ANALYST BRIEFING 1Q11 Performance Results. 12 May 2011

Transcription

1 ANALYST BRIEFING 1Q11 Performance Results 12 May 2011

2 DISCLAIMER The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by PT. Indo Tambangraya Megah Tbk. Nothing in this release should be construed as either an offer to buy or sell or a solicitation of an offer to buy or sell shares in any jurisdiction

3 Agenda 1. Introduction 2. Financial Review 3. Operational Review 4. Commercial Review

4 Agenda 1. Introduction

5 ITM Operations in 2011 ITM OPERATIONS & PROJECTS Central Kalimantan Palangkaraya Operation Project TRUBAINDO 7.3 Mt East Kalimantan KITADIN TD.MAYANG Mt Bunyut Port BHARINTO 0.2 Mt South Kalimantan Banjarmasin JORONG 1.0 Mt Jorong Port Samarinda Balikpapan INDOMINCO 15.0 Mt Bontang Coal Terminal Captive coalfired power KITADIN EMBALUT 1.0 Mt Total coal output: 1Q11: 5.2 Mt FY11: 25.0 Mt target Indominco Trubaindo Bharinto Embalut Td. Mayang - 1Q11 output: 3.1Mt - FY11 target: 15.0Mt - Additional mining equipment will arrive starting in June 2011 onwards - 1Q11 output: 1.5Mt - FY11 target: 7.3Mt - 1 new mining contractor and additional mining equipment in this year - FY11 target: 0.2Mt - First production output by 4Q Q11 output: 0.3Mt - FY11 target: 1.0Mt - Expected higher cost in 2011 due to mud and difficult mining area - Works as mining contractor at IMM area - Production from own mine will commence by 2H 2011 with target output of Mt Jorong - 1Q11 output: 0.3Mt - FY11 target: 1.0Mt - Higher strip ratio due to change of mine plan

6 2011 Board of Commissioners Board of Commissioners: Ibrahim Yusuf Somruedee Chaimongkol DR. Sathidpong Wattananuchit Ir. Lukmanul Hakim, MM Rudijanto Boentoro Prof. Dr. Djisman S.Simandjuntak President & Independent Commissioner Commissioner Commissioner (replacing Rawi Corsiri) Commissioner Commissioner Independent Commissioner Name : DR. Sathidpong Wattananuchit Date of Birth : 18 June 1959 Working Experiences Joined Banpu PCL since 1998 started as VP HR and in as VP Internal Audit and during was assigned as Group Senior Vice President - Corporate Services and in 2007 till present appointed as the Assistant CEO - Corporate Service 7 years in Finance and Securities industry Nithipat Capital Public Company Limited, as VP HR & Administration Peregrine Nithi Finance & Securities Company, as Manager HR 3 years in the Infrastructure / Transportation Industry Bangkok Mass Transit System Company Limited, as HR & Administration Tanayong Public Company Limited, as VP HR & Administration and acting as Legal Manager

7 2011 Board of Directors Board of Directors: Somyot Ruchirawat Pongsak Thongampai Edward Manurung SE, MBA Mahyudin Lubis Hartono Widjaja President Director Director Director Director Director (replacing Aphimuk Taifayongvichit) Name : Hartono Widjaja Date of Birth : 03 December 1963 Working Experiences 1988 : Sales Associate in Metrodata (IBM) 1989 : Assistant Marketing Manager PT Kitadin 1992 : Marketing Manager PT Kitadin 1994 : Deputy General Manager - Marketing & Shipping 1996 : General Manager - Marketing & Shipping 1999 : Deputy Director - Marketing & Shipping 2002 : Vice President Regional Marketing 2007 : Senior Vice President - Marketing China & North Asia 2010 : Senior Vice President - Marketing Japan, Europe, NZ & Marketing Compliance

8 Agenda 2. Financial Review

9 Sales Revenue Unit: USD Million (0.9) (1.4) (3.5) Higher sales volume Higher ASP by 10% Lower sales volume Higher ASP by 14% 1Q10 4Q10 Indominco Trubaindo Jorong Kitadin Others 1Q11

10 Average Gross Margin Units: USD millions Total Revenue 364 GPM* (%) % 25% 33% 22% Q10 4Q10 1Q11 24% 14% 37% % 30% % 28% 24% 10% 18% 25% 19% 13% 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 ITM Consolidated Indominco Trubaindo Kitadin Jorong * COGS included royalty

11 EBITDA Units: USD million CONSOLIDATED (4.8) % QoQ Lower SR Royalty increased with revenues Higher ASP by 13% 1Q10 4Q10 Revenue COGS Royalty Selling Admin 1Q11 *COGS = Prod cost + Transport cost + Inv. movement Units: USD million MINE BY MINE Q10 4Q10 1Q11 Indominco Q10 4Q10 1Q11 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 Trubaindo Kitadin Jorong

12 Net Income Units: USD million CONSOLIDATED (1.0) (25.9) % QoQ 18.3 Higher ASP by 13% Derivative gain 1Q10 4Q10 EBIT Net Fin.Charges FOREX Derivative Transactions Income Tax Others 1Q11 Units: USD million MINE BY MINE (11.2) (3.0) 1.3 (0.4) 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 1Q10 4Q10 1Q11 Indominco Trubaindo Kitadin Jorong

13 Balance Sheet CASH POSITION (Units: USD million) Net Gearing (%) Net D/E (times) Q11 (30%) (0.36) (34%) (0.34) (44%) (0.47) (41%) (0.41) (49%) (0.49) DEBT POSITION Q11 (Units: USD million) Q11

14 2011 Capital Expenditure Plan: USD 126 m Trubaindo infrastructure 2.1 Units: USD million 57.2 Indominco East block washing plant Indominco port improvement Realized up to Mar major Capex plan Td.Mayang equipment Bharinto development Maintenance and improvement initiatives

15 Agenda 2. Operational Review

16 Indominco Mandiri INDOMINCO-BONTANG SCHEMATIC WEST BLOCK ROM stockpile Santan River Mine stockyard km EAST BLOCK Asphalt haul road 35Km Port stock yard Operations Ports Hauling Stockpile Crusher Bontang City Sea conveyor 2.5Km Post Panamax Inland 95,000DWT conveyor 4km e INDOMINCO PRODUCTION ANALYSIS SR Q SR Q 1.8 SR Q Q West Block 2Q Mt MAJOR QUARTERLY UPDATES Q East Block 14.3 Mt 15.0 Mt 1Q11 production was lower than target due to heavy rainfalls affecting the mining productivity Additional mining equipment from PAMA and TDM contractor starting in June 2011 onwards Overall strip ratio in 2011 is expected to be lower than 2010 due to higher portion of EB production which have lower strip ratio Expansion of port (PSY-3) and installation of tunnel conveyor is still ongoing and expected to be completed within 2Q11 1Q 2Q 8.0 Mt

17 Trubaindo and Bharinto TRUBAINDO-BHARINTO SCHEMATIC EAST KALIMANTAN Product coal conveyor, stacking, stockpile Bunyut Port Mahakam River 40km Mine to port e TRUBAINDO PRODUCTION ANALYSIS SR Q 2Q 3Q 4Q 1.5 SR Mt 7.3 Mt km PT. BHARINTO Bharinto 60km south west of Trubaindo North Block ROM stockpile South Block 2 (Biangan) South Block 1 (Dayak Besar) Kedangpahu River PT. TRUBAINDO North Block Operation Hauling Stockpile Barge Port Crusher MAJOR QUARTERLY UPDATES Trubaindo: 1Q11 production achieved according to plan 1 new mining contractor and additional mining equipment from existing contractors started to arrive in April 2011 onwards Bharinto: Crushing plant construction is ongoing with 95% progress and estimated to be fully completed by May 2011 Mining contractor already selected in March 2011 Site preparation to start pre-stripping activity in 3Q11 is progressing as planned FY11 production output of 0.2 Mt by 4Q11 is still on track

18 Kitadin Embalut and Tandung Mayang EAST KALIMANTAN Operations Ports Hauling Stockpile Embalut Port Crusher KITADIN SCHEMATIC ROM stockpile Mahakam River Balikpapan IMM WB EMBALUT TD. MAYANG IMM EB 5km Mine to port Samarinda to Muara Jawa Bontang city Bontang Port to Muara Berau KITADIN PRODUCTION ANALYSIS SR e 1Q 2Q 3Q 4Q 0.3 SR MAJOR QUARTERLY UPDATES Kitadin Embalut: Mt 1.0 Mt 1Q11 production achieved according to plan Higher strip ratio in 2Q11 due to mud and difficult mining area from heavy rainfalls Kitadin Tandung Mayang: Currently works as mining contractor at Indominco area Already started the pre-stripping activity in1q11 Coal production will start in 3Q11 Expected total production in 2011 will be Mt km

19 Jorong JORONG SCHEMATIC JORONG PRODUCTION ANALYSIS km 2010 SR Mt 1Q 2Q 3Q 4Q Pelaihari Haul road 2011e 0.3 SR Mt 20km MAJOR QUARTERLY UPDATES Operations Barge Port Hauling Jorong Coal terminal Pacific Ocean 1Q11 production achieved according to plan Adjusted strip ratio in this year to match with remaining reserves and to keep up with the current mining sequence Stockpile

20 Agenda 3. Commercial Review

21 Main Driver for 2011 Coal Market Weather Chinese Demand World Growth Indonesia wet season was normal, what will dry season be like? Chinese winter was normal but with water shortages, what will summer and end year winter be like? Australian storms/floods damage recovering slowly Demand is strong and resilient above expectations Grid transmission/generation infrastructure may cap effective demand Statistics are contradictory in terms of consistency in quality as well as supply ability vs. demand Imports still strong in 2011 and should exceed 2010 levels for thermal coal World growth forecast 3.1%, Asian growth forecast 5.1% If unemployment concern defers interest rate rises, there is potential for demand lift in 2H 2011 But oil, food and raw material cost will have a gradual impact Japanese effect Oil/gas effect Sources: Country Forecast February and March 2011 from The Economist Intelligence Unit Limited 2011

22 US$ / tonne Thermal Coal Benchmark Prices Coal price benchmarks FOB Richards Bay 6000 kcal/kg, NAR FOB Newcastle 6300 kcal/kg, GAR FOB Kalimantan 5900 kcal/kg, GAR FOB Kalimantan 5000 kcal/kg, GAR Newcastle, RB, Coal prices merge Upswing due largely to : Carry over impacts of rain and accidents Oil and gas price rises Strong Asian growth Fall out in Europe due to Japanese nuclear problem Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Increased production and waiting for demand lift to India/China and domestic demand Forecasts: depends on weather and China

23 Japan Earthquake Impact on Coal Demand in 2011 Change in demand (Mt) INDICATIVE ONLY 1H H 2011 Total NE Japan Make-up in transferred power Western Japan + Hokkaido Cement industry Steel industry Total coal demand from Japan* European coal demand in 2011** * Assumes no major nuclear radiation fall out to wide areas ** Impact from oil price increase resulting from the political instability in the Middle East and North Africa as well as diversion of coal demand from Japan Source: Company estimates

24 China Thermal Coal Market Review China domestic coal prices China thermal coal imports and exports RMB 1, Datong super mixed coal (6,000 kcal/kg) Shanxi super mixed coal (5,500 kcal/kg) Common mixed coal (4,000 kcal/kg) End Mar 11 (RMB) May 11 (RMB) Datong Shanxi Common Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11e Mt Net import 79 Mt Net import c. 92 Mt Outlook Import Export Source: 2 May 2011 Sources: China Coal Report February 2011, MS&L Estimates

25 ITM Average Selling Prices USD per tonne Quarterly BJI Quarterly ASP Monthly BJI Monthly ASP Jun-08 Feb-09 Oct-09 Jun-10 Feb-11 ASP FY10 $74.9/t ASP 1Q11 $87.3/t BJI* May 05, 2011 $ ASP vs. spot BJI trend shows a mix of pricing (LT/MT/ST) Despite increases in product margins, the increase in lower CV tonnages hampers ASP increases Still, higher CV coal has increased relative to index, JPU or spot price

26 Indicative 2011 Coal Sales Coal Coal sales sales contract contract and and pricing pricing status status Comment Contract Status Contracted Fixed Price Status Sales target remains at 25 Mt, assuming normal seasonal weather in Indonesia 95% 100% 62% Close to fully sold by 1H as more contract settlements expected in 2Q 5% Uncontracted 14% Unpriced 24% Index Remaining unsold; anticipating stronger market price for low grade products TARGET SALES 2011: C. 25 Mt

27 Coal Sales by Geographic Destination Coal sales 1Q11 (total 5.5 Mt) ITALY (9%) 2011 CHINA (22%) HONG KONG (3%) M10 6M10 9M10 FY10 3M S.KOREA (5%) JAPAN (27%) M10 6M10 9M10 FY10 3M11-3M10 6M10 9M10 FY10 3M M10 6M10 9M10 FY10 3M11 OTHERS* (1%) INDIA (11%) M10 6M10 9M10 FY10 3M M10 6M10 9M10 FY10 3M11 TAIWAN (5%) *Includes small, nonregular purchasers 0.0 3M10 6M10 9M10 FY10 3M THAILAND (9%) M10 6M10 9M10 FY10 3M11 INDONESIA (3%) PHILIPPINES (5%) M10 6M10 9M10 FY10 3M M10 6M10 9M10 FY10 3M M10 6M10 9M10 FY10 3M trend expectation 1.0 -

28 Questions & Answers

29 Agenda Appendices

30 ITM structure and history Banpu Banpu PCL 99.99% Banpu Coal Investment Co.Ltd INDONESIAN STOCK EXCHANGE IPO 18 th Dec % BCI Public 50.00% 35.00% BMC 50.00% BMS 65.00% ITMG Banpu Minerals Co.Ltd Banpu Minerals (Singapore) Pte Ltd PT Indo Tambangraya Megah Tbk % 99.99% 99.99% 99.99% 99.67% Indominco Trubaindo Bharinto Kitadin Jorong PT Indominco Mandiri (CCOW Gen.I) PT Trubaindo Coal Mining (CCOW Gen II) PT Bharinto Ekatama (CCOW Gen III) PT Kitadin-Embalut (KP) PT Kitadin-Td.Mayang (KP) PT Jorong Barutama Greston (CCOW Gen II) East Kalimantan East Kalimantan East / Central Kalimantan East Kalimantan South Kalimantan Reserves 330* Mt Resources 1,640* Mt Reserves 146 Mt 697 Mt Resources Reserves 107 Mt 335 Mt Resources Reserves 45 Mt 298 Mt Resources Reserves 15 Mt 152 Mt Resources Reserves 10 Mt 13 Mt Resources Reserves 7 Mt 145 Mt Resources 6,000-6,300 kcal/kg 6,500-7,300 kcal/kg 6,400-6,800 kcal/kg 5,800 kcal/kg 6,700 kcal/kg 5,300 kcal/kg Note: * Updated Coal Resources and Reserves as of 31 Mar 2011

31 Coal resources and reserves (as of 31 Mar 2011) Indominco W.Block 33 Mt 251 Mt E.Block 113 Mt 446 Mt Kitadin-Embalut 15Mt 152 Mt RESOURCES RESERVES Kitadin-Td.Mayang 13Mt 10Mt Total Reserves : 330 Mt Total Resources : 1,640 Mt Jorong 7Mt 145 Mt Trubaindo 107 Mt 335 Mt Bharinto 45 Mt 298 Mt Note: * Updated Coal Resources and Reserves as of 31 Mar 2011 based on estimates prepared by Competent Persons (consider suitably experienced under the JORC Code) in 31 Dec 2010 and deducted from coal sales volume in 1Q11