Company Presentation March 2014 1 Disclaimer These materials have - PowerPoint PPT Presentation

PT Toba Bara Sejahtra Tbk ( “ Toba ” ) Company Presentation March 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

Content 1 Corporate Profile 2 Investment Highlights & Growth Strategies Business Overview 3 Performance 4 5 2014 General Guidance 6 CSR & Environmental Highlights 3

Corporate Profile 1 4

Toba in Brief Toba specializes in thermal coal production and comprises three operating subsidiaries: Adimitra Baratama Nusantara (ABN), Indomining (IM) and Trisensa Mineral Utama (TMU ), which hold adjacent concession areas located in East Kalimantan, Indonesia Substantial and diversified thermal coal Strong growth profile & upside potential reserves and resources o Produced 5.6 MM tons of coal in 2012 and grew to produce around 6.5 MM tons of coal in 2013 o JORC-compliant proved and probable reserves of 147 MM tons and measured, indicated and inferred o Prime location provides operational cost edge to resources of 236 MM tons grow as a logistical & operational center for the area o Continued exploration effort to increase our Reserves o Coal brands with calorific values ranging from and Resources. Current reserves only account for 52% 4,700 - 5,800 Kcal / kg GAR of total area, hence vast area remains unexplored Revenue (1) EBITDA (1) Reserves Resources % % % % TMU TMU 5% 6% TMU TMU 6% IM IM 18% IM 15% 14% 22% IM 16% ABN ABN ABN ABN 80% 66% 78% 74% Total: US$ 422 Million Total: US$ 59 Million Total: 147 MM Tons Total: 236 MM Tons Note: (1) Revenue and EBITDA as per 2013 results 5

Ownership Structure PT Toba Sejahtra ( “ TS ” ) Davit Togar Pandjaitan (1) PT Bara Makmur Abadi PT Sinergi Sukses Utama Roby Budi Prakoso Public 3.6% 71.8% 0.8% 6.2% 5.1% 12.5% ABN Minorities 49.0% 99.99% (2) PT Toba Bumi Energi ( “ TBE ” ) 51.00% 99.99% (2) 99.99% (2) 90.00% • Plantation permit expires in 2036 • 20-year Production • IUPOP expires in June 2013 • 13-year IUPOP expires in December Operation Mining Permit 2023 • IUPOP was converted from KP in ( “ IUPOP ” ) expiring in • IUPOP was converted from a KP in 2010 License December 2029 2010 • IUPOP extension was completed • IUPOP was converted from in March 2013 (First out of 2 Kuasa Pertambangan extensions: in 2023, with tenor of ( “ KP ” ) in 2009 10 years each) Area • 2,990 ha • • 3,414 ha • 8,633 ha (Right to Use Land) 683 ha • Reserves : 8 MT - JORC and • Reserves: 117MT- JORC • • Planted Area: 2,896 ha Reserve: 22 MT- JORC Reserve additional 7 MT of internal estimate • Resources: 156MT- JORC • Resources: 37MT- JORC • Resources: 43 MT- JORC Notes: 1. Son of TS founder, Luhut B. Pandjaitan 2. Figures are rounded off 6

Majority Shareholder Toba believes it benefits from Toba Sejahtra’ s experience in the Indonesian coal sector as well as its leadership and experience Controlling Shareholder with Established Track Record … Helmed by an Experienced Leader • General (Ret.) Luhut B. Pandjaitan is the key shareholder and founder of Toba Sejahtra Group. He is currently the chairman of TS • Mr. Luhut had a long and illustrious career in the civic service before turning to the commercial sector. Over the course of thirty years in the Army Special Forces, Mr. Luhut rose to become a four-star general Coal Mining Power Other Industry – In 1999, Mr. Luhut retired from the military service to serve as • • PT Toba Bara • PT Pusaka PT Tritunggal Ambassador for the Republic of Indonesia to Singapore Jaya Palu Sejahtra Tbk Sentra Buana – In 2000, he was appointed Minister of Industry and Trade of the Power (Palm Oil) • PT Kutai Republic of Indonesia • PT Toba • PT Energi Pengembang • Thereafter, Mr. Luhut applied his knowledge and leadership skills Kartanegara Sejahtra Energi to establish TS in 2004, building it from the ground up into a (Property) Perkasa major business group with interests in energy oil and gas, power • Others and agribusiness Established in 2004, PT Toba Sejahtra is a fast growing Indonesian enterprise with industries, ranging from Energy Sector such as Natural Resources, Power, and Agriculture (Palm Oil) to Property 7

Key Milestones since Inception Strong track record of acquisitions, development of greenfield mines, rapid production ramp-up and experience to adjust operation in a down-market 2007 2009 2011 2013 • IM commenced • ABN & IM production • IM successfully • TMU commenced production production at reached 2m tons extended IUPOP • Toba production hit 5m tons 200k tons until 2023 2007 2008 2009 2010 2011 2012 2013 2008 2010 2012 • Toba acquired the minorities ’ • ABN commenced • TS acquired the remaining share for IM production at 100k tons from minority shareholder shares in TBE and TMU • IPO/Listed on IDX, 6 th July 2012 • Toba underwent • Toba acquired 51.0% of ABN, 52.5% of TBE (IM ’ s shareholding company) and operational adjustment due • Eliminated overlapping issues with to drop in coal market 51.0% of TMU plantation company (PKU) • Toba production hit 4m tons Initial Public Offering 06 July 2012 Listed on IDX Number of Shares Offered 210,681,000 shares or 10.47% IPO Proceed IDR 400,293,900,000 Anchor Investor Baring Private Equity Asia (8% at IPO) TOBA Ticker Code 8

Investment Highlights and Growth Strategies 2 9

Prime Location Gives Significant Cost Advantage (i) Major City Jetty Muara Transhipment Point Berau TMU - IM Hauling Road Major city is less than 50 Furthest pit to km jetty 25km | with Samarinda closest one ~5km ~55 Km Sungai Mahakam (total ~120 Km) Close proximity 17km ~ 5 km IM transhipment ABN Makassar Strait point & jetty ABN IM Jetty TMU ABN Jetty Kutai Energy Adjacent locations for ~ 120 km Muara Jawa all 3 mines ~65 Km Balikpapan Toba owns all infrastructures (coal processing plants, overland conveyors, and jetties), giving significant operating leverage vs other concessions in surrounding areas 10

Prime Location Gives Significant Cost Advantage (ii) Coal Chain Distance (a) In km 90 (b) Notes : (a) Weighted average distance based on respective production usage of each transportation facility (from pit to vessel) (b) Represent ABN & IM only Source : Broker Reports Toba’s transportation costs are low due to its close proximity to the Transshipment Point 11

Vast Unexplored Areas and Relatively Long Reserve Life Toba’s Concessions Reserve life ~ Industry Comparison IM ABN TMU TMU Source : Broker report Note: Areas already explored • Explored 3,704 of 7,087 hectares of concession areas Toba’s reserve life of over 20 years compares (52% of total concession area) and drilled 3,512 favorably with other listed peers boreholes as of 31 December 2011 • Additional JORC coal reserves and resources expected to be discovered, especially at TMU where only 680 hectares out of 3,414 hectares of concession (20% of TMU concession area) have only been explored 12

Solid Operating Track Record Yearly Coal Production Mt : In Million Tons • Production volume rose TMU IM ABN 7.2 – 7.8 significantly from only 800,000 tons in 2008 to 6.5 m 6.5 tons in 2013, booking CAGR 5.6 growth of 41.5% over 5.2 relatively short period of 5 yrs 4.0 • IM and TMU both contributed to total production’s higher 2.0 volume growth of 40% and 200% respectively 0.8 • Stripping Ratio (SR) fell from 2008 2009 2010 2011 2012 2013 2014e 14.9x in 2012 to 13.4x in 2013 due to lowered mining costs Cumulative Production Cumulative Production achievement >10 million Achievement >20 • TMU’s production increased tons million tons Operational Data from only 88,000 tons in 1Q13 to high of 414,000 tons in 2008 2009 2010 2011 2012 2013 4Q13 post earlier-than- Production Volume ('mn ton) 0.8 2.0 4.0 5.2 5.6 6.5 ABN 0.1 1.1 3.1 3.8 4.4 4.2 expected completion of IM 0.7 0.9 1.0 1.4 1.0 1.4 hauling road from TMU-IM via TMU - - - 0.0 0.2 0.9 ABN in 2Q13 11.9 10.5 9.9 12.7 14.9 13.4 Stripping Ratio (x) Note: 2014e: Toba’s Production target in 2014 13