Banpu Public Co. Ltd. · SET:BANPU
Banpu Public — Q3 2002 Earnings Presentation
29 slides from Banpu Public's earnings presentation, Nov 13, 2002
Slide 1: Investor Update
Investor Update 13 November 2002 Rawi Corsiri COO Somruedee Somphong CFO www.banpu.co.th
Slide 2: Agenda
Agenda Quarterly overview Results highlight Coal industry snapshot Business scenario 2 www.banpu.co.th
Slide 3: Quarterly overview
Quarterly overview Coal Business - Spot coal prices bottomed-out in 3Q and started to show a strong recovery in 4Q - Cost reduction programs have been done in mining process at Indominco & Kitadin - Successful implementation of Centralization and Marketing Logistics - Achieved shipments to European
Slide 4: Coal tonnage sales
Coal tonnage sales 4,000 International sales - Indocoal International sales - Jorong A significant increase in 3,500 10% Thai market sales volume sales in 3Q 3,000 mainly from Thai market 1,815 and International sales Unit in '0 0 0 tonnes 2,500 1,870 from Jorong 2,000 590 Tonnage sales from 513 1,5
Slide 5: Sales revenue
Sales revenue 3,500 International sales - Indocoal Steady sales revenue International sales - Jorong 1% 3,000 Thai market sales despite a sharp decline in coal prices 2,500 Significant increase on Unit in '000 Baht 1,643 2,000 1,884 Thai market sales due to temporarily domestic 1,500 supply shortage
Slide 6: Market share - Thailand
Market share - Thailand 3Q02 9-month 2002 Others Banpu Lanna Banpu G Prem Jee 21% 52% 12% 44% 9% Siam Siam Cement Cement 7% 6% SBC 6% G Prem Jee Marubeni 9% Lanna 3% 11% Others 20% Banpu’s sales in Thailand achieved YTD, Banpu shared 44% of the 52% market share homeland market Source: Banpu Note: To
Slide 7: Agenda: Results highlight
Agenda Quarterly overview Results highlight Coal industry snapshot Business scenario 7 www.banpu.co.th
Slide 8: Quarterly results
Quarterly results Year-end Dec (Btm) 3 Q0 2 2 Q0 2 Despite a strong growth in Revenues 3,048 3,078 tonnage sales, 3Q revenues Gross profit 791 847 SG&A (373) (333) were steady due to the sharp Royalty (249) (251) decline in coal price Other income 28 14 EBIT 196 277 Coal price also impacts gross Int
Slide 9: 9-month results
9-month results Year-end Dec (Btm) 9 -mo0 2 9 -mo0 1 Revenues 7,742 4,136 Indocoal consolidation Gross profit 2,169 852 enhanced Banpu’s SG&A (988) (894) revenues by 71% y-y Royalty (612) (79) Other income 165 162 Gross profit margin EBIT 734 40 significantly improved post- Interest expense (528) (3
Slide 10: Operational breakdown
Operational breakdown YTD 3Q02 2Q02 1Q02 Tonnage sales ('000 tonnes) Thai market 3,420 1,356 1,025 1,038 - Domestic 2,297 849 690 757 - Import 1,123 508 335 281 Jorong 1,411 513 441 458 Indocoal 4,275 1,815 1,870 590 Sales revenue (Btm) Thai market 2,490 1,015 746 729 - Domestic 1,090 410 342 338 -
Slide 11: Balance sheet
Balance sheet 1.4 1.2 Historical net D/E 1.0 1.2 1.1 1.0 0.8 1.0 0.8 0.6 0.4 0.2 0.0 Jul-Sep, 01 Oct-Dec, 01 Jan-Mar, 02 Apr-Jun, 02 Jul-Sep, 02 (Btm) Jul-Sep, 01 Oct-Dec, 01 Jan-Mar, 02 Apr-Jun, 02 Jul-Sep, 02 Total assets 16,397 15,799 23,291 23,310 23,584 Total liabilities 8,980 8,988 15,246 14,3
Slide 12: Agenda: Coal industry snapshot
Agenda Quarterly overview Results highlight Coal industry snapshot Business scenario 12 www.banpu.co.th
Slide 13: Banpu's position in Indonesia
Banpu’s position in Indonesia Top-ten producers (mtpa) 2002E Sharing Adaro Indonesia 20.5 19% Amongst key players in Kaltim Prima Coal 17.0 16% Indonesia, Banpu ranked Kideco Jaya Agung 11.5 11% 4th after Adaro, KPC, and Banpu 11.2 11% Kideco Bukit Asam 10.5 10% Banpu’s productions of BHP Aruthmin 1
Slide 14: Thermal coal spot price
Thermal coal spot price Kcal/kg Current 3Q 2Q 1Q Australia Gladstone 6500 24.50-25.50 23.69-25.34 26.62-28.15 28.51-29.41 Newcastle 6300 24.00-25.00 22.17-23.63 25.70-26.99 26.78-28.68 China - Qinghuadao 6200 25.50-26.80 23.47-24.47 26.74-27.78 28.77-29.77 Indonesia Kalimantan 6300 23.50-24.50 21.89
Slide 15: Demand outlook – Asia (Pacific Rim)
Demand outlook – Asia (Pacific Rim) 300 Demand of thermal coal is 4.4% CAGR expected to increase at a 250 steady pace driven by Pacific Rim countries of 4% pa in next 200 10-yr* Unit in million tonnes Taiwan Assumptions used are 150 conservative given: S Korea Average GDP growth of 1.0-2.0% 100 HK E
Slide 16: Demand outlook – Other Asia
Demand outlook – Other Asia China: A record imported of 5.6mt in 1H02 compared with 0.8mt during the same period last year Malaysia: A rapid demand driven by increased coal-fired power plants from 700MW in 2001 to 7,300MW in 2006 India: High demand frustrated by three obstacles: import levies, high
Slide 17: Supply outlook – Asian exporters
Supply outlook – Asian exporters 300 1.8% CAGR Under Hill’s base case scenario, thermal coal exports from Asian 250 producers will grow at 2% pa in the next 10-yr 200 Unit in million tonnes Indonesia Indonesia: No stagnation on productions and exports despite 150 China the country’s internal problem
Slide 18: Agenda: Business scenario
Agenda Quarterly overview Results highlight Coal industry snapshot Business scenario 18 www.banpu.co.th
Slide 19: Ramp-up capacity production of Indocoal
Ramp-up capacity production of Indocoal (MT) 7 30% Post acquisition 6 25% 5 20% 4 15% 3 10% 2 1 5% 0 0% 1999 2000 2001 2002 2003 2004 2005 2006 Indominco Kitadin Trubaindo Overall GPM 19 www.banpu.co.th
Slide 20: Implementation of cost reduction program
Implementation of cost reduction program PIT 1 TWIN BOOM STACKER MINE STOCKYARD Crusher System 2 Cross Belt Sample SHIP LOADER Coal Transport to Port Truck Dump Km 34 Km 5 6. 3 r yo Result Quality ve C25-1 CV : 6000 - 6700kcal on C25-2 C25-3 C Ash: 5.0% Ts : 0.8% C25-4 PORT STOCKYARD C24-1 C24-2 IND
Slide 21: Other issues
Other issues Imposition of Japan coal tax The Bali Blast News on possible delay of BLCP 21 www.banpu.co.th
Slide 22: Upcoming events
Upcoming events Independent review of Banpu’s reserves figures by international technical consulting firm Secure additional investment insurance policy of Indonesian assets worth US$55m 22 www.banpu.co.th
Slide 23: Question & Answer
Question & Answer
Slide 24: Appendices
Appendices Planned CAPEX 2002-06 Debt portfolio Summary of Indocoal financials Summary of TECO’s financials BLCP development 24 www.banpu.co.th
Slide 25: Planned Capex (Maintained)
Planned Capex (Maintained) (US$m) 2002 2003E 2004E 2005E 2006E Coal Thailand __ 1 2 1 __ Jorong 12 3 6 1 2 Indocoal 11 11 10 11 9 Power 11 22 __ 21 49 Total 34 37 18 34 60 25 www.banpu.co.th
Slide 26: Debt portfolio: as at September 2002
Debt portfolio: as at September 2002 Debentures BANPU Indocoal ECD #2 BANPU #3 BANPU #4 BANPU #5 BANPU #6 CD O/S amount US$3.1m Bt937.5m Bt750m Bt2,500m Bt500m US$30m Maturity date Apr-03 Nov-02 Nov-04 Apr-06 Apr-08 2004 Interest rate 2.75% 8.125% MLR-0.25% 5.80% MLR-0.375% 2.75% Rating - - - "A-" (
Slide 27: Indocoal's financials
Indocoal’s financials Y/E Dec (Btm) 3 Q0 2 2Q02 Revenues 1,932 1,911 Cost of sales (1,439) (1,420) SG&A (277) (120) Royalty (183) (193) Interest expenses (68) (84) Net operating profit (3 5 ) 94 FX translation (149) 572 Mining property (47) 57 Minority interest 0 0 Income tax 38 (88) Reported net pr
Slide 28: TECO's financials
TECO’s financials Y/E Dec (Btm) 3Q02 2Q02 Revenues 2,376 1,767 Cost of sales (1,723) (1,423) SG&A (33) (34) Swap cost (123) (112) Interest expenses (113) (118) Net operating profit 384 78 FX translation (438) 481 Reported net profit (54) 559 28 www.banpu.co.th
Slide 29: BLCP development
BLCP development 1,434MW coal-fired power plant (50% held by Banpu and CLP Powergen Southeast Asia, 47 km transmission line) 25-year PPA with EGAT, the national utility Environmental approvals in place for the industrial location 25-year Coal Supply agreement with coal source portfolio Financial clo