Analyst Briefing. FY12 performance results. 4 March 2013

Transcription

1 Analyst Briefing FY12 performance results 4 March 2013

2 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 information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by PT. Indo Tambangraya Megah Tbk. Nothing in this release should be construed as either an offer to buy or sell or a solicitation of an offer to buy or sell shares in any jurisdiction 2

3 Introduction Operational review Commercial review Financial review Appendices 3

4 Highlights of 4Q12 and FY12 results Unit: US$ Mn Coal sales 8.2 Mt Up 1.6 Mt +24% Q-Q Coal sales 27.2 Mt Up 2.5 Mt +10% y-y 3Q12 4Q12 Q-Q FY11 FY12 y-y Total Revenue % 2,382 2,439 +2% Gross Profit Margin 31% 24% -7% 37% 30% -7% EBIT % % Net income % % ASP* (USD/ton) $87.5 $80.6-8% $97.1 $90.0-7% * Includes bonus /penalty 4

5 GROWTH Organic growth from existing assets : Further exploration drilling activities in some potential areas IPCC project at Indominco East Block is progressing as planned Trubaindo infrastructure development (i.e. bridge, barge loader, etc.) Bharinto ramp-up production starting 2013 Bontang and Bunyut port stockyard and capacity expansions Seeking coal opportunities that can create synergy with nearby existing operation COST MANAGEMENT Continue on cost improvement program Reduced costs through logistics efficiency Prioritized capex spending Contractor management Different mining techniques Washing plant investments at Indominco East Block and Trubaindo South Block Energy saving schemes Captive coal-fired power plant in other existing mines ITM strategy BEST PRACTICE Focus on Quality, Safety and Environmental standard Commitment to good corporate governance principles through business process enhancement and CSR aspects Focus on people development and corporate culture 5

6 2012 review : strengthening the core INDOMINCO TD. MAYANG Indominco: Lowered SR to 12.0x from 12.6x in FY11 Continued process on port loading capacity expansion Completed IPCC feasibility study as part of cost reduction program Capex postponement and rationalization Obtained gold medal award at Indonesia Fire Rescue Challenge (IFRC) Td. Mayang: passed TPM3 Excellence Award level 4 JAKARTA OFFICE Overhead cost reduction Maintain dividend payout ratio TRUBAINDO - BHARINTO Trubaindo: ramped up production from 7.1 mt to 7.7 mt Shortened distance to dump area Capex postponement and rationalization Bharinto: first coal sales in 3Q12 Completed Bharinto hauling road EMBALUT - JORONG Embalut: optimized mining reserves Jorong: finalized mine closure master plan 6

7 2013 and beyond: make fundamentals even stronger REVENUE GROWTH Increase sales to 29.0 Mt Leverage high CV competitiveness Diversification of customer base Consider options to secure tonnage and price LT of off-spec products both internally and with third party blending Strengthen product and shipment reliability (expansion of port and shipyard) FINANCIAL POLICIES Strong balance sheet Prudent cash management Maintain dividend payout ratio COST Lower SR to decrease production costs Optimize infrastructure and logistics efficiencies Manage overhead costs Further cost reduction program through IPCC, washing plant, etc. BEST PRACTICE Continuous improvement on structures to support good corporate governance Enhance risk management best practices Rules and regulation compliance in all mine sites Banpu Spirit as ITM people character 7

8 2012 vs 2013 operation summary FY12 OUTPUT: 27.5Mt FY13 TARGET: 29.0Mt QUARTERLY OUTPUT East Kalimantan Indominco Units: Mt Bharinto Jorong Kitadin Trubaindo e Trubaindo e Td.Mayang Indominco Bharinto Samarinda e 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13e e Central Kalimantan Palangkaraya South Kalimantan Balikpapan Embalut e INDICATIVE OUTPUT TARGETS* Units: Mt Bharinto Jorong Kitadin Trubaindo Banjarmasin Indominco Jorong e e 2014e 2015e 2016e 8 * Not including inorganic growth. Note: These output targets are indicative only and are subject to change

9 Introduction Operational review Commercial review Financial review Appendices 9

10 Indominco Mandiri SCHEMATIC 2013 target: 14.8mt WEST BLOCK ROM stockpile Mine stockyard EAST BLOCK Operations Ports Hauling Stockpile Crusher QUARTERLY UPDATES FY12 production was higher than target due to better weather condition and optimal equipment utilization. IPCC trial stage: on process to transport the equipment to Indominco site. Port expansion: completed the feasibility study by consultants and continue with construction (EPC) bidding process. QUARTERLY OUTPUT Asphalt haul road 35Km Bontang City Sea conveyor 2.5Km Units: Mt Santan River km 10 Port stock yard Inland conveyor 4km Post Panamax 95,000DWT E BLOCK W BLOCK E BLOCK W BLOCK Q11 1Q12 2Q12 3Q12 4Q12 1Q13e Units: Bcm/t Q11 1Q12 2Q12 3Q12 4Q12 1Q13e

11 Trubaindo and Bharinto SCHEMATIC 2013 Target: TCM : 7.7mt BEK : 1.9mt EAST KALIMANTAN Operations Barge Port Hauling Stockpile ROM stockpile Bharinto 60km south west of Trubaindo North Block South Block 2 (Biangan) Product coal conveyor, stacking, stockpile South Block 1 (Dayak Besar) Mahakam River Bunyut Port 40km Mine to port Kedangpahu River PT. TRUBAINDO North Block QUARTERLY UPDATES Trubaindo: FY12 production was higher than plan due to good performance of mining contractor. Bunyut port expansion: on process of preparing feasibility study with consultant. Bharinto: FY12 production achieved as planned. PAMA is the main mining contractor at site. Bharinto hauling road already completed since 4Q12. QUARTERLY OUTPUT Units: Mt BHARINTO TRUBAINDO Units: Bcm/t BHARINTO Q11 1Q12 2Q12 3Q12 4Q12 1Q13e 7.5 PT. BHARINTO km TRUBAINDO Q11 1Q12 2Q12 3Q12 4Q12 1Q13e 11

12 EMB TDM Kitadin Embalut and Tandung Mayang SCHEMATIC 2013 Target: EMB : 1.0mt TDM : 2.4mt TD. MAYANG QUARTERLY UPDATES Kitadin Embalut: FY12 production was higher than plan supported by good weather conditions. EAST KALIMANTAN Embalut Port ROM stockpile Mahakam River IMM WB IMM EB EMBALUT 5km Mine to port Samarinda Bontang city Bontang Port to Muara Berau Kitadin Tandung Mayang: FY12 production was lower than plan due to change in market requirement. QUARTERLY OUTPUT Units: Mt to Muara Jawa 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13e Units: Bcm/t Balikpapan km Operations Ports Hauling Stockpile Crusher EMB TDM Q11 1Q12 2Q12 3Q12 4Q12 1Q13e 12

13 Jorong SCHEMATIC MAJOR QUARTERLY UPDATES FY13 target: 1.2mt Pelaihari FY12 production achieved according to plan due to good weather condition and good support from mining contractor. Already obtained approval on river diversion project from government. Project construction started since Jan 2013 and expected to be finished in mid Haul road 20km QUARTERLY OUTPUT Units: Mt Jorong 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13e Operations Barge Port Hauling Stockpile Coal terminal Pacific Ocean km Units: Bcm/t Q11 1Q12 2Q12 3Q12 4Q12 1Q13e 13

14 Introduction Operational review Commercial review Financial review Appendices 14

15 Seaborne thermal coal market drivers 4Q update WEATHER CHINESE DEMAND OTHER DRIVERS Indonesia wet season normal reducing stock. Chinese cold winter. Australian cyclones, floods reduce coal flow. USA/Europe cold winter. Question: Is there a La Nina pattern developing? More rain in tropics, less in S. China. Economic activity marginally picking up, as is electricity generation. Coal production flattening, but stocks remain. Imports in 2H 2012, high ending year at almost 150 Mt. Policy clouds clearing. On balance positive. Overall impact domestic price likely to rise and impact import demand, especially if less rain than normal. A start in positive trend in sentiment, despite global coal trade expanding strongly. Gas prices support coal demand in Europe, while USA continues adjusting. In 2013, political and social factors may impact supply, but extent unpredictable. World growth forecast of 2.3%* (Prev. 2.4%); Asian growth forecast of 6.3%* (Prev. 6.4%) in * Economist Intelligence Unit, Global Outlook, February 2013

16 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 ITM ASPs vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: $/t Monthly NEX BJI Quarterly ITM quarterly Banpu ASP Indonesia ASP ASP started to decline marginally in 2Q and this extended to 4Q, but not as quickly as the general market and spot Continuing pressure from weaker market prices and product mix, impacts ASP and tonnage Concluded increased sales at 27.2 Mt in 2012, with some downward impact on ASP end 4Q ASP 4Q12 $80.6 (-8% QoQ) ASP 2012 $90.0 (-7% YoY) NEX* Feb 21, 2013 $ * Barlow Jonker Index: benchmark NSW FOB thermal coal index

17 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 China thermal coal market review CHINA DOMESTIC COAL PRICES CHINA THERMAL COAL IMPORTS/EXPORTS ANNUALIZED ACTUAL IMPORT 3Q11-4Q12 & 1Q13 ESTIMATE Unit: RMB Unit: Mt Unit: Mt 1, > 5,800 kcal/kg > 5,500 kcal/kg > 5,000 kcal/kg Net import 142 Mt c.175? Net import c.170 Mt? Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Est Import Export Import Export Source: 26 Feb 2013 Sources: China Coal Report Jan 2013, Banpu MS&L Estimates 17

18 ITM coal sales 2012 COAL SALES BREAKDOWN BY DESTINATION COAL SALES 2012 Malaysia Hong Kong Others 1% Italy 2% 2% S Korea 5% 6% 26% China ITALY 1.4 Mt CHINA 7.1 Mt S KOREA 1.5 Mt 1.5 JAPAN 4.5 Mt Philippines Thailand 6% 7% INDIA 3.3 Mt THAILAND 1.8 Mt MALAYSIA 0.4 Mt HK 0.6 Mt TAIWAN 2.3 Mt INDONESIA 2.5 Mt PHILIPPINES 1.6 Mt 8% Taiwan 9% Indonesia 12% India 16% Japan OTHERS 0.1 Mt Total Coal Sales: 27.2 Mt 18

19 Indicative coal sales 2013 COAL SALES CONTRACT AND PRICING STAUTS Contract Status Price Status 23% Uncontracted Unsold 23% 44% Contracted 77% Unpriced 9% 24% Fixed Index TARGET SALES 2013: 29.0 Mt 19

20 Introduction Operational review Commercial review Financial review Appendices 20

21 Sales revenue REVENUE* GROWTH SALES VOLUME Units: US$M % QoQ Jorong Kitadin Bharinto Units: Mt Jorong Kitadin Bharinto +24% QoQ Trubaindo Indominco Trubaindo 4Q11 1Q12 2Q12 3Q12 4Q12 ASP Units: US/t Avg.2011: $97.1 /t Avg.2012: $90.0 /t Indominco % QoQ 4Q11 1Q12 2Q12 3Q12 4Q12 * excluding port revenue 4Q11 1Q12 2Q12 3Q12 4Q12 21

22 Average gross margin Units: US$M Revenue GPM* (%) % 28% % 19% 39% 38 28% 19% 24 46% % 28% 31% 19% 17% 16% 19% 19% % 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 Indominco Trubaindo Kitadin Jorong Bharinto 31% 24% 4Q11 3Q12 4Q12 ITM Consolidated 22

23 Cash cost WEIGHTED AVERAGE STRIP RATIO CASH PRODUCTION COST Units: Bcm/t Avg.2011: 11.9 Avg.2012: 12.3 Units: US$/t Avg.2011: $46.4 /t Avg.2012: $50.1 /t Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 FUEL PRICE TOTAL CASH COST * Units: US$/Ltr 1.03 Avg.2011: $1.02 /ltr Avg.2012: $1.04 /ltr Units: US$/t Avg.2011: $66.0 /t Avg.2012: $68.0 /t Q11 1Q12 2Q12 3Q12 4Q12 * including royalty 4Q11 1Q12 2Q12 3Q12 4Q12 23

24 CONSOLIDATED Units: US$M EBITDA (83.6) (16.3) (10.5) % QoQ Higher Volume by 24% Lower ASP by 8% 4Q11 3Q12 Revenue COGS Royalty Selling Admin 4Q12 *COGS = Prod cost + Transport cost + Inv. movement MINE BY MINE Units: US$M (0.2) Q11 3Q12 4Q12 Indominco 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 Trubaindo Kitadin Jorong Bharinto 24

25 Net Income CONSOLIDATED Units: US$M Lower ASP by 8% (27.8) (0.4) +1.3 (44.6) (1.4) % QoQ 4Q11 3Q12 EBIT Net Fin.Charges FOREX Derivative Transactions Income Tax Others 4Q12 MINE BY MINE Units: US$M (6.8) (0.2) (0.5) 2.0 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 4Q11 3Q12 4Q12 Indominco Trubaindo Kitadin Jorong Bharinto 25

26 Balance sheet KEY RATIOS CASH POSITION Net Market Gearing (%) Net D/E (times) Units: US$M (34%) (0.34) (44%) (0.47) (41%) (0.41) (57%) (0.57) (46%) (0.46) DEBT POSITION Units: US$M

27 2013 Capital Expenditure plan Units: USD million Trubaindo infrastructure Crushing plant In-pit crushing conveyor system Port expansion Crushing plant & washing plant Indominco Trubaindo Bharinto Kitadin Jorong ITM Consolidated* Note: Total capex plan including Jakarta office 27

28 28 Appendices

29 ITM structure and history Banpu Banpu PCL Banpu Coal Investment Co.Ltd INDONESIAN STOCK EXCHANGE IPO 18 th Dec % BCI Public 50.00% 35.00% BMC 99.99% 50.00% BMS 65.00% ITMG Banpu Minerals Co.Ltd Banpu Minerals (Singapore) Pte Ltd PT Indo Tambangraya Megah Tbk. Acquired Jorong in 1997 Transferred into ITM 2007 The Indocoal assets 99.99% 99.99% 99.99% 99.99% 99.67% Indominco Trubaindo Bharinto Kitadin Jorong PT Indominco Mandiri (CCOW Gen.I) PT Trubaindo Coal Mining (CCOW Gen II) PT Bharinto Ekatama (CCOW Gen III) PT Kitadin-Embalut (KP) PT Kitadin-Td.Mayang (KP) PT Jorong Barutama Greston (CCOW Gen II) East Kalimantan East Kalimantan East / Central Kalimantan East Kalimantan East Kalimantan South Kalimantan Reserves 390* Mt Resources 1,595* Mt Output FY12: 14.8 Mt Output FY12: 7.7 Mt Output FY12 : 0.3 Mt Output FY12 : 3.5 Mt Output FY12 : 1.2 Mt Reserves 159 Mt 679 Mt Resources Reserves 94 Mt 318 Mt Resources Reserves 112 Mt 298 Mt Resources Reserves 13 Mt 149 Mt Resources Reserves 7 Mt 10 Mt Resources Reserves 5 Mt 142 Mt Resources 29 6,000-6,300 kcal/kg 6,500-7,300 kcal/kg 6,400-6,800 kcal/kg 5,800 kcal/kg 6,700 kcal/kg 5,300 kcal/kg Note: * Updated Coal Resources and Reserves as of 31 Dec 2012

30 Reserves and Resources (as of 31 Dec 2012) Indominco W.Block 21 Mt 235 Mt E.Block 138 Mt 443 Mt Trubaindo 94 Mt 318 Mt Bharinto 112 Mt 298 Mt Kitadin-Embalut 13Mt 149 Mt RESOURCES RESERVES Kitadin-Td.Mayang 10Mt 7Mt Total Reserves: 390 Mt Total Resources: 1,595 Mt Jorong 5Mt 142 Mt 30

31 Income statement Unit: US$ thousand FY12 FY11 YoY% Net Sales 2,438,941 2,381,875 2% Gross Profit 741, ,069-17% GPM 30% 37% SG&A (182,729) (185,153) EBIT 558, ,916-21% EBIT Margin 23% 30% EBITDA 620, ,937-19% EBITDA Margin 25% 32% Net Interest Income / (Expenses) 13,269 4,684 FX Gain / (Loss) (10,827) 639 Derivative Gain / (Loss) 48,535 34,304 Others (18,306) (14,081) Profit Before Tax 591, ,462-19% Income Tax (159,066) (186,336) Net Income 432, ,126-21% Net Income Margin 18% 23% 31

32 Income statement Unit: US$ thousand 4Q12 3Q12 4Q11 QoQ% YoY% Net Sales 658, , ,123 14% -10% Gross Profit 158, , ,597-10% -44% GPM 24% 31% 39% SG&A (53,980) (43,827) (65,788) EBIT 104, , ,809-21% -52% EBIT Margin 16% 23% 30% EBITDA 120, , ,556-19% -49% EBITDA Margin 18% 26% 32% Net Interest Income / (Expenses) 4,107 4,474 2,035 FX Gain / (Loss) (588) (1,912) (1,222) Derivative Gain / (Loss) (9,032) 35,617 37,180 Others (4,822) (3,403) (6,823) Profit Before Tax 94, , ,979-44% -62% Income Tax (28,912) (47,392) (66,063) Net Income 65, , ,916-45% -65% Net Income Margin 10% 21% 25% 32

33 2012 operating cost 2012 AVERAGE OPERATING COSTS $/t $74 $72 $69 $67 $ Royalty SG&A expenses Depreciation & Amortization Other production costs* Mining and contractor cost Q12 2Q12 3Q12 4Q12 FULL YEAR * Coal transportations, repair and maintenance, salaries and allowance, etc. 33

34 Sales revenue REVENUE* GROWTH SALES VOLUME Units: US$M 2,370 2,422 +2% YoY Jorong Units: Mt % YoY Jorong Kitadin Bharinto Trubaindo Kitadin Bharinto Indominco 1,291 1,494 1,635 Trubaindo ASP Indominco Units: US/t % YoY * excluding port revenue