Pt Alamtri Minerals Indonesia Tbk · IDX:ADMR
Pt Alamtri Minerals Indonesia Tbk — PT Adaro Energy Indonesia — Q1 2023 Earnings Presentation
48 slides from Pt Alamtri Minerals Indonesia Tbk's earnings presentation, May 2023
Slide 1: PT Adaro Energy Indonesia Tbk
PT Adaro Energy Indonesia Tbk May 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 Adaro Energy Indonesia
Snapshot of Adaro Energy Indonesia Lost-time injury frequency rate Employees Countries (LTIFR) ~12,000 Served 0.12 in FY22 16 FY22 Operational FY22 Production FY22 Revenue EBITDA 62.88 million $8.1 billion $5.0 billion tonnes (+19% (+103% YoY) (+139% YoY) YoY) 3
Slide 4: Adaro Energy Indonesia's Performance
Adaro Energy Indonesia’s Performance Continue to deliver consistent results and strong cash flows OPERATIONAL 1Q23 1Q22 Change Production (Mt) 15.69 12.15 29% Sales (Mt) 15.72 12.20 29% OB removal (Mbcm) 56.45 48.22 17% FINANCIAL ($ millions, unless indicated) 1Q23 1Q22 Change Net Revenue 1,839 1,22
Slide 5: Adaro Minerals MetCoal Business
Adaro Minerals MetCoal Business supports the Steel Industry a key component in Wind Turbine and the Solar Industry Adaro Minerals key financial highlights Adaro Minerals metcoal production (Mt) OPERATIONAL 1Q23 1Q22 Change Production (Mt) We expect consistent production 3.8 - 4.3 1.22 0.62 97% growt
Slide 6: FY23 guidance
FY23 guidance provides cash to invest in EV value chain and renewables Coal sales (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 7: Three Business Pillars for a Bigger and Greener Adaro
Three Business Pillars for a Bigger and Greener Adaro Pursuing sustainable growth driven by the green economy Main operating pillar: pit-to-power integration to Growth pillar: metallurgical coal, and minerals Growth pillar: renewable energy to support provide reliable and affordable energy and miner
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: 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 Potential replication of Phase I: this to be powered by hydro. Additional production capacity of up to 500,000 tpa aluminum. Adaro
Slide 10: The Green Economy
The Green Economy Driving demand for Green Minerals 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 30% More Aluminium used in electric vehicles than internal combustion engines 90 Metallurgical coal
Slide 11: Adaro is well positioned
Adaro is 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 record in building and Building a 5
Slide 12: Global Demand Outlook
Global 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 29MT Constru
Slide 13: Adaro Green
Adaro Green
Slide 14: 25GW of green energy needs by 2030
25GW of green energy needs by 2030 In Indonesia, before accounting for increased demand for processing green minerals 102 GW of installed capacity by 2030 14
Slide 15: Development of Renewable Energy for Green Business Transformation
Development of Renewable Energy for Green Business Transformation Wind Turbine + Battery Solar PV + Battery Energy • Project Hydro Power Plant Mini-Hydro Power Plant Energy Storage System Storage System (BESS) (BESS) Kalimantan Industrial Park Lampunut, Central Tanah Laut, South • Location Kelanis,
Slide 16: Indonesia's largest hydro power plant project
Indonesia’s largest hydro power plant project Kaltara • 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 Kalt
Slide 17: 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 (so far the biggest installed floating PV in Indonesia) o The project is expected to generate 156,000 kWh/year and serves a captive market to support Adar
Slide 18: Adaro Energy
Adaro Energy
Slide 19: 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, ensuring Positioned for Sustainable Growth business sustainability. • Well positioned to capture the opportunity through
Slide 20: 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 provision of non-tax revenue for the central and local government. CCOW IUPK 1 Royalty rate 13.5% 14% - 28
Slide 21: 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 22: 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: Central and East S Sumatra (Bt) of resources and 1.3
Slide 23: Integrated Business Model
Integrated Business Model with control over each part of the supply chain from pit-to-power MINING SERVICES LOGISTICS POWER 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 Ope
Slide 24: 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% 2,000 3,500 40% 3,000 30% 1,500 2,500 20% 2,000 10% 1,000 1,500 0% -10% 1,000 500 -20% 500 - -30% - FY18 FY19 FY20 FY21 FY22 1Q23 FY18 FY19
Slide 25: 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 26: 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) Customer geographical breakdown (1Q23) Customer type by volum
Slide 27: 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 28: 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 60.01% (Avg. 1Q23) Adaro Mining Current: 11.7 MW Electr
Slide 29: 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 30: PT Adaro Minerals Indonesia Tbk (IDX:ADMR)
PT Adaro Minerals Indonesia Tbk (IDX:ADMR)
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 35
Slide 36: 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 37: Sustainability and Green Initiatives
Sustainability and Green Initiatives
Slide 38: 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 39: 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 40: 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 41: Reclamation and Rehabilitation
Reclamation and Rehabilitation Start 6 months + 5 Years 41
Slide 42: 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 43: Industry Outlook
Industry Outlook
Slide 44: Prices Remain Near Historical Highs
Prices Remain Near Historical Highs 500.00 450.00 400.00 350.00 300.00 US$ 250.00 200.00 150.00 100.00 50.00 0.00 NEX HBA ICI 3 ICI 4 ▪ Prices have remained volatile at high levels. ▪ Demand from India and Southeast Asia has supported Indonesian thermal coal imports – due to inclement weather and al
Slide 45: 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 46: 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 47: 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 48: Thank you
adaro& Thank you
PT Adaro Energy Indonesia — Q1 2023 Earnings Presentation on 6ix