Company Presentation FY 2015

1

PT Toba Bara Sejahtra Tbk (

䇾

Toba

䇿

)

Company Presentation

Full Year 2015

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

2015 Operational Highlights

3

2015 Marketing Highlights

Guidance for 2016

1

2015 Financial Highlights

4

Company Profile

 JORC-compliant proved and probable reserves of 147 MM tons and measured, indicated and inferred resources of 236 MM tons

 Coal brands with mid to upper range calorific

values (CV) of 4,700-5,800 kcal/kg GAR

 Strong production growth profile, registering

~34% CAGR between 2008 and 2015. Produced 6.5 MM tons in 2013 and grew ~25% to 8.1 MM tons in 2014

 Prime location near Capital of East Kalimantan

and proximity to waterways provides

operational cost edge to grow as logistical & operational center for the area

Strong Growth

Profile

Toba specializes in thermal coal production and comprises of three mining subsidiaries: Adimitra

Baratama Nusantara (ABN), Indomining (IM) and Trisensa Mineral Utama (TMU)

Toba Bara Sejahtra in Brief

Diversified Thermal Coal

Reserves and Resources

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 to north is less than

50 km

Adjacent locations for all

3 mines

Close proximity to jetty and transhipment point of Muara

Jawa Distance from pit to

jetty, with closest one ~5 km and furthest ~25 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

up to 10 Mn TPA Short Coal Hauling

Distance < 5km

~16 km Hauling Road to Connect with ABN

Mine Ops Commenced at Block 4

CPP Capacity (cap) Ramped Up to 6 Mn Tons/Annum (TPA)

IM Conveyor for TMU usage &

Others

Short Coal Hauling Distance ~4km

Infrastructure & Operational Capabilities

Toba’s Concessions

Integrated CPP and

Jetty Ops with IM 7

Note: PT Adimitra Baratama Nusantara (ABN) PT Indomining (IM)

 20-year Production Operation Mining Permit (䇾IUP-OP䇿) expiring in December 2029

 IUP-OP was converted from

Kuasa Pertambangan (䇾KP䇿) in 2009

 IUP-OP expires in June 2013

 IUP-OP was converted from KP in 2010

 IUP-OP extension was

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

 13-year IUP-OP expires in December 2023

 IUP-OP was converted from a KP in 2010

 Plantation permit of PT Perkebunan Kaltim Utama I (PKU) 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: 37 MT- JORC

 Reserves : 8 MT - JORC

 Resources: 43 MT- JORC  Planted Area: 2,896 ha

Ownership Structure

Note:

1. Figures are rounded off

License

Area

Davit Togar Pandjaitan _{PT Bara Makmur Abadi}

PT Toba Sejahtra PT Sinergi Sukses Utama Roby Budi Prakoso

71.8% 0.8% 6.2% 5.1%

PT Toba Bumi Energi (䇾TBE䇿)

99.99% (1) 99.99% (1)

3.6%

ABN Minorities

49.0%

51.00% 99.99% (1)

Public

12.5%

Reserve

90.00%

9

2015 Operational Highlights

Realization

2015

“Strengthening Resilience for Sustainable Growth”

Operational 2014(2) ₂₀₁₅ Δ

%

Production Vol 8.1 6.1 (24.7)%

Sales Vol 7.9 6.4 (19.0)%

Stripping Ratio 13.3 12.3 (7.5)%

Sales 500.0 348.7 (30.3)%

EBITDA 67.0 53.7 (19.9)%

Net Profit 35.5 25.7 (27.6)%

Financial 2014 2015

63.7

NEWC Index 70.8 59.2 (16.4)%

ASP 54.8 (14.0)%

mn ton mn ton x

US$/ton US$/ton

US$ mn US$ mn US$ mn

Δ%

EBITDA/Ton US$/ton 8.5 8.4 (1.1)% Focused on profitable production output

through optimization of :

 Infrastructure and connectivity sharing

(hauling road, coal processing plants (CPP), & jetties)

 Joint mine plan between three adjacent

operating mines

 Competitive & premium coal pricing

driven by strong coal branding from

consistency in scheduled delivery/product quality and established customer

relationship with diversified customer base

 Average Selling Price (ASP)

outperformance relative to benchmark

Newcastle due to sale executions based on well-timed predictions in market trends

Note:

(1) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization (2) Restated due to compliance on PSAK 24R implementation

2008 2009 2010 2011 2012 2013 2014 2015 2016

ABN IM TMU

G u id a n c e

Annual Coal Production

Mt : In Million Tons

5.6

6.5

5.0 - 7.0

8.1

 Production volume rose from only 800K tons in 2008 to 6.1 mn tons in 2015, booking CAGR growth of 33.6% over 8 years

 With strategy to sustain certain margin, while preserving life-of-mine (LoM) reserves, 2015 production reached 6.1 mn, in line with 2015 target of 6.0-8.0 mn tons and mine plan

 Stripping Ratio (SR) stabilized

at 12.3x, or at higher end of 2015 target range of 11x-12x, but lower than 13.3x in 2014

 2015 overall results from subsidiaries came in line with 2015 annual guidance

Cumulative production achievement >10 Mt

Cumulative production achievement >20 Mt 5.2

4.1

0.8

2.0

2015 Production

2008 2009

ABN (Mt) IM (Mt)

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 (Mt) 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 11

2015 6.1 3.9 1.2 1.0 12.3x 6.1

2015 Operational Performance

Quarterly Production & Stripping Ratio (SR)

Production in Thousand Tons

Production Summary

MT: Million Ton

2014 2015 Change Comment

Sales Volume

SR (x)

7.9 6.4

13.3 12.3

(19.0)%

(7.5)%

Sales volume decreased by 19.0% in line with production adjustment

SR contracted resulting in lower mining cost

8.1 6.1 Production volume declined y-o-y to 6.1 mn tons in _{2015 in line with mine plan, while ensuring certain} margin and optimizing reserve preservation

(24.7)%

Production Volume

Production Summary

MT: Million Ton

 Q-o-q production volume of 1.5 mn tons in 4Q15 came in line with 2015 quarterly guidance of 1.5 -2.0 mn tons

 2015 SR and quarterly SR

stabilized at 12x level, in line with annual and quarterly SR guidance of 11x - 12x

 Quarterly SR decreased y-o-y by 12.3% from 13.8x in 4Q14 to 12.1x in 4Q15

12

1,950 1,911 2,160 2,330 1,653 1,505 1,469 1,565 1,529 12.7x 13.5x 13.8x 12.5x 13.8x _12.4x 12.5x _{12.0x 12.1x}

0.0x 5.0x 10.0x 15.0x 20.0x 0 500 1,000 1,500 2,000 2,500

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

TOBA

ABN Operational Performance

ABN

TMU

IM

PT Kutai Energi

Quarterly Production & Stripping Ratio Production in Thousand Tons

Key Highlights

 4Q15 quarterly production increased y-o-y and q-o-q from 4Q14 and 3Q15 respectively, both in line with

2015 internal guidance

 SR in 4Q15 edged down q-o-q to 12.6x level from 13.0x in 3Q15, and by 11.3% y-o-y from 14.2x in 4Q14

13

930 904 969 987 994

14.2x

13.1x 13.3x 13.0x _12.6x

0x 5x 10x 15x 20x

840 860 880 900 920 940 960 980 1,000 1,020

4Q14 1Q15 2Q15 3Q15 4Q15

ABN

IM Operational Performance

TMU

ABN

PT Kutai Energi

Quarterly Production & Stripping Ratio Production in Thousand Tons

Key Highlights

 Production increase of 288K tons in 4Q15 came in line with 2015 internal quarterly guidance of 275K -

375K tons

 SR in 4Q15 edged up q-o-q and y-o-y respectively

14

493 388 231 319 288 13.3x

12.0x 12.7x 12.2x 13.6x

0x 5x 10x 15x

0 100 200 300 400 500 600

4Q14 1Q15 2Q15 3Q15 4Q15

IM

TMU Operational Performance

ABN IM

PT Kutai Energi

Note:

- - -

Hauling road

Key Highlights

Quarterly Production & Stripping Ratio Production in Thousand Tons

 4Q15 production volume came in at 247K tons, in line with 2015 internal quarterly production guidance of

225K-375K tons

 4Q15 SR on q-o-q and y-o-y basis stabilized at 8.3x and declined by 35.7% from 12.9x respectively due

to operational improvement

15

231 213 269 259 247 12.9x

10.4x

9.4x

8.3x _8.3x

0x 5x 10x 15x

0 50 100 150 200 250 300

4Q14 1Q15 2Q15 3Q15 4Q15

TMU

16

2015 Financial Highlights

Evolution of Quarterly FOB Cash Cost from 3Q12-4Q15

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 deferred exploration & development costs 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

60 57 55 55 53 49 49 53 51 50 47 43 41 38

63

52

59

56

51 52 51 54 50 51

46

42 ₄₁

38 14.2x

12.1x

15.1x

13.6x

12.7x 12.7x 13.5x

13.8x

12.5x

13.8x

12.4x 12.5x _{12.0x 12.1x}

0x 3x 6x 9x 12x 15x 18x 21x

0 20 40 60 80 100

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

51.5 40.7 12.4 10.3 4.3 4.8 2014 2015 TMU IM ABN

54.9 _44.9

48.4 42.5 46.9 35.0 2014 2015 TMU IM ABN

4.4 _3.9

2.3 1.2 1.4 1.0 2014 2015 TMU IM ABN 6.1

Operational & Financial Highlights

Production (mn tons)

8.1

24.7%

FOB Cash Cost (US$/ton)

51.3 42.2

17.7%

EBITDA (US$ mn)

67.0 53.7

19.9%

1

2

3

In line with the mine plan,

production volume decreased 24.7% y-o-y to 6.1 mn tons in 2015. Sales volume decreased 19.0% to 6.4 mn tons over the same period, following the production adjustment

FOB cash cost fell by 17.7% y-o-y,

resulting from continuous cost

management initiatives, better

execution of mine plan, and lower fuel costs

EBITDA declined by 19.9% y-o-y to US$ 53.7 mn in 2015, yet EBITDA margin increased from 13.4% to

15.4% over the same period due to

the same reasons above

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

Financial and Operational Highlights

All figures are in million US$ unless

otherwise stated 2014

3)

2015 Changes

Operation

Sales Volume mn ton 7.9 6.4 (19.0)%

Production Volume mn ton 8.1 6.1 (24.7)%

Stripping Ratio (SR) X 13.3 12.3 (7.5)%

FOB Cash Cost1)

US$/ton 51.3 42.2 (17.7)%

NEWC Index Price US$/ton 70.8 59.2 (16.4)%

Average Selling Price (ASP) US$/ton 63.7 54.8 (14.0)%

Financial Performance

Profit (Loss) 2014 2015 Changes

Sales US$ mn 500.0 348.7 (30.3)%

Cost of Goods Sold US$ mn 413.8 278.1 (32.8)%

Gross Profit US$ mn 86.2 70.5 (18.2)%

Operating Profit US$ mn 55.7 42.3 (24.1)%

EBITDA2)

US$ mn 67.0 53.7 (19.9)%

Profit for the Period US$ mn 35.5 25.7 (27.6)%

Total Comprehensive Income for the

Period US$ mn 31.7 29.8 (6.0)%

EBITDA/ton US$/ton 8.5 8.4 (1.1)%

Operating cash flows US$ mn 18.9 19.7 4.2%

Capex US$ mn 15.4 12.1 (21.4)%

Balance Sheet 2014 2015 Changes

Interest Bearing Debt US$ mn 58.1 64.0 10.2%

Cash and Cash Equivalents US$ mn 47.8 45.5 (4.8)%

Net Debt US$ mn 10.3 18.5 79.6%

Total Assets US$ mn 300.7 282.4 (6.1)%

Total Liabilities US$ mn 158.8 127.3 (19.8)%

Total Equity US$ mn 141.9 155.1 9.3%

Financial Ratios

Gross Profit Margin % 17.2% 20.2%

EBITDA Margin % 13.4% 15.4%

Operating Profit Margin % 11.1% 12.1%

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 (3) Restated due to compliance on PSAK 24R implementation

16.4% weaker y-o-y NEWC Index price caused decline in ASP at lower pace of 14.0% due to marketing initiative of predicting market downtrend and securing contracts at fixed price

Financial position remains solid as

cash preservation is maintained with

cash and cash equivalents at US$ 45.5 million as of Dec 2015

Stabilization of annual SR to 11x-12x

level is shown by y-o-y decline by 7.5% to 12.3x in 2015

19

Gross profit margin, EBITDA margin, and operating margin each rose y-o-y

to 2015 resulting from better

operational performance, disciplined cost management initiatives, and effective marketing strategy

3)

Balance Sheet

Consolidated Balance Sheet

In Million US$

Net Debt to EBITDA2)

In Million US$

 Total assets moderated 6.1% to US$ 282.4 mn at end-2015 from US$ 300.7 mn as per end 2014,

while liabilities dropped much more by 19.8% to US$ 127.3 mn over the same period

 Total equity value increased 9.3% to US$ 155.1 mn from US$ 141.9 mn, attributable to additional

profit for the period booked in unappropriated retained earnings

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

Note:

(1) Restated due to compliance on PSAK 24R implementation

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

20

282.4

Total Assets 300.7 (6.1)%

Interest Bearing Debt 58.1 64.0 10.2%

Total Liabilities 158.8 127.3 (19.8)%

Shareholders Equity 141.9 155.1 9.3%

Balance Sheet Dec ’141) _Dec ‘_{15 Changes}

Cash and Cash Equivalent 47.8 45.5 (4.8)%

10.3

9.2

8.9

13.3

18.5

9.5

17.7

12.1 12.2 _11.7

0 2 4 6 8 10 12 14 16 18 20

4Q14 1Q15 2Q15 3Q15 4Q15

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

21

2015 Marketing Highlights

Overall Marketing Performance

Covergence of NEWC Index & ASP (in US$/ton) Sales by Product Mainly Contributed by 5600 (GAR)

 Average NEWC Index declined by 16.4% from US$ 70.8/ton 2014 to US$ 59.2/ton in 2015, while ASP

contracted less by 14.0% from US$ 63.7/ton to US$ 54.8/ton over the same period

 at ~66%, the 5,600 GAR products account for the largest portion of 2015 total sales volume

22 US$/ ton 98.5 121.1 96.9 85.3 70.8 59.2 65.5 91.3 72.2

66.6 _63.7

54.8 0 20 40 60 80 100 120 140

2010 2011 2012 2013 2014 2015

NEWC

ASP _12.1%

35.6%

30.0%

10.1%

8.2%

4.0%

0.0 0.5 1.0 1.5 2.0 2.5

4800 5600 HS 5600 RS 5800 5900 LS Others Million Tons Notes:

- HS is High Sulphur, max 2.0%

- RS is Regular Sulphur, max 1.0%

More Diversified Market Base & Customer Base

Initiatives Undertaken:

Total Sales by Customer Type Sales Destinations by Country

 Building well-diversified export destination base and customer base backed by positive demand

prospects and quality customers respectively: In 2015, Korea replaced China as main export

destination, while the customer base consisted of mainly reputable international traders with growing composition of notable regional end-users, increasing from 3.6% in 2014 to 36.8% in 2015

 Maintaining product brand with customers by making good on delivery with specifications ensured

 Achieving tighter discount to even premium to Newcastle adjusted reference price

23 32.4%

13.9%

12.8%

10.1%

8.9%

8.7%

4.3%

4.1%

3.2%

1.7%

0.0 0.2 0.4 0.6 0.8 1.0

Korea Taiwan Malaysia India China Japan Vietnam Thailand Bang'desh Others

Million Tons

2.1 Mt

63.2% 36.8%

Traders End-Users

24

Guidance for 2016

Snapshot of 2016F

Operation

Prod Vol (mn ton)

SR (x) 12.3x

6.1 2014

13.3x 8.1

NEWC Coal Price (US$/ton) 70.8 59.2

 Objective is to execute disciplined mine plan that generates certain margin without compromising long

term reserves

 After 17.7% y-o-y reduction in FOB cash cost in 2015, joint mine plan and infrastructure sharing are to be better streamlined among 3 operating subsidiaries, with initiatives to lower costs throughout value chain from mining to logistics costs

 Marketing is to focus on better diversification of export destination base and customer base (ideal mix between traders and end-users) and maintaining product branding

 2016 CAPEX is estimated at US$ 5 - 8 mn to support mainly mining facilities and equipment, and to

lesser extent, plantation operation of PKU. Currently, PKU is in final stage of constructing palm oil mill with capacity of 30 fresh fruit bunch (FFB) / hour to be completed by first semester 2016

 To maintain sustainable business growth by having more stable revenue stream, Toba is currently

evaluating prospects of undergoing downstream integration in energy-related sector

25

11x - 12x 5 - 7 2016 F

50 - 55 2015

21

2015 Marketing Highlights

4

Overall Marketing Performance

Covergence of NEWC Index & ASP (in US$/ton) Sales by Product Mainly Contributed by 5600 (GAR)

 Average NEWC Index declined by 16.4% from US$ 70.8/ton 2014 to US$ 59.2/ton in 2015, while ASP contracted less by 14.0% from US$ 63.7/ton to US$ 54.8/ton over the same period

 at ~66%, the 5,600 GAR products account for the largest portion of 2015 total sales volume

22 US$/ ton 98.5 121.1 96.9 85.3 70.8 59.2 65.5 91.3 72.2

66.6 _63.7

54.8 0 20 40 60 80 100 120 140

2010 2011 2012 2013 2014 2015 NEWC

ASP _12.1%

35.6%

30.0%

10.1%

8.2%

4.0%

0.0 0.5 1.0 1.5 2.0 2.5

4800 5600 HS 5600 RS 5800 5900 LS Others Million Tons Notes:

- HS is High Sulphur, max 2.0% - RS is Regular Sulphur, max 1.0% - LS is Low Sulphur, max 0.6%

More Diversified Market Base & Customer Base

Initiatives Undertaken:

Total Sales by Customer Type Sales Destinations by Country

 Building well-diversified export destination base and customer base backed by positive demand prospects and quality customers respectively: In 2015, Korea replaced China as main export

destination, while the customer base consisted of mainly reputable international traders with growing composition of notable regional end-users, increasing from 3.6% in 2014 to 36.8% in 2015

 Maintaining product brand with customers by making good on delivery with specifications ensured  Achieving tighter discount to even premium to Newcastle adjusted reference price

23 32.4% 13.9% 12.8% 10.1% 8.9% 8.7% 4.3% 4.1% 3.2% 1.7%

0.0 0.2 0.4 0.6 0.8 1.0

Korea Taiwan Malaysia India China Japan Vietnam Thailand Bang'desh Others Million Tons 2.1 Mt 63.2% 36.8% Traders End-Users

24

Guidance for 2016

5

Snapshot of 2016F

Operation

Prod Vol (mn ton)

SR (x) 12.3x

6.1

2014

13.3x 8.1

NEWC Coal Price (US$/ton) 70.8 59.2

 Objective is to execute disciplined mine plan that generates certain margin without compromising long term reserves

 After 17.7% y-o-y reduction in FOB cash cost in 2015, joint mine plan and infrastructure sharing are to be better streamlined among 3 operating subsidiaries, with initiatives to lower costs throughout value chain from mining to logistics costs

 Marketing is to focus on better diversification of export destination base and customer base (ideal mix between traders and end-users) and maintaining product branding

 2016 CAPEX is estimated at US$ 5 - 8 mn to support mainly mining facilities and equipment, and to lesser extent, plantation operation of PKU. Currently, PKU is in final stage of constructing palm oil mill with capacity of 30 fresh fruit bunch (FFB) / hour to be completed by first semester 2016

 To maintain sustainable business growth by having more stable revenue stream, Toba is currently evaluating prospects of undergoing downstream integration in energy-related sector

25

11x - 12x 5 - 7

2016 F

50 - 55