Pt Abm Investama Tbk · IDX:ABMM
Pt Abm Investama Tbk — Q2 2013 Earnings Presentation
56 slides from Pt Abm Investama Tbk's earnings presentation, September 2013
Slide 1: PT ABM Investama Tbk 2Q 2013 Result – Company Presentation
PT ABM INVESTAMA TBK 2Q 2013 Result – Company Presentation Jakarta, September 2013
Slide 2: Cautionary Statements
Cautionary Statements DISCLAIMER: This presentation has been prepared by PT ABM Investama Tbk (“ABMM” or the "Company") solely for general information. By attending the meeting where the presentation is made, or by reading the presentation slides, you acknowledge and agree to the limitations and not
Slide 3: Business Updates
Business Updates Operational Highlights Financial Highlights Strategy and Mitigations Appendices 3
Slide 4: Business Updates
Business Updates • January 28, 2013 – Media Djaya Bersama (MDB), parent company of Aceh-based coal producers Bara Energi Lestari and MIFA Bersaudara signed coal sales contract with cement producer PT. Lafarge Cement Indonesia (Lafarge), amounting maximum of 255,000 metric tons. • March 14, 2013 – Re
Slide 5: Agenda: Operational Highlights
Company Overview and Updates Operational Highlights Financial Highlights Strategy and Mitigations Appendices 5
Slide 6: Reswara Minergi Hartama – Coal Mining
Reswara Minergi Hartama (Reswara) – Coal Mining Overview and Updates: • Reswara owns 3 coal mines in South Kalimantan (TIA, 100%) and Aceh (BEL, MIFA via MDB, 70.0%) • Total estimated JORC coal reserves and resources (MDB at 100% basis): 221mn tons and 561mn tons • TIA 1H 2013 coal sales volume: 2.8
Slide 7: TIA: Monthly Sales Volume and Production Volume
TIA: Monthly Sales Volume and Production Volume 1H 2013 Coal Sales : 2.8 mn tons, +48% y-o-y 1H 2013 Coal Production : 2.4 mn tons, +64% y-o-y TIA Coal Sales ( k tons coal ) TIA Coal Production ( k tons coal ) 445.2 504.8 424.9 431.7 501.9 417.0 467.3 480.7 451.7 376.5 391.8 331.6 Jan-13 Feb-13 Mar-
Slide 8: TIA: ASP, Cash Cost, Stripping Ratio
TIA: ASP, Cash Cost, Stripping Ratio (SR) ASP ( US$/ton ) Cash Cost ( US$/ton ) SR ( x ) 42.9 47.2 5.5 -18% -23% 38.9 -41% 33.0 3.3 1H 2012 1H 2013 1H 2012 1H 2013 1H 2012 1H 2013 8
Slide 9: TIA: Monthly ASP, Cash Cost, and Stripping Ratio
TIA: Monthly ASP, Cash Cost, and Stripping Ratio (SR) 1H 2013 ASP: USD38.9/ton, Cash Cost: USD33.0/ton 1H 2013 Average SR: 3.3x TIA : ASP & Cash Cost ( US$/ton ) TIA : SR ( x ) 5 39.6 40.0 40.5 37.5 37.8 38.1 4.5 4.5 4.5 4.5 4.5 4.5 4.5 33.2 33.9 33.9 4 32.2 32 32.4 3.9 3.5 3.4 3.3 3 3 3.1 3 ASP has
Slide 10: Benchmark Newcastle vs. TIA ASP: Narrowing Gap
Benchmark Newcastle vs. TIA ASP: Narrowing Gap 140.00 $ 135.00 $ 130.00 $ = Newcastle price/ton – TIA price/ton 125.00 $ 120.00 $ 115.00 $ 110.00 $ 105.00 $ 100.00 $ 95.00 $ 90.00 $ NEWC 85.00 $ 80.00 $ 75.00 $ 70.00 $ = US$ 65.1 65.00 $ Jan 2012 60.00 $ = US$ 57.1 ICI4200 = US$ 40.7 55.00 $ Jan 201
Slide 11: Reswara: Sales Volume and Revenues
Reswara: Sales Volume and Revenues 1H 2013 sales volume: 2.9mn tons (100% basis) 2Q13 Revenue: USD 60.3mn, +14% q-o-q, +20% y-o-y Reswara Sales ( k tons coal ) Quarterly Revenue ( mn USD ) 2,927 60.3 52.7 51% 50.1 1,945 1H 2012 1H 2013 2Q12 1Q13 2Q13 11
Slide 12: Reswara: Historical and Target Sales Volume
Reswara: Historical and Target Sales Volume Reswara Sales Volume ( k tons ) 6,000 5,500 5,000 4,665 4,000 3,000 2,163 2,000 1,179 1,000 695 - FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 ( e) 12
Slide 13: TIA: Coal Sales Destination
TIA: Coal Sales Destination 13
Slide 14: MDB Project Update
MDB Project Update Progress by Jun 2013: 1. Land Acquisition 67% 2. Port Construction 70% 3. Mining Site 55% 14
Slide 15: Cipta Kridatama (CK) - Mine Contractor
Cipta Kridatama (CK) - Mine Contractor Overview and Updates: • Founded in 1997, CK offers pit-to-port services • Currently CK is serving nine Indonesian mining companies, both IUP contract and Coal Contract of Work (CCOW) holders • Recently signed 5-years contract with Multi Harapan Utama, a Coal Co
Slide 16: OB Removal Volume
OB Removal Volume 1H 2013 OB Removal: 48.4mn bcm, -25% y-o-y 2Q13 OB Removal: 24.9mn bcm, +6% q-o-q, -32% y-o-y OB Removal ( k bcm ) Quarterly OB Removal ( mn bcm ) 8,729 8,762 8,780 36.5 7,544 7,344 7,232 24.9 23.5 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 2Q12 1Q13 2Q13 16
Slide 17: Rental Service Volume
Rental Service Volume 1H 2013 Rental Services: 6.9mn tons coal, +28% y-o-y 2Q13 Rental Service: 3.4mn tons, -3% q-o-q, +16% y-o-y Rental Services ( k tons coal ) Quarterly Rental Service ( mn tons coal ) 1,273 1,174 1,169 1,178 1,154 3.5 3.4 955 2.9 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 2Q 2012
Slide 18: CK 2Q 2013 Revenues
CK 2Q 2013 Revenues 2Q13 CK Revenues: USD 92.4mn, -4% q-o-q, -24% y-o-y Revenues ( mn USD ) 121.4 96.4 92.5 2Q12 1Q13 2Q13 18
Slide 19: OB Removal Performance and Plan 2013
OB Removal Performance and Plan 2013 OB Removal ( mn bcm ) 150.0 130.0 130.0 118.0 110.0 104.2 100.0 100.0 90.0 73.8 70.0 50.0 30.0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 ( e) 19
Slide 20: Rental Service Performance and Plan 2013
Rental Service Performance and Plan 2013 Rental Service ( mn tons coal ) 16.0 14.0 14.0 11.9 12.0 10.6 10.0 8.3 8.0 7.1 6.0 5.4 4.0 2.0 - FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 ( e) 20
Slide 21: Current Customers and Backlog
Current Customers and Backlog Operating Agreements as of Sep 15, 2013 Client Mining Project Sites Expected Contract Kalimantan Duration MSJ 1 Separi, East Kalimantan Jun 2004 - Sep 2015 10 MHU 2 Jongon, East Kalimantan Sep 2013 - Aug 2018 2 1 7 8 3 Sebambam, Tanah Bumbu, TIA Apr 2009 - Jul 2020 4 So
Slide 22: Sumberdaya Sewatama (SS) – Power Solutions
Sumberdaya Sewatama (SS) – Power Solutions Overview and Updates: • SS engages in Temporary Power, Operation & Maintenance (O&M), Dewatering, Power Optimization, and IPP • With installed capacity of over 1GW, SS ranks Indonesia’s largest private temporary power enabler • Indonesia’s proven MFO-based
Slide 23: Capacity Installed and KWh Generated
Capacity Installed and KWh Generated 2Q 2013 Temporary Power Capacity Installed : 1,020 MW 1H 2013 kWh generated : 2,244,324 (‘000 kWh), +8% y-o-y Capacity Installed Electricity production ( ‘000 kwh ) 1,020 383,255 1,010 379,498 379,498 377,502 371,619 965 352,953 2Q12 1Q13 2Q13 Jan-13 Feb-13 Mar-1
Slide 24: Capacity Installed and Lease Rate
Capacity Installed and Lease Rate Capacity Installed ASP ( IDR/kwh ) 1,020 6% 277.7 965 272.9 272.3 272.4 272.1 271.1 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 1H 2012 1H 2013 ASP IDR/kwh 24
Slide 25: Lease Rate and Revenue
Lease Rate and Revenue 2Q13 SS Revenues: USD 34.8mn, +4% y-o-y, -0.3% q-o-q Lease Rate ( IDR/Kwh ) Revenues ( USD mn ) 287.0 273.1 4% 33.5 34.9 34.8 267.0 263.0 247.0 227.0 207.0 187.0 167.0 147.0 1H 2012 1H 2013 2Q12 1Q13 2Q13 25
Slide 26: Capacity Historical and Planned Installed and Utilization Rate
Capacity Historical and Planned Installed and Utilization Rate Capacity Installed ( MW ) 1,200 1,060 1,010 1,010 1,000 934 792 800 758 638 73% 73% 74% 600 74% 70% 400 72% 200 - FY 2008 FY 2009 FY 2012 FY 2011 FY 2012 Q1 2013 FY 2013 (e ) 26
Slide 27: Sanggar Sarana Baja (SSB) – Engineering Services
Sanggar Sarana Baja (SSB) – Engineering Services Overview and Updates: • SSB engages in the manufacture of equipment for oil & gas, mining and power generation, transport equipment, component remanufacture of heavy equipment and provides welding & machining services on-site • Challenging mining indu
Slide 28: PT. Sanggar Sarana Baja (SSB) – Engineering Services
PT. Sanggar Sarana Baja (SSB) – Engineering Services Business Overview 2Q13 SSB Revenues: USD 20.5mn, -25% y-o-y, -27% q-o-q Transport Equipment Division: Revenues (mn USD) Designing, manufacturing and distributing 28.1 products for transportation and material 27.2 handling business Site Service Div
Slide 29: All Divisions of Engineering Services
= Percentage of 1H 2013 sales = 1H 2013 Operating Profit Margin All Divisions of Engineering Services 22.1% 23.6% 36.4% 17.9% Fabrication Remanufacture Site Services Transport Division -7.3% 11.3% 6.9% 14.0% 29
Slide 30: Cipta Krida Bahari (CKB) – Integrated Logistic
Cipta Krida Bahari (CKB) – Integrated Logistic Overview and Updates: • CKB provides a full range of customized logistics services that include integrated logistics services, warehouse management, shore-base management, project logistics, industrial shipping, and coal logistics • The shipping and coa
Slide 31: Cipta Krida Bahari (CKB) – Integrated Logistics
Cipta Krida Bahari (CKB) – Integrated Logistics Business Overview 2Q13 CKB Revenues: USD33.9mn, -0.6% y-o-y, +9.7% q-o-q • Integrated logistics provider offering freight forwarding, project logistics, industrial / offshore Revenues (mn USD) and coal logistics shipping, warehouse and shorebase manage
Slide 32: Project Logistics and Warehouse
Project Logistics and Warehouse 32
Slide 33: Freight Forwarding & Coal Logistics
Freight Forwarding & Coal Logistics ATR owns 13 vessels BDD owns 7 tug and barges 33
Slide 34: Agenda: Financial Highlights
Company Overview and Updates Operational Highlights Financial Highlights Strategy and Mitigations Appendices 34
Slide 35: Financial Summary
Financial Summary (In thousand USD) ABM Consolidated 1H - 2013 1H - 2012 Y-o-Y Sales 422,850 430,398 -2% COGS (331,220) (341,206) -3% Gross Profit 91,630 89,192 3% Gross Profit Margin 22% 21% Operating Expenses (66,726) (52,598) 27% Other operating 18,381 1,110 1,556% Income from Operations 43,285 3
Slide 36: Financial Position
Financial Position (In thousand USD, unless otherwise stated) ABM Consolidated 30 Jun 2013 31 Dec 2012 ∆ Total Assets 1,265,074 1,263,398 0% Cash & near Cash equivalents 132,399 128,049 3% Total Liabilities 906,153 917,338 -1% Short-term Interest bearing debts 166,857 172,120 -3% Long-term Interest
Slide 37: 1H 2013 Capex
1H 2013 Capex Companies USD (‘000) Allocation in % ABM 11 0.01% CK 1,503 2.07% SS 41,848 57.59% SSB 464 0.64% CKB 5,461 7.52% Reswara 23,374 32.17% Total 72,661 100.00% 37
Slide 38: Contribution from Subsidiaries - Revenues
Contribution from Subsidiaries - Revenues 1H - 2013 1H - 2012 Reswara Reswara 23% 18% CK CK 39% 44% CKB 13% CKB 13% SSB SSB 12% 10% SS SS 15% 13% 38
Slide 39: Contribution from Subsidiaries - Gross Profit
Contribution from Subsidiaries - Gross Profit 1H - 2013 1H - 2012 CK Reswara CK 22% 18% Reswara 26% 28% CKB 13% CKB SS 25% SSB 15% 12% SS SSB 31% 10% 39
Slide 40: Contribution from Subsidiaries – Income from Operations
Contribution from Subsidiaries – Income from Operations 1H - 2013 1H - 2012 Reswara Reswara 7% 6% SSB 3% CKB CKB 10% CK 16% 32% SSB CK 3% 39% SS SS 42% 42% 40
Slide 41: Contribution from Subsidiaries – Net Income
Contribution from Subsidiaries – Net Income Segment / Subsidiary 1H 2013 1H 2012 ∆ Coal Mine / Reswara -11% -8% -3% Mine Contractor / CK 14% 46% -32% Power Solution / SS 24% 62% -38% Engineering Services / SSB 61% -14% 75% Integrated Logistics / CKB 12% 14% -2% Total 100% 100% 41
Slide 42: Agenda: Strategy and Mitigations
Company Overview and Updates Operational Highlights Financial Highlights Strategy and Mitigations Appendices 42
Slide 43: Strategy and Mitigation
Strategy and Mitigation Given challenging global economy affecting all of our business segments, we focus on Cash Flow and Cost Efficiency at all of Strategic Business Units (SBUs) • Capital discipline to preserve cash flow * Prioritize capex * Reduce 2013 capex from US$ 231mn to US$ 128mn • Asset o
Slide 44: Strategy and Mitigation: Liquidity management
Strategy and Mitigation Liquidity management: By June 30, 2013 Cash and near cash equivalent US$ 132 mn Total available bank facility US$ 187 mn Estimated 2013 capex spending US$ 128 mn Capex spent in 1H 2013 US$ (73) mn Estimated 2H 2013 capex spending US$ 55 mn 44
Slide 45: Agenda: Appendices
Company Overview and Updates Operational Highlights Financial Highlights Strategy and Mitigations Appendices 45
Slide 46: ABM Investama: A Member of Tiara Marga Trakindo Group
ABM Investama: A Member of Tiara Marga Trakindo Group Tiara Marga Trakindo Group Structure Overview of Tiara Marga Trakindo Group — Established in 1970, Trakindo was PT Tiara Marga Trakindo (TMT) founded by AHK Hamami — Trakindo became the sole authorized PT Chandra PT ABM Sakti Utama PT Mahadana PT
Slide 47: ABM’s Five Strategic Business Units (SBUs)
ABM’s Five Strategic Business Units (SBUs) Coal Mine Power Engineering Integrated Mining Contractor Solutions Services Logistics • Established 2010 • Established 1997 • Established 1992 • Established 1977 • Established 1997 • 7,703 hectares • Fleet of 474 heavy • 833 generators • 10 engineering • Op
Slide 48: ABM Group and Shareholding Structure
ABM Group and Shareholding Structure PT Tiara Marga Trakindo (“TMT”) Valle Verde Pte. Ltd. Public 23.12% 55% 21.88% 99.99% 99.99% 99.98% 99.96% 99.99% PT Reswara Minergi Hartama PT Cipta PT Sumberdaya PT Sanggar Sarana PT Cipta Krida Bahari (“Reswara”) Kridatama (“CK”) Sewatama (“SS”) Baja (“SSB”) (
Slide 49: Comprehensive Footprint and Market Coverage in Indonesia
Comprehensive Footprint and Market Coverage in Indonesia — Able to operate throughout the country; competitive advantage over competitors — Difficult to replicate coverage strength and poses barriers to entry for new entrants BANDA ACEH MEDAN TARAKAN BENGALON MANADO TERNATE BATAM SANGATTA PADANG KUT
Slide 50: Reswara: Coal Reserves, Resources, and Concession
Reswara: Coal Reserves, Resources, and Concession TIA MDB Total Total Resources: 561 Million Tons Coal Reserves (MT) Proved Reserves 13 7 20 Probable 39 162 201 Reserves Total Reserves 52 169 221 Total Reserves: 221 Million Tons Coal Resources Measured 32 18 50 Indicated 39 289 328 Inferred 35 148 1
Slide 51: Reswara: Coal Quality Parameters, Mine Concession
Reswara: Coal Quality Parameters, Mine Concession Coal Characteristics TIA MDB Calorific Value (Adb) 5,500-5,300 kcal/kg 5,300-5,100 kcal/kg Caloric Value (GAR) 4,100-3,900 kcal/kg 3,400-3,200 kcal/kg Total Moisture (AR) 35-37% 43-45% Ash Content (Adb) 5.7% 4.6% Sulfur (Adb) 0.3-0.5% 0.2-0.4% Conces
Slide 52: TIA: Mine and Infrastructure Profile
TIA: Mine and Infrastructure Profile PT Tunas Inti Abadi (TIA) TIA Site (South Kalimantan Province ) • ABMM acquired TIA in December 2007 Central Kalimantan • Commercial production at TIA started in Balikpapan August 2009 with coal sales delivery had commenced since October 2009 Palangkaraya • Minin
Slide 53: MDB: Mine and Infrastructure Profile
MDB: Mine and Infrastructure Profile MDB Site (Aceh Province) PT Media Djaya Bersama (MDB) The coal assets • ABMM acquired 70% stake in MDB, parent company of two coal miners Bara Energi Lestari (BEL) and MIFA Bersaudara (MIFA) in June 2011 • BEL and MIFA coal mining areas are located about 14km nor
Slide 54: CK: Heavy Equipment and Machinery Fleet
CK: Heavy Equipment and Machinery Fleet Type of equipment Capacity Number of units Average age (in years) Jun 30, 2013 Excavator 250 - 350 tons 15 5.07 20 - 100 tons 104 2.03 Truck 30 - 100 tons 334 3.1 Dozer 85 1.74 Grader 14 - 16 feet 46 2.27 Wheel loader 5 2.1 Compactor 12 2.16 Drill machine 1 2.
Slide 55: SS: Generator Profile
SS: Generator Profile Average Age Number of Units Average as of Jun 30, as of Capacity Useful Life 2013 Model Jun 30, 2013 (kW) (Yrs) (Yrs) Diesel 828 1,001,054 10 6 Generator Sets Gas Generator 5 9,000 15 2 Sets Total 833 1,010,054 55
Slide 56: Contact Investor Relations
56 Gedung TMT 1, 18th Fl, Suite 1802 Jl Cilandak KKO No.1 Jakarta 12560 - Indonesia Contact Investor Relations Adi Hartadi Tel:6221-2997-6767 Ext.1874 Fax : 6221-2997-6768 Email : adi.hartadi@abm-Investama.co.id Email : ir@abm-investama.co.id Website : www.abm-investama.com A member of Tiara Marga T