the performance of year 2017 - timah.com timah company performance _ fy2017.pdf · indonesia as...

The Performance of Year 2017

Investor Update | Analyst Meeting

STRONGER FACING CHALLENGES

PT TIMAH Tbk | www.timah.com 2

AGENDA

01

02 Financial Performance

03

04

05

Company overview

Operational Performance

Strategy Execution in 2017

Strategy in 2018

Company Overview

4

• The 2nd largest tin producer in the world

• Building on an impressive tin history ofalmost 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 withoffshore mining operation

COMPANYAT A GLANCE


VISION AND MISSION

VISION

To be a leading enviromental friendly mining company in the world

Building strong, supreme and dignified humanresourcesImplementing the proper and right good governancefor miningOptimizing the value of the company and contributionto the shareholders as well as social responsibility

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


BOARD OF DIRECTORS

M. Riza Pahlevi TabraniPresident Director

Experienced in Corporate Finance sector over 20 years, before join in PT TIMAH Tbk he wasin PT Perusahaan Gas Negara Tbk as a Chief Financial Officer and also become a presidentcommissioner in subsidiaries of PT Perusahaan Gas Negara Tbk.

Emil ErmindraChief Financial Officer

Experienced in Banking sector over 23 years, before join in PT TIMAH Tbk he was in PT BankNegara Indonesia (Persero) Tbk as an EVP Strategic Planning Division Head, EVP ManagementOffice Head, and VP Regional Chief Executive Officer.

Trenggono SutiosoDirector of Business Development

Experienced in Mining over 17 years, before join in PT TIMAH Tbk he was in PT Rio TintoIndonesia as Exploration Geologist, PT ANTAM Tbk with several positions such as VPExploration, Head of Project Development, SVP Corporate Strategic Development, CorporateSecretary.

Muhammad RizkiDirector of Human Resources

Experienced in PT TIMAH Tbk over 20 years with several positions such as Head of OffshoreOperation, Head of Logistic, Head of Metallurgy.

Alwin AlbarDirector of Operation

Experienced in PT TIMAH Tbk over 17 years with several positions such as Head of BusinessDevelopment, Head of Regional Engineering and Production


CORPORATE STRUCTURE

99,99%

100%

99,99%

99,80%50%50%

99,99%

99,99%

99,99%

99,99%

99,99%

99,99%

99,99%

2 3 4

1

Pilar 1 : Tin mining1

Pilar 2 : Downstream2

Pilar 3 : Non tin mining3

Pilar 4 : Based on competency 4

65% 35%

Financial

Performance

FY 2017 FINANCIAL HIGHLIGHTS


As of December 2017 PT TIMAH recorded net profit for the year Rp.502 billion driven by

improved operational performance and continue in efficiency. Net profit for the year is

increased 2 times compared to last period in 2016


RevenueRp9,217 billion

Gross margin17%

Net IncomeRp502 billion

EBITDA Rp1,447 billion

PT.TIMAH Tbk | www.timah.com 10

Net IncomeXXXX

Net IncomeXXXX

FY 2017 NET PROFIT ANALYSIS

The increase of TINS revenue in the previous year was driven by the increase in sales volume and 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

In billion IDR

Variance YoY

0

500

1000

1500

2000

Net income FY2016

Revenue Cost of revenue Opex Others Tax Net income FY2017

252

+2,249 +1,818

+198+93 +75 502


Net IncomeXXXX

FINANCIAL PERFORMANCE

7,822

6,239

7,518 6,874 6,968

9,217

-

2,000

4,000

6,000

8,000

10,000

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

RevenueIn IDR billion

1,077 1,191

1,524

784

1,047

1,447

-

500

1,000

1,500

2,000

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

EBITDA In IDR billion

432

581673

102

252

502

0

200

400

600

800

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Net incomeIn IDR billion

86

10290

14

66

0

20

40

60

80

100

120

FY2012 FY2013 FY2014 FY2015 FY2017

EPSRupiah/shares

32%99%

38%371%

PT. TIMAH Tbk | www.timah.com 12

Net IncomeXXXX

Net IncomeXXXX

QUARTERLY FINANCIAL PERFORMANCE

2,047 2,253 2,319

2,598

-

500

1,000

1,500

2,000

2,500

3,000

Q1 2017 Q2 2017 Q3 2017 Q4 2017

RevenueIn IDR billion

255 332

381 479

12%

15% 16%18%

0%

5%

10%

15%

20%

0

100

200

300

400

500

600

Q1 2017 Q2 2017 Q3 2017 Q4 2017

EBITDA (in IDR billion)& margin (%)

298 333

522

373

15% 15%

22%

14%

0%

5%

10%

15%

20%

25%

0

100

200

300

400

500

600

Q1 2017 Q2 2017 Q3 2017 Q4 2017

Gross profit (in IDR billion)& margin (%)

6685

150

201

3.20%3.80%

6.50%

7.70%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

0

50

100

150

200

250

Q1 2017 Q2 2017 Q3 2017 Q4 2017

Net incomeIn IDR billion


Net IncomeXXXX

Net IncomeXXXX

CASH MARGIN PER TONNES

1.83.1 2.8

0.61.6 1.6

19.6 19.5 18.8

15.516.7

18.1

0

5

10

15

20

25

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Cash margin Delivered cost*

Stable production cost and as of December 2017 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 highest

average tin price The lower

average tin price


Net IncomeXXXX

Net IncomeXXXX

CAPITAL EXPENDITURE

FY 2017

MAJOR EXPANSION PROJECTS

Exploration & Production: Major expansion for open the new area onshore mining in Bangka and Belitung, and regular exploration activities

38 29

185

293

46

166

137

138

129

153

-

100

200

300

400

500

600

700

800

900

FY 2016 FY 2017

Building & office Machinery Exploration & production Equipment CIP

779

535

Construction in progress: Construction in progress related to development of production capacity, recondition and replacement machinery including in fuming development

Refined tin

production

increased 27%

Capex In billion IDR


Net IncomeXXXX

Net IncomeXXXX

DEBT PROFILE AND COST OF FUND

Issued Obligation

and Sukuk with

lower interest rate

264

1355

2334 21151733

2192

1500

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Short term loan Long term loan

Debt Profile (In billion IDR) Cost of fund analysis

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%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2012 2013 2014 2015 2016 2017

Average IDR Rate Average USD Rate

Operational

Performance



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

OPERATION PERFORMANCE IN FY 2017

Tin ore production31,178mt

Refined tin production30,249mt

Refined tin sales29,914mt

Average selling price$20,429/t


TIN INDUSTRIES OVERVIEW

Net IncomeXXXX


Net IncomeXXXX

Net IncomeXXXX

Net IncomeXXXX

OPERATION PERFORMANCE

29,776 26,204

32,319

26,361 24,121

31,178

-

10,000

20,000

30,000

40,000

FY2012 FY2013 FY2014 FY2015 FY2016 FY 2017

Tin ore productionIn metric tonnes

34,934

23,237 26,907

30,087 26,677

29,914

-

10,000

20,000

30,000

40,000

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Refined tin salesIn metric tonnes

29,512

23,718 27,550 27,431

23,756

30,249

-

10,000

20,000

30,000

40,000

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Refined tin productionIn metric tonnes

26,714

21,505 21,686

16,186 18,408

20,429

5,000

10,000

15,000

20,000

25,000

30,000

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017

Average selling priceIn USD

29% 27%

12% 11%


Net IncomeXXXX

Net IncomeXXXX

QUARTERLY OPERATION SUMMARY

7,675

8,403

7,776

7,324

6,500

7,000

7,500

8,000

8,500

Q1 2017 Q2 2017 Q3 2017 Q4 2017

Tin ore productionIn metric tonnes

6,963

7,942 7,932

7,412

6,000

6,500

7,000

7,500

8,000

8,500

Q1 2017 Q2 2017 Q3 2017 Q4 2017

Refined tin productionIn metric tonnes

6,963

7,441 7,184

8,326

6,000

6,500

7,000

7,500

8,000

8,500

Q1 2017 Q2 2017 Q3 2017 Q4 2017

Refined tin salesIn metric tonnes

20,428 20,432

20,557 20,565

20,000

20,100

20,200

20,300

20,400

20,500

20,600

Q1 2017 Q2 2017 Q3 2017 Q4 2017

Average selling price$/tonnes


Net IncomeXXXX

OPERATION OVERVIEW

246,886 324,037

490,660 472,306

FY2016 FY2017

Onshore Offshore

71,103 100,616

264,806 276,978

FY2016 FY2017

Onshore Offshore

377,594

737,546796,343

335,909

Province Total IUP Total area (Ha) Note

Bangka, Babel 20 81.824 Tin ingot

Bangka Barat, Babel 45 93.954 Tin ingot

Bangka Selatan, Babel 18 38.265 Tin ingot

Bangka Tengah, Babel 8 26.884 Tin ingot

Belitung, Babel 9 13.262 Tin ingot

Belitung Timur, Babel 11 61.278 Tin ingot

Bangka Belitung, LintasKabupaten

10 112.827 Tin ingot & iron ore

Karimun, Kepri 4 18.875 Tin ingot

Riau 2 6.540 Tin ingot

Riau dan Kepri, LintasKabupaten

1 19.594 Tin ingot

TOTAL 128 473.303

Reserves

Resources

Strategy

Execution in 2017

STRATEGY EXECUTION IN 2017


TIN RESERVES OPERATIONAL FINANCEHUMAN

RESOURCES BUSINESS

DEVELOPMENT

• Signing of joint

venture agreement

with Topwide

Ventures in Nigeria

• Re-evaluted of tin

resources and

reserves in onshore

and offshore

• Development of

production capacity

• Established 2 more

units of inland

mining

• Exploitation of

primary reserves in

Bangka Belitung

• Issued Bonds and

Sukuk amounting to

Rp.1.500 billion

• Training,

certification,

managerial and

leadership reached

93% of the target as

of October 2017

• Fuming and Ausmelt

development

• Bore Hole Mining

• Signed a strategic

partnership with

Yunan Tin Group

Strategy in 2018

25

1 Increasing tin ore recovery

2 Re-engineering technology and enlargement productivity

3 Established of new mining area

4 Cost efficiency

5 Maintaining good relationship between stakeholders and customers

STRATEGY IN 2018

PT.TIMAH Tbk | www.timah.com


Thank You

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