0 www.bayan.com.sg Executive Summary Overall financial performance - - PowerPoint PPT Presentation

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Executive Summary

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• Overall financial performance in FY 2016 increased compared to FY 2015
• Actual ASP was higher than the Budget

1) Revenue, Gross Profit include coal and non-coal sales ; 2) 2016 Unaudited Figures 1) Average Selling Price includes coal and non-coal sales ; 2) Average Cash Costs include Royalty, Barging, SGA; 3) B stands for Budget Figures 4) 2016 Unaudited figures

Revenue (1) 828.3 465.0 555.2 19% Gross Profit (1) 97.0 122.8 212.6 73% Gross Profit Margin 12% 26% 38%

(in million USD)

2015 FY 2016 (2) Var 2014 Sales Volume (milion MT) 8.9 16.3 13.0 20% Coal Production (million MT) 11.3 14.8 9.8 34% Average Selling Price (US$/MT) (1) 52.1 36.6 42.8 14% Average Cash Costs (US$/MT) (2) 43.2 28.2 29.8

• 6%

Var 2015 FY 2016 (4) 2016 B

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Executive Summary - continued

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• 4Q16 Coal Production achieved was 3.0 million MT which was lower than

Budgeted of 3.7 million MT as the result of WBM’s coal reserves in the western area have been depleted (CA11). However, the management has reached an agreement with the neighboring concession holder in regards of the timing of commencement of mining in the boundary area (CA12). Management believes that the coal mining should begin towards the end of the first quarter of 2017.

• 4Q16 SR was 3.0:1 which was higher than 3Q16 and the Budget as result
• f the use of opportunistic dozer push and the geotechnical issues on

site at TSA/FKP partially offset with further reduction of WBM as coal reserves in the western area have been depleted (CA11).

• FY Capex was US$ 25.9 million which was lower than Budgeted

principally due to delay in commencement of Tabang/ Pakar which has resulted in timing difference.

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Executive Summary - continued

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• 4Q16 Cash costs were US$ 28.0/MT which was lower compared to 3Q16
• f US$ 29.8/ MT
• Decrease in Others (Selling) due to ENEL Sales Penalty adjustment

in 3Q2016 amounting to US$ 6 million which did not recur in 4Q2016

• Decrease in Salaries and Allowances due to the THR and Bonus

distributed in 3Q2016 which did not recur in 4Q2016 Partially offset with:

• Increase in Professional Fees due to various year end accruals for

Audit, KSC case (Drew & Napier) and monitoring accountant fees (Borelli Walsh)

• the 4Q16 ASP was principally in line with the Budget of US$ 28.8/MT

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4Q 2016

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Overburden Removal Coal Production Weighted Average Strip Ratio Average Cash Costs Coal Sales Average Selling Price Committed & Contractual Sales Debt and Cash Position Capex

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Overburden Removal (OB)

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(million BCM)

Overburden Removal 4Q16 Overburden removal was 9.2 million BCM which was lower than the 4Q16 Budget

9.5 9.3 9.2 4Q15 4Q16B 3Q16 4Q16 10.4

• 4Q16 OB was 9.2 million

BCM which was lower than 3Q16, Budget 4Q16 and 4Q15 due to further reduction of WBM as coal reserves in the western area have been depleted (CA11) coupled with geotechnical issue at TSA/FKP

• The

management had reached an agreement with neighboring concession holder in regards to the timing of commencement of mining in the boundary area (CA12)

4Q15 4Q16 Teguh Sinar Abadi/ Firman Ketaun Perkasa 4.8 4.7 Perkasa Inakakerta 1.1 1.3 Tabang Concessions 2.4 3.1 Wahana Baratama Mining 1.2 0.1 Total 9.5 9.2 (in million BCM) Overburden Removal

Note : B stands for Budget Figure

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Coal Production

(million MT)

Coal Production Volume

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4Q16 coal production was 3.0 million MT which was lower than the 4Q16 Budget

3.4 3.0 3.0 4Q15 4Q16B 3Q16 4Q16 3.7

• 4Q16 coal production was

3.0 million MT which was principally in line with 3Q16. However it was slightly lower than 4Q16B and 4Q15 primarily due to WBM has stopped its coal production, as a result of CA11

• The

management had reached an agreement with neighboring concession holder in regards to the timing of commencement of mining in the boundary area (CA12)

4Q15 4Q16 Teguh Sinar Abadi/ Firman Ketaun Perk 0.7 0.5 Perkasa Inakakerta 0.2 0.1 Tabang Concessions 2.0 2.4 Wahana Baratama Mining 0.5

• Total

3.4 3.0 Production (in million MT)

Note : B stands for Budget Figure

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Actual Weighted Average Stripping Ratio (SR)

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Weighted Average Strip Ratio 4Q16 actual weighted average strip ratio of 3.0 : 1 which was slightly decreased than 3Q16 and 4Q16 Budget

2.8 3.1 3.0 4Q15 4Q16B 3Q16 4Q16 2.9

• 4Q16

weighted average stripping ratio was 3.0 : 1 which was slightly higher than 4Q15 due to the higher SR at TSA/FKP as result of the use

• f
• pportunistic

dozer push and the geotechnical issues on site

4Q15 4Q16 Teguh Sinar Abadi 7.1 10.1 Perkasa Inakakerta 5.6 7.4 Tabang Concessions 1.2 1.3 Wahana Baratama Mining 2.4

• Total

2.8 3.0 Weighted Ave SR Weighted Average SR (:1)

Note : B stands for Budget Figure

8 Average Cash Costs per MT(*)

Average Cash Costs

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(1) Average Cash Costs include Royalty, Barging, SGA (2) US$ is a convenience translation using the average quarterly exchange rate for the quarter numbers (3) B stands for Budget Figure (US$ / MT)

4Q14 average cash costs were US$ 65.5 / MT which exceeded the range of the 2014 Budget *

• 4Q16 Average Cash Costs were lower

than 3Q16 and 4Q15 due to:

• Higher sales volume which

decreased certain unit cost as follows:

• Salaries, wages and

allowances under other costs and general and administrative cost

• Coal mining & hauling
• 4Q146 Cash Costs were principally in

line with the Budget

39.6 29.8 28.0 4Q15 2016B 3Q16 4Q16 28.2

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Coal Sales (by volume)

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(million MT)

Coal Sales Volume

2.5 3.7 3.9 4Q15 4Q16B 3Q16 4Q16 3.6

• 4Q16 coal sales volume was 3.9

million MT which was higher than 3Q16, 4Q15 and 4Q16B due to changes in shipping schedule.

• India and China account for 53%
• f the total sales volume in

4Q2016

• Top Customers 4Q2016 (by Sales

Volume) are Thermal Powertech, TNB Fuel, ADANI

• Top customers YTD (by sales

volume) are: ADANI, TNB Fuel, and CV Sumber Sarana Indah

4Q16 coal sales volume was 3.9million MT which was higher than 4Q16 Budget

Note : B stands for Budget Figure

Geographic Distribution (4Q16)

India 37% China 16% Malaysia 14% Korea 9% Japan 8% Indonesia 7% Philippines 5% Others 4%

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Average Selling Price (ASP)

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(US$ / MT)

Average Selling Price (*) 4Q16 ASP was US$ 45.7/ MT which was higher than 4Q16 ASP Budget

(1) ASP includes coal and non-coal sales (2) US$ is a convenience translation using the average quarterly exchange rate for the quarter numbers (3) B stands for Budget Figure

*

56.7 41.9 45.7 4Q15 4Q16B 3Q16 4Q16 35.09

• 4Q16 ASP for Coal was US$ 44.0 / MT

which was higher than 3Q16 due to higher benchmark prices as temporary production cuts in China and a continued rainy season in Indonesia which has made supply become tight.

• 4Q16 average CV was 4,613 GAR kcal

compared to 3Q16 at 4,878 GAR kcal

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Committed and Contracted Sales

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2017

Fixed Price Floating Price

13.2 million MT 55% 45%

Note : January 2017

• As at 31 January 2017 committed and

contracted sales were 13.2 million MT with an average CV of 4,600 GAR kcal

• 2017 Fixed Price element at US$

47.11/ MT with an average CV of 4,600 GAR kcal

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Net Debt and Cash

• As of 31 December 2016, the total TLF Loan was US$ 484.2 million

www.bayan.com.sg 444.1 425.9 453.9 456.9 470.3 465.6 465.4 429.9 130.7 150.6 121.2 91.0 88.1 85.3 83.7 70.4 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Net Debt Cash Note : Total Net Debt and Cash + Debt Service Reserve Account (DSRA)

(in million US$)

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Capital Expenditure

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CAPEX (*) 3Q14 ASP was US$ 67.6/ MT which was within the range of the 2014 Budget

US$ is a convenience translation using the average annual exchange rate; B stands for Budget Figure

*

• CAPEX YTD WAS US$ 25.9 million:
• CIP in IP and BR for the

construction of the Tabang/Pakar haul road and related infrastructure

• Majority of capex is anticipated to be

spent as equipment mobilization and construction in the Tabang project gains momentum

48.2 25.9

Budget YTD Actual

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PT Perkasa Inakakerta PIK PT Teguh Sinarabadi TSA PT Firman Ketaun Perkasa FKP PT Wahana Baratama Mining WBM PT Fajar Sakti Prima FSP PT Bara Tabang BT PT Brian Anjat Sentosa BAS PT Tanur Jaya TJ PT Silau Kencana SK PT Orkida Makmur OM PT Tiwa Abadi TA PT Sumber Api SA PT Dermaga Energi DE PT Bara Sejati BS PT Apira Utama AU PT Cahaya Alam CA PT Mamahak Coal Mining MCM PT Bara Karsa Lestari BKL PT Mahakam Energi Lestari MEL PT Mahakam Bara Energi MBE PT Graha Panca Karsa GPK Tabang Pakar Mamahak

Appendix

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Appendix

Kangaroo Resources Limited KRL PT Dermaga Perkasapratama DPP PT Indonesia Pratama IP PT Muji Lines Muji PT Bayan Energy BE PT Metalindo Prosestama MP PT Sumber Aset Utama SAU PT Karsa Optima Jaya KOJ

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Disclaimer

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This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events. These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for coal generally and for our products in particular, the success of our mining activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for planned expansion efforts, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement.

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Thank You

For more information, please contact : investor.relations@bayan.com.sg

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