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FY2014 Annual Results Presentation

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Page 1: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

FY2014 Annual Results Presentation

Page 2: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Agenda

∗ Company Overview

∗ Financial Results

∗ Market Overview

∗ Company Strategy

∗ Corporate Social Responsibility

Page 3: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Company Overview

Page 4: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Agritrade Profile Listing Venue HKEx Main Board (ticker: 1131.HK) Location of Asset Tamiang Layang, Central Kalimantan Licence Izin Usaha Pertambangan (IUP) – 25 Years

Investment Scheme Foreign Investment (PMA)

Annualised Production FY 2013 : 2.8 Million tonnes FY 2014 : 3.9 Million tonnes

Concession

Total Concession Area: 2,000 hectares To date, 1200 hectares fully explored under JORC Standard: Resources: 152.7 Million tonnes Reserves: 117.8 Million tonnes

Financial Year - 1st Apr to 31st Mar

Page 5: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Management Profile

Ng Say Pek Chairman

Ng Xinwei CEO

Ashok Sahoo CFO

Peter Gunn CTO

Page 6: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Corporate Structure

Agritrade Resources Limited (HKEx ticker: 1131.HK)

Total issued share capital: 1.072 Billion

Agritrade Resources Asia Pte Ltd

(Int’L trading arm)

Rimau Shipping Pte Ltd

(Logistic arm)

PT Senamas Energindo Mineral (PT SEM)

(Mining arm)

PT Megastar

(Infrastructure arm)

Newtone Management Ltd

(Cost centre)

Agritrade International Public

61.5% 38.5%

100% 100% 57% 95% 100%

Page 7: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Mine Location

Barging Time

Telangbaru jetty to Taboneo Anchorage through Barito River (around 36 hours)

Hauling Time

Coal mine to Telangbaru jetty: 41km (approx. 2 hours)

Jetty

Anchorage

Mine Mouth

Page 8: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Mine Efficiencies ∗ Open cut mining (Surface mining)

∗ Thick coal seams (avg. 8 – 11 m)

∗ Thin overburden (3 – 4 m)

∗ Good geology: shallow dipping (< 5 degrees)

∗ Low strip ratio (2:1)

∗ Strategically located near Barito river (41km)

∗ Fully Integrated Logistics Mine Logistics – Hauling Road, Crusher, Conveyor and Jetty Transport Logistics – Barges, Tug Boat

Page 9: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Coal Specifications

• Reduce ash disposal cost • Reduce maintenance

cost Low Ash

• Reduce power plant’s operating costs

• Blend with coal of higher sulphur content

Low Sulphur

• Reduce nitrous oxides removal costs

• Reduce production costs of electricity

Low Nitrogen

Parameters Specifications

Total Moisture (arb) 37-42%

Inherent Moisture (adb) 13-16%

Ash Content (adb) 4-6%

Volatile Matter (adb) 37-43%

Fixed Carbon (adb) 37-41%

Total Sulphur (adb) 0.1-0.3%

Nitrogen (daf) 0.8-0.9%

Calorific Value (CV) (adb) 5,300 to 5,500 kcal/kg

Calorific Value (CV) (gar) 3,600 to 3,800 kcal/kg

Hardgrove Grindability Index (HGI) >50

Page 10: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Production Flow

1. Overburden Removal 2. Coal Getting 3. Hauling 4. Stockpiling

5. Crushing 6. Barge Loading 7. Barge To Anchorage 8. Loading onto Mother Vessels

Page 11: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

JORC Certified Reserves Oct 2012

117 million tons

May 2011

41 million tons 30 million tons

June 2010

*Note: Reserves are based on 1200ha of exploration data

Page 12: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Financial Results

Page 13: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Production

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

SEM Monthly Production Apr 2013 – Mar 2014

Page 14: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Production

- 500,000

1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

2011 2012 2013 2014

Yearly Production ( MT)

Yearly Production

Page 15: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Profitability

-

200,000

400,000

600,000

800,000

1,000,000

2010 2011 2012 2013 2014

Revenue

Profit

( HKD$ ‘000s )

Page 16: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Financial Highlights

% Difference

FY2014 (‘000)

FY2013 (‘000)

Coal Production 36.98 3,859 2,817

Revenue 26.96 961,316 757,173

Gross Profit 16.11 306,033 263,567

Net Profit 109.93 113,294 53,967

Earning per Share (HK$ Cents) 115.62 13.8 6.4

Dividend (HK$ Cents) - 3.0 0

Page 17: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Market Overview

Page 18: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Coal Industry According to World Energy Council (WEC) only 861 Billion tonnes of coal reserves left - equivalent to 109 years of global coal output

Coal provides 29.9% of global primary energy needs

Generates 41% of the world's electricity.

Used in the production of 70% of the world’s steel.

Increasing at the annual growth rate of 2.9%

According to Indonesian Coal Mining Association (APBI), the total

Coal Production in Indonesia stood at approx. 110 million tonnes in

1st quarter of 2014, a 5% increase from 2013’s figure (Source: World Coal Association, IEA)

Page 19: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Market Trend

Being the cheapest and most abundant energy source, many agencies acknowledge that coal cannot be eliminated entirely Higher commitment to the development of Clean Coal Technologies & Alternative green solutions such as CCUS (Carbon Capture, Use & Storage) Post-Fukushima, Japan & various countries to reconsider using Coal as a reliable and safe energy source

Page 20: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Market Trend Prices to stabilize and bottom out at current level Mid to Long term outlook is still positive as demand from domestic power plants and developing countries are set to increase The Government aims to secure Indonesia’s domestic coal consumption to supply around 30% of the country’s energy mix by 2025, this trend also reflected by the increase of SEM coal sales

Page 21: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Infrastructure ∗ Both Indonesia Presidential Candidate have pledged to build roads

and improve infrastructure, plans to spend around $60 Billion each year on infrastructure.

∗ Positive effect as the region enjoy the benefit from the development

Page 22: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Shipping

∗ New phase of the cycle where demand remains stable and supply moderated

∗ Potential for higher rates as global economy recovers

Page 23: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Company Strategy

Page 24: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Achieving Continuous

Growth

Increase Production

Capacity

Enhance Product Quality

Continuous Improve

Operational Capability

Market Expansion

Strategies

Page 25: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Existing Business

Completion of Crusher, Conveyor and Jetties Upgrading of Hauling Road and Mine Pit Coal Upgrading – Final Commission Testing Of Plant Plans For Cost Reduction by 5-10%

Page 26: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

New Business Development New Market Development

New Customer -> Global Energy Trading House & Power Companies

New Product Development Higher Calorific Value Coal -> by applying Coal Upgrading Technology

Inorganic Growth Merger & Acquisition – Mining Asset ( Coal, Metals, Minerals)

– Diversification (vessel acquisition agreement)

Page 27: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Corporate Social Responsibility

Page 28: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

CSR - Community Donations to various local community

Building of power station to supply electricity for local community

Offer job opportunity to local resident (Truck Leasing Program)

Upgrading of common infrastructure

Page 29: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

CSR - Environment Rehabilitating the back-filled land (re-vegetation)

Horticulture (Plant vegetables for local consumption)

Maintain Responsible Mining

Page 30: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Disclaimer The information contained in this confidential document ("Presentation") has been prepared by Agritrade Resources Limited (the "Company"). It has not been fully verified and is subject to material updating, revision and further amendment. It is private in nature and not meant for circulation in any form.

While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.

Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.

This Presentation includes certain statements that may be deemed “forward-looking statements”. All statements in this discussion, other than statements of historical facts, that address future activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include but not limit to market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.

Page 31: FY2014 Annual Results Presentation - TodayIR.com · of global primary energy needs Generates . 41% . of the world's electricity. Used in the production of . 70%. of the world’s

Thank You