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Corporate

Presentation

PT ANTAM (Persero) Tbk

CIMB Conference - Bali


May 2017
Disclaimer
This presentation contains "forward-looking" statements that are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company
will operate in the future and are not a guarantee of future performance. The future events referred to in these statements involve known and unknown risks, uncertainties and other factors, some of which are
beyond the Company's control, which may cause the Company's actual results, performance or achievements, or general industry results to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation
to update or revise any of them, whether as a result of new information, future events or otherwise. The Company and the Agents, and their affiliates, advisers and representatives do not make any
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 of many possible
scenarios and should not be viewed as the most likely or standard scenario. Accordingly, you should not place undue reliance on any forward-looking statements.

This presentation also contains certain statistical data and analyses (the Statistical Information) which have been prepared in reliance upon information furnished by the Company and other sources.
Numerous assumptions were used in preparing the Statistical Information, which assumptions may or may not appear herein. No assurance can be given as to the Statistical Informations accuracy,
appropriateness or completeness in any particular context, nor as to whether the Statistical Information and/or the assumptions upon which it is based reflect present market conditions or future market
performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial, accounting or investment advice.

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Table of contents

Quick Updates

Company Overview

Operational and Financial Highlights

Commodities Outlook

Main Projects

Establishment of Mining Industry Holding SOE

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Quick Updates of ANTAM
Relaxation of Indonesias Mineral Export Ban: ANTAM Secured 2.72
1 million wmt of nickel ore and 850,000 wmt of bauxite ore export permits

First piling ceremony of East Halmahera Ferronickel Plant


2 Development Project

3 2016 Ferronickel Production and Sales Reached All Time High

ANTAMs Gold is Available for Purchase in 102 Post Offices


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Throughout Indonesia

Strategic alliance agreement with Newcrest to gold and copper


5 exploration in West Java, East Java, South Sumatera, Nusa
Tenggara, North Sulawesi, Halmahera and Mollucas Islands

6 Commissioning of Integrated Operations of Pomalaa Ferronickel


Plant Expansion Project

7 Innovation in Gold Business: Gold with Batik Motifs, BRANKAS,


Jewelry Products

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Creation of Mining Industry Holding SOE

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Company Overview
ANTAM at A Glance
Company Description 1Q17 Sales Breakdown
ANTAM is one of the largest listed diversified metals and Ferronickel
mining companies in SEA with vertically integrated Bauxite, 22%
operations Alumina,
Coal &
The Company is export oriented with main markets in South Nickel Ore
Korea, China and India 4%

ANTAMs main commodities are nickel ore, ferronickel, gold,


Gold, Silver
silver, bauxite, alumina, coal and precious metals
& Precious
processing services Metal
Refinery
ANTAMs exploration and operation properties are spread Service
throughout Indonesia 74%
ANTAM is a state-owned enterprise which is 65% owned by
the Government of Indonesia. The Company is listed on the 1Q17 Sales Destination
IDX and ASX
ANTAM undertakes all stages of the mining and processing Export
process, including exploration, mining, smelting, refining and 49%
marketing in relation to nickel ore, ferronickel, gold, silver,
alumina, other precious metals and coal
Domestic
ANTAM is completing its key processing development
51%
projects, as follows:
Pomalaa Ferronickel Plant Expansion Project
East Halmahera Ferronickel Plant Development Project
Mempawah Smelter Grade Alumina Refinery Project
Anode Slime & Precious Metal Refinery Project

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Integrated Mining Company with Diversified Portfolio of
Processed Metals
Upstream and Downstream Operations

Nickel Gold Bauxite


Upstream

Pomalaa Nickel Buli Nickel Mine Pongkor and Cibaliung Tayan Bauxite Mine
Mine Gold Mines
Downstream

Pomalaa Pomalaa Ferronickel East Halmahera Tayan Chemical Mempawah Smelter


Ferronickel Plant Precious Metals Anode Slime &
Ferronickel Plant Expansion Grade Alumina Plant Grade Alumina
Development Processing and Refinery PMR Project
Plant Project Refinery Project
Project
Finished Product

Ferronickel Gold Alumina

ANTAM is uniquely positioned as a vertically integrated mining company with diversified products
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ANTAMs Finished Products
PRECIOUS METAL

Minted bar & Batik motif Dinar & Dirham coins Casting based products

Stamping based products Industrial products Gold articles Jewelry

CHEMICAL GRADE ALUMINA FERRONICKEL

Specialty & Hydroxide Alumina Ferronickel Shot


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Assets in Operation

Tayan Chemical PT Nusa Halmahera


Sarolangun Coal Learning & Geomin Tayan Bauxite Mine Grade Alumina
Mine Development Exploration Unit Minerals*
Plant

Precious Metal
Pomalaa Nickel Pomalaa
Cibaliung Gold Mine Pongkor Gold Mine Processing and Buli Nickel Mine
Mine Ferronickel Plant
Refinery

*ANTAM owns 25% of PT Nusa Halmahera Minerals with the remaining owned by Newcrest Mining Ltd.

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Reserves and Resources
Vast Nickel Ore Large Bauxite Ore Substantial Gold Ore
Reserves and Resources(1) Reserves and Resources(2) Reserves and Resources(3)
(million wmt) (million wmt) (million dmt)

589.5 589.5
9.7
954.1

857.8 8.6

4.3

2.9 3.1 3.3

131.1 131.1
111.4 111.3
164.3
130.5
72.5 81.1

2015 2016
2015 2016 2015 2016
Reserves Resources Avg. Mine Life (yrs) Reserves Resources Avg. Mine Life (yrs) Reserves Resources Avg. Mine Life (yrs)

Long reserves life with robust growth outlook from large undeveloped resource base
Based on Competent Person Report as of 31 December 2015 and 2016, JORC Compliant
(1) Approximately 75-90 wmt of nickel saprolite is required to produce 1 ton of nickel contained in ferronickel. Mine reserves life
takes into account current ferronickel production of 27,000-30,000 tonnes of contained nickel in ferronickel (TNi) with saprolite
nickel ore feed.
(2) Approximately 850,000 wmt of washed bauxite is required to produce 300,000 tons of chemical grade alumina. Mine reserves
life does not take into account bauxite resources.
(3) Assuming 64,301 oz (2 tons) of annual gold production. Mine reserves life does not take into account gold resources.

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Operational and Financial
Highlights
Production and Sales
Ferronickel Nickel Ore (1)
(TNi) (000 wmt)
24,100
24,100
7,270
19,747 20,293 20,888
18,643
16,851 17,211
735

4,357 2,625 1,654 1,635


2,9342562 1,259
734 526
215 46 7,271 201 51

2014 2015 2016 2017E 1Q16 1Q17 2014 2015 2016 2017E 1Q16 1Q17

Production Sales Production Sales

Gold Bauxite
(kg) (000 wmt)
14,179

291
11,351
10,227 700
9,978

267 290
241
2,907 201 182
2,342 2,210 2,207 2,270 2,128
61 93
479 594 53 47 45

2014 2015 2016 2017E 1Q16 1Q17 2014 2015 2016 2017E 1Q16 1Q17

Production Sales Production Sales

(1) Does not include production and sales related to mineral ore export which is currently being calculated.

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Financial Performance (1)
Net Sales (Rp Trillion) Cost of Goods Sold (Rp Trillion)

10.53 10.34
9.42 9.11 8.63 8.25

1.98 1.65 1.87 1.57

2014 2015 2016 1Q16 1Q17 2014 2015 2016 1Q16 1Q17

Gross Profit (Rp Billion)


Net Profit (Loss) (Rp Billion)

852
793

65 5.29 6.63

195
109 83
(744)
2014 2015 2016 1Q16 1Q17

(1,441)
2014 2015 2016 1Q16 1Q17
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Financial Performance (2)
Cash & Cash Equivalents (Rp Trillion) Total Asset (Rp Trillion)

30.36 29.98 29.85 30.30

8.08 7.62 7.82 22.00


7.15

2.62

2014 2015 2016 1Q16 1Q17 2014 2015 2016 1Q16 1Q17

Total Liabilities (Rp Trillion) Total Equity (Rp Trillion)

12.04 11.57 11.89 18.32 18.41 18.33 18.41


11.52
9.95

12.05

2014 2015 2016 1Q16 1Q17 2014 2015 2016 1Q16 1Q17

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Selling Prices and Cash Costs

FERRONICKEL GOLD
US$/lb. US$/oz.

7.74 1,694.89
7.67
1,523.23
6.65
1,277.90
6.9 1,265.66
6.32 5.48
1,215.69
4.97
4.57

4.32 830.27 855.91


808.06 802.93
722.59
3.41
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
ASP Cash Cost ASP Cash Cost

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Excellent Operator and Low Cost Producer of Processed
Metals
Excellent operations puts ANTAM as the Second Lowest Cost FY16 Ferronickel Cash Cost
Ferronickel Producer US$ 3.41 /lb.
Royalty &
Others Tax 1%
Ferronickel Producer Cash Cost League
Cash Cost (US$/lb.)

10%
Marketing Fuel
12.00 7% 28%

10.00 Plant Cons. Ferronickel


9% Cash Cost

8.00 Labor
11%
Ore Feed
Services
6.00 11%
23%

4.00 3.41 FY16 Gold Cash Cost


US$802.93 /Oz.

2.00 Royalty & Tax


5%
Others Labor
8% 17%
0.00
PT Aneka - Pomalaa

Depreciation Gold Material


38% 20%
Cash Cost

Source : Wood Mackenzie Services


20%

Excellent operations has led ANTAM to be one of the lowest cost nickel producers globally

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Share Price, Nickel Price and Gold Price Movement

As of 2 May 2017

1,600 10

9
1,400
Share & Gold Price

8
1,200

Nickel Price
7
1,000
6

800 5

4
600
3
400
2
200
1

- 0

ANTAM (Rp/Share) Gold (US$/Troy Ounce) Nickel (US$/lb)

Price as of Price as of
31 Dec 2016 2 May 2017
ANTM Rp895/share Rp685/share
Gold US$1,152/troy ounce US$1,255/troy ounce
Nickel US$4.52/lb US$4.29/lb
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Commodities Outlook
Nickel Outlook
Latest Development Nickel Refined End Use 2016

Nickel price chart shows uptrend movement since the Global Ni Consumption
beginning of 1Q17. During 1Q17, Nickel price has 2016 = 2M Tons
Batteries &
increased 1.10% to US$4.51 per lb. from US$4.46 per lb. Others Stainless
6% Steel
at the beginning of 2017 69%
Foundry
In early 2017, the Indonesian Government eased mineral 3%
ore export ban policy under certain conditions. For nickel, Plating
miners must dedicate at least 30% of the smelter capacity 7%
to process low grade ore, defined as below 1.7% Ni.
Alloy Steel
Exports would be allowed for up to five years and would 5% NF Alloy
be restricted to volumes decided by the government. 10%
Source: Wood Mackenzie
The Philippines government has suspended and closed
Outlook of Nickel Price & Refined Nickel Consumption
several nickel mines due to environmental issues, with
estimation of nearly 50% of total Philippines nickel ore

Nickel Cons. (MTons)


Nickel Price (US$/lb)
6 2.4
production lost.
5
Higher nickel demand is expected due to limited 2.2
availability, translating into higher premium and lower 4
discount. The rapid expansion of NPI & Stainless Steel
3 2
Chinese capacities activities and the expectation of higher
spending for US infrastructure also helps to contribute to 2
higher nickel demand. 1.8
1
Domestic nickel ore demand in Indonesia starts to grow
0 1.6
inline with the operations of domestic private nickel
2015 2016 2017E
smelters
Nickel Price Nickel Consumption

Source: Bloomberg & Wood Mackenzie


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Gold Outlook
Latest Development Gold End Use 2016

Gold price shows uptrend movement since the beginning Industrial Global Au Demand
of 1Q17. During 1Q17, Gold price has increased 8.86% to 7% 2016 = 4,308 Ton
US$1,249 per oz. from US$1,158 per oz at the beginning Investment
12% Bar & Coin
of 2017 24%

Higher gold price is largely due to limited gold supply

The higher US interest rate will also impact gold price.


Central Bank
Deposit
ANTAM has signed partnership agreement with PT Pos Jewellery
48% 9%
Indonesia (Persero) to boost domestic gold sales. Under
the agreement, 109 post offices will serve as ANTAMs Source: World Gold Council
gold distribution channels, covering Java, Madura, Bali,
Outlook of Gold Price & Global Gold Demand
West Nusa Tenggara and East Nusa Tenggara area.

Gold Price (US$/oz)


ANTAM continues to innovate in its gold business through 1400 4400

Demand (Tons)
the launch of LM jewellery products. The products are 1200 4350
available in necklaces and bezels with four line of product 1000
series. 4300
800
4250
The launch of jewellery product will compliment a series 600
of ANTAM innovative gold product which previously 400
4200
launched such as gold with batik motif products and
200 4150
customized depository service of BRANKAS (Corporate
BRANKAS, BRANKAS Berzakat and Individual 0 4100
BRANKAS). 2015 2016 2017E

Gold Price Gold Demand

Source: Wood Mackenzie, World Gold Council

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Bauxite Outlook
Latest Development Alumunium End Use

Bauxite is the main raw material for aluminium. Long term Global Al Demand
Others 2016 = 58,16 Mil.Ton
aluminium demand is expected to remain solid due to 5% Transport
growth in the transportation and construction sector. 27%
Construction
Consumers 25%
Under the new mineral ore export regulation, bauxite with Durables
an alumunium oxide content of at least 42% may also be 5%
exported in certain amounts. Exports would be allowed for
Machinery
up to five years and would be restricted to volumes 9%
decided by the government. Foil &
Electrical Packing
For industrial application, bauxite ore is processed into 14% 15%

refined alumina products such as Smelter Grade Alumina Source: Statista, Bloomberg
(SGA) and Chemical Grade Alumina (CGA).
Outlook of Aluminium Price & Global Aluminium Demand

Since 2015, ANTAM through PT Indonesia Chemical 2000 60

Al Demand (MTons)
Al Price (USD/Ton)
Alumina (ICA) is processing its bauxite deposit into CGA
which is used as water purification agents, refractory 1600
59
materials, electronic components and other high tech
products. 1200
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SGA is the raw material for aluminium plants such as PT 800
Inalum (Persero)s aluminium plant in Kuala Tanjung.
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ANTAM and INALUM have signed a joint venture 400
agreement on the development of SGA Refinery Plant.
0 56
2015 2016 2017E

Al Price Al Demand

Source: Bloomberg & Wood Mackenzie

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Main Projects
Main Projects Under Development
East Halmahera Ferronickel Plant Development Project
Anode Slime & Precious Metal Refinery (PMR) Project
(P3FH)
Anode slime processing Nickel processing to ferronickel
Capacity: Facility is planned to have processing capacity of Capacity: Line 1: 13,500 TNi pa capacity, from Stage I
approximately 6,000 tons of anode slime pa capacity of 27,000 TNi pa
Est. project cost: TBA Est. project cost: Rp3.5 trillion for Line 1 without power plant
Status: MoU signed with PT Freeport Indonesia & PT Smelting Status: Construction
FS review First piling ceremony was held on April 25, 2017
Finalization of related agreements between ANTAM - Est. completion: 2018
PT Freeport Indonesia - PT Smelting
Est. completion: 2019

Mempawah Smelter Grade Alumina Refinery (SGAR)


Pomalaa Ferronickel Plant Expansion Project (P3FP)
Project
Bauxite processing to smelter grade alumina (SGA) To increase ferronickel production capacity from 18,000-20,000 TNi pa
Est. project cost: TBA to 27,000-30,000 TNi pa
Capacity: 1 million tons of SGA pa (Stage 1) Est. project cost: US$600 million
Status: JV company was formed with PT Inalum (Persero) Status: Completion of the eight packages was completed in
Signed MoU with PT Pelindo II (Persero) on the 2016 and commercial operations to occur in 2017
development of Mempawah port. Est. completion: 2017
Est. completion: 2019

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Capex Plan
(in Rp Billion)

2,823.82
7.78
2,555
2,346.68 78.63
154.31
2,013.80
47.14

2,552.14
2,072.59
1,708.64
1,740.24 988.25
17.16
326.58
719.51 310.85
1.41 1.30
483.74 403.78 262.53 260.31
263.91 226.43 251.58
62.64 49.24
2013 2014 2015 2016 2017E 1Q16 1Q17

Routine Development Deferred Expenses

ANTAMs capex plan reflects prudent financial management amidst commodity price volatility

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P3FH Model

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P3FH Power Plant Model

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Progress of P3FH

1st Piling Ceremony held on April 25, 2017

Soil Soil
Investigation Resistivity
Activity Investigation

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Mempawah SGAR Plant Layout
Legend :

1. Bauxite & Coal Storage


2. Coal Power Plant
3. Digester
4. Precipitation
5. Alumina Storage
6. ATH Storage
7. Calciner
8. Office

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Mempawah Port Layout

Rencana lokasi
pembangunan Pelabuhan
Internasional Kijing

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Progress of Mempawah SGAR Project

Land Leveling in Land Clearing in


Mining Area Mining Area

Drainage
Prepraration Land Leveling in
Works in Mining Plant Site
Site

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Progress of Anode Slime and PMR Project

MoU Signing with PT Smelting


& PT Freeport Indonesia
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Corporate Social Responsibility (CSR) Programs

Distribution of CSR Funds

Rp Billion

75
72 CD PK BL
70
68
63 64

10 9.73 8.45

2 2.35 3.21
1 0.06 0.16

2014 2015 2016 1Q16 1Q17

ANTAMs CSR Program is comprised of 4 programs: Community Development (CD), Partnership


Program (PK), Environment Stewardship Program (BL) and Environmental Management Program (ENV)

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Thank You

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