BUMA Completes Australian Asset Acquisition

PT Delta Dunia Makmur Tbk. (the "Company") on 17th December 2021 is pleased to announce that its subsidiary, PT Bukit Makmur Mandiri Utama ("BUMA"), through its Australian subsidiary, BUMA Australia Pty. Ltd. (BUMA Australia), 100% owned by BUMA, has completed the acquisition of Downer EDI Limited (Downer) coal mining contractor business currently referred to as Open Cut Mining East business (Mining East) in Australia. All requirements under conditional agreement signed on 11th October 2021 have now been fulfilled. The Transaction, which entails the transfer of Mining East's assets, employees, employee entitlements, and contracts from Downer to BUMA Australia, was completed at an acquisition cost of A$139 million (equivalent to c.US$99 million). The transaction represents a material discount to a book value of >A$200 million. The Transaction was fully funded by a Mandiri loan facility drawn in July 2021.

The Mining East business comes with an experienced and highly successful management team in Australia that will supplement capabilities of BUMA and the Company. This will also further strengthen the Company's contract book, with the addition of Tier 1 clients. The Mining East business has an aggregated production capacity of c.160 million bcm p.a. of overburden removal, of which ~130 million bcm p.a. is contracted, and c.10.5 million tonnes of coal, providing services for both thermal and metallurgical coal concessions. The existing portfolio includes 4 (four) Queensland-based sites mining services contracts owned by world-class customers. In recent years, Mining East recorded an annual average revenue of approximately A$510 million.

Mining East is also pursuing a number of new projects that would facilitate its future growth. The completion of the Transaction marks BUMA's entry into coking coal that serves as the first step towards diversification, and expansion beyond Indonesia. It will provide BUMA and the Company with the ability to tap into future mining opportunities in Indonesia as well as Australia.

Beneficial synergies are expected as both businesses bring their respective strengths to the table. The Transaction shall be value-accretive and will enhance our access to future growth opportunities.