PT BUMI RESOURCES - PDF document

Presentation on theme: "PT BUMI RESOURCES"— Presentation transcript

1 1 PT BUMI RESOURCES Tbk WORLD CLASS
1 PT BUMI RESOURCES Tbk WORLD CLASS ENERGY OPERATOR Nomura Asian High Yield Corporate Day 2020 Virtual, 30 October 2020 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

2 - looking statements are subject
- 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

3 that could cause actual results
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 - lookin

4 g statement in this communicatio
g 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

5 . Disclaimer 2 Agenda 1. Over
. Disclaimer 2 Agenda 1. Overview • Ownership S tructure , Production, Reserves & Resources • Top Awards & Achievements • Safety Record – Best in Class 2. 1H’2020 OperMPionMl HighlighPs & Performances 3. Marketing 4. DMO 5. Valuation • TERP – Rights Issue - August 2017 7. BUMI Reborn - Transformation • Restructuring Status • Cash Control – KP

6 MG Monitoring Accountant • Str
MG Monitoring Accountant • Strong Governance • Strengthened Management – New Boards & Commissioner 8. Corporate SociMl ResponsibiliPy (“CSR”) 3 PT BUMI Resources Tbk . OVERVIEW 4 Overview • One of the largest coal exporters globally  KPC is the largest export coal mine in the world • Leading natural resources group and the largest thermal coal producer in Indonesia (KPC

7 and Arutmin ) together commanding a
and Arutmin ) together commanding a dominant share of ca 20% of Indonesia coal production  Coal production reached 86.3 million metric tonnes in 2019 • 2.69 billion metric tonnes of marketable coal reserves and 11.03 billion metric tonnes of coal resources (excluding reserves) – this is likely to increase as we explore additional areas.  High potential for reserves expansion; KPC only

8 partially explored • Ideally located
partially explored • Ideally located to serve important markets throughout Asia and Europe • Open cut mining with captive coal processing facilities • Dedicated infrastructure including coal loading terminals, port facilities, captive power plants and coal gives unmatched competitive advantage • Segmented coal and non - coal businesses - BUMI will concentrate on increasing thermal coal dominance - BRMS i

9 s a listed entity with an exclusive focu
s a listed entity with an exclusive focus on metals industry 5 Bumi Ownership Structure Becoming a Diversified Mining Resources Company Gorontalo Minerals – Gold & Copper Mining ⠀in operation stage) Citra Palu Minerals – Gold Mining ⠀in operation stage ⤀ Dairi Prima Minerals – Zinc ,Lead ⠀in operation stage) 49% 80% 96.97% KPC 51% Arutmin Gallo Oil (Jersey⤀ –

10 Oil Production ⠀in exploration stage
Oil Production ⠀in exploration stage) IndoCoal Resources ⠀Cayman⤀ Ltd 70% 100% *90 % Effective 23.16% Effective 84.55% Darma Henwa – Contract Mining ⠀associated company⤀ Pendopo Energi Batubara – Coal ⠀in exploration stage) PT Bumi Resources Minerals Tbk 35.73 % 51% IndoCoal KPC Resources ⠀Cayman) Ltd (Minerals/Non - Coal) Coal, Oil & Gas PT BUMI RESOURCES TBK

11 . * - BUMI ⠀70%) - PT Gre
. * - BUMI ⠀70%) - PT Green Resources (20 %) : subject to approval from the relevant institutions, including but not limited to ESDM, BKPM and GMS 6 (in Million Tonnes ⤀ Coal Produced / Mined 2001 – beyond *Exclude Pendopo 7 0 20 40 60 80 100 120 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 86,5 83,7 83,3 86,3 ⠀A⤀ Coal

12 Reserves & Resources – The Largest
Reserves & Resources – The Largest in Indonesia • Reserves are now 2.69 billion metric tonnes *JORC report as at end of March 2018 8 in million tonnes KPC: 1.178 7.055 Arutmin*: Bituminous Coal 44 528 Sub-Bituminuos Coal 169 1.138 213 1.666 Pendopo: 1.306 2.311 TOTAL

13 2.697 11.032 Coal Reserve
2.697 11.032 Coal Reserve Coal Resource 9 Top Awards & Achievements PT Bumi Resources Tbk . (“BUMI” or “Company”) has been conferred the Top Leader Award on CSR Commitment 2020 and the 4 Stars for the Company from National Committee of Governance Policy (KNKG), the Indonesian CSR Society, and Top Business Magazine. BUMI's business unit, KPC obtained Gold certificate for the Environm

14 ental Performance Rating Program (PROP
ental Performance Rating Program (PROPER) from East Kalimantan Governor in September 2020 Top Awards & Achievements Safety Record – Best in Class 1996 – June 2020 KPC Arutmin LTIFR : Lost Time Injury Frequency Rate 11 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1- 2020 No. LTI 8 4 5 3 3 13 3 6 1 7 3 1 4 3 2 3 0 1 8 5 4 No. LTI-FR 0,97 0,41 0,

15 48 0,24 0,18 0,61 0,12 0,27 0,04 0,23 0,
48 0,24 0,18 0,61 0,12 0,27 0,04 0,23 0,1 0,03 0,09 0,09 0,08 0,14 0,00 0,03 0,23 0,16 0,26 0 0,2 0,4 0,6 0,8 1 1,2 0 2 4 6 8 10 12 14 No. LTI 39 36 35 35 25 23 22 19 18 31 22 14 12 32 20 17 15 14 10 13 8 9 14 11 2.86 2.59 2.43 2.31 1.51 1.36 1.11 0.93 0.76 0.80 0.50 0.32 0.23 0.56 0.34 0.26 0.20 0.18 0.13 0.16 0.10 0.12 0.18 0.14 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 0 5 10 15 20 25 30 35 40 45 1996 199

16 7 1998 1999 2000 2001 2002 2003 2004 200
7 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTIFR ⠀per 1,000,000 Manhours) No. of LTI LTI LTIFR LTIFR Threshold 2019 : 0.11 Prima Nirbhaya/NOSA Implementation FPE & New Golden Rules Implementation 39 36 35 35 25 23 22 19 18 31 22 14 12 32 20 17 15 14 10 13 8 9 14 11 5 2.86 2.59 2.43 2.31 1.51 1.36 1.11 0.93 0.76 0.80 0.50 0.32 0.23 0.56 0.34

17 0.26 0.20 0.18 0.13 0.16 0.10 0.12
0.26 0.20 0.18 0.13 0.16 0.10 0.12 0.18 0.14 0.13 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 0 5 10 15 20 25 30 35 40 45 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD 30 Jun'20 LTIFR ⠀per 1,000,000 Manhours) No. of LTI LTI LTIFR LTIFR Threshold 2020 : 0.11 Prima Nirbhaya/NOSA Implementation FPE & New Golden Rules Implementation Guidance 202

18 0 12 1 Subject to extension of min
0 12 1 Subject to extension of mining license and quota revision. 2 Royalty and commission not included. PT BUMI Resources Tbk . 1H 2020 Performance 13 First Half 2020 Update Coal Markets: • Although Coal Market continued the low prices in June, forward curves and sentiment hinted at a recovery by September to round US 55/ton. July prices rise slightly to US% 51.83 MTD with GCNEWC Q4 - 20 SWAP’s t

19 rading at US$ 58.40/ton. Global uncertai
rading at US$ 58.40/ton. Global uncertainty still weighs heavily on spot thermal coal prices, with a sharp fall experienced in August. CCOW status: • BUMI expects formal confirmation from the Ministry of Energy and Mineral Resources on conversion of PT Arutmin’s mining lease from CCoW to IUPK ⠀ Izin Usaha Pertambangan Khusus ⤀ soon. Operations 2020: • Realized price dropped by 12% to $ 46.9/ to

20 n ⠀from $53.2/ ton in 1H19⤀ and matc
n ⠀from $53.2/ ton in 1H19⤀ and matched the fall in gross revenue. Sales volume was flat at 41.2 MT of which KPC sales at 29.5 MT were 2% lower compare to 1H 2019, and Arutmin at 11.6 MT or increased by 2% YOY . • Overall production for 1H 2020 was slightly down compared to Q1 2020 at 20.2 MT and Sales were also slightly down at 19.7MT. KPC decreased production to 14.5 MT, and Arutmin produced 5.7 MT in 1H 2020. S

21 ales were down with KPC selling 14.3 MT
ales were down with KPC selling 14.3 MT and Arutmin selling 5.3MT. • Production Cash Costs overall in 1H 2020 were reduced further to US$ 30.35/ton from US$ 34.33/ton in Q1, due to low oil prices and positive negotiations with contractors and suppliers. Production Cash Costs decreased to US$ 32.80/ton from US$ 36.17 in Q1 2020 for KPC, and US$ 24.14/ton from US$ 29.70/ton for Arutmin . 14 BUMI’s Operational h

22 ighlights (Unaudited⤀ 15 ⠀10
ighlights (Unaudited⤀ 15 ⠀100% Consolidated) 1. Subject to reconciliation process. 2a . Loss due to washing at Senakin mine 2. Excluding inpit inventory. BUMI’s OperMPionMl PerformMnce (Unaudited⤀ 16 BUMI’s OperMPionMl PerformMnce (Unaudited⤀ 17 BUMI’s OperMPionMl PerformMnce (Unaudited⤀ 18 TOTAL PLN Receivables (Unaudited) 19 BUMI’s AverMge Selling Pr

23 ices (ASP ) (Unaudited) 20 BUMI�
ices (ASP ) (Unaudited) 20 BUMI’s ProducPion CMsh CosP (US$CP) (Unaudited) 21 Production Cash Costs - 100% Basis Cash cost of Goods Sold/Tonnage (Unaudited⤀ 22 23 Fuel Prices & Sangatta Rainfall PT BUMI Resources Tbk . 1H’20 PerformMnce 24 Bumi’s Financial Highlights (Unaudited ⤀ Current Reporting Standards 25 Bumi’s Financial Highlights (Unaudited ⤀ Consolidated

24 (100% KPC & Arutmin ⤀ 26 Bumi’s
(100% KPC & Arutmin ⤀ 26 Bumi’s Financial Highlights (Unaudited ⤀ Consolidated (100% KPC & Arutmin ⤀ 27 Bumi’s Financial Highlights (Unaudited ⤀ Consolidated and Current Reporting Standards 28 Consolidated : Performance at a Glance 29 Bumi’s FinMnciMl HighlighPs (Unaudited) 30 Bumi’s ConsolidMPed EBITDA (Unaudited ⤀ 31 BUMI Stand Alone Cash Balance and Debt (Unaudite

25 d ⤀ 32 BUMI Indebtedness As of 3
d ⤀ 32 BUMI Indebtedness As of 31 March 2020 (Unaudited) 33 34 PT BUMI ResourceS Tbk. KPC’s FinMnciMl HighlighPs (UnMudiPed) 35 KPC’s OperMPionMl HighlighPs (UnMudiPed) 36 KPC’s PIN ReceivMbles (UnMudiPed) 37 38 PT BUMI ResourceS Tbk. AruPmin’s Financial Highlights (Unaudited⤀ 39 AruPmin’s Operational Highlights (Unaudited) 40 AruPmin’s PLN Receivables (Unaudited⤀

26 41 Indonesia 32% China 22%
41 Indonesia 32% China 22% India 18% Japan 9% Philippine s 5% Taiwan 5% Malaysia 5% Thailand 2% Brunei 1% South Korea 1% Pakistan 0% Hong Kong 0% Italy 0% Vietnam 0% Cambodia 0% Chart Title Source: Internal Report Combined Coal Sales 1H - 2020 BY DESTINATION • Our Coal major consumption is Domestic (Indonesia), around 13 m

27 illion tonnes . It is expected
illion tonnes . It is expected that there will be a continuing increase of demand for coal . • Indonesia is one of the world’s largest thermal coal producers supported by quality and significant reserves to meet the world coal demand • Particularly China and India are our major export customers . BY BRAND 42 1H - 2020 1H

28 - 2020 MELAWAN 48% ECOCOAL 1
- 2020 MELAWAN 48% ECOCOAL 17% PINANG 23% SARONGGA 4% KPC 4200 GAR 1% SATUI 4% ART S 2% SENAKIN 1% Chart Title Long Term Coal Demand – a view Source : BP Energy Outlook 2018 Changes 2016 - 2040* by Fuel & Region Primary Energy Demand by Fuel & Region * DIFFERENCES IN THE FUEL MIX ACROSS REGIONS 43 Long Term Coal Demand – a view Source : BP Energy Outlook 2018 Co

29 al Consumption by Region Coal Consumpt
al Consumption by Region Coal Consumption Growth and Regional Contributions GLOBAL COAL DEMAND FLATLINES, WITH FALLS IN CHINA AND OECD 44 Long Term Coal Demand – an independent view Source : BP Energy Outlook 2018 1. The regions accounting for the majority of the growth in global energy demand : China, and India & other emerging Asia – all start with relatively coa

30 l - intensive fuel mixes . 2.
l - intensive fuel mixes . 2. In contrast, the share of coal within India and other emerging Asia is largely unchanged, such that coal demand increases along with overall energy demand . 3. In the ET scenario, ChinM’s energy demand is projected to grow by just 1 . 5 % p . a . , less than a quarter of its growth rate over

31 the past 20 years . ChinM’s
the past 20 years . ChinM’s energy mix also changes significantly, driven by its shifting economic structure and its commitment to move to cleaner, lower carbon fuels . 4. In contrast, renewable energy, together with nuclear and hydro, account for over 80 % of the increase in ChinM’s energy demand out to 2040 . Renewables ove

32 rtake oil to become the second
rtake oil to become the second largest energy source in China . Offset by increases in India and other Asia China Slowing 1. Growth in global coal consumption slows sharply relatively to the past, with falls in China and OECD offset to a greater or lessor extent by increasing demand in India and other emerging Asia . 2. Much of that

33 slowing is driven by China,
slowing is driven by China, where coal consumption is broadly flat over the next 10 years or so, before declining thereafter . Even so, China remains the world’s largest market for coal, accounting for 40 % of global coal demand in 2040 . 3. In contrast, coal demand within India and other emerging Asian economies increases ,

34 as these economies continue t
as these economies continue to industrialize and electrify their economies . India is the largest growth market for coal, with its share of global coal demand more than doubling from a little over 10 % in 2016 to around a quarter by 2040 . Comment : Banks increasingly reluctant to fund coal related projects  hence supply can be challengin

35 g over medium - term and coal price
g over medium - term and coal price could continue to be bouyant . : Trend as of June 2018  a) 19 Banks have stopped direct financing to new coal mines projects worldwide b ⤀ 16 Banks have stopped direct financing to new coal plants projects worldwide 45 46 International Coal Prices Forward Coal

36 Price 2020 : Strong 47 B
Price 2020 : Strong 47 BUMI Shareholders 48 No Investor Name (%⤀ 1 HSBC - FUND SVS A/C CHENGDONG INVESTMENT CORP - SELF 22.11% 2 PT DAMAR REKA ENERGI 3.42% 3 BAMBANG SIHONO 3.31% 4 CREDIT SUISSE AG SG BRANCH S/A CSAGSING - LHHL(LHHL - 130M) - 2023334064 2.43% 5 CREDIT SUISSE AG SINGAPORE BRANCH - 2023334000 2.25% 6 VALBURY SEKURITAS INDONESIA, PT 2.08% 7 RAIFFEISEN B

37 ANK INTERNATIONAL AG, SINGAPORE BRANCH S
ANK INTERNATIONAL AG, SINGAPORE BRANCH S/A LONG HAUL HOLDINGS LTD 1.88% 8 NSL - CLIENT SEGREGATED A/C 1.6% 9 BANK OF SINGAPORE LIMITED 1.27% 10 CITIBANK LONDON S/A GLENCORE INTERNATIONAL AG 1.2% 11 Others 58.45% HSBC - FUND SVS A/C CHENGDONG INVESTMENT CORP - SELF PT DAMAR REKA ENERGI BAMBANG SIHONO CREDIT SUISSE AG SG BRANCH S/A CSAGSING - LHHL(LHHL - 130M⤀ - 2023334064 CREDIT SUISSE AG SI

38 NGAPORE BRANCH - 2023334000 VALBURY S
NGAPORE BRANCH - 2023334000 VALBURY SEKURITAS INDONESIA, PT RAIFFEISEN BANK INTERNATIONAL AG, SINGAPORE BRANCH S/A LONG HAUL HOLDINGS LTD NSL - CLIENT SEGREGATED A/C BANK OF SINGAPORE LIMITED CITIBANK LONDON S/A GLENCORE INTERNATIONAL AG OTHERS Data is as of 30 June 2020 DEBT RESTRUCTURING – START 2013 – � END 2017 – FLOW CHART 49 CIC debt Restructuring - Master Deed dated 8

39 October 2013; amended and restated 2
October 2013; amended and restated 28 Jan'2014 Debt to Asset settlement - KPC 19% to CIC Rights Issue IV - Debt Reduction Debt Moratorium - Singapore PKPU Registration to the Commercial Court by Creditor October 2013 July 2014 30 June 2014 24 November 2014 6 April 2016 Commercial Court Decision on Temporary Suspension of Debt Payment Obligations (“PKPU Sementara”)

40 Commercial Court Decision on the T
Commercial Court Decision on the Temporary PKPU to ⠀Permanent) PKPU Creditors Meetings and Voting for the Composition Plan Ratification Proceeding by the Panel Judge on the case 36/ Pdt.Sus - PKPU/2016/PN.Niaga.Jk t.Pst. Homologation to the Composition Plan by the Panel Judge on the case 36/Pdt.Sus - PKPU/2016/PN.Niaga.Jk t.Pst. 25 April 2016 9 June 2016 9 November 2016 28 Novem

41 ber 2016 28 November 2016 Extraordin
ber 2016 28 November 2016 Extraordinary General Meeting for Shareholder approval for Rights Issue and MCBs 7 February 2017 June 2017 11 December 2017 July 2017 Annual General Meeting for Shareholder approval for New Board Appointment First Tranche of payment $66.38 m 10 April 2018 Amended Articles June 2018 8 June 2019 Annual General Meeting for Shareholder approval for Ar

42 ticles of Association Total US$327
ticles of Association Total US$327.82 M already paid from: 10 April 2018 10 July 2018 15 Oct 2018 8 Jan 2019 10 Apr 2019 9 July 2019 15 Oct 2019 8 Jan 2020 8 April 2020 8 July 2020 Completion of Rights Issue + MCB ⠀issued to public and lenders) Effective Date: Issuance of New botes, CVw’s, MCB’s and shares to Senior Secured Lenders Extraordinary General Meeting for Sh

43 areholder approval for Articles of A
areholder approval for Articles of Association 27 March 2018 2017 – US $ 4 . 3 BN DEBT REDUCED TO US 1 . 7 BN + 0 . 6 BN MCB’s – US $ 327 MN PAID TILL JULY 2020 ⠀ A DEBT + INTEREST) – PRESENT DEBT : EQUITY 4 : 1  TARGET 0 . 3 : 1 (IN STEPS⤀ Tranche A Tranche B Tranche C USD 600 million USD 600 million

44 USD 406 million Interest up to 7.5%
USD 406 million Interest up to 7.5% p.a. total interest ⠀cash and accrued⤀ determined based on the benchmark price. 8% p.a. ⠀PIK Interest⤀. 9% p.a. ⠀PIK Interest⤀. Cash interest due and payable on each interest payment date. Payable if cash is available under the Cash Waterfall. due and payable on each interest payment date. Accrued interest shall be capitalized and payable in full o

45 n Maturity to the extent not paid
n Maturity to the extent not paid on each interest payment date. To the extent not paid, shall be capitalized and payable in full on Maturity Interest to the extent not paid shall be capitalized and payable in full on Maturity of the Tranche C Facility. Maturity Payments Contingent Value Rights Amount: US$ 50 million Amount: US$ 50 million 5 years from Effective Date Per cash availability prio

46 ritized under the Cash Waterfall Trigg
ritized under the Cash Waterfall Trigger for Settlement: In the event that the average Benchmark Price is higher than US$70/mt for a period of 18 consecutive months after the Effective Date N/A New Facilities 50 (MANDATORY CONVERTIBLE BONDS - “OWK”) OBLIGASI WAJIB KONVERSI  Interest ⠀Coupon) : 6 , 0 % p . a . , paid monthly in cash pursuant to the Cash Waterfall to the

47 extent there are sufficient fun
extent there are sufficient funds or deferred and payable on maturity .  Maturity : 7 years from the OWK Effective Date  Conversion Price : • 1 st – 2 nd yr : 30 % premium to Reference Price • 3 rd yr : Whichever lower of : (i) Reference Price ; or (ii⤀ 140 % of Volume Weighted Average Price (“VWAP”) for the la

48 st 6 months of Year 2 . •
st 6 months of Year 2 . • 4 th yr : Whichever lower of : (i) Reference Price ; or (ii) 140 % of VWAP for the last 6 months of Year 3 . • 5 th yr : Whichever lower of : (i) Reference Price ; or (ii) 125 % of VWAP for the last 6 months of Year 4 . • 6 th yr : Whichever lower of : (i) Reference Price ; or (ii

49 ) 125 % of VWAP for the last
) 125 % of VWAP for the last 6 months of Year 5 . • 7 th yr : Whichever lower of : (i) Reference Price ; or (ii) 125 % of VWAP for the last 6 months of Year 6 .  Maturity : Mandatory conversion at the arithmetic mean of the daily IDR VWAP of BUMI shares for the period of 6 months ending on the Business Da

50 y before the OWK Maturity Date
y before the OWK Maturity Date .  Subject to shareholders approval and government regulations  Reference price : Rp 926 . 16 per share  OWK Holders are entitled to convert their OWK : • 1 st – 3 rd yr : Maximum 25 % of OWK outstanding value . • 4 th – 7 th yr : conversion of OWK may be done up to 100 % .

51 51 Approximately 1.5bn shares con
51 Approximately 1.5bn shares converted from OWK so far. Improved Corporate Governance - Strengthened Management 52 Scope of Work of KPMG - Monitoring Accountant 53 The combination of improved financial position and improved governance put the Company in a position to benefit from improvement of coal industry in the future RSM advisory conduct Independent R

52 eview of GCG practices in BUMI, includi
eview of GCG practices in BUMI, including: • Compliance with Standard ASEAN Corporate Governance Scorecard • Compliance with OJK rules and regulations • International GCG standards (Global Better Practices ⤀ • S&P is in process r angking BUMI on ESG (Environmental, Social and Governance⤀ Improved Governance • Shareholder Representatives i n Coal Subsidiaries Since 2007 •

53 Induction of 3 Directors from
Induction of 3 Directors from CIC & CDB since June 17 • Induction of 5 new commissioners since Jun’ 17 from CIC , new debt holders, and eminent local personalities • Lenders have appointed KPMG as Cash Monitoring Accountant for : – Cash Waterfall – Cash flow forecast and actuals, disbursements & bank account – Controls over

54 related party transactions & co
related party transactions & contracts – Control Over Disbursements � US $ 500 million – Review working capital & funding facilities • No capital related decision without Full Board Consensus • BUMI amongst the “BesP” on CSR, HSE, Community Development, Reclamation, Replanting, Conservation, & Social Initiative • BUMI parent ha

55 s its own proactive CSR Progra
s its own proactive CSR Program • KPC is recognized as the “BesP” on Sustainability by The Indonesian Government • Unmatched Safety Record • Bumi website revamped • BUMI Winner Award for Risk Technology at ASEAN Risk Awards 2019 • BUMI Winner for The Best Business & Human Rights 2019 in Mining, Metal, Oil and Gas In

56 dustry and Top Three on Genera
dustry and Top Three on General r angking of 100 Public Listed Companies in Indonesia Strong Governance 54 PT BUMI Resources Tbk . STRENGTHENED MANAGEMENT 55 Company Members – Board of Commissioners Commissioner Jinping Ma Commissioner Independent Commissioner Thomas M. Kearney Kanaka Poeradiredja Anton Setianto S. Independent Commissioner Y.A Didik Cahyanto

57 Independent Commissioner 56 Jianmin
Independent Commissioner 56 Jianmin Bao Commissioner President Commissioner Rosan Perkasa Roeslani Company Members – Board of Directors Andrew C. Beckham Director Director Independent Director & Corporate Secretary R.A. Sri Dharmayanti Dileep Srivastava Saptari Hoedaja President Director 57 Nalinkant A. Rathod Director Adika Nuraga Bakrie Director Director Ashok Mitra

58 Director Maringan MIH Hutabarat
Director Maringan MIH Hutabarat 58 Company Members – Board of Directors Director Linjun Zhang Ying Bin Ian He Director Director Xuefeng Ruan ⠀continue) 59 PT BUMI Resources Tbk . APPENDIXES 61 Location 100 miles north of Balikpapan in East Kalimantan KPC Coal Agreement Area Kaltim Prima Coal Asam Asam Satui Batulicin Senakin North Pulau Laut Coal Terminal

59 62 Location Arutmin Indonesia L
62 Location Arutmin Indonesia Location Pendopo Energi Batubara Barge Port MUSI RIVER PT. PEB PALEMBANG CITY PT. PENDOPO ENERGI BATUBARA Tj. Api - Api Port Muaraenim City Barge Port Palembang Port 63 As of 8 July 2020 Corporate Social Responsibility Update Update on BUMI CSR Programs 65 No CSR Program Information Outstanding/Status 1. 100 Digital Library for Schools in

60 Bekasi , Bogor and Tangerang . �
Bekasi , Bogor and Tangerang . • First batch production of 24 ⠀out of 44⤀ digital libraries has been completed. • All product has passed quality control stage. • Delivery to schools has been started in Bekasi area, on 30 June and still on going. • 4 schools in Bekasi has received product utilization training. • Delivery product of first batch will be completed in mid July 2020. • Pr

61 oduct utilization training will be comp
oduct utilization training will be completed in August 2020. • Second batch production will be started in August 2020. 2. Mass Circumcision for Community in Bekasi for 100 Children. The project is already done in March 2020. Final report from our partner ⠀Hermina Galaxy Hospital) has been submitted on end of June and currently being reviewed. 3. Cataract Surgery for Community in Bekasi For 40

62 Patients. The project is already do
Patients. The project is already done in June 2020. Our partner ⠀Hermina Bekasi Galaxy Hospital) is now preparing the documents for final report. Update on BUMI CSR Programs 66 No CSR Program Information Outstanding/Status 4. House Reconstruction in Sigi , Central Sulawesi for Disaster Victims ⠀10 houses) • Procurement of reconstruction material has been completed in April 2020. • B

63 ased on monitoring report from CPM in M
ased on monitoring report from CPM in May 2020, house reconstruction stage has been started - 1 house completed, 4 houses on - going construction, and 5 houses have received construction material. • The project will be completed in August 2020. • CPM will monitor the completion of the project. 5. Waste Management Program in Bekasi As Covid - 19 barrier, activities carried out in April, May and June wer

64 e more about strengthening community ca
e more about strengthening community capacity through online discussions For Q3, the project will focus on: • Strengthening the role of the existing Waste Bank institutions in supporting waste management activities on a wider scale. • A rrangement of river bank cleaning program of Kali Bekasi . • Accelerat ing the making of demonstration plots of waste management and group processed products. Demo

65 nstration plot will be used to m aggot
nstration plot will be used to m aggot cultivation compost processing , and bi o cyclofarming on each village . Update on BUMI CSR Programs 67 No CSR Program Information Outstanding/Status 6. Cleft Lips and Palate Surgery Program • The project has been started in June 2020 • To date, there are 16 patients ⠀out of 50⤀ who already received surgery treatment. • The project will cover pati

66 ents in Bekasi , Tangerang and Bogor
ents in Bekasi , Tangerang and Bogor area. • First payment will be made after 25 patients received the treatment. • Project will be completed in September 2020. 7. Personal Protective Equipment ⠀PPE) Donation in Bone Bolango Regency, Gorontalo Province • Donation to handling Covid - 19 at Bone Bolango Regency, Gorontalo Province. • BUMI assisted by PT Gorontalo Minerals ⠀PT GM) and

67 the donation was handed over to two
the donation was handed over to two hospitals and Governor of Gorontalo in 28 May 2020. The project has been completed. Documentation 68 House reconstruction progress and monitoring from CPM representative BUMI digital library production and handover 69 Documentation PPE donation to local referral hospitals and Governor of Gorontalo Reclamation Sequence RECONTOURING TOP SOILING PLANTATION 봠 –

68 1 YEAR 2 YEARS 3 YEARS 5 YEARS
1 YEAR 2 YEARS 3 YEARS 5 YEARS 70 Current Condition in Post - Mining KPC area Picture: SSE post - mining area for tourist attractions  PT KPC also gave contribution in support of "One Billion 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.  PT KPC had decided to utilize S

69 angatta S outh E ast (SSE⤀ poo
angatta S outh E ast (SSE⤀ pool as a pool for water tourism. Several activities that have been carried out are , among others: construction of look out and playground, construction of Camping Ground and futsal field, and water distribution design for sheep farming area in D2 Murung . 71 Orang Utan – Pongo Pygmaeus (Borneo⤀ Courtesy from Wawan Setiawan - KPC All those acti

70 vities conducted by KPC concerning envir
vities conducted by KPC concerning environmental conservation are merely aimed to conducP business in responsible mMnner Ms our jMrgon “More ThMn Mining”B KPC hMs Mnd will MlwMys conserve the environment with measurable and organized activities that have positive impacts to the environment and community . Orangutan Relocation Program In relation to biodiversity management, KPC gives serious a

71 ttention to Orangutan ⠀ Pongo
ttention to Orangutan ⠀ Pongo pygmaeus ⤀ relocation program . Orangutan is a special Kalimantan animal which is included in the IUCN Red List categorized as “endMngered”, that sometimes found in the mining activity area . Considering the endemic nature of the animal, KPC is aimed to relocate them from the mining area

72 to a safer place . The rel
to a safer place . The relocations are performed in collaboration with the local Office of Natural Resources Conservation and Borneo Orangutan Survival Foundation (BOSF), a foundation that saves Orangutan and is located in Samboja , Balikpapan . To support the Orangutan relocation project, KPC has a temporary relocation site

73 before the Orangutan is releas
before the Orangutan is released to the wild in Kutai National Park . Since 2010 , KPC has also cooperated with Orangutan Conservation Service Program (OCSP) in composing the “BesP Management PrMcPices” to conduct conservation activities together with all stakeholders in the mining area . 72 Current Condition in Arutmin Reclama

74 tion in post - mining area 73 Plant
tion in post - mining area 73 Plant Nursery Nursery Fast - growing Plants: Acacia mangium, Albazia falcatarienthes dan T rambesi. 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 ), Dur

75 ian ( Durio zibethinus ), Cempedak ( Ar
ian ( Durio zibethinus ), Cempedak ( Artocarpus integer ) dan Mangga ⠀ Mangifera spp). 74 PT Kaltim Prima Coal KPC Environmental Management  Mine rehabilitation  Acid mine drainage control  Water quality management  Hydrocarbon and waste management  Periodic Environmental Management Audit  Certified to ISO 14001:2015 by SGS  Adhitama award for mine environmental manageme

76 nt by Directorate General for Mineral &
nt by Directorate General for Mineral & Coal  Environmental Management ⠀ Green Proper) by State Minister of Environment Indonesia 75 PT Arutmin Indonesia Environmental Management and Monitoring  Revision of some Environmental Impact Assessment (EIA)/ AMDAL  Water quality management  Mine Reclamation  Air quality management  H ydrocarbon and (hazardous) waste management  4R pr

77 ograms  Biodiversity conservation
ograms  Biodiversity conservation  Consistent implementation of environmental management system (SML ) in line with ISO 14001 standard  3 Blue PROPER Award since 2014 from Environmental Ministry for mine sites, no Red  Green PROPER Award from South Kalimantan Govt. for coal terminal NPLCT  Utama (silver) Award in Mining Environmental Management for Batulicin and Asamasam Mine from ESDM. Pr

78 atama (bronze) Award for Kintap and S
atama (bronze) Award for Kintap and Senakin Mine 76 KPC for Sustainable Development  Education and Training  Community H ealth and Sanitation  Community Livelihood  Small/Medium Enterprises Development  Infrastructure Improvements The planning and implementation of the development programs have been carried out by the collaboration between the Local C ommunity , Local G overnment and KPC