Pt Alamtri Resources Indonesia Tbk · IDX:ADRO
Pt Alamtri Resources Indonesia Tbk — PT Adaro Energy Indonesia — Investor Presentation (March 2022)
43 slides from Pt Alamtri Resources Indonesia Tbk's investor presentation, March 2022
Slide 1: PT Adaro Energy Indonesia Tbk
PT Adaro Energy Indonesia Tbk March 2022
Slide 2: Disclaimer
Disclaimer These materials have been prepared by PT Adaro Energy Tbk (the “Company”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or conta
Slide 3: Frequently Asked Questions
Frequently Asked Questions ➢ Recent trends in coal market and coal price ➢ Industry and price outlook ➢ Adaro’s business transformation ➢ Progress of Adaro’s projects ➢ Adaro’s strategy and approach on ESG issues 3
Slide 4: Strong Price Maintained due to Tight Market
Strong Price Maintained due to Tight Market 400 1100 350 1000 300 900 250 800 200 700 150 600 100 500 50 400 0 300 NEX (US$) ICI 3 (US$) ICI 4 (US$) QHD 5500 NAR (RMB) ❑ Lingering supply constraints and buoyant demand have supported coal prices. Further, the Russia and Ukraine conflict has sent ther
Slide 5: Thermal Coal Demand Remains Significant in the Long Run
Thermal Coal Demand Remains Significant in the Long Run Global thermal coal imports demand (Mt) 1,200 • Coal remains as significant part of 1,000 energy mix in emerging economies in Asia 800 Million Tonnes • Despite push towards renewable 600 energy, emerging economies in Asia still rely on coal for
Slide 6: Robust Demand Outlook for Metallurgical Coal
Robust Demand Outlook for Metallurgical Coal Global metallurgical coal imports demand (Mt) • The long-term demand fundamentals for 450 metallurgical coal remain intact, underpinned by 400 infrastructure growth. Steel production and consumption is forecasted to grow. Met coal 350 demand is expected t
Slide 7: Southeast Asia is One of the Key Markets for Thermal and Met Coal
Southeast Asia is One of the Key Markets for Thermal and Met Coal SEA electricity demand more than double to 2040 ASEAN (5) steel demand grows moderately in the short-term 80 10% 78 5% 76 74 0% 72 78 78 -5% 70 68 73 -10% 66 69 64 -15% 2019 2020 2021F 2022F Volume (Mt) y-o-y growth Notes: TWh = teraw
Slide 8: Performance of Adaro Energy
adaro® Performance of Adaro Energy
Slide 9: Solid Financials Backed by Strong Operations
Solid Financials Backed by Strong Operations Financial position continues to improve: net cash in 2021 Strong cash balance and free cash flow generation 600 0.5 400 0.4 0.3 200 0.2 - 2016 2017 2018 2019 2020 2021 0.1 (200) - (400) (0.1) (600) (0.2) Net Debt Net Debt to Operational EBITDA (x) Net Deb
Slide 10: Cost Control – Key for Strong Performance
Cost Control – Key for Strong Performance Adaro’s estimated coal cash cost breakdown (FY21) Electrification to reduce the usage of diesel gensets Fixed overhead, 5% Coal processing, 10% Mining, 35% - 40% Freight & handling, 20% Fuel, 25% - 30% Strong operational EBITDA generation and healthy operati
Slide 11: Operational Excellence and Efficiency
Operational Excellence and Efficiency Continue to deliver solid results and operational excellence OPERATIONAL FY21 FY20 % Change Production (Mt) 52.70 54.53 -3% Sales (Mt) 51.58 54.14 -5% OB removal (Mbcm) 218.90 209.48 4% FINANCIAL (US$ millions, unless indicated) FY21 FY20 % Change Net Revenue 3,
Slide 12: Snapshot of Adaro Energy
adaro® Snapshot of Adaro Energy
Slide 13: Who We Are
Who We Are IDX-listed integrated mining and energy company with eight business pillars built to create value and achieve sustainable growth Integrated pit-to-power business model with control over each part of the coal supply chain Eight business pillars to support future growth Our strategy to crea
Slide 14: Integrated Business Model
Integrated Business Model with control over each part of the supply chain THERMAL COAL MINING SERVICES Maritim Barito Perkasa 100% Makmur Sejahtera Wisesa (MBP) (MSW) 100% Adaro Indonesia (AI) 88.5% Saptaindra Sejati (SIS) 100% Barging & Shipping Operator of 2x30MW mine- Coal mining, S. Kalimantan C
Slide 15: Adaro Mining
Adaro Mining
Slide 16: Large Coal Reserves and Diverse Portfolio across Indonesia and Australia
Large Coal Reserves and Diverse Portfolio across Indonesia and Australia 1 Adaro Indonesia: Balangan Coal 2 PT Adaro Minerals3 4 BEE: 61.04% stake 5 MIP: 75% stake 88.5% Companies: Indonesia Tbk S Sumatra S Sumatra Existing, S Kalimantan (AMI) sub-bituminous sub-bituminous S Kalimantan sub-bituminou
Slide 17: Unique Coal Product and Strong Customer Base Focused on Asia
Unique Coal Product and Strong Customer Base Focused on Asia Envirocoal is among the lowest pollutant content coal in the seaborne market Ash content: 2%-3% (adb) Nitrogen content : 0.9% - 1.0% (daf) Sulfur content: 0.1% - 0.25% (adb) Customer geographical breakdown (FY21) Customer type by volume (F
Slide 18: PT Adaro Minerals Indonesia Tbk (AMI)
PT Adaro Minerals Indonesia Tbk (AMI)
Slide 19: AMI at a Glance
AMI at a Glance Indonesia’s leading metallurgical coal producer with low-cost, efficient operation supported by Adaro Group’s integrated supply chain network Five CCoW holders located in Central and East Kalimantan, Indonesia. Large coal reserves and resources base which supports long-term sustainab
Slide 20: Company Overview
Company Overview • Established in 2007, AMI carries out an integrated mining activities through its subsidiaries, which has one of the largest greenfields area in Central Kalimantan for metallurgical coal. • The Company’s subsidiaries own 5 Coal Contract Of Work (“CCoW”) located in East Kalimantan a
Slide 21: Solid Performance Supported by Operational Excellence
Solid Performance Supported by Operational Excellence OPERATIONAL FY21 Production (Mt) 2.30 Sales (Mt) 2.30 OB removal (Mbcm) 5.15 FINANCIAL (US$ millions, unless indicated) FY21 Net Revenue 460 Net Profit 156 Total Asset 965 Net Profit Margin 52% 21 21
Slide 22: PT Adaro Indo Aluminium (AIA)
PT Adaro Indo Aluminium (AIA)
Slide 23: PT Adaro Indo Aluminium
PT Adaro Indo Aluminium Leading the Adaro Group’s green transformation/Achieving the Adaro Group’s green vision Increasing revenue contribution from non-coal to balance our business Supporting Government’s plan on green industry and processing of mineral product Looking to partner with reliable and
Slide 24: Domestic Supply and Demand Balance
Domestic Supply and Demand Balance Domestic Supply and Demand of Aluminum 2500 2000 1500 Gap 1000 500 0 2020 2025 Indonesian Production Capacity Indonesian Aluminum Demand Source: Pre-Feasibility Study Guiyang Aluminum Magnesium Design & Research Institute Corp. Ltd. The high gap between supply and
Slide 25: Global Demand Outlook
Global Demand Outlook Industry 2018 2040 Remarks • Higher demand for electric vehicle, especially for battery packaging and heat sink. Transportation • Penetration to reduce vehicle weight and use of gasoline. Building and • Urbanization and growing construction industry. Construction • Penetration
Slide 26: Adaro Services and Adaro Logistics
Adaro Services and Adaro Logistics
Slide 27: Ensuring Operational Excellence
Ensuring Operational Excellence • Key part of our vertical integration. • Ensures operational excellence, productivity improvement and timely reliable delivery to customers. • Stable earnings profile buffers against the volatility in coal price. • Focus on providing services for companies in the Ada
Slide 28: Adaro Power & Adaro Water
adaro® Adaro Power & Adaro Water
Slide 29: Adaro Power is One of Indonesia's Largest IPPs
Adaro Power is One of Indonesia’s Largest IPPs Gross Power Generation Capacity stands at 2,260 MW Makmur Sejahtera Wisesa – CFPP Tanjung Power Indonesia – CFPP Size / Tech. 2 x 30 MW CFB technology Size / Tech. 2 x 100 MW CFB technology Shareholders 100% Adaro Power Shareholders 65% AP, 35% Korea EW
Slide 30: Adaro Water Currently Owns & Operates 1,670 lps of Water Treatment Plants
Adaro Water Currently Owns & Operates 1,670 lps of Water Treatment Plants Also Supports Mining Operations through Slurry Management Business Unit Adaro Wamco Prima Dumai Tirta Persada Location Tanjung, South Kalimantan Location Dumai, Riau Business Mining pumps services Size 450 lps Adaro shares 60%
Slide 31: Sustainability and Green Initiatives
Sustainability and Green Initiatives
Slide 32: Balance of People, Planet and Profit
Balance of People, Planet and Profit • We strive to balance our responsibilities among the generation of profit, the utilization of planet and employment of people. • Our corporate social responsibility programs focus on five main areas: education, economic development, health, environmental enhance
Slide 33: Improving Environmental Performance
Improving Environmental Performance Reduced total energy consumption by 21% y-o-y …and reduced GHG emission (scope 1) by 22% y-o-y 2,500,000 35,000 30,000 2,000,000 Ton CO2 eq. Terajoule 25,000 1,500,000 20,000 15,000 1,000,000 10,000 500,000 5,000 - - 2019 2020 2019 2020 Total Energy Consumption (i
Slide 34: Ecosystem Restoration and Carbon Capture
Ecosystem Restoration and Carbon Capture • Through Adaro Land Pillar, we have subsidiaries which own forest management permits for ecosystem restoration and forest management permits for carbon absorption. • PT Alam Sukses Lestari holds license to use timber product – ecosystem restoration in natura
Slide 35: Awards and Recognitions
Awards and Recognitions 2012 2013 2014 2015 2016 PROPER gold award PROPER green award PROPER green award PROPER green award PROPER green award Ministry of Environment & Ministry of Environment & Ministry of Environment & Ministry of Environment & Ministry of Environment & Forestry Forestry Forestry
Slide 36: Adaro Energy 2022 Guidance
Adaro Energy 2022 Guidance Coal production (Mt) Consolidated planned strip ratio (bcm/t) 58 - 60 58.03 5.06 4.69 4.6 4.15 4.1 3.84 54.04 54.53 52.7 51.8 2017A 2018A 2019A 2020A 2021A 2022F 2017A 2018A 2019A 2020A 2021A 2022F Operational EBITDA (US$ billions) Capital expenditure (US$ millions) 2.1 1.
Slide 37: Conclusions and takeaways
Conclusions and takeaways • Despite alternative energy push, coal will remain as an important part of the global energy mix, especially in Asia where coal continues to dominate the energy mix of most countries in years to come due to its availability and affordability. • Advanced technologies used i
Slide 38: Thank You
adaro& Thank You at <n oo
Slide 39: Appendix: Coal 101
adaro® Appendix: Coal 101
Slide 40: What is Coal?
What is Coal? • Coal is a sedimentary rock composed predominately of organic material, with a greater or lesser amount of mineral matter • Coal is derived from plant remains in a sedimentary basin and is altered to solid rock by heat and pressure applied during the basin’s formation • Different type
Slide 41: Use of Coal
Use of Coal adaro& Upstream Intermediate Downstream End Use Coal Mine d= ile Steel and Cement . mz 5 j 7 th ps Power Plants Electricity emmmmete. | poe Fertilizers bad jee a) recat roducts Cooking Integrated Coal Value Chain Gasoline * — Bates > Remark: IGCC = Integrated Gas Combined Cycle
Slide 42: Seaborne Thermal Coal Trade
Seaborne Thermal Coal Trade South Africa, Colombia and Russia dominate the Atlantic trade Indonesia and Australia dominate the Pacific Seaborne trade Source: IEA, 2020 42
Slide 43: How are coal priced?
How are coal priced? • Different coal types from different regions have distinct quality. • Indices are used to price different coal quality: – globalCOAL NEWC Index, the benchmark price for seaborne thermal coal in the Asia-Pacific region. – Indonesia’s Harga Batubara Acuan (HBA) comprising of: Ind
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