Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q2 2016 Earnings Presentation
31 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, Aug 16, 2016
Slide 1: Analyst Briefing 2Q16 Performance Results
Analyst Briefing 2Q16 Performance Results Jakarta, 16 August 2016 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 i
Slide 2: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 2
Slide 3: Highlights of 2Q16 results
Highlights of 2Q16 results Coal sales Coal sales 6.2 Mt 13.1 Mt Down 0.7 Mt Down 0.9 Mt -10% Q-Q -6% Y-Y Unit: USD Million 1Q16 2Q16 Q-Q 1H15 1H16 y-y Total Revenue 331 278 -16% 825 609 -26% Gross Profit Margin 21% 17% -4% 21% 19% -2% EBIT 38 20 -48% 97 59 -40% EBITDA 50 32 -37% 129 81 -37% Net Inco
Slide 4: Some positive signs in the market
Some positive signs in the market 2Q16 BENCHMARK PRICES China’s heavy production cuts Unit: $/t and mines shut down tighten 65.00 the supply of domestic coal. Monthly NEX High domestic price supports Newc import in 3Q. API 4 60.00 India imported more coal due to low hydro generation in 2Q but hy
Slide 5: Our planning philosophy
Our planning philosophy REGULATIONS RESERVES/ GEOLOGICAL PRODUCTION AREA • Maximize value not individual value driver • Balance short- COAL OIL PRICE MAXIMIZE DEMAND term and long- CASHFLOW / VALUE term value • Seek optimized MARGIN CAPEX value when Investment in margin improvement (productivity, co
Slide 6: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 6
Slide 7: Operational Summary 2016
Operational Summary 2016 2016 OUTPUT TARGET QUARTERLY OUTPUT TREND 2016 Target: 26.6 mt Unit: Mt East 7.1 7.0 Kalimantan 6.5 6.8 6.2 Bharinto Jorong Kitadin INDOMINCO Trubaindo 16.0 Mt Bunyut Port Indominco TRUBAINDO TD.MAYANG 6.0 Mt BHARINTO Samarinda 3Q15 3Q15 4Q15 4Q15 1Q16 1Q16 2Q16 2Q16 3Q16e 3
Slide 8: Indominco Mandiri
Indominco Mandiri SCHEMATIC QUARTERLY UPDATES 2016 target: 16.0 Mt 2Q16 production achieved as according to target. Operations Ports Total average strip ratio in 2016 is expected to be Hauling lower than 2015. Stockpile West Block ROM stockpile Crusher Mine stockyard East Block QUARTERLY OUTPUT
Slide 9: Trubaindo and Bharinto
Trubaindo and Bharinto SCHEMATIC QUARTERLY UPDATES 2016 target: TCM: 6.0 Mt Trubaindo: Mahakam BEK: 2.5 Mt River 2Q16 production higher than plan due to good Bunyut contractor mining performance. Port Bunyut port expansion: completed installation of East Kalimantan Product coal conveyor, new d
Slide 10: Kitadin Embalut and Tandung Mayang
Kitadin Embalut and Tandung Mayang SCHEMATIC QUARTERLY UPDATES 2016 target: EMB: 1.1 Mt Kitadin Embalut: 2Q16 production achieved as plan. TD. Mayang Bontang Kitadin Tandung Mayang: city IMM WB IMM EB Mine closure activities already started since 1Q16. Last mining activity was done in Sep
Slide 11: Jorong
Jorong SCHEMATIC MAJOR QUARTERLY UPDATES 2016 target: 1.0 Mt ● 2Q16 production output was slightly lower than target due to rainy days affecting mine production. ● Mine closure plan already submitted and being reviewed by government for approval. ● Remaining mine reserves will be depleted by 2018. P
Slide 12: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 12
Slide 13: Global thermal coal market trends: 2016 vs 2015
Global thermal coal market trends: 2016 vs 2015 SUPPLY TRENDS DEMAND TRENDS Major exporting countries have impacts from heavy rainfall. Supply China’s steep decline appears to have bottomed out. Growth is expected side looks to be under more control. from SE Asian economies. The coming winter is lik
Slide 14: China thermal coal market review
China thermal coal market review CHINA COMMENTS CHINA THERMAL COAL IMPORTS/EXPORTS* Unit: Mt The 276-working days policy reduces coal production significantly. 235 252 229 178 156 181 Domestic coal prices continued picking up. 137 Import Imports are likely to remain relatively high in 18 11 8
Slide 15: India thermal coal market review
India thermal coal market review INDIA COMMENTS INDIA THERMAL COAL IMPORTS* Unit: Mt 164 Strong economy and low hydro increased coal-fired 163 150 generation in Q2. However, recent monsoon arrival is 136 likely to boost up hydro power in Q3. 107 87 68 Strong domestic production with high stocks
Slide 16: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: $/t 200 2Q16 ASP eased due to general market Monthly NEX 180 weakness, JFY15/16 term effect as well as Quarterly ITM ASP product mixes 160 140 – ITM ASP was 6% down Q-o-Q 120 NEX benchmark prices remained weak 1
Slide 17: ITM Coal Sales 1H16
ITM Coal Sales 1H16 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 1H16 Malaysia Italy Others Taiwan Korea 1% 2% 3% Thailand 4% China 25% 8% ITALY KOREA USA 0.3 Mt 0.5 Mt 0.1 Mt CHINA 3.2 Mt JAPAN Philippines 9% 1.5 2.2 Mt TAIWAN 0.4 Mt 17% INDIA THAILAND 14% Japan 1.1 Mt 2.0 Mt PHILIPPINES Indonesi
Slide 18: Indicative coal sales 2016
Indicative coal sales 2016 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Uncontracted Unsold Unpriced 11% 11% 3% Indexed 9% 77% Fixed Contracted 89% TARGET SALES 2016: 27.7 Mt 18
Slide 19: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 4 FINANCIAL REVIEW 5 QUESTION & ANSWERS 19
Slide 20: Sales Revenue
Sales Revenue USD million -16% QoQ 397 -30% YoY 14 331 56 17 Jorong 52 278 15 -47% (QoQ) ; -34% (YoY) 9 40 Kitadin 12 -16% (QoQ) ; -79% (YoY) 137 30 Bharinto -26% (QoQ) ; -43% (YoY) 111 87 Trubaindo -21% (QoQ) ; -36% (YoY) Jorong Kitadin 222 198 Indominco ASP Bharinto 189 2Q16 : $44.7 /ton -4% (QoQ)
Slide 21: Average gross margin
Average gross margin 397 Units: US$M 331 222 278 197 189 Revenue GPM* (%) 137 111 87 52 57 40 19% 30 21% 17% 12% 14% 17% 15 17 19% 39% 12 14 24% 28% 26% 9 9% 16% 33% 17% 9% 27% 11% 24% 16% 2Q15 1Q16 2Q16 2Q15 1Q16 2Q16 2Q15 1Q16 2Q16 2Q15 1Q16 2Q16 2Q15 1Q16 2Q16 2Q15 1Q16 2Q16 ITM Consolidated Indo
Slide 22: 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: $44.0/t 9.5 8.6 46.4 8.6 43.4 8.1 40.4 37.8 37.5 7.1 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 FUEL PRICE TOTAL COST* Unit: US$/Ltr Avg. FY14: $1.
Slide 23: EBITDA
EBITDA USD million -37% QoQ 55 -43% YoY 2 50 4 Jorong 13 1 32 -98% (QoQ) ; -95% (YoY) 3 0.1 Kitadin 4 2 +361% (QoQ) ; -81% (YoY) Bharinto 18 1 -65% (QoQ) ; -71% (YoY) 15 3 Trubaindo -82% (QoQ) ; -78% (YoY) Jorong Indominco Kitadin 28 +23% (QoQ) ; +33%(YoY) 21 23 Bharinto Trubaindo Indominco 2Q15 1Q1
Slide 24: Net Income
Net Income USD million 23 20 -42% QoQ 3 --20% YoY 1 1 7 13 Trubaindo 11 -93% (QoQ) ; -91% (YoY) 1 3 Indominco Jorong 9 16 +49% (QoQ) ; +433%(YoY) Kitadin 11 Bharinto Trubaindo 3 Kitadin Indominco +97% (QoQ) ; -102% (YoY) (0.2) (0.4) Bharinto (7) (1) -134% (QoQ) ; -113% (YoY) Jorong 2Q15 1Q16 2Q16 -1
Slide 25: Balance Sheet
Balance Sheet KEY RATIOS CASH POSITION Net Gearing (%) Unit: US$M 461 Net D/E (times) 289 268 266 226 (46%) (32%) (26%) (32%) (31%) (0.46) (0.32) (0.26) (0.32) (0.31) 2012 2013 2014 2015 2Q16 2012 2013 2014 2015 2Q16 DEBT POSITION Unit: US$M 0 0 0 0 0 2012 2013 2014 2015 2Q16 25
Slide 26: 2016 Capital Expenditure Plan
2016 Capital Expenditure Plan Units: USD million 2.1 Indominco 8.6 6.3 Trubaindo 24.6 0.5 Bharinto 1.2 Realized up to June 2016 0.0 2016 Capex plan Kitadin 0.1 0.0 Jorong 0.1 10.3 ITM Consolidated 38.4 Note: Total capex plan including Jakarta office and PT. TRUST (Mining Contractor Business) after e
Slide 27: Thank you Question & Answers
Thank you Question & Answers 27
Slide 28: Appendices
Nim Appendices
Slide 29: Income statement
Income statement Unit: US$ thousand 2Q16 1Q16 QoQ% Net Sales 278,371 331,105 -16% Gross Profit 46,748 69,664 -33% GPM 17% 21% SG&A (26,691) (31,213) EBIT 20,057 38,451 -48% EBIT Margin 7% 12% EBITDA 31,603 49,773 -37% EBITDA Margin 11% 15% Net Interest Income / (Expenses) 343 278 Derivative Gain / (
Slide 30: Income statement
Income statement Unit: US$ thousand 1H16 1H15 YoY% Net Sales 609,476 824,527 -26% Gross Profit 116,412 174,244 -33% GPM 19% 21% SG&A (57,904) (77,217) EBIT 58,508 97,027 -40% EBIT Margin 10% 12% EBITDA 81,376 129,277 -37% EBITDA Margin 13% 16% Net Interest Income / (Expenses) 621 1,939 FX Gain / (Lo
Slide 31: ITM structure
ITM structure Banpu 65.14% (as of 30 Jun 2016) 34.86% INDONESIAN STOCK EXCHANGE IPO 18th Dec 2007 Public ITMG PT Indo Tambangraya Megah Tbk. 99.99% 99.99% 99.00% 99.99% 99.00% 99.99% 99.99% Indominco Trubaindo Bharinto Kitadin Jorong ITMI IBU PT Indominco PT Trubaindo Coal PT Bharinto PT Kitadin- PT
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