Company Presentation 9M 2015 TBS CP 9M15

1

PT Toba Bara Sejahtra Tbk (

ɋ

Toba

Ɍ

)

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

2

5

Company Profile

4

9M15 Operational Highlights

3

9M15 Marketing Highlights

Guidance for 2015

1

9M15 Financial Highlights

4

Company Profile

1

Toba’s Strategic Mine Locations

Muara Berau

Muara Jawa Makassar Strait

~55 km (total ~120 km)

Balikpapan Samarinda

~65 km

Major

City Jetty Transhipment Point

TMU – IM Hauling Road

Kutai Energi TMU

ABN IM

Major city is less than 50 km

Adjacent locations for all

3 mines

Close proximity transhipment

point & jetty Furthest pit to jetty 25 km, with closest

one ~5 km ~5 km

IM jetty ABN jetty

Toba owns all infrastructures (coal processing plant, overland conveyors, and jetties), giving significant operating leverage vs other concessions in surrounding areas

25 km

TMU

IM

ABN

TMU

Underpass Infrastructure

Loading Speed of 1,800 TPH High Built CPP Cap

10 Mn TPA Short Coal Hauling

Distance < 5km

Hauling Road to IM

Mine Ops Commenced at Block 4

CPP Ramp Up to 6Mn Tons/Annum (TPA)

Conveyor for TMU & Others

Short Coal Hauling Distance 4km

Infrastructure & Operational Capabilities

Toba’s Concessions

Integrate CPP Ops with IM

 20-year Production Operation Mining Permit (ɋIUPOPɌ) expiring in December 2029

 IUPOP was converted from Kuasa Pertambangan (ɋKPɌ) in 2009

 IUPOP expires in June 2013

 IUPOP was converted from KP in 2010

 IUPOP extension was

completed in March 2013 (First out of 2 extensions: in 2023, with tenor of 10 years each)

 13-year IUPOP expires in December 2023

 IUPOP was converted from a KP in 2010

 Plantation permit expires in 2036

 2,990 ha  683 ha  3,414 ha  8,633 ha (Right to Use Land)

 Reserves: 117 MT- JORC

 Resources: 156 MT- JORC

 Reserve: 22 MT- JORC

 Resources: 37MT- JORC

 Reserves : 8 MT - JORC and additional 7 MT of internal estimate

 Resources: 43 MT- JORC

 Planted Area: 2,896 ha

Ownership Structure

Notes:

1. Son of TS founder, Luhut B. Pandjaitan 2. Figures are rounded off

License

Area

Davit Togar Pandjaitan (1) _{PT Bara Makmur Abadi}

PT Toba Sejahtra (ɋTSɌ) PT Sinergi Sukses Utama Roby Budi Prakoso

71.8% 0.8% 6.2% 5.1%

PT Toba Bumi Energi (ɋTBEɌ)

99.99% (2) 99.99% (2)

3.6%

ABN Minorities

49.0%

51.00% 99.99% (2)

Public

12.5%

Reserve

90.00%

Majority Shareholder

 PT Toba Bara Sejahtra Tbk  PT Kutai Energi

 PT Pusaka Jaya Palu Power

 PT Kartanegara Energi Perkasa

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

 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

 In 1999, Mr. Luhut retired from the military service to serve as Ambassador for the Republic of Indonesia to Singapore

 In 2000, he was appointed Minister of Industry and Trade of the Republic of Indonesia

 Thereafter, Mr. Luhut applied his knowledge and leadership skills to establish TS in 2004, building it from the ground up into a major business group with interests in energy oil and gas, power and agribusiness

 PT Tritunggal Sentra Buana (Palm Oil)

 PT Toba Pengembang Sejahtra (Property)

 Others

Established in 2004, PT Toba Sejahtra (TS) is a fast growing Indonesian enterprise with industries, ranging from Energy Sector such as Natural Resources, Power, and Agriculture (Palm Oil) to Property

Power Coal Mining Other Industry

9

9M15 Operational Highlights

2

9M15 Realization

2015

“Sustainability & Resilience”

Operational 9M14 9M15 Δ_%

Production Vol 6.4 4.5 (29.7)%

Sales Vol 6.1 4.8 (21.3)%

Stripping Ratio 13.2 12.3 (6.8)%

Sales 389.7 268.6 (31.1)%

EBITDA 57.8 42.0 (27.3)%

Net Profit 30.9 20.3 (34.3)%

Financial 9M14 9M15

64.1

NEWC Index 73.2 61.4 (16.1)%

ASP 55.9 (12.8)%

mn ton mn ton x

US$/ton US$/ton

US$ mn US$ mn US$ mn

Δ%

EBITDA/Ton US$/ton 9.5 8.8 (7.4)%

Focused on profitable production output

through optimization of :

• Infrastructure and connectivity sharing

(hauling road and coal processing plant) • Joint mine plan

• Coal sale pricing driven by relationship, consistency in scheduled delivery and product quality

• Competitive price-fixing relative to benchmark Newcastle adjusted price

Note:

(1) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization

2008 2009 2010 2011 2012 2013 2014 2015e

ABN IM TMU

G

uidan

ce

Yearly Coal Production

Mt : In Million Tons

5.6

6.5

6.0 – 8.0

8.1 _{ Production volume rose significantly} from only 800K tons in 2008 to 8.1 mn tons in 2014, booking CAGR growth of 47.1% over 6 years

 To preserve profitable margin and coal reserves, 2015 production target is expected at 6.0–8.0 mn tons

 Stripping Ratio (SR) expected to stabilize at 11x–12x in 2015 from 13.3x in 2014

 3Q15 results from subsidiaries came in line with 2015 quarterly guidance

Cumulative production achievement >10 Mt

Cumulative production achievement >20 Mt

5.2 4.1

0.8

2.0

2015 Production Target

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

2015e

4.0-5.0 1.1-1.5 6.0-8.0

0.9-1.5 11x – 12x

9M15 Operational Performance

Quarterly Production & Stripping Ratio (SR)

Production in Thousand Tons

Production Summary

MT: Million Ton

9M14 9M15 Change Comment

Sales Volume (mt)

SR (x)

6.1 4.8

13.2 12.3

(21.3)%

(6.8)%

Sales decreased by 21.3%

SR continued to fall resulting in lower mining cost

6.4 4.5 Production volume decreased y-o-y to 4.5 mn tons in

9M15 to ensure profitable margin

(29.7)%

Production Volume

(mt)

Production Summary

MT: Million Ton

 Q-o-q production volume of 1.6 mn tons remained stable, which came in line with 2015 quarterly guidance of 1.5-2.0 mn tons

 9M15 SR stabilized at 12.3x, on track of achieving annual SR guidance of 11x – 12x

 Q-o-q SR decreased by 4.0% from 12.5x in 3Q15 to 12.0x in 3Q15

12

1,802 1,950 1,911 2,160 2,330 1,653 1,505 1,469 1,565 12.7x _12.7x 13.5x 13.8x

12.5x

13.8x

12.4x 12.5x _12.0x

00x 05x 10x 15x 20x 0 500 1,000 1,500 2,000 2,500

3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

ABN Operational Performance

ABN

TMU

IM

PT Kutai Energi

Quarterly Production & Stripping Ratio

Production in Thousand Tons

Key Highlights

 Q-o-q production increased to 987 thousand tons in 3Q15, in line with 2015 internal guidance  SR stabilized at 13.0x in 3Q15, on track of achieving annual SR guidance

 SR decreased y-o-y by 5.1% from 13.8x in 9M15 to 13.1x in 9M15

13

1,300 930 904 969 987 12.4x

14.2x

13.1x 13.3x _13.0x

0x 5x 10x 15x 20x

0 200 400 600 800 1,000 1,200 1,400

3Q14 4Q14 1Q15 2Q15 3Q15

Production Volume (000) Stripping Ratio

Dump

IM Operational Performance

TMU

ABN

PT Kutai Energi

Quarterly Production & Stripping Ratio

Production in Thousand Tons

Key Highlights

 Production increase of 38.1% q-o-q from 231K tons in 2Q15 to 319K tons in 3Q15 came in line with 2015 quarterly internal guidance of 200K – 300K tons

 Q-o-q SR decreased from 12.7x in 2Q15 to 12.2x in 3Q15 and y-o-y SR decreased from 13.2x in 9M14 to 12.2x in 9M15, on track of achieving the annual SR guidance

14

700 493 388 231 319 13.3x 13.3x

12.0x 12.7x _12.2x

0x 5x 10x 15x

0 100 200 300 400 500 600 700 800

3Q14 4Q14 1Q15 2Q15 3Q15

Production Volume (000) Stripping Ratio

Dump

TMU Operational Performance

ABN IM

PT Kutai Energi

Note:

- - -

Hauling road

Key Highlights

Quarterly Production & Stripping Ratio

Production in Thousand Tons

 3Q15 production volume decreased slightly to 259K tons, achieving 2015 quarterly internal production guidance

 Q-o-q and y-o-y SR declined by 11.7% and 26.8% respectively, from 9.4x in 2Q14 to 8.3x in 3Q15 and from 12.7x in 9M14 to 9.3x in 9M15

15

400 231 213 267 259 11.7x

12.9x

10.4x

9.4x

8.3x

0x 5x 10x 15x

0 50 100 150 200 250 300 350 400 450

3Q14 4Q14 1Q15 2Q15 3Q15

16

9M15 Financial Highlights

3

Evolution of FOB Cash Cost from 1Q12-3Q15

Quarterly FOB Cash Cost

In US$/ton

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

17

67 69 60 57 55 55 53 49 49 53 51 50 47 43 41

77 73 63 52 59 56

51 52 51 54 ₅₀ 51

46

42 ₄₀ 17.7x 16.6x 14.2x 12.0x 15.1x 13.6x

12.7x 12.7x 13.5x

13.8x

12.5x

13.8x

12.4x 12.5x _12.0x

0x 3x 6x 9x 12x 15x 18x 21x 0 20 40 60 80 100

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Operational & Financial Highlights

Production (in mt)

6.4 4.5

29.7%

Avg. Cash Cost (in US$/ton)

51.5 43.7

15.1%

EBITDA (US$ mn)

57.8 42.0

27.3%

1

2

3

Production volume decreased 29.7% y-o-y to 4.5 mn tons in 9M15, while sales volume decreased 21.3% mn tons over the same period

FOB cash cost fell by 15.1% y-o-y, resulting from continuous cost management initiatives, better execution of mine plan, and lower fuel costs

EBITDA declined by 27.3% y-o-y to US$ 42.0 mn in 9M15, yet EBITDA margin increased from 14.8% to 15.6% over the same period

Notes:

(1) FOB Cash Cost = COGS including royalty and selling &marketing expense – depreciation and amortization

(2) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization

18

3.5 _2.9

1.8 0.9 1.1 0.7 9M14 9M15 TMU IM ABN

55.8 _46.5

49.2 42.1 47.0 37.1 9M14 9M15 TMU IM ABN 40.2 30.3 12.3 8.9 4.4 3.6 9M14 9M15 TMU IM ABN

Financial and Operational Highlights

All figures are in million US$

unless otherwise stated 2Q15 3Q15 Changes 9M14 9M15 Changes

Operation

Sales Volume mn ton 1.4 1.5 7.1% 6.1 4.8 (21.3)%

Production Volume mn ton 1.5 1.6 6.7% 6.4 4.5 (29.7)%

Stripping Ratio (SR) x 12.5 12.0 (4.0)% 13.2 12.3 (6.8)%

FOB Cash Cost* US$/ton 42.5 41.2 (3.1)% 51.5 43.7 (15.1)%

NEWC Index Price US$/ton 59.6 59.0 (1.0)% 73.2 61.4 (16.1)%

Average Selling Price (ASP) US$/ton 55.3 53.1 (4.0)% 64.1 55.9 (12.8)%

Financial Performance

Profit (Loss) 2Q15 3Q15 Changes 9M14 9M15 Changes Sales US$ mn 79.1 77.8 (1.6)% 389.7 268.6 (31.1)%

Cost of Goods Sold US$ mn 63.3 62.3 (1.6)% 323.3 217.0 (32.9)%

Gross Profit US$ mn 15.8 15.5 (1.9)% 66.5 51.5 (22.6)%

Operating Profit US$ mn 7.9 9.1 15.2% 47.8 32.9 (31.2)%

EBITDA** US$ mn 12.1 12.2 0.8% 57.8 42.0 (27.3)%

Profit for the Period US$ mn 4.8 5.0 4.2% 30.9 20.3 (34.3)%

EBITDA/ton US$/ton 8.4 8.3 (1.2)% 9.5 8.8 (7.4)%

Capex US$ mn 2.7 4.3 59.3% 11.9 9.3 (21.8)%

Balance Sheet 2Q15 3Q15 Changes Dec '14 9M15 Changes Interest Bearing Debt US$ mn 57.6 62.5 8.5% 58.1 62.5 7.6%

Cash and Cash Equivalents US$ mn 48.7 49.2 1.0% 47.8 49.2 2.9%

Net Debt*** US$ mn 8.9 13.3 49.4% 10.3 13.3 29.1%

Total Assets US$ mn 281.8 277.6 (1.5)% 300.6 277.6 (7.7)%

Total Liabilities US$ mn 135.9 126.7 (6.8)% 158.3 126.7 (20.0)%

Total Equity US$ mn 145.9 150.9 3.4% 142.4 150.9 6.0%

Financial Ratios

Gross Profit Margin % 20.0% 19.8% 17.1% 19.2%

EBITDA Margin % 15.3% 15.7% 14.8% 15.6%

Operating Profit Margin % 10.0% 11.7% 12.3% 12.2%

Financial Performance

Notes:

(1) FOB Cash Cost = COGS including royalty and selling expense – depreciation and amortization (2) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization

16.1% weaker NEWC Index price caused 12.8% decline in ASP

Solid financial position is shown by cash and cash equivalents increase of 2.9% to US$ 49.2 million

Stabilization of annual SR to 11x-12x is shown by y-o-y and q-o-q SR declines by 6.8% and 4.0% respectively

19

Despite weaker NEWC Index price slight and slight decline in operating profit margin, the Company was able to post increase in gross profit margin and EBITDA margin

Balance Sheet

Consolidated Balance Sheet

In Million US$

Net Debt to EBITDA

In Million US$

 Total assets decreased 7.7% to US$ 277.6 mn in 9M15 from US$ 300.6 mn as per end 2014  Over same period, total liabilities declined 20.0% to US$ 126.7 mn

 Total equity value increased 6.0% to US$ 150.9 mn from US$ 142.4 mn (excluding US$ 14.4 mn of declared dividend), attributable to additional income for the period

 Net Debt to EBITDA ratio has constantly recorded stability from quarter to quarter at way below 2x.

Note:

(1) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization

20

-6.5

10.3

9.2 8.9

13.3 19.5

9.5

17.7

12.1 12.2

-10 -5 0 5 10 15 20 25

3Q14 4Q14 1Q15 2Q15 3Q15

Net Debt (Cash) (US$ Mn) EBITDA (US$ Mn)

Ratio(x) (0.3) 1.1 0.5 0.7 1.1

277.6

Total Asets 300.6 (7.7)%

Interest Bearing Debt 58.1 62.5 7.6%

Total Liabilities 158.3 126.7 (20.0)%

Shareholders Equity 142.4 150.9 6.0%

Balance Sheet (in US$ mn) Dec ‘14 Sep ‘15 Changes

21

9M15 Marketing Highlights

4

98.5

121.1

96.9

85.3

70.8

61.4 65.5

91.3

72.2

66.6 ₆₄

55.9

0 20 40 60 80 100 120 140

2010 2011 2012 2013 2014 9M15 NEWC ASP

9M15 Marketing Performance

NEWC Index & ASP (in US$/ton) Product Contribution (GAR)

 Average NEWC Index declined by 16.1% from US$ 73.2/ton 9M14 to US$ 61.4/ton in 9M15, while ASP declined by 12.8% from US$ 64.1/ton to US$ 55.9/ton over the same period

 Total sales were mainly contributed by ~5,600 GAR products

22

0.0 0.5 1.0 1.5 2.0

4800

5600 HS

5600 RS

5900 LS

Others

Million Tons

11.9%

37.4% 36.1% 11.5%

3.1%

US$/

9M15 Marketing & Sales

–

Quality & Diversified Buyers

Initiatives Undertaken:

Major Customers Export Destinations by Country

 Maintaining well-diversified customer base consisting of mainly reputable international traders, while also growing the number of end-users and decrease exposure to risks from single major customer

 Generating good quality sales backed by quality buyers and favorable terms of payment  Achieved tighter discount rate to reference market price

End Users

23

0.0 0.2 0.4 0.6 0.8 1.0

Korea Taiwan Malaysia India China Japan Vietnam Thailand Others Million Tons 1.6 Mt 34.4% 13.4% 10.3% 12.4% 8.5% 4.4% 3.3% 2.2% 11.1%

0.0 0.2 0.4 0.6 0.8 1.0

Glencore Vitol Peabody Mercuria Trafigura Avra Others TNB Mitsui Taiwan Power Tohoku Electric Vedanta Limited Others Million Tons 20.7% 8.8% 7.7% 16.6% 12.4% 5.9% 3.0% 4.5% 4.0% 5.7% 1.6% 5.8% 3.2%

24

Guidance for 2015

5

50 70 90 110 130 150

Target & Strategy

1

2

“Sustainability & Resilience”

3

2015 Strategy

Focus on maintaining certain

profitability level during uncertain times

Increase reserve through inorganic growth (M&A)

Diversify into downstream industries

NEWC Index (2011 – 2015)

Sep ‘13 US$78/ton Sep ‘12

US$ 89/ton

• Coal Market has been under pressure for the past three years. In September 2015, NEWC Index reached US$ 58/ton or 35% lower compared to the high US$ 89/ton in September 2012

• VIEW: Prolonged excess capacity has undermined coal price and is expected to continue in medium-term

US$

Sep‘14 US$66/ton

Sep ‘15 US$58/ton

Marketing Plan & Strategy

1

2

Secure good quality sales backed by quality buyers and favorable terms of _payment

3

Achieve ASP based on tighter discount rate to reference market price

4

Continuously improve quality control by minimizing product deviation and _{delayed shipment: full coordination with production and logistics teams}

Build well-diversified customer base. Focus to increase sales to end users

2015 Marketing Strategy

Operational & Financial Snapshot 2015F vs 2014

Operation

Prod Vol (mt)

Sales Vol (mt)

SR (x) _{11x - 12x}

6 - 8 6 - 8

2015 F 2014

13.3x 7.9 8.1

NEWC Coal Price _{62 - 65 70.8}

• SR expected to be lowered to ~11x level. SR reduction expected to come mainly from IM & TMU • Production and sales volume expected to stabilize at 6-8 million tons

2015 CAPEX

In 2015, Toba is planning to realize CAPEX of US$ 10 – 14 mn

US$ mn

Salient Points

1 - 2

2 - 3

4 - 5

4 - 5

0 2 4 6 8 10 12 14 16

Conveyor Land Comp. Building Road & Bridges Total CAPEX 2015

14

• Toba’s 2015 CAPEX supports its on-going sustainability program strategy amidst cutbacks among major industry producers

• Majority of Toba’s mining-related CAPEX i.e. Infrastructure upgrade had already been realized in 2013. Hence, 2014 and 2015 will mainly focus on: operational facilities and equipment (conveyor and heavy equipment); land compensation; maintenance for building & road and bridges

Long Term: Create Downstream Synergy through Power

Sector Backed by Continuous Reserve

Build sustainable cash-flow Increase margin

Short - Medium Term

Medium - Long Term

VERTICAL DIVERSIFICATION

Continuous increase in coal reserve via concession acquisition

Protect and maximize margin in prolonged weak & volatile coal market

Focus on continuous improvement in cost efficiency

Generate higher portion of durable cash-flow, improving margin over time

 Run executable mine plan focusing on profitable production growth

 Deploy hedging (coal & fuel price)  Source cheaper substitute energy to

replace diesel fuel

Commercially-viable

 Develop and operate coal-fired power plant, optimizing supply for domestic consumption

 Develop opportunities in alternative and renewable energy sources

50 70 90 110 130 150

Target & Strategy

1

2

“Sustainability & Resilience”

3

2015 Strategy

Focus on maintaining certain

profitability level during uncertain times

Increase reserve through inorganic growth (M&A)

Diversify into downstream industries NEWC Index (2011 – 2015)

Sep ‘13 US$78/ton Sep ‘12

US$ 89/ton

• Coal Market has been under pressure for the past three years. In September 2015, NEWC Index reached US$ 58/ton or 35% lower compared to the high US$ 89/ton in September 2012

• VIEW: Prolonged excess capacity has undermined

US$

Sep‘14 US$66/ton

Sep ‘15 US$58/ton

Marketing Plan & Strategy

1

2

Secure good quality sales backed by quality buyers and favorable terms of _payment

3

Achieve ASP based on tighter discount rate to reference market price

4

Continuously improve quality control by minimizing product deviation and _{delayed shipment: full coordination with production and logistics teams}

Build well-diversified customer base. Focus to increase sales to end users

2015 Marketing Strategy

Operational & Financial Snapshot 2015F vs 2014

Operation

Prod Vol (mt)

Sales Vol (mt)

SR (x) _{11x - 12x}

6 - 8 6 - 8

2015 F 2014

13.3x 7.9 8.1

NEWC Coal Price _{62 - 65 70.8}

• SR expected to be lowered to ~11x level. SR reduction expected to come mainly from IM & TMU

2015 CAPEX

In 2015, Toba is planning to realize CAPEX of US$ 10 – 14 mn US$ mn

Salient Points

1 - 2

2 - 3

4 - 5

4 - 5

0 2 4 6 8 10 12 14 16

Conveyor Land Comp. Building Road & Bridges Total CAPEX 2015 14

• Toba’s 2015 CAPEX supports its on-going sustainability program strategy amidst cutbacks among major industry producers

• Majority of Toba’s mining-related CAPEX i.e. Infrastructure upgrade had already been realized in 2013. Hence, 2014 and 2015 will mainly focus on: operational facilities and equipment (conveyor and heavy equipment); land compensation; maintenance for building & road and bridges

Long Term: Create Downstream Synergy through Power

Sector Backed by Continuous Reserve

Short - Medium Term

Medium - Long Term

VERTICAL DIVERSIFICATION

Continuous increase in coal reserve via concession acquisition

Protect and maximize margin in prolonged weak & volatile coal market

Focus on continuous improvement in cost efficiency

Generate higher portion of durable cash-flow, improving margin over time

 Run executable mine plan focusing on profitable production growth

 Deploy hedging (coal & fuel price)  Source cheaper substitute energy to

replace diesel fuel

Commercially-viable

 Develop and operate coal-fired power plant, optimizing supply for domestic consumption

 Develop opportunities in alternative and renewable energy sources