Company Update First Quarter 2018

Transcription

1 First Quarter April 2018 Share Price Data (as of 27 March 2018) DOID Last Price (Rp) 890 Outstanding Shares (mn) 8,553 Market Capitalization (Rp bn) 7,612 Market Capitalization (USD mn) * 548 * based on exchange rate of Rp13,879 Shareholder Structure Northstar Tambang Persada Ltd 38.2% Public 61.8% Contact Us Investor Relations Department ir@deltadunia.com PT Delta Dunia Makmur Tbk. Cyber 2 Tower, 28 th Floor Jl. H.R. Rasuna Said Blok X-5 No. 13 Jakarta Indonesia Phone: Fax: ) Cash position includes restricted cash in bank and current investments. 2) Debt includes only the outstanding contractual liabilities. 3) Margins are based on net revenues excluding fuel. 4) Free cash flow is cash flow before debt service, and excludes financing proceeds. Jakarta PT Delta Dunia Makmur Tbk. ( DOID or the Company ) presents its newsletter with consolidated financial and operating results that include its primary and wholly-owned subsidiary, PT Bukit Makmur Mandiri Utama ( BUMA ). The Company recorded a US$10 million net profit for 1Q 2018, 56% lower YoY, mostly due to severe weather disruptions to operations that were running at higher capacity to meet growth target. HIGHLIGHTS OF CONSOLIDATED RESULTS (in US$M unless otherwise stated) Profitability 1Q18 1Q17 YoY EBITDA % EBITDA Margin 3) 34.0% 40.3% -6.3% Operating Profit % Operating Margin 3) 15.6% 25.8% -10.2% Net Profit % EPS (in Rp) Rp 17 Rp 38-56% Cash Flows 1Q18 1Q17 YoY Capex % Free Cash Flow 4) (22) % Balance Sheet Mar-18 Dec-17 Cash Position 1) Net Debt 2) Q 2018 HIGHLIGHTS QUARTERLY RESULTS (in US$M unless otherwise stated) Volume 1Q17 2Q17 3Q17 4Q17 1Q18 OB Removal (mbcm) Coal (mt) Financials 1Q17 2Q17 3Q17 4Q17 1Q18 Revenue EBITDA EBITDA Margin 3) 40.3% 35.7% 40.2% 38.2% 34.0% Operating Profit Operating Margin 3) 25.8% 20.4% 25.2% 23.0% 15.6% Net Profit (Loss) 24 (15) Overburden removal volume was 79.8 million bcm for 1Q 2018 vs million bcm for 1Q 2017, a 4% decline YoY. Whereas coal production was 9.7 million tonnes in 1Q 2018 vs million tonnes in 1Q 2017, a 5% decline YoY. The decline was mostly attributed to severe weather disruptions at the beginning of the year. Net revenues were somewhat flat at US$182 million for 1Q 2018 vs. US$181 million for 1Q EBITDA was recorded at US$57 million for 1Q 2018 vs. US$70 million for 1Q 2017, an 18% decline YoY despite increased average rate per unit due to additional distance. The decline was primarily due to higher costs (i) from running operations at a targeted capacity of over 10% above actual production, and (ii) from deploying additional resources to minimize production delays due to high rain hours. As a result, EBITDA margin was at 34.0% for 1Q 2018 as compared to 40.3% for 1Q Net profit was US$10 million for 1Q 2018, 56% lower compared to US$24 million recorded for 1Q 2017 as a result of the above. Capital expenditure was US$73 million for 1Q 2018, in preparation for the double-digit growth expected for the full year 2018, both from previously existing contracts and new contracts signed in Given the high capital expenditure and lower profitability from disrupted productions, the Company recorded a US$22 million net free cash outflow. As of March 31, 2018, consolidated net debt was US$530 million with consolidated net debt to EBITDA of 1.97x. The Company funds its capital expenditure from internal cash generation, leasing facilities and bank loans, all of which intended to maintain lowest cost of funding possible. The Company remains committed to deliver the expected profitable growth for 2018, and is working on optimizing all resources at hand to do so. 1

2 OTHER UPDATES A. NEW CONTRACTS In March 2018, BUMA entered into a new life-of-mine contract with PT Tanah Bumbu Resources ( TBR ), a subsidiary of Geo Energy Resources Limited ( Geo Energy ), SGX-listed integrated coal mining group, through whom BUMA works with its two other customers, PT Sungai Danau Jaya ( SDJ ) and PT Angsana Jaya Energi ( AJE ). The life-of-mine contract is expected to contribute a total volume of around 169 million bcm of overburden removal and 47 million tonnes of coal, bearing an estimated contract value of over Rp 7 trillion or equivalent to over US$500 million. In April 2018, BUMA signed an amendment agreement, extending its current contract with PT Angsana Jaya Energi ( AJE ) for another 3 years up to Volume is estimated at 37 million bcm of overburden removal and 12 million tonnes of coal, with estimated contract value of approximately over US$143 million. In April 2018, BUMA entered into 8-year mining services contract with PT Insani Baraperkasa ( IBP ) a subsidiary of an IDX-listed PT Resource Alam Indonesia Tbk. ( RAIN Group ). The contract carries potentials for extensions, and is estimated to provide 130 million bcm of overburden removal and 20 million tonnes of coal. The contract value is estimated at approximately US$340 million. The signing of IBP contract marks the beginning of a new relationship between BUMA and RAIN Group, an established coal mining group in Indonesia. With the additional 3 contracts signed in 2018, the Company brought its total order book from US$5.0 billion to a total of US$6.0 billion. BUMA remains under discussions on a few potential additional contracts with both new and existing customers, with some expected to be finalized in the near future. B. DEBT FINANCING In April 2018, BUMA signed an amendment to its existing loan facility from The Bank of Tokyo Mitsubishi UFJ, Ltd. ( BTMU ). The amended agreement has total facility of US$150 million, an increase of US$50 million from the original facility that was signed in February The amended facility maintains its interest rate of LIBOR + 3% p.a. As of March 31, 2018, consolidated outstanding debt was US$627 million, whereas net debt was US$530 million, with net debt to EBITDA ratio of 1.97x, which is expected to improve once profitability recovers to the targeted level.

3 Exhibit 1: Quarterly Production OVERBURDEN REMOVAL Exhibit 2: Net Debt mn bcm mn bcm Q17 2Q17 3Q17 4Q17 1Q18 COAL PRODUCTION x 3.40x 3.04x x 1.97x 1.74x Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Mar-18 1Q17 2Q17 3Q17 4Q17 1Q18 Net Debt Outstanding Debt Consolidated Cash Net Debt / EBITDA Exhibit 3: Consolidated Cash Flows 2) Operating CF FCF (35) (22) Q17 1Q % 33.4% Exhibit 4: Quarterly Profitability Trend 42.1% 38.5% 40.3% 40.2% 35.7% 38.2% % Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EBITDA Revenues EBITDA Margin 1) 1) Margins are based on net revenues excluding fuel. 2) Free cash flows is defined before debt service, and excludes financing proceeds. Operational cash flows is free cash flows, before capital expenditures. 3

4 DOID S CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME DOID S CONSOLIDATED STATEMENTS OF FINANCIAL POSITION In US$ mn (unless otherwise stated) 1Q18 1Q17 YoY Net revenues % Revenue excl. fuel % Cost of revenues % Gross profit % Operating expenses (11) (10) 15% Finance cost (12) (16) -25% Others - net % Pretax profit % Tax expense % Profit for the year % Other comprehensive income - net (0) (0) 101% Comprehensive income % EBITDA % Basic EPS (in Rp) 3) % In US$ mn (unless otherwise stated) Mar-18 Dec-17 YTD Cash and cash equivalents % Other financial assets - current % Trade receivables - current % Other current assets % Trade receivables - non-current % Fixed assets - net % Other non-current assets % TOTAL ASSETS 1, % Trade payables % LT liabilities - current % Other current liabilities % LT liabilities - non current % Other non-current liabilities % TOTAL LIABILITIES % TOTAL EQUITY % DOID S FINANCIAL RATIOS 1) DOID S CONSOLIDATED STATEMENTS OF CASH FLOWS 1Q18 1Q17 Gross margin 22.2% 31.4% Operating margin 15.6% 25.8% EBITDA margin 34.0% 40.3% Pretax margin 9.3% 20.6% Net margin 6.2% 13.7% In US$ mn (unless otherwise stated) 1Q18 1Q17 Net CF from Operating Activities Net CF from Investing Activities (28) 8 Net CF from Financing Activities 27 (18) Net change in cash & cash equivalents 12 7 Beginning balance cash & cash equivalents Effect of foreign exchange rate changes (1) 0 Ending balance cash & cash equivalents 2) ) Margins are based on net revenues excluding fuel. 2) Excludes other financial assets which consists of restricted cash in bank and current investments. 3) Reported EPS are translated into Rp using average exchange rate of Rp13,573 and Rp13,349 for 1Q18 and 1Q17, respectively. 4

5 BUMA S STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME BUMA S STATEMENTS OF FINANCIAL POSITION In US$ mn (unless otherwise stated) 1Q18 1Q17 YoY Net revenues % Revenue excl. fuel % Cost of revenues % Gross profit % Operating expenses (11) (9) 18% Finance cost (12) (16) -25% Others - net % Pretax profit % Tax expense % Profit for the year % Other comprehensive income - net (0) (0) 123% Comprehensive income % EBITDA % In US$ mn (unless otherwise stated) Mar-18 Dec-17 YTD Cash % Restricted cash in bank - current % Trade receivables - current % Due from related party - current % Other current assets % Trade receivables - non-current % Fixed assets - net % Other non-current assets % TOTAL ASSETS 1,114 1,052 6% Trade payables % LT liabilities - current % Other current liabilities % LT liabilities - non-current % Other non-current liabilities % TOTAL LIABILITIES % TOTAL EQUITY % BUMA S STATEMENTS OF CASH FLOWS In US$ mn (unless otherwise stated) 1Q18 1Q17 Net CF from Operating Activities 12 2 Net CF from Investing Activities (28) 21 Net CF from Financing Activities 27 (11) Net change in cash Beginning balance cash Effect of foreign exchange rate changes (0) (0) Ending balance cash 1) ) Excludes restricted cash in bank. 5