CORPORATE PRESENTATION - timah.com TIMAH Presentation 9M 2017.pdf · Indonesia as Exploration Geologist, PT ANTAM Tbk with several positions such as VP Exploration, Head of Project

CORPORATE PRESENTATION

Non Deal Roadshow

February 2018

STRONGER FACING CHALLENGES

2

• The 2nd largest tin producer in the world

• Building on an impressive tin history ofalmost 200 years

• Listed at the Indonesia Stock Exchange(IDX) since 1995

• Registered in the London Metal Exchange(LME) for Banka Tin & Mentok Tin

• The only member company of ITRI withoffshore mining operation

COMPANYAT A GLANCE

PT TIMAH Tbk | www.timah.com 3

VISION AND MISSION

VISION

To be a leading enviromental friendly mining company in the world

Building strong, supreme and dignified humanresourcesImplementing the proper and right good governancefor miningOptimizing the value of the company and contributionto the shareholders as well as social responsibility

MISSION

PT TIMAH Tbk is one of the largest mining and tin mining companies in the world established since the 18th century which later in 1976 became a Limited Liability Company and subsequently registered as a Public Company in 1995


BOARD OF DIRECTORS

M. Riza Pahlevi TabraniPresident Director

Experienced in Corporate Finance sector over 20 years, before join in PT TIMAH Tbk he wasin PT Perusahaan Gas Negara Tbk as a Chief Financial Officer and also become a presidentcommissioner in subsidiaries of PT Perusahaan Gas Negara Tbk.

Emil ErmindraChief Financial Officer

Experienced in Banking sector over 23 years, before join in PT TIMAH Tbk he was in PT BankNegara Indonesia (Persero) Tbk as an EVP Strategic Planning Division Head, EVP ManagementOffice Head, and VP Regional Chief Executive Officer.

Trenggono SutiosoDirector of Business Development

Experienced in Mining over 17 years, before join in PT TIMAH Tbk he was in PT Rio TintoIndonesia as Exploration Geologist, PT ANTAM Tbk with several positions such as VPExploration, Head of Project Development, SVP Corporate Strategic Development, CorporateSecretary.

Muhammad RizkiDirector of Human Resources

Experienced in PT TIMAH Tbk over 20 years with several positions such as Head of OffshoreOperation, Head of Logistic, Head of Metallurgy.

Alwin AlbarDirector of Operation

Experienced in PT TIMAH Tbk over 17 years with several positions such as Head of BusinessDevelopment, Head of Regional Engineering and Production


CORPORATE STRUCTURE

99,99%

100%

99,99%

99,80%50%50%

99,99%

99,99%

99,99%

99,99%

99,99%

99,99%

99,99%

2 3 4

1

Pilar 1 : Tin mining1

Pilar 2 : Downstream2

Pilar 3 : Non tin mining3

Pilar 4 : Based on competency 4

65% 35%


TIN INDUSTRIES OVERVIEW

Net IncomeXXXX


FINANCIAL DEVELOPMENT INDICATOR

Net IncomeXXXX

1,393 1,528

1,077 1,1911,524

7481,046

1,300

2010 2011 2012 2013 2014 2015 2016 2017

*)

EBITDA In IDR billion

947 896

431581

673

102252

500

2010 2011 2012 2013 2014 2015 2016 2017

NET INCOME In IDR billion

+ 74 %

+ 390 %

*)400-

*) Unaudited/estimated numbers

9M 2017 FINANCIAL PERFORMANCE


As of 9M 2017 PT TIMAH recorded net profit for the year Rp.300 billion driven by improved

operational performance and continue in efficiency. Net profit for the year is increased 5

times compared to last period in 2016


RevenueRp6,621 billion

Gross margin17%

Net IncomeRp300 billion

EBITDA Rp969 billion

PT.TIMAH Tbk | www.timah.com 9

Net IncomeXXXX

Net IncomeXXXX

9M 2017 NET PROFIT ANALYSIS

The increase of TINS revenue in the previous year was driven by the increase in sales volume by 16% supported by the increaseof average refined tin price 19%. On the other hand, the increase of production cost was in line with the increase of refined tin

production and royalty payments along with the increase of our sales revenue

0

500

1000

1500

2000

Net income 9M2016

Revenue Production cost Opex Depre. & Amort. Others Tax Net income 9M2017

51

+2,029 +1,483

+139+4 +66

+86301

In billion IDR

Variance YoY


Net IncomeXXXX

Net IncomeXXXX

Net IncomeXXXX

9M 2017 FINANCIAL SUMMARY

7,822

6,239

7,518 6,874 6,968

4,592

6,621

-

2,000

4,000

6,000

8,000

10,000

FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017

RevenueIn IDR billion

1,077 1,191

1,524

784

1,047

638

969

-

500

1,000

1,500

2,000

FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017

EBITDA In IDR billion

432

581673

102

252

51

301

0

200

400

600

800

FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017

Net incomeIn IDR billion

86

10290

14

34

7

40

0

20

40

60

80

100

120

FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017

EPSRupiah/shares

44% 490%

52% 471%

PT. TIMAH Tbk | www.timah.com 11

Net IncomeXXXX

Net IncomeXXXX

QUARTERLY FINANCIAL SUMMARY

2,047 2,253

1,796

2,319

-

500

1,000

1,500

2,000

2,500

Q1 2017 Q2 2017 Q3 2016 Q3 2017

RevenueIn IDR billion

255 332297 381

12%

15% 17%16%

0%

5%

10%

15%

20%

0

100

200

300

400

500

Q1 2017 Q2 2017 Q3 2016 Q3 2017

EBITDA (in IDR billion)& margin (%)

298 333 318

52215% 15%

18%

22%

0%

5%

10%

15%

20%

25%

0

100

200

300

400

500

600

Q1 2017 Q2 2017 Q3 2016 Q3 2017

Gross profit (in IDR billion)& margin (%)

6685

84

1503.20%3.80%

4.70%

6.50%

0.00%

2.00%

4.00%

6.00%

8.00%

0

50

100

150

200

Q1 2017 Q2 2017 Q3 2016 Q3 2017

Net incomeIn IDR billion

29%

64%

28%38%


Net IncomeXXXX

Net IncomeXXXX

CASH MARGIN PER TONNES

1.83.1 2.8

0.61.6 0.7

1.7

19.6 19.5 18.8

15.516.7 16.5

18.8

0

5

10

15

20

25

FY2012 FY2013 FY2014 FY2015 FY2016 9M 2016 9M 2017

Cash margin Delivered cost*

Stable production cost and as of 9M2017 the increase of production cost was in line with the increase of refined tin production and royalty payments along with the increase of our sales revenue.

In thousand USD/tonnes

*) Delivered cost: production cost + marketing cost + administrative cost

The highest

average tin price The lower

average tin price


Net IncomeXXXX

Net IncomeXXXX

CAPITAL EXPENDITURE

9M 2017

MAJOR EXPANSION PROJECTS

Exploration & Production: Major expansion for open the new area onshore mining in Bangka and Belitung, and regular exploration activities

38 16 23

185

102

174

46

37

108

137

82

91

129

252

143

-

100

200

300

400

500

600

FY 2016 9M 2016 9M 2017

Building & office Machinery Exploration & production Equipment CIP

539

489

535

Construction in progress: Construction in progress related to development of production capacity, recondition and replacement machinery including in fuming development

Refined tin

production

increased 43%

Capex In billion IDR


Net IncomeXXXX

Net IncomeXXXX

DEBT PROFILE AND COST OF FUND

Issued Obligation

and Sukuk with

lower interest rate

264

1355

2334 21151733

2156

1500

FY2012 FY2013 FY2014 FY2015 FY2016 9M2017

Short term loan Long term loan

Debt Profile (In billion IDR) Cost of fund analysis

Improving in cash for debt service and lower cost of debt with issued IDR bonds and sukuk ijarah which is long term period with maturity payment on September 2020 and 2022.

These bonds and sukuk ijarah were rated A+ by Pefindo

6.60%

8.18%

9.49%9.79%

9.41%

8.47%

2.38%2.70%

2.35% 2.20% 2.00%2.34%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2012 2013 2014 2015 2016 2017

Average IDR Rate Average USD Rate



Striving to become a more effective company, TINS has taken advantage from the tin commodity price hike by

effectively increasing volume of tin ore production

9M 2017 OPERATION PERFORMANCE

Tin ore production23,854mt

Refined tin production22,837mt

Refined tin sales21,588mt

Average selling price$20,557/t


Net IncomeXXXX

OPERATION OVERVIEW

246,886 275,255

490,660 472,224

FY2016 9M2017

Onshore Offshore

71,103 67,415

264,806 251,705

FY2016 9M2017

Onshore Offshore

319,120

737,546 747,479

335,909

Province Total IUP Total area (Ha) Note

Bangka, Babel 20 81.824 Tin ingot

Bangka Barat, Babel 45 93.954 Tin ingot

Bangka Selatan, Babel 18 38.265 Tin ingot

Bangka Tengah, Babel 8 26.884 Tin ingot

Belitung, Babel 9 13.262 Tin ingot

Belitung Timur, Babel 11 61.278 Tin ingot

Bangka Belitung, LintasKabupaten

10 112.827 Tin ingot & iron ore

Karimun, Kepri 4 18.875 Tin ingot

Riau 2 6.540 Tin ingot

Riau dan Kepri, LintasKabupaten

1 19.594 Tin ingot

TOTAL 128 473.303

Reserves

Resources


Net IncomeXXXX

Net IncomeXXXX

Net IncomeXXXX

9M 2017 OPERATION SUMMARY

29,776 26,204

32,319

26,361 24,121

15,973

23,854

-

10,000

20,000

30,000

40,000

FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017

Tin ore productionIn metric tonnes

34,934

23,237 26,907

30,087 26,677

18,600 21,588

-

10,000

20,000

30,000

40,000

FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017

Refined tin salesIn metric tonnes

29,512

23,718 27,550 27,431

23,756

15,995

22,837

-

10,000

20,000

30,000

40,000

FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017

Refined tin productionIn metric tonnes

26,714

21,505 21,686

16,186 18,408 17,296

20,557

-

5,000

10,000

15,000

20,000

25,000

30,000

FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017

Average selling priceIn USD

49% 43%

16% 19%


Net IncomeXXXX

Net IncomeXXXX

QUARTERLY OPERATION SUMMARY

7,675 8,403

6,865 7,776

-

2,000

4,000

6,000

8,000

10,000

Q1 2017 Q2 2017 Q3 2016 Q3 2017

Tin ore productionIn metric tonnes

6,963 7,942

6,475

7,932

-

2,000

4,000

6,000

8,000

10,000

Q1 2017 Q2 2017 Q3 2016 Q4 2017

Refined tin productionIn metric tonnes

6,963

7,441

6,918

7,184

6,600

6,800

7,000

7,200

7,400

7,600

Q1 2017 Q2 2017 Q3 2016 Q3 2017

Refined tin salesIn metric tonnes

20,428 20,432

17,296

20,557

15,000

16,000

17,000

18,000

19,000

20,000

21,000

Q1 2017 Q2 2017 Q3 2016 Q4 2017

Average selling price$/tonnes

13% 4%

23%19%

19

REFINED TIN PRODUCTION

30,277 MT

REFINED TIN SALES

29,000 MT

REVENUERp.9,000 billion

NET INCOME

Rp.400 – Rp.500 billion

2017 ESTIMATED

PT.TIMAH Tbk | www.timah.com

STRATEGY EXECUTION IN 2017


TIN RESERVES OPERATIONAL FINANCEHUMAN

RESOURCES BUSINESS

DEVELOPMENT

• Signing of joint

venture agreement

with Topwide

Ventures in Nigeria

• Re-evaluted of tin

resources and

reserves in onshore

and offshore

• Development of

production capacity

• Established 2 more

units of inland

mining

• Exploitation of

primary reserves in

Bangka Belitung

• Issued Bonds and

Sukuk amounting to

Rp.1.5 billion

• Training,

certification,

managerial and

leadership reached

93% of the target as

of October 2017

• Fuming and Ausmelt

development

• Bore Hole Mining

• Signed a strategic

partnership with

Yunan Tin Group

21

1 Increasing tin ore recovery

2 Re-engineering technology and enlargement productivity

3 Established of new mining area

4 Cost efficiency

6Maintaining good relationship between stakeholders and

customers

STRATEGY IN 2018

PT.TIMAH Tbk | www.timah.com


Contact and Further Information

Amin Haris Sugiarto – Corporate [email protected]


Net IncomeXXXX

APPENDIX 1 - REFINED TIN APPLICATION


APPENDIX 2 - FUMING PLANT & AUSMELT

KundurCapacity

12,000mt/years

MentokCapacity

42,000mt/years

Fuming plant:• Capacity: 85 tin ore slag per day/around 31,000mt

per years to produce refined tin.• Estimated finish this years

Ausmelt:• Capacity: 45,000mt per years.• Estimated 2020

CurrentOur present capacity is approximately 54,000 ton per annum, of which 12,000 ton located in Kundur and 42,000 ton located in Muntok

New technologyWith the newly adopted technology, our capacityshall be significantly increased with total number of76,000 per annum and the technology's areconverted our tin ore low grade to high grade as arequirements minimum.


APPENDIX 3 – COST AND REVENUE PERCENTAGE9M2017 %

Revenue

Tin metal and tin solder 5,915,532 89%

Tin chemical 529,827 8%

Hospital services 167,251 3%

Shipping dockyard services 6,480 0%

Others services 2,025 0%

Total revenue 6,621,115 100%

Cost of revenue

Raw material of tin ore 3,515,570 64%

Salaries and allowance 479,573 9%

Depreciation and amortization 360,338 7%

Fuel 356,067 7%

Roylaty 183,621 3%

Sparepart used 147,735 3%

Third parties services 131,075 2%

Raw material of tin chemical 72,396 1%

Transportation 20,124 0%

Taxes 57,399 1%

Direct materials used 12,499 0%

Others 195,390 4%

Tota cost of production 5,531,787 101%

Inventory 62,487- -1%

Total cost of revenue 5,469,300 100%

Source: audited financial statements Sept 2017


APPENDIX 4 – SALES DESTINATION

Asia60%

Eropa22%

America7%

Domestic11%

Asia Eropa America Domestic

Sales destination as of September 2017

Sales percentage as of 2017• Long term contract 80%• SPOT 20%

Documents

CORPORATE PRESENTATION - timah.com TIMAH Presentation 9M 2017.pdf · Indonesia as Exploration Geologist, PT ANTAM Tbk with several positions such as VP Exploration, Head of Project