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Company Update
1st Quarter of 2020
TABLEOFCONTENTS
01 – INDONESIA TIN INDUSTRY & MARKET OVERVIEW
02 – PT TIMAH BUSINESS PROCESS
03 –ENVIROMENTAL RESPONSIBILITY PROGRAM
04 – CORPORATE SOCIAL RESPONSIBILITY PROGRAM
Executive Summary
Better Mining Governance Regulation Introduced Last Year To Affect Indonesia’s Refined Tin Output
INDUSTRY
New Traceability and Transparency Standards Effectively Disrupted Indonesia’s Refined Tin Export Volume
MARKET & REGULATIONS
More focused and effective on Environmental Responsibility Programs and Corporate Social Responsibility Programs
COMPANY RESPONSIBILITY
3
Ranked second largest global tin producer, Indonesia produced about 78k metric tons in 2019, forming about 22% of global tin production
Source : CRU Tin Monitor
Upward trend of Indonesia’s tin ingot production and export in the last 5 years. 2017‐2018 Indonesia produced refined tin in relatively stable quantities. Slightly decreased on 2019 due to global market condition
Government improved regulation at middle 2018 that provides better implementation of good mining practice
About 97% tin metal export from Indonesia at 2019 came from PT TIMAH
Chart 1: Indonesia’s Refined Tin Production (in 000 metric tons)
1 Indonesia’s Tin Mining Industry Overview
54,80
69,80 67,40 66,90
80,00 81,40 78,19
2013 2014 2015 2016 2017 2018 2019
4
1
Tin export from Indonesiaat 2017 & 2018significantly increasedfrom 2016. The decreaseof tin export volume at2019 compared to 2018was influenced by severalfactor especially decliningglobal tin price due to US‐China trade war.Fundamental difference at2019 from previous years,that almost 100% of tinexport volume fromIndonesia came from PTTIMAH
Market Analysis: Indonesia’s Tin Export Performance (2012‐2019)
Source: The Ministry of Trade of the Republic of Indonesia
101,24
88,44
70,24 69,81 61,88
78,12 76,45 67,99
2012 2013 2014 2015 2016 2017 2018 2019 ‐
20
40
60
80
100
120
VOLU
ME (M
T)
Tin Export From Indonesia
Smelter Swasta PT TIMAH Tbk Indonesia
5
Riau and Riau Island Provinces
Riau and Riau Island Provinces
Summary
Bangka Belitung Island ProvinceBangka Belitung Island Province
• 7 Mining Licenses• Offshore Area:
45,009 ha• Smelters:
12,000 Mton p.a
• Total Mining Licenses: 129• Total Area: 473,401 ha• Total Smelters: 54,000 Mton p.a
• 122 Mining Licenses• Onshore Area:
288,729 ha• Offshore Area:
139,663 ha• Smelters:
42,000 Mton p.a
About PT TIMAH
6
2 PT TIMAH Business Process
Onshore Exploration
Offshore Exploratiion Onshore Mining Offshore Mining
Output >70% Sngrade
Export Domestic
Tin > 99.9% SnMaximum lead (Pb) 300 ppm
Discovering new tin resources and reserves. Activity in Indonesia and Overseas Tin Ore Mining
Upgrading tin ore grade to reach minimum grade for smelting process
Ore ProcessingMiningExploration
Smelting and RefiningMarketing & Selling
Smelting Refining
Smelting and refining process to produce
tin metal
7
INDONESIA TIN OUTLOOK 2019
PT TIMAH Resources & Reserves
15%
85%
Resources
17%
83%
Reserve
Primary
Alluvial
Resources and Reserves 2019 based on depositional type
1.043,6 1.035,8
2018 2019
Tin Ore Resources(Kton Sn)
400,1
327,5
2018 2019
Tin Ore ReservesKton Sn)
50,3%49,7%
Resources
22,4%
77,6%
Reserves
Onshore
Offshore
Resources and Reserves 2019 based on locationTin ore resources and resereves of PT Timah Tbk 2018 &2019
2
8
Performance Highlight of Tin Ore & Refined Tin Production
21%
79%
Tin Ore Production 2019(based on location)
Offshore
Onshore
99%
1%
Tin Ore Production 2019(based on type)
Aluvial
Primary
0
10
20
30
40
50
60
70
80
90
2015 2016 2017 2018 2019
Volume (kT)
Tin Ore & Metal Production
Tin Ore Tin Metal
2
9
Performance Highlight of Tin Ore & Refined Tin (2015-3M20)
10
26.361 24.121
31.178
44.514
82.460
15.217
-
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
90.000
2015 2016 2017 2018 2019 1Q20
Production of Tin Ore(in full amount of ton)
27.431 23.756
30.249 33.444
76.389
14.133
-
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
90.000
2015 2016 2017 2018 2019 1Q20
Production of Refined Tin(in full amount of metric ton)
Performance Highlight of Tin Ore & Refined Tin (Quarterly Basis)
11
16.302
14.133
1Q19 1Q20
21.610
15.217
1Q19 1Q20
Production of Refined Tin(in full amount of metric ton)
Production of Tin Ore(in full amount of ton)
-30%-13%
Performance Highlight of Sales and Average Selling Price (2015-3M20)
12
30.087 26.677
29.914 33.818
67.704
17.553
-
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
2015 2016 2017 2018 2019 1Q20
Sales of Refined Tin(in full amount metric ton)
16.186
18.408
20.429 20.205 18.569
16.703
5.000
10.000
15.000
20.000
25.000
30.000
2015 2016 2017 2018 2019 1Q20
Average Selling Price(dollar per metric ton)
Performance Highlight of Refined Tin Sales (Quarterly Basis)
13
21.505
16.703
1Q19 1Q20
12.553
17.553
1Q19 1Q20
Average Selling Price(US dollar)
Volume of Refined Tin Sales(full amount of metric ton)
+40%-22%
Development #1: Open Pit Primary Tin Mining, Batu Besi Area
TIMAH’s project for open pit mining
Open pit mining for primary tin deposit
Effective & fully integrated operation are expected to have been operating in 2020
Empowering the society & local business partners
2
14
Development #2: Ausmelt
TIMAH continuously improves its miningmethod and technology for reprocessing oflow grade tin ore (residual materials)
Committed to mineral conservation programs according to government regulations
Empowering the society
Low cost tin ore production
Optimizing benefits from associated mineral
2
15
Financial Highlight of 1st Quarter 2020
16
301
(413)
1Q19 1Q20
396
(460)
1Q19 1Q20
790
(174)1Q19 1Q20
4.122
4.384
1Q19 1Q20
Revenue (in billion rupiah)
Profit before Income Tax (in billion rupiah)
Gross Profit (in billion rupiah)
Profit for the Period (in billion rupiah)
+6%
-216%
-122%
-237%
COMPANY UPDATE 17
Financial Highlight for the 1st Quarter 2020
Assets(IDR Billion)
Current Assets(IDR Billion)
Current Liabilities(IDR Billion)
18,769 10,433 10,797
Short Term Bank Loans(IDR Billion)
Bonds & SukukIjarah Payable
(IDR Billion)
7,083 2,093
Total Equities(IDR Billion)
4,822
Enviromental Responsibility : Land Reclamation Program 20193
BANGKA
58,5 haPLAN60,0 haREAL
WEST BANGKA
39,0 haPLAN41,8 haREAL
CENTRAL BANGKA
31,0 haPLAN31,0 haREAL
SOUTH BANGKA
23,0 haPLAN23,0 haREAL
BELITUNG
19,0 haPLAN19,0 haREAL
EAST BELITUNG
59,0 haPLAN59,0 haREAL
CROSS DISTRICT CONCESSION
70,0 haPLAN70,0 haREAL
PLAN
REALIZATION
299,5 ha
303,8 ha
Update 2019
101%
18
Enviromental Responsibility : Sea Rehabilitation Program 2019
: 1,9 ha (75 unit): 1,9 ha (75 unit)
PLANREAL
FISH SHELTER
SOUTH BANGKA
: 3,8 ha (215 unit): 3,4 ha (200 unit)
PLANREAL
: 3,4 ha (95 unit): 3,4 ha (95 unit)
PLANREAL
FISH SHELTER
CORAL TRANSPLANTATION
BANGKA
: 0,3 ha (15 unit): -
PLANREAL
: 0,3 ha (10 unit): -
PLANREAL
FISH SHELTER
CORAL TRANSPLANTATION
CENTRAL BANGKA
FISH SHELTER REALIZATION
FISH SHELTER PLAN
14,3 ha (725 unit)
13,2 ha (675 unit)CORAL TRANSPLANTATION REAL
CORAL TRANSPLANTATION PLAN
10,5 ha (305 unit)
10,2 ha (295 unit)Realization:
97% Realization : 92%
: 3,8 ha (200 unit): 3,4 ha (180 unit)
PLANREAL
: 2,4 ha (60 unit): 2,4 ha (60 unit)
PLANREAL
FISH SHELTER
CORAL TRANSPLANTATION
WEST BANGKA
: 4,5 ha (220 unit): 4,5 ha (220 unit)
PLANREAL
: 4,5 ha (140 unit): 4,5 ha (140 unit)
PLANREAL
FISH SHELTER
CORAL TRANSPLANTATION
CROSS DISTRICT AREA
3
19
Land Reclamation
Air Jangkang Area: before (2015) and after (2019) reclamation
2015
2019
2015 2019
3
20
EX Mining AGRICULTURAL & ECO‐TOURISM AREAS3
21
Offshore Rehabilitation3
22
Community Development Program ‐ Regulation ‐
4
Community Development and Empowerment (PPM) is an effort to encourage the improvement of the economy, education, social culture, health, and the environment of the communities around the mine‐site, both individually and collectively so that the level of life of the communities around the mine‐site becomes better and independent.
Article 106 Article 107Article 108Article 109
Article 74 Paragraph
(1‐3)
Article 95dArticle 108Paragraph
(1‐2)
Article 33 Paragraph
(2‐3)
Constitution 1945
Regulation (UU) No.4 Year 2009 Mining of
Mineral and Coal
Regulation (UU) No.40 Year 2007Limited Company
Regulation (PP) No. 23 Year 2010Mining Activities of Mineral and
Coal
Regulation (Permen) of Energy and Mineral
Resources (ESDM) No.41Year 2016
Community Development and Empowerment in Mining Activities of Mineral and Coal
1. Regulation (Permen) ESDM No.11 Year 2018
2. Regulation (Permen) ESDM No.25 Year 2018
3. Regulation (Permen) ESDM No.26 Year 2018
4. Ministerial Decree (Kepmen) ESDM 1806 Year 2018
5. Ministerial Decree (Kepmen) ESDM 1824 Year 2018
Social and Environmental Responsibility is the Company's commitment to participate insustainable economic development in order to improve the quality of life and theenvironment that is beneficial, both for the Company itself, the local community, andsociety in general.
23
Community Development Program
TIMAH is the first mining company in Indonesia who first completed the 2019‐2029 period of Community Empowerment and Development Master Plan(RIPPM). Our Company is committed to continue empowering communitiesaround the mine‐site to move towards economically independent communities.
PPM (Community Development) has 8 excellent programs based on communityempowerment around operational areas, such as in the fields of health,education, real income, economic independence, social culture, institutions,environment and infrastructure, sustainably carried out and integrated inaccordance with the principles of sustainable development goals (SDGs).
4
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18
Community Development Program‐ 8 Excellent Programs ‐
HEALTH ASPECT
EDUCATION ASPECT
COMMUNITY LIVING
ENVIRONMENTAL ASPECT
SOCIO CULTURE ASPECT
ESTABLISHING COMMUNITY INSTITUTION
ASPECT
ECONOMIC INDEPENDENCE
ASPECT
PPM SUPPORT INFRASTRUCTURE
REAL REVENUE ASPECTS
Increasing access and quality of public health services
Managing sanitation of community settlement
Development of pro‐climate and energy independent village models
Strengthening and expanding local economic entities
Increasing access and quality of infrastructure to support community economic activities
Community entrepreneurship academy
Enriching skills for women and young people
Revitalizing art heritage, religion and local culture
Protection of social inclusion, empowerment of vulnerable groups and remote indigenous community (KAT)
Development of community business centers based on local resources
Livelihoods development of community‐based agro‐maritime and integrated ecotourism
11 Priority Programs 2019 ‐ 2029
4
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Community Development Program‐ Sustainability Development Goals ‐
4
26
Community Development Program
Integration Step of PT TIMAH Tbk PPM Program With SDGs
Identifying and Reviewing Social‐Ecnomic contribution of mining operation PT TIMAH Tbk as well as minimizing negative impact toward to environment
Mapping the role, liability and opportunity of PT TIMAH Tbk PPM program by involving related parties in achievement of 17 Sustainable Development Goals
Constructing grand design, strategic framework and roadmap of PPM Programs relevant with the objectives of
1
2
3
4
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Community Development Program
COMMUNITY ENVIRONMENTAL MANAGEMENT PROGRAM
Development of pro‐climate & energy independentvillage models
FORMATION OF COMMUNITY INSTITUTIONS PROGRAM IN SUPPORTING THE INDEPENDENCE OF PPM
Strengthening & expanding local economic entities
INFRASTRUCTURE DEVELOPMENT PROGRAMS THAT SUPPORT PPM
Increasing access and quality of infrastructure to supportcommunity economic activities
HEALTH PROGRAM
Increasing access & quality of public health services
SOCIAL AND CULTURAL PROGRAMSRevitalizing art heritage, religion & local culture
REAL INCOME OR EMPLOYMENT DEVELOPMENT PROGRAM
Livelihoods development of community‐based agro‐maritime and integrated ecotourism
EDUCATIONAL PROGRAM
Community entrepreneurship academy
ECONOMIC INDEPENDENCE PROGRAMDevelopment of community business centers based on local
resources
Managing sanitation of community settlement
Enrichment of skills for women & young people
Development of social inclusion, empowerment of vulnerable groups & remote indigenous
PPM contribution for SDGs | Alignment of PPM with SDGs
4
28
Community Development : Educational Program
Bangka Belitung Manufacturing Polytechnic
Pemali Boarding Senior High School
Bangka Belitung State University
4
29
Community Development : Infrastructure Development Program
Previous Condition: no road access to village Construction Process
Current road facility to access the village
4
30
Community Development : Economic Independence Program 4
31
THANK YOU
