Pt Indo Tambangraya Megah Tbk · IDX:ITMG
Pt Indo Tambangraya Megah Tbk — Q1 2019 Earnings Presentation
31 slides from Pt Indo Tambangraya Megah Tbk's earnings presentation, May 14, 2019
Slide 1: Analyst Briefing 1Q19 Performance Results
ANALYST BRIEFING 1Q19 PERFORMANCE RESULTS Jakarta, 14th May 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 1Q19 results
Highlights of 1Q19 results Coal Sales: 6.0 Mt Down 1.4 Mt Up 1.6 Mt -19% Q-Q +36% y-y Unit: US$ million 1Q19 4Q18 1Q18 Q-Q y-y Total Revenue 453 592 378 -24% +20% Gross Profit Margin 21% 26% 29% -5% -8% EBIT 57 111 88 -49% -35% EBITDA 72 132 99 -45% -27% Net Income 39 62 58 -37% -33% ASP (USD/ton) $
Slide 4: 1Q19 highlights
1Q19 highlights A premium coal producer with 5.8 Mt 6.0 Mt $453 M growing business segments along Coal production Coal sales Solid revenue the coal value chain volume; better volume; +1.6 Mt growth than expected on a y-y basis +20% y-y Operational 6.0 Mt 5.8 Mt 13.2 x Coal sales volume, Coal product
Slide 5: ITM Digitalization Transformation
ITM Digitalization Transformation 1. Business – Impact Driven Digital Solutions Business-led with clear impact targets for productivity or growth Customer-back solutions linked to key business processes and use cases 2. Technology – Innovative Technology Architecture ITM Digital Multi-speed de
Slide 6: Transformation Supported By Digital Capabilities Center
Transformation Supported By Digital Capabilities Center Build awareness of applicable technologies by engaging and exciting external partners Incubate and develop new Build capabilities, and digital use cases by fostering establish digital ways of a mindset of innovation, and working by setting up a
Slide 7: Annual General Meeting of Shareholders
Annual General Meeting of Shareholders AGMS 2019 HIGHLIGHTS BOARD OF COMMISIONERS Prof. Djisman Simandjuntak Somruedee Chaimongkol Somsak Sithinamsuwan President Commissioner & Commissioner Commissioner Independent Fredi Chandra Prof. Djoko Wintoro, PhD Mahyudin Lubis Commissioner Independent Commis
Slide 8: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 8
Slide 9: Operational Summary 2019
Operational Summary 2019 2019 TARGET: 23.6 Mt* OUTPUT TREND East Unit: Mt Kalimantan 6.4 6.4 5.8 5.6 INDOMINCO 5.2 Bharinto 12.5 Mt 4.1 Jorong Kitadin Bunyut Port Trubaindo TRUBAINDO 4.9 Mt EMBALUT 1.4 Mt Indominco BHARINTO Samarinda 3.1 Mt Balikpapan 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19e East 1Q18 2Q18 3Q
Slide 10: Indominco Mandiri
Indominco Mandiri SCHEMATIC OUTPUT TREND 2019 target: 12.5 Mt Operations Unit: Mt Ports 3.9 Hauling 3.7 0.5 3.3 3.2 Stockpile 2.8 0.4 West Block 0.5 0.5 ROM Crusher 2.2 0.1 W Block Mine stockpile stockyard 0.1 3.3 3.4 East Block 2.7 2.7 2.7 E. Block 2.1 Bontang City 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19e 35
Slide 11: Melak group – Trubaindo and Bharinto
Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND 2019 target: TCM 4.9 Mt Unit: Mt Mahakam BEK 3.1 Mt River 2.1 2.0 Bunyut 1.8 1.8 Port 1.7 1.5 0.7 0.7 0.7 0.7 0.7 Bharinto East Kalimantan Product coal conveyor, stacking, 0.5 stockpile 40km 1.4 1.3 1.0 1.1 1.1 1.1 Trubaindo Mine to port Op
Slide 12: Kitadin Embalut and Tandung Mayang
Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND 2019 target: EMB 1.4 Mt Unit: Mt 0.3 0.3 0.3 0.3 0.3 TD. Mayang 0.2 Bontang city IMM WB IMM EB ROM Bontang stockpile Port 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19e Embalut S/R (bcm/t) 5km Mine to port - Embalut : 11.9x 11.1x 11.2x 9.5x 9.8x 12.8x Embalu
Slide 13: Jorong
Jorong SCHEMATIC OUTPUT TREND 2019 target: 1.7 Mt Unit: Mt 0.3 0.3 0.3 0.3 0.3 0.4 Pelaihari Haul road 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19e S/R (bcm/t) : 6.1x 6.1x 6.5x 6.5x 10.5x 8.1x 20km COMMENTS Jorong 1Q19 production achieved according to target. Coal Operations terminal Strip ratio in 1Q19 highe
Slide 14: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 14
Slide 15: Global coal demand trends: 2019 vs 2018
Global coal demand trends: 2019 vs 2018 CHANGE COMMENTS 2019-18 (Mt) Mild weather and slow economic growth damper demand. CHINA -15 Domestic coal production improves. Import restriction will persist to protect domestic coal industry. Strong economic growth, electrification and insufficient d
Slide 16: Global coal supply trends: 2019 vs 2018
Global coal supply trends: 2019 vs 2018 CHANGE COMMENTS 2019-18 (Mt) Almost all producers plan to increase production but mostly LCV coal. INDONESIA +7 Government regulations such as DMO remain challenge. Export growth will be limited by weak global demand. Potential increase from Mt.Pleasan
Slide 17: ITM coal sales 1Q19
ITM coal sales 1Q19 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 1Q19 1.9 Mt 1.1 Mt Hongkong Taiwan Malaysia 1% Korea 2% 0.2 Mt 3% 4% Thailand 0.5 Mt 6% China KOREA 31% 0.5 Mt Philippines CHINA 7% 0.1 Mt 0.2 Mt 0.4 Mt HK 1.5 JAPAN Bangladesh 0.1 Mt 8% INDIA TAIWAN 0.4 Mt MALAYSIA 0.6 Mt India BANG
Slide 18: Indicative coal sales 2019
Indicative coal sales 2019 COAL SALES CONTRACT AND PRICING STATUS Contract Status Price Status Unsold Uncontracted 22% 22% 46% Fixed Contracted 78% Contracted 32% Indexed TARGET SALES 2019: 26.5 Mt 18
Slide 19: ITM ASPs vs thermal coal benchmark prices
ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: US$/ton Monthly NEX 1Q19 ASP weaker for both ITM, and CEY 200 150 shadow the global coal price movement: 150 100 50 ITM ASP: US$71.1/t* (-5% QoQ) 130 0 NEX (May 10, 2019)**: US$86.4/t 2007 2008 2009 2010 2011
Slide 20: Agenda
Agenda 1 INTRODUCTION 2 OPERATIONAL OPERATIONAL REVIEW 33 COMMERCIAL REVIEW 424 FINANCIALREVIEW FINANCIAL REVIEW 425 5 QUESTION & ANSWERS 20
Slide 21: Sales revenue
Sales revenue Unit: US$ million 592 -23% QoQ +20% YoY 57 15 27 453 378 104 56 Others -3% (QoQ) ; +89% (YoY) 29 21 Jorong +38% (QoQ) ; +37% (YoY) 15 15 Kitadin -44% (QoQ) ; -8% (YoY) 16 61 184 76 Bharinto -27% (QoQ) ; +24% (YoY) 117 117 Trubaindo -36% (QoQ) ; +1% (YoY) Others Jorong Kitadin 297 Indom
Slide 22: Average gross margin
Average gross margin Avg. FY18: 29% Unit : US$ Million Revenue GPM (%) 592 297 453 378 233 221 184 117 117 104 76 61 27 26% 38% 16 29% 15 15 15 21 21% 16% 31% 31% 20% 13% 32% 33% 31% 42% 59% 32% 17% 8% (11%) 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 In
Slide 23: Cost analysis
Cost analysis WEIGHTED AVERAGE STRIP RATIO PRODUCTION COST Avg. FY18: 11.1 Unit: US$/t Avg. FY18: $50.6/t Unit: Bcm/t 13.2 55.1 12.0 52.9 50.2 51.8 10.8 10.8 48.0 Non-coal 10.5 50.8 49.0 Coal 44.5 43.7 45.3 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Note: Based on production volume FUEL PRICE
Slide 24: EBITDA
EBITDA Unit: US$ million -45% QoQ -27% YoY 128 16 102 1 25 7 72 Kitadin -71% (QoQ) 16 4 Bharinto -24% (QoQ) Others 60 19 Jorong 32 Trubaindo Kitadin 30 -50% (QoQ) Bharinto 42 Indominco Trubaindo 34 -33% (QoQ) 23 Indominco Jorong (4) (4) n.m (QoQ) (2) Others -147% (QoQ) 1Q18 4Q18 1Q19 Note : Total EB
Slide 25: Net income
Net income Unit: US$ million 62 -37% QoQ -33% YoY 1 58 13 1 4 19 39 Kitadin 12 -70% (QoQ) 4 Bharinto -33% (QoQ) Others 18 13 Jorong 40 Trubaindo Kitadin -56% (QoQ) Bharinto 17 Indominco Trubaindo 27 +16% (QoQ) Indominco 10 11 Jorong (4) (4) n.m (QoQ) (2) Others -45% (QoQ) 1Q18 4Q18 1Q19 Note : Total
Slide 26: Balance sheet
Balance sheet CASH POSITION KEY RATIOS Unit: US$ million Net Gearing (%) 392 374 368 Net D/E (times) 328 268 (32%) (36%) (39%) (38%) (44%) (0.32) (0.36) (0.39) (0.38) (0.44) 2015 2016 2017 2018 1Q19 2015 2016 2017 2018 1Q19 DEBT POSITION Unit: US$ million 15 0 0 0 0 2015 2016 2017 2018 1Q19 26
Slide 27: 2019 Capital expenditure plan
2019 Capital expenditure plan Units: US$ million 2.3 Indominco 11.7 2.2 Trubaindo Realized up to Mar 2019 14.4 2019 Capex plan 2.3 Bharinto 31.2 0.5 Jorong 2.4 4.5 TRUST 60.4 11.8 ITM Consolidated 121.9 Note: Total capex plan including Jakarta office after elimination 27
Slide 28: Thank you
Thank you 28
Slide 29: Appendices
Nit™ Appendices
Slide 30: Income statement
Income statement Unit: US$ thousand 1Q19 4Q18 1Q18 QoQ% YoY% Net Sales 453,025 592,439 378,247 -24% 20% Gross Profit 93,612 155,110 111,053 -40% -16% GPM 21% 26% 29% SG&A (36,520) (43,733) (23,350) -16% 56% EBIT 57,092 111,377 87,703 -49% -35% EBIT Margin 13% 19% 23% EBITDA 72,463 131,753 99,486 -45
Slide 31: 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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