Malaysia Smelting Corporation Bhd A Global Integrated Tin Mining and

Smelting Group FY 2011 Results Briefing Financial Results for the year ended 31 December 2011 Kuala Lumpur - 2 April 2012

Disclaimer Notice

2

This presentation should be read in conjunction with Malaysia Smelting Corporation Berhad results for 4Q 2011.

The presentation may contain forward-looking statements that involve risks and uncertainties. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and financial information. Such forward-looking statements and financial information are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future.

As these statements and financial information reflect our current views concerning future events, these statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially form these-looking statements and financial information. You are cautioned not to place undue reliance on these forward-looking statements, which are based on Malaysia Smelting Corporation Berhad’s current view of future events.

Contents

3

Pages

1. 2011 Performance Highlights 4 - 12

2. Tin Market Overview 13 - 23

3. MSC Group – Developments & Restructuring 24

4. Closing Remarks 25

Group Production (in tin metal equivalent)

4

• MSC Butterworth smelter operating at full capacity

• Higher production in Rahman Hydraulic Tin as a result of improved operational efficiency and the commissioning of a new palong

• Lower production at PT Koba Tin affected by export moratorium imposed by Indonesian Tin Association and lower tin prices.

(tonnes) 2011 1Q

2011 2Q

2011 3Q

2011 4Q

2011

2010

4Q 2011/ 4Q 2010

( % )

2011 / 2010 (%)

MSC Butterworth smelter

9,473 10,028 12,039 8,727 40,267 38,737 (5.8)% 3.9%

Rahman Hydraulic Tin

452 502 523 533 2,010 1,769 16.6% 13.6%

PT Koba Tin 1,763 1,698 1,553 1,318 6,332 6,644 (16.9)% (4.7)%

Group total * 11,236 11,726 13,592 10,045 46,599 45,381 (7.4)% 2.7%

* Sum of production from PT Koba Tin and Butterworth smelters

• 2011 Group production 46,599 tonnes, up 2.7% from 45,381 tonnes in 2010

2011 Results Highlight

5

FINANCIAL

2011 revenue RM 3,098 million, up 13.1% over 2010

Profit before tax (before unusual items) RM 116 million, up 53.2% from RM 76 million in 2010

Profit after tax (after unusual items) RM 57 million, against a loss of RM100 million in 2010.

Earnings per share 61.6 sen, a turnaround from loss per share of 107 sen in 2010.

Net assets per share increased to RM4.27 end of 2011 from RM3.53 end of 2010.

Pretax return on average shareholders’ funds of 26%, compared with -25% in 2010.

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2011 2010

Revenue RM million

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2011 2010

Earnings per share sen

2011 Results Highlight

6

FINANCIAL

Cash position very healthy at RM 235 million end of 2011, up from RM 119 million end of 2010.

Secondary listing on SGX raised RM100 million.

Net cash generated from operating activities improved from RM56 million to RM209 million in 2011.

Total long and short term borrowings reduced to RM 564 million end 2011 from RM 701 million end 2010.

Hence, reduced gearing at 1.2x end 2011 from 2.3x.

Proposed final gross dividend of 18 sen per share. Together with 12 sen interim dividend, full year dividend is 30 sen (FY 2010 – 3 sen)

This translates into a gross dividend yield around 7% and represents a distribution of 37% of 2011 net earnings.

1.0

1.5

2.0

2.5

Dec-1

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Mar-1

1

Jun

-11

Sep-1

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Dec-1

1

Gearing ( X )

3.53 3.89 4.37 4.60

4.27

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2.0

3.0

4.0

5.0

Dec-1

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Mar-1

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Jun

-11

Sep-1

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Dec-1

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Net assets per share RM

7

1913.1

2276.4

1851.7

2738.8

3098.6

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2007 2008 2009 2010 2011

Revenue (RM Mil)

5 year trend – revenue & profit

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5 year trend – per share values

Financial Highlight – Income Statement

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(RM million) 2011 1Q

2011 2Q

2011 3Q

2011 4Q

2011

2010

4Q 2011/ 4Q 2010

(%)

2011 / 2010 (%)

Total revenue 738 853 907 601 3,099 2,739 (19) 13

Profit / (loss) before tax and unusual items

46 53 52 (35) 116 76 n.m. 53

Unusual items 0 0 0 (25) (25) (154) (24) (84)

Profit / (loss) before tax

46 53

52 (60) 91 (78) 146 n.m.

Profit / (loss) after tax

33 37 42 (56) 57 (100) 100 n.m.

Profit attributable to equity holders of MSC*

28 36 42 (46) 61 (80) 109 n.m.

Earnings per share (sen)

30 36 42 (46) 62 (107) 56 n.m.

* After deducting profit attributable to minority interests

10

Provisions made in 2011

(RM million) 2011

2010

Loss on disposal and impairment for investment in BCD Resources 47.1

Impairment provision for mining asset 56.3

Impairment provision for goodwill arising from acquisition of subsidiaries

5.2

Gain on disposal of investment in PT Tenaga Anugerah (subsidiary of TMR)

(21.0)

Impairment provision for investment in

- Guilin Hinwei Tin 2.0 8.8

- Asian Mineral Resources 6.4 58.1

- TMR 16.6

(Gain) / loss on disposal of disposal group classified as held for sale 0.3

Total 25.3 154.5

Segmental Reporting - 2011

11

(RM million) International Smelting

Tin Mining

(Malaysia)

Tin Mining

(Indonesia)

Others Eliminations / Adjustments

Total

REVENUE 3,091 159 501 1 (654) 3,098

RESULTS

Profit / (loss) from operations

84 59 (29) (1) 3 116

Finance costs (13) 0 (6) (5) - (24)

Share of profit of associates

(1) - - 25 - 24

Profit before exceptional losses

70 59 (35) 19 3 116

Exceptional losses, net (2) - (17) (7) (25)

Profit before tax 68 59 (52) 12 3 91

Income tax (14) (17) (2) 0 (1) (34)

Profit / (loss) net of tax 54 42 (54) 12 2 57

Statement of Financial Position - Summary

12 PRIVATE AND CONFIDENTIAL 12

(RM million) 31 Dec 2011 31 Dec 2010 Increase / (Decrease)

%

Total Assets 1,272 1,220 52 4.3%

Inventories 303 404 (101) (25.0)%

Receivables 309 259 50 19.4%

Cash 235 119 116 97.7%

Total Liabilities 809 912 (103) (11.3)%

ST borrowings 525 618 (93) (15.1)%

LT borrowings 38 82 (44) (53.8)%

Net assets 462 307 155 50.4%

Shareholders funds 427 265 162 61.2%

Net assets per share (RM) Net debt (RM mil) Gearing*

4.27 328 1.2 x

3.53 582 2.3 x

0.74 (254)

21.0% (43.7)% (46.6)%

* Total debt / Total equity

LME Tin Prices

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USD / Tonne 2010 2011

1Q 17,209 29,910

2Q 17,882 28,923

3Q 20,409 24,795

4Q 25,873 20,823

Average 20,447 26,113

4Q average price – 16.0% lower than 3Q 2011 – 19.5% lower than 4Q 2010 – 1.8% higher than 2010 average FY 2011 average price 27.7% higher over FY 2010

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LME stocks and prices, 2001-2012

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tonnes, 3-months price in US$/tonne

Source: ITRI

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According to data compiled by ITRI, of the top five tin producers in 2011, only 2 custom smelters - MSC and Thaisarco reported an increase in production. The Chinese companies showed a mix of gains and losses, while the South American producers achieved lower output.

Overall, Chinese refined tin production in 2011 showed a moderate increase of 4.9% yoy at 155,855 tonnes.

Peru reported the biggest decline, down 16% yoy to 30,000 tonnes, following an enforced cut back in mining rates at its only tin producer Minsur in the first half of last year.

In Indonesia, PT Timah and PT Koba, the two integrated Indonesian producers, both reported lower production partly because of the tin export moratorium which took effect from the beginning of 4Q.

Total shipments in 4Q during which the export halt was effective were down 11% compared to 4Q a year ago. Despite the supply disruption, Indonesia still managed to show a 4% increase in export for the full year of 2011 to 96,020 tonnes. 2012 YTD, exports have gradually normalised with 5,380 tonnes in January (-27% yoy) and 8,325 tonnes in February (+35% yoy)

LME tin stocks currently at around 12,500 tonnes have fallen to the lowest level since 2009 due largely to the arbitrage trade in China.

Tin Market Overview

Source: CRU, ITRI

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ITRI estimated that more than 20,000 tonnes of tin metal had probably been imported by China between August 2011 and January this year. This has caused the Chinese market to be temporarily oversupplied and is closing the price differential between LME and China.

The return of investment funds buying into base metals was the main driving force behind higher tin prices in 1Q. Tin is among the best performing metals gaining about 25% year to date.

Volatility in commodity markets is likely to persist as the European sovereign debt crisis and general weakness in the manufacturing sector across key markets are expected to weigh on sentiment.

In general, demand is still expected to be stable. ITRI forecast a modest 1.6% gain in consumption for 2012.

MSC maintains that long term prospects of the industry remain intact and concurs with ITRI’s view that a modest pick up in demand combined with continuing supply challenges will tweak market balance to a small deficit of around 12,000 tonnes this year.

The Group will continue to capitalize on the positive global tin market fundamentals to expand its business and enhance our pre-eminent position in the industry through new investments.

Tin Market Overview – (2)

Source: CRU, ITRI

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Source: ITRI

Leading Tin Companies

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Source: ITRI

World Supply / Demand Balances in Refined Tin

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Tin use in China stronger

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2000 2002 2004 2006 2008 2010

China Rest of world

’000 tonnes

Source: ITRI

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Tin technology opportunities

0 5,000 10,000 15,000 20,000

Others

Brake pads

Fire retardants

Fuel catalysts

Stainless steel

Lithium ion batteries

Lead-free electronics

Potential use tpy (medium term)

Source: ITRI

21

Source: ITRI

World Production and Consumption of Refined Tin

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China a net importer again

-3,000

-2,000

-1,000

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Calculated trade balance in refined tin, tonnes

Exports deduced from third countries’ imports – data incomplete from June’11

Net Imports

Net Exports

Source: ITRI

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Indonesia production has fallen

’000 tonnes

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1980 1985 1990 1995 2000 2005 2010

Mined Refined

Note: refined production excludes metal re-refined in other countries

Source: ITRI

MSC Group – Developments & Restructuring

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• PT Koba Tin entered into a strategic Alliance Agreement with Optima Synergy Resources Ltd; in the process of seeking a 10 year extension of CoW from 2013.

• Rahman Hydraulic (RHT) increases royalty payment from 2.5% to 5% to the State of Perak and secured extension of mining leases to year 2030 in return.

• MSC Butterworth smelter – further efficiency improvements for additional refining capacity. Amount spent on upgrading works up to Feb 2012 is RM 7.7 million.

• Plans to increase production :-

• PT Koba Tin – turnaround and restructuring

• Rahman Hydraulic Tin – mining pit optimisation and increase in processing facility

• Restructuring of all Indonesian operations : PT Koba Tin, PT MSCI, PT Bangka Resources, TMR (PTTA)

• Enhancing efforts to increase tin resources and sustain production through investments in exploration and acquisition of new and existing mining projects in Malaysia, Indonesia and DR Congo.

• Integrated capabilities / focused business strategy – A unique tin player

• Continuing efforts to divest remaining non-tin assets at acceptable price :-

− granted Pala Investments a right of first refusal over MSC’s holdings in AMR.

− KM Resources (30% owned) generated US$48 mil net profit, vs. US$18 mil in 2010.

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Closing remarks

Malaysia Smelting Corporation Berhad

A Global Integrated Tin Mining and Smelting Group

THANK YOU