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FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited

Banpu Public Company Limited · Feb 28, 2019 · 67 slides

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Slides

  1. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 1
    FY18 & 4Q18 results Investor and analyst update 28th February 2019
  2. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 2
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  3. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 3
    DISCLAIMER The information contained in this presentation is intended solely for your reference. This presentation contains forward-looking statements that relate to future events, which are, by their nature, subject to significant risks…
  4. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 4
    1 Strategic Review 2 Financial Summary 3 Energy Resources Coal Gas 4 Energy Generation 5 Energy Technology 6 Key Takeaways 4
  5. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 5
    Banpu business groups ENERGY RESOURCES ENERGY GENERATION ENERGY TECHNOLOGY COAL CONVENTIONAL SMART POWER ENERGY OIL & GAS RENEWABLE PROPRIETARY POWER TECHNOLOGY DEVELOPMENT Greener and smarter with stronger integration…
  6. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 6
    Banpu: integrated energy solutions Energy Resources Energy Technology Coal: leading pan-Asia- MONGOLIA Solar Rooftop: Pacific supplier, 43Mtpa 151 MW installed JAPAN Gas: leading Marcellus across Southeast Asia shale producer, USA;…
  7. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 7
    2018 highlights A leading integrated energy 378 M 1,178 M 1.07x solutions company in Asia-Pacific Net profit from operations Consolidated Ebitda Net D/E Gearing stable YoY +22% YoY Energy Energy Energy Resources Generation…
  8. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 8
    Greener and smarter milestones 2016-2018 2016 2017 2018 Greener and smarter portfolio at end 2018 Total committed equity capacity Annual gas sales volume 5.5 20.9 70.8 Bcf Bcf Bcf JAPAN 233 MW Solar; GAS +15.4 Bcf EV investment…
  9. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 9
    Greener: gas 2018 GOING FORWARD UPSTREAM STRATEGY Seeking opportunities to strengthen position in N.E. Marcellus area 101 M Another 500 M investment budget 2018 EBITDA, with target to establish sustainable +300% YoY business in…
  10. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 10
    Greener: renewable power TOTAL COMMITTED RENEWABLES EQUITY CAPACITY Unit: MW NEW GROWTH Seeking new opportunities in Asia Pacific Target +275 and diversifying renewable fuel types to MW reach 20% renewable target within the 4.3…
  11. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 11
    Greener and smarter: smart energy SOLAR ROOFTOP SOLUTIONS Further investment in Sunseap: increase stake from 25.7% to 38.5%. Leverage Sunseaps expertise to secure new opportunities and achieve Integrate solar rooftop and strategic…
  12. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 12
    Smarter: synergy strategy focus Vietnam BANPU BUSINESSES IN VIETNAM HARD SYNERGY SOFT SYNERGY (SUPPLY CHAIN) (SKILLS) HANOI Haiphong Thai Binh COAL MARKETING RENEWABLE POWER EXPERTISE SYNERGY Blending, trading and logistics…
  13. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 13
    Growing sustainable businesses and regional presence 2019-2020 CAPITAL EXPENDITURE PLAN BY BUSINESS ILLUSTRATIVE & INDICATIVE ONLY New smart energy Coal reserves Banpu is leading the businesses organic growth transition to greater…
  14. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 14
    1 Strategic Review 2 Financial Summary 3 Energy Resources Coal Gas 4 Energy Generation 5 Energy Technology 6 Key Takeaways 14
  15. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 15
    Banpu consolidated sales revenues USD million +4% QoQ +21% YoY +13% YoY 3,481 Others* +213% YoY 2,877 144 586 Power 196 +4% YoY Others* 144 Gas -33% QoQ 46 +289% YoY +84% YoY 189 1,003 Power 37 1,014 Coal Australia +43%…
  16. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 16
    Banpu consolidated coal gross margin 2018: 37% COAL GROSS MARGIN 4Q18 : 35% COAL GROSS MARGIN 2018 : 37% USD million USD million Australia coal Indonesia coal Australia coal Indonesia coal gross margin: 28% gross margin: 39% gross…
  17. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 17
    Banpu consolidated EBITDA USD million +13% QoQ +22% YoY +28% YoY 1,178 968 Power 182 +19% YoY Gas 101 351 Power 153 +308% YoY -25% QoQ 310 28 +18% YoY 25 274 222 Coal Australia 36 Gas -5% YoY 37 +54% QoQ 235 24 +437% YoY…
  18. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 18
    Banpu consolidated NPAT 3Q18 NET PROFIT AFTER TAX 2017 NET PROFIT AFTER TAX USD million Non-recurring items: USD million Non-recurring items: FX loss USD:THB (24.8M) FX loss USD:THB (76M) 310 Other non recurring (3.4M) 968 Other non…
  19. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 19
    Banpu consolidated financial position 2018 CONSOLIDATED FINANCIAL POSITION DEBT FX STRUCTURE GEARING RATIOS USD million Net debt / Equity 1 (x) CASH EQUIVALENT THB 0.99x 1.07x 0.99x 615 AUD Float Float 4% 5% TOTAL BORROWINGS…
  20. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 20
    1 Strategic review 2 Financial summary 3 Energy Resources Coal Gas 4 Energy Generation 5 Energy Technology 6 Key takeaways 20
  21. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 21
    Global demand trends: 2018 vs 2017 CHANGE GEOGRAPHY COMMENTS 2018-17 (Mt) Import restriction reduced coal imports sharply in Q4, significant impact to low-energy coal market Mild winter, slowed economy, increased domestic supply and…
  22. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 22
    Global supply trends: 2018 vs 2017 CHANGE GEOGRAPHY COMMENTS 2018-17 (Mt) Significant growth of LCV production Chinese import restriction weighed on Q4 exports and pressured LCV INDONESIA +31 coal prices Rainy season started in…
  23. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 23
    Banpu group coal sales 2018 COAL SALES* SOURCE DESTINATION ANALYSIS 2018 GLOBAL COAL SALES* 2018 BY REGION 10.3 Mt Others 5% 4.9 India Japan 0.5 6.4 Mt 8% 15% 0.2 Mt 1.5 Mt 2.1 Thailand 4.9 0.5 3% Korea ITALY 1.0 4.3 3%…
  24. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 24
    Banpu coal sales pricing status AUSTRALIA COAL INDONESIA COAL 2018 2018 Fixed Export 39% 14.1 24.1 Mt 61% Domestic Mt Fixed 100% Fixed 2019e 2019e Unsold Fixed Unpriced 9% 20% 11% Unsold Domestic 39% 14.9* 47% 28.0*…
  25. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 25
    Banpu ASPs vs thermal coal benchmark prices BANPU ASP VS BENCHMARK PRICES COMMENTS Monthly NEX 200 Unit: US/t; A/t for CEY 150 Chinese import restriction weighed in on Q4 100 exports and pressured Indonesian coal 50 150 0…
  26. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 26
    Australia: operational summary 2018 OUTPUT (ROM EQUITY BASIS) QUARTERLY OUTPUT (ROM EQUITY BASIS) COAL OUTPUT (Mt)1 2018 output: 11.7 Mt CV: 6,700 kcal/kg2 +44% QoQ -5% YoY 2019 target: 13.0 Mt +13% YoY 12.3 11.7 Newcastle NCIG…
  27. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 27
    Australia: financial summary FINANCIAL SUMMARY Comments Higher ASP benefitting from higher export prices, Unit: A M 4Q18 3Q18 QoQ 2018 2017 YoY with contracted domestic sales were higher proportion of overall sales ASP (A/t) 103 97 6%…
  28. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 28
    Indonesia: operational summary 2018 OUTPUT (SALEABLE TONNE BASIS) QUARTERLY OUTPUT (100% BASIS) 2018 output: 22.1 Mt COAL OUTPUT (Mt) 0% QoQ +1% YoY 2019 target: 23.6 Mt CV: 5950 - 6250 kcal/kg* +12% YoY 21.8 22.1 East Kalimantan…
  29. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 29
    Indonesia: financial summary FINANCIAL SUMMARY Comments Unit: US M 4Q18 3Q18 QoQ 2018 2017 YoY In 4Q18 coal price lower than 3Q18 due to Chinese import restrictions effect and ASP (US/t) 75 89 -13% 81 73 +11% weak demand as a result…
  30. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 30
    Indonesia focus: increase in reserves Unit: Mt Coal reserves increased by 122 Mt from 2017 (22) 354 +77 254 +45 END 2017 EXPLORATION AND NPR MINE 2018 SALES END 2018 MINE PLAN ACQUISITION DEPLETION IMPROVEMENT 2018 IN…
  31. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 31
    China and Mongolia summary CHINA COAL 2018 PRODUCTION* GAOHE OPERATIONAL UPDATES Unit: Mt ROM Gaohe Stable production with continued focus on safety 2018 output: 11.6 Mt 10.3 10.1 MONGOLIA 2.7 HEBI OPERATIONAL UPDATES 2.5 2.6 2.1…
  32. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 32
    1 Strategic Review 2 Financial Summary 3 Energy Resources Coal Gas 4 Energy Generation 5 Energy Technology 6 Key Takeaways 32
  33. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 33
    U.S. gas market update AVERAGE HENRY HUB PRICE AS OF 14 FEB-19 U.S. TOTAL NATURAL GAS PRODUCTION CONSUMPTION Unit: US/MMBTU Unit: Bcf/d Forecast 5.00 110 4.50 100 90 4.00 80 2018 average 3.50 3.07 70 60 3.00 50 2.50 40…
  34. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 34
    Gas business 4Q18 performance and FY2018 Revenue increased significantly in 4Q18 as positive momentum of Henry Hub Price. Portfolio EBITDA FY2018 reached US101 M from strong selling price through the year and solid contribution from…
  35. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 35
    1 Strategic review 2 Financial summary 3 Energy Resources Coal Gas 4 Energy Generation 5 Energy Technology 6 Key takeaways 35
  36. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 36
    Banpu Power 4Q18: conventional power THAILAND LAOS CHINA BLCP Hongsa China CHP Completed unit 2 EMJ activities Achieve EAF at 89% in 4Q18, Higher demand during winter ahead of planned and resume reflecting successful…
  37. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 37
    Banpu Power 4Q18: renewable power 80 MW CHINA JAPAN VIETNAM China Solar Japan Solar Vietnam Wind Lower irradiation during winter Lower capacity factor during winter Start Feasibility study of phase 1 of resulted in lower…
  38. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 38
    1 Strategic Review 2 Financial Summary 3 Energy Resources Coal Gas 4 Energy Generation 5 Energy Technology 6 Key Takeaways 38
  39. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 39
    Banpu CTO OTHMAN ELKHOMRI TECHNOLOGY DEVELOPMENT EXPERIENCE Chief Technology Officer Banpu Innovation & Ventures AUTONOMOUS FLYING VEHICLE In charge of technology development activities across Banpu group Heads up the new…
  40. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 40
    Banpu Innovation & Ventures (BIV) OBJECTIVES START-UP CO-CREATION PLAN FOR 2019 OUTSIDE BANPU INSIDE BANPU Develop cutting edge technologies Spin-Out Spin-In and fast track them to value-creating businesses for START-UPS…
  41. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 41
    BPIN-BIV partnership with Japan EV company FOMM CORPORATION BPIN-FOMM-BIV FOMM-BIVINVESTMENT COLLABORATION Japans leading close-range mobility EV developer BPIN subsidiary has acquired 21.5% shareholding in FOMM FOMM EV FEATURES…
  42. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 42
    BPIN partnership with Rugby school: smart campus BPIN delivers comprehensive clean energy and efficient Smart Solutions to push the school towards becoming a Smart Campus providing Smart City Solution services ranging from system design,…
  43. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 43
    1 Strategic Review 2 Financial Summary 3 Energy Resources Coal Gas 4 Energy Generation 5 Energy Technology 6 Key Takeaways 43
  44. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 44
    Key takeaways 2018 US378 M NET PROFIT US1,178 M COAL EBITDA GAS EBITDA FROM OPERATIONS GROUP EBITDA REMAINS STRONG INCREASES 4X Adjusted net profit from Consolidated EBITDA US895 M Coal EBITDA US101 M Gas EBITDA; operations…
  45. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 45
    Integration and synergy value 'The whole is greater than the sum of its parts'* ARISTOTLE *Attributed to Aristotle, source: Aristotle, Metaphysics 8.6 [=1045a]: Many things have a plurality of parts and are not merely a…
  46. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 46
    APPENDIX 46
  47. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 47
    Regional thermal coal market: 2018 vs 2017 +1 RUSSIA +21 +11 EUROPE +24 OTHER N. ASIA OTHERS CHINA USA -8 +31 -2 -5 +23 INDIA COLOMBIA INDONESIA -3 SOUTH +8 AFRICA OTHERS * -2 Unit: Mt AUSTRALIA SUPPLY…
  48. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 48
    China: import control driving market CHINA THERMAL COAL IMPORTS/EXPORTS* Unit: Mt QUARTERLY (ANNUALIZED) ANNUAL 4Q18 Weak demand due to slowing economy, a warmer- than-expected winter, widespread anti-pollution IMPORT…
  49. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 49
    India: reliance on imports grew INDIA THERMAL COAL IMPORTS* Unit: Mt QUARTERLY (ANNUALIZED) ANNUAL 4Q18 Improved industrial performance and the push of electrification drove electricity demand Power sector reforms included obligating…
  50. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 50
    Coal quarterly output summary AUSTRALIA OPERATIONS: COAL OUTPUT (MT) ROM OUTPUT ON EQUITY BASIS Mines CV (kcal/kg)* 4Q17 3Q18 4Q18 1Q19e Western operations 1.2 0.9 1.0 1.1 Springvale 6,700 0.4 0.4 0.3 0.5 Clarence 6,700 0.6 0.3 0.4 0.4…
  51. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 51
    Banpu group Q-Q revenue analysis: coal INDONESIA COAL (ITM) AUSTRALIA COAL (CENTENNIAL) CHINA COAL Domestic SALES (Mt) 100% basis Domestic SALES (Mt) Equity basis Domestic SALES (Mt) Equity basis Export Export Export 6.6 7.4 6.4…
  52. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 52
    Indonesia coal gross margin 4Q18 : 39% USD million 593 588 542 271 250 242 171 173 157 47% 43% 39% 44% 78 39% 65 31% 51% 54% 61% 64 52% 30 24 9 14 23 63% 14 63% 48% 50% 50% 47% 24% 15% 48% Indominco…
  53. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 53
    Gas business: 2018 indicative guidance ILLUSTRATIVE AND INDICATIVE ONLY UNIT GUIDANCE (US/ MCF) COMMENTS REVENUE Average differential to Henry 0.5-0.8 Difference selling points and (NYMEX basis) and Hub Henry Hub Pipeline revenue…
  54. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 54
    Key external and corporate events Argentina and BoT maintains Fed increased US-China agreed to 90- BoT increased Fed increased INDIRECT Turkey policy rate at policy rate to 2%- day postpone of any policy rate to policy rate to…
  55. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 55
    Fx impact analysis guidance on P&L CURRENCY NPAT IMPACT 4Q18 APPROXIMATE FX NPAT 5% SENSITIVITY 1Q19 EXPOSURE (USM) EXPOSURE (USM) (USM) NET LIABILITY NET ASSET Assuming 5% depreciation of local currencies against USD BOT forecast…
  56. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 56
    Banpu group EBITDA breakdown 290 310 351 227 USD million & holding companies 1Q18 2Q18 3Q18 4Q18 100% 68% 79% AACI OVERHEAD U.S. SHALE GAS AUD mil 99 96 170 132 110 101 51 66 24 52 51 37 28 14 27 36 -1 -1 -1 -1 1Q18 2Q18…
  57. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 57
    Banpu group net debt breakdown USD million Consolidated 3,430 3,508 3,456 3,407 NOT consolidated & holding Net debt companies Net cash 1Q18 2Q18 3Q18 4Q18 100% AUSTRALIA COAL 68% INDONESIA COAL 79% POWER AUD mil 685…
  58. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 58
    Banpu consolidated : operating profit USD million 2018 2017 YoY% Total sales revenues* 3,481 2,877 21% Sales revenue Coal 3,020 2,629 15% Sales revenue Gas 144 37 289% Sales revenue Power 196 189 4% Cost of sales (2,253) (1,767)…
  59. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 59
    Banpu consolidated : operating profit USD million 2018 2017 YoY% Gross Profit 1,228 1,110 11% GPM 35% 39% SG&A (343) (291) Royalty (291) (268) Income from associates 264 205 Other income and Dividend 33 46 Mining property (40) (39) EBIT…
  60. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 60
    Banpu consolidated : net profit USD million 2018 2017 YoY% EBIT 852 762 12% Interest expenses (170) (135) Financial expenses (5) (5) Income tax (core business) (121) (117) Minorities (109) (110) Net profit before extra items 447…
  61. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 61
    Banpu consolidated : operating profit USD million 4Q18 3Q18 4Q17 QoQ% YoY% Total sales revenues* 1,003 965 891 4% 13% Sales revenue Coal 879 846 812 4% 8% Sales revenue Gas 43 39 13 11% 221% Sales revenue Power 52 37 57 43% -9%…
  62. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 62
    Banpu consolidated : operating profit USD million 4Q18 3Q18 4Q17 QoQ% YoY% Gross Profit 348 356 351 -2% -1% GPM 35% 37% 39% SG&A (99) (84) (87) Royalty (85) (84) (82) Income from associates 43 65 25 Other income and Dividend 16 5 22…
  63. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 63
    Banpu consolidated : net profit USD million 4Q18 3Q18 4Q17 QoQ% YoY% EBIT 212 249 222 -15% -5% Interest expenses (44) (43) (36) Financial expenses (0) (2) (2) Income tax (core business) (30) (43) (34) Minorities (23) (36) (30) Net…
  64. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 64
    Centennial : Income statement USD million 2018 2017 YoY% Sales volume (Mt) 14.0 13.4 5% Sales revenue 1,039.3 882.5 18% Cost of Sales (768.3) (581.9) Gross Profit 270.9 300.6 -10% GPM 26% 34% SG&A (94.4) (105.8) Royalty (56.3) (55.6)…
  65. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 65
    Centennial : Income statement USD million 4Q18 3Q18 4Q17 QoQ% YoY% Sales volume (Mt) 3.8 3.4 3.6 13% 6% Sales revenue 286.4 248.4 259.2 15% 11% Cost of Sales (209.1) (200.4) (166.7) Gross Profit 77.3 48.0 92.4 61% -16% GPM 0.0 0.0 0.0…
  66. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 66
    Australia coal: quarterly equity rom output Total equity ROM (Mt) PLANNED ACTUAL (INDICATIVE ONLY) 5.0 4.5 4.0 3.8 3.7 3.4 3.4 3.5 3.1 NORTHERN 3.0 2.5 2.4 2.4 2.0 2.1 2.5 2.3 2.4 2.0 2.0 1.3 1.4 1.3 1.5 WESTERN…
  67. FY18 and 4Q18 Earnings Presentation – Banpu Public Company Limited – slide 67

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