COMPANY UPDATE PRESENTATION 2018PRESENTATION 2018

       Company Overview. . . 

Our Company at A Glance

The 2nd largest tin producer in the world

Building on an impressivetin history of almost 200 years

Listed at the Indonesia Stock Exchange (IDX) since 1995producer in the world tin history of almost 200 years  Exchange (IDX) since 1995

Registered in the Th l b ITA M b f

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Registered in the London Metal Exchange (LME) for 

Banka Tin & Mentok Tin

The only member ITA with offshore mining

Member of International Tin Association

Vision & Mission

PT TIMAH Tbk is the second largest tin mining company in the world and

VISION

PT TIMAH Tbk is the second largest  tin mining company in the world and member of the newly established Holding of Mining Industry

VISIONTo be a leading environmental friendly mining company in the world

MISSION• Building strong, supreme and dignified

human resources• Implementing the proper & right good• Implementing the proper & right good

governance for mining• Optimizing the value of the company and

contribution to the shareholders as well

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social responsibility

Ownership Structure and Business Development1Republic of Indonesia

2 3

65% 35%owns 1 piece of A-series (Dwiwarna)

99,99% 99,99% 100%

100%

99,99%

99 99%

2 3 4

100% 50%100%

100%

99,99%99,90% 100%

100%Pilar 1 : Tin Mining1

Pilar 2 : Downstream Products2

5

100%Pilar 3 : Non‐Tin Mining3

Pilar 4 : Competency Based Business4

Board of Commissioners

Board of CommissionersExperienced as Expert Advisor dedicated to Chief of Police Department,Commissioner at PT Semen Tonasa Chairman of the Public Policy Committee for

Fachry AliPresident Commissioner 

Commissioner at PT Semen Tonasa, Chairman of the Public Policy Committee forSOE Ministry, Commissioner at PT Indonesia Kendaraan Terminal, then occupiedas Commissioner at PT TIMAH Tbk since 2007

Experienced in mining company for over 20 years with several positions, such asBusiness Analyst Corporate Secretary Director of Operations & Production

MilawarmaCommissioner

Business Analyst, Corporate Secretary, Director of Operations & Production,President Director of PT Bukit Asam Tbk, then joined PT TIMAH Tbk asCommissioner since 2016

Rudy SuhendarCommissioner

Experienced in the Ministry of Energy & Mineral Resources for decades, beforefinally joining PT TIMAH as Commissioner since 2018

Satriya Hari PrasetyaCommissioner

Experienced as Chief of the Jambi Regional Police, BIN Deputy of EconomicIntelligence, then joined PT TIMAH as Commissioner since 2017

T k P ib diExperienced as Government Officials for years, such as Head of NAD ProvincialI f Offi Offi i l f N h A h R h j i d PT TIMAH

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Teuku PribadiCommissioner

Infocom Office, Official of North Aceh Regency, then joined PT TIMAH asCommissioner since 2017

Board of 

LAPORAN DIREKSIDirectors

Board of DirectorsExperienced in both Corporate Finance and Geologist for over 20 years afterpreviously completing his Master Degree in overseas Before joining PT TIMAH

M. Riza Pahlevi TabraniPresident Director

previously completing his Master Degree in overseas. Before joining PT TIMAHTbk, Mr. Tabrani was Chief Financial Officer (CFO) at PT Perusahaan Gas NegaraTbk (PGAS)Experienced in Banking sector for over 23 years with expertise of StrategicPlanning Before finally joining PT TIMAH Tbk Mr Ermindra was at PT Bank

Emil ErmindraChief Financial Officer

Planning. Before finally joining PT TIMAH Tbk, Mr. Ermindra was at PT BankNegara Indonesia (Persero) Tbk as an EVP Strategic Planning Division Head, EVPManagement Office Head, and VP Regional Chief Executive Officer.Experienced at PT TIMAH Tbk for over 17 years after previously completing hisPhD at a prestigious university in United States Mr Albar had also occupied

Trenggono Sutioso Experienced in Mining for over 17 years, before finally joining PT TIMAH Tbk. Mr.

Alwin AlbarDirector of Operation 

PhD at a prestigious university in United States. Mr. Albar had also occupiedseveral positions such as Head of Business Development, Head of RegionalEngineering and Production

Director of Business Development 

p g y , y j gSutioso was at PT Rio Tinto Indonesia as Exploration Geologist, PT ANTAM Tbkwith several positions such as VP Exploration, Head of Project Development.

Muhammad Rizki Experienced at PT TIMAH Tbk over 20 years with the expertise as a metallurgist,

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Director of Human Resources

Mr. Rizki had occupied several positions such as Head of Offshore Operation,Head of Logistic, Head of Metallurgy.

Tin Mining Business Process 

MINING WASHING

Exploration to discover reserve area

Tin ore production Mining activities

Washing tin ore activities to higher tin ore concentrate

O h Off h

EXPLORATION MINING WASHING PLANT

Onshore Exploration

OffshoreExploration Onshore

MiningOffshore Mining

70% sn (Dry)

Tin Metal > 99,90 % SnMaks Pb 300 ppm 

Smelting & refining process to become 

refined tin

Smelting RefiningExport Domestic

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MARKETING SMELTING & REFINING

Company Map of Business Location

Head OfficeBangka

Tin Mining Operation Coal Mining

PT Rumah sakitBakti Timah(Hospital) 

Nickel Exploitation

PT Dok Perkapalan Air Kantung

(Shipping dockyard & services)

Coal Mining

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Representative Office Jakarta

Tin Mining Operation

PT Timah KaryaPersada Properti

(Property)

PT Timah Industri(Tin Chemical Tin Solder)

Mining Concession Area (IUP)Province of Riau,Province of Riau,

Province of Bangka Belitung Islands

Province of Bangka Belitung IslandsProvince of Riau,

and Riau IslandsProvince of Riau, and Riau Islands

Belitung IslandsBelitung Islands

• Number of IUP 7 blocks• Offshore Area 45,009 ha

• Number of IUP 122 blocks• Onshore Area 288,729 ha• Offshore Area 139,663 ha

Availability Number of TinAvailability Number of Tin Resource and Tin Reserve

• Resource 1,043,632 ton• Reserve 415 358 ton

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• Reserve 415,358 ton

       Operational Performance. . . 

Performance Highlight of Company’s Operation

d f d d

32 319 31 178

44,514

40,000

50,000

Tin Ore Production in Ton

27,550 27,431 23 6

30,249 33,444

30 000

40,000

Refined Tin Production in Metric Ton43% 11%

32,319 26,361 24,121

31,178

-

10,000

20,000

30,000

2014 2015 2016 2017 2018

23,756

-

10,000

20,000

30,000

2014 2015 2016 2017 20182014 2015 2016 2017 2018

Refined Tin Sales in Metric Ton

2014 2015 2016 2017 2018

Average Selling price $/Metric Ton

13%-1%

26,907 30,087

26,677 29,914

33,818

10,000

20,000

30,000

40,000

21,686

16,186 18,408

20,429 20,205

10 000

15,000

20,000

25,000

30,000 -1%

14

-

10,000

2014 2015 2016 2017 20185,000

10,000

2014 2015 2016 2017 2018

Performance Highlight of Company’s Downstream

h l d h l l

5,469

4,047 5,000 6,000

Tin Chemical Production in Ton

4,739 4,019

4,000

5,000

Tin Chemical Sales in Ton-15%

-26%

1,016 1,551

1,998

,

-1,000 2,000 3,000 4,000

2014 2015 2016 2017 2018

1,197 1,474 2,015

-

1,000

2,000

3,000

2014 2015 2016 2017 20182014 2015 2016 2017 2018

Tin Solder Production in Ton

2014 2015 2016 2017 2018

Tin Solder Sales in Ton18%

26%

457

1,166 1,379

500

1,000

1,500

463

1,078

1,357

500

1,000

1,500

15

14 -

2015 2016 2017 2018

7 -

2015 2016 2017 2018

       Financial Performance. . . 

Performance Highlight of Company’s Financial

9,217 11,050

10,000 12,000

Revenue – in Billion Rupiah

673

531600

800

Profit for The Year – in Billion Rupiah

6%

20%

7,518 6,874 6,968

-2,000 4,000 6,000 8,000

,

102

252

502 531

0

200

400

600

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Earnings per Share ‐ RupiahEBITDA in Billion Rupiah

15% 6%

86

14

34

67 71

40

60

80

1001,541

757 1,057

1,432 1,643

500

1,000

1,500

2,000

17

14

0

20

2014 2015 2016 2017 2018-

500

2014 2015 2016 2017 2018

Allocation of Capital Expenditures in 2018

Capital Expenditure

1,400 1.18552%

In 2018, the Company spent capitalexpenditure of Rp1,185 billion which was

Capital ExpenditureIn Billion Rupiah

312153

356

800

1,000

1,200

779

52% allocated to increase capacity in machineryand installations, supporting production,reconditioning and replacement as well asfor the construction of Fuming technology

293 280

166 170

138

312 153

200

400

600 g gy

which will be used to recover or reprocesstin slag (non valued material) that currentlycannot be taken using existing furnace, butwith deployed Ausmelt to process tin ore

29 67 -2017 2018

Land and Buildings Machinery and InstallationExploration, Mining and Production Equipment

with deployed Ausmelt to process tin orewith grade approximately 40% ‐ 60%

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Construction in Progress

KINERJA  KEUANGAN NOVEMBER 2017Decrease in Rupiah working capital interest rate to 8 05%

Rupiah Working Capital Interest Rate

Decrease in Rupiah working capital interest rate to 8.05%

9.49% 9.79% 9 41%10.00% 9.49% 9.41%

8.47%8.05%8.50%

9.00%9.50%0 00%

6 50%7.00%7.50%8.00%

5.00%5.50%6.00%6.50%

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2014 2015 2016 2017 2018

CompanyCompany…

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Major Destinations of Tin SalesThroughout 2018, of the Company's refined tin sales amounted to 33,818 tons, 97% was intended

t t f i k t d d ( t ) d l 3% t t th d ti k tto meet foreign market demand (exports) and only 3% to meet the domestic market

South Korea30%US

4%Japan33%

78%

Netherland6%

World’s Top 5

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Taiwan5%

World’s Use of TinIn the utilization of refined tin in 2018, solder ranks first with a percentage of 47.0%, followed by chemicals 

in second place with a percentage of 18.0%, and tinplate in third place with a percentage of 13.0%.

Remarks2017 2018

(‘000 metric (‘000 metric( 000 metric ton) % ( 000 metric

ton) %

Solders 168,1 47,3 174.9 47,0

Chemicals 61 3 17 2 66 9 18 0Chemicals 61,3 17,2 66,9 18,0

Tinplate 49,0 13,8 48,4 13,0

Lead-acid batteries 29,1 8,2 33,5 9,0

Copper alloys 17,9 5,0 18,7 5,0

Lainnya 30,1 8,5 29,8 8,0

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Total 355,5 100,0 372,2 100,0

Source: International Tin Association 2018

World’s Tin ProducersBased on production volume during 2018, PT TIMAH occupies the second largest tin producer in the world with 

production of 33,444 metric tons, under Yunnan Tin with production of 77,789 metric tons

No Name of Company 2014 2015 2016 2017 2018

(dalam metrik ton)

1 Yunnan Tin (China) 75.924 75.500 76.000 74.470 77.789

2 PT TIMAH Tbk (Indonesia) 27.550 27.431 23.756 30.249 33.444

3 Malaysia Smelting Corp (Malaysia) 34.971 30.209 26.802 27.211 27.086

4 Yunnan Chengfeng (China) 22.900 16.600 20.100 26.800 22.900

5 Minsur (Peru) 24.223 20.224 19.573 18.033 18.345

6 Jiangxi New Nanshan (China) 8.000 7.000 7.000 5.500 12.220

7 EM Vinto (Bolivia) 11.734 12.039 13.038 12.637 11.369

8 Thaisarco (Thailand) 17.085 10.502 11.088 10.601 10.544

9 Metallo (Belgium) 9.814 8.863 8.541 9.561 9.328

23Source: International Tin Association 2018

10 Guangxi China Tin (China) 12.200 11.100 10.984 11.499 9.219

Corporate Planning – Innovation Technology 

Technology Fuming 65% Progress of implementation by Mid‐January 2019Estimation of commissioning & commercial in 1Q19

Producing Slag 1 & Slag 2

Capital Expenditure Rp62 billion

Potential of increasing tin ore amounted to 6,000 ton Sn

Note:l d d h l h d h l d

Capacity of 31,000 Mton per years

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• Slag 1 recorded in the Balance Sheet amounted to 15,000 ton with potential tin ore amounted to 4,000 Sn• Slag 2 not recorded in the Balance Sheet amounted to 129,000 ton with potential tin ore amounted to 2,000 Sn• Total Inventory value approx. Rp1,5 billion• Source of funds Bonds and Sukuk Ijarah

Corporate Planning – Innovation Technology 

T h l A lt

Producing Lower grade Sn (40%‐

Technology Ausmelt

60%)

Capital Expenditure $80 million

Potential of increasing crude tin amounted to 30,000‐40,000 ton p.a

Capacity of 40,000 Mton per years

Producing lower Sn (40%‐60%) and estimated completion in 2020, with expectation that newly adopted technology shall promote production and  sustainability of the company in the future

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gy p p y p y

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