PT Indika Energy Tbk · IDX:INDY
PT Indika Energy Tbk — FY2012 Earnings Presentation
47 slides from PT Indika Energy Tbk's earnings presentation, Mar 27, 2013
Slide 1: Analyst Meeting: 2012 Performances
PT Indika Energy Tbk. ANALYST MEETING 2012 Performances March 27, 2013, Jakarta
Slide 2: Disclaimer
DISCLAIMER Investors and security holders are cautioned that this communication contains forward-looking statements and that forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of PT Indika Energy Tbk.
Slide 3: Table of Content
TABLE OF CONTENT • 2012 in Review 4 • Key Developments 5 • Financial & Operational Highlights 12 • What to expect in 2013 33 • Recent Developments in 2013 41 • Appendix 44 3
Slide 4: 2012 in Review
| 2012 IN REVIEW 4
Slide 5: Key Developments in 2012
KEY DEVELOPMENTS IN 2012 Acquired 60% Cirebon Electric Power stake in PT Mitra reached the Commercial Energi Agung Operation Date (COD) (“MEA”) and started selling electricity to PLN February ’12 March ’12 April ’12 May ’12 June ’12 Jul ’12 Completed a Completed placement of 28.75% acquisition of 85
Slide 6: Petrosea Refloating
PETROSEA REFLOATING Public 30.2% Listing : The Indonesian Stock Exchange Refloat : 28.75% of existing shares AFTER Price : Rp 36.000/share REFLOATING Indika Energy 69.8% Gain Net Proceeds Not Recorded in Consolidated Statements of US$57.2 US$106.7 million Comprehensive Income million INTERNATIONAL F
Slide 7: PT Mitra Energi Agung
PT MITRA ENERGI AGUNG On March 21, 2012, Indika completed the acquisition of 60% stake in PT Mitra Energi Agung, a greenfield coal asset located in East Kalimantan for US$27 mn Business Description • MEA hold an IUP license • The concession covers an area of 5,000 ha located at East Kutai, East Kali
Slide 8: PT Multi Tambangjaya Utama (1)
PT MULTI TAMBANGJAYA UTAMA (1) On May 31, 2012, Indika completed acquisition of 85% stake in MTU from Asia Thai Mining Co. Ltd. (“ATM”) & an individual shareholder, and its coal right from International Coal Trading Limited Total transaction value of US$108.9m (on a 85% basis) for MTU shares and ass
Slide 9: PT Multi Tambangjaya Utama (2)
PT MULTI TAMBANGJAYA UTAMA (2) COAL QUALITY COAL RESERVES & RESOURCES PARAMETER THERMAL* COKING* DESCRIPTION THERMAL** COKING** TOTAL Calorific Value (kcal/kg) 6.721 – 7.208 7.808 Resources (mn tons) 51,6 23,6 75,2 Total Moisture (%) 6,7 – 14,2 12,8 Reserves (mn tons) 31,2 9,4 40,6 Ash (%) 5,5 – 13,
Slide 10: Cirebon Electric Power
CIREBON ELECTRIC POWER On July 27, 2012 - Reached Commercial Operation Date (COD) and started selling electricity to PLN • Sources of Coal : Kideco: 1.85 mn tons p.a Others : 1.0 mn tons p.a The Power Purchase Agreement (PPA), a 30 years contract between PT PLN (Persero) February ’12 and CEP March ’
Slide 11: Liabilities Management
LIABILITIES MANAGEMENT BONDS • June 2012, Indika has retired its US$65 million senior notes due 2012 BANK LOAN • April 2012, Indika has paid US$180 million short term loan related to MBSS acquisition to UBS AG, Citibank N.A and Standard Chartered Bank • May 2012, Indika has acquired US$235 million s
Slide 12: Financial & Operational Highlights
| FINANCIAL & OPERATIONAL HIGHLIGHTS 12
Slide 13: Audited 2012 Financial Highlights
AUDITED 2012 FINANCIAL HIGHLIGHTS • Net Revenue US$ 749.7 million, 26.3% increase over US$ 593.4 million reported in 2011 • Gross Profit US$ 193.2 million, 47.8% increase over US$ 130.8 million reported in 2011 • Income from associates companies declined by 19.5% YoY to US$ 179.0 million attributabl
Slide 14: Indika's 2012 & 2011 Financial Highlights
INDIKA’S 2012 & 2011 FINANCIAL HIGHLIGHTS 2012 REVENUES Coal 2012 NET PROFIT Trading Petrosea 1.6% 13.2% MBSS 5.6% Petrosea Tripatra 51.4% 28.2% Tripatra 4.9% Kideco MBSS 76.4% 18.9% US$749.7 million US$68.7 million Coal 2011 REVENUES trading 2011 NET PROFIT 3.1% Petrosea 18.9% Tripatra 32.0% MBSS P
Slide 15: Indika's Financial Highlights: Cash Balance & Debt
INDIKA’S FINANCIAL HIGHLIGHTS 1) Cash Balance & Debt (US$ million) 1,200 1,072.9 Lease 145.5 397.4 Bank loan 600 421.1 2) 530.0 421.1 Bond 0 Cash Balance Debt Notes : 1) Consolidated Financial Statements, 31 December 2012 - Audited 2) US$ 230 million due 2016 & US$ 300 million due 2018 15
Slide 16: Indika's 2012 Capex Realization
INDIKA’S 2012 FINANCIAL HIGHLIGTS Capex Realization Allocation 2012 Budget 2012 2012 (US$ million) Realization Realization (US$ million) % Petrosea 180.0 149.0 82.7% MBSS 38.1 48.6 127.5% Tripatra 0.7 2.4 342.9% Resources 30.5 10.0 32.8% Holding 6.9 2.5 36.2% Total 256.2 212.5 82.9% 16
Slide 17: Indika's 2012 Financial Highlights
INDIKA’S 2012 FINANCIAL HIGHLIGHTS REVENUES (US$ million) GROSS PROFIT (US$ million) OPERATING PROFIT (US$ million) 800 749.7 250 40 700 35 34.7 207.0 200 193.2 5.4 600 593.4 30 21.1 5.8 50.5 25 500 187.5 150 208.6 PTRO: US$ 385.5 130.8 20 400 MBSS: US$ 141.1 17.3 TPE : US$ 210.1 55.9 15 13.9 100 48
Slide 18: Kideco's 2012 Financial Highlights
KIDECO’S 2012 FINANCIAL HIGHLIGHTS REVENUE (US$ million) GROSS PROFIT OPERATING PROFIT (US$ million) (US$ million) 2,800 1,200 1,050 2,357.3 2,266.6 823.9 2,100 532.9 864.7 629.2 693.0 800 733.4 700 228.8 242.3 72.7 567.4 84.3 1,400 585.0 143.4 153.1 213.0 220.7 625.8 400 350 213.3 575.9 224.0 700 1
Slide 19: Kideco's 2012 Capex Realization
KIDECO’S 2012 CAPEX REALIZATION Allocation 2012 12M12 2012 Budget Realization Realization (US$ Million) (US$ Million) % Maintenance 29.2 16.1 55.1% Expansion- 40.6 32.7 80.5 % 8th infrastructure expansion Total 69.8 48.8 69.9% 19
Slide 20: Kideco's 2012 Operating Highlights
KIDECO’S 2012 OPERATING HIGHLIGHTS OVERBURDEN REMOVAL COAL PRODUCTION STRIPPING RATIO (million bcm) (US$ per ton) 250 239.4 40 8 7.00 219.0 6.95 34.2 35 7 62.3 31.5 200 52.6 30 8.7 6 6.64 7.81 7.9 150 25 5 56.3 64.7 8.9 7.05 7.31 20 8.0 4 100 15 3 55.5 55.1 8.6 6.98 6.43 7.9 10 2 50 54.6 5 1 7.14 6.
Slide 21: Petrosea's 2012 Financial Highlights
PETROSEA’S 2012 FINANCIAL HIGHLIGHTS REVENUE GROSS PROFIT OPERATING PROFIT (US$ million) (US$ million) (US$ million) 450 120 112.7 90 385.5 80.1 400 80 100 27.5 350 70 19.6 97.3 300 80 76.3 60 263.8 52.4 250 21.8 39.0 50 79.0 113.7 Mining: US$ 356.8 60 15.0 28.0 200 Services: US$ 26.5 40 20,0% E&C :
Slide 22: Petrosea's 2012 Operational Highlights
PETROSEA’S 2012 OPERATIONAL HIGHLIGHTS OVERBURDEN VOLUME COAL GETTING VOLUME (million ton) (million ton) 180 12 160 156.72 9.87 10 140 40.50 120 116.10 8 3.16 6.84 100 33.12 46.23 6 1.98 80 2.71 31.21 60 4 2.03 38.06 40 29.09 2.32 2 1.65 20 22.68 31.93 1.68 1.18 0 0 2011 2012 2011 2012 Overburden 20
Slide 23: Petrosea's Backlog in 2012
PETROSEA’S BACKLOG IN 2012 Client Description Contract Scope of Work Time Period Remaining Addition/ Adjusted Revenue Remaining Value Contract Adjustment Remaining Recognition Contract Value In 2012 Contract Value Value (US$ mn) (US$ mn) (US$ mn) (US$ mn) (US$ mn) (US$ mn) Per Period Per 31 Dec ende
Slide 24: Santan's 2012 Financial Highlights
SANTAN’S 2012 FINANCIAL HIGHLIGTHS REVENUE GROSS PROFIT OPERATING PROFIT (US$ million) (US$ million) (US$ million) 240 225.5 75 40 67.6 64.3 30.9 66.9 60 17.0 180 14.6 30 156.2 6.6 45 13.6 42.9 62.5 120 19.1 20 6.8 13.0 33.5 30 20.0 44.5 13.9 10.4 3.6 60 42.4 10 15 3.7 37.4 51.6 17.0 16.7 7.1 5.8 0
Slide 25: Santan's 2012 Operating Highlights
SANTAN’S 2012 OPERATING HIGHLIGHTS OVERBURDEN REMOVAL COAL PRODUCTION STRIPPING RATIO (X) (million bcm) (million ton) 35 3 14 32.7 12.45 12.45 2.6 11.81 30 12 10.1 11.42 25 0.9 10 11.13 2 20.4 1.7 20 8 13.87 5.1 9.8 12.95 0.5 0.6 15 6 5.5 1 0.4 12.61 10 4 11.26 7.0 0.6 4.7 0.4 5 2 5.8 0.5 11.94 12.0
Slide 26: MBSS' 2012 Financial Highlights
MBSS’ 2012 FINANCIAL HIGHLIGHTS REVENUE GROSS PROFIT OPERATING PROFIT (US$ million) (US$ million) (US$ million) 160 60 56.4 50 141.5 45 44.6 140 50 49.4 121.6 15.6 40 37.5 120 38.2 12.6 14.6 35 40 100 36.9 10.9 30 13.5 9.9 35.2 25 80 Tug&Barges: US$106.6 30 11.8 31.4 FC: US$ 34.9 8.7 30,9% 20 60 34.
Slide 27: MBSS' 2012 Operational Highlights
MBSS’ 2012 OPERATIONAL HIGHLIGHTS BARGING VOLUME FLOATING CRANE VOLUME (million ton) (million ton) 38 21 32.8 17.5 17.5 10.0 25 23.6 5.29 5.07 14 7.44 8.3 3.98 4.56 13 5.80 7 7.9 4.53 4.36 5.47 4.89 6.48 3.70 3.51 0 0 2011 2012 2011 2012 Barging 2011 2012 Changes Floating Crane 2011 2012 Changes Kid
Slide 28: MBSS' Backlog in 2012 (Barging)
MBSS’ BACKLOG IN 2012 Client Remaining New Revenue Remaining Period Contract Value Contract/Addition Recognition Contract Value (US$ mn) (US$ mn) (US$ mn) (US$ mn) Per Period Ended Per 31 Dec 2011 31 Dec 2012 31 Dec 2012 Barging Adaro Energy 2010-2017 151.2 17.2 134.0 Kaltim Prima Coal 2006-2014 48.
Slide 29: MBSS' Backlog in 2012 (Transshipments)
MBSS’ BACKLOG IN 2012 Client Period Remaining New Revenue Remaining Contract Value Contract/Addition Recognition Contract Value (US$ mn) (US$ mn) (US$ mn) (US$ mn) Per Period ended Per 31 Dec 2011 31 Dec 2012 31 Dec 2012 Transshipments Kideco Jaya Agung 2010-2019 22.8 57.7 5.3 75.2 Adaro Energy 2008
Slide 30: Tripatra's 2012 Financial Highlights
TRIPATRA’S 2012 FINANCIAL HIGHLIGHTS REVENUE GROSS PROFIT OPERATING PROFIT (US$ million) (US$ million) (US$ million) 225 210.1 25 8 7.2 189.7 22.5 7.0 20 6 180 8.1 2.9 69.4 9.7 62.4 14.6 4 0.6 15 135 3.3 1.5 2 Contracts: US$ 152.6 11.7 3.4 57.8 KPI: US$ 56.8 10 2.0 59.7 Others US$ 0.7 0 0.8 90 5.3 5
Slide 31: Tripatra's Backlog in 2012
TRIPATRA’S BACKLOG IN 2012 Client Project Description Contract Period Remaining Addition/ Adjusted Revenue Remaining Value Contract Amendment Remaining recognition Contract Value in 2012 contract Value Value (US$ mn) (US$ mn) (US$ mn) (US$ mn) (US$ mn) (US$ mn) Per Period Per 31 Dec ended 31 Dec 31
Slide 32: What Brought Down Net Profit in 2012 Compared to 2011?
What bring down Net Profit in 2012 compared to 2011 ? (US$ million) 140 127.9 120 100 80 68.7 60 40 20 0 2011 2012 • Operating Expenses up by US$ 48.9 million (+ 44.6% YoY) from US$ 109.7 million to US$ 158.6 million, mainly attributable to increases in : Salary, Wages & Employee Benefit US$ 19.7 mi
Slide 33: What to Expect in 2013
: o 7 \ | WHAT TO EXPECT IN 2013 ©
Slide 34: Coal Was Affected Significantly in 2012, Will It Recover in 2013
COAL WAS AFFECTED SIGNIFICANTLY IN 2012, WILL IT RECOVER IN 2013…. 200 Jan’12 116.5 168.4 175 Mar 13 150 130.0 92.9 112.3 119.5 125 112.4 112.7 95.2 91.8 100 88.9 79.5 81.6 103.4 80.5 77.4 78.7 75 74.5 51.1 90.1 Mar 13 50 2007 Average 2008 Average 2009 Average 2010 Average 2011 Average 2012 Average
Slide 35: Supply and Demand Forecast
SUPPLY AND DEMAND FORECAST Demand and supply growth of ’13 will be lower than the recent past due to continued economic slowdown +/- 2012 +/- 2013 Remarks Asia 59 632 38 670 China 40 180 15 195 2012 1~10 import 154Mt (+15Mt YoY) Demand India 13 106 15 121 3.900MW new P.P(import) to be on-line during
Slide 36: Forecast: Gentle Slope Rather Than Steep Climb
FORECAST : GENTLE SLOPE RATHER THAN STEEP CLIMB Short-term (3 months) The current price for Chinese domestic coal (BSPI), around 630RMB, is near the level of production cost for partial minters, applying pressure. So the price might be supported at this level. Historically, the price trend for gCnew
Slide 37: Long Term Growth-Oriented Strategy Remains Intact
LONG TERM GROWTH-ORIENTED STRATEGY REMAINS INTACT Indika has a growth-oriented strategy aimed at deepening core expertise and enhancing integration Integrate diverse energy platforms and achieve operational synergies Continue to diversify source of earnings and stabilize cashflow Increase coal reser
Slide 38: 2013 Key Assumptions
2013 KEY ASSUMPTIONS Exchange rate Rp9.500/US$ 1 Thermal Coal Price (New Castle US$90/ton Index) Fuel Cost (Diesel)-Pertamina Rp10,900/liter Resources Average Selling Price (ASP) US$55.0/ton Production Volume 37.0 mn tons Kideco Strip Ratio (SR) 6.5 X Cash Cost excl. Royalty US$39.07/ton Production
Slide 39: 2013 Capital Expenditures
2013 CAPITAL EXPENDITURES Indika 2013 Budget (US$ mn) % Petrosea 33.9 43.4% MBSS 1.9 2.4% Tripatra 3.0 3.8% MTU 34.9 44.6% Holding 4.5 5.8% Total 78.2 100.0% Kideco 2013 Budget (US$ mn) % Total 42.7 100.0% 39
Slide 40: 2013 Backlog
2013 BACKLOG Company 31st Dec 2012 (US$ mn) PTRO 1,772.3 MBSS 405.8 Tripatra 641.6 Total 2,819.7 40
Slide 41: Recent Developments in 2013: Senior Notes Issuance
RECENT DEVELOPMENTS IN 2013 • 24 January 2013, Indika completed the issuance of a US$500 million 6.375% Senior Notes due 2023 Use of proceeds to : • Repay short term debt $235 million that US$500,000,000 was raised to fund MTU acquisition Indo Energy Finance II B.V. • Prefund US$230 million 2016 Bon
Slide 42: Recent Developments in 2013: Southwest Bird's Head PSC
RECENT DEVELOPMENTS IN 2013 20 February 2013, Indika signed an agreement with Total E&P Indonesia West Papua to acquire a 10% participating interest in the Southwest Bird’s Head PSC • A large permit of 7,176 km2 with terrain of 1/3 swamp and 2/3 offshore at water depth up to 30 m off the coast of We
Slide 43: Kideco's Dividends
RECENT DEVELOPMENTS IN 2013 Kideco’s Dividends : • Declared in March 2013, final dividend US$ 235.0 million • IE shares - US 108.1 million • Declared in November 2012, Interim dividend U$100.0 million • IE received US$46.0 million • Total dividend declared US$335.0 million. This represent 88.1% of 2
Slide 44: Appendix
| APPENDIX 44
Slide 45: Indika's Financial Highlights (1)
INDIKA’S FINANCIAL HIGHLIGHTS (1) Description 2009 2010 2011 2012 audited audited audited Audited (in USD million) (in USD million) (in USD million) (in USD million) Revenue 239.1 414.5 593.4 749.7 Gross Profit 59.4 68.4 130.8 193.2 Equity in profit of ass & jointly controlled entities 140.9 158.9 2
Slide 46: Indika's Financial Highlights (2)
INDIKA’S FINANCIAL HIGHLIGHTS (2) Description 2009 2010 2011 2012 audited audited audited audited (in USD million) (in USD million) (in USD million) (in USD million) Cash Balance 502.5 475.3 560.8 421.1 Current Assets 504.8 526.5 702.2 690.7 Total Assets 1,236.5 1.260.5 2,015.0 2,347.3 Current Liabi
Slide 47: Thank You
Thank You • PT Indika Energy Tbk • Mitra Building, 7th floor • Jl.Jend.Gatot Subroto Kav.21 • Jakarta 12930, Indonesia • Phone. (62 21) 25579888 • Email : investor.relations@indikaenergy.co.id