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PT Toba Bara Sejahtra Tbk (“Toba”)
Company PresentationFirst Quarter 2013
2
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.
These materials are for information purposes only and do not constitute or form part of an offer, solicitation
or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor
should it or any part of it form the basis of, or be relied upon in any connection with, any contract,
commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities
of the Company should be made after seeking appropriate professional advice.
3
Content
Financial Highlights4
1 Corporate Profile
2 Operational Profile
3 Business Overview
CSR & Environmental Highlights5
4
Corporate Profile 1
ABN69%
IM31%
5
ABN66.1%
IM15.7%
TMU18.2%
Toba comprises three coal companies, Adimitra Baratama Nusantara (ABN), Indomining (IM) and Trisensa
Mineral Utama (TMU), which hold adjacent concession areas located in East Kalimantan, Indonesia
Toba in Brief
• Substantial and diversified thermal coal
reserves and resources
oJORC-compliant proved and probable reserves of
147 MM tonnes and measured, indicated and
inferred resources of 236 MM tonnes
oCoal brands with calorific values ranging from
4,700 - 5,800 Kcal / kg GAR
ABN79.6%
IM15.0%
TMU5.4%
Reserves%
• Strong growth profile
oProduced 5.2 MM tonnes of coal in 2011 and grew to
produce around 5.6 MM tonnes of coal in 2012
o Prime location provides the operational cost edge to
grow as a logistical & operational center for the area
oContinued exploration effort to increase our Reserves and
Resources. Current reserves only account for 52% of our
total area has been explored
Dec 2012 Revenue%
Dec 2012 EBITDA%
Resources%
Total: 147 MM TonnesTotal: US$ 396 MM Total: US$ 31 MM (1) Total: 236 MM Tonnes
ABN74%
IM23%
TMU3%
Note: (1) Includes net income attributable to minority interest (ABN and IM only)
6
Notes:
1. Son of TS founder, Luhut B. Pandjaitan
2. Figures are rounded
Ownership Structure
• 20-year Production Operation Mining
Permit (“IUPOP”) expiring in December
2029
• IUPOP was converted from a Kuasa
Pertambangan (“KP”) in 2009
• IUPOP expiring in June 2013
– IUPOP was converted from a KP in 2010
• IUPOP extension has been completed in
March 2013 (First extension until 2023)
• 13-year IUPOP expiring in December
2023
• IUPOP was converted from a KP in
2010
• 2,990 ha • 683 ha • 3,414 ha
• Reserves: 117MT- JORC
• Resources: 156MT- JORC
• Reserve: 22 MT- JORC
• Resources: 37MT- JORC
• Reserves 8 MT- JORC / 15 MT (Internal
estimate)
• Resources: 43 MT- JORC
License
Area
Davit Togar Pandjaitan (1) PT Bara Makmur AbadiPT Toba Sejahtra (“TS”) Roby Budi PrakosoPT Sinergi Sukses Utama
71.8% 0.8% 6.2% 5.1%
PT Toba Bumi Energi (“TBE”)
99.99% (2)
99.99% (2)
3.6%
ABN Minorities
49.0%
51.0% 99.99% (2)
Public
12.5%
Reserve
7
Majority Shareholder
Toba believes it benefits from Toba Sejahtra’s experience in the Indonesian coal sector as well as its
leadership and experience
Controlling Shareholder with Established Track Record… … Helmed by an Experienced Leader
• A privately owned group founded in 2004 with interests in energy
and plantations
• Its business segments are as follow:
– Energy: Owns 5 coal mining concessions through Toba and PT
Kutai Energi. All of TS' mines are characterized by low production
costs and favorable proximity to ports
– Oil & Gas: In the exploration phase of the 4,567 sq miles South
East Madura Block through subsidiary E&P company PT Energi
Mineral Langgeng
– Power Plant: Operates a 30 MW coal-fired power plant in Palu,
Central Sulawesi and is developing a 120 MW greenfield power
plant in Senipah, East Kalimantan
– Agribusiness: A 25% stake in a 12,000 ha palm oil plantation in
East Kalimantan
• General (Ret.) Luhut B. Pandjaitan is the key shareholder and
founder of Toba Sejahtra group. He is currently the chairman of TS
• Mr. Luhut had a long and illustrious career in the civic service
before turning to the commercial sector. Over the course of thirty
years in the Army Special Forces, Mr. Luhut rose to become a four-
star general
– In 1999, Mr. Luhut retired from the military service to serve as
Ambassador for the Republic of Indonesia to Singapore
– In 2000, he was appointed Minister of Industry and Trade of the
Republic of Indonesia
• Thereafter, Mr. Luhut applied his knowledge and leadership skills to
establish TS in 2004, building it from the ground up into a major
business group with interests in energy oil and gas, power and
agribusiness
8
Initial Public Offering
Listed on IDX 06 July 2012
Number of shares offered 210.681.000 shares or 10.47%
IPO Proceed Rp. 400,293,900,000
Anchor Investor Barings Private Equity (8% at IPO)
Ticker Code TOBA
9
2007
• IM commenced
production
2011
• TMU commenced
production
• Toba production
hit 5m tons
2008
• ABN commenced
production
• Operational
adjustment due to
a drop in coal
market
2010
• TS acquired the remaining share
for IM from minority shareholder
• Toba acquired 51.0% of ABN,
52.5% of TBE (IM’s shareholding
company) and 51.0% of TMU
• Toba production hit 4m tons
Key Milestones
Strong track record of acquisitions, development of greenfield mines, rapid production ramp-up and
experience to adjust operation in a down-market
2007 2008 2009 2010 2011 2012 2013
2012
• Toba acquired the minorities’shares in TBE and TMU
• IPO/Listed on IDX, 6th July
2012
• Eliminated overlapping issues
with plantation company (PKU)
2009
• ABN & IM production
reached 2m tons
2013
• IM successfully
extended IUPOP
until 2023
10
Operational Profile2
Source: Company data
0.1
1.1
3.1 3.8
4.4
~ 6,5
0.7
0.9
0.9
1.4
1.0 0.0
0.3
0
1
2
3
4
5
6
7
2007 2008 2009 2010 2011 2012 2013
TMU Indomining ABN
11
Solid Operating Track Record
0,8
2,0
3,9
5,3
5,6
Production GrowthMT = Million Tonnes
0,2
~5,8 – 6,4
Fo
recast
• Toba started exploration on ABN & IM in 2006 and TMU in 2008
• Production grew at 65% CAGR from initial size of 800k in 2008 to 5.6 MT in 2012
• Toba is focusing on Continuous Production Growth and this is supported with available
infrastructure capacity of 13 MT of coal
• Additional 3 MT worth of capacity is expected to be realized in 3-4Q13 to become total 16 MT
• Production growth will be driven by TMU and Additional CAPEX will help fuel growth in TMU
ABN
IMTMU
Toba is transitioning from Greenfield into growing major player
Fo
recast
12
Prime Location Gives Significant Advantage in Cost
Samarinda
Mahakam River
Muara Jawa
Muara
Berau
Makassar Strait
Major City
Jetty
Transshipment Point
~55 Km
(total ~120 Km)
~65 Km
kilometers
0 12 24 36 48
ABN
Kutai Energy
Adjacent
locations for all
3 mines
TMUABN
IM
1
17km
ABN Jetty
IM Jetty
~ 5 km
NDM Jetty
17km
Furthest pit to
jetty 25km | with
closest one ~5km
3Major city is
less than 50
km
4
Close proximity
transhipment
point & jetty
2
All infrastructures are owned by Toba’s giving significant operating
leverage vs other concessions in surrounding areas
Prime Location
13
ABN
66.1%
TMU
18.2%
IM
15.7%
Coal Reserves Coal Resources
(MM
Tonnes) Proved Probable
Total
Reserves Measured Indicated Inferred
Total
Resources
ABN 70 47 117 73 70 13 156
IM 11 10 22 24 10 4 37
TMU 5 4 8 9 8 26 43
Total 86 61 147 106 88 43 236
Reserves and resources upside from the conversion of resources to reserves and further exploration of
concession areas
Notes:
1. Differences in totals are due to rounding
2. The Runge Report for ABN is as of 31 December 2011, the PT SMG Consulting Report for IM is as of 1 January 2012 and the Marston Report for TMU is as
of 31 October 2011
Total: 147 MM Tonnes Total: 236 MM Tonnes
Substantial Reserves and Resources to
Support Production Expansion
Coal Reserves and Resources (1)(2) (JORC)Reserves (1)
MM Tonnes
Resources (1)
MM Tonnes
ABN
79.6%
TMU
5.4%IM
15.0%
Note: Areas already explored
14
ABN
IM
Significant Portion of Area still Unexplored
• Explored 3,704 of 7,087 hectares of its concession areas (52% of total concession area) and drilled 3,512
boreholes as of 31 December 2011
• Additional JORC coal reserves and resources expected to be discovered, especially at TMU where only 680
hectares out of 3,414 hectares of the concession (20% of TMU concession area) have been explored
TMU
15
Strong Relationships with Multinational Customers
Major Customers
DRAGON ENERGY GROUP
Major customers provide the stable
business support for Toba’s marketing…
… minimum marketing fees because Toba
handles our own marketing internally
Toba’s Marketing Operations
Central Marketing Operations of all 3
subsidiaries
Internally developed customer base that
allows Toba to have low marketing costs
Balance mix of long term contracts, short
term and spot
Active participation in reputable
conference and trade shows to promote
the Toba brand
Enhance marketing strategy to sell
directly to end-users
16
Business Overview3
17
Recent Coal Market Update
Coal Prices Rebound
Range-bound US$88 -95/ton
China’s Economic Recovery
• Coal Prices have bounced back from
high 70’s in 4Q 2012 and are range-
bound at US$88 – 95/ton in early 2013
• China’s economic recovery rebounded in
4Q 2012 as China is the largest buyer in
the global seaborne market
20122012 2013
Source: Platts Source: Bloomberg
18
Manage cash costs: Lower SR,
Shorten Dump Distance
Construct hauling road from
TMU to IM
Share current infrastructures :
CPP & Jetty & lower costs
Centralize fuel supply
Optimize sales through hedging
activities
Increase our reserves through
acquisition and exploration
Strategic Initiatives to Manage Changing Environment
Returning future
Profitability
Level
Strategic Initiatives / Response to Changing Coal Prices
1
2
3
4
5
6
19
Toba’s Milestone 2013
2007 2008 2009 2010 2011 2012
• Hauling Road TMU – IM
has been completed
ahead of schedule
• TMU Production ready
for ramp up to 80 - 100 K
tons/mo
May’13 Sept’13
• New CPP in IM
expected to be
completed
• Indomining
Capacity expected
to increase up to 6
MMTPA
Oct’13
• 2nd underpass in
ABN expected to
be completed
Apr’13
• TMU set up mine
operations in
block 4
• Border-mining in
ABN & IM
commenced
Jan’13
• IM entered into
new Mining
Contract with
RPP for 5 years
Toba is on track in integrating its operation and infrastructure
capabilities
………..
20
Integration of three (3) mines
• Benchmarking and
sharing between
departments and
functions
• Optimize and
coordinate mine
planning and logistics
• Centrally coordinate
and streamline
corporate finance,
legal, human resource
and CSR functions
• Joint mine plan and
infrastructure sharing
1Increase coal reserve
and resource
• Continue exploration
activities to increase
proven and probable
reserves as only 52%
has been explored to
JORC standard
• Consider opportunities
to acquire coal
concessions with
significant reserves
3Strengthen existing
and develop new customer
relationships
• Supply a higher
proportion of sales
volume to end users,
while maintaining
relationships with
existing coal traders
• Target customers in
Japan, Taiwan, South
Korea, China, Vietnam
and Hong Kong, South
East Asia and India
4Continue to focus on
health and safety, environmental track
record and commitment to CSR
• Maintain and enhance
high international
operating standards,
utilize automated
mining methods to
minimize accidents and
enhance safety
• Foster community ties
through development
programs as well as job
creation
5Organically increase
coal production levels
• Expand coal production
through increased
production and mine
development activities
• Strengthen
relationships with third
party mining
contractors and work
closely with them to
improve their
productivity
2
Business Strategies
Growing Reserves and Maintain Profitability at Different Cycles
21
Operational & Financial Highlights4
22
Toba Bara Operational Performance
Quarterly Production & Stripping RatioThousand Tonnes
Production
(million ton)
Stripping
Ratio (x)
1Q12 1Q13
1.1 1.3
17.7 15.2
Production Summary
Stripping Ratio continues
to decline
Sales
(million ton)1.1 1.4
Sales are mainly contributed by ABN and remain flat at 5.5
million tonnes per year for two consecutive years
Change
27%
18%
-14%
Comments
Production rose 18% to 1.3 milllion due to lower rainfall.
Contributions: from ABN 0.93 million tons, from IM 0.28
million tons and from TMU: 0.08 million tons
Stripping ratio was higher in 2012 primarily due to pre-
stripping activities in 1H 2012 in all three (3) mines, and
delay caused by higher rainfall
Source: Company data
Pre-stripping activity was lower in
1Q13 vs 1Q12, causing lower SR
on yoy basis. Yoy production was
higher due to lower rainfall while
dump distance fell from 2.3km in
1Q12 to 1.6km in 1Q13
774 768 1,141 1,078 884 1,078 1,224 1,225 925
11.1x
16.8x
13.7x14.2x
17.6x17.1x
14.5x 12.6x
16.6x
5x
10x
15x
20x
500
1,000
1,500
1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q2013
Production volume Stripping Ratio
23
ABN Operational Performance
Production & Stripping RatioThousand Tonnes
Despite significant changes in coal market price, production
grew 17 % YoY. ABN Operation in 1H2012 was impacted by
higher mining SR and higher rainfall
Operational advantage & focus
Short coal hauling distance 4km
High Built Crusher Cap 10 mm ton/year
Barge Loading JettyLoading Speed of up to
1,800 ton/hour
Under Pass:Capitalizing on Infra
Strength
1 2 3 4
ABN
Key Highlights
TMU
IM
PT Kutai Energi
24
IM Operational Performance
IM operation was impacted by higher mining SR and lower level
of equipment productivity from contractor
IM appointed PT RPP Contractor Indonesia replacing SIS
starting January 2013
IUPOP has been extended until 2023
Key Highlights
Production & Stripping RatioThousand Tonnes
Operational advantage & focus
Short coal
hauling dist. < 5km
CPP Ramp up to
6MM TPY
Conveyor for TMU
& Others
Cross Border
Mining with ABN
1 2 3 4
TMU
ABN
PT Kutai Energi
291 394 378 347
190 236 265 272 278
10.1x
8.6x8.9x
8.1x
14.6x14.5x 13.1x
10.5x11.2x
5x
10x
15x
0
250
500
1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013
Production volume Stripping Ratio
Dump
Distance(m)2,809 2,822 2,530 2,550 2,564 2,547 2,179 2,178 1,724
25
TMU Operational Performance
Key Highlights
Production & Stripping RatioThousand Tonnes
Operational advantage & focus
TMU started pre-striping in 4Q 2011 until 2Q 2012. High level
of rainfall caused higher stripping ratio
Further drilling is expected to increase reserves. Our internal
estimation expects additional reserves of approximately 7
million tons, hence totaling 15 million tons
Build ~16km
Road to ABN
Integrate CPP
Ops with IM
Exploration in
West Block
1 2 3
ABN
IM
PT Kutai Energi
0 0 0
39 23 59 85 90 84
24.5x
45.6x
14.4x
17.0x10.8x
11.2x
10x
20x
30x
40x
50x
0
25
50
75
100
1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013
Production volume Stripping Ratio
26
Snapshot of Financial Performance –
1Q 2013 vs 1Q 2012
Notes (a) FOB vessel Costs: COGS, Selling Expenses excluding depreciation
and amortization
(b) 1Q 2013 Financials is unaudited
(a)
• Coal Production Volume
increased 17% QoQ mainly due
to lower rainfall and better
overall stripping ratio
• Sales Volume increased by 27%
due to increase in production
volume and clearance of our
2012 ending inventory
• FOB vessel cash costs
decreased by 18% due to lower
stripping ratio and shorter
dumping distance
• EBITDA decreased by 38%
mainly due decrease in ASP of
23%
1Q 2012 1Q 2013 Change %
Operation
Sales Volume million ton 1,1 1,4 27%
Coal production million ton 1,1 1,3 17%
Striping Ratio x 17,7 15,1 -15%
NEWC Index US$/ton 114 93 -18%
Financials
Sales US$'000 97.563 94.942 -3%
Gross Profit US$'000 21.077 14.389 -32%
Operating Profit US$'000 14.061 7.742 -45%
EBITDA US$'000 15.131 9.445 -38%
Net Income US$'000 10.658 5.972 -44%
Net Income after Minority
Interest
US$'000 5.100 3.210 -37%
Ratio
Gross Profit Margin % 21,6% 15,2% -30%
EBITDA Margin % 14,4% 8,2% -43%
Net Profit Margin % 11% 6% -42%
Per Ton Basis
ASP US$/ton 86,5 66,2 -24%
FOB Vessel Cash Cost US$/ton 67,1 55,1 -18%(a)
27
Debt and Cash Position
Net Debt PositionUS$ Mn
Net Cash 2% 34% 6% 11% Net CashNet Debt to Equity
28
CSR & Environmental Highlights5
29
• Toba is continuously developing and implementing its corporate social responsibility programs
– Creating educational opportunities for local communities including renovating schools, training teachers,
providing post-graduate educational assistance and creating a literacy program for adults and a scholarship
program for school-aged children
– Providing health services to the local communities
– Helping groups of farmers plant crops of vegetables and bamboo and assisting with land rehabilitation
– Creating local employment opportunities by sourcing some of the Company’s site workforce from the
neighboring areas
Helping Farmers Plant Crops Creating Educational OpportunitiesProviding Health Services
Toba is Committed to Being a Responsible
Corporate Citizen
30
Awards
Ernst & Young Social
Entrepreneur of the
Year 2011
East Kalimantan Green
Proper Mining Award
ABN
East Kalimantan Blue
Proper Mining Award
Indomining
31
Appendix
32
• Current production capacity (31 December 2012):
– Crusher: 10 MM tonnes p.a.
– Conveyor: 10 MM tonnes p.a.
• Produces two varieties of blended thermal coal
– ABN 52: Marketed CV(1) of 5,200 kcal / kg GAR
– ABN 55: Marketed CV of 5,500 kcal / kg GAR
– ABN 58 : Marketed CV of 5,800 kcal / kg GAR
• Substantially all of the owners of the land within ABN’s
concession area have been compensated and ABN has been
granted the exclusive right to mine those areas
• Area: 2,990 ha
• Location: Sanga-Sanga, Kutai Kartanegara, East Kalimantan
• Type of license: IUPOP
• Expiry date: 1 December 2029
• Commencement of production: September 2008
• 2012 production: 4.4 MM tonnes
• Mining consultant: PT Runge Indonesia
ABN: Coal Concession Overview
IM
TMU
ABN
JettyABN
Overview
Operations
Marketing
• Historically sold between 50%-100% of its annual production through
long-term (longer than 1 year) with coal trading companies
– The remainder were sold on the spot market
Note:
1. Calorific value
33
• Current production capacity (31 December 2012):
– Crusher: 3.0 MM tonnes p.a.
– Conveyor: 4.5 MM tonnes p.a.
• Produced one variety of blended thermal coal “Indomining”
with marketed CV(1) of 5,700 kcal / kg GAR in 2012
– May produce additional varieties of blended thermal coal in
the future
• Has compensated the majority all of the owners of the land
within its concession area for their land and has been granted
the exclusive right to mine those areas
• Area: 683 ha
• Location: Sanga-Sanga, Kutai Kartanegara, East Kalimantan
• Type of license: IUPOP
• Expiry date: 22 June 2013 (in the process of renewing its
IUPOP; expects to receive renewal confirmation through 2022
by end of 1st quarter 2013)
• Production commencement: August 2007
• 2012 production: 1 MM tonnes
• Mining consultant: PT SMG Consultants
IM: Coal Concession Overview
IM
TMU
Overview
Operations
Marketing
• Historically sold approximately 50% of its annual production through
short-term (one year or shorter) contracts with coal trading companies
– Clients include Glencore, Flame, Peabody, Dragon, Aempire
• The remainder are sold on the spot market
IM
Jetty
Note:
1. Calorific value
ABN
34
• Current production capacity (31 December 2012):
– Crusher: 1.4 MM tonnes p.a.
• Produces one variety of blended thermal coal “Trisensa-
47”, with marketed CV(1) of 4,700 kcal / kg GAR
– May produce additional varieties of blended thermal
coal in the future
• Area: 3,414 ha
• Location: Loa Janan, Muara Jawa and Sanga-Sanga,
Kutai Kartanegara, East Kalimantan
• Type of license: IUPOP
• Expiry date: 14 December 2023
• Commencement of production: October 2011
• 2012 coal production: ~257,000 tonnes
• Mining consultant: Marston & Marston
TMU: Coal Concession Overview
Overview
Operations & Marketing
Note:
1. Calorific value
Jetty NDM
Planned haul
road and jetty
(17 km)
IM
ABN
TMU
Sungai Sangasanga
Sungai Dondang
Pulau Seribu
Jetty KE
Planned haul road
to ABN and IM (25 km)
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