PT DE DELTA A DUNI DUNIA A MAKM AKMUR UR Tbk bk COMPANY ANY - - PowerPoint PPT Presentation

PT DE DELTA A DUNI DUNIA A MAKM AKMUR UR Tbk bk

COMPANY ANY PR PRES ESENT ENTATIO TION N | January 2 2012

Overview

3

Delta Overview

100% (3)

NTP Ltd(1)

40.06%

Shareholding Structure Public Shareholders

59.94%

Share Data

Bloomberg Ticker DOID.IJ Reuters Ticker DOID.JK Shares Outstanding 8,148,494,232 Free Float 59.94% Share Price

(As of 30 Dec 2011)

Rp 670 Market Capitalization (4) US$ 602 million Property Portfolio(2)

Notes: 1.Northstar Tambang Persada Ltd., a company owned by a consortium of investors consisting of affiliates/nominated investment vehicles of TPG Capital, Government of Singapore Investment Corporation, China Investment Corporation and Northstar Equity Partners 2.As of 1 August 2011, Delta had a 48.99% interest in PT . Nusamakmur Cipta Sentosa (“NCS”) and 41.00% interest in PT. Sanurhasta Mitra (“SHM”). Further divestment of the property portfolio is expected to be done in the future 3.Less one share as required by Indonesian company regulations 4.Based on an exchange rate of Rp.9,068 = US$1.00 Source: Company data and Bloomberg

Key Developments

4 June 2010

BUMA signed a new 3-year mining services contract with Darma Henwa (KPC)

Sep 2010 May 2010

BUMA signed a series of bi-lateral financing agreements with Komatsu Astra Finance, Bank Danamon and Bank Permata BUMA secured larger equipment supply with firm orders totaling ~US$280mm for delivery up to 2012 with Caterpillar, Komatsu and Hitachi

Nov 2010

• BUMA signed a new 3-year mining

services contract with PT Arutmin Indonesia for Pit 4-7 of Senakin mine site

• Successfully refinanced original LBO

debt of $285mm syndicated loan and $315mm HY bond with a $600mm syndicated bank loan. Reduced average cost of debt by over 450bps

Dec 2010

• BUMA was awarded a 5-year mining services

contract from Berau Coal for Pit East 2 (Lati)

• NTP Ltd announced a change in the lineup of its

non-voting shareholding. TPG, GIC, CIC and Northstar Equity Partners are now the shareholders of NTP

Jan 2011

Implementation of SAP phase 1: Finance, Accounting and Enterprise Resources Mgmt.

May 2011

BUMA completed US$800mm loan financing, comprised of US$750mm 7-year term facility and US$50mm 3-year revolving facility and US$500mm 5-year plain vanilla interest rate swap. Removed the restrictive covenants, double average life and reduced

• pricing. Lower balance sheet (funding) and interest rate risks.

Delta completed a Rights Issue, raising gross proceeds of ~US$142mm. Proceeds will be used to fund growth and/or potential acquisitions and other general corporate purposes

July 2011 Dec 2011/Jan 2012

• BUMA signed contract amendment with

Gunungbayan Pratama Coal. Contract was extended to 2017 with total target OB Removal volume of 260mm bcm

• Contract amendment with Perkasa

Inakakerta until 2017 with total target OB Removal volume of 261mm bcm and coal hauling of 29mm tons

5

Favorable Industry Dynamics

has High Bargaining Power

Strong Coal Demand



Continued strong coal demand



Fixed coal volumes as specified in the long-term sales contracts



Less impacted than other coal producing countries due to cost competitiveness

Indonesia as Lowest Marginal Cost Producer, Formula-Based Pricing and Term Contracts Rising Coal Prices Falling Coal Prices



Mine owners may accelerate production to capitalize on high prices, subject to fleet constraints



Marginal coal deposits become profitable

Increase in Coal Price

High Barriers to Entry High Cost of Contractor Switching



Proven track record and strong reputation



Term contracts



High capital investment



Strong ties with local communities



Long transition downtime



High opportunity cost



Loss of mine site knowledge

Unique Positioning

Lack of Well Capitalized, Reputable and Technically Proficient Contractors

New Contracts from Existing and New Customers

Source: BUMA Company Data

DEWA

Robust Contract Backlog

Contract Underwriting Criteria



Coal Marketability – Coal Quality must meet minimum requirements



Customer Requirements – Shareholder reliability / sufficient risk mitigates – Significant reserves – Low operating costs



Profitability of Contract – Specified minimum return – Contract duration

(1) Extended until August 2012 to complete existing work, (2) operates since April 2011 under

Head of Agreement, contract was signed January 2012

BUMA’s Existing Contracts

Kalimantan

6

No Customers Period 1 Adaro (Tutupan) 2009-2013 2 Adaro – Coal Hauling 2009-2013 3 Kideco (Extension) 2004-2019 4 Berau Coal (Lati) 1998-2018 5 Berau Coal (Lati East 2) 2011-2016 6 Berau Coal (Suaran) 2003-2018 7 Berau Coal (Binungan) 2003-2018 8 Darma Henwa (KPC) 2010-2013 9 Marunda Graha Mineral - MGM 2003-2012 10 Lanna Harita Indonesia 2001-2013 11 Bayan - PIK 2007-2017 12 Bayan - GBP 2007-2017 13 Arutmin (Senakin Pit 1) 2008-2012 (1) 14 Arutmin (Senakin Pits 4-7) 2010-2014 15 KPC (Elang) 2011-2014 (2)

Track Record of Growth

* Preliminary data based on truck counts for Oct-Dec figures Source: BUMA Company Data

Implied Stripping Ratio Coal Production Volume Overburden Removal Volume

mm bcm mm tons 7 191 207 262 278 292 334

2006 2007 2008 2009 2010 2011* 32.3 32.7 36.4 32.8 35.0 34.7 2006 2007 2008 2009 2010 2011* 5.9x 6.3x 7.2x 8.5x 8.3x 9.6x 2006 2007 2008 2009 2010 2011*

BUMA’s Financial Performance

Notes:

1) Revenues net of fuel costs, 2) EBITDA to net revenue

Source: BUMA Company Data

8

487 504 580 418 504

2008 2009 2010 9M10 9M11

US$ mm

Sustainable Net Revenue Growth (1)

199 202 227 165 175

2008 2009 2010 9M10 9M11

US$ mm

Rising EBITDA

40.9% 40.0% 39.1% 39.6% 34.6% 2008 2009 2010 9M10 9M11

Healthy EBITDA margin (2)

95 75 209 195

2008 2009 2010 9M11

US$ mm

Capital Expenditure

Interim Results

Interim Production Results



During 4Q 2011, OB(1) Removal volume, which accounts for c.80% of BUMA’s revenue, reached 86 mm bcm(2) (7% increase YoY, down 8% QOQ) and Coal Production of 9.1 mm tons (-5% YoY and -1% QoQ).



Higher frequency and intensity of rainfalls in Nov and Dec 2011 negatively affected production in 4Q 2011.



SR(3) increased significantly to 9.5x in 4Q 2011 (compared to 8.4x in 4Q 2010). On a quarterly basis, SR declined by 7% QoQ from 10.2x in 3Q 2011.



Average OB hauling distance increased by 7% YoY to 2.21km in 4Q 2011 vs. 2.05km in 4Q 2010.

Note: 1.Defined as overburden, which is the material that is removed from the earth’s surface to uncover the coal 2.Million bank cubic metres 3.Defined as stripping ratio, which refers to the volume of waste rock or overburden removed to extract 1 tonne of coal

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OVERBURDEN REMOVAL COAL PRODUCTION COAL HAULING

61 75 76 80 75 80 93 86 1Q 2Q 3Q 4Q* 2010 2011

mm bcm

8.0 8.5 9.0 9.6 7.7 8.8 9.1 9.1 1Q 2Q 3Q 4Q* 2010 2011

mm tons

3.1 3.1 3.0 3.2 2.2 3.0 3.2 3.1 1Q 2Q 3Q 4Q* 2010 2011

mm tons *Preliminary data for 4Q2011, based on truck counts

Delta / BUMA – Key Financial Highlights (1)

BUMA Key Highlights:



Net revenue (excl. fuel) in 9M 2011 increased 15% YoY to Rp 4,377bn. In US$ terms net revenue grew 20% YoY from US$418MM to US$504MM



EBITDA reached Rp 1,515bn (+1% YoY). In US$ terms EBITDA grew by 5% YoY to US$175MM, translating into and EBITDA margin to net revenue of 34.6% in 9M 2011.



Improvement in Q3 2011 performance. EBITDA margin to net revenue expanded to 37.4% in Q3 2011 vs. 29.3% in Q2 2011 and 36.8% in Q1 2011.



Capital expenditure during 9M 2011 totaled US$195MM, in which US$182MM was for heavy equipment purchases. Delta Key Highlights:



Delta’s 9M 2011 consolidated EBITDA remained flat at Rp 1,461bn and we posted a net loss of Rp 12bn due to, among others, a significant increase in depreciation and amortization expenses (+36% YoY), lower forex gain (-54% YoY) and one time expenses of US$18.2MM, recorded in Q2 2011, associated with a refinancing.



In actual US$ terms, consolidated EBITDA grew 4% YoY to US$168MM and recurring net profit was at US$24.2MM (-7% YoY)

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Delta’s Consolidated Profit and Loss Delta’s Consolidated Balance Sheet

In Rp bn Dec-10 Sep-11 YTD Cash 549 1,651 201% Trade receivables 1,335 1,625 22% Other current asstes 1,000 1,451 45% Fixed assets - net 4,096 4,840 18% Other non-current assets 657 634

• 4%

TOTAL ASSETS 7,637 10,201 34% Trade payable 676 804 19% LT debt - current 976 473

• 51%

Other current liabilities 244 223

• 9%

LT debt - non current 5,517 7,321 33% Other non-current liabilities 88 352 301% TOTAL LIABILITIES 7,501 9,173 22% TOTAL EQUITY 136 1,028 656%

Delta / BUMA – Key Financial Highlights (2)

BUMA’s Consolidated Balance Sheet

In R n Rp bn p bn 9M 9M10 10 9M 9M11 11 Yo YoY Gross revenue 4,192 4,979 19% Revenue excl. fuel 3,806 4,377 15% Gross profit 956 780

• 18%

Operating profit (loss) 756 483

• 36%

EBITDA 1,473 1,461

• 1%

Pretax profit (loss) 587 94

• 84%

Net et pr prof

• fit (

(los

• ss)

352 352 (12) 12)

• 104%

104% Recur urring N ng Net pr prof

• fit U

US$mm (1) 26. 26.0 24. 24.2

• 7
• 7%

BUMA’s Consolidated Profit and Loss

In Rp bn 9M10 9M11 YoY Gross revenue 4,192 4,979 19% Revenue excl. fuel 3,806 4,377 15% Gross profit 989 802

• 19%

Operating profit 822 559

• 32%

EBITDA 1,506 1,515 1% Pretax profit 628 229

• 64%

Net profit 419 118

• 72%

Recurring Net profit US$mm (1) 32.2 28.5

• 11%

In Rp bn Dec-10 Sep-11 YTD Cash 533 413

• 23%

Trade receivables 1,335 1,625 22% Other current asstes 3,444 4,041 17% Fixed assets - net 4,000 4,768 19% Other non-current assets 562 553

• 2%

TOTAL ASSETS 9,874 11,401 15% Trade payable 676 804 19% LT debt - current 976 473

• 51%

Other current liabilities 167 191 14% LT debt - non current 5,517 7,321 33% Other non-current liabilities 84 352 318% TOTAL LIABILITIES 7,421 9,141 23% TOTAL EQUITY 2,453 2,259

• 8%

(1) excluding non-recurring items

BUMA’s US$ 800MM Loan Facility

BUMA’s US$ 800MM 2011 Bank Facility

• Facility Size: US$800MM (US$750MM term and US$50MM revolver)
• Tenor: 7 year term (5 year average life) and 3 year revolver
• Pricing: 3M LIBOR + 3.75% stepping down to 3.25% over time based on BUMA’s debt to

EBITDA ratio (0.25% extra margin for WHT neutral lenders)

• Use of proceeds:

– Refinancing US$585MM of existing 2010 SMBC syndicated facility – Repay existing bi-lateral bank facilities – Finance BUMA’s capital expenditure of approx. US$ 80-90MM

• Rationale: platform to support medium to long term growth of BUMA

– Extend tenor, with average life increasing from 2.6 years (with cash sweep) to 5.0 years – Remove restrictive covenants from LBO transaction in 2009 – Reduce pricing – Restructure security and covenants to allow future capex and debt – Remove preferential treatment for specific lenders

• Lenders: a club of 10 banks (both International and Local banks)
• Facility signed on 13 May 2011

14

BUMA Financing Transformation 2009–2011

Nov 2009 Apr 2011 May 2011 Dec 2010

Interest Rate Swap — March / April 2011

• US$500MM Vanilla Interest-Rate Swap
• Interest-rate risk mitigant
• Together with the May 2011 refinancing fixed rate

pricing dropped from 14.7% on 2009 high yield bonds to 6.33% for the swapped loan, including all WHT charges

• Underlying cash flows match the loan – achieves

‘hedge’ accounting US$800MM Corporate Loan — May 2011

• US$800MM refinancing, capex line and revolver

– Conversion of LBO debt structure to ‘corporate loan’ structure – Removal of all materially restrictive covenants (cash sweep, limits on indebtedness, restrictive financial covenants, etc.) – Tenor extension, double average life – Reduce balance sheet (funding) risk and interest expense Capex Lines Going Forward

• Approx. US$80 - 90MM available for capex under the

2011 Bank Facility

• Substantial committed capex financing available from

vendor finance providers for future growth

Key Milestones

Shareholder Change — December 2010

• In December 2010, a consortium consisting of

TPG Capital (“TPG”), Government of Singapore Investment Corporation (“GIC”) and China Investment Corporation (“CIC”), collectively acquired non-voting interests in NTP, the Northstar-led entity that owns 40% of Delta – TPG is a leading private equity firm based in the U.S. – GIC manages the Singapore government’s long-term foreign reserves – CIC manages China’s sovereign wealth fund Leverage Buyout Financing — November 2009

• US$600MM total financing
• Sources

– US$285MM Four Year Syndicated Loan – US$315MM 144A / Reg S High Yield Bond due 2014

• Uses

– US$260MM leverage recap of BUMA balance sheet – US$310MM refinancing of existing debt – US$30MM of fees and general corporate purposes

• Syndicated Loan / High Yield Bond were structured with a security

sharing deed, making them fully pari-passu

• Cash and Account Management Agreement (“CAMA”) structure in

place for lenders to control cash – Debt service is first ranking

• Typical tight LBO covenants, preferential to Senior Lenders

Bond/Bank Refinancing Call — December 2010

• US$600MM single-tranche five year bank loan

raised to take out 2009 bank loan and high yield bond

• US$315MM Tender Offer, Consent Solicitation

and Tax Call due to changes in WHT regime

• Tender and Consent were priced at 106%.

Positively received by bondholders, 97%

• participation. 3% were redeemed through tax call
• Structure was substantially similar (tight

covenants, CAMA) but with substantially cheaper rates

• Deal was completed prior to shareholder changes

15

LBO Structure Corporate Borrower

 BUMA has been able to lower its cost of debt through successful refinancings – 2009 Facility and High Yield Bond had a blended interest expense of 10.3% (includes WHT) – 2010 Facility had an interest expense of 5.6% (includes WHT) – 2011 Facility has an interest expense of 4.3% (includes WHT)  BUMA has also entered into a 5-year interest rate swap to fix 62.5% (US$500MM) of its US$800MM facility

Cost of Debt and Fixed vs Floating Composition

(1) Only includes debt related to LBO and refinancing; excludes vendor financing and capex financing facilities; includes withholding taxes (2) All financing assumes 3M LIBOR rate of 0.4% (3) Assumes mid margin rate for US$ 800mn Facility of 3.5% (4) Fixed rate (inclusive of hedging cost) based on interest rate swaps 5.4% 14.7% 5.6% 4.3% 6.3%

Cost of Debt (1, 2)

2009 - Post US$600MM LBO financing 2010 - Post US$600MM refinancing 2011 - Post US$800MM refinancing

(3)

Fixed / Floating Debt Mix (1)

%

52.5%

• 62.5%

47.5% 100.0% 37.5%

2009 - Post US$600MM LBO financing 2010 - Post US$600MM refinancing 2011 - Post US$800MM refinancing

16

(4)

Average Debt cost of 10.3% 840 basis points reduction in 5 year fixed rate debt financing

Fixed rate Floating rate Fixed rate Floating rate

17

Bank Market Appetite

Increasing Liquidity Available Over Time (US$MM)

Participant Banks 2009 US$315MM Bond Counterparties 2010 US$600MM Facility – Secondary 2011 US$800MM Facility – Secondary 100+ accounts in primary 5 banks in secondary TBD Issuer’s International Counsel Issuer’s Indonesian Counsel Lenders’ International Counsel Lenders’ Indonesian Counsel

 The Company continues to expand its banking relationships  Strong demand for the recent US$800MM facility  Looking to further enhance its access to liquidity and credit markets by tapping export credit agencies

Participant Banks / Counterparties in the Facilities

Macquarie Noonday

2009 US$285MM Facility 2010 US$600MM Facility 2011 US$800MM Facility

285 650 1,245 2009 Loan 2010 Loan 2011 Loan

Counterparties in Bi-Lateral Capex Facility

18

Total Debt Financing - $2,298MM

2009–2011YTD (US$MM)

 Signing Date: March 22, 2010  Approved line: US$80MM (increased to US$125MM on August 18, 2010 and further increased to US$150MM on March 7, 2011)  Amortization: Straight line basis over 4 years and over 7 years for larger equipment  Signing Date: September 22, 2010  Approved line: US$2MM  Amortization: Straight line basis over 4 years  Signing Date: February 8, 2011  Approved line: US$45MM (based on each Offer Lease and Acceptance)  Amortization: Straight line basis over 6 years  Signing Date: February 18, 2011  Approved line: US$32MM  Amortization: Straight line basis over 7 years

 In the last 18 months BUMA has engaged 22 separate debt financing counterparties on either a syndicated or bi-lateral basis Bank / Counterparty Financing Details 285 600 800 315 298

2009 2010 2011 2010-2011 Bank Loan Bond Limited Recourse Lines

Appendix

152 132 53 42 32 168 134 70 62 47 42 177 140 73 66 49 43 66 Indonesia Australia Colombia South Africa Russia China 2009 2010E 2011E 47 52 68 71 95 102 120 188 217229 252 281 316 365 391 406 132 166 56 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E

 Indonesia is the world’s largest exporter of thermal coal, with a market share of ~25% in 2009 and is rising  Import demand growth is driven by India and China where thermal coal remains the principal (and most times

the only) source of power

 Indonesia thermal coal production is forecasted to grow by ~10% per annum from 2010 until 2014

mt c.25%+ of international traded coal supply

World Thermal Coal Exporters

Positive Coal Outlook

Sources: AME, EIA, Press articles, various companies’ reports

Indonesia Coal Production

1996 – 2009 CAGR 13.8% 2010 - 2014 CAGR 9.6%

mt

20

Source: Wood Mackenzie. Excludes shipping costs.

Illustrative Production Prices

Supply Transshipment Customer Customer $7/t $7/t $19/t $16/t $19/t $14/t $11/t Northern China SOUTHERN CHINA INDIA South Africa Australia Indonesia $18/t

Source: AME

10 20 30 40 50 60 70 80 50 100 150 200 250 300 350 400 450 500 550 600 Primarily Indonesia

Global Cost Curve Shipping Costs for Key Coal Producer

Indonesia Competitiveness

 Indonesia has strong competitive advantages in coal exports because its production cost is the lowest in the

world and it benefits from lower freight costs and delivery lead times due to close proximity to major importing countries in Asia

21



Coal mining contractors provide overburden removal, coal mining and coal transportation services

– The contractors hire their own labor force and own and operate fleets of heavy equipment such as bulldozers, excavators, cranes, drilling machines, prime movers and dump trucks



Contractors are responsible for the planning and scheduling of mining operations within parameters set by the mine owners

– The mine owners advise contractors, in advance on a yearly basis, of the required coal and overburden production volumes according to the overall mine plan. The contractors then perform short-to-medium term planning and scheduling

• f mining operations



Coal mining contractors play a critical role in the Indonesian coal industry, producing ~90% of coal output



BUMA is the second largest mining contractor in Indonesia with scale advantages

Coal Mining Contracting

Overburden Removal / Coal Mining Load & Haul

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Overview of BUMA PT Bukit Makmur Mandiri Utama

One of the Largest Mining Contractors in Indonesia (1)

 Long Term Mine

Planning

 Drilling and

Blasting

 Stripping

Excavation

 Haulage  Road Building and

Maintenance

 Reclamation

High Value-add to the Coal Mining Value Chain

Mine Owners’ Scope of Work

(1) BUMA estimate based on public information relating to production volume of mining contractors, as of 2009 Source: BUMA Company Data

Barging Processing Hauling Overburden Removal Geology &Planning Coal Mining

BUMA’s Scope of Work

PAMA 32.2% BUMA 16.7% Thiess 13.2% SIS 8.8% Cipta Kridatama 5.3% Leighton 3.1% Darma Henwa 3.1% Others 17.6% 

BUMA provides open-cut mining services to the largest coal producers in the country

–

Its customers include key coal producers, such as Adaro, Arutmin, Bayan, Berau, Kideco and Lanna Resources

–

Its operations are located in Central, East and South Kalimantan

–

It operates under long-term mining contracts with coal mine owners for periods ranging from 3 to 10 years



BUMA has more than 10,000 employees and operates more than 2,900 units of heavy equipment

24

BUMA: Dominant Market Position

Market Share

• No. of Key

Customers Fleet Flexibility Low Cost Diversified Customer Base Local Relationships Suppliers Allocate Between Mines

17% 10

    

Big Local Company 32% 7 ?

   

Foreign Company 16% 3



? ? ? ? Others

(15+ Companies)

35% ?



? ? ?



(1)

Industry Competitive Landscape

(1) Excludes mines owned by parent company Source: 2008 BUMA Company Data

Unique Positioning

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BUMA: High Quality and Diversified Customers

Coal Production in 2010 (mm tonnes) BUMA’s Share Relationship Since

17.3 74% 1994

(2)

20.4 6% 2008 42.2 18% 2002 29.0 24% 2004 11.9 20% 2007

(1) Gross Revenue, based on IDR Source: BUMA, Companies websites Bayan Group

BUMA Revenue by Customer 9M11 (9M10) (1)

Berau 27% (30%) Adaro 14% (16%) Kideco 15% (15%) Bayan Group 15% (15%) Lanna 4% (4%) Dewa 4% (3%) Arutmin 10% (6%) Others 11% (10%)



All contracts are either paid in US$ or in Rupiah pegged to the prevailing exchange rate



Naturally hedged and no requirement for derivatives



BUMA reports in Rupiah due to local regulations – creates non realized FX gains and losses

26

Formula-Based Pricing That Allow Fuel Cost Pass-Through

Source: BUMA Company Data

Cost Structure

BUMA’s Cost Structure for 9M2011 (9M2010)

Non-fuel Costs



Some contracts contain pre- determined cost escalation payments



One off payments under extraordinary circumstances

US$ Based Company

Fuel Costs



All contracts have a cost pass through mechanism for fuel



As of 2010, 60% of customers are now securing their own

• fuel. Positive for

working capital

Fuel 14% (12%) Spare parts, R&M 27% (29%) Other consumables(1) 10% (12%) Salary 13% (13%) Depreciation 22% (21%) Overhead 6% (7%) Others 8% (6%)

(1) Includes of cost of tires, blasting and drilling

BUMA’s Organizational Transformation

Organizational transformation in place from a family run business to become a professional run company

2009 Organizational Structure Current Organizational Structure

President Director

• B. Kuesar

Ops & Biz. Dev. Director

• A. Kharis
• Fin. & Acc.

Director

• W. Surnata

Management Background

Name Short CV Description

Budikwanto Kuesar Has served as the President Director of BUMA since 2009. He was the Managing Director of BUMA from 2001-2009. He began his career at PT United Tractors Tbk as Administration Department Head in 1974 and held several positions until becoming the Deputy General Manager for the Plant Hire Mining Division in 1991 Akhil Puri Has served as the Vice President Director of BUMA since Jan 2012 and Director of Delta since 2011. He has also been a member of TPG’s Operating Team since

• 2008. He held various leadership positions at General Motors both in Detroit and Shanghai where his last assignment was Managing Director – Exports and

Executive Director in Global Purchasing & Supply. He served at Unilever India in various leadership roles both in Manufacturing and Project Management Joseph Hurst An Australian National with 24+ years of experience in mining and heavy equipment with various companies in Australia and Indonesia, including Leighton Contractors Indonesia, Thiess Contractors (Australia and Indonesia) and Roche Bros. & Roche Mining (Australia). Prior to joining BUMA in July 2010, he was the Plant Manager at Leighton Contractor Indonesia. His primary responsibility at BUMA is to maintain and monitor the mining fleet to maximize equipment Sujoko Martin He has 18+ years in the field of accounting in various companies within Astra Group. His last position was as PT Bina Pertiwi, a subsidiary of PT United Tractors Tbk, as a Finance and Accounting Director. He joined BUMA in October 2010 as Finance and Accounting Director Sjamsi Josal He has spent 6+ years as a Project Manager for PT Thiess Contractors Indonesia and is responsible to provide total mining solution to PT Kaltim Prima Coal (KPC). He joined BUMA in November 2010 Eddie Arsyad Has more than 28 years diverse experience in Human Resources, Engineering, Capital & Contracts Management as well as in-depth exposure in government, media & public and community relations. Spent 23+ years with PT INCO Tbk. and his last position was HR Director. He joined BUMA in December 2011 Sorimuda Pulungan Has 17+ years of experience in mining industry (gold/nickel/coal). Spent 9+ years at PT INCO Tbk. where his last position was General Manager Mine Engineering. He joined BUMA in January 2012

27

President Director & CEO

• B. Kuesar

Plant & Maint Director

• J. Hurst

HR & GA Director

• E. Arsyad

Operations Director

• S. Josal

Finance & IT Director

• S. Martin

BD & Eng Director

• S. Pulungan

Vice President Director & COO

• A. Puri

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Delta Dunia’s Board Members

President Commissioner and Independent Commissioner : Hamid Awaludin Independent Commissioner and Head of Audit Committee : Siswanto Independent Commissioner : Nurdin Zainal Commissioner : Patrick Walujo Commissioner : Ashish Shastry Commissioner : Fei Zou Commissioner : Sunata Tjiterosampurno

Board of Commissioners Board of Directors

President Director : Hagianto Kumala Director : Thomas Husted Director : Akhil Puri Director : Ariani Vidya Sofjan Director : Gunawan Angkawibawa

PT De Delta lta Dunia Dunia Makmu akmur Tb Tbk. Cyber 2 Tower, 28th Floor HR Rasuna Said Blok X-5 No.13 Jakarta 12950 – Indonesia Phone: +6221 2902 1352 | Fax: +6221 2902 1353 www.deltadunia.com | ir@deltadunia.com Thomas Husted (CFO) thomas.husted@deltadunia.com Rani Sofjan (Investor Relations & Corporate Secretary) rsofjan@deltadunia.com

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Disclaimer

These presentation materials have been prepared by PT Delta Dunia Makmur Tbk (“Delta”) (the “Company”), solely for the use at this presentation and have not been independently verified. Information relating to PT Bukit Makmur Mandiri Utama (“BUMA”) has been included with its content, and has not been independently verified. This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate it to (all such persons being referred to as relevant persons). This presentation is only directed at relevant persons and any investment or investment activity to which the presentation relates is only available to relevant persons or will be engaged in only with relevant persons. Solicitations resulting from this presentation will only be responded to if the person concerned is a relevant person. Other persons should not rely or act upon this presentation or any of its contents. You agree to keep the contents of this presentation strictly confidential. This presentation material is highly confidential, is being presented solely for your information and may not be copied, reproduced or redistributed to any other person in any manner. In particular, this presentation may not be taken or transmitted into Canada or Japan or distributed, directly or indirectly, in the Canada or Japan. Further, this presentation should not be distributed to U.S. persons except to (1) qualified institutional buyers in reliance on the exemption from the registration requirements of the Securities Act provided by Rule 144A and (2) to non-U.S. persons outside the United States in an “offshore transaction” as defined in Regulation S of the U.S. Securities Act of 1933, as amended. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Company nor any of its affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any such information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice. In addition, certain information and statements made in this presentation contain “forward-looking statements.” Such forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “considering,” “depends,” “estimate,” “expect,” “intend,” “plan,” “planning,” “planned,” “project,” “trend,” and similar expressions. All forward-looking statements are the Company's current expectation of future events and are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking statements. Caution should be taken with respect to such statements and you should not place undue reliance on any such forward-looking statements. Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, the Company makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares or other securities of the Company or BUMA and neither any part of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision to purchase securities in any offering of securities of the Company or BUMA should be made solely on the basis of the information contained in the offering document which may be published or distributed in due course in connection with any offering of securities of the Company or BUMA, if any. By participating in this presentation, you agree to be bound by the foregoing limitations.