PT Delta Dunia Makmur Tbk

Investor Presentation
November 2010
Delta Overview

Shareholding structure Share Data

Bloomberg Ticker
DOID.IJ
Northstar Public Shareholders Reuters Ticker
DOID.JK
Shares Outstanding
40% 60%
6,790,411,860
Free Float
Delta 60%
Current Share Price
100% (1)
(As of 19 Nov 2010)
Rp 1,200
Market Capitalization (2)
BUMA Rp 8.15 trillion
US$ 916 million

(1) Less one share as required by Indonesian regulations

(2) Using FX US$/Rp of 8,900
Source: BUMA Company Data

 Delta is the largest pure play mining contractor listed in Indonesia.

 Northstar Pacific, a leading Indonesian focused private equity fund, and its consortium own 40% of
Delta. The remaining shares are public float.

2
 Positive Coal Outlook
World Thermal Coal Exporters Indonesia Coal Production
mt mt 2010 - 2014 406
c.25%+ of international traded coal supply
CAGR 9.6% 391
177
168 365

152 316
140
132 134 1996 – 2009 281
CAGR 13.8% 252
2009
229
2010E 217
2011E 188
166
73
66 70
62 66 132
120
53
47 49 95 102
42 42 43
32 68 71
56
47 52

2010E
2011E
2012E
2013E
2014E
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Indonesia Australia Colombia South Russia China
Africa

 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

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

Indonesia Competitiveness
Global Cost Curve Shipping Costs for Key Coal Producer

80
Primarily
Indonesia
70 Illustrative Production Prices

60
Northern
China

50
$7/t
$18/t
SOUTHERN
40 INDIA
CHINA

$7/t

$14/t
30
$11/t

20 $16/t Indonesia

$19/t
10 South $19/t
Australia
Africa

0
100
150
200
250
300
350
400
450
500
550
600
0
50

Supply Transshipment Customer

Source: Wood Mackenzie. Excludes shipping costs. Source: AME

 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
Coal Mining Contracting

 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
of 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

Overburden Removal / Coal Mining Load & Haul

Favorable Industry Dynamics

High Barriers to Entry High Cost of Contractor Switching

 Proven track record and strong reputation  Long transition downtime
 Term contracts  High opportunity cost
 High capital investment  Loss of mine site knowledge
 Strong ties with local communities

Unique Positioning

Lack of Well Capitalized,

Strong Coal Demand Reputable and Technically
Proficient Contractors
has High Bargaining Power

New Contracts from Existing and New Customers

Increase in Coal Price
Rising  Mine owners may accelerate production to capitalize on high prices, subject to fleet constraints
Coal
 Marginal coal deposits become profitable
Prices
Indonesia as Lowest Marginal Cost Producer, Formula-Based Pricing and Term Contracts
Falling
Coal  Continued strong coal demand
Prices  Fixed coal volumes as specified in the long-term sales contracts
 Less impacted than other coal producing countries due to cost competitiveness
Source: BUMA Company Data
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Robust Contract Backlog
BUMA’s Exisiting Contracts
No Customers & Locations Contract Period
1 Berau Coal – Lati Coal mining 1998-2018
2 Berau Coal – Binungan Coal mining 2003-2018

3 Berau Coal – Suaran Port Coal hauling 2003-2018

4 Kideco Coal mining 2004-2019

5 Adaro Coal mining 2009-2013

6 Bayan – Gunung Bayan OB Removal 2007-2013

7 Bayan – Perkasa Inakakerta Coal mining 2007-2012

8 Marunda Graha Mineral Coal mining 2003-2012

9 Lanna Harita Indonesia Coal mining 2001-2013

DEWA

10 Arutmin Coal mining 2008-2014

11 Bukit Baiduri Energi – Merandai Coal mining 2001-2010

12 Darma Henwa Coal mining 2010-2013

Contract Underwriting Criteria
 Coal Marketability Total Backlog Contract Equivalent to (1)
Coal Mining (mm tonnes) 328 9.9 years
– Coal Quality must meet minimum requirements
Overburden Removal (mm bcm) 2,538 9.1 years
 Customer Requirements
– Shareholder reliability / sufficient risk mitigates
(1) Estimatedoutstanding contracted volume as of 31 Dec 2009, plus the new DH and
Arutmin contracts
– Significant reserves
New Contract Announcement
– Low operating costs
 Arutmin Contract Extension, signed Nov 2010
 Profitability of Contract
 Contract Term: three years until 2014
– Specified minimum return
 Overburden 80.9 mm bcm, Coal 6.7 mm tonnes
– Contract duration
Track Record of Growth
Overburden Removal Volume Coal Production Volume
mm bcm mm tons

262 278
33 36 33
191 207 207 211 32
24 24 25
140

2005 2006 2007 2008 2009 9M09 9M10 2005 2006 2007 2008 2009 9M09 9M10

Implied Stripping Ratio

8.5x 8.6x 8.3x
7.2x
6.3x
5.9x 5.9x

2005 2006 2007 2008 2009 9M09 9M10

Source: BUMA Company Data

Financial Performance
Sustainable Net Revenue Growth 1) EBITDA
US$ mm US$ mm

487 504 199 202

418 166
349 358 149 142

2007 2008 2009 9M 09 9M 10 2007 2008 2009 9M 09 9M 10

Healthy EBITDA margin Capital Expenditure

US$ mm

42.6% 40.9% 40.0% 39.6% 39.7% 153

83 95
75

2007 2008 2009 9M 09 9M 10 2007 2008 2009 9M 10

Notes: 1) Revenues net of fuel costs

Source: BUMA Company Data
 Key Developments
Organizational transformation in place from a family run business to become a
professional run company
 Established key function and responsibilities for Delta and BUMA management
 Successfully hired 4 professionals from prominent companies to expand the functions and roles within the Board of Directors

2009 Organizational Structure 2010 Organizational Structure

(*) denotes Delta appointees

President Director President Director

Budikwanto K. Budikwanto K.

Ops & Biz. Dev. Fin. & Acc. Biz. Dev. Plant (Maint.) Corp. Service Finance & Operations
Director Director Director Director Director Acc. Director Director
A. Kharis Wiliam S. A. Kharis J. Hurst(*) D. Lee(*) S. Martin(*) S. Josal(*)

Management Background
Name Short CV Description
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
Budikwanto Kuesar Tbk as Administration Department Head in 1974 and held several positions within United Tractors until becoming the Deputy General Manager for the Plant Hire
Mining Division in 1991

Has served as a Director of BUMA since 2009. Prior to joining BUMA in 1998, he worked at PT Pamapersada Nusantara (Pama), a subsidiary of PT United
Achmad Kharis
Tractors Tbk as an operational manager

Has 18+ years of experience in various companies, in which he has extensive experience in HR issues, Change Management, Material Management and
Darmadi Lee Logistics. Prior to joining BUMA in May 2010, he worked as Corporate HR Director and Head of Business Improvements in APRIL Group, Singapore. He is
currently focused on a number of continuous improvement programs to support BUMA’s growth

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
Joseph Hurst
Plant Manager at Leighton Contractor Indonesia. His primary responsibility at BUMA is to maintain and monitor the mining fleet to maximize equipment availability
at optimum cost

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
Sujoko Martin
Tbk, as a Finance and Accounting Director. He plans to join BUMA in October 2010 as Finance and Accounting Director

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
Sjamsi Josal
(KPC). He joined BUMA in November 2010
 Key Developments (2)
Successful execution of business plan through contract wins / renewals
 Successful renewal of Kideco contract for an additional 10 years signed in October 2009
 New contract with Darma Henwa (KPC) signed in June 2010
 Signed Arutmin extension contract early this month for an additional three years until 2014
 6 new contracts in the pipeline, with high probability of winning

Orders for larger equipment to meet expansion plans on track

 Firm orders totaling c. US$280MM for delivery up to 2012 with Caterpillar, Komatsu and Hitachi
 Big equipment to ensure that traffic congestion in the mines will be reduced and to lower some of the cost compared to
smaller size trucks (like fuel consumption and man power requirement)

Financing for growth

 Opportunity to reduce capital cost on existing indebtedness (loan + bond) with improved market sentiment which created
sufficient market liquidity and demand
 Successfully raised ~US$ 230 million of capex financing for equipment purchase, per YTD 2010 the available commitment is
~US$ 107 million

SAP implementation for operational excellence

 Phase 1: Finance, Accounting and Enterprise Resource Management (fleet management, spare parts procurement) to be
launched in 1Q 2011
 Phase 2: Human Resources Management to be launched in 2H11

Staffing growth to meet expansion

 2000+ employees have been hired in 9M 2010 to fuel growth in 2011.
 No major labor issues experienced to date
Appendix
Overview of BUMA

PT Bukit Makmur Mandiri Utama

 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

One of the Largest Mining Contractors in Indonesia (1) High Value-add to the Coal Mining Value Chain

Others 17.6%  Long Term Mine

Geology &Planning Planning
Darma Henwa
 Drilling and
3.1%
Overburden Removal Blasting
Leighton 3.1% PAMA 32.2%
Cipta  Stripping
Kridatama Excavation
Coal Mining
5.3%
 Haulage
SIS 8.8% Hauling  Road Building and
Maintenance
Processing  Reclamation
Thiess 13.2% BUMA 16.7%
Barging BUMA’s Scope of Work
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 13
BUMA: Dominant Market Position

Industry Competitive Landscape

Fleet Flexibility
Market Diversified
No. of Key Allocate Local
Low Cost Customer
Share Customers Suppliers Between Relationships
Base
Mines

Unique Positioning

17% 10     

Big Local
Company
32% 7 (1) ?    

Foreign
Company
16% 3  ? ? ? ?

Others
(15+ Companies)
35% ?  ? ? ? 
(1) Excludes mines owned by parent company
Source: 2008 BUMA Company Data

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BUMA: High Quality and Diversified Customers

Coal
BUMA Revenue by Customer 9M10 (9M08) (1) Production BUMA’s Relationship
in 2009 Share Since
(mm tonnes)
Lanna PIK Dewa & Others
BBE 8% (5%)
4% (3%) 4% (5%) (2)
4% (5%)
14.3 77% 1994
MGM
6% (5%)
Berau
30% (32%) 19.3 5.5% 2008
Arutmin
6% (5%)

Bayan 40.6 19.5% 2002

7% (9%)

24.7 26% 2004

Kideco
Adaro
15% (14%)
16% (17%)
12.0 16.5% 2007
Bayan Group

(1) Based on IDR

(2) Started as a subcontractor through PT Bukitmakmur Widya (BMW)
Source: BUMA Company Data

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Cost Structure

Formula-Based Pricing That Allow Fuel Cost Pass-Through

BUMA’s Cost Structure for 9M2010 (9M2009)

Others, 15%
Depreciation, Fuel Costs
(16%)
21% (17%)
 All contracts have a
Non-fuel Costs cost pass through
 Some contracts Fuel, 12% mechanism for fuel
contain pre- (24%)  As of 2010, 60% of
determined cost customers are now
escalation securing their own
payments Salary, 13% fuel. Positive for
(10%) working capital
 One off payments
under extraordinary
Spare parts,
circumstances
Other 27% (22%)
consumables,
12% (12%)

US$ Based Company

 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
Source: BUMA Company Data

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Mining Law
New Mining Law and Its Implications on Coal Mining
Key points of the new regulation
(PerMen 28/2009)
Local and national mining contractors are now given
preferential treatment in securing mining service contracts
vis-à-vis foreign-owned mining contractors
Mining companies have to undertake coal extraction and
loading activities
Possible Impacts on existing and future mining activities
of BUMA
Positive - In 2008, foreign-owned mining contractors
(Thiess and Leighton) account for ~15% market share
Slightly negative – coal extraction and loading activities
.
account for 3% of BUMA’s revenue. May be partially
mitigated by leasing the relevant equipment to mining
companies which will be used for coal extraction and
loading activities. Manpower is excluded.
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Contacts

PT Delta Dunia Makmur 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) rsofjan@deltadunia.com
Andre Soelistyo (Corporate Secretary) asoelistyo@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
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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.

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