Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q1 2017 Earnings Presentation
34 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, May 22, 2017
Slide 1: Analyst Briefing 1Q17 Performance Results
PT Indo Tambangraya Megah Tbk ANALYST BRIEFING 1Q17 PERFORMANCE RESULTS Jakarta, 22 May 2017
Slide 2: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 2
Slide 3: Highlights of 1Q17 results
Highlights of 1Q17 results Coal Sales: 5.4 Mt Down 1.3 Mt Down 1.5 Mt -19% Q-Q -22% y-y Unit: US$ million 1Q17 4Q16 1Q16 Q-Q y-y Total Revenue 368 409 331 -10% +11% Gross Profit Margin 31% 34% 21% -3% +10% EBIT 89 104 38 -14% +132% EBITDA 103 131 50 -21% +107% Net Income 57 61 23 -6% +148% ASP (USD/
Slide 4: Strengthening our integration
Strengthening our integration BANPU’S INTERGRATED ENERGY SUPPLIER STRATEGY UPSTREAM MIDSTREAM DOWNSTREAM COAL COAL RESOURCE COAL LOGISTICS, TRADING, COAL-FIRED POWER DEVELOPMENT, MINING MARKETING GENERATION NEW UNCONVENTIONAL FUEL PROCUREMENT, GAS-FIRED & RENEWABLES SHALE GAS LOGISTICS, MARKETING BA
Slide 5: ITM is well positioned to capture opportunities
ITM is well positioned to capture opportunities East Kalimantan THIRD PARTY COAL SALES SCHEMATIC OF INTEGRATED OPERATIONS AND LOGISTICS Unit: Mt Indominco Bontang 0.8 Embalut Bunyut port Samarinda/ Balikpapan 0.3 Trubaindo Bharinto 0.1 Port Hauling Jorong Shipping 2014 Jorong port 2015 2016 Additi
Slide 6: Trading: asset light add-on to coal mining
Trading: asset light add-on to coal mining CASH MARGIN UNDER DIFFERENT PRICE SCENARIOS Unit: $/t Comparing to coal production, coal COAL PRODUCER COAL TRADER trading requires much smaller investment in tangible assets. Although some working capital is required, overall investment is still signif
Slide 7: Highlights of 1Q17
Highlight Highlightsof of1Q15 1Q17 ANNUAL GENERAL MEETING OF SHAREHOLDERS BOARD OF COMMISIONERS Somyot Ruchirawat Prof. Djisman Simandjuntak Fredi Chandra Commissioner Independent Commissioner Commissioner (New Member) Ibrahim Yusuf President Commissioner & Independent Somruedee Chaimongkol Rudijant
Slide 8: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 8
Slide 9: Operational summary 2017
Operational summary 2017 2017 TARGET : 25.5 Mt QUARTERLY OUTPUT TREND East Unit: Mt Kalimantan 6.5 6.3 6.6 5.8 INDOMINCO 5.4 Bharinto Jorong 15.3 Mt Kitadin Trubaindo Bunyut Port TRUBAINDO TD.MAYANG Indominco 5.2 Mt BHARINTO Samarinda KITADIN 2Q16 3Q16 4Q16 1Q17 2Q17e 2Q16 3Q16 4Q16 1Q17 2Q17e 2.7 M
Slide 10: Indominco Mandiri
Indominco Mandiri SCHEMATIC QUARTERLY UPDATES 2017 target: 15.3 Mt Operations 1Q17 production achieved according to target. Ports Total average strip ratio in 2017 is expected to be Hauling higher than 2016 due to optimized coal reserved. Stockpile West Block ROM Mine Crusher stockpile stockyard
Slide 11: Melak group – Trubaindo and Bharinto
Melak group – Trubaindo and Bharinto SCHEMATIC QUARTERLY UPDATES 2017 target:TCM 5.2 Mt Trubaindo: Mahakam BEK 2.7 Mt River 1Q17 production was slightly higher than plan due to Bunyut exposed coal inventory from end of 2016 Port Continue hauling road improvement program from Product coal conve
Slide 12: Kitadin Embalut and Tandung Mayang
Kitadin Embalut and Tandung Mayang SCHEMATIC QUARTERLY UPDATES 2017 target: EMB 1.1 Mt Kitadin Embalut: 1Q17 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
Slide 13: Jorong
Jorong SCHEMATIC QUARTERLY UPDATES 2017 target: 1.2 Mt 1Q17 production achieved as according to target. Mine closure plan already submitted and being reviewed by government for approval. Remaining mine reserves will be depleted by 2018. Pelaihari QUARTERLY OUTPUT Unit: Mt Haul road 0.3 0.3 0.2
Slide 14: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 14
Slide 15: Global demand trends: 2017 vs 2016
Global demand trends: 2017 vs 2016 GEOGRAPHY CHANGE COMMENTS 2017-16 (Mt.) Tight supply remains despite continued supply relaxation policy CHINA 0 Strict countrywide safety inspections delay resumption of coal mines. Demonetization continued to impacted purchases INDIA -5 High international
Slide 16: Global supply trends: 2017 vs 2016
Global supply trends: 2017 vs 2016 GEOGRAPHY CHANGE COMMENTS 2017-16 (Mt.) Continued rainfall helped to limit export growth in near term, but INDONESIA +15 output trends to increase as miners respond to higher prices. Cyclone Debbie hit Australia tightening supply especially coking AUSTRALIA -2
Slide 17: China: supply relaxed but structural reform continues
China: supply relaxed but structural reform continues CHINA THERMAL COAL IMPORTS/EXPORTS* Unit: Mt Thermal coal prices maintained their upward QUARTERLY (ANNUALIZED) ANNUAL momentum in Q1, driven by strong demand and restocking Unavailability of supply in the near term was the IMPORT main factor
Slide 18: India: institutional and structural adjustments
India: institutional and structural adjustments INDIA THERMAL COAL IMPORTS* De-monetization has impacted purchases and Unit: Mt slowed buying activity amid weak power demand QUARTERLY (ANNUALIZED) ANNUAL Price-sensitive Indian buyers have borne full brunt of the hike in import prices, which will
Slide 19: ITM coal sales 1Q17
ITM coal sales 1Q17 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 1Q17 Taiwan Italy Bangladesh 3% 1% Philippines 6% Japan 6% 23% ITALY KOREA India 0.1 Mt 0.5 Mt 9% JAPAN CHINA 1.3 Mt 0.9 Mt 1.5 Korea TAIWAN China 9% 0.2 Mt 17% THAILAND INDIA Thailand 0.6 Mt 0.5 Mt PHILIPPINES 11% Indonesia 0.3 Mt 1
Slide 20: Indicative coal sales 2017
Indicative coal sales 2017 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Uncontracted Unsold 23% 23% Fixed Unpriced 4% 44% 29% Contracted 77% Indexed TARGET SALES 2017: 27.0 Mt 20
Slide 21: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/t 1Q17 ASP continued firm according to 200 Monthly NEX Chinese output policy and supply 180 Quarterly ITM ASP tightness 160 – ITM ASP: US$67.5/t* (+13% QoQ) 140 120 – NEX (May 19, 2017)**: US$73.5/t 100 80 P
Slide 22: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 22
Slide 23: Sales revenue
Sales revenue Unit: US$ million -10% QoQ +11% YoY 409 Jorong 10 368 +3% (QoQ) ; -37% (YoY) 331 8 11 Kitadin 11 +30% (QoQ) ; -25% (YoY) 77 Bharinto 17 48 15 -37% (QoQ) ; +20% (YoY) 40 Trubaindo 144 123 -15% (QoQ) ; +11% (YoY) 111 Jorong Kitadin Indominco 226 237 +5% (QoQ) ; +20%(YoY) Bharinto 198 Tru
Slide 24: Average gross margin
Average gross margin Unit : US$ Million 409 226 237 Revenue 368 GPM* (%) 331 197 144 123 111 77 48 33% 34% 40 31% 27% 24% 17 21% 25% 14 8 11 10 11 14% 25% 32% 17% 31% 11% 38% 28% 33% 20% 11% 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 Indominco Trubaindo
Slide 25: Total cost
Total cost WEIGHTED AVERAGE STRIP RATIO COST OF GOODS SOLD* Avg. FY15 : 8.5 Unit: US$/t Avg. FY15: $37.0/t Unit: Bcm/t Avg. FY16 : 8.1 Avg. FY16: $32.1/t 9.4 8.6 37.8 8.1 8.3 7.4 32.5 32.2 31.7 31.8 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 * Excluding royalty FUEL PRICE TOTAL COST** Unit: U
Slide 26: EBITDA
EBITDA -21% QoQ Unit: US$ million +107% YoY 131 0.3 2 103 Jorong 19 -39% (QoQ) ; -95%(YoY) 0.2 2 Kitadin -6% (QoQ) ; +346% (YoY) 12 Bharinto 28 -36% (QoQ) ; +308% (YoY) 27 Trubaindo -3% (QoQ) ; +48% (YoY) 50 4 1 3 Jorong 18 73 Indominco -18% (QoQ) ; +165%(YoY) Kitadin 60 Bharinto Trubaindo 23 Indomi
Slide 27: Net income
Net income Unit: US$ million -6% QoQ +148% YoY 61 0.1 57 14 Bharinto 8 -42% (QoQ) ; +552% (YoY) 13 Trubaindo 19 +47% (QoQ) ; +67% (YoY) 23 3 Indominco Jorong 1 46 37 -20% (QoQ) ; +239%(YoY) Kitadin 11 Bharinto Trubaindo 11 Indominco Kitadin n.m.(QoQ) ; -18% (YoY) (7) (0.1) (5) Jorong (0.5) -507% (Qo
Slide 28: Balance sheet
Balance sheet KEY RATIOS CASH POSITION Unit: US$ million Net Gearing (%) 404 Net D/E (times) 328 289 268 226 (32%) (26%) (32%) (36%) (47%) (0.32) (0.26) (0.32) (0.36) (0.47) 2013 2014 2015 2016 1Q17 2013 2014 2015 2016 1Q17 DEBT POSITION Unit: US$ million 0 0 0 0 0 2013 2014 2015 2016 1Q17 28
Slide 29: 2017 capital expenditure plan
2017 capital expenditure plan Units: US$ million 1.9 Indominco 10.6 2.7 Trubaindo Realized up to Mar 2017 22.2 2017 Capex plan 0.5 Bharinto 6.6 0.2 TRUST 20.1 5.6 ITM Consolidated 60.3 Note: Total capex plan including Jakarta office after elimination 29
Slide 30: 1Q17 – key takeaways
1Q17 – key takeaways 6.3 Coal price higher in 5.4 Mt sales 1Q17 – Stronger financial 1Q17 – expected to be achieved according to performance in 1Q17 more stable in FY17 target due to higher ASP Improved 1Q17 ASP Strip ratio in 2017 is Rainfalls still higher $67.5/t, +13% (QoQ) expected to be higher
Slide 31: Thank you Question & Answer
Thank you Question & Answer 31
Slide 32: Appendices
Nim Appendices
Slide 33: Income statement
Income statement Unit: US$ thousand 1Q17 4Q16 1Q16 QoQ% Y oY % Net Sales 367 ,87 4 409,054 331,105 -10% 11% Gross Profit 114,945 137 ,036 69,664 -16% 65% GPM 31% 34% 21% SG&A (25,7 7 3) (33,51 8) (31 ,21 3) EBIT 89,17 2 103,518 38,451 -14% 132% EBIT Margin 24% 25% 12% EBIT DA 103,204 130,516 49,819
Slide 34: 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% 99.99% 99.99% Indominco Trubaindo Bharinto Kitadin Jorong TRUST ITMI PT Tambang Raya PT ITM Indonesia PT Indominco PT Trubaindo Coal PT Bharinto PT K
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