Company Presentation First Semester 2016 1 Disclaimer These - PowerPoint PPT Presentation

PT Toba Bara Sejahtra Tbk ( “ Toba ” ) Company Presentation First Semester 2016 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.

Table of Contents 1 Company Profile 2 1H16 Operational Highlights 3 1H16 Financial Highlights 4 1H16 Marketing Highlights 5 Guidance for 2016

Company Profile 1 4

Toba Bara Sejahtra in Brief Toba specializes in thermal coal production and comprises of three mining subsidiaries: Adimitra Baratama Nusantara (ABN), Indomining (IM) and Trisensa Mineral Utama (TMU )  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 (CV) of 4,700-5,800 kcal/kg GAR Diversified  Strong production growth profile, registering Thermal Coal ~34% CAGR between 2008 and 2015. Produced Reserves and 6.5 MM tons in 2013 and grew ~25% to 8.1 MM Resources tons in 2014 Strong  Prime location near Capital of East Kalimantan Growth and proximity to waterways provides Profile operational cost edge to grow as logistical & operational center for the area

Strategic Mine Locations TMU – IM Major Jetty Transhipment City Hauling Road Point Muara Berau Major city to Samarinda north is less than 50 km Distance from pit to jetty, with closest ~55 km one ~5 km and (total ~120 km) furthest ~25 km IM ~5 km ABN 25 km IM jetty Close proximity TMU Makassar Strait ABN jetty to jetty and transhipment Kutai Energi 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 operating leverage vs other concessions in surrounding areas

Infrastructure & Operational Capabilities CPP Capacity (cap) IM Conveyor for Short Coal Hauling Ramped Up to 6 Mn TMU usage & Distance < 5km Tons/Annum (TPA) Others Short Coal Hauling Distance ~4km IM TMU High Built CPP Cap ABN up to 10 Mn TPA ~16 km Hauling Road to Connect with ABN TMU Loading Speed of 1,800 TPH Mine Ops Commenced Underpass at Block 4 Toba’s Concessions Infrastructure Note : PT Adimitra Baratama Nusantara (ABN) Integrated CPP and PT Indomining (IM) Jetty Ops with IM PT Trisensa Mineral Utama (TMU)

Ownership Structure PT Toba Sejahtra Davit Togar Pandjaitan PT Bara Makmur Abadi PT Sinergi Sukses Utama Roby Budi Prakoso Public 71.8% 0.8% 6.2% 5.1% 3.6% 12.5% ABN Minorities 49.0% 99.99% (1) PT Toba Bumi Energi ( “ TBE ” ) 90.00% 60.00% 51.00% 99.99% (1) 99.99% (1)   Plantation permit of PT PT Gorontalo Listrik  20-year Production  IUP-OP expires in June  13-year IUP-OP expires Perkebunan Kaltim Perdana (GLP) was Operation Mining Permit 2013 in December 2023 Utama I (PKU) expires in established in Feb 2016 ( “ IUP-OP ” ) expiring in  IUP-OP was converted  IUP-OP was converted 2036 to undertake coal-fired December 2029 from KP in 2010 from a KP in 2010 power plant project in  IUP-OP was converted License  IUP-OP extension was Gorontalo, Sulawesi from Kuasa completed in March 2013 Pertambangan ( “ KP ” ) in (First out of 2 extensions: 2009 in 2023, with tenor of 10 years each)  8,633 ha (Right to Use  2,990 ha  683 ha  3,414 ha  Gorontalo, Sulawesi Area Land)  Reserves: 117 MT- JORC   Reserves : 8 MT - JORC Reserve: 22 MT- JORC  Planted Area: 2,896 ha   Resources: 156 MT- N/A Reserve   Resources: 43 MT- JORC Resources: 37 MT- JORC JORC Note: 1. Figures are rounded off 2. CFPP: Coal-Fired Power Plant 3. PLN: PT Perusahaan Listrik Negara (Persero) 4. IPP: Independent Power Producer 5. PPA: Power Purchase Agreement

1H16 Milestones  1 st April 2016: IM and PT Cipta Kridatama (subsidiary of PT ABM Investama Tbk) entered into a five- year mining contract valued at US$ 82 million over the contract period  29 th May 2016: ABN was awarded the PROPER Gold Mining Award for Environmental Management (2015 – 2016) from the Governor of East Kalimantan  29 th May 2016: IM was awarded the PROPER Green Mining Award for Environmental Management (2015 – 2016) from the Governor of East Kalimantan  29 th May 2016: TMU was awarded the PROPER Green Mining Award for Environmental Management (2015 – 2016) from the Governor of East Kalimantan

1H16 Operational Highlights 2 10

Realization 1H 2016 Focused on profitable production output Δ % Operational 1H15 1H16 through optimization of :  NEWC Index US$/ton 62.7 50.9 (18.8)% Infrastructure and connectivity sharing (hauling road, coal processing plants ASP US$/ton 57.3 45.4 (20.8)% (CPP), & jetties) Production Vol mn ton 3.0 2.8 (6.7)%  Joint mine plan between three adjacent Sales Vol mn ton 3.3 2.8 (6.1)% operating mines Stripping Ratio x 12.5 13.1 4.8%  Competitive & premium coal pricing driven by strong coal branding from Δ % Financial 1H15 1H16 consistency in scheduled delivery/product Sales US$ mn 190.8 139.0 (27.1)% quality and established customer relationship with diversified customer base US$ mn EBITDA 29.8 22.0 (26.2)%  Average Selling Price (ASP) Net Profit US$ mn 15.3 9.3 (39.2)% outperformance relative to benchmark US$/ton EBITDA/ton 9.0 7.2 (20.0)% Newcastle due to sale executions based on well-timed predictions in market trends Note: EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization (1)

2016 Production Guidance Annual Coal Production Mt : In Million Tons  Production volume rose from only 800K tons in 2008 to 6.1 ABN IM TMU 8.1 mn tons in 2015, booking CAGR growth of 33.6% over 8 6.5 6.1 years 5.6 5.0 - 7.0 5.2  2015 overall results from subsidiaries came in line with 4.1 Guidance 2015 annual guidance  With strategy to sustain certain margin, while 2.0 preserving life-of-mine (LoM) 0.8 reserves , 2016 production guidance is estimated at 5.0-7.0 mn tons 2008 2009 2010 2011 2012 2013 2014 2015 2016  2016 Stripping Ratio (SR) is expected to stabilize at 11x- Cumulative production Cumulative production achievement >20 Mt 12x , as per the mine plan achievement >10 Mt 2008 2009 2010 2011 2012 2013 2014 2016E 2015 Production Vol. 6.1 0.8 2.0 4.1 5.2 5.6 6.5 8.1 5.0-7.0 (Mt) 0.1 1.1 3.8 4.4 4.2 3.9 3.6-5.0 ABN (Mt) 3.1 4.4 1.4 2.3 1.2 IM (Mt) 0.9 1.0 1.4 1.0 0.5-0.7 0.7 TMU (Mt) 1.0 - - - 0.2 0.9 1.4 0.9-1.3 - SR (x) 11.9x 11x-12x 10.5x 9.9x 12.7x 13.4x 13.3x 12.3x 14.9x

1H16 Operational Performance Quarterly Production & SR Production in Thousand Tons TOBA  Q-o-q production volume of 1.3 mn tons in 2Q16 came in line with 2,500 20.0x 2016 quarterly guidance of 1.25 - 2,000 13.8x 13.9x 1.75 mn tons 13.8x 12.4x 12.5x 15.0x 12.4x 12.5x 12.1x 12.0x 1,500  2Q16 SR rose to 13.9x from 10.0x 12.4x in 1Q16 due primarily to 1,000 pre-stripping activity at ABN new 5.0x 500 pit 2,160 2,330 1,653 1,505 1,469 1,565 1,529 1,503 1,269 0 0.0x  SR in subsequent quarter is 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 expected to remain at similar level Production Volume (000) Stripping Ratio before normalizing in 4Q16 Production Summary Production Summary MT: Million Tons MT: Million Ton 1H15 1H16 Change Comment Production volume in 1H16 stabilized at 2.8 mn tons in Production (6.7)% 3.0 2.8 line with mine plan, while ensuring certain margin Volume and optimizing reserve preservation 1H16 sales volume tracked its 1H16 production Sales Volume 3.1 (6.1)% 3.3 volume SR edged up due to pre-stripping at ABN, and in line SR (x) 12.5 13.1 4.8% with mine plan