PT TOBA BARA SEJAHTRA Tbk PERFORMANCE GUIDANCE

Transcription

1 PT TOBA BARA SEJAHTRA Tbk PERFORMANCE GUIDANCE 1

2 Disclaimer These materials have been prepared by PT Toba Bara Sejahtra (the Company ). These materials may contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as expects, plan, will, estimates, projects, intends, or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice. 2

3 Strategic Locations of Toba s Three Concessions Major city is less than 50 km Samarinda Major City Jetty Transhipment Point Sungai Mahakam TMU - IM Hauling Road Furthest pit to jetty 25km with closest one ~5km Muara Berau ~55 Km (total ~120 Km) TMU Kutai Energy ~22km IM ABN ABN ~ 5 km IM Jetty ABN Jetty Close proximity transhipment point & jetty Makassar Strait ~ 120 km Balikpapan Adjacent locations for all 3 mines ~65 Km Muara Jawa Toba owns all infrastructures (coal processing plants, overland conveyors, and jetties), giving significant operating leverage vs other concessions in surrounding areas Toba s business units: ABN = Adimitra Baratama Nusantara; IM = Indomining; TMU = Trisensa Mineral Utama 3

4 Toba s Performance Guidance Operation Changes 2014E Changes Production Volume (million tons) % % Stripping Ratio (x) (10.0%) (0.7%) (3.7%) Average Selling Price (ASP) (US$/ton) (3.0%) (7.5%) (4.3%) (6.0%) Notes: - Production target range is expected to be above average Indonesian coal sector production growth of 5.0% 10.0% for All figures are rounded up to one decimal point Coal Production In Million Tons Highest 4Q production volume throughout corporate history TMU IM ABN Above 2013 internal guidance of m ABN: Expecting 2.0% 3.0 % production growth 2 1,5 In million tons IM: Expecting 20.0% 30.0% production growth 0, E 2014e TMU: Expecting 60.0% 70.0% production growth 0 4Q2009 4Q2010 4Q2011 4Q2012 4Q2013 4

5 2013 Achievements of Infrastructure Projects TOBA continues its strategy to lower cost via, inter alia, investment in infrastructure Project Background Future Benefits % Completion Target km Hauling Road from TMU to ABN *) Second Underpass at ABN Workshop at ABN New CPP (Coal Processing Plant) at IM To streamline internal logistical flow for TMU To support infrastructure facilities at ABN To accommodate maintenance and repair facilities for mining equipment To increase coal production capacity at IM from 3 mn tpa to 6 mn tpa **) Notes : *) Total distance from TMU -> ABN -> IM Jetty is approximately 22 km **) Tpa : Tons per annum ***) In process of transferring conveyor from old CPP to new CPP To obtain cost efficiency and allow for TMU production ramp up To lower OB (over burden) overhaul dump distance To ensure streamlined operational activities related to heavy equipment and supporting equipment To process TMU s coal, reduce costs, and boost stockpile capacity of up to 16 tpa from 13 tpa presently 100% 100% 100% 91% 1H 2014 ***)

6 2013 Sales and Marketing Activities China 43% South Korea 10% Japan *) Sales (million tons) ABN IM TMU Note: * )This includes inter subsidiaries sales Sales by Product Taiwan 19% Hong Kong Others 18% GAR 52 ABN 18% Vietnam Thailand India 14% Malaysia GAR 47 TMU 10% GAR 58LS IM 8% GAR 56HS ABN 22% Note: Sales to export destinations ie. Vietnam, Thailand, Hong Kong, Malaysia and Japan each below 3% GAR 56RS ABN 24% Initiatives Undertaken: Commenced building well-diversified customer base and export market coverage Generated good quality sales backed by quality buyers and favorable terms of payment Achieved tighter discount rate to reference market price with ASP of US$ 67-70/ton 6

7 2013 CAPEX In US$ CPP Land comp. Vehicles, machineries and heavy eq Hauling road Underpass Exploration Others Realized CAPEX Planned CAPEX In 2013, Toba realized Capex of US$ million, mainly allocated for : Land compensation, Construction of new CPP at IM, Completion of 17 km hauling road from TMU to ABN Construction of ABN s second underpass Salient Point Toba successfully generated cost savings of around US$ 4 8 million from total initially-planned capex of US$ 27 million slated for

8 FY 2014 CAPEX Others 4% Allocated US$ US$ ~9 million Land Compensation 31% Palm Oil Mills 38% PKU (Perkebunan Kaltim Utama I) Total area granted by government: 8,633 ha Exploration 5% Equipment 8% Buildings 5% Conveyor 9% Plantation permit expires in 2036 Planted area: 2,896 ha In 2014, Toba targets capex of US$ million (including PKU), mainly allocated for : Land compensation at TMU Exploration at TMU Operational and Infrastructure maintenance at ABN and IM US$ -9 million for Palm Oil Mill Salient Points Toba s 2014 capex growth supports its on-going growth strategy amidst cutbacks among major industry producers Majority of capex is expected to focus on TMU as it will become Toba s main growth driver 8

9 Inherent Challenges What to Expect from Here Continued low coal prices due to on-going supply and demand imbalance Unfavorable external and domestic government policy-making Deteriorating and more sporadic weather conditions (rainfall) Depleting reserve life from continued decline in coal prices 2013 Theme: Consolidation & Efficiency To anticipate this, Toba successfully overcame its majority obstacles during The highlights included: Creating new mine plan executable for the current low coal price environment Renegotiating with third party contractors on new rates Building and completing hauling road in time to enable production ramp up and cost savings Increasing infrastructure capacity to anticipate production growth Deploying effective marketing strategy targeting more diversified customer base & export market coverage, better quality customers, while maximizing ASP 2014 Theme: Growth & Integration Entering 2014, Toba has become a stronger and more resilient company, and is poised to continue its sustainable and profitable production growth strategy through: Maintaining cost efficiency in all levels Increasing production growth at acceptable level Seeking increased reserves through internal exploration and external acquisitions Strengthening quality of human resources at every level of the organization Increasing marketing strength via targeting higher quality customers, while optimizing ASP Maximizing return to shareholders through profit growth and dividend 9

10 PT Toba Bara Sejahtra Tbk