Company Presentation Company Presentation April 2017 1 First - PowerPoint PPT Presentation

PT Toba Bara Sejahtra Tbk ( “ Toba ” ) PT Toba Bara Sejahtra Tbk (TOBA) Company Presentation Company Presentation April 2017 1 First Quarter 2018

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 1 Company Profile 2 1Q 2018 Performance Highlights 3 Strategy to Venture into Power i Sulbagut-1 Project ii Sulut-3 Project 3

Performance Highlights Performance Highlights 2 Company Profile 1 4

PT Toba Bara Sejahtra Tbk in Brief Coal Mining Palm Oil Plantation & Mill East Kalimantan Kalimanta n  Location: Kutai Kartanegara, Kalimantan Timur  Hak Guna Usaha (HGU) covers 8,633 ha. where 2,701 ha has been planted  Location: Kutai Kartanegara, Kalimantan Timur Power Generation  Total Concession : 7,087 ha Gorontalo  GLP and MCL established in January 2016 and March North Sulawesi 2017 respectively for development of steam (coal) fired steam power plant project (CFSPP) with capacity of 2x50 MW each  25 year Power Purchase Agreement (PPA) through Independent Power Producer (IPP) scheme with PLN as single offtaker 5

Ownership Structure Highland Strategic PT Toba Davit Togar PT Bara Makmur PT Sinergi Roby Budi Public *) Holdings Pte. Ltd. Sejahtra Pandjaitan Abadi Sukses Utama Prakoso 61.91% 10.00% 0.75% 6.25% 5.10% 3.64% 12.35% *) Incl. Baring Private Equity as anchor investor 99.99% 51.00% 99.60% PT Toba Bumi Energi (“TBE”) 90.00% 90.00% 60.00% 99.99% 99.99% PT Adimitra Adimitra Resources Baratama Niaga Pte Ltd GLP’s PPA with PLN 20-year Production IUP-OP extension 13-year IUP-OP Plantation permit of MCL’s PPA with PLN Operation Mining Permit was completed in expires in December PT Perkebunan for 25-year contract for 25-year contract (IUP-OP) expiring in March 2013 (First out 2023 Kaltim Utama I (PKU) License December 2029 of 2 extensions: in expires in 2036 IUP-P 2023 with tenor of 10 for downstream years each) processing 2,990 ha 683 ha 3,414 ha 8,633 ha (Right to ~65 ha ~40 ha Area Use Land) Reserves: 45 MT – Reserve: 13.1 MT – Reserves : 5.8 MT – Off-take (take or pay) Planted Area: 2,701 Off-take (take or pay) by PLN for 25 years JORC (2018) JORC (2018) JORC (2018) ha by PLN for 25 years Reserve Resources: 78 MT – Resources: 54.6 MT Resources: 20.3 MT – JORC (2018) – JORC (2018) JORC (2018) Note: On 4 th February 2016, the Company entered into sales and purchase agreement with Toba Sejahtra to acquire Toba Sejahtra’s 20% ownership in GLP (Subject to approval from PLN) ) 6

Strategic Mine Locations Toba owns all infrastructures (coal processing plant, overland conveyors, and jetties) giving significant operating leverage vs other concessions in surrounding areas 7

Infrastructure & Operational Capabilities CPP Capacity : 6 Mn Short Coal Hauling Conveyor to Jetty Tons/Annum (TPA) Distance < 5km Short Coal Hauling Distance ~4km High Built CPP Cap up to 10 Mn TPA Hauling Road to Connect with ABN Overland & Barge Loading Jetty: Speed of 1.800 TPH TOBA ’s Concessions Note : PT Adimitra Baratama Nusantara (ABN) PT Indomining (IM) PT Trisensa Mineral Utama (TMU) ROM Stockpile 8

Achievement and Certification (1 of 2) Environment Health and Safety PT Adimitra PT Indomining PT Trisensa Mineral Baratama Nusantara Utama Gold PROPER Award Green PROPER Green PROPER PT Adimitra Baratama (2015-2017) Award (2016-2017) Award (2016-2017) PT Indomining PT Trisensa Mineral Nusantara Utama BS OHSAS 18001:2007 BS OHSAS BS OHSAS from Lloyd’s Register 18001:2007 from 18001:2007 from Quality Assurance DQS DQS (25 th September 2017) (29 th March 2017) (23 rd August 2015) Quality Management System PT Trisensa Mineral PT Adimitra Baratama PT Indomining Utama Nusantara ISO 14001:2015 ISO 14001:2015 from ISO 14001:2015 Lloyd’s Register Quality Certificate from DQS PT Indomining Certificate from DQS PT Trisensa Mineral PT Adimitra Baratama (23 rd August 2015) (29 th March 2017) Assurance Utama Nusantara (25 th September 2017) ISO 9001:2015 from ISO 9001:2008 from ISO 9001:2008 from DQS DQS DQS (29 th March 2017) 9 (23 rd August 2015) (5 th June 2015)

Achievement and Certification (2 of 2) Corporate Social Responsibility Zero Lost Time Injury PT Adimitra PT Indomining PT Trisensa Baratama Nusantara Mineral Utama Since September Since September Since December 2015 with total 2007 with total 2014 with total working hours of working hours of working hours of 2.758.317 hours up to 5,203,894 hours up 790,093 hours up December 2017 to December 2017 to December 2017 PT Adimitra PT Indomining PT Trisensa Mineral Baratama Nusantara Utama Gold KUKAR CSR Silver KUKAR CSR Participant KUKAR Award 2017 Award 2017 CSR Award 2017 Achievements at Corporate Level 10 Energy & Resources In-House Team of the Year Top 50 of Mid Market Capitalization The Company received award from Asian Legal Public Listed Companies Business on the ALB Indonesia Law Awards 2017 Indonesia Institute for Corporate Directorship

1Q 2018 Performance Highlights 2 11

Production Profile 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 Toba Consolidated Production NEWC Price EBITDA Margin 32.9% Stable 24.1% 15.4% 15.2% 13.9% 13.5% margin 5.7% 10 $121 9 8.1 Mt 8 $97 6.5 Mt $89 7 5.0 Mt - 6.0 Mt 6.1 Mt 5.6 Mt 5.5 Mt 6 5.2 Mt $71 5.0 Mt $75 - 80 $85 5 4 $66 $59 3 2 1 0 2011 2012 2013 2014 2015 2016 2017 2018 est. 12 Source: Coal price from GlobalCoal

Operational Performance Quarterly Production & SR Production in Million Tons  1Q18 production volume of 1.23 14.3x 12.0x - 13.0x 13.7x 12.6x mn tons in line with 2018 12.8x 12.0x quarterly guidance of 1.25 – 1.50 mn tons 1.37 1.34 1.25 - 1.50 1.20 1.23 1.09  1Q18 SR stabilized at 12.8x, on track of achieving annual SR guidance of 12.0x – 13.0x 1Q17 2Q17 3Q17 4Q17 1Q18 Quarterly  1Q18 performance was just Guidance slightly lower than that 4Q17 TMU IM ABN SR (Consolidated) impacted by wet weather Production Summary MT: Million Tons Change 1Q17 1Q18 Comment Production Production volume in 1Q18 stabilized at 1.2 mn tons in 1.1 1.2 9.1% Volume line with mine plan Sales 1.1 Sales volume tracked its 1Q18 production volume 1.4 27.3% Volume 13.7 12.8 (6.6)% SR (x) SR in 1Q18 was still in line with target 12

Realization “Sustainability & Resilience” Δ % Operational 1Q17 1Q18 Focused on profitable production output NEWC Index US$/ton 81.5 102.9 26.3 % ASP US$/ton 57.2 74.5 30.2% through optimization of : mn ton Production Vol 1.2 9.1 % 1.1 • Infrastructure and connectivity sharing Sales Vol mn ton 1.1 1.4 27.3 % (hauling road and coal processing plant) 13.7 12.8 (6.6) % Stripping Ratio x • Joint mine plan FOB Cash Cost (a) US$/ton 36.9 43.2 17.1 % • Coal sale pricing driven by relationship. Δ % Financial 1Q17 1Q18 consistency in scheduled delivery and US$ mn 62.7 108.4 Sales (b) 72.9 % product quality EBITDA (b) & (c) 17.1 38.2 123.4 % US$ mn • Well-diversified market destinations 10.2 25.2 Net Profit US$ mn 147.1 % and customer base 16.0 67.5% 26.8 EBITDA/Ton (d) US$/ton Note: Financial Ratios 1Q17 1Q18 (a) FOB Cash Cost = COGS including royalty and selling expense – depreciation and amortization 32.1% Gross Profit Margin 39.2% (b) Includes profit from construction of Sulbagut-1 power project (based on accounting treatment PSAK 34 and ISAK 16) in 1Q18 EBITDA Margin 27.3% 35.2% (c) EBITDA = Gross profit – selling expenses G&A + depreciation and amortization (d) EBITDA/ton = Coal mining business only 14