pt bumi resources tbk.pptx

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PT. BUMI R ESOURCES, TBK Sindikat 2



INDONESIA MACROECONOMICS

Indonesia’s economy in 2012 posted a considerably high growth of

6.2%, yet at a lower rate than the previous year’s growth of 6.5%.



INFLATION



EXCHANGE R ATE

The average realized exchange rate as of 26 August 2013 stood at

IDR 9,852 per US dollar and IDR 10,841 on the average spotmarket.



INDONESIA MACROECONOMIC OUTLOOK UPDATE

State Budget Realiza tion

2013 per 31 July

GDP Growth

annual percent

change

Inflation

annual percent

change

Exchange Rate

IDR/USD

Treasury BillsInterest Rate

3-month, percent

Indonesian

Crude Oil

USD $ per barrel

Oil Lifting

thousand barrels

per day

Natural GasLifting

barrel of oil

equivalent/day

1,240 1204 1207

108 105 105

840 829 834

9,600 9,852 10,200

5.0 4.2 5.0

Outlook

6.3 5.9 5.9

7.2 8.6 9.2

The outlook for economic growth in 2013 has been lowered from6.3 percent in the 2013 State Budget to 5.9 percent. Of the sevenmacroeconomic assumptions of 2013, only the 3-month statetreasury securities rate (SPN) has not been revised.

GDP Growth (%) 2013

per Category:

State

Budget

Draft 2013

Household

Consumption 5.0 5.1

Government

Consumption 6.7 3.4

Gross Fixed Capital

Formation 6.9 5.3

Export 6.6 4.8

Import 6.7 1.8

Outlook



INDUSTRY ANALYSIS

Between 2000 and 2009 domestic investors withgovernment of Indonesia support, gained majorityownership of Indonesia largest coal producers.During this same time period the coal industry was

subjected to greater regulatory control by provincialand regency governments.

Province Reserve Category (in Million Tonnes)

Probable Proven Indicated % of Total

Reserves

% of Proven

Reserves

Sumatra 3,781 905 4,686 40% 17%

Kalimantan 2,605 4,557 7,162 60% 83%

Other 0 0 0 0% 0%

Total 6,386 5,462 11,848 100% 100%

Estimates of Coal Reserves by Province, 2007



Serious government misstep on regulatory matters, the outlook is for producers to embark upon a substantial expansion program over thenext decade such as Bumi, Adaro, and Kideco. They will also beramping up their production levels to capture the low rank (LR) coalmarket that will be created by PT Perusahaan Listrik Negara‘s (PLN) 1st fast track program, which is expected to add 10,000 MW of new coal-fired capacity between 2011 and 2015 is real challenges for this sector.

Base on mine Indonesia 10th annual review on 2008 (Indonesia coalmining association) trends in mining industry revenue increased by 27%in 2007 over 2006 and net profits increased by a massive 65%. This iseven more significant considering that 2006 net profits were already

17% above the prior year. 2008 is a stark contrast, with the results for listed mining companies showing a decrease in revenues from 2007 of 3% and a much greater decrease in profitability of 33%, as costs havefallen at a lower rate than commodity prices.

The coal miners however managed to show profit growth in both 2007and 2008, given their annually negotiated sales prices were agreed inlate 2007 and early 2008 in the high price environment.

The main listed mining companies continued their strong performance in2007 and until early July 2008 which was reflected in dramatic increasesin market capitalisation. This increase was predominantly due to the run-up in commodity prices, but also due to the listing of new comer, with animplied market capitalisation of US$ 1.6 billion



ISSUES OF INVESTMENT IN THE INDONESIAN MINING INDUSTRY

Some are: Conflict between mining operations and forestry regulations Duplication and contradictions between central and regional

government regulations Need for inclusion in the new mining law of a mining

agreement system similar to a contract of work system Lack of fairness in divestment of foreign interests and mine

closures Taxation issues (tax incentives, VAT on gold and coal,

corporate tax rate) Illegal mining Delay in finalisation of the new mining law Lack of coordination between new investment law and mining

regulations



NEW MINE LAW ( APPROVED ON EARLY 2009)

The new Law was an opportunity to address many of the issues noted above, which havehampered investment in the Indonesian mining sector for a number of years. Unfortunately,initial reactions to the new Law have not been overly positive, and there is a risk that,particularly in the current global economic climate, it will not provide the necessary impetus for investments in the large-scale long life projects, which are needed to strengthen Indonesia’s mining industry.

Some challenges from this new Law are:

Transitional provisions for existing Contracts of Work (CoW) what extent will the terms of existing

Requirement for existing producing to conduct onshore processing of ore within 5 years of enactment of the new Law.

Requirement for existing CoW holders to submit a mining activity plan for the entire contractarea, within one year of enactment of the new Law, or face relinquishment of parts of thecontract area.

Lack of clarity in process for conversion of existing Kuasa Pertambangan (KPs or MiningRights) to Izin Usaha Pertambangan (IUPs) under the new Law.

Potential delays in issuing implementing regulations to regulate provisions of the new Law.

Restrictions on IUP holders using affiliates to provide mining support services.

Dealing with regional/local government officials to obtain IUPs.

Restricted size of exploration and exploitation IUPs, which may hamper large-scale projects etc.



Company Profile PT. Bumi Resources, Tbk

PT Bumi Resources Tbk operates in the exploration andexploitation of coal deposits, including coal mining, andoil exploration activities.

The Company offers its services to cement companiesand power plants, as well as middle and large scaleindustrial companies that involve in chemical, mine, andtextile businesses. Bumi Resources also has interest inmining gold, silver and copper.

The Company went public through an Initial PublicOffering in 1990, fully listing its shares on the Jakartaand Surabaya Stock Exchange.

In 2008, After intense competitive bidding, BUMIacquired Herald Resources Ltd of Australia for Aus$ 552million. This zinc, lead and gold operation is located inNorth Sumatera.




2009, China Investment Corporation (CIC) invested US$1,9 billion in BUMI in the form of a debt-like instrument.The US$ 1,9 billion investment consists of US$ 600million repayable in year four, US$ 600 million in year

five, and remaining US$ 700 million in year six. Theinvestment attracts a 12% annual cash coupon with atotal IRR of 19%, the balance payable at the time of finalmaturities. The funds will be used for debt restructuringand capital expenditure.

2010, Additional capital injection through the issuanceof Non Pre-Emptive shares approved in EGM on June24, 2010.




2011, Through resolution of the Annual GMS dated June27, 2011 the Company distributed dividends toshareholders amounting to Rp 41.78 per share. TheCompany has made repayment of the Tranche A of US$

600 million of the China Investment Corporation (CIC)debt, which would have matured on 30 September 2013: paid almost 2 (two) years earlier based uponmutual agreement.

2012, Through the Extraordinary General Meeting of Shareholders on 21 May, it was decided the change incomposition of members of Board of Commissionersand Board of Directors of the Company.




Income Statement, USD




Cash Flow, USD




Growth Rate, USD




Balance Sheet, USD

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