Company Presentation First Half 2014 1 Disclaimer These materials - PowerPoint PPT Presentation

PT Toba Bara Sejahtra Tbk ( “ Toba ” ) Company Presentation First Half 2014 1

Disclaimer These materials have been prepared by PT Toba Bara Sejahtra (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 Corporate Events 2 Operational Highlights 3 Financial Highlights 4 Marketing Highlights 5 Appendix 3

Corporate Events 1 4

Events in 1H 2014 Revolving Loan Facility Annual General Meeting of ISO for ABN Signing Shareholders 21 st May 2014: Company held 2013 Shareholders’ Annual General June 2014: Meeting analysis 19 th March 2014: Company Meeting at Bursa Efek Indonesia. OHSAS 18001: 2007 and ISO Main agenda: Approval of 2013 14001: 2004. ABN received ISO signed US$ 75 million financial statements, approval of use 14001 certification : 2004 for revolving loan facility of profit, and appointment of public Environmental Management agreement with BNP Paribas accountant System and OHSAS 18001: 2007 Singapore Branch, Citigroup for Safety System. Global Markets Singapore Assessment/Audit was done by Pte. Ltd., and Standard Lloyd’s Register Quality Assurance Chartered Bank Singapore (LRQA) and accreditation given by Branch UKAS (UK) 5

Operational Highlights 2 6

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

Infrastructure & Operational Capabilities ABN Short Coal Hauling CPP Ramp Up to 6Mn Conveyor for TMU Distance < 5km Tons/Annum (TPA) & Others INDOMINING TMU IM TMU Short Coal Hauling Distance 4km ABN High Built CPP Cap Hauling Road to IM TMU 10 Mn TPA Loading Speed of 1,800 TPH Toba’s Concessions Mine Ops Commenced Underpass at Block 4 Infrastructure Integrate CPP Ops with IM 8

Solid Operating Track Record Yearly Coal Production Mt : In Million Tons • Production volume rose significantly from only ~800,000 TMU IM ABN 7.2 – 7.8 tons in 2008 to ~6.5 mn tons in 2013, booking CAGR growth of 6.5 52.2% over relatively short 5.6 period of 5 years 5.2 • IM and TMU both contributed to 4.0 Company’s 2013 total production’s higher volume 2.0 growth of ~40% and ~260% respectively 0.8 • Stripping Ratio (SR) decreased 2008 2009 2010 2011 2012 2013 2014e from 14.9x in 2012 to 13.4x in Cumulative Production Cumulative Production 2013 resulting in lowered achievement >10 million Achievement >20 mining costs tons million tons Operational Data • TMU’s production solidly 2008 2009 2010 2011 2012 2013 increased from quarterly run- 0,8 2,0 4,0 5,2 5,6 6,5 Production Volume (Mt) rate of ~84,000 tons in 1Q13 to ABN 0,1 1,1 3,1 3,8 4,4 4,2 high of ~420,000 tons in 4Q13 IM 0,7 0,9 1,0 1,4 1,0 1,4 TMU - - - 0,0 0,2 0,9 post earlier-than-expected Stripping Ratio (x) 11,9 10,5 9,9 12,7 14,9 13,4 completion of hauling road from TMU-IM via ABN in 2Q13 Note: 2014e: Toba’s Production target in 2014 9

Company Operational Performance in 1H14 Quarterly Production & Stripping Ratio (SR) Production in Thousand Tons • Quarterly production run-rate of 1.9 2,000 20x mt has been maintained for last 3 15,1x consecutivequarters due to more 13,6x 13,8x 1,500 15x 13,5x 12,7x 12,7x streamlined mining operations • 2Q14 volume reached 2.2 mt, up from 1.9 mt in 1Q14 1,000 10x • Pre-stripping caused SR to rise q- 1,298 1,501 1,802 1,950 1,911 2,160 o-q from 1Q14 to 2Q14 500 5x • SR is expected to normalize in 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 4Q14 Production volume ('000) Stripping Ratio (SR) Production Summary MT: Million Ton 1H13 1H14 Change Comment Production Production volume grew significantly by 45.9% 4.07 2.79 45.9% Volume y-o-y from 1H13 to 1H14 mainly driven by border (Mt) mining at IM and production ramp-up at TMU Sales Volume Sales volume grew significantly in line with 3.85 37.5% 2.80 (Mt) production volume growth SR (x) SR continued to fall resulting in lower mining cost 14.3 13.6 -4.7% 10

ABN Operational Performance Quarterly Production & Stripping Ratio Production in Thousand Tons IM Production volume ("000) Stripping Ratio ABN 1,500 20x 16,6x TMU 14,9x 14,2x 14,1x 15x 13,1x 12,7x 12,6x 1,000 10x PT Kutai Energi 1,225 925 995 1,188 1,101 1,003 1,213 500 5x 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Dump Distance 1.723 1.719 1.864 1.843 1.779 1.894 1.842 (m) Key Highlights  Quarterly production rose from 1 mn mt to 1.2 mn mt in 2Q14, while quarterly run-rate has stabilized at 1.0 – 1.1 mn mt  Higher q-o-q SR from 14.1x to 14.9x in 2Q14 resulted from pre-stripping activity  SR is expected to normalize in 3-4Q14 11

TMU Operational Performance Quarterly Production & Stripping Ratio Production in Thousand Tons IM ABN Production volume ('000) Stripping Ratio 450 400 45x 350 300 35x 250 PT Kutai Energi 200 25x 150 12,7x 11,2x 10,8x 11,7x 100 11,4x 15x 11,1x 10,3x 50 85 84 146 275 420 362 379 0 5x Note: - - - Hauling road 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Key Highlights  Post completion of hauling road at TMU to ABN in 2Q13, production run-rate significantly rose from low of 80-90K per quarter up to average 380K per quarter over last 3 quarters of 4Q13, 1Q14, and 2Q14  SR slightly increased 2.8% q-o-q from 11.4x to 11.7x due to pre-stripping activity. SR dropped y-o-y from 12.7x in 2Q13 to 11.7x in 2Q14 due to better mining operations 12

IM Operational Performance Quarterly Production & Stripping Ratio Production in Thousand Tons 750 20x Production volume ('000) Stripping Ratio ABN 14,7x 13,7x 15x 12,8x 12,8x 12,7x TMU 500 11,2x 9,7x 10x 250 5x PT Kutai Energi 272 278 360 339 425 547 570 0 0x 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Dump Distance 2.284 1.698 1.662 1.728 1.570 1.904 1.751 (m) Key Highlights  Quarterly production run-rate stabilized at 550K in 1Q14 and 2Q14 respectively, up from quarterly run-rate of c.300-350K in 1Q and 2Q13. hence on y-o-y, production volume rose 74.9% from 638K to 1.1 million mt in 1H14  SR fell 6.6% q-o-q to 12.8x in 2Q14 but SR rose on y-o-y basis from 1H13 to 1H14 factoring in higher pre-stripping activity. Pre-stripping is expected to continue in 3Q14 prior to normalizing in 4Q14 13

Financial Highlights 3 14

Evolution of Quarterly FOB Cash Cost from 2012-2014 Quarterly FOB Vessel Cash Cost In US$/ton FOB Vessel Cash Cost 100 17,7x 16,6x 18x 15,1x 80 14,2x 13,8x 13,6x 13,5x 15x 12,7x 12,7x 77 12,0x 73 60 12x 63 59 56 52 52 52 9x 52 51 40 6x 20 3x 67 69 60 57 55 55 53 49 49 52 0 0x 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 FOB Vessel cash cost Adj. FOB Vessel cash cost SR Constant convergence between FOB vessel cash cost and adjusted FOB vessel cash cost underline normalization of SR overquarterly period resulting from more efficient mine operations Notes: (1) FOB Vessel Cash Cost = COGS including royalty and selling &marketing expense – depreciation and amortization (2) Adj. FOB vessel cash costs = COGS, including selling & marketing expense and royalty – depreciation & amortization of exploration & development and excluding deferred stripping cost 15