Sales 410,812 412,079 0% Gross Profit 88,856 75,431 18% GPM 22% 18% SG&A (42,768) (37,079) EBIT 46,088 38,352 20% EBIT Margin 11% 9% EBITDA 61,921 53,184 16% EBITDA Margin 15% 13% Net Interest Income / (Expenses) 894 905 -1% FX Gain / (Loss) 3,8
Slide 33: ITM structure
ITM structure Banpu 65% INDONESIAN STOCK 35%* EXCHANGE Public ITMG PT Indo Tambangraya Megah Tbk. IPO 18th Dec 2007 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% Indominco Trubaindo Bharinto Embalut Jorong TIS NPR TRUST ITMI PT Tambang Raya PT ITM Indonesia PT Indominco PT Trubaindo
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