ANALYST BRIEFING 1Q20 PERFORMANCE RESULTS Jakarta, 13 th May 2020 - PowerPoint PPT Presentation

ANALYST BRIEFING 1Q20 PERFORMANCE RESULTS Jakarta, 13 th May 2020

Agenda 1 INTRODUCTION 2 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 3 4 2 FINANCIAL REVIEW 4 4 2 5 5 QUESTION & ANSWERS 2

Covid-19 impact, but early signs of recovery EUROPE – RESTRICTION PARTIALLY EASED CHINA – SIGNS OF RECOVERY ▪ EU Q1 GDP down by 3% YoY CHINA PMI INDEX ▪ Germany: re-opened of some non-essential shops ▪ Italy: resumed factories, construction sites, wholesale supply businesses 52 51 50 49 50 50 50 36 ▪ France: prepare to ease restriction on May 11 ▪ UK: restriction easing plan is being prepared Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 ▪ PMI index started to rebound from record-low in Feb following successful outbreak prevention and control ▪ Further increase in economic activities is reliant on the recovery of service sector and domestic consumption as USA – RESTRICTION STILL IN well as a rebound of overseas demand PLACE ▪ Q1 GDP -5% YoY. Industrial production - 5% MoM, worst drop NORTH ASIA – RESTRICTION EASED since 2009 OTHER ASIA PACIFIC – PHYSICAL ▪ Japan: trade starting to improve with ▪ Unveiled guidelines but timeline is DISTANCING PUT INTO EFFECT slower deterioration in imports still unclear ▪ Thailand: further easing on physical ▪ South Korea: businesses reopen ▪ FED rate unchanged distancing is set in mid-May if no surge in including malls and restaurants infections ▪ Hong Kong: businesses reopen with ▪ Australia: three-stage plan to ease social distancing rules restrictions is in place Show sign of recovery Muted recovery 3

COVID-19: ITMG Three Focus Areas During Pandemic Taking Care of Securing Our Support Our Our Employees Business Community From vectorified.com From flaticon.com From pngtree.com ITM committed to protect ITM is here to stay and ITM maintain uninterrupted its employees both continues its support to the business operation through community with sustainable physically and mentally careful planning and approach from COVID-19 threat decisive implementation • ITM closely monitor • Mining activity remain at • Critical medical equipment employees health condition normal level despite isolation and basic food donation has with daily reporting and restriction policy for worker been distributed to adjacent Measures & Activities providing PPE at all site and employee at mine site communities where we operate • ITM is early in establishing • Completed business partner necessary health protocol • Public education on basic assessment along with such as Work From Home alternative supply chain hygiene and COVID-19 (WFH), mobility restriction, option arrangement danger has been provided and COVID-19 infection together with material • All mine site had prepared protocol donation reviews and evaluation for • ITM started employee morale • Long tern engagement will be each mine plan and start program to keep close cost reduction initiatives maintained with community connection among employee development as final goal 4

COVID-19: ITMG Business Continuity Plan POTENTIAL KEY ISSUE RESPONSE PLAN • Lower commodity price outlook due to global uncertainty and • Closely monitor coal demand and country specific condition while pandemic in which several countries have put in place large consider alternate revenue stream. • Manage sales administration process with flexible work arrangements gathering restriction. • Delay in sales administration and shipment process. while maintain close contact with customers. • Unreliable 3 rd party coal supply • Secure cargo from performing suppliers and speed up blending permit • Delay in fleet movement at port and anchorage area. process. • Alternative supply chain & monitor logistic crew health • • Monitor local gov’t policy & activate Emergency Response Team to Large-scale social restriction policy limiting mobility. • Potential productivity reduction from mining contractor. manage restriction enforcement. • • Review contractor condition & provide financial support. Spare parts supply potential delay and disruption. • • Manage critical inventory and find alternative vendor. Limited access from outside to enter mine area • • Optimize manpower & contractor within mine area. Delay in key permit process. • Seek relaxation of obligation from gov’t & evaluate potential liabilities. • Lower cash inflows due to lower global coal price & deteriorating • Monitor revenue inflows and maintain available bank facilities to counterpart financial strength and credit risk. manage short-term liquidity. • Limited operation time of banks, financial institution, & gov’t • Ensure payment can be made digitally & remotely. • Closely work with vendor while preparing temporary substitute bodies. • Delay in material supply and shortages material. • Inadequate IT system & infrastructure during “Work From Home” • Ensure all IT system & infrastructure work at optimum level, maintain protocol for employee . backup capacity, & enable remote assistance through digital channels. • Implement isolation policy for worker at site HSE • Preventive measure board notice and daily health monitoring (DHM) protocol 5 • Continue CSR activities to community impacted by COVID-19

COVID-19: ITMG Support The Communities ITM continues to support the communities in fighting COVID-19: • Medical equipment, Personal Protective Equipment (PPE) and sanitary-ware distribution to health facilities such as regional hospital, public health center (Puskesmas) and local government health authority. • Basic foodstuff and food package distribution to communities within mining operation vicinity that were impacted by COVID-19 condition. • The situation may prolong in the site areas. Thus, ITM contribution will not only for short period of time but ITM will continuously support the communities directly or indirectly through the Association and Government channel. 6

Highlights of 1Q20 results Coal Sales: 5.8 Mt Down 0.7 Mt Down 0.2 Mt -11% Q-Q -3% y-y Unit: US$ million Q-Q 1Q20 4Q19 1Q19 y-y -11% 366 411 453 -19% Total Revenue 18% 22% 21% -4% -2% Gross Profit Margin 57 -22% -37% 36 46 EBIT -17% -29% 52 62 72 EBITDA -48% 14 28 39 -63% Net Income $60.0 $71.1 -2% -17% $58.7 ASP (USD/ton) 7

Agenda 1 INTRODUCTION 2 2 OPERATIONAL REVIEW 3 COMMERCIAL REVIEW 3 4 2 FINANCIAL REVIEW 4 4 2 5 5 QUESTION & ANSWERS 8

Operational Summary 2020 2020 TARGET: 19 - 20.1 Mt* OUTPUT TREND Unit: Mt East Kalimantan 6.7 Indominco 5.7 5.6 8.9 Mt 5.3 4.5 4.5 Jorong Kitadin Trubaindo Bunyut Port Bharinto 4.3 Mt Trubaindo Kitadin – Embalut Samarinda Bharinto Indominco 1.6 Mt Balikpapan 2.6 - 3.7 Mt East 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20e Kalimantan Avg.S/R 13.2x 11.5x 9.5x 9.3x 10.7x 10.5x (bcm/t) Palangkaraya COMMENTS Central South Kalimantan Kalimantan ▪ 1Q20 total output achieved target with strip ratio as Banjarmasin Jorong 1.7 expected. 1.4 - 1.6 Mt ▪ Next quarter production output will be maintained with lower strip ratio. Jorong Port *) 2020 target subject to further government approval 9

Indominco Mandiri SCHEMATIC OUTPUT TREND 2020 target: 8.9 Mt Unit: Mt Operations Ports 3.3 Hauling 2.7 Stockpile 0.5 2.5 West Block 2.1 ROM 0.5 Crusher Mine 0.5 stockpile stockyard 0.7 W Block 2.8 East Block 2.1 2.0 1.4 E. Block Bontang City 1Q19 4Q19 1Q20 2Q20e 35Km Sea conveyor Avg.S/R 13.9x 10.2x 10.1x 11.1x (bcm/t) 2.5Km Asphalt haul 14.9x 12.8x 12.8x 13.3x - W. Block : road 9.4x 10.1x - E. Block : 13.7x 9.6x Post Santan River Panamax Port stock COMMENTS yard 95,000 Inland DWT ▪ conveyor 4km 1Q20 production was higher than target. ▪ Indominco 2Q20 production target expected to be lower mainly due to manage against uncertain coal price condition. km 0 2 4 6 8 10 10

Melak group – Trubaindo and Bharinto SCHEMATIC OUTPUT TREND 2020 target: TCM 4.3 Mt Unit: Mt Mahakam BEK 2.6 - 3.7 Mt River Bunyut Port 1.9 1.7 1.7 1.5 Product coal East Kalimantan conveyor, stacking, 1.2 1.0 1.1 Trubaindo stockpile 1.0 40km Mine to port 0.7 Bharinto 0.7 0.6 Operations 0.5 Barge Port Kedangpahu 1Q19 4Q19 1Q20 2Q20e Hauling River S/R (bcm/t) 12.9x 9.5x 10.9x 10.7x PT. Trubaindo - Trubaindo : Stockpile - Bharinto : 12.2x 8.2x 10.0x 10.0x ROM stockpile North COMMENTS COMMENTS Block Bharinto 60km South Block 1 ▪ Trubaindo: south west of (Dayak Besar) Trubaindo North ▪ 1Q20 production achieved as according to target. Lower strip Block ratio than target. PT. TIS ▪ To maintain 1Q20 production output level. South Block 2 (Biangan) ▪ Bharinto: ▪ 1Q20 production below target due to low contractor capacity. 0 5 10 15 20 25 km PT. Bharinto ▪ Further construction of road and improvement of port infrastructure continues in 2020. 11