Delivering Positive Energy November 2014 Disclaimer These - PowerPoint PPT Presentation

Delivering Positive Energy November 2014

Disclaimer These materials have been prepared by PT Adaro Energy (the “Company”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever arising from any information presented or contained in these materials. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. These materials 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

Agenda I. Corporate Information Adaro’s Strategy II. III. Industry Outlook IV. Appendix 3

I. Corporate Information 4

Adaro Energy Snapshot • Among the largest single-  2011A: 47.7 Mt concession coal producers in  2012A: 47.2 Mt Production southern hemisphere  2013A: 52.3 Mt • Top 5 thermal coal exporter globally  Sub-bituminous, medium calorific value, ultra-low pollutants Envirocoal • Major supplier to domestic market  Trademark registered in many jurisdictions • One of the world ’ s lowest cost coal  More than 50 customers in 12 producers Customers countries  Blue-chip power generation utilities • Envirocoal among the most environmentally friendly coal  Fixed price and about 1/3 index-linked Pricing  Adjustment for heat content • Vertically integrated business model • Strong credit profile  Reserves: 1.1 Bt as of YE2013 JORC reserves  Resources: 12.8 Bt (includes option to / resources • High visibility of future earnings control 7.9 Bt) as of YE2013 • Reputable and experienced  South, East, Central Kalimantan, Location South Sumatra management and controlling  First generation Coal Cooperation shareholders License Agreement valid until 2022 (AI) 5

Key Messages • Current market conditions are challenging, however we are doing relatively well and are on track to deliver on our long-term strategy to create sustainable value from Indonesian coal. • Resilient business focused on core assets, operational excellence, risk reduction and customers. • Maintain strong capital structure and margins. • Monitor and reduce expenses and capital expenditures to preserve cash. • Continue to improve efficiency and create reliable, safe, long-term growth. • Diversified customer base with long-term contracts mostly with sovereign backed power companies. 6

Resilient Business Model Creating Sustainable Value Pit to Power Integration Adaro Energy (AE) Mining Assets Mining Services Logistics Power (ATA) 100% Adaro Indonesia (AI) 100% Saptaindra 100% Maritim Barito Perkasa Makmur Sejahtera 100% Coal mining, S Kalimantan Sejati (SIS) (MBP) Wisesa (MSW) Coal mining and hauling Barging & shiploading Operator of 2x30MW Balangan Coal 75% contractor mine-mouth power Coal mining, S Kalimantan Sarana Daya 51.2% plant in S.Kalimantan Jasapower Indonesia Mandiri (SDM) 100% Mustika Indah Permai (MIP) (JPI) Dredging & maintenance Bhimasena Power Coal mining, S Sumatra 75% Operator of overburden in Barito River mouth (BPI) 34% Bukit Enim Energi (BEE) crusher and conveyor Partner in 2x1000MW 61% Coal mining, S Sumatra Indonesia Multi Purpose power generation Adaro Eksplorasi 100% IndoMet Coal 100% Terminal (IMPT) project in Central Java 25% Indonesia (AEI) Project (IMC), BHP JV Port management & Mining exploration Coal mining, C Kalimantan terminal operator Tanjung Power 65% Indonesia (TPI) Adaro Mining Bhakti Energi Indonesia Bulk Terminal 10.2% 100% Partner in 2x100MW Technologies (AMT) Persada (BEP) (IBT) 100% power plant project in Coal research & Coal mining, E Kalimantan Coal terminal & fuel S. Kalimantan development storage *Simplified Corporate Structure 7

Our Reliable Coal Supply Chain AE's coal all come from the deposits in South Kalimantan mined by AI. The physical mining and transporting of coal to customers is done by contractors appointed by AI. We tightly control this coal supply chain by using a subsidiary company at each stage as one of the dominant contractors. AI mining area, with coal extracted from the Tutupan, Wara & Paringin pits AI performs mining activities supported by its contractors (SIS, PAMA, BUMA, RA and RMI). Coal is trucked along haul road owned by AI to a port on the Barito River. AI crushes the coal, stores it when necessary and loads it to barges at Kelanis river terminal Coal is barged to the sea by our Shiploading at subsidiary MBP and third-party Taboneo contractors. offshore Indonesia Bulk At the river mouth, our subsidiary, anchorage Terminal, SDM, dredges and maintains a Pulau Laut Barging to shipping channel. Indonesia Bulk Shiploading and sea barging by MBP Terminal Barging to domestic Coal terminal and fuel storage by IBT customers 8

Recent Performance: On Track • We achieved production volume of 41.9Mt • Liquidity and our Balance Sheet remain in 9M14, 8% higher y-o-y. We are on track to strong with access to cash of US$1.6 hit our annual production target of 54Mt to billion. 56Mt. • Overburden removal was 241.67 million • Our EBITDA increased 11% to US$701 bank cubic meters (Mbcm) in 9M14, 8% million, on track to achieve our annual higher y-o-y. guidance of US$750 million to US$1 billion. • AI obtained BBB- rating from Japan Credit • We decreased our 9M14 coal cash cost to Rating Agency, Ltd . Fitch affirmed rating US$32.65 per tonne, on target to reach our on Adaro Indonesia at BB+. annual guidance of US$35 to US$38 per tonne. 9

2014 Guidance Production Volumes (Mt ) Consolidated Planned Strip Ratio (bcm/t) 54-56 52.3 47.7 47.2 42.2 40.6 6.4 5.9 5.78 5.5 5.75 5.0 2009A 2010A 2011A 2012A 2013A 2014F 2009A 2010A 2011A 2012A 2013A 2014F Coal Cash Cost (ex-royalty, US$/t) 39 Operational EBITDA 35-38 36 34.86 32 (US$ billions) 27 2009A 2010A 2011A 2012A 2013A 2014F Capital Expenditure (US$ millions) EBITDA (US$ billions) 625 1.5 490 1.1 1.1 .75 - 1.0 0.82 0.9 287 200-250 165 135 2009A 2010A 2011A 2012A 2013A 2014 F 2009A 2010A 2011A 2012A 2013A 2014 F 10

Diversified Customer Base with Long-term Contracts Geographical breakdown of customers in Customer type by % volume (FY13) Mt (9M14) 11% Others, 9% Indonesia, 21% Malaysia, 6% 2% Hong Kong, 8% Power Cement Spain, 8% Others India, 16% Korea, 10% 87% China, 12% Japan, 10% * Others include America, Thailand, Taiwan Mostly sovereign backed power companies, over 50% have relationship more than 10 years 11

Significant Scale and Profitability 2013 Thermal Coal Production (Mt) 2013 Largest Producing Concessions in Southern Hemisphere (Mt) 220.0 53.5 52.3 33.7 30.0 29.6 95.7 23.4 83.1 72.0 67.6 15.1 52.3 29.4 15.1 KPC Indonesia Kideco Loy Yang Arutmin Berau Indominco Peabody Bumi BHP Adaro PTBA Glencore Xstrata-e Anglo ITM Adaro Source: Company Filings, Presentations Source: Company Filings, Presentations. 2013 EBITDA Margin Reserves and Resources Comparison 12,756 * Resources Reserves 25.3% 25.0% 24.5% 22.6% 7,782 20.3% 7,290 18.4% 14.9% 13.1% 2,904 1,990 1,650 1,092 1,140 1,008 417 579 476 PTBA Adaro Bumi Indika Bayan ITMG Thermal ADARO Thermal PTBA BHP Thermal ITMG Peabody BUMI Xstrata Anglo * Include 7.9 Bt option Source: Company Filings, *Adaro Energy’s YE2013 consolidated equity adjusted Source: Bloomberg, Company Filings resources and reserves includes option to control 7 billion tonnes 12