1

PT Toba Bara Sejahtra Tbk (“Toba”)

Company PresentationApril 2017

PT Toba Bara Sejahtra Tbk (TOBA)

Company PresentationSeptember 2017

Disclaimer

These materials have been prepared by PT Toba Bara Sejahtra Tbk (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.

2

Table of Contents

2

Company Profile

Performance Highlights

3

1

Strategy to Venture into Power

3

i Sulbagut-1 Project

ii Sulut-3 Project

4

Performance HighlightsPerformance Highlights2 Company Profile1

Kalimanta

n

East Kalimantan

PT Toba Bara Sejahtra Tbk in Brief

Location: Kutai Kartanegara,

Kalimantan Timur

Total Concession: 7.087 ha

Coal Mining

Location: Kutai Kartanegara,

Kalimantan Timur

Hak Guna Usaha (HGU) covers

8.633 ha. where 2.701 ha has

been planted

Palm Oil Plantation & Mill

5

Power Generation

GLP and MCL established in February 2016 and

March 2017 respectively for development of steam

(coal) fired power plant project (CFPP) with capacity of

2x50 MW each

25 year Power Purchase Agreement (PPA) through

Independent Power Producer (IPP) scheme with PLN

as single offtaker

Gorontalo

North Sulawesi

Note:

1. PLN: PT Perusahaan Listrik

Negara (Persero)

Ownership Structure

6

License

Area

20-year Production

Operation Mining Permit

(IUP-OP) expiring in

December 2029

2.990 ha

IUP-OP extension was

completed in March

2013 (First out of 2

extensions: in 2023.

with tenor of 10 years

each)

683 ha

13-year IUP-OP expires

in December 2023

3.414 ha

Plantation permit of PT

Perkebunan Kaltim

Utama I (PKU) expires

in 2036

IUP-P for downstream

processing

8.633 ha (Right to Use

Land)

GLP’s PPA with PLN(1)

for 25- year contract

~60 ha

MCL’s PPA with PLN(1

for 25- year contract

~30 - 40 ha

Off-take (take or pay)

by PLN for 25 years

Planted Area: 2.701

ha

Off-take (take or pay)

by PLN for 25 yearsReserveReserves: 117 MT - JORC

Resources: 156 MT - JORC

Reserve: 22 MT - JORC

Resources: 37 MT - JORC

Reserves : 8 MT - JORC

Resources: 43 MT - JORC

Davit Togar

Pandjaitan

PT Bara Makmur

AbadiPT Toba Sejahtra Roby Budi Prakoso

PT Sinergi Sukses

Utama

61.91% 10.00% 6.25% 5.10%

PT Toba Bumi Energi

(“TBE”)

99.99%

99.99%

3.64%

51.00% 99.99%

Public *)

12.35%

90.00% 60.00%

Highland Strategic

Holdings Pte. Ltd.

0.75%

*) Incl. Baring Private Equity

as anchor investor

90.00%

99.60%

Strategic Mine Locations

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

operating leverage vs other concessions in surrounding areas

Muara Berau

Muara Jawa

Makassar Strait

~55 km

(total ~120 km)

Balikpapan

Samarinda

~65 km

Major

City

Jetty Transhipment

Point

TMU – IM

Hauling Road

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

25 km

7

Overland & Barge

Loading Jetty: Speed

of 1.800 TPH

High Built CPP Cap

up to 10 Mn TPA

Short Coal Hauling

Distance < 5km

Hauling Road to

Connect with ABN

CPP Capacity : 6 Mn

Tons/Annum (TPA)Conveyor to Jetty

Short Coal Hauling

Distance ~4km

Infrastructure & Operational Capabilities

TOBA’s Concessions

ROM Stockpile

8

Note: PT Adimitra Baratama Nusantara (ABN)

PT Indomining (IM)

PT Trisensa Mineral Utama (TMU)

PPA signing with

PLN for Sulut-3

Power Project

Engineering Procurement Contract

(EPC) signing with SEPC* for

Sulbagut-1 Power Project

Contracts and Awards Earned in 9M17

7 April 2 May 7 July 11 July 14 July

Project Financing Signing with

Bank Mandiri worth US$ 171.8 mn

for Sulbagut-1 Power Project

Material Information

9

Financing Date with

PLN for Sulbagut-1

Power Project

Special Transaction Loan Facility

and Non-Cash Loan of US$ 50

mn with Bank Mandiri

* Shanghai Electric Power Construction Co. Ltd.

ABN received Gold PROPER

Enviromental Award from Provincial

Govt for 3 consecutive years

IM and TMU received Green PROPER

Enviromental Award for 2 consecutive

years

IM received certificates for ISO 14001.

OHSAS 18001 and ISO 9001

ABN received Award from Customs

Office of East Kalimantan as “Ideal”

Company

TMU received Pratama Award from

Ministry of Energy. Mines. &

Resoucres (MEMR)

10

Performance Highlights2

4.1 Mt

5.2 Mt5.6 Mt

6.5 Mt

8.1 Mt

6.1 Mt5.5 Mt

5.0-6.0 Mt

$99 $121 $97

$85

$71

$59$66

$65-70

0

20

40

60

80

100

120

140

0

1

2

3

4

5

6

7

8

9

10

2010 2011 2012 2013 2014 2015 2016 2017 est.

Toba Consolidated NEWC Price

30.1% 32.9%

5.7%13.9% 13.5% 15.4% 15.2%

Stablemargin

EBITDA Margin

Production Profile

11

Source: Coal price from GlobalCoal

Amidst coal price volatility over the past several years and to sustain the Company’s survival mode, Toba

has undergone cost efficiency initiatives as shown by stable EBITDA margin

Operational Performance

Quarterly Production & SRProduction in Thousand Tons

Production SummaryMT: Million Ton

3Q16 3Q17 Change Comment

Sales Volume

SR (x)

1.2 1.3

12.8 12.6

9.8%

(1.4)%

Sales volume tracked its 3Q17 production volume

SR in 3Q17 was still in line with target

1.4 1.4 Production volume in 3Q17 was still in line with target(0.0)%Production

Volume

Production SummaryMT: Million Tons

Q-o-q production volume has

remained stable and in line with

2017 quarterly guidance of 1.25 -

1.50 mn tons

3Q17 SR stabilized at 12.6x, on

track of achieving annual SR

guidance of 12x - 13x

Higher SR in 2Q17 impacted by wet

weather

12

12.8x 12.6x 13.7x 14.3x12.6x 12.0x - 13.0x

3Q16 4Q16 1Q17 2Q17 3Q17 QuarterlyGuidance

TMU IM ABN SR (Consolidated)

1.41.2

1.41.25 - 1.501.4

1.1

Realization

Consolidated 9M 2017

“Sustainability & Resilience”

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

• Well-diversified market destinations

and customer base

Note:

(1) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization13

Operational 9M16 9M17 Δ%

Production Vol 4.2 3.7 (11.9)%

Sales Vol 4.3 3.5 (18.6)%

Stripping Ratio 13.0 13.5 3.8 %

Sales 192.1 211.3 10.0 %

EBITDA 27.0 51.9 92.2 %

Net Profit 9.7 29.0 199.0 %

Financial 9M16 9M17

44.8

NEWC Index 85.2 51.1 %56.4

ASP 59.2 32.1 %

mn ton

mn ton

x

US$/ton

US$/ton

US$ mn

US$ mn

US$ mn

Δ%

EBITDA/Ton 6.3 14.7 133.3 %US$/ton

14.1%EBITDA Margin 24.6%

Gross Profit Margin 29.9%19.2%

Financial Ratios 9M16 9M17

Evolution of FOB Cash Cost

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

Despite fluctuation in NEWC price, TOBA has maintained relatively stable SR and cash cost

through proper mine planning and cost management initiatives

Although cash cost rose 17.1% from 2Q16 to 3Q17, coal price increased much higher by 83.3%

over same period. This reflects much higher ASP expansion than cash cost rise itself

14

51 50 47 43 41 38 35 35 35 34 37 40 41

50 51 46

42 41 38

34 35 35 34 37

42 41

68.4 63.8 65.8

59.6 59.0 52.6 50.3 51.5

67.3

94.7 81.5 79.7 94.5

12.5x

13.8x

12.4x 12.5x12.0x 12.1x

12.5x

13.8x

12.8x 12.6x

13.7x 14.3x

12.6x

0x

3x

6x

9x

12x

15x

0

20

40

60

80

100

120

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

FOB cash cost Adj. FOB cash cost NEWC SR

15

Sales Volume, NEWC Index & ASP (million tons and US$/ton)

Sales, Cost of Goods Sold and Gross Profit

Margin (US$ million and %)

EBITDA/ton and EBITDA Margin(US$/ton and %)

Increase in ASP per ton directly filters through

higher gross profit margin and EBITDA margin

ASP Positively Impacts Margins

4.8 4.3

3.561.4 56.4

85.2

55.9

44.8

59.2

9M15 9M16 9M17

SalesVolume

NEWC Index

ASP

268.6

192.1

211.3

217.0

155.3

148.0

19.2% 19.2%

29.9%

9M15 9M16 9M17

Sales

Cost of GoodsSold

Gross ProfitMargin

8.86.3

14.7

15.6%14.1%

24.6%

9M15 9M16 9M17

EBITDA/ton

EBITDA Margin

Balance Sheet

Consolidated Balance SheetIn Thousand US$

Net Debt to EBITDAIn Million US$

Total assets and total liabilities rose similarly mostly due to rise in interest bearing debt from :

Bank Mandiri, for refinancing syndicated loan, investment and corporate purposes where US$ 40

mn of total proceeds was used by June 2017

Citibank, amounting to US$ 4 mn, used for ABN’s working capital and general corporate purposes

Total equity value improved due to current earnings over the period

Net Debt to EBITDA ratio has constantly recorded stability from quarter to quarter at < 0.5x

16

23.3

13.710.8 11.8

21.6

38.8 39.2

45.1 45.8

64.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

3Q16 4Q16 1Q17 2Q17 3Q17

Net Debt (Cash) (US$ Mn) Last 12 Month EBITDA

Ratio (x) 0.6 0.4 0.2 0.3 0.3

297.1Total Assets 261.6 13.6 %

Interest Bearing Debt 64.251.3 25.1 %

Total Liabilities 135.5113.8 19.1 %

Shareholders Equity 161.6147.7 9.4 %

Balance Sheet Dec’ 16 ChangeSep’ 17

Cash and Cash Equivalent 37.6 13.3 %42.6

NEWC - Adj.5,600 GAR

ASP

HBA - Adj.5,600 GAR

63%

71%75%

37%

29%25%

2015 2016 9M17

Traders

End-users

Marketing Performance

Prior to 2016, spread between NEWC and ASP narrowed due to optimizing marketing initiative at

mainly fixed price to premium customers in Japan, Korea, Taiwan, and Malaysia

Majority of 2016 sales volume was fixed at price during 1H16 period. Sudden coal price surge in

2H16 beyond market prediction was not reflected in the 2016 ASP, causing widened spread between

NEWC and ASP

Throughout 9M17, spread between NEWC and ASP narrowed due to large portion of sales volume

being fixed during price uptrend in 3Q17 and not capturing the high of 4Q16

17

Diversified Export Market Base

18

Export Market Focus 9M15 – 9M17 9M17 Export Market - More ASEAN Driven

Given China’s economic situation in 2015, focus shifted towards export markets whose economies

showed stable demand prospects ie. Korea, Taiwan, India. ASEAN markets ie. Thailand, Malaysia, and

Vietnam have shown positive traction

Diversification towards countries ex.China remained highlight for 2017

In 9M17 and going forward, ASEAN markets will play more important role in sourcing coal from its

proximate supplier ie. Indonesia

10%

5%

8%

34%

25%

29%

3%

13%

20%

13%

8%

12%12% 12%13%

9M15 9M16 9M17

China Korea Thailand Taiwan Malaysia

28.7%

19.7%

13.5%

11.7%

8.3%

4.4%

3.8%

3.0%

2.6%

2.5%

1.8%

0.0 0.2 0.4 0.6 0.8 1.0

South Korea

Thailand

Malaysia

Taiwan

China

Japan

India

Vietnam

Hong Kong

Philippines

Others

Million Tons

19

From 9M15 to 9M17, sales constribution consistently derived from mainly 5600 GAR products

A mixture of mid-upper quality of 5600 - 5900 GAR still account for TOBA’s largest product

composition

Product Composition (GAR) by % - 9M17 Product Composition (GAR) : 9M15 – 9M17

Product Composition by Quality

24.9%

22.9%

21.5%

15.8%

7.9%

4.4%

2.6%

0.0 0.2 0.4 0.6 0.8 1.0

5600 HS

4800 & 5000

5200

5600 RS

5800

5900 LS

Others

Million Tons

37%

29%

25%

36%

25%

16%

12%

24%

12%

0%

4%

22%

15%18%

25%

9M15 9M16 9M17

5600 HS 5600 RS 5800 & 5900 LS 5200 Others

Power32%

Building, Infrastructure, Heavy Equip

56%

Exploration12%

Snapshot of 2017F

Mine Plan Execution

2017 production and SR are targeted similar to those in 2016 of 5 - 6 million tons and

12.0x – 13.0x respectively

Marketing Strategy

The Company continues managing well-diversified market destinations and customer

base, maintaining product quality and timely delivery, as well as optimizing the current

favorable coal price into the Company’s ASP

Capital Expenditure

Total consolidated CAPEX for 2017 is estimated at US$ 55 - 60 million, of which 75% -

80% will be allocated for EPC phase of the power project (Sulbagut-1), with the balance

for the mining business, i.e. land acquisition, and infrastructure/heavy equipment

Sourcing of Other Power Projects

In translating the Company’s vision, the Company will continuously seek for opportunities

in sourcing new power projects (fossil fuel and non fossil fuel based such as renewables)

through participation in IPP tenders as well as through acquisition of existing power

assets20

Operation

Prod Vol (mn ton)

SR (x) 12.9x

5.5

2015

12.3x

6.1

NEWC Coal Price (US$/ton) 66.059.2

12.0x - 13.0x

5.0 - 6.0

2017 F

65 - 70

2016

Realized CAPEX 9M17

21

Performance HighlightsPerformance Highlights2Strategy to Venture into Power3

Business Growth and Sustainabiity

Transformation

• Acquisition of mine(s)

around existing mining

concessions

• Acquisition of mine(s)

to support coal-related

power projects

• Active participation as

IPP* in PLN tenders

• Assessment of

developing renewables

• Identification of

strategic partner with

vast track record

• Expansion of power

project capacity (MW)

Coal Mine

• Optimization of existing mine plan

• Optimization of infrastructure sharing

• Cost management

• Diversification of markets and

customer base

• Active participation in CSR

Company Strategy

Integrated

Energy

Company Fossil Fuel and

Renewables Power

Present Future Company Initiatives

Coal

Mining

Company

* Independent Power Producer 22

23

Why Toba Can Realize this Goal?

Extensive experience in executing project from greenfield to brownfield in

coal mining, CFPP and gas-fired power plant development and operation

Sulbagut-1 CFPP project (2x50 MW) – Financial close was reached on 14

July 2017, the first reached on schedule this year by any IPP. Expected

COD in mid 2020

Second 2x50 MW Sulut-3 CFPP project was signed on 7 April 2017 with

expected COD in 2020

Our partners for the projects are well established and vastly experienced

in construction and operation of power plants in many countries

Having strong partners enable us to de-risk the construction phase of

the projects

Substantial

Power-Related

Milestones

Have Been

Achieved

Experienced

Partners with

Proven Track

Record

Currently, Toba Sejahtra (Toba’s Shareholder) has one operating power

plant asset: 2 x 41 MW Senipah Gas Power Plant, COD in 1Q-2015; and

previously 2 x 15 MW Palu CFPP; reached COD in 2007 (already divested

in 4Q16)

Possessing vast learning curve of knowing what to and not to do in

planning to execution of project management. This enables Toba to

mitigate and minimize project risk

Leveraging

Toba Sejahtra

Group’s

experience

24

Our Project Selection Process

Targeting return of equity IRR and Project IRR

Ability to identify, assess, and manage completion risk, technical and non-technical risk such as

social assessment for land acquisition to ensure the project can be completed within specified time

schedule

Financial capability to participate in targeted tender projects where PLN sets specific requirements

to meet

Majority control for certain size of IPP projects

Appetite to have minority portion with good and credible partner in larger size projects

• Credible partner with vast experience and proven technology

• Can bring long-term value-add to organization and local people including transfer knowledge

• Have good networking capability with PLN and power stakeholders

Parameters for Project Selection

Parameters for Partner Selection

Leveraging Toba Sejahtra Group’s

Experience in Power Plant Development

Sumatra

Kalimantan

Java

Sulawesi

Malaysia

East Kalimantan

Senipah Power Plant

Central Sulawesi

Palu Power Plant

PLTG Senipah

2 x 41 MW

PJPP *)

2x15 + 2x18 MW

In operation, COD in Q1

2015

Combined Cycle

System is under PPA

finalization for additional

35 MW

Total potential supply:

115 MW

In operation, COD in

2007

Expansion 2x18 MW is

COD 2016

Total potential supply:

66 MW

25

SULBAGUT-1

2 x 50 MW

Financial Close: 14

July 2017, the first

reached on schedule

this year by any IPP

NEW PROJECTS

(Expected COD in 2020)

* Dviested to private buyer in 4Q 2016

SULUT-3

2 x 50 MW

PPA in place, in

process for

Commencement of

Work

Sulbagut-1 Projecti

27

General Description of Sulbagut-1 Project

Project Location : North

Gorontalo Regency,

Sulawesi

Sulbagut-1 Coal-Fired Power Project is part of 35 GW Program

• 2 x 50 MW Capacity

(Nett)

• Build-Own-Operate-Transfer

(BOOT)

Contract Scheme

• 25 YearsContract Period

• MiD 2020COD

Target

• SEPCEPC

• US$ 210-220 million

Project Value

28

Financial Close of Sulbagut-1 Project

Principle License

Land Acquisition

Tariff Approval

EPC Contract

Financing Agreement

Financal Close

Reception

attended by

BoD of PLN

Achievement of

Financing Date with

PLN, 14 July 2017

29

2017 2020

Site

Preparation

2018 2019

Construction

Next after Financial Close...

Commercial

Operation

Date (COD)

Commissioning

Sulut-3 Projectii

31

Project Location : North

Minahasa Regency,

Sulawesi

Sulut-3 Coal-Fired Power Project is part of 35 GW Program

• 2 x 50 MW Net

Capacity

• Build-Own-Operate-Transfer

(BOOT)

Contract Scheme

• 25 YearsContract Period

• 33 months post Commencement

of Work

COD Target

• US$ 205-215 million

Project Value

General Description of Sulut-3 Project

32

Signing of PPA for Sulut-3 Project

Handing of Token of Appreciation to

PLN, 7 April 2017

PPA signing for Sulut -3 Project

7 April 2017

THANK YOU