ANALYST BRIEFING 3Q12 performance results 13 November 2012 - - PowerPoint PPT Presentation

13 November 2012

ANALYST BRIEFING

3Q12 performance results

Disclaimer

The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number

• f assumptions which may prove to be incorrect. This presentation should not be

relied upon as a recommendation or forecast by PT. Indo Tambangraya Megah Tbk. Nothing in this release should be construed as either an offer to buy or sell or a solicitation of an offer to buy or sell shares in any jurisdiction

2

Agenda

1. Introduction 2. Commercial review 3. Operational review 4. Financial review

Appendices

3

Disclaimer

Agenda

1. Introduction

4

Asian thermal benchmark coal price trends 2007-2012

• Slower global recovery than expected
• Euro area falls into recession
• Excess supply of coal due to :
• Unusual warm winter in US and EU
• Good weather for mining in Indonesia

and Australia

• Below normal freight rates and

increased export from Atlantic

• Increased utilization of natural gas
• Increased production of shale gas

5

Response to changing market environment

Export sales mainly to strong credit large corporate buyers Strong cash position Financial discipline and risk management systems Good corporate governance

• FUNDAMENTALS

Adjust mine plans to lower strip ratios during 2012-13 Improve operational efficiency Reduce overhead costs Reduce and delay capex: target 30% cut 2012-15 Maintain dividend payout ratio

• ACTION PLAN 2012-15
• 6

7

Progress on cost and capex reductions

TOTAL CASH COST MAJOR DISCRETIONARY CAPEX FOR 2012-2015

• Total cash costs down $4/t since 1Q12
• Further reductions planned for 4Q12
• Strip ratios reduced at Indominco and Trubaindo
• OB and mining contracts restructuring ($0.2M

savings 4Q12)

• Other costs including overhead also being cut
• ITM is planning reduction of around 30% in
• riginal discretionary capex plans for 2012-2015
• Most capex cutbacks and postponement at

Indominco and Trubaindo mines

• Limited impact to medium term output targets

4Q12 3Q12

67

2Q12

70

1Q12

71

Units: US$/t

345 245

Original plan Revised plan

MAJOR PROJECTS

• Indominco East Block

IPCC system

• Bontang port expansion
• Bunyut port expansion
• Bharinto improvement

Units: US$M

• $4/t

vs 1Q12

Medium term preparation for coal market recovery

ILLUSTRATIVE AND INDICATIVE ONLY INDO COAL - BONTANG BARGE LOADER EXPANSION INDO COAL - BUNYUT PORT EXPANSION

• Expansion of barge loader, conveyor, and off-

shore floating crane at Bontang (2015)

• Increased handling capacity by 8-10Mt to 18-

22Mt and lower unit costs

• Loading to capesize vessel will be facilitated

which will increase group’s marketing flexibility

BoCT

Port stockyard

Existing facilities

Panamax 95,000 DWT

Capesize 150,000 DWT OFFSHORE FLOATING CRANE BARGE LOADER

Mahakam River

• Expansion of additional coal loader and coal

stockpile capacity will facilitate increased Bharinto supply

• Higher tonnage and lower operating costs
• Provide a better position to ship coal from that

region

INDOMINCO TRUBAINDO

COAL LOADER COAL STOCKPILES

8

ITM group operations

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12E

Units: Mt 6.7 7.2 5.7

Indominco Trubaindo Bharinto Kitadin Jorong

East Kalimantan

Bunyut Port Balikpapan Palangkaraya Banjarmasin

Central Kalimantan South Kalimantan KITADIN- EMBALUT

1.2 Mt

INDOMINCO

14.5 Mt

TRUBAINDO

7.4 Mt

BHARINTO

0.3 Mt

JORONG

1.2 Mt

Samarinda Jorong Port Bontang Coal Terminal Captive coal- fired power project

KITADIN TANDUNG MAYANG

2.4 Mt

2012 outlook: 27Mt

2012 OUTPUT TARGETS*

INDICATIVE OUTPUT TARGETS**

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12E

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

2010 2011 2012E 2013E 2014E 2015E

Units: Mt

Indominco Trubaindo Bharinto Kitadin Jorong

** Not including inorganic growth. Note: These output targets are indicative only and are subject to change

6.8 7.0 7.5

* Saleable tonnes

QUARTERLY OUTPUT

9

Highlights of 3Q12 and 9M12 results

3Q12 576 31% 133 120 $87.5 Q-Q

• 8%

0%

• 12%
• 2%
• 8%

Unit: US$ Mn

Coal sales 6.6 Mt

Down 0.3 Mt

• 1% Q-Q

9M12 1,781 33% 454 367 $94.1 y-y +8%

• 4%
• 7%

+2%

• 1%

Coal sales 19.0 Mt

Up 1.4 Mt

+8% y-y

Total Revenue Gross Profit Margin EBIT Net income ASP (USD/ton) 2Q12 626 31% 152 122 $94.6 9M11 1,649 37% 487 361 $94.6

10

Disclaimer

Agenda

2. Commercial review

11

Market adjusting from oversupply since early 2012

Excludes: anthracite and lignite imports to China Sources: Wood Mackenzie, Banpu

REST OF WORLD JAPAN SE ASIA CHINA INDIA EUROPE COLOMBIA SOUTH AFRICA INDONESIA AUSTRALIA USA S.KOREA RUSSIA Change in shipments (Mt)

2011 2012 CHANGE TOTAL DEMAND

(including stock change)

757 821 +64 Mt TOTAL SHIPMENTS 741 822 +81 Mt THERMAL DEMAND AND SUPPLY CHANGE 2011 – 2012 (MT) COMMENTS

• Demand continues to grow in

2012, at 8%, but slower than supply growth

• Key markets like China and

India continue to grow

• Coal demand growth from

Europe remains solid

• Supply growth continues to

come from Indonesia and Australia.

• Unprecedented surge in US

coal available for export has de-stabilized market

• The market is adjusting back

to equilibrium but will take time

• 4

+19 +7 +12 +12 +36 +10 +5

• 1

+3 +29 +15 +7

• 1
• 5

Change in demand (Mt)

12

19 50 7 5

• 1

60 7 7 10 8 15 10 29 40

Supply overhang has impacted market psyche

Source: Wood Mackenzie, Banpu

Supply Potential (Mt) Supply Change 2012 vs 2011 (Mt) COLOMBIA SOUTH AFRICA INDONESIA AUSTRALIA RUSSIA

* Stocks in South and East coast area only (incl. at power stations)

USA

TOTAL SHIPMENT GROWTH +81 Mt POTENTIAL SUPPLY +120 Mt

CHINA*

THERMAL SUPPLY POTENTIAL 2011 – 2012 (MT) COMMENTS

• Weakening market has put

pressure on producers to reduce inventories, cut back production, close operations

• Idle capacity and stocks in

Indonesia are lower CV

• High stocks in US implies big

supply overhang – but in reality most cannot be exported or replaced at current spot prices

• Australia / Colombia selling

coal at marginal cost, increasing exports in the short term

• South Africa / Colombia

supply capped by port and social / union issues

Coal stocks at coal terminals in Europe 8Mt (+60 Mt from China) Freight rates at historical lows

13

US$/t

Approximately 20% of supply is below cash cost at $85/t

Unit: Mt

SEABORNE THERMAL EXPORT TOTAL CV-ADJUSTED CASH COST CURVE COMMENTS

• At $85/t, approx 20% of world

supply is below cash cost

• At $95/t, approx 10-15% of

the supply curve is below cash cost

• High sulphur, high ash, high

moisture and very low CV result in substantial discounts below CV adjusted price

• Production cuts already being

implemented in all countries: Indonesia: 30 – 60 Mt Australia: 10 – 15 Mt China: about 100 Mt US: about 100 Mt

150 100 50 100 200 300 500 600 700

85

Source: Wood Mackenzie, AME, AWR Lloyd analysis

Colombia S.Africa Indonesia Australia US Appalachia Russia 52 61 75 5% 5% 18% 20% % below cash cost for new supply 92 95 100% 10% US high sulfur

400

47 – 88 44 – 95 38 – 102 54 – 170 FOB cash cost range ($/t) 73 – 126 79 – 100 70 – 75 62

WEIGHTED AVERAGE

COLOMBIA

WEIGHTED AVERAGE

S.AFRICA

WEIGHTED AVERAGE

INDONESIA

73

WEIGHTED AVERAGE

US HIGH S

WEIGHTED AVERAGE

AUSTRALIA

WEIGHTED AVERAGE

US APPAL.

WEIGHTED AVERAGE

RUSSIA 14

15

Historical perspective and rise in off-spec coal supply

HISTORICAL MARGINAL COST CURVE AND NET PRICE RELATIONSHIP COMMENTS

• In the past when prices have

fallen close to or below 90th cost percentile, it has been sign of an imminent spike

• A spike historically has

resulted from two events coinciding: 1) demand recovery 2) supply reduction

• Current situation is more

complex with uncertainty of demand recovery and greater % of lower net priced supply

• Higher quality coals more

scarce

• Since 2010, proportion of off-

spec coals in global seaborne supply has increased

US$/t

Source: Wood Mackenzie, AME, AWR Lloyd analysis

20 40 60 80 100 120 140 160 180 200 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

90th cost (seaborne FOB) 80th cost (seaborne FOB) Spot coal price Hi Sulfur, Hi ash, net Price LCV (4200 kcal/kg, GAR), net price CV adjusted to 6322 GAR *Off-Spec = quality which does not fit within traditional range of standard or benchmark grades

Percentage of coal at off-spec* quality As of 2012

8% 21% 35%

16

3Q 2012 seaborne thermal coal market drivers

• Downward trend in sentiment,

despite global coal trade expanding.

• Gas prices support coal

demand in Europe but

• pposite in USA which diverted

coal to export.

• Rate of cutbacks and closures

increases in all countries

• World growth forecast of

2.2%* (Prev. 2.1%**) in 2012 and 2.4%* in 2013; Asian growth forecast of 5.7%* (Prev. 6.5%**) in 2012 and 6.4%* in 2013

* Economist Intelligence Unit, Global Outlook, October 2012 ** Internal Macroeconomic Assumptions as of July 2012

• Indonesia normal. Stocks built

up.

• Chinese winter/summer
• normal. Good rains increase

hydro, exceptionally.

• Australia nothing significant.
• USA mild 1H, reduces

demand.

• Economic activity declining

well below announced GDP levels.

• Coal production increased

beyond consumption

• increase. Electricity Dd

declining for coal.

• Imports in 1H 2012, double

1H 2011, continuing strong.

• Policy uncertainty clouds

upsides

• Overall impact – high stock

and low domestic price, despite minor recovery.

WEATHER CHINESE DEMAND OTHER DRIVERS

20 40 60 80 100 120 140 160 180 200 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12

17

ITM ASP VS BENCHMARK PRICES

ITM ASPs vs seaborne thermal coal benchmark prices

COMMENTS

Unit: US$/t

Monthly NEX ITM quarterly ASP

ASP 3Q12 $87.5/t ASP 2Q12 $94.6/t

NEX* Nov 08, 2012 $80.35

• ASP started to decline

marginally in 2Q and this extended to 3Q, but not as quickly as the general market and spot.

• Continuing pressure from

weaker market prices and product mix, impacts ASP and tonnage but not significantly.

• ITM fully sold status for 2012

* Barlow Jonker Index: benchmark NSW FOB thermal coal index

26% 17% 12% 9% 8% 7% 6% 5% 5% 3%2%

0%

18

COAL SALES BREAKDOWN BY DESTINATION 2012e (Mt) COAL SALES 2012e

Total Coal Sales: c26.5 Mt

Japan China Taiwan S Korea Italy Thailand Philippines Hong Kong India Indonesia

JAPAN 4.5 Mt PHILIPPINES 1.6 Mt THAILAND 1.9 Mt INDIA 3.2 Mt HK 0.7 Mt S KOREA 1.5 Mt CHINA 6.7 Mt TAIWAN 2.1 Mt ITALY 1.4 Mt 1.5 INDONESIA 2.3 Mt MALAYSIA 0.4 Mt

Malaysia

ITM coal sales 2012e

OTHERS 0.1 Mt

Others

Indicative 2012-2013 coal sales

Contracted

96% 4%

TARGET SALES 2012: c26.5 Mt As at 12 November 2012

2012 SALES TARGET

INDICATIVE SALES 2013: c28.5 Mt

2013 INDICATIVE SALES 10% 46% Unpriced 28% 16% Indexed Priced Unsold

Focus more on index-linked Focus on lower quality product sales

Priced Indexed

19

Disclaimer

Agenda

3. Operational review

20

Indominco Mandiri

EAST BLOCK

Santan River Port stock yard Bontang City Asphalt haul road

2.5Km

35Km Sea conveyor Mine stockyard Inland conveyor 4km

10 6 8 2 km 4

WEST BLOCK

Operations Stockpile Ports Hauling Crusher

ROM stockpile Post Panamax 95,000DWT

SCHEMATIC

10.9 13.1 10.9 13.3 E BLOCK W BLOCK 12.5 13.9 15.8 11.2 E BLOCK W BLOCK

QUARTERLY OUTPUT QUARTERLY UPDATES

2.1 2.1 1.6 2.1 2.0 2.1 2.1 2.0 1.4 1.4 1.8 2.1 4.2 4.1 3.0 3.5 3.8 4.2

• 3Q12 production achieved according to plan.
• Expect lower SR during 2H12 in response to declining coal price.
• Already obtained forestry permit for the remaining East Block area.
• IPCC system: on process to obtain import permit for crusher and

conveyer unit.

• Port expansion: completed the feasibility study by consultants and

continue with construction (EPC) bidding process.

13.2 9.2

2012 outlook: 14.5 Mt

Units: Mt Units: Bcm/t

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12e 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12e

13.1 9.0

21

Trubaindo and Bharinto

22 1.8 2.1 1.7 2.0 2.0 1.8 0.2 1.8 2.1 1.7 2.0 2.0 2.0 Mahakam River South Block 1 (Dayak Besar) North Block 40km Mine to port Kedangpahu River ROM stockpile Bunyut Port

10 25 15 20 5 km

Product coal conveyor, stacking, stockpile EAST KALIMANTAN Bharinto 60km south west of Trubaindo North Block South Block 2 (Biangan) PT. BHARINTO PT. TRUBAINDO

SCHEMATIC

TRUBAINDO 14.1 12.4 13.4 13.5

Operations Stockpile Hauling Barge Port

TRUBAINDO BHARINTO

QUARTERLY OUTPUT QUARTERLY UPDATES

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12e

• Trubaindo:
• 3Q12 production was according to plan due to better weather

and improved coal hauling capacity.

• Expects lower strip ratio towards the end of the year to

reduce production cost.

• Bunyut Port expansion: discussing with consultants on project

scope and expectation.

• Bharinto:
• Coal crushing activities started in August 2012 and initial coal

sales was done in September 2012.

13.4

2012 outlook TCM: 7.4 Mt BEK: 0.3 Mt

Units: Mt Units: Bcm/t

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12e

12.7 BHARINTO 7.4 7.4

Balikpapan Mahakam River

Samarinda

to Muara Berau Bontang city

EMBALUT

Embalut Port to Muara Jawa

ROM stockpile

Operations Stockpile Ports Hauling Crusher 10 6 8 2 km 4 5km Mine to port

• TD. MAYANG

EAST KALIMANTAN

IMM EB IMM WB

Bontang Port

Kitadin Embalut and Tandung Mayang

0.3 0.4 0.3 0.3 0.3 0.3 0.5 0.7 0.6 0.6 0.3 0.8 0.8 1.0 0.9 0.9

11.5 11.2 12.0 11.7 TDM EMB EMB

QUARTERLY OUTPUT

15.1 TDM 15.1 15.1 15.1

• Kitadin Embalut:
• 3Q12 production achieved according to plan.
• Expects higher coal production by the end of the year

due to better working conditions.

• Kitadin Tandung Mayang:
• 3Q12 production and full year target is lower than plan

due to change in market requirement.

11.4 15.1

Units: Mt Units: Bcm/t

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12e 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12e

11.5 15.1

SCHEMATIC QUARTERLY UPDATES

2012 outlook EMB: 1.2 Mt TDM 2.4 Mt

23

Jorong

0.4 0.3 0.3 0.3 0.3 0.3 Coal terminal Jorong Pelaihari

Pacific Ocean

Haul road

10 25 15 20 5 km

20km

MAJOR QUARTERLY UPDATES SCHEMATIC

8.6 8.6 8.6 8.6 8.6

Operations Stockpile Hauling Barge Port

QUARTERLY OUTPUT

• 3Q12 production achieved above the plan due to better

weather condition and optimization of the mining equipment.

• Annual production output is expected to be slightly higher

than plan.

8.6

2012 outlook JBG: 1.2 Mt

Units: Mt Units: Bcm/t

3Q11 4Q11 1Q12 2Q12 3Q12 4Q12e 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12e

24

Disclaimer

Agenda

4. Financial review

25

Sales revenue

SALES VOLUME REVENUE* GROWTH

3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 6.8 7.1 98.4 103.1 5.7 101.1

• 3% YoY

0% QoQ

• 11% YoY
• 8% QoQ

3Q11 4Q11 1Q12 2Q12 3Q12

3Q11 4Q11 1Q12 675 729 575

• 15% YoY
• 8% QoQ

Units: Mt Units: US/t Units: US$M

Indominco Trubaindo Jorong

Kitadin Indominco Trubaindo Jorong Kitadin

6.6 94.6

2Q12 622

* excluding port revenue

6.6 Bharinto 87.5

ASP

3Q12 572 26

Average gross margin

* COGS included royalty

ITM Consolidated

3Q11

678

39% 2Q12 3Q12

626

31%

Indominco Trubaindo Kitadin Jorong

486

34%

229

28% 36%

45

30%

26

19% 46% 17%

Revenue GPM* (%) 434

20%

219

30%

95

41%

23

26% 3Q11 2Q12 3Q12 3Q11 2Q12 3Q12 3Q11 2Q12 3Q12 3Q11 2Q12 3Q12

Units: US$M

390

22%

188

28%

103

35%

17

16%

576

31% 27

Cash costs

WEIGHTED AVERAGE STRIP RATIO CASH PRODUCTION COST

3Q11 4Q11 1Q12 2Q12 3Q12

49.3 48.0 51.9

3Q11 4Q11 1Q12 2Q12 3Q12

11.8 11.9 13.1

FUEL PRICE TOTAL CASH COST

3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12

1.05 1.03 1.07 70.2 71.0 68.5 Units: US$/t Units: Bcm/t Units: US$/Ltr Units: US$/t 13.1 1.07 51.6 70.0 1.02 12.0 49.8 67.2

28

EBITDA

29

*COGS = Prod cost + Transport cost + Inv. movement

Indominco Trubaindo

3Q11

Kitadin Jorong

2Q12 3Q12

78.6 49.2 39.7 4.2

3Q11 2Q12 3Q12 3Q11 2Q12 3Q12 3Q11 2Q12 3Q12

• 36% YoY
• 12% QoQ

Revenue 2Q12 3Q11 3Q12

167.9

COGS Selling Royalty Admin

232.9 148.4

+23.7

Royalty decreased with revenues Lower ASP by 8% Lower sales volume by 1%

(50.1)

CONSOLIDATED MINE BY MINE Units: US$M Units: US$M

+5.8 +1.0 +0.1

150.9 61.0 15.7 3.5 75.8 36.6 37.3 2.0

Net income

30

101.1 8.5 44.0 1.8 58.9 33.1 33.8 0.1 76.9 25.2 19.2

3Q11 2Q12 3Q12 3Q11 2Q12 3Q12 3Q11 2Q12 3Q12 3Q11 2Q12 3Q12

1.4

• 23% YoY
• 2% QoQ

2Q12 3Q12 Others EBIT Income Tax Derivative Transactions FOREX Net Fin.Charges 3Q11

155.9 122.2 119.9

Derivative gain

(19.6)

CONSOLIDATED MINE BY MINE Indominco Trubaindo Kitadin Jorong Units: US$M Units: US$M

+2.8 +4.3 +40.6 (14.8) (15.6)

Lower ASP by 8% Lower sales volume by 1%

Balance sheet

CASH POSITION KEY RATIOS Units: US$M DEBT POSITION Units: US$M

2008

222

2008

11 55

2009

429

2009 2011

612

2011

295

2010 2010 3Q12 3Q12 Net Market Gearing (%) Net D/E (times)

(0.34) (34%) (0.47) (44%) (0.57) (57%) (0.41) (41%)

2008 2009 2011 2010 3Q12

631 (0.67) (67%)

31

1 2

Capital expenditure 2012*

Unit: US$M

Indominco Trubaindo Bharinto Kitadin Jorong ITM Consolidated

35 15 27 77

Realized up to Sep’12 2012 Capex plan

108 80 4 209 8 32 1

*Total capex includes Jakarta office and maintenance capex

11 1 73

Capex postponed

53 132

32

Disclaimer

Question & Answer

33

Disclaimer

Agenda

Appendices

34

27% 17% 11% 10% 7% 7% 6% 5% 5% 3%

1% 1%

COAL SALES BREAKDOWN BY DESTINATION 9M12 (Mt) COAL SALES 9M12

Total Coal Sales: 19.0 Mt

Japan China Taiwan S Korea Italy Thailand Philippines Hong Kong India Indonesia

JAPAN 3.2 Mt PHILIPPINES 1.1 Mt THAILAND 1.3 Mt INDIA 2.0 Mt HK 0.5 Mt S KOREA 1.0 Mt CHINA 5.2 Mt TAIWAN 1.4 Mt ITALY 1.0 Mt 1.5 INDONESIA 1.9 Mt MALAYSIA 0.2 Mt

Malaysia

ITM coal sales 9M12

OTHERS 0.1 Mt

Others 35

ITM structure and history

Note: * Updated Coal Resources and Reserves as of 30 Sep 2012

ITMG

65.00%

Indominco Trubaindo Jorong

PT Indominco Mandiri (CCOW Gen.I) PT Trubaindo Coal Mining (CCOW Gen II) PT Kitadin-Embalut (KP) PT Jorong Barutama Greston (CCOW Gen II)

50.00%

PT Indo Tambangraya Megah Tbk.

Banpu Minerals (Singapore) Pte Ltd 99.99% 99.99% 99.99% 99.67% Banpu Minerals Co.Ltd

Reserves 398* Mt Resources 1,627* Mt

BMS

99.99%

BMC

Banpu PCL

Banpu Public

35.00%

Kitadin

PT Kitadin-Td.Mayang (KP)

BCI

50.00% 100.00%

Banpu Coal Investment Co.Ltd

East Kalimantan East Kalimantan South Kalimantan East Kalimantan

INDONESIAN STOCK EXCHANGE IPO 18th Dec 2007

6,500-7,300 kcal/kg 6,000-6,300 kcal/kg 5,800 kcal/kg 6,700 kcal/kg 5,300 kcal/kg

Acquired Jorong in 1997 Transferred into ITM 2007

Output 12: 15.0 Mt Output 12: 7.1 Mt Output 12 : 2.7 Mt Output 12 : 1.0 Mt

Bharinto

PT Bharinto Ekatama (CCOW Gen III) 99.99%

East / Central Kalimantan 6,400-6,800 kcal/kg

Output 12 : 0.7 Mt

The “Indocoal” assets

East Kalimantan

164 Mt 695 Mt

Resources

Reserves

96 Mt 327 Mt

Resources

Reserves

13 Mt 150 Mt

Resources

Reserves

112 Mt 298 Mt

Resources

Reserves

5 Mt 144 Mt

Resources

Reserves

7 Mt 13 Mt

Resources

Reserves

36

Income statement

Unit: US$ thousand 3Q12 2Q12 QoQ% Net Sales 576,267 626,403

• 8%

Gross Profit 176,334 196,988

• 10%

GPM 31% 31% SG&A (43,827) (44,897) EBIT 132,507 152,091

• 13%

EBIT Margin 23% 24% EBITDA 148,448 167,867

• 12%

EBITDA Margin 26% 26% Net Interest Income / (Expenses) 4,474 1,660 FX Gain / (Loss) (1,912) (6,189) Derivative Gain / (Loss) 35,617 (4,966) Others (3,403) 11,411 Profit Before Tax 167,283 154,007 9% Income Tax (47,392) (31,763) Net Income 119,891 122,244

• 2%

Net Income Margin 21% 20%

37

Income statement

Unit: US$ thousand 9M12 9M11 YoY% Net Sales 1,780,625 1,648,752 8% Gross Profit 582,529 606,472

• 4%

GPM 33% 37% SG&A (128,749) (119,365) EBIT 453,780 487,107

• 7%

EBIT Margin 25% 30% EBITDA 500,166 529,381

• 6%

EBITDA Margin 28% 32% Net Interest Income / (Expenses) 9,162 2,649 FX Gain / (Loss) (10,239) 1,861 Derivative Gain / (Loss) 57,567 (2,876) Others (13,484) (7,258) Profit Before Tax 496,786 481,483 3% Income Tax (130,154) (120,273) Net Income 366,632 361,210 2% Net Income Margin 21% 22%

38