A Ancora Indonesia Resources I d i R Public Expose Q4 2010 - PowerPoint PPT Presentation

Strictly Private & Confidential Strictly Private & Confidential A Ancora Indonesia Resources I d i R Public Expose Q4 2010 2/16/2011 1

Agenda  Introduction to AIR  Kinerja dan Pencapaian 2010 Kinerja dan Pencapaian 2010  Strategi jangka panjang AIR, Tbk  Business plan 2011 2

Ancora Indonesia Resources (AIR) is a diversified natural resources company with subsidiaries in mining services and oil & gas services  Publicly-listed on IDX, market cap of US$ AIR AIR ~605million* 605million  Professional management and advisory team with experience from world-class companies  Consolidated revenues of US$ ~139 million, EBITDA of US$ ~16 million MNK Bormindo   Market leader in Indonesian mining explosives - Over 20 years proven track record of reliable 50% market share service in drilling and workover services   Currently the only producer in high barriers-to- Strategic platform to further expand in oil & gas entry industry y y  Audited financials 2009: Audited financials 2009:  Audited financials 2009: – Revenues of US$ 31.5 million – Revenues of US$ 126.7 million – EBITDA of US$ 7.6 million – EBITDA of US$ 17.6 million – Net Income of US$ 2.1 million – Net Income of US$ 8.7 million et co e o US$ 8 o 3

Shareholding structure Ancora Ancora Summer Summer Burgundy Burgundy Lain-lain Resources Harvest Assets Corp 52% 17.18% 11.04% 19.78% Shareholding composition Shareholding composition 31 Okt 2009 31 Okt 2009 31 Okt 2010 31 Okt 2010 Ancora Resources 56.70% 52.00% Summer Harvest 20.68% 17.18% Burgundy Assets Corp 14.05% 11.04% Masyarakat 8.57% 19.78% 4

Ancora Indonesia Resources has professional management and advisors with experience from world-class institutions Dewan Direksi yang profesional dengan pengalaman dari …yang didukung oleh tim penasehat yang kuat dan institusi-institusi kelas dunia… mempunyai keahlian relevan di sumber daya alam Dharma Djojonegoro Tengku Nathan Machmud CEO Penasehat Dharma brings more than 12 years of experience with Previously the CEO of ARCO Indonesia with current a focus on strategy and operations in natural posts as the President Commissioner of the state- resources. Previously, he was with Citibank and most resources. Previously, he was with Citibank and most owned gas company PGN owned gas company PGN recently McKinsey and Company where he helped leading natural resources companies in Europe and Asia in their transformation journey towards world- class performance. Aulia Oemar Wibowo Suseno Wirjawan CFO Komisaris MNK Aulia has multiple years of experience in investment Previously the CEO for Jakarta International banking, having worked in JP Morgan and involved in Container Terminal, with current post as Finance broad range of corporate finance transactions in broad range of corporate finance transactions in Deputy of BP Migas the regulatory body for oil & gas Deputy of BP Migas, the regulatory body for oil & gas Indonesia. He is also previously the CFO of MNK, the in Indonesia. leading player of mining explosives in Indonesia Roger Harkin Tjetjep Muljana Business Development Director Business Development Director Penasehat Penasehat Roger brings 25 years of extensive experience in Previously CFO with TOTAL E&P Indonesia with over logistic services. He was in the management team at three decades in oil & gas experience, with current PT AKR Corporindo Tbk, and was the CEO of posts of Executive Advisor for TOTAL. Jardines Group business in Transport Services both in Indonesia and Philippines i I d i d Phili i 5

Ancora Indonesia Resources is committed to upholding highest standards of GCG AIR telah menerapkan kerangka pengawasan yang …yang didukung oleh profesional-profesional ketat dan dinamis… dengan pengalaman dan keahlian yang relevan Judi Magio Jusuf Dewan Komisaris Komisaris Utama responsibility of overseeing and advising management, Retired Major General of the Indonesian Army where he and continuously monitors execution of business served as assistant chief of staff for security in the strategies t t i I d Indonesian army i I Nyoman Tjager Komite Audit & Manajemen Risiko Komisaris Independen Currently the President Commissioner of the Indonesian appointed by and responsible to BOC. Responsible to Stock Exchange, Vice President Commissioner of PT. Stock Exchange Vice President Commissioner of PT assist BOC to monitor and evaluate company s assist BOC to monitor and evaluate company’s Indocement preparation and reporting of its financial statement and implementation of risk management, internal controls, Edwin Stamboel audit processes and corporate governance Komisaris Previously a Director of the Indonesian Stock Exchange Previously a Director of the Indonesian Stock Exchange Usman Darus Komite Nominasi & Remunerasi Komisaris Previously CEO of AIR recommend to BOC system and procedure of recommend to BOC system and procedure of replacement of BOC and BOD members and evaluate remuneration policy Pat Lisk Anggota Komite Audit 25 years of risk management experience. Previously Ri k M Risk Management Partner at Ernst & Young, t P t t E t & Y 6

7 Strategi jangka panjang AIR, Tbk Achievements 2010 Achievements 2010 Business plan 2011 Sekilas Perseroan S     Agenda

Despite plentiful challenges, 2010 was a very good year for AIR Despite the many challenges of 2010, from weather challenges, the downturn of the drilling industry and the weakening of the US$, AIR enjoyed many accomplishments: 1 Increasing financial performance in 2010 vs 2009 2 On-track construction for MNK-2 Finalization of coal mine acquisition in East 3 3 K li Kalimantan 8

Despite weakening US$ and the drilling industry downturn, AIR’s 1 financial performance improved vs 2009 ESTIMATE – UNAUDITED FIGURES Increase in Categories 2010 estimate 2009 audited percentage Revenues ~ Rp 1.36 trillion Rp 1.32 trillion 3% EBITDA ~ Rp 167 billion Rp 147.7 billion 13% TBD but likely to Net Income Rp 18.6 billion TBD increase 9

The construction of MNK-2 is on-track and is expected to start 2 commissioning on Jun 2011  Commissioning expected Jun 2011  Production target of 85.000-90.000 tons for 2011, increasing to 140.000 ton in 2012  Significant increase of margin for MNK with expected EBITDA increase of 40-60% in 2011 increase of 40 60% in 2011 (estimated using 2010 margins)  Decreasing working capital as i import needs decreases t d d 10

Ancora, through a sister company, has acquired a majority stake in 3 a coal mine in Kutai Kartanegara Gambaran ringkas  IUP with total concession area of~8500 ha  Located about 41km northeast of Samarinda  There are two formations running through the concession: Formasi Kampung Baru and Formasi Balikpapan  Coal specification as follows: – 5000-5500 Kcal/Kg (ADB) – 35-45% TM (AR) – 0.1-0.7% Sulphur (ADB) Sekilas operasional Sekilas operasional  Operational with sales of 30-50 thousand tons per month  Low stripping ratio of 3 to 6  Easy logistics: E l i ti – 16 km hauling road ke jetty – 12-20 jam to anchorage with 300 ft barges 11

The mine is very promising geologically and has low cash costs 3 due to its easy logistics Kilasan Geologis  Two existing operational pits  We are in the process of conducting a JORC drilling program to determine total reserves: – We have drilled 26 holes with total depth of ~2832 meter. – Total area explored only 550 ha from total concession area of ~8500ha  JORC certified resources of 50+ million tons  Drilling program ongoing Sekilas finansial  Cash cost to barge of around $ 23-27/ton  Average selling price of $ 31 36/mt FOB  Average selling price of $ 31-36/mt FOB Barge  Existing long-term contract with an Indian buyer, with several other buyers in negotiation negotiation 12

AIR has signed a CSPA with Ancora Energy to acquire RKBM 3  AIR will buy 50.6 to 58% ownership stake in RKBM from Ancora Energy  At the price of $ 0.6/ton per proven JORC reserves p p p  Minimum payment of US$ 10.5 juta and maximum ofUS$ 24 juta  This CSPA is conditional upon RUPS approval, Bapepam approval, independent p pp , p p pp , p appraisal and waiver from our corporate lender. In principle we feel that there will be no fundamental issue in getting all these approvals  We target to finalize acquisition by Q2 2011  We target that most of the funding will be through equity injection to safeguard AIR’s net gearing 13

Agenda  S Sekilas Perseroan  Kinerja dan Pencapaian 2010 Kinerja dan Pencapaian 2010  Strategi jangka panjang AIR, Tbk  Business plan 2011 14

Our aspiration is to grow rapidly within the next 3-5 years both organically and inorganically Fase 3: Q2 2012 - 2013 Q2 2012 - 2013 Fase 2: Fase 2: Fase 1: Q3 2011-Q1 2012 2010 – Q2 2011  Acquire platforms for  Ramp up RKBM and  Reduce debt growth in upstream MNK ‐ 2  Make 1 ‐ 2 acquisitions in assets ensure MNK2 is assets, ensure MNK2 is  Build related businesses B ild l t d b i mining and/or oil & gas i i d/ il & on track eg barging,  Ramp up acquisitions  Inject/integrate assets  Increase trading into AIR liquidity and research  Increase capital market coverage awareness of AIR  Increase capital market  Improve corporate awareness of AIR governance We are here 15