Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q2 2023 Earnings Presentation
30 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Aug 16, 2023
Slide 1: Analyst Briefing 2Q23 Performance Result
Analyst Briefing 2Q23 Performance Result 16 August 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
Highlights
Slide 5: 2Q23 highlights – robust operational performance
2Q23 highlights – robust operational performance BUSINESS PERFORMANCE GOOD RESPONSIBLE MINER 2Q23 solid production volume Progress of Mentawir nursery exceeding the target ITM is chosen by the government to build and manage 2Q23 production level reached 4.4Mt (+16% QoQ / Mentawir Nursery to support
Slide 6: Ample investment opportunity in renewable energy
Ample investment opportunity in renewable energy Renewable energy development plan across 2021-2030 20.9GW implementation plan by 2030 to achieve and support net zero emission in 2060 2030 Investment approach Kalimantan S o l a r (4.7 GW) Sulawesi • Solar PP quota offered by PLN 15% Sumatera • Insta
Slide 7: Greener Smarter renewable energy business expansion
Greener Smarter renewable energy business expansion Captive ITM as one of many integrated energy solution providers, utilizing its own Our achievement renewable energy as a so far: greener power source and ITM established PT ITM creating a synergy. Bunyut, Kalimantan Bhinneka Power (IBP) as a concre
Slide 8: Strategic direction of renewable business
Strategic direction of renewable business Energy Generation Energy Technology Solar farm project Solar-based renewable energy product Develop solar farm in the targeted area and study the Develop solar-based renewable energy product, e.g., solar possibility to tap into the de-dieselization program:
Slide 9: ITM way forward: a diversified energy company
ITM way forward: a diversified energy company MINING ENERGY SERVICES RENEWABLES & OTHERS Contractor business Solar farm Coal mining Capacity expansion Solar PV hybrid Through organic and business process powerplant exploration and improvement greenfield mine development Coal trading Solar rooftop Op
Slide 10: Our way in energy
Our purpose: To power the better living for all OUR WAY IN ENERGY Igniting Spirit of Responsible Transition: advancing, empowering together Reliable Energy Affordable Energy Eco-friendly Energy To deliver dependable To sustain the need of To supply greener, smarter energy solutions, ensuring economi
Slide 11: Coal Market Trends
Nit™™ Coal Market Trends
Slide 12: Global thermal coal market
Global thermal coal market COAL DEMAND AND SUPPLY CHANGE – 2023E VS 2022 TRENDS Unit: Mt SUPPLY DEMAND DEMAND Global thermal coal import is expected to grow strongly this year driven by China and Southeast Asia. HCV demand in Europe and East Asia dropped in Pacific the 1H largely due to subdued powe
Slide 13: ITM ASP vs thermal coal benchmark prices
ITM ASP vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/t ▪ Seaborne premium thermal coal market continued its downward trend through Q2. Weekly GCNewc was at US$199.58 in the 1st Monthly NEX 450 week of April and dropped to the bottom (US$120.23/t) in the week 400 46
Slide 14: ITM coal sales
ITM coal sales 6M23 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 6M23 Malaysia 4% Others 5% 0.1 Mt India 4% Thailand 5% EUROPE China 6M23 36% Bangladesh 5% Sales 3.6 Mt 0.9 Mt Philippines 8% 9.9 Mt JAPAN Japan 9% Indonesia 23% CHINA 0.2 Mt 0.1 Mt 0.4 Mt 0.5 Mt HONGKONG TAIWAN INDICATIVE COAL SALES
Slide 15: Operational Updates
Operational Updates
Slide 16: Operational summary 2Q23
Operational summary 2Q23 2023 Target: 16.6-17.0Mt Unit: Mt 4.8 4.4 East Kalimantan 3.9 3.8 IMM 6.4 Mt GPK 0.2 Mt Bontang Coal TCM Terminal Bunyut 2.7 Mt Port 2Q22 1Q23 2Q23 3Q23e TIS SR (bcm/t) 10.6x 11.5x 12.5x 11.5x 0.03 Mt Samarinda BEK 6.8 Mt Central Balikpapan Kalimantan Palangkaraya ▪ 2Q23 pro
Slide 17: Coal operations: Indominco Mandiri
Coal operations: Indominco Mandiri 2023 Target: 6.4Mt Unit: Mt Indominco 1.7 1.7 1.7 1.5 Bontang City West Block East Block Sea conveyor Asphalt haul road 2Q22 1Q23 2Q23 3Q23e Santan River 10.3x 11.6x 14.1x 14.5x SR (bcm/t) Bontang port Inland conveyor ▪ 2Q23 production exceeded the target at 1.7Mt
Slide 18: Coal operations: Trubaindo Coal Mining
Coal operations: Trubaindo Coal Mining 2023 Target: 2.7Mt Unit: Mt Mahakam River Bunyut Port 0.8 0.7 East Kalimantan 0.7 0.6 Kedangpahu River North Block Trubaindo 2Q22 1Q23 2Q23 3Q23e SR (bcm/t) 14.7x 18.0x 16.1x 13.5x South Block 1 Heading toward Bharinto South Block 2 ▪ 2Q23 production achieved t
Slide 19: Coal operations: Bharinto Ekatama
Coal operations: Bharinto Ekatama 2023 Target: 6.8Mt Unit: Mt Mahakam Bunyut River Port 2.1 1.8 East 1.6 Kalimantan Kedangpahu 1.2 River Central Kalimantan 2Q22 1Q23 2Q23 3Q23e SR (bcm/t) 7.9x 9.1x 9.6x 7.9x Bharinto South Kalimantan East ▪ 2Q23 production was exceeding target at 1.8Mt with a strip
Slide 20: Coal operations: Jorong Barutama Greston
Coal operations: Jorong Barutama Greston 2023 Target: 0.5Mt Unit: Mt Pelaihari 0.2 Hauling road 0.2 0.1 0.1 2Q22 1Q23 2Q23 3Q23e SR (bcm/t) 16.2x 15.0x 11.0x 12.5x Jorong Java Sea Jorong Port ▪ 2Q23 production achieved target at 0.1Mt with strip ratio of 11.0x, Operations lower compared to the previ
Slide 21: Financial Updates
7/7 ITM Financial Updates
Slide 22: Profitability – Income statement
Profitability – Income statement SALES VOLUME AND ASP REVENUE Unit: Mt and US$/t Unit: US$ million 202.4 782 Normalized coal benchmark price 686 150.9 614 affected our revenue 113.5 Even though 2Q23 sales volume grew by 19% QoQ / 40% YoY, 2Q23 revenue still 5.4 3.9 4.5 decreased by 10% QoQ / 21% YoY
Slide 23: Cost analysis
Cost analysis TOTAL COST BREAKDOWN Unit: US$/t 89 97 80 ▪ 2Q23 total cost excluding royalty decreased to $65/ton from 28 25 15 Royalty $72/ton in 1Q23 (-10% QoQ) coming from lower fuel price 72 and cost control measure through operations, such as fuel 65 61 SG&A expenses consumption, overburden dist
Slide 24: Balance sheet and key ratios
Balance sheet and key ratios 6M23 BALANCE SHEET BANK LOAN DETAILS KEY RATIOS Unit: US$ million Unit: US$ million Debt to Equity (x) Borrowing 28 Other 0.03 Liabilities Current maturities of 403 long-term bank loan 0.02 0.01 Cash 1,017 13 FY21 FY22 6M23 15 Net Gearing (%) Total FY21 FY22 6M23 Equity
Slide 25: Capital expenditure
Capital expenditure Unit: US$ million Total 6M23 CAPEX actual: 39.9 $14.3M 1.6 Total FY23 CAPEX budget: $84.3M 14.7 18.7 18.0 11.9 7.5 0.5 2.0 5.9 11.7 3.6 2.2 2.1 1.8 2.8 0.3 0.8 6M23 FY23B 6M23 FY23B 6M23 FY23B 6M23 FY23B 6M23 FY23B 1 Coal mines TRUST Greenfield projects Renewable Others Indominco
Slide 26: Q&A Session
Nit™ Q&A Session
Slide 27: Income statement – 6M23 vs 6M22
Income statement – 6M23 vs 6M22 Unit: US$ thousand 6M23 6M22 YoY(%) Net Revenues 1,299,189 1,421,541 (9%) Gross Profit 458,246 749,160 (39%) Gross Profit Margin 35% 53% Selling Expenses (63,712) (64,106) (1%) General And Administration Expenses (20,469) (15,690) 30% EBIT 374,065 669,364 (44%) EBIT M
Slide 28: Income statement – 2Q23 vs 2Q22
Income statement – 2Q23 vs 2Q22 Unit: US$ thousand 2Q23 1Q23 QoQ (%) Net Revenues 613,603 685,586 (10%) Gross Profit 191,330 266,916 (28%) Gross Profit Margin 31% 39% Selling Expenses (28,423) (35,289) (19%) General And Administration Expenses (9,701) (10,768) (10%) EBIT 153,206 220,859 (31%) EBIT M
Slide 29: ITM structure
ITM structure Banpu 65% INDONESIAN STOCK 35%* 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 ITM Bh
Slide 30: Growth strategy to achieve our Greener Smarter vision
Growth strategy to achieve our Greener Smarter vision Developing energy efficiency expertise following the Taking role on the latest increasing eco-friendly development of energy business in Indonesia products, e.g., microgrid in Seeking out potential remote areas, battery Augmenting alternative sou
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