2008 2009
2010 2011
2012 2013
2014 2014e
TMU IM
ABN Yearly Coal Production
in million tons mt
Cumulative production achievement 10 mt
Cumulative production achievement 20 mt
5.6 5.2
4.1
2.0 0.8
6.5 7.2
– 7.8 8.1
Init ial
t arge
t
• Production volume
rose significantly from only 800,000 tons
in 2008 to 8.1 mn tons in 2014, booking CAGR growth of 47.1
over 6 years
• 2014 production volume of 8.1 mn tons exceeds 2013 volume by
24.6, while also surpassing its initial production target of 7.2
– 7.8 mn tons
• Stripping Ratio SR stabilized from 13.4x in 2013 to 13.3x in 2014
• IM and TMU posted highest production growth to 2014 total
production growth of 24.6 with each contributing growth of 64.3
and 55.6
2008 2009
ABN IM
0.1 1.1
0.7 0.9
0.8 2.0
Production Vol. mt
2010 2011
3.1 3.8
1.0 1.4
4.1 5.2
2012 4.4
1.0 5.6
2013 2014
4.2 4.4
1.4 2.3
6.5 8.1
TMU SR x
- -
11.9x 10.5x
- -
9.9x 12.7x
0.2 14.9x
0.9 1.4
13.4x 13.3x
Cumulative Production Stripping Ratio SR
Production in thousand tons
Production Summary
MT: Million Ton
2013 2014
Change Comment
Sales Volume mt
SR x 6.4
7.9
13.4 13.3
23.4
0.7
Sales volume grew significantly in line with production volume growth
SR continued to fall resulting in lower mining cost
6.5 8.1
Production volume grew y-o-y significantly from 2013 to 2014 mainly driven by border mining at
IM and production ramp-up at TMU
24.6 Production
Volume mt
Production Summary
mt: million tons
• 2014 quarterly production run rate averaged around 2.0 mn tons
• Lower production in 4Q14 compared to previous quarters
resulted mainly from relatively strong seasonal wet conditions
• In anticipation of continued weak coal prices in 2015, the relatively
higher SR in 4Q14 stemmed from higher pre-stripping activities to
allow for better coal extraction in subsequent periods
1,298 2,799
4,601 6,551
1,911 4,071
6,401 8,054
15.1x 14.3x
13.7x 13.4x
13.5x 13.6x
13.2x 13.3x
0.0x 5.0x
10.0x 15.0x
20.0x
2000 4000
6000 8000
1Q13 1H13
9M13 2013
1Q14 1H14
9M14 2014
Production Volume 000 Stripping Ratio
925 1,920
3,108 4,209
1,003 2,216
3,516 4,446
16.6x 15.5x
14.4x 14.0x
14.1x 14.6x
13.8x 13.9x
0.0x 5.0x
10.0x 15.0x
20.0x
1000 2000
3000 4000
5000
1Q13 1H13
9M13 2013
1Q14 1H14
9M14 2014
Production Volume 000 Stripping Ratio
ABN
TMU IM
PT Kutai Energi
Cumulative Production Stripping Ratio
Production in thousand tons
Key Highlights
Dump Dist.
m
1,719 1,789
1,808 1,806
1,894 1,860
1,858 1,913
Yearly production rose from 4.2 mt in 2013 to 4.4 mt in 2014, while lower 4Q14 production was due to
relatively strong seasonal wet conditions
2014 SR stabilized at ~13.9x
4Q14 SR rose from previous quarters due to relatively high pre-stripping to anticipate better coal extraction during continued weak coal prices in 2015
TMU ABN
PT Kutai Energi
Cumulative Production Stripping Ratio
Production in thousand tons
Key Highlights
Quarterly production run-rate stabilized at ~550K level throughout 2014, up from quarterly run-rate of
~350K throughout 2013
2014 production volume rose ~64.0 y-o-y from 1.4 mt to 2.3 mt
4Q14 production was affected by strong seasonal wet conditions
2014 SR normalized at 13.3x
278 637
976 1,401
547 1,117
1,817 2,310
11.2x 11.7x
12.8x 12.8x
13.7x 13.1x
13.2x 13.2x
0.0x 5.0x
10.0x 15.0x
20.0x
500 1000
1500 2000
2500
1Q13 1H13
9M13 2013
1Q14 1H14
9M14 2014
Production Volume 000 Stripping Ratio
Dump Dist.
m
1,703 1,678
1,698 1,651
1,900 1,899
1,920 1,901
ABN IM
PT Kutai Energi
Note:
- - -
Hauling road
Key Highlights Cumulative Production Stripping Ratio
Production in thousand tons
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 ~340K throughout 2014
2014 SR stabilized at 11.8x
Strong seasonal wet weather affected 4Q14 production
84 230
505 925
362 741
1,141 1,372
11.2x 12.1x
11.2x 11.1x
11.4x 11.6x
11.6x 11.8x
0.0x 5.0x
10.0x 15.0x
20.0x
200 400
600 800
1000 1200
1400 1600
1Q13 1H13 9M13 2013 1Q14 1H14 9M14 2014
Production Volume 000 Stripping Ratio
16
2014 Financial Highlights
3
Quarterly FOB Cash Cost in USton
Notes: 1 FOB Cash Cost = COGS including royalty and selling marketing expense
– depreciation and amortization 2 Adj. FOB cash costs = COGS, including selling marketing expense and royalty
– depreciation amortization of exploration development and excluding deferred stripping cost
Constant convergence between FOB cash cost and adjusted FOB cash cost underline normalization of SR over quarterly period resulting from more efficient mine operations
67 69
60 57
55 55
53 49
49 52
53 50
77 73
63 52
59 56
51 52
52 52
51 52
17.7x 16.6x
14.2x 12.0x
15.1x 13.6x
12.7x 12.7x
13.5x 13.8x
12.5x 13.8x
0x 3x
6x 9x
12x 15x
18x
20 40
60 80
100
1Q12 2Q12
3Q12 4Q12
1Q13 2Q13
3Q13 4Q13
1Q14 2Q14
3Q14 4Q14
FOB Vessel cash cost Adj. FOB Vessel cash cost
SR
48.8 51.5
