PT BUMA Internasional Grup Tbk · IDX:DOID
PT BUMA Internasional Grup Tbk — PT Delta Dunia Makmur — H1 2022 Earnings Presentation
35 slides from PT BUMA Internasional Grup Tbk's earnings presentation, July 2022
Slide 1: Investor Presentation 1H 2022
Investor Presentation 1H 2022 July 2022 1 — STRICTLY CONFIDENTIAL —
Slide 2: Disclaimer
Disclaimer These presentation materials have been prepared by PT Delta Dunia Makmur Tbk (“Delta”) (the “Company”), solely for the use at this presentation and have not been independently verified. Information relating to PT Bukit Makmur Mandiri Utama (“BUMA”) has been included with its content, and
Slide 3: 1H 22 Financial Highlights
1H 22 Financial Highlights Overburden Removal and Coal Revenue EBITDA FY22 Overburden Guidance 260 MBCM US$ 723M US$ 164M 480 - 565 MBCM FY22 Coal Guidance Up 83% Y-o-Y 41 MT Up 107% Y-o-Y 26.0% EBITDA Margin 74 - 86 MT Up 64% Y-o-Y FY22 Revenue Guidance US$1,300 – 1,500M Operating Cash Flow Net Pro
Slide 4: Highlights in 2021
Highlights in 2021 Financial Operations Growth Looking Ahead – FY2022 ▪ Refinanced with a US$400M 2026 ▪ New Contracts/Extensions: ▪ Mining Services ▪ Announced the extension of BUMA bond - same pricing, more flexibility Australia’s contract with the BHP – New 5 year contract with Adaro’s – Expanded
Slide 5: Company Overview
Company Overview Financial Overview Key Investment Highlights Mining Services Overview Appendix 5 — STRICTLY CONFIDENTIAL —
Slide 6: Corporate Overview
Corporate Overview Public NTP Ltd Treasury Shares shareholders 37.9% 6.9% 55.2% listed on IDX Holding 100%1 Operating 100% Operating (2001) company company company ▪ Established in 2021 to acquire the Open Cut ▪ Established in 1998, and wholly owned by PT Mining business of Downer ▪ Established in 1
Slide 7: Corporate Strategy – Sources of Fund
Corporate Strategy – Sources of Fund CORE BUSINESS US$m, unless stated1 FY183 FY19 FY20 FY21 1H22 OB Removal (MBCM) 393 380 282 326 260 Revenue 892 882 602 911 723 EBITDA 298 236 164 234 164 % EBITDA margin3 36% 29% 29% 28% 26% EBIT 164 88 20 82 51 % EBIT margin3 20% 11% 4% 10% 8% ▪ BUMA Indonesia i
Slide 8: Corporate Strategy – Usage of Fund
Corporate Strategy – Usage of Fund OPERATIONAL EXCELLENCE Supported by: ▪ Synergy between Fleet Management System and Operational Excellence and Safety System ▪ Good capital management Strong and stable cashflows will drive growth pillars ADVANTAGE: DIVERSIFY: COMMODITIES DIVERSIFY: GEOGRAPHY ADVANT
Slide 9: Financial Overview
Company Overview Financial Overview Key Investment Highlights Mining Services Overview Appendix 9 — STRICTLY CONFIDENTIAL —
Slide 10: Financial Highlights
Financial Highlights Overburden Removal1 (m bcm), Coal Production & Hauling (m tonnes) Revenue1,2 (US$m) OB Removal Coal Production Hauling Guidance Guidance 1,300 – 480 - 565 1,500 393 380 340 326 892 882 911 282 260 765 723 602 74 - 86 40 42 50 45 54 41 5 5 13 12 14 7 FY17 FY18 FY19 FY20 FY21 1H22
Slide 11: Financial Results
Financial Results ▪ Overburden Removal increased by 83% from 1H21 US$m, unless stated FY20 FY21 Change 1H21 1H22 Change – 1H22 reflects volume recovery and incremental volume from new contracts and BUMA Australia included Volumes Overburden Removal ▪ Revenue increased by 107% from 1H21 282 326 16% 1
Slide 12: Balance Sheet and Cashflow
Balance Sheet and Cashflow ▪ Liquidity position US$m, unless stated Dec 21 Mar 22 Jun 22 – Free cash flow decreased reflected an incremental USD16mn capital expenditure to support growth expected from two new contracts signed Key Balance Sheet Items – Net debt to EBITDA ratio of 2.48x in 1H 2022, sh
Slide 13: Capital Expenditure
Capital Expenditure FY21 Capital Expenditure FY22E Capital Expenditure1 340 Guidance 150 - 200 ▪ Growth Capital Expenditure: ▪ Growth Capital Expenditure: – Core Fleet for ADR Tutupan – Carry forward Core Fleet for ADR Tutupan – Core Fleet for IPR Expansion c.60% – Core Fleet for IPR Expansion c.86%
Slide 14: Weather Challenges
Weather Challenges Total Rainfall Hours at Mine Site in Indonesia Total for the Year Rainfall Hours 2017 823 ▪ Higher rainfall throughout early 2018 758 months of the year 2021 as 2019 745 compared to the same months in 2020 974 previous years, and continued to 2021 1,050 1H 2022 446 2022. ▪ June ra
Slide 15: Key Investment Highlights
Company Overview Financial Overview Key Investment Highlights Appendix Mining Services Overview 15 — STRICTLY CONFIDENTIAL —
Slide 16: Key Investment Highlights
Key Investment Highlights Scalable Core Business: Secure contracts with long-term clients provide predictable and 1 stable revenues Track Record: History of improving operating performance, reducing maintenance costs 2 and efficient capex strategy Capital Management: Active capital management throug
Slide 17: Scalable Core Business: Secured, long-term contracts
1 Scalable Core Business: Secured, long-term contracts… Contracts Orderbook Years of Existing Contract No Indonesia Customers Relationship Period Kalimantan 1 Adaro (Paringin)2 16 years 2009-20221 North 2 Adaro (Tutupan) 16 years 2021-2025 Kalimantan 3 Angsana Jaya Energi (AJE) 3 years 2022-20257 5&
Slide 18: …provide predictable and stable revenues
1 …provide predictable and stable revenues BUMA Revenue (US$m) BUMA Australia Revenue1 (US$m) Impact of COVID-19 Australian regulation, border closures and vaccination programme prevented any material disruption from COVID-19 892 882 911 392 385 362 356 765 602 282 FY17 FY18 FY19 FY20 FY21 FY17 FY18
Slide 19: Track Record: History of improving performance
2 Track Record: History of improving performance… Repair and Maintenance Cost per BCM (US$/BCM) Production Parameters Physical Availability Loader Hauler 0.49 100% 91.2% 89.5% 90.6% 88.2% 90.3% 88.0% 91.1% 89.7% 87.4% 88.3% 86.9% 87.9% 80% 60% 40% 0.46 20% 0% FY17 FY18 FY19 FY20 FY21 1H22 Utilizatio
Slide 20: Track Record: …and efficient capex strategy
2 Track Record: …and efficient capex strategy Capital Expenditure (US$m) Peak of replacement cycle coupled with growth that made up Minimum capital New contracts with significant for current existing capacity spending, given increase in volumes (orderbook excess capacity growth), requiring higher ca
Slide 21: Capital Management: >60% of debt due in 2026 or later
3 Capital Management: Active capital management sees >60% of debt due in 2026 or later Capital Management in 2022 Debt Maturity Profile (US$m) US$400 million Senior Notes – Rated BB- by Fitch (Stable), Ba3 by Moody % of Debt Due 5% 10% 12% 15% 58% 0% ▪ Refinancing of previous debt structure was comp
Slide 22: Opportunistic Growth: Strong and stable cashflows
4 Opportunistic Growth: Strong and stable cashflows to drive diversification and growth EBITDA (US$m) ▪ By Region: Now one of the key contractors in two of the world’s key mining jurisdictions ▪ By Client: Diversifying and strengthening our contract book and client base, focusing on the lowest cost
Slide 23: Dedicated management team with significant industry experience
5 Dedicated management team with significant industry experience and expertise Highly experienced leadership team, supported by Board of Commissioners with significant experience in the mining industry and expertise across capital markets and private equity Delta Dunia Board of Commissioners Delta D
Slide 24: Dedicated management team with significant industry experience
5 Dedicated management team with significant industry experience and expertise Operational excellence underpinned by a strong and highly experienced management team with long tenures in the company BUMA Senior Management BUMA Australia Senior Management ◼ President Director of BUMA since 2021 ◼ Gene
Slide 25: Mining Services Overview
Company Overview Financial Overview Key Investment Highlights Mining Services Overview Appendix 25 — STRICTLY CONFIDENTIAL —
Slide 26: Overview of Mining Services
Overview of Mining Services Planning and scheduling of mining operations Provides overburden removal, coal mining and Coal mining contract miners play a critical role in within parameters set by the mine owners coal transportation services the Indonesian coal industry BUMA work workscope scopecovers
Slide 27: Operational Strategies
Operational Strategies Cost Efficiency Initiatives - Maintenance Digital Digital Maintenance Maintenance •• Digitizing Digitizing our our manual manual maintenance maintenance procedures procedures (WICOPE) (WICOPE) • Streamlining maintenance process while producing more accurate and higher quality
Slide 28: Appendix
Company Overview Financial Overview Key Investment Highlights Mining Services Overview Appendix 28 — STRICTLY CONFIDENTIAL —
Slide 29: Consolidated Performance – 1H 2022
Consolidated Performance – 1H 2022 Consolidated Statements of Financial Position Consolidated Statements of Profit or Loss and OCI In US$ mn (unless otherwise stated) Jun-22 Dec-21 YTD In US$ mn (unless otherwise stated) Jun-22 Jun-21 YoY Cash and cash equivalents 133 194 -31% Net revenues 723 349 1
Slide 30: Quarterly Progression
Quarterly Progression US$m, unless stated 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Volumes Overburden Removal 61.2 52.1 65.0 77.0 90.4 94.0 123.5 136.6 (m bcm) Coal (mt) 11.5 11.4 12.7 12.3 13.9 14.9 18.3 22.8 Key Financials Revenue 142 108 160 189 248 314 332 391 EBITDA 49 13 31 42 77 84 70 94 EBITD
Slide 31: Cash Costs
Cash Costs BUMA’s cash cost ex fuel (1H 2022) Others The management team led the business to navigate through the prolonged downturn in 2020, focusing on 10% Rental optimizing asset utilization, strategically reducing capex, efficient inventory management and prudently 4% Spare parts & reducing co
Slide 32: ESG Programme
ESG Programme Our Sustainability Framework KEY STRATEGY Operational Excellence Diversification to support Low Carbon Economy Transition Cross cutting ESG factors Safety Optimize Ownership Eco-efficiency Community Climate Optimization on Fostering sense of Providing safe and operational excellence ow
Slide 33: Implementation Plan
Implementation Plan Consolidating Core Business Improvement of Core Business Mine Ownership Focus Area Focus Area Focus Area ▪ Integration and expansion of the Australian ▪ Extension and expansion of current order book ▪ Seeking to expand our core business into mine business ▪ Targeting commodity di
Slide 34: FY22E Guidance
FY22E Guidance ▪ Factors underpinning volumes: US$m, unless stated 1H22 FY22E1 – Full year production in ADR Tutupan – Increase from IPR contract expansion Volumes – Additional from consolidating BUMA Australia Overburden Removal (m bcm) 260 480-565 ▪ Capital Expenditure: – Carry forward 2021 Capex
Slide 35: Thank You
THANK YOU 35 — STRICTLY CONFIDENTIAL —
PT Delta Dunia Makmur — H1 2022 Earnings Presentation on 6ix