PT Adaro Energy

Indonesia Tbk
March 2023
Disclaimer

These materials have been prepared by PT Adaro Energy Indonesia Tbk (the “Company”) and have not been independently
verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy,
fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates,
advisers or representatives accepts no liability whatsoever for any loss howsoever arising from any information presented or
contained in these materials. The information presented or contained in these materials is subject to change without notice
and its accuracy is not guaranteed.
These materials contain statements that constitute forward-looking statements. These statements include descriptions
regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of
operations and financial condition of the Company. These statements can be recognized by the use of words such as
“expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-
looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to
revise forward-looking statements to reflect future events or circumstances.
These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any
offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of,
or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to
purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice.

2
Snapshot of Adaro Energy Indonesia

Lost-time injury Employees Restored Land Countries Served

frequency rate ~12,000 2,596 Ha 16
(LTIFR)
0.12 in FY22

FY22 Operational FY22 Production FY22 Revenue

EBITDA 62.88 million US$8.1 billion
US$5.1 billion

3
Indonesia’s leading integrated energy group
Three pillars supporting sustainable growth
Main operating pillar: pit-to-power integration to provide reliable and affordable energy
Core thermal coal operations in Indonesia supported by the group’s mining services and logistics contractors
Operates coal-fired power plants in several areas in Indonesia
Forest for carbon capture, water treatment and water management

Growth pillar: metallurgical coal and other metals and minerals for green economy
Metallurgical coal operations in Indonesia through PT Adaro Minerals Indonesia Tbk (IDX: ADMR)
Developing green industrial park and aluminum smelter for EV battery ecosystem in Indonesia

Growth pillar: renewable energy to support

Developing green energy sources: hydro, solar, wind
Actively participate in tender of renewable power plants in Indonesia and in the region

5,000
4,067
4,000

3,000
3,184 Solid financial position and strong liquidity
2,000 enable the group to capture growth
1,000 424 opportunities across the energy ecosystem
0
Cash (million US$) FCF (million US$) Capex (million US$)
FY22

4
FY23 guidance
provides cash to invest in EV value chain and renewables

Coal sales (Mt) Consolidated planned strip ratio (bcm/t)

61.34 62-64
59.2 5.1
54.40 54.14 4.7
51.58 4.2
4.2
3.8 3.8

2018A 2019A 2020A 2021A 2022A 2023F 2018A 2019A 2020A 2021A 2022A 2023F

Kestrel Saleable MetCoal Production (Mt) Consolidated Capital expenditure ($m)

6.8 496 489 400 - 600

5.7 5.7 6
5.7 424
4.8

193
169

2018A 2019A 2020A 2021A 2022A 2023F 2018A 2019A 2020A 2021A 2022F 2023F*

*)Exclude expenses related to Kaltara

5
The value of the Green Economy
investment opportunities in Indonesia are substantial

Value at stake
Growing demand for
Green economy
Green minerals
Global demand in 2030
as multiple of 2020-level

$3T 8-10x

Investment in renewable energy by 5-10x

2030
5.7x

3.0x

2.0x

$800B
1.3x 1.3x 1.2x

Manganese Nickel Lithium Cobalt Silicon Copper Aluminum Steel

Global EV sector by 2030 sulfate

6
25GW of green energy needs by 2030
In Indonesia, before accounting for increased demand for processing green minerals

102GW of installed capacity by 2030

7
The Green Economy
Driving demand for Green Minerals

Electric vehicle Wind technology Solar technology

13 28 3 26 13 14 13

AI Ni Li Fe AI Si AI
Aluminium Nickel Lithium Iron Aluminium Silicon Aluminium

30% More Aluminium used in electric vehicles

than internal combustion engines 90 Metallurgical coal needed to produce Steel
for each MW of wind power 7 tons Polysilicon needed for each MW solar PV
plant
tons
35 kg Nickel needed in a single car lithium-ion
battery pack 120 Steel needed for each MW of wind power
4M Aluminium demand from the solar power
sector by 2040
tons tons
8 kg Lithium needed in a single car lithium-ion
battery pack 1 Aluminium in a single wind turbine

ton

8
Adaro is well positioned
to capture these opportunities, now and in the future

Adaro has the necessary skillset… …to capture these opportunities

Strong balance sheet and financial capabilities Operating metallurgical coal mine in Indonesia & Australia

Proven track record in building and Building a 500K tons aluminium smelter
operating large-scale, complex projects

Deep experience and knowledge in Building one of the world’s largest green industrial estates in North
Indonesia’s mining sector Kalimantan, including plans to build several GW of hydro power &
Solar PV plants

Strong ownership and management team Continue developing renewable energy projects within the region, and
with extensive connections one of two consortiums to passed pre-qualification of waste-to-energy
project in Indonesia

Adaro will continue to explore opportunities to serve the green mineral needs of the new
economy

9
The world’s largest Green Industrial Park
Strategically located in North Kalimantan

• Located in a very strategic location in terms of export &

import, and potential supply of mineral sources and
smelting industries

• Total area of 16,000 Ha, consists of 2 (two) large overlay

area – 11,500 Ha and 4,700 Ha

• Potential development of a large-scale public port to

support the industrial logistics

• Huge potential of Hydro Power Plants development to

power the industrial estate

10
Global Demand Outlook
Industry 2018 2040 Remarks

• Higher demand for electric vehicle, especially for battery packaging and heat sink.
Transportation 25MT 43MT
• Penetration to reduce vehicle weight and use of gasoline.

Building and • Urbanization and growing construction industry.

22MT 29MT
Construction • Penetration for building materials.

Consumer and
15MT 21MT • Increasing demand for consumer and industrial products.
Industrial

• Increasing demand for tin packaging.

Packaging 13MT 19MT
• Increasing demand for foil and plastic substitution.

• Increasing demand for energy sector application, such as solar panel structure.
Energy 11MT 16MT
• Copper substitute for transmission cable.

Source: Statista, 2020

▪ Demand for aluminum is estimated to increase on
the back of economic growth in Asia.
▪ Demand for aluminum will be supported by the
increase in transportation sector, in line with the
commitment of global citizen and the transportation
industry to increase the production of new energy
vehicle.

11
Domestic Supply and Demand Balance

Domestic Supply and Demand of Aluminum

2500

2000

1500
Gap
1000

500

0
2020 2025
Indonesian Production Capacity Indonesian Aluminum Demand

Source: Pre-Feasibility Study Guiyang Aluminum Magnesium Design & Research Institute Corp. Ltd.

The high gap between supply and demand of aluminum in Indonesia will potentially increase the
country’s reliance on imported aluminum.

12
Aluminum Smelter in Kaltara Industrial Park
Scope of project is 1.5mt of Aluminum production

Additional capacity of up to
500,000 tpa of Green
Aluminum. Adaro plans for
Potential replication of Phase I: this to be powered by hydro.
Additional production
capacity of up to 500,000 tpa
aluminum. Adaro may invest
in the smelter’s power
Production capacity: 500,000 tpa generation.
aluminum. Adaro plans to invest in the
smelter’s power generation.
Estimated COD: Q1 2025
13
Recently energized captive solar PV
~600 kWp to supply to our mining area

o We have installed 130 kWp PV Rooftop, and

another 468 kWp PV Floating (so far the biggest
installed floating PV in Indonesia)

o The project is expected to generate 156,000

kWh/year and serves a captive market to support
Adaro Group’s mining operation.

o Environmental impact of this project includes

replacing 33,000 liters of diesel per year, and
avoiding emission of 98 ton CO2/year.

14
Financials That Will
Drive The Transition
Adaro Energy Indonesia’s Performance
Continue to deliver consistent results and strong cash flows

OPERATIONAL FY22 FY21 Change

Production (Mt) 62.88 52.70 19%
Sales (Mt) 61.34 51.58 19%
OB removal (Mbcm) 235.58 218.90 8%
FINANCIAL (US$ millions, unless indicated) FY22 FY21 Change
Net Revenue 8,102 3,993 103%
Core Earnings 3,013 1,256 140%
Operational EBITDA 5,030 2,104 139%
Cash 4,067 1,811 125%
Net Debt (Cash) (2,599) (434) 499%
Capex 424 193 120%
Free Cash Flow 3,184 1,271 151%
Operational EBITDA Margin 62% 53% 9%
Net Debt (Cash) to Equity (x) (0.40) (0.10) 298%
Net Debt (Cash) to Last 12 months Operational EBITDA (x) (0.76) (0.32) 138%
Cash from Operations to Capex (x) 9.66 8.11 19%

16
Adaro Minerals MetCoal Business
supports the Steel Industry a key component in Wind Turbine and the Solar Industry

Adaro Minerals key financial highlights Adaro Minerals metcoal production (Mt)
OPERATIONAL FY22
We expect consistent production 3.8 - 4.3
Production (Mt) 3.37 growth, reaching 6 MT+ in the
3.4
Sales (Mt) 3.20 medium term.
OB removal (Mbcm) 8.32
2.3
FINANCIAL (US$ thousands, unless indicated) FY22
Net Revenue 908
1.0
Core Earnings 341
Total Asset 1,286
Operational EBITDA Margin 54%
2020 A 2021 A 2022 A 2023 F

Sales by Destination FY22 Adaro Minerals Strip Ratio Remains Very Low

3.0
Others, 15%
2.5
Japan, 34%
2.0
India, 19%

1.5

1.0
China, 31% 2020 A 2021 A 2022 A
17
Adaro Energy
Indonesia (ADRO)
Why Adaro
• Integrated energy company with strong footing in the energy industry.
Solid Foundation

• Always seek to increase our value-creation capability

Value Creation

• Integrated business model enables us to control cost and manage risks better, ensuring
Positioned for Sustainable Growth business sustainability.

• Well positioned to capture the opportunity through AMI, which will focus on managing
Capturing Opportunities in Green Economy and developing our non-coal mineral assets.

Consistent Dividend Payment and • Cumulatively from 2008, we have paid approximately US$1.7 billion in dividends with
average payout ratio of 46%.
Shareholder Return
• Cost competitiveness resulted in one of the highest operational EBITDA margins in the
Industry Leading Cost Position sector, reaching 64.2% of operational EBITDA margin in 9M22.

• Management has been consistent with strategy execution while also being nimble in
Experienced Management Team reacting to business developments

• PT Adaro Indonesia received 4th PROPER Gold Award

Commitment to ESG • MSCI maintains our BBB ESG rating to reflect our improved environmental performance.

19
Large Coal Reserves and Diverse Portfolio across
Indonesia and Australia
1 2 3 4 AEI has more than 8.5 billion
PT Adaro Minerals
Adaro Indonesia: 88.5% Balangan Coal Companies: MIP: 75% stake tonnes (Bt) of coal resources
Indonesia Tbk (AMI):
Existing, S Kalimantan
Central and East
S Sumatra and 1.4 Bt of coal reserves
S Kalimantan sub-bituminous sub-bituminous across thermal and
Kalimantan
sub-bituminous Reserves 125Mt Reserves 210.2 Mt
Reserves: 731 Mt Resources: 265 Mt
Metallurgical coal
Resources 305 Mt
metallurgical coal – providing
Reserves: 171 Mt us with flexibility in the coal
Resources: 3.3 Bt
Resources: 980 Mt
market.

5 6
BEE: 61.04% stake BEP: 10.22% stake with
S Sumatra option to acquire 90% 6
sub-bituminous E Kalimantan
Geological study phase sub-bituminous Resources
3.3 Bt Kalimantan
5
Sumatra 3

7 Sulawesi
7
Kestrel Coal Mine NT 1
QLD 4 2
48% of 80%
Queensland, Australia WA
Premium HCC SA

Java
NSW
Reserves: 190 Mt
Resources: 430.5 Mt VIC

TAS

Note: Reserves and Resources numbers above are before taking into account AEI’s equity ownership 20
Integrated Business Model
with control over each part of the supply chain from pit-to-power
MINING SERVICES LOGISTICS POWER
THERMAL COAL MINING SERVICES Maritim Barito Perkasa 100% Makmur Sejahtera Wisesa
(MBP) (MSW) 100%
Adaro Indonesia (AI) 88.5% Saptaindra Sejati (SIS) 100% Barging & Shipping Operator of 2x30MW mine-
Coal mining, S. Kalimantan Coal mining and hauling mouth power plant in
contractor Sarana Daya Mandiri 51.2%
Balangan Coal 75% (SDM) S. Kalimantan
Coal Mining, S. Kalimantan Jasapower Indonesia (JPI) 100% Dredging & maintenance in
Barito River mouth Operator of Solar PV at AI’s
Mustika Indah Permai 75% Operator of overburden
mine site in S. Kalimantan
(MIP) crusher and conveyor Indonesia Multi Purpose 100%
Coal Mining, S. Sumatra Terminal (IMPT)
Adaro Jasabara Indonesia 100%
Port management & Tanjung Power Indonesia 65%
Bukit Enim Energi (BEE) 61% (AJI)
terminal operator (TPI)
Coal Mining, S. Sumatra Mining services
Partner in 2x100MW power
Indonesia Bulk Terminal 100%
Bhakti Energi Persada 10.2% Adaro Mining Technologies 100% plant project in S.
(IBT)
(BEP) (AMT) Kalimantan
Coal terminal & fuel
Coal mining, E. Kalimantan Coal research & storage
development
METALLURGICAL COAL Puradika Bongkar 100%
Muat Makmur (PBMM) Bhimasena Power 34%
PT Adaro Minerals 83.8% Cargo loading & unloading Indonesia (BPI)
Indonesia Tbk (AMI) COAL TRADING
Harapan Bahtera Internusa 100% Partner in 2x1000MW
Coal mining, C. Kalimantan,
Coaltrade Services 90% (HBI) power generation project
E. Kalimantan
International Pte. Ltd (CTI) Shipping administration in Central Java
Kestrel Coal Resources1 48% Coal Trader
Queensland, Australia Barito Galangan Nusantara 100%
(BGN)
1) Kestrel Coal Resources has 80% ownership on Maintenance services
Kestrel Coal Mine

21
Solid Financials Backed by Strong Operations
Financial position continues to improve Strong cash balance and free cash flow generation
4,500
2,500 60%
4,000
50%
2,000 40% 3,500
30% 3,000
1,500
20% 2,500
10% 2,000
1,000
0%
1,500
500 -10%
-20% 1,000
- -30% 500
FY18 FY19 FY20 FY21 FY22 -
Interest Bearing Debt Debt to Equity FY17 FY18 FY19 FY20 FY21 FY22

Cash (million US$) FCF (million US$) Capex (million US$)

Adaro Historical Production

70 8.00
60 7.00
6.00
50
Production (Mt)

Strip Ratio (x)

5.00
40
4.00
30
3.00
20 2.00
10 1.00
0 -

Tutupan Wara Paringin Balangan ADMR MIP SR 22

Industry Leading Efficiency
One of the lowest cost operators in Indonesia
Adaro’s estimated coal cash cost breakdown (FY22) Electrification to reduce the usage of diesel gensets
Fixed
overhead,
5%
Coal
processing,
10%
Mining,
35% - 40%
Freight &
handling,
20%

Fuel, 25%
- 30%

Strong operational EBITDA generation and healthy operational EBITDA margin

Operational EBITDA and Margin

6,000 62% 70% ▪ Consistently delivers on operational EBITDA target
and performed in-line with guidance.
5,000 53% 60%
▪ Healthy operational EBITDA margin on the back of
4,000 40%
50% better cost control from integrated business model.
39%
35% 35% 40%
3,000
5,030 30%
2,000
20%
1,000 2,104 10%
1,315 1,408 1,207 883
- 0%
2017 2018 2019 2020 2021 2022
23
Operational EBITDA (US$ M) Operational EBITDA Margin
Well Positioned Product and Strong Customer Base
Focused on Asia
Envirocoal is among the lowest pollutant content coal in the seaborne market

Ash content: 2%-3% (adb) Nitrogen content : 0.9% - 1.0% (daf) Sulfur content: 0.1% - 0.25% (adb)

Customer geographical breakdown (FY22) Customer type by volume (FY22)

Europe Others
1% 1%

China Others,
12% Indonesia 10%
25%
India
13%
Power
Plant,
90%
Southeast *others include cement,
Northeast Asia pulp & paper, and industrial
Asia 22%
26%

24
PT Adaro Minerals
Indonesia Tbk
(ADMR)
Adaro Minerals Indonesia at a Glance
Indonesia’s leading metallurgical coal producer with low-cost, efficient operation supported by
Adaro Group’s integrated supply chain network

Five CCoW holders located in Central and East Kalimantan, Indonesia.

Large coal reserves and resources base which supports long-term sustainable growth.
Coal reserves: 170.7 Mt. Coal resources: 980 Mt.

Coal production in 2021 reached 2.3 Mt, and while in 2022 coal production reached 3.37 Mt
(▲ 52% y-o-y).

Strong demand profile from blue-chip steel companies. Current customers are located in
China, Japan and Indonesia.

Offers coal supply diversification for customers in a market dominated by Australia, Canada
and the US.

Close proximity to key markets offers customers with more competitive cost and shorter
transportation time.

26
Company Overview - ADMR

Established in 2007, AMI carries out an integrated mining activities through

its subsidiaries, which has one of the largest greenfields area in Central
Kalimantan for metallurgical coal.

The Company’s subsidiaries own 5 Coal Contract Of Work (“CCoW”)

located in East Kalimantan and Central Kalimantan with total area up to
146,579 ha.

The 5 CCoWs are in the operation and production operation development

stages: Maruwai Coal is currently operating and selling metallurgical coal,
Lahai Coal is conducting mining optimization, meanwhile Kalteng Coal,
Sumber Barito Coal and Juloi Coal are in development phase.

CCoW STAGE COALS

Lahai Green Coal

Maruwai Hard Coking

Coal, Green
Coal
Metallurgical Coal
Kalteng Met-Coal

Juloi Met-Coal

Sumber
Met-Coal
Barito

Notes : Operation

Production Operation Development Cokes

27
Large Coal Resource and Reserves
Coal Resource
Total Coal Resources Measured Indicated Inferred Compliance One of the largest
Company / Locality
(Mt) (Mt) (Mt) (Mt) Standard undeveloped met
LC - Haju
4.4 3.8 0.4 0.1 JORC coal reserves and
(Green Coal)
MC - Lampunut resources globally
105.4 98.4 6.9 0.2 JORC
(Metallurgical and Green Coal)
JC - Juloi Northwest
629.8 - 269.6 360.3 JORC
(Metallurgical)
JC - Bumbun
174.5 60.4 57.8 56.4 JORC
Premium quality
(Metallurgical)
KC - Luon
hard coking coal with
(Metallurgical)
50.9 24.7 19.3 6.9 JORC
low ash, low
SBC - Dahlia Arwana
(Metallurgical)
15.0 6.5 6.5 2.0 JORC phosposrus, and
TOTAL 980.0 193.8 360.5 425.7
high vitrinite content

Coal Reserves
Company / Locality
Total Coal Reserves Proved Probable
Compliance Standard
Long reserves life,
(Mt) (Mt) (Mt)
based on current
LC - Haju
(Green Coal)
2.3 2.3 0.03 JORC production
MC - Lampunut
89.6 81.2 8.4 JORC
(Metallurgical and Green Coal)
JC - Bumbun
55.5 - 55.5 JORC
(Metallurgical) *Coal Reserves and Resources data is as of
KC - Luon August 2021 from independent consultant PT
17.7 - 17.7 JORC Quantus Consultants Indonesia
(Metallurgical)
SBC - Dahlia Arwana
5.6 - 5.6 JORC
(Metallurgical)
TOTAL 170.7 83.4 87.2 28
Established Infrastructure to Ensure Operational
Excellence
Lampunut Coal Handling and Processing Plant
Crushing Plant : 600 tph
One of the largest CHPPs in Indonesia in terms of capacity

Reduces ash from 12% ad to 4.5% ad

Performance test completed in November 2020

Washing Plant : 525 tph (max: 550 tph)

WASHING – 3 Process Circuit

DMC Hydrocyclone & Spiral Floatation

1.4 – 50 mm 0.25 – 1.4 mm 0.25 mm
29
Supply Chain: from Coal Terminal to Vessel Loading
Points
Barge-to-barge

Barge-to-vessel

Bulk Terminal

30
Competitive Advantages
• Low ash
• Low phosphorus
Product • High vitrinite
Quality
Committed to develop
the community and
minimize environmental
CSR and Lampunut is the first and
impact through various Green only HCC in Indonesia
green initiatives Position (Source: IHS Markit)
Initiativ
es
Competitive
Advantages

Coal The western mines

Lampunut is a very low- Resources projects are one of the
cost mine, ranked Low and largest greenfield projects
within the lowest cost Reserves in the world
quartile in the global
cost curve
The
manage
Managed by seasoned Adaro
-ment executives and engineers with proven
track record of creating maximum
sustainable value
31
PT Adaro Indo Aluminium
Part of ADMR, leading the Adaro Group’s green transformation

Increasing revenue contribution from non-coal to balance our business

Supporting Government’s plan on green industry and processing of mineral product

Looking to partner with reliable and experienced companies

Development process will be conducted in stages

Positive LT outlook as aluminum is needed in many industries including automotive

Reduce aluminum imports, create job opportunities and contribute to state revenue

33
Adaro Power &
Adaro Water
One of Indonesia’s largest IPPs
Adaro Power’s gross power generation capacity stands at 2,260 MW

Makmur Sejahtera Wisesa – CFPP

Size / Tech. 2 x 30 MW CFB technology

Shareholders 100% Adaro Power

COD #1 Jun 2013, #2 Feb 2014

Availability Factor 90.6% (Avg. FY22)

Adaro Mining Current: 11.7 MW

Electrification Plan: additional 17.9 MW

Makmur Sejahtera Wisesa – Solar PV

Size 130 kWp + 467 kWp Bhimasena Power Indonesia – CFPP

Shareholder 100% Adaro Power Size / Tech. 2 x 1,000 MW Ultra Super Critical
COD Q3 2018 (for 130 kWp) & 467 kWp COD Shareholders 34% AP, 34% JPower, 32% Itochu
27 December 2021
Project cost USD 4.2 billion
Project cost USD 800,000 (approx.)
Availability Factor 86.5% (Avg. FY22)
Electricity 791.4 MWh (FY22)
produced

Apart from improving the performance of its already-operated

Tanjung Power Indonesia – CFPP
power plants and completing the construction, Adaro Power
Size / Tech. 2 x 100 MW CFB technology continues to study renewable power projects such as
Shareholders 65% AP, 35% Korea EWP biomass, wind power, and solar PV to support PLN through
Project cost USD 545 million
unsolicited proposal and tenders. Adaro Power is also in the
process of developing captive use power generation projects
COD 2019
for the Group’s other business units such as IBT (Genset &
Availability Factor 89.7% (Avg. FY22) Solar PV) and ADMR (Mini-hydro)
35
Adaro Water
Owns & Operates 1,670 lps of Water Treatment Plants
Also Supports Mining Operations through Slurry Management Business Unit
Dumai Tirta Persada 1 2 Drupadi Tirta Gresik
3
Grenex Tirta Mandiri
Location : Dumai, Riau Location : Gresik, East Java
Location : Bekasi, West Java
Size : 450 lps Size : 400 lps
Size : 200 lps
Adaro Shares : 49% Adaro Shares : 100%
Adaro Shares : 49%
Status : First phase Status : In operation
Status : Started construction
(50 lps) completed since 2012

Adaro Wamco Prima 4 1

Location : Tanjung,
South Kalimantan
Business : Mining pump services
Adaro Shares : 60% 4
Status : Operation

6
5
5
Drupadi Tirta Intan
Location : Banjar, South Kalimantan
Size : 500 lps 3
Adaro Shares : 100% 2
Status : In operation since 2012

Adaro Tirta Mentaya 6 Adaro Water is currently in the process to achieve operational excellence through
Location : Sampit, Central Kalimantan continuous improvement in its operating subsidiaries, including WTPs operations and
Size : 320 lps (contract), 400 lps (capacity) slurry pumps operations. Meanwhile, on the construction side, Adaro Water continues
Adaro Shares : 90% to ensure that the project can achieve its goals in terms of schedule, budget & quality.
Status : In operation upto 250 lps From business development perspective, Adaro Water continues to actively seeking
for new projects through PPP, non PPP and acquisition.

36
Sustainability and
Green Initiatives
Balance of People, Planet and Purpose
Key programs in Corporate Social Responsibility Green Initiatives to Reduce Emission

Education Economic Health

development

Solar PV Biomass Co- Biodiesel

Firing

Environmental Socio-cultural
enhancement Enrichment

MSCI ESG Rating History Fifth PROPER Gold Award

AAA7
AA6
A5
BBB4 BBB BBB
BB3 BB
B2 B
CCC1
0
Jun-19 May-20 Aug-21 Jul-22
38
Improving Environmental Performance

Reduced total energy consumption by 21% y-o-y …and reduced GHG emission (scope 1) by 22% y-o-y

2,500,000
35,000
30,000 2,000,000
25,000

Ton Co2 eq
1,500,000
Terajoule

20,000
15,000 1,000,000
10,000
500,000
5,000
- -
2019 2020 2021 2019 2020 2021

Innovative projects to improve efficiency and environmental performance

Fleet Management Kelanis Smart Inverter

System reduces Solar Cell reduces
queueing time and diesel usage and CO2
energy used emission

39
Ecosystem Restoration and Carbon Capture

Through Adaro Land Pillar, we have subsidiaries which own forest

management permits for ecosystem restoration and forest management
permits for carbon absorption.

PT Alam Sukses Lestari holds license to use timber product – ecosystem

restoration in natural forest which allows restoration of forest ecosystem
to achieve balanced biodiversity.

PT Hutan Amanah Lestari holds license for utilization of carbon

absorption and is one of the largest holders of such license in Indonesia.
We expect that once operational, carbon trading will be the main business
of this company.

40
Reclamation and Rehabilitation

Start

6 months

+ 5 Years
41
Awards and Recognitions
2012 2013 2014 2015 2016

PROPER gold award PROPER green award PROPER green award PROPER green award PROPER green award
Ministry of Environment & Ministry of Environment & Ministry of Environment & Ministry of Environment & Ministry of Environment &
Forestry Forestry Forestry Forestry Forestry
Aditama gold award Aditama gold award Aditama gold award Cultural based community Global CSR bronze award
For environment excellence in For environmental excellence For environmental excellence empowerment award For community-led sanitation
the coal sector in the coal sector in the coal sector Awards in several categories Annual Global CSR & Summit
Ministry of Energy & mineral Ministry of Energy & mineral Ministry of Energy & mineral Corporate Forum for
resources resources resources Community Development & Padmamitra award
Ministry of Human Dev For poverty alleviation
Social empowerment award Global CSR bronze award Bronze sustainability award Ministry of Social Affairs
Won nine awards honoring For sustainable clean water For sustainable investment Bakti Husada award
companies that run CSR program RobecoSAM For community health
programs Pinnacle Group Global CSR development
Ministry of Human Dev Ministry of Health

2017 2018 2019 2020 2021

PROPER green award PROPER green award PROPER gold award PROPER gold award PROPER gold award
Ministry of Environment & Ministry of Environment & Ministry of Environment & Ministry of Environment & Ministry of Environment &
Forestry Forestry Forestry Forestry Forestry
Aditama gold award Aditama gold award Global CSR award, one gold MSCI ESG Ratings upgraded MSCI ESG Ratings upgraded
For environment excellence in For environment excellence in and two silver to BB to BBB
the coal sector the coal sector For early childhood education MSCI MSCI
Ministry of Energy & mineral Ministry of Energy & mineral program, CSR Leadership and
resources resources environmental excellence in Charity and Community Best Environmental
leader program. Impact Excellence Award - Silver
Best of environmental Best of coal mining service Annual Global CSR & Summit Coaltrans Asia Global CSR Summit & Awards
management & safety award business management &
Ministry of Energy & mineral safety award Best Implementation of Aditama award
resources Ministry of Energy & mineral Good Mining Practices Good mining practices
resources MoEMR MoEMR

42
Adaro Services &
Adaro Logistics
Ensuring Operational Excellence

Key part of our vertical integration.

Ensures operational excellence, productivity

improvement and timely reliable delivery to
customers.
Stable earnings profile buffers against the volatility in
coal price.
Focus on providing services for companies in the
Adaro Group.

Units FY22 FY21 FY22 vs FY21

Overburden Removal Mbcm 189.60 161.13 18%

SIS
Coal Transport to Port Mt 59.51 43.36 37%
MBP Coal barging Mt 57.58 48.94 18%

44
Industry Outlook
Prices Remain Near Historical Highs

500 1200
450
1000
400
350
800
USD $

300

RMB
250 600
200
400
150
100
200
50
0 0

NEX ICI 3 ICI 4 HBA QHD 5000 NAR (RMB)

▪ Prices have remained volatile at high levels.

▪ Demand from India and Southeast Asia has supported Indonesian thermal coal imports – due to inclement weather and also supply crunch.

▪ China’s imports were strong due to seasonal restocking for winter and anticipation of the Chinese New Year holiday

▪ Indonesian coal demand is still expected to be high due to its competitiveness and unique characteristics

46
Long Run Demand Remains Significant

Global thermal coal imports demand (Mt)

1,200
▪ Coal remains as significant part of energy
1,000 mix in emerging economies in Asia
▪ Despite push towards renewable energy,
800 emerging economies in Asia still rely on
Million Tonnes

coal for electricity generation due to its

availability and affordability.
600 ▪ As the world aims to reduce carbon
emission, demand for coal will be
400 affected.

200

0
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
China India JKT SEA Europe ROW

Source: McCloskey by OPIS, a Dow Jones Company

(“McCloskey”)

47
Robust Demand Outlook

Global metallurgical coal imports demand (Mt)

450
400
▪ The long-term demand fundamentals
350
for metallurgical coal remain intact,
Million Tonnes

300 underpinned by infrastructure growth.

250 Steel production and consumption is
forecasted to grow. Met coal demand is
200 expected to reach nearly 400 Mt in
150 2030.
▪ India is expected to be the growth
100 driver and China’s demand is
50 forecasted to remain stable in the next
decade.
0
2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030
China India Japan
South Korea Europe South America
Others
Source: McCloskey

48
Southeast Asia is a Key Market
SEA electricity demand more than double to 2040 ASEAN (5) steel demand grows moderately in the short-term

80 10%
78
5%
76
74 0%
72
78 78 -5%
70
68 73
-10%
66 69
64 -15%
2019 2020 2021F 2022F

Volume (Mt) y-o-y growth

Notes: TWh = terawatt-hours ASEAN (5): Indonesia, Malaysia, Philippines, Thailand, Vietnam
Source: Southeast Asia Energy Outlook 2019, International Energy Agency 2019 Source: Worldsteel Association Short Range Outlook, April 2021

Overview of Southeast Asia

▪ The region is home to around 655 million people and 45 million people is still without access to electricity.
▪ Its growth in electricity demand, at 6% CAGR, has been among the fastest in the world as the region aims for universal access to electricity
by 2030.
▪ Coal has been the fastest growing fuel in SEA’s energy mix, nearly 20 GW of coal-fired power plant is under construction (IEA).
▪ Coal with low pollutant content will be more favoured in the market as many countries try to control emission and new power plants utilize
advanced boiler system.

49
Regulatory Updates

Conversion of CCOW to IUPK

• Continuation of AI’s CCOW.
• Government Regulation (PP No 15 of 2022) stipulates the changes in the commercial terms: royalty rate,
CIT rate, and additional profit sharing with the regional and central government.
CCOW IUPK
1 Royalty rate 13.5% 14% - 28%
2 CIT 45% 22%
3 Profit Sharing (from net income)
- Central Gov't - 4%
- Regional Gov't - 6%

• In line with conversion to IUPK, AI’s concession size has been reduced, but does not affect our operation
or our reserves.

Change in the royalty rate of IUP

• This would impact MIP and Balangan Coal mines, representing approximately 15% of our 2022
production target. The royalty going forward will be based on HBA pricing and could increase to between
7% and 10.5% from 3% to 5% currently.

50
Thank you

51