Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q3 2017 Earnings Presentation
34 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Nov 14, 2017
Slide 1: 3Q17 Performance Results
PT Indo Tambangraya Megah Tbk Public Exposé 3Q17 Performance Results Jakarta, 14 November 2017 1
Slide 2: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 2
Slide 3: Highlights of 3Q17 and 9M17 results
Highlights of 3Q17 and 9M17 results Coal sales Coal sales 5.6 Mt 16.5 Mt Up 0.1Mt Down 3.6 Mt +1% Q-Q -18% Y-Y Unit: US$ million 2Q17 3Q17 Q-Q 9M16 9M17 y-y Total Revenue 381 415 +9% 958 1,164 +21% Gross Profit Margin 26% 32% +6% 20% 30% +10% EBIT 71 107 +52% 105 267 +154% EBITDA 84 123 +46% 142 310
Slide 4: Towards a more sustainable integrated platform
Towards a more sustainable integrated platform 4.7 Mt reserves Acquired a fuel distributor acquisition Improve fuel procurement Improved Strategic value capacity from logistics management from existing new equipment Evaluate potential third-party fuel infrastructure purchase marketing st
Slide 5: 4.7 Mt coal reserves acquisition
4.7 Mt coal reserves acquisition Mahakam river HIGH QUALITY SIMILAR TO TRUBAINDO COAL Bunyut Port TIS 1.1 TCM 6,500 TCM TCM 13.0 TCM 0.8 6.0 TIS 6,400 TIS 5.9 TCM TIS 9.6 CV % Total % Ash % Total (kcal/kg) Sulfur Moisture BEK ITM has acquired 70% stake in PT Tepian Indah TIS Sukses (TIS). Total tr
Slide 6: Fuel business: cost savings, new revenue stream
Fuel business: cost savings, new revenue stream Mahakam river IMM MV ITM has acquired a 75% stake in fuel Bunyut 125,000 dwt distributor company named PT GasEmas KTD (PTGE) to supply diesel to ITM mine sites and sell to 3rd party customers TCM Samarinda BEK Initiative will be to: 1) increase sec
Slide 7: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 7
Slide 8: Operational summary 2017
Operational summary 2017 2017 TARGET : 22.6 Mt QUARTERLY OUTPUT TREND East Unit: Mt 6.6 6.4 Kalimantan 5.7 Bharinto 5.4 5.1 Jorong INDOMINCO Kitadin 13.1 Mt Trubaindo Bunyut Port TRUBAINDO TD.MAYANG Indominco 5.1 Mt BHARINTO Samarinda 4Q16 1Q17 2Q17 3Q17 4Q17e KITADIN 4Q16 1Q17 2Q17 3Q17 4Q17e 2.5 M
Slide 9: Indominco Mandiri
Indominco Mandiri INDOMINCO 2017 TARGET: 13.1 Mt QUARTERLY UPDATES 3Q17 production slightly lower than target due to Operations rainy days affecting production at Indominco area. Ports Hauling Higher average S/R in 2017 to optimize coal reserves West Block Stockpile West Block S/R is higher du
Slide 10: Melak group – Trubaindo and Bharinto
Melak group – Trubaindo and Bharinto 2017 TARGET: TCM 5.1 Mt, BEK 2.5 Mt QUARTERLY UPDATES Trubaindo: Mahakam 3Q17 production output was slightly lower than target due River to weather condition at Trubaindo area. Bunyut Higher SR during 3Q17 mainly due to pre-stripping Port activities and opt
Slide 11: Kitadin Embalut and Tandung Mayang
Kitadin Embalut and Tandung Mayang EMBALUT 2017 TARGET: EMB 1.0 Mt QUARTERLY UPDATES Kitadin Embalut: 3Q17 production achieved according to target TD. Mayang Bontang Kitadin Td.Mayang: city Continue mine closure activities including IMM WB IMM EB mine rehabilitation. ROM Bontang stockpile Po
Slide 12: Jorong
Jorong JORONG 2017 TARGET: 0.9 Mt QUARTERLY UPDATES 3Q17 production output was slightly lower than target due to weather condition. SR higher in 3Q17 due to transition of new mining contractor. Remaining mine reserves will be depleted by 2019 and Pelaihari mine closure plan already approved by
Slide 13: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 13
Slide 14: Global demand trends: 2017 vs 2016
Global demand trends: 2017 vs 2016 CHANGE GEOGRAPHY COMMENTS 2017-16 (Mt.) Domestic supply continues struggle from disruptions caused by safety inspection CHINA Winter demand starts +10 Government policy on banning coal import continues Strong coal burn after monsoon on weak hydro and wind g
Slide 15: Global supply trends: 2017 vs 2016
Global supply trends: 2017 vs 2016 CHANGE GEOGRAPHY COMMENTS 2017-16 (Mt.) Production improves due to less rainfall but Indonesia moving to rainy season INDONESIA +8 in Q4 Strikes tighten supply and will limit supply growth AUSTRALIA -2 Japanese reference price was settled at $94.75/t for Oct’
Slide 16: China: supply shortage overheats market
China: supply shortage overheats market CHINA THERMAL COAL IMPORTS/EXPORTS* Unit: Mt Domestic thermal coal price for FOB QUARTERLY (ANNUALIZED) ANNUAL Qinhuangdao 5,500 kcal/kg NAR coal breached RMB700/t in September and likely to strengthen further in Q4 IMPORT Supply shortage was the key reaso
Slide 17: India: domestic supply tightness driving prices up
India: domestic supply tightness driving prices up INDIA THERMAL COAL IMPORTS* Domestic coal production were struggled with Unit: Mt flooding during monsoon season. Railroads also had impacted as bottlenecks which limited the QUARTERLY (ANNUALIZED) ANNUAL ability of power plants to get timely coal
Slide 18: ITM coal sales 9M17
ITM coal sales 9M17 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 9M17 3.7 Mt Others Hongkong 3.1 Mt Italy Taiwan 1.2 Mt 1% 4% Philippines 1% 4% Japan 7% 22% 0.2 Mt 2.2 Mt KOREA ITALY Korea 0.2 Mt 7% 1.6 Mt 0.6 Mt HK JAPAN CHINA 1.5 India 1.9 Mt TAIWAN 1.2 Mt 10% China 19% THAILAND INDIA Indonesia
Slide 19: Indicative coal sales 2017
Indicative coal sales 2017 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Uncontracted Unsold Indexed 2% 10% 2% 88% Fixed Contracted Contracted 98% TARGET SALES 2017: 23.5 Mt 19
Slide 20: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/t 3Q17 ASP firmed according to supply Monthly NEX tightness 120 200 150 … – ITM ASP: US$73.9/t* (+8% QoQ) 100 50 – NEX (Nov 10, 2017)**: US$100.7/t 0 Monthly NEX 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 21: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 21
Slide 22: Sales revenue
Sales revenue Unit: US$ million +9% QoQ +19% YoY 415 Jorong +4% (QoQ) ; +51% (YoY) 381 10 Kitadin 349 10 20 +34% (QoQ) ; +98% (YoY) 15 56 Bharinto 7 -10% (QoQ) ; +10% (YoY) 10 62 51 Trubaindo 146 124 +18% (QoQ) ; +14% (YoY) 128 Jorong Indominco Kitadin 256 +10% (QoQ) ; +28%(YoY) 234 Bharinto 200 Tru
Slide 23: Average gross margin
Average gross margin Unit : US$ Million 415 256 Revenue 381 234 GPM* (%) 349 200 146 128 124 62 45% 56 51 39% 37% 35% 34% 30% 34% 20 31% 29% 10 15 10 10 51% 7 35% 37% 46% 25% 33% 40% 41% 37% 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 Indominco Trubaindo
Slide 24: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO COST OF GOODS SOLD* Avg. FY15 : 8.5 Unit: Bcm/t Unit: US$/t Avg. FY15: $37.0/t Avg. FY16 : 8.1 Avg. FY16: $32.1/t 13.0 42.2 40.9 10.1 37.8 9.4 32.8 32.2 8.3 7.4 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 * Excluding royalty FUEL PRICE TOTAL COST** Un
Slide 25: EBITDA
EBITDA +46% QoQ +101% YoY Unit: US$ million 123 Jorong 1 -18% (QoQ) ; +23%(YoY) 8 Kitadin 84 +119% (QoQ) ; +622% (YoY) 20 2 Bharinto 3 +47% (QoQ) ; +127% (YoY) 13 Trubaindo 30 +62% (QoQ) ; +69% (YoY) 61 19 1 1 9 18 54 Jorong 51 Indominco +7% (QoQ) ; +76%(YoY) Kitadin Bharinto 31 Trubaindo Indominco
Slide 26: Net income
Net income Unit: US$ million +39% QoQ +102% YoY 67 4 Kitadin +58% (QoQ) ; +111 (YoY) 48 13 Bharinto 1 +49% (QoQ) ; +165 (YoY) 3 9 Trubaindo 12 33 10 +21% (QoQ) ; +21% (YoY) 1 2 Jorong 5 Indominco Kitadin 10 33 33 +2% (QoQ) ; +111%(YoY) Bharinto Trubaindo 16 Jorong Indominco -139% (QoQ) ; -135% (YoY)
Slide 27: Balance sheet
Balance sheet KEY RATIOS CASH POSITION Unit: US$ million Net Gearing (%) 402 Net D/E (times) 328 289 268 226 (32%) (26%) (32%) (36%) (41%) (0.32) (0.26) (0.32) (0.36) (0.41) 2013 2014 2015 2016 3Q17 2013 2014 2015 2016 3Q17 DEBT POSITION Unit: US$ million 0 0 0 0 0 2013 2014 2015 2016 3Q17 27
Slide 28: 2017 capital expenditure plan
2017 capital expenditure plan Units: US$ million 6.4 Indominco 10.6 7.0 Trubaindo 22.2 Realized up to Sep 2017 2017 Capex plan 2.2 Bharinto 6.6 17.3 TRUST 20.1 34.0 ITM Consolidated 60.3 Note: Total capex plan including Jakarta office after elimination 28
Slide 29: Thank you Questions & Answers
Thank you Questions & Answers 29
Slide 30: Appendices
Nim Appendices
Slide 31: Income statement
Income statement Unit: US$ thousand 9M17 9M16 YoY% Net Sales 1,163,813 958,444 21% Gross Profit 346,881 193,663 79% GPM 30% 20% SG&A (79,782) (88,623) EBIT 267,099 105,040 154% EBIT Margin 23% 11% EBITDA 310,274 141,757 119% EBITDA Margin 27% 15% Net Interest Income / (Expenses) 2,050 918 Derivative
Slide 32: Income statement
Income statement Unit: US$ thousand 2Q17 3Q17 3Q16 QoQ% YoY% Net Sales 380,910 415,029 348,968 9% 19% Gross Profit 97,598 134,338 76,314 38% 76% GPM 26% 1% 22% SG&A (27,092) (26,917) (30,719) -1% -12% EBIT 70,506 107,421 47,866 52% 124% EBIT Margin 19% 2% 13% EBITDA 84,181 122,620 61,003 46% 101% EB
Slide 33: 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% 99.00% 99.99% 99.00% 70.00% 99.99% 99.99% Indominco Trubaindo Bharinto Kitadin Jorong TIS TRUST ITMI PT Tambang Raya PT ITM Indonesia PT Indominco PT Trubaindo Coal PT Bh
Slide 34: Strengthening our integration
Strengthening our integration BANPU’S INTERGRATED ENERGY SUPPLIER STRATEGY UPSTREAM MIDSTREAM DOWNSTREAM EXISTING COAL RESOURCE COAL LOGISTICS, COAL-FIRED POWER DEVELOPMENT, MINING TRADING, MARKETING GENERATION NEW UNCONVENTIONAL FUEL PROCUREMENT, GAS-FIRED & RENEWABLES SHALE GAS CHEMICALS MARKETING
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