Bayan 3Q Overview

Transcription

1 0

2 Bayan 3Q Overview Bayan continued to grow in the 3Q18 and exceeded Budget in terms of overburden removal and coal production which ensures 2018 will be a record year for Bayan. Sales volumes met Budget, however were lower than the 2Q18 as the dryer weather conditions experienced at Tabang reduced water levels and barging efficiency. Management anticipate that with the scheduled start of the rainy season in 4Q18 this will not continue. Due to reduced sales volumes increasing certain costs, combined with increased barging costs and certain additional one-off costs, average cash cost in the 3Q18 exceeded the Budget and 2Q18 levels. However costs are anticipated to reduce in 4Q18 and YTD 3Q18 cash costs are in line with Budget. Overall EBITDA margin, Gross Profit margin and Net Profit margin remain strong and industry leading. YTD 3Q18 financial result already exceed full year 2017 result. 1

3 Bayan s Growth Continues Q17 3Q18 YTD 3Q17 YTD 3Q18 Financial Performance (In Million USD) Revenue 1, ,242.4 Gross Profit EBITDA Net Profit After Tax Financial Ratios Gross Profit Margin (%) 51.9% 54.8% 49.1% 52.3% 52.7% EBITDA Margin (%) 45.4% 48.7% 41.9% 46.2% 46.1% Net Profit Margin (%) 31.7% 33.6% 29.8% 31.8% 32.9% Net Debt to EBITDA (x) Net Cash 0.8 Net Cash Operational Statistics Overburden Removal (MBC M) Strip Ratio (x) Coal Production (MT) Sales Volume (MT)

4 % Million Tonnes One of the Quickest Growing Coal Producers 1H 2018 Production Bayan is currently in the top five coal producers in Indonesia with a view to moving into the top 3 within the next few years. - BUMI Adaro Indika Bayan PTBA ITMG Source: Company Filings, Company Data CAGR (Production) GEMS Bayan PTBA Bumi Adaro Indika ITMG (2.7) (7.4) (8.8) 2017 completed the initial phase of infrastructure to allow Bayan to continue to be one of the quickest growing producers. 1H 2018 results show the continued growth. Source: Company Fillings. Company Data 3

5 Total Cash Cost (US$/t Nominal) One of the Lowest Cost Producers in Indonesia Global Cost Competitive Positioning Source: Wood Mackenzie, Company Data 1H 2018 Strip Ratio Competitors (Sales Volume) Seaborne Export Supply (MT) RoW Indonesia Australia Bayan Tabang is independently rated as one of the worlds lowest cost energy-adjusted producers. Bara Tabang has large reserves and a very low Life of Mine stripping ratio (less than 3:1). Combined with the other mining concessions the average stripping ratio of the Group is not anticipated to exceed a maximum of 5:1. 0 Tabang Bayan PTBA Adaro Indika Bumi ITMG Source: Company Filings, Company Data 4

6 And One of the Highest Margin Producers in Indonesia 1H 2018 EBITDA Margin (%) Bayan PTBA Adaro Indika BUMI ITMG GEMS Source: Company Filings, Company Data 1H 2018 Gross and Net Profit Margin (%) Over the last couple of years Bayan has transformed itself into one of highest margin producers in Indonesia. Due to the ramp up of its world class Tabang coal complex, which is anticipated to continue to grow and produce industry leading margins. Net profit margins are anticipated to continue to outperform the industry norms due to low cost base, low royalty rates, and lower corporate tax than first Gen CCOW s. 0 Bayan PTBA Adaro Indika BUMI ITMG GEMS Gross Profit Margin Source: Company Filings, Company Data Net Profit Margin 5

7 Deleveraged the Group Net Debt / EBITDA x x x 5 2.6x 0.1x Q Q Q 2018 EBITDA / Net Interest Expense x x 208.2x x 150 The Group moved from a net debt to net cash position by the end of 1Q18. The Group now has the financial strength to continue with the next phase of expansion of Tabang. Targeted leverage of less than 2x EBITDA throughout the commodity cycle. Bayan has been assigned independent credit ratings of BB-, Ba3 and B+ by Fitch, Moody s and S&P, respectively x 2.7x 3.7x 16.8x Q Q Q

8 Low Cost Incremental Growth Capex Intensity by Country (1) Tabang Capacity Growth Today Upside 150 Unlocking tangible capacity upside at ~US$10/ton discretionary growth Capex Able to continue expansion using existing infrastructure at Senyiur whilst building for the next phase is completed. New coal haul road and barge loading facility targeted to the constructed and brought into operations in 2021 which will add additional capacity of between 25 million MT to 35 million MT. Budgeted capex in the region of USD 255 million (excluding KRL minority interest acquisition) in the next three years Source: Wood Mackenzie Notes (1) Based on 2012 real dollars (2) US$255m Capex divided by an incremental 25+ Mtpa production / sales capacity On track to buy over the approximately 44% minority shareholding in KRL by year end for approximately USD 165 million, to secure additional reserves. 7

9 3Q 2018 Overburden Removal Coal Production Weighted Average Strip Ratio Average Cash Costs Coal Sales Average Selling Price Committed & Contracted Sales EBITDA Debt and Cash Position Capital Expenditure 8

10 Overburden Removal (OB) (million BCM) Q18 3Q18B 3Q18 Note : B stands for Budget Figure (in million BCM) 3Q18B 3Q18 Teguh Sinarabadi / Firman Ketaun Perkasa Perkasa Inakakerta Wahana Baratama Mining Tabang Concessions Gunungbayan Pratamacoal Total Q18 OB was 37.9 million BCM which was higher than 2Q18. Increase in Tabang production due to BUMA commenced overburden removal in September combined with dryer weather and PTP mobilizing additional equipment. Considerably above the Budget as equipment ordered starting to reach site to secure next year s growth. YTD 3Q18 overburden removal totaled 98.9 million BCM an increase of 72% from the same period last year. 3Q 2018 Overburden removal above Budget by 22% 9

11 Coal Production (million MT) Q18 coal production of 8.1 million MT was slightly lower than 2Q 2018 production due to the increase of SR principally at Tabang Q18 3Q18B 3Q18 Note : B stands for Budget Figure (in million MT) 3Q18B 3Q18 Teguh Sinarabadi/ Firman Ketaun Perkasa Perkasa Inakakerta Wahana Baratama Mining Tabang Conssesions Gunungbayan Pratamacoal Total Q18 coal production of 8.1 million MT is significantly higher than Budget. YTD 3Q18 coal production of 22.9 million MT represents an increase of 54% over the same period last year. 3Q 2018 coal production of 8.1 million MT significantly higher than the Budget 10

12 Weighted Average Stripping Ratio (SR) Q18 weighted average stripping ratio of 4.7:1 was higher than 2Q 2018 mainly due to: Q18 3Q18B 3Q18 Note : B stands for Budget Figure Weighted Average SR (:1) 3Q18B 3Q18 Teguh Sinarabadi / Firman Ketaun Perkasa Perkasa Inakakerta Wahana Baratama Mining Tabang Concessions Gunungbayan Pratamacoal Total Higher SR at Tabang due to changes to the mine plan with less focus on Panel 2 as the dryer weather limited barging and BUMA commenced overburden removal operations in September. 3Q18 and YTD 3Q18 weighted average stripping ratio is in line with the Budget. Low stripping ratio when compared to our competitors 11

13 Average Cash Costs Q18 3Q18B 3Q18 Average Cash Costs include Royalty, Barging and SGA Note : B stands for Budget Figure YTD 3Q 2018 cash cost of US$ 32.0 are in line with Budget. 3Q18 Cash Costs were US$ 36.0/MT, which was higher than the 2Q18 and the Budget mainly due to: Higher stripping ratio and longer overhaul at Tabang. Higher coal purchases. Purchase of DMO quota. Higher royalties due to higher ASP. Increase in barging costs due to dryer weather conditions reducing barging efficiency and increasing costs. Lower sales volumes increasing certain expenses unit costs. YTD 3Q 2018 cash costs are in line with the Budget 12

14 Coal Sales (by volume) Europe 1% (million MT) Q18 3Q18B 3Q18 Note : B stands for Budget Figure Domestic 20% South Asia 19% Geographic Distribution (YTD 3Q 2018) By Sales Volumes Per Region North Asia 31% South East Asia 29% Malaysia 11% Philippines 15% Korea 16% Per Country Others 9% India 19% Indonesia 20% China 11% 3Q18 coal sales volumes of 6.6 million MT were lower than 2Q18 but in line with the Budget due to lower water levels during 3Q18 which restricted barging at Tabang. Indonesian domestic sales are becoming more significant due to continued effort to support GoI expansion program. YTD 3Q18 sales volumes of 20.8 million MT represents an increase of 48% over the same period last year. YTD 3Q18 20% of sales were domestic and by year end domestic sales are anticipated to be at least 25% of volume. YTD 3Q18 has already surpassed 2017 full year sales volumes 13

15 (US$ / MT) Average Selling Price (ASP) Q18 ASP of US$ 61.8/MT was higher than 2Q 2018 and the Budget due to : Coal prices remaining strong into the 3Q18 whilst the Budget anticipated a weakening coal price * 2Q18 3Q18B 3Q18 ASP includes coal and non-coal sales Note : B stands for Budget Figure Overall average benchmark prices in 3Q18 higher than 1H18, however towards the end of the 3Q18 sub-bituminous prices have weakened. YTD 3Q18 ASP of US$ 58.9/MT anticipated to drop slightly in 4Q due to current weakness in market. 3Q 2018 ASP of US$ 61.8/MT exceeded the Budget by 26%. 14

16 Committed and Contracted Sales for million MT 17% Strong demand and contracted volumes underpin 2018 sales volume growth. As at 30 September 2018 the Group had committed and contracted sales volumes of approximately 30 million MT with an average CV of 4,563 GAR kcal/kg. 83% 2018 Fixed Price Floating Price 2018 Fixed Price element at US$ 51.3/ MT with an average CV of 4,636 GAR kcal/kg. Contracted sales already in excess of Guidance 15

17 EBITDA Q18 3Q18B 2Q18 Note : B stands for Budget Figure 1H 2018 EBITDA Margin (%) Competitors Table 3Q18 EBITDA of US$ 169.8m exceeded the Budget however lower than 2Q18. 3Q18 EBITDA lower than 2Q18 due to increase in cash costs more than offsetting the increased ASP. YTD 3Q18 EBITDA of US$ 573.2m represents an increase of 73% over the same period last year YTD EBITDA margin of 46.1% represents industry leading margin in the Indonesian coal sector Bayan PTBA Adaro Indika BUMI ITMG GEMS One of the best EBITDA margin s in Indonesia 16

18 (in million US$) Debt and Cash Position As of 30 September 2018 bank debt was USD 25 million under the Permata facility which was fully repaid in October The Group became net cash positive from the end of 1Q18 and is anticipated to remain so for the whole of Debt 1Q18 2Q18 3Q18 Cash and Restricted Cash Under the combined USD 175 million Working Capital Facilities the Group has sufficient liquidity. Deleveraged the Company and now net cash positive 17

19 In Million USD Capital Expenditure Capex YTD was US$ 58.3 million, which was below the Budget as the spend on the new coal haul road has not yet started Major projects included: Expansion at the BCT including new ship loader Expansion at Tabang including: Coal Pad. - YTD Budget YTD Actual Asphalting current coal haul road. Senyiur jetty expansion. Additional support equipment & facilities. Capex will be under Budget this year 18

20 Appendix PT Perkasa Inakakerta PT Teguh Sinarabadi PT Firman Ketaun Perkasa PT Wahana Baratama Mining PT Fajar Sakti Prima PT Bara Tabang PT Brian Anjat Sentosa PT Tanur Jaya PT Silau Kencana PT Orkida Makmur PT Tiwa Abadi PT Sumber Api PT Dermaga Energi PT Bara Sejati PT Apira Utama PT Cahaya Alam PT Mamahak Coal Mining PT Bara Karsa Lestari PT Mahakam Energi Lestari PT Mahakam Bara Energi PIK TSA FKP WBM FSP BT BAS TJ SK OM TA SA DE BS AU CA MCM BKL MEL MBE Tabang Pakar Mamahak 19

21 Appendix Kangaroo Resources Limited PT Dermaga Perkasapratama PT Indonesia Pratama PT Muji Lines PT Bayan Energy PT Metalindo Prosestama PT Sumber Aset Utama PT Karsa Optima Jaya KRL DPP IP Muji BE MP SAU KOJ 20

22 Disclaimer This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events. These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for coal generally and for our products in particular, the success of our mining activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for planned expansion efforts, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement. 21

23 Thank You 22