PUBLIC EXPOSE
PT Indika Energy Tbk.
26 April 2018
45 Tahun #KerjaMembangunBangsa
PUBLIC EXPOSE PT Indika Energy Tbk. 26 April 2018 Term and - - PowerPoint PPT Presentation
45 Tahun #KerjaMembangunBangsa PUBLIC EXPOSE PT Indika Energy Tbk. 26 April 2018 Term and conditions This presentation material has been prepared by Indika Energy Tbk. (the Company) to support its Public Expose. Individuals who receive
PT Indika Energy Tbk.
26 April 2018
45 Tahun #KerjaMembangunBangsa
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This presentation material has been prepared by Indika Energy Tbk. (“the Company”) to support its Public Expose. Individuals who receive this material or participate in this meeting or discussion, agree not to reproduce them in any form whatsoever, anywhere, and it is prohibited to use any of the material contained in these materials in an unofficial capacity or to publish them. In addition, the information contained in these materials may contain forward-looking statements that reflect the Company’s current beliefs, taking into consideration future events and financial performance. These beliefs are based on estimates and actual assumptions on the subjects of business, the economy and competitive uncertainty which may change from time to time and in certain cases are outside of the control of the Company and its Director. No guarantee can be given that these future events will take place, or that projects will be achieved,
This material is not an offer or request related to purchases or sales of any type of financial instrument. There is no representation or guarantor, whether expressly stated or implied, in relation to the accuracy, completeness or reliability of the information contained in this material, nor can this material be regarded as a complete statement or summary of the growth of the capital market. This material may not be the basis of consideration for the recipient to perform any act of purchase or sale of any type of financial instrument, Any opinion contained in this material may be amended from time to time without prior notice and may differ or even run contrary to the
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1972 1973 1982 1993 1994 1995 1998 2002 2011 2012 2014 2010 2016 2017 2009 1989 1991 2007 2000 2005
Oil and gas Tripatra’s Arun project Oil and gas Inception of Petrosea Coal mining Inception of Kideco Logistics Inception of Kuala Pelabuhan Indonesia Energy Inception of Indika Energy Petrosea’s Babo airstrip upgrade in Papua Infrastructure Inception of Tripatra Oil and gas Petrosea’s Timika Airstrip Infrastructure Petrosea’s Pagerungan Besar Gas Field Oil and gas Inception of Multi Tambangjaya Utama Coal mining Inception of Cirebon Electric Power - the first internationally tendered power project after Asian financial crisis Power MBSS be the 1st company to implement dispatch and demurrage clause Shipping Inception of Mitrabahtera Segara Sejati Shipping Logistics Inception of POSB
2008
Energy IPO of Indika Energy Tripatra’s Banyu Urip - Cepu EPC1 Oil and gas Tripatra’s Senoro LNG Oil and gas CEP 1 inauguration - enviro-friendly supercritical technology Power Tripatra’s Jangkrik development project Oil and gas Inception of Indika Logistics Logistics Petrosea’s inauguration as one of Bonded Logistic Center (PLB) Logistics Tripatra’s Tangguh LNG expansion project Oil and gas Expansion of Petrosea’s bonded logistics center in Papua Logistics Tripatra’s Gunung Salak geothermal project Renewable Inception of Indika Foundation
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*Companies within Indika Energy Group being mentioned on this slide are non-exhaustive
Energy Services Energy Infrastructure Energy Resources PT Indika Energy Tbk. 1 2 3
lowest cost coal producers
reserves
services company
coal producers
and power plant development
capabilities
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Proven track record Professional integrity Local know-how International partners Overburden removal Port services Production All-weather hauling Barging & shipping End-use in power plant Crushing Resources ownership
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*Companies within Indika Energy Group being mentioned on this slide are non-exhaustive
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Source: Platts & US Energy Information Administration
USD/ton USD/barrel
68.4 95.6
19 Apr 2018 US$/ton US$/barrel WTI Crude Oil Price Newcastle Coal Price Index 70 140 2010 2011 2012 2013 2014 2015 2016 2017 2018
2011 Average US$ 121.3/ton US$ 94.9/ltr 2012 Average US$ 97.7/ton US$ 94.1/ltr 2013 Average US$ 84.9/ton US$ 98.0/ltr 2014 Average US$ 70.36/ton US$ 93.2/ltr 2010 Average US$ 99.2/ton US$ 79.7/ltr 2015 Average US$ 58.0/ton US$ 48.7/ltr 2016 Average US$ 61.8/ton US$ 43.3/ltr 2017 Average US$ 88.4/ton US$ 50.8/ltr
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Indika Energy acquired 45% additional stake of Kideco, now total 91%
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Issuance of US$575 million Senior Notes
− Coupon interest 5.875% with re-offer yield 6.125% − 7NC4: 7-year tenor (due in 2024), non-callable for 4 years
lowest coupon/yield ever issued by Indika Energy since 2007
Indonesia
THE BEST HIGH YIELD BOND The Asset Regional Awards 2017
“One of the largest demand for Indonesian high yield corporate in 2017, helps facilitate the transformation of Indika Energy’s credit profile with a rating upgrade from Moody’s Investors Service” The Asset
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12 December 2017
Energy's credit profile following the acquisition of an additional stake in Kideco
Indika Energy to address its lumpy debt maturities
12 December 2017
cash flow generation at Kideco
2018-2019 with consolidated leverage of around 3.4x-3.6x
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US$ million
Revenues
863 1,110 1,097 775 1,099 2013 2014 2015 2016 2017 6.2% US$ million
Net Profit After Tax
US$ million
Core Profit
94
335 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
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2014 – April 2018
IPO: Rp 2,950 (11 June 2008) Highest: Rp 5,400 (4 January 2011)
500 1,000 1,500 2,000 2,500 3,000 3,500
2014 2015 2016 2017
Latest: Rp 3,660 (20 Apr 2018) Lowest: Rp 106 (12 Jan 2016)
In the last 27 months
4,000 4,500 5,000
2018
INDY reentered LQ45 in Feb 2018
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in East Kalimantan, for the exclusive use of ExxonMobil
Indika Energy, through subsidiary company Kariangau Gapura Terminal Energi (KGTE), will invest US$ 108 million to build a terminal to store fuel products in Kariangau, East Kalimantan
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Honest with oneself, others and one’s work at every moment by upholding prevailing ethical standards and legal norms
Achievement as the measure of success and the motivation to do what is best for the company
Viewing diversity as an asset to the company and accepting, valuing, completing and strengthening one another as a solidly unified entity
Actively contributing and collaborating based on trust and shared interests rather than personal interests
Highly concerned for the environment and community, and contributing added value as well as contributing to the prosperity of the society
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Founded by: PT Indika Energy Tbk. on 15 February 2017 Name: Yayasan Indika Untuk Indonesia (Indika Foundation) Mission: Rooted in Indonesian values, Indika Foundation aims to build resilient Indonesians, capable of unleashing their potentials
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Conviction to live in the society with full integrity, esprit de corps of being the citizen
values of Pancasila and UUD ‘45
The spirit and belief that diversity is a unifying strength, hence empathy and mutual respect without any primordial discrimination is practiced in a peaceful society
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development for youth and women in Mariso, Makassar, South Sulawesi
program, which provides scholarships for the children of Indika Energy Group employees
Margomulyo, Balikpapan, East Kalimantan
collaboration with SabangMerauke
multi-commodities farming and enviro-friendly technology
Asahan, North Sumatra
mining practices Education Health Community Empowerment Environment
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Revenues
US$ million
775.2 1,098.8 +41.7% 2016 2017
Proportion of 2017 Revenues
Tripatra 25,0% Petrosea 23,1% MBSS 6.1% IIR 29.1% Kideco* 10.1% Others 6.6%
Tripatra 274.8 Petrosea 254.3 MBSS 67.1 Indika Indonesia Resources 319.8 Kideco* 110.5 Others 72.2
* Kideco Revenues in December 2017
2016 VS 2017
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Gross Profit
US$ million
Operating Profit (Loss)
US$ million
88.7 122.9 Margin 11.4% 11.2%
3.1% +437.3% 2016 2017 2016 2017
34.1 Margin
Selling, General and Administrative Expenses
US$ million
88.8 98.8 2016 2017
+38.6%
2016 VS 2017
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2016 2017 2016 2017
Adjusted EBITDA**
US$ million
Equity in Net Profit of Associates and Jointly-controlled Entity*
US$ million
59.5 136.2 155.7 291.5 +129.0% +87.2% Margin 20.1% 26.5%
* Net profit of associates from Kideco for eleven months in 2017 ** Including dividend from associates
2016 VS 2017
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Profit (Loss) for the Year Attributable to Owners of the Company
US$ million
2016 2017
30.5% +596.2% (67.6) 335.4 Margin
Core Profit (Loss)*
US$ million
2016 2017 +318.0% (43.3) 94.5
* Core profit/loss defined as net profit/loss for the year attributable to owners of the Company, excluding one-off non-operating gains or losses (amortization of intangible assets, impairment of assets and gain on revaluation of assets) and related taxes
2016 VS 2017
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2016 2017
Total Assets
US$ million
+133.1%
Total Liabilities
US$ million
+50.5%
Total Equity
US$ million
2016 2017 1,822.3 3,635.7 2016 2017 1,081.2 2,520.7 +99.5% 741.1 1,115.0
2016 VS 2017
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Capital Expenditure 2016 2017 Indika Energy 2.0 0.5 Petrosea 12.7 49.7 MBSS 6.2 10.7 Tripatra 0.7
0.4 3.8 Kideco
Total 22.0 65.7
Capital Expenditure
US$ million
Dividend Received
US$ million
2016 2017 84.7 143.4 +69.3%
2016 VS 2017
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507.0 1,340.0 77.5 82.2 144.4 17.9
Bonds Bank loans and long term loans Lease liabilities
3) 5)
Notes: 1) Consists of: Petrosea: US$59.6 mn, MBSS: US$34.6 mn, Tripatra: US$152.5 mn, Kideco: US$144.4mn, and Indika Energy Holding: US$337.9 mn (including IIC, IIR, ILSS and Others) 2) Current other financial assets 3) US$265 mn due 2022 (Senior notes V), US$500 mn due 2023 (Senior Notes IV), and US$575 due 2024 (Senior Notes VI) 4) Bank loans and long term loans: Petrosea: US$10.6 mn, MBSS US$0.9 mn, Tripatra: US$15.0 mn, IIR: US$25.7 mn, Indika Energy Holding: US$30.0 mn (including IIC, IIR, ILSS, and Others) 5) Lease liabilities: Petrosea US$17.9 mn 6) Kideco’s cash: US$144.4 mn (including restricted cash)
2)
1,440.2
1)
729.0
4) 6)
Cash and cash equivalents and other financial assets Debt
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2016 VS 2017
2016 2017 2016 2017 32.5 31.5
Sales Volume
Million ton
38.4 51.9 +35.1%
Average Selling Price
US$ per ton
2016 2017 1,247.8 1,633.0 +30.9%
Revenues
US$ million
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2016 VS 2017
2016 2017 2016 2017 193.9 195.9 +1.0%
Overburden Removal
Million bcm
6.0x 6.1x +1.3%
Stripping Ratio
2016 2017 27.6 28.0 +1.6%
Cash Costs, excluding Royalty
US$ per ton
PT Indika Energy Tbk.
26 April 2018
45 Tahun #KerjaMembangunBangsa