Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q1 2023 Earnings Presentation
28 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, May 17, 2023
Slide 1: Analyst Briefing 1Q23 Performance Result
Analyst Briefing 1Q23 Performance Result 17 May 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
T/A ITM Highlights
Slide 5: 1Q23 highlights – committed to persevere facing challenges
1Q23 highlights – committed to persevere facing challenges BUSINESS PERFORMANCE GOOD RESPONSIBLE MINER ASP stay elevated Commitment to preserve the environment ITM 1Q23 ASP remained high at $151/ton (-24% QoQ /+0% YoY) despite energy prices has started During 1Q23, ITM has handed over 3,645 ha of to
Slide 6: Efforts to withstand 2023 challenges, aiming for sustainable growth
Efforts to withstand 2023 challenges, aiming for sustainable growth Agile responses ncial Resilien to optimize profitability ina ce Optimizing the key drivers of F revenue and managing cost efficiently. Sustainable growth ent Accountable measures for climate change cem ESG Implementing decarbonizati
Slide 7: Agile responses to optimize profitability
Agile responses to optimize profitability Optimizing the key drivers of revenue Blending strategy ▪ To accommodate various needs, ▪ Ensure production and sales target is achieved. our own coal products could be ▪ Expand trading flexibilities: enrich blending alternatives blended with other coals fro
Slide 8: Adaptive expansion and diversification
Adaptive expansion and diversification Operating mine sites with active production Reserve expansion potential ▪ Current reserves calculation is based on estimates prepared PT Indominco Mandiri (IMM) by certified competent persons Indonesia (considered Location: East Kalimantan suitably experienced
Slide 9: Accountable measures for climate change: decarbonization strategy
Accountable measures for climate change: decarbonization strategy Reduction Improve efficiency in Operational Energy Energy using carbon emitting Excellence Management Substitution resource and substitute the energy resource with Improve operational efficiency to Strengthen usage of data to Replace
Slide 10: 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 11: Coal Market Trends
ITM 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 Shoulder season has arrived in the northern hemisphere, but price remain supported by strong Indian demand. We expect China’s import demand will remain strong this year while Southeast Asia
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 dropped significantly from mid Jan. until late Feb., then the market started stabilizing in the range of Monthly NEX $170-190 through March 2023. Weekly GCNewc is $397.3 i
Slide 14: ITM coal sales
ITM coal sales 1Q23 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 1Q23 Others Malaysia 5% 5% 0.1 Mt Thailand 8% China EUROPE 31% 1Q23 Bangladesh 8% Sales 4.5 Mt Philippines 9% 1.4 Mt 0.6 Mt Japan Indonesia JAPAN 12% 22% CHINA 0.1 Mt 0.1 Mt 0.4 Mt HONGKONG INDICATIVE COAL SALES FY23 INDIA BANGLADESH
Slide 15: Operational Updates
Operational Updates
Slide 16: Operational summary 1Q23
Operational summary 1Q23 2023 Target: 16.6-17.0Mt Unit: Mt East Kalimantan 4.3 4.1 3.8 3.8 IMM 6.4 Mt GPK 0.2 Mt Bontang Coal TCM Terminal Bunyut 2.7 Mt Port 1Q22 4Q22 1Q23 2Q23e TIS SR (bcm/t) 11.1x 11.0x 11.5x 12.2x 0.03 Mt Samarinda BEK 6.8 Mt Central Balikpapan Kalimantan ▪ 1Q23 production achie
Slide 17: Coal operations: Indominco Mandiri
Coal operations: Indominco Mandiri 2023 Target: 6.4Mt Unit: Mt Indominco 1.5 1.6 1.5 1.6 Bontang City West Block East Block Sea conveyor Asphalt haul road 1Q22 4Q22 1Q23 2Q23e Santan River 9.8x 10.5x 11.6x 15.4x SR (bcm/t) Bontang port Inland conveyor ▪ 1Q23 production achieved target of 1.5Mt with
Slide 18: Coal operations: Trubaindo Coal Mining
Coal operations: Trubaindo Coal Mining 2023 Target: 2.7Mt Unit: Mt Mahakam River Bunyut Port East Kalimantan Kedangpahu 0.8 0.8 River 0.7 0.6 North Block Trubaindo 1Q22 4Q22 1Q23 2Q23e SR (bcm/t) 15.5x 12.7x 18.0x 13.7x South Block 1 Heading toward Bharinto South Block 2 ▪ 1Q23 production achieved t
Slide 19: Coal operations: Bharinto Ekatama
Coal operations: Bharinto Ekatama 2023 Target: 6.8Mt Unit: Mt Mahakam Bunyut River Port East 1.8 1.6 1.6 Kalimantan Kedangpahu River 1.1 Central Kalimantan 1Q22 4Q22 1Q23 2Q23e SR (bcm/t) 8.8x 10.4x 9.1x 9.0x Bharinto South Kalimantan ▪ 1Q23 production was slightly below the target at 1.6Mt due to E
Slide 20: Coal operations: Jorong Barutama Greston
Coal operations: Jorong Barutama Greston 2023 Target: 0.5Mt Unit: Mt Pelaihari 0.3 Hauling road 0.2 0.1 0.1 1Q22 4Q22 1Q23 2Q23e SR (bcm/t) 11.5x 15.5x 15.0x 11.1x Jorong Java Sea Jorong Port ▪ Despite bad weather at the site, 1Q23 production achieved Operations target of 0.1Mt with lower strip rati
Slide 21: Financial Updates
Nitm Financial Updates
Slide 22: Profitability – Income statement
Profitability – Income statement SALES VOLUME AND ASP REVENUE 14 Unit: Mt and US$/t 250 Unit: US$ million 198.1 Maintaining financial performance 12 200 1,020 amidst external challenges 150.4 150.9 10 686 150 8 Revenue/ EBITDA/ net profit of 1Q23 640 6 5.1 decreased by -33%/-46%/-40% QoQ, 4.3 4.5 10
Slide 23: Cost analysis
Cost analysis TOTAL COST BREAKDOWN Unit: US$/t 109 97 74 ▪ Total cost excluding royalty declined from $81/ton in 4Q22 28 25 Royalty 18 to $72/ton in 1Q23 (-11% QoQ) due to: 1Q22 4Q22 1Q23 81 ▪ Declining of fuel price as one of key cost drivers. 72 ▪ Implementation of cost effectiveness program which
Slide 24: Balance sheet and key ratios
Balance sheet and key ratios 1Q23 BALANCE SHEET BANK LOAN DETAILS KEY RATIOS Unit: US$ million Unit: US$ million Debt to Equity (x) Borrowing 26 0.03 0.03 Current maturities of long-term bank loan 0.02 0.02 Other Liabilities 0.01 0.01 1,084 Cash 1,531 FY21 FY21 FY22 FY22 1Q23 1Q23 13 13 Net Gearing
Slide 25: Capital expenditure
Capital expenditure Unit: US$ million Total 1Q23 CAPEX actual: 39.9 $7.4M 1.6 Total FY23 CAPEX budget: $84.3M 14.7 18.7 18.0 11.9 4.7 5.9 0.5 11.7 0.8 0.4 2.2 1.8 3.0 0.0 0.0 0.6 3M23 1Q23 FY23B 3M23 1Q23 FY23B 3M23 1Q23 FY23B 3M23 1Q23 FY23B 3M23 1Q23 FY23B 1 Coal mines TRUST Greenfield projects Re
Slide 26: Q&A Session
N ITM O&A Session
Slide 27: Income statement
Income statement Unit: US$ thousand 1Q23 4Q22 QoQ (%) 1Q22 YoY(%) Net Revenues 685,586 1,019,775 (33%) 639,933 7% Gross Profit 266,916 487,682 (45%) 336,331 (21%) Gross Profit Margin 39% 48% 53% Selling Expenses (35,289) (63,079) (44%) (28,754) 23% General And Administration Expenses (10,768) (14,99
Slide 28: 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
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