Company Presentation Full year 2016 Disclaimer These materials have - PowerPoint PPT Presentation

PT Toba Bara Sejahtra Tbk ( “ Toba ” ) Company Presentation Full year 2016

Disclaimer These materials have been prepared by PT Toba Bara Sejahtra Tbk (the “Company”) . These materials may contain statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances. These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice. 2

Table of Contents 1 Company Profile 2 Performance Highlights 3 Strategy to Venture into Power 3

Performance Highlights Performance Highlights 2 Company Profile 1 4

Toba Bara Sejahtra In Brief Toba Bara Sejahtra (Toba) has 5 (“five”) subsidiaries engaged in: Coal Mining Plantation  Location: Kutai, Kalimantan Timur  Hak Guna Usaha (“HGU”) covers 8,633 ha, where 2,701 ha has been planted  CPO mill ready for operation in 2016, with capacity of 30 tons FFB per hour  Location: Kutai Kartanegara, Kalimantan Timur  Total Concession: 7,087 ha Power Generation  JORC-compliant proved and probable reserves of 147 MM tons and measured, indicated and inferred resources of 236 MM tons  Coal brands with mid to upper range calorific values  GLP established in February 2016 for development of ranging from 4,700-5,800 Kcal/kg GAR steam (coal) fired power plant project (“CFPP") with capacity of 2x50 MW and TBE in December 2016 for  Prime location provides operational cost edge to investment in Power Business grow as a logistical & operational center for the area  25 year Power Purchase Agreement (“PPA”) through Independent Power Producer (“IPP”) scheme with PLN as single offtaker 5

Ownership Structure Highland Strategic Davit Togar PT Bara Makmur PT Sinergi Sukses PT Toba Sejahtra Roby Budi Prakoso Public *) Holdings Pte. Ltd. Pandjaitan Abadi Utama 61.79% 10.00% 0.75% 6.25% 5.10% 3.64% 12.47% *) Incl. Baring Private Equity as anchor investor 99.99% PT Toba Bumi Energi ( “ TBE ” ) 80.00% 99.60% 90.00% 51.00% 99.99% 99.99% PPA with PLN (1) for 25- 20-year Production IUP-OP extension was 13-year IUP-OP expires Plantation permit of PT Investment in Power Operation Mining Permit completed in March in December 2023 Perkebunan Kaltim year contract Business ( “ IUP-OP ” ) expiring in 2013 (First out of 2 Utama I (PKU) expires License December 2029 extensions: in 2023, in 2036 with tenor of 10 years IUP-P for downstream each) processing 2,990 ha 683 ha 3,414 ha ~60 ha 8,633 ha (Right to Use N/A Area Land) Off- take (“take or pay”) Reserves: 117 MT - JORC Reserve: 22 MT - JORC Reserves : 8 MT - JORC Planted Area: 2,701 ha N/A Reserve by PLN for 25 years Resources: 156 MT - JORC Resources: 37 MT - JORC Resources: 43 MT - JORC • On 25 th January 2017, PT Toba Sejahtra (“TS”), the majority shareholder of PT Toba Bara Sejahtra Tbk (“Company”) with 71.79% divested majority 61.79% share ownership to new shareholder, Highland Strategic Holdings Pte. Ltd. (“HSH”) • HSH is a Singapore-based investment company, mainly focused in the energy sector • With HSH and TS sharing the same business alignment, HSH is expected to add further value to the future development of the Company Note: 6 1. PLN: PT Perusahaan Listrik Negara (Persero)

Strategic Mine Locations TMU – IM Major Transhipment Jetty City Hauling Road Point Muara Berau Major city to north Samarinda is less than 50 km Distance from pit to jetty, with closest one ~55 km ~5 km and furthest ~25 (total ~120 km) km IM ~5 km ABN 25 km IM jetty TMU Close proximity to Makassar Strait ABN jetty jetty and Kutai Energi transhipment point of Muara Jawa Adjacent locations for all 3 mines Balikpapan ~65 km Muara Jawa Toba owns all infrastructures (coal processing plant, overland conveyors, and jetties), giving significant 7 operating leverage vs other concessions in surrounding areas

Infrastructure & Operational Capabilities Short Coal Hauling CPP Capacity : 6 Mn Conveyor to Jetty Distance < 5km Tons/Annum (TPA) Short Coal Hauling IM Distance ~4km TMU ABN High Built CPP Cap up to 10 Mn TPA TMU Hauling Road to Connect with ABN Overland & Barge Loading Jetty: Speed of 1,800 TPH Toba’s Concessions Note : PT Adimitra Baratama Nusantara (ABN) PT Indomining (IM) ROM Stockpile 8 PT Trisensa Mineral Utama (TMU)

Performance Highlights 2 9

2016 Performance Focused on profitable production output based Δ % Operational 2015 2016 on mine plan through optimization of :  Infrastructure and connectivity sharing NEWC Index US$/ton 59.2 66.0 11.5% (hauling road, coal processing plants (CPP), & ASP US$/ton 54.8 45.4 (17.2)% jetties) among Group mines mn ton Production Vol 6.1 5.5 (9.8)%  Joint mine plan between three adjacent mines Sales Vol mn ton 6.4 5.7 (10.9)% and contractors (1) Stripping Ratio x 12.3 12.9 4.9%  Competitive coal pricing driven by strong coal branding from consistency in scheduled Δ % Financial 2015 2016 delivery/product quality and securing term contracts using mostly fixed price Sales US$ mn 348.7 258.3 (25.9)%  Diversified customer base and export EBITDA (2) US$ mn 53.7 39.2 (27.0)% market base through suitable mix between FOB Cash Cost (18.2)% US$ mn 42.2 34.5 end-users and traders, and more evenly spread Net Profit US$ mn 25.7 14.6 (43.2)% stable demand markets respectively 8.5 EBITDA/Ton US$/ton 7.1 (16.5)% EBITDA Margin 15.4% 15.2% Note: (1) As per September 2016, all three Group mines of ABN, IM, and TMU have mining contracting cooperation with Cipta Kridatama (CK) to improve further cost efficiency through economies of scale and better mine planning EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization (2) 10

Production Profile Amidst the coal price volatility over the past several years and to sustain the Company’s survival mode, Toba has undergone cost efficiency initiatives on consistent basis as shown by stable EBITDA margin EBITDA Margin Toba Consolidated NEWC Price Hauling road completed in May 2013 facilitated 2014 production ramp-up 32,9% 30,1% Stable 15,4% 15,2% 13,9% 13,5% 10 140 margin 5,7% 9 8,1 Mt 120 8 $99 $97 $121 100 6,5 Mt 7 6,1 Mt 5.0-6.0 Mt 5,6 Mt 5,5 Mt 6 $71 5,2 Mt 80 5 $85 $65-70 4,1 Mt 60 4 $66 $59 3 40 2 20 1 0 0 2010 2011 2012 2013 2014 2015 2016 2017 est. 11 Source: Coal price from GlobalCoal

Case study: Project Execution at TMU 2012-2013 Case Study: TMU Ramp-Up in 2014  TMU was unable to boost output due to logistical disadvantage of dependence on 3 rd Situation Hauling road completed party facility and subject to high tariff in May 2013 Seize dependence on 3 rd party facility and  8.1 look to internal integration via hauling road 6.5 construction to connect ABN and utilize IM’s Solution CPP and Jetty 5.6  Construction initiated end-2012 and targeted for completion June 2013  Hauling road was completed in May 2013, ahead of schedule in June 2013 Achievement  Logistics cost fell translating to lower cash cost 8.1  0.9 Production ramp up became viable 0.2 2012 2013 2014 TOBA 5.6 6.5 8.1 Production ABN 4.4 4.2 4.4 (Mn tons) IM 1 1.4 2.3 TMU 0.2 0.9 1.4 12