1
PT Toba Bara Sejahtra Tbk (
䇾
Toba
䇿
)
Company Presentation
Disclaimer
These materials have been prepared by PT Toba Bara Sejahtra (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.
Table of Contents
Marketing Highlights
Corporate Events
Operational Highlights
Financial Highlights
3
3
1
2
Macquarie Mining Conference
McCloskey Conference
5
Events in 9M 2014
IHS Asia Coal Market Outlook
13 August 2014
Theme: Half-day event discussing key issues facing Asian coal market
23-24 September 2014
Prime Location Gives Significant Cost Advantage
City Jetty Transhipment Point
TMU – IM
Major city is less than 50 km
Adjacent locations for all
3 mines
Close proximity transhipment
point & jetty Furthest pit to jetty 25 km, with closest
one ~5 km
~5 km IM jetty ABN jetty
TMU
IM ABNTMU
Toba’s Concessions
Underpass Infrastructure
Loading Speed of 1,800 TPH High Built CPP Cap
10 Mn TPA Hauling Road to IM
Mine Ops Commenced at Block 4
Short Coal Hauling Distance < 5km
CPP Ramp Up to 6Mn Tons/Annum (TPA)
Conveyor for TMU & Others
Short Coal Hauling Distance 4km ABN
TMU
Infrastructure & Operational Capabilities
INDOMINING
2008 2009 2010 2011 2012 2013 2014e
TMU IM ABN
Yearly Coal Production
Mt : In Million Tons
Operational Data
2008 2009 2010 2011 2012 2013
Production Volume (Mt) 0.8 2.0 4.0 5.2 5.6 6.5
achievement >10 million tons
Cumulative Production Achievement >20 million tons
Solid Operating Track Record
9
Note: 2014e: Toba’s Production target in 2014
• Production volume rose significantly from only ~800,000 tons in 2008 to ~6.5 mn tons in 2013, booking CAGR growth of 52.2% over relatively short period of 5 years
• IM and TMU both contributed to
Company’s 2013 total
production’s higher volume growth of ~40% and ~260% respectively
• Stripping Ratio (SR) decreased from 14.9x in 2012 to 13.4x in 2013 resulting in lowered mining costs
• TMU’s production solidly increased from quarterly run-rate of ~84,000 tons in 1Q13 to high of ~420,000 tons in 4Q13 post earlier-than-expected completion of hauling road from TMU-IM via ABN in 2Q13
6.4
Company Operational Performance in 9M14
Quarterly Production & Stripping Ratio (SR)
Production in Thousand Tons
Production Summary
MT: Million Ton
9M13 9M14 Change Comment
Sales volume grew significantly in line with production volume growth
SR continued to fall resulting in lower mining cost • Quarterly production run-rate of
minimum 1.9 Mt has been
maintained for last 4 consecutive quarters due to more streamlined mining operations
• 3Q14 volume reached ~2.3 Mt, up from 1.9 Mt in 1Q14
• SR normalized to 12.5x in 3Q14, down q-o-q from 13.8x in 2Q14, and slightly down y-o-y from 12.7x in 3Q13
4.59 6.40
Production volume grew y-o-y significantly
from 9M13 to 9M14 mainly driven by border mining at IM and production ramp-up at TMU.
39.4%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
ABN Operational Performance
ABN
TMU
IM
PT Kutai Energi
11
Quarterly Production & Stripping Ratio
Production in Thousand Tons
Quarterly production rose from 1.0 mn Mt in 1Q14 to 1.2 mn Mt in 2Q14 and to 1.3 mn Mt in 3Q14, while quarterly run-rate has stabilized at average of 1.0 – 1.2 mn Mt per quarter over past 4 consecutive quarters
Higher q-o-q SR from 14.1x in 1Q14 to 14.9x in 2Q14 but normalized to 12.4x in 3Q14
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
TMU Operational Performance
ABN IM
PT Kutai Energi
Note:
- - -
Hauling road Post completion of hauling road at TMU to ABN in 2Q13, production run-rate significantly rose from low of 80-90K per quarter up to average 380K per quarter over last 3 quarters of 1Q14, 2Q14, and 3Q14
SR in 3Q14 remained same as 2Q14 SR at 11.7x
SR is expected to be maintained in 4Q14 Key Highlights
Quarterly Production & Stripping Ratio
Production in Thousand Tons
84 146 275 420 362 379 402
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
IM Operational Performance
TMU
ABN
PT Kutai Energi
13
Quarterly Production & Stripping Ratio
Production in Thousand Tons
Quarterly production run-rate stabilized at 550K level throughout 1Q14, 2Q14, and 3Q14, up from quarterly run-rate of c.300-330K for 1Q and 2Q13
9M14 production volume rose ~80.0% y-o-y from 980K in 9M13
SR slightly rose 4.0% q-o-q to 13.3x in 3Q14 due to pre-stripping activity but it fell on y-o-y basis from 14.7x in 3Q13 to 13.3 in 3Q14 .
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Evolution of Quarterly FOB Cash Cost from 2012-2014
Constant convergence between FOB cash cost and adjusted FOB cash cost underline normalization of SR over quarterly period resulting from more efficient mine operations
Quarterly FOB Cash Cost In US$/ton
Notes:
(1) FOB Cash Cost = COGS including royalty and selling &marketing expense – depreciation and amortization
(2) Adj. FOB cash costs = COGS, including selling & marketing expense and royalty – depreciation & amortization of exploration & development and excluding deferred stripping cost
15
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
FOB Cash Cost
32.4 40.2
9M 2014 Highlights
EBITDA surged by 44.0% y-o-y
Production volume expanded
15.9
19.3
30.9
9M12 9M13 9M14
22.6
40.2
57.8
9M12 9M13 9M14
283.4 297.5
389.7
9M12 9M13 9M14
9M 2014 Financial Performance
Sales
US$ million
EBITDA
US$ million
Net Profit (a)
US$ million
Note: (a) Net Income before minority interest (b) Figures are unaudited
Despite declining NEWC Index price trend on y-o-y basis from 9M12 to 9M13 and to 9M14, sales value increased 5.0% from US$ 283.4 million in 9M12 to US$ 297.5 million in 9M13, and 31.0% to US$ 389.7 million in 9M14
EBITDA surged 78.1% y-o-y to US$ 40.2 million in 9M13, and 44.0% y-o-y to US$ 57.8 million in 9M14 resulting from higher sales volume and better mine plan execution, hence lowering mining costs in process
Total profit for the period in 9M13 stood at US$ 19.3 million, up 21.7% from 9M12. Meanwhile from 9M13 to 9M14, profit increased y-o-y by 59.8% to US$ 30.9 million
EBITDA increased 44.0% y-o-y
to US$ 57.8 mn in 9M14 attributable to increased
production and lower cash cost
by 39.4% and -5.4% respectively
Financial Performance
Note Figures are unaudited
Despite weaker ASP, sales rose 31.0% y-o-y to US$ 389.73 mn in
*FOB Cash Cost = COGS including royalty and selling expense – depreciation and amortization
– –
All figures are in million US$
unless otherwise stated 2Q14 3Q14 Changes 9M13 9M14 Changes
Operation
Profit (Loss) 2Q14 3Q14 Changes 9M13 9M14 Changes
Sales US$ Mn 124.83 142.90 14.5% 297.50 389.73 31.0%
Gross Profit Margin % 16.9% 15.3% 17.7% 17.1% EBITDA Margin % 13.8% 13.7% 13.5% 14.8% Operating Profit Margin % 11.8% 10.8% 9.8% 12.3%
Balance Sheet
Consolidated Balance Sheet In Thousand US$
Net Debt to EBITDA In Million US$
Total assets rose 5.8% to US$ 329.62 mn in 9M14 from US$ 311.65 mn as per end 2013
Over same period, total liabilities increased 2.4% to US$ 185.47 mn due to higher operational activities resulting in higher payables to counterparties, while offset by lower prepayments from customers
Total equity in 9M14 increased 10.5% to US$ 144.15 mn from US$ 130.48 mn, attributable to additional income for the period
Account Payable Days
Dec-13
Sep-14
Changes (%)
Cash and Cash Equivalents
63,302
64,312
1.6
Marketing Performance
NEWC Index & ASP (in US$/ton) Sales Volume, Y-o-Y (in Mn Tons)
Product Contribution (GAR) Marketing Highlights
29%
21
Average NEWC Index declined by 14.6% from US$ 85.70/ton in 9M13 to US$ 73.15/ton in 9M14
Sales volume increased by 37.9%, y-o-y from 4.41 mn tons in 9M13 to 6.08 mn tons in 9M14
~90-95% of 2014 sales volume has been secured
Total sales are mainly contributed from 4700 GAR and 5600 GAR products
3.2 4.2
2010 2011 2012 2013 9M14
9M14 Marketing & Sales
–
Quality & Diversified Buyers
Note: Total Sales 9M14: 6,08 Mt
Initiatives Undertaken:
Maintaining well-diversified customer base consisting of mainly reputable international traders, while also growing the no of end-users
Generating good quality sales backed by quality buyers and favorable terms of payment
Achieved tighter discount rate to reference market price with ASP of US$ 65-68/ton
Major customers provide the stable business support for Toba’s marketing…
Major Customers Export Destinations by Country
36.2%
Glencore Mercuria Vitol Dragon Energy
Average Selling Price Analysis
Sales Contract Discount to NEWC-Adjusted Selling Price
Newcastle (6,322 GAR)
Average Selling Price - FOB Vessel (5,600 GAR)
From double digit, discount has
narrowed to single digit relative to current
price level
-6%
Majority of 2014 sales volume has been contracted with buyers at fixed price
US$
23
90 - 95% 5 - 10%
Contracted
