Q Analyst Meeting. Jakarta - May 23, PT TIMAH Tbk

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1 Q Analyst Meeting Jakarta - May 23, 2018 PT TIMAH Tbk

2 Vision & Mission PT TIMAH Tbk is the second largest tin mining company in the world and is a member of Holding State-Owned Mining Company VISION MISSION To be a leading environmental friendly mining company in the world Building strong, supreme and dignified human resources Implementing the proper & right good governance for mining Optimizing the value of the Company and contribution to the shareholders as well as social responsibility 2

3 Ownership Structure and Business Development Republic of Indonesia owns 1 share of Series A (Dwiwarna) 1 65% 35% ,99% 99,99% 100% 99,99% 100% 50% 50% 99,90% 100% 99,99% 100% 1 Pilar 1 : Tin Mining 100% 2 3 Pilar 2 : Downstream Products Pilar 3 : Non-Tin Mining 100% 4 Pilar 4 : Competency Based Business 3

4 Area of Mining License (IUP) Province of Riau Islands & Riau Number of IUP 7 Offshore area of ha Province of Bangka Belitung Islands Number of IUP 122 Onshore area of ha Offshore area of ha Number of resources and reserves Resources ton Reserves ton 4

5 Industries Overview (1/2) Industri overview 1. Termination of Export Approval license (PE) has boosted the price of refiened tin. Release from the Ministry of Trade that in March 2018 the total export was only 5,469 tons or down 24% from the previous month, because there was a delay in export delivery of tin. Total export of tin in the first quarter of 2018 was 17,184 tons or decreased 4.6% (year-onyear) and decreased 24% compared to the previous quarter 2. US trade policy can weaken demand. Since February 2018 there has been an escalation of Trump's protectionism agenda in the form of US trade tariffs on steel imports, including tinplate, followed by an import tariff proposal for 1,300 Chinese goods. List of Chinese goods that can be charged 25% when exported to China include solder-intensive consumer products such as air conditioners, refrigerators and washing machines, and other electronic products 3. Myanmar's tin ore exports to China are predicted to decline in 2018 due to depletion of tin reserves and rising production costs 4. Government policy in Africa could put pressure on tin exports by Tin producing countries in Africa seek to curb illegal miining through closer scrutiny of mining activities, including Democratic Republic of Congo (DRC) as Africa's largest tin producer, and Nigeria as Africa's second largest tin producer shifting Rwanda's position Source: CRU Tin April

6 Industries Overview (2/2) Refined tin use by application 6

7 Financial Performance Quarterly (Yearly Basis) Revenue in billion Rp 2,048 Gross profit in billion Rp 0.6% 4.6% 298 2, Operating income in billion Rp Profit for the year in billion Rp % %

8 Financial Performance Quarterly Revenue in billion Rp Gross profit in billion Rp 2,047 2,253 2,319 2,598 2, Operating income in billion Rp Profit for the year in billion Rp

9 Profit for The Year Analysis Profit for the year analysis in billion Rp Legend: 65.9 Profit for the year Q a Decreased (-) Increased (+) `Variance QoQ Revenue COGS Operating expenses 17.6 b c d Others - net 28.8 e Tax 54.6 Profit for the year Q Remarks a. Mainly due to decreased in refined tin sales volume in relation to adapt the changes to the new regulation.. b. COGS is relatively stable due to decreased tin ore production. c. Operating expenses had increased, especially in General & Administration Expense for employee development. d. Other expenses has also increased, particularly financial costs. e. Tax is approximately Rp28.8 billion, decreased due to lower profit before tax in Q

10 Revenue Analysis Revenue contribution 0.8% 0.1% 3.0% 1.1% 7.2% Q Revenue details Variance +/- % Refined tin and tin solder 1, , % Tin chemical % Hospital % Real estate % Shipping dockyard % Nikel % Total 2, , % 87.7% Refined tin & tin chemical Tin chemical Hospital Real estate Dockyard Nikel Mainly due to decreased in refined tin sales volume in relation to adapt the new regulation Sales and average selling price tin chemical are increased by 64% and 19%. Real estate revenue Rp16.8 billion, meanwhile in Q realestate is still progress development 10

11 Refined Tin Distribution Sales Destination 33% 29% Q % 14% 96% As of March 2018 total sales of PT TIMAH amounted to 5,801 ton of which is refined tin sales of PT TIMAH (Persero) Tbk almost to meet the overseas market (export) and about 4% to meet the domestic market. 10% Jepang Korea selatan Amerika serikat Perancis Others 11

12 Cost Analysis COGS contribution COGS details 9.5% 8.8% 12.5% 2.7% 3.3% 4.9% Q % 0.3% 0.4% 6.1% 48.7% Raw materials of tin ore Salaries and allowances Fuel Depreciation and amortization Royalty Spareparts used Third party services Raw materials of tin chemical Transportation Direct materials used Others 12

13 Operational Performance Quarterly (Yearly Basis) Tin ore production (ton) Refined tin production (Mton) 7, % 6, % 5,550 5,361 Sales (Mton) Average Selling Price ($/t) 21,470 6, % 5.1% 5,801 20,428 13

14 Operational Performance Quarterly Tin ore production (ton) Refined tin production (Mton) 7,675 8,403 7,776 7,324 5,550 6,963 7,942 7,932 7,412 5,361 Sales (Mton) Average Selling Price ($/t) 6,963 7,441 7,184 8,326 5,801 21,470 20,428 20,432 20,557 20,429 14

15 Downstream - Operational Performance Quarterly (Yearly Basis) Tin solder production (Ton) Tin solder sales (Ton) 382.4% % 292 Average Selling Price Tin solder ($/Ton) 21, % , Tin chemical (Ton) 42.6% 1,691 Tin chemical sales (Ton) 1, % Average Selling Price Tin chemical sales (Ton) 19.4% 7,253 1, ,077 15

16 Tin Solder - Operational Performance Quarterly Tin solder production (ton) Tin solder sales (ton) Average Selling Price ($/t) , ,646 20,421 20, ,983 16

17 Tin Solder - Operational Performance Quarterly Tin solder production (ton) Tin solder sales (ton) Average Selling Price ($/t) , ,646 20,421 20, ,983 17

18 Innovation Technology (1/2) 18

19 Innovation Technology (2/2) Technology Fuming Tin ore will be re-melted in a furnace to obtain metal with recovery 95% 30% progress Estimated Q commissioning & commercial Scrubber pool & water circulating pool Scrubber pool 19

20 End of Report