Management of Darma Henwa Present Performance Achievements

Jakarta, December 3, 2019 - PT Darma Henwa Tbk (DEWA) announced the company's 9 (nine) months' performance achievements in 2019 in the Company's Public Expose, Tuesday (3/12).

Amidst the unrecovered demand for coal, the Company was able to improve its performance. From a number of mining projects, up to September 30, 2019, the Company succeeded in increasing the volume of overburden to 82.70 million Bcm, or an increase of 9.1% over the same period the previous year of 75.78 million Bcm. Until the third quarter of 2019, the Company's coal delivery or coal production reached 11.44 million tons, an increase of 22.1% compared to the same period the previous year of 9.37 million tons.

The Company currently manages four projects, namely the Bengalon Coal Project owned by PT Kaltim Prima Coal, the Acid and Acid Coal Project owned by PT Arutmin Indonesia, the Satui Coal Project owned by PT Cakrawala Langit Sejahtera. Then, there is also the Port Service Project which is being carried out by the company's subsidiary, PT Dire Pratama.

Until the end of September 2019, the Bengalon Coal Project produced overburden of 54.28 million Bcm, or an increase of 37.5% over the same period the previous year of 39.52 million Bcm. Coal production of the Bengalon Coal Project reached 6.49 million tons, an increase of 39.9% over the same period last year of 4.64 million tons.

In the Asam Asam Coal Project, overburden production until the end of September 2019 reached 23.15 million Bcm, or an increase of 3.4% over the same period the previous year of 22.40 million Bcm. The coal production of the Asam Asam Coal Project until the end of September 2019 reached 4.28 million tons, or an increase of 15.7% compared to the same period the previous year of 3.70 million tons.

For the Satui Coal Project, overburden production until the third quarter of 2019 reached 5.26 million Bcm, or decreased 62.0% compared to the same period the previous year of 13.84 million Bcm. Meanwhile, coal production of the Satui Coal Project until the end of September 2019 reached 661 thousand tons, or a decrease of 35.83% compared to the same period the previous year of 1.03 million tons.

"The increase occurred because the Company made many improvements to its operational fundamentals. With performance that continues to improve until the third quarter, we are optimistic that this year's performance will be better than the previous year, ”said Saptari Hoedaja, President Director of PT Darma Henwa Tbk.

Seeing the performance of the three projects, by the end of 2019 the Company is expected to be able to produce overburden of 125.7 million Bcm, or an increase of 20.85% compared to 2018 of 104 million Bcm. Meanwhile, coal production is estimated to reach 17 million tonnes, up 33.47% over the same period the previous year amounting to 12.73 million tonnes.

Financial Performance

From the financial side, the Company's total assets as of September 30, 2019 amounted to USD 517.41 million, or an increase of 24.64% from the position on December 31, 2018 of USD 415.09 million. The increase in total assets was due to an increase in Current Assets, namely Cash and Cash Equivalents and Other Current Assets from bank loans.

Total Liabilities of the Company as of September 30, 2019 amounted to USD 285.40 million or an increase of 54.86% compared to Total Liabilities as of December 31, 2018 of USD 184.29 million. The increase in Total Liabilities was due to an increase in Bank Debt which was used to improve the Company's operational performance.

The Company's equity as of September 30, 2019 was USD 232.00 or an increase of 0.5% from the position on December 31, 2018 of USD 230.80 million because the Company was able to record Comprehensive Profit for the 9 (nine) months ending on September 30, 2019.

In line with the increase in production, the Company managed to record an increase in revenue of USD 237.92 million or an increase of 25.97% compared to the same period in the previous year of USD 188.86 million. The majority of revenue still comes from coal contractor services. The Bengalon coal project provided revenue of USD 165.09 million. Then the revenue from the Asam Asam Coal Project was recorded at USD 60.84 million. And the Satui Coal Project contributed USD 10.22 million in revenue.

The Company's Gross Profit as of September 30, 2019 was USD 17.31 million, or an increase of 162.2% compared to the same period the previous year of USD 6.60 million. The increase occurred because the percentage of increase in income was higher than the percentage increase in Cost of Income.

The Company's operating profit as of September 30, 2019 was USD 7.16 million, or an increase of 47.9% compared to the same period the previous year of USD 4.84 million.

The Company's EBITDA until the end of September 2019 was recorded at USD 28.74 million, or an increase of 22.3% compared to the same period the previous year of USD 23.49 million.

As of the end of September 2019, the Company managed to book Comprehensive Profit of USD 1.19 million, an increase of 44.3% compared to the same period the previous year of USD 0.82 million.

Potential Projects

For business development, the Company's strategy to increase its project portfolio is to strengthen the structure of integrated mining services, especially for mineral mining contractor services.

One of the projects that the Company hopes to acquire is the earthworks project in a zinc and tin mine in Dairi, North Sumatra. In this project, the Company is expected to do pre-mining and earthworks.

Next is the Copper and Gold Mining Project in Tombulilato, Mek River Block, Gorontalo Province. In this project, the Company is expected to undertake road construction, mining activities and reclamation.

The next potential project is the Copper and Gold Mining Project in Palu, Central Sulawesi. In this project, the Company is expected to work on infrastructure, exploration drilling and mining activities.

The next potential project is a gold mining project in Garut, West Java. In this project, the Company is expected to work on ore mining and waste handling.