pt. bayan resources tbk. · approved rkab limit. 12 average cash costs 36.0 36.9 0 10 20 30 40 3q18...
TRANSCRIPT
0 www.bayan.com.sg
1
Overview
www.bayan.com.sg
4Q 2018
Sales volume continued to grow in 4Q18 and exceeded Budget and 3Q18.
4Q18 EBITDA was significantly higher than the Budget and generally in line with 3Q18.
2018
2018 financial results have exceeded both 2017 and the Budget in all respects.
Overall EBITDA margin, Gross Profit margin and Net Profit margin remain strong and industry leading.
Company successfully purchased the approximately 44% minority interest in Kangaroo Resources Limited in December for USD 165.7 million which secures 100% of the prospective Pakar concessions.
2
Bayan’s Growth Continues
www.bayan.com.sg
Financial Performance
(In Million USD)
Revenue 1,067.4 349.8 434.3 1,676.7
Gross Profit 553.6 178.2 191.8 846.9
EBITDA 485.1 153.2 163.2 736.4
Net Profit After Tax 338.0 110.1 115.9 524.3
Financial Ratios
Gross Profit Margin (%) 51.9% 50.9% 44.2% 50.5%
EBITDA Margin (%) 45.4% 43.8% 37.6% 43.9%
Net Profit Margin (%) 31.7% 31.5% 26.7% 31.3%
Net Debt to EBITDA (x) 0.1 0.3 Net Cash Net Cash
Operational Statistics
Overburden Removal (MBCM) 84.9 27.3 38.6 137.5
Strip Ratio (x) - based on production volume 4.1 4.5 6.4 4.8
Coal Production (MT) 20.9 6.1 6.1 28.9
Sales Volume (MT) 20.1 6.1 7.5 28.3
20184Q172017 4Q18
3
www.bayan.com.sg
One of the Quickest Growing Coal Producers
Bayan is one of the top five coal producers in Indonesia with a view to moving into the top 3 within the next few years.
2017 completed the initial phase of infrastructure to allow Bayan to continue to be one of the quickest growing producers.
2018 results show the continued growth.
Source: Company Filings, Company Data
2015 - 2017 CAGR (Production)
33.2 29.6
13.9
2.0
(2.7) (7.4) (8.8) -10
0
10
20
30
40
GEMS Bayan PTBA Bumi Adaro Indika ITMG
%
Source: Company Fillings. Company Data
54.0
28.9 26.4 22.1
0
10
20
30
40
50
60
Adaro Bayan PTBA ITMG
Mil
lio
n T
on
ne
s
FY 2018 Production
4
One of the Lowest Cost Producers in Indonesia
FY 2018 Strip Ratio Competitor
Global Cost Competitive Positioning
Source: Wood Mackenzie, Company Data
2.6
4.1 4.8 5.1
11.1
0
2
4
6
8
10
12
Tabang PTBA Bayan Adaro ITMG
Source: Company Filings, Company Data
0
10
20
30
40
50
60
70
80
90
200 400 600 800
To
tal C
ash
Co
st
(US
$/t
No
min
al)
RoW Indonesia Australia Bayan Seaborne Export Supply (MT)
Tabang is independently rated as one of the worlds lowest cost energy-adjusted producers.
Tabang has large reserves and a very low Life of Mine stripping ratio (less than 3.5:1).
Combined with the other mining concessions the average stripping ratio of the Group is not anticipated to exceed a maximum of 5:1.
5
And One of the Highest Margin Producers in Indonesia
Source: Company Filings, Company Data
Source: Company Filings, EBITDA estimated using Company Data
FY 2018 EBITDA Margin (%)
FY 2018 Gross and Net Profit Margin (%)
50.5
40.4
34.4 33.4 29.1 31.3
24.2
9.6 13.2 12.9
0
10
20
30
40
50
60
Bayan PTBA GEMS Adaro ITMG
Gross Profit Margin Net Profit Margin
Over the last couple of years Bayan has transformed itself into one of the highest margin producers in Indonesia.
This is due to the ramp up of its world class Tabang coal complex, which is anticipated to continue to grow and produce industry leading margins.
Net profit margins are anticipated to continue to outperform the industry norms due to low cost base, low royalty rates, and lower corporate tax than first Gen CCOW’s.
43.9 38.9
35.9
24.8
14.4
0
10
20
30
40
50
Bayan Adaro PTBA ITMG GEMS
6
Net Debt / EBITDA
x
10.2x
5.8x
2.6x
0.1x 0 0 0 0
0
5
10
15
2014 2015 2016 2017 1Q18 2Q18 3Q18 4Q18
1.3x 2.7x 3.7x 16.8x
185.0x
221.8x 208.2x
171.5x
0
50
100
150
200
250
2014 2015 2016 2017 1Q18 2Q18 3Q18 4Q18
EBITDA / Net Interest Expense
x
The Group moved from a net debt to net cash position by the end of 1Q18.
The Group now has the financial strength to continue with the next phase of expansion of Tabang.
Targeted leverage of less than 3x EBITDA throughout the commodity cycle.
Bayan has been assigned independent credit ratings of BB-, Ba3 and B+ by Fitch, Moody’s and S&P, respectively.
Deleveraged the Group
7
Low Cost Incremental Growth
Able to continue expansion using existing infrastructure at Senyiur whilst infrastructure for the next phase is ongoing.
New coal haul road and barge loading facility targeted to be constructed and brought into operations in 2023 which will add additional capacity of approximately 30 million MT.
Budgeted capex in the region of USD 400 million for the Group and USD 270 million for Tabang in the next five years.
Acquired 44% minority shareholding in KRL in December 2018 for USD 165.7 million.
9 13
23
50
65 71
85
96 98
110
130
159 161
175
207
218
0
50
100
150
200
250
30+
55+
Today Upside
…Unlocking tangible capacity
upside at ~US$9/ton
discretionary growth Capex
Tabang Capacity Growth
Capex Intensity by Country (1)
Source: Wood Mackenzie
Notes
(1) Based on 2012 real dollars
(2) US$270m Capex divided by an incremental 30+ Mtpa production / sales capacity
8
4Q 2018
www.bayan.com.sg
Overburden Removal
Coal Production
Weighted Average Strip Ratio
Average Cash Costs
Coal Sales
Average Selling Price
Committed & Contracted Sales
EBITDA
Debt and Cash Position
Capital Expenditure
9
Overburden Removal (OB)
(in million BCM) 4Q18B 4Q18
Teguh Sinarabadi / Firman
Ketaun Perkasa 9.0 9.9
Perkasa Inakakerta 2.0 2.3
Wahana Baratama Mining 3.8 5.4
Tabang Concessions 13.1 19.6
Gunungbayan Pratamacoal 1.4 1.5
Total 29.3 38.6
2018 overburden removal increased by 62.0% over last year due to the significant growth of Tabang
(million BCM)
Note : B stands for Budget Figure
37.9 38.6
0
10
20
30
40
50
3Q18 4Q18B 4Q18
29.3
4Q18 OB was 38.6 million BCM which was 31.7% higher than the Budget and generally in line with the 3Q18.
increase in Tabang due to BUMA and PTP mobilizing additional equipment combined with drier weather.
increase in WBM due to pre-stripping of the high wall in the new CA13 contract area.
FY 2018 overburden removal of 137.5 million BCM represents a 21.1% excess over the Budget.
10
Coal Production
8.1
6.1
0
2
4
6
8
10
3Q18 4Q18B 4Q18
6.7
Note : B stands for Budget Figure
(in million MT) 4Q18B 4Q18
Teguh Sinarabadi/ Firman
Ketaun Perkasa 0.7 0.7
Perkasa Inakakerta 0.3 0.3
Wahana Baratama Mining 0.2 0.2
Tabang Conssesions 5.4 4.8
Gunungbayan Pratamacoal 0.1 0.0
Total 6.6 6.1
2018 coal production increased by 38.3% over last year
(million MT)
4Q18 coal production of 6.1 million was lower than the Budget and 3Q 2018 due to:
Tabang stopping coal extraction for approximately two weeks as site had sufficient inventory
a negative impact from an annual reconciliation process.
FY 2018 coal production of 28.9 million MT represents a 10.2% excess over the Budget.
11
Weighted Average Stripping Ratio (SR)
4Q18B 4Q18
Teguh Sinarabadi / Firman
Ketaun Perkasa13.6 13.3
Perkasa Inakakerta 7.8 7.5
Wahana Baratama Mining 18.1 25.0
Tabang Concessions 2.4 4.1
Gunungbayan Pratamacoal 23.2 -
Total 4.5 6.4
Weighted Average SR (:1)
4.7
6.4
0
1
2
3
4
5
6
7
3Q18 4Q18B 4Q18
4.5
Note : B stands for Budget Figure
Low stripping ratio when compared to our competitors.
4Q18 weighted average stripping ratio was higher than the Budget and 3Q18 mainly due to:
Higher SR at Tabang due to Tabang stopping coal extraction for approximately two weeks and switching coal extraction equipment to overburden activities.
increase in WBM due to pre-stripping of the high wall.
No production in GBP for 4Q18 due to GBP meeting its approved RKAB limit.
12
Average Cash Costs
36.0 36.9
0
10
20
30
40
3Q18 4Q18B 4Q18
30.3
Note : B stands for Budget Figure
Average Cash Costs include Royalty, Barging and SGA
2018 cash costs higher than the Budget partially due to higher royalty caused by higher average selling price
4Q18 Cash Costs were US$ 36.9/MT, which was 21.8% higher than the Budget mainly due to:
Unbudgeted coal purchases.
Higher stripping ratio and longer overhaul at Tabang.
Higher royalties due to higher ASP.
Partially offset with the lower fuel expense due to a drop in market prices.
4Q18 cash costs principally in line with 3Q18.
FY 2018 cash cost of US$ 33.3/MT exceeded the top end of the guidance of US$ 32/MT.
13
Coal Sales (by volume)
6.6
7.5
0
2
4
6
8
3Q18 4Q18B 4Q18
6.7
(million MT)
Note : B stands for Budget Figure
Geographic Distribution (FY 2018) – by Volume
Per Region Per Country
2018 sales volume increased 40.8% from last year volumes
4Q18 coal sales volumes of 7.5 million MT were 11.9% higher than the Budget and 13.6% higher than 3Q18 despite lower water levels during 4Q18 which temporarily restricted barging at Tabang.
Indonesian domestic sales are becoming more significant due to continued effort to support GoI expansion program.
Sales volumes of 28.3 million MT exceeded guidance of between 25 to 28 million MT.
19% of sales were domestic, an increase over last year result of 11%.
India
19%
China
11%
Indonesia
19% Malaysia
11%
Korea
15%
Philippines
16%
Other
9%
North
Asia
30%
South
East Asia
30%
South
Asia
20%
Others
2%
Domestic
18%
14
Average Selling Price (ASP)
61.8 58.2
0
10
20
30
40
50
60
70
3Q18 4Q18B 4Q18
46.1
2018 ASP of US$ 59.3/MT was higher than Budget
Note : B stands for Budget Figure
(U
S$
/ M
T)
ASP includes coal and non-coal sales *
4Q18 ASP of US$ 58.2/MT was higher than the Budget but slightly lower than 3Q18 due to a drop in the market price of low CV coal which was negatively impacted due to import restriction imposed by China in the 4Q18.
FY 2018 ASP of US$ 59.3/MT exceeded ASP guidance of between US$ 48 to 52/MT due to continued strength in market prices.
15
Committed and Contracted Sales for 2019
2019
Fixed Price Floating Price
25.5 million MT
38%
62%
Contracted sales already underpin targeted growth in 2019
Strong demand and contracted volumes underpin anticipated 2019 sales volume growth.
As at 31 December 2018 the Group had committed and contracted sales volumes of approximately 25.5 million MT for 2019 with an average CV of 4,546 GAR kcal/kg.
2019 Fixed Price element at US$ 41.9/ MT with an average CV of 4,434 GAR kcal/kg.
16
EBITDA
169.8 163.2
0
50
100
150
200
3Q18 4Q18B 4Q18
115.1
FY 2018 EBITDA Margin (%) Competitors Table
One of the best EBITDA margin’s in Indonesia
4Q18 EBITDA of US$ 163.2m was 41.8% higher than the Budget and generally in line with 3Q18.
FY 2018 EBITDA of US$ 736.4m represents an increase of 51.8% over last year.
FY EBITDA margin of 43.9% represents industry leading margins in the Indonesian coal sector.
Note : B stands for Budget Figure
43.9 38.9
35.9
24.8
14.4
0
10
20
30
40
50
Bayan Adaro PTBA ITMG GEMS
Source: Company Filings, EBITDA estimated using Company Data
17
55.0
100.0
25.0
130.0
183.8
152.5
188.0
261.8
0
50
100
150
200
250
300
1Q18 2Q18 3Q18 4Q18
Debt Cash and Restricted Cash
Debt and Cash Position
Strong net cash positive
(in
mil
lio
n U
S$
)
As of 31 December 2018 bank debt was USD 130 million under the Permata and SMBC facilities.
The Group became net cash positive from the end of 1Q18 and is anticipated to remain so for 2019.
During 1Q19, amendment to the Permata loan facility which increased the overall limit to US$130 million from US$100 million.
Combined with cash on hand and committed facilities (which total USD 205) the Group has sufficient liquidity.
18
Capital Expenditure
115.9
79.5
0
20
40
60
80
100
120
YTD Budget YTD Actual
Capex is under Budget for this year by 31.4%
In
Mil
lio
n U
SD
Capex FY was US$ 79.5 million, which was below the Budget as the spend on the new coal haul road has not yet commenced.
Major projects included:
Expansion at the BCT including the installation of a second ship loader.
Expansion at Tabang including:
• Coal Pad.
• Partial asphalting of current coal haul road.
• Senyiur jetty expansion.
• Additional support equipment & facilities.
19
www.bayan.com.sg
PT Perkasa Inakakerta PIK
PT Teguh Sinarabadi TSA
PT Firman Ketaun Perkasa FKP
PT Wahana Baratama Mining WBM
PT Fajar Sakti Prima FSP
PT Bara Tabang BT
PT Brian Anjat Sentosa BAS
PT Tanur Jaya TJ
PT Silau Kencana SK
PT Orkida Makmur OM
PT Tiwa Abadi TA
PT Sumber Api SA
PT Dermaga Energi DE
PT Bara Sejati BS
PT Apira Utama AU
PT Cahaya Alam CA
PT Mamahak Coal Mining MCM
PT Bara Karsa Lestari BKL
PT Mahakam Energi Lestari MEL
PT Mahakam Bara Energi MBE
Tabang
Pakar
Mamahak
Appendix
20
www.bayan.com.sg
Appendix
Kangaroo Resources Limited KRL
PT Dermaga Perkasapratama DPP
PT Indonesia Pratama IP
PT Muji Lines Muji
PT Bayan Energy BE
PT Metalindo Prosestama MP
PT Sumber Aset Utama SAU
PT Karsa Optima Jaya KOJ
21
Disclaimer
www.bayan.com.sg
This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events. These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for coal generally and for our products in particular, the success of our mining activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for planned expansion efforts, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement.
22
Thank You
www.bayan.com.sg