PT ABM Investama Tbk · IDX:ABMM
PT ABM Investama Tbk — 1H 2014 Earnings Presentation
82 slides from PT ABM Investama Tbk's earnings presentation, 2014
Slide 1: PT ABM Investama Tbk 1H 2014 Result
PT ABM Investama Tbk 1H 2014 Result Company Presentation
Slide 2: Cautionary Statements
Cautionary Statements DISCLAIMER: This presentation has been prepared by PT ABM Investama Tbk (“ABMM” or the "Company") solely for general information. By attending the meeting where the presentation is made, or by reading the presentation slides, you acknowledge and agree to the limitations and not
Slide 3: About ABM
About ABM IDX Stock Code ABMM Listing Date / IPO Price December 6, 2011 / IDR 3,750 Last Price (June 30, 2014) IDR 2,970 Market Cap (June 30, 2014) IDR 8,177 billion (US$ 688.6 million) Free Float 11.4% PT ABM Investama Tbk (ABM) is an integrated energy company involved in strategic investment in th
Slide 4: ABM's Five Strategic Business Units (SBUs)
ABM’s Five Strategic Business Units (SBUs) • Established 2006 • Employees: 8,538 (Holding: 65) Coal Mine Power Engineering Integrated Mining Contractor Solutions Services Logistics • Established 2010 • Established 1997 • Established 1992 • Established 1977 • Established 1997 • 7,703 hectares • Fleet
Slide 5: Agenda
Recent Updates 6 Operational Highlights Financial Highlights Strategy and Mitigations Appendices
Slide 6: Recent Updates
Recent Updates January 20, 2014 – ABM made a loan drawdown from the Term Loan Facility (TLF) of US$319 million as part of the Company’s financing consolidation to repay the bank loans of its subsidiaries except Sumberdaya Sewatama February 18, 2014 – Alfa Trans Raya (ATR), the industrial vessel
Slide 7: 1H 2014 Result Summary
1H 2014 Result Summary (in USD million) 1H 2013 1H 2014 Y-o-Y Net Revenues 422.9 360.6 (14.7%) EBITDA 80.8 70.1 (13.3%) EBITDA margin 19.1% 19.4% Net Profit1 20.5 4.7 (77.2%) Net Profit Margin 4.8% 1.3% 1: Including net gain on the sales of fixed assets of US$3.9mn (1H 2014) and US$17.3mn (1H 2013)
Slide 8: Agenda
Recent Updates Operational Highlights 9 Financial Highlights Strategy and Mitigations Appendices
Slide 9: Operational Highlights
Operational Highlights Page 10 Page 28 Page 35 Page 40 Page 44 COAL MINE POWER ENGINEERING INTEGRATED MINING CONTRACTOR SOLUTIONS SERVICES LOGISTICS Rapid production One of Indonesia’s top Leading power engine Unique engineering A growing logistics player growth from 3 mining 10 mine contractors ren
Slide 10: Coal Production at TIA, South Kalimantan
Coal Production at TIA, South Kalimantan
Slide 11: Barge Conveyer at TIA, South Kalimantan
Barge Conveyer at TIA, South Kalimantan
Slide 12: Capsize Maiden Shipment for TIA coal
Capsize Maiden Shipment for TIA coal
Slide 13: Reswara Minergi Hartama – Coal Mining Snapshot
Reswara Minergi Hartama (Reswara) – Coal Mining Tunas Inti Abadi (TIA) Snapshot: Mine Location : South Kalimantan Type of Permit : Mining Authorization (IUP) Coal Quality : 4,100-3,900kcal/kg (GAR) 5.7% ash (adb), 0.3%-0.5% Sulfur (adb) JORC Reserves : 52 million tons Commercial Start : August 2009
Slide 14: Reswara Coal Mining Recent Updates
Reswara Minergi Hartama (Reswara) – Coal Mining Recent Updates: Total production volume and sales volume of Reswara group in 1H 2014 amounted 2.96 mn tons and 3.00 mn tons, respectively Tunas Inti Abadi (TIA), the biggest coal mine in Reswara group, reported total sales of 2.85 mn tons, accounte
Slide 15: Reswara: Production Volume 1H 2014 vs. 1H 2013
Reswara: Production Volume 1H 2014 vs. 1H 2013 1H 2014 Reswara Coal Production ( thousand tons ) Production Volume Breakdown MIFA BEL 2,9% 1,4% +15% 2.962 TIA 95,8% 2.580 1H 2013 Production Volume Breakdown MIFA BEL 4,4% 1,5% 1H 2013 1H 2014 TIA 94,1% 15
Slide 16: Reswara: Production Volume 1H 2014 vs. 1H 2013
Reswara: Production Volume 1H 2014 vs. 1H 2013 TIA Production (thousand tons) MIFA Production (thousand tons) BEL Production (thousand tons) 2.837 114 39 40 2.427 85 1H 2013 1H 2014 1H 2013 1H 2014 1H 2013 1H 2014 16
Slide 17: Reswara: Sales Volume 1H 2014 vs. 1H 2013
Reswara: Sales Volume 1H 2014 vs. 1H 2013 1H 2014 Reswara Coal Sales ( thousand tons ) Sales Volume Breakdown MIFA BEL 3,0% 1,8% +2% 2.927 2.996 TIA 95,2% 1H 2013 Sales Volume Breakdown MIFA BEL 2,9% 1,5% TIA 1H 2013 1H 2014 95,6% Note: Include TIA trading volume of 8k tons (1H 2014) vs. 413k tons (
Slide 18: Reswara: Sales Volume 1H 2014 vs. 1H 2013
Reswara: Sales Volume 1H 2014 vs. 1H 2013 TIA Sales (thousand tons) MIFA Sales (thousand tons) BEL Sales (thousand tons) 2.852 91 53 2.798 84 45 1H 2013 1H 2014 1H 2013 1H 2014 1H 2013 1H 2014 18
Slide 19: Reswara: Market Destination 1H 2014
Reswara: Market Destination 1H 2014 All of MIFA and BEL coal sold to the domestic buyers Most of TIA coal exported to China and India Breakdown of Customers based on Sales Volume Domestic 5% India 37% China 58% 19
Slide 20: Reswara: Coal Sales and Production 2009 - 2013
Reswara: Coal Sales and Production 2009 - 2013 Production Volume and Sales Volume ( thousand tons ) 6.000 5.325 4.971 5.000 4.665 3.921 4.000 3.000 2.163 1.906 2.000 1.179 999 1.000 695 113 - FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Entire coal production volume and sales volume contributed by TIA 20
Slide 21: TIA: Monthly Sales Volume and Production Volume
TIA: Monthly Sales Volume and Production Volume 1H 2014 Coal Sales : 2.85 mn tons, +2% y-o-y 1H 2014 Coal Production : 2.84 mn tons, +17% y-o-y TIA Coal Sales ( thousand tons ) TIA Coal Production ( thousand tons ) 532,7 533,3 493,8 475,6 472,9 482,5 472,6 474,4 437,2 450,7 441,2 421,9 Jan-14 Feb-14
Slide 22: TIA: ASP, Cash Cost, Stripping Ratio
TIA: ASP, Cash Cost, Stripping Ratio (SR) ASP ( USD/ton ) Cash Cost ( USD / ton ) Stripping Ratio (SR) 38,9 -3% 37,8 33,0 -7% +6% 3,5 30,6 3,3 1H 2013 1H 2014 1H 2013 1H 2014 1H 2013 1H 2014 22
Slide 23: TIA: Monthly ASP, Cash Cost, and Stripping Ratio
TIA: Monthly ASP, Cash Cost, and Stripping Ratio (SR) 1H 2014 ASP: USD37.8/ton, Cash Cost: USD30.6/ton 1H 2014 average SR: 3.5x TIA ASP & Cash Cost TIA SR ( x ) 4,5 4,5 4,5 38,4 38,6 37,7 4,5 4,5 4,5 37,4 37,3 37,3 31,2 3,8 30,4 30,8 30,7 30,7 3,9 29,9 3,8 3,3 3,3 2,8 Jan-14 Feb-14 Mar-14 Apr-14 Mei
Slide 24: Newcastle Coal Price Index vs. TIA ASP
Newcastle Coal Price Index vs. TIA ASP 140,00 $ 135,00 $ 130,00 $ 125,00 $ 120,00 $ 115,00 $ 110,00 $ 105,00 $ 100,00 $ 95,00 $ NEWC 90,00 $ 85,00 $ 80,00 $ 75,00 $ = US$ 86.5 70,00 $ Jan 2011 65,00 $ = US$ 54.9 60,00 $ Dec 2012 55,00 $ ICI4050 TIA = US$ 32.2 50,00 $ 45,00 $ Jun 2014 40,00 $ 35,00 $
Slide 25: MDB Project Update: 1H 2014
MDB Project Update: 1H 2014
Slide 26: MDB Project Progress (1)
MDB Project Progress (1) Progress by June 30, 2014 (December 31, 2013): 1. Land Acquisition 84% (84%) 2. Port Construction 87% (77%) 3. Mining Site 89% (72%) 26
Slide 27: MDB Project Progress (2)
MDB Project Progress (2) Total project cost up to June 30, 2014 = US$143.9 million* (*) including working capital of US$29.1 million Breakdown of MDB Project Cost, excluding working capital, as of June 30, 2014 Legal Process 2% Financing Cost 11% Land Acquisition 12% Port Construction 51% Mining C
Slide 28: Cipta Kridatama: Mine Contractor Snapshot
Cipta Kridatama: Mine Contractor Snapshot: CK began providing mining contractors services in 2002 Up to Jun 30, 2014, CK served 9 coal mining companies Mobile fleet and equipment amounted 516 units
Slide 29: Cipta Kridatama Mine Contractor Recent Updates
Cipta Kridatama (CK) – Mine Contractor Recent Updates: CK reported total 1H 2014 overburden removal of 50.1 million BCM, 4% higher than 48.4 million BCM reported in 1H 2013 Total rental services in 1H 2014 reached 6.98 million tons of coal, relatively flat compared to 6.90 million tons of coal i
Slide 30: Overburden Removal Volume
Overburden Removal Volume: 1Q 2014 vs. 1Q 2013 OB Removal ( thousand bcm ) OB Removal ( million bcm ) 8.765 50,1 8.650 +4% 8.509 48,4 8.246 8.263 7.697 Jan-14 Feb-14 Mar-14 Apr-14 Mei-14 Jun-14 1Q 2013 1Q 2014 30
Slide 31: Rental Services Volume
Rental Services Volume: 1Q 2014 vs. 1Q 2013 Rental Services ( thousand tons coal ) Rental Service ( million tons coal ) 1.221 1.182 +1% 6,98 6,90 1.161 1.144 1.144 1.122 Jan-14 Feb-14 Mar-14 Apr-14 Mei-14 Jun-14 1H 2013 1H 2014 31
Slide 32: Overburden Removal Volume 2008 - 2013
Overburden Removal Volume 2008 - 2013 OB Removal ( million bcm ) 150,0 130,0 130,0 118,0 110,0 104,2 100,0 89,2 90,0 73,8 70,0 50,0 30,0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 32
Slide 33: Rental Services Volume 2008 - 2013
Rental Services Volume 2008 - 2013 Rental Service ( million tons coal ) 14,0 12,4 11,9 12,0 10,6 10,0 8,3 8,0 7,1 6,0 5,4 4,0 2,0 - FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 33
Slide 34: CK Customers and Backlog Order
CK Customers and Backlog Order Operating Agreements as of Sep 30, 2013 Client Mining Project Sites Expected Contract Backlog Kalimantan Duration (bcm/ton) MSJ 1 Separi, East Kalimantan Jun 2004 - Sep 2015 72.5 / 7.5 MHU 2 Jongon, East Kalimantan Nov 2007 - Oct 2015 69.2 / 5 2 1 7 8 3 Sebambam, Tanah
Slide 35: Sumberdaya Sewatama: Power Solution Snapshot
Sumberdaya Sewatama: Power Solution Snapshot: Indonesia’s leading power engine rental with installed capacity of over 1 GW Expanding into IPP business since 2012 Starting to construct mini-hydro power plant in February 2014 Temporary Power Installed Capacity ( MW ) 1.200 1.113 1.010 1.000 934
Slide 36: Sumberdaya Sewatama Recent Updates
Sumberdaya Sewatama: Power Solution Recent Updates: Electricity production from temporary power reached 2,448 million kWh, a 9% Y-o-Y increase IPP business produced electricity amounted 30.3 million kWh, increased by 9% Y-o-Y Construction of mini-hydro plant had started on February with commen
Slide 37: Temporary Power: Electricity Production
Temporary Power: Electricity Production Electricity Production ( in million kWh ) Electricity Production ( in million kWh ) 2.448 435 +9% 417 417 404 401 2.244 374 1H 2013 1H 2014 Jan-14 Feb-14 Mar-14 Apr-14 Mei-14 Jun-14 37
Slide 38: Temporary Power: Installed Capacity & Generator
Temporary Power: Installed Capacity & Generator Installed Capacity ( MW ) Fuel-based Power Generator Gas MFO 0,8% 1,8% 1.113 +9% 1.020 1,113 MW Diesel 97,4% 1H 2013 1H 2014 38
Slide 39: IPP: Electricity Production
IPP: Electricity Production Electricity Production ( in million kWh ) Electricity Production ( in million kWh ) +9% 30,3 7,5 27,8 6,2 5,9 6,1 4,3 0,2 1H 2013 1H 2014 Jan-14 Feb-14 Mar-14 Apr-14 Mei-14 Jun-14 39
Slide 40: Sanggar Sarana Baja: Engineering Services Snapshot
Sanggar Sarana Baja: Engineering Services Snapshot: Established in 1977, one of Indonesia’s pioneer in modern engineering services Operating in 15 locations serving Indonesia’s largest coal and mineral mining sites Currently SSB provides four different engineering services as below FABRICATION
Slide 41: Sanggar Sarana Baja Recent Updates
Sanggar Sarana Baja: Engineering Services Recent Updates: Fabrication currently handled 46 projects with total on hand of about US$21.2 million as of 1H 2014 Transport Equipment achieved 90 units in 1H 2014 Remanufacturing reported 1H 2014 total machine hours and man hours of 106, 679 and 59,7
Slide 42: Fabrication and Transportation
Fabrication and Transportation Number of Fabrication Projects Number of Transport Units 130 128 90 79 1H 2013 1H 2014 1H 2013 1H 2014 42
Slide 43: Remanufacturing and Site Services
Remanufacturing and Site Services Remanufacturing Activities (hours) Site Services’ Man Hours ( thousand hours ) Man Hours 73.564 Man Hours 948 59.794 Machine Hours Machine 723 129.635 Hours 106.679 1H 2013 1H 2014 1H 2013 1H 2014 43
Slide 44: Cipta Krida Bahari: Integrated Logistics Snapshot
Cipta Krida Bahari: Integrated Logistics Snapshot: CKB expanded to be an integrated logistics provider offering various services such as: • Freight Forwarding • Project Logistics • Warehouse Management • Shore Base Management • Industrial / Offshore and Coal Logistics Shipping Total Weight ( thousan
Slide 45: Cipta Krida Bahari Integrated Logistics Recent Updates
Cipta Krida Bahari (CKB): Integrated Logistics Recent Updates: Chargeable weight of Integrated Logistics achieved 21.3 thousand tons, number of heavy equipment moved amounted 900 units, and floor space rented was 545 thousand square meters (SQM) as of 1H 2014 ATR had total billable days of 2,468
Slide 46: CKB: Integrated Logistics
CKB: Integrated Logistics Integrated Logistics Project Logistics Warehouse Management Chargeable Weight (thousand tons) Number of Heavy Equipment (units) Space Rented (thousand SQM) 2.998 26 660,6 21 545,0 900 1H 2013 1H 2014 1H 2013 1H 2014 1H 2013 1H 2014 46
Slide 47: CKB: Industrial Shipping
CKB: Industrial Shipping Billable Days Number of Vessel 18 +29% 2.468 14 +17% 2.114 1H 2013 1Q 2014 1H 2013 1H 2014 47
Slide 48: CKB: Coal Logistics
CKB: Coal Logistics Coal Logistics: TIA Coal Logistics: Others Total Coal Logistics ( thousand metric tons ) ( thousand metric tons ) ( thousand metric tons ) +7% 2.898 +7% 2.833 60,2 58,0 2.709 2.649 1H 2013 1H 2014 1H 2013 1H 2014 1H 2013 1H 2014 48
Slide 49: Agenda
Recent Updates Operational Highlights Financial Highlights 50 Strategy and Mitigations Appendices
Slide 50: Key Selected Consolidated Financial Figures
Key Selected Consolidated Financial Figures (in USD million) 1H 2014 1H 2013 YoY Net Revenues 360.6 422.9 -14.7% EBITDA 70.1 80.8 -13.3% Net Profit1 4.7 20.5 -77.2% As at As at Mar 31, 2014 Dec 31, 2013 Change Rupiah per USD 11,969 12,189 (220) Cash and Near Cash2 130.6 104.3 26.3 Total Interest Bea
Slide 51: ABM and Subsidiaries' Financial Reporting & Loans
ABM and Subsidiaries’ Financial Reporting & Loans Functional Currency: USD Club Deal: YES Functional Functional Functional Functional Functional Currency: Currency: Currency: Currency: Currency: USD USD Rupiah Rupiah Rupiah Club Club Club Club Club Deal: Deal: Deal: Deal: Deal: YES YES NO YES YES NO
Slide 52: Consolidated Profit & Loss
Consolidated Profit & Loss (in USD million) 1H 2014 1H 2013 Y-o-Y 2Q 2014 1Q 2014 Q-o-Q Net Revenues 360.6 422.9 -14.7% 188.0 172.6 9.0% Cost of Goods Sold and Services (275.7) (331.2) -16.8% (145.4) (130.3) 11.6% Gross Profit 84.9 91.6 -7.3% 42.7 42.3 0.9% Gross Profit Margin 23.6% 21.7% 22.7% 24.5
Slide 53: Consolidated EBITDA
Consolidated EBITDA (in USD million) 1H 2014 1H 2013 Pre-tax Profit 7.7 22.1 Add: Finance Charges 19.9 24.1 Less: Finance Income (2.8) (2.2) Less: Other Operating Income (9.5) (22.0) Add: Other Operating Expense 6.2 3.7 Less: Equity in Net Income of Associated (0.1) (0.6) Companies Add: Depreciation
Slide 54: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (in USD million) Jun 30, 2014 Dec 31, 2013 Liabilities & Equities (in USD million) Jun 30, 2014 Dec 31, 2013 Cash and Other Current Financial Assets 130.6 104.3 Short-term Interest Bearing Debts 82.8 161.1 Trade Receivables, net 224.4 174.8 Trade Payables, Third Par
Slide 55: Consolidated Cash Flow
Consolidated Cash Flow (in million USD) Jun 30, 2014 Dec 31, 2013 Change Receipt from Customers 309.9 386.5 (76.5) Payments to Suppliers & Employers (300.3) (319.3) 19.1 Net Payment of Interests (20.2) (21.7) 1.5 Net Payment of Taxes (2.6) 5.0 (7.6) Cash Provided by Operation Activities (13.1) 50.5
Slide 56: Leverage Ratios
Leverage Ratios Net Debt to Equity (x) Net Debt to EBITDA ( x ) All figures 1.64x in US$ million 1.58x unless otherwise stated 4,32 3,77 511,1 539,9 Shareholders' Equity Net Debt 323,4 328,7 Dec 31, 2013 Jun 30, 2014 Dec 31, 2013 Jun 30, 2014 Outstanding Debts (US$ million) As at As at Jun 30, 2014
Slide 57: Debt Profile
Debt Profile Debt Maturity Profile* (in US$ million) Type of Debts 327,0 335,2 Bonds and Sukuk 12,4% Finance Lease Payables 17,9% Total Debt: US$670.5mn 117,4 Bank Loans 69,7% 0,2 Below 1 year 1 - 3 years 3 - 5 years Above 5 years NOTE: (*) Including payment of interests Debt Profile based on Curren
Slide 58: 1H 2014 Capex Breakdown by SBU
1H 2014 Capex Breakdown by SBU CK 4,07% Reswara 43,17% Total Capex*: US$59.1mn SS 49,07% CKB SSB 2,02% 1,64% Note: (*) Capital Expenditure (CaPex) Before elimination ABM parent capex amounted US$9,966 or about 0.02% of 1H 2014 total capex (before elimination) 58
Slide 59: Revenues Breakdown by SBU
Revenues Breakdown by SBU 1H 2014 1H 2013 Change Y-o-Y CK 153.7 188.9 (35.1) (18.6%) Sewatama 66.2 69.7 (3.5) (5.0%) SSB 31.8 48.6 (16.8) (34.6%) CKB 63.1 64.8 (1.7) (2.7%) Reswara 112.6 113.0 (0.4) (0.4%) Consolidated* 360.6 422.9 (62.3) (14.7%) *Net Consolidated Revenues After Elimination 59
Slide 60: Revenues Breakdown by SBU
Revenues Breakdown by SBU 1H 2014 1H 2013 Reswara Reswara 23,3% 26,3% CK 36,0% CK 38,9% Total Total Revenues*: Revenues*: US$427.5mn US$485.1mn CKB 13,4% CKB 14,8% SSB SSB SS SS 10,0% 7,4% 15,5% 14,4% Note (*): Revenues before elimination and excluded the gross revenues from ABM parent (“dewatering
Slide 61: Gross Profit Breakdown by SBU
Gross Profit Breakdown by SBU 1H 2014 1H 2013 Change Y-o-Y CK 24.5 20.4 4.1 20.3% Sewatama 16.8 22.4 (5.5) (24.8%) SSB 6.2 9.3 (3.1) (33.5%) CKB 9.6 13.3 (3.7) (27.5%) Reswara 25.4 25.9 (0.5) (1.9%) Consolidated* 84.9 91.6 (6.7) (7.3%) *Net Consolidated Gross Profit After Elimination 61
Slide 62: Gross Profit Breakdown by SBU
Gross Profit Breakdown by SBU 1H 2014 1H 2013 CK CK Reswara 22,3% Reswara 29,6% 28,4% 30,8% Total Gross Total Gross Profit*: Profit*: US$82.6mn US$91.3mn SS CKB CKB 24,5% 11,7% SS 14,6% SSB 20,4% SSB 7,5% 10,2% Note (*): Gross Profit before elimination and excluded the gross profit from ABM parent o
Slide 63: EBITDA Breakdown by SBU
EBITDA Breakdown by SBU 1H 2014 1H 2013 Change Y-o-Y CK 28.1 36.3 (8.1) (22.4%) Sewatama 32.6 35.0 (2.4) (6.9%) SSB (1.3) 2.3 (3.6) N/M CKB 6.2 8.3 (2.1) (25.2%) Reswara 7.0 3.3 3.7 110.7% Consolidated* 70.1 80.8 (10.7) (13.3%) *Net Consolidated EBITDA After Elimination 63
Slide 64: EBITDA Breakdown by SBU
EBITDA Breakdown by SBU 1H 2014 1H 2013 Reswara Reswara 9,6% CKB 3,9% CKB 9,7% SSB SSB 8,5% -1.7% 2,7% CK 38,7% CK 42,6% Total Total EBITDA*: EBITDA*: US$72.7mn US$85.2mn SS SS 41,1% 44,9% Note (*): EBITDA before elimination and excluded the EBITDA from ABM parent operation (“dewatering business”) 6
Slide 65: Net Profit Breakdown by SBU
Net Profit Breakdown by SBU 1H 2014 1H 2013 Change Y-o-Y CK 6.4 2.9 3.5 119.0% Sewatama 1.0 5.2 (4.3) (81.3%) SSB (3.9) 13.3 (17.2) N/M CKB 1.1 2.7 (1.6) (59.6%) Reswara 1.8 (1.7) 3.6 N/M Consolidated* 4.7 20.5 (15.8) (77.2) *Net Consolidated Profit Attributable to the Owner of Parent Company After
Slide 66: Net Profit Breakdown by SBU
Net Profit Breakdown by SBU Segment / Subsidiary 1H 2014 1H 2013 Coal Mine / Reswara 28.1% -7.8% Mine Contractor / CK 99.6% 13.1% Power Solution / Sewatama 15.1% 23.4% Engineering Services / SSB -59.6% 59.4% Integrated Logistics / CKB 16.7% 11.9% Total 100.0% 100.0% Net Profit * (USD million) 6.5 22
Slide 67: Agenda
Recent Updates Operational Highlights Financial Highlights Strategy and Mitigations 68 Appendices
Slide 68: Strategy and Mitigations
Strategy and Mitigations Slowdown in the U.S. and China economic growth may affect global business in 2014, as such ABM undertakes consolidation efforts with focus heavily on: Operational excellence Cost efficiency Prudent cash flow management Capex for 2014 estimated at about USD 130-150 mill
Slide 69: Strategy and Mitigations
Strategy and Mitigations Increase exposure to the domestic market Completion of the MDB Project in Aceh Start to enter into earthmoving construction works Eyeing non-coal mining works Accelerate development of the IPP projects Seeks opportunity for non-organic growth Amplify diversification to beyon
Slide 70: Our thesis for long-term remain solid
Strategy and Mitigations Our thesis for long-term remain solid Rising global population, higher energy needs Strategic investment business model Diversification to capture growth opportunity 70
Slide 71: Appendices
Recent Updates Operational Highlights Financial Highlights Strategy and Mitigations Appendices 72
Slide 72: Tiara Marga Trakindo Group Profile
Tiara Marga Trakindo Group Profile Tiara Marga Trakindo Group Structure Overview of Tiara Marga Trakindo Group — Established in 1970, Trakindo was PT Tiara Marga Trakindo (TMT) founded by AHK Hamami — Trakindo became the sole authorized PT Chandra PT ABM Sakti Utama PT Mahadana PT Trakindo Investama
Slide 73: ABM Group and Shareholding Structure
ABM Group and Shareholding Structure PT Tiara Marga Trakindo (“TMT”) Valle Verde Pte. Ltd. Public 23.12% 55% 21.88% 99.99% 99.99% 99.98% 99.96% 99.99% PT Reswara Minergi Hartama PT Cipta PT Sumberdaya PT Sanggar Sarana PT Cipta Krida Bahari (“CKB”) (“Reswara”) Kridatama (“CK”) Sewatama (“SS”) Baja (
Slide 74: Reswara: Coal Reserves, Resources, and Concession
Reswara: Coal Reserves, Resources, and Concession TIA MDB Total Total Resources: 561 Million Tons Coal Reserves (MT) Proved Reserves 13 7 20 Probable Reserves 39 162 201 Total Reserves 52 169 221 Total Reserves: 221 Million Tons Coal Resources Measured 32 18 50 Indicated 39 289 328 Inferred 35 148 1
Slide 75: Reswara: Coal Quality Parameters, Mine Concession
Reswara: Coal Quality Parameters, Mine Concession Coal Characteristics TIA MDB Calorific Value (Adb) 5,500-5,300 kcal/kg 5,300-5,100 kcal/kg Caloric Value (GAR) 4,100-3,900 kcal/kg 3,400-3,200 kcal/kg Total Moisture (AR) 35-37% 43-45% Ash Content (Adb) 5.7% 4.6% Sulfur (Adb) 0.3-0.5% 0.2-0.4% Conces
Slide 76: TIA: Mine and Infrastructure Profile
TIA: Mine and Infrastructure Profile PT Tunas Inti Abadi TIA Site (South Kalimantan Province ) • TIA was acquired in Dec 2007, Central Kalimantan Balikpapan commenced commercial production in Aug 2009 and coal sales in Oct 2009 • Coal mining is contracted to ABM Palangkaraya subsidiary, CK • 27 km f
Slide 77: MDB: Mine and Infrastructure Profile
MDB: Mine and Infrastructure Profile MDB Site (Aceh Province) PT Media Djaya Bersama • 70% ownership in MDB • To begin coal production in 2012 by using existing infrastructure and begin construction of own infrastructure in 2012 • Intends to sell coal to Indian power plants for blending • Logistic a
Slide 78: TIA: 1H 2014 Production Cash Cost Structure
TIA: 1H 2014 Production Cash Cost (Ex-Royalty) Structure Environment 1.6% Others Labor 3,5% 2,1% Warehousing 3,8% Mining Cost 89,0% 78
Slide 79: CK: Heavy Equipment and Machinery Fleet
CK: Heavy Equipment and Machinery Fleet Type of equipment Capacity Number of units Average age (in years) Dec 31, 2013 Excavator 250 - 350 tons 17 6.3 20 - 100 tons 99 2.5 Truck 30 - 100 tons 272 4.1 Dozer 73 2.4 Grader 14 - 16 feet 40 3.1 Wheel loader 4 2.8 Compactor 11 7.4 Total 516 79
Slide 80: CK: 1H 2014 Cash Cost Structure
CK: 1H 2014 Cash Cost Structure Spareparts Etc Others 2,8% Blasting 4,0% 3,0% Rental 5,9% Mining Cost Fuel & Lubricant 2,3% 31,9% Labor 15,5% Repairs & Subcontractor Maintenance 17,9% 16,8% 80
Slide 81: SS: Generator Profile
SS: Generator Profile Number of Units Average Average Age as of Capacity Useful Life as of Dec 31, 2013 Model Dec 31, 2013 (kW) (Years) (Years) Diesel 905 1,084,154 9 10 Generator Sets Gas 5 9,000 14 6 Generator Sets MFO 11 20,000 14 2 Generator Sets Total 921 1,113,154 81
Slide 82: Contact
Contact Investor Relations Adi Hartadi Tel:6221-2997-6767 Ext.1874 Fax : 6221-2997-6768 Email : [email protected] Gedung TMT 1, 18th Fl, Suite 1802 Email : [email protected] Jl Cilandak KKO No.1 Website : www.abm-investama.com Jakarta 12560 - Indonesia A member of Tiara Marga Trak