Pt Alamtri Resources Indonesia Tbk · IDX:ADRO
Pt Alamtri Resources Indonesia Tbk — Investor Presentation (August 2023)
50 slides from Pt Alamtri Resources Indonesia Tbk's investor presentation, August 2023
Slide 1: The Adaro Group Presentation Aug 2023
The Adaro Group Presentation Aug 2023
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: Snapshot of the Adaro Group
Snapshot of the Adaro Group Production, FY22 FY22 Sales/Core FY22 FCF 62.88 Mt (+19% Earnings $2.8 bn YoY) $8.1 billion/$3.0 with div of $1 bn Thermal and Met billion and capex of split is 94%:6% *+royalty $424 mn 1H23 Cash of $2.7 ADMR Adaro Green bn Investing in met investing in to fund growth coa
Slide 4: The Adaro Group: Three Business Pillars for a Bigger and Greener business
The Adaro Group: Three Business Pillars for a Bigger and Greener business Pursuing sustainable growth driven by the green economy Stock ticker: ADRO Stock ticker: ADMR Main operating pillar: pit-to-power integration to Growth pillar: metallurgical coal, and minerals Growth pillar: renewable energy t
Slide 5: Through Adaro's pillars of growth, we are well positioned
Through Adaro’s 3 pillars of growth, we are well positioned to capture these opportunities, now and in the future Adaro has the necessary skillset… …to capture these opportunities Strong balance sheet and financial capabilities Operating metallurgical coal mine in Indonesia & Australia Proven track
Slide 6: Summary of PT Adaro Energy Indonesia Tbk
Summary of PT Adaro Energy Indonesia Tbk Adaro Energy Indonesia Production and Sales Core Earnings 70 70 3,500 60 60 3,000 Production (Mt) 50 50 Strip Ratio (x) USD (in millions) 2,500 40 40 2,000 30 30 1,500 20 20 1,000 10 10 500 0 0 - 2018 2019 2020 2021 2022 1H23 FY18 FY19 FY20 FY21 FY22 1H23 Tut
Slide 7: Adaro Energy Indonesia's Performance
Adaro Energy Indonesia’s Performance Continue to deliver consistent results and strong cash flows OPERATIONAL 1H23 1H22 Change Production (Mt) 33.23 28.01 19% Sales (Mt) 32.62 27.49 19% OB removal (Mbcm) 129.83 102.05 27% FINANCIAL ($ millions, unless indicated) 1H23 1H22 Change Revenue 3,479 3,541
Slide 8: Summary of PT Adaro Minerals Indonesia Tbk
Summary of PT Adaro Minerals Indonesia Tbk Adaro Minerals Key Financial Highlights Adaro Minerals Metcoal Production (Mt) OPERATIONAL 1H23 1H22 Change 3.8 - 4.3 Production (Mt) We expect consistent volume 2.54 1.53 66% 3.4 growth, reaching 6 MT+ in the Sales (Mt) 1.82 1.28 42% medium term. Overburde
Slide 9: 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 10: Aluminum Smelter in Kaltara Industrial Park
Aluminum Smelter in Kaltara Industrial Park Scope of project is 1.5mt of Aluminum production Additional capacity of up to 500,000 tpa of Green Aluminum. Adaro plans for this Potential replication of Phase I: to be powered by hydro. Additional production capacity of up to 500,000 tpa aluminum. Adaro
Slide 11: The Green Economy
The Green Economy Driving demand for Green Minerals ADMR is actively pursuing offtake agreements with producers of the below technologies. Electric vehicle Wind technology Solar technology 13 28 3 26 13 14 13 AI Ni Li Fe AI Si AI Aluminium Nickel Lithium Iron Aluminium Silicon Aluminium More Alumini
Slide 12: Global Aluminum Demand Outlook
Global Aluminum Demand Outlook Industry 2018 2040 Remarks • Higher demand for electric vehicle, especially for battery packaging and heat sink. Transportation 25MT 43MT • Penetration to reduce vehicle weight and use of gasoline. Building and • Urbanization and growing construction industry. 22MT 29M
Slide 13: Adaro Green
K < < C2 See OOo << CORSE COS. COC LPO POO Cy LIPO ee SM Bose Z SO Adaro Green 4 ly ty Po
Slide 14: Development of Renewable Energy for Green Business Transformation
Development of Renewable Energy for Green Business Transformation Wind Turbine + Battery Solar PV + Battery Energy • Technology Hydro Power Plant Mini-Hydro Power Plant Energy Storage System Storage System (BESS) (BESS) • Pipeline potential 11 GW targeted by PLN 1 GW targeted by PLN 4.8 GW targeted
Slide 15: 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 16: 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 17: 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 18: 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 19: PLN targets 25GW of green energy needs by 2030
PLN targets 25GW of green energy needs by 2030 Excluding any captive projects, an area that Adaro is focusing on 102 GW of installed capacity by 2030 20
Slide 20: Adaro Energy
Adaro Energy
Slide 21: FY23 Guidance
FY23 Guidance provides cash to invest in EV value chain and renewables Sales volume (Mt) Consolidated planned strip ratio (bcm/t) 61.34 62-64 59.2 5.1 54.40 54.14 4.7 51.58 4.2 4.2 3.8 3.8 2018A 2019A 2020A 2021A 2022A 2023F 2018A 2019A 2020A 2021A 2022A 2023F Kestrel Saleable MetCoal Production (Mt
Slide 22: Why Adaro
Why Adaro • Integrated energy company with strong footing in the energy industry. Solid Foundation • Integrated business model enables us to control cost and manage risks better, Positioned for Sustainable Growth ensuring business sustainability. • Well positioned to capture the opportunity through
Slide 23: 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 24: 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 25: 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 2022, AEI PT Adaro Minerals Adaro Indonesia: 88.5% Balangan Coal MIP: 75% stake has more than 8 billion tonnes Indonesia Tbk (AMI): Existing, Companies: S Sumatra (Bt) of resources and 1.3 Bt of Central and
Slide 26: 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 5,000 2,500 60% 4,000 2,000 40% 3,000 1,500 20% 2,000 1,000 0% 1,000 500 -20% - FY18 FY19 FY20 FY21 FY22 1H23 - -40% FY18 FY19 FY20 FY21 FY22 1H23 Cash (million US$)
Slide 27: Industry Leading Efficiency
Industry Leading Efficiency One of the lowest cost operators in Indonesia Adaro’s estimated coal cash cost breakdown (1Q23) 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 EBITD
Slide 28: 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 (1H23) Customer type by vol
Slide 29: 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 earnings profile buffers against the volatility in coal price. Focus on providing s
Slide 30: 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 80% (Avg. 1H23) Adaro Mining Current: 11.7 MW Electrifi
Slide 31: 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 32: PT Adaro Minerals Indonesia Tbk (IDX:ADMR)
PT Adaro Minerals Indonesia Tbk (IDX:ADMR)
Slide 33: 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 34: Company Overview - ADMR
Company Overview - ADMR Established in 2007, Adaro Minerals 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 Eas
Slide 35: Large Coal Resource and Reserves
Large Coal Resource and Reserves Coal Resource Total Coal Resources Measured Indicated Inferred Compliance One of the largest Company / Locality (Mt) (Mt) (Mt) (Mt) Standard undeveloped met LC - Haju 4.4 3.8 0.4 0.1 JORC coal reserves and (Green Coal) MC - Lampunut resources globally 105.4 98.4 6.9
Slide 36: Established Infrastructure to Ensure Operational Excellence
Established Infrastructure to Ensure Operational Excellence Lampunut Coal Handling and Processing Plant Crushing Plant : 600 tph One of the largest CHPPs in Indonesia in terms of capacity Reduces ash from 12% ad to 4.5% ad Washing Plant : 525 tph (max: 550 tph) WASHING – 3 Process Circuit DMC Hydroc
Slide 37: Supply Chain: from Coal Terminal to Vessel Loading Points
Supply Chain: from Coal Terminal to Vessel Loading Points Barge-to-barge Barge-to-vessel Bulk Terminal 39
Slide 38: Competitive Advantages
Competitive Advantages • Low ash • Low phosphorus Product • High vitrinite Quality Committed to develop the community and minimize environmental Lampunut is the first and CSR and only HCC in Indonesia impact through various green initiatives Green Position (Source: IHS Markit) Initiatives Competitiv
Slide 39: Sustainability and Green Initiatives
Sustainability and Green Initiatives
Slide 40: Balance of People, Planet and Purpose
Balance of People, Planet and Purpose Key programs in Corporate Social Responsibility Green Initiatives to Reduce Emission Education Economic Health development Solar PV Biomass Co- Biodiesel Firing Environmental Socio-cultural enhancement Enrichment MSCI ESG Rating History Fifth PROPER Gold Award A
Slide 41: 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 42: 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 43: Reclamation and Rehabilitation
Reclamation and Rehabilitation Start 6 months + 5 Years 45
Slide 44: Awards and Recognitions
Awards and Recognitions 2013 2014 2015 2016 2017 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 45: Industry Outlook
Industry Outlook
Slide 46: Prices Remain Near Historical Highs
Prices Remain Near Historical Highs 500 450 400 350 300 250 200 150 100 50 0 NEX (US$) ICI 3 (US$) ICI 4 (US$) HBA (US$) ▪ Prices continue to fluctuate. ▪ Demand from China has supported Indonesian thermal coal imports. ▪ Indonesian coal demand is still expected to be high due to its competitiveness
Slide 47: 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 48: 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 49: 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 50: Thank you
adaro& Thank you
PT Alamtri Resources Indonesia — Investor Presentation (August 2023) on 6ix