Banpu PLC Quarterly Performance Review 16 May 2002

Transcription

1 Banpu PLC Quarterly Performance Review 16 May 2002 Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to our corporate plans, strategies and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as may, will, expect, anticipate, intend, estimate, continue, plan or other similar words. The statements are based on our management s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

2 Agenda 1 Major events 2 Financial review 3 Business review 4 Outlook 1

3 Major events! Consolidation of Indocoal, starting 1 March 2002! Completed Port business divestment with Bt228m profit! Entered into sales agreement of Minerals business with Imerys SA! Proposed to extend foreign ownership limit from 30% to 40% (completed in May 2002)! Redemption of ECD#2 by US$5m 2

4 Agenda 1 Major events 2 Financial review 3 Business review 4 Outlook 3

5 Quarterly earnings summary!"#$"%&'()*'!"#$%&'$()*+, +,-. -./0 0./0 $/ :; +8.:. +8<-: :.< C *2&3$45'6+& 78 0/7 9: ;<=> :09 -/9 A6BCD*B 00: 99 E0 +9..:; E+;;F F5*&3&G*$&HI&5G&G 0:0 0/0 <- +.: E.;9F #JK4*B$45'6+& 0?0 0// (?E, )65L$3&L&+I*465$&HI&5G& / (E0, 0E/ 8 E QCH&G 7 #1>3=4AB?>3E41G744?6@F <+; +.: EC.<F / 0T/77 H1=A4>1I361>3=4AB?> :CC +.: ;:C! Consolidated sales increased 40% q-q! A slight drag on gross profit margin in 1Q02 due mainly from decreased profit margin of coal Thailand. However, a healthy contribution from international coal! Increased SG&A in 1Q02 upon Indocoal consolidation! Strong equity income from power affiliates! Recurring profit increased more than two times in this quarter 4

6 Operating profit contributions by product group :E/ :// 0./0 0E/ 0// E/ +<; +;J :J +.9 C9 :9 :+ -./0 +,-. U!A/03)K/?0/6I &6>146/>?6/03GA/0 L?614/023M ">K142 Source: Banpu 5

7 Segmentation profile N/6OL/483-. ;CD&G$S6DK+&$ (X///$*655&G, Z&*$GCD&G$ ()*+, <36GG$I36R4*$ ()*+, #)FQ$ ()*+, %6+&G*4'$ '6CD F+I63*&L$ '6CD$R36+$ 6*2&3G F+I63*&L$ '6CD$R36+$ W6365O F5*XD$R36+$ W6365O Q6*CD$ W6365O$ GCD&G F5*XD$R36+$ F5L6+45'6 F5*XD$R36+$ Y4*CL45 P45&3CDG$=$ 1*2&3$ G&3S4'&G P4/6I3 >A>/0 7E7 07-0/7 -E8 E9E :?: 0?7.8-J; :80 --E 08? +89:; :: 0E/ 0@? -: E0 :.< 00E (09, (@, 8/ 77 :9 7 -@ <<J <[P$(\, -@]-.QRJ #)FQ%>$+C3O45$ (\, 7E]@ E:]0 --]7 07]- 0/]? -0]0 <+R9! Despite a slight dip in overall margin, total gross profit improved substantially in absolute term 6

8 Balance sheet Net gearing profile 0]- 0]/ /]8 -R9+ -R9- -RJ- -RQ: +R+: /]9 /]- U Source: Banpu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

9 Debt portfolio: 31 March 2002 '1S16>7412 *!'T. D(#UVT< D(#UVTC D(#UVT: D(#UVT; >+6K5* $V;_07]E0+$ $)*?:7]E+$ $)*7E/+$ $)*E//+$ FGGK&$%C*& 0/U>I3U?7 :UZ6SU?? :UZ6SU?? -U>I3U/0 -U>I3U/0 PC*K34*B$%C*& 0/U>I3U/: :UZ6SU/- -U>I3U/9 -U>I3U/8 E]8/\ PaAU/]:7E\ [K*$=$`CDD$ 1I*465 U UZ65&U UZ65&U UZ65&U UZ65&U AC*45O U U U b>ub$$(qaf;, b>ub$$(qaf;, D/6W3%A/62 (XA76> L/>74?>Y &6>1412>3H/>1 a65ou*&3+ )*@T/9/+ WC5U/7 PaAU/]E\ ;263*U*&3+ )*?//+ 1'*$/@ -]9@E\ 8

10 Indocoal financial highlights!16>4/0?6wz23ga62a0?i/>1i ()*+, $$$$U$F5L6+45'6 $$$$$$$$$$$$$$$$$$$$ $$$$U$Y4*CL45 $$$$$$$$$$$$$$$$$$$$$$$ E?0 Q6*CD$CGG&*G $$$$$$$$$$$$$$$$$$$$ 8T?:- Z&*$D4C^4D4*4&G $$$$$$$$$$$$$$$$$$$$ ;2C3&26DL&3GX$D6C5 $$$$$$$$$$$$$$$$$$$$ 0T777 Q6*CD$D4C^4D4*4&G $$$$$$$$$$$$$$$$$$$$ 7T7/9 ;2C3&26DL&3GX$&JK4*B $$$$$$$$$$$$$$$$$$$$ Z&*$GCD&G $$$$$$$$$$$$$$$$$$$$$$$ 9:- `6G*$6R$GCD&G $$$$$$$$$$$$$$$$$$$$$$$ Note: FX conversion of Rp9,655/US$ 9

11 TECO: Financial highlights TECO quarterly earnings summary [\*3'1G3ED>XF +,-. -./0 0./0 0T8?? `6G*$6R$GCD&G 0T970 0T9-/ 0T:7: ;<=> :: :E -0 ;dci$'6g* 77 / a&ocd$r&& / -8 / F5*&3&G*$&HI&5G&G 0@@ Z&*$6I&3C*45O$I36R4* 08? MN$(OC45,"D6GG E+Q-F (-:, -/- A&I63*&L$5&*$I36R4* (@0E, 10

12 Capital Expenditure Planned CAPEX (V;_+,.--.*.--<*.--C*.--:*.--;*!A/03)K/?0/6I ]] +. + ]]!A/03&6IA612?/ +. < ; +. &6IAGA/0 ++ C < C. UA^14.9 ; -.+ CQ )A>/0 :- +C ++.9 :< Note: Excluding potential investment in RECO 11

13 Agenda 1 Major events 2 Financial review 3 Business review 4 Outlook 12

14 Benchmark price Japanese Benchmark Crude oil vs. coal E/ :/ V;_"*655& -/ :-]E/ 0E 0/ U 0/ 0?8-0?89 0?88 0??/ 0??@ 0??- U E 0?8-0?89 0?88 0??/ 0??@ 0??- )K14X/03!A/03O3 D16GKX/4W3=4?G1 Source: McCloskey!s Coal News Source: World Energy Statistics; monthly reports! Newly announced JBP of US$31.85/tonne represents 7.7% y-y decline. The decrease is in-line as a result of the overall slump in global energy prices! However, demand from major coal importing countries remains stable 13

15 Domestic coal demand 2,270 2,288 2,408 2,500 +4% 2,595 0TE// 0T/// +8<.- +8.JJ +8.J: +8<+- +8C;C F+I63*&L$'6CD %6+&G*4'$'6CD E// Q: < +8+Q- +8+<+ U Source: Banpu WC5UPC3T$/0 >I3UWK5T$/0 WKDU;&IT$/0 1'*U%&'T$/0 WC5UPC3T$/@ Note: EGAT!s Mah Moh is excluded! Domestic demand increased 4% q-q driven by cement industry! However, domestic volume declined due to higher portion of imported coal 14

16 Domestic market share Domestic coal sales in Thailand (Jan-Mar, 2002) Imported coal sales in Thailand (Jan-Mar, 2002) ;4C+$ `&+&5* 00\ ;Ke& 0\ 1*2&3G :\ %/66/ C_ ">K142 +C_ D/6=7 +Q_ ac55c 0?\ D/6=7 ;9_ &)' +:_ %) :_ VL$ <_ L/47S16? ++_ $!) 9_ PUN.._! Continued to dominate domestic coal market with market share of 67%! And maintained a major share of imported coal 15

17 Banpu total tonnage 0TE// 0T/// E// 1,241 <;C 1,535 1,379 1, % 2,086 :Q- ::C C:J CQ; C<+ J99 JJ9 QJ; QJ+ +8-<J F5*&35C*465CD GCD&G$U$F5L6'6CD F5*&35C*465CD GCD&G$U$W6365O %6+&G*4'$GCD&G U WC5UPC3T$/0 >I3UWK5T$/0 WKDU;&IT$/0 1'*U%&'T$/0 WC5UPC3T$/@ Source: Banpu! An increase of 36% q-q in total tonnage sales! Growth was primarily driven by Indocoal as well as strong domestic demand 16

18 Banpu sales revenues V6?>3?63X?00?A63D/K> 0T8// 0T9// 0T-// 0T/// 8// 9// U 1, <.Q..J 1,117 1, % 1,634 ;<C <.+ <:;.9J ;+Q 9-. 9Q; 9<Q 9.. WC5UPC3T$/0 >I3UWK5T$/0 WKDU;&IT$/0 1'*U%&'T$/0 WC5UPC3T$/@ F5*&35C*465CD$GCD&G U$F5L6'6CD F5*&35C*465CD$GCD&G U$W6365O Q2C4$+C3f&*$GCD&G Source: Banpu Sales revenues from coal hike 52% q-q mainly from additional sales of Indocoal 17

19 Reserves and production (221> $>/>72 H )Y=1,7/0?>Y U4AI7G>?A6 EX3>A6612F P!`3 $E/IF!74416>3 b7003g/=r3 (23AB3L/4O-. _ X>=/ X>=/!A/03&6IA612?/ W6365O 1I&3C*465CD -:]9 ;K^U^4*K+456KG ET://UETE// g/]: :]/ :]E F5L6+45'6 1I&3C*465CD -0]E )4*K+456KG 9T://U9T7// g/]8 E]8 9]/ Y4*CL45 )4*K+456KG 9T///U9T:// :]/ )4*K+456KG 9TE//U9T7// g/]8 /]/ -]/ P[Z [36e&'*$$ 08]E )4*K+456KG 9T://U9TE// g/]9 /]/ /]/ )C3CG&5*6GC [36e&'*$$ 87]/ ;K^U^4*K+456KG ET///UET:// g/]- /]/ /]/ &6IA612?/327SO>A>/0.<<R. ++RC +;R:!A/03)K/?0/6I ac+i2k5$()[u0, 1I&3C*465CD $$$$$$$$$$$$$$$ /]7 ;K^U^4*K+456KG -T8E/ 0]E /]E 0]/ 1I&3C*465CD $$$$$$$$$$$$$ [CB6d$(`PP`, 1I&3C*465CD ;K^U^4*K+456KG -T9// 0]/ /]7 /]8 )K/?0/6I327SO>A>/ :R;.R9 <RJ )")(%.CJRJ CR+.-R< 18

20 Power business structure 1,521 MW Planned equity capacity 702 MW Current equity capacity BANPU POWER % % % 14.99% TECO BLCP APBH RATCH Production capacity Equity capacity 700 MW 263 MW 1,347 MW 674 MW 126 MW 38 MW 3,645 MW 546 MW Current capacity Equity capacity 700 MW 263 MW MW 4 MW 2,900 MW 435 MW Partner(s)/ Other Equity Stake holder(s) - ChevronTexaco - Edison Mission - CLP/PowerGen Amata Power - EGAT - DEG Note : BLCP to commence operations in 2006 As of 31 March

21 Power business review! Banpu increased shareholding in RATCH to 14.99%, as of 31 March 2002! TECO is well operating and according to plan! On-going negotiation of the proposed acquisition of Rayong Energy (both BANPU and seller have right to cancel the transaction)! BLCP project development is in progress, expect conclusion of financing package in 2003 and COD by October

22 Agenda 1 Major events 2 Financial review 3 Business review 4 Outlook 21

23 Planned coal production Banpu planned coal production ( ) (X///$*655&G,.--.*.--<*.--C*.--:*.--;* U0/661I3=4AI7G>?A63 +<8C-- +<8:-- +C8:-- +98:-- @TE// $$$W6365O :T/// :T/// :T/// :T/// :T/// $$$F5L6'6CD$(0, 7T9// 8T///?T/// (1) Trubaindo COD in 2004 with ramp up capacity to 4mtpa in

24 Planned coal marketing 2002E Target Markets :/\ Thailand Rest of Asia Indonesia E9\h 0-\! Expect to expand and diversify customer base in Asia, in addition to SE Asia, to North Asian markets via INDOCOAL! Continue to dominate domestic market with local coal! Use Jorong coal to penetrate niche market (low sulfur/low ash specification) in Indonesia * Japan, Taiwan, Hong Kong, Philippines, Malaysia, Korea, Europe 23

25 Asian coal demand! Asian coal demand expected to continue to grow 5-7% in 2002! Growth mainly driven by demand from India, China and Japan! Japan expected to increase coal imports from Indonesia and China to decrease dependence on Australia! China rumored to increase its coal exports by 4-5% in 2002! But recent tightness in China s domestic coal supplies puts export growth into question! Competitiveness of China largely depends on transportation cost Million tonnes Hong Kong Source: Barlow Jonker Coal importers Philippines Thailand Malaysia Taiwan Korea Japan India

26 Thai coal demand and supply Million tonnes By customer Million tonnes By source Other Cement Imports IPPs Other domestic EGAT 10 Mae Moh Source: NEPO! Thai coal demand forecast to double by 2020 (to 45mtpa)! New IPP coal-fired plants will be primarily supplied by imports 25! Main source of imports likely to be Indonesia (low sulphur content and freight competitiveness)! Banpu currently controls 19% of imports

27 Upcoming events! Redemption of ECD#2 (Outstanding of US$5m -- as of April 2002)! TECO!s 3-week maintenance on combustion inspection and hot-gas path inspection! RATCH!s dividend of Bt196m! LANNA!s dividend of Bt11m! Conclusion of Minerals business sales! ESOP Exercised in April 2002 (Paid-up capital increased to 212.6m shares - proceeds of Bt64m) 26

28 Questions & Answers 27