PT Alamtri Resources Indonesia Tbk · IDX:ADRO
PT Alamtri Resources Indonesia Tbk — PT Adaro Energy — Investor Presentation (May 2021)
29 slides from PT Alamtri Resources Indonesia Tbk's investor presentation, May 2021
Slide 1: PT Adaro Energy Tbk
Ze wears adaro vs ‘PT Adaro Energy Tbk May 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 80 10% 78 5% 76 74 0% 72 78 78 -5% 70 68 73 -10% 66 69 64 -15% 2019 2020 2021F 2022F Volume (Mt) y-o-y growth Notes: TWh = te
Slide 6: Strong Price Maintained due to Tight Supply
Strong Price Maintained due to Tight Supply 140 900 120 800 100 700 80 600 60 500 40 400 20 0 300 NEX ICI 3 (US$) ICI 4 (US$) QHD 5500 NAR (RMB) Tight domestic supply in China and the seaborne market has supported coal prices amid the shoulder season. Infrastructure disruptions in Australia and
Slide 7: Short Term Outlook
Short Term Outlook • Thermal coal imports is expected to increase slightly in 2021 on the back of economic recovery, but continued volatility in the coming months will persist due to: – Coal supplies remaining very tight in China, amid on going trade war with Australia and import restrictions, as we
Slide 8: Performance of Adaro Energy
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Slide 9: Solid financials backed by strong operations
Solid financials backed by strong operations Improving financial position Strong cash balance and free cash flow generation 500 0.5 1,800 1,600 400 0.4 1,400 300 0.3 1,200 200 0.2 1,000 100 0.1 800 600 - - 400 2016 2017 2018 2019 2020 1Q21 (100) (0.1) 200 (200) (0.2) - 2016 2017 2018 2019 2020 1Q21
Slide 10: Cost control – key for strong performance
Cost control – key for strong performance Adaro’s estimated coal cash cost breakdown (1Q21) 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 11: Operational excellence and efficiency
Operational excellence and efficiency We are able to deliver solid results amid the challenging market OPERATIONAL 1Q21 1Q20 % Change Production (Mt) 12.87 14.41 -11% Sales (Mt) 12.59 14.39 -13% OB removal (Mbcm) 52.54 49.77 6% FINANCIAL (US$ millions, unless indicated) 1Q21 1Q20 % Change Net Revenu
Slide 12: Snapshot of Adaro Energy
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Slide 13: 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 14: Integrated Business Model
Integrated Business Model with control over each part of the supply chain THERMAL COAL MINING SERVICES Maritim Barito Perkasa 100% Makmur Sejahtera Wisesa (MBP) (MSW) 100% Adaro Indonesia (AI) 88.5% Saptaindra Sejati (SIS) 100% Barging & Shipping Operator of 2x30MW mine‐ Coal mining, S. Kalimantan C
Slide 15: Adaro Mining
Adaro Mining
Slide 16: 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 17: 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 (1Q21) Customer type
Slide 18: Adaro Services and Adaro Logistics
Adaro Services and Adaro Logistics
Slide 19: 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 20: Adaro Power & Adaro Water
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Slide 21: 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 22: 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 23: Sustainability and Green Initiatives
Sustainability and Green Initiatives
Slide 24: 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 25: 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 natura
Slide 26: 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 27: 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 28: 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 29: Thank You
adaro& Thank You