ITM Analyst Presentation 2Q24

G O O D A N D R E S P O N S I B L E

Mentawir nursery inauguration

Mentawir nursery was officially inaugurated by President Jokowi. Mentawir nursery is a nursery facility assisted by ITM, which will supply seeds to support new capital city, Nusantara, forestry and ecological aspect.

G R E E N E R , S M A R T E R T R A N S F O R M A T I O N

Growing solar-based renewable capacity

IBP, ITM subsidiary, continues to grow the renewable contracted capacity by 4.7 MWp during 2Q24, resulting in a total solar-based renewable capacity of 34.5 MWp, including Bunyut project, as of Jun 2024.

DECARBONIZATION

Decarbonization strategy through emissions

reduction and removal enhancement

c New greener business

Renewable business

Nature based solutions

DIGITALIZATION

Utilizing digital technology to enhance efficiency and improve productivity

Fleet management

Energy consumption

Infrastructure & logistics management

Supply chain management

Reserves

64 Mt

42 Mt

Total ITM reserves as of Dec 2023 (Mt)

Reserves

77 Mt

Resources

143

Mt

67

Mt

Total ITM resources as of Dec 2023 (Mt)

Notes:

*) Previous reserves and resources amount excludes TIS.

**) The latest reserves and resources audit as prepared by competent persons (considered suitably experienced under the JORC Code) is for all mine concessions, with exception of NPR and TIS.

8

Global thermal coal market

COAL DEMAND AND SUPPLY CHANGE - 2024e VS 2023

P ac i fi c

TRENDS

DEMAND

Peak summer demand will support the HCV coal market in JKT (1) amid ongoing sanctions on Russian coal. Strong hydropower in China and the monsoon in India will reduce imported coal demand for the lower-CV market.

Atlantic

-18

-26

US

-2

+2

Colombia

+25

Europe

-8

South Africa

-4

+31

Russia

-13 Other N. Asia

+20

-11

+13 China

+26 +4

South Asia Others

Indonesia

+3

Australia

• China: Strong hydro generation will reduce coal-fired output, but thermal coal imports should remain stable due to competitive pricing in coastal provinces in 2H24.
• India: Coal-fired generation is expected to ease slightly in 3Q24 due to the monsoon but will remain high. The government is extending import directives to utilities to normalize imports amid strong domestic production.
• JKT: Summer demand could support power demand in 3Q24, but firm nuclear and stronger renewables will curb coal demand growth.
• Europe: Uneconomic coal-fired generation, high stockpiles, and strong nuclear and renewable generation continue to limit coal burn.

SUPPLY

Global exports from most regions have performed well this year. Short-term risks center around weather in key producing countries, while Indonesian suppliers may struggle to maintain outflows due to limited demand growth from key importing countries.

• Indonesia: Coal production remains strong despite high rainfall in some key regions.
• Australia: Steady exports with slightly tightening HCV supply as producers increase high-ash shipments to China, reducing pressure on HCV market.
• Others: Russia continues to face logistical constraints to far eastern ports and increased competition from other origins. Logistical challenges in South Africa persist, while wet weather in Colombia could slow production in 2H24.