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A. Stotz Investment Research

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ITMG: Double-Digit Dividend Yield in Indonesian Coal

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

Indo Tambangraya Megah / Equity Bottom-Up

<ul><li>Good price momentum, low debt levels, and more attractive to analysts relative to its sector</li><li>Demand should rise over the coming years as coal-fired plants are the main part of the Indonesian government’s 35GW program, which aims to build close to 300 new power plants</li><li>Recently established subsidiaries PT ITM Banpu Power and PT ITM Energi Utama in the power sector likely to be future growth drivers</li><li>Trades at an attractive 17CE* 12.7% ROE/PB versus ASEAN Energy at 7.6% and ITMG is net cash</li><li>Risks: Coal price volatility and production sensitivity to heavy rainfall</li></ul>* Consensus Estimates

Good price momentum, low debt levels, and more attractive to analysts relative to its sectorDemand should rise over the coming years as coal-fired plants are the main part of the Indonesian government’s 35GW program, which aims to build close to 300 new power plantsRecently established subsidiaries PT ITM Banpu Power and PT ITM Energi Utama in the power sector likely to be future growth driversTrades at an attractive 17CE* 12.7% ROE/PB versus ASEAN Energy at 7.6% and ITMG is net cashRisks: Coal price volatility and production sensitivity to heavy rainfall* Consensus Estimates

ITMG: Indonesian Energy Plans to Fuel Mining Growth