Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q3 2020 Earnings Presentation
31 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Nov 13, 2020
Slide 1: 3Q20 Results
3Q20 Results INVESTOR & ANALYST UPDATE 13 NOVEMBER 2020
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: Highlights 3Q20
I 7 01 Highlights 3Q20
Slide 4: Resilient through challenging times
Resilient through challenging times COAL PRICE REMAINS VOLATILE COST CUTTING MEASURES COAL BUSINESS COST ($/T) 80 News on COVID-19 Winter Demand ▪ Significant cost control measures COVID-19 Spread Globally & La Nina Impact started to kick-in by 3Q20. Target 58 70 of $8/ton in FY20 still in place and
Slide 5: Highlights of 3Q20 and 9M20 results
Highlights of 3Q20 and 9M20 results 2Q20* 3Q20 9M19 9M20 Coal sales (Mt) 5.3 4.3 18.7 15.4 ASP (USD/t) 52.5 48.8 66.3 53.8 Unit: US$ million Total Revenue 287 219 1,304 872 Gross Profit Margin 14% 16% 18% 16% EBIT 13 14 134 62 EBITDA 32 35 180 126 14 10 99 39 Net Income *Normalized 5
Slide 6: ITM: way forward
ITM: way forward LEVERAGING EXPERTISE SUSTAINABLE GROWTH with over 30 years of experiences in following global trends in clean energy and using Indonesian mining business to prepare for digital transformation which ITM adopted early, to expansion in all mining opportunities. drive sustainable growth
Slide 7: New coal reserve acquisition: blending synergies
New coal reserve acquisition: blending synergies GPK – COAL SPECIFICATION GPK GPK 41.0 Bunyut Port GPK 3,900 GPK GPK 0.2 3.3 CV GAR Sulfur Ash Moisture NPR (kcal/kg) (%) (%) (%) TCM • ITM acquired 100% of local company which own 75% in PT Graha Panca Karsa (GPK). TIS Total transaction value was USD
Slide 8: Operation Updates
02 Operation Updates
Slide 9: Operational summary 2020
Operational summary 2020 SCHEMATIC OUTPUT TREND Unit: Mt 6.7 2020 TARGET: East Kalimantan 19.1 Mt Indominco 5.3 4.9 5.3 Jorong 4.5 4.4 Trubaindo Kitadin 8.9 Mt 4.4 Mt Bharinto Bunyut Port Trubaindo Kitadin – Embalut Indominco 1.6 Mt Samarinda Bharinto Balikpapan 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20e Centra
Slide 10: Coal operations: Indominco Mandiri
Coal operations: Indominco Mandiri SCHEMATIC OUTPUT TREND Unit: Mt 2020 TARGET: 8.9 Mt Operations Barge Ports 3.3 Hauling 0.5 Stockpile 2.2 2.3 2.0 West Block Crusher 0.5 W Block ROM 0.7 0.7 Mine stockpile 2.8 stockyard 1.5 1.8 1.3 E. Block East Block 3Q19 2Q20 3Q20 4Q20e Bontang City 35Km S/R (bcm/
Slide 11: Coal operations: Melak group – Trubaindo and Bharinto
Coal operations: Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND Unit: Mt 2020 TARGET: TCM 4.4 Mt | BEK 3.0 Mt 2.5 Mahakam 2.2 2.1 Bunyut Port River 1.6 East Kalimantan 1.5 1.1 1.4 Trubaindo Product coal conveyor, stacking, 1.0 stockpile 1.0 0.8 1.1 0.6 Bharinto Operations 40km Mine to p
Slide 12: Coal operations: Kitadin Embalut and Tandung Mayang
Coal operations: Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND Unit: Mt 2020 TARGET: EMB 1.6 Mt 0.4 0.4 0.4 0.4 TD. Mayang Bontang city IMM WB IMM EB ROM stockpile Bontang Port 3Q19 2Q20 3Q20 4Q20e Embalut 5km Mine to port S/R (bcm/t) - Embalut: 8.6x 10.8x 10.6x 10.9x Embalut Port Mahaka
Slide 13: Coal operations: Jorong
Coal operations: Jorong SCHEMATIC OUTPUT TREND Unit: Mt 2020 TARGET: 1.2 Mt 0.5 0.5 Pelaihari 0.2 0.3 Haul road 20km 3Q19 2Q20 3Q20 4Q20e S/R (bcm/t) : 6.7x 6.2x 7.8x 7.6x Jorong COMMENTS Coal ▪ 3Q20 production achieved as target however strip ratio was terminal Operations higher than target due to
Slide 14: Coal Market Trends
03 Coal Market Trends
Slide 15: Global thermal coal market trends
Global thermal coal market trends GLOBAL COAL DEMAND & SUPPLY CHANGE – 2020E VS 2019 GLOBAL TRENDS Unit: Mt SUPPLY DEMAND DEMAND Industrial activity has been recovering gradually from disruption caused by Covid-19. Expected colder winter set to drive thermal coal demand in the Northern Hemisphere. R
Slide 16: ITM coal sales 9M20
ITM coal sales 9M20 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 9M20 Vietnam 1% Bangladesh Others 1% 3% Malaysia 3% 3.6 Mt Taiwan 3% 3.5 Mt India 4% China 0.8 Mt 23% S KOREA Korea 5% JAPAN CHINA Thailand 0.4 Mt 6% BANGLADESH 0.9 Mt 0.5 Mt 0.7 Mt Phillippines TAIWAN 1.3 Mt INDIA THAILAND 9% Japan
Slide 17: Indicative coal sales 2020
Indicative coal sales 2020 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Uncontracted Unsold 2% 2% Indexed 12% 86% 98% Fixed Contracted Target sales 2020: 21.6 Mt 17
Slide 18: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/t Monthly NEX ▪ NEX has recovered since late September mainly from 200 supply cut. 150 ▪ Bottom has passed but demand remains subdue as 100 150 COVID-19 surge in few area, however high demand 50 winter is around
Slide 19: Financial Summary
01 02 03 04 05 Highlights Operation Coal Market Financial Q&A 3Q20 Updates Trends Summary Session
Slide 20: Sales revenue
Sales revenue Unit: US$ million Other Jorong Kitadin Bharinto Trubaindo Indominco -24% (QoQ) -47% (YoY) -33% (YoY) 1,305 Others Others +11% (QoQ); 160 -21% (YoY) 412 -37% (YoY) 56 Jorong 71 56 Jorong 12 -62% (QoQ); 212 872 -29% (YoY) 29 -52% (YoY) 287 Kitadin 126 Kitadin 61 40 -26% (YoY) 32 -10% (Qo
Slide 21: Average gross margin
Average gross margin Avg. 9M19: 18% Avg. 9M20: 16% Unit : US$ Million Revenue 412 GPM (%) 182 148 287 140 219 98 99 74 61 51 49 29 22 20 12 15 15% 6 18% 9% 7% 13% 14% 18% 41% 14% 15% 12% 14% 16% 17% 12% 15% 3% 5% 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 3Q19 2Q20 3Q20 3Q19 2Q20 3Q
Slide 22: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Unit: Bcm/t Avg. 9M19: 11.3 Unit: US$/t Avg. 9M19: $49.0/t Avg. 9M20: 10.5 Avg. 9M20: $43.1/t 50.6 10.7 10.8 41.0 41.9 43.1 10.0 35.8 9.5 9.3 Non-Coal 45.6 41.8 37.5 39.4 34.0 Coal 3Q19 4Q19 1Q20 2Q20 3Q20 3Q19 4Q19 1Q20 2Q20 3Q20 FUEL PRICE
Slide 23: EBITDA
EBITDA Unit: US$ million 180 Other -30% (YoY) Jorong 28 Kitadin Bharinto Jorong Trubaindo 53 38 n.m (YoY) 1- +9% (QoQ) Indominco -34% (YoY) 10 Kitadin 126 -77% (YoY) 5 Kitadin 3 Bharinto 8 -26% (QoQ) 50 -74% (YoY) -70% (YoY) 10 9 32 35 - Bharinto 4 3- 26 +97% (QoQ) 1 2 Trubaindo -60% (YoY) 5 -49% (Y
Slide 24: Net income
Net income 3Q19 NET INCOME 2Q20 NET INCOME* Other: • FX Gain/(Loss) (USD/IDR) $(1.4) M • Derivative Gain/(Loss) (commodities) $4.7M 53 • Other gain/(loss) $2.5M Other: (15) 32 • FX Gain/(Loss) (USD/IDR) $1.8M 1 6 • Derivative Gain/(Loss) (commodities) $(0.5)M (15) • Other gain/(loss) $2.6M 30 (19) 1
Slide 25: Balance sheet
Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) 374 368 Net D/E (times) 328 268 208 (32%) (36%) (39%) (38%) (17%) (24%) 159 (0.32) (0.36) (0.39) (0.38) (0.17) (0.24) 2016 2016 2017 2018 2019 3Q20 2015 2016 2017 2018 2019 3Q20 DEBT POSITION Unit: US$ million 11 0 0 0 0 0 2015
Slide 26: 9M20 Capital expenditure realization
9M20 Capital expenditure realization Units: US$ million 2.4 Indominco 4.4 3.0 Trubaindo Realized up to Sep 2020 15.6 2020 Capex plan 3.8 Bharinto 9.5 5.2 TRUST 18.7 16.0 ITM Consolidated 49.9 Note: Total capex plan including Jakarta office after elimination 26
Slide 27: Q&A Session
05 Q&A Session
Slide 28: ITM
\ ITM
Slide 29: Income statement
Income statement Unit: US$ thousand 9M19 9M20 YoY% Net Sales 1,304,780 871,884 -33% Gross Profit 237,832 139,833 -41% GPM 18% 16% SG&A (103,394) (77,548) EBIT 134,438 62,285 -54% EBIT Margin 10% 7% EBITDA 179,901 125,680 -30% EBITDA Margin 14% 14% Net Interest Income / (Expenses) 3,822 (370) n.m FX
Slide 30: Income statement
Income statement Unit: US$ thousand 2Q20* 3Q20 QoQ% Net Sales 286,725 219,256 -24% Gross Profit 38,933 34,878 -10% GPM 14% 16% SG&A (26,112) (21,237) EBIT 12,821 13,641 6% EBIT Margin 4% 6% EBITDA 32,312 35,446 10% EBITDA Margin 11% 16% Net Interest Income / (Expenses) (52) (177) 241% FX Gain / (Los
Slide 31: 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% 75.00% 99.99% 99.99% 91.99% Indominco Trubaindo Bharinto Kitadin Jorong TIS NPR GPK TRUST ITMI PT Tambang Raya PT ITM Indonesia PT Indo
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