3Q10 Results

Analyst Briefing

11 November 2010
 DISCLAIMER

The views expressed here contain information derived from publicly available sources that have not been
independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the
information. Any forward looking information in this presentation has been prepared on the basis of a number of
assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or
forecast by PT. Indo Tambangraya Megah Tbk. Nothing in this release should be construed as either an offer to buy or
sell or a solicitation of an offer to buy or sell shares in any jurisdiction
Agenda

1. Introduction

2. Operational review

3. Commercial review

4. Financial review
 1

Introduction
 Highlights of 3Q10 & 9M10 – the figures

Coal sales Coal sales

5.04 Mt 16.38 Mt
Down 0.2 Mt Up 2.5 Mt
Unit: USD Million -4% Q-Q +18% y-y

2Q10 3Q10 Q-Q 9M09 9M10 y-y

Total Revenue 414 397 -4% 1,046 1,218 +17%
Gross Profit Margin 36% 35% -1% 41% 35% -6%
EBIT 106 99 -7% 341 298 -13%
Net income 67 52 -22% 266 186 -30%

ASP (USD/ton) $78.2 $78.3 +0% $75.2 $73.9 -2%

 ITM three part strategy

Growth Cost Management Best Practice

• Indominco East Block: • Completed construction of 2x7 • Achieve world class standards of
production will be ramped MW captive coal power plant management best practice:
up to 12mt by 2015 • ISO 9001:2000
• Reduced costs through logistics
• Kitadin Tandung Mayang: expansion and economies of • ISO 14001:2004
will resume its own mine scale • OHSAS 18001:1999
production by 2H 2011 • TPM 3 Excellence
• Chip seal hauling road at
• Bharinto operation will Trubaindo mine • National Environment Certificate
(PROPERNAS)
commence in 1H 2011
• Washing plant construction at • Environmental Management
• BoCT ship loading Trubaindo and further at East Award in Sep 2010 from Ministry
expansion to 18.5Mtpa Block of Energy and Mineral Resources
completed
• In-pit crusher study for East • Platinum Award in Oct 2010 for
• Pro-actively looking for Block community development program
potential coal assets
from the Coordinating Ministry of
acquisition
Social Welfare
• Gold Award in Oct 2010 from
International Innovation ICQCC
Agenda

2
Operational Review
ITM operations in 2010
ITM OPERATIONS & PROJECTS z Total coal output:
East ¾ 9M10 : 16.2Mt (72% achievement)
Kalimantan
¾ FY10 : 22.5Mt target
INDOMINCO Bontang Coal
14.7 Mt Terminal z Indominco - 9M10 output: 10.7Mt
- FY10 target: 14.7Mt
Bunyut Port - E.Block: production proportion will
Captive coal-
fired power
increase starting 2010 onwards
TRUBAINDO - W.Block UG: Project is terminated due to
5.5 Mt high cost to support geological condition
Samarinda
KITADIN
1.4 Mt z Trubaindo - 9M10 output: 4.1Mt
Central BHARINTO Balikpapan
Kalimantan - FY10 target: 5.5Mt
- Production was reduced due to severe
weather conditions during 2Q/3Q 2010
Palangkaraya
South z Bharinto - First production output by 1H 2011
Kalimantan
z Embalut - 9M10 output: 0.9Mt
Banjarmasin - FY10 target: 1.4Mt
JORONG - Utilize existing reserve
0.9 Mt
z Td. Mayang - Works as mining contractor at IMM area
Operation
Jorong Port
- Production from own mine will commence by
Project 2H 2011

z Jorong - 9M10 output: 0.5Mt

- FY10 target: 0.9Mt
- Lower output due to operation stoppage and
severe weather condition
Indominco

INDOMINCO-BONTANG SCHEMATIC INDOMINCO PRODUCTION ANALYSIS

SR 16.7 15.3 14.5 14.4
Operations
Ports
2009 2.4 2.6 3.3 4.1 12.4 Mt
WEST BLOCK
1Q 2Q 3Q 4Q
ROM Hauling
stockpile Mine Stockpile
stockyard 2010e 3.7 3.6 3.5 3.9 14.7 Mt
EAST BLOCK Crusher
SR 13.2 13.0 13.0
West Block East Block
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Bontang City
2.8 2.5 2.5 0.9 1.1 1.0
35Km
SR 14.5 14.7 14.6 9.0 9.0 9.0
Sea conveyor
Asphalt haul
road
2.5Km MAJOR QUARTERLY UPDATES

Post
z 3Q10 production lower than expected due to bad weather
Santan River Port stock
yard Panamax z Additional mining equipment will be supplied from mining
95,000DWT contractor to produce additional coal in East Block
Inland
conveyor 4km z Power plant already in operation, supplying power to Bontang
port and East Block and currently under development to
supply power to West Block
z Bontang port already running at upgraded loading capacity of
20.5mtpa by shiploader and FTS
0 2 4 6 8 10 km z West Block UG: Decision to terminate the project due to high
cost to support geological condition
 Trubaindo and Bharinto

TRUBAINDO-BHARINTO SCHEMATIC TRUBAINDO PRODUCTION ANALYSIS

Bunyut
Port SR 13.7 11.7 11.0 11.1
2009 1.3 1.3 1.3 1.3 5.2 Mt
Product coal
conveyor, stacking, 1Q 2Q 3Q 4Q
stockpile Mahakam
River 2010e 1.6 1.1 1.3 1.5 5.5 Mt
40km
EAST KALIMANTAN Mine to port SR 10.0 10.5 10.2

MAJOR QUARTERLY UPDATES

0 5 10 15 20 25 km Kedangpahu
River z Trubaindo:
PT.
TRUBAINDO ƒ 3Q10 production was below target due to heavy
rainfalls and impacted full year production
ROM
stockpile
North
ƒ Additional mining contractor to support next year
Block production target
Bharinto 60km
south west of z Bharinto:
Trubaindo Dayak
North Block Besar ƒ Crushing plant construction is ongoing and planned
Operation
to be completed by end of 2010
Hauling
ƒ Expected some delay in the hauling road
Biangan
Stockpile construction due to weather condition and delay of
PT. Barge Port permit
BHARINTO Crusher ƒ Estimate first production output by 1H 2011
 Kitadin

KITADIN SCHEMATIC KITADIN PRODUCTION ANALYSIS

TD. MAYANG
SR 7.6 7.6
Bontang city 0.2 0.5 0.7 Mt
IMM WB IMM EB 2009
Bontang 1Q 2Q 3Q 4Q
Port
ROM
stockpile 2010e 0.4 0.3 0.3 0.4 1.4 Mt
EMBALUT SR 8.8 8.8 8.8
5km Mine to port
Embalut Port
MAJOR QUARTERLY UPDATES
Mahakam
River z Kitadin Embalut:
Samarinda
EAST KALIMANTAN to Muara Berau
ƒ 3Q10 coal production affected by rainfall, lower coal
volume in certain areas due to hard material
Operations ƒ Lower contribution from Embalut for full year due to
Ports
to Muara Jawa unfavorable weather conditions
Hauling z Kitadin Tandung Mayang:
Stockpile
Balikpapan
ƒ Currently a mining contractor at Indominco area
Crusher ƒ Production at own mine will commence during 2H 2011

0 2 4 6 8 10 km
 Jorong

JORONG SCHEMATIC JORONG PRODUCTION ANALYSIS

SR 6.6 6.6 6.6 6.6

0 5 10 15 20 25 km
2009 0.8 0.8 0.7 0.8 3.1 Mt
1Q 2Q 3Q 4Q
Pelaihari SR 6.9 6.9

Haul road
2010e 0.4 0..0 0.1 0.4 0.9 Mt
1Q 2Q 3Q 4Q

20km
MAJOR QUARTERLY UPDATES
ƒ 3Q10 production lower than planned due to starting of
production in mid August
Jorong
ƒ Overall production target will be lower than original
plan due to operation stoppage and severe weather
Operations Coal conditions
terminal
Barge Port
Pacific Ocean
Hauling

Stockpile
 Bontang Power Plant focus: profile

Profile

Total capacity : 2 x 7 MW

Total investment : USD 36 m

EPC : Chinese contractor

Coal supply : Indominco coal

Coal consumption : 1,600 t/month (2010)

Coal specification : 5,700 - 6,000 kcal/kg (ad)

COD : August 2010

 Bontang Power Plant focus: electricity supply to operations

Indominco and Bontang energy use plan:

2x7 MW Bontang
3
power plant

• 70-80% coal fired electricity and 20 kV Line ~4 km

20-30% diesel
Port Substation
• Lower operating costs and increase reliability 10 kV Line
of fuel supply ~ 1 km
1
• Opportunities to promote local employment 2
6.5 MW port and port
70 kV Line ~23 km
• Second 7 MW will be used for West Block stockyard substation
extension
• Surplus for future electrification projects or Port Stockyard Substation
third party sales East Block Substation
1.0 MW approximate load

Note: distance is not to scale

 Bontang Power Plant focus: extension to West Block

Extension plan:
2x7 MW Bontang
power plant
• Extension of the 20 kV Line ~4 km

transmission line to West

Block processing plant is in 10 kV Line Port Substation
progress West Block Substation
1.5 MW approximate load ~ 1 km

6.5 MW port stockyard

• Total investment: USD 1.2 20 kV Line ~15 km 70 kV Line ~23 km and port load
million

Port Stockyard Substation

• Projected COD: March East Block Substation
2011 1.0 MW approximate load

Note: distance is not to scale

Bontang Power Plant focus: photos
Bontang Power Plant Control Room

Turbine’s Piping System Cooling System

Agenda

Commercial Review
Long term coal market quality trends

Indonesia’s share of Supply – demand

Implications ?
thermal coal trade balance
Global trade 2005 • Possible trend of • Standard qualities:
tight supply and
Higher CV: Increasingly
Indonesia historically high
25% scarce
prices
Others Mid CV: Growing but
75% • Uncertainties
stable
towards 2013/
2014 Low CV: Excess
Global trade 2010
• Higher proportion • Higher impurity products
of lower sulphur, become more competitive i.e.
Indonesia* lower ash and high sulphur and high ash, if
40% lower CV likely higher CV
Others
60%
• ITM may investigate re-
inventing product mixes/
logistics approaches
* 55% of Asia-Pacific trade
 Banpu
Thermal coal averageprices
benchmark selling prices in 3Q10

Coal price benchmarks Upswing due largely to :

– Supply shortfall due rain in
FOB Newcastle 6300 kcal/kg, GAR
Colombia, Australia and
Newcastle, RB, Indonesian
FOB Kalimantan 5900 kcal/kg, GAR Coal prices surge upward particularly Indonesia
FOB Kalimantan 5000 kcal/kg, GAR
110 – Expectation of seasonal Northern
winter demand
100
– Some improved general
sentiment
90
Indonesian indices drag behind
US$ / Ton

80 Australian and S. African due to:

– Being forward estimates without
70
recourse rather than actual deals
and they include traders
60
– Less tight supply/demand
50 balance (usually)
Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-
Heavy rain capped supply: cushioned
Indonesian downside mid-year
 Thermal
Thermal coal market
coal market analysis
analysis – 4Q –2010
4Q 2010 update
update

ATLANTIC
Bottoming out? Slow
recovery encouraging
USA
Thermal supply
remains very low, some
LCV to Korea
COLOMBIA
Diverts coal to Asia, +/- 10mt
already sold but heavy rains
depress output. Signs of
growing regional demand
RUSSIA
CHINA
Minor recovery due
weakened Ruble but rising Faster import pace reverses
domestic demand and rail until 4Q. Imports much higher
limits than 2009. Exports drop EAST ASIA
Japan minor recovery, but
steel mills strong so far;
Korea &Taiwan strong
recovery
REST OF ASIA
Continued growth
INDONESIA
More rain through 4Q
depresses output

SOUTH AFRICA AUSTRALIA

INDIA Floods hamper
Continuing problems in
rail eases short term High demand has Queensland output
recovered as monsoon = Demand
ended Aug/Sep, temporary = Demand/Supply
logistic dislocation = Supply
 Banpu
ITM average average
selling pricesselling
in 3Q10prices in 3Q10

USD per tonne Monthly BJI ASP 3Q10 vs. 2Q10 up 1%

Monthly ASP
190 Quarterly Historical lags continue, hence
170 BJI
curves crossing
150
130 Product mixes with some more
110 lower CV impacted in 2010
Quarterly
90 ASP
70 Both curves expected to turn
50 upwards through 4Q
30
Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10

ASP 3Q10 $78.3/t BJI* Nov 4, 2010

$104.2
ASP 9M10 $73.9/t
Indicative 2010 coal sales

Coal
Coal sales
sales contract
contract and
and pricing
pricing status
status Comment

Contract Status Price Status Above plan shipments no

longer possible due to rain
Contracted Fixed
impact depressing
production
95%
100%
Of 4Q 2010 tonnes, about
15% is index linked
Index 5%
Historically high index linked
“Fully Sold” share of sales in 2010

ASP up 5% in 2009
TARGET SALES 2010: Approx. 23 Mt
 Coalsales
Coal salesby
bygeographic
geographicdestination
destination (ITM and Thai)

Coal sales 9M10 CHINA 2010 HONG KONG 2010 S.KOREA 2010 JAPAN 2010
3.6Mt
4.2Mt
(Total 16.4Mt) 2.6Mt
1.3 Mt
1.0Mt 2.3Mt
4.0Mt 3.5Mt

1.7Mt 0.0Mt
1.2Mt
2008 2009 9M10
0.6Mt
ITALY 2010

2008 2009 9M10 2008 2009 9M10

1.3 Mt 1.4Mt 1.2Mt

INDIA 2010
2008 2009 9M10

2.2Mt

2008 2009 9M10

TAIWAN 2010
0.7Mt
2.6Mt
OTHERS* 0.2Mt
1.9Mt 1.8Mt
2008 2009 9M10

1.4Mt
0.8Mt
1.0Mt THAILAND 2010 INDONESIA 2010 PHILIPPINES 2010
2.8Mt
2008 2009 9M10

2008 2009 9M10 2.1Mt

1.6Mt 1.8Mt
*Includes small, non- 1.1Mt
Mid-to-High CV
1.3Mt 1.3Mt
regular purchasers 0.9Mt
0.6Mt Low-to-Mid CV
2010 trend expectation
2008 2009 9M10 2008 2009 9M10 2008 2009 9M10
Agenda

Financial Review
ITM sales revenue

SALES VOLUME REVENUE* GROWTH

Units: Million Ton
7.2 -6% YoY
-4% QoQ
6.1
5.4 5.3 5.0 Units: USD Million
461 +7% YoY
-4% QoQ
405 412
394
368

3Q09
3Q09 4Q09
4Q09 1Q10
1Q10 2Q10
2Q10 3Q10
3Q10

AVERAGE SELLING PRICE

Units: USD/Ton +14% YoY

78.2 78.3 +0% QoQ

68.7 66.6 3Q09

3Q09 4Q09
4Q09 1Q10
1Q10 2Q10
2Q10 3Q10
3Q10
64.4
* excluding port revenue

Kitadin
Jorong
Trubaindo
3Q09
3Q09 4Q09
4Q09 1Q10
1Q10 2Q10
2Q10 3Q10
3Q10
Indominco
Average gross margin
Units: USD millions

414 Total
397 Revenue
370 GPM* (%)

355
326
275

114 137
36% 102
35%
43%
28% 27%
32% 51
49
32% 31% 31 31
41% 1
28% 0
19% 27% 23% 27% 54%
-59%
3Q09 2Q10 3Q10 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10

ITM Consolidated Indominco Trubaindo Kitadin Jorong

* COGS included royalty

 EBITDA
Units: USD million CONSOLIDATED
138.2
-5%
119.1 (17.5) (3.7) +6.7 113.0 (QoQ)
+2.3
+6.1

Lowersales
Lower salesvolume
volumeby
by Higher
Higher
4% 4% demurrage
demurrage

3Q09 2Q10 Revenue COGS Royalty Selling Admin 3Q10

*COGS = Prod cost + Transport cost + Inv. movement

MINE BY MINE
87.7
78.9
70.8

30. 31.2
25.5
3 13.2 12.0 11.7
4.2
(9.8) (4.0)

3Q09 2Q10 3Q10 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10
Indominco Trubaindo Kitadin Jorong
 Net income
Units: USD million CONSOLIDATED

107.2 Lower sales volume

by 4%
+7.0
67.0 +11.1 (27.3)
(7.4)
(0.6) +1.9 51.7 -23%
(QoQ)

UG exploration
cost

3Q09 Net FOREX Derivative Income

2Q10 EBIT Others 3Q10
Financial Transactions Tax
Charges

MINE BY MINE
61.5
52.2

28.9
20. 17.0 20.9
2
7.6
6.8
4.2 4.5
(8.1) (7.1)
3Q09 2Q10 3Q10 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10 3Q09 2Q10 3Q10
Indominco Trubaindo Kitadin Jorong
Balance sheet

CASH POSITION
429
(Units: USD million)
355
Net gearing (%)
258
222 Net D/E (times)

54 1.11

2006 2007 2008 2009 3Q10

44%
DEBT POSITION
(Units: USD million) (30%) (34%) (44%) (49%)

195 (0.36) (0.34) (0.47) (0.49)

2006 2007 2008 2009 3Q10

92
55
11
0
2006 2007 2008 2009 3Q10
2010 major capital expenditure plans: USD 101 m
Units: USD million

2.4
Indominco East Block Realized up to Sep 2010
7.5
2010 major Capex plan

4.6
Bontang Power Plant
5.3

6.0
Trubaindo Infrastructure
20.4

3.4
Td.Mayang Equipment
10.5

Bharinto Project 5.2

Development 20.0

Improvement Initiatives 16.9

Trubaindo mobile crusher
Embalut Infrastructure 37.3
Indominco PSY Expansion

Note: The capital expenditure figures shown above do not include estimates for maintenance or sustaining capital expenditure
Questions & Answers
Agenda

Appendices
Income Statement
Unit: US$ thousand 3Q10 2Q10 3Q09 QoQ% YoY%

Net Sales 396,715 414,219 369,860 -4% 7%

Gross Profit 139,254 149,612 157,995 -7% -12%
GPM 35% 36% 43%
SG&A (40,456) (43,377) (30,376)
EBIT 98,798 106,235 127,619 -7% -23%
EBIT Margin 25% 26% 35%
EBITDA 113,037 119,130 138,226 -5% -18%
EBITDA Margin 28% 29% 37%
Net Interest Income / (Expenses 91 675 155
FX Gain / (Loss) 1,565 (429) 777
Derivative Gain / (Loss) (2,424) (13,498) 10,812
Others (27,869) (591) 16
Profit Before Tax 70,161 92,392 139,379 -24% -50%
Income Tax (18,421) (25,433) (32,212)
Net Income 51,740 66,959 107,167 -23% -52%
Net Income Margin 13% 16% 29%
Income Statement

Unit: US$ thousand 9M10 9M09 YoY%

Net Sales 1,218,440 1,045,711 17%

Gross Profit 423,055 427,791 -1%
GPM 35% 41%
SG&A (124,696) (86,502)
EBIT 298,359 341,289 -13%
EBIT Margin 24% 33%
EBITDA 339,217 378,629 -10%
EBITDA Margin 28% 36%
Net Interest Income / (Expenses 922 1,550
FX Gain / (Loss) 4,514 2,303
Derivative Gain / (Loss) (15,788) 27,199
Others (34,786) (6,297)
Profit Before Tax 253,221 366,044 -31%
Income Tax (67,357) (100,173)
Net Income 185,864 265,871 -30%
Net Income Margin 15% 25%