PT BUMI RESOURCES Tbk WORLD CLASS ENERGY OPERATOR

Transcription

1 PT BUMI RESOURCES Tbk WORLD CLASS ENERGY OPERATOR CLSA Asia Investor s Forum Las Vegas, 9 11 February

2 Agenda Background Corporate Structure Coal and Non Coal Recent Acquisitions Darma Henwa Fajar Bumi Sakti Pendopo Energi Batubara Bumi Vision 2012 Coal Reserves Recent Update Historical Financial Performance Coal Production and Selling Prices Dividend History Recent Awards and Recognition Bumi Fundamental Strengths 2

3 Background Bumi s coal mining operations are conducted by its two mining subsidiaries, KPC and Arutmin, located in East and South Kalimantan, respectively, and are ideally located to serve important markets mainly in the whole of Asia, Europe and South America. KPC and Arutmin use open cut mining and have captive coal processing facilities and dedicated coal loading terminals and port facilities. KPC and Arutmin together commanded a dominant 28% market share of Indonesia coal production in 2007, and together represent the second largest thermal coal exporter globally. Moreover, KPC s mine is the largest export coal mine in the world. Bumi plans to diversify its business portfolio and revenue mix by entering into other business ventures in the mining and mining related sectors, such as copper, gold, iron ore, bed methane and power in the medium term. 3

4 Bumi Ownership Structure - Becoming a Diversified Mining Resource Company BUMI RESOURCES 100% 100% 99% 100% Sangatta Holdings Kalimantan Coal Sitrade Coal 70% Forerunner Non Coal Companies New Investments 9.5% 9.5% 32.4% 13.6% 70% 100% 99.9% Gallo Oil (Jersey) oil production (in exploration stage) Citra Palu Minerals gold mining (in exploration stage) Effective ~44% Effective ~77% Darma Henwa contract mining Fajar Bumi Sakti coal (production stage) KPC Arutmin IndoCoal Resources 80% Gorontalo Minerals gold & copper mining (in exploration stage) Effective ~85% Pendopo Energi Batubara coal (in exploration stage) * Coal Companies 60% Bumi Mauritania iron ore (in exploration stage) 30% Westside Corporation coal bed methane 84% Herald Resources lead & zinc (in exploration stage) *) Tata Power Company, India has 30% stakes in each of the Coal Companies since 26 June % Bumi Japan marketing services 4

5 Zurich Assets Investment ( ZAI ) Acquisition Reduce Dependence on External Operating as Production Ramps Up Independent Valuation Based on independent valuation report, implied 100% equity value of Darma Henwa is approximately US$448 to US$510 mn Transaction details Announcement date: 30 December 2008 Selling shareholder: Goodrich Management Corp % acquired: Through 80% Zurich Asset Investment which owns 55% of Darma Henwa (effective 44%) Payment Terms: Deal Size : Rp 2,412 billion Down Payment : Rp 492 billion (20,4%) 1 st Year Payment : Rp 359 billion (14,9%) 3 rd Year Payment : Rp 1,561 billion (64,7%) Conditionality on Final Payment Meets 12 MT production targets by Dec 2011 Key metrics: Business: Contract mining Estimated value of current project: US$4.7bn FY 09(E) overburden removed: 84 mn bcm FY 09(E) coal mined: 9 mn tonnes Projections Revenue in million US$ EBITDA in million US$ Total 1,

6 Rationale for ZAI Acquisition Realization of Cost Synergies Darma Henwa has exclusive mining contract to mine at KPC s Bengalon pit and Arutmin s Asam-asam pit (accounting for over a quarter of Bumi s near-term coal production) Contract rates and terms can be optimized with the alignment of interest between Bumi and Darma Henwa Centralized processing, back-office operations and coordinated procurement process can result in greater efficiencies Improved Operational Efficiencies Mining equipment can be optimized Alignment and better coordination among KPC, Arutmin and Darma Henwa can result in efficiencies in areas such as cycle, time, equipment & utilization, fuel usage, optimal mining technique, etc No change in management control; increase access to mining operation capability Robust Cash Flow Producing Asset Darma Henwa is a leading mining contractor and has a diversified portfolio of contracts aggregating to US$4.7 billion Produces healthy cash flows with ramp-up in line with development of Bengalon and Asam-asam pit Significant Upside Darma Henwa expects to mine 7-9 mn tonnes of coal in Bengalon pit and 2 mn tonnes in Asam-asam pit in 2009 and this is expected to increase exponentially to 12 mn tonnes in Bengalon and to 10 mn tonnes in Asam-asam within 3 years 6

7 PT Fajar Bumi Sakti ( FBS ) Acquisition Earning Company Low Operating Cost Structure Independent Valuation: Based on independent valuation report, implied 100% equity value of Fajar Bumi Sakti is approximately US$270 to US$299 mn Transaction details Announcement date: 5 January 2009 Selling shareholder: Ancara Properties Ltd % acquired: Effective 76.8% (Through 76.9% of Leap Forward Finance which owns 99.9% of Fajar Bumi Sakti) Payment Terms: Deal Size : Rp 2,475 billion Down Payment : Rp billion (0,03%) 1 st Year Payment : Rp 430 billion (17,37%) 3 rd Year Payment : Rp 2,045 billion (82,6%) Conditionality on Final Payment Achieves production of 4 MT by Dec 2010 Key metrics: Business: Coal mining Coal reserves: 98 mn tonnes FY 09(E) production: 2.3 mn tonnes Projections Revenue in million US$ EBITDA in million US$ Total 1,

8 Rationale for Proposed Acquisition FBS Exponential Production Ramp Up Improve Reserve Base and Mine Life Leverage Mining Techniques and Practices Reserve base of 98 mn tonnes is significant and furthers adds scale and mine life to Bumi s coal assets Further exploration upside available from large unexplored concession area Three concession areas have tenors up to 2018, 2027 and 2028, respectively FBS s is the only in underground mining company in industry (since 1982); can be fully leveraged to assist in development of Arutmin s underground mining operations which have over 150 m tons underground reserves BLUE environmental rating from Government of East Kalimantan indicates strong adherence to environmental and sustainable operations Good Quality Coal Product Produces bituminous Kutai type coal (CV above 6,500 kcal/kg) from FBS concession Strong Cash Flow Producing Asset Producing asset with operational track record of over 20 years On verge of production ramp-up to over 2 mn tonnes in 2009 and 7 mn tonnes in

9 PT Pendopo Energi Batubara ( PEB ) Acquisition Strategic Buy Domestic coal supply balance Independent Valuation: Valuation base price, implied 100% equity value of PEB is approximately US$179 to US$198 mn Transaction details Announcement date: 7 January 2009 Selling shareholder: Indomining Resources Holding Ltd. % acquired: Effective 84.5% (Through 89% of Pendopo Coal which in-turn owns 95% of Pendopo Energi Batubara) Payment Terms: Deal Size : Rp 1,304 billion Down Payment : Rp billion (0,1%) 1 st Year Payment : Rp 226 billion (17,3%) 3 rd Year Payment : Rp 1,077 billion (82,6%) Conditionality on Final Payment Enters into a Power Purchase Agreement by Dec 2010 Key metrics: Business: Coal mining Coal reserves: 0.7 bn tonnes Coal resources: 1.1 bn tonnes Project still under feasibility study and development stage Projections Revenue in million US$ EBITDA in million US$ Total

10 PEB Development Strategy Exposure to energy project PEB has entered into MOUs to supply coal for : Mine Mouth Power Plant Sumitomo/J-Power 2 x 300MW Coal Gasification Mitsui Coal Liquefaction Various Upgrade Brown Coal HK Electric Offtaker & Finance (Offtakers) (Offtakers) (Offtakers) (Offtakers) (Offtakers) (Offtakers) 10

11 Rationale for Proposed Acquisition PEB Substantial Coal Reserve Base and Significant Upside MineConsult report indicate 675 mn tonnes of reserves and 1.1 bn tonnes of resources, albeit at low calorific value (lignite) Coal upgrade studies in progress by Hong Kong Electric, to assess coal upgrade options and potential Increase Domestic Share and Potential for New Businesses Lignite coal from Pendopo can be used for domestic power plant operations A number of other possible uses including potential for (i) coal liquefaction (study currently in progress with EDSM, Pertamina and Sasol) and (ii) coal bed methane (study to commence shortly by Lemigas, Directorate of Geology) Ready and Nearby Transportation Access to transportation via provincial roads, PTBA s railway and Lematang / Musi river About 140 km from Palembang, main city in South Sumatra 11

12 Bumi Strategic Expansion Vision 2012 Production in MT Production in MT DEWA 12% OTHERS 6% PAMA 7% OTHERS 3% OWNER 35% PAMA 12% THIESS 45% DEWA 23% OWNER 25% THIESS 32% 12

13 Coal Production Doubling to 60 m tons in 2009 in 6 years Increasing to 111 m tons in 2012 Coal (m ton) 120 Total Estimated in 2012 is 111 mn tons Arutmin KPC FBS PEB Total (E ) 2012(E ) BUMI owns its infrastructure and adding mining operating capability 13

14 Diversified Product Mix Expansion in Key Strategic Markets Million tons JAPAN EUROPE INDIA TAIWAN & HK INDONESIA CHINA OTHERS 14

15 Coal Reserves & Resources Largest in Indonesia Now 2.9 billion tons from 1.4 billion tons in Sep 2007and 1.1 billion tons in Sep 2005 Reserves increase by 107% Reserves & Resources increase to 10.7 billion tons from 8.1 billion tons in Sep 2007 In million tonnes Coal Reserve Coal Resource Total KPC: Sangatta 160 3,447 3,607 Melawan North Pinang Bengalon ,123 1,562 4,424 5,987 Arutmin: Senakin Satui Batulicin Sub Bituminous 407 2,047 2, ,943 3,502 FBS (JORC Certification in process) PEB ,102 TOTAL 2,904 7,782 10,689 Previous Report (Sep-07) 1,402 6,730 8,132 Increases 1,502 1,052 2,557 % Variance 107% 16% 31% 15

16 Summary Financial Highlights In US$mn FY 2004 FY 2005 FY 2006 FY M 2008 Net Revenues 1,048 1,751 1,852 2,265 2,433 Cost of Sales (657) (1,309) (1,322) (1,511) (1,359) Gross Profit ,074 Operating Income EBITDA from Operations Core Net Income (after minority expenses) Net Income with Extraordinary Items EPS (US$ per 1,000 shares) Current Assets ,057 1,204 1,760 Total Assets 1,526 1,722 2,514 2,819 4,239 Current Liabilities ,102 Long Term Debt , Total Liabilities 1,407 1,475 2,144 1,418 2,306 Shareholders Equity ,122 1,454 16

17 Core Net Income Assessment Core Net Income (before minority expenses) increased by 159% to US$704mn in Sept 2008 from US$272mn in Sept 2007 due to higher sales revenue during the period, especially in Q Q Q Var QoQ Sept 2007 Sept 2008 Var YoY Net Revenue % 1, , % Cost of Sales (319.1) (478.8) +50.0% (1,096.7) (1,358.9) -23.9% Gross Profit % , % Operating Expenses (102.0) (137.0) +34.4% (267.5) (327.0) -22.3% Other Income (Operating Profit) % (4.5x) % (2.7x) Other Income (Expenses) 5.5 (25.0) % (23.60) (46.7) -97.8% Profit Before Tax % % Income Tax 20.4 (42.0) % 14.4 (6.9) % Net Income before Minority Expenses (100% basis) % (2.7x) % (2.6x) Minority Interest (24.1) (68.6) % (25.6) (203.6) % Net Income after Minority Expenses % (2.6x) % (2.0x) One off non recurring extraordinary gain from Tata transaction in June 2007 has been excluded from year to date September 2007 net income for apple to apple comparasion process with year to date September

18 Average Selling Prices (ASP) The average FOB realized selling price was US$81.8 / ton in Q3 2008, resulting in an increase in 9M 2008 FOB average realized price to US$70.5 / ton as compared to US$44.0 / ton in FY Weighted Average Selling Prices (in US$ per ton) Q Q Q M 2008 Prima $59.3 $59.8 $144.3 $158.8 $111.6 Pinang $48.9 $73.6 $82.5 $106.9 $88.0 Melawan $35.8 $44.5 $51.7 $47.5 $48.0 Senakin $48.3 $52.4 $88.4 $109.1 $87.1 Satui $44.0 $59.5 $80.2 $78.9 $71.3 Batulicin $47.2 $53.5 $95.0 $96.9 $78.8 Sales Destination as of December 2007 Asian Countries (84%) ~ Power Generation ~ Steel Mils & Others American & Other Countries (9%) ~ Power Generation ASPs (exc. Ecocoal) $45.9 $61.6 $75.2 $84.2 $71.6 Ecocoal $21.1 $28.3 $38.4 $31.3 $32.4 ASPs $44.0 $57.9 $71.6 $81.8 $70.5 Note: Average Selling Prices is based on FOB price before the government royalty Europe (7%) ~ Power Generation The average FOB realized price has continued to increase to US$70.5 / ton, due to the recent the global increases in thermal coal prices 18

19 Production Cash Costs Production Cash Costs (1) (in US$ per ton) FY06 FY07 9M07 9M08 Bumi KPC Arutmin Fuel Price Net (US$ / litre) Fuel Cost per Ton (US$) Fuel Consumption (litre / bcm) Strip Ratio 9x 9x 9x 10x Cash Margin (2) Note: (1) Calculated by dividing the production cash costs with the companies coal mined (2) Calculated by subtracting production cash costs from average selling price Sangatta Rainfall Composition of Production Cash Costs Contractor Mining 48% Others 2% Fuel Costs 24% Maintenance 12% Labor costs 5% Other materials 5% Equipment Lease, Hire 4% Contractor Mining 41% Others 4% FY M 2008 Fuel Costs 34% Maintenance 10% Labor costs 5% Equipment Lease, Hire 4% Other materials 3% Indonesian Industrial Diesel Oil Prices (mm) Long Term Average (Rp) 12,500 10,000 7,500 Diesel prices have fallen significantly in-line with drop in oil prices 100 5,000 2, /06 3/06 5/06 7/06 9/06 11/06 1/07 3/07 5/07 7/07 9/07 11/07 1/08 3/08 5/08 7/08 9/08 1/05 4/05 7/05 10/05 1/06 4/06 7/06 10/06 1/07 4/07 7/07 10/07 1/08 4/08 7/08 Production cash costs in 9M 2008 has increased in-line with increase in fuel prices and the continuance wet weather, but cash profit margin has substantially increased to US$35.5 / ton (58% increase) due to exponential increase in realized prices 19

20 Dividend History Steady since 2005 Year Total Share Dividends per Share Remarks (Rp) Interim Final ,404, Final 16.0 Paid on 25 June % paid on 2 July 2007, 2007 Interim 66.0 * balance 50% paid on 5 Sept' Final 45.0 Payable on 7 August % max of net income subject to shareholder approval * Represent 30% Dividend in XO gain of $472 million from Tata transaction in June

21 Recent Awards & Recognition 1. Ranked 2nd out of Forbes Global 2000 winners in 2008 with a total 1 year return of 361% 2. Ranked the most popular listed company in IDX in 2007 by Investor Magazine, Indonesia 3. The fastest growing company in Asia, coal & combustible fuels sector, by Platts Top 250 Global Energy Companies 4. 2nd fastest growing company in Asia by Platts. Top 250 Global Energy Company in th out of Top 250 energy companies in Asia & ranked in Top 250 energy companies in the world by 2007 Platts Top 250 Global Energy Company 6. One of the Best Public Companies based on MVA concept for its success & achievement of market value added by SWA Magazine The Value Creator Award Ranked Best Managed Natural Resource Company in Asia and amongst the Top Six Best Investor Relations by Finance Asia Magazine in July Excellence in Growth Award 2008, from Frost & Sullivan (A Global Growth Consulting Company) in October Ranked 3rd in Good Corporate Governance in Indonesia by Asset Magazine, Hongkong

22 Recap of Fundamental Strengths of Bumi Diversified Coal Mining Operations and Products: Competitive portfolio of high demand products from multiple mine sites Low Cost Coal Producer: Provides ability to weather coal cycles High Quality Customer Base with Contracts In-Place: Provides pricing and volume stability International Contractors and Marketing Agents: Facilitates efficient production and competitive marketing Stable and Established Concession Structure: Significant incentives for continued government support Substantial Reserves and Resources: Strong potential for upside and production growth Strong Revenue Growth and Stable Profitability: Expanding cash flow profile Experienced Management Team: Proven track record of expanding production platform and profitability Natural Hedge with Dollar Denominated Revenues and Expenses: Provides natural hedge against currency fluctuations Strategic Partnership with Tata Power: Provides synergy and counterbalance to management 22

23 PT Bumi Resources Tbk APPENDIX Share Charts Forward Strategic View Next Three Years 23

24 Comparative Return The Comparison of Bumi Share to Other Coal Companies in US, Australia, Europe and Asia during 2008 The above graph shows that during 2008 share price of international coal companies in general, including Bumi, volatile significantly and was downtrending during the last month The above graphs conclude that Bumi was not the ONLY coal companies which experienced a drop in share price. The problem that might be triggered by a fall in international coal price 24

25 BUMI vs XSTRATA 25

26 ASIA 26

27 ASIA con t 27

28 Australia 28

29 Australia con t 29

30 Europe 30

31 USA 31

32 Trend of Mining Companies Based on the above graph, movement of share of mining companies in the period of 2 January 2007 up to 15 December 2008 was having similar pattern 32

33 Trend of Mining Companies con t The above graph describes that there are 5 (five) global mining companies whose share price in the end of period which is not worse than its share price in the beginning of period. The Company (BUMI) is one of them 33

34 Trend of Mining Companies con t The above graph described that share price of large mining companies in the world is undergoing a sharp fall, making the price in the end of period is lower than that in the beginning of period 34

35 Forward Strategic View Next Three Years 1. In your opinion, what possible changes will occur in sector of technology, political & legal, economical, social & cultural, and Market sectors in the next three years? Technology Generally the business of production of electricity from thermal coal is very mature. However investment improvements are always occurring. The major trend is for higher efficiency boilers that result in more electricity from the same coal burner. This reduces the cost of the electricity produced and also reduces the carbon dioxide footprint. The biggest new technology for environmental protection is carbon sequestration or more simply put underground CO2 storage of power station emission. In the mining of the coal at sites, higher fuel efficiency trends and excavators will result in low fuel consumption and lower carbon exhaust emission per tonne of coal mined. This is a happy marriage of cost reduction and environmental protection. Political A New mining Act has been promulgated; era of increasing controls is imminent. Elections and changes in government raises hopes of more responsible administration Dynamics of central authority vs regional autonomy in the mining sector continues to be ambiguous, hopefully, there will be clarity We see evidence of increasing focus on governance and transparency, principled management and best practices. - There are signs of increasing nationalism, And prospects of increasing burdens on corporate to assist government to fulfill social promises Legal We see a period of increasing regulation and controls, continuing ambiguities between the exercise of Central Authority and regional autonomy and hopeful of a resolution to the long unsettled royalty and VAT issues. The new mining law just announced has to be interpreted and complied with the implementing regulations are in process, the law requires the regulating authority DEMR to draft and socialize implementing regulations within 1 year. Accompanying social pressures and community obligations over and above legal requirements can be expected. 35

36 Forward Strategic View Next Three Years con t Economic We believe the present global crisis would end and we can raise equity and debt at historically available prices. Worldwide expectation of a consumer - led recovery in US and Europe would have a pull - through effect in the developing world including Indonesia. Worldwide increase in wealth most importantly in the developing world will result in significant increase in energy demand such as electricity. The only readily available, commercial technology to meet this demand in the time frame is coal fired power stations. Indonesia growth expectation will exceed 5% pa compounded as this is the minimum necessary to prevent social unrest. If growth rate is higher as we expect, this presents great opportunities directly for our sector (increased electricity consumption leading to higher coal demand) Basic demographics are positive, a population which is politically aware and more likely to hold authority accountable to deliver on election promises with an activist media free from censorship Economy becoming increasingly resilient to business cycles. Therefore, companies with ability to strengthen their competitive edge, including costs, are likely to be rewarded by the market. Social/Cultural Major upgrades in general economic status would lead to higher public expectations Companies with Good Governance practices will be sought out by discerning ethically conscious stakeholders. Companies that operate in a socially responsible manner would be best positioned to become supplier of choice, customer of choice, employer of choice and preferred stock. And management of CSR, environment, safety, hazard, greening will assume greater importance in the various market places (be it labour, community, product, suppliers or customers etc) There will be an increasing pressure on corporate to be transparent, caring and sensitive as opposed to merely generating more profit to go that one step further than minimum legal compliance 36

37 Forward Strategic View Next Three Years con t Market We expect strong organic growth in the thermal coal sector coupled with a significant step change growth in response to power station construction in South and South East Asia, most notably, China, India and Indonesia. Bumi with its enormous resource base in excess of 10 billion tons is ideally placed to support the domestic electricity system and export Bumi does not perceive significant conflict or competition between domestic and export supply as is evidenced by its predicted production output in excess of 110 million tons by 2012 ( from a level of a mere 30 million tons in 2003 and 60 million tons forecast in 2009). 37

38 Forward Strategic View Next Three Years con t 2. How is the competition situation that will be faced in the next 3 years? a) With massive growth in power demand and resultant growth in coal required it will continue to be a suppliers market. And whilst in the long run competitive positioning is crucial, in the short run increasing production capability will pose a greater industry challenge. Bumi not only has an intrinsically strong competitive position but also has the plans and resources to implement its expansion capacity exponentially. This is arguably uniquely positioned in the world - leveraging off, both, superior natural resource and implementing human and technical r resource to international best practice. b) In parallel, unmatched cost competitiveness as in Bumi will further strengthen Bumi s operating margin, irrespective of any business cycle. c) Because of Bumi s market size, product quality and reliability we are normally sought out by the blue ribbon power utilities for long term partnering, particularly, those embarking on multi billion dollar ultra mega power projects and this is increasingly counting for a much more significant percentage of our product portfolio. d) We expect in the medium term that the coal market will be production contrained rather than market driven i.e. demand constrained meaning that the primary focus of the business will be supplying customers from a constrained infrastructure rather than pushing excess product into a thin market at the expense of competitors. e) In fact this trend will lead to product differentiation and preferred suppliers with preferred products will be able to command a premium as Bumi achieved in Globally as markets become oversupplied and prices fall so called bear markets suppliers must discount to obtain market share. This results in commoditisation in all products tend to be treated the same. However in bull markets where demand exceeds supply and prices are rising better quality, reliability and services command a premium. This results in product differentiation. In this environment all suppliers win but the premium suppliers like BUMI win proportionately more vis-a-vis their standard vanilla competitors. 38

39 Forward Strategic View Next Three Years con t 3.What is your view toward customers behavior in the next 3 years? There will be continuing concerns about ability to increase supply capacity, hence, we see clients competing against each other to lock in supply security via long term arrangements classically this is done by long term contracts or taking equity positions in suppliers viz upstream integration power stations buying coal mines, coal miners buying production security by acquiring mining operators and operators buying more coal mines will be increasingly evident. We believe that there would be greater direct negotiations between the coal producers and the ultimate power utilities. The position of the average trader is likely to run the risk of being eroded. 4. What do you think makes your company different, unique that you could surpass your competitors? What are your strong points? a) Abundant natural resource, only partially explored, unique geology and size b) Geographical location, globally the best proximity to India and China c) Unique self owned infrastructure provides all round competitive edge, self reliant d) Best practice experienced human resource : proven track record of expanding production platform and profitability e) Diversified Coal Mining Operations and Products: a competitive portfolio of high demand products from multiple mine sites f) Low cost coal producer provides the flexibility to weather coal cycles g) High quality customer base with Contracts-in Place : provides pricing and volume stability h) International Contractors and Marketing Agents : Facilitates efficient production and competitive marketing i) Stable and Established Concession Structure : Significant incentives for continued government support j) Substantial Reserves and Resources : almost 3 billion tonnes and 7 billion tonnes respectively strong potential for upside and production growth k) Natural Hedge with Dollar Denominated revenues and Expenses: Provides a natural hedge against currency fluctuations l) Strategic Partnership with Tata Power: provides synergy and counterbalance to management. 39

40 Forward Strategic View Next Three Years con t 5. What is your Company s strategy in the next three years? a) Grow coal production from 60 m tons in 2009 to 111 m tons in 2012 Organically and inorganically through Acquisitions of additional resource b) Vertical integration by acquisition of key suppliers including mining operators c) Become a dominant supplier of power station eco/ lignite coal domestically and in the high growth emerging markets of China and India with a window into the energy sector d) Diversify business portfolio and revenue mix by entering into allied areas in our core competencies in the mining sector, such as copper, gold, iron ore, lead, zinc and coal bed methane gas in the medium term e) Position ourselves as the national mining resource company in Indonesia f) Deliver performance and superior returns to our shareholders 40

41 THANK YOU Disclaimer: Forward-Looking Statements This communication contains forward-looking financial projections and estimates with respect to the future operations and performance of PT Bumi Resources Tbk and its affiliates. Investors and security holders are cautioned that forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the company. Such risks and uncertainties could cause actual results and developments to differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those estimated by the forward-looking statements include, but are not limited to, fuel prices and international coal demand and supply position. Neither PT Bumi Resources Tbk. or any other person assumes responsibility for the accuracy and completeness of the forward-looking statement in this communication. The forward-looking statements speak only as of the date of this communication. PT Bumi Resources Tbk is under no duty to update any of the forward-looking statements after this date to conform such statements to actual results or to reflect the occurrence of anticipated results or otherwise. 41