PT Indo Tambangraya Megah Tbk : ITM Analyst Presentation 3Q24

About this update from Pt Indo Tambangraya Megah Tbk

Analysts Meeting 3Q24 Performance Result 15 November 2024 Disclaimer The information contained in this presentation is intended solely for your reference. This presentation contains "forward-looking" statements that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements, other than statements of historical fact contained in this presentation including, without limitation, those regarding ITM's future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets where ITM participates or is seeking to participate and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "will", "may", "project", "estimate", "anticipate", "predict", "seek", "should" or similar words or expressions, are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control, which may cause the actual results, performance or achievements, or industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which ITM will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as of the date on which they are made. ITM does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. The information set out herein is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company. ITM makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one if many possible scenarios and should not be viewed as the most likely or standard scenario. No assurance given that future events will occur, or our assumptions are correct. Actual results may materially differ from those provided in the forward-looking statements and indications of past performance are not indications of future performance. In no event shall ITM be responsible or liable for the correctness of any such material or for any damage or lost opportunities resulting from use of this material. ITM makes no representation whatsoever about the opinion or statements of any analyst or other third party. ITM does not monitor or control the content of third-party opinions or statements and does not endorse or accept any responsibility for the content or use of any such opinion or statement. This presentation does not constitute an offer to sell or a solicitation of an offer to buy or sell ITM's securities in any jurisdiction. Highlights 3Q24 highlights - Upbeat production, strong results B U S I N E S S P E R F O R M A N C E Production Sales ASP 5.8 Mt 6.3 Mt $97/ton 33% QoQ / 9% YoY 8% QoQ / 18% YoY 3% QoQ / -2% YoY Revenue EBITDA Net Profit $608 Mn $161 Mn $144 Mn 8% QoQ / 15% YoY 42% QoQ / 22% YoY 114% QoQ / 46% YoY G O O D A N D R E S P O N S I B L E 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 Watershed rehabilitation programs through subsidiaries Solar-based renewable capacity strong growth ITM's newly operated mines, GPK and TIS, launched a kick-off ceremony for a 1,300 Ha watershed rehabilitation in IKN. Meanwhile, BEK's watershed rehabilitation planting program in Menoreh Hill, supported by ~1,200 farmers covering 250 Ha, is nearing the completion. IBP, an ITM subsidiary, successfully added 14.0 MWp to its renewable contracted capacity during 3Q24, resulting in a total solar-based renewable capacity of 46.7 MWp as of September 2024, 4 times YoY growth compared to September 2023 of 11.6 MWp. 5 Three new mines to strengthen our core business NPR* 5-6Mt 0.5-1Mt Short-term Long-term CENTRAL KALIMANTAN NORTH EAST KALIMANTAN KALIMANTAN GPK 5500 kcal/kg 4-5Mt 3900 kcal/kg 2-3Mt TCM BEK 6400 kcal/kg TIS Melak cluster 0.5-1Mt ITM mine subsidiaries that are located in close proximity, including TCM, BEK, TIS, GPK, and NPR SOUTH KALIMANTAN O P E R A T I N G N E W M I N E S Ramping up annual production Based on the life of mine plan, GPK and NPR could contribute up to 5 and 6 Mt production volume respectively. NPR is still in development and is expected to commence its production by 2025. Port capacity improvement to support the increasing production and pursue future opportunities. E n r i c h I T M F u l f i l l d i f f e r e n t c o a l p r o f i l e s p e c i f i c a t i o n Besides adding the production and With more diversified product, ITM sales volume, the production from three would be able to capture wide range new mines will enrich our coal profile. of quality required by its customer. O p t i m i z i n g O p e r a t i o n r e v e n u e s y n e r g y Reach more consumers by Operational synergy in the Melak broadening product quality and cluster by utilizing existing shared potentially increase ASP. facilities. *Still in development 6 Reinforcing resilience to withstand the challenges POLITICAL AND ENERGY REGULATION TRANSITION UNCERTAINTY Revenue optimization and COMMODITY cost management Sustainability and MACROECONOMIC, PRICE decarbonization TRADE, AND VOLATILITY GEOPOLITICAL CONCERN Contractor business Robust operations Coal Port and trading logistics ENERGY SERVICES *Icons in circles represent operating businesses Coal mining Strategic minerals MINING LE B R A N A N E G F D N I U T N C R O T P I O U P S N S Solar based renewable Digitalization and data- Hydro-based driven NBS renewable organization RENEWABLES AND OTHERS 7 Coal Market Trends Global thermal coal market COAL DEMAND AND SUPPLY CHANGE - 2024e VS 2023 Unit: Mt SUPPLY DEMAND P ac i fi c +51 +58 Atlantic Russia -19 -30 Europe +45 -20 Other N. Asia +1 US -26 -6 China +5 +51 +11 +4 South Asia Others Colombia Indonesia South Africa +4 -6 Australia Note: JKT = Japan, South Korea and Taiwan TRENDS DEMAND HCV thermal coal prices are expected to remain high through the end of the year, supported by geopolitical and seasonal weather risks. The lower-CV market will be boosted by strong China demand. China : Power demand in Q4 will be supported by economic stimulus, declining hydropower generation, and winter demand. Favorable arbitrage between imported and domestic coal continues to drive imports. India : Thermal coal imports are expected to remain steady through year- end, driven by strong economic activity and a government directive for all import coal-based power plants to operate at full capacity. JKT : High nuclear output may reduce coal demand over the winter, and South Korea and Taiwan plan to restrict coal burning to improve air quality. Europe : Coal-fired capacity in Europe is expected to be 30% lower YoY due to coal plant retirements. SUPPLY Global thermal coal exports are performing well in most regions, except Russia. La Niña weather could disrupt supply for the rest of the year. Indonesia : Strong production growth has led to oversupply, though high demand from China is helping to stabilize prices. Australia : Exports remain steady, supported by increased purchases from China. Others : Russia's supply is contracting further due to rail capacity constraints, sanctions and rising costs, limiting Russia's ability to meet higher winter demand in the northern hemisphere. South Africa's exports are constrained by sluggish demand and logistical challenges. Colombian supply is optimization-driven, with more coal shifting from Asia back to Atlantic markets. 9 ITM ASP vs thermal coal benchmark prices ITM ASP VS BENCHMARK PRICES COMMENTS Unit: $/t ▪ The seaborne premium thermal coal market remained stable in 3Q24, with GCNewc prices fluctuating between $132-150 per ton. 460 Meanwhile, the market for lower-quality thermal coal showed slight weakening from the previous quarter due to increased 420 supply from Indonesia, with ICI2 prices ranging from $92-94 per 380 ton, ICI3 from $71-73 per ton, and ICI4 holding between $50-53 per ton. 340 ▪ Throughout the quarter, we have been strengthening 3rd party 300 coal blending activity for improving the quality of saleable coal, effectively optimizing the throughput and ASP. 260 ▪ We anticipate that the global seaborne thermal market will 220 continue to remain stable through 2025, with overall supply and 180 demand dynamics expected to be well balanced. The production Monthly NEX increase from Indonesia will be mostly absorbed by strong demand from China, South Asia, and Southeast Asia. 140 $147.1/t 100 Quarterly ITM ASP ▪ Key price metrics: $96.9/t ▪ ITM ASP 3Q24 a : $96.9/t (3% QoQ) 60 ICI 3 $73.2/t ▪ NEX (8 Nov 2024) b : $143.3/t 20 Apr-19 Oct-19 Apr-20 Oct-20 Apr-21 Oct-21 Apr-22 Oct-22 Apr-23 Oct-23 Jan-24 Apr-24 Oct-24 ▪ ICI 3 (8 Nov 2024) c : $73.3/t Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jul-24 Notes: a) Includes post shipment price adjustments as well as traded coal b) The Newcastle Export Index (NEX) 10 c) The Indonesia Coal Price Index (ICI)

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