Company Presentation 2014 (Full Year) CP Full Year 2014

1

PT Toba Bara Sejahtra Tbk (

䇾

Toba

䇿

)

Company Presentation

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

2014 Operational Highlights

3

2014 Marketing Highlights

Guidance for 2015

1

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 Transshipment 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 transshipment

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

Coal calorific values : mid to upper

range

(4,700

–

5,800 Kcal/kg GAR)

TMU

IM

ABN

TMU

Underpass Infrastructure

Loading Speed of 1,800 TPH High Built CPP Cap

10 mn TPA Hauling Road to IM

Mine Ops Commenced at Block 4

Short Coal Hauling Distance < 5km

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

Conveyor for TMU & Others

Short Coal Hauling Distance 4km ABN

TMU

Infrastructure & Operational Capabilities

INDOMINING

Integrate CPP Ops with IM

Ownership Structure

Notes:

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

•20-year Production Operation Mining Permit (䇾IUPOP䇿) expiring in

December 2029

•IUPOP was converted from Kuasa Pertambangan (䇾KP䇿) 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

License

Area

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

PT Toba Sejahtra (䇾TS䇿) PT Sinergi Sukses Utama Roby Budi Prakoso

71.8% 0.8% 6.2% 5.1%

PT Toba Bumi Energi (䇾TBE䇿)

99.99% (2)

99.99% (2)

3.6%

ABN Minorities

49.0%

51.00% 99.99% (2)

Public

12.5%

Reserve

Majority Shareholder

Coal Mining

• PT Toba Bara Sejahtra Tbk • PT Kutai

Energi

• PT Pusaka Jaya Palu Power

• PT

Kartanegara Energi Perkasa

Power

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. He is currently the chairman of TS

• 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

Other Industry

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

9

2014 Operational Highlights

2

2014 Target & Realization

2014

“Growing with Sustainability”

Operational 2013 2014 Δ_%

Production Vol 6.5 8.1 24.6%

Sales Vol 6.4 7.9 23.4%

Stripping Ratio 13.4 13.3 (0.7)%

Sales 421.9 500.0 18.5%

EBITDA 58.7 67.3 14.8%

Net Profit 34.6 35.8 _3.5%

Financial 2013 2014

66.6

NEWC Index 85.3 70.8 (17.0)%

ASP 63.7 (4.4)%

mn ton mn ton x

US$/ton US$/ton

US$ mn US$ mn US$ mn

Δ%

EBITDA/Ton US$/ton 9.2 8.6 (6.5)%

Focus on production growth (~15%-20%)

while maintaining certain profitability level

through optimization of :

• Infrastructure and connectivity sharing

(hauling road and CPP)

• 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

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

2014 Operatioinal Performance

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 0 2000 4000 6000 8000

1Q13 1H13 9M13 2013 1Q14 1H14 9M14 2014

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

0 1000 2000 3000 4000 5000

1Q13 1H13 9M13 2013 1Q14 1H14 9M14 2014

Production Volume (000) Stripping Ratio

ABN Operational Performance

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

IM Operational Performance

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

0 500 1000 1500 2000 2500

1Q13 1H13 9M13 2013 1Q14 1H14 9M14 2014

Production Volume (000) Stripping Ratio

Dump Dist. (m)

TMU Operational Performance

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

0 200 400 600 800 1000 1200 1400 1600

1Q13 1H13 9M13 2013 1Q14 1H14 9M14 2014

16

2014 Financial Highlights

3

Evolution of Quarterly FOB Cash Cost from 2012-2014

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

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

0 20 40 60 80 100

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

48.8 51.5

9.1 12.4

5.1 4.3

2013 2014

TMU IM ABN

55.9 54.9

51.7 48.4

39.2 46.9

2013 2014

TMU IM ABN

4.2 4.4

1.4 2.3

0.9 1.4 2013 2014 TMU IM ABN

Operational & Financial Highlights

Production (in mt)

6.5 8.1

24.6%

Avg. Cash Cost (in US$/ton)

52.9 51.3

3.0%

EBITDA (US$ mn)

58.7 67.3

14.8%

1

2

3

Production volume expanded

24.6% y-o-y from 6.5 mn tons in 2013 to 8.1 mn tons in 2014 due to significantly higher volume contributions from ABN, TMU and IM

FOB cash cost was lowered by

3.0% y-o-y, resulting from

lowered overall SR by 0.7% y-o-y from 13.4x in 2013 to 13.3x in 2014

EBITDA surged by 14.8% y-o-y from US$ 58.7 mn in 2013 to US$ 67.3 mn in 2014

11.9

34.6 35.8

2012 2013 2014 22.5

58.7

67.3

2012 2013 2014 396.7 421.9

500.0

2012 2013 2014

Financial Performance

Sales US$ million

EBITDA US$ million

Net Profit (a)

US$ million

Note: (a) Net Income before minority interest

 Despite declining NEWC Index price trend on y-o-y basis from 2012 to 2013 and to 2014, sales value increased 6.4% from US$ 396.7 million in 2012 to US$ 421.9 million in 2013 and 18.5% to US$ 500.0 million in 2014

 EBITDA surged 160.9% y-o-y to US$ 58.7 million in 2013 and 14.8% y-o-y to US$ 67.3 million in 2014

resulting from higher sales volume and better mine plan execution, hence lowering mining costs in the process

 Total profit for the period in 2013 stood at US$ 34.6 million, up 190.8% from 2012. Meanwhile, from 2013

Financial Performance

Notes:

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

Despite weaker ASP, sales rose

18.5% y-o-y to US$ 500.0 mn in

2014 due to 23.4% sales

volume growth

EBITDA increased 14.8% y-o-y

to US$ 67.3 mn in 2014 attributable to increased production and lower cash cost by 24.6% and 3.0% respectively

Financial and Operational Highlights All figures are in million US$ unless

otherwise stated 2013 2014 Changes

Operation

Sales Volume mn ton 6.4 7.9 23.4%

Production Volume mn ton 6.5 8.1 24.6%

Stripping Ratio (SR) x 13.4 13.3 (0.7)%

FOB Cash Cost* US$/ton 52.9 51.3 (3.0)%

NEWC Index Price US$/ton 85.3 70.8 (17.0)%

Average Selling Price (ASP) US$/ton 66.6 63.7 (4.4)%

Financial Performance

Profit (Loss) 2013 2014 Changes

Sales US$ mn 421.9 500.0 18.5%

Cost of Goods Sold US$ mn 342.3 413.8 20.9%

Gross Profit US$ mn 79.6 86.2 8.4%

Operating Profit US$ mn 50.0 56.0 12.0%

EBITDA** US$ mn 58.7 67.3 14.8%

Profit for the Period US$ mn 34.6 35.8 3.5%

EBITDA/ton US$/ton 9.2 8.6 (6.5)%

Capex US$ mn 23.3 11.8 (49.4)%

Balance Sheet 2013 2014 Changes

Interest Bearing Debt US$ mn 55.9 58.1 3.9%

Cash and Cash Equivalents US$ mn 63.3 47.8 (24.5)%

Net Debt*** US$ mn Net Cash 10.3 N/A

Total Assets US$ mn 311.7 300.6 (3.6)%

Total Liabilities US$ mn 181.2 158.3 (12.6)%

Total Equity US$ mn 130.5 142.4 9.1%

Financial Ratios

Gross Profit Margin % 18.9% 17.2% (8.6)%

EBITDA Margin % 13.9% 13.5% (3.1)%

-17.0

2.5

13.4

-7.4

2.5 4.5

-6.5

10.3 9.4

12.5

18.2 18.0 21.1 _17.2 19.5

9.5

-20 -15 -10 -5 0 5 10 15 20 25

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

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

Balance Sheet

Consolidated Balance Sheet

in million US$

Net Debt to EBITDA

in million US$

 Total assets decreased 3.5% to US$ 300.6 mn in 2014 from US$ 311.6 mn as per end 2013

 Over same period, total liabilities declined 12.6% to US$ 158.3 mn

 Total equity in 2014 increased 9.1% to US$ 142.4 mn from US$ 130.5 mn, attributable to additional income

for the period

Ratio(x) (1.8) 0.2 0.7 (0.4) 0.1 0.3 (0.3) 1.1

Des-13 Des-14 Changes

(%)

Cash and Cash Equivalents US$ mn 63.3 47.8 (24.4)%

Fixed Assets US$ mn 49.0 47.9 (2.2)%

Others US$ mn 199.3 204.9 2.8%

Total Assets US$ mn 311.6 300.6 (3.5)%

Trade Payable US$ mn 69.3 64.1 (7.5)%

Interest Bearing Debt US$ mn 55.9 58.1 3.9%

Others US$ mn 56.0 36.1 (35.5)%

Total Liabilities US$ mn 181.2 158.3 (12.6)% Shareholders Equity US$ mn 130.5 142.4 9.1%

22

2014 Marketing Highlights

4

2014 Marketing Performance

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

 Average NEWC Index declined by 17.0% from US$ 85.30/ton in 2013 to US$ 70.80/ton in 2014,

while ASP declined by 4.4% from US$ 66.6/ton in 2013 to US$ 63.7/ton

 Total sales are mainly contributed from 4700 GAR and 5600 GAR products

98.5

121.1

96.9

85.3

70.8

65.5

91.3

72.2

66.6

63.6

0 20 40 60 80 100 120 140

2010 2011 2012 2013 2014

NEWC ASP

0.0 1.0 2.0 3.0 4.0

4700 5400 HS 5600 HS 5600 RS 5900 Others

Million Tons

13.1% 4.9%

29.4%

38.2%

5.2% 9.2%

0.0 0.4 0.8 1.2 1.6 2.0 2.4 2.8 China Korea India Taiwan Philippines Vietnam Thailand Others

2014 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

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

0.0 0.3 0.6 0.9 1.2 1.5 1.8

Glencore Mercuria Vitol Dragon Energy Trafigura CER AES Adani Others End Buyers Million Tons Million Tons 20.1% 16.8% 15.7% 13.5% 6.0% 4.6% 3.5% 2.9% 13.2% 3.6% 32.9% 19.0% 16.5% 15.2% 3.8% 3.8% 2.5% 6.3%

25

Guidance for 2015

5

Target & Strategy

1

2

“Sustainability & Resilience”

3

2015 Strategy

Focus on maintaining level of profitability during uncertain times

Increase reserve through exploration & acquisition

Diversify into downstream industries

20 40 60 80 100 120 140 Jan 2 0 1 1 A p r 2 0 1 1 Ju l 2 0 1 1 O k t 2 0 1 1 Jan 2 0 1 2 A p r 2 0 1 2 Ju l 2 0 1 2 O k t 2 0 1 2 Jan 2 0 1 3 A p r 2 0 1 3 Ju l 2 0 1 3 O k t 2 0 1 3 Jan 2 0 1 4 A p r 2 0 1 4 Ju l 2 0 1 4 O k t 2 0 1 4 Jan 2 0 1 5

NEWC Index (2011 – 2014)

Dec ‘14

US$63/ton

Dec ‘13 US$86/ton

Dec ‘12 US$93/ton

(27)%

Jan ‘11 US$130/ton

• Coal Market has been under pressure for past two years. In Dec 2013, NEWC Index reached US$86/ton or 34% lower compared to the highest in Jan 2011 of US$130/ton

• Newcastle Index continued to fall by ~27% from US$86/ton in Dec 2013 to US$63/ton in Dec 2014

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

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

16%

41% 32%

11%

48 LS 56 RS 56 HS Others

Marketing Performance – 2015

More than 60% of total projected sales in 2015 has been locked

Customer Base – 2015 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

2015 Marketing Strategy

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

63% Locked

51% Locked 52% Locked

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

Target & Strategy

1

2

“Sustainability & Resilience”

3

2015 Strategy

Focus on maintaining level of profitability during uncertain times

Increase reserve through exploration & acquisition

Diversify into downstream industries 20 40 60 80 100 120 140 Jan 2 0 1 1 A p r 2 0 1 1 Ju l 2 0 1 1 O k t 2 0 1 1 Jan 2 0 1 2 A p r 2 0 1 2 Ju l 2 0 1 2 O k t 2 0 1 2 Jan 2 0 1 3 A p r 2 0 1 3 Ju l 2 0 1 3 O k t 2 0 1 3 Jan 2 0 1 4 A p r 2 0 1 4 Ju l 2 0 1 4 O k t 2 0 1 4 Jan 2 0 1 5

NEWC Index (2011 – 2014)

Dec ‘14 US$63/ton

Dec ‘13 US$86/ton

Dec ‘12 US$93/ton

(27)% Jan ‘11

US$130/ton

• Coal Market has been under pressure for past two years. In Dec 2013, NEWC Index reached US$86/ton or 34% lower compared to the highest in Jan 2011 of US$130/ton

• Newcastle Index continued to fall by ~27% from US$86/ton in Dec 2013 to US$63/ton in Dec 2014

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

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

16%

41% 32%

11%

48 LS 56 RS 56 HS Others

Marketing Performance – 2015

More than 60% of total projected sales in 2015 has been locked

Customer Base – 2015

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

2015 Marketing Strategy

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

63% Locked

51% Locked 52% Locked

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