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PT Ancora Indonesia Resources Tbk (Ticker code: OKAS) Public Expose 2024 Driving Transformation for Continued Growth & Long-Term Sustainability November, 2024
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Disclaimer
These materials have been prepared by PT Ancora Indonesia Resources Tbk (AIR) 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. AIR 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.
The information contained in this presentation is intended solely for User reference. This presentation contains "Forward Looking"
statements relating to future events, which are inherently subject to risk and significant uncertainty. All statements, except historical
facts contained in this presentation, include but are not limited to statements regarding AIR’s future financial position and results of
operating activities, strategies, plans, goals, objectives and targets, future developments in the Market where AIR participates or
wishes to participate, and other statements that begin with or are followed by the words "believe", "expect", "aim", “intend”, “will”,
“may”, “project”, “estimate”, “anticipate”, “predict”, “seek”, “should” or other similar words and expressions both in English and Bahasa
Indonesia, are statements that are "Forward Looking".
Under no circumstances shall AIR be responsible or liable for the correctness of such material or for damage or loss of opportunity as
a result of use of this material. AIR makes no representations whatsoever regarding the opinions or statements of any analyst or other
third party statements. AIR does not monitor or control the content of third party opinions or statements and does not accept or
assume responsibility regarding anything related to the content or use of such opinions or statements. This presentation does not
constitute an offer to sell or a solicitation of an offer to buy or sell the AIR shares in any jurisdiction.
All numerical notation in tables and charts are in Indonesian language.
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Ancora Indonesia Resources at a Glance
Our Corporate Structure
PT Ancora Indonesia Resources Tbk
Mining Oil & Gas Logistics
50% 100% 99,6% 60% 99,8%
PT. Multi Nitrotama Indotan Lombok PT Ancora PT Bormindo PT Ancora
Kimia (“MNK”) Pte Ltd (“ILP”) Indonesia Mining Nusantara (“BN”) Shipping
51% 90%
PT Indotan Operating subsidiary
PT Kemitraan MNK
Lombok Barat
BME (“KMB”)
Bangkit (“ILBB”)
Non-Operating subsidiary
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Providing solutions for diverse resources across three
core businesses
PT Multi Nitrotama Kimia (MNK) provides PT Bormindo Nusantara (BN) is an PT Indotan Lombok Barat Bangkit (ILBB) is
end-to-end mining services, including onshore oil and gas drilling and workover a gold mining company with a project site
production of Ammonium Nitrate, for services provider. in West Lombok.
companies across Indonesia.
BN offers a range of drilling-related services, ILBB has a permit for production operations
MNK is the main driver for AIR’s business, as including high pressure well control and is in the process of finalizing reserves
well as its future growth and diversification equipment, special drilling pipes, drilling exploration to start infrastructure construction
opportunities. register and monitoring systems, top drive for production next year.
drilling and rig transfer equipment.
PT Kemitraan MNK BME (KMB) a subsidiary of PT MNK (51%) and PT BME Indonesia
(49%).
KMB is an integrated blasting services company with advanced technology that offers a
comprehensive range of products and services for surface and underground mines.
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Financial Highlights
Maintaining positive economic
performance for sustainable growth
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Financial Highlights: Robust top line and bottom line
growth
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Financial Highlights: Maintaining strong balance sheet
position
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Improving leverage position
We have continued reducing our debt, achieving a Debt-to-EBITDA ratio of 1,35. Our plan to continue reducing our debt
will further strengthen our financial position, allowing for new investments and increasing our appeal to investors.
USD Million Ratio (x)
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Financial Ratios: Healthy overall margins and leverage
position
Financial Ratio 9M23 9M24 Change
Gross Profit Margin 28,50% 30,84% + 235 bps
Net Profit Margin 8,77% 10,94% + 217 bps
Return on Assets 6,66% 8,91% + 225 bps
Return on Equity 33,33% 30,28% - 306 bps
Current Ratio 76,11% 100,14% + 2403 bps
Leverage Ratio 9M23 9M24 Change
Bearing Debt to Asset 40,87% 34,25% - 662 bps
Bearing Debt to Equity 204,40% 116,34% - 8805 bps
Bearing Debt to EBITDA 226,35% 135,15% - 9120 bps
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Target vs Current Actual: Achieving Our Financial Targets
Financial Variable (USD million) Target 9M24 Actual 9M24 Realization
Revenue 133,13 140,84 105,79%
Gross Profit 38,72 43,44 112,21%
EBITDA 23,97 32,86 137,11%
Net Profit 14,73 15,41 104,59%
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Operational Highlights
Seizing opportunities through reliable
productivity and partnerships to deliver results
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Increased production and strong demand fuel MNK's
significant growth across all business areas
MNK has experienced an increase in growth in sales across each of its main businesses, reflecting continued trust
among our customers. Continued growth experienced across each line of the core businesses of MNK.
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Operational Highlights: Operational excellence drives
productivity across subsidiaries, meeting strong market
demand
Productivity
Ammonium Nitrate (AN) and Nitric Acid (NA) Plant Debottlenecking & Reliability
● The reliability of our Cikampek Plant has improved by 11% compared to last year's performance.
Production Record Breaking for 2 consecutive years
● Detonator assembly volume for YTD Q3 has increased by 3% compared to last year, marking another record-breaking
performance.
● Ammonium Nitrate production increased by 11% in 2024.
Increased Rig Productivity Performance
● Rig productivity performance improved by 14% compared to the same period last year.
Demand
Strong Ammonium Nitrate (AN) Demand
● Achieved more than 30% increase in ammonium nitrate quantity sold.
Accessories & Detonator Market Leader
● Supplying around 30% of domestic non-electric detonator market.
● First and only electronic detonator producer in Indonesia
Operational And Resource Improvement To Capture Demand Opportunity
● Strong interest in drilling services and ongoing process for new projects.
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Operational Improvements: Maintaining growth through
strategic partnerships
Partnerships
BME (A joint venture between MNK and BME - part of Omnia Group)
● BME provide blasting services aims to improve the provision of technical services.
● KMB first year performance outperformed, from the top to bottom line performance, we
are above our target, and continued operational improvement will be our focus going
forward.
● KMB's revenue up to Q3 2024 has exceeded its target by 15%.
● Achieved an 11% increase in EBITDA above target and an almost 30% increase in Net
Income above target.
Partnership in Operation
● Continued strong partnership with Dyno Nobel, through the establishment of an
electronic detonator assembly and increased production of non-electric detonators
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New Developments Focus towards vertical integration, diversification, and sustainability
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Delivering superior mining services through
vertical integration
Strategically focused on achieving excellence in vertically integrated mining services through strategic partnerships.
Ammonium Detonator Booster Blasting
Nitrate Plant Assembly plant Plant Service
MNK Cikampek MNK Joint Operation MNK Joint Operation Joint Venture (JV)
Ammonium Nitrate (JO) Assembly plant (JO) Booster Plant with MNK X BME
Production with Dyno Nobel AUXIN PT KMB - Blasting
Indonesia Services
Fully Operated
Ongoing Development
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Indotan Lombok Barat Bangkit (ILBB) Outlook:
Gold mine project in West Lombok
Strategically located in resource-rich West Lombok, ILBB encompasses prospects for gold, silver, and copper. The
mineral potential is spread across 3 core mining sites.
Pelangan Site Mencanggah Site Selodong Site
Consists of: Consists of: Consists of:
1. Prospect Raja 1. Prospect Bising 1. Prospect
2. Prospect Tanjung 2. Prospect Tibu Sirai Selodong
3. Prospect Jati 3. Prospect Waterfall
4. Prospect Kayu Putih
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ILBB exploration completion and operational preparation
for 2026 operation
Since completing our exploration in the end of 2023, we have
been conducting comprehensive tests to determine the
most feasible method for our gold mine operation and finalize
our JORC report, expected before this year-end.
Our target is to be operational by the beginning of 2026
In the meantime we are strengthening our work with the
community in the Western Lombok area.
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ILBB: Building strong community development and positive
impact for local community
Recognizing the importance of the communities surrounding ILBB's operational areas, we are committed to fostering
mutual growth and development, before our operations kick off.
Increasing security measures to ensure community in our area is
protected
✅ Establishing new security posts to further safeguard the area.
✅ Conducting correspondence with relevant government institutions.
Contributing in developing the surrounding community's infrastructure
✅ Enhancing educational facilities of local schools.
✅ Berkontribusi dalam pembangunan/renovasi masjid dan infrastruktur
keagamaan.
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Sustainability at Ancora Indonesia Resources
Over the last 2 years we are increasing our focus on sustainability because it is a crucial component of our
operation and it started by defining our materiality topics and pillarizing the topics. We established our Sustainability
Task Force, which integrates all of its subsidiaries.
Commitment Statement
At PT Ancora Indonesia Resources Tbk, we are firmly committed to
advancing our journey towards sustainability with the
utmost responsibility and care for the resources we
utilize and the communities we serve.
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Navigating AIR materiality topics
We established our Materiality Topics in 2023 as our sustainability strategic priorities and are committed to continuously
engaging with our stakeholders on their concerns, monitoring industry trends, and regulatory updates.
Important Top Important
Water Consumption & Management Product/Service Safety & Quality
Community Development Emission Control
Employee Skills and Empowerment Energy
Economic Performance Healthy working Environment
Anti Corruption
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Our sustainability commitment and framework
Sustainability Pillars
Prospering with the
Sustaining Growth Preserving the Planet Nurturing Our People
Communities
Our Promise
We continue to foster growth We pledge to protect and We promise to foster our We commit to advancing in
through operational and sustain the natural world, and team’s development, harmony with the
service excellence, customer working towards a legacy of value each member, and communities, sharing
satisfaction, and sound environmental stewardship and prioritize their well-being, fully success and fostering
financial performance. responsibility for the future committed to nurturing our mutual growth, as we strive
generation. people and cultivating a for a future where prosperity
culture of empowerment and is a collective achievement.
growth.
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Driving growth through operational and service excellence,
customer focus, and financial strength
Pillar 1: Sustaining Growth
Reliable production and execution excellence ensure optimal customer satisfaction
● A robust maintenance program and adequate human resource quality have enabled MNK
to have strong plant reliability above 95%.
● Zero product returns from customers through the third quarter of 2024
● Continue to maintain ISO 9001:2015 certification through strong Quality Management
System
Strengthening operations to achieve service excellence and customer satisfaction
● Resource optimization and enhanced maintenance program execution.
● Formed engineering taskforce to further enhance service quality and operational efficiency..
● Continue to maintain ISO 9001:2015 certification through strong Quality Management
System.
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Understanding our environmental impact and our initial
steps in energy transition
Pillar 2: Preserving the Planet
Energy transition and water management initiatives
● MNK has initiated a potential cooperation for solar panel installation at its Cikampek factory.
● The installation of a reverse osmosis water recycling system has kicked off this year.
● Improvements and modifications to Cikampek's factory machinery include the installation of
an economizer and the implementation of steam reuse, as part of an initiative to improve
energy efficiency.
A more comprehensive mapping of our environmental footprint and the initial phase in
energy transition.
● Enhancement of environmental data reporting in the aspects of energy and waste.
● Adopting B35 biodiesel as an alternative to conventional fossil fuels
Ensuring resources have the necessary knowledge and support prior to commencing
environmental data collection.
● River basin rehabilitation is planned to be conducted by December 2024
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Prioritizing the development, safety, and well-being of
our people
Pillar 3: Nurturing our People
Continued commitment to employee safety and development
● MNK has achieved 14.484.124 hours of total working hours without a Lost Time Injury (LTI)
since 2012.
● Zero accident award from the Kutai Kartanegara government for MNK's Handil detonator
production facility
● Zero fatalities across Cikampek and Handil Plants.
● Providing mandatory and voluntary training both in house and in collaboration with external
parties.
● Continue to maintain ISO 45001:2018 certification through our health and safety
management practices
Continued Zero Lost Time Incidents (LTI) and virtual learning initiative
● Zero Lost Time Incidents (LTI) this year
● Kick off virtual training initiative in collaboration with external parties.
● Continue to maintain ISO 45001:2018 certification through our health and safety
management practices
● Fulfilled customer safety requirements throughout 2024.
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Programs that support our the growth of our
local communities
Pillar 4: Prospering with the Community
Fostering economic growth of our local community
● We empower surrounding communities through various initiatives. These include cupping
therapy (Bekam) training, sewing training with follow-up marketing guidance to help
participants sell their creations, and facilitating opportunities for local MSMEs to promote their
products at company events.
● Financial support for local infrastructure development to enhance community well-being.
Nurturing local talent with industry skills that meet market demands
● Introducing a new initiative of knowledge-sharing workshops and roadshows with vocational
high schools in Duri, Riau.
● 99% of the workforce at the Duri operational site is sourced from the local workforce.
Empowering local community prior to the start of mining operations.
● Constructing new guard posts to enhance security around the areas.
● Support the development of infrastructure for the local community.
● Support local education by providing equipment needed for learning activities.
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Industry Outlook
Continuing strong demand for relevant
commodities to our businesses
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Ammonia (NH3) and Coal Outlook
From a supply perspective: Ammonia prices, as a raw material and a basis for the selling price of ammonium nitrate, had
decreased in recent years, but has stabilized in the short term - at $356,13 per metric ton in Q2 to $375,63 in Q3. If the
prices maintain at similar levels in the short term, it will allow us to optimize our supply chain for MNK.
From a demand perspective: Coal prices have decreased over the last year and have stabilized at lower levels in recent
quarters. Although strong coal demand is still expected to support MNK's core business, actively pursuing expansion and
diversification is key for future growth.
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Source: World Bank, Fertecon
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Oil and Gas Outlook
The WTI crude oil price has remained steady, ranging from around $78,89 in Q2 to $69,55 in Q3 per barrel. Meanwhile,
natural gas prices have continued to decrease over the last year, fluctuating between $10.87 and $11.78 on a
quarter-on-quarter basis. The stable oil prices present an opportunity for increased demand in drilling and workover services
for BN in the short to medium term.
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Source: World Bank
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Gold Outlook
The Fed cut rates to 4.83% in September 2024, and gold has continued to rise recently from $2,326 per toz in Q2 2024 to
$2,670 per toz in Q3 2024. These conditions and the gold price outlook support the feasibility of our development in this
space through ILBB and future projects in these minerals.
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Source: World Bank
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Thank You Contact Us: Equity Tower 41st Floor Sudirman Central Business District (SCBD) Jl. Jend. Sudirman Kav. 52-53 Lot 9 Jakarta Selatan Indonesia 12190 Phone: +62 21 290 35 011 Email: corporate.secretary@ancorair.com Website: www.ancorair.com
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PT Bormindo
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PT Indotan
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PT Kemitraan MNK Lombok Barat BME
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