Pt Indo Tambangraya Megah Tbk · IDX:ITMG

Pt Indo Tambangraya Megah Tbk — Q3 2019 Earnings Presentation

30 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Nov 13, 2019

  1. Slide 1: Analyst Briefing 3Q19 Performance Results

    ANALYST BRIEFING 3Q19 PERFORMANCE RESULTS Jakarta, 13th November 2019 1

  2. Slide 2: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 2

  3. Slide 3: Highlights of 3Q19 and 9M18 results

    Highlights of 3Q19 and 9M18 results Coal sales Coal sales 6.5 Mt 18.7 Mt Up 0.2 Mt Up 2.7 Mt +3% Q-Q +17% Y-Y Unit: US$ million 2Q19 3Q19 Q-Q 9M18 9M19 y-y Total Revenue 440 412 -6% 1,415 1,304 -8% Gross Profit Margin 16% 18% +3% 30% 18% -12% EBIT 39 38 -2% 321 134 -58% EBITDA 54 53 -2% 366 180 -51%

  4. Slide 4: Maximizing Bottom Line Profit

    The three core strategies to face the softening of coal price Maximizing Bottom Line Profit Margin Cost Financial Improvement Efficiency Management • Seek new customer segments in • Pit optimization to match current • Applying effective cash domestic & South East Asia coal price environment. managem

  5. Slide 5: ITM kept its cost conscious approach along its value chain

    ITM kept its cost conscious approach along its value chain to ensure bottom line target achieved 1 3 COAL TRADING SCHEME COMPETITIVE FUEL PRICE Tap into new markets and acquire 3rd party Ensuring most competitive fuel price coal to increase coal product diversity procured to support cost reduction i

  6. Slide 6: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 6

  7. Slide 7: Operational Summary 2019

    Operational Summary 2019 2019 TARGET: 23.5 Mt OUTPUT TREND East Unit: Mt Kalimantan 6.4 6.4 6.8 INDOMINCO 5.8 5.6 5.4 12.5 Mt Bharinto Jorong Bunyut Port TRUBAINDO Kitadin 4.9 Mt Trubaindo EMBALUT 1.4 Mt Indominco BHARINTO Samarinda 3.0 Mt Balikpapan 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 East 3Q18 4Q18 1Q19

  8. Slide 8: Indominco Mandiri

    Indominco Mandiri SCHEMATIC OUTPUT TREND 2019 target: 12.5 Mt Operations Unit: Mt Ports Hauling 3.7 3.9 0.5 3.3 3.3 Stockpile 0.4 3.1 West Block 0.5 0.5 2.8 0.4 ROM Mine Crusher 0.6 W Block stockpile stockyard 3.3 3.4 East Block 2.7 2.7 2.8 2.2 E. Block Bontang City 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19e 35

  9. Slide 9: Melak group – Trubaindo and Bharinto

    Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND 2019 target: TCM 4.9 Mt Unit: Mt Mahakam 2.5 BEK 3.0 Mt River 2.1 2.0 Bunyut 1.9 Port 1.7 1.8 1.0 0.7 0.7 0.7 0.7 Bharinto East Kalimantan Product coal 0.7 conveyor, stacking, stockpile 1.4 1.3 1.5 40km 1.2 Trubaindo Mine to port 1.1 1.1 Op

  10. Slide 10: Kitadin Embalut and Tandung Mayang

    Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND 2019 target: EMB 1.4 Mt Unit: Mt 0.4 0.4 0.3 0.3 0.3 TD. Mayang 0.2 Bontang city IMM WB IMM EB ROM Bontang stockpile Port 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19e Embalut S/R (bcm/t) 5km Mine to port - Embalut : 9.2x 9.8x 12.8x 11.9x 10.1x 8.6x Embalut

  11. Slide 11: Jorong

    Jorong SCHEMATIC OUTPUT TREND 2019 target: 1.7 Mt Unit: Mt 0.5 0.5 0.3 0.3 0.3 0.3 Pelaihari Haul road 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19e S/R (bcm/t) : 6.5x 6.5x 10.5x 8.1x 6.7x 7.0x 20km COMMENTS Jorong  3Q19 production achieved as according to target. Coal  Strip ratio in 3Q19 lower than previous qu

  12. Slide 12: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 12

  13. Slide 13: Global coal demand trends: 2019 vs 2018

    Global coal demand trends: 2019 vs 2018 CHANGE GEOGRAPHY COMMENTS 2019-18 (Mt)  Import remained strong in Q3 as buyers speed up imports amid fear of import ban.  Weak demand, high stocks and production recovery continue pressure CHINA +30 domestic coal prices.  Possible to looser import restricti

  14. Slide 14: Global coal supply trends: 2019 vs 2018

    Global coal supply trends: 2019 vs 2018 CHANGE GEOGRAPHY COMMENTS 2019-18 (Mt)  Government approved production increase to boost royalties.  High China demand continues to support Indonesian coal prices. INDONESIA +40  Online monitoring system which will be implemented from 1st Nov is likely to s

  15. Slide 15: ITM coal sales 9M19

    ITM coal sales 9M19 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 9M19 6.0 Mt 3.3 Mt Malaysia Taiwan Korea 2% Vietnam 3% 0.5 Mt 3% 1.0 Mt Hongkong 4% 1.0 Mt 3% 0.5 Mt Thailand China KOREA 5% 33% 0.7 Mt CHINA 0.7 Mt Bangladesh VIETNAM 5% 1.1 Mt HK 1.5 JAPAN 0.3 Mt Philippines INDIA TAIWAN 1.1 Mt 6%

  16. Slide 16: Indicative coal sales 2019

    Indicative coal sales 2019 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Indexed 8% Contracted Contracted 100% Fixed 92% TARGET SALES 2019: 25.5 Mt 16

  17. Slide 17: ITM ASPs vs thermal coal benchmark prices

    ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/ton Monthly NEX  3Q19 ASP weaker for ITM, shadowed by 200 150 150 global coal price movement 100 50  ITM ASP: US$61.7/t (-7% QoQ) 0 130 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019  NEX (N

  18. Slide 18: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIALREVIEW FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 18

  19. Slide 19: Sales revenue

    Sales revenue Unit: US$ million 606 -6% QoQ 71 -32% YoY 10 27 440 108 412 48 Others +17% (QoQ) ; -21% (YoY) 23 56 12 Jorong -48% (QoQ) ; +20% (YoY) 27 29 Kitadin +7% (QoQ) ; +7% (YoY) 212 75 61 Bharinto -17% (QoQ) ; -43% (YoY) 114 148 Trubaindo +30% (QoQ) ; -30% (YoY) Others Jorong Kitadin 285 Bhari

  20. Slide 20: Average gross margin

    Average gross margin Avg. 9M18: 30% Unit : US$ Million Revenue 9M19: 18% GPM (%) 606 285 212 215 440 412 182 148 108 114 75 61 27 27 29 23 12 10 54% 45% 36% 39% 41% 21% 24% 18% 18% 8% 15% 14% 13% 14% 6% 33% 16% 18% 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 3Q18 2Q19

  21. Slide 21: Cost analysis

    Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Avg. 9M18: 11.3 Unit: US$/t Avg. 9M18: $49.9/t Unit: Bcm/t 9M19: 11.3 9M19: $49.3/t 13.2 55.1 50.2 51.8 51.7 11.6 10.8 10.5 41.0 9.5 Non-coal 43.7 45.3 49.0 48.5 37.5 Coal 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 Note: Based on prod

  22. Slide 22: EBITDA

    EBITDA Unit: US$ million 169 -2% QoQ -69% YoY 14 35 Others n.m (QoQ) 65 Kitadin 54 53 -23% (QoQ) Others Bharinto Jorong 1 -62% (QoQ) 13 10 Trubaindo Kitadin 5 13 -25% (QoQ) Bharinto 49 9 12 Indominco Trubaindo +53% (QoQ) 15 23 Indominco Jorong (4) (1) (2) (3) n.m (QoQ) 3Q18 2Q19 3Q19 Note : Total EB

  23. Slide 23: Net income

    Net income Unit: US$ million -1% QoQ 94 -68% YoY 8 26 Kitadin -40% (QoQ) Others 38 30 30 Bharinto Jorong -66% (QoQ) Kitadin 9 6 Trubaindo Bharinto 3 -17% (QoQ) 8 Indominco Trubaindo 5 29 7 +88% (QoQ) Indominco Jorong 15 8 n.m (QoQ) (0) (1) (0) Others (7) (4) (3) n.m (QoQ) 3Q18 2Q19 3Q19 Note : Total

  24. Slide 24: Balance sheet

    Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) 374 368 328 Net D/E (times) 268 271 (32%) (36%) (39%) (38%) (30%) (0.32) (0.36) (0.39) (0.38) (0.30) 2015 2016 2017 2018 3Q19 2015 2016 2017 2018 3Q19 DEBT POSITION Unit: US$ million 11 0 0 0 0 2015 2016 2017 2018 3Q19 24

  25. Slide 25: 2019 Capital expenditure plan

    2019 Capital expenditure plan 7.7 Indominco 11.7 5.2 Trubaindo 14.4 8.9 Bharinto 31.2 Realized up to September 2019 2019 Capex plan 1.1 Jorong 2.4 9.2 TRUST 60.4 ITM 32.5 Consolidated 121.9 25

  26. Slide 26: Thank you

    Thank you 26

  27. Slide 27: Appendices

    Nim™ Appendices

  28. Slide 28: Income statement

    Income statement Unit: US$ thousand 9M19 9M18 YoY% Net Sales 1,304,780 1,415,191 -8% Gross Profit 237,832 428,849 -45% GPM 18% 30% SG&A (103,394) (108,176) EBIT 134,438 320,673 -58% EBIT Margin 10% 23% EBITDA 179,901 365,493 -51% EBITDA Margin 14% 26% Net Interest Income / (Expenses) 3,822 2,299 FX

  29. Slide 29: Income statement

    Income statement Unit: US$ thousand 3Q19 2Q19 QoQ% Net Sales 412,079 439,676 -6% Gross Profit 75,431 68,789 10% GPM 18% 16% SG&A (37,079) (29,795) EBIT 38,352 38,994 -2% EBIT Margin 9% 9% EBITDA 53,119 54,254 -2% EBITDA Margin 13% 12% Net Interest Income / (Expenses) 905 1,310 FX Gain / (Loss) (1,44

  30. Slide 30: 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% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% 99.99% Indominco Trubaindo Bharinto Embalut Jorong TIS NPR TRUST ITMI PT Tambang Raya PT ITM Indonesia PT Indominco PT Trubaindo

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