ANALYST BRIEFING 1Q19 PERFORMANCE RESULTS Jakarta, 14 th May 2019
Agenda 1 INTRODUCTION 2 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 3 2 4 FINANCIAL REVIEW 4 2 4 5 5 QUESTION & ANSWERS 2
Highlights of 1Q19 results Coal Sales: 6.0 Mt Down 1.4 Mt Up 1.6 Mt -19% Q-Q +36% y-y Unit: US$ million 1Q18 Q-Q 1Q19 4Q18 y-y -24% 453 592 378 +20% Total Revenue 21% 26% 29% -5% -8% Gross Profit Margin 57 111 88 -49% -35% EBIT 132 99 -45% -27% 72 EBITDA 58 -37% 39 62 -33% Net Income $75.1 $83.6 -5% -15% $71.1 ASP (USD/ton) 3
1Q19 highlights A premium coal producer with 5.8 Mt 6.0 Mt $453 M growing business segments along Coal production Coal sales Solid revenue the coal value chain volume; better volume; +1.6 Mt growth than expected on a y-y basis +20% y-y 6.0 Mt 5.8 Mt 13.2 x Operational Coal sales volume, Coal production volume, S/R increased in 1Q19 to performance +36% y-y driven by better than expected optimized reserves, will higher coal production because of good weather normalize gradually 0.6 Mt 69 ML 7.5 Mbcm Supporting business Coal trading volume, Fuel distribution volume, In-house contractor, +172% y-y +146% y-y OB volume in-line with growth capacity building target $453 M $72 M $39 M Financial performance Consol. revenue EBITDA Net income +20% y-y -27% y-y -33% y-y 4 4
ITM Digitalization Transformation 1. Business – Impact Driven Digital Solutions Business-led with clear impact targets for productivity or growth Customer-back solutions linked to key business processes and use cases 2. Technology – Innovative Technology Architecture ITM Digital Multi-speed development Transformation Access to ecosystems (e.g. startups, established vendors, research institutes) 3. Organization – Agile DNA Test and learn, fail fast & tweak – hack-a- ton method New digital roles & skills (e.g. data scientist, IT scrum master) Upgraded talent capabilities and mindset: digital capability center, digital academy 5 5
Transformation Supported By Digital Capabilities Center Build awareness of applicable technologies by engaging and exciting external partners Incubate and develop new Build capabilities, and digital use cases by fostering establish digital ways of a mindset of innovation , and working by setting up a building cross-functional teams distinctive workplace that can compete for unique talent Commercialize the services and IP, and invest in start-ups to unlock new sources of growth and revenue A center of collaboration and learning for ITM, generating a pipeline of innovation and delivering value through improved ways of work, aligned to Banpu DCC principles 6 6
Annual General Meeting of Shareholders AGMS 2019 HIGHLIGHTS BOARD OF COMMISIONERS Somsak Sithinamsuwan Prof. Djisman Simandjuntak Somruedee Chaimongkol President Commissioner & Commissioner Commissioner Independent Mahyudin Lubis Fredi Chandra Prof. Djoko Wintoro, PhD Independent Commissioner Commissioner Independent Commissioner (New member) Annual General Meeting of Shareholders BOARD OF DIRECTORS conducted on 25 Mar 2019 declared total final dividend of USD 261.5 Mln or 99.8% of the Company’s 2018 Net Profit after tax, which payment are as follows: In the amount of USD 102.5 Mln or Kirana Limpaphayom Jusnan Ruslan Stephanus Demo Wawin A.H Bramantya Putra equal to IDR 1,420 per share has been President Director Director Director Deputy President Director distributed as interim dividend on 16 Nov 2018. The remaining amount of USD 159 Mln or equivalent to IDR 2,045 per share was paid on 23 Apr 2019. Yulius K.Gozali Mulianto Ignatius Wurwanto Padungsak Thanakij Director Director Director Director 7 )
Agenda 1 INTRODUCTION 2 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 3 2 4 FINANCIAL REVIEW 4 2 4 5 5 QUESTION & ANSWERS 8
Operational Summary 2019 2019 TARGET: 23.6 Mt* OUTPUT TREND Unit: Mt East Kalimantan 6.4 6.4 5.8 5.6 5.2 INDOMINCO Bharinto 12.5 Mt Jorong 4.1 Kitadin Bunyut Port Trubaindo TRUBAINDO 4.9 Mt EMBALUT 1.4 Mt Indominco Samarinda BHARINTO 3.1 Mt Balikpapan 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19e 1Q18 3Q18 2Q18 4Q18 1Q19 2Q19e East Central Kalimantan Kalimantan Avg.S/R 12.0x 10.8x 10.8x 10.5x 13.2x 12.9x (bcm/t) Palangkaraya COMMENTS South Kalimantan Banjarmasin 1Q19 total output was higher than target due to good weather condition at Indominco and Trubaindo mine. JORONG 1.7 Mt 1Q19 strip ratio slightly higher as a result of pre- stripping activities during early quarter. Jorong Port To optimize coal reserves, average strip ratio in 2019 is expected to be higher than 2018. *) Subject to further government approval 9
Indominco Mandiri SCHEMATIC OUTPUT TREND 2019 target: 12.5 Mt Unit: Mt Operations Ports 3.9 3.7 Hauling 3.3 0.5 3.2 0.4 Stockpile West Block 2.8 0.5 0.5 2.2 W Block 0.1 ROM Crusher Mine stockpile 0.1 stockyard 3.4 3.3 East Block 2.7 2.7 2.7 E. Block 2.1 Bontang City 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19e 35Km Sea conveyor Avg.S/R 11.3x 11.1x 10.5x 13.9x 13.2x 12.5x (bcm/t) 2.5Km Asphalt haul - W. Block : 14.9x 26.5x 24.3x 27.3x 25.0x 17.1x road - E. Block : 12.2x 10.4x 9.3x 9.7x 13.7x 11.0x Santan River Post Panamax Port stock yard COMMENTS 95,000 Inland DWT conveyor 4km 1Q19 production was higher than target due to good weather condition affecting the mine production. Strip ratio in 1Q19 higher than previous quarter as a result of pre-stripping activities before gradually 0 2 4 6 8 10 km decline in the following quarters. Higher strip ratio in 2019 due to optimized coal reserves. 10
Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND 2019 target: TCM 4.9 Mt Unit: Mt Mahakam BEK 3.1 Mt River 2.1 2.0 Bunyut 1.8 1.8 1.7 Port 1.5 0.7 0.7 0.7 0.7 0.7 Bharinto Product coal East Kalimantan 0.5 conveyor, stacking, stockpile 1.4 1.3 40km 1.1 Trubaindo 1.0 1.1 1.1 Mine to port Operations Barge Port 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19e Kedangpahu Hauling River S/R (bcm/t) PT. Trubaindo 13.5x 11.5x 12.7x 11.1x Stockpile - Trubaindo : 12.9x 13.2x 10.6x 10.0x 8.3x 10.2x 12.2x 10.3x - Bharinto : ROM stockpile North COMMENTS Block Bharinto 60km South Block 1 Trubaindo: south west of (Dayak Besar) Trubaindo North 1Q19 production achieved as according to target. Block Strip ratio in 1Q19 higher than last quarter due to pre- PT. TIS stripping activities. South Block 2 (Biangan) Bunyut port expansion to accommodate the increase in Melak group production. 0 5 10 15 20 25 Bharinto: km PT. Bharinto 1Q19 production achieved above the target. PT TRUST hauling operation will start in 2019. 11
Kitadin Embalut and Tandung Mayang SCHEMATIC OUTPUT TREND 2019 target: EMB 1.4 Mt Unit: Mt 0.3 0.3 0.3 0.3 0.3 TD. Mayang 0.2 Bontang city IMM WB IMM EB ROM Bontang 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19e Port stockpile Embalut S/R (bcm/t) 5km Mine to port - Embalut : 11.9x 11.1x 11.2x 9.5x 9.8x 12.8x Embalut Port Mahakam Samarinda River to Muara COMMENTS Berau Kitadin Embalut: East Kalimantan to Muara Jawa 1Q19 production achieved as according to target. Finalization of feasibility study to extend the Operations Balikpapan potential area. Ports Hauling Kitadin Td.Mayang: Stockpile Continue mine closure activities including mine 0 2 4 6 8 10 km Crusher rehabilitation. 12
Jorong SCHEMATIC OUTPUT TREND 2019 target: 1.7 Mt Unit: Mt 0.3 0.3 0.3 0.3 0.4 0.3 Pelaihari 2Q18 3Q18 4Q18 1Q19 2Q19e 1Q18 Haul road S/R (bcm/t) : 6.1x 6.1x 6.5x 6.5x 10.5x 8.1x 20km COMMENTS Jorong 1Q19 production achieved according to target. Coal Strip ratio in 1Q19 higher than previous quarter due Operations terminal Java Sea to pre-stripping activities. Barge Port Hauling Additional drilling and coal price improvement Stockpile resulted in potential additional reserves for better 0 5 10 15 20 25 km mine closure activities. 13
Agenda 1 INTRODUCTION OPERATIONAL 2 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 3 2 4 FINANCIAL REVIEW 4 2 4 5 5 QUESTION & ANSWERS 14
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