PT Vale Indonesia Tbk Reports Fourth Quarter 2011 Net Earnings of US$13.1 million

Jakarta, February 16, 2012 – PT Vale Indonesia Tbk (“PT Vale Indonesia”, “PTVI” or the “Company”; IDX: INCO) today announces its unaudited results for the fourth quarter of 2011 (4Q11). PTVI delivered 15,604 metric tons (t) of nickel in matte in 4Q11. For 2011 and 2010 the Company delivered 66,815 t and 75,839 t of nickel in matte respectively.

Productions for nickel in matte in the third and fourth quarters of 2011 were 18,073 and 13,728 t, respectively. As expected, the Company produced less nickel in matte in the fourth quarter compared to previous quarter due to the rebuild of its Furnace #2 as part of the plan to increase the production. While shutting it down, we had an incident that impacted Furnace #1 and the Company decided to utilize the situation to move forward scheduled maintenance work on this Furnace #1 initially scheduled for late 2012. 

The company operated two furnaces in November and December 2011. The Company recorded an average realized price of nickel in matte of US$14,928 per t during 4Q11, compared to US$17,735 per t in 3Q11. Throughout the year, the Company’s average realized price of US$18,296 pert, was about 10% more than the 2010 average realized price. Sales were US$237.0 million for the three months ended December 31, 2011 and US$290.1 million in 3Q11. Sales in 2011 declined by about 3% compared to the 2010 net sales.
The Company’s total cost of goods sold (COGS) in 4Q11 increased by more than 16% to US$194.1 million from US$166.8 million in 3Q11 mainly due to increases in services and contracts.

Earnings before interest, taxes, depreciation and amortization (EBITDA) totalled US$48.0 million in 4Q11, compared to US$134.2 million in 3Q11. EBITDA in 2011 of US$548.8 million was 19% less than US$677.6 million EBITDA obtained in 2010. Lower net earnings and EBITDA in 4Q11 in comparison to 3Q11 were mainly due to higher COGS as well as lower average realized price during the period. The Company recorded net earnings of US$13.1 million in 4Q11 (US$0.001 per share) compared to US$81.7 million (US$0.008 per share) achieved in the previous quarter. Total net earnings in 2011 of US$333.0 million were 24% lower than net earnings of US437.4 million in 2010.

In 4Q11 the Company used 13,009 kilolitres of diesel fuel at an average cost of US$0.85 per litre while in 3Q11 it consumed 18,492 kilolitres at an average cost of US$0.87 per litre.

In this same period the Company also consumed 425,089 barrels of High Sulphur Fuel Oil (HSFO) at an average cost of US$105.99 per barrel compared to 697,872 barrels at an average cost of US$105.56 per barrel in the previous quarter. PT Vale Indonesia paid interim dividends of US$99.4 million in November 2011. The total dividend payments on a cash basis reached US$244.4 million in 2011. By end of 2011 the Company had nearly US$399 million of cash and cash equivalents.

Production recovery in 2012 and projects to improve competitiveness and support growth agenda

PTVI completed Furnace #1 repair in mid of January 2012. The repair also included maintenance work

DANAMON’S 2011 NPAT REACHED RP 3.3 TRILLION, UP 16% YEAR-ON-YEAR; RIGHTS ISSUE IMPROVES CAR TO 17.5%

PT Bank Danamon Indonesia Tbk (Danamon) today announced a consolidated net profit after tax (NPAT)

of Rp 3.336 trillion for the year of 2011, which is a 16% growth compared to Rp 2.883 trillion in 2010. The

NPAT growth is supported by strong lending growth in the mass market, small and medium enterprises

(SME) segments as well as a rise in fee income. A successful rights issue in 2011 has also strengthened

the Bank’s capital base, enabling a continued expansion.

“Indonesia’s economic resilience, reflected by its ratings upgrade to investment grade amid debt woes in

Europe and slow recovery in the US, created a positive operating environment that enabled us to sustain a

strong lending growth,” said Henry Ho, President Director of Danamon.

Danamon’s loans reached Rp 101.7 trillion in 2011, or a 23% growth compared to Rp 82.7 trillion in 2010.

Mass market loans, which include auto loans, durable goods loans, loans for self-employed mass market and syariah-based gold-backed financing, booked a 26% growth to Rp 59.252 trillion. Mass market loans accounted for 58% of Danamon’s total portfolio.

In 2011, Danamon’s SME and Commercial banking (mid-size) booked a 23% growth in lending to Rp 24

trillion, which represented 24% of the Bank’s loan portfolio. Specifically, SME loans booked 27% growth to

Rp 14.2 trillion, while Commercial Banking recorded 19% in lending growth to Rp 10 trillion. Moreover,

Danamon’s ABF (Assets Based Financing) unit, which offers heavy equipments financing mostly to our midsize customers in mining and agribusiness industries, posted a 59% loan growth to Rp 4.573 trillion.

“The strong loan growth across our businesses is accompanied by prudent and disciplined banking practices. As a result, we manage to press down our non-performing loans,” said Vera Eve Lim, Danamon Director and Chief Financial Officer. At the end of 2011, Danamon’s gross non-performing loan ratio improved to 2.5% compared to 3.0% at the end of 2010.

“In addition to recording a healthy growth in lending, Danamon’s fee income also increased by 24% to Rp

4.131 trillion on the back of higher credit related fees and fees from bancassurance,” continued Vera. Income from credit related fees has grown by 29% to Rp 3.049 trillion, in line with the Bank’s lending growth, while bancassurance fee income rose by 196% to Rp 330 billion, boosted by a strategic partnership with Manulife Indonesia in the third quarter of 2011.

The Bank’s auto financing business through Adira Finance booked Rp 1.511 trillion in NPAT, which is a

13% year-on-year growth. Adira Finance also issued Rp 41.363 trillion in loans throughout 2011, a 35% year-on-year increase, placing Adira Finance as the leader in the industry. Furthermore, Adira Finance is in

a favorable position to continue growing, after a successful Rp 5 trillion fixed rate bonds issuance in 2011. Meanwhile, Adira Insurance, a subsidiary in general insurance business, recorded an NPAT growth of Rp

331 billion or 26% growth versus previous year on the back of a 36% growth to Rp 1.474 trillion in gross

written premiums. As part of its growth strategy, Adira Insurance added 10 outlets in 2011 and is planning

to open 11 more outlets in 2012.

“In 2011, Danamon successfully raised approximately Rp 5 trillion through a rights issue, which further

strengthened our capital base and put us in a good position to pursue further growth,” added Henry. The

rights issue, which recorded a 113% subscription rate, raised the bank’s consolidated capital adequacy ratio

(CAR) from 16% in a year earlier to 17.5% by the end of 2011, which is well beyond the regulatory

requirement of 8%.

“Following a successful rights issue, we have a greater capacity to expand our network further,” said Vera.

In 2011, Danamon and its subsidiaries added 393 branches and outlets to reach out wider areas. Notable

additions in 2011 include 178 new Danamon Simpan Pinjam branches, 103 Adira Finance branches and

outlets, and 42 Adira Kredit branches and points of sales. To support its network expansion, Danamon hired

more than 9,000 employees throughout 2011, created more job opportunities and brought total employees

to 70,949.

Moving forward, Danamon continues to increase its physical presence by approximately 300 more locations

in 2012, including close to 150 Syariah-based gold-backed financing units (‘Solusi Emas Syariah’) in 2012.

Similarly, in 2012, Adira Finance plans to open 112 additional outlets, while Adira Kredit plans to add 59

additional outlets. To complement the Bank’s network expansion, Danamon has also enhanced its internet and mobile banking services. The Bank’s continuous efforts to improve its internet banking service were well rewarded with a large increase in the utilization of ‘Danamon Online Banking,’ which now reaches about 1.5 million transactions per month. This number is expected to grow further.

The Bank’s total funding rose 9% to Rp 88.054 trillion in 2011 from Rp 80.921 trillion a year earlier on the

back of solid growth in its current account and savings account (CASA), which grew by 12% to Rp 36.433

trillion or 41% of total customer deposits. “The growth in CASA is consistent with the Banks’ strategy to

strengthen its funding franchises,” added Vera.

“We continue to invest in funding franchise, among others, through network expansion. We plan to open

close to 70 conventional branches and add approximately 600 ATMs from 2011 until the end of 2012,”

explained Vera.

About Danamon:

PT Bank Danamon Indonesia Tbk. was established in 1956 and as of December 31, 2011 operates over

3,000 branches and points of sales, including its Danamon Simpan Pinjam (DSP) and Syariah units as well

PT Vale Indonesia Tbk Change of Members of the Board of Commissioners

Jakarta, February 17, 2012 – At today’s Extraordinary General Meeting of Shareholders, the
shareholders of PT Vale Indonesia Tbk (the “Company”) approved the appointment of Mr.
Ricardo Rodrigues de Carvalho as the President Commissioner of the Company, replacing
Mr. Peter Poppinga, while Mr. Poppinga remains as a member of the Board of Commissioner
of the Company.
The shareholders of the Company also accepted the resignation of Mr. Tito B. Martins as
Commissioner of the Company. The Board of Directors and the Board of Commissioners of
the Company would like to thank Mr. Martins for his dedication and commitment to the
Company during his tenure.
Based on the foregoing, the current composition of the Board of Commissioners of the
Company is as follow:

President Commissioner Mr. Ricardo R. de Carvalho
Vice President Commissioner and Independent Commissioner Mr. Arief T. Surowidjojo
Commissioner Mr. Takeshi Kubota
Commissioner Mr. Harumasa Kurokawa
Commissioner Ms. Jennifer A. Maki
Commissioner Mr. Gerd Peter Poppinga
Commissioner Mr. Arif S. Siregar
Commissioner Mr. Mark J. Travers
Independent Commissioner Mr. Irwandy Arif

We will comply with any regulatory requirements applicable relating to the changes of the
Board of Commissioners of the Company.
Brief biography of the newly appointed member of the Board of Commissioner of the
Company:
Ricardo Rodrigues de Carvalho became Vale’s Base Metals Director - Asia Pacific & Africa
in January 2012. He was previously appointed as Base Metals Director - South Atlantic in
June 2010 and before that he was appointed as Vale’s Aluminum Department Director in. He
has worked in the Mining and Metals Business for more than 30 years. He also has worked
for 5 years for Votorantim Group in Brazil as Nickel Business Director.
He is currently responsible for managing Vale’s operations in New Caledonia and Indonesia
and also represents the company in Teal Minerals, a Vale and ARM (African Rainbow
Minerals) JV for the Konkola North copper project implementation in Zambia. He was
appointed by Vale to be the President of Vale Nouvelle Caledonie.
As Vale’s Base Metals Director - Asia Pacific & Africa, Ricardo is based in Vale’s
International SA Singapore Branch Office.