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
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PT TIMAH Tbk | www.timah.com 3
To be a leading enviromental friendly mining company in the world 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 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
PT TIMAH Tbk | www.timah.com 4
M. . Riz iza Pahle levi Tabrani
Presid ident Di Director Experienced in Corporate Finance sector over 20 years, before join in PT TIMAH Tbk he was in PT Perusahaan Gas Negara Tbk as a Chief Financial Officer and also become a president commissioner in subsidiaries of PT Perusahaan Gas Negara Tbk.
Emil il Ermin indra
Chi Chief f Fi Financia ial l Of Offic ficer Experienced in Banking sector over 23 years, before join in PT TIMAH Tbk he was in PT Bank Negara Indonesia (Persero) Tbk as an EVP Strategic Planning Division Head, EVP Management Office Head, and VP Regional Chief Executive Officer.
Trenggono Suti tioso
Di Director
Busin iness De Development Experienced in Mining over 17 years, before join in PT TIMAH Tbk he was in PT Rio Tinto Indonesia as Exploration Geologist, PT ANTAM Tbk with several positions such as VP Exploration, Head of Project Development, SVP Corporate Strategic Development, Corporate Secretary.
Muhammad Rizk izki
Di Director
Human Res esources Experienced in PT TIMAH Tbk over 20 years with several positions such as Head of Offshore Operation, Head of Logistic, Head of Metallurgy.
Alw lwin Alb lbar
Di Director
Operatio ion Experienced in PT TIMAH Tbk over 17 years with several positions such as Head of Business Development, Head of Regional Engineering and Production
PT TIMAH Tbk | www.timah.com 5
99,99% 100% 99,99% 99,80% 50% 50% 50% 50% 99,99% 99,99% 99,99% 99,99% 99,99% 99,99% 99,99%
2 3 4 1 Pilar 1 : Tin mining 1 Pilar 2 : Downstream 2 Pilar 3 : Non tin mining 3 Pilar 4 : Based on competency 4
65% 65% 35% 35%
PT TIMAH Tbk | www.timah.com 6
Net Income XXXX
PT TIMAH Tbk | www.timah.com 7
Net Income XXXX
1,393 1,528 1,077 1,191 1,524 748 1,046 1,300 2010 2011 2012 2013 2014 2015 2016 2017
*)
EBITDA In IDR billion
947 896 431 581 673 102 252 500 2010 2011 2012 2013 2014 2015 2016 2017
NET INCOME In IDR billion
+ + 74 % + + 390 %
*)400-
*) Unaudited/estimated numbers
PT TIMAH Tbk | www.timah.com 8
As of 9M 2017 PT TIMAH recorded net profit for the year Rp.300 billion driven by improved
times compared to last period in 2016
STRONGER FACING CHALLENGES
Revenue Rp6,621 billion Gross margin 17% Net Income Rp300 billion EBITDA Rp969 billion
PT.TIMAH Tbk | www.timah.com 9
Net Income XXXX Net Income XXXX
The increase of TINS revenue in the previous year was driven by the increase in sales volume by 16% supported by the increase
production and royalty payments along with the increase of our sales revenue
500 1000 1500 2000 Net income 9M 2016 Revenue Production cost Opex
Others Tax Net income 9M 2017
51 51 +2 +2,029 +1 +1,483 +1 +139 +4 +4 +6 +66 +8 +86 301 301
In n bil billion IDR DR Var ariance YoY
PT TIMAH Tbk | www.timah.com 10
Net Income XXXX Net Income XXXX Net Income XXXX
7,822 6,239 7,518 6,874 6,968 4,592 6,621
4,000 6,000 8,000 10,000 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017
Revenue In IDR billion
1,077 1,191 1,524 784 1,047 638 969
1,000 1,500 2,000
FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017
EBITDA In IDR billion
432 581 673 102 252 51 301
200 400 600 800 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017
Net income In IDR billion
86 102 90 14 34 7 40
20 40 60 80 100 120 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017
EPS Rupiah/shares
44% 490% 52% 471%
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Net Income XXXX Net Income XXXX
2,047 2,253 1,796 2,319
1,000 1,500 2,000 2,500 Q1 2017 Q2 2017 Q3 2016 Q3 2017
Revenue In IDR billion
255 332 297 381 12% 15% 17% 16% 0% 5% 10% 15% 20%
100 200 300 400 500 Q1 2017 Q2 2017 Q3 2016 Q3 2017
EBITDA (in IDR billion) & margin (%)
298 333 318 522 15% 15% 18% 22%
0% 5% 10% 15% 20% 25% 100 200 300 400 500 600 Q1 2017 Q2 2017 Q3 2016 Q3 2017
Gross profit (in IDR billion) & margin (%)
66 85 84 150 3.20% 3.80% 4.70% 6.50%
0.00% 2.00% 4.00% 6.00% 8.00% 50 100 150 200 Q1 2017 Q2 2017 Q3 2016 Q3 2017
Net income In IDR billion
29%
64%
28% 38%
PT.TIMAH Tbk | www.timah.com 12
Net Income XXXX Net Income XXXX
1.8 3.1 2.8 0.6 1.6 0.7 1.7 19.6 19.5 18.8 15.5 16.7 16.5 18.8 5 10 15 20 25 FY2012 FY2013 FY2014 FY2015 FY2016 9M 2016 9M 2017 Cash margin Delivered 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.
In thousand USD/tonnes
*) Delivered cost: production cost + marketing cost + administrative cost
The he hi highest average tin pr price The he low
average tin pr price
PT.TIMAH Tbk | www.timah.com 13
Net Income XXXX Net Income XXXX
Exploration & Production: Major expansion for open the new area onshore mining in Bangka and Belitung, and regular exploration activities
38 16 23 185 102 174 46 37 108 137 82 91 129 252 143
200 300 400 500 600 FY 2016 9M 2016 9M 2017 Building & office Machinery Exploration & production Equipment CIP
539 489 535
Construction in progress: Construction in progress related to development of production capacity, recondition and replacement machinery including in fuming development
Re Refined tin pr production incr ncrease sed 43%
Cap Capex In In bil billio ion IDR IDR
PT.TIMAH Tbk | www.timah.com 14
Net Income XXXX Net Income XXXX
Issu ssued Obligation and nd Su Sukuk with th low
terest rate te
264 1355 2334 2115 1733 2156 1500 FY2012 FY2013 FY2014 FY2015 FY2016 9M2017 Short term loan Long term loan
Deb Debt Prof
(In n bill billion IDR IDR) Cos Cost t of
fund anal analysis is 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
6.60% 8.18% 9.49% 9.79% 9.41% 8.47% 2.38% 2.70% 2.35% 2.20% 2.00% 2.34% 0.00 00% 2.00 00% 4.00 00% 6.00 00% 8.00 00% 10. 0.00% 0% 12. 2.00% 0% 201 012 201 013 201 014 201 015 201 016 201 017 Average IDR Rate Average USD Rate
PT.TIMAH Tbk | www.timah.com 15
STRONGER FACING CHALLENGES
Striving to become a more effective company, TINS has taken advantage from the tin commodity price hike by effectively increasing volume of tin ore production
PT.TIMAH Tbk | www.timah.com 16
Net Income XXXX
246,886 275,255 490,660 472,224 FY2016 9M2017 Onshore Offshore 71,103 67,415 264,806 251,705 FY2016 9M2017 Onshore Offshore 31 319,1 9,120 73 737,5 7,546 74 747,4 7,479 33 335,9 5,909
Provin ince Tot
al IUP Tot
al ar area (Ha) Ha) Not Note Ba Bang ngka, Ba Babe bel 20 81.824 Tin ingot Bang Bangka Bar Barat, Babe Babel 45 93.954 Tin ingot Ba Bang ngka Sela Selatan, Ba Babe bel 18 38.265 Tin ingot Ba Bang ngka Teng ngah, Ba Babe bel 8 26.884 Tin ingot Belit Belitun ung, Ba Babe bel 9 13.262 Tin ingot Belit Belitun ung Tim Timur ur, Ba Babe bel 11 61.278 Tin ingot Bangka Beli litung, Li Lintas as Kabu abupa paten 10 112.827 Tin ingot & iron ore Karim arimun, Kepr pri 4 18.875 Tin ingot Riau iau 2 6.540 Tin ingot Riau dan Kepri ri, Li Lintas as Kabu abupa paten 1 19.594 Tin ingot TOTAL 12 128 47 473. 3.303
Res eserv rves Res esources
PT.TIMAH Tbk | www.timah.com 17
Net Income XXXX Net Income XXXX Net Income XXXX
29,776 26,204 32,319 26,361 24,121 15,973 23,854
20,000 30,000 40,000 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017
Tin ore production In metric tonnes
34,934 23,237 26,907 30,087 26,677 18,600 21,588
20,000 30,000 40,000 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017
Refined tin sales In metric tonnes
29,512 23,718 27,550 27,431 23,756 15,995 22,837
20,000 30,000 40,000 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017
Refined tin production In metric tonnes
26,714 21,505 21,686 16,186 18,408 17,296 20,557
10,000 15,000 20,000 25,000 30,000 FY2012 FY2013 FY2014 FY2015 FY2016 9M2016 9M2017
Average selling price In USD
49% 43% 16% 19%
PT.TIMAH Tbk | www.timah.com 18
Net Income XXXX Net Income XXXX
7,675 8,403 6,865 7,776
4,000 6,000 8,000 10,000 Q1 2017 Q2 2017 Q3 2016 Q3 2017
Tin ore production In metric tonnes
6,963 7,942 6,475 7,932
4,000 6,000 8,000 10,000 Q1 2017 Q2 2017 Q3 2016 Q4 2017
Refined tin production In metric tonnes
6,963 7,441 6,918 7,184
6,600 6,800 7,000 7,200 7,400 7,600 Q1 2017 Q2 2017 Q3 2016 Q3 2017
Refined tin sales In metric tonnes
20,428 20,432 17,296 20,557
15,000 16,000 17,000 18,000 19,000 20,000 21,000 Q1 2017 Q2 2017 Q3 2016 Q4 2017
Average selling price $/tonnes
13% 4% 23% 19%
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REFINED TIN PRODUCTION
30,277 MT
REFINED TIN SALES
29,000 MT
REVENUE
Rp.9,000 billion
NET INCOME
Rp.400 – Rp.500 billion
PT.TIMAH Tbk | www.timah.com
PT.TIMAH Tbk | www.timah.com 20
TIN RESERVES OPERATIONAL FINANCE HUMAN RESOURCES BUSINESS DEVELOPMENT
venture agreement with Topwide Ventures in Nigeria
resources and reserves in onshore and offshore
production capacity
units of inland mining
primary reserves in Bangka Belitung
Sukuk amounting to Rp.1.5 billion
certification, managerial and leadership reached 93% of the target as
development
partnership with Yunan Tin Group
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PT.TIMAH Tbk | www.timah.com
PT.TIMAH Tbk | www.timah.com 22
PT.TIMAH Tbk | www.timah.com 23
Net Income XXXX
PT.TIMAH Tbk | www.timah.com 24
Kun undur Capacity 12,000mt/years Me Mentok Capacity 42,000mt/years
per years to produce refined tin.
Our present capacity is approximately 54,000 ton per annum, of which 12,000 ton located in Kundur and 42,000 ton located in Muntok
With the newly adopted technology, our capacity shall be significantly increased with total number of 76,000 per annum and the technology's are converted our tin ore low grade to high grade as a requirements minimum.
PT.TIMAH Tbk | www.timah.com 25
9M2017 % Revenue Tin metal and tin solder 5,915,532 89% Tin chemical 529,827 8% Hospital services 167,251 3% Shipping dockyard services 6,480 0% Others services 2,025 0% Total revenue 6,621,115 100% 100% Cost of revenue Raw material of tin ore 3,515,570 64% Salaries and allowance 479,573 9% Depreciation and amortization 360,338 7% Fuel 356,067 7% Roylaty 183,621 3% Sparepart used 147,735 3% Third parties services 131,075 2% Raw material of tin chemical 72,396 1% Transportation 20,124 0% Taxes 57,399 1% Direct materials used 12,499 0% Others 195,390 4% Tota cost of production 5,531,787 101% 101% Inventory 62,487
Total cost of revenue 5,469,300 100% 100%
Source: audited financial statements Sept 2017
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Asia 60% Eropa 22% America 7% Domestic 11% Asia Eropa America Domestic
Sale Sales des desti tination as as of
September 2017 2017