Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — FY2018 Earnings Presentation
34 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Feb 28, 2019
Slide 1: Analyst Briefing 4Q18 & FY18 Performance Results
ANALYST BRIEFING 4Q18 & FY18 PERFORMANCE RESULTS Jakarta, 28 February 2019
Slide 2: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 2
Slide 3: Highlights of 4Q18 and FY18 results
Highlights of 4Q18 and FY18 results Coal sales Coal sales 7.4 Mt 23.5 Mt Up 1.0 Mt Up 0.4 Mt +15% Q-Q +2% Y-Y Unit: US$ million 3Q18 4Q18 Q-Q FY17 FY18 y-y Total Revenue 606 592 -2% 1,690 2,008 +19% Gross Profit Margin 33% 26% -7% 30% 29% -1% EBIT 154 111 -28% 388 432 +11% EBITDA 170 132 -22% 448 49
Slide 4: 2018 highlights
2018 2018 highlights Highlights A premium coal producer with +122 Mt $81/t $497 M growing business segments along Coal reserves ASP recorded in Solid EBITDA acquisition and the coal value chain additional drilling to FY18 +11% y-y growth +11% y-y 354 Mt Organic and +122 Mt 2 Mt 221 ML Additional coa
Slide 5: Additional coal reserves
Additional coal reserves Unit: Mt Coal reserves increased by 122 Mt from 2017 +77 (22) 354 +45 254 END 2017 Exploration Acquisition 2018 Sales END 2018 and mine plan NPR mine Depletion improvement in 2Q18 2018 5 5
Slide 6: Optimizing coal assets value milestones 2016-2018
Optimizing coal assets value milestones 2016-2018 2016 2017 2018 Coal value chain portfolio as end of 2018 Reserves 198 254 354 Mt Mt Mt COAL MINING +77 Mt from organic +77 Mt from NPR -22 Mt from sales +45 Mt from organic KITADIN -22 Mt from sales 4 Mt coal reserves TRUBAINDO Third party coal sales
Slide 7: Awards and achievements in 2018
Awards and achievements in 2018 Platinum Awards for Best Investment Best Corporate Gold Rating for Quality Control and Realization Governance Sustainability Report Productivity According to the Practice Award Management Work Plan & Budget From Indonesian ITM’s Sustainability From Quality Control Ind
Slide 8: Strategies: 2019 and beyond
Strategies: 2019 and beyond OPERATIONAL IMPROVEMENT EXPAND CORE BUSINESS Expand coal stockyard capacity at Bunyut Port. Leverage ITM’s expertise and existing Improve coal hauling road condition at Melak infrastructure to create synergy among nearby concessions. concessions. Optimize Jorong p
Slide 9: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 9
Slide 10: Operational Summary 2018-2019
Operational Summary 2018-2019 2018 OUTPUT: 22.1 Mt 2019 TARGET: 23.6 Mt* OUTPUT TREND East Unit: Mt 22.1 Kalimantan 21.8 Bharinto 12.61 Jorong 12.5 Kitadin INDOMINCO Trubaindo 4.7 4.9 Bunyut Port 2018 2019e 2018 2019e TRUBAINDO EMBALUT 6.4 6.4 Indominco 5.0 BHARINTO Samarinda 4.1 2.6 3.1 1.1 1.4 201
Slide 11: 2018 operational review
2018 operational review INDOMINCO • Indominco production volume 12.6 Mt in 2018. • Rationalized capex spending by 44% in 2018. • Indominco achieved 2 Gold awards for SDGs Goal ‘Quality Education’ and ‘Marine Ecosystems’ from Indonesian Sustainable TD. MAYANG Development Goals Awards (ISDA) in Sep 20
Slide 12: Indominco Mandiri
Indominco Mandiri SCHEMATIC OUTPUT TREND 2019 target: 12.5 Mt Operations Unit: Mt 13.0 12.6 Ports 1.5 1.1 W Block Hauling Stockpile West Block ROM Crusher stockpile Mine 3.7 3.9 11.4 11.5 E. Block stockyard 2.8 0.4 0.5 2.2 0.4 East Block 0.1 3.3 3.4 2.1 2.4 Bontang City 35Km 1Q18 3Q18 4Q18 1Q19e 201
Slide 13: Melak group – Trubaindo and Bharinto
Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND 2019 target: TCM 4.9 Mt Unit: Mt 7.3 Mahakam 6.9 BEK 3.1 Mt River Bunyut 2.6 Bharinto Port 2.2 East Kalimantan Product coal conveyor, stacking, stockpile 1.9 2.0 Trubaindo 40km 1.5 1.6 4.7 4.7 Mine to port 0.6 0.7 Operations 0.5 0.6 Barge P
Slide 14: Kitadin Embalut and Tandung Mayang
Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND 2019 target: EMB 1.4 Mt Unit: Mt TD. Mayang 1.1 Bontang 0.9 city IMM WB IMM EB 0.3 0.3 0.3 ROM Bontang 0.2 stockpile Port Embalut 1Q18 3Q18 4Q18 1Q19e 2017 2018 5km Mine to port Embalut Port S/R (bcm/t) - Embalut : 11.2x 9.8x 12.8x 12.9x 12.2
Slide 15: Jorong
Jorong SCHEMATIC OUTPUT TREND 2019 target: 1.7 Mt Unit: Mt 1.1 Pelaihari 0.9 0.3 0.3 0.3 0.3 Haul road 1Q18 3Q18 4Q18 1Q19e 2017 2018 20km S/R (bcm/t) : 6.1x 6.5x 6.5x 5.0x 6.3x 6.3x Jorong COMMENTS Coal Operations terminal 4Q18 production achieved according to target. Barge Port Java Sea Additi
Slide 16: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 16
Slide 17: Global demand trends: 2018 vs 2017
Global demand trends: 2018 vs 2017 CHANGE GEOGRAPHY COMMENTS 2018-17 (Mt) Import restriction reduced coal imports sharply in Q4, significant impact to low-energy coal market. Mild winter, slowed economy, increased domestic supply and high stocks at CHINA +21 power plants led to weak demand in Q4
Slide 18: Global supply trends: 2018 vs 2017
Global supply trends: 2018 vs 2017 CHANGE GEOGRAPHY COMMENTS 2018-17 (Mt) Significant growth of LCV production. Chinese import restriction weighed on Q4 exports and pressured LCV coal INDONESIA +31 prices. Started rainy season in Q4. AUSTRALIA +8 Weather and rail and port maintenance limited
Slide 19: ITM coal sales FY18
ITM coal sales FY18 COAL SALES BREAKDOWN BY DESTINATION COAL SALES FY18 4.9 Mt 4.3 Mt Italy Bangladesh Others Hongkon 1% 1.0 Mt g Taiwan 2% 3% 1% Korea 4% China 3.5 Mt Vietnam 4% 21% 0.2 Mt KOREA 4% ITALY CHINA 0.5 Mt 0.9 Mt Thaliand 5% 1.1 Mt 0.8 Mt HK 1.5 JAPAN 0.8 Mt 2.2 Mt Japan INDIA TAIWAN Phi
Slide 20: Indicative coal sales 2019
Indicative coal sales 2019 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Fixed Uncontracted 20% 39% 39% Unpriced Unsold 2% 61% Contracted Indexed Contracted 39% TARGET SALES 2019: 26.5 Mt 20
Slide 21: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Monthly NEX Unit: US$/ton 200 Chinese import restriction weighed in on Q4 150 exports and pressured Indonesian coal. 100 150 50 Divergence of ICI indices against Australian 0 Indices continued to widen through Q4. 200
Slide 22: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIALREVIEW FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 22
Slide 23: Sales revenue
Sales revenue +19% (YoY) Unit: US$ million 2,008 Jorong +34% (YoY) 58 Kitadin 1,690 92 +35% (YoY) 43 68 335 Bharinto +31% (YoY) 256 -2% (QoQ) Trubaindo +13% (YoY) +6% (YoY) 639 602 Jorong +47% (QoQ) Indominco +6% (YoY) 526 606 592 Kitadin 0% (QoQ) 13 10 15 27 27 Bharinto 23 108 Jorong 90 104 -4% (Qo
Slide 24: Average gross margin
Average gross margin Avg. FY17: 42% Unit : US$ Million Revenue Avg. FY18: 41% GPM* (%) 606 592 298 285 526 267 212 209 184 108 104 90 45% 43% 39% 34% 32% 46% 27 27 35% 47% 38% 23 13 10 15 49% 37% 60% 53% 35% 50% 38% 24% 10% 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 4
Slide 25: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Avg. FY17: 11.2 Unit: US$/t Avg. FY17: $41.6/t Unit: Bcm/t Avg. FY18: 11.1 Avg. FY18: $50.6/t 12.1 12.0 10.8 10.8 52.9 10.5 50.2 51.8 45.1 48.0 Non-coal 50.8 44.5 Coal 44.8 43.7 45.3 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 FUEL PRI
Slide 26: EBITDA
EBITDA Unit: US$ million +11% (YoY) 497 Others +103% (YoY) +12% (QoQ) 448 18 Jorong-59% (YoY) 2 +6% (YoY) Kitadin +99% (YoY) 8 45 6 23 Bharinto 91 +40% (YoY) 170 Others -59% (QoQ) 65 6 Jorong 137 0.2 13 132 -100% (QoQ) Trubaindo 2 Kitadin +43% (YoY) 2 35 3 9 +12% (QoQ) 124 178 16 19 25 Bharinto -30%
Slide 27: Net income
Net income Unit: US$ million +2% (YoY) -35% (QoQ) 259 Jorong 253 -24% (YoY) 2 -32 (YoY) 3 28 Kitadin 8 +257 (YoY) 95 42 67 81 62 Jorong Bharinto 8 +100 (QoQ) +59% (YoY) 3 1 6 26 13 Kitadin Trubaindo 71 +58% (QoQ) 108 13 19 +51% (YoY) Bharinto -27% (QoQ) 30 38 40 Trubaindo Other +5% (QoQ) Jorong 139
Slide 28: Balance sheet
Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) 374 368 Net D/E (times) 328 268 226 (26%) (32%) (36%) (39%) (38%) (0.26) (0.32) (0.36) (0.39) (0.38) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 DEBT POSITION Unit: US$ million 0 0 0 0 0 2014 2015 2016 2017 2018 28
Slide 29: 2019 Capital expenditure plan
2019 Capital expenditure plan Units: USD million Equipment & Machinery 60.4 Port Improvement Infrastructure 2.4 Bharinto infrastructure Port Expansion 31.2 121.9 Trubaindo infrastructure 14.4 Equipment & machinery 57.9 IPCC 11.7 Equipment & machinery 2018 Indominco Trubaindo Bharinto Jorong TRUST IT
Slide 30: Thank you
Thank you 30
Slide 31: Appendices
Nit™ Appendices
Slide 32: Income statement
Income statement Unit: US$ thousand FY18 FY17 YoY% Net Sales 2,007,630 1,689,525 19% Gross Profit 583,959 505,448 16% GPM 29% 30% SG&A (151,909) (117,362) 29% EBIT 432,050 388,086 11% EBIT Margin 22% 23% EBITDA 497,287 447,507 11% EBITDA Margin 25% 26% Net Interest Income / (Expenses) 3,560 2,594 37
Slide 33: Income statement
Income statement Unit: US$ thousand 4Q18 3Q18 4Q17 QoQ% YoY% Net Sales 592,439 606,295 525,712 -2% 13% Gross Profit 155,110 203,104 158,567 -24% -2% GPM 26% 33% 30% SG&A (43,733) (48,993) (37,580) -11% 16% EBIT 111,377 154,111 120,987 -28% -8% EBIT Margin 19% 25% 23% EBITDA 131,753 169,877 137,233 -
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% 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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