20140424 toba mdna 1q14 english version
Management Discussion & Analysis First Quarter 2014
Toba Bara Sejahtra Tbk and Subsidiaries
March 2014
1
SUMMARY
During 1Q14, the reference NEWC Index price declined by 13.2% to US$ 74.1/ton from US$ 85.4/ton
rd
on 3 January 2014, while the Indonesian coal reference price and China’s QHD coal price fell by
7.0% and 18.0% to USD58/ton and RMB 535/ton respectively over the same period. The market had
predicted this trend as it typically coincided with the end of China’s restocking activity upon entering
the New Year. The coal prices are expected to remain flat in the short term due to lack of positive
catalysts such as major production cuts, while it will be in upward slope in the medium to long term as
have been factored in by the forward curves.
Despite the coal industry’s continued challenging times and post its efficiency and integration intiatives of
2013, PT Toba Bara Sejahtra Tbk (“the Company”) strives to maintain competitive costs from its three
adjacent mines and deliver sustainable production growth.
Taking into account the Company’s three concessions are located next to each other, the Company was
able to maximize cost efficiency initiatives through joint mine plan and infrastructure sharing. As a
tangible result of this set of initiatives, the Company successfully boosted production volume and sales
volume by 48.5% to 1.9 million tons and 34.9% to 1.9 million tons y-o-y in 1Q14 respectively.The total
production volume of 1.9 million tons in 1Q14 was in line with that of 4Q13, where the Company booked
the highest quarterly production volume throughout its corporate history at 1.9 million tons. The 1Q14
production volume number is also the highest in corporate history. Given this production milestone, the
Company is confident it can maintain its quarterly production run rate in the upcoming years.
Financially, the Company also increased its revenue by 28.5% y-o-y from 1Q13 to 1Q14. Despite a
16.1% correction in the NEWC Index price, the Company posted a decline of 5% in its average selling
price (ASP) over the same period. On the cost side, the Company lowered its FOB vessel cash cost by
11.2% over the same period. A combination of stronger sales efforts through higher sales volume backed
by higher quality buyers and lower overall costs resulted in a 123.6% y-o-y higher EBITDA at US$ 21.1
million. This, in turn, translated to a more favorable comprehensive income of US$ 12.8 million for 1Q14,
or up by 114.9% from the Q1 results of the previous year.
Special Note: The following discussion on the Company’s performance is based on the Consolidated Financial
st
Statements as per 31 March 2014 (unaudited), which mainly focuses on the operational and financial performances
of all three of its coal mining subsidiaries: PT Adimitra Baratama Nusantara (ABN), PT Indomining (IM), dan PT
Trisensa Mineral Utama (TMU).
2
PRODUCTION & OPERATION
The Company’s coal production volume expanded 48.5% y-o-y from 1.3 million tons in 1Q13 to 1.9
million tons in 1Q14 on the back of significantly higher volume contributions from TMU and IM. The
production volume of 1.9 million tons in 1Q14 resulted from operations of all three operating subsidiaries
with the following respective contributions: around 1.0 million tons from ABN, around 0.5 million tons from
IM, and around 0.4 million tons from TMU. The Company’s y-o-y production growth of 48.5% mainly
stemmed from TMU’s substantial production ramp up post the earlier-than-expected completion of its
hauling road in 2Q13 connecting TMU and IM via ABN. In 1Q14 ABN is the main volume contributor with
1 million tons production, while IM and TMU posted production volume growth of around 102.6% and
330.4% y-o-y respectively.
Changes in Production and Stripping Ratio (SR) at ABN, IM and TMU
ABN
IM
1000,0
800,0
,18x
16.6x
TMU
,14x
600,0
13.7x
500,0
,16x
500,0
14.1x
,14x
300,0
400,0
200,0
,12x
200,0
936
1.003
1Q 2013
1Q 2014
,10x
Production volume (K ton)
,12x
547
270
,8x
100,0
-
,10x
1Q 2013
SR (x)
,10x
300,0
200,0
11,1x
100,0
-
11.4x
11.3x
400,0
400,0
600,0
,12x
600,0
Production volume (K ton)
-
1Q 2014
84
362
1Q 2013
1Q 2014
Production volume (K ton)
SR (x)
,6x
SR (x)
In continuing its efforts to maintain the operational performance of 2013, in line with the strategy to
continually lower overall costs towards maintaining profitability margin, the Company maintained its
stripping ratio (SR) and sustained stable overburden dump distance. Typically these two cost
components account for around 65%-70% of FOB vessel cash cost.
Average Production, SR, and Dump Distance
2.500
20x
Average Production and SR
Dump Distance (in meters)
3.000
2.000
15x
14x
13x
1.500
13x
13x
15x
2.500
2.000
10x
1,681
1.000
1,741
1,785
1,899
1,675
1.500
1.298
1.501
1.802
1.950
1.911
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
500
5x
1.000
1Q13
Production Volume (K tons)
2Q13
3Q13
4Q13
1Q14
Stripping Ratio (SR)
The Company’s ASP only contracted by 5.0% y-o-y from US$ 66.2/ton in 1Q13 to US$ 62.9/ton in 1Q14,
which compared favorably with NEWC Index price that declined at a rate of 16.1% over the same period.
The ASP outperformance over that of NEWC Index stemmed from the Company’s ability to capitalize on
securing its coal sales based more on fixed pricing rather than index-linked at year end 2013. (When
entering into a fixed-priced contract with a buyer, the Company typically would secure it in the very early
part of the year or the latter part of the preceeding year during a relatively higher NEWC Index price). In
the case of 2014 sales volume, the Company sold in advance the majority of its 2014 sales volume to its
quality buyers by entering into fixed-priced contracts over the end periods of 2013. In doing so, this
should enable the Company to maximize its pricing structure. By the end of 1Q14, the Company has sold
~70%-80% of its 2014 sales volume at fixed price.
3
FINANCIALS
Financial and Operational Highlights
All figures are in million US$ unless
otherwise stated
1Q13
1Q14
Changes
1.4
1.9
34.9%
Operational
Sales Volume
Mn ton
Production Volume
Mn ton
1.3
1.9
48.5%
x
15.2
13.5
(11.5%)
Stripping Ratio (SR)
FOB Vessel Cash Cost*
US$/ton
55.1
48.9
(11.2%)
NEWC Index Price
US$/ton
93.0
78.1
(16.1%)
Average Selling Price (ASP)
US$/ton
66.2
62.9
(5.0%)
1Q13
1Q14
Changes
Financial Performance
Profit (Loss)
Revenue
US$ Mn
94.9
122.0
28.5%
Cost of Goods Sold
US$ Mn
80.6
98.4
22.1%
Gross Profit
US$ Mn
14.4
23.6
69.2%
EBITDA**
Total Comprehensive Income
For the Periods
US$ Mn
9.4
21.1
123.6%
US$ Mn
6.0
12.8
114.9%
Operating Cash Flow
US$ Mn
32.5
(0.1)
(100.3%)
Capex
US$ Mn
3.0
5.5
83.0%
FY13
1Q14
Changes
55.9
49.9
(10.6%)
Balance Sheet
Interest Bearing Debt
US$ Mn
Cash and cash Equivalents
US$ Mn
63.3
47.4
(25.2%)
Net Debt***
US$ Mn
Net Cash
2.5
N/A
Total Assets
US$ Mn
311.6
300.0
(3.7%)
Total Liabilities
US$ Mn
181.2
162.2
(10.5%)
Total Equity
US$ Mn
130.5
137.9
5.7%
Changes
Financial Ratios
Gross Profit Margin
%
15.2
19.4
27.7%
EBITDA Margin
%
10.0
17.3
74.0%
Notes:
*FOB Vessel Cash Cost = COGS including royalty and selling expense – depreciation and amortization
**EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization
*** Net Debt = Interest bearing debt – cash and cash equivalents
PROFIT (LOSS)
SALES
Although the weaker NEWC Index price impacted the Company’s overall ASP by 5.0% from US$
66.2/ton in 1Q13 to US$ 62.9/ton in 1Q14, the Company generated a 28.5% rise in revenue from US$
94.9 million in 1Q13 to US$ 122.0 million in 1Q14 on the back of a 34.9% increase in sales volume over
the same period.
4
COST OF GOODS SOLD
Lower cost of goods sold in 1Q13 resulted from the Company’s ability to significantly reduce FOB vessel
cash cost from US$ 55.1/ton in 1Q13 to US$ 48.9/ton in 1Q14. Mining costs, such as overburden
removal and dump distance as well as fuel, make up the major cash cost components.
EBITDA
EBITDA surged by 123.6% y-o-y from US$ 9.4 million in 1Q13 to US$ 21.1 million in 1Q14, resulting from
predominantly the Company’s strategy in executing its mine plan amidst the weaker ASP while lowering
mining costs in the process. Such a combination between the Company’s on-going cost efficiency
initiatives and improvement in sales and marketing activity positively boosted EBITDA margin from 10.0%
in 1Q13 to 17.3% in 1Q14.
The graph below depicts the EBITDA on q-o-q basis from US$ 9.4 million in 1Q13 to US$ 21.1 million in
1Q14 and the NEWC Index price from US$ 93.0/ton to US$ 78.1/ton over the same period.
Quaterly EBITDA vs NEWC Index
4Q 2012 – 1Q 2014
40
ASP vs FOB Vessel Cash Cost
100
93
35
86
84
30
78
78
25
20
68,1
67,8
66,2
90
65
80
60
63,3
55,1
70
62,9
54,9
53,4
55
15
60
10
5
70
50
9
12
18
18
21
1Q 2013
2Q 2013
3Q 2013
4Q 2013
1Q 2014
0
40
49,2
50
48,9
45
40
EBITDA (US$ Mn)
NEWC. (US$/ton)
1Q13
2Q13
ASP (in US$/ton)
3Q13
4Q13
1Q14
FOB Vessel Cash Cost (in US$/ton)
COMPREHENSIVE INCOME
The Company booked total comprehensive income (before minority interest) of US$12.8 million in 1Q14,
up by a significant 114.9% from US$6.0 million in 1Q13.
CASH FLOW
Operating cashflow as of 1Q14 was neutral due to shorter AP days and the Company’s paying down of
Loan as well as prepayment that has been received in 2013.
BALANCE SHEET
ASSETS
st
The Company’s assets as at 31 March 2014 stood at US$ 300.0 million, or down by 3.7% from US$
311.6 million as per end-December 2013 due to reduced cash resulting from loan repayment.
5
Cash and cash equivalents
Interest Bearing Debt
63
60
56
43
Q1 2013
40
42
Q2 2013
45
47
Q3 2013
47
Q4 2013
50
Q1 2014
Note: Figures are in Mn US$
LIABILITIES
st
Meanwhile, total liabilities as at 31 March 2014 contracted by 10.5% to US$ 162.2 million from US$
181.2 million as per end-December 2013 and interest bearing debt dwindled by 10.6% to US$ 49.9
million from US$ 55.9 million over the same period.
EQUITY
Total equity in 1Q14 increased 5.7% to US$ 137.9 million from US$ 130.5 million as per end-2013, and
this was attributable to additional income for the period.
CAPITAL EXPENDITURE (CAPEX)
Until 1Q14, the Company has realized total CAPEX of around US$ 5.5 million, which is mainly allocated
for the land compensation at IM and TMU.
MARKETING
During 1Q14, the Company sold its coal to mainly Asian countries, which included China, Korea, Taiwan,
India, and the Philippines. Some of the large reputable international traders and end-users such as power
generation companies make up the Company’s main customers. 2013 was a marketing milestone for the
Company as it successfully garnered a more diversified and higher quality customer base, expanded
export market coverage, while maximizing its pricing mechanism through various hedging strategies. The
Company also utilized its own in-house marketing team to tap into high quality end users such as in
Japan without incurring any significant marketing costs. From 4Q13 until 1Q14, the Company has
secured ~70-80% of its 2014 total sales volume.
6
Sales Destinations by Country
OPERATIONAL UPDATE
Initiative
IM
Construction of Coal Processing Plant (CPP) is expected
to boost coal production capacity at IM from 3 million tons
per annum (tpa) to 6 million tpa. This new CPP not only will
process TMU’s coal, but also will create more cost
efficiency and increase coal stockpile capacity. Overall, the
Company’s total production/infrastructure capacity is
expected to expand significantly from currently 13 million
tpa to 16 million tpa.
Achievement
Construction of CPP
is in finalization stage
PT TOBA BARA SEJAHTRA TBK at a Glance
PT Toba Bara Sejahtra Tbk (“The Company”) is one of the major competitive producers of thermal coal in
Indonesia. The Company has grown into a major coal producer operating 3 (three) coal mine
concessions in East Kalimantan. These adjacent coal mining concessions, which are held through
various operating companies, all enjoy highly favorable mine locations, with close proximity to local river
ports. The Company’s concession areas total approximately 7,087 hectares.
The Company currently has four operating subsidiaries, three in coal mining namely PT Adimitra
Baratama Nusantara (ABN), PT Indomining (IM), PT Trisensa Mineral Utama (TMU) and one in palm oil
namely PT Perkebunan Kaltim Utama I (PKU). The Company’s ownerships in ABN, IM, TMU and PKU
are 51.00%, 99.99%, 99.99% and 90.00% respectively.
th
On 6 July, 2012, the Company listed its shares at the Indonesia Stock Exchange (IDX) under the ticker
‘TOBA’ and released as many as 210,681,000 shares or 10.5% of its paid up capital with an IPO proceed
of IDR 400.3 billion.
7
Locations of Toba Bara’s Concessions
Major City
Jetty
Transhipment Point
TMU - IM Hauling Road
Major city is
less than 50
km
Muara
Berau
Furthest pit to
jetty 25km | with
closest one ~5km
Samarinda
~55 Km
(total ~120 Km)
Sungai Mahakam
17km
IM
ABN
TMU
ABN
~ 5 km
IM Jetty
Close proximity
transhipment
Makassar Strait
point & jetty
ABN Jetty
Kutai
Energy
~ 120 km
Balikpapan
Adjacent
locations for
all 3 mines
~65 Km
Muara Jawa
ABN is located in Sanga-Sanga, Kutai Kartanegara, East Kalimantan and is operated under the IUPOP
permit. It started operations in September 2008. ABN covers an area reaching 2,990 hectares, and has
estimated coal resources of around 156 million tons.
IM is located in Sanga-Sanga, Kutai Kartanegara, East Kalimantan and is operated under the IUPOP
permit. It started operations in August 2007. IM covers 683 hectares of land, and has estimated coal
resources of 37 million tons.
Meanwhile, TMU is located in Loa Janan, Muara Jawa and Sanga-Sanga, Kutai Kartanegara, East
Kalimantan. With IUPOP permit, TMU started operations in October 2011. TMU covers 3,414
hectares of land, and has estimated coal resources of 43 million tons.
Altogether, the total coal resources of the Company are currently estimated at 236 million tons.
For further information, please contact:
PT Toba Bara Sejahtra Tbk
Pandu P. Syahrir
Iwan Sanyoto
Corporate Secretary
Head of Investor Relations
(Sekretaris Perusahaan)
(Kepala Hubungan Investor)
Email: corsec@tobabara.com
Email: iwan.sanyoto@tobabara.com
Priambodo
Corporate Communication
(Komunikasi Perusahaan)
Email: priambodo@tobabara.com
Toba Bara Sejahtra Tbk and Subsidiaries
March 2014
1
SUMMARY
During 1Q14, the reference NEWC Index price declined by 13.2% to US$ 74.1/ton from US$ 85.4/ton
rd
on 3 January 2014, while the Indonesian coal reference price and China’s QHD coal price fell by
7.0% and 18.0% to USD58/ton and RMB 535/ton respectively over the same period. The market had
predicted this trend as it typically coincided with the end of China’s restocking activity upon entering
the New Year. The coal prices are expected to remain flat in the short term due to lack of positive
catalysts such as major production cuts, while it will be in upward slope in the medium to long term as
have been factored in by the forward curves.
Despite the coal industry’s continued challenging times and post its efficiency and integration intiatives of
2013, PT Toba Bara Sejahtra Tbk (“the Company”) strives to maintain competitive costs from its three
adjacent mines and deliver sustainable production growth.
Taking into account the Company’s three concessions are located next to each other, the Company was
able to maximize cost efficiency initiatives through joint mine plan and infrastructure sharing. As a
tangible result of this set of initiatives, the Company successfully boosted production volume and sales
volume by 48.5% to 1.9 million tons and 34.9% to 1.9 million tons y-o-y in 1Q14 respectively.The total
production volume of 1.9 million tons in 1Q14 was in line with that of 4Q13, where the Company booked
the highest quarterly production volume throughout its corporate history at 1.9 million tons. The 1Q14
production volume number is also the highest in corporate history. Given this production milestone, the
Company is confident it can maintain its quarterly production run rate in the upcoming years.
Financially, the Company also increased its revenue by 28.5% y-o-y from 1Q13 to 1Q14. Despite a
16.1% correction in the NEWC Index price, the Company posted a decline of 5% in its average selling
price (ASP) over the same period. On the cost side, the Company lowered its FOB vessel cash cost by
11.2% over the same period. A combination of stronger sales efforts through higher sales volume backed
by higher quality buyers and lower overall costs resulted in a 123.6% y-o-y higher EBITDA at US$ 21.1
million. This, in turn, translated to a more favorable comprehensive income of US$ 12.8 million for 1Q14,
or up by 114.9% from the Q1 results of the previous year.
Special Note: The following discussion on the Company’s performance is based on the Consolidated Financial
st
Statements as per 31 March 2014 (unaudited), which mainly focuses on the operational and financial performances
of all three of its coal mining subsidiaries: PT Adimitra Baratama Nusantara (ABN), PT Indomining (IM), dan PT
Trisensa Mineral Utama (TMU).
2
PRODUCTION & OPERATION
The Company’s coal production volume expanded 48.5% y-o-y from 1.3 million tons in 1Q13 to 1.9
million tons in 1Q14 on the back of significantly higher volume contributions from TMU and IM. The
production volume of 1.9 million tons in 1Q14 resulted from operations of all three operating subsidiaries
with the following respective contributions: around 1.0 million tons from ABN, around 0.5 million tons from
IM, and around 0.4 million tons from TMU. The Company’s y-o-y production growth of 48.5% mainly
stemmed from TMU’s substantial production ramp up post the earlier-than-expected completion of its
hauling road in 2Q13 connecting TMU and IM via ABN. In 1Q14 ABN is the main volume contributor with
1 million tons production, while IM and TMU posted production volume growth of around 102.6% and
330.4% y-o-y respectively.
Changes in Production and Stripping Ratio (SR) at ABN, IM and TMU
ABN
IM
1000,0
800,0
,18x
16.6x
TMU
,14x
600,0
13.7x
500,0
,16x
500,0
14.1x
,14x
300,0
400,0
200,0
,12x
200,0
936
1.003
1Q 2013
1Q 2014
,10x
Production volume (K ton)
,12x
547
270
,8x
100,0
-
,10x
1Q 2013
SR (x)
,10x
300,0
200,0
11,1x
100,0
-
11.4x
11.3x
400,0
400,0
600,0
,12x
600,0
Production volume (K ton)
-
1Q 2014
84
362
1Q 2013
1Q 2014
Production volume (K ton)
SR (x)
,6x
SR (x)
In continuing its efforts to maintain the operational performance of 2013, in line with the strategy to
continually lower overall costs towards maintaining profitability margin, the Company maintained its
stripping ratio (SR) and sustained stable overburden dump distance. Typically these two cost
components account for around 65%-70% of FOB vessel cash cost.
Average Production, SR, and Dump Distance
2.500
20x
Average Production and SR
Dump Distance (in meters)
3.000
2.000
15x
14x
13x
1.500
13x
13x
15x
2.500
2.000
10x
1,681
1.000
1,741
1,785
1,899
1,675
1.500
1.298
1.501
1.802
1.950
1.911
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
500
5x
1.000
1Q13
Production Volume (K tons)
2Q13
3Q13
4Q13
1Q14
Stripping Ratio (SR)
The Company’s ASP only contracted by 5.0% y-o-y from US$ 66.2/ton in 1Q13 to US$ 62.9/ton in 1Q14,
which compared favorably with NEWC Index price that declined at a rate of 16.1% over the same period.
The ASP outperformance over that of NEWC Index stemmed from the Company’s ability to capitalize on
securing its coal sales based more on fixed pricing rather than index-linked at year end 2013. (When
entering into a fixed-priced contract with a buyer, the Company typically would secure it in the very early
part of the year or the latter part of the preceeding year during a relatively higher NEWC Index price). In
the case of 2014 sales volume, the Company sold in advance the majority of its 2014 sales volume to its
quality buyers by entering into fixed-priced contracts over the end periods of 2013. In doing so, this
should enable the Company to maximize its pricing structure. By the end of 1Q14, the Company has sold
~70%-80% of its 2014 sales volume at fixed price.
3
FINANCIALS
Financial and Operational Highlights
All figures are in million US$ unless
otherwise stated
1Q13
1Q14
Changes
1.4
1.9
34.9%
Operational
Sales Volume
Mn ton
Production Volume
Mn ton
1.3
1.9
48.5%
x
15.2
13.5
(11.5%)
Stripping Ratio (SR)
FOB Vessel Cash Cost*
US$/ton
55.1
48.9
(11.2%)
NEWC Index Price
US$/ton
93.0
78.1
(16.1%)
Average Selling Price (ASP)
US$/ton
66.2
62.9
(5.0%)
1Q13
1Q14
Changes
Financial Performance
Profit (Loss)
Revenue
US$ Mn
94.9
122.0
28.5%
Cost of Goods Sold
US$ Mn
80.6
98.4
22.1%
Gross Profit
US$ Mn
14.4
23.6
69.2%
EBITDA**
Total Comprehensive Income
For the Periods
US$ Mn
9.4
21.1
123.6%
US$ Mn
6.0
12.8
114.9%
Operating Cash Flow
US$ Mn
32.5
(0.1)
(100.3%)
Capex
US$ Mn
3.0
5.5
83.0%
FY13
1Q14
Changes
55.9
49.9
(10.6%)
Balance Sheet
Interest Bearing Debt
US$ Mn
Cash and cash Equivalents
US$ Mn
63.3
47.4
(25.2%)
Net Debt***
US$ Mn
Net Cash
2.5
N/A
Total Assets
US$ Mn
311.6
300.0
(3.7%)
Total Liabilities
US$ Mn
181.2
162.2
(10.5%)
Total Equity
US$ Mn
130.5
137.9
5.7%
Changes
Financial Ratios
Gross Profit Margin
%
15.2
19.4
27.7%
EBITDA Margin
%
10.0
17.3
74.0%
Notes:
*FOB Vessel Cash Cost = COGS including royalty and selling expense – depreciation and amortization
**EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization
*** Net Debt = Interest bearing debt – cash and cash equivalents
PROFIT (LOSS)
SALES
Although the weaker NEWC Index price impacted the Company’s overall ASP by 5.0% from US$
66.2/ton in 1Q13 to US$ 62.9/ton in 1Q14, the Company generated a 28.5% rise in revenue from US$
94.9 million in 1Q13 to US$ 122.0 million in 1Q14 on the back of a 34.9% increase in sales volume over
the same period.
4
COST OF GOODS SOLD
Lower cost of goods sold in 1Q13 resulted from the Company’s ability to significantly reduce FOB vessel
cash cost from US$ 55.1/ton in 1Q13 to US$ 48.9/ton in 1Q14. Mining costs, such as overburden
removal and dump distance as well as fuel, make up the major cash cost components.
EBITDA
EBITDA surged by 123.6% y-o-y from US$ 9.4 million in 1Q13 to US$ 21.1 million in 1Q14, resulting from
predominantly the Company’s strategy in executing its mine plan amidst the weaker ASP while lowering
mining costs in the process. Such a combination between the Company’s on-going cost efficiency
initiatives and improvement in sales and marketing activity positively boosted EBITDA margin from 10.0%
in 1Q13 to 17.3% in 1Q14.
The graph below depicts the EBITDA on q-o-q basis from US$ 9.4 million in 1Q13 to US$ 21.1 million in
1Q14 and the NEWC Index price from US$ 93.0/ton to US$ 78.1/ton over the same period.
Quaterly EBITDA vs NEWC Index
4Q 2012 – 1Q 2014
40
ASP vs FOB Vessel Cash Cost
100
93
35
86
84
30
78
78
25
20
68,1
67,8
66,2
90
65
80
60
63,3
55,1
70
62,9
54,9
53,4
55
15
60
10
5
70
50
9
12
18
18
21
1Q 2013
2Q 2013
3Q 2013
4Q 2013
1Q 2014
0
40
49,2
50
48,9
45
40
EBITDA (US$ Mn)
NEWC. (US$/ton)
1Q13
2Q13
ASP (in US$/ton)
3Q13
4Q13
1Q14
FOB Vessel Cash Cost (in US$/ton)
COMPREHENSIVE INCOME
The Company booked total comprehensive income (before minority interest) of US$12.8 million in 1Q14,
up by a significant 114.9% from US$6.0 million in 1Q13.
CASH FLOW
Operating cashflow as of 1Q14 was neutral due to shorter AP days and the Company’s paying down of
Loan as well as prepayment that has been received in 2013.
BALANCE SHEET
ASSETS
st
The Company’s assets as at 31 March 2014 stood at US$ 300.0 million, or down by 3.7% from US$
311.6 million as per end-December 2013 due to reduced cash resulting from loan repayment.
5
Cash and cash equivalents
Interest Bearing Debt
63
60
56
43
Q1 2013
40
42
Q2 2013
45
47
Q3 2013
47
Q4 2013
50
Q1 2014
Note: Figures are in Mn US$
LIABILITIES
st
Meanwhile, total liabilities as at 31 March 2014 contracted by 10.5% to US$ 162.2 million from US$
181.2 million as per end-December 2013 and interest bearing debt dwindled by 10.6% to US$ 49.9
million from US$ 55.9 million over the same period.
EQUITY
Total equity in 1Q14 increased 5.7% to US$ 137.9 million from US$ 130.5 million as per end-2013, and
this was attributable to additional income for the period.
CAPITAL EXPENDITURE (CAPEX)
Until 1Q14, the Company has realized total CAPEX of around US$ 5.5 million, which is mainly allocated
for the land compensation at IM and TMU.
MARKETING
During 1Q14, the Company sold its coal to mainly Asian countries, which included China, Korea, Taiwan,
India, and the Philippines. Some of the large reputable international traders and end-users such as power
generation companies make up the Company’s main customers. 2013 was a marketing milestone for the
Company as it successfully garnered a more diversified and higher quality customer base, expanded
export market coverage, while maximizing its pricing mechanism through various hedging strategies. The
Company also utilized its own in-house marketing team to tap into high quality end users such as in
Japan without incurring any significant marketing costs. From 4Q13 until 1Q14, the Company has
secured ~70-80% of its 2014 total sales volume.
6
Sales Destinations by Country
OPERATIONAL UPDATE
Initiative
IM
Construction of Coal Processing Plant (CPP) is expected
to boost coal production capacity at IM from 3 million tons
per annum (tpa) to 6 million tpa. This new CPP not only will
process TMU’s coal, but also will create more cost
efficiency and increase coal stockpile capacity. Overall, the
Company’s total production/infrastructure capacity is
expected to expand significantly from currently 13 million
tpa to 16 million tpa.
Achievement
Construction of CPP
is in finalization stage
PT TOBA BARA SEJAHTRA TBK at a Glance
PT Toba Bara Sejahtra Tbk (“The Company”) is one of the major competitive producers of thermal coal in
Indonesia. The Company has grown into a major coal producer operating 3 (three) coal mine
concessions in East Kalimantan. These adjacent coal mining concessions, which are held through
various operating companies, all enjoy highly favorable mine locations, with close proximity to local river
ports. The Company’s concession areas total approximately 7,087 hectares.
The Company currently has four operating subsidiaries, three in coal mining namely PT Adimitra
Baratama Nusantara (ABN), PT Indomining (IM), PT Trisensa Mineral Utama (TMU) and one in palm oil
namely PT Perkebunan Kaltim Utama I (PKU). The Company’s ownerships in ABN, IM, TMU and PKU
are 51.00%, 99.99%, 99.99% and 90.00% respectively.
th
On 6 July, 2012, the Company listed its shares at the Indonesia Stock Exchange (IDX) under the ticker
‘TOBA’ and released as many as 210,681,000 shares or 10.5% of its paid up capital with an IPO proceed
of IDR 400.3 billion.
7
Locations of Toba Bara’s Concessions
Major City
Jetty
Transhipment Point
TMU - IM Hauling Road
Major city is
less than 50
km
Muara
Berau
Furthest pit to
jetty 25km | with
closest one ~5km
Samarinda
~55 Km
(total ~120 Km)
Sungai Mahakam
17km
IM
ABN
TMU
ABN
~ 5 km
IM Jetty
Close proximity
transhipment
Makassar Strait
point & jetty
ABN Jetty
Kutai
Energy
~ 120 km
Balikpapan
Adjacent
locations for
all 3 mines
~65 Km
Muara Jawa
ABN is located in Sanga-Sanga, Kutai Kartanegara, East Kalimantan and is operated under the IUPOP
permit. It started operations in September 2008. ABN covers an area reaching 2,990 hectares, and has
estimated coal resources of around 156 million tons.
IM is located in Sanga-Sanga, Kutai Kartanegara, East Kalimantan and is operated under the IUPOP
permit. It started operations in August 2007. IM covers 683 hectares of land, and has estimated coal
resources of 37 million tons.
Meanwhile, TMU is located in Loa Janan, Muara Jawa and Sanga-Sanga, Kutai Kartanegara, East
Kalimantan. With IUPOP permit, TMU started operations in October 2011. TMU covers 3,414
hectares of land, and has estimated coal resources of 43 million tons.
Altogether, the total coal resources of the Company are currently estimated at 236 million tons.
For further information, please contact:
PT Toba Bara Sejahtra Tbk
Pandu P. Syahrir
Iwan Sanyoto
Corporate Secretary
Head of Investor Relations
(Sekretaris Perusahaan)
(Kepala Hubungan Investor)
Email: corsec@tobabara.com
Email: iwan.sanyoto@tobabara.com
Priambodo
Corporate Communication
(Komunikasi Perusahaan)
Email: priambodo@tobabara.com