Pt Alamtri Resources Indonesia Tbk · IDX:ADRO
Pt Alamtri Resources Indonesia Tbk — PT Adaro Energy — Investor Presentation (February 2021)
26 slides from Pt Alamtri Resources Indonesia Tbk's investor presentation, February 2021
Slide 1: PT Adaro Energy Tbk
PT Adaro Energy Tbk February 2021
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: Key Questions
Key Questions • What are the recent trends in coal market and coal price? • What is the progress of Adaro’s projects? • How will your strategy to diversify the business model benefit Adaro? • What is Adaro’s approach to ESG? 3
Slide 4: Solid long-term outlook supported by emerging Asia
Solid long-term outlook supported by emerging Asia Seaborne thermal coal demand by region (Mt) Global metallurgical coal imports demand (Mt) Note: JKT (Japan, Korea, Taiwan); RoW (rest of the world) Source: Wood Mackenzie, Global metallurgical coal long-term outlook H2 Source: Wood Mackenzie, Global
Slide 5: As demand for electricity and steel grows to support economic growth
As demand for electricity and steel grows to support economic growth SEA electricity demand more than double to 2040 ASEAN (5) steel demand grows moderately in the short-term 79 5% 79 4% 78 3% 78 2% 77 1% 77 79 78 0% 76 76 -1% 76 -2% 75 75 -3% 2019 2020F 2021F Volume (Mt) y-o-y growth Notes: TWh = t
Slide 6: Stronger Demand and Tight Supply Drive Price Rally
Stronger Demand and Tight Supply Drive Price Rally 140 750 700 120 650 100 600 80 550 60 500 450 40 400 20 350 0 300 Global Coal Newcastle (US$) ICI 3 (US$) ICI 4 (US$) QHD 5500 NAR (RMB) The slowing economy and decline in power demand impacted coal industry in most part of 2020. Stricter import
Slide 7: Performance of Adaro Energy
adaro® Performance of Adaro Energy
Slide 8: Solid financials backed by strong operations
Solid financials backed by strong operations Improved financial position Strong cash balance and free cash flow generation 1,000 1.4 1,800 1.2 1,600 800 1.0 1,400 600 1,200 0.8 1,000 400 0.6 800 0.4 600 200 0.2 400 - - 200 2015 2016 2017 2018 2019 9M20 (200) (0.2) - 2015 2016 2017 2018 2019 9M20 Net
Slide 9: Cost control – key for strong performance
Cost control – key for strong performance Adaro’s estimated coal cash cost breakdown (9M20) Electrification to reduce the usage of diesel gensets Fixed overhead, 5% Coal processing, 10% Mining, 35% - 40% Freight & handling, 20% Fuel, 25% - 30% Strong operational EBITDA generation and healthy operati
Slide 10: Operational excellence and efficiency
Operational excellence and efficiency We are able to deliver solid results amid the challenging market OPERATIONAL 2020 2019 % Change Production (Mt) 54.53 58.03 -6% Sales (Mt) 54.14 59.18 -9% OB removal (Mbcm) 209.48 272.09 -23% FINANCIAL (US$ millions, unless indicated) 9M20 9M19 % Change Net Reve
Slide 11: Snapshot of Adaro Energy
adaro® Snapshot of Adaro Energy
Slide 12: 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 13: Adaro Mining
Adaro Mining
Slide 14: 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 Adaro MetCoal 3 4 BEE: 61.04% stake 5 MIP: 75% stake 88.5% Companies: Companies S Sumatra S Sumatra Existing, S Kalimantan Central and East sub-bituminous sub-bituminous S Kalimantan sub-bitum
Slide 15: Unique coal product and strong customer base with focus on emerging Asia
Unique coal product and strong customer base with focus on emerging 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 (2020) Customer type
Slide 16: Adaro Services and Adaro Logistics
Adaro Services and Adaro Logistics
Slide 17: Ensuring operational excellence
Ensuring operational excellence Strengthens Adaro Group’s Earnings Profile as Contribution Increases • Key part of our vertical integration. • Ensures operational excellence, productivity improvement and timely reliable delivery to customers. • Stable earnings profile buffers against the volatility
Slide 18: Adaro Power & Adaro Water
Adaro Power & Adaro Water
Slide 19: Adaro Power is one of the largest IPP in Indonesia
Adaro Power is one of the largest IPP in Indonesia with 2,260 MW of gross power generation capacity 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
Slide 20: Adaro Water currently owns & operates 1,670 lps of WTPs
Adaro Water currently owns & operates 1,670 lps of WTPs, as well as supporting mining operations through its 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% Adar
Slide 21: Sustainability and Green Initiatives
Sustainability and Green Initiatives
Slide 22: 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 23: Awards and Recognitions
Awards and Recognitions 2011 2012 2013 2014 2015 PROPER green award PROPER gold 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 24: Adaro Energy 2021 Guidance
Adaro Energy 2021 Guidance Coal production (Mt) Consolidated planned strip ratio (bcm/t) 58.03 5.06 4.8 4.69 4.5 4.6 54.53 3.84 54.04 52.7 52 - 54 51.8 2016A 2017A 2018A 2019A 2020A 2021F 2016A 2017A 2018A 2019A 2020A 2021F Operational EBITDA (US$ billions) Capital expenditure (US$ millions) 1.4 1.3
Slide 25: 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 26: Thank You
adaro& Thank You at <n oo
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