Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q1 2016 Earnings Presentation
34 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, May 13, 2016
Slide 1: Analyst Briefing 1Q16 Performance Results
Analyst Briefing Analyst briefing 1Q16 Performance Results 2Q15 performance results Jakarta, 13 May 2016 13th August 2015
Slide 2: Disclaimer
DISCLAIMER The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation ha
Slide 3: Introduction
1 Introduction 2 Operational review 3 Commercial review 4 Financial review 3
Slide 4: Highlights of 1Q16 results
Highlights of 1Q16 results Coal Sales: 6.9 Mt Down 0.3 Mt Down 0.2 Mt -4% Q-Q -3% y-y Unit: US$M 1Q16 4Q15 1Q15 Q-Q y-y Total Revenue 331 383 428 -14% -23% Gross Profit Margin 21% 24% 23% -3% -2% EBIT 38 47 59 -19% -35% EBITDA 50 66 74 -25% -33% Net Income 23 (20) 38 +216% -39% ASP (USD/ton) $47.6 $
Slide 5: ITM: the way forward
ITM: the way forward • Long term sustainable and • Focus on benefits of reliable growth both shareholders and return in and stakeholders energy and related • Working in tandem business with key Governance & • Continue legacy – Society stakeholders Strategic excellent choice for Sustainability global
Slide 6: ITM: strategy towards sustainability
ITM: strategy towards sustainability RESERVES COST PRODUCT MARKET Strengthening OPTIMIZATION RATIONALIZATION ENHANCEMENT EXPANSION the core Adopt new Supply chain Improve coal Look to mining method improvements quality through expand into (including Process blending new market underground
Slide 7: ITM financial strategies: strength and flexibility
ITM financial strategies: strength and flexibility STRONG BALANCE SHEET STRONG CASH FLOW SHARE BUYBACK Price per share Trading volume (IDR) (M shares) 375 9000 14 BUYBACK Millions 8000 ANNOUNCEMENT 12 289 295 300 10 268 258 7000 226 8 6000 Cash on EBITDA 6 hand ($M) ($M) 5000 4 4000 2 3000 0 2013 20
Slide 8: Banpu 2020: horizontal integration
Banpu 2020: horizontal integration EXISTING UPSTREAM MIDSTREAM DOWNSTREAM COAL RESOURCE COAL LOGISTICS, COAL-FIRED POWER DEVELOPMENT, MINING TRADING, MARKETING GENERATION BANPU POWER NEW UNCONVENTIONAL FUEL PROCUREMENT, GAS-FIRED & RENEWABLES SHALE GAS CHEMICALS MARKETING BASED POWER EVALUATION UNDE
Slide 9: Operational review
1 Introduction 2 Operational review 3 Commercial review 4 Financial review 9
Slide 10: Operational summary 2016
Operational summary 2016 2016 OUTPUT TARGET QUARTERLY OUTPUT TREND 2016 Target: 26.9 mt Unit: Mt East 7.4 7.1 Kalimantan 7.0 6.2 6.4 Bharinto Jorong INDOMINCO Kitadin 16.0 Mt Trubaindo Bunyut Port Indominco TRUBAINDO TD.MAYANG 6.2 Mt BHARINTO Samarinda 2Q15 2Q15 3Q15 3Q15 4Q15 4Q15 1Q16 1Q16 2Q16e 2
Slide 11: Indominco Mandiri
Indominco Mandiri SCHEMATIC QUARTERLY UPDATES 2016 target: 16.0 Mt 1Q16 production was higher than plan due to in- Operations Ports pit inventory and good weather condition at Hauling Indominco area. West Block Stockpile Total average strip ratio in 2016 is expected to be ROM stockpile Mine Crus
Slide 12: Trubaindo and Bharinto
Trubaindo and Bharinto SCHEMATIC QUARTERLY UPDATES 2016 target: TCM: 6.2Mt Trubaindo: Mahakam BEK: 2.4Mt River 1Q16 production output was slightly lower than Bunyut target due to heavy rains affecting mine production. Port Bunyut port expansion: completed preventive and East Kalimantan Product
Slide 13: Kitadin Embalut and Tandung Mayang
Kitadin Embalut and Tandung Mayang SCHEMATIC QUARTERLY UPDATES 2016 target: EMB: 1.1Mt Kitadin Embalut: 1Q16 production achieved as plan. TD. Mayang Bontang Kitadin Tandung Mayang: city IMM WB IMM EB Mine closure activities already started in 1Q16. Last mining activity was done in Sep 2015
Slide 14: Jorong
Jorong SCHEMATIC MAJOR QUARTERLY UPDATES 2016 target: 1.2Mt 1Q16 production achieved as according to target. Mine reserves will be depleted by 2018. Mine closure plan is being reviewed by government for approval. Pelaihari QUARTERLY OUTPUT Haul road Unit: Mt 20km 0.3 0.3 0.3 0.3 0.3 0.3 1Q15 2
Slide 15: Commercial review
1 Introduction 2 Operational review 3 Commercial review 4 Financial review 15
Slide 16: Global thermal coal market trends: 2016 vs 2015
Global thermal coal market trends: 2016 vs 2015 SUPPLY TRENDS DEMAND TRENDS Supply tightness in the first quarter comes from various issues included Uncertainty of demand in China and falling demand in India and bad weather, rail and port maintenance, price negotiation tactics but Europe continues d
Slide 17: China thermal coal market review
China thermal coal market review CHINA COMMENTS CHINA THERMAL COAL IMPORTS/EXPORTS* Government stimulus package to boost property Unit: Mt sector, helps to boost demand. 235 252 229 Strengthened Chinese demand through March 178 156 151 seems to be temporary due to extreme cold wave in 137 Import
Slide 18: India thermal coal market review
India thermal coal market review INDIA COMMENTS INDIA THERMAL COAL IMPORTS* Unit: Mt Still weaknesses in the economy as industrial 163 164 production growth continues sluggish. 154 136 Impressive domestic coal production and increasing 107 protectionism reduces coal import in 2016. 87 68 India
Slide 19: ASP vs thermal coal benchmark prices
ASP vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: $/t ITM ASP eased due to general market 200 Monthly NEX weakness. 180 Quarterly ITM ASP 160 – 1Q16 ASP was 10% down Q-o-Q. 140 NEX benchmark prices remain weak. 120 100 80 60 40 20 0 Sep-07 Sep-09 Sep-11 Sep-13 Sep-1
Slide 20: ITM coal sales 1Q16
ITM coal sales 1Q16 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 1Q16 Malaysia Others Italy USA Taiwan 1% Korea 1% Japan 2% 3% 3% 22% Philippines 7% ITALY KOREA USA 0.1 Mt 0.2 Mt 0.1 Mt CHINA JAPAN Thailand 8% 1.4 Mt 1.5 1.5 Mt TAIWAN 20% 0.2 Mt THAILAND 15% China INDIA 0.5 Mt 1.0 Mt PHILIPPINES I
Slide 21: Indicative coal sales 2016
Indicative coal sales 2016 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Uncontracted Unsold 22% 22% Unpriced 7% 57% Fixed 14% Contracted 78% Indexed TARGET SALES 2016: 28.5 Mt 21
Slide 22: Financial review
1 Introduction 2 Operational review 3 Commercial review 4 Financial review 22
Slide 23: Sales revenue
Sales revenue USD million 428 -14% QoQ 16 383 -23% YoY 47 12 331 Jorong 40 51 17 +33% (QoQ) ; +5% (YoY) 15 Kitadin 62 -72% (QoQ) ; -69% (YoY) 154 40 Bharinto -35% (QoQ) ; 0% (YoY) 137 111 Trubaindo -19% (QoQ) ; -28% (YoY) Jorong Kitadin 243 200 Indominco ASP Bharinto 198 1Q16 : $47.6 /ton -1% (QoQ)
Slide 24: Average gross margin
Average gross margin 428 Units: US$M 383 243 331 200 193 Revenue GPM* (%) 154 137 111 62 23% 51 24% 40 40 47 21% 20% 18% 16 17 14% 39% 15 23% 28% 12 28% 24% 18% 18% 17% 15% 14% 11% 38% 33% 1Q15 4Q15 1Q16 16% 1Q15 4Q15 1Q16 1Q15 4Q15 1Q16 1Q15 4Q15 1Q16 1Q15 4Q15 1Q16 1Q15 4Q15 1Q16 ITM Consolidated
Slide 25: Total cost
Total cost WEIGHTED AVERAGE STRIP RATIO COST OF GOODS SOLD Unit: Bcm/t Avg. FY14 : 10.0 Unit: US$/t Avg. FY14: $52.9/t Avg. FY15 : 8.5 Avg. FY15: $44.0/t 9.5 8.7 8.6 8.6 46.2 46.4 43.4 40.4 37.8 7.1 1Q15 2Q15 3Q15 4Q15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16 FUEL PRICE TOTAL COST* Unit: US$/Ltr Avg. FY14: $1.
Slide 26: EBITDA
EBITDA USD million 74 -25% QoQ 1 66 -33% YoY 5 3 Jorong 3 6 50 +7% (QoQ) ; +476% (YoY) 4 Kitadin 20 5 1 -91% (QoQ) ; -89% (YoY) Bharinto 3 -44% (QoQ) ; -10% (YoY) 22 Trubaindo 18 -18% (QoQ) ; -11% (YoY) Jorong Kitadin 44 Bharinto 29 Indominco 23 -23% (QoQ) ; -49%(YoY) Trubaindo Indominco 1Q15 4Q15 1
Slide 27: Net income
Net income USD million 38 +216% QoQ 3 -39% YoY 1 23 Jorong 10 3 +7% (QoQ) ; +770% (YoY) (20) 1 Bharinto 3 -59% (QoQ) ; -8% (YoY) 11 7 Trubaindo Jorong Kitadin +53% (QoQ) ; +14% (YoY) 26 3 Bharinto Indominco Trubaindo 11 7 +135% (QoQ) ; -58%(YoY) Indominco (0) Kitadin (32) (7) -198% (QoQ) ; -311% (Yo
Slide 28: Balance sheet
Balance sheet KEY RATIOS CASH POSITION Net Gearing (%) Unit: US$M 461 Net D/E (times) 295 289 268 226 (46%) (32%) (26%) (32%) (35%) (0.46) (0.32) (0.26) (0.32) (0.35) 2012 2013 2014 2015 1Q16 2012 2013 2014 2015 1Q16 DEBT POSITION Unit: US$M 0 0 0 0 0 2012 2013 2014 2015 1Q16 28
Slide 29: 2016 Capital expenditure plan
2016 Capital expenditure plan Units: USD million 0.9 Indominco 8.6 3.3 Trubaindo 24.6 0.3 Bharinto 1.2 Realized up to Mar’16 0.0 2016 Capex plan Kitadin 0.1 0.0 Jorong 0.1 5.0 ITM Consolidated 38.4 Note: Total capex plan including Jakarta office and PT. TRUST (Mining Contractor Business) after elimi
Slide 30: Thank you Question & Answer
Thank you Question & Answer 30
Slide 31: Appendices
Nim Appendices
Slide 32: ITM structure
ITM structure Banpu Banpu PCL 99.99% BMC Banpu Minerals Co.Ltd 50.00% 100.00% Banpu Coal 50.00% Investment Co.Ltd BCI BMS Banpu Minerals (Singapore) Pte Ltd 65.14% INDONESIAN STOCK EXCHANGE 34.86% Public ITMG PT Indo Tambangraya Megah Tbk. IPO 18th Dec 2007 99.99% 99.99% 99.00% 99.99% 99.00% 99.99%
Slide 33: Income statement
Income statement Unit: US$ thousand 1Q16 4Q15 1Q15 QoQ% Y oY % Net Sales 331,105 383,015 427 ,7 07 -14% -23% Gross Profit 69,664 90,589 99,005 -23% -30% GPM 21% 24% 23% SG&A (31 ,21 3) (43,387 ) (39,7 1 8) EBIT 38,451 47 ,202 59,287 -19% -35% EBIT Margin 12% 12% 14% EBIT DA 49,7 7 3 66,080 7 4,268 -
Slide 34: Dividend
Dividend Dividend payout (%) Dividend per share (Rp) 90% 2,506 80% 90% 88% 75% 1,666 70% 80% 90% 75% 1,464 50% 100% 1,286 108% 75% 1,168 1,014 975 1,100 678 795 645 752 407 100% 61 1H09 2H09 1H10 2H10 1H11 2H11 1H12 1H12 1H13 2H13 1H14 2H14 1H15 2H15* Rp 1,964/s Rp 1,202/s Rp 3,674/s Rp 3,130/s Rp 1
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