Pt Indika Energy Tbk · IDX:INDY
Pt Indika Energy Tbk — Q1 2024 Earnings Presentation
64 slides from Pt Indika Energy Tbk's earnings presentation, June 2024
Slide 1: Company Update 3M24
Company Update 3M24 PT Indika Energy Tbk. June 2024
Slide 2: Indika Energy - To Energize Indonesia for a Sustainable Future
Indika Energy - To Energize Indonesia for a Sustainable Future ✓ An Investment Holding Company with portfolio spanning across Indonesia, from energy resources, logistic and infrastructure, minerals as well as green business. ✓ Well-placed to capture domestic economic growth and global economic recov
Slide 3: Indika Energy's Consolidated Income Statement Highlights
Indika Energy’s Consolidated Income Statement Highlights Summary P&L 1Q24 1Q23 YoY 4Q23 QoQ Revenues 567.3 906.8 -37.4% 728.1 -22.1% COGS (473.8) (707.7) -33.1% (615.9) -23.1% Gross Profit 93.6 199.1 -53.0% 112.2 -16.6% SG&A Expenses (48.1) (60.0) -19.9% (46.3) 3.9% Operating Profit 45.4 139.0 -67.3
Slide 4: 3M24 Revenue Contribution
Indika Energy – 3M24 Revenue Contribution Revenue 3M24 : US$567.3 mn Revenue 3M23 : US$906.8 mn Non-coal 9% Non-coal 4% 2% 10% 1% 7% 7% 2.0% Kideco 8% 1% MUTU 12% 1% Coal Trading 5,8% 7% Interport - Cotrans 8% Interport 69% Tripatra 13,6% 70% Others 78,1% 7,1% Coal Coal 91% 90% 4
Slide 5: 3M24 Business Highlights – Revenue Breakdown
3M24 Business Highlights – Revenue Breakdown Subsidiaries 3M24 3M23 Chg YoY Remarks ASP ▼ 28.5% (-US$24.9/ton) from US$87.3/ton in 3M23 to Kideco 452.6 659.3 -31.4% US$62.5/ton in 3M24; Sales Volume ▼ -4.0% (-0.3MT) to 7.2MT in 3M24. Coal Trading: Sales volume ▲ 18.4% to 1.0MT in 3M24; ASP ▼35.1%
Slide 6: 3M24 Business Highlights- Gross Profit/ Margin
3M24 Business Highlights- Gross Profit/ Margin Subsidiaries 3M24 3M23 Chg YoY Remarks Cash cost inc Royalty ▼ (-US$13.3/ton) from US$64.7/ton in 3M23 to US$51.4/ton in 3M24, mainly due to 1) lower Kideco 70.3 156.8 -55.1% royalty (-US$15.6ton) as result of new calculation of HBA and 2) higher d
Slide 7: Highlights of Recent Key Events
Highlights of Recent Key Events Kideco obtains IUPK until 2033 • Kideco has obtained an extension of the operating license to become a Special Mining Business Permit/ IUPK on 16 December 2022 • The IUPK is granted with a period of 10 years until 13 March 2033, and can be extended another 10 years ac
Slide 8: Strong Cash Position supports sound Balance Sheet
Strong Cash Position supports sound Balance Sheet Total Consolidated Cash Total Consolidated Debt US$m US$m 777 1,081 1,074 20 23 696 Other Loans Bank Loans 234 224 1) Cash & Notes 2024 294 294 Other Financial assets Notes 2025 534 534 Dec-23 Mar-24 Dec-23 Mar-24 1) Kideco: US$251.8m, Tripatra: US$2
Slide 9: Successful Refinancing to Support Diversification Strategy
Successful Refinancing to Support Diversification Strategy Indika Energy successfully issued global bond of US$350 million Debt Maturity Profile at Holdco after refinancing with 5-year tenor and 8.75% coupon In US$m ✓ Improve liquidity and lengthen maturity profile to 2029 ✓ Non-callable in the firs
Slide 10: Dividend Payment and Yield 2019-2024
Dividend payment as commitment to shareholders Dividend Payment and Yield 2019-2024 * 250 14.0% 12.5% 208 12.0% 200 10.0% 150 92 8.0% 114 7.4% 109 4.1% 6.3% 90 6.4% 6.0% 100 4.0% 50 2.0% - 0.0% May 19 May 20 Aug 22** May 23*** Jun 24 Div Yield * Yield based on share price on announcement date ** Int
Slide 11: Indika Energy – Sound Balance Sheet
Indika Energy – Sound Balance Sheet Cash Breakdown by Subsidiaries LTM Free Cash Flow US$ million US$ million HoldCo & Others Kideco Tripatra 800 725 700 42 597 600 63 500 44 822 30 450 400 43 290 252 300 188 176 200 158 392 473 393 492 495 100 68 0 2020 2021 2022 2023 3M24 2020 2021 2022 2023 3M24
Slide 12: Corporate Guidance - 2024
Corporate Guidance - 2024 2024 2024 Budget 3M24 Operational Data Guidance 3M24 3M23 % Budget CAPEX (US$M) (US$M) KIDECO Kideco 16.4 3.5 21.3% Production (MT) 29.4 7.0 6.9 1.4% Indika Resources - - 0.0% Strip Ratio (x) 5.7 5.4 5.4 0.0% Xapiens 3.2 0.4 12.5% Newcastle Benchmark ($/ton) 143.0 125.8 247
Slide 13: Thermal Coal Price
Thermal Coal Price USD/ton 450 421 400 373 381 350 300 264 242 250 200 184 168 158 149 136 150 126 109 86 93 82 89 82 91 77 100 69 66 73 64 59 57 57 53 54 52 50 43 36 36 35 45 85 91 89 94 87 31 41 65 71 77 62 65 63 34 27 52 0 24 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3
Slide 14: Indonesia Coal Outlook
Indonesia Coal Outlook • The government expects domestic production to decline by 8.4% to by 710MT in 2024, from realized output of 775MT in 2023 or +12.8% YoY compared to 687MT in 2022 (target 2023: 695 MT). • Coal export increased by 11% YoY to 518MT in 2023, driven by higher demand to offset supp
Slide 15: Net-Zero
Indika Energy has set out bold aspirations as part of its ESG commitment 50% Net-Zero emissions by 2050 non-coal revenue by 2028 Notable green initiatives: A leading Indonesian One of The 1st Indonesian One of The 1st Indonesian Investment group company to commit to a Net investment groups Zero targ
Slide 16: Our Diversified Business Portfolio
Our Diversified Business Portfolio
Slide 17: Transforming into a diversified business portfolio
Transforming into a diversified business portfolio Current: Coal as core business Future: Diversified Business Portfolio Business that ✓ Diversified Business relies on coal, from Portfolio resources, ✓ Significant growth services and ✓ Less volatility infrastructure ✓ ESG investment Funding - Key Co
Slide 18: Diversified Revenue Streams from Disciplined Investments and Partnerships
Diversified Revenue Streams from Disciplined Investments and Partnerships 18
Slide 19: Indika Energy has developed into an investment company with a sustainable business portfolio
Indika Energy has developed into an investment company with a sustainable business portfolio Logistics & Logistic assets, EPC services, infrastructure, e.g. fuel storage Field exploration of coal resources, Energy Infrastructure production and trading resources Exploration of gold and other metals M
Slide 20: Green Business - Aims to accelerate Indonesia's EV ecosystem
Green Business - Aims to accelerate Indonesia’s EV ecosystem PT Indika Energy Tbk Other IMG Investors 100% PT Solusi Mobilitas Indonesia Holding of EV Company 100% 100% 100% PT Ilectra Motor Group PT Mitra Motor Group PT Kalista Nusa PT Industri Baterai Armada Holding of Electric 2 Holding of Electr
Slide 21: Green Business – To support reducing GHG emission in transport sector
Green Business – To support reducing GHG emission in transport sector Indonesia GHG emission from Industrial activities 2011-2022 Indonesia GHG emission shares in Transportation Sector in 2022 • The transport sector stands as the country’s second-largest contributor to greenhouse gas (GHG) emissions
Slide 22: Indonesia's EV – Still in early stage, but fast growing
Indonesia’s EV – Still in early stage, but fast growing EV adoption status and targets E2W growth projection for Jakarta & Bali with IDR 7 million incentive Source: IESR, Indonesia Electric Vehicle Outlook 2023 Source: IESR, ADB, 2022 • EV adoption has been increasing in recent years. In 2022 alone,
Slide 23: IMG launched its brand ALVA with its own manufacturing facilities
IMG launched its brand “ALVA” with its own manufacturing facilities and builds experience center Products Manufacturing Facilities ALVA Experience Center ALVA One – Launched in 2022 ALVA Cervo – Launched in 2023 Key Highlights 1st 2W experience center in Indonesia. Fully operational manufacturing
Slide 24: Launched the new ALVA One XP in IIMS 2024
Launched the new “ALVA One XP” in IIMS 2024 24
Slide 25: Developing businesses across the value chain in commercial EV
Developing businesses to operate across the value chain in commercial EV, with a vision to drive EV adoption in Indonesia Indika Energy has established businesses across the EV value chain Manufacturing Distribution Fleet-as-a-Service Charging Point Operatorship Local manufacturing of: Development o
Slide 26: Commercial EV - MMG Group
Commercial EV - MMG Group A group of E4W manufacturing & distributor Co with strong foreign partners Foxconn Indika Motor (FIM) Energi Makmur Buana (INVI) A joint venture between Foxconn & Indika Energy Act as distributor for commercial vehicle and its on Bus Manufacturing Facilities, which further
Slide 27: Kalista - Developing trials for a fleet-as-a-service model
Kalista - Developing trials for a fleet-as-a-service model, working with local governments and bus operators About Kalista’s FaaS model Kalista’s planned trials with local governments The fleet-as-a-service business model enables governments, public, and private businesses to accelerate the EV trans
Slide 28: Diversification Investments – Green Businesses
Diversification Investments – Green Businesses Solar Power – EMITS • Formed a JV to develop solar power business with Fourth Partner Energy Limited (4PEL), India’s leading solar developer, called Empat Mitra Indika Tenaga Surya (EMITS), with 51% stakes (not consolidated). • EMITS will provide a one-
Slide 29: EMITS – Helping Corporates, SOE, and Utility to decarbonize
EMITS – Helping Corporates, SOE, and Utility to decarbonize through our Renewable Energy solutions EMITS is Indonesia’s leading Customer Centric Renewable Energy Solutions provider on-track to build up to 500MW Operational Portfolio across Indonesia by 2027. To be a Market-Leader Installed Base* Fas
Slide 30: EMITS – End to End Capabilities
EMITS – End to End Capabilities Solar Hybrid Solution Rooftop Solar (Diesel + Batteries) Simplest solar solution on your factory rooftop to move forward Round The Clock power supply to renewable energy in Off-grid mode Canal Top Solar Unique solar solution to reduce Ground-mount Solar wide area requ
Slide 31: Indonesia's Renewable Energy – Huge solar potential, yet undeveloped
Indonesia’s Renewable Energy – Huge solar potential, yet undeveloped Installed renewable power capacity in 2021 compared to the estimated Large-scale solar capacity addition plan in RUPTL 2021–2030 (MWp) potential renewable energy capacity *exclude rooftop (3.6 GWp by 2025) and floating solar (26.65
Slide 32: Govt to convert 2.6GW diesel-fired power plants with renewable energy
Govt to convert 2.6GW diesel-fired power plants with renewable energy Indika’s consortium won tender for 102MWp hybrid solar + 252MWh Battery Storage PLN’s De-Dieselization program Phase I – total 167 MW Signing LOI to develop 102MWp hybrid solar power (Cluster II) • Indika Energy, part of a consort
Slide 33: EMITS – Project Highlights
EMITS – Project Highlights Type : Ground Mounted for pulp & paper Solar Capacity : 12.8 MWp spread over 14 ha Location : Riau, Sumatera Timeline : project carried out in record 6-mo time 8,402 tons 41,114 kilo 796,406 quantity of liters equivalent Coal saved water Carbon offset saved Type : Ground M
Slide 34: Diversification Investments – Green Businesses
Diversification Investments – Green Businesses Indika Nature – Biomass, Agroforestry, Carbon Offset Energy Plantation Environment Services Agroforestry & Non Timber Forest Product • Designated for planting Calliandra trees to • Process of obtaining a carbon credit • Develop agricultural products tha
Slide 35: Indika Nature – Biomass Energy to produce wood pellet
Indika Nature – Biomass Energy to produce wood pellet DIVA Jaya Bumi Paser 23,590 Ha East Kalimantan Diva Perdana Pesona 29,485 Ha East Kalimantan TMK • Currently in phase I with total TCG planting of 5,000 ha • With average calorific value of 4,200–4,750 kcal/kg, wood pellet is suitable for biomass
Slide 36: Indika Nature – Carbon Business at TMK to support Net Zero Target
Indika Nature – Carbon Business at TMK to support Net Zero Target Location Project Overview • PT Telaga Mas Kalimantan (TMK) is the holder of Forest Concession Rights (IUPHHK-HA (now PBPH) with an area of 82,805 ha, located in Paser Regency, E. Kalimantan Block A • The area is dominated by Meranti t
Slide 37: Indika Nature – Expanding to essential oil business
Indika Nature – Expanding to essential oil business Indika Nature acquired 100% shares in PT Natura Aromatik Nusantara An essential oil producer with the fourth largest exporter in Indonesia located in Solo, Central Java Sector attractiveness due to its traditionality and Products fragmented players
Slide 38: Diversification Investments – Minerals
Diversification Investments – Minerals Developing Gold Asset Project through Nusantara Resources A Strategic investment in Nusantara Resources Limited. Nusantara owned 100% PT Masmindo Dwi Area which has sole rights to exploit in Awak Mas Gold Project Location : South Sulawesi, 370 km from Makasar P
Slide 39: Bauxite Mine and Nickel Trading
Diversification Investments – Minerals Bauxite Mine and Nickel Trading • Bauxite mine in W. Kalimantan • Est. Reserve: 5.7 WMT • Est. Resources: 30 WMT • To build-up sizeable reserves with LT target to build a smelter to produce alumina • Entering nickel trading business by acquiring 100% shares in
Slide 40: Diversification Investments – Logistics & Infrastructure
Diversification Investments – Logistics & Infrastructure Kariangau Fuel Tank Storage Is Up and Running Build and operate fuel storages exclusively for ExxonMobil Location : Balikpapan, Kariangau, East Kalimantan Project Company : PT Karingau Gapura Terminal Energy Total Project Cost : US$115million
Slide 41: Divestment - Reducing Exposure in Coal Related Business
Divestment - Reducing Exposure in Coal Related Business Completed– PT Multi Tambangjaya Utama (MUTU) 41
Slide 42: Divestment - Reducing Exposure in Coal Related Business
Divestment - Reducing Exposure in Coal Related Business Completed Completed PT Petrosea Tbk PT Mitrabahtera Segara Sejati Tbk ✓ One of strategic directions to diversify away from coal ✓ Signed CSPA to divest 69.8% stake in PTRO on 18 Feb ✓ Signed CSPA to divest 51.0% stake in MBSS on 6 Aug 22 to PT
Slide 43: ESG: Our ESG Ratings have improved
ESG: Our ESG Ratings have improved, reflecting our initiatives and commitment Risk Rating has declined from AAA Severe to High Last update: 21 Feb 2023 50 AA Score: BBB 45 44.2 A 40 38.1 35 34.5 BBB BBB updated: 24 June 2021 BBB BBB 30 25 updated: 28 July 2022 BB BB BB 20 B 15 CCC 10 5 0 Dec-18 Jan-
Slide 44: ESG Targets Revised in 2023 to Become Even More Ambitious
ESG Targets Revised in 2023 to Become Even More Ambitious Revised Key Targets Indika Energy 2025 and 2030 ESG Targets (Relative to 2020 baseline) 2020 3M24 2025 2030 • % reduction of Emissions Scope1&2: 1,203ktCO2eq Scope1&2: 635ktCO2eq 47% 25% 33% Scope 1: 0.031 TonCO2eq/ ton • % reduction of Emiss
Slide 45: Indika Energy Flagship Programs in Sustainability
Indika Energy Flagship Programs in Sustainability As a follow up of the IMPACT launching on last March, together with the Badan Restorasi Gambut dan Mangrove Indonesia (BRGM) and Maroon as the implementing partner, we discussed further plans for planting and maintaining mangroves in Paser, East Kali
Slide 46: Key ESG initiatives to drive impact throughout the past year
Key ESG initiatives to drive impact throughout the past year Environmental Social Increased use of solar power Kideco’s ESG Day • Solar PV in INDY Bintaro office (313Kwp) • A 10-day program to increase employees’ • Solar PV in Interport Business Park, knowledge of ESG through competitions and Balikp
Slide 47: Comprehensive review of ESG-related policy framework
We also embarked on a comprehensive review of our company’s ESG-related policy framework As part of our efforts to improve our sustainability governance, we have developed and published five new policies on our website Contents Scope Governance Next Steps Mechanism Each policy outlines the key These
Slide 48: We also expanded our network by joining ESG-related associations
We also expanded our network by joining ESG-related associations Overview Overview The UN Global Compact is a conviction rooted in universal Indonesia Business Council for Sustainable Development principles to help the global marketplace to be more socially and (IBCSD) is a CEO-led association of co
Slide 49: Appendix
Appendix 49
Slide 50: Indika Energy, an Indonesian Investment Holding Company
Indika Energy, an Indonesian Investment Holding Company PT Indika Energy Tbk. 1 ▪ Energy Resources 2 ▪ Energy Services 4 Logistic & Infrastructure 6 • Green Businesses Renewable Energy - Established since 2021 - Joint investment with Fourth - Established since 1991 - Established since 2018 Partner E
Slide 51: Indika Energy's Financial Highlights
Indika Energy’s Financial Highlights Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 4500 4,334.9 1600 1400 1,450.8 1,210.1 3600 3,069.2 1200 1050 3,026.8 918.1 772.7 2700 800 700 1,813.8 1800 552.0 312.2 400 350 900 567.3 173.3 93.6 71.9 45.4 0 0 0 2020 2021 2022 2023 3M24 2020 20
Slide 52: Indika Energy's Key Business and Credit Ratios
Indika Energy’s Key Business and Credit Ratios LTM Adj EBITDA* (USD mn) & LTM Adj EBITDA Margin (%) Gross Debt & Net Debt / Adj. EBITDA (x) Debt / Capital (%) 70% 66.1% 63.7% EBITDA EBITDA Margin Gross Debt Net Debt 1,500 1,409.8 40% 8 60% 6.2 977.5 35% 50% 44.8% 1,150 6 44.3% 43.9% 30% 33.5% 5 3.6
Slide 53: Kideco – Leading Coal Producer in Indonesia
Kideco – Leading Coal Producer in Indonesia • Third largest coal producer in Indonesia • Environmental friendly thermal coal with ultra-low sulphur of 0.1% and low ash of (2.1% to 4.9%) • Attractive location with well-built infrastructure, and integrated value chain within the group, allowing for st
Slide 54: Kideco's Financial Highlights
Kideco’s Financial Highlights Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) 3200 3,008.8 1350 1350 1,222.7 1,126.9 1080 1080 2400 2,196.9 2,223.3 835.4 773.7 810 810 1600 1,249.5 540 540 411.4 800 305.7 452.6 270 177.1 270 138.3 70.3 48.7 0 0 0 2020 2021 2022 2023 3M24 2020 2021
Slide 55: Kideco's Operational Highlights
Kideco’s Operational Highlights Cash Cost Breakdown Coal Production (mn ton) Coal Sales (mn ton) Labor & Others 40 40 O/H 35.8 34.8 35.8 34.8 2.6% 11.1% 35 33.0 35 33.0 30.1 30.5 30 30 Freight 25 25 5.2% Material 0.0% 20 20 CM & Rental 15 15 44.6% 10 7.0 10 7.2 Gov. Royalty 5 5 27.4% 0 0 2020 2021 2
Slide 56: Kideco's Operational Highlights
Kideco’s Operational Highlights YTD Summary P&L (US$mn) 1Q24 1Q23 YoY 4Q23 QoQ 3M24 3M23 YoY Sales 452.6 659.3 -31.4% 517.1 -12.5% 452.6 659.3 -31.4% Gross profit 70.3 156.8 -55.1% 84.3 -16.6% 70.3 156.8 -55.1% Operating profit 48.7 133.6 -63.5% 38.0 28.3% 48.7 133.6 -63.5% Net income 36.2 90.4 -60.
Slide 57: Tripatra's Financial Highlights (1)
Tripatra’s Financial Highlights (1) Revenue (USD mn) Gross Profit (USD mn) Net Profit* (USD mn) 400.0 30 25.1 20 18.8 8.9 20 10 301.0 306.2 1.5 300.0 10 3.6 0 231.8 228.6 -1.0 0 -10 200.0 -10 -7.4 -20 -20 -30 100.0 -30.6 -30 -40 0.0 -31.4 0.0 -40 -50 -43.5 2020 2021 2022 2023 3M24 2020 2021 2022 202
Slide 58: Tripatra's Financial Highlights (2)
Tripatra’s Financial Highlights (2) * Revenues Breakdown by Value 3M24: US$31.5 mn 3M23: US$66.5 mn TPE 15.8% TPE 29.1% TPEC 70.9% TPEC 84.2% Cost Structure 3M24: US$27.9 mn 3M23: US$62.6 mn 6.6% 2.7% 1.3% 8.7% 10.7% 4.8% Salary & allowance 3.4% Material 38.1% 12.4% Constructions 36.0% Travel & tran
Slide 59: Tripatra Backlog
Tripatra Backlog New Contract/ Remaining Contract Revenue Remaining Contract Adjustment Value Descriptions Value Recognition Value in 2024 Per 31 Dec 2023 Per 31 Mar. 2024 Per 31 Mar. 2024 Tripatra Tripatra Engineers & Constructors 184.2 71.2 22.4 233.1 Tripatra Engineering 28.6 3.2 9.2 22.6 Total (
Slide 60: Indika Resources' Financial Highlights
Indika Resources’ Financial Highlights Revenues (USD mn) Cost of Goods Sold (USD mn) Gross Profit (USD mn) 900 852.7 700 660.2 250 800 600 192.6 700 200 500 600 417.4 491.4 150 500 439.4 400 359.5 400 300 100 79.9 74.0 300 200 167.9 190.5 200 50 100 62.3 22.6 100 69.8 7.5 0 0 0 2020 2021 2022 2023 3
Slide 61: Indika Resources' Financial Highlights (2)
Indika Resources’ Financial Highlights (2) * Revenues Breakdown 3M24: US$69.8 mn 3M23: US$161.4 mn Coal Coal Trading Trading 42.8% 42.9% MUTU MUTU 57.2% 57.1% MUTU ASP (USD/ton) * MUTU Cash Cost (USD/ton) 250 140 127.7 192.9 120 200 103.6 97.9 100 150 129.7 80 113.8 60.3 93.0 60 46.6 100 60.1 40 50
Slide 62: Interport's Financial Highlights
Interport’s Financial Highlights Revenues (USD mn) Revenue Breakdown Gross Profit (USD mn) Others, KGTE 35 32.5 140 5.1% 21.4% 114.6 30 120 25 100 20 80 IBP 14.2 60 15 10.9% 9.3 40 34.7 10 7.2 29.1 27.6 7 15.5 Cotrans 20 5 62.3% 0 0 2020 2021 2022 2023 3M24 2020 2021 2022 2023 3M24 Net Profit (USD m
Slide 63: Notes Outstanding
Notes Outstanding Ba 3 Stable Outlook (as of May 2023) The Senior Notes are rated: BB - / Stable Outlook International Ratings (as of May 2023) Indika Energy Capital III Pte. Ltd. Indika Energy Capital IV Pte. Ltd. USD 293.6mn USD534.1 mn 5.875% 7-year Senior Notes 8.250% 5-year Senior Notes Reg S /
Slide 64: THANK YOU
THANK YOU 64