Pt Indika Energy Tbk · IDX:INDY
Pt Indika Energy Tbk — 9M24 Earnings Presentation
65 slides from Pt Indika Energy Tbk's earnings presentation, October 2024
Slide 1: Company Update 9M24
Company Update 9M24 PT Indika Energy Tbk. October 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 Year To Date Summary P&L 3Q24 3Q23 YoY 2Q24 QoQ 9M24 9M23 YTD YoY Revenues 587.4 625.5 -6.1% 629.4 -6.7% 1,784.2 2,298.7 -22.4% COGS (517.6) (535.7) -3.4% (523.5) -1.1% (1,514.8) (1,859.0) -18.5% Gross Profit 69.9 89.8 -22.2% 106.0 -34.0% 269.
Slide 4: Corporate Guidance - 2024
Corporate Guidance - 2024 2024 Budget 9M24 2024 Operational Data Guidance 9M24 9M23 % CAPEX (US$M) (US$M) Budget Kideco 16.4 9.1 55.5% KIDECO Indika Resources - 2.7 100.0% Production (MT) 29.4 23.4 22.3 5.2% Xapiens 3.2 0.7 21.9% Interport 6.1 2.7 44.3% Strip Ratio (x) 5.7 5.7 5.6 1.8% Indika Nature
Slide 5: Indika Energy – 9M24 Revenue Contribution
Indika Energy – 9M24 Revenue Contribution Revenue 9M24 : US$1,784.2m Revenue 9M23 : US$2,298.7m Non-coal Non-coal 10% 13% 2% 2% 8% 9% 2% 3% 2% Kideco 1% 8% 7% MUTU Coal Trading 1% 5,8% Interport - Cotrans 9% Interport Tripatra 72% 13,6% Others 77% 78,1% 7,1% Coal Coal 87% 90% 5
Slide 6: 9M24 Business Highlights – Revenue Breakdown
9M24 Business Highlights – Revenue Breakdown 9M24 9M23 Subsidiaries YoY Chg Remarks (US$ mn) (US$ mn) ASP ▼ 20% to US$60.6/ton in 9M24, Kideco -17.7% Sales Volume ▲ 3% to 23.2MT in 9M24 1,404.9 1,706.2 ICI-4: US$64.3/ton in 9M24 vs US$64.3/ton in 9M23) Coal Trading: ASP Coal Trading ▼ 28% to US$50.5
Slide 7: 9M24 Business Highlights- Gross Profit/ Margin
9M24 Business Highlights- Gross Profit/ Margin 9M24 9M23 YoY Subsidiaries Remarks (US$ mn) (US$ mn) Change Gross Profit -38.7% 269.4 439.8 Gross Margin (%) 15.1% 19.1% Kideco -33.5% Cash cost inc Royalty US$50.6/ton in 9M24 217.5 327.0 Indika Resources -91.5% No more contribution of MUTU since Mar 2
Slide 8: Strong Cash Position supports sound Balance Sheet
Strong Cash Position supports sound Balance Sheet Total Consolidated Cash Total Consolidated Debt US$m US$m 898 1,257 863 1,158 21 Other Loans 777 1,081 1,074 21 20 23 696 234 224 580 Bank Loans 1) Cash & 564 Other Financial 294 294 Notes 2024 assets 0 202 Notes 2025 224 534 534 455 Notes 2029 350 D
Slide 9: Indika Energy – Sound Balance Sheet
Indika Energy – Sound Balance Sheet Cash Breakdown by Subsidiaries LTM Free Cash Flow US$ million US$ million HoldCo & Others Kideco Tripatra 800 725 700 42 597 600 63 500 44 36 822 216 450 400 43 290 300 188 176 200 158 645 84 392 473 393 492 100 0 2020 2021 2022 2023 9M24 2020 2021 2022 2023 9M24
Slide 10: Thermal Coal Price
Thermal Coal Price USD/ton 450 421 400 373 381 350 300 264 242 250 200 184 168 158 149 136 136 141 150 126 109 86 93 82 89 82 91 77 100 69 66 73 64 59 57 57 53 54 52 55 52 50 43 36 36 35 45 85 91 89 94 87 41 65 71 63 63 77 62 65 34 27 31 52 57 0 24 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3
Slide 11: Indonesia Coal Outlook
Indonesia Coal Outlook • The government revised domestic production target for 2024 from initially 710MT to 922MT in 2024, or 19% increase from realized output of 775MT in 2023. • The government maintains DMO requirement of 25% from production or 231 MT in 2024, with price capped at US$70/ton based
Slide 12: 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 13: Our Diversified Business Portfolio
Our Diversified Business Portfolio
Slide 14: 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 15: Diversified Revenue Streams from Disciplined Investments and Partnerships
Diversified Revenue Streams from Disciplined Investments and Partnerships 15
Slide 16: 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 17: 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 18: 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 19: IMG launched its brand ALVA with its own manufacturing
IMG launched its brand “ALVA” with its own manufacturing facilities and builds experience center Manufacturing Facilities ALVA Experience Center My ALVA App Key Highlights Seamless interconnection experience with enhanced Fully operational manufacturing facilities located in 1st 2W experience cent
Slide 20: IMG already introduced 5 ALVA products
IMG already introduced 5 ALVA products Products ALVA One ALVA One XP Launched in 2022 Launched in 2023 ALVA Cervo ALVA Cervo Boost Charge ALVA Cervo Q Launched in 2023 Launched in 2024 Launched in 2024 20
Slide 21: Launched a new model in Mid segment ALVA N3 in GIIAS 2024
Launched a new model in Mid segment “ALVA N3” in GIIAS 2024 • ALVA introduced a new model in mid-segment called ALVA N3 • The price starts from Rp 11.5 million (without battery, after govt's subsidy), competitive compared to market • N3 already adopts boost-charge technology in its battery, capable
Slide 22: Developing businesses to operate 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 23: 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 24: 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 is partnering with governments and public transport The fleet-as-a-service business model enables organizations to support trials from Medan to Surabaya gov
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: Diversification Investments – Minerals
Diversification Investments – Minerals Bauxite Mine • 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 Mekko – Bauxite Volume kDMT ASP (US$/t) 250.0 24.0 23.5 23.5 200.0 23.0 191.5 23.0
Slide 37: 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 38: Diversifying Beyond Coal: Disposals
Diversifying Beyond Coal: Disposals Continued Divestments of Coal and Coal-related Businesses Transaction Date Initiative Description Indicative impact Proceeds – Sale of all shares owned by IIR and ICI in PT Multi Tambangjaya Utama (MUTU) and marketing right held by ICI Divestment of MUTU Feb-2024
Slide 39: Divestment - Reducing Exposure in Coal Related Business
Divestment - Reducing Exposure in Coal Related Business Completed– PT Multi Tambangjaya Utama (MUTU) 39
Slide 40: 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 41: ESG: Our ESG Ratings have improved
ESG: Our ESG Ratings have improved, reflecting our initiatives and commitment Risk Rating has declined from AAA 50 Severe to High Last update: 21 Feb 2024 AA Score: BBB 45 44.2 A 40 38.1 35 34.5 34.9 BBB BBB BBB BBB BBB 30 25 updated: 31 July 2023 BB BB BB 20 B 15 10 CCC 5 0 Jan-18Dec-18 Jan-19 Dec-
Slide 42: ESG Targets Revised to Become Even More Ambitious
ESG Targets Revised to Become Even More Ambitious Revised Key Targets Indika Energy 2025 and 2030 ESG Targets (Relative to 2020 baseline) 2020 9M24 2025 2030 • % reduction of Emissions Scope1&2: 1,203ktCO2eq Scope1&2: 683ktCO2eq 25% 33% 20% Scope 1: 0.031 TonCO2eq/ ton • % reduction of Emissions Int
Slide 43: IMPACT: Indika Energy Mangrove Program in Action
FLAGSHIP PROGRAMS IMPACT: Indika Energy Mangrove Program in Action IMPACT 2024 Planting 165,000 mangrove seeds on 115 hectares and replanting 10,000 mangrove trees on 35 hectares of land. As initially planned, planting activities are projected for Lori, Sungai Langir, Tajur, and Pasir Mayang, with p
Slide 44: CANTING: Cegah dan Tangani Stunting Berkelanjutan
FLAGSHIP PROGRAMS CANTING: Cegah dan Tangani Stunting Berkelanjutan Q3 intervention Training programs, SIAGA Pregnant mother health Growth tracking for classes, cadre upskilling, monitoring, lactation class, children under two years and manual pocketbook and doctor goes to old community Current prog
Slide 45: CANTING: Cegah dan Tangani Stunting Berkelanjutan
FLAGSHIP PROGRAMS CANTING: Cegah dan Tangani Stunting Berkelanjutan Align with our CANTING Berkelanjutan initiatives, our sub-holdings such as Tripatra, Interport and Masmindo also initiate interventions to address stunting within their operations and surrounding areas. Interport stunting interventi
Slide 46: ESG Initiatives
ESG Initiatives Kideco Kideco is collaborating with the United Nations Development Program (UNDP) and GRI to provide human rights training and is in the process of developing related policies. Kideco is also enhancing its diversity and inclusion practices Program and through the DREAMS program, whic
Slide 47: Company's 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
INDIKA_| NET-ZERO|% Appendix 49
Slide 50: Indika Energy, Indonesia's a diversified investment company
Indika Energy, Indonesia’s a diversified investment company PT Indika Energy Tbk. 1 ▪ Energy Resources 2 ▪ Energy Services 4 Logistic & Infrastructure 6 • Green Businesses Renewable Energy - Established since 2018 - Established since 2021 - Established since 1991 - Integrated logistic services - Joi
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 1,784.2 1800 552.0 312.2 400 350 900 269.5 173.3 136.6 71.9 0 0 0 2020 2021 2022 2023 9M24 202
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 1,600.0 40.0% 1409.8 8 60% 1,400.0 35.0% 6.2 33.5% 48.1% 1,200.0 31.8% 30.0% 6 50% 4
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 obtains IUPK until 2033
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 according to statutory provisions.
Slide 55: 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 1,404.9 1,249.5 540 540 411.4 800 305.7 270 217.5 270 177.1 170.4 138.3 0 0 0 2020 2021 2022 2023 9M24 2020 2
Slide 56: Kideco's Operational Highlights
Kideco’s Operational Highlights Cash Cost Breakdown Coal Production (mn ton) Coal Sales (mn ton) O/H Labor & Others 40 40 8.2% 35.8 34.8 35.8 34.8 0.5% Freight 35 33.0 35 33.0 5.1% 30.1 30.5 30 30 Material 25 23.4 25 23.2 9.6% 20 20 CM & Rental 15 15 48.6% 10 10 5 5 Gov. Royalty 27.9% 0 0 2020 2021
Slide 57: Kideco's Operational Highlights
Kideco’s Operational Highlights YTD Summary P&L (US$mn) 3Q24 3Q23 YoY 2Q24 QoQ 9M24 9M23 YoY Sales 478.8 471.6 1.5% 473.5 1.1% 1404.9 1706.2 -17.7% Gross profit 54.9 52.6 4.5% 92.2 -40.4% 217.5 327.1 -33.5% Operating profit 50.8 37.7 34.7% 67.2 -24.5% 170.4 267.8 -36.4% Net income 28.7 25.1 14.1% 52
Slide 58: 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 17.2 8.9 20 10 5.2 301.0 306.2 1.5 300.0 10 0 231.8 228.6 0 -10 200.0 157.3 -10 -7.4 -20 -20 -30 100.0 -30.6 -30 -40 -31.4 0.0 -40 -50 -43.5 2020 2021 2022 2023 9M24 2020 2021 2022 2
Slide 59: Tripatra's Financial Highlights (2)
Tripatra’s Financial Highlights (2) * Revenues Breakdown by Value 9M24: US$157.3 mn 9M23: US$185.1 mn TPE 16.1% TPE 19.1% TPEC TPEC 80.9% 83.9% Cost Structure 9M24: US$140.1 mn 9M23: US$164.5 mn TPE TPE 17.1% 14.7% TPEC 85.3% TPEC 82.9% 59
Slide 60: Tripatra Backlog
Tripatra Backlog New Contract/ Remaining Contract Revenue Remaining Contract Adjustment Value Descriptions Value Recognition Value in 2024 Per 31 Dec 2023 Per 30 Sep. 2024 Per 30 Sep. 2024 Tripatra Tripatra Engineers & Constructors 184.1 143.6 127.2 200.5 Tripatra Engineering 28.6 14.0 30.1 12.5 Tot
Slide 61: 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 74.0 300 200 167.9 190.5 133.7 200 138.9 50 100 22.6 100 5.2 0 0 0 2020 2021 2022 2023
Slide 62: Interport's Financial Highlights
Interport’s Financial Highlights Revenues (USD mn) Revenue Breakdown Gross Profit (USD mn) Others, KGTE 35 32.4 140 5.3% 21.0% 114.6 30 120 25 22.3 100 85.2 20 80 IBP 7.8% 14.2 60 15 34.7 10 8.9 40 29.1 7.0 20 15.5 5 Cotrans 65.8% 0 0 2020 2021 2022 2023 9M24 2020 2021 2022 2023 9M24 Net Profit (USD
Slide 63: Notes Outstanding
Notes Outstanding Ba 3 Stable Outlook (as of April 2024) The Senior Notes are rated: BB - / Stable Outlook International Ratings (as of April 2024) Indika Energy Capital IV Pte. Ltd. PT Indika Energy Tbk. USD224 mn USD 455 mn 8.250% 5-year Senior Notes 8.75% 5-year Senior Notes Reg S / 144A Reg S /
Slide 64: Strong Focus on and Commitment to ESG Initiatives
Strong Focus on and Commitment to ESG Initiatives Environmental Social Responsibility Governance ✓ Comply with all Indonesian environmental laws, ✓ Focus on supporting long-term economic growth and improving the quality of life in regions of operation ✓ Continuously implementing and improving good r
Slide 65: Thank You
INDIKA_ | NET-ZERO|% THANK YOU 65