Release

The Synergy
to Move Forward
Release
May 11, 2018

ABM Investama Set Focus on Coal Business

Click to Enlarge

In 2017 ABM's gross profits grew by 18.36 percent to US $ 151.4 million, supported by increase in coal sales volume of 25 percent to 7.9 million metric tons.

JAKARTA, May 8, 2018 - PT ABM Investama Tbk (IDX: ABMM) is set to focus on strengthening its coal mining business and sales in 2018. This strategy is in line with the company’s strategy to perform continuous consolidation as Indonesia's leading coal business supply chain. Furthermore, the rising coal price index will be further optimized to strengthen the company's financial performance.

ABM President Director Andi Djajanegara said, since the second quarter of 2016, coal prices have consistently strengthen in the global market. This is supported by various aspects, including, among others, the policy of China as the world's largest coal producer and consumer during the fiscal year 2017 to reduce domestic coal production.

While at the domestic level, coal consumption continues to increase in line with the operation of new coal-based power plants. Coal Reference Price (HBA) in 2017 amounted to US $ 85.9 per metric ton, up 39% compared to HBA 2016 of US $ 61.8 per metric ton. While referring to the Newcastle index, global coal prices at the end of April 2018 have penetrated the level of US $100.10 per metric ton.

"ABM will seize the momentum of the current coal price reinforcement. Last year, the company's performance showed positive growth and this year we are optimistic that the results will be even better,” said Andi following the 2018 Annual General Meeting of Shareholders in Jakarta, Tuesday (8/5).

In an effort to strengthen the coal business, ABM had tapped US $350 million Global Bonds issuance in 2017. The successful issuance of the first global debt securities has provided a substantial funding for the company to grow. "Global Bond issuance continues to strengthen ABM's expansion in the coal industry. We are in the process of acquiring new mines to strengthen this business over the long term, " he explained.

ABM's Finance Director Adrian Erlangga explained that in 2017 ABM successfully booked a net income of US $ 690.73 million, an increase of 16.94 percent compared to 2016 of US $ 590.70 million. The company also managed to increase its gross profit to 18.36 percent from US $ 127.91 million in 2016 to US $ 151.39 million. The increasing demand for coal globally also boosted coal sales volume in 2017 to 7.9 million tons, up 25 percent from 6.6 million tons in 2016.

"This positive financial performance shows that the company managed to optimize the rising coal price momentum. We will continue to control standard operating cost to further enhance the impact of increase in coal prices to generate higher gains in the long run, "said Adrian

ABM as End-to-End Coal Supply Chain

Adrian added that this year ABM Investama will strengthen its position as a coal supply chain through end-to-end integration and synergy of its subsidiaries. This synergy involves subsidiaries in mining contracting, logistics, maintenance services, to coal trading.

With its current business model, ABM has proved to be successful in developing and managing its operations. One of the examples is the management of a coal mine in Kalimantan with a production capacity of approximately 5 million tons per year resulting in EBITDA of US $ 108 million.

"ABM’s has proven its competency for many years in the mining sector especially coal. Therefore, with the support of realiable human resources and operating system, ABM will continue to expand and strengthen the coal business, " Adrian concluded.

***

About PTABMInvestama Tbk

PT ABM Investama Tbk (IDX: ABMM) is an integrated energy company for strategic investment focusing on resources, services, and logistics.

ABM provides solutions that focus on three main business units, namely coal mining, mining contracting services, and electric power with integrated engineering services and logistics support.

PT ABM Investama Tbk is part of Tiara Marga Trakindo Group (TMT), one of the largest national business groups in Indonesia that has been in the heavy equipment industry for 40 years. Presently, TMT is a leading provider of services for the energy sector.

For further information, please contact:

Rindra Donovan

Corporate Secretatry

PT ABM Investama Tbk.

TMT1 Building 18th Floor Jl. Cilandak Jakarta 12560

Email : rindra.donovan@abm-investama.co.id

Website : www.abm-investama.com