Slide 1: Third Quarter Update Presentation
& PT. BAYAN RESOURCES Tbk. : in : ue Third Quarter ve Update Presentation
Slide 2: Overview
Overview ➢ Operationally YTD 2023 has seen significant improvement over the same period last year with an approximate 30% increase in coal production and 25% increase in sales volume. ➢ 3Q 2023 Coal production is lower than the Budget and stripping ratio is higher than the Budget due to in 3Q 2023 m
Slide 3: Bayan's Financial and Operational Performance
Bayan’s Financial and Operational Performance YTD YTD 2022 3Q22 3Q23 3Q22 3Q23 Financial Performance (In Million USD) Revenue 4,703.6 3,348.2 2,757.1 1,343.1 717.9 Gross Profit 3,160.1 2,306.3 1,324.1 924.3 260.6 EBITDA 3,026.4 2,243.8 1,273.6 917.4 265.6 Net Profit After Tax 2,301.6 1,707.6 951.3 6
Slide 4: One of the Largest Coal Producers
One of the Largest Coal Producers 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 are 22.3 anticipated to grow in the region of 20 13.5 20% in 2023 utilizing existing infrastructure. 0 Bumi Adaro Sou
Slide 5: Low Cost Incremental Growth
Low Cost Incremental Growth Capex Intensity by Country (1) ➢ Our new coal haul road and the Tabang Capacity Growth first barge loading facility 250 60+ …Unlocking tangible capacity 207 218 underwent initial commissioning 200 30+ upside at ~US$13/ton discretionary growth Capex 175 in the 3Q 2023. 159
Slide 6: One of the Lowest Cost Producers in Indonesia
One of the Lowest Cost Producers in Indonesia Global Cost Competitive Positioning ➢ Tabang is independently rated as one of the worlds lowest cost energy-adjusted producers of seaborne thermal coal. ➢ Tabang has large reserves and a very low Life of Mine stripping ratio of 4.3. ➢ A new JORC reserves
Slide 7: And One of the Highest Margin Producers in Indonesia
And One of the Highest Margin Producers in Indonesia 3Q23 EBITDA Margin (%) ➢ Over the last few years, Bayan 60 has transformed itself into one of 46.2 the highest margin producers in 45 39.0 Indonesia. 30 29.6 26.6 23.0 ➢ This is due to the ramp up of its 15 15.8 10.4 world class Tabang coal comple
Slide 8: Deleveraged the Group
Deleveraged the Group Quarterly Net Cash US$ Million ➢ Targeted net leverage of less than 2,000 1,827 2.5x EBITDA throughout the commodity cycle. 1,500 1,331 1,325 1,219 981 ➢ Bayan has been re-assigned 1,000 independent credit ratings of Ba2 500 381 620 by Moody’s in December 2022 and 199 241 309 B
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: 3Q 2023
3Q 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) ➢ 3Q23 OB of 61.2 million BCM was (million BCM) 70 higher than the Budget and 2Q23 61.2 60 56.6 primarily due to: 52.4 50 44.3 ▪ Most of Tabang focus on pre- 40 stripping as an impact of the 30 2023 RKAB targets being 20 reached, mobilization of additional overburden fleets (
Slide 12: Coal Production
Coal Production (million MT) 14 13.0 11.6 ➢ 3Q23 coal production of 11.7 11.7 12 11.0 million MT was lower than the 10 Budget primarily due to most of 8 Tabang limiting coal production as 6 an impact of reaching the 2023 4 RKAB targets, whilst waiting for the 2 revised RKAB limits to be issued. 0 3Q
Slide 13: Weighted Average Stripping Ratio (SR)
Weighted Average Stripping Ratio (SR) 6 5.2 5 4.0 4.5 4.4 ➢ 3Q23 weighted average stripping 4 ratio was higher than the Budget 3 and 2Q23 due to: 2 ▪ Most of Tabang achieved the 1 2023 RKAB coal production targets, therefore having to 0 3Q22 2Q23 3Q23B 3Q23 limit coal production which Note : B stand
Slide 14: Average Cash Costs (Budget vs Actual)
Average Cash Costs (Budget vs Actual) 49 43.9 42.6 ➢ 3Q23 Cash Costs were lower than 42 Budget due to: 35 ▪ Lower royalty due to lower ASP. (US$ / MT) 28 ▪ Lower DMO expense due to 21 reduction in average tariff due to 14 continued drop in market prices. 7 ▪ Lower than Budgeted actual travel 0 expen
Slide 15: Average Cash Costs (3Q23 vs 2Q23)
Average Cash Costs (3Q23 vs 2Q23) 56 ➢ 3Q23 Cash Costs of US$ 42.6/MT were 46.9 48 42.6 lower than 2Q23 of US$ 46.9/MT due to: 39.9 40 ▪ Lower salaries and wages due to the (US$ / MT) 32 final annual bonus being paid in the 24 2Q23. 16 ▪ Lower royalty due to lower ASP than 8 2Q23. 0 ▪ Lower cost of
Slide 16: Coal Sales (by volume)
Coal Sales (by volume) 14 (million MT) 12.2 12.3 12 10.7 10.8 ➢ 3Q23 coal sales volumes of 10.8 10 million MT were lower than the 8 6 Budget and 2Q23 due to lower 4 water levels in 3Q23. 2 0 3Q22 2Q23 3Q23B 3Q23 Note : B stands for Budget Figure ➢ Group inventory levels increased to 4.5 million MT a
Slide 17: Coal Sales (by volume) (continued)
Coal Sales (by volume) (continued) Geographic Distribution (YTD 3Q23) – by Volume ➢ The Company is focusing on Per Region Per Country continuing to build its long term contracts within Indonesia and Malaysia Others 8% with other South East Asian IPP’s. 5% Domestic East Asia Bangladesh 22% 6% 22% Phi
Slide 18: Average Selling Price (ASP)
Average Selling Price (ASP) 140 125.2 120 ➢ 3Q23 ASP of US$ 66.7/MT was lower than the Budget and 2Q23 due to 100 market prices having continued to (US$ / MT) 93.7 81.0 drop in the 3Q23. 80 66.7 60 40 ➢ Coal prices appear to have stabilized and are currently around US$ 130/MT 20 for Newcastle and US
Slide 19: EBITDA
EBITDA 1,000 917.4 800 ➢ 3Q23 EBITDA was significantly 627.5 lower than the Budget due to a 600 combination of significantly lower 424.8 400 ASP and lower sales volumes, 265.6 200 partially offset by lower cash costs. 0 3Q22 2Q23 3Q23B 3Q23 ➢ 3Q23 EBITDA was lower than 2Q23 Note : B stands for Budge
Slide 20: Total Debt and Cash Position
Total Debt and Cash Position 2000 1,841.6 ➢ Bayan remains in a net cash 1800 position. 1600 (in million US$) ➢ Drewdown US$ 145 million of its 1400 1,339.3 1,239.8 Working capital facilities in April 1200 2023 and fully repaid in July 2023. 1000 ➢ Working capital facilities of 800 approximately US$
Slide 21: Capital Expenditure
Capital Expenditure ➢ 3Q23 Capex was US$ 51.4 million, 120 which was higher than the Budget 104.9 primarily due to the realization of 100 delayed projects from previous quarters such as hauling road to 80 Mahakam, jetty Muara Pahu, Land In Million USD Preparation air Strip and Mega settling 60 57.6
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 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