Bayan Investor Presentation.pdf

8/12/2019 Bayan Investor Presentation.pdf

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w w w . b ay a n . co m . s

Third Quarter 2013Update Presentation


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Executive Summary

w w w . b ay a n . co m . sg

Overall financial performance in YTD September 2013 decreased comparedto YTD September 2012 as net income includes a US$32.8 million foreign

exchange loss of prepaid tax and an impairment of US$29.6 million on thevalue of the inventory due to the reduction of coal price

Combined with lower sales volume and lower ASP (as a result of continuedweak market conditions) more than offsetting the reduction in costs

Revenue, Gross Profit, and Net Income include coal and non-coal sales ; 2) US$ is a convenience translation using the average yearlyexchange rate and quarterly rates

*

Sales Volume (milion MT) 16.0 16.0 to 17.011.9 10.7 -10%Coal Production (million MT) 16.3 14.0 to 15.0 12.3 10.3 -16%

Average Selling Price (US$/MT) 88.9 83 to 86 91.2 79.6 -13%

Average Cash Costs (US$/MT) 78.1 74 to 77 79.1 73.6 -7%

Var2013 B2012YTD Sept

2012

YTD Sept

2013

Average Selling Price includes coal and non-coal sales ; 2) US$ is a convenience translation using the average yearly exchange rate andaverage quarterly exchange rate; 3) Average Cash Costs include Royalty, Barging, SGA; 4) B stands for Budget Figures

*

Revenue 1,509.3 1,422.9 1,083.4 850.0 -22%

Gross Profit 439.8 258.7 201.2 106.5 -47%

Gross Profit Margin 29% 18% 19% 13%

Net Income213.3 54.9 57.6 (31.1)

-154%

(in million USD) 2012YTD Sept

2012

YTD Sept

2013Var2011


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3Q 2013


Overburden Removal

Coal Production

Weighted Average Strip Ratio

Average Cash Costs

Coal Sales

Average Selling Price

Committed & Contractual Sales

Debt and Cash Position

Capex


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Overburden Removal (OB)


(million BCM)

Overburden Removal

3 Q 1 3 O v e r b u r d e n r e m o v a l w a s 4 0 .6 m i l l io n B CM w h i c h w a s b e l o w 2 Q 1 3 a n d 3 Q 1 3 B u d g e t

65.8

41.0 40.6

3Q12 3Q13B 2Q13 3Q13

41 to 45

3Q13 OB was 40.6 million BCM

which was lower than 2Q13 and3Q13 Budget due to the decreasein OB activities as a result of theoverall decrease in strip ratiowhich took effect in 4Q12

OB volumes went down QoQ inWBM due to higher than expected

rainfall combined with significantinflow of water from Arutmin; in pitdumping was suspended due toflooding

This was partially offset by theincrease in OB from TSA/FKP andFSP due to contractors exceeding

their Budgeted OB volume

3Q12 3Q13

Gunungbayan Pratamacoal - Block II 26.2 16.1

Gunungbayan Pratamacoal - Block I 1.5 -

Perkasa Inakakerta 7.3 4.4

Teguh Sinar Abadi 1.2 3.3

Firman Ketaun Perkasa 11.4 4.0

Fajar Sakti Prima 1.3 1.2

Bara Tabang

Wahana Baratama Mining 15.4 11.6

Pakar South

Mamahak 1.5 -

Total 65.8 40.6

Overburden Removal(in million BCM)

Note : B stands for Budget Figure


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Coal Production

(million MT)

Coal Production Volume


3 Q 1 3 c o a l p r o d u c t i o n w a s 3 .6 m i l l io n M T w h i ch w a s w i t h i n t h e r a n g e o f t h e 3 Q 1 3 B u d g e t

4.4

3.33.6

3Q12 3Q13B 2Q13 3Q13

3.5 to 3.7 3Q13 coal production was 3.6million MT which was higherthan 2Q13 but it was within therange of the 3Q13 Budget

Coal production went up incomparison to 2Q13 principallyat FSP as a result of the

contractors exceeding their CoalProduction Budget but this wasslightly offset by the decrease inproduction at WBM as a result ofpoor weather conditions

3Q12 3Q13

Gunungbayan Pratamaco al - Block II 1.0 0.9

Gunungbayan Pratamacoal - Block I -

Perkasa Inakakerta 0.7 0.6

Teguh Sinar Abadi 0.1 0.3

Firman Ketaun Perkasa 0.9 0.4

Fajar Sakti Prima 0.7 0.8

Bara Tabang

Wahana Baratama Mining 0.9 0.7

Pakar SouthMamahak 0.1 0.0

Total 4.4 3.6

Production(in million MT)



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Coal Sales (by volume)


(million MT)

Coal Sales Volume

4.0

3.83.0

2Q12 3Q13B 2Q13 3Q13

4.2 to 4.4

Geographic Distribution (YTD)

3Q13 coal sales volume was 3.0million MT which was lower than2Q13 and 3Q13 Budget due to

Low water level at Tabang whichaffected barging activities andconsequently, impacted blending

Higher proportion of sales wascommitted in 4Q13

Japan and India are Bayans biggestcustomer in terms of YTD salesvolume

Top customers YTD (by salesvolume) are: Vitol Asia PTE LTD, J.Aron & Co, TNB Fuel Service

ENEL, and Adani

3 Q 1 3 c o a l s a le s v o l u m e w a s 3 .0 m i l l io n M T w h i c h w a s b e l o w t h e r a n g e o f t h e 2 Q 1 3 B u d g e t


17%

8%

17%

13%

14%

9%

11%

11%

China

India

Japan

Taiwan

Philippines

Malaysia

Others

Italy


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Average Selling Price (ASP)


(US$/MT)

Average Selling Price (*)

3 Q 1 3 A SP w a s U S$ 7 4 . 2 / M T w h i ch w a s b e l o w t h e r a n g e o f t h e 2 0 1 3 B u d g e t

(1) ASP includes coal and non-coal sales(2) US$ is a convenience translation using the average quarterly

exchange rate for the quarter numbers(3) B stands for Budget Figure

*

79.0 79.774.2

3Q12 2013B 2Q13 3Q13

83 to 86 3Q13 ASP was US$ 74.2 / MT

which was lower than 2Q13 and2013 Budget due to thecontinued weak marketconditions

3Q13 ASP reflect current indexpricing since a major proportionof sales were index linked

3Q13 average CV was 5,843 GARkcal compared to 2Q13 at 5,834GAR kcal


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Committed and Contracted Sales


2013

Fixed Price Floating Price

14.3 million MT

81.2%

18.8%

Note : September 2013

As at 30 September 2013committed and contracted saleswere 14.3 million MT with anaverage CV of 5,877 GAR kcal

2013 Fixed Price element of 11.6million MT at US$ 78.3 / MT withan average CV of 5,811 GAR kcal


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Total Net Debt and Cash

In 2012, the Company refinanced its existing debt with a US$750 millionfacility which comprises :

US$ 400 milion Term Loan Facility, amortizing over 5 years

US$ 200 million Capex Facility, amortizing over 5 years

US$ 150 million Working Capital Facility, bullet after 3 years


431.2415.0

463.6495.1

446.4469.4

479.7

128.2115.9

99.5

152.8

201.2 198.7212.2

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Total Debt CashNote : Total Debt less cash and Debt Service Reserve Account (DSRA)

(inmillionUS$)


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Capital Expenditure


US$ is a convenience translation using the average annualexchange rate; B stands for Budget Figure

*

(US$ million)

CAPEX (*)

9.4

Budget YTD Actual

45 to 55

YTD Capex was US$ 9.4 million

3Q13 Capex was principally forthe following :

Bara Tabang Haul Road

Cilong Haul Road

Majority of capex will be spent

towards the end of the year asconstruction of Tabang haul roadis anticipated to gain momentum


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PT Perkasa Inakakerta PIK

PT Teguh Sinarabadi TSA

PT Firman Ketaun Perkasa FKPPT 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

PT Graha Panca Karsa GPK

Tabang

Pakar

Mamahak

Appendix


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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 Bara Karsa Lestari BKL

PT Karsa Optima Jaya KOJ


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Disclaimer


This presentation contains forward-looking statements based on assumptions and forecasts made by PT. BayanResources 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 andprojections, and speak only as of the date they are made. We undertake no obligation to update any of them inlight of new information or future events.

These forward-looking statements involve inherent risks and are subject to a number of uncertainties, includingtrends in demand and prices for coal generally and for our products in particular, the success of our miningactivities, both alone and with our partners, the changes in coal industry regulation, the availability of funds forplanned expansion efforts, as well as other factors. We caution you that these and a number of other knownand unknown risks, uncertainties and other factors could cause actual future results or outcomes to differmaterially from those expressed in any forward-looking statement.


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Thank You

For more information, please contact :

[email protected]


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