0
www.bayan.com.sg
1
Bayan’s Transformation
www.bayan.com.sg
Financial Performance
Revenue (in million USD) 555.5 1,067.4 ↑ 92%
Gross Profit (in million USD) 210.4 553.6 ↑ 163%
EBITDA (in million USD) 166.8 485.1 ↑ 191%
Net Profit After Tax (in million USD) 18.0 338.0 ↑ 1776%
Financial Ratios
Gross Profit Margin (%) 37.9% 51.9% ↑ 37%
EBITDA Margin (%) 30.0% 45.4% ↑ 51%
Net Profit Margin (%) 3.2% 31.7% ↑ 876%
Net Debt to EBITDA (x) 2.6 0.1 ↓ (97%)
Operational Statistics
Overburden Removal (MBCM) 32.8 84.9 ↑ 159%
Strip Ratio (x) 3.4 4.1 ↑ 21%
Coal Production (Million Tones) 9.7 20.9 ↑ 115%
Sales Volume (Million Tones) 13.0 20.1 ↑ 55%
% Change2016 2017
2
www.bayan.com.sg
One of the Quickest Growing Coal Producers
Bayan is currently in the top ten coal producers in Indonesia with a view to moving into the top 3 within the next few years.
2017 completed the initial phase of infrastructure to allow Bayan to continue to be one of the quickest growing producers.
MT
2017 Production
86.0
51.8
32.0 24.2 22.1 20.9 15.6
0
40
80
120
Bumi Adaro Indika PTBA ITMG Bayan GoldenEnergy
Source: Company Filings, Company Data
2015 - 2017 CAGR (Production)
33.2 29.6
13.9
2.0
(2.7) (7.4) (8.8) -9-416
1116212631
GoldenEnergy
Bayan PTBA Bumi Adaro Indika ITMG
Source: Company Fillings. Company Data
3
One of the Lowest Cost Producers in Indonesia
2017 Strip Ratio Competitors (x)
Source: Company Filings, Company Data
Global Cost Competitive Positioning
Source: Wood Mackenzie, Company Data
1.5
3.6 4.0 4.1 4.6
6.0
7.2
11.1
0
2
4
6
8
10
12
Tabang PTBA GoldenEnergy
Bayan Adaro Kideco Bumi ITMG
Source: Company Filings, Company Data
2017 EBITDA Margin (%)
45.7 40.0
33.8 28.6 26.5 24.3
0
10
20
30
40
50
Bayan Adaro PTBA Indika ITMG GoldenEnergy
2017 EBITDA (Million USD)
1,302.0
734.0
486.0 485.1 448.0
184.0
0
200
400
600
800
1,000
1,200
1,400
Adaro Indika PTBA Bayan ITMG GoldenEnergy
Source: Company Filings, Company Data
0
10
20
30
40
50
60
70
80
90
200 400 600 800
To
tal C
ash
Co
st
(US
$/t
No
min
al)
RoW Indonesia Australia Bayan Seaborne Export Supply (MT)
4
Net Debt / EBITDA
x
10.2x
5.8x
2.6x
0.1x
0
5
10
15
2014 2015 2016 2017
1.3x 2.7x
3.7x
16.8x
0
4
8
12
16
20
2014 2015 2016 2017
EBITDA / Net Interest Expense
x
Management prudently utilised the significantly improved financial performance to deleverage the Group.
The Group now has the financial strength to continue with the next phase of expansion of Tabang.
Targeted leverage of less than 2x EBITDA throughout the commodity cycle.
Deleveraged the Group
5
Low Cost Incremental Growth
Able to continue expansion using existing infrastructure whilst building for the next phase is completed.
New coal haul road and barge loading facility targeted to the constructed and brought into operations in 2021 which will double existing capacity.
Budgeted capex in the region of USD 255 in the next three years.
10
23
32
50
65 71
85
96 98
110
130
159 161
175
207
218
0
50
100
150
200
250
25.0
50.0+
Today Upside
…Unlocking tangible capacity
upside at ~US$10/ton
discretionary growth Capex
Tabang Capacity Growth
Capex Intensity by Country (1)
Source: Wood Mackenzie
Notes
(1) Based on 2012 real dollars
(2) US$255m Capex divided by an incremental 25+ Mtpa production / sales capacity
6
4Q 2017
www.bayan.com.sg
Overburden Removal
Coal Production
Weighted Average Strip Ratio
Average Cash Costs
Coal Sales
Average Selling Price
Committed & Contracted Sales
EBITDA
Net Debt and Cash Position
Capital Expenditure
7
Overburden Removal (OB)
(in million BCM) 4Q17B 4Q17
Teguh Sinar Abadi / Firman
Ketaun Perkasa5.8 12.2
Perkasa Inakakerta 1.7 2.2
Tabang Concessions 5.6 8.0
Gunung Bayan 1.5 1.1
Wahana Baratama Mining 3.9 3.8
Total 18.4 27.3
4Q17 Overburden removal and 2017 significantly above Budget
(million BCM)
Note : B stands for Budget Figure
9.2
27.3
0.0
5.0
10.0
15.0
20.0
25.0
30.0
4Q16 4Q17B 4Q17
18.4
4Q17 OB was 27.3 million BCM which was slightly higher than 3Q17 levels despite being significantly impacted by high rain levels, especially at Tabang.
Considerably above the Budget as the Group pushed to meet stretch targets.
8
Coal Production
3.0
6.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
4Q16 4Q17B 4Q17
4.5
Note : B stands for Budget Figure
(in million MT) 4Q17B 4Q17
Teguh Sinar Abadi/ Firman
Ketaun Perkasa0.5 1.0
Perkasa Inakakerta 0.2 0.3
Tabang Concessions 3.3 4.3
Gunung Bayan 0.1 0.1
Wahana Baratama Mining 0.4 0.3
Total 4.5 6.1
2017 coal production of 20.1 million MT exceeded Budget by 18%
(million MT) 4Q17 coal production of 6.1 million MT was lower than 3Q17 production due to very high rain levels which significantly impacted Tabang’s operations.
4Q17 coal production of 6.1 million MT was higher than the Budget due to all sites pushing to reach the stretch targets.
9
Weighted Average Stripping Ratio (SR)
4Q17B 4Q17
Teguh Sinar Abadi / Firman
Ketaun Perkasa12.1 12.8
Perkasa Inakakerta 6.9 6.5
Tabang Concessions 1.7 2.2
Gunung Bayan 13.1 11.5
Wahana Baratama Mining 9.1 11.8
Total 4.1 4.5
Weighted Average SR (:1)
3.1
4.5
0.0
1.0
2.0
3.0
4.0
5.0
4Q16 4Q17B 4Q17
4.1
Note : B stands for Budget Figure
Low stripping ratio when compared to our competitors
4Q17 weighted average stripping ratio of 4.5:1 was higher than 3Q17 and above the Budget mainly due to WBM operating in a higher SR area and TSA/FKP operates at a higher SR due to geotechnical issue.
However the years average of 4.1:1 was one of the lowest compared to our competitors.
10
Average Cash Costs
28.9 32.3
0.0
10.0
20.0
30.0
40.0
4Q16 4Q17B 4Q17
29.4
Note : B stands for Budget Figure
Average Cash Costs include Royalty, Barging and SGA
2017 cash cost of USD 29.0 remained below Budget
4Q2017 Cash Costs were US$ 32.1/MT, which was slightly higher than the 3Q2017 and the Budget mainly due to:
• Higher royalty due to higher ASP
as coal prices remained strong.
• Increasing fuel prices.
11
Coal Sales (by volume)
3.9
6.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
4Q16 4Q17B 4Q17
5.1
(million MT)
Note : B stands for Budget Figure
Geographic Distribution
(4Q17) (YTD)
India
27%
China
16%
Malaysia
13%
Korea
13%
Vietnam
1%
Indonesia
14%
Philippines
8%
Others
7% India
28%
China
13%
Malaysia
13%
Korea
15%
Vietnam
1%
Indonesia
14%
Philippines
9%
Others
8%
2017 sales volumes of 20.1 million Mt exceeded Budget by15%
4Q17 coal sales volumes of 6.1 were higher than 3Q17 and 4Q17B as sales were made in advance on the back of increased production levels in the previous quarters.
India and China are the top two destinations in 4Q2017.
Top customers 4Q2017 and YTD (by sales volume) are: TNB Fuel Service Sdn. Bhd., Mercuria Energy and Noble Resources.
Indonesian domestic sales are becoming more significant due to continued effort to support GoI expansion program.
12
Average Selling Price (ASP)
45.8
57.5
0.0
10.0
20.0
30.0
40.0
50.0
60.0
4Q16 4Q17B 4Q17
37.8
2017 ASP of US$ 53.1/MT exceeded the Budget as the Company benefited from continued higher benchmark prices
Note : B stands for Budget Figure
(U
S$
/ M
T)
ASP includes coal and non-coal sales *
4Q17 ASP of US$ 57.5/MT was higher than 3Q17 of US$ 52.3/MT and the Budgeted ASP of US$ 37.8/MT due to :
• Coal prices remaining strong into the 4Q2017 whilst the Budget anticipated a weakening coal price.
• Combined with significant element of unfixed sales book.
Partially offset with:
• Lower CV than the Budget (4,569 GAR vs 4,653 GAR) as the proportion of Tabang was higher than the Budget as we exceeded Budgeted production volumes.
13
Committed and Contracted Sales for 2018
2018
Fixed Price Floating Price
18.1 million MT
21%
79%
Contracted sales already underpin 2018 growth
Strong demand and contacted volumes underpin 2018 volumes.
As at 31 December 2017 the Group had committed and contracted sales volumes of 18.1 million MT with an average CV of 4,606 GAR kcal which underpins the Group 2018 sales volumes.
Additional sales will be made as production levels continue to grow throughout 2018.
2018 Fixed Price element at US$ 48.71/
MT with an average CV of 4,467 GAR kcal.
14
EBITDA
32.9
153.3
0.0
50.0
100.0
150.0
200.0
4Q16 4Q17B 4Q17
46.5
EBITDA Margin (%) Competitors Table
45.4 40.0
33.8 28.6 26.5 24.3
0
10
20
30
40
50
Bayan Adaro PTBA Indika ITMG GoldenEnergy
One of the best EBITDA margin’s in Indonesia
4Q17 EBITDA of USD 156.3m exceed the 3Q’s results and was the highest of the year.
The 2017 EBITDA of USD 485.1m exceeded some of the larger, more established Indonesian coal producers.
EBITDA margin in excess of 45% is one of the best in Indonesia.
Note : B stands for Budget Figure
15
318.3
263.1
177.1
40.6
119.9
156.2
108.2
71.2
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
1Q 2Q 3Q 4Q
Net Debt Cash and Restricted Cash
Net Debt and Cash - 2017
Deleveraged the Company
(in
millio
n U
S$
)
As of 31 December 2017, fully prepaid all existing long term debt.
Drew down USD 100 million under new Permata Working Capital facility.
The Group leverage significantly reduced, Net Debt to EBITDA Ratio of 0.1x.
16
Capital Expenditure
50.1 48.9
-
10.0
20.0
30.0
40.0
50.0
60.0
Budget YTD
Minimal Capex required to achieve growth
In
Mil
lio
n U
SD
Capex YTD was US$ 48.9 million, which was slightly below the Budget.
Majority of spend was at Tabang related to infrastructure at:
• Senyiur Jetty
• Improvement of the CHR
• Additional Equipment & Machinery.
17
www.bayan.com.sg
PT Gunungbayan Pratamacoal GBP
PT Perkasa Inakakerta PIK
PT Teguh Sinarabadi TSA
PT Firman Ketaun Perkasa FKP
PT 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
Appendix
18
www.bayan.com.sg
Appendix
PT Graha Panca Karsa GPK
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 Karsa Optima Jaya KOJ
19
Disclaimer
www.bayan.com.sg
This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources 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 and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events. These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for coal generally and for our products in particular, the success of our mining activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for planned expansion efforts, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement.
20
Thank You
www.bayan.com.sg
Top Related