itm analyst presentation 1q13 final version · • 1q13 production as according to plan. •...
TRANSCRIPT
Analyst Briefing1Q13 performance results
15 May 2013
2
The views expressed here contain information derived from publicly available sources that have not been independentlyverified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Anyforward looking information in this presentation has been prepared on the basis of a number of assumptions which mayprove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by PT. IndoTambangraya Megah Tbk. Nothing in this release should be construed as either an offer to buy or sell or a solicitation ofan offer to buy or sell shares in any jurisdiction
3
AppendicesFinancial reviewCommercial reviewOperational reviewIntroduction
34
21
DisclaimerAgenda
(a) Highlights of 1Q13 results
(b) ITM new Board Member
(c) 2013 operation summary
1. Introduction
4
5
Highlights of 1Q13 results
* Included bonus /penalty
Unit: USD Million
Total Revenue
Gross Profit Margin
EBIT
Net Income
ASP* (USD/ton)
Q-Q
-15%
-1%
-19%
+10%
-1%
1Q13
563
23%
85
72
$80.0
y-y
-3%
-13%
-50%
-42%
-21%
Coal Sales: 7.1 MtDown 1.1 Mt
-13% Q-QUp 1.4 Mt
+24% y-y
1Q12
578
36%
169
124
$101.1
4Q12
658
24%
105
65
$80.6
6
Edward Manurung SE, MBA
Director
Leksono Poeranto
Director
Pongsak Thongampai
President Director
Hartono Widjaja
Director
Board of Directors
Sean Trehane Pellow
Director
A.H Bramantya Putra
Director (New Member)
7
Brief resume of A.H Bramantya Putra
Date of birth : 10 November 1964
Education :
Master Degree majoring in International Management, Prasetiya Mulya Business School, Jakarta Bachelor Degree majoring in Geology UPN Veteran, Yogyakarta
Experiences :2012 – Present Vice President - Corporate Service PT Indo Tambangraya Megah, Tbk. 2010 – 2012 Mine Head PT Indominco Mandiri2006 – 2012 Kepala Teknik Tambang PT Indominco Mandiri2005 – 2010 Administration Mine Manager - PT Indominco Mandiri Bontang2002 – 2005 Corporate Human Resources Manager - Banpu Coal Operation Indonesia2001 – 2002 Human Resources Manager - PT Kitadin1997 – 2001 Operation Support Dept. Head - PT Indominco Mandiri1994 – 1997 Technical Specialist - PT Indominco Mandiri1992 – 1994 Sr. Geologist - PT Indominco Mandiri1991 – 1992 Geologist - PT Indominco Mandiri (Project Site)
2013 operation summary
8
East Kalimantan
Bunyut Port
Balikpapan
Palangkaraya
Banjarmasin
Central Kalimantan
South Kalimantan
KITADIN-EMBALUT
1.0 Mt
INDOMINCO 14.8 Mt
TRUBAINDO 7.7 Mt
BHARINTO1.9 Mt
JORONG 1.2 Mt
Samarinda
Jorong Port
Bontang Coal Terminal
2013 Target: 29mt
2013 OUTPUT TARGET
KITADIN-TD.MAYANG
2.4 Mt
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Units: Mt
5.7
Indominco
Trubaindo
Bharinto
KitadinJorong
INDICATIVE OUTPUT TARGETS*
1Q12 2Q12 3Q12 4Q12
2013e 2014e 2015e 2016e 2017e
Indominco
Trubaindo
Bharinto
KitadinJorong
* Not including inorganic growth.Note: These output targets are indicative only and are subject to change
6.8 7.08.0
1Q13
7.1
QUARTERLY OUTPUT
29.031.0 32.0
33.5
2Q13e
7.3
33.0
9
AppendicesFinancial reviewCommercial reviewOperational reviewIntroduction
34
21
10
1Q13 production achieved higher than plan.IPCC trial stage: crushing equipment is on site and waiting for transporting the conveying and stacking system.Port expansion: evaluation of the bidding tender for construction contractors.
QUARTERLY UPDATES
Indominco MandiriSCHEMATIC
EAST BLOCK
Santan RiverPort stock
yard
Bontang City
Asphalt haul road
2.5Km
35Km
Sea conveyor
Mine stockyard
Inland conveyor 4km
0 106 82 km4
WEST BLOCK
Operations
Stockpile
Ports
Hauling
Crusher
ROM stockpile
Post Panamax
95,000DWT
2013 target: 14.8mt
E B
LOC
KW
BLO
CK
E B
LOC
KW
BLO
CK
1.6 2.1 2.0 2.5 2.4 2.5
1.41.4 1.8
2.01.1 1.23.0
3.5 3.84.5
3.5 3.7Units: Mt
Units: Bcm/t
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13e
11.6
15.1 15.2
11.6
13.2
9.2
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13e
13.9
9.0
19.1
9.3
QUARTERLY OUTPUT
18.5
9.1
Avg.SR: 13.1 13.0 11.1 10.2 12.4 11.9
11
Trubaindo: 1Q13 production was higher than plan despite higher rainfall.Bunyut port expansion: Already completed the feasibility study and continue with EPC bidding process.
Bharinto: 1Q13 production achieved higher than plan despite higher rainfall.
QUARTERLY UPDATES
Trubaindo and BharintoSCHEMATIC
QUARTERLY OUTPUT
Mahakam River
South Block 1(Dayak Besar)
North Block
40kmMine to port
KedangpahuRiver
ROM stockpile
BunyutPort
0 10 2515 205 km
Product coal conveyor, stacking,
stockpile
EAST KALIMANTAN
Bharinto 60km south west of
Trubaindo North Block
South Block 2(Biangan)
PT. BHARINTO
PT. TRUBAINDO
Operations
Stockpile
Hauling
Barge Port
2013 Target: TCM : 7.7mt BEK : 1.9mt
1.7 2.0 2.0 2.1 2.0 1.8
1.7 2.0 2.02.4 2.3 2.3
TRUBAINDO 13.4 13.5
TRUBAINDO
BHARINTO
13.4
Units: Mt
Units: Bcm/t
12.7
BHARINTO 7.4 7.8
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13e
0.3
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13e10.9
7.6
0.5
10.9
7.5
12
Kitadin Embalut:
1Q13 production slightly lower than plan.
Kitadin Tandung Mayang:
1Q13 production was slightly higher than plan.
Starting 2013, TDM will work at its own concession area only.
QUARTERLY UPDATES
Kitadin Embalut and Tandung MayangSCHEMATIC
QUARTERLY OUTPUT
0.3 0.3 0.3 0.3 0.2 0.3
0.5 0.7 0.6 0.4 0.8 0.70.8 1.0 0.9 0.7
1.0 1.0
Balikpapan
MahakamRiver Samarinda to Muara Berau
Bontang city
EMBALUT
Embalut Port
to Muara Jawa
ROM stockpile
Operations
Stockpile
Ports
Hauling
Crusher0 106 82 km4
5km Mine to port
TD. MAYANG
EAST KALIMANTAN
IMM EBIMM WB
BontangPort
TDM : 2.4mt
12.0 11.8
TDM
EM
BE
MB
TDM 15.1 15.1
11.4
15.1
Units: Mt
Units: Bcm/t
6.0
15.1
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13e
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13e
11.5
15.1
2013 Target: EMB : 1.0mt
11.3
15.1
Coal terminal
Jorong
Pelaihari
Pacific Ocean
Haul road
0 10 2515 205 km
20km
Operations
Stockpile
Hauling
Barge Port
FY13 target: 1.2mt
MAJOR QUARTERLY UPDATES
13
Jorong
• 1Q13 production as according to plan.
• Construction of river diversion project is ongoing and expected to be finished by around mid 2013.
SCHEMATIC
QUARTERLY OUTPUT
8.68.68.6 8.6 8.6 8.6
Units: Mt
Units: Bcm/t
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13e
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13e
0.3 0.3 0.3 0.3 0.3 0.3
14
AppendicesFinancial reviewCommercial reviewOperational reviewIntroduction
34
21
DisclaimerAgenda
(a) Coal market update
(b) Long-term coal market analysis
3. Commercial Review
15
16
OTHER DRIVERSWEATHER CHINESE DEMAND
• Indonesia wet season started after 3 months of relatively good weather
• Chinese heating season ended at the end of March, good hydropower generation into April
• Australian normal weather pattern
• USA/Europe normal weather pattern
• Mixed sentiment, resulting from mixed data from China and USA, prevails throughout 1Q
• But underlying trends are positive
• Gas prices continues to support coal demand in Europe, while USA continues adjusting
• In 2013, political and social factors may impact supply, but extent still unpredictable
• World growth forecast of 2.3%* (Prev. 2.4%); Asian growth forecast of 6.3%* (Prev. 6.4%) in 2013
• Economic activity still healthy although GDP disappointed and electricity generation slowed
• Coal production flattening, but stocks remain
• Imports in 1Q 2013 was 80 Mt, up by 30% Y-0-Y or 19 Mt
• China Electricity Council (CEC) expects power consumption to increase by 4–6% Y-o-Y in 2013
• Hydropower and wind power generation likely to increase and impact coal power mix, although coal imports expected to increase in April
Seaborne thermal coal market drivers: 1Q update
* Economist Intelligence Unit, Global Outlook, February 2013
17
ITM ASPs vs thermal coal benchmark pricesITM ASP VS BENCHMARK PRICES
* Barlow Jonker Index: benchmark NSW FOB thermal coal index
ASP 1Q13 $80.0
ASP 1Q12 $101.1
NEX* May 9, 2013 $87.5
Unit: $/t
COMMENTS
0
20
40
60
80
100
120
140
160
180
200
Feb-
07M
ay-0
7A
ug-0
7N
ov-0
7Fe
b-08
May
-08
Aug
-08
Nov
-08
Feb-
09M
ay-0
9A
ug-0
9N
ov-0
9Fe
b-10
May
-10
Aug
-10
Nov
-10
Feb-
11M
ay-1
1A
ug-1
1N
ov-1
1Fe
b-12
May
-12
Aug
-12
Nov
-12
Feb-
13
Monthly BJIQuarterly Banpu Indonesia ASP
• ASP declined marginally in 1Q and this reflects the general market sentiment and quality mix
• Despite healthy demand, continuing pressure from the well-supplied market impacts ASP
• JPU benchmark was agreed and set at $95.00/ton, lower than originally expected
• Concluded sales of 7.1 Mt in 1Q at ASP of $80.0/ton, down 1% QoQ
Monthly NEXITM quarterly ASP
18
93
103
147
147 5 5
2010 2011 2012 2013
Import Export
Net importc.170 Mt ?
ANNUALIZED ACTUAL IMPORT 3Q11 - 4Q12 & 1Q13
CHINA DOMESTIC COAL PRICES
CHINA THERMAL COAL IMPORTS/EXPORTS
China thermal coal market review
Source: www.sxcoal.com/cn 30 April 2013
Unit: RMB/t
Sources: China Coal Report Jan 2013, Banpu MS&L Estimates
Unit: Mt Unit: Mt
Net import142 Mt
c.175?
128
143
116
151 146
175
148
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Import Export
655615
525
400
500
600
700
800
900
1,000
Feb-
11
May
-11
Aug
-11
Nov
-11
Feb-
12
May
-12
Aug
-12
Nov
-12
Feb-
13
> 5,800 kcal/kg
> 5,500 kcal/kg
> 5,000 kcal/kg
COAL SALES 1Q13
19
ITM coal sales 1Q13COAL SALES BREAKDOWN BY DESTINATION
JAPAN1.3 Mt
PHILIPPINES0.5 Mt
THAILAND0.5 Mt
INDIA0.4 Mt
HK0.1 Mt
S KOREA0.9 MtCHINA
2.2 Mt
TAIWAN0.2 Mt
ITALY0.2 Mt
1.5
INDONESIA0.6 Mt
MALAYSIA0.1 Mt
31%
18%12%
8%
8%
7%
6%3%2%2%1%
Total Coal Sales: 7.1 Mt
Japan
China
Taiwan
S Korea
Italy
Thailand
Philippines
Hong Kong
India
Indonesia
Malaysia
1%
USA
USA0.1 Mt
66%17%
6%
11%
20
Indicative coal sales 2013COAL SALES CONTRACT AND PRICING STAUTS
Contract Status Price Status
FixedIndex
Unpriced
Unsold
TARGET SALES 2013: 29.0 Mt
89%
11%
Contracted
Uncontracted
DisclaimerAgenda
(a) Coal market update
(b) Long-term coal market analysis
3. Commercial Review
21
22
2013 - Short term outlook: continuing imbalance
Import and export figures based on 2013 forecast (average of IHS McCloskey and Wood Mackenzie,* including lignite and anthracites Source: IHS McCloskey, Wood Mackenzie , IEA, Banpu, AWR Lloyd
Indonesia
Australia
S. Africa
Colombia
USA N. Asia
SE Asia
China
India
Russia
225 Mt*
116 Mt
299 Mt
55 Mt
Europe187 Mt
Other demand
50 Mt
Othersupply
Likely to surpassJapan as second largest thermal coal importers
• Excess capacity at ports• Take or pays support
marginal costing• Significant
rationalization
• Domestic coal output down by 5Mt (2%) yoy
• More cuts expected• Imports higher
382 Mt
186 Mt
45Mt
87Mt78Mt
65Mt
89 Mt
• Coal export hedging contracts progressively maturing to 2H13
• Exports dropping
• Imports still high• May ease back in 2H13
• Logistics constraints
• Socio-political questions rising
Net imports
Net exports
2013 estimates
0
20
40
60
80
100
120
140
160
180
200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
90th percentile cost (seaborne FOB)
Spot coal price (Newcastle)
COMMENT
23
Historical perspective: cost curve and prices
● In the past when prices have fallen close to or below 90th cost percentile, it has been sign of an imminent recovery
● A spike historically has resulted from coincidence: 1) demand recovery 2) supply reduction
● Coal prices in mid 2012 to early 2013 have dropped below 90th percentile
HISTORICAL MARGINAL COST CURVE AND NET PRICE RELATIONSHIP
Source: Bloomberg, AWR Lloyd, Research reports
US$/t
24
China: imports competitive at current price
Source: Banpu, AWR Lloyd
Newcastle
Kalimantan
QHD
COMMENT
● Key factors: FOB cost, freight, and exchange rates
● Imported coal is competitive at current prices
● Chinese mines closing today at QHD of RMB 600-610/t ($98-$100) FOB on Bohai-rim Price Index
● In the longer term:
US$ appreciation against A$ will make Australian coal producers more competitive
Indonesian coal has competitive freight
Competitiveness of Chinese supply should decline: mine cost increase, lower quality, RMB appreciation
ILLUSTRATION: CHINESE SUPPLY VERSUS IMPORTS
Main product that Australia sells to China
Import duty
Illustration benchmark: 6,322
kcal/kg GAR @ U$85/t FOB
S China
Import duty
$73
5,500 NAR H Ash
$72
5,500 NAR H Sul
$92/t
5,500 NAR
[RMB 560/t]
927 2
14
7 3
1113
Kalimantan
986
NEWC
98
7
QHD
92
CIF Southern China 5,500 NAR products ($/t)
$6
Unit: US$ per tonne
$13
$7
$14
$11Freight
Freight
INDICATIVE ONLY
11
Avg. domestic FOBQHD cash cost
CV adjustment C0nverting to U$/t
NAR RMB/t NAR RMB/t@ RMB 6.1/U$
@ RMB 5.5/U$
4,800 4506,000 560 92 102
5,500 515 84 94
0
CHALLENGING TRENDS ?
China: average domestic FOB QHD cash cost
CHINA COASTAL SUPPLY COST CURVE
25
● RMB appreciates slowly against US$ (affects FOB + freight)
● US$ appreciates against A$
● RMB domestic inflation may follow pattern seen in United States (i.e. 2-3%)
● RMB mining industry and transportation is expected to inflate faster against CPI
● Chinese producer cost reduction harder, with >80% underground mines
● Mining costs in Australia and Indonesia falling/rationalizing
700
600
500
400
300
200
100
0100 200 300 400 500
RMB/t
Source: Wood Mackenzie, Banpu analysis
26
Long term thermal demand and supply outlook
Forecast figures are average of IHS McCloskey and Wood MackenzieSource: IHS McCloskey, Wood Mackenzie, AWR Lloyd
Europe
China
N Asia
SE Asia
India
Indonesia
AustraliaS. Africa
Colombia
Russia
USA
Other supply
Other demand
2012 - 2020 2012 - 2030
Total change (Mt) +276 +736
China, India, SE Asia +242 +686
88% 93%
374
2020 2030
132
67
2020 2030
+ 191
3929
2020 2030
43121
20302020
-21 -45
2020 203015
20302020
144
37 56
20302020
1 8 1 8
2020 2030
88
2020 2030
197
99
2020 2030
255
4 20
20302020
26 56
12-Jul 2030
15 46
20302020++
+ +
+
+
++
++
++
+
+++
+ +
+ +++
ILLUSTRATIVE ONLY
Net imports
Net exports
+
COMMENT
Cost of meeting long term incremental coal demand?2013 FOB COST CURVE (CV ADJUSTED)
● Growing demand requires higher cost supply
● Higher stripping ratio, lower quality, depleting reserves for current capacity
● Lower quality, higher-cost production for future capacity
● Current price environment does not support marginal producers and does not incentivize new capacity
27
CUMULATIVE SUPPLY (Mt)
0 200 400 600 800 1,000 1,200 1,600
50
100
150
200
2013
2020DEMAND
2030DEMAND
Source: Wood Mackenzie, Banpu
$/t FOB Vessel
?
?
66
10
14
8827
117
2432
10
17
35 12
9
76
195
10
417
15
20
29
14
444
17
16
4
4
3
28
Seaborne coal will remain competitive versus gasWORLD GAS TRADE AND OUTLOOK TREND
Source: BP Statistical Review of World Energy 2012; Waterborne Energy, Inc., Banpu
Natural Gas (bcm)
LNG (bcm)
Note: Trade data as of 2011, gas price as of September 2012
Africa• Shale gas
possible• Negligible
LNG
Africa• Shale gas
possible• Negligible
LNG
India• LNG
(some shale gaspossible)
India• LNG
(some shale gaspossible)
Europe• LNG limited• Piped natural gas (Russia,
Algeria)• Shale gas ? Environmental?
Europe• LNG limited• Piped natural gas (Russia,
Algeria)• Shale gas ? Environmental?
Japan• LNGJapan• LNG
S. Korea• LNGS. Korea• LNG
Indo China• LNG?Indo China• LNG?
Taiwan• LNGTaiwan• LNG
Piped natural gas● Increasingly competing with oil
rather than coal● Negligible replacement of coal
on coast for seaborne markets● Where it can replace seaborne
imports – it already has● USA effect in 2012 - an anomaly
for medium term, probably long term too
LNG● Cannot compete with coal nor
natural gas (where available)● Too expensive for lesser
developed countries● Long lead times – if gas is found,
then must negotiate committed off take, plan long delivery system and develop LNG trains
● Sufficiently higher cost than coal in which lower cost LNG projects would replace higher cost LNG projects before impacting coal
Australia• LNG projects are at the
high end of the cost curve• Environmental challenges
(i.e. water resource issue)• Currently pushing up
domestic coal prices
Australia• LNG projects are at the
high end of the cost curve• Environmental challenges
(i.e. water resource issue)• Currently pushing up
domestic coal prices
China• Shale gas likely in long term• Shale gas uncertainties: geological
difficulties, water availability, infrastructure, economics
China• Shale gas likely in long term• Shale gas uncertainties: geological
difficulties, water availability, infrastructure, economics
S. America• LNG unlikelyS. America• LNG unlikely
COMMENT
29
AppendicesFinancial reviewCommercial reviewOperational reviewIntroduction
34
21
30
SALES VOLUME
Sales revenueREVENUE* GROWTH
ASP
1Q12 2Q12 3Q12 4Q12 1Q13
Units: US$M
Indominco
Trubaindo
JorongKitadin
Bharinto
1Q12 2Q12 3Q12 4Q12 1Q13
Units: Mt
Indominco
Trubaindo
JorongKitadinBharinto
Units: US$/t
1Q12 2Q12 3Q12 4Q12 1Q13* excluding port revenue
575622
572
653
101.1 94.687.5 80.6
5.76.6 6.6
8.2
-21% YoY-1% QoQ
+24% YoY-13% QoQ-3% YoY
-14% QoQ
559
7.1
80.0
31
Average gross margin
Revenue
GPM* (%)
Units: US$M
Indominco Trubaindo Kitadin Jorong
39%
28%
Bharinto
19%
427
19%
4Q12
242
19%
72
31%
24
19%
24
0
ITM Consolidated
1Q13
563
23%
4Q12
658
24%
4Q12 4Q12 4Q12 1Q12 4Q1223%
1Q12
578
36%
341
27%
1Q12
228
35%
1Q12
83
42%
1Q12
23
18%
1Q12
354
17%
200
17%
73
28%
24
17%
34
31%
1Q13 1Q13 1Q13 1Q13 1Q13
* COGS included royalty
32
Cash cost
1Q12 2Q12 3Q12 4Q12 1Q13
Units: US$/t
* Cash production cost + royalty + SG&A1Q12 2Q12 3Q12 4Q12 1Q13
Units: US$/Ltr
1Q12 2Q12 3Q12 4Q12 1Q13
Units: Bcm/t
1Q12 2Q12 3Q12 4Q12 1Q13
Units: US$/t
WEIGHTED AVERAGE STRIP RATIO CASH PRODUCTION COST
TOTAL CASH COST *FUEL PRICE
51.913.2
1.07 71.0
13.1
1.07
51.6
70.01.02
12.0 49.8
67.2
10.8
1.03
47.7
65.0
11.7
1.04
46.3
62.8
Avg.2011: 11.9Avg.2012: 12.3
Avg.2011: $46.4/tAvg.2012: $50.1/t
Avg.2011: $66.0/tAvg.2012: $68.0/t
Avg.2011: $1.02/ltrAvg.2012: $1.04/ltr
33
EBITDACONSOLIDATED
*COGS = Prod cost + Transport cost + Inv. movement
Units: US$M
Revenue4Q121Q12 1Q13
120.6
COGS SellingRoyalty Admin
98.9
183.8
MINE BY MINE
Units: US$M88.0
64.5
34.8
71.6
23.1 28.1
51.0
17.8 18.4
2.3 (0.0) 3.5
Indominco Trubaindo1Q12
Kitadin Jorong4Q12 1Q13
Bharinto
3.2 0.89.3
1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13
+44.2
(95.6)
+19.4 +8.8 +1.5-46% YoY-18% QoQ
Lower sales volume by 13%and ASP by 1%
61.4
23.3
42.5
10.7 6.61.6
39.2
12.2 12.5
1.0
33.6
0.6 2.05.3
(0.1)
34
Net incomeCONSOLIDATED
124.5
71.965.4
Units: US$M
MINE BY MINE
Units: US$M
4Q12 1Q13OthersEBIT IncomeTax
DerivativeTransactions
Net Fin.Charges
1Q12
Indominco Trubaindo Kitadin Jorong Bharinto1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13
(19.9) (2.0)
+11.9+6.5
+10.0-42% YoY+10% QoQ
Lower sales volume by 13%and ASP by 1%
35
CASH POSITION
Net Market Gearing (%)
Net D/E (times)
(0.47)
(44%)
(0.57)
(57%)
(0.41)
(41%)
2009 20112010 2012
(0.46)
(46%)
Balance sheetKEY RATIOS
DEBT POSITION
Units: US$M
2009
429
2011
612
295
2010 2012
461
Units: US$M
55
2009
0
2011
0
2010
0
2012 1Q13
0
1Q13
496
1Q13
(0.55)
(55%)
36
2013 capital expenditure plan
Note: Total capex plan including Jakarta office
Units: USD million
Indominco
Trubaindo
Bharinto
Kitadin
Jorong
ITM Consolidated
19
Realized up to Mar’13
2013 Capex plan
70
64
6
150
1
6
23
2
0.3
0.4
2
37
Appendices
ITM structure
38
ITMG
65.00%
Indominco Trubaindo Jorong
PT Indominco Mandiri
(CCOW Gen.I)
PT Trubaindo Coal Mining
(CCOW Gen II)
PT Kitadin-Embalut
(KP)
PT Jorong Barutama Greston
(CCOW Gen II)
50.00%
PT Indo TambangrayaMegah Tbk.
Banpu Minerals (Singapore) Pte Ltd
99.99% 99.99% 99.99% 99.99%
Banpu Minerals Co.Ltd
Reserves 383* Mt
Resources 1,595* Mt
BMS
99.99%
BMC
Banpu PCLBanpu
Public35.00%
Kitadin
PT Kitadin-Td.Mayang
(KP)
BCI50.00%
100.00%Banpu Coal Investment
Co.Ltd
East Kalimantan East Kalimantan South KalimantanEast Kalimantan
INDONESIAN STOCK EXCHANGEIPO 18th Dec 2007
6,500-7,300 kcal/kg6,000-6,300 kcal/kg 5,800 kcal/kg 6,700 kcal/kg 5,300 kcal/kg
Output FY12: 14.8 Mt Output FY12: 7.7 Mt Output FY12 : 3.5 Mt Output FY12 : 1.2 Mt
Bharinto
PT Bharinto Ekatama
(CCOW Gen III)
99.00%
East / Central Kalimantan
6,400-6,800 kcal/kg
Output FY12 : 0.3 Mt
East Kalimantan
156 Mt
679 MtResources
Reserves92 Mt
318 MtResources
Reserves12 Mt
149 MtResources
Reserves112 Mt
298 MtResources
Reserves4 Mt
142 MtResources
Reserves
6 Mt10 Mt
Resources
Reserves
Note: * Updated Coal Resources and Reserves as of 31 Mar 2013
ITMI
PT ITM Indonesia
Coal Trading
99.99%
Jakarta Office
39
Income statement
Unit: US$ thousand 1Q13 4Q12 1Q12 QoQ% YoY%
Net Sales 562,67 5 658,316 57 7 ,955 -15% -3%Gross Profit 128,422 158,638 209,207 -19% -39%GPM 23% 24% 36%SG&A (43,67 1) (53,980) (40,025) EBIT 84,7 51 104,658 169,182 -19% -50%EBIT Margin 15% 16% 29%EBIT DA 98,860 120,607 183,851 -18% -46%EBIT DA Margin 18% 18% 32%Net Interest Income / (Expenses) 2,07 0 4,107 3,028 Derivative Gain / (Loss) 2,846 (9,032) 26,916 Others 4,660 (5,410) (23,630) Profit Before T ax 94,327 94,323 17 5,496 0% -46%Income Tax (22,429) (28,912) (50,999) Net Incom e 7 1,898 65,411 124,497 10% -42%Net Incom e Margin 13% 10% 22%
COMMENTS
40
Operating costs
● Managed to lower operating costs further by another 3% q-o-q (12% on y-o-y basis).
● Average strip ratio of 11.7x in 1Q13 down from 13.1x in 1Q12.
● Despite higher strip ratio at Indominco West Block, average operation cost in 1Q13 continues to show q-o-q decline.
● ITM will continue to reduce average stripping ratios in 2013 to cope with lower coal price trend.
● Continue to focus on cost reductions including cut in overhead costs.
1Q13 AVERAGE OPERATING COSTS
0
10
20
30
40
50
60
70
80
Mining and contractor cost
* Coal transportations, repair and maintenance, salaries and allowance, etc.
$74 $72$69
$65
$/t
$67
Other production costs*
Dep. & AmortisationSG&A expenses
Royalty
1Q 2Q 3Q 4Q Full year 1Q
$70
Full year2012 2012 2013 2013E
$63