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
PT TIMAH Tbk | www.timah.com 4
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
PT TIMAH Tbk | www.timah.com 5
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%
PT TIMAH Tbk | www.timah.com 6
TIN INDUSTRIES OVERVIEW
Net IncomeXXXX
PT TIMAH Tbk | www.timah.com 7
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
PT TIMAH Tbk | www.timah.com 8
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
STRONGER FACING CHALLENGES
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
PT TIMAH Tbk | www.timah.com 10
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%
PT.TIMAH Tbk | www.timah.com 12
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
PT.TIMAH Tbk | www.timah.com 13
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
PT.TIMAH Tbk | www.timah.com 14
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
PT.TIMAH Tbk | www.timah.com 15
STRONGER FACING CHALLENGES
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
PT.TIMAH Tbk | www.timah.com 16
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
PT.TIMAH Tbk | www.timah.com 17
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%
PT.TIMAH Tbk | www.timah.com 18
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
PT.TIMAH Tbk | www.timah.com 20
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
PT.TIMAH Tbk | www.timah.com 22
Contact and Further Information
Amin Haris Sugiarto – Corporate [email protected]
PT.TIMAH Tbk | www.timah.com 23
Net IncomeXXXX
APPENDIX 1 - REFINED TIN APPLICATION
PT.TIMAH Tbk | www.timah.com 24
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.
PT.TIMAH Tbk | www.timah.com 25
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
PT.TIMAH Tbk | www.timah.com 26
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%