PT Indika Energy Tbk · IDX:INDY
PT Indika Energy Tbk — 6M22 Earnings Presentation
61 slides from PT Indika Energy Tbk's earnings presentation, August 2022
Slide 1: Indika Energy Group Company Update 6M22
INDIKA ENERGY GROUP COMPANY UPDATE 6M22 PT Indika Energy Tbk. Aug 2022
Slide 2: To Energize Indonesia for a Sustainable Future
Indika Energy - To Energize Indonesia for a Sustainable Future ✓ A 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 d
Slide 3: 6M22 Revenue Contribution
Indika Energy – 6M22 Revenue Contribution Revenue 6M22 : US$1,939.0m Revenue 6M21 : US$1,164.7m Non-coal Non-coal 11.9% 9.6% 1% 1% 7% 2% 8% 3% 7% 13% Kideco 6% MUTU 5,8% 6% Coal Trading Tripatra Interport Others 13,6% 71% 75% 78,1% 7,1% Coal Coal 88.1% 90.4% *) PTRO’s figures have been excluded 3
Slide 4: Consolidated Income Statement Highlights
Indika Energy’s Consolidated Income Statement Highlights Quarter Data Year To Date Summary P&L 2Q22 2Q21 YoY 1Q22 QoQ 6M22 6M21 YTD YoY Revenues 1,108.2 639.5 73.3% 830.8 33.4% 1,939.0 1,164.7 66.5% COGS (700.1) (486.8) 43.8% (570.0) 22.8% (1,270.1) (905.7) 40.2% Gross Profit 408.1 152.6 167.4% 260.
Slide 5: 6M22 Business Highlights – Revenue Breakdown
6M22 Business Highlights – Revenue Breakdown 6M22 6M21 YoY Subsidiaries Remarks (US$ mn) (US$ mn) Chg ASP ▲ 67.9% (+US$33.0/ton) from US$48.6/ton in 6M21 to US$81.5/ton in 6M22, Sales Kideco 1,384.8 876.8 57.9% Volume ▼ -5.9% (-1.1MT) to 17.0MT in 6M22 due to lower annual target production in 2022.
Slide 6: 6M22 Business Highlights - Gross Profit/Margin
6M22 Business Highlights- Gross Profit/ Margin 6M22 6M21 YoY Subsidiaries Remarks (US$ mn) (US$ mn) Change Gross Profit 668.9 258.9 158.3% Gross Margin (%) 34.5% 22.2% ASP ▲ 67.9% (+US$33.0/ton) from US$48.6/ton in 6M21 to US$81.5/ton in 6M22 Sales Volume ▼ 5.9% (-1.1MT) from 18.1MT to 17.0MT in 6M2
Slide 7: Operational Highlights Vs Corporate Guidance
Operational Highlights Vs Corporate Guidance 2022 2022 Budget 6M22 % Operational Data Guidance 6M22 6M21 % CAPEX Budget (US$M) (US$M) KIDECO Kideco 17.0 3.7 21.8% Indika Resources 14.0 1.4 10.0% Production (MT) 34.0 16.4 18.2 -9.5% Indika Hold Co. 1.0 0.9 90.0% Strip Ratio (x) 5.5 5.3 5.1 4.4% Inter
Slide 8: Cash and Debt Position
Cash and Debt Position Cash and Debt Breakdown as of 30 June 2022 US$m 1,463 19 194 1) 1,072 135 1,250 937 Cash Debt Cash Other Financial Assets Bonds 2) Bank Loans 3) Other Loans 4) 1) Kideco: US$556.4m, Tripatra: US$34.0m,, IIR: US$93.5m, Interport: US$8.0m, IMP: US$5.6m, EMI: US$0.9m; ITB: US$3.7
Slide 9: Sound Balance Sheet
Indika Energy – Sound Balance Sheet Cash Breakdown by Subsidiaries LTM Free Cash Flow US$ million US$ million HoldCo & Others Kideco Tripatra 900 815 34 800 63 700 597 600 556 450 500 134 43 400 154 323 188 171 300 114 198 176 473 482 200 337 310 392 100 0 2018 2019 2020 2021 6M22 2018 2019 2020 202
Slide 10: 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 11: Thermal Coal Price
Thermal Coal Price USD/ton 450 408 400 373 350 300 264 250 200 184 168 150 109 96 81 86 93 82 89 84 100 70 66 69 66 73 46 47 44 43 43 57 53 45 54 50 36 36 35 85 91 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 YTD NEWC ICI-4 ASP Jul 22 Su
Slide 12: Our Diversified Business Portfolio
Our Diversified Business Portfolio
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: 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 15: 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 16: Diversification Investments – Minerals
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 17: 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 18: Kariangau Fuel Tank Storage Is Up and Running
Diversification Investments – Logistics & Infrastructure Kariangau Fuel Tank Storage Is Up and Running Build and operate fuel storages exclusively for ExxonMobil Location : Balikpapan, Kariangau, East Kalimantan Project Company : PT Karingau Gapura Terminal Energy Total Project Cost : US$115million
Slide 19: Patimban Port
Diversification Investments – Logistics & Infrastructure Patimban Port ▪ A strategic infrastructure project development; as the first integrated supply chain port in Indonesia ▪ On 30 Dec 20, Ministry of Transport has appointed a consortium, as operator of Patimban Port for Phase 1 ▪ Indika joined t
Slide 20: 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 21: 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 22: Huge Untapped Solar PV Potential in Indonesia
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 22
Slide 23: 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 24: 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 25: Industrial Forestry – Indika Multi Properti
Diversification Investments – Green Businesses Industrial Forestry – Indika Multi Properti Through Indika Multi Properti, we are developing more than 160,000 ha industrial forest area, located in East and Central Kalimantan • Wood pellets for biomass (for co-firing) with effective area for plantatio
Slide 26: Large Size Forestry Concession Area
Diversification Investments – Green Businesses Industrial Forestry – Large Size Forestry Concession Area >170,000 Ha in East & Central Kalimantan DPP 99% 75% 96% 80% PT Jaya Bumi PT Diva Perdana PT Telaga Mas PT Trisetia Cita Paser Persona Kalimantan Graha (JBP) (DPP) (TMK) (TCG) TCG TMK JBP Annual
Slide 27: Electric 2W – Establishment of Ilectra Motor Group
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 28: IMG's Vision to be Leading E-Mobility Brand
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) 28
Slide 29: Introducing Our Electric Motorcycle Brand: ALVA
Introducing Our Electric Motorcycle Brand : ALVA Arriving at GIIAS on August 11, 2022 Visit us Website : www.alvaauto.com Instagram : alvaauto.ev Facebook : alvaauto.ev Tiktok : alvaauto.ev 29
Slide 30: 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 31: MOU to Develop EV Ecosystem in Indonesia
EV Sector - MOU 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
Slide 32: Government Sets Up Favourable Policy in EV Sector
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 33: 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 34: 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 35: Setting 2025 Target Across Key ESG Metrics
ESG: Setting 2025 Target Across Key ESG Metrics for Indika Energy 35
Slide 36: Key Initiatives Across Subsidiaries to Drive ESG Impact
ESG: We Also Identified Key Initiatives Across Subsidiaries to Drive ESG Impact Environmental Social Governance • Install solar cells with • Develop settling pond • Develop flagship • Establish (409 kWp and 11 MWp mud removal with community Sustainability planned capacity at slurry pump development
Slide 37: Environmental - Installing Solar PV at our Operational Area
ESG: Environmental - Installing Solar PV at our Operational Area Target Reduce GHG emissions intensity by 10% by 2025 Our key actions Solar PV at Kideco, East Kalimantan ▪ To replace the electrical power currently supplied by diesel generators with solar PV. The system implemented and started to ope
Slide 38: Environmental - Adopting the Use of B30 Biodiesel
ESG: Environmental - Adopting the Use of B30 Biodiesel Target B30 out of Total Fuel Usage Reduce GHG emissions intensity by 10% by 2025 MUTU Kideco Our key actions Complying with regulations In 2020, the Indonesian government set out a regulation about the mandatory use of B30 diesel, a blend that u
Slide 39: Increase Land Reclamation and Reforestation Program
ESG: Environmental - Increase Land Reclamation and Reforestation Program Target Increase land reclamation by 20% by 2025 Our key actions Reclamation and reforestation programs In 2020, our total reclamation area reached 5,101 Ha. In addition to that, we offset our emissions by investing in reforesta
Slide 40: Social - Enhancing Community Development
ESG: Social - Enhancing Community Development Highlights initiatives Target Spend 1% of EBIT annually for community development by 2025 In 2021 Indika Energy Group disbursed IDR137 billion for a total of 70 community development initiatives in its operational areas, including COVID 19 relief activit
Slide 41: Social - Enhancing Community Development
ESG: Social - Enhancing Community Development Our key actions As a part of our health pillar, we carried out a number of COVID-19 relief initiatives Rice package donation #SwabAndSaveIndonesia Rumah Oksigen Gotong-Royong Oxygen cylinders and ISO tank Indika Energy Group Indika Energy Group donated R
Slide 42: Governance - Implementing Various Initiatives at Holding Level
ESG: Governance - Implementing Various Initiatives at the Holding Level Initiatives Status 1 Obtain Anti-Bribery Management System 37001 Done Strengthen risk management through the Audit, Risk, and Compliance Committee and an in-house Done 2 web-based management system (PRISMA) 3 Strengthen manageme
Slide 43: Upgrades of ESG Scores by Two Global 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 2021 Score: BBB Score: 34.5 (High Risk) • The company falls into the • Exposure: Our ESG risk average scoring range relative
Slide 44: Appendix
INDIKA ENERGY 44
Slide 45: 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 46: Financial Highlights
Indika Energy’s Financial Highlights Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 3500 1000 918.1 900 3,069.2 772.7 2,962.9 2,782.7 750 2800 800 641.2 668.9 576.2 600 2100 1,939.0 600 508.1 1,813.8 426.7 450 1400 400 289.5 300 173.3 700 200 150 71.9 0 0 0 2018 2019 2020 2021 6M2
Slide 47: 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 (%) 68% EBITDA EBITDA Margin 66.1% Gross Debt Net Debt 66% 1,400 1,302.8 40% 33.9% 8 63.7% 31.8% 35% 6.2 64% 1,050 977.5 30% 6 62% 59.9% 25% 60%
Slide 48: 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 49: Kideco's Financial Highlights
Kideco’s Financial Highlights Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 2,196.9 900 2200 835.4 900 773.7 1,802.2 750 750 1650 1,574.2 1,384.8 574.0 600 600 1,249.5 529.6 492.1 450.3 1100 450 450 300 248.5 300 177.1 208.2 550 138.3 150 150 0 0 0 2018 2019 2020 2021 6M22 2018 2
Slide 50: Kideco's Operational Highlights
Kideco’s Operational Highlights Cash Cost Breakdown Coal Production (mn ton) Coal Sales (mn ton) Labor & 40 40 Others, 35.8 34.9 35.8 34.0 34.3 34.1 2.1% 35 33.0 35 33.0 Freight, O/H, 4.2% 8.5% 30 30 25 25 Material, CM & 12.8% Rental, 20 20 16.4 17.0 44.5% 15 15 10 10 5 5 Gov. Royalty, 0 0 27.9% 201
Slide 51: Kideco's Operational Highlights
Kideco’s Operational Highlights YTD Summary P&L (US$mn) 2Q22 2Q21 YoY 1Q22 QoQ 6M22 6M21 YoY Sales 820.1 461.9 77.6% 564.6 45.2% 1,384.8 876.8 57.9% Gross profit 361.8 136.2 165.6% 212.1 70.6% 574.0 239.9 139.2% Operating profit 338.3 124.7 171.4% 191.2 76.9% 529.5 216.3 144.8% Net income 187.5 69.2
Slide 52: Peer Comparison (3M22 Data)
Peer Comparison (3M22 Data) PRODUCTION ANNUAL (MT) STRIP RATIO (x) CASH COSTS ex Royalty (US$/t) 60 12 11.1 60 49 49 50 10 50 39 40 8 40 33 31 6.3 5.5 30 28 30 25 6 4.0 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 53: 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 10 300 278.3 7.91 10 0 233.3 0 -10 -2.9 200 134.1 -10 -6.0 -20 -20 -30 -21.6 100 -30 -40 -31.4 0 -40 -50 -43.5 2018 2019 2020 2021 6M22 2018 20
Slide 54: Tripatra's Financial Highlights (2)
Tripatra’s Financial Highlights (2) * Revenues Breakdown by Value 6M22: US$134.1 mn 6M21 : US$96.3 mn TPE TPE 9.8% 11.0% TPEC TPEC 90.2% 89.0% Cost Structure 6M22: US$126.2 mn 6M21: US$116.4 mn Others 11.9% Rental Rental Others 8.1% 5.2% 16.0% Constructions Constructions 41.8% Travel 43.3% Travel 7.
Slide 55: Tripatra Backlog
Tripatra Backlog New Contract/ Remaining Contract Adjustment Value Remaining Contract Revenue Recognition Descriptions Value Value in 2022 Per 31 Dec 2021 Per 30 Jun 2022 Per 30 Jun 2022 Tripatra Tripatra Engineers & Constructors 253.5 7.1 120.9 139.7 Tripatra Engineering 23.3 48.4 13.2 58.5 Total (
Slide 56: Indika Resources' Financial Highlights
Indika Resources’ Financial Highlights Revenues (USD mn) Cost of Good Sold (USD mn) Gross Profit (USD mn) 600 450 90 417.4 79.5 491.4 400 80 74.0 500 359.4 350 70 398.8 300.8 293.9 400 373.4 300 60 325.9 250 50 300 200 40 36.2 167.9 190.5 200 150 30 22.6 21.3 100 20 100 50 10 0 0 0 2018 2019 2020 20
Slide 57: Indika Resources' Financial Highlights (2)
Indika Resources’ Financial Highlights (2) * Revenues Breakdown 6M22: US$373.4 mn 6M21: US$156.3 mn Coal MUTU Trading 32.6% 55.2% Coal MUTU Trading 44.8% 67.4% MUTU ASP (USD/ton) * MUTU Cash Cost ex Royalti (USD/ton) 250 90 80.6 80 194.6 200 70 61.3 60.3 60 53.2 150 46.6 50 93.0 40 100 87.6 76.3 30
Slide 58: Interport's Financial Highlights
Interport’s Financial Highlights Revenues (USD mn) Revenue Breakdown 6M22 Gross Profit (USD mn) 10 35 Others 8.7 9 28.7 29.0 19.0% 30 8 7.2 25 7 6.2 6 20 IBP 16.8 5 15.2 8.3% 15 4 3.2 3 10 2.0 5.7 KGTE 2 72.6% 5 1 0 0 2018 2019 2020 2021 6M22 2018 2019 2020 2021 6M22 Net Profit (USD mn) EBITDA (USD
Slide 59: 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 362.4mn USD598.9 mn 5.875% 7-
Slide 60: 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 61: Thank You
INDIKA ENE THANK YOU 61