PT Toba Bara Sejahtra Tbk ( Toba ) Company Presentation Nine Months (9M2014)

Transcription

1 PT Toba Bara Sejahtra Tbk ( Toba ) Company Presentation Nine Months (9M2014) 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 Table of Contents 1 Corporate Events 2 Operational Highlights 3 Financial Highlights 4 Marketing Highlights 3

4 1 Corporate Events 4

5 Events in 9M 2014 McCloskey Conference Macquarie Mining Conference IHS Asia Coal Market Outlook 13 August 2014 Theme: Half-day event discussing key issues facing Asian coal market with focus on Indonesia and its supply/ demand outlook Toba Bara Role: Pandu Sjahrir acted as one of panelists who spoke on coal market situation post Presidential Election Macquarie Indonesia Commodities Conference September 2014 Theme: Mining Conference focusing on trends emerging in commodities markets and impacts on Indonesia. Toba Bara Role: Pandu Sjahrir acted as one of speakers with topic on New Paradigm for Coal Producers 5

6 2 Operational Highlights 6

7 Prime Location Gives Significant Cost Advantage Major City Jetty Transhipment Point TMU IM Hauling Road Muara Berau Samarinda Major city is less than 50 km Furthest pit to jetty 25 km, with closest one ~5 km ~55 km (total ~120 km) TMU Kutai Energi ABN IM IM jetty ABN jetty ~5 km Close proximity transhipment point & jetty Makassar Strait Adjacent locations for all 3 mines Balikpapan ~65 km Muara Jawa Toba owns all infrastructures (coal processing plant, overland conveyors, and jetties), giving significant operating leverage vs other concessions in surrounding areas 7

8 Infrastructure & Operational Capabilities Short Coal Hauling Distance < 5km CPP Ramp Up to 6Mn Tons/Annum (TPA) Conveyor for TMU & Others ABN INDOMINING TMU TMU IM ABN Short Coal Hauling Distance 4km Hauling Road to IM TMU High Built CPP Cap 10 Mn TPA Toba s Concessions Loading Speed of 1,800 TPH Mine Ops Commenced at Block 4 Underpass Infrastructure Integrate CPP Ops with IM 8

9 Solid Operating Track Record Yearly Coal Production Mt : In Million Tons TMU IM ABN Production volume rose significantly from only ~800,000 tons in 2008 to ~6.5 mn tons in 2013, booking CAGR growth of 52.2% over relatively short period of 5 years IM and TMU both contributed to Company s 2013 total production s higher volume growth of ~40% and ~260% respectively e Operational Data Cumulative Production achievement >10 million tons Cumulative Production Achievement >20 million tons Production Volume (Mt) ABN IM TMU Stripping Ratio (x) Note: 2014e: Toba s Production target in M14 Stripping Ratio (SR) decreased from 14.9x in 2012 to 13.4x in 2013 resulting in lowered mining costs TMU s production solidly increased from quarterly runrate of ~84,000 tons in 1Q13 to high of ~420,000 tons in 4Q13 post earlier-than-expected completion of hauling road from TMU-IM via ABN in 2Q13 9

10 Company Operational Performance in 9M14 Quarterly Production & Stripping Ratio (SR) Production in Thousand Tons 2,000 1,500 1, x 13.6x 13.5x 13.8x 12.7x 12.7x 12.5x 1,298 1,501 1,802 1,950 1,911 2,160 2,328 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Production volume ('000) Stripping Ratio (SR) 20x 15x 10x 5x Quarterly production run-rate of minimum 1.9 Mt has been maintained for last 4 consecutive quarters due to more streamlined mining operations 3Q14 volume reached ~2.3 Mt, up from 1.9 Mt in 1Q14 SR normalized to 12.5x in 3Q14, down q-o-q from 13.8x in 2Q14, and slightly down y-o-y from 12.7x in 3Q13 Production Summary MT: Million Ton 9M13 9M14 Change Comment Production Volume (Mt) % Production volume grew y-o-y significantly from 9M13 to 9M14 mainly driven by border mining at IM and production ramp-up at TMU. Sales Volume (Mt) % Sales volume grew significantly in line with production volume growth SR (x) % SR continued to fall resulting in lower mining cost 10

11 ABN Operational Performance IM ABN Quarterly Production & Stripping Ratio Production in Thousand Tons 1,500 Production volume ("000) Stripping Ratio 20x TMU 16.6x 14.2x 12.7x 13.1x 14.1x 14.9x 12.4x 15x 1,000 10x PT Kutai Energi 500 Dump Distance (m) ,188 1,101 1,003 1,213 1,273 5x 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 1,719 1,864 1,843 1,779 1,894 1,842 1,853 Key Highlights Quarterly production rose from 1.0 mn Mt in 1Q14 to 1.2 mn Mt in 2Q14 and to 1.3 mn Mt in 3Q14, while quarterly run-rate has stabilized at average of mn Mt per quarter over past 4 consecutive quarters Higher q-o-q SR from 14.1x in 1Q14 to 14.9x in 2Q14 but normalized to 12.4x in 3Q14 SR is expected to be maintained in 4Q14 11

12 TMU Operational Performance IM Quarterly Production & Stripping Ratio Production in Thousand Tons ABN 450 Production volume ('000) Stripping Ratio x x PT Kutai Energi x Note: Hauling road x 12.7x 10.3x 11.1x 11.4x 11.7x 11.7x Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 15x 5x Key Highlights Post completion of hauling road at TMU to ABN in 2Q13, production run-rate significantly rose from low of 80-90K per quarter up to average 380K per quarter over last 3 quarters of 1Q14, 2Q14, and 3Q14 SR in 3Q14 remained same as 2Q14 SR at 11.7x SR is expected to be maintained in 4Q14 12

13 IM Operational Performance Quarterly Production & Stripping Ratio Production in Thousand Tons TMU ABN x Production volume ('000) 14.7x 13.7x 12.7x 12.8x Stripping Ratio 12.8x 13.3x 20x 15x 10x PT Kutai Energi 250 5x Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 0x Dump Distance (m) 1,698 1,662 1,728 1,570 1,904 1,751 1,957 Key Highlights Quarterly production run-rate stabilized at 550K level throughout 1Q14, 2Q14, and 3Q14, up from quarterly run-rate of c k for 1Q and 2Q13 9M14 production volume rose ~80.0% y-o-y from 980K in 9M13 SR slightly rose 4.0% q-o-q to 13.3x in 3Q14 due to pre-stripping activity but it fell on y-o-y basis from 14.7x in 3Q13 to 13.3 in 3Q14. SR is expected to be maintained in 4Q14 13

14 3 Financial Highlights 14

15 Evolution of Quarterly FOB Cash Cost from Quarterly FOB Cash Cost In US$/ton FOB Cash Cost 17.7x 16.6x 15.1x 14.2x 13.6x 13.5x 13.8x x 12.7x x 12.5x Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 FOB cash cost Adj. FOB cash cost SR 18x 15x 12x 9x 6x 3x 0x Constant convergence between FOB cash cost and adjusted FOB cash cost underline normalization of SR over quarterly period resulting from more efficient mine operations Notes: (1) FOB Cash Cost = COGS including royalty and selling &marketing expense depreciation and amortization (2) Adj. FOB cash costs = COGS, including selling & marketing expense and royalty depreciation & amortization of exploration & development and excluding deferred stripping cost 15

16 9M 2014 Highlights Production (in Mt) 1 Production volume expanded 39.4% y-o-y from 4.59 mn tons in 9M13 to 6.40 mn tons in 9M14 on the back of significantly higher volume contributions from ABN, TMU and IM 4.59 Total % TMU IM ABN 2 FOB cash cost was lowered by 5.4% y-o-y, resulting from lowered overall SR by 3.5% y-o-y from 13.7x in 9M13 to 13.2x in 9M14 9M13 Cash Cost (in US$/ton) 9M Average TMU IM ABN 9M13 5.4% 9M14 3 EBITDA surged by 44.0% y-o-y from US$ 40.2 mn in 9M13 to US$ 57.8 mn in 9M14 EBITDA (US$ Mn) 40.2 Total % TMU IM ABN 9M13 9M14 16

17 9M 2014 Financial Performance Sales US$ million EBITDA US$ million Net Profit (a) US$ million M12 9M13 9M14 9M12 9M13 9M14 9M12 9M13 9M14 Note: (a) Net Income before minority interest (b) Figures are unaudited Despite declining NEWC Index price trend on y-o-y basis from 9M12 to 9M13 and to 9M14, sales value increased 5.0% from US$ million in 9M12 to US$ million in 9M13, and 31.0% to US$ million in 9M14 EBITDA surged 78.1% y-o-y to US$ 40.2 million in 9M13, and 44.0% y-o-y to US$ 57.8 million in 9M14 resulting from higher sales volume and better mine plan execution, hence lowering mining costs in process Total profit for the period in 9M13 stood at US$ 19.3 million, up 21.7% from 9M12. Meanwhile from 9M13 to 9M14, profit increased y-o-y by 59.8% to US$ 30.9 million 17

18 Financial Performance Financial and Operational Highlights All figures are in million US$ unless otherwise stated 2Q14 3Q14 Changes 9M13 9M14 Changes Operation Sales Volume Mn ton % % Production Volume Mn ton % % Stripping Ratio (SR) x (9.4%) (3.5%) FOB Cash Cost* US$/ton % (5.4%) NEWC Index Price US$/ton (6.4%) (14.6%) Average Selling Price (ASP) US$/ton (1.1%) (5.0%) Financial Performance Profit (Loss) 2Q14 3Q14 Changes 9M13 9M14 Changes Sales US$ Mn % % Cost of Goods Sold US$ Mn % % Gross Profit US$ Mn % % Operating Profit US$ Mn % % EBITDA** US$ Mn % % Profit for the Period US$ Mn % % EBITDA/ton US$/ton (2.3%) % Capex US$ Mn % (33.5%) Despite weaker ASP, sales rose 31.0% y-o-y to US$ mn in 9M14 due to 37.9% sales volume growth EBITDA increased 44.0% y-o-y to US$ 57.8 mn in 9M14 attributable to increased production and lower cash cost by 39.4% and -5.4% respectively On q-o-q, EBITDA grew 13.4% to US$ mn in 3Q14 from US$ mn in 2Q14 Financial Ratios Gross Profit Margin % 16.9% 15.3% 17.7% 17.1% EBITDA Margin % 13.8% 13.7% 13.5% 14.8% Operating Profit Margin % 11.8% 10.8% 9.8% 12.3% Note Figures are unaudited *FOB Cash Cost = COGS including royalty and selling expense depreciation and amortization **EBITDA = Gross Profit selling expenses G&A + depreciation and amortization 18

19 Balance Sheet Consolidated Balance Sheet In Thousand US$ Dec-13 Sep-14 Changes (%) Cash and Cash Equivalents 63,302 64, Fixed Assets 49,033 47,091 (4.0) Others 199, , Total Assets 311, , Trade Payable 69,265 85, Interest Bearing Debt 55,858 57, Others 56,044 41,692 (25.6) Total Liabilities 181, , Shareholders Equity 130, , Net Debt to EBITDA In Million US$ Account Payable Days Total assets rose 5.8% to US$ mn in 9M14 from US$ mn as per end 2013 Over same period, total liabilities increased 2.4% to US$ mn due to higher operational activities resulting in higher payables to counterparties, while offset by lower prepayments from customers Total equity in 9M14 increased 10.5% to US$ mn from US$ mn, attributable to additional income for the period Q Q Q Q Q 2014

20 5 Marketing Highlights 20

21 Marketing Performance NEWC Index & ASP (in US$/ton) Sales Volume, Y-o-Y (in Mn Tons) % TMU IM ABN M14 NEWC ASP 9M13 9M14 Product Contribution (GAR) Marketing Highlights 1% 1% 9% 16% 4200 GAR 4700 GAR 9% 5200 GAR 5600 GAR 5800 GAR Average NEWC Index declined by 14.6% from US$ 85.70/ton in 9M13 to US$ 73.15/ton in 9M14 Sales volume increased by 37.9%, y-o-y from 4.41 mn tons in 9M13 to 6.08 mn tons in 9M14 ~90-95% of 2014 sales volume has been secured Total sales are mainly contributed from 4700 GAR 29% and 5600 GAR products 65% 5900 GAR 21

22 9M14 Marketing & Sales Quality & Diversified Buyers Export Destinations by Country Major Customers 11.9% 60.0% 50.0% 54.0% 15.1% 18.3% 36.2% China Taiwan Korea India Others 40.0% 30.0% 20.0% 10.0% 28.9% 21.8% 18.8% 16.4% 10.0% 9.1% 18.5% 0.0% Glencore Mercuria Vitol Dragon Energy Trafigura Others End Buyers Note: Total Sales 9M14: 6,08 Mt Major customers provide the stable business support for Toba s marketing Initiatives Undertaken: Maintaining well-diversified customer base consisting of mainly reputable international traders, while also growing the no of end-users Generating good quality sales backed by quality buyers and favorable terms of payment Achieved tighter discount rate to reference market price with ASP of US$ 65-68/ton 22

23 Average Selling Price Analysis Sales Contract Discount to NEWC-Adjusted Selling Price 5-10% US$ From double digit, discount has narrowed to single digit relative to current price level 90-95% Contracted Non Contracted -6% Majority of 2014 sales volume has been contracted with buyers at fixed price Newcastle (6,322 GAR) Average Selling Price - FOB Vessel (5,600 GAR) 23

24 THANK YOU