PT Toba Bara Sejahtra Tbk ( “ Toba ” ) PT Toba Bara Sejahtra Tbk (TOBA) Company Presentation Company Presentation April 2017 1 Full Year 2017
Disclaimer These materials have been prepared by PT Toba Bara Sejahtra Tbk (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
Table of Contents 1 Company Profile 2 2017 Performance Highlights 3 Strategy to Venture into Power i Sulbagut-1 Project ii Sulut-3 Project 3
Performance Highlights Performance Highlights 2 Company Profile 1 4
PT Toba Bara Sejahtra Tbk in Brief Coal Mining Palm Oil Plantation & Mill East Kalimantan Kalimanta n Location: Kutai Kartanegara, Kalimantan Timur Hak Guna Usaha (HGU) covers 8,633 ha. where 2,701 ha has been planted Location: Kutai Kartanegara, Kalimantan Timur Power Generation Total Concession : 7,087 ha Gorontalo GLP and MCL established in February 2016 and North Sulawesi March 2017 respectively for development of steam (coal) fired power plant project (CFPP) with capacity of 2x50 MW each 25 year Power Purchase Agreement (PPA) through Independent Power Producer (IPP) scheme with PLN as single offtaker 5
Ownership Structure Highland Strategic PT Toba Davit Togar PT Bara Makmur PT Sinergi Roby Budi Public *) Holdings Pte. Ltd. Sejahtra Pandjaitan Abadi Sukses Utama Prakoso 61.91% 10.00% 0.75% 6.25% 5.10% 3.64% 12.35% *) Incl. Baring Private Equity as anchor investor 99.60% 99.99% PT Toba Bumi Energi ( “ TBE ” ) 90.00% 51.00% 90.00% 60.00% 99.99% 99.99% GLP’s PPA with 20-year Production IUP-OP extension 13-year IUP-OP Plantation permit MCL’s PPA with PLN (1) for 25- year PLN (1 for 25- year Operation Mining was completed in expires in of PT Perkebunan Permit (IUP-OP) March 2013 (First December 2023 Kaltim Utama I contract contract License expiring in out of 2 (PKU) expires in December 2029 extensions: in 2036 IUP-P for 2023 with tenor of downstream 10 years each) processing 2,990 ha 683 ha 3,414 ha ~60 ha ~40 ha 8,633 ha (Right to Area Use Land) Reserves: 45 MT – Off-take (take or Reserve: 13.1 MT Reserves : 5.8 MT Planted Area: Off-take (take or – JORC (2018) – JORC (2018) pay) by PLN for 25 JORC (2018) 2,701 ha pay) by PLN for 25 Reserve years years Resources: 78 MT – Resources: 54.6 Resources: 20.3 MT – JORC MT – JORC JORC (2018) (2018) (2018) Note: On 4th February, 2016, the Company has entered into sales and purchase agreement with Toba Sejahtera to acquire Toba Sejahtera’s 20% ownership in GLP (Subject to approval from PLN) ) 6
Strategic Mine Locations Toba owns all infrastructures (coal processing plant, overland conveyors, and jetties) giving significant operating leverage vs other concessions in surrounding areas 7
Infrastructure & Operational Capabilities CPP Capacity : 6 Mn Short Coal Hauling Conveyor to Jetty Tons/Annum (TPA) Distance < 5km Short Coal Hauling Distance ~4km High Built CPP Cap up to 10 Mn TPA Hauling Road to Connect with ABN Overland & Barge Loading Jetty: Speed of 1.800 TPH TOBA ’s Concessions Note : PT Adimitra Baratama Nusantara (ABN) PT Indomining (IM) PT Trisensa Mineral Utama (TMU) ROM Stockpile 8
Material Information Contracts and Awards Earned in 2017 PPA signing with PLN Engineering Procurement Contract (EPC) Financing Date with for Sulut-3 Power signing with SEPC* for Sulbagut-1 Power PLN for Sulbagut-1 Power Project Project Project 7 April 2 May 7 July 11 July 14 July Special Transaction Loan Facility Project Financing Signing with and Non-Cash Loan of US$ 50 mn Bank Mandiri worth US$ 171.8 mn with Bank Mandiri for Sulbagut-1 Power Project * Shanghai Electric Power Construction Co. Ltd. ABN received Award from Customs ABN received Gold PROPER Enviromental Office of East Kalimantan as “Ideal” Award from Provincial Govt for 3 Company consecutive years TMU received Pratama Award from IM and TMU received Green PROPER Ministry of Energy. Mines. & Enviromental Award for 2 consecutive years Resoucres (MEMR) IM received certificates for ISO 14001. OHSAS 18001 and ISO 9001 9
2017 Performance Highlights 2 10
Production Profile Amidst coal price volatility over the past several years and to sustain the Company’s survival mode, Toba has undergone cost efficiency initiatives as shown by stable EBITDA margin EBITDA Margin Toba Consolidated Production NEWC Price 32.9% 30.1% 24.1% 15.4% 15.2% 13.9% 13.5% 5.7% 10 140 9 8.1 Mt 120 8 $99 $97 $121 $89 6.5 Mt 100 7 6.1 Mt 5.6 Mt 5.5 Mt 6 $71 5.2 Mt 80 5.0 Mt $85 5 4.1 Mt 60 4 $66 $59 3 40 2 20 1 0 0 2010 2011 2012 2013 2014 2015 2016 2017 11 Source: Coal price from GlobalCoal
Operational Performance Yearly Production & SR Production in Million Tons 14.3x 13.7x Q-o-q production volume has 12.6x 12.6x 12.0x - 13.0x remained stable and in line with 12.0x 2017 quarterly guidance of 1.25 1.25 - 1.50 1.50 mn tons 1.4 1.4 1.3 1.2 1.1 4Q17 SR stabilized at 12.0x, on track of achieving annual SR guidance of 12x - 13x Higher SR in 2Q17 impacted by 4Q16 1Q17 2Q17 3Q17 4Q17 Quarterly wet weather Guidance TMU IM ABN SR (Consolidated) Production Summary MT: Million Tons Change 2016 2017 Comment Production Production volume in 2016 stabilized at 5.0 mn tons in 5.5 5.0 (9.1)% Volume line with mine plan Sales 5.7 Sales volume tracked its 2017 production volume 4.8 (15.8)% Volume SR edged up due to wet weather in 2Q17, but in line with 12.9 13.1 1.6% SR (x) mine plan 12
Realization Consolidated Full Year 2017 “Sustainability & Resilience” Δ % FY16 Operational FY17 Focused on profitable production output NEWC Index US$/ton 66.0 88.5 34.1 % ASP US$/ton 45.4 61.1 34.6 % through optimization of : Production Vol mn ton 5.0 (9.1) % 5.5 • Infrastructure and connectivity sharing Sales Vol mn ton 5.7 4.8 (15.8) % (hauling road and coal processing plant) 12.9 13.1 x 1.6 % Stripping Ratio • Joint mine plan FOB Cash Cost (a) US$/ton 34.5 40.0 15.9 % • Coal sale pricing driven by relationship. Δ % Financial FY16 FY17 consistency in scheduled delivery and US$ mn 258.3 310.7 Sales (b) 20.3 % product quality 39.2 74.8 90.8 % EBITDA (c) US$ mn • Well-diversified market destinations Net Profit US$ mn 14.6 41.4 183.6 % and customer base 7.1 115.5% EBITDA/Ton (d) 15.3 US$/ton Note: Financial Ratios FY16 FY17 (a) FOB Cash Cost = COGS including royalty and selling expense – depreciation and amortization 30.3% 20.6% Gross Profit Margin (b) Includes profit from construction of Sulbagut-1 power project (based on accounting treatment PSAK 34 and ISAK 16) EBITDA Margin 15.2% 24.1% (c) EBITDA = Gross profit – selling expenses G&A + depreciation and 13 amortization (d) EBITDA/ton = Coal mining business only
Evolution of FOB Cash Cost Quarterly FOB Cash Cost In US$/ton 14.3x 140 13.8x 13.8x 13.7x 15x 12.8x 12.5x 12.6x 12.6x 12.4x 12.4x 12.1x 12.0x 12.0x 120 12x 94.7 94.5 100 81.5 79.7 98.2 9x 80 67.3 65.8 63.8 59.6 59.0 52.6 51.5 50.3 60 6x 51 40 46 42 41 41 41 41 38 37 3x 35 34 35 34 20 50 47 43 41 38 35 35 35 34 37 40 41 42 0 0x 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 FOB cash cost Adj. FOB cash cost NEWC SR Despite fluctuation in NEWC price, TOBA has maintained relatively stable SR and cash cost through proper mine planning and cost management initiative Although cash cost rose 18.8% from 2Q16 to 4Q17, coal price increased much higher by 90.5% over same period, hence reflecting the still higher ASP expansion over cash cost rise itself 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 14 excluding deferred stripping cost
Recommend
More recommend
