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PT Delta Dunia Makmur Tbk Company Update 9M 2024
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2 Disclaimer These presentation materials have been prepared by PT Delta Dunia Makmur Tbk (the “Company”), solely for the use at this presentation and have not been independently verified. Information relating to PT Bukit Makmur Mandiri Utama (“BUMA”) and its relevant subsidiaries has been included with its content, and has not been independently verified. This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it to (all such persons being referred to as relevant persons) and only directed at relevant persons and any investment or investment activity to which the presentation relates to relevant persons or will be engaged in only with relevant persons. Solicitations resulting from this presentation will only be responded to if the person concerned is a relevant person. Other persons should not rely or act upon this presentation or any of its contents. You agree to keep the contents of this presentation strictly confidential. This presentation material is highly confidential, is being presented solely for your information and may not be copied, reproduced or redistributed to any other person in any manner. In particular, this presentation may not be taken or transmitted into Canada or Japan or distributed, directly or indirectly, in the Canada or Japan. Further, this presentation should not be distributed to U.S. persons except to (1) qualified institutional buyers in reliance on the exemption from the registration requirements of the Securities Act provided by Rule 144A and (2) to non-U.S. persons outside the United States in an “offshore transaction” as defined in Regulation S of the U.S. Securities Act of 1933, as amended. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Company nor any of its affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any such information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice. In addition, certain information and statements made in this presentation contain “forward-looking statements.” Such forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “considering,” “depends,” “estimate,” “expect,” “intend,” “plan,” “planning,” “planned,” “project,” “trend,” and similar expressions. All forward-looking statements are the Company's current expectation of future events and are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking statements. Caution should be taken with respect to such statements, and you should not place undue reliance on any such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, the Company makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. This presentation and material contains herein is strictly confidential and remains as intellectual property of the Company. Any unauthorized use, disclosure, reproduction, or dissemination of this presentation, in whole or in part, is prohibited. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares or other securities of the Company or BUMA and neither any part of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision to purchase securities in any offering of securities of the Company or BUMA should be made solely on the basis of the information contained in the offering document which may be published or distributed in due course in connection with any offering of securities of the Company or BUMA, if any. By participating and receiving in this presentation, you agree to be bound by the foregoing limitations.
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BUMA Australia Pty Ltd Operating company Operating company BUMA International Operating company 3 Corporate Structure PT Delta Dunia Makmur Tbk (Delta Dunia Group) Holding company PT Delta Dunia Makmur Tbk Operating company PT Bukit Makmur Mandiri Utama Delta Dunia Makmur Representatives for 9M 2024 Company Update Ronald Sutardja President Director Ashish Gupta Commissioner Key Presenters Dian Paramita Deputy Director Iwan Fuad Salim Director
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Highlights of 9M2024 Tripling our orderbook to a massive US$12.7B, significantly elevated the quality of our orders, setting the stage for even greater success. Landmark contract extension and expansion of US$7.8B with PT Indonesia Pratama (IPR), subsidiary of Bayan Resources. New Contract of US$755M with PT Persada Kapuas Prima (PKP), subsidiary of Singaraja Putra. Extension in Meandu valued at AUD400M. 4 Note: 1. DOID’s Net Debt to EBITDA 2. Per December 2024 Strengthening our diversification as Mine Owner through transformative acquisition of 51% controlling interest in Dawson Mine Complex, 6th largest met-coal asset in Queensland, Australia. Commodity diversification beyond coal through increasing minority interest at 19.9%2 through Equity Investment in 29Metals Ltd, Copper- focused base metals producer in Australia. Capex grew by 79% to US$133.1M, as we ramp up production and prepared for new site. Free cash flow of US$80.2M from operations, while Free Cash Flow after strategic investment at (US$35.7M). Cash position remains strong at US$207M. Net Debt/EBITDA1 at 2.17x – still well below covenant ratio. Debt increase due to acquisition and capex. OB removal down by 9% YOY despite significant higher rainfall in Indonesia and Australia. Coal production increased by 3% YOY, recovery after-rain contained impact to Coal production. Revenue was stable YoY at US$1.35B despite volume decreased, as we have higher ASP reflecting that more of our contract is a Rise & Fall type. Production volume impact EBITDA which decreased by 16% YoY to US$252M – EBITDA margin decline to 21.5%, due to higher costs from weather related challenges.
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9M24 Performance : Stable Revenue, Prudent Debt Management, Strong Cash Flow Revenue and EBITDA Capex US$1,349M Stable YoY US$252M Declined by 16%YoY US$133M Increased by 79% YoY Higher CAPEX as we are investing in our new contract area such as IPR (Bayan Resources) Overburden Removal and Coal 420 MBCM Declined by 9% YoY 66 MT Increased by 3% YoY Note: 1. FCF after strategic investment in Atlantic Carbon Group, is at -US$36M 2. DOID’s Net Debt to EBITDA 3. Adjusted Guidance for FY24 5 FY24 Overburden Guidance 530 - 580 MBCM FY24 Coal Guidance 85 - 90 MT FY24 Revenue Guidance US$1,725 – 1,825M FY24 EBITDA Guidance US$300 - 350M FY24 Capital Expenditure Guidance US$150 - 190M FY 2024 Guidance3 Net Profit/(Loss) US($17)M An improvement from US$27M net loss reported in 1H24. Operating Cash Flow and Free Cash Flow Net Debt US$232M Increased by 2% YoY US$80.2M1 Declined by 50% YoY US$788M Net Debt to EBITDA booked at 2.17x2 38% debt due in 2026, 16% due in 2027 and 33% due in 2028 or later
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Profit & Loss: Improvement in 3Q24 EBITDA Margin vs 3Q23, even with weather challenges 9M2023 vs 9M2024 ▪ Overburden Removal declined by 9% – Extreme weather posted a challenge to our operations resulting in significant increases in wet weather both in Indonesia and Australia, however our recovery-after-rain managed to minimize the impact to production. – Indonesia see increase of rain hours by 38% while Australia increased by 53%, OB production decline was limited to 13% decline in Indonesia and YTD Australia posted 4% increase in OB production in Blackwater, Goonyella, and Burton ▪ Revenue stable – Stable revenue of US$1,349B compared to US$1,363B YoY, despite weather challenges impacting operations as we are sustained by BUMA AU increase in revenue and ACG consolidation in 3Q24. ▪ EBITDA declined by 16% and Operating Profit declined by 47% – EBITDA has been recovering at US$93M vs US$80M and US$80M in Q1 & Q2 respectively. EBITDA is impacted by temporary decommissioning cost and investment to expand our production capacity in both Indonesia and Australia. ▪ Net Loss booked at US$17mn – An improvement compared to 1H24 net loss at US$27M. Primarily attributed to proactive measures taken to strengthen the Group's financial foundation, including early debt repayment and bond buybacks, and investment for future growth engine. ▪ Cash costs ex fuel per bcm increased by 11% – Efficiency initiatives aimed at optimizing both equipment and people have increased our cash cost. These effect should normalize over time as the initiatives begin to yield their intended efficiencies. US$m, unless stated 3Q23 3Q24 Δ 9M23 9M24 Δ Volumes Overburden Removal (mbcm) 175 149 (15%) 462 420 (9%) Coal (mt) 22 24 8% 64 66 3% Key Financials Revenue 506 494 (2%) 1,363 1,349 (1%) EBITDA 127 93 (27%) 302 252 (16%) EBITDA Margin 28% 22% 25% 22% Operating Profit 59 26 (55%) 107 57 (47%) Net Profit/(Loss) 17 9 (45%) 22 (17) N.M. EPS (in Rp) 43 (29) N.M. Unit Financials (US$) Cash costs ex fuel per bcm 1.50 1.77 18% 1.58 1.75 11% Cash costs ex fuel per bcm/km 0.48 0.56 15% 0.50 0.56 11% 6
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Balance Sheet: Optimal Growth Investments Backed by Prudent Leverage Approach US$m, unless stated FY23 9M24 Change Key Balance Sheet Items Cash Position1 543 207 (336) Borrowings 1,222 995 (227) Net Debt 679 788 109 BUMA ratios Net Debt to EBITDA2 1.67x 2.06x - FCCR2 5.00x 4.12x - Liquidity – Net Debt to EBITDA ratio was at 2.17x2, maintained below covenant. Borrowings – Bank Loan4 US$585M – USD Bonds US$212.2M (post buyback and tender offer) – IDR Bonds5 US$42.1M (equivalent to IDR637B) – Other financing outstanding of US$118M Operating Cash Flow (OCF) increased by 2% from 9M2023 – The OCF increased to US$232M in 9M24, driven by improved working capital management – Free Cash Flow (FCF) was recorded at US$80.2M, with acquisition of ACG free cash flow is recorded at negative US$36M. – Cash level remains strong at US$207M. US$m, unless stated 3Q23 3Q24 Change 9M23 9M24 Change Unit Financials (US$) Operating Cash Flow 85 68 (20%) 227 232 2% Capital Expenditure 30 54 80.8% 74 133 79% Free Cash Flow 55 12 (79%) 159 80 49% 7 1. Includes cash, cash equivalents and other current financial assets 2. Status of DOID’s in lieu of its bank loan covenants 3. N.M = Not Meaningful 4. Includes loan from Bank Muamalat and BNI-Mandiri 5. Excluding IDR Bonds BUMA II 2024 totalling IDR 1 Trillion issued in October 2024
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8 • Extended debt maturity to 2029: facilitating a more prudent and evenly distributed repayment schedule. • Successful issuance of BUMA II 2024 Rupiah Bonds in October 2024, significantly enhancing DOID ability to manage its debt maturity profile effectively Managing Debt Maturity Profile 2024 2025 2026 2027 2028 2029 Pre-refinancing Debt Maturity Profile Bank Loan Finance Lease Bonds 134.8 549.0 21.2 184.7 11.0 0 2% 11% 38% 16% 18% 15%15% 21% 61% 2% 1% 0% (US$ Mn) (US$ Mn) 2024 2025 2026 2027 2028 2029 Bank Loan Finance Lease Bonds 18.9 109.8 150.8 171.9 145.9 360.4 Debt Maturity Profile 9M 2024
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9 6th largest metallurgical coal mine in Queensland with over 1Bt resources and >50years Resource life Transformational Acquisition: 51% of Dawson Mine Complex, transaction to be completed by 2Q25 Notes: 1 . 2023 Mineral Resource Estimate including Dawson (OC) and Theodore. JORC Resources includes Measured, Indicated and Inferr ed. 2. CRU, 100% Basis. EBITDA negative due to major overhaul and expansion of CHPP which affected availability. Dawson key metrics (100% Basis) Resources1 ~1 Bt Avg ROM Production 10.8Mtpa Reserves life ~20 years Avg Saleable Production 8.1Mtpa Blackwater Goonyella Burton Meandu Dawson 1 2 3 4 5 6 Asset of Scale Large-tonnage operation with ~112km strike length and 12Mt+ CHPP capacity Long Mine Life Long mine life with >100 years Resource Life and >20 years Reserve Life Consistent Operational Performance 60-year production history, EBITDA positive in 29 of the last 30 years, generated >A$2.5B EBITDA from 2021-20232 Infrastructure in Place Foundation customer status at port. Spare capacity via the Moura railway line and RG Tanna Coal Terminal Close Proximity to End Markets Located in the world’s premier coal basin near to high-demand customers – c.60% of product goes to Japan Established Metallurgical Coal Brand Long-term customer relationships from Dawson’s favourable coking properties (low ash, sulphur, phosphorus and fluorine)
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10 Copper-focused base metal producer in Australia Strategic Diversification: 19.9% Equity Investment in 29Metals Ltd1) Golden Grove Capricorn Copper Location Western Australia Mineral Resources1) 59.2Mt @ 1.7% Cu, 3.9% Zn, 0.7g/t Au, 28g/t Ag Ore Reserves1) ▪ 16.7Mt @ 1.7% Cu, 4.7% Zn, 0.7g/t Au, 26g/t Ag ▪ c.11 Year Reserve Life Mill Capacity 1.8Mtpa Production Produces 16-18ktpa Cu, with Zn, Au and Ag as by-products Location Queensland Mineral Resources1) 64.8Mt @ 1.8% Cu, 9g/t Ag, 396ppm Co Ore Reserves1) ▪ 19.0Mt @ 1.7% Cu, 12g/t Ag ▪ c.11 Year Reserve Life Mill Capacity 2.0Mtpa Production2) Produces 23-24ktpa Cu, with Ag as by-product • 29Metals Ltd is a copper-focused base and precious metals mining company located in Australia • Two high quality assets with substantial reserves and >10 years of mine life • Significant organic growth potential with exploration upside and resource expansion opportunities • Provides immediate exposure to copper and zinc through a producing miner • Significant step in Delta Dunia Group’s strategic plan to diversify towards future-facing commodities, aligned with global sustainability priorities 1. Refer to 29Metals’ 2023 Mineral Resources and Ore Reserves estimates, including Competent Persons’ statements and JORC Code Table 1 disclosures released to the ASX announcements platform on 23 February 2024 2. Capricorn Copper operations currently suspended, with plans in progress for restart. Refer 29Metals release to the ASX announcements platform on 26 March 2024 entitled “Capricorn Copper - Suspension of Operations”. Strategic Rationale 29Metals Ltd Overview
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Sustaining Momentum in Our ESG Initiatives Consistent Progress in our ESG Journey 97% 3% 2021 Revenue Indonesia Australia Geography and Commodity Diversification ▪ Continued progress on revenue diversification – 26% of revenue is from non-thermal coal sources and progressing towards the 2028 target of less than 50% revenue from thermal coal. ▪ Completed site specific carbon reduction initiatives mapping in two sites in Indonesia. The exercise identified existing and potential initiatives at site level, as well as carbon calculation to measure and monitor progress. ▪ Started Materiality Assessment Refresh and Climate Risk Assessment for Delta Dunia and its subsidiaries. Thermal Coal 99%Met Coal 1% No Notable Initiatives Q1 Q2 Q3 Q4 1 BUMA AU Carbon Footprint Assessment (Scope 1, 2 & 3) 2 Consolidated Carbon Baseline1 3 Carbon Reduction Initiatives, Indonesia 1st site : ADT 4 Independently Assured Sustainability Report 2023 5 Carbon Reduction Initiatives – Indonesia 2nd Site : IPR 6 DOID-NUS (SG) Next Practice Program completed 1st batch with 20% of managerial positions graduated 7 BIRU (DOID’s social enterprise) and Central Queensland University (AU) signed a training partnership 8 Materiality Assessment Refresh started (Target completion: Q4 2024) 9 Climate Risk Assessment started (Target completion: Q1 2025) 1 .Delta Dunia level Activities Completed Thermal Coal 74% Met Coal 26% 69% 30% 1% Activities started, on-going 9M2024 Revenue
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12 For more information visit our website deltadunia.com https://www.linkedin.com/company/buma-australia/ https://www.linkedin.com/company/pt-bukit-makmur-mandiri-utama/ https://www.linkedin.com/company/pt-delta-dunia-makmur-tbk/ https://www.linkedin.com/company/biru-vokasi/ https://www.linkedin.com/company/atlantic-carbon-group/
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Appendix 3 – BUMA Management 26 Thank You