CORPORATE PRESENTATION Non Deal Roadshow February 2018 STRONGER - PowerPoint PPT Presentation

CORPORATE PRESENTATION Non Deal Roadshow February 2018 STRONGER FACING CHALLENGES

COMPANY AT A GLANCE • The 2nd largest tin producer in the world • Building on an impressive tin history of almost 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 with offshore mining operation 2

VISION AND 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 VIS ISION ON To be a leading enviromental friendly mining company in the world MIS ISSION Building strong, supreme and dignified human resources Implementing the proper and right good governance for mining Optimizing the value of the company and contribution to the shareholders as well as social responsibility PT TIMAH Tbk | www.timah.com 3

BOARD OF DIRECTORS Experienced in Corporate Finance sector over 20 years, before join in PT TIMAH Tbk he was M. . Riz iza Pahle levi Tabrani in PT Perusahaan Gas Negara Tbk as a Chief Financial Officer and also become a president Presid ident Di Director commissioner in subsidiaries of PT Perusahaan Gas Negara Tbk. Experienced in Banking sector over 23 years, before join in PT TIMAH Tbk he was in PT Bank Emil il Ermin indra Negara Indonesia (Persero) Tbk as an EVP Strategic Planning Division Head, EVP Management Chi Chief f Fi Financia ial l Of Offic ficer Office Head, and VP Regional Chief Executive Officer. Alw lwin Alb lbar Experienced in PT TIMAH Tbk over 17 years with several positions such as Head of Business Director Di or of of Op Operatio ion Development, Head of Regional Engineering and Production Experienced in Mining over 17 years, before join in PT TIMAH Tbk he was in PT Rio Tinto Trenggono Suti tioso Indonesia as Exploration Geologist, PT ANTAM Tbk with several positions such as VP Di Director or of of Bus Busin iness Exploration, Head of Project Development, SVP Corporate Strategic Development, Corporate De Development Secretary. Muhammad Rizk izki Experienced in PT TIMAH Tbk over 20 years with several positions such as Head of Offshore Operation, Head of Logistic, Head of Metallurgy. Di Director or of of Hu Human Res esources PT TIMAH Tbk | www.timah.com 4

CORPORATE STRUCTURE 1 65% 65% 35% 35% 2 3 4 99,99% 99,99% 99,99% 99,99% 99,99% 99,99% 100% 50% 50% 50% 50% 99,80% 99,99% Pilar 1 : Tin mining 1 99,99% Pilar 2 : Downstream 2 Pilar 3 : Non tin mining 3 99,99% Pilar 4 : Based on competency 4 PT TIMAH Tbk | www.timah.com 5

TIN INDUSTRIES OVERVIEW Net Income XXXX PT TIMAH Tbk | www.timah.com 6

FINANCIAL DEVELOPMENT INDICATOR EBITDA + + 74 % In IDR billion 1,528 1,524 1,393 1,300 *) 1,191 1,077 1,046 748 Net Income XXXX 2010 2011 2012 2013 2014 2015 2016 2017 NET INCOME In IDR billion 947 896 + + 390 % 673 581 *)400- 500 431 252 102 2010 2011 2012 2013 2014 2015 2016 2017 *) Unaudited/estimated numbers PT TIMAH Tbk | www.timah.com 7

9M 2017 FINANCIAL PERFORMANCE Revenue Rp6,621 billion Gross margin 17% Net Income Rp300 billion EBITDA Rp969 billion STRONGER FACING CHALLENGES 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 PT TIMAH Tbk | www.timah.com 8

9M 2017 NET PROFIT ANALYSIS Var ariance YoY oY In n bil billion IDR DR +2,029 +2 +1 +1,483 2000 Net Income 1500 XXXX 1000 +139 +1 +4 +4 +66 +6 +8 +86 500 301 301 51 51 Net Income 0 XXXX Net income 9M Revenue Production cost Opex Depre. & Amort. Others Tax Net income 9M 2016 2017 The increase of TINS revenue in the previous year was driven by the increase in sales volume by 16% supported by the increase of 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 PT.TIMAH Tbk | www.timah.com 9

9M 2017 FINANCIAL SUMMARY Revenue Net income In IDR billion In IDR billion 490% 44% 10,000 800 673 7,822 7,518 581 8,000 6,968 6,874 6,621 600 6,239 Net Income 432 6,000 4,592 400 301 XXXX 252 4,000 200 102 2,000 51 - 0 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017 Net Income EBITDA EPS XXXX In IDR billion Rupiah/shares Net Income 52% 471% 2,000 120 XXXX 102 1,524 90 100 86 1,500 1,191 80 1,077 1,047 969 60 1,000 784 40 638 34 40 500 14 20 7 0 - FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017 PT TIMAH Tbk | www.timah.com 10

QUARTERLY FINANCIAL SUMMARY Gross profit (in IDR billion) Revenue & margin (%) In IDR billion 2,319 2,500 600 25% 2,253 22% 2,047 18% 500 1,796 20% 2,000 15% 15% 400 Net Income 522 15% 1,500 29% 300 XXXX 10% 1,000 318 298 333 200 64% 5% 500 100 - 0 0% Q1 2017 Q2 2017 Q3 2016 Q3 2017 Q1 2017 Q2 2017 Q3 2016 Q3 2017 Net income EBITDA (in IDR billion) In IDR billion & margin (%) Net Income 200 8.00% 500 20% 16% XXXX 6.50% 17% 15% 400 150 6.00% 15% 12% 4.70% 3.80% 300 150 3.20% 100 4.00% 10% 297 381 200 332 28% 255 84 50 85 38% 2.00% 5% 100 66 0 0.00% 0 0% Q1 2017 Q2 2017 Q3 2016 Q3 2017 Q1 2017 Q2 2017 Q3 2016 Q3 2017 PT. TIMAH Tbk | www.timah.com 11

CASH MARGIN PER TONNES In thousand USD/tonnes 25 19.6 19.5 18.8 18.8 20 16.7 16.5 15.5 Net Income 15 XXXX The he hi highest average tin pr price The he low ower 10 average tin pr price 3.1 2.8 5 1.8 1.7 1.6 0.7 0.6 0 Net Income FY2012 FY2013 FY2014 FY2015 FY2016 9M 2016 9M 2017 XXXX Cash margin Delivered cost* *) Delivered cost: production cost + marketing cost + administrative 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. PT.TIMAH Tbk | www.timah.com 12

CAPITAL EXPENDITURE Re Refined tin Cap Capex In In bil billio ion IDR IDR pr production incr ncrease sed 43% 600 MAJOR EXPANSION PROJECTS 535 539 489 500 Exploration & Production: Major Net Income 129 143 expansion for open the new area onshore XXXX 400 mining in Bangka and Belitung, and regular 252 91 exploration activities 137 9M 9M 20 2017 17 300 Construction in progress: Construction 108 46 in progress related to development of 200 production capacity, recondition and 82 replacement machinery including in 37 185 174 fuming development Net Income 100 102 XXXX 38 23 16 - FY 2016 9M 2016 9M 2017 Building & office Machinery Exploration & production Equipment CIP PT.TIMAH Tbk | www.timah.com 13

DEBT PROFILE AND COST OF FUND Deb Debt Prof ofile (I (In n bill billion IDR IDR) Cost Cos t of of fu fund anal analysis is Issu ssued Obligation and nd Su Sukuk with th 12. 2.00% 0% low ower inte terest rate te 9.79% 9.49% 9.41% 10. 0.00% 0% Net Income 8.47% 8.18% XXXX 8.00 00% 6.60% 1500 6.00 00% 4.00 00% 2.70% 2.38% 2.35% 2.34% 2.20% 2334 2156 2.00% 2115 1733 2.00 00% 1355 264 0.00 00% Net Income 201 012 201 013 201 014 201 015 201 016 201 017 FY2012 FY2013 FY2014 FY2015 FY2016 9M2017 XXXX Average IDR Rate Average USD Rate Short term loan Long term loan 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 PT.TIMAH Tbk | www.timah.com 14

9M 2017 OPERATION PERFORMANCE Tin ore production 23,854mt Refined tin production 22,837mt Refined tin sales 21,588mt STRONGER FACING CHALLENGES Striving to become a more effective company, TINS has Average selling price taken advantage from the tin commodity price hike by effectively increasing volume of tin ore production $20,557/t PT.TIMAH Tbk | www.timah.com 15

OPERATION OVERVIEW Res eserv rves 335,9 33 5,909 31 319,1 9,120 Provin ince Tot otal al IUP Tot otal al ar area (Ha) Ha) Not Note Ba Bang ngka, Ba Babe bel 20 81.824 Tin ingot 264,806 251,705 Bang Bangka Bar Barat, Babe Babel 45 93.954 Tin ingot 71,103 Bang Ba ngka Sela Selatan, Ba Babe bel 18 38.265 Tin ingot 67,415 FY2016 9M2017 Ba Bang ngka Teng ngah, Ba Babe bel 8 26.884 Tin ingot Onshore Offshore Belitun Belit ung, Ba Babe bel 9 13.262 Tin ingot Belitun Belit ung Tim Timur ur, Ba Babe bel 11 61.278 Tin ingot Res esources Bangka Beli litung, Lintas Li as 10 112.827 Tin ingot & iron ore 73 737,5 7,546 74 747,4 7,479 Kabu abupa paten Net Income Karim arimun, Kepr pri 4 18.875 Tin ingot XXXX 472,224 490,660 Riau iau 2 6.540 Tin ingot Riau dan Kepri ri, Lintas Li as 1 19.594 Tin ingot Kabu abupa paten 275,255 246,886 TOTAL 12 128 47 473. 3.303 FY2016 9M2017 Onshore Offshore PT.TIMAH Tbk | www.timah.com 16