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Why Invest in Adaro?

The Power of Positive Energy


Each time we ship Envirocoal, the cleanest thermal coal available on the export market, on schedule and as ordered to our loyal customers, we deliver positive energy.

In the passionate work of each of our employees, in the way we conduct ourselves, in the impact that we have on those around us and in the contributions we make to society, we deliver positive energy.

As we turn a non-renewable resource into a renewable one by building strong, healthy communities surrounding our operations, as we create maximum sustainable value from Indonesian coal, we deliver positive energy.

Here are eight core reasons to believe in us:

With three decades experience in the coal industry, Adaro’s business has grown from a single-site coal mine to various mines in Indonesia and Australia, providing us with accesses to major coal importers in the Asia Pacific region.

The Adaro Group’s coal products portfolio spans from sub-bituminous thermal coal for power generation to premium hard coking coal product, an essential, non- substitutable component in steel making. In this industry, it all boils down to the reserves and resources. Our reserves are one of our main strengths and over the years we have grown and maintained our coal resources at 4.6 billion tonnes and coal reserves at 1.1 billion tonnes (equity adjusted).

We always seek for ways to increase our value-creation capability, from commencing operations of our assets, to listing our subsidiary in the stock exchange. In late 2021, we completed the IPO of PT Adaro Minerals Indonesia Tbk (AMI) on the IDX. AMI was officially listed on January 3, 2022, with the ticker code ADMR. We expect that this IPO will further increase AMI’s value creation capability as the company under AEI managing non- coal mineral assets.

We have begun our journey to diversify our business model many years ago. The integrated business model enables us to control cost and manage risks better. It also puts us in a competitive position to capture the various growth opportunities in each pillar, which will create a more diversified revenue stream to balance the volatility of coal and ensure business sustainability.

The advent of green economy requires various metals and minerals to support it. We are well positioned to capture the opportunity through AMI, which will focus on managing and developing our non-coal mineral assets. AMI currently produces metallurgical coal, a key raw material in steelmaking. We have also signed a Letter of Intention to Invest in an aluminum smelter project, in line with Indonesia’s objective to conduct ore processing and down streaming activities in the country.

We take a prudent, careful approach to capital spending to ensure optimum balance between the money reinvested into the business to capitalize the opportunities for maximum growth rate and the returns paid out consistently to the investors. Since our IPO in 2008, we have gone through the up and down cycles of the coal market, but never have we compromised our commitment to pay dividends to the shareholders. Cumulatively from 2008, we have paid approximately US$1.7 billion in dividends with average payout ratio of 46%.

On cost management, we take an approach of continuous improvement leveraging on our integrated business model. We conduct continuous evaluation to ensure that we apply the most efficient process without compromising quality. Our Indonesian thermal and metallurgical coal operations are in the first quartile of the industry’s global cost curve, and we continue to improve the cost competitiveness of our Australian operation. This cost competitiveness resulted in one of the highest operational EBITDA margins in the sector, reaching 53% of operational EBITDA margin in 2021.

Strong management is a pillar of our success. Leadership continuity and experience are the keys to successfully executing our strategy. Our management has been consistent with strategy execution while also being nimble in reacting to business developments. With extensive experience in the industry, our management team continuously creates sustainable value and focuses on both the short-term and long-term interests of shareholders and stakeholders.

We will not be where we are right now had we not integrated ESG into our operations. Since the beginning, we have been committed to engaging with the neighboring communities, applying good mining practices, and minimizing our environmental impacts. In 2021, our subsidiary, PT Adaro Indonesia, received PROPER Gold Award, the highest recognition in environmental management from the MoEMR for the fourth time, and MSCI has recently upgraded our ESG rating to BBB to reflect our improved environmental performance.

Last modified on June 28, 2022, 11:39 am | 289384