Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — FY2020 Earnings Presentation
36 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Feb 25, 2021
Slide 1: FY20 Results
FY20 Results INVESTOR & ANALYST UPDATE 25 FEBRUARY 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: FY2020 Highlights
01 FY2020 Highlights
Slide 4: 2020 highlights – resilient through challenging times
2020 highlights – resilient through challenging times Ensuring operational resiliency while balancing cost flexibility across all mine site Despite low coal prices, ITM Net cash at $231 M and Efficiency improvement and generated EBITDA of $187 M consistent dividend payout, transition to online worki
Slide 5: 2020 awards and achievements: as a good and responsible miner
2020 awards and achievements: as a good and responsible miner ESG Credential Sustainability Reporting C O A L T R A N S AW A R D S 2 0 2 0 AS IA S U S TAIN AB I L IT Y FIHRSST STUDY 2020 B y C o a ltra ns A si a R E P O R T R AT I N G ( A S R R AT ) By the Foundation For International Human By the N
Slide 6: ITM corporate social responsibilities activities
ITM corporate social responsibilities activities Covid-19 Donation April 2020 Education on COVID-19 ITM, in collaboration with mining April-May 2020 association channels, provided Provided general public Covid-19 donations to communities and education on the importance local government programs of s
Slide 7: Accelerating digital transformation through DCoE
Accelerating digital transformation through DCoE BUSINESS PEOPLE A p p li c a ti o n o f d i g i ta li za ti o n Thro ug h p a rtne rshi p s wi th d i g i ta l i ni ti a ti ve s ha ve i mp ro ve d i nsti tuti o ns, D ig ita l C a p a c ity o p e ra ti o na l p e rfo rma nce a nd C e n te r (D C C )
Slide 8: 2021 target performance
2021 target performance Production Volume In-house Contractors Strip Ratio 17.7-19.9 26 Mbcm Overburden capacity 9.7x Mtpa 4.3 Mt Overburden to coal Coal output Coal mining capacity Sales Volume 3rd Party Coal Projects & Development 6 Digital Initiatives 20.7-22.9 2.5-2.9 Under development Mtpa Mtpa
Slide 9: ITM strategic plan 2021 and beyond
ITM strategic plan 2021 and beyond C OA L MININ G T R A D ING & S E R VIC E S MAX I M I Z E P R O F ITAB I L I T Y V A L U E C R E AT I O N FROM OUR RESERVES F R O M C O AL VAL U E C H AIN COS T E F F ICIE NT OP E RA TION R E U T I L I Z A T I O N F R O M E XI S T I N G IN LINE W ITH S US TA INA B L
Slide 10: Operation Updates
02 Operation Updates
Slide 11: Operational summary 2020
Operational summary 2020 SCHEMATIC 2020 RESULT: 18.4 Mt OUTPUT TREND Unit: Mt 23.4 2021 Target: East Kalimantan 17.7-19.9* Mt 18.4 Indominco Jorong Trubaindo Kitadin 7.1-7.2 Mt Bharinto 3.9 Mt Bunyut Port Trub aindo Graha Panca Kitadin Embalut 0.1-0.3 Mt 1.7 Mt 4.5 4.9 4.6 4.0 Indominco Samarinda Bh
Slide 12: 2020 site updates and achievements
2020 site updates and achievements OPERATIONS: OPERATIONS: ▪ Trubaindo output achieved 4.3 Mt and ▪ Indominco production volume 9.0 Mt in 2020 Bharinto achieved 3.0 Mt in 2020 ▪ Rationalized capex spending by 66% in 2020 ▪ Rationalized capex spending in Trubaindo by 19% and Bharinto by 45% ▪ Complet
Slide 13: 2020 site updates and infrastructure developments
2020 site updates and infrastructure developments Completion of road infrastructure upgrade Improvement in Bunyut Port facilities and Installation completed of 3MW solar power with bridges and road reaching 100 km coal logistic capacity expansion (port PV plant with battery storage capacity of conne
Slide 14: Coal operations: Indominco Mandiri
Coal operations: Indominco Mandiri SCHEMATIC 2020 RESULT: 9.0 Mt OUTPUT TREND Unit: Mt 2021 TARGET: 7.1-7.2 Mt Operations Barge Ports 12.4 Hauling 1.9 Stockpile 9.0 West Block ROM Crusher 2.4 W Block Mine stockpile stockyard 10.5 2.5 2.0 2.3 1.7 6.6 E. Block East Block 0.5 0.7 0.5 0.1 2.0 1.3 1.8 1.
Slide 15: Coal operations: Melak group – Trubaindo and Bharinto
Coal operations: Melak group – Trubaindo and Bharinto SCHEMATIC 2020 RESULT: 4.3 Mt and 3.0 Mt OUTPUT TREND Unit: Mt 2021 TARGET: TCM 3.9 Mt | BEK 3.5-5.5 Mt 7.9 7.3 Mahakam River Bunyut Port East Kalimantan 4.9 4.3 Trubaindo Product coal conveyor, 2.2 2.0 1.8 stacking, 1.5 stockpile 1.0 1.4 0.9 0.9
Slide 16: Coal operations: Kitadin Embalut and Tandung Mayang
Coal operations: Kitadin Embalut and Tandung Mayang SCHEMATIC 2020 RESULT: 1.2 Mt OUTPUT TREND Unit: Mt 2021 TARGET: EMB 1.7 Mt 1.4 1.2 TD. Mayang Bontang city IMM WB IMM EB 0.4 0.2 0.3 0.1 ROM stockpile Bontang Port Embalut 1Q20 3Q20 4Q20 1Q21e FY19 FY20 5km Mine to port S/R (bcm/t) - Embalut: 16.4
Slide 17: Coal operations: Jorong
Coal operations: Jorong SCHEMATIC 2020 RESULT: 1.0 Mt OUTPUT TREND Unit: Mt 2021 TARGET: 1.3-1.4 Mt 1.6 Pelaihari 1.0 0.3 0.3 Haul road 0.2 0.2 20km 1Q20 3Q20 4Q20 1Q21e FY19 FY20 S/R (bcm/t) : 11.3x 7.8x 7.4x 11.6x 7.5x 8.3x Jorong COMMENTS Coal ▪ 4Q20 production was below target due to heavy rainf
Slide 18: Coal Market Trends
03 Coal Market Trends
Slide 19: Global thermal coal market
Global thermal coal market COAL DEMAND AND SUPPLY CHANGE – 2021E VS 2020 TRENDS Unit: Mt SUPPLY DEMAND DEMAND La Nina weather resulted in freezing temperatures across much of the Northern Hemisphere driving significant coal demand in the region at the beginning of the year. Economic recovery post Co
Slide 20: ITM coal sales FY20
ITM coal sales FY20 COAL SALES BREAKDOWN BY DESTINATION COAL SALES FY20 Vietnam 1% Taiwan 3% Others 1% 4.7 Mt Malaysia 4% 4.5 Mt India 4% Korea 5% China 1.0 Mt 22% S KOREA Bangladesh JAPAN 6% CHINA 1.3 Mt Thailand BANGLADESH 6% 1.3 Mt 0.6 Mt 0.8 Mt 2.0 Mt TAIWAN Japan INDIA THAILAND Phillippines 21%
Slide 21: Indicative coal sales 2021
Indicative coal sales 2021 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Unsold Fixed 44% 18% Uncontracted 56% 44% Contracted 4% 34% Unpriced Indexed Target sales 2021: 20.7-22.9 Mt 21
Slide 22: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS ▪ Coal price recover sharply from end of FY20 with cold Unit: US$/t; A$/t for CEY Monthly NEX 200 snap hitting across northern hemisphere amidst high gas 150 price. 150 100 ▪ China open coal import for restocking and wint
Slide 23: Financial Summary
01 02 03 04 05 FY2020 Operation Coal Market Financial Q&A Highlights Updates Trends Summary Session
Slide 24: Highlights of 4Q20 and FY20 results
Highlights of 4Q20 and FY20 results 3Q20 4Q20 FY19 FY20 Coal sales (Mt) 4.3 5.8 25.3 21.2 ASP (USD/t) 48.8 52.7 64.6 53.5 Unit: US$ million Total Revenue 219 313 1,716 1,185 Gross Profit Margin 16% 19% 19% 17% EBIT 14 42 181 104 EBITDA 35 61 242 187 Net Income 10 (1) 127 38 24
Slide 25: Sales revenue
Sales revenue Unit: US$ million Other Jorong Kitadin 1,716 Bharinto 216 Trubaindo Indominco +43% (QoQ) 75 -24% (YoY) 91 -31% (YoY) Others 1,185 304 Others -12% (QoQ); 157 -27% (YoY) 411 -45% (YoY) 55 Jorong 62 Jorong 56 +168% (QoQ); -26% (YoY) 19 313 -18% (YoY) 502 261 19 Kitadin 31 Kitadin 92 -31%
Slide 26: Average gross margin
Average gross margin Avg. FY19: 19% Avg. FY20: 17% Unit : US$ Million Revenue 411 GPM (%) 178 313 148 123 219 94 98 92 74 82 49 19 20 19 16 21% 18% 9 18% 27% 6 16% 19% 14% 18% 17% 20% 15% 20% 7% 15% 42% 8% 5% -11% 4Q19 3Q20 4Q20 4Q19 3Q20 4Q20 4Q19 3Q20 4Q20 4Q19 3Q20 4Q20 4Q19 3Q20 4Q20 4Q19 3Q20 4
Slide 27: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Unit: Bcm/t Avg. FY19: 10.9 Unit: US$/t Avg. FY19: $47.3/t Avg. FY20: 10.1 Avg. FY20: $41.9/t 50.0 10.7 10.8 41.9 41.1 10.0 37.9 38.7 9.3 8.9 Non-Coal 45.1 39.8 39.4 36.1 37.5 Coal 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20** 2Q20** 3Q20 4Q20 FUEL P
Slide 28: EBITDA
EBITDA Unit: US$ million 242 +73% (QoQ) Other -1% (YoY) 35 -23% (YoY) Jorong Kitadin Kitadin -60% (QoQ) Bharinto -84% (YoY) Kitadin 62 42 -75% (YoY) Trubaindo 61 - 187 1 Bharinto 1 9 Indominco +207% (QoQ) 7 9 +96% (YoY) 19 Bharinto 5 -55% (YoY) 62 12 59 34 Trubaindo Trubaindo 35 +46% (QoQ) -5% (YoY)
Slide 29: Net income
Net income 4Q19 NET INCOME 3Q20 NET INCOME Other: 62 • FX Gain/(Loss) (USD/IDR): $3.8 M • Derivative Gain/(Loss) (commodities): $3.8M • Other gain/(loss): $(15.7)M (16) 1 35 Other: • FX Gain/(Loss) (USD/IDR): $(2.0)M (8) • Derivative Gain/(Loss) (commodities): $1.7M • Other gain/(loss): $(0.2)M (11)
Slide 30: Balance sheet
Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) 374 368 Net D/E (times) 328 268 231 (32%) (36%) (38%) (21%) (39%) (17%) 159 (0.32) (0.36) (0.39) (0.38) (0.17) (0.21) 2016 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 DEBT POSITION Unit: US$ million 43 11 0 0 0 0 201
Slide 31: 2021 Capital expenditure plan
2021 Capital expenditure plan Units: USD million Road, Port and Infrastructure Development 18.3 Equipment & Machinery 40.5 11.5 Bharinto infrastructure Road & Port 20.4 Trubaindo infrastructure 4.7 Road & Port Equipment & machinery 3.6 2.4 2020 Indominco Trubaindo Bharinto TRUST Other ITM ITM Consol
Slide 32: Q&A Session
05 Q&A Session
Slide 33: Appendix
Nit
Slide 34: Income statement
Income statement Unit: US$ thousand FY20 FY19 YoY% Net Sales 1,185,336 1,715,592 -31% Gross Profit 199,150 326,688 -39% GPM 17% 19% SG&A (95,239) (146,162) EBIT 103,911 180,526 -42% EBIT Margin 9% 11% EBITDA 187,039 241,822 -23% EBITDA Margin 16% 14% Net Interest Income / (Expenses) (489) 4,716 n.m
Slide 35: Income statement
Income statement Unit: US$ thousand 4Q20 3Q20 QoQ% Net Sales 313,452 219,256 43% Gross Profit 59,317 34,878 70% GPM 19% 16% SG&A (17,691) (21,237) EBIT 41,626 13,641 205% EBIT Margin 13% 6% EBITDA 61,359 35,446 73% EBITDA Margin 20% 16% Net Interest Income / (Expenses) (119) (177) n.m FX Gain / (Los
Slide 36: 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% 75.00% 99.90% 99.99% 99.99% 91.99% Indominco Trubaindo Bharinto Kitadin Jorong NPR GPK TIS TRUST ITMI PT Tambang Raya PT ITM Indonesia PT Indo
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