Pt Indo Tambangraya Megah Tbk · IDX:ITMG

Pt Indo Tambangraya Megah Tbk — Q3 2018 Earnings Presentation

31 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Nov 14, 2018

  1. Slide 1: Analyst Briefing 3Q18 Performance Results

    ANALYST BRIEFING 3Q18 PERFORMANCE RESULTS Jakarta, 14 November 2018

  2. Slide 2: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 2

  3. Slide 3: Highlights of 3Q18 and 9M18 results

    Highlights of 3Q18 and 9M18 results Coal sales Coal sales 6.4 Mt 16.1 Mt Up 1.1Mt Down 0.4 Mt +21% Q-Q -2% Y-Y Unit: US$ million 2Q18 3Q18 Q-Q 9M17 9M18 y-y Total Revenue 431 606 +41% 1,164 1,415 +22% Gross Profit Margin 27% 33% +6% 30% 30% 0% EBIT 79 154 +95% 267 321 +20% EBITDA 93 170 +82% 310 366

  4. Slide 4: ITM coal value chain strategy

    ITM coal value chain strategy SHAREHOLDERS VALUE RESERVES PRODUCTION MARKETING Growing synergistic premium Enhance margins along coal Expand product range, market coal reserves production value chain and profitability • Grow organically (e.g. new mining • Focus on operational excellence, • Aim for n

  5. Slide 5: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 5

  6. Slide 6: Operational Summary 2018

    Operational Summary 2018 2018 TARGET: 22.5 Mt QUARTERLY OUTPUT TREND East Unit: Mt Kalimantan 6.8 6.4 Bharinto 5.7 INDOMINCO 5.2 Jorong Kitadin 12.8 Mt 4.1 Trubaindo Bunyut Port TRUBAINDO TD.MAYANG Indominco 4.7 Mt BHARINTO Samarinda KITADIN 4Q17 1Q18 2Q18 3Q18 4Q18e 2.7 Mt 4Q17 1Q18 2Q18 3Q18 4Q18e

  7. Slide 7: Indominco Mandiri

    Indominco Mandiri SCHEMATIC QUARTERLY UPDATES 2018 target: 12.8 Mt Operations  3Q18 production achieved above target due to good weather condition. Ports Hauling  Additional loading capacity has been prepared to Stockpile cater for the increased output during 4Q18. West Block ROM Mine Crusher  Av

  8. Slide 8: Melak group – Trubaindo and Bharinto

    Melak group – Trubaindo and Bharinto SCHEMATIC QUARTERLY UPDATES 2018 target: TCM 4.7 Mt  Trubaindo: Mahakam BEK 2.7 Mt River  3Q18 production output slightly higher than Bunyut target. Port  Continue hauling road improvement activities East Kalimantan Product coal conveyor, stacking, from Trubai

  9. Slide 9: Kitadin Embalut and Tandung Mayang

    Kitadin Embalut and Tandung Mayang SCHEMATIC QUARTERLY UPDATES 2018 target: EMB 1.1 Mt  Kitadin Embalut:  3Q18 production output was above the target. TD. Mayang  On-going study to optimize coal reserves. Bontang IMM WB IMM EB city  Kitadin Td.Mayang:  Continue mine closure activities including

  10. Slide 10: Jorong

    Jorong SCHEMATIC QUARTERLY UPDATES 2018 target: 1.2 Mt  3Q18 production achieved according to target.  Additional drilling and coal price improvement resulted in potential additional reserves – for better Pelaihari mine closure activities. QUARTERLY OUTPUT Haul road Unit: Mt 0.3 0.3 0.3 0.3 0.3 20

  11. Slide 11: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 11

  12. Slide 12: Global demand trends: 2018 vs 2017

    Global demand trends: 2018 vs 2017  Several typhoons helped reduce temperature in the coastal area resulted in lower power consumption for air conditions CHINA and led to weak coal burn and high stocks  Maintain coal import restriction  Strong demand due to continuous industrial production growth

  13. Slide 13: Global supply trends: 2018 vs 2017

    Global supply trends: 2018 vs 2017 COMMENTS  Government attempts to boost exports to support currency INDONESIA  Exports has been driven by seaborne demand, particularly China, rather than government intervention AUSTRALIA  High producer discipline continued to tighten high CV market COLOMBIA  P

  14. Slide 14: China: strong demand amid tight supply

    China: strong demand amid tight supply 3Q18  Strong inland thermal coal demand due to hot weather but coastal demand was not as strong as it was inland due to several typhoons brought lower temperature with them.  Weaker coal burn in coastal area led to high coal stocks at power plants.  Domestic

  15. Slide 15: India: robust demand amid supply deficit

    India: robust demand amid supply deficit 3Q18  Strong power demand growth due to increasing industrial production.  A dip in supply from nuclear and hydropower led to increased reliance on coal power generation.  Growth in domestic production and despatches can only partially meet the growing dem

  16. Slide 16: ITM coal sales 9M18

    ITM coal sales 9M18 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 9M18 3.0 Mt 3.1 Mt Italy Bangladesh Others Hongkong 1% 0.7 Mt Taiwan 2% 2% 1% Korea 4% 5% Japan 2.2 Mt 0.2 Mt Vietnam 19% KOREA 5% ITALY CHINA 0.8 Mt 0.4 Mt Thaliand 6% China 0.9 Mt 0.6 Mt JAPAN HK 1.5 19% 1.7 Mt TAIWAN Philippines 0

  17. Slide 17: Indicative coal sales 2018

    Indicative coal sales 2018 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Uncontracted Unsold Indexed 2% 2% 8% 90% Fixed Contracted Contracted 98% TARGET SALES 2018: 24.2 Mt 17

  18. Slide 18: ITM ASPs vs thermal coal benchmark prices

    ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES Monthly NEX COMMENTS 200 Unit: US$/ton 150  3Q18 ASP firmed up according to strong 100 50 market due supply tightness 0 – ITM ASP: US$88.6/t* (+13% QoQ) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 – NEX (Nov 09, 2018)*

  19. Slide 19: Agenda

    Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 19

  20. Slide 20: Sales Revenue

    Sales Revenue Unit: US$ million +41% QoQ +46% YoY 606 71 Others +67% (QoQ) ; +259% (YoY) 10 Jorong -42% (QoQ) ; 0% (YoY) 415 27 Kitadin +30% (QoQ) ; +40% (YoY) 431 20 108 Bharinto +74% (QoQ) ; +95% (YoY) 42 10 18 20 21 56 62 Trubaindo +68% (QoQ) ; +45% (YoY) 212 146 126 285 Indominco +16% (QoQ) ; +1

  21. Slide 21: Average Gross Margin

    Average Gross Margin Unit : US$ Million 606 Revenue GPM* (%) 285 256 431 247 415 212 146 126 108 45% 35% 46% 62 45% 35% 56 38% 32% 21 27 34% 49% 20 18 32% 10 10 50% 41% 49% 60% 47% 38% 26% 24% 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 Indominco Trubain

  22. Slide 22: Cost Analysis

    Cost Analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Avg. 9M17: 10.9 Unit: US$/t Avg. 9M17: $40.3/t Unit: Bcm/t Avg. 9M18: 11.1 Avg. 9M18: $50.2/t 12.3 12.1 12.0 10.8 10.8 52.9 45.1 48.0 50.2 40.5 Others 50.8 44.5 Coal 44.8 43.7 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18 FUEL PRICE TOTA

  23. Slide 23: EBITDA

    EBITDA +82% QoQ Unit: US$ million +39% YoY 170 6 Others +17% (QoQ) ; +42 (YoY) 0.2 Jorong -76% (QoQ) ; -85% (YoY) 14 Kitadin +64% (QoQ) ; +82% (YoY) 35 Bharinto +137% (QoQ) ; +78% (YoY) 123 4 93 1 8 5 20 1 8 65 Trubaindo +218% (QoQ) ; +114% (YoY) 30 15 20 55 54 Indominco +22% (QoQ) ; -3%(YoY) 44 3Q1

  24. Slide 24: Net Income

    Net Income Unit: US$ million +113% QoQ +42% YoY 95 8 Kitadin +107% (QoQ) ; +74% (YoY) 26 Bharinto +138% (QoQ) ; +100 % (YoY) 67 1 5 44 1 39 Trubaindo +205% (QoQ) ; +205% (YoY) 13 4 13 10 13 32 Indominco +34% (QoQ) ; +1%(YoY) 32 22 Jorong -100% (QoQ) ; n.a (YoY) (1) (3) (0.2) (3) Others 0%(QoQ) ; n.m

  25. Slide 25: Balance Sheet

    Balance Sheet KEY RATIOS CASH POSITION Unit: US$ million Net Gearing (%) 374 Net D/E (times) 351 328 268 226 (26%) (32%) (36%) (39%) (35%) (0.26) (0.32) (0.36) (0.39) (0.35) 2014 2015 2016 2017 3Q18 2014 2015 2016 2017 3Q18 DEBT POSITION Unit: US$ million 0 0 0 0 0 2014 2015 2016 2017 3Q18 25

  26. Slide 26: 2018 Capital Expenditure Plan

    2018 Capital Expenditure Plan Units: US$ million 4.5 Indominco 16.0 11.4 Trubaindo Realized up to Sep 2018 20.8 2018 Capex plan 2.9 Bharinto 22.7 0.1 Jorong 5.9 18.4 TRUST 40.0 38.8 ITM Consolidated 107.1 26

  27. Slide 27: Thank you Question & Answer

    Thank you Question & Answer 27

  28. Slide 28: Appendices

    7 / ITM Appendices

  29. Slide 29: Income Statement

    Income Statement Unit: US$ thousand 3Q18 2Q18 3Q17 QoQ% YoY% Net Sales 606,295 430,649 415,029 41% 46% Gross Profit 203,104 114,692 134,338 77% 51% GPM 33% 27% 32% SG&A (48,993) (35,833) (26,917) 37% 82% EBIT 154,111 78,859 107,421 95% 43% EBIT Margin 25% 18% 26% EBITDA 169,877 93,405 122,620 82% 39

  30. Slide 30: Income Statement

    Income Statement Unit: US$ thousand 9M18 9M17 YoY% Net Sales 1,415,191 1,163,813 22% Gross Profit 428,849 346,881 24% GPM 30% 30% SG&A (108,176) (79,783) EBIT 320,673 267,098 20% EBIT Margin 23% 23% EBITDA 365,534 310,273 18% EBITDA Margin 26% 27% Net Interest Income / (Expenses) 2,299 2,050 FX Gain

  31. 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% 99.00% 99.99% 99.00% 70.00% 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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