PT Indika Energy Tbk · IDX:INDY
PT Indika Energy Tbk — 6M14 Earnings Presentation
16 slides from PT Indika Energy Tbk's earnings presentation, September 2014
Slide 1: PT Indika Energy Tbk. Company Update 6M14
PT Indika Energy Tbk. Company Update 6M14
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: Recent Regulatory and Macro Developments
RECENT REGULATORY AND MACRO DEVT’S 1. Export License expected to be in effect by Oct 1 2014. • Advance payment on royalty • test financial fitness • distinguish between legit vs illegitimate miners 2. China planned import restrictions on coal quality by 2015. 3. Government expects FY14 total coal pr
Slide 4: Thermal Coal Price vs. Crude Oil Price
Thermal Coal Price vs. Crude Oil Price 200 USD/ton USD/barrel 5 Sept’ 14 93.32 100 65.25 5 Sept’ 14 2007 2008 2009 2010 2011 2012 2013 2014 0 Newcastle Coal Price WTI Crude Oil Price Source: Platts & U.S. Energy Information Administration 4
Slide 5: Internal Actions & Policies
INTERNAL ACTIONS & POLICIES 1. Cash and Cost Management • Scale back on exploration, Capex driven towards ROI • Subsidiaries (Petrosea, MBSS, Tripatra) will be cash flow self sustaining 2. Covenant management (FCCR >2.5x, debt to cap at 50%). 3. Dividends payout from Kideco 80%, subsidiaries 25%. 5
Slide 6: 6M14 Performance & Outlook
6M14 PERFORMANCE & OUTLOOK 2014 Budget 6M14 2014 Revised Average Selling Price USD51.8/ton USD52.8/ton US 51.2/ton (ASP) Kideco Production Volume 40 mn tons 19.9 mn tons 40.0 mn tons Strip Ratio (SR) 6.8 X 6.3 X 6.8 X Cash Cost excl. Royalty USD38.9/ton USD36.8/ton USD38.0/ton Capex USD21.3 mn USD1.
Slide 7: Capex Breakdown
CAPEX BREAKDOWN 2014 Revised 6M14 2014 Allocation Budget Realization Realization (USD mn) (USD mn) % Petrosea 45.0 19.0 42.2% MBSS 10.0 1.9 12.7% Tripatra 3.8 0.04 1.1% MUTU 13.2 2.1 - Resources 1.6 1.6 100% Office Building 25.0 6.8 27.2% Holding & incubating unit 3.0 0.7 23.3% Total 101.6 32.14 31.
Slide 8: Kideco's 6M14 Operating Highlights
Kideco’s 6M14 Operating Highlights Overburden Removal (mn bcm) Coal Production (mn ton) Stripping Ratio (X) 19.9 20 18.6 15 160 6.34 6.33 126.2 16 117.7 9.7 120 9.6 10 12 6.26 6.24 60.4 60.3 80 8 40 5 65.8 10.2 57.4 4 8.9 6.48 6.42 0 6M13 6M14 0 0 6M13 6M14 6M13 6M14 Coal Sales (mn ton) Average Sell
Slide 9: Kideco's 6M14 Financial Highlights
Kideco’s 6M14 Financial Highlights Revenue (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 1,200 1,124.1 1,064.5 308.7 320 293.1 300 575.0 240 800 527.0 138.6 128.6 189.7 174.4 160 150 88.7 80.8 400 537.5 170.1 80 164.5 549.2 101.0 93.6 0 0 0 6M13 6M14 6M13 6M14 6M13 6M14 Margin 17.8% Margi
Slide 10: Kideco's 6M14 Balance Sheet Summary
Kideco’s 6M14 Balance Sheet Summary Description 2011 2012 2013 6M134 6M14 (in USD mn) audited audited audited unaudited unaudited Current assets 604 523.7 457.6 523.8 475.3 Total assets 817.7 745.1 686.6 769.2 669 Current liabilities 316.5 312.1 272 358.5 313.1 Debt 7.3 0 0 0 0 Total equity 456 386
Slide 11: Indika's 6M14 Financial Highlights
Indika’s 6M14 Financial Highlights Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) * 600 100 97.9 40 89.3 523.1 33.1 413.3 47.2 281.6 47.3 13.3 TPE : USD 191.5 300 227.9 PTRO : USD 169.1 50 20 MBSS : USD 74.7 Coal trading: USD54.1 KPI : USD 32.5 12.7 Others : USD 1.3 50.6 3.3 19.8
Slide 12: Indika's 6M14 Cash Balance & Debt
Indika’s 6M14 Cash Balance & Debt (USD mn) 1,200 999.2 74.8 Lease4) 124.4 Bank loan 600 1) 3) 468.7 Bond 800.0 391.1 77.6 2) 0 Cash Balance Debt Note : 1) Consists of : Petrosea: USD69.5mn, MBSS: USD 46.1 mn, Tripatra: USD 113.5 mn & Indika: USD 239.6 mn (including IIC, IIR and Others). 2) Other fin
Slide 13: Key Business Indicators
Key Business Indicators Revenue (USD mn) Adj. EBITDA (USD mn) & EBITDA Margin (%) 700 60% 863 750 600 50% 593 500 40% 523 400 333 30% 300 250 261 266 20% 200 100 10% 0 0% 2011 2012 2013 1H14 2011 2012 2013 1H14 EBITDA EBITDA Margin Adj. EBIT (USD mn) & EBIT Margin* (%) Adj. EBIT to Assets (ROA) 300
Slide 14: Key Credit Ratios (1)
Key Credit Ratios (1) Gross Debt & Net Debt / Adj. EBITDA (x) Debt / Capital (%) 4.61 4.08 55.5% 3.76 3.57 3.12 52.4% 2.43 2.42 51.3% 50.3% 50.7% 1.76 1.87 1.61 2011 2012 2013 6M13 6M14 2011 2012 2013 6M13 6M14 Gross Debt Net Debt Adj. FFO / Debt (%) Adj. FCF / Debt (%) 23.1% 20.8% 9.6% 16.9% 5.9% 6
Slide 15: Key Credit Ratios (2)
Key Credit Ratios (2) Adj. EBITDA / Interest* (x) Adj. EBIT / Interest* (x) 5.61 4.44 4.12 3.35 3.60 3.23 2.90 2.66 1.97 1.74 2011 2012 2013 6M13 6M14 2011 2012 2013 6M13 6M14 Adj. FFO + Interest / Interest (x) Adj. EBITDA Less Capex / Interest* (x) 4.19 5.02 3.13 3.01 2.75 2.47 2.72 2.52 0.82 (2.64
Slide 16: Thank you
Thank you PT Indika Energy Tbk. Mitra Building Jl. Jend. Gatot Subroto Kav. 21 Jakarta 12930 - Indonesia (6221) 2557-9888 www.indikaenergy.co.id investor.relations@indikaenergy.co.id 16