Slide 1: Bayan Resources 4Q 2023 Investor Update
www.bayan.com.sg 0
Slide 2: Overview
Overview ➢ Operationally, 2023 has seen significant improvement over the same period last year with an approximate 18-28% increase in coal production and sales volume. ➢ Overall, 2023 financial performance was lower than Budgeted across all financial matrix. This is principally due to lower market p
Slide 3: Bayan's Financial and Operational Performance
Bayan’s Financial and Operational Performance 2022 2023 4Q22 4Q23 Financial Performance (In Million USD) Revenue 4,703.6 3,581.4 1,355.5 824.3 Gross Profit 3,160.1 1,664.2 853.7 340.1 EBITDA 3,026.4 1,718.9 782.6 445.3 Net Profit After Tax 2,301.6 1,279.6 594.0 328.3 Financial Ratios Gross Profit Ma
Slide 4: One of the Largest Coal Producers
One of the Largest Coal Producers YTD 3Q23 Production ➢ Bayan is ranked 3rd by production 60 56.2 50.7 and sales volumes in Indonesia. Million Tonnes 40 35.8 31.9 ➢ Bayan’s sales volumes grew 18% 22.3 in 2023. 20 13.5 ➢ The first phase of Muara Pahu was 0 opened in 2023 which will allow us Bumi Adar
Slide 5: Low Cost Incremental Growth
Low Cost Incremental Growth Capex Intensity by Country (1) Tabang Capacity Growth ➢ Our new coal haul road and the 250 80+ first and second barge loading …Unlocking tangible capacity 218 upside at ~US$10/ton 207 facility were completed at the end 200 40+ discretionary growth Capex 159 161 175 of 202
Slide 6: One of the Lowest Cost Producers in Indonesia
One of the Lowest Cost Producers in Indonesia Global Cost Competitive Positioning ➢ Tabang is independently rated as one of the worlds lowest cost energy-adjusted producers of seaborne thermal coal. ➢ Tabang has large reserves and a very low Life of Mine stripping ratio of 4.3. ➢ A new JORC reserves
Slide 7: And One of the Highest Margin Producers in Indonesia
And One of the Highest Margin Producers in Indonesia YTD 3Q23 EBITDA Margin (%) ➢ Over the last few years, Bayan 60 has transformed itself into one of 46.2 the highest margin producers in 45 39.0 Indonesia. 29.6 30 23.0 ➢ This is due to the ramp up of its 15.8 15 10.4 world class Tabang coal complex
Slide 8: Deleveraged the Group
Deleveraged the Group Quarterly Net Cash US$ Million ➢ Targeted net leverage of less than 2,000 1,827 2.5x EBITDA throughout the commodity cycle. 1,500 1,331 1,325 1,219 ➢ Bayan has been re-assigned 1,000 620 independent credit ratings of Ba2 500 by Moody’s in January 2024 and 309 335 241 BB- by Fit
Slide 9: Dividends
DIVIDENDS ➢ Bayan has a proven history of utilizing cash to reduce leverage and then return excess cash to shareholders. ➢ Bayan has paid a total of US$ 3,100.0 million in dividends over the last three years (the highest of any Indonesian listed coal company). ➢ Its payout ratio over the same period
Slide 10: 4Q 2023
4Q 2023 Overburden Removal Coal Production Weighted Average Strip Ratio Average Cash Costs Coal Sales Average Selling Price Committed & Contracted Sales EBITDA Debt and Cash Position Capital Expenditure 9 www.bayan.com.sg
Slide 11: Overburden Removal (OB)
Overburden Removal (OB) (million BCM) 70 61.2 60.7 59.2 ➢ 4Q23 OB of 59.2 million BCM was 60 in line with the Budget but slightly 50 41.2 lower than 3Q23 primarily due to: 40 ▪ Most of Tabang in 3Q23 30 focused on pre-stripping as 20 an impact of the 2023 RKAB 10 targets being reached 0 combined wit
Slide 12: Coal Production
Coal Production (million MT) 16 14.0 ➢ 4Q23 coal production of 14.0 14 11.1 11.7 11.6 million MT was higher than the 12 Budget and 3Q23 primarily due to 10 site receiving revised RKAB 8 approvals at the end of October 6 2023 which had forced site to pre- 4 strip in the 3Q23 which exposed a 2 lot of
Slide 13: Weighted Average Stripping Ratio (SR)
Weighted Average Stripping Ratio (SR) 6 5.2 5.2 5 4.2 3.7 ➢ 4Q23 weighted average stripping 4 ratio was lower than the Budget 3 and 3Q23 due to: 2 ▪ Tabang receiving the revised 1 RKAB’s in October 2023 which had necessitated pre- 0 4Q22 3Q23 4Q23B 4Q23 stripping in 3Q23 and Note : B stands for Budg
Slide 14: Average Cash Costs (Budget vs Actual)
Average Cash Costs (Budget vs Actual) 60 ➢ 4Q23 Cash Costs were significantly 48.0 50 lower than Budget due to: 40 ▪ Lower DMO expense due to (US$ / MT) 30 30.2 reversal of 2022 and 2023 accruals in November 2023 due to 20 new regulation. 10 ▪ Lower royalty than Budgeted due 0 to lower ASP combined
Slide 15: Average Cash Costs (4Q23 vs 3Q23)
Average Cash Costs (4Q23 vs 3Q23) 56 49.4 ➢ 4Q23 Cash Costs of US$ 30.2/MT were 48 42.6 lower than 3Q23 of US$ 42.6/MT due to: 40 ▪ Material reversal of DMO accrual for (US$ / MT) 32 30.2 2022 and 2023. 24 ▪ Higher sales volume that decreased 16 certain unit costs including OB costs. 8 ▪ Lower SR ac
Slide 16: Coal Sales (by volume)
Coal Sales (by volume) 14 (million MT) 12.6 11.9 12.5 ➢ 4Q23 coal sales volumes of 12.6 12 10.8 million MT in line with the Budget 10 but higher than 3Q23 due to lower 8 water levels in 3Q23. 6 4 ➢ Group inventory levels increased to 2 6.3 million MT as at the end of 0 December 2023. 4Q22 3Q23 4Q23B
Slide 17: Coal Sales (by volume) (continued)
Coal Sales (by volume) (continued) Geographic Distribution (2023) – by Volume ➢ The Company is focusing on Per Region Per Country continuing to build its long term contracts within Indonesia and Others Malaysia 7% with other South East Asian IPP’s. East Asia 6% Domestic 21% Bangladesh 25% 6% Philipp
Slide 18: Average Selling Price (ASP)
Average Selling Price (ASP) 120 114.1 100 95.8 ➢ 4Q23 ASP of US$ 64.9/MT was significantly lower than the Budget and slightly lower than 3Q23. (US$ / MT) 80 66.7 64.9 60 ➢ Full years ASP of US$ 75.8/MT. 40 20 0 4Q22 3Q23 4Q23B 4Q23 * ASP includes coal and non-coal sales Note : B stands for Budget Fi
Slide 19: EBITDA
EBITDA 1,000 800 782.6 ➢ 4Q23 EBITDA was lower than the 612.1 Budget due to a combination of 600 445.3 significantly lower ASP partially 400 offset by significantly lower cash 265.6 200 costs. 0 4Q22 3Q23 4Q23B 4Q23 ➢ 4Q23 EBITDA was higher than Note : B stands for Budget Figure 3Q23 due to a signif
Slide 20: Total Debt and Cash Position
Total Debt and Cash Position 2000 ➢ Drawdown of US$ 145 million of 1,841.6 Working capital facilities in April 1800 2023 and fully repaid in July 2023. 1600 (in million US$) 1400 ➢ New drawdown of US$ 400 million 1,239.8 of Working capital facilities in 1200 December 2023. 1000 800 735.0 ➢ Working c
Slide 21: Capital Expenditure
Capital Expenditure ➢ 4Q23 Capex was US$ 78.3 million, 120 which was higher than the Budget 104.9 primarily due to the realization of 100 delayed projects from previous 78.3 quarters such as hauling road to 80 Mahakam, jetty Muara Pahu, land In Million USD 57.6 preparation airstrip and mega settling
Slide 22: Appendix
Appendix PT Perkasa Inakakerta PIK PT Teguh Sinarabadi TSA PT Firman Ketaun Perkasa FKP PT Wahana Baratama Mining WBM PT Brian Anjat Sentosa BAS PT Bara Tabang BT Tabang PT Fajar Sakti Prima FSP PT Dermaga Energi DE North PT Tanur Jaya TJ Pakar PT Tiwa Abadi TA PT Silau Kencana SK PT Orkida Makmur O
Slide 23: Appendix
Appendix Kangaroo Resources Pty Ltd 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 PT Gunungbayan Pratamacoal GBP PT Kariangau Power KP 22 www.bayan.com.sg
Slide 24: Disclaimer
Disclaimer 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 base
Slide 25: Thank You
Thank You 24 www.bayan.com.sg