1

PT Toba Bara Sejahtra Tbk (“Toba”)

Company PresentationMarch 2014

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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.

Content

Performance

Corporate Profile

Investment Highlights & Growth Strategies

Business Overview

2014 General Guidance

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3

6

5

1

2

4

CSR & Environmental Highlights

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Corporate Profile1

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

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

concession areas located in East Kalimantan, Indonesia

Toba in Brief

Substantial and diversified thermal coal

reserves and resources

oJORC-compliant proved and probable reserves of

147 MM tons and measured, indicated and inferred

resources of 236 MM tons

oCoal brands with calorific values ranging from

4,700 - 5,800 Kcal / kg GAR

Reserves%

Strong growth profile & upside potential

oProduced 5.6 MM tons of coal in 2012 and grew to

produce around 6.5 MM tons of coal in 2013

o Prime location provides operational cost edge to

grow as a logistical & operational center for the area

oContinued exploration effort to increase our Reserves

and Resources. Current reserves only account for 52%

of total area, hence vast area remains unexplored

Revenue (1)

%

EBITDA(1)

%

Resources%

Total: 147 MM TonsTotal: US$ 422 Million Total: US$ 59 Million Total: 236 MM Tons

Note: (1) Revenue and EBITDA as per 2013 results

ABN80%

IM15%

TMU5%

ABN66%

IM16%

TMU18%

5

ABN74%

IM22%

TMU6%

ABN78%

IM14%

TMU6%

Notes:

1. Son of TS founder, Luhut B. Pandjaitan

2. Figures are rounded off

Ownership Structure

• 20-year Production

Operation Mining Permit

(“IUPOP”) expiring in

December 2029

• IUPOP was converted from

Kuasa Pertambangan

(“KP”) 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: 117MT- JORC

• Resources: 156MT- 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 AbadiPT Toba Sejahtra (“TS”) Roby Budi PrakosoPT Sinergi Sukses Utama

71.8% 0.8% 6.2% 5.1%

PT Toba Bumi Energi (“TBE”)

99.99% (2)

99.99% (2)

3.6%

ABN Minorities

49.0%

51.00% 99.99% (2)

Public

12.5%

Reserve

90.00%

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Majority Shareholder

Coal Mining

• PT Toba Bara

Sejahtra Tbk

• PT Kutai

Energi

• PT Pusaka

Jaya Palu

Power

• PT

Kartanegara

Energi

Perkasa

Power

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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 is a fast growing Indonesian enterprise with industries, ranging

from Energy Sector such as Natural Resources, Power, and Agriculture (Palm Oil) to Property

2007

• IM commenced

production at

200k tons

2011

• TMU commenced production

• Toba production hit 5m tons

2008

• ABN commenced

production at 100k tons

• Toba underwent

operational adjustment due

to drop in coal market

2010

• TS acquired the remaining share for IM

from minority shareholder

• Toba acquired 51.0% of ABN, 52.5% of

TBE (IM’s shareholding company) and

51.0% of TMU

• Toba production hit 4m tons

Key Milestones since Inception

Strong track record of acquisitions, development of greenfield mines, rapid production ramp-up and

experience to adjust operation in a down-market

2007 2008 2009 2010 2011 2012 2013

2012

• Toba acquired the minorities’shares in TBE and TMU

• IPO/Listed on IDX, 6th July 2012

• Eliminated overlapping issues with

plantation company (PKU)

2009

• ABN & IM production

reached 2m tons

2013

• IM successfully

extended IUPOP

until 2023

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Listed on IDX 06 July 2012

Number of Shares Offered 210,681,000 shares or 10.47%

IPO Proceed IDR 400,293,900,000

Anchor Investor Baring Private Equity Asia (8% at IPO)

Ticker Code TOBA

Initial Public Offering

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Investment Highlights and Growth Strategies2

Samarinda

Sungai Mahakam

Muara Jawa

Muara

Berau

Makassar Strait

Major City

Jetty

Transhipment Point

~55 Km

(total ~120 Km)

~65 Km

ABN

Kutai

Energy

Adjacent

locations for

all 3 mines

TMUABN

IM

ABN Jetty

IM Jetty

~ 5 km17km

Furthest pit to

jetty 25km | with

closest one ~5km

Major city is

less than 50

km

Close proximity

transhipment

point & jetty

Toba owns all infrastructures (coal processing plants, overland conveyors, and jetties), giving

significant operating leverage vs other concessions in surrounding areas

Prime Location Gives Significant Cost Advantage (i)

Balikpapan

TMU - IM Hauling Road

~ 120 km

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Prime Location Gives Significant Cost Advantage (ii)

Coal Chain Distance (a)

In km

Toba’s transportation costs are low due to its close proximity to the Transshipment Point

Notes : (a) Weighted average distance based on respective production usage of each transportation facility (from pit to vessel)

(b) Represent ABN & IM only

Source : Broker Reports

(b)

90

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Note: Areas already explored

Vast Unexplored Areas and

Relatively Long Reserve Life

• Explored 3,704 of 7,087 hectares of concession areas

(52% of total concession area) and drilled 3,512

boreholes as of 31 December 2011

• Additional JORC coal reserves and resources

expected to be discovered, especially at TMU where

only 680 hectares out of 3,414 hectares of

concession (20% of TMU concession area) have

only been explored

TMU

Source : Broker report

Toba’s reserve life of over 20 years compares

favorably with other listed peers

Toba’s Concessions Reserve life ~ Industry Comparison

ABN

IM

TMU

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2008 2009 2010 2011 2012 2013 2014e

TMU IM ABN

Yearly Coal ProductionMt : In Million Tons

Operational Data

• Production volume rose

significantly from only

800,000 tons in 2008 to 6.5 m

tons in 2013, booking CAGR

growth of 41.5% over

relatively short period of 5 yrs

• IM and TMU both contributed

to total production’s higher

volume growth of 40% and

200% respectively

• Stripping Ratio (SR) fell from

14.9x in 2012 to 13.4x in 2013

due to lowered mining costs

• TMU’s production increased

from only 88,000 tons in 1Q13

to high of 414,000 tons in

4Q13 post earlier-than-

expected completion of

hauling road from TMU-IM via

ABN in 2Q13

2008 2009 2010 2011 2012 2013

Production Volume ('mn ton) 0.8 2.0 4.0 5.2 5.6 6.5

ABN 0.1 1.1 3.1 3.8 4.4 4.2

IM 0.7 0.9 1.0 1.4 1.0 1.4

TMU - - - 0.0 0.2 0.9

Stripping Ratio (x) 11.9 10.5 9.9 12.7 14.9 13.4

Cumulative Production

achievement >10 million

tons

Cumulative Production

Achievement >20

million tons

Solid Operating Track Record

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5.65.2

4.0

2.0

0.8

6.5

7.2 – 7.8

Note: 2014e: Toba’s Production target in 2014

Evolution of Quarterly FOB Cash Cost from 2012-2013

Significant decrease in FOB vessel cash cost from US$ 57 in 4Q12 to US$ 49.0/ton in 4Q13 stemmed

from lower mining cost (overburden removal and dump distance account for two of Toba’s major cost

components)

Quarterly FOB Vessel Cash Cost

In US$/ton

Notes:

Quarterly cash costs figures are audited (1) FOB Vessel Cash Cost = COGS including royalty and selling expense – depreciation and amortization

(2) Adj. FOB vessel cash costs = COGS, including selling & marketing expense and royalty – depreciation & amortization of exploration & development and

excluding deferred stripping cost 14

67 69 60 57 55 55 53 49

77 73 63 52 59 56 51 51

17.7x

16.6x

14.2x

12.0x

15.1x

13.6x 12.7x 12.7x

0x

3x

6x

9x

12x

15x

18x

-

20

40

60

80

100

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013

FOB Vessel Cash Cost

FOB Vessel cash cost Adj. FOB Vessel cash cost SR

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Business Overview3

Key Message during 2013

Maximizing productivity and

coal sales amid weak coal

industry

Proven production achievement

where in end of 2013 posted 6.5

million tons above from 2013

production target of 5.8 – 6.4

million tons

Undergoing continuous

efficiency program to

improve profitability and

competitiveness

A series of projects were

completed throughout 2013 to

facilitate efficiency

program, including “hauling road”

and “underpass”

Increasing financial

capability to foster corporate

growth

Good financial standings where

cash rose to US$ 63.3 million at

end-2013, up by 74.3% from

December 2012, while supported

by available loan facilities from

internationally reputable banks

Supporting and actively

being involved in Corporate

Social Responsibility (CSR)

Actively participating in the

development in CSR, and receiving

several mining proper awards in

2013

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Key Milestones in 2013

2007 2008 2009 2010 2011 2012

• Hauling Road TMU – IM

completed ahead of

schedule

• TMU Production ready

for ramp up to 80 - 100 K

tons/month

May’13 Oct’13

• New CPP at IM nearing

completion

• IM’s capacity expected

to increase from 3 to 6

million TPA

Nov’13

• 2nd underpass

at ABN

completed

Apr’13

• TMU set up mine

operations in new

pit (block 4)

• Border-mining at

ABN & IM

commenced

Jan’13

• IM entered into

new Mining

Contract with

RPP for 5 years

Toba is on track to integrate its operation and infrastructure capabilities

……….. Dec’13Sep’13

• ABN Workshop

completed

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TMU IM

ABN

TMU

Toba’s Concessions

Underpass

Infrastructure

Loading Speed of

1,800 TPH

High Built CPP Cap

10 MM TPYHauling Road to IM

Mine Ops Commenced

at Block 4

Short Coal Hauling

Distance < 5km

CPP Ramp Up to 6MM

TPY

Conveyor for TMU

& Others

Short Coal Hauling

Distance 4km

ABN

TMU

Toba has Developed Infrastructure & Exploration

Capabilities

INDOMINING

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Integrate CPP Ops with

IM

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Performance4

Toba’s Operational Performance in 4Q 2013

Quarterly Production & Stripping Ratio (SR)Production in Million Tons

Production SummaryMT: Million Ton

2012 2013 Change Comment

Sales Volume

(MT)

SR (x)

5.5 6.4

14.9 13.4

16.4%

-10.1%

Sales volume grew significantly in line with production

volume growth

SR continued to fall resulting from lower mining cost

• Production volume of 1.8

MT in 3Q13 and 1.9 MT in

4Q13 was attributable to

TMU’s contribution in

boosting overall growth via

on-going ramp up

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5.6 6.5Production volume grew significantly by 17.0% y-o-y

from 2012 to 2013 mainly driven by border mining at

IM and production ramp-up at TMU

16.1%Production

Volume

(MT)

1,587 1,302 1,501 1,802 1,950

12.0x

15.1x13.6x

12.7x 12.7x

5x

10x

15x

20x

500

1,000

1,500

2,000

4Q'12 1Q'13 2Q'13 3Q'13 4Q'13

Production volume Stripping Ratio (SR)

ABN Operational Performance

ABN

TMU

IM

PT Kutai Energi

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Quarterly Production & Stripping RatioProduction in Thousand Tons

1,225 936 995 1,188 1,101

12.6x16.6x

14.2x12.7x

13.1x

5x

10x

15x

20x

500

1,000

1,500

4Q12 1Q13 2Q13 3Q13 4Q13

Production volume (mt) Stripping ratio

Dump

distance (m)1,723 1,719 1,864 1,843 1,779

Completed Infrastructure projects (underpass and workshop) to increase production and improve

cost efficiency

Dump distance was lowered gradually in 2013

3 Consecutive Years East Kalimantan Green Proper Mining Award

Key Highlights

IM Operational Performance

TMU

ABN

PT Kutai Energi

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Quarterly Production & Stripping RatioProduction in Thousand Tons

272 270 360 339 425

9.7x11.2x

12.9x 14.7x12.8x

0x

5x

10x

15x

20x

0

250

500

4Q12 1Q13 2Q13 3Q13 4Q13

Production volume (mt) Stripping ratio

Dump

distance (m)2,284 1,698 1,662 1,728 1,570

Built new CPP, increasing additional 3 millions tpa to become total 6 millions tpa of capacity

Dump distance fell by 31.2% from 4Q12 to 4Q13

2 Consecutive Years East Kalimantan Blue Proper Mining Award

Key Highlights

TMU Operational Performance

ABN

IM

PT Kutai Energi

Note: - - - Hauling road

85 88 147 275 420

10.8x 11.3x12.7x

10.3x

11.1x

0

5

10

15

0

100

200

300

400

500

4Q12 1Q13 2Q13 3Q13 4Q13

Production Volume Stripping Ratio

88

147

275

420

0

100

200

300

400

500

1Q13 2Q13 3Q13 4Q13

TMU Significant Production Ramp-UpProduction in Thousand Tons

After hauling

road completion

May

23

TMU completed 17 km hauling road in May 2013

ahead of schedule to connect with ABN’s road

and IM’s infrastructure facilities (CPP and Jetty).

This newly streamlined logistics flow maximizes

infrastructure sharing between ABN, IM, and

TMU, resulting in TMU production ramp up and

much improved overall cost efficiency

In 2013, Toba booked the highest 4Q production

volume against previous 4Q volumes throughout

its corporate history at 1.9 mn tons, mainly

contributed by TMU’s drastic production ramp up

Key Highlights

Quarterly Production & Stripping RatioProduction in Thousand Tons

397

422

2012 2013

23

59

2012 2013

12

36

2012 2013

2013 Financial Highlights

RevenueUS$ million

EBITDAUS$ million

Net Income (a)

US$ million

Note: (a) Net Income before minority interest

(b) Figures are audited

Although the weak global coal prices affected the Company’s overall ASP by 7.8% from US$ 72.2/ton in 2012 to

US$ 66.6/ton in 2013, Toba nevertheless demonstrated resilience by posting a stable 6.3% rise in revenue from

US$ 396.7 million in 2012 to US$ 421.8 million in 2013

EBITDA surged by a hefty 160.7% y-o-y from US$ 22.5 million in 2012 to US$ 58.6 million in 2013, resulting

from predominantly Toba’s successful strategy in expanding its sales volume, in addition to a combination of the

Company’s on-going cost efficiency initiatives and improvement in sales and marketing

Toba booked total comprehensive income (after minority interest) of US$ 36.1 million, up by a stellar 201.1%

from US$ 12.0 million in 2012

2012 2013 Change %

Operation

Sales Volume mton 5.5 6.4 15.9%

Coal production mton 5.6 6.5 16.6%

Stripping Ratio x 14.9 13.4 -10.1%

NEWC Index US$/ton 96.9 85.2 -12.1%

Per Ton Basis

ASP US$/ton 72.2 66.2 -8.4%

FOB Vessel Cash Cost US$/ton 62.5 52.5 -16.0%

Adj. FOB Vessel Cash Cost US$/ton 65.5 53.7 -18.0%

EBITDA US$/ton 4.1 9.2 125.0%

Financial

Sales US$'M 396.7 421.8 6.3%

COGS US$'M 348.5 342.3 -1.8%

Gross Profit US$'M 48.2 79.6 65.0%

Operating Profit US$'M 21.1 50.0 137.0%

EBITDA US$'M 22.5 58.6 160.7%

Net Income before Minority

InterestUS$'M 12.0 36.1 201.1%

Free Cash Flow US$'M (47.3) 40.9 186.5%

Capex US$'M 15.4 23.0 49.0%

Ratio

Gross Profit Margin % 12.2% 18.9% 55.2%

EBITDA Margin % 5.7% 13.9% 145.1%

Operating Profit Margin % 5.3% 11.9% 122.9%

2013 Financial Performance – Higher EBITDA Margin

Note (a) Adj. FOB vessel cash costs: COGS, Royalty, Selling Expenses excluding depreciation

and amortization

(b) Figures are audited

Coal production grew 16.6% yoy

driven by TMU production ramp-

up

(a)

Hence, EBITDA increased by

160.7% attributable to lower cash

cost and increased production by

-16.0% and 16.6% respectively

FOB vessel cash cost slashed by

16.0% yoy mainly due to lower

mining costs (lowered SR and

shortened dump distance)

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Strong Balance Sheet – More Room to Grow

The Company’s assets stood at US$ 311.7 million in 2013 or up 19.2% from US$ 261.5 as per end-December

2012

Total Liabilities rose by 20.3% y-o-y to US$ 181.2 million in 2013 from US$ 150.6 million as per 31st December

2012 and interest bearing debt expanded by 13.9% to US$ 55.9 million in 2013 from US$ 49.0 million as per

end of 2012

Total Equity in 2013 increased 17.6% to US$ 130.4 million from US$ 110.94 million as per end-2012, and this

was attributable to additional income for the period

Consolidated Balance SheetIn Thousand US$

Net Debt PositionIn Million US$

Net Debt

to Equity11% Net

Cash2% 2%

26

36

60

40 45

63

49 43 42

47

56

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013

Cash and cash equivalents Interest Bearing Debt

Net

Cash

Dec-12 Dec-13 % Changes

Cash and cash equivalents 36,307 63,302 74%

Fixed Assets 34,053 49,033 44%

Others 191,166 199,314 4%

Total Assets 261,526 311,648 19%

Trade Payables 58,362 62,217 7%

Interest Bearing debt 49,035 55,858 14%

Advances from Customers 11,625 27,906 140%

Others 31,560 35,187 11%

Total Liabilities 150,582 181,167 20%

Shareholders Equity 110,944 130,481 18%

Note: Figures are audited

Toba’s Capex Realization in 2013

In 2013, Toba spent Capex of US$ 22,9 million, allocated mainly for:

• Land compensation,

• Construction of new CPP at Indomining,

• Additional vehicles, machineries and heavy equipment,

• Completion of coal hauling road from TMU to IM through ABN, and

• Second underpass construction at ABN

In 2013, targeted Capex was US$ 27,1 million, and Toba managed to only spend US$ 22,9

million to meet required investment. This resulted in potential savings and carry-forward of

US$ 4.2 million in Capex

In US$’000

5,394

22,970

27,100

5,230

4,319

3,456 1,807 528

2,236

0

5,000

10,000

15,000

20,000

25,000

30,000

CPP Land comp.Vehicles, machineries and heavy eqHauling road Underpass Exploration Others CAPEX YTD 2013CAPEX PLAN 2013

Note:

In-house Capex figures for the year ended 2013

Potential Savings

US$ 4 mn

27

South Korea

10%

Japan

Hong Kong

Vietnam

Thailand

Taiwan

19%

China

43%

India

14% Malaysia

2011 2012 2013*)

Sales (million tons)

ABN 3.7 4.2 4.7

IM 1.8 1.1 1.4

TMU - 0.2 0.7

2013 Sales and Marketing – Quality & Diversified Buyers

GAR 52 ABN

18%

GAR 56HS ABN

22%

GAR 56RS ABN24%

GAR 58LS IM

8%

GAR 47 TMU10%

Others18%

Sales by Product

Note: * )This includes inter–subsidiaries sales

Note: Sales to export destinations ie. Vietnam, Thailand , Hong

Kong, Malaysia and Japan each below 3%

Initiatives Undertaken:

Commenced building well-diversified customer base and export market coverage

Generated good quality sales backed by quality buyers and favorable terms of payment

Achieved tighter discount rate to reference market price with ASP of US$ 65-68/ton28

0

20

40

60

80

100

120

140

160

180

200

2008 2009 2010 2011 2012 2013

US$ 62.5/tUS$ 50.1/t

US$ 65.5/t

US$ 91.3/t

US$ 72.2/tUS$ 66.2/t

Newcastle Index

Average Selling Price

Average Selling Price

(US$)

Source : Global Coal

Newcastle Index yearly average declined by 12.0% from US$ 96.9/ton in 2012 to US$ 85.3/ton in

2013

Comparatively, Toba’s ASP corrected 7.8% from US$ 72.2/ton in 2012 to US$ 66.6/ton in 2013

29

Strong Relationships with Multinational Customers

Major Customers

DRAGON ENERGY GROUP

Major customers provide the stable

business support for Toba’s

marketing…

… minimum marketing fees because

Toba handles our own marketing

internally

Toba’s Marketing Operations

Central Marketing Operations of all 3

subsidiaries

Internally developed customer base

that allows Toba to have low marketing

costs

Balance mix of long term contracts,

short term and spot

Active participation in reputable

conference and trade shows to promote

Toba brand

Enhance marketing strategy to sell

directly to end-users

30

31

2014 Guidance5

0.9

1.2

1.51.6

1.9

0

0.5

1

1.5

2

4Q2009 4Q2010 4Q2011 4Q2012 4Q2013

Toba’s Performance Guidance

Operation 2012 2013 Changes 2014E Changes

Production Volume (million tons) 5.6 6.5 17.0% 7.2 – 7.8 10.0 – 20.0%

Stripping Ratio (x) 14.9 13.4 (10.0%) 12.9 – 13.3 (0.7%) – (3.7%)

Average Selling Price (ASP) (US$/ton) 72.5 66.6 (7.8%) 63.0 – 67.0 (4.3%) – (6.0%)

Coal Production 2008 – 2014In Million Tons

2008 2009 2010 2011 2012 2013 2014e

TMU IM ABN

5.65.2

4.0

2.0

0.8

6.5

7.2 – 7.8

Notes: - All figures are rounded up to one decimal point

32

Highest 4Q production

volume throughout

corporate history

In million tons

Above 2013

internal guidance

of 5.8-6.4m

2014E

CAPEX in 2014

In 2014, Toba targets Capex at US$ 24,9

million with the following allocations:

• Construction of Palm Oil Mills in PKU

• Land compensation at TMU,

• Conveyor at ABN,

• Additional heavy equipment at ABN and

IM,

• Exploration activities in 3 mines

Capex - ABN Capex - TMUCapex- IM

In US$’000 In US$’000 In US$’000

7,863

639 556

9,058

Land Clearance

Exploration Others Capex

828

740

14893

1,809

Heavy equipment

Building Exploration Others Capex

2,235

1,078

348 429

589

4,678

Conveyor Heavy Equipment

Exploration Port Others Capex

Palm Oil Mills38%

Conveyor9%

Buildings5%

Equipments8%

Exploration5%

Land clearance31%

Others4%

Allocates US$

US$ ~9million

Note:

Capex figures based on RKAP 2014 (TOBA, ABN, IM ,TMU and PKU) 33

34

CSR & Environmental Highlights6

Providing health services to the local

communities

Toba is Committed to Being Responsible

Corporate Citizen

Creating educational opportunities for local

communities including renovating

schools, training teachers, providing post-

graduate educational assistance and

creating a literacy program for adults and a

scholarship program for school-aged

children

Creating local employment opportunities by

sourcing some of the Company’s site

workforce from the neighboring areas

Toba is continuously developing and implementing its corporate social responsibility programs

Helping groups of farmers plant crops of

vegetables and bamboo and assisting with

land rehabilitation

Creating Educational and Employment Opportunities

Providing Health Services

Supporting Farm Productivity

Toba is

Committed to

CSR, contributin

g ~US$ 300k

annually for

Community

Development

35

Local Media Publication on ABN’s CSR

ABN Awards Scholarships to Hundreds of

Elementary and High School Students

PT ABN Gives Free Medical Facilities, Milk, and

Fruits to 1,460 Children

PT ABN Builds Training Center for Local

Community

ABN’s CSR Successfully Develops Local

Women in Home Industry of Cassava Crackers

Production

“Kaltim Post, 15th April 2013”

“Kaltim Post, 31st July 2013”

“Kaltim Post, 20th June 2013”

“Kaltim Post, 10th October 2013”

36

2007 2008 2009 2010

2

0

1

1

Target

PROPER Mining Award for

ABN, IM, & TMU

Award and Recognition

ABN

East Kalimantan PROPER Green

Mining Award

2012 20142011

Ernst and Young

Social

Entrepreneur of

the Year 2011

2013

Indomining

East Kalimantan PROPER Blue

Mining Award

PT Toba Bara Sejahtra TbkRanks as one of Indonesia’s Top

50 companies

!

37

THANK YOU

39

Appendix

Toba’s coal quality

is in mid-upper

range

Coal Specifications

Calorific ValueGAR

Ash Sulphur

4,700 5,800

5,200 5,900

6,0005,300

4,200 7,200

4,900 6,500

5,000 5,100

4,500 6,700

4,9004,200

4,100 5,100

6,7004,200

2,5% 12,0%

1,5% 2,0%

2,5% 3,3%

4,0% 5,5%

5,0% 5,5%

4,0% 8,0%

4,5% 13,0%

7,0% 11,5%

9,0%2,0%

1,9% 10,9%

0,2% 1,4%

0,1% 0,2%

0,1%0,1%

0,2% 2,0%

1,0%0,6%

0,7%0,5%0,1%

1,5%

1,0%0,7%

0,2% 0,5%

0,2% 1,0%

TOBA

TOBA TOBA

Source: Broker Reports

40

Toba’s production growth is among the highest in the industry over the last 4 years

Production Growth Comparison 2009 - 2012

CAGR %

Solid Operating Track Record

41

Executions and Achievements so far… (I)

Manage Cash Cost: lower SR &

dump distance

OPERATION

AchievementExecutionInitiative

Construct Hauling Road from

TMU to IM

Share Existing Infrastructure

Adjusted mine plan in 3Q12 and

lowered dump distance despite pre-

stripping in 1Q13 at ABN

Construction commenced end-2012

and was scheduled for completion in

2Q13

TMU commenced infrastructure-sharing

using ABN’s road and IM’s CPP & Jetty

Provide Financing to IM

FINANCIAL

Optimize Sales through Hedging

Centralize Fuel Supply

Maximized current ideal capital structure

by using loan to finance new CPP

construction and land compensation

Made available hedging line with

notable financial institutions

Sourced constant bulk supply from

major fuel supplier to allow for good

monitoring of effective fuel usage

Secured 3-year US$ 15 mm term loan

from SCB at competitive lending rate

of LIBOR + applicable rate

No hedging has been utilized. Sold

~72% of 2013 sales volume using fixed

pricing, and securing cash

prepayments

Cash cost is on track to be

lowered ~US$8/t by FY13

Hauling road was completed in

May 2013, ahead of schedule

TMU’s underwent significant

production ramp-up from 88K tons

in 1Q13 to 414K in 4Q13

Sourced supply at competitive

price, while continuing to seek

other sources with better pricing

In

Progress

In

Progress

Conduct Joint Mine PlanMaximizing extraction of ~2 MT of

high quality coal reserve with low SR

ABN & IM commenced joint-

border mining end-2012

In

Progress

AchievementExecutionInitiative

42

Executions and Achievements so far… (II)

Secure Sales Volume and

Maintain this Activity

continuously

COMMERCIAL

AchievementExecutionInitiative

TOBA successfully sold and secured

~ 50-90% of targeted sales volume for

2013

Develop and Implement Corporate

Social Responsibility

CORPORATE SOCIAL RESPONSIBILITY / ENVIRONMENT

AchievementExecutionInitiative

• Created Educational Program for

local Communities

• Provided health services to local

communities

• Created local employment

Proper Mining award in East

Kalimantan for ABN and IM

• ABN secured ~ 80-90% of 2013

targeted sales

• IM secured one-year contract

with one of its major customers

at competitive price

• TMU secured ~50%

prepayment from one of buyers

Enhance Marketing Expertise

TOBA negotiates directly with

logistics providers

Internal marketing team currently

handles sales activities

Maximize Cost Efficiency Lower logistics cost (barging

costs) by 18% from 1Q13 to 2Q13

TOBA does not depend on third

party marketing agent

In

Progress

43

Integration of three (3) mines

• Benchmarking and

sharing between

departments and

functions

• Optimize and

coordinate mine

planning and logistics

• Centrally coordinate

and streamline

corporate finance,

legal, human resource

and CSR functions

• Joint mine plan and

infrastructure sharing

1Increase coal reserve

and resource

• Continue exploration

activities to increase

proven and probable

reserves as only 52%

has been explored to

JORC standard

• Consider opportunities

to acquire coal

concessions with

significant reserves

3Strengthen existing

and develop new customer

relationships

• Supply a higher

proportion of sales

volume to end users,

while maintaining

relationships with

existing coal traders

• Target customers in

Japan, Taiwan, South

Korea, China, Vietnam

and Hong Kong, South

East Asia and India

4Continue to focus on

health and safety, environmental track

record and commitment to CSR

• Maintain and enhance

high international

operating standards,

utilize automated

mining methods to

minimize accidents and

enhance safety

• Foster community ties

through development

programs as well as job

creation

5Organically increase

coal production levels

• Expand coal production

through increased

production and mine

development activities

• Strengthen

relationships with third

party mining

contractors and work

closely with them to

improve their

productivity

2

Toba’s Business Strategies

Growing Reserves and Maintain Profitability at Different Cycles

44

• Current production capacity (31 December 2012):

– Crusher: 10 MM tonnes p.a.

– Conveyor: 10 MM tonnes p.a.

• Produces two varieties of blended thermal coal

– ABN 52: Marketed CV(1) of 5,200 kcal / kg GAR

– ABN 55: Marketed CV of 5,500 kcal / kg GAR

– ABN 58 : Marketed CV of 5,800 kcal / kg GAR

• Substantially all of the owners of the land within ABN’s

concession area have been compensated and ABN has been

granted the exclusive right to mine those areas

• Area: 2,990 ha

• Location: Sanga-Sanga, Kutai Kartanegara, East Kalimantan

• Type of license: IUPOP

• Expiry date: 1 December 2029

• Commencement of production: September 2008

• 2012 production: 4.4 MM tonnes

• Mining consultant: PT Runge Indonesia

ABN: Coal Concession Overview

IM

TMU

ABN

JettyABN

Overview

Operations

Marketing

• Historically sold between 50%-100% of its annual production through

long-term (longer than 1 year) with coal trading companies

– The remainder were sold on the spot market

• Currently, IM sells coal to buyers based on fixed priced contracts up

to one year, backed with pre-determined cash prepayments

Note:

1. Calorific value

45

• Current production capacity (31 December 2012):

– Crusher: 3.0 MM tonnes p.a.

– Conveyor: 4.5 MM tonnes p.a.

• Produced one variety of blended thermal coal “Indomining”

with marketed CV(1) of 5,700 kcal / kg GAR in 2012

– May produce additional varieties of blended thermal coal in

the future

• Has compensated the majority all of the owners of the land

within its concession area for their land and has been granted

the exclusive right to mine those areas

• Area: 683 ha

• Location: Sanga-Sanga, Kutai Kartanegara, East Kalimantan

• Type of license: IUPOP

• Expiry date: IUPOP effective until 2023 and can be renewed for

another 10 years

• Production commencement: August 2007

• 2012 production: 1 MM tonnes

• Mining consultant: PT SMG Consultants

IM: Coal Concession Overview

IM

TMU

Overview

Operations

Marketing

• Historically sold approximately 50% of its annual production through

short-term (one year or shorter) contracts with coal trading companies

– Clients include Glencore, Flame, Peabody, Dragon, Aempire

• The remainder are sold on the spot market

• Currently, IM sells coal to buyers based on fixed priced contracts up to

one year, backed with pre-determined cash prepayments

IM

Jetty

Note:

1. Calorific value

ABN

46

• Current production capacity (31 December 2012):

– Crusher: 1.4 MM tons p.a.

• Produces one variety of blended thermal coal “Trisensa-

47”, with marketed CV(1) of 4,700 kcal / kg GAR

– May produce additional varieties of blended thermal

coal in the future

• Area: 3,414 ha

• Location: Loa Janan, Muara Jawa and Sanga-Sanga,

Kutai Kartanegara, East Kalimantan

• Type of license: IUPOP

• Expiry date: 14 December 2023

• Commencement of production: October 2011

• 2012 coal production: ~257,000 tons

• Mining consultant: Marston & Marston

TMU: Coal Concession Overview

Overview

Operations & Marketing

Note:

1. Calorific value

Kutai Energi haul

road and jetty

(17 km)

IM

ABN

TMU

Sungai Sangasanga

Sungai Dondang

Pulau Seribu

Jetty KE

Completed haul road

to ABN and IM (25 km)

47