20240827_ADRO_Laporan Informasi dan Fakta Material_31719162_lamp2.pdf

                                                Financial Performance

    ($ Millions, except otherwise stated)                                   1H24              1H23                % Change
    Revenue                                                                     2,973              3,479                 -15%
    Cost of Revenue                                                           (1,765)            (2,033)                 -13%
    Gross Profit                                                                1,208              1,446                 -16%
    Operating Income                                                            1,008              1,178                 -14%
    Core Earnings(1)                                                              911              1,024                 -11%
    Operational EBITDA(2)                                                       1,234              1,393                 -11%
    Total Assets                                                              10,264               9,736                    5%
    Total Liabilities                                                           2,564              2,717                   -6%
    Total Equity                                                                7,701              7,019                  10%
    Interest Bearing Debt                                                       1,294              1,502                 -14%
    Cash and Cash Equivalents                                                   2,794              2,762                    1%
    Net Debt (Cash)(3)                                                        (1,557)            (1,324)                  18%
    Capital Expenditure(4)                                                        394                269                  46%
    Free Cash Flow(5)                                                             648                933                 -31%
    Basic Earnings Per Share (EPS) in US$                                   0.02530            0.02823                   -10%



                                                     Financial Ratios

                                                                                 1H24             1H23            % Change
    Gross Profit Margin (%)                                                          41%              42%              -1%
    Operating Margin (%)                                                             34%              34%               0%
    Operational EBITDA Margin (%)                                                    42%              40%               2%
    Net Debt (Cash) to Equity (x)                                                  (0.20)           (0.19)              5%
    Net Debt (Cash) to last 12 months Operational EBITDA (x)                       (0.65)           (0.32)            103%
    Cash from Operations to Capex (x)                                                2.70             0.27           -900%




1
   Profit for the period, excluding non-operational items net of tax (amortization of mining properties, prior year tax assessment,
  allowance for uncollectible receivables, and provision for decommissioning costs)
2
  EBITDA excluding prior year tax assessment, allowance for uncollectible receivables, and provision decommissioning costs.
3
  After deduction of cash and cash equivalent and current portion of other investments.
4
  Capex spending defined as: purchase of fixed assets – proceed from disposal of fixed assets + payment for addition of mining
  properties + payment for addition of intangible assets + addition of lease liabilities.
5
  Operational EBITDA – taxes – changes in trade receivables, inventories, and trade payables – capital expenditure excluding lease
liabilities.




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                                     Operating Segment
         Segment                      Revenue                               Net Profit
 ($ Millions)             1H24       1H23     % Change           1H24        1H23        % Change
 Coal mining & trading    2,937         3,386      -13%              672          838        -20%
 Mining services               -          483     -100%                -           24       -100%
 Others                      812          322      152%              355          139        155%
 Elimination               (776)        (712)        9%            (147)           (6)     2,350%
 Total                    2,973         3,479      -15%              880          996        -12%



FINANCIAL PERFORMANCE ANALYSIS FOR THE FIRST SIX MONTHS OF 2024 (1H24)


Revenue, Average Selling Price and Production
We booked revenue of $2,973 million in 1H24, reflecting a 15% decrease compared to 1H23.
Production and sales were 7% higher at 35.74 Mt and 34.94 Mt respectively, which was offset by
a correction in coal prices, with average selling price (ASP) declining by 19%.
Cost of Revenue
The cost of revenues decreased by 13% y-o-y to $1,765 million, mainly due to lower royalty
expenses for PT Adaro Indonesia (AI) compared to the year ago period due to lower ASP.
Total fuel costs increased by 13%, in line with the higher fuel consumption which increased by
15% driven by higher volume. We recorded overburden removal of 141.58 Mbcm, 9% higher than
in 1H23. Strip ratio was 3.96x, 2% higher than in 1H23. Coal cash cost per tonne (excluding
royalty) in 1H24 decreased by 11% from 1H23.
Operating Expenses
Our operating expenses in 1H24 declined by 26% y-o-y to $179 million, mainly due to the 46%
decline in non-tax state revenue and regional government revenue.
Royalties to the Government and Income Tax Expense
In line with the lower ASP, royalties to the Government declined 30% to $599 million from $853
million, while income tax expenses decreased 19% to $199 million from $244 million y-o-y.
Operational EBITDA and Core Earnings
Operational EBITDA declined by 11% y-o-y to $1,234 million and core earnings declined by 11%
to $911 million in 1H24 on the back of lower profitability. We maintain a healthy operational
EBITDA margin in 1H24 at 42%.
Net profit for the period of $880 million already accounted for the non-tax state revenue (PNBP)
for central government (4% portion) and local government (6% portion).




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Total Assets
Total assets at the end of 1H24 increased by 5% to $10,264 million compared with $9,736 million
at the end of 1H23. Our cash balance increased 1% y-o-y to $2,794 million. At the end of 1H24,
cash and cash equivalents represent 27% of our total assets.
Current assets at the end of 1H24 declined by 8% to $3,743 million compared to $4,057 million
at the end of 1H23. Non-current assets at the end of 1H24 were $6,521 million, 15% higher from
the year ago period as fixed assets and investments in joint ventures increased.
Fixed Assets
Fixed assets as at the end of 1H24 of $2,008 million were 29% higher than at the end of 1H23 as
we increased capex spending during the period mainly for heavy equipment, barges, and
investments in aluminum smelter and its ancillary facilities. Fixed assets accounted for 20% of
total assets.
Mining Properties
At the end of 1H24, our mining properties were 4% lower y-o-y to $971 million, due to regular
amortization. Mining properties accounted for 9% of total assets.
Total Liabilities
Total liabilities at the end of 1H24 were $2,564 million, 6% lower compared to the same period
last year. Current liabilities increased by 55% y-o-y to $1,642 million as we reclassified AI’s senior
notes into current liabilities as it is maturing in October 2024. Non-current liabilities decreased by
44% y-o-y to $922 million.
Debt Management and Liquidity
Our cash balance at the end of 1H24 increased by 1% to $2,794 million y-o-y. Adaro also had
access to $57.5 million in other investments and a total of approximately $1,793 million in undrawn
committed loan facilities from various outstanding loans at 1H24, leading to total liquidity of $4,645
million at the end of 1H24. Interest bearing debts declined by 14% to $1,294 million from $1,502
million y-o-y.
Equity
At the end of 1H24, equity stood at $7,701 million, representing an increase of 10% y-o-y driven
by higher retained earnings.
Cash Flows from Operating Activities
During 1H24, ADRO’s cash flows from operating activities increased significantly to $1,033 million
from $72 million y-o-y driven by the lower payments of royalties and income tax. Receipts from
customers declined by 15% on the back of lower prices.
Cash Flows from Investing Activities
The company reported $400 million in net cash outflows used in investing activities, 59% higher
than in 1H23, mainly driven by the 47% increase in purchase of fixed assets to $385 million as
the company continues to execute its investment plan.


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Capital Expenditure
Capital expenditure in 1H24 increased by 46% to $394 million from the year ago period. The
capital expenditure spending in the period was mainly for purchase and replacement of heavy
equipment and vessels, initial investment in the aluminum smelter and related ancillary facilities,
and investment in infrastructure.
Cash Flows from Financing Activities
Net cash outflow from financing activities in 1H24 was $1,108 million, a 3% decline compared to
1H23 mainly due to dividends payment. The company distributed $800 million in cash dividend to
shareholders for FY23.


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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.



For further information please contact:

Investors

Danuta Komar | Danuta.Komar@adaro.com

Media

Febriati Nadira | Febriati.Nadira@adaro.com




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