Corporate Presentation Q1 2020 Outline 1. Introduction 2. Q1 2020 - PowerPoint PPT Presentation

Corporate Presentation Q1 2020

Outline 1. Introduction 2. Q1 2020 Update 3. Company Overview 1

1. Introduction 2

PT Indonesia Asahan Aluminium (Persero) owns ~65,93% of total shares The Subsidiaries and Indirect Subsidiaries Others Mining Trading Power Logistics Gas Investment Others Mining Power Gas Trading Logistics Investment PTBA continues to diversify its source of revenues – The Company’s core coal mining business is supported by the development of other businesses in power generation, logistic, coal beneficiation, investment and others. 3

Key Milestones 23 Dec 2002  PTBA was publicly listed on the Jakarta 1876  PN TABA was converted into a 2 Mar 1981  Coal Mine in Ombilin, Stock Exchange with 35% of shares limited corporation and its West Sumatera, held by the public. It traded with the name changed to PT Tambang started operations initial stock price of IDR575 under the Batubara Bukit Asam (PTBA). code PTBA This date is officially considered as the base of the 1919  During the Dutch colonial commemoration of the period, the first open-pit at  Adopted a new vision of company’s anniversary Airlaya mine, in Tanjung Enim, 30 Dec 2013 becoming “ a world-class South Sumatera started energy company that operations  Another state owned coal company, 1990 cares about the “Perusahaan Umum Tambang environment” batubara ” merged with PT Tambang Batubara Bukit Asam (“PTBA”). Since then, PTBA became the only state  Established a holding 2017 owned coal mining in Indonesia company of mining 1950  The company changed businesses on 29 1991 - 1995  From 1991 to 1995, on the into an Indonesian state November 2017 behalf of the Indonesian owned company which  Stock split of 1:5 on 14 was called “PN government, PTBA acted as December 2017 the domestic coal regulator Tambang Arang Bukit Asam ” (“TABA”). PN is for Coal Contract of Works  Transform into an 2018 (“ CCoW ”) the abbreviation for energy company by Perusahaan Negara, entering the coal which means “State gasification sector Company”  Launch a new logo to Nov 2019 integrate with MIND ID 1876 1919 1950 1981 1990 1991- 1995 2002 2013 2017 2018 2019 PTBA is Indonesia’s Oldest and Most Experienced Coal Producer 4

PTBA among peers 2016 - 2019 Production CAGR 2019 Coal Production (Mn ton) 48% 58.03 14% 34.3 31.9 29.1 23.4 3% 2% n.m. n.m. n.m. n.m. -3% ITMG Bumi Golden Indika Adaro PTBA Bayan Bumi Golden ITMG PTBA Bayan Indika Adaro Energy Energy 2019 EBITDA Margin 2019 Weighted Average Stripping Ratio (%) 10.9x 31% 29% 26% 20% 6.3x 15% 5.1x 4.7x 13% 4.6x 11% n.m. n.m. (1) Golden (1) Indika ITMG (1) Bumi (1) Bayan (1) PTBA Adaro (1) Bumi Golden PTBA Adaro Bayan Indika ITMG Energy Energy Source: Internal Analysis. (1) Adjusted EBITDA. PTBA is one of the fastest growing and lowest cost coal producers in indonesia 5

2. Q1 2020 Update 6

Impacts of Covid-19 to Coal Market The Trend of Newcastle Coal Price Lockdown in South Africa, as one of the world's major coal exporter with 7% of exports by 2019, will affect global coal supply even though the South Africa Government is currently reviewing export policies on a case by case. India, as one of the world’s major coal importer has announced a lockdown that will significantly affect global coal demand. With global coal surplus conditions and pressures from lower oil and gas prices, several analysts predict that prices will fall in the middle of 2020 which will begin to stabilize by the end of 2020. Coal Supply and Demand Projections In terms of domestic coal industry, there will be reduction in coal consumption by the PLN group due to a decrease in industrial electricity demand. 7

Actions taken by PTBA to mitigate The Covid-19 outbreak Equipment & Infrastructure Company Regulations Company Activities - Covid-19 Prevention Guidelines - Thermogun - Checking Body Temperature - Provide The Protocol of Work From - Hand Sanitizer - Implementation of Work From Home - Face Mask Home for Jakarta Office - The Protocol of Campaign to Prevent - Postpone The Business Trip - PPE Covid-19 - Representative Hospital - Virtual Meeting - The Protocol to Access The Office, - etc - Disinfectant Spraying Site, and Employee Housing - etc - etc 8

Key Performance Highlights QoQ Q1 2020 Q1 2019 FY 2020 E (% change) Sales volume (Mt) 29.9 6.8 6.6 2.1 30.3 5.5 5.7 Production (Mt) -2.8 27.5 6.5 5.8 12.1 Railway Capacity (Mt) 5.3 Revenue (IDR TN) n.a. 5.1 -4.0 0.9 1.1 Net Profit (IDR TN)* n.a. -20.6 Weighted Average 772,058 n.a. 741,845 -3.9 Selling Price (IDR/t) Stripping Ratio (x) 4.7 4.4 4.6 -4.4 Note: *net profit after minority interest 9

Key Operational Highlights Production and Sales Volume Railway Capacity (Mt) (Mt) 24.2 22.7 29.1 21.4 27.8 26.4 24.7 24.2 23.6 6.5 5.8 6.8 6.6 5.7 5.5 FY2017 FY2018 FY2019 Q119 Q120 FY2017 FY2018 FY2019 Q119 Q120 Production (Mt) Sales Volume (Mt) Weighted Average Stripping Ratio Weighted Average Selling Price (x) (IDR/t) 4.6 4.6 835,155 808,690 4.4 772,058 769,670 4.1 741,845 3.6 FY2017 FY2018 FY2019 Q119 Q120 FY2017 FY2018 FY2019 Q119 Q120 PTBA’s achievement is still on track as planned 10

Key Financial Highlights Revenue and Growth Gross Profit and Margins (IDR bn) (IDR bn) 43.7% 40.4% 34.9% 33.3% 29.8% 38.5% 8.7% 2.9% (7.2%) (4.0%) 8,507 8,546 21,789 7,612 21,167 19,471 5,337 5,122 1,777 1,525 FY2017 FY2018 FY2019 Q119 Q120 FY2017 FY2018 FY2019 Q119 Q120 Revenue (IDR bn) Growth (%) Gross profit (IDR bn) Gross profit margin (%) Operating Profit and Margins Net Profit and Margins Note: net profit after minority interest (IDR bn) (IDR bn) 30.3% 29.7% 23.0% 21.1% 26.6% 23.0% 23.7% 18.6% 21.3% 17.6% 5,024 6,283 5,899 4,476 4,057 5,014 1,419 1,080 1,137 903 FY2017 FY2018 FY2019 Q119 Q120 FY2017 FY2018 FY2019 Q119 Q120 Operating profit (IDR bn) Operating profit margin (%) Net profit (IDR bn) Net profit margin (%) 11

Key Financial Highlights (Cont.) Sales Breakdown by Country (1) Cost Breakdown Others ; 7% Sparepart; 3% rental of heavy equipment; 3% (2) Others; 3% China; 2% Hong Kong; Fuel & 2% Lubricants; 4% Thailand; Coal Railway; 35% 4% Third party services; 4% Vietnam; 4% Domestic; Depreciation and Taiwan; 6% 65% Amortisation; 6% India; 14% Royalty; 7% Mining Services; 19% Salaries; 12% Sales Breakdown by Quality (1) Total Cash Cost (FOB) (4) % Others (3) GAR 4600-IPC; Cash cost Q120 Q119 Peningkatan 4% 2% (IDR ‘000/t) Bukit Asam-45 (Penurunan) 2% 579 587 Total (1.31) GAR 6100 5% Bukit Asam-50 Bukit Asam-48 66% 22% (1) Breakdown based on sales distribution per ton. (2) Others include Japan, Malaysia, Philliphines, Australia. (3) Others include Bukit Asam – 67, Bukit Asam – 64, GAR 4700 - IPC (4) Total Cash Cost include COGS, G&A, Selling Expenses, Inventory and Royalty. 12

3. Company Overview 13

Company Overview Captive Market for Domestic Market Expanding Railways Capacity and New Ports Development Projects Financial Strength and High Dividend Payout Ratio 14

Captive Market for Domestic Market Coal remains the key source of Indonesia’s energy over time (3) Domestic coal consumption expected to grow at ~14.4% (1)  Overall coal domestic consumptions is expected to grow at 14.4%, largely  Indonesia's energy mix is expected to undergo a transformation over the next driven by demand from power plants and Cement, textile, fertilizer & pulp decade that would result in more coal being consumed (1) industry  Indonesia plans to increase power generation by 35 GW Program, of which 20GW is expected to be generated using coal (1) CAGR (Mt) (2016A-2020E) 16.5 150.4% Coal: ~30% 14.5 1.8 29.5 30% 30% 30% of total 0.3 25.3 49% 22.2 0.4 electricity 13.7 19.0% generation 14.7 22% 24% 29% 109.0 19% 95.7 91.1 23% 83.0 22% 75.4 9.7% 23% 20% 23% 25% 19% 12% 2016A 2017A 2018A 2019 2020E 2016A 2020E 2025E 2030E (2) Renewables Gas Oil Coal Power Plant Cement, textile, fertilizer & pulp Others PTBA’s sales breakdown per country FY 2019 (4) Given its strong relationship with PLN and abundant reserves (>100 years’ reserve life), PTBA was the highest coal DMO supplier company in 2019 Taiwan ; Vietnam Malaysia; ; 2% (5) 3% 2% Others ; Jepang ; 5% 3% Note: (1) Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources Philipina ; (2) Others include Metallurgy, Smelter and Briquette industries. 4% 2020E – 2030E forecasted electricity generation composition as reported by the (3) Domestic ; Indonesia Energy Statistics (World Bank, Indonesia Energy Statistics). 2016A data based on 60% Hongkong ; BMI. 5% (4) Breakdown based on sales distribution per country in tons FY2019 (5) Others include Thailand, Sri Lanka, China, Cambodia, Australia, Myanmar, Pakistan. South Korea ; 6% India ; 10% Significant Coal Sales Exposure to Indonesia Market and Benefiting The Most from Growth in Domestic Coal Demand 15