PT Pertamina (Persero)1H 2020 Performance
Jakarta, October 2020
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CONFIDENTIAL AND PROPRIETARY. Any use of this material without specific permission of PT Pertamina is strictly prohibited. Should not be reproduced or redistributed to any other person.
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Disclaimer
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presentation has been prepared by representatives of PT Pertamina (Persero) (together with its subsidiaries, the “Company”) for use in presentations by the Company at investor
meetings and does not constitute a recommendation regarding the securities of the Company or any of its affiliates. No representation or warranty, express or implied, is made
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Overview of Pertamina1
Government of Indonesia (GOI)
Oversight and Regulation
100%
Ministry of Finance
Ministry of Energy & Mineral Resources
Ministry of State Owned Enterprises
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About Pertamina100 percent owned by the Government of Indonesia
Operates across Indonesia with 6 refinery units, 8 marketing
regions, the largest acreage of upstream operation, fast
array of a distribution network and infrastructure, also
overseas business operation. Pertamina now has 5 sub-
holding companies, a shipping company, also portfolio of
financial and services companies.
Pertamina issued around USD15 billion of global bonds (include
PGAS), with the latest ratings (Moody’s, S&P and Fitch): Baa2
(Stable) / BBB (Negative) / BBB (Stable), which is in line with
the sovereign’s ratings
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Board of Commissioners
Basuki Tjahaja Purnama Budi Gunadi Sadikin Ego Syarial Alexander Lay Condro Kirono Isa Rachmatarwata David Bingei
President Commissioner Vice President Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner
Board of Directors
Nicke Widyawati
President Director
Koeshartanto
Director of
Human Resources
Emma Sri Martini
Director of Finance
Haryo Yunianto
Director of
Business Support
Mulyono
Director of
Logistic & Infrastructure
Iman Rachman
Director of
Strategy, Portfolio, and
Business Development
Pertamina’s Management Team
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2
43
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The establishment of a focused, lean,
agile, and efficient organization
Improvement of corporate
competitiveness through operational
excellence and best-in-class capabilities.
An increase of flexibility in partnership
and funding
Enhancement of existing business
development as well as a new
business opportunity
Transformation of the organization, work
culture, employees' mindset and talent
Achieve the national energy agendas to
ensure energy resilience as the state
development agent
Pertamina business restructuring to unlock some values….It is imperative as it aims to accelerate the value growth of the entire Pertamina group.
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Global Energy Champion
• Provide energy security throughout
the nation
• Lead Indonesia’s energy transition
• One fuel price in every village
• Become the driver of social
development
Organization
, Human
Resources,
and Culture
Project
Completion
with the best
result
Technology
and
Digitalization
Strategic
Partners and
Mergers &
Acquisitions
Portfolio
Optimization
PERTAMINA ASPIRATION
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1H 2020 - Financial Performance2
8
8
10
0May 20Feb 20Jul 19 Aug 19 Jun 20Oct 19Sep 19 Nov 19 Dec 19 Jan 20 Apr 20Jun 19 Jul 20Mar 20
7,048,05 8,08 7,94 8,14 7,60 7,89 7,50 7,11 7,05
6,00 6,216,64 6,98
-26%
+4% +7%+5%
Jan-20Jul-19Jun-19 May-20Sep-19 Feb-20 Apr-20 Jun-20 Jul-20Nov-19Aug-19 Oct-19 Mar-20Dec-19
14.302
14.906
14.23414.237 14.73315.195
14.582
14.227
14.174
15.867
14.102
14.01714.11813.732
14.141
14.044
14.026
14.653
14.242 14.111
14.008
14.069
15.157
13.662
13.776
16.367
14.19613.901
+15%
61 61 57 61 60 63 67 65 5734
21 2637 41
Jun-19 Jul-19 Dec-19Oct-19Aug-19 Sep-19 Jan-20Nov-19 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
-66%
+24% +43% +11%
Avg Rate End Month Rate
Significant Decrease in Sales
Weakening of Indonesian Crude Price (ICP)
Rupiah fluctuation against US Dollar
Triple Shock of COVID-19 to Pertamina
• The fuel sales volume has been dropped
gradually by 26% from July 2019, and
aviation fuel was one of the hardest-hit sectors
by the COVID-19 pandemic. Sales began to
show an increasing trend since May even though
they have not returned to the normal rates.
• ICP is forced to its lowest level in April 2020 to
USD21/Bbl. This circumstance certainly has an
impact on the company's financial performance.
However, Pertamina continually upholds oil &
gas production and lifting although the
upstream margin is depressed.
• The exchange rate also weakened to its lowest
point in March 2020. This condition caused
financial pressure on Pertamina since its revenue
is mostly in IDR, yet the crude purchases are in
USD.
Million KL
Highlights
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1H 2020 some key financial performances remain positive..USD Billion
Items 1H 2019 1H 2020 ∆ %
Revenues 25.55 20.48 (5.07) -20%
COGS 18.71 15.40 (3.31) -18%
Upstream Production & Lifting Cost 2.38 2.43 0.05 2%
Exploration Cost 0.09 0.08 (0.01) -11%
Other Operation Activities Cost 0.80 0.96 0.16 20%
Gross Profit 3.57 1.61 (1.96) -55%
Sales & Marketing Expenses 0.79 0.64 (0.15) -19%
General & Administration Expenses 0.73 0.53 (0.20) -27%
Operating Profit 2.05 0.44 (1.61) -79%
Other Income/(Expenses) (0.33) (0.30) 0.03 -9%
Gain/(loss) on foreign exchange 0.06 (0.21) (0.27) -450%
Taxes 1.12 0.70 (0.42) -38%
Net Income/(Loss) 0.66 (0.77) (1.43) -217%
EBITDA 3.67 2.61 (1.06) -29%
Gross Margin - % 14% 8%
EBITDA Margin - % 14% 13%
Forex Rate (USD1= IDR) 14,197 14,600 1%
Avg ICP (USD/Bbl) 63.14 39.75 -37%
1. EBITDA, operating profit, and operating
cashflow remain positive despite the triple
shocks that hit Pertamina
2. The efficiency of Capex and Opex
equivalent to USD4.7 billion (Capex USD1.7
billion and Opex USD3 billion)
3. Renegotiate contracts which are still in
foreign currencies to be paid in IDR
4. Mitigate foreign exchange risk and improve
cash flow performance
Highlights
Liability & Equity FY 2019 1H 2020 %
Short-term Loans 1.27 2.15 69%
Trade Payables 4.64 3.00 -35%
Other Payables 5.67 6.17 9%
Long-term Loan**/*** 2.12 4.63 137%
Bond Payables 12.61 14.96 15%
Employee Benefits Liabilities 1.99 2.02 1%
Other Non-current Payables 7.57 7.64 1%
Total Liabilities 35.87 40.57 13%
Total Equity 31.22 29.66 -5%
Assets FY 2019 1H 2020 %
Cash & Cash Equivalent* 7.33 9.44 29%
Account Receivables 3.45 3.50 2%
Government Receivables** 6.69 6.30 -6%
Other Receivable 1.14 1.28 12%
Inventories 5.89 5.02 -15%
Long Term Investment 2.97 2.87 -3%
Fixed Assets 13.35 13.29 0%
Oil & Gas Assets 19.76 19.80 0%
Other Assets** 6.51 8.72 34%
Total Assets 67.09 70.23 5%
USD Billion
* Including restricted cash and short-term investment
** Include current and non current portion
1H2020 Financial Position Remains Strong…
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*** Long term loan includes Leased Accounting (PSAK 73) implementation in 2020
Financial Ratios FY 2019 1H 2020 %
Debt to Equity Ratio 51.27% 73.28% 43%
EBITDA / Interest 9.38 5.55 -41%
Net Debt / Net Worth 0.30 0.43 45%
Cash Flow in 1H 2020 Has Better Ending Cash Balance Than in 1H 2019
1H 2019 1H 2020 %
Cash Flows from Operating Activities 1.57 0.91 -42%
Cash Flows from Investing Activities (1.32) (1.69) -28%
Cash Flows from Financing Activities (1.83) 3.07 268%
Net Cash Flows (1.58) 2.28 244%
Effect of Exchange Rate (0.14) (0.05) 64%
Beginning Balance 9.11 6.76 -26%
Cash & Cash Equivalent at Period End 7.39 8.99 22%
USD Billion
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1H 2020 – Operational Performance3
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Operational Highlights
905 884ProductionOil & Gas
MMBOE/D
-2%
733 722Lifting
Oil & GasMMBOE/D
-2%
GeothermalGWh
1.021 1.146
+12%
43 41Sales
VolumeEq. MKL
-6%
1,13
1H 2019 1H 2020
Capital Expenditure USD Bn
1,64
+45%
• Upstream Production slightly decrease by 2% due to the declining of resource
• Total Sales Volume fall gradually by 6% due to the lowering demand in Q2
• Monthly Sales Volume relatively increase after its lowest point on April 2020 and
already above the monthly target in June
Feb-20Target 2020
7,1
Jun-20Jan-20 Mar-20 Apr-20 May-20
6,66,37,5 7,1
6,0 6,2 +5%
+4% +7%
Highlights
Monthly Sales Volume (Million KL)
• M&T sales volume, excluding gas & LNG sales volume
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Pertamina’s SDG Performance4
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Highlight on Sustainable Development Goals (SDGs)
❖ Implementation of Fit to Work Level
❖ CSR Program : Pertamina Sehat
❖ Zero Occupational Diseases
❖ 1.86 Million Learning Hours in 2019
❖ Increase company’s investment of Training Fund
every year
❖ CSR Program : Pertamina Cerdas (Scholarship)
❖ An increase of Woman Leaders (Top Level)
every year
❖ 2 Women Leaders in BOD in 2020
❖ Increase energy efficiency and production costs
efficiency
❖ Increase renewable energy market in the global
energy mix
❖ More than 62,000 MSME Partners until 2019 and
2,067 new partners in 2020
❖ Almost 6,000 local companies are become part of
the Company’s supply chain of goods & services
❖ Pertamina controls more than 70% domestic markets
❖ Energy Saving increases 30% in 2019 (105.5 Bil GJ) from
2018 (80.56%)
❖ Support Indonesian Government commitment to reduce Green
House Gas (GHG) emission by 29% in 2030.
❖ KPI of BOD for GCG assessment score is 92.65%, which
exceeds the target of 90% in 2019
❖ Anti Corruption training for 100% employees
❖ Whistleblowing system
❖ ISO 37001 : Anti Bribery
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COVID-19 - Pertamina Group ContributionPertamina Group provides assistance for COVID-19 handling to medical institutions and community. As of June
2020, Pertamina Group contributed around IDR 839 billion.
244.549Units of Personal Protective
Equipment
127.814Packages of Foods &
primary needs
7.753Units of Safety Googles
3.788Units of Safety Boots
66Units of Thermal Body
Scanner
5.313.565Units of Mask
32.404Liters of Hand Sanitizer
IDR 130 Bioto improve medical
facilities and equipment of
COVID-19 referral
hospitals
1.112.724Units of Gloves
113Units of Disinfectant
Chamber
Locations of
Disinfectant Spraying
12.862
Liters of Disinfectant
Solutions
30.913
1.566.937Packages of Vitamin
1.919Units of Thermo Gun
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89.824Pieces of Face Shields
310Ventilator Units
245.400Rapid Test Units
8.300Units of Portable
Washbasin
Boxes of Nurse Cap
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Performance Outlook 20205
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Several Strategic Actions to Improve Pertamina’s Performance
in 2020
The efficiency of Capex and Opex
equivalent to USD4.7 billion
(Capex USD1.7 billion and Opex
USD3 billion)
Maintain oil and gas
production to reduce imports
Optimize Pertamina Loyalty Program
and Discount Program to increase
revenue
Renegotiate contracts which are in
the foreign currencies to be paid in
IDR
Perform efficient energy
consumption by replacing the use
of refinery fuel and electricity with
natural gas from PLN
Lessen the Integrated Port Time to
reduce Cost of Goods Sold
Digital transformation which
includes digitizing gas stations and
centralized procurement
Inventory Build Up with Time to Buy
Management once oil prices are
low
Mitigate foreign exchange risk and
improve cash flow performance
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Pertamina’s strong efforts demonstrates resilient bottom line as
of August 2020…
1. From April to August, there was an increase
in fuel sales of around 12%.
2. Opex reduction program up to USD3 billion
3. Customer loyalty program and corporate
customer solution program to maintain fuel
sales
532370
212
-352
871750
87-52 5
408 433
Mar-20Jan-20 Apr-20Feb-20 May-20 Jun-20 Jul-20 Aug-20-263
2.691
3.197
4.4903.957
2.666
4.019
3.7413.649
3.529
-1.183
-24
2.646
2.998
2.921
2.050
639
2.150
1.047
3.356
2.606
Revenue Gross Margin
COGS and Direct Costs Net Income/(Loss)
USD Mio
Highlights
Monthly Revenue, COGS and Direct Cost, Gross Margin, Net Income (Loss)
Thank You
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