BUMI Presentation
November 2013
Agenda
2
Overview
96.97%
Citra Palu Minerals Gold Mining
70% Arutmin (in exploration stage)
Fajar Bumi Sakti (FBS) Coal 89,6% PT Tamagot Bumi SA Iron Ore
Effective (exploitation stage)
~50% (in production stage)
5
Coal Reserves & Resources Largest in Indonesia
Reserves are now 3.3 billion tonnes, increase 27% from 2.6 billion tonnes in 2009
Reserves & Resources together increase to 17.3 billion tonnes
Coal Coal
Total
Reserve Resource
In million tonnes
KPC:
Sangatta 474 3,651 4,125
Melawan 624 3,946 4,570
Bengalon 226 1,564 1,791
1,325 9,161 10,486
Arutmin:
Senakin 35 407 442
Satui 60 262 322
Batulicin 22 - 22
Sub Bituminious Coal 117 669 786
Ecocoal 292 1,224 1,516
410 1,893 2,303
751 775 74
66 11.5x
560 532 61 10.4x 10.9x
51 8.8x
63 68
63 68 59 7.6 7.3
60 48 6.2
48
3.8
7
Summary Financial Highlights
In million US$
FY -2012 9M -2013 %
9M -2012 9M-2013 %
Owners of The Parent (632.5) (377.5) -40% Shareholder Equity 392.1 (18.2) -68%
Non-controlling Interest (22.9) (36.0) 57% Total Liabilities & Equity 7,354.3 7,027.5 -3%
Total Net (Loss) (655.4) (413.5) -37% Total Debt (Include Convertible Bonds) 4,080.6 4,048.9 -1%
8
Average Selling Prices (ASP)
Continuing expectation of escalating demand for coal, along with economic growth, particularly in
India
Indonesia is one of the worlds largest thermal coal producers supported by quality and significant
reserves to meet world coal demand
Asian Countries
ASPs (exc. Ecocoal) $ 65.1 $ 76.3 $ 99.8 $ 90.1 $ 94.1 $ 77.1 (99%)
~ Power Generation
Ecocoal $ 38.1 $ 41.5 $ 61.4 $ 52.7 $ 55.8 $ 37.5 ~ Steel Mils & Others
Note: Average Selling Prices is based on FOB price before the government royalty
Europe (1%)
~ Power Generation
9
Production Cash Costs
Production Cash Costs of the Company decreased by 11.4% due to higher efficiencies, 24% lower
unit fuel costs and a 19.2% fall in strip ratio, year-on-year
Production Cash Costs(1) Composition of Production Cash Costs
(in US$ per ton) FY10 FY11 FY12 9M12*/** 9M13
Mining Mining
Bumi 33.9 42.1 43.7 47.3 41.9 Contractor Contractor
51% Fuel Costs Fuel Costs
KPC 34.0 45.5 46.5 49.2 43.7 54%
26% 23%
Arutmin 33.9 36.3 39.1 45.3 38.3
Fuel Cost per Ton (US$) 8.6 11.4 11.6 12.3 9.3 Maintenance,
Maintenance,
Equipment
Strip Ratio 10.5x 11.5x 10.4x 10.9x 8.8x Equipment
12%
12%
Cash Margin(2) 36.9 50.6 37.8 38.2 24.9 Labor costs 5%
Labor costs 5%
Other materials 6% Other materials 6%
Note: (1) Calculated by dividing the production cash costs with the companies coal mined; excluded FBS
(2) Calculated by subtracting production cash costs from average selling price
* Included Deferred Stripping Cost
Change in Accounting Policy in 2011 9M 2012 9M 2013
** Included adjustment on river diversion & rehabilitation provision
10
Other Income Statement
In million US$
11
BUMI Debt Maturity Repayment Schedule
*Excluded Subsidiaries Loan
# 100,5 100,9 98,6 95,9 # 94,8 95,0 85,0 62,8 # 60,7 59,5 57,9 34,8 # 33,1 31,2 30,8 25,6 # 17,2
RANTEEDF
US$ 750 million
US$ 50 million
q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 q3
2013 2014 2015 2016 2017
US$ 254.5 million US$ 1,230.5 million US$ 1,062.5 million US$ 530 million US$ 700 million
12
Dividend History Steady since 2005
Dividends
Year Total Share Remarks
per Share
2000 1.0
2001 -
2002 2.5
2003 -
2005 Interim 5.0
2005 Final 10.0
19,404,000
2006 Final 16.0 Paid on 25 June 2007
50% paid on 2 July 2007, balance
2007 Interim 66.0 *
50% paid on 5 September 2007
2007 Final 45.0 Paid on 7 August 2008
2008 Final 50.60 Paid on 18 August 2009
2009 Final 27.68 Paid on 16 August 2010
2010 Final 41.78 Paid on 15 August 2011
20,773,400
2011 Final 14.31 Paid on 6 July 2012
* Represent 30% Dividend in XO gain of $472 million from Tata transaction in June 2007
13
Recent Awards & Recognitions
1. Ranked 9th in the Best Corporate Governance Category for Indonesia in the Asias Best Companies Award 2013.
Result was based on Best Managed Companies Annual Survey conducted by FinanceAsia Magazine, Jakarta, 4 July
2013
2. Received Trusted Company award based on Corporate Governance Perception Index (CGPI) in Corporate
Governance Award 2012, Jakarta, 19 December 2012
3. Ranked of 11th in Coal & Consumable Fuels in Asia, 15th in Coal & Consumable Fuels globally, 68th in Overall
Performance in Asia and 234th on overall global performance by 2012 Platts Top 250 Global Energy Company,
Singapore, 23 October 2012
4. Received the Best Asian Company in 8th Corporate Governance Asia Annual Recognition Awards 2012. The award
was presented by Corporate Governance Asia Journal on Corporate Governance in Asia, Hong Kong, 20 June 2012
5. Received the 2nd Asian Excellence Recognition Awards 2012 for Best Investor Relations by an Indonesian company
PT Bumi Resources Tbk. and Best Investor Relations Professional Mr Dileep Srivastava from Asian Excellence
Awards and 9th Years of Corporate Governance Asia in Hong Kong, 30 March 2012
14
CSR Achievements
15
Recap of Fundamental Strengths of Bumi
16
Operational Area
Coal mining operations - Overview
KPC Snapshot
Area East Kalimantan, Indonesia n Purpose: Sole and exclusive rights in connection with the exploration
Number of blocks 2 and exploitation of coal deposits in assigned concession areas in
Size (ha) 90,938 Kalimantan
Certified resources (Mt) 1) 9,161 n Marketing: May export the coal produced in the concession areas,
Proven & probable marketable reserves (Mt) 1) 1,319 but must give due consideration to domestic demand for coal within
Indonesia
H1 2013A production rate (Mt.) 24,07
H1 2013A cash costs (US$/tonne) 2) 48.1 n Expiry date: 31 Dec 2021
KPC operates the Sangatta and Bengalon mines; the Sangatta mine is the largest coal mine in
Indonesia and one of largest in the world as measured by coal mined
1) Based on KPC Resource & Reserve Statement 2011 18
2) Calculated by dividing the production cash costs with coal mined for H1 - 2013.
Coal mining operations - Overview
Arutmin Snapshot
Area South Kalimantan, Indonesia n Purpose: Sole and exclusive rights in connection with the exploration
Number of blocks 6 and exploitation of coal deposits in assigned concession areas in
Size (ha) 59,261 Kalimantan
Certified resources (Mt) 2,377 n Marketing: May export the coal produced in the concession areas,
Proven & probable marketable reserves (Mt) 397 but must give due consideration to domestic demand for coal within
Indonesia
2013E coal mined (Mt p.a.) 27.1
2013E cash costs (US$/tonne)(1) 32.7 n CCOW Permit until : Nov 2019
The company has already purchased 2 sets of tug boats and barges (each 220 feet Jumbo, 3,800 tones capacity) and placed an
order for one more through companys subsidiary PT Fajar Bumi Shipping. The balance requirement of barges can be rented from
the market.
FBS has two mines at Loa Ulung and Tabang spread over three concessions, of which Tabang Mine is
fully ready for exploitation with 321 mt reserves
20
Coal mining operations - Overview
Pendopo Snapshot
Area South Sumatera, Indonesia
Size (ha) 17,840
Estimated resources (Mt) 2,311
Proven & probable marketable reserves (Mt) 1306 Coal Quality
Stripping ratio (bcm/ton) 1.3
CV 2400
2014 estimated production (Mt p.a.) 1.0
*as per JORC (2012)
Moisture 58%
Historical Background Sulfur 0.12%
PT Pendopo Energi Batubara (PEB) established in 1995 and in Ash 6.4%
1997 entered the 3rd Gen Coal Contract of Work (CCoW) with Note: Above coal specification is as recieved basis
the Government of Indonesia (GoI).
Exploration activities were started in 1997. Feasibility Study was
approved by GoI in 2006. Strategic Location of the Mine
JORC report was issued by Runge in 2008 and updated in
2012. In 2009 operation/production permits were issued by GoI
for 30 years. The coal concession is located in
In 2009 Bumi Resources acquired majority stake (85%) in PEB . Pendopo, Muara Enim, South
Sumatra approxi-mately 140 km
southwest of Palembang through
provincial road and Musi River.
Development Project Strategy The concession is located in
Technology Companies between Musi river, 50 km to the
north and Lematang river 10 km to
Hongkong Electric; Sumitomo/JPower;
Power Plant the east.
Babcock-Hitachi; EDF/EDCO/DGA Palembang
Coal Gasification Lurgi; MHI; Siemens; Jcoal
Pendopo
Evergreen; White Energy; TSK; Tekmira;
Coal Upgrading Agency for Assessment and Application
of Technology (BPPT)
Coal Upgrading / Coal
Kobe Steel
Liquefaction
Coal Gasification / Power Plant Mitsui
Coal Liquefaction Sasol
PEB has large coal reserves comparable to major coal mine companies and is the lowest cost coal
producer in Indonesia. Projects of conversion of lignite into clean energy are conducted with credible
and reputed partners
21
Supported by experienced third party contractors and
marketing agents
Thiess main mining contractor at Sangatta site Mitsubishi Corporation Largest coal
at KPC; Senakin, Satui and Mulia sites at Arutmin trading company in Japan
Mined 39% of total production in 2010 Markets and sells KPCs production
Pama mines Sangatta site at KPC in Japan
23
PT Bumi Resources Tbk.
24
Location
Kaltim Prima Coal
100 miles north of Balikpapan in East Kalimantan KPC Coal Agreement Area
25
Location
Arutmin Indonesia
Senakin
North
Pulau Laut
Batulicin
Coal
Terminal
Satui
Asam Asam
26
Reclamation Sequence
Kaltim Prima Coal & Arutmin Indonesia
1 YEAR
RECONTOURING
TOP SOILING PLANTATION
3 YEARS 2 YEARS
5 YEARS
27
Current Condition in Post-Mining KPC area
PT KPC also gave contribution in support of "One Billian Indonesian Trees " (OBIT)
program initiated by the Government in accordance with Regulation of MInister of Forestry
of the Republic of Indonesia No. P.21./Menhut-II/2010.
28
Orang Utan Pongo Pygmaeus (Borneo)
All those activities conducted by KPC concerning environmental conservation are merely aimed to
conduct business in responsible manner as our jargon More Than Mining. KPC has and will always conserve
the environment with measurable and organized activities that have positive impacts to the environment 29
and the community.
Current Condition in Arutmin
Reclamation in post-mining area
30
Plant Nursery
Nursery
Fast-growing Plants:
Acacia mangium, Albazia
falcatarienthes dan Trambesi.
Local plants:
Kapuk (Ceiba petandra), Mahang
(Macaranga hypoleuca),
Kelampaian (Anthocephalus
cadamba) dan Pulantan (Alstonia
scholaris) dan Meranti (Shorea
sp).
Fruit trees:
Kemiri (Aleuritus moluccana),
Rambutan (Nephelium spp),
Durian (Durio zibethinus),
Cempedak (Artocarpus integer)
dan Mangga (Mangifera spp).
31
PT Kaltim Prima Coal
KPC Enviromental Management
Mine rehabilitation
Mine acid water control
Suspended solids control
Hydrocarbon and waste management
Continuous Environmental Self Audit
Accredited to ISO14001by SGS
Environmental Management (2006-2008) by
Directorate General for Mineral, Coal and
Geothermal Indonesia
Environmental Management Period 2011 2012
(Green Proper) by State Minister of Environment
Indonesia
32
PT Arutmin Indonesia
Environmental Management and Monitoring
Accredited to SMK3 & OHSAS 18001:2007-
NPLCT by Sucofindo
Water treatment
Dust treatment
Hazardous
material
management
Accredited to
ISO14001 NPLCT
by Sucofindo
33
KPC Safety Record
1996 October 2013
Prima Nirbhaya/NOSA
45 Implementation 3.50
LTIFR Threshold 2013 : 0,20
40 39
3.00
36
35 35
FPE & New Golden Rules
25 23
22 22
20
19
20 18 1.50
17
1.51 15 14
15 1.36 14
12
1.00
1.11
10 0.93
0.76 0.80
0.50
5
0.50 0.56
0.32 0.23 0.34 0.26 0.20
0.22
0 0.00
YTD 31
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Oct'13
34
Arutmin Safety Record
2000 October 2013
14 1.20
12
1.00
0.97
8
0.61 0.60
6
0.48
0.41 0.40
4
0.27
0.24 0.23
0.20
2 0.18
0.12 0.10 0.11
0.09
0.04 0.03
0 0.00
YTD
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2013
No. of LTI 8 4 5 3 3 13 3 6 1 7 3 1 4 3
LTI-FR 0.97 0.41 0.48 0.24 0.18 0.61 0.12 0.27 0.04 0.23 0.10 0.03 0.09 0.11
35
KPC Fund for Sustainable Development
36
CSR Achievements
Date Awards
September 28, 2012 Gelar Karya Pemberdayaan Masyarakat ("GKPM") Award 2012
PLATINUM
- Orange Agribusiness Development Program in Rantau Pulung District
- Prevention of Malnourished and Severe-Malnourished Children Under 5 years with Community Empowerment
Based Through Nutritional Education and Rehabilitation Program (Pergizi)
37
PT Arutmin Indonesia
Community Development
COMMUNITY DEVELOPMENT TARGET :
- Education
- Economic
- Infrastructure
- Health
- Social/culture
- Donation
38
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THANK YOU