Analyst Briefing FY13 performance results 27 Feb 2014 The view s - - PowerPoint PPT Presentation

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Analyst Briefing FY13 performance results 27 Feb 2014 The view s - - PowerPoint PPT Presentation

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Analyst Briefing FY13 performance results 27 Feb 2014 The view s expressed here contain inform ation derived from publicly available sources that have not been independently verified. No representation or w arranty is m ade as to the accuracy,

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SLIDE 1

Analyst Briefing

FY13 performance results

27 Feb 2014

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SLIDE 2

2 The view s expressed here contain inform ation derived from publicly available sources that have not been independently

  • verified. No representation or w arranty is m ade as to the accuracy, com pleteness or reliability of the inform ation. Any

forw ard looking inform ation in this presentation has been prepared on the basis of a num ber of assum ptions w hich m ay prove to be incorrect. This presentation should not be relied upon as a recom m endation or forecast by PT. Indo Tam bangraya 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

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SLIDE 3

3

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

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SLIDE 4

4

Highlights of 4Q13 and FY13 results

4Q13 546 23% 8 3 46 $71.0 Q-Q +1%

  • 3%
  • 16%
  • 25%
  • 2%

Unit: US$ Mln

Coal sales 7.7 Mt

Up 0 .3 Mt

+4% Q-Q

FY13 2,179 23% 337 230 $74.9 y -y

  • 11%
  • 7%
  • 40 %
  • 47%
  • 17%

Coal sales 29.1 Mt

Up 1.9 Mt

+7% y-y

Total Revenue Gross Profit Margin EBIT Net incom e ASP* (USD/ ton)

* Includes bonus/ penalty

FY12 2,439 30 % 558 432 $90 .0 3Q13 543 26% 99 61 $72.5

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SLIDE 5

5

20 13 in review: strengthening our core

Em balut - Jorong Trubaindo - Bharinto

  • Lower SR to reduce

production costs

  • Shortened OB hauling

distance to dumping area

  • Trial shipment of

Bharinto coal to non- Japan market

  • Reduce fuel

consumption on tug- boats

  • Renegotiating barging

contract

  • Optimized mining

reserves at Embalut mine

  • New conveyer belt

system at Embalut port

  • Prepared mine closure

master plan at Jorong mine Jakarta Office

  • Establishment of PT. ITM

Indonesia for coal trading business

  • Establishment of PT.

TRUST for in-house mining contractor business

  • Establishment of

Compliance and Risk Management Dept in the

  • Org. Structure
  • Reduce total cost by 11% to

$62/t in 2013

  • Capex postponement and

rationalization

  • Lower SR to reduce

production costs

  • IPCC trial commenced in

Dec 2013

  • Completed study for

trucks to partially replace diesel with LNG

  • Achieved TPM level 4 at

Td.Mayang mine and level 3 at Indominco mine

Indom inco – Td. Mayang

Mahakam River

INDOMINCO BALIKPAPAN JORONG TDMY BHARINTO EMBALUT BONTANG JORONG

(ANCHORAGE)

TRUBAINDO SAMARINDA

(ANCHORAGE)

MINE SITE COAL TERMINAL POWER PLANT

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SLIDE 6

6

Key achievem ent in 20 13

PT Indo Tambangraya Megah Tbk. Received Social Business Innovation Awards with the predicate of “Special Achievement for Community Development Recovery Initiative’ from Warta Ekonomi Magazine PT Indo Tambangraya Megah Tbk. awarded Corporate Governance Award with “Best Overall” by the Indonesian Institute for Corporate Directorship (IICD) PT Indo Tambangraya Megah Tbk. received 7 categories of GKPM Award. GKPM alone stands for Com m unity Developm ent Works Exhibition from Coordinating Ministry of People’s Welfare in collaboration with CFCD PT Indo Tambangraya Megah Tbk received in the category of “excellence award” from International Convention on QC Circles 2013 by Association of Pioneer Quality Control Research-Taiwan PT Indo Tambangraya Megah Tbk received Indonesia Corporate Governance Awards in the category

  • f

“Trusted Company” from SWA Magazine and collaboration with Institute

  • f

Corporate Governance (IICG)

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SLIDE 7

7 BEST PRACTICE GROWTH COST MANAGEMENT

  • Comply with new Accounting

Standard (ISAK 29)

  • Strengthen CSR through

Community Consultative Committee (CCC) together with mining contractors

  • Become the Top 10 of ASEAN

CG Score Card

  • Strengthen safety and

environment standard at all mine sites

  • Further operational excellence

through TPM implementation

  • Enhance Risk Management

best practices

  • Increase Bharinto production

capacity up to 3.0 mtpa

  • Trubaindo infrastructure

development (hauling road improvement, bridge construction, etc.)

  • Exploration drilling at

Trubaindo and Bharinto area

  • Bontang and Bunyut port

capacity expansion

  • Commencement of in-house

mining contractor operation (PT. TRUST)

  • Start coal trading activity

through PT. ITM Indonesia

  • Continue to look for coal and

power opportunities

  • Continue on cost reduction

initiatives

  • Contractor management
  • Trial stage for coal and
  • verburden hauling using bi-

fuel (LNG) at Indominco mine

  • Study on different mining

techniques

  • Further study for alternative

mode of transportation (IPCC project, electrification, belt conveyer, etc.)

  • Maximize utilization of power

plant at Bontang port

  • Energy saving schemes

20 14 and beyond: further cost reduction

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SLIDE 8

20 13 vs 20 14 operation sum m ary

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

East Kalimantan

Balikpapan Palangkaraya Banjarmasin

Central Kalimantan South Kalimantan

Samarinda

Truba ind o Bha rinto

Jorong

Em ba lut

Ind om inco Td .Ma y a ng

FY13 OUTPUT: 29.4Mt FY14 TARGET: 29.5Mt

2013 2014e

15.1 15.2

2013 2014e

7.8 7.3

2013 2014e

1.6 3.0

2013 2014e

1.3 1.2

2013 2014e

1.1 1.0

2013 2014e

2.5 1.8

8

4 Q12 1Q13 2Q13 3Q13 4 Q13 1Q14 E

7.6

Indom inco Trubaindo Kitadin Jorong Bharinto

QUARTERLY OUTPUT 8 .0 7.1 7.2 7.5 INDICATIVE OUTPUT TARGETS*

Indom inco Trubaindo Kitadin Jorong Bharinto Indom inco

33.0 27.5 29.4 29.5 32.0

Units: Mt Units: Mt

20 12 20 13 20 14 e 20 15e 20 16 e

7.1

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SLIDE 9

9

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

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SLIDE 10

4Q13 production slightly lower than target due to weather

condition.

IPCC Project: project already commenced in Dec 2013. In

process of handover from project team to operation team.

  • Coal Transport: Project study and bi-fuel trial test already

conducted successfully. In process of finalizing implementation plan.

10 QUARTERLY UPDATES

Indom inco Mandiri

SCHEMATIC

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

20 14 ta rget: 15.2m t

E BLOCK W BLOCK

E BLOCK W BLOCK

2.5 2.4 2.5 2.7 3.0 3.4 2.0 1.1 1.1 1.3 1.0 0.4 4.5 3.5 3.6 4.0 4.0 3.8

Units: Mt Units: Bcm / t 4 Q12 1Q13 2Q13 3Q13 4 Q13 1Q14 e

13.9 9.0 19.1 9.3

QUARTERLY OUTPUT

16.9 7.2

Avg.SR:

10.2 12.4 10.3 19.1 9.3 12.3 16.8 7.2 9.6

4 Q12 1Q13 2Q13 3Q13 4 Q13 1Q14 e

17.1 7.7 8.5

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SLIDE 11

PIT BENCHES IN-PIT CONVEYORS BACKHOE EXCAVATOR TRUCK SPREADER IPCC WASTE DUMP NON-IPCC WASTE DUMP

C.120 M C.80 M

IN-PIT CRUSHER DEEPER TONNAGES IPCC WASTE

COMMENTS 11

In Pit Crushing Conveying (IPCC) system

  • IPCC trial stage

commenced in December 2013 at Indominco East Block

  • OB removal capacity: 14

MBcm per year

  • Using power from

Indominco coal-fired power plant

  • Estimated cost savings

around 10% of OB costs

  • Other benefits include

access to deeper coal reserves and being more environmentally friendly (less dust, noise, emission)

CONCEPT OF IN-PIT CRUSHING AND CONVEYING (IPCC)

Mine depth without IPCC Mine depth with IPCC

ILLUSTRATIVE ONLY

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SLIDE 12
  • Trubaindo:
  • 4Q13 production slightly lower than target due to weather

condition.

  • New crushing plant: Select EPC bidders and negotiate for

terms and conditions.

  • Bunyut port expansion: Engage with engineering design for

barge loading system upgrade.

  • Bharinto:
  • 4Q13 production slightly lower than target due weather

condition.

12 QUARTERLY UPDATES

Trubaindo and Bharinto

SCHEMATIC QUARTERLY OUTPUT

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

Operations Stockpile Hauling Barge Port

20 14 Ta rget: TCM : 7.3m t BEK : 3.0 m t

2.1 2.0 2.0 2.0 1.9 1.7 2.4 2.3 2.6 2.5 2.1

TRUBAINDO TRUBAINDO BHARINTO

Units: Mt Units: Bcm / t 12.7

BHARINTO

7.8

0.2

10.9 7.6

0.3

10.9 7.5

4 Q12 1Q13 2Q13 3Q13 4 Q13 1Q14 e

11.1 6.9 0.5

4 Q12 1Q13 2Q13 3Q13 4 Q13 1Q14 e

11.2 (0.4) 0.6

0.3

0.5 2.2 10.3 9.2

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SLIDE 13

13

  • Kitadin Embalut:

4Q13 production is according to target.

  • Kitadin Tandung Mayang:

4Q13 production is according to target. Start to transfer some fleets from own concession to contractors business. QUARTERLY UPDATES

Kitadin Em balut and Tandung Mayang

SCHEMATIC QUARTERLY OUTPUT

0.3 0.2 0.3 0.3 0.2 0.3 0.4 0.8 0.5 0.5 0.6 0.5

0.7 1.0 0.8 0.8 1.1 0.8

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

TDM : 1.8 m t

TDM EMB EMB TDM

Units: Mt Units: Bcm/t 6.0 15.1 11.5 15.1

20 14 Ta rget: EMB : 1.0 m t

10.9 15.1

4 Q12 1Q13 2Q13 3Q13 4 Q13 1Q14 e 4 Q12 1Q13 2Q13 3Q13 4 Q13 1Q14 e

10.6 15.1 11.5 15.1 11.5 17.9

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SLIDE 14

Coal terminal Jorong Pelaihari

Pacific Ocean

Haul road

10 25 15 20 5 km

20km

Operations Stockpile Hauling Barge Port

FY14 ta rget: 1.2m t

MAJOR QUARTERLY UPDATES 14

Jorong

  • 4Q13 production as according to target.

QUARTERLY OUTPUT

8.6 8.6 8.6 8.6 8.6 6.0 Units: Mt Units: Bcm / t

4 Q12 1Q13 2Q13 3Q13 4 Q13 1Q14 e

0.3 0.3 0.3 0.3 0.4 0.3

4 Q12 1Q13 2Q13 3Q13 4 Q13 1Q14 e

SCHEMATIC

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SLIDE 15

15

Appendices Financial review Com m ercial review Operational review Introduction 3 4 2 1

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SLIDE 16

Europe

  • Continue power plant

retirement, strong clean- dark spreads keep coal burn high China

  • Slower demand growth,

political / environmental issues, low quality coal import ban (?), high competition from domestic suppliers. India

  • High electricity demand

growth, insufficient domestic coal supply, focus LCV North Asia

  • Continue nuclear stoppage

in Japan, coal still competitive in all north Asian countries Others

  • Other Asian and South

Americas drive demand growth USA

  • Continue retracting to

domestic and HS bigger share of export Colom bia

  • Drummond export ban in

Q1, political, social/environmental issues continue South Africa

  • Higher rail efficiency.

Continuing political, social

  • issues. Expand or not

debatable Indonesia* • Debating policies: export level, price levels, tax levels, DMO, losing market share for LCV, offshore loading, trading oversight

  • Considerable expansion

(More LCV / Less HCV) Australia

  • Encouraged by exchange
  • rate. Discouraged by prices

and challenges for H. Ash

  • Considerable expansion

16

New Em erging Therm al Trends for 20 14

SUPPLY (INCREASE FOCUS IN 1H) DEMAND (INCREASE FOCUS IN 2H)

*Before governm ent cap on production

  • 3 m t

+5 m t +2 m t +15 m t +10 m t SUPPLY DEMAND +1-5 m t +1-5 m t +1-5 m t +12 m t +10 m t

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SLIDE 17

17

China and India therm al coal m arket review

CHINA ANNUALIZED ACTUAL IMPORT 1Q12-4Q13&1Q14e CHINA THERMAL COAL IMPORTS/ EXPORTS INDIA THERMAL COAL IMPORTS INDIA ANNUALIZED ACTUAL IMPORT 1Q12-4Q13&1Q14e CHINA DOMESTIC COAL PRICES 93 103 147 155 14 7 5 4 4 2010 2011 2012 2013 2014F Import Export

Sources: China Coal Report Jan 2014, Banpu MS&L Estim ates

Unit: Mt Net import 142 Mt

152

Net import 148 Mt Net import 151 Mt

155 2010 2011 2012 2013 68 87 107 148 2010 2011 2012 2013 2014F 136 148

Sources: Salva Report India, Banpu MS&L Estim ates

2010 2011 2012 2013 116 151 146 175 148 140 159 162 144 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Import Export 94 97 104 133 131 159 135 120 120 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Import Export

Unit: Mt Unit: Mt Unit: Mt 400 500 600 700 800 900

Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14

> 5,800 kcal/kg > 5,500 kcal/kg > 5,000 kcal/kg

Unit: RMB/t

545 510 450

Source: w w w .sxcoal.com /cn 4 February 2014

COMMENTS

  • Flat
  • Weather?

COMMENTS

  • Electricity demand continues to grow
  • Coal remains the base-load for power generation
  • Insufficient domestic coal supply
  • Depreciation of Rupee impact coal import.
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SLIDE 18

18

ASP vs therm al coal benchm ark prices

  • Declines in ASP are combination of

continued market easing and product mixes.

  • 2014 tonnages remain high for

shipment, protecting total revenues.

ITM ASP VS BENCHMARK PRICES

* The Newcastle Export Index (previously known as the Barlow Jonker Index – BJI)

ITM ASP 4 Q13 $71.0 (-2% QoQ) NEX* February 13, 20 14 $76.9 Unit: $/t

COMMENTS

20 40 60 80 100 120 140 160 180 200 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14

Monthly NEX Quarterly ITM ASP

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SLIDE 19

COAL SALES 20 13 19

ITM coal sales 20 13

COAL SALES BREAKDOWN BY DESTINATION

JAPAN 4.6 Mt PHILIPPINES 2.2 Mt THAILAND 1.8 Mt INDIA 2.5 Mt HK 0.3 Mt S KOREA 2.2 Mt CHINA 8.1 Mt TAIWAN 1.7 Mt ITALY 0.8 Mt 1.5 INDONESIA 3.2 Mt MALAYSIA 0.8 Mt

28% 16% 11% 9% 8% 7% 6% 6% 3%

3% 2%

Total Coal Sales: 29.1 Mt

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

2%

USA

USA 0.6 Mt OTHERS

0.3 Mt Others

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SLIDE 20

42% 23% 12% 23%

20

Indicative coal sales 20 14

COAL SALES CONTRACT AND PRICING STATUS

Contract Status Price Status Fixed Indexed Unsold

TARGET SALES 20 14: 29.7 Mt

77% 23%

Contracted Uncontracted Unpriced

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SLIDE 21

21

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

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SLIDE 22

22

Sales revenue

427 341 327 1,591 1,362 242 176 203 877 759 24 64 19 26 164 72 58 77 352 274 24 17 19 88 68

4Q12 3Q13 4Q13 2012 2013

USD m illion

  • 11% (YoY)

Indominco

2,179 2,4 39 54 6 54 3 658

  • 17% (YoY)

+1% (QoQ) Note : Total consolidated revenue after elim ination

Indominco

  • 4% (QoQ)

Trubaindo +15% (QoQ) Bharinto

  • 70% (QoQ)

Kitadin +32% (QoQ) Jorong +13% (QoQ) Indominco

  • 14% (YoY)

Trubaindo

  • 13% (YoY)

Bharinto +531% (YoY) Kitadin

  • 22% (YoY)

Jorong

  • 22% (YoY)

Trubaindo Bharinto Kitadin Jorong ASP FY12 : $90.0 / ton FY13 : $74.9 / ton 4Q12 : $80.6 / ton 3Q13 : $72.5 / ton 4Q13 : $71.0 / ton

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SLIDE 23

23

Average gross m argin

Revenue GPM* (%) Units: US$M Indom inco Trubaindo Kitadin Jorong

39% 28%

Bharinto

3Q13

24 ITM Consolidated

4Q13

546

23% 4Q12 4Q12

658

24%

427

19%

242

19% 4Q12

72

31% 4Q12

24

19%

4Q12

327

21%

203

15%

77

26%

19 19

24% 4Q13 4Q13 4Q13 4Q13 4Q13 * COGS included royalty

341

22%

176

19% 3Q13

58

3Q13 24%

17 64

27% 3Q13 3Q13 3Q13

543

26%

14%

4Q12

17%

23%

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SLIDE 24

24

EBITDA

USD m illion

Note : Total consolidated EBITDA after elim ination

USD m illion

4Q12 3Q13 4Q13 2012 2013

621 40 1

314 173 4 139 10 228 73 31 64

121 114

72 23

3

28 1

  • 35% (YoY)
  • 11% (QoQ)
  • 16% (YoY)

Indominco Trubaindo Bharinto Kitadin Jorong

Indominco

  • 27% (YoY)

Trubaindo

  • 58% (YoY)

Bharinto +632% (YoY) Kitadin

  • 54% (YoY)

Jorong

  • 68% (YoY)

Indominco

  • 4% (QoQ)

Trubaindo

  • 25% (QoQ)

Bharinto

  • 97% (QoQ)

Kitadin +60% (QoQ) Jorong

  • 43% (QoQ)

3 68 21

12

13 1

10 2

65 16

0.3

20 1

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SLIDE 25

25

Net Incom e

USD m illion

Note : Total consolidated Net Incom e after elim ination

USD m illion

4Q12 3Q13 4Q13 2012 2013

432 230

231 112 1 82 3 144 39 16 37 (3)

65 61 46

34 11 2 7 2 46 9 7 4 (2) (1) 30 7 13 (4)

  • 47% (YoY)
  • 25% (QoQ)
  • 29% (YoY)

Indominco Trubaindo Bharinto Kitadin Jorong

Indominco

  • 38% (YoY)

Trubaindo

  • 65% (YoY)

Bharinto +1249% (YoY) Kitadin

  • 55% (YoY)

Jorong

  • 200% (YoY)

Indominco

  • 34% (QoQ)

Trubaindo

  • 22% (QoQ)

Bharinto

  • 148% (QoQ)

Kitadin +262% (QoQ) Jorong

  • 86% (QoQ)
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SLIDE 26

26

Cash cost

4 Q12 1Q13 2Q13 3Q13 4 Q13

Units: US$/ t

* Cash production cost + royalty + SG&A

4 Q12 1Q13 2Q13 3Q13 4 Q13 Units: US$/ Ltr 4Q12 1Q13 2Q13 3Q13 4Q13 Units: Bcm / t 4 Q12 1Q13 2Q13 3Q13 4 Q13 Units: US$/ t

WEIGHTED AVERAGE STRIP RATIO CASH PRODUCTION COST TOTAL CASH COST * FUEL PRICE

10 .8 1.0 3 47.7 65.0 11.7 1.0 4 46.3 62.7

  • Avg. FY12: 12.2
  • Avg. FY13: 11.1
  • Avg. FY12: $50.1/ t
  • Avg. FY13: $44.6/ t
  • Avg. FY12: $1.05/ ltr
  • Avg. FY13: $1.02/ ltr

11.6 46.9 0 .97 63.1 10 .7 42.2

  • Avg. FY12: $68.0/ t
  • Avg. FY13: $60.3/ t

57.1 1.0 2 10 .4 1.0 6 42.8 57.8

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SLIDE 27

27 CASH POSITION Net Gearing (%) Net D/ E (tim es)

(0.47) (4 4%) (0.57) (57%) (0.41) (41%)

20 0 9 20 11 20 10 20 12

(0.46) (4 6%)

Balance sheet

KEY RATIOS DEBT POSITION

Units: US$M

2009

429

2011

612 295

2010 2012

461 Units: US$M 55

2009 2011 2010 2012 2013 2013

289

20 13

(0.30) (30 %)

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SLIDE 28

28

20 14 Capital Expenditure plan

Note: Total capex plan including Jakarta office and PT. TRUST (Mining Contractor Business)

Units: USD m illion

Indom inco Trubaindo Bharinto Kitadin Jorong ITM Consolidated*

8 6.0 4 6.4 21.8

4.2

0 .1

IPCC extension Conveyer belt replacem ent Trubaindo infrastructure Crushing plant

11.7 4 4 .3

20 13 ITM Consolidated

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SLIDE 29

29 29

  • ISAK 29 – Stripping Costs

in the Production Phase of a Surface Mining

  • ISAK 29 equivalent to

IFRIC 20 under IFRS

  • Stripping costs, which

provides an improved access benefit to ore (coal) is recognized as an asset

  • Effective date: January 1,

2014

  • Compulsory for all mining

companies with surface mines

  • Change in accounting

policy (retroactive and require restatement)

  • First result will be shown

in 1Q14 statements

COMMENTS

Note: - Charts not draw n to scale.

  • ISAK stands for Interpretasi Standar Akuntansi Keuangan (Interpretation of Financial Accounting Standard)
  • IFRIC : International Financial Reporting Interpretation Com m ittee
  • IFRS : International Financial Reporting Standard
  • 1. Cash basis
  • Capitalized O/B if there is future benefit

(e.g. access to coal)

  • O/B above LOM avg. is capitalized
  • Capitalized O/B is amortized according

to production and remaining reserves by pit

  • Jorong
  • Td.Mayang
  • Indominco
  • Trubaindo
  • Embalut
  • Bharinto

*New practice to be applied for all ITM mines 8.0 8.4 8.2 8.7 4.2

2.0 1.0 2.5 1.0 3.5

  • 2. Life of m ine
  • 3. Betterm ents (Levelized)

ROM

  • 4. IFRIC 20/ ISAK29

S/R

ISAK 29 CURRENT PRACTICES

Based on LOM S/ R Based on S/ R attributable to coal inventory Avg. 8.0 7.0 11.8 3.5 1 2 8.0 9.0 1 2.5 3.5 ROM S/R ROM 8.9 7.5 7.9 4.0 11.6 S/R ROM Am ort. (year 1) Am ort. (year 2) Based on LOM S/ R, production and reserves S/R ILLUSTRATIVE ONLY

Im plem entation of ISAK29

Avg. 8.0 Avg. 8.0 S/R S/R Avg. 8.0 S/R 8.0 8.0 8.0 8.0 8.0

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SLIDE 30

30

Q&A Session

slide-31
SLIDE 31

31

Ap p end ices

slide-32
SLIDE 32

ITM structure

32

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 Tam bangraya Megah Tbk.

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

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 18 th Dec 20 0 7 Output FY13 : 15.1 Mt Output FY13 : 7.8 Mt Output FY13 : 3.6 Mt Output FY13 : 1.3 Mt

Bharinto

PT Bharinto Ekatama (CCOW Gen III) 99.00%

East / Central Kalimantan

Output FY13 : 1.6 Mt

East Kalimantan

ITMI

PT ITM Indonesia Coal Trading 99.99%

Jakarta Office

TRUST

PT Tambang Raya Usaha Tama Mining Services 99.99%

Jakarta Office

Reserves 361* Mt Resources 1,595* Mt

6,500-7,300 kcal/kg 6,000-6,300 kcal/kg 5,800 kcal/kg 6,700 kcal/kg 5,300 kcal/kg 6,400-6,800 kcal/kg

144 Mt 679 Mt

Resources

Reserves

86 Mt 318 Mt

Resources

Reserves

12 Mt 149 Mt

Resources

Reserves

111 Mt 298 Mt

Resources

Reserves

3 Mt 142 Mt

Resources

Reserves

5 Mt 10 Mt

Resources

Reserves

Note: * Updated Coal Resources and Reserves as of 31 Dec 2013

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33

Incom e statem ent

Un it: US$ th o u san d FY13 FY12 Yo Y% Ne t Sale s 2 ,17 8 ,7 6 3 2 ,4 3 8 ,9 4 1

  • 11%

Gro ss Pro fit 5 0 9 ,19 4 7 4 1,16 7

  • 3 1%

GPM 2 3 % 3 0 % SG&A (17 1,7 19) (182,7 29) EBI T 3 3 7 ,4 7 5 5 5 8 ,4 3 8

  • 4 0 %

EBI T Margin 15 % 2 3 % EBI T DA 4 0 0 ,7 4 3 6 2 0 ,7 7 3

  • 3 5 %

EBI T DA Margin 18 % 2 5 % Net Interest Income / (Expenses) 7 ,946 13,269 Derivative Gain / (Loss) 5,259 48,535 Others (29,7 32) (29,133) Pro fit Be fo re T ax 3 2 0 ,9 4 8 5 9 1,10 9

  • 4 6 %

Income Tax (90,464) (159,066) Ne t I n c o m e 2 3 0 ,4 8 4 4 3 2 ,0 4 3

  • 4 7 %

Ne t I n c o m e Margin 11% 18 %

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SLIDE 34

34

Incom e statem ent

Un it: US$ th o u san d 4 Q13 3 Q13 4 Q12 Qo Q% Yo Y% Ne t Sale s 5 4 6 ,19 4 5 4 2 ,9 8 3 6 5 8 ,3 16

  • 18 %
  • 17 %

Gro ss Pro fit 12 6 ,3 7 0 14 2 ,7 5 8 15 8 ,6 3 8

  • 10 %
  • 2 0 %

GPM 2 3 % 2 6 % 2 4 % SG&A (43,17 0) (43,382) (53,980) EBIT 8 3 ,2 0 0 9 9 ,3 7 6 10 4 ,6 5 8

  • 5 %
  • 2 1%

EBIT Margin 15 % 18 % 16 % EBIT DA 10 1,5 6 8 113 ,8 0 4 12 0 ,6 0 7

  • 6 %
  • 16 %

EBIT DA Margin 19 % 2 1% 18 % Net Interest Income / (Expenses) 1,7 27 1,634 4,107 Derivative Gain / (Loss) (594) 967 (9,032) Others (16,941) (15,7 67 ) (5,410) Pro fit Be fo re T ax 6 7 ,3 9 2 8 6 ,2 10 9 4 ,3 2 3

  • 9 %
  • 2 9 %

Income Tax (21,241) (25,307 ) (28,912) Ne t In c o m e 4 6 ,15 1 6 0 ,9 0 3 6 5 ,4 11

  • 7 %
  • 2 9 %

Ne t In c o m e Margin 8 % 11% 10 %