Pt Alamtri Minerals Indonesia Tbk · IDX:ADMR
Pt Alamtri Minerals Indonesia Tbk — Q1 2024 Earnings Presentation
41 slides from Pt Alamtri Minerals Indonesia Tbk's earnings presentation, May 2024
Slide 1: The Adaro Group Presentation May 2024
The Adaro Group Presentation May 2024
Slide 2: Disclaimer
Disclaimer These materials have been prepared by PT Adaro Energy Indonesia 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 presente
Slide 3: The Adaro Group: Three Business Pillars for a Bigger and Greener business
The Adaro Group: Three Business Pillars for a Bigger and Greener business Pursuing sustainable growth driven by the green economy Stock ticker: ADRO Stock ticker: ADMR Main operating pillar: pit-to-power integration to Growth pillar: metallurgical coal, and minerals Growth pillar: renewable energy t
Slide 4: Snapshot of the Adaro Group
Snapshot of the Adaro Group FY23 Production FY23 Sales/Core FY23 FCF 65.88 Mt (+5% Earnings $1.7 bn YoY) $6.5 billion/$1.9 paid FY22 div of Thermal and Met billion $1bn and FY23 split is 92%:8% *+royalty capex of $648m FY23 Cash of $3.3 ADMR Adaro Green bn investing in met investing in to fund growt
Slide 5: FY24 Guidance
FY24 Guidance provides cash to invest in EV value chain and renewables Sales Volume (Mt) Consolidated Planned Strip Ratio (bcm/t) 65.71 65-67 5.1 59.2 61.34 4.7 54.40 54.14 4.4 4.3 51.58 4.2 3.8 3.8 2018A 2019A 2020A 2021A 2022A 2023A 2024F 2018A 2019A 2020A 2021A 2022A 2023A 2024F Consolidated Capi
Slide 6: Summary of PT Adaro Energy Indonesia Tbk
Summary of PT Adaro Energy Indonesia Tbk Adaro Group Production and Sales Core Earnings 60 70.00 3,500 50 60.00 3,000 Production (Mt) USD (in millions) 50.00 2,500 40 Sales (Mt) 40.00 2,000 30 30.00 1,500 20 20.00 1,000 10 10.00 500 0 0.00 2018 2019 2020 2021 2022 2023 1Q24 - FY18 FY19 FY20 FY21 FY2
Slide 7: Summary of PT Adaro Minerals Indonesia Tbk
Summary of PT Adaro Minerals Indonesia Tbk Adaro Minerals Key Financial Highlights Metcoal Sales Volume (Mt) OPERATIONAL 1Q24 1Q23 Change We expect consistent volume 4.9 – 5.4 Production (Mt) 1.56 1.22 27% growth, reaching 6 MT+ in the 4.5 Sales (Mt) 1.05 0.85 24% medium term. Overburden removal (Mb
Slide 8: The World's Largest Green Industrial Park
The World’s Largest Green Industrial Park Strategically located in North Kalimantan • Located in a very strategic location in terms of export & import, and potential supply of mineral sources and smelting industries • Total area of 16,000 Ha, consists of 2 (two) large overlay area – 11,500 Ha and 4,
Slide 9: Aluminium Smelter in Kaltara Industrial Park
Aluminium Smelter in Kaltara Industrial Park Scope of project is 1.5 Mt of aluminum production Additional capacity of up to 500,000 tpa of Green Aluminum. Adaro plans for this Additional production to be powered by hydro. capacity of up to 500,000 tpa aluminum. Adaro may invest in the smelter’s powe
Slide 10: Progress of Aluminum Smelter
Progress of Aluminum Smelter • Smelter: KAI continued to advance the construction of the aluminium smelter. KAI has worked on the completion of soil improvement, piling works, and foundation works in the smelter area. • Jetty: first phase of dredging in jetty area has been completed. • Supporting fa
Slide 11: Adaro Green
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Slide 12: Indonesia's Largest Hydro Power Plant
Indonesia’s Largest Hydro Power Plant • Planned installed capacity of 1,375 MW, with the potential to generate approximately 9 Terawatt hours (TWh) per annum. • Located in North Kalimantan, this power plant will provide affordable, reliable, and sustainable energy to support the Kaltara Industrial P
Slide 13: One of Indonesia's Largest Wind IPPs
One of Indonesia’s Largest Wind IPPs • Planned installed capacity of 70 MW with battery energy storage system (BESS) of 10 MWh. • Located in South Kalimantan, this power plant will provide affordable sustainable energy to support PLN’s grid within South Kalimantan. COD is estimated in 2025. • This i
Slide 14: Integrating the Value Chain for Solar PV and BESS
Integrating the Value Chain for Solar PV and BESS • Signed MoU to develop the industrialization of solar panel supply chain in Indonesia, which include solar photovoltaic and battery energy storage systems. • Supporting the government’s plan in development of domestic solar power industry and infras
Slide 15: Recently Energized Captive Solar PV
Recently Energized Captive Solar PV ~600 kWp to supply to our mining area o We have installed 130 kWp PV Rooftop, and another 468 kWp PV Floating (one of the largest operational floating PV in Indonesia) o The project is expected to generate 156,000 kWh/year and serves a captive market to support Ad
Slide 16: Adaro Energy
Adaro Energy
Slide 17: Adaro Energy Indonesia's Performance
Adaro Energy Indonesia’s Performance Continue to deliver consistent results and strong cash flows OPERATIONAL 1Q24 1Q23 Change Production (Mt) 18.07 15.69 15% Sales (Mt) 16.48 15.72 5% OB removal (Mbcm) 66.21 68.92 17% FINANCIAL ($ millions, unless indicated) 1Q24 1Q23 Change Revenue 1,443 1,839 -22
Slide 18: Large Reserves and Diverse Portfolio across Indonesia and Australia
Large Reserves and Diverse Portfolio across Indonesia and Australia 1 2 3 4 As of 31 December 2023, AEI PT Adaro Minerals Adaro Indonesia: 88.5% Balangan Coal MIP: 75% stake has more than 4,9 billion Indonesia Tbk (AMI): Existing, Companies: S Sumatra tonnes (Bt) of resources and Central and East S
Slide 19: Regulatory Updates
Regulatory Updates Conversion of CCOW to IUPK • Continuation of AI’s CCOW. • Government Regulation (PP No 15 of 2022) stipulates the changes in the commercial terms: royalty rate, CIT rate, and additional profit sharing with the regional and central government. CCOW IUPK 1 Royalty rate 13.5% 14% - 2
Slide 20: Regulatory Updates
Regulatory Updates Change in the formula of Harga Batubara Acuan (HBA) • Indonesia has introduced the reformulation of HBA to better reflect the value of Indonesian coal. The new HBA has three coal categories: HBA (6,322 kcal GAR), HBA I (5,200 kcal GAR), and HBA II (4,200 kcal GAR). • The HBA will
Slide 21: Solid Financials Backed by Strong Operations
Solid Financials Backed by Strong Operations Financial position continues to improve Strong cash balance and free cash flow generation 4,500 2,500 60% 4,000 50% 3,500 2,000 3,000 40% 2,500 1,500 2,000 30% 1,500 1,000 20% 1,000 500 500 10% - FY18 FY19 FY20 FY21 FY22 FY23 1Q24 - 0% FY18 FY19 FY20 FY21
Slide 22: Industry Leading Efficiency
Industry Leading Efficiency One of the lowest cost operators in Indonesia Adaro’s estimated coal cash cost breakdown (1Q24) Electrification to reduce the usage of diesel gensets Fixed overhead; Coal 5% processing , 10% Mining, Freight & 35% - 40% handling; 20% Fuel, 25% - 30% Strong operational EBIT
Slide 23: Well Positioned Product and Strong Customer Base Focused on Asia
Well Positioned 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) Thermal Coal Sales by Destination (1Q24) Customer type by vol
Slide 24: Operates Mining Services and Logistics to Ensure Operational Excellence
Operates Mining Services and Logistics to Ensure Operational Excellence Key part of our vertical integration. Ensures operational excellence, productivity improvement and timely reliable delivery to customers. Stable profitability margin buffer against the volatility in coal price. Focus on providin
Slide 25: One of Indonesia's largest IPPs
One of Indonesia’s largest IPPs Adaro Power’s gross power generation capacity stands at 2,260 MW Makmur Sejahtera Wisesa – CFPP Size / Tech. 2 x 30 MW CFB technology Shareholders 100% Adaro Power COD #1 Jun 2013, #2 Feb 2014 Availability Factor 99.9% (Avg. 1Q24) Adaro Mining Current: 11.7 MW Electri
Slide 26: Owns & Operates 1,670 lps of Water Treatment Plants
Owns & Operates 1,670 lps of Water Treatment Plants Also Supports Mining Operations through Slurry Management Business Unit Dumai Tirta Persada 1 2 Drupadi Tirta Gresik 3 Grenex Tirta Mandiri Location : Dumai, Riau Location : Gresik, East Java Location : Bekasi, West Java Size : 450 lps Size : 400 l
Slide 27: PT Adaro Minerals Indonesia Tbk (IDX:ADMR)
PT Adaro Minerals Indonesia Tbk (IDX:ADMR)
Slide 28: Adaro Minerals Indonesia at a Glance
Adaro Minerals Indonesia 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 support
Slide 29: Company Overview
Company Overview CCoWs Locations Coal Resources and Reserves Total Coal Total Coal Compliance Company / Locality Reserves Resources Standard (Mt) (Mt) LC - Haju 2.0 4.0 JORC (Metallurgical) MC - Lampunut 92.2 101.4 JORC (Metallurgical ) JC - Juloi Northwest - 629.9 JORC (Metallurgical) JC - Bumbun 5
Slide 30: Supply Chain: from Coal Terminal to Vessel Loading Points
Supply Chain: from Coal Terminal to Vessel Loading Points Barge-to-barge Barge-to-Barge ▪ Barge-to-Barge transfers are done at Tuhup Port Taboneo and North Kelanis using FC A Hasan Basri Barge-to-Vessel B Tumpung Barge-to-Vessel (Taboneo) Laung C Kalahein ▪ Safe for loading for a wide range of Bridg
Slide 31: Sustainability and Green Initiatives
Sustainability and Green Initiatives
Slide 32: Balance of People, Planet and Purpose
Balance of People, Planet and Purpose Key programs in Corporate Social Responsibility Green Initiatives Education Economic Health development Solar PV Biodiesel Environmental Socio-cultural enhancement Enrichment Biomass Co-Firing NZE Statement MSCI ESG Rating History Sixth PROPER Gold Award 32
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 25,000 Ton Co2 eq 1,500,000 Terajoule 20,000 15,000 1,000,000 10,000 500,000 5,000 - - 2019 2020 2021 2019 2020 2021 Innovative project
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 natural fo
Slide 35: Awards and Recognitions
Awards and Recognitions 2014 2015 2016 2017 2018 PROPER green 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: Industry Outlook
Industry Outlook
Slide 37: Prices Remain Near Historical Highs
Prices Remain Near Historical Highs 700 600 500 400 US$ 300 200 100 0 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 May-17 Nov-17 May-18 Nov-18 May-19 Nov-19 May-20 Nov-20 May-21 Nov-21 May-22 Nov-22 May-23 Nov-23 Jan-17 Mar-17 Sep-17 Jan-18 Mar-18 Sep-18 Jan-19 Mar-19 Sep-19 Jan-20 Mar-20 Sep-20
Slide 38: Seaborne Thermal Coal Demand and Supply Outlook
Seaborne Thermal Coal Demand and Supply Outlook Global thermal coal imports demand (Mt) Global thermal coal supply (Mt) 1200 1200 1000 1000 800 Million Tonnes 800 Million Tonnes 600 600 400 400 200 200 0 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2021 2022 2023 2024 2025 2026 2027 2028 2029
Slide 39: Seaborne Metallurgical Coal Demand and Supply Outlook
Seaborne Metallurgical Coal Demand and Supply Outlook Global metallurgical coal imports demand (Mt) Global metallurgical coal supply (Mt) 350 350 300 300 250 250 Million Tonnes 200 200 150 150 100 100 50 50 0 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2022 2023 2024 2025 2026 2027 2028 2029 2030
Slide 40: Indonesian Long-Term Demand Remains Robust
Indonesian Long-Term Demand Remains Robust Supported by growing downstream activities in Indonesia Coal Fired Power Plant Capacities in 2021 - 2030 Coke capacity increase 25 50 20 40 Million Tonnes 15 GW 30 10 20 5 10 0 2021 2022 2023 2024 0 Risun Wei Shan Detian Coking KinXiang Kinrui Dexin Steel 2
Slide 41: Thank you
adaro& Thank you
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