Company Updates PT Indika Energy Tbk. 25 April 2019 Shareholder - - PowerPoint PPT Presentation

PT Indika Energy Tbk.

25 April 2019

Company Updates

Disclaimer

2

Investors and security holders are cautioned that this communication contains forward-looking statements and that forward-looking statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of PT Indika Energy Tbk. Neither PT Indika Energy Tbk., its affiliates nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this communication. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Shareholder Structure

Changes YoY

• No. of

Investors

• No. of shares

%

• No. of

Investors

• No. of shares

% % I. Domestic Retail 16,166 1,026,231,818 19.7% 7,810 898,089,078 17.2% 12.5% Employee 16 8,093,500 0.2% 26 22,521,500 0.4%

• 178.3%

Cooperative 6 570,500 0.0% 3 320,000 0.0% 43.9% Foundation 10 555,500 0.0% 1 150,000 0.0% 73.0% Pension Funds 32 19,250,300 0.4% 13 14,577,200 0.3% 24.3% Insurance 31 30,813,900 0.6% 19 7,612,400 0.1% 75.3% Bank

• 0.0%
• 0.0%

0.0% Corporation 90 3,613,938,708 69.4% 70 3,612,262,784 69.3% 0.0% Mutual Funds 108 82,338,806 1.6% 114 100,371,088 1.9%

• 21.9%

Total 16,459 4,781,793,032 91.8% 8,056 4,655,904,050 89.4% 2.6% II. INTERNATIONAL Retail 81 5,239,200 0.1% 60 3,712,000 0.1% 29.1% Institutional 151 423,159,768 8.1% 169 550,575,950 10.6%

• 30.1%

Total 232 428,398,968 8.2% 229 554,287,950 10.6%

• 29.4%

III. TOTAL 16,691 5,210,192,000 100.0% 8,285 5,210,192,000 100.0% 0.0% No Description By 31 March 2019 By 31 March 2018

3

Table of Contents

Results Overview Page #

• Commodity Price Outlook

3 - 4

• Key Highlights

5

• Financial Statement Overview

6 – 8

• Detail Income Statement Analysis

9

• Cash & Debt

10 – 11

• Kideco Financial & Operational Overview

12 – 14

• Asset Overview

15 – 17

• Kideco Acquisition

18 – 19

• Subsidiary Review

20 – 21

• Corporate Guidance

22

• Recent Developments

23 – 24

• Peer Comparison

25 Appendix 26 – 48 Indika Energy Overview 50– 55

4

Source: Bloomberg

Global Commodity Prices & Indicators slightly improved in 1Q19 while Newcastle continued to decline

Newcastle vs. QHD 5500 Price ICI 4 Historical Pricing China PMI WTI Oil Price

445 355 619 697 580 619 56.8 50.6 88.4 100.8 103.0 92.8 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 100 200 300 400 500 600 700 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 QHD 5500 NEWCASTLE (RHS) 47.6 37.0 53.7 60.4 53.9 60.1 25.0 35.0 45.0 55.0 65.0 75.0 85.0 95.0 105.0 115.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 50.1 49.7 51.4 51.6 49.9 50.5 48 48.5 49 49.5 50 50.5 51 51.5 52 52.5 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 35.1 26.8 42.2 45.7 33.9 35.2 20 25 30 35 40 45 50 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

74.6 62.3 50.6 88.4 100.8 96.4 114.4 113.9 103.0 92.8 52.4 48.8 39.7 42.7 52.5 56.4 50.0 49.2 45.7

• 29.7%
• 21.7%
• 21.5%
• 51.7%
• 47.9%
• 41.5%
• 56.1% -52.2%
• 50.7%
• 60%
• 50%
• 40%
• 30%
• 20%
• 10%

0% 20 30 40 50 60 70 80 90 100 110 120 130 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18* 3Q18 4Q18 1Q19 Newcastle Price ASP % Discount (RHS) % Average Discount (RHS)

5

Source: Platts & US Energy Information Administration

Coal Price Remains Above Our Internal Targets

• Newcastle coal prices continued to decline in 1Q18 while ICI4 pricing improved.
• China issued stricter requirements for importing Australian coal
• Full year 2018 internal target of $85/ ton where Newcastle on average US$92.8/ ton in 2018
• DMO is leading to greater spread between our ASP and Newcastle which now stands at 50.7%.

US$/ton

6

Key Highlights

Kideco’s Coal Production & Strip Ratio Capex (IE Consolidated) (US$m) Core Profit (Consolidated) vs Net Profit at Kideco

9.8 8.7 10.7 9.8 8.4 8.0 7.8 7.9 7.9 7.8 8.4 7.9 8.2 8.3 8.8 8.6 8.3 5.9 6.6 6.3 6.2 5.3 5.9 6.7 6.3 5.4 5.7 6.8 6.5 5.9 6.2 6.6 6.4 5.9

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

• 5.0

10.0 15.0 20.0 25.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Coal Production ('MT) Strip Ratio (x) 57.8 21.9 65.6 150.4 28.2

• 20.0

40.0 60.0 80.0 100.0 120.0 140.0 160.0 FY 2015 FY 2016 FY 2017 FY 2018 3M19 (38.7) (43.3) 94.5 168.4 33.6 138.1 88.6 277.1 260.1 40.5 (100.0) (50.0)

• 50.0

100.0 150.0 200.0 250.0 300.0 FY 2015 FY 2016 FY 2017 FY 2018 3M19 Core Profit US$m

Indika Energy’s Consolidated Balance Sheet

7

Summary (US$ mn) 3M19 3M18 YoY FY18 YTD Cash balance* 892.8 846.6 5.5% 785.4 13.7% Current assets 1,565.6 1,483.4 5.5% 1,436.1 9.0% Total assets 3,774.1 3,743.0 0.8% 3,678.8 2.6% Current liabilities 719.6 702.3 2.5% 627.4 14.7% Total Debt** 1,555.8 1,411.4 10.2% 1,433.6 8.5% Shareholder equity 1,127.0 1,181.2

• 4.6%

1,196.5

• 5.8%

Current ratio (X) 2.2 2.1 3.0% 2.3

• 4.9%

Debt to equity (X) 1.4 1.2 17.2% 1.2 16.8% Net debt to equity (X)*** 0.6 0.5 25.5% 0.5 10.8%

* includes restricted cash ** total debt with interest bearing *** total debt minus total cash balance divided by shareholder equity

Indika Energy’s Consolidated Income Statement Highlights

8

*) Consolidated EBITDA plus dividends received from associates **) Core Profit refers to the current year’s profit attributable to the owner of the company, excluding non-operating gains / losses and related taxes (amortization of intangible assets, impairment of assets, fair value changes on contingent consideration obligation, and gain on revaluation).

Summary P&L (US$mn) Quarter Data 1Q19 1Q18 YoY 4Q18 QoQ Revenues 700.7 809.0

• 13.4%

782.4

• 10.4%

COGS (583.1) (580.2) 0.5% (693.1)

• 15.9%

Gross Profit 117.6 228.8

• 48.6%

89.3 31.6% SG&A Expenses (35.0) (32.7) 6.8% (34.3) 2.0% Operating Profit 82.6 196.1

• 57.8%

55.0 50.1% Pre tax Profit 35.9 139.3

• 74.2%

(13.1)

• 373.7%

Adjusted EBITDA *) 124.2 227.5

• 45.4%

98.0 26.8% Income Tax (17.5) (73.7)

• 76.3%

(19.2)

• 9.0%

Core Profit 33.6 75.5

• 55.5%

4.8 601.2% Net Profit 11.7 58.4

• 80.0%

(32.1)

• 136.4%

Gross Margin (%) 16.8% 28.3%

• 40.7%

11.4% 47.0% EBIT Margin (%) 11.8% 24.2%

• 51.3%

7.0% 67.6% Core Profit Margin (%) 4.8% 9.3%

• 48.7%

0.6% 683.0% Net Profit Margin (%) 1.7% 7.2%

• 76.9%
• 4.1%
• 140.7%

9

Consolidated Revenue Breakdown

*

Revenues

3M18: US$809.0 million 3M19: US$ 700.7 million

Kideco 55% Indika Resources 11% Petrosea 15% Tripatra 13% MBSS 3% Others 3% Kideco 63% Indika Resources 15% Petrosea 11% Tripatra 7% MBSS 2% Others 2%

Subsidiary 3M18 Revenues (US$ mn) Kideco 527.8 Indika Resources 126.0 Petrosea 89.5 Tripatra 60.3 MBSS 14.4 Others 15.9 Subsidiary 3M19 Revenues (US$ mn) Kideco 409.9 Indika Resources 81.4 Petrosea 115.2 Tripatra 96.5 MBSS 20.9 Others 19.0

Disaggregation of 3M19 Consolidated Earnings – Key Income Statement Segments

10

Net Profit Disaggregation Revenue By Business Segment Cost of Goods Sold Disaggregation SG&A Per Subsidiary

700.7 583.1 7.6 35.0 3.9 25.4 1.2 17.5 11.7

• 200.0

400.0 600.0 800.0

Revenue COGS Inc from Associates SG&A Other Inc. Finance Costs Other XP Tax NPAT

409.9 81.4 115.2 96.5 39.9 700.7 100 200 300 400 500 600 700 800 Kideco Indika Resources Petrosea Tripatra MBSS & Others Total Revenue 184.7 106.7 62.5 45.5 42.8 28.1 112.8 583.1 100 200 300 400 500 600 700 Contractor Materials Royalty Fuel Salary Depr. Others Total COGS 9.3 9.6 4.9 5.6 3.1 2.4 35.0 5 10 15 20 25 30 35 40 Holding Co Kideco Petrosea IIR Tripatra MBSS Total

694.3 127.8 70.6 1,340.0 13.3 202.5 400 800 1,200 1,600 CASH DEBT Cash

• Fin. Assets
• Rest. Cash

Bonds Bank Loans Leases

Cash and Debt Position

11

892.81) 1,555.8 US$ million Cash and Debt Breakdown

1) PTRO: $68.2mn, MBSS: $44.1mn, Tripatra: $134.7mn, Kideco: $222.4mn, Indika Resources: $27.5mn, ILSS-Interport: $27.3mn HoldCo: $368.6mn. 2) $265mn due 2022 (Senior Notes V), $500mn due 2023 (Senior Notes IV), and $575mn due 2024 (Senior Notes VI). 3) PTRO: $153.5mn, MBSS $12.8m, HoldCo.: $36.2mn. 4) PTRO $13.3mn.

Strong Cash Position and Low Net Debt Ratio

12

Net Debt Ratios Improving Debt Maturity Profile

US$ million

US$ million

Cash Breakdown by Subsidiaries LTM Free Cash Flow

US$ million US$ million

202.5 146.3 337.9 336.9 423.4 144.4 171.3 222.4 55.0 67.8 59.6 81.3 68.2 39.9 60.3 152.5 133.6 134.7 42.0 37.5 34.6 40.0 44.1

• 200.0

400.0 600.0 800.0 1,000.0 2015 2016 2017 2018 3M19 HoldCo Kideco Petrosea Tripatra MBSS 118.7 122.9 211.0 323.0 291.2 100 200 300 400 500 2015 2016 2017 2018 3M19

67.8 66.6 46.5 300.3 500.8 575.0

• 100.0

200.0 300.0 400.0 500.0 600.0 700.0 2019 2020 2021 2022 2023 2024 2025 2026 466.6 494.2 711.2 712.9 663.0 2.4 3.2 2.4 1.1 1.2 0.6 0.7 0.6 0.6 0.6

• 0.5

1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 400.0 450.0 500.0 550.0 600.0 650.0 700.0 750.0 2015 2016 2017 2018 3M19 Net debt Net debt to LTM EBITDA Net debt to Equity

Kideco Operational Highlights In Line Production with DMO Pricing for Domestic Sales

13

Descriptions 1Q19 (USD mn) 1Q19 1Q18 YoY 4Q18 QoQ Sales 409.9 527.8

• 22.3%

393.6 4.2% Gross profit 80.5 196.5

• 59.0%

62.0 29.9% Operating profit 71.2 186.8

• 61.9%

52.8 34.7% Net income 40.5 103.8

• 61.0%

36.1 12.2% EBITDA 76.4 219.9

• 65.2%

39.0 95.9% Gross margin 19.6% 37.2%

• 47.3%

15.7% 24.7% Operating margin 17.4% 35.4%

• 51.0%

13.4% 29.3% Net margin 9.9% 19.7%

• 49.8%

9.2% 7.8% EBITDA margin 18.6% 41.7%

• 55.2%

9.9% 88.1% Overburden (mn bcm) 48.6 48.6 0.0% 55.3

• 12.0%

Production volume (Mt) 8.3 8.2 0.7% 8.6

• 4.1%

Sales volume (Mt) 9.0 9.4

• 4.2%

8.0 12.3% Stripping ratio (X) 5.9 5.9

• 0.6%

6.4

• 8.2%

Cash Cost excl royalty (US$/ton) 29.6 27.6 7.2% 34.1

• 13.1%

Average selling price (US$/ton) 45.7 56.4

• 19.0%

49.2

• 7.3%

14

China, Indonesia & Korea Drive Kideco’s Sales

1Q18 – Total Sales Volume: 9.4 mn ton 1Q19 – Total Sales Volume: 9.0 mn ton Growth By Country Products Breakdown

SM 4200-4300 Kcal 58% Blended 4500 Kcal 11% Roto 4900 Kcal 31% China 37% Indonesia 32% Korea 8% India 5% Taiwan 5% Southeast Asia 10% Japan 2% Others 1% China 30% Indonesia 29% Korea 12% India 8% Taiwan 5% Southeast Asia 9% Japan 3% Others 4% Destination Sales YoY Growth China 3,281,969 17.1% Indonesia 2,876,209 5.0% Korea 748,430

• 32.7%

India 480,412

• 35.1%

Taiwan 408,889

• 16.2%

Southeast Asia 882,493 9.4% Japan 166,314

• 39.4%

Others 128,954

• 67.9%

TOTAL 8,973,670

• 4.2%

Kideco’s Cash Costs Among the Lowest in the Industry

15

1Q18 Cash Cost 1Q19 Cash Cost Kideco Cash Cost ex Royalty

Contract Mining + Rental 56%

• Gov. Royalty

18% Material 9% Freight 6% O/H 4% Labor 1% Others 6% Contract Mining + Rental 51%

• Gov. Royalty

20% Material 8% Freight 6% O/H 6% Labor 1% Others 8% 308 285 290 272 249 203 227 217 220 189 221 252 259 243 281 272 266 31.2 32.9 27.2 27.6 26.3 26.4 29.5 28.5 25.8 25.3 28.2 33.0 27.6 30.8 31.9 34.1 29.6 15.0 20.0 25.0 30.0 35.0 40.0

• 100

200 300 400 500 600 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Total Cash Cost excl. royalty (US$ million) (LHS) Cash Cost/Ton excl. royalty (US$/Ton)

Kideco Inside the Numbers

16

Reserves by Calorific Value Reserve to Resources (MT) Resources By Mine (MT) Reserves By Mine (MT)

4,200-4,500 90% 4,700-5,000 8% 5,000-5,500 1% 5,500+ 1% Reserves 569 Resources 1375 Roto South 124 Roto North 43 Roto Middle 186 Susubang 41 Samarangau 1,181 Roto South G 26 Suwi 12 Roto South 21 Roto North 3 Roto Middle 17 Susubang 7 Samarangau 511 Roto South G 7 Suwi 3

17

Attractive Location With Well Built Infrastructure

Indika Energy owns 91% of Kideco, the third-largest coal producer in Indonesia with a 50,921 Hectare concession in East Kalimantan Kideco has engaged in surface open-cut mining since 1993 First-generation Coal Contract of Work valid through 2023 Kideco produces a range of sub-bituminous, ultra-low sulphur (0.1%) and low ash (average between 2.1% to 4.9%) coal JORC resources as of December 2017 stood at 1,625 MT and reserves at 569 MT.

Logistic

• Hauling road 38 Km
• Barging & Shipping 58 km

Logistic

• Hauling road 80 Km
• Barging & Shipping 240 km

Logistic

• Port ~280Km and to secondary port ~160km

Logistic

• Hauling road 40 Km to coal port
• Conveyor belt from coal port to Panamax 6.5 km

One of the Lowest Cost Operators from Mine to Port

Total Reserves : 223MT Total Resources : 1,617MT Total reserves : 1,354 MT Total Resources : 13,700MT Total Reserves : 569MT Total Resources : 1,625MT Total Reserves : 3,330MT Total Resources : 8,270MT

Publicly Listed Competitor A Publicly Listed Competitor C Publicly Listed Competitor B

18

Kideco Acquisition Overview

19

• Indika Energy entered into a SPA (Share Purchase Agreement) on 22

September 2017 to acquire 40.0% and 5.0% of Kideco shares from Samtan and PT Muji Inti Utama, respectively.

• The transaction was completed on 8 December 2017, and increased Indika

Energy’s stake to a 91.0% equity interest in Kideco .

• The total consideration for the 45.0% stake was US $677.5 million , consisting
• f:
• US$517.5 million upfront payment at closing; and
• Deferred payment of US$160.0mn or 25.0% of the shares of Kideco (at

Indika’s option) at the time of CCOW conversion

• Excludes full cash distribution via dividend to existing shareholders at

the end of 2017 (estimated $250mn)

Consideration Source & Use of Funds

Source of Funds (US$ mn) Notes Issuance $575.0 Total Sources $575.0 Use of Funds (US$ mn) Kideco Stake Purchase $517.5 General Corporate Purposes & Transaction Costs $57.5 Total $575.0

20

Acquisition of additional 45% Stake in Kideco

Accounting Treatment Impact Post Kideco Transaction

Transaction value 46% Kideco Book Value 46% Kideco Gain on Revaluation Description 529.0 (144.8) 384.2 US$m US$m US$m UoM One-Off Gain on Revaluation Calculation Cash consideration paid Transaction Value 46% Kideco Contingent consideration obligation 91% net asset Kideco* Goodwill Description 517.5 529.0 127.5 (538.8) 635.2 US$m US$m US$m US$m US$m UoM Goodwill Calculation Intangible assets Amortization exp/year Deferred tax liability Deferred tax liability/ year Net Amortization Description 701.7 131.6 (327.3) (61.4) 70.2 Until LoC (2023)/ 5.33yr US$m US$m US$m US$m US$m UoM Amortization Calculation *) based on independent appraisal

Total Backlog Total Backlog Total Backlog 660MW PowerPlant $888.5M $58.8M $375.1M 1Q19 Net Income 1Q19 Net Income 1Q19 Net Income 1Q19 Net Income $3.1M $1.5M $7.9M $9.1M (20% Indika) 1Q19 EBITDA Margin 1Q19 EBITDA Margin 1Q19 Adj. EBITDA Margin 1Q19 EBITDA Margin 23.7% 37.9% 6.2% 33.8% ROE ROE ROE ROE 6.5% 3.5% 21.2% 10.0% 21

Supported by Improving Subsidiary Results

Petrosea MBSS Tripatra Cirebon Electric Power

• Coal contract mining and E&C

capabilities

• Opportunity to increase group

synergies by winning more Kideco contracting share

• 69.8% ownership
• Integrated coal transport & logistics

business

• Consists of 78 barges, 87 tugboats,

1 support vessel, 4 floating cranes and 2 floating loading facilities

• 51% ownership
• Multi-disciplined engineering/EPC

and project capabilities

• Two subsidiaries:
• 1. PT Cotrans Asia – 45% stake

barging / transportation business

• 2. PT Sea Bridge Shipping – 46%

stake; domestic coal transshipment for Kideco

• Kideco cross sells approximately

1.7MT to CEP annually

• Indika’s portion of net income in

3M19 is US$1.8M

• 20% ownership of CEP
• 6.25% ownership of CEP II

(expansion project)

Existing Synergies & Future Opportunities

22

• Plans to increase production over the medium term could be driven by

increased synergies with Petrosea and MBSS.

• Increased production could come from Samarangau in an area where

Petrosea is the contractor.

• Kideco is contracted to provide 60% of coal demand to CEP which is the

equivalent of 1.7MT of coal per year

• Upon completion in 2022 could provide 2MT of coal to CEP2 plant
• 14-20% of Kideco's overburden removal historically could rise to 25-30%+.

Through 3M19, Petrosea’s revenues are $24.5M for OB removal of 10.3 Mbcm at Kideco (21%).

• Bridge Construction for Kideco with a 2018 projected revenue of $3.6

million..

• Barging & Floating crane contracted to Kideco in 3M19 provided

$9.3million in revenue and transported in barging 3.4MT and in floating crane 1.0MT

• Barging Opportunity with Kideco and MUTU
• Currently barges approximately 30% of Kideco coal

Indika Energy’s 2019 Corporate Guidance Versus Actual

23

2019 3M19 2018 YoY Target Actual Actual Change KIDECO

Production (MT) 34 8.2 34 0.0% Strip Ratio (x) 6.3 5.9 6.3 0.0% Cash Cost xRoyalty ($/MT) 32.7 29.6 31.1 5.1% Capex ($Millions) 7.7 0.6 3.9 97.4% Overburden Volume (BCM) 214 48.6 216.6

• 1.2%

PETROSEA Overburden Volume (BCM) 129.1 29.9 121.2 6.5% Coal Getting (MT) 35.1 8.5 34.6 1.4% Capex ($Millions) 177.2 13.3 112.0 58.2%

MBSS

Barging Volume (MT) 22.3 6.3 20.1 10.9% Floating Crane Volume (MT) 15.1 2.7 11.8 28.0% Capex ($Millions) 11.7 2.1 26.1

• 55.2%

TRIPATRA

Capex ($Millions) 10.0 - 0.7 100%

INDIKA RESOURCES

Coal Traded Volume (MT) 8.1 1.8 7.1 14.1% MUTU Production Volume (MT) 1.5 0.3 1.2 25.0% Capex ($Millions) 12.1 1.3 6.1 98.4%

• April 25, 2019, the shareholders of PT Indika Energy Tbk has approves the following during the Shareholders’ Annual General

Meeting

• 1. Approved PT Indika Energy Tbk financial statement for the year ended December 31, 2018
• 2. To give the authority to Board of Commissioners of the company to appoint Public Accountant to perform audit on the

company financial statement for year ended December 31, 2019

• 3. To pay a final dividend of US$40.0 million, which brings dividend paid based on 2018 results to a total of US$60.0 million,

a 74.9% payout ratio from US$80.1 million Profit Attributable to owners of the company or a 35.6% payout ratio from US$168.4 million Core Profit reported in 2018. Interim dividend of US$20.0 million was already paid in December 2018 and the final dividend of US$40.0 million will be distributed on 29 May 2019. The company reported its unaudited financial statements for the 3-months ended March 31, 2019

• 4. The AGM approved changes in the Board of Commissioners and Board of Directors. The new composition of Board of

Directors and Board of Commissioners is as follows: Board of Commissioners

• President Commissioners

: Agus Lasmono

• Vice President Commissioners : Richard Bruce Ness
• Commissioners

: Indracahya Basuki

• Independent Commissioners

: Muhamad Chatib Basri

• Independent Commissioners

: Boyke Wibowo Mukijat Board of Directors

• President Director

: M. Arsjad Rasjid P.M.

• Director

: Azis Armand

• Director

: Eddy Junaedy Danu

Recent Developments

24

Indika Energy’s 2019 Corporate Guidance

25

Operational Data Guidance 2019 Budget KIDECO Production (MT) 34 Strip Ratio (x) 6.3 Newcastle Benchmark ($/ton) 85 Cash Cost xRoyalty ($/ton) 32.7 Overburden Volume (BCM) 214.0 PETROSEA Overburden Volume (mBCM) 129.1 Coal Getting (MT) 35.1 Backlog End of Period (US$m) 1,263.8 MBSS Barging Volume (MT) 22.3 Floating Crane Volume (MT) 15.1 Backlog Beg of period (US$m) 86.3 TRIPATRA Backlog Beg of period (US$m) 200.2 INDIKA RESOURCES Coal Traded Volume (MT) 8.1 MUTU Production Volume (MT) 1.5 CAPEX 2019 Budget (US$ million) Kideco 7.7 Petrosea 177.2 MBSS 11.7 Tripatra 10.0 Indika Resources 12.1 KGTE (Fuel Storage) 94.6 Indika Holding Company 2.2 Total Capex 315.5

Peer Comparison (FY18 Data)

26

EBITDA MARGIN PRODUCTION ANNUAL (MT) STRIP RATIO (x) RESERVE/RESOURCE RATIO CASH COSTS ex Royalty (US$/t) Domestic Sales/ Total (DMO 25%)

*Kideco only

54 34 26 22 15 20 25 30 35 40 45 50 55 60 ADRO INDY * PTBA ITMG 4.1 5.1 6.3 11.0 2 4 6 8 10 12 PTBA ADRO INDY * ITMG 39.0% 35.0% 25.0% 26.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% ADRO PTBA ITMG INDY* 0% 10% 20% 30% 40% 50% 60% PTBA INDY ADRO ITMG

DMO requirement

22.0% 22.4% 35.0% 39.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% ITMG ADRO INDY PTBA 29.5 37.0 31.0 47.7 20 23 26 29 32 35 38 41 44 47 50 ADRO PTBA INDY * ITMG

27

Appendix

28

Indika Energy’s Financial Highlights

Gross Profit (USD mn) Operating Profit (USD mn)

Income from Associates (USD mn)

Core Profit/Loss** (USD mn) Net Profit/Loss* (USD mn)

* Profit/loss for the period attributable to owners of the company ** Core Profit refers to the current year’s profit attributable to the owner of the company, excluding non-operating gains / losses and related taxes (amortization of intangible assets, impairment of assets, fair value changes on contingent consideration obligation, and gain on revaluation). .

88.3 88.7 122.9 641.2 117.6 100 200 300 400 500 600 700 2015 2016 2017 2018 1Q19 (15.4) (10.1) 34.1 508.1 82.7

• 100

100 200 300 400 500 600 2015 2016 2017 2018 1Q19 72.6 59.5 136.2 20.6 7.6 40 80 120 160 2015 2016 2017 2018 1Q19 (44.6) (65.9) 335.5 80.1 11.7

• 100

100 200 300 400 2015 2016 2017 2018 1Q19 (38.7) (43.3) 94.5 168.4 33.6

• 100
• 50

50 100 150 200 2015 2016 2017 2018 1Q19

EBITDA* (USD mn) & EBITDA Margin (%) Revenues (USD mn)

29

Indika Energy’s Key Business Indicators

EBIT to Assets (ROA) EBIT (USD mn) & EBIT Margin (%)

* Adjusted EBITDA / EBIT includes consolidated EBITDA / EBIT plus dividends from Kideco, Cotrans, SBS, and CEP

1,097.3 775.2 1,098.8 2,962.9 700.7

• 400.0

800.0 1,200.0 1,600.0 2,000.0 2,400.0 2,800.0 2015 2016 2017 2018 1Q19 192.0 155.7 291.9 652.5 549.2 17.5% 20.1% 26.6% 22.0% 19.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

• 100.0

200.0 300.0 400.0 500.0 600.0 700.0 2015 2016 2017 2018 1Q19 EBITDA EBITDA Margin 55.2 74.6 330.8 519.9 405.0 5.0% 9.6% 30.1% 17.5% 14.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0.0 100.0 200.0 300.0 400.0 500.0 600.0 2015 2016 2017 2018 1Q19

• Adj. EBIT

EBIT Margin 2.6% 4.1% 9.1% 14.2% 10.7% 0% 2% 4% 6% 8% 10% 12% 14% 16% 2015 2016 2017 2018 1Q19

• Adj. FFO / Debt (%)

Gross Debt & Net Debt / Adj. EBITDA (x)

• Adj. FCF / Debt (%)

Debt / Capital (%)

30

Indika Energy’s Key Credit Ratios (1)

5.1 5.2 4.9 2.3 2.8 4.9 3.2 2.4 1.1 1.2

• 1.0

2.0 3.0 4.0 5.0 6.0 2015 2016 2017 2018 1Q19 54.0% 52.3% 56.4% 56.7% 58.0% 45.0% 50.0% 55.0% 60.0% 2015 2016 2017 2018 1Q19 11.9% 11.8% 15.1% 25.2% 20.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2015 2016 2017 2018 1Q19 13.6% 16.6% 15.7% 21.9% 18.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2015 2016 2017 2018 1Q19

EBITDA Less Capex / Interest (x) FFO + Interest / Interest (x) EBIT / Interest (x) EBITDA / Interest (x)

31

Indika Energy’s Key Credit Ratios (2)

2.7 2.6 3.7 6.5 5.5 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2015 2016 2017 2018 1Q19 2.6 2.6 3.8 4.7 4.2 0.0 1.0 2.0 3.0 4.0 5.0 2015 2016 2017 2018 1Q19 0.8 1.2 0.4 5.1 3.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2015 2016 2017 2018 1Q19 1.9 2.2 2.9 5.1 4.1 0.0 1.0 2.0 3.0 4.0 5.0 6.0 2015 2016 2017 2018 1Q19

Indika Energy’s Subsidiaries Backlog

32

New Contract/ Adjustment Value in 2019 Per 31 Dec 2017 Per 31 Mar 2019 Per 31 Mar 2019 Contract mining 696.4 67.2 63.3 700.3 E&C 169.5 (0.9) 33.4 135.2 POSB 53.6 17.8 18.4 53 Total (USD mn) 919.5 84.2 115.2 888.5 Tripatra Engineers & Constructors 433.6 4.2 82.3 355.5 Tripatra Engineering 24.3 (0.1) 4.6 19.6 Total (USD mn) 457.9 4.2 86.9 375.1 Barging 26.7 9.8 15.2 21.3 Floating Crane 39.5 3.7 5.7 37.5 Total (USD mn) 66.2 13.5 20.9 58.8 Total Consolidated (USD mn) 1,443.6 101.8 223.0 1,322.4 Tripatra MBSS Descriptions Remaining Contract Value Revenue Recognition Remaining Contract Value Petrosea

33

Capex Spending & Approved Dividend

*

CAPEX Allocation Unit 2019 Budget 3M19 A Realization IE Holding USD mn 2.2 0.1 2.9% PTRO USD mn 177.2 13.3 7.5% MBSS USD mn 11.7 2.1 17.9% Tripatra USD mn 11.7

• 0.0%

KGTE (Fuel Storage) USD mn 94.6 10.8 3.2% Kideco USD mn 7.7 0.6 7.8% Indika Resources USD mn 12.1 1.3 10.7% Total USD mn 317.2 28.2 6.4% Company Dividend Declared Payment Schedule Indika Energy Portion Kideco US$ mn 234,0 Dec-18 100,0 91,0 Apr-19 34,0 30,94 Jul-19 50,0 45,5 Sep-19 50,0 45,5 Sea Bridge Shipping (SBS) US$ mn 10,0 Apr-19 10,0 4,6 Cotrans IDR billion 140,0 Apr-19 100,0 45,0 Oct-19 40,0 18,0 Petrosea US$ mn 8,7 May-19 8,7 6,1

34

Kideco’s Financial Highlights

Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) Net Profit (USD mn) EBITDA (USD mn)

Cash Balance (USD mn)

1,658.2 1,247.8 1,633.0 1,802.2 409.9 400 800 1,200 1,600 2,000 2015 2016 2017 2018 1Q19 281.3 180.0 527.8 492.1 80.5 100 200 300 400 500 600 2015 2016 2017 2018 1Q19 253.8 155.4 469.4 450.3 71.2 100 200 300 400 500 2015 2016 2017 2018 1Q19 138.1 88.6 277.1 260.1 40.5 50 100 150 200 250 300 2015 2016 2017 2018 1Q19 281.8 179.7 526.0 468.6 76.4 100 200 300 400 500 600 2015 2016 2017 2018 1Q19 188.6 32.8 144.4 171.3 222.4 50 100 150 200 250 2015 2016 2017 2018 3M19

35

Kideco’s Operational Highlights

Overburden Removal (mn bcm) Coal Production (mn ton) Coal Sales (mn ton) Stripping Ratio (x) Average Selling Price (USD/ton)

Cash Cost (USD mn)

244.6 193.9 195.9 213.6 48.6 75 150 225 300 2015 2016 2017 2018 1Q19 39.0 32.1 32.0 34.0 8.3 15 30 45 2015 2016 2017 2018 1Q18 38.6 32.5 31.5 34.1 9.0 15 30 45 2015 2016 2017 2018 1Q19 6.3 6.0 6.1 6.3 5.9 2 4 6 8 2015 2016 2018 2018 1Q19 42.9 38.4 51.9 52.9 45.7 15 30 45 60 2015 2016 2017 2018 1Q19 34.6 32.1 34.4 37.8 36.1 29.6 27.6 28.0 30.9 29.6 2015 2016 2017 2018 1Q19 Incl Royalty Excl Royalty

36

Petrosea’s Financial Highlights (1)

Revenues (USD mn)

*

EBITDA (USD mn) Coal Getting Volume (MT) Net Profit/Loss* (USD mn) Gross Profit (USD mn) Overburden Removal (mbcm)

29.1 34.9 45.7 73.1 13.3 20 40 60 80 2015 2016 2017 2018 1Q19 206.8 209.4 313.5 465.7 115.2 100 200 300 400 500 2015 2016 2017 2018 1Q19 66.0 57.3 97.6 121.1 28.7 35 70 105 140 2015 2016 2017 2018 1Q19 14.1 14.2 24.8 34.6 7.1 8 16 24 32 40 2015 2016 2017 2018 1Q19 66.3 68.7 74.6 112.7 27.3 30 60 90 120 2015 2016 2017 2018 1Q19

• 12.7
• 7.9

11.6 23.4 3.1

• 15

15 30 2015 2016 2017 2018 1Q19

37

Petrosea’s Financial Highlights (2)

*

Revenues Breakdown by Value

*

Cost Structure

1Q19: USD115.2 mn 1Q18: USD93.3 mn 1Q19: USD101.9 mn 1Q18: USD83.0 mn

Contract Mining 55.0% E&C 17.8% POSB 15.4% KPI 11.2% Other 0.7% Contract Mining 62.8% E&C 9.6% POSB 8.7% KPI 18.3% Other 0.6% Salary 31% Operations 25% Depre 19% Subs & Rental 21.1% Material 4% Other 0.4% Salary 22.9% Operations 32.1% Depre 17.5% Subs & Rental 22.6% Material 4.4% Other 0.4%

27.6 28.7 8 16 24 32 1Q18 1Q19 7.9 7.1 2 4 6 8 10 1Q18 1Q19

38

Petrosea’s Contract Mining Operation

*

Coal Getting Volume (Mn Tonne) Overburden Removal Volume (Mn BCM)

4.0%

• 10.1%

Client 1Q18 1Q19 KJA 9.5 10.3 TBG 8.7 11.3 IAC 2.1 ANZ 0.5 BMB 6.8 7.1 Total volume 27.6 28.7 Revenue from Contract Mining 58.6 63.3 Contract Mining Revenue/Bcm 2.1 2.21 Client 1Q18 1Q19 KJA 2.2 2.0 TBG 4.1 4.1 IAC 0.3 0.0 BMB 1.3 1.0 Total volume 7.9 7.1

39

Tripatra’s Financial Highlights (1)

* Profit/loss for the period attributable to owners of the company ** Including dividends from associates

Month/year Month/year

Revenue (USD mn) Gross Profit (USD mn) Net Profit* (USD mn) Income from Associates (USD mn)

Month/year Month/year

Adjusted EBITDA** (USD mn)

475.9 217.5 274.8 278.3 96.5 125 250 375 500 2015 2016 2017 2018 1Q19 475.9 217.5 274.8 278.3 96.5 125 250 375 500 2015 2016 2017 2018 1Q19

• 5.5

22.8 25.8 28.4 7.9

• 8

8 24 40 2015 2016 2017 2018 1Q19 9.6 9.2 8.4 10.2 2.7 3 6 9 12 2015 2016 2017 2018 1Q19 11.5 28.0 35.2 35.1 6.0 8 16 24 32 40 2015 2016 2017 2018 1Q19

40

Tripatra’s Financial Highlights (2)

*

Revenues Breakdown by Value Cost Structure

1Q19: USD96.5 mn 1Q18: USD60.3 mn 1Q19: USD85.1 mn 1Q18: USD47.3 mn

TPEC 92% TPE 8% TPEC 87% TPE 13% Material 56% Sub Contractors 20% Salary 6% Handling 4% Rental 7% Others 7% Material 39% Sub Contractors 38% Salary 9% Handling 6% Rental 4% Others 4%

41

Cotrans’ Financial Highlights

Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) Net Profit (USD mn) Coal Handling (mn ton)

80.0 59.9 59.3 70.5 15.6 15 30 45 60 75 90 2015 2016 2017 2018 1Q19 17.1 13.0 12.3 13.2 2.1 4 8 12 16 20 2015 2016 2017 2018 1Q19 16.3 12.0 11.2 12.2 1.9 4 8 12 16 20 2015 2016 2017 2018 1Q19 16.0 11.5 10.9 11.6 1.8 4 8 12 16 20 2015 2016 2017 2018 1Q19 32.8 27.9 27.1 30.2 7.8 10 20 30 40 50 2015 2016 2017 2018 1Q19

42

SBS’ Financial Highlights

Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) Net Profit (USD mn) Coal Handling (mn ton)

29.4 24.7 24.9 31.2 8.4 7 14 21 28 35 2015 2016 2017 2018 1Q19 14.0 11.5 10.7 14.0 5.1 4 8 12 16 20 2015 2016 2017 2018 1Q19 12.7 10.7 10.0 13.3 4.8 4 8 12 16 20 2015 2016 2017 2018 1Q19 5.2 8.8 7.6 10.9 4.2 4 8 12 16 20 2015 2016 2017 2018 1Q19 14.2 12.3 12.2 14.4 4.0 4 8 12 16 20 2015 2016 2017 2018 1Q19

43

MBSS’ Financial Highlights (1)

*

Revenues (USD mn) Net Profit (USD mn) EBITDA (USD mn) Floating Crane Vol. (mn ton) Barging Vol. (mn ton) Gross Profit (USD mn)

89.8 65.8 68.5 75.4 20.9 25 50 75 100 2015 2016 2017 2018 1Q19

• 12.0
• 29.9
• 8.9
• 17.1

1.5

• 35
• 30
• 25
• 20
• 15
• 10
• 5

5 2015 2016 2017 2018 1Q19 29.5 14.8 18.4 24 7.9 5 10 15 20 25 30 35 2015 2016 2017 2018 1Q19 15.1 0.9 2.5 4.9 4.3 4 8 12 16 20 2015 2016 2017 2018 1Q19 22.2 22.1 18.5 22.1 6.4 5 10 15 20 25 30 35 2015 2016 2017 2018 1Q19 15.8 12.9 8.7 11.8 2.7 5 10 15 20 25 2015 2016 2017 2018 1Q19

44

MBSS’ Financial Highlights (2)

*

Revenues Breakdown

*

Cost Structure

1Q19: USD16.6 mn 1Q18: USD16.1 mn 1Q19: USD15.2 mn 1Q18: USD5.7 mn

Barging 73% FC 27% Barging 72% FC 28% Depreciation 36% Fuel 21% Salaries 13% Spareparts 5% Port charges 7% Repair 2% Others 16% Depreciation 37% Fuel 23% Salaries 12% Spareparts 10% Port charges 5% Repair 1% Others 12%

4.7 6.4 2 4 6 8 3M18 3M19 2.3 2.7 1 2 3 4 3M18 3M19

Barging (mn ton)

45

MBSS’ Operating Highlights

*

Floating Crane (mn ton)

36.2% 17.4% Clients 3M19 3M18 Cotrans 3.4 3.1 Adaro 0.9 0.5 Spot 0.5 0.2 BAG 0.2 0.2 Bayan 0.1 Others 1.3 0.7 Total Volume* 6.4 4.7 Revenue (USD mn) 15.2 10.4 Revenue/ton 2.4 2.2 Clients 3M19 3M18 Kideco 1 1.4 Bayan 0.3 0.0 BIB 0.1 0.3 TCP 0.1 0.0 BULK 0.6 0.0 Others 0.6 0.6 Total Volume 2.7 2.3 Revenue (USD mn) 5.7 3.9 Revenue/ton 2.1 1.7

MBSS Large Fleet of Vessels

46

Tug Barges Floating Crane Support Vessel

As of Dec 31, 2018 Additional/ (Disposal) YTD 87

• 1

Total 3M19 86 As of Dec 31, 2018 Additional/ (Disposal) YTD 78

• 7

Total 3M19 71 As of Dec 31, 2018 Additional/ (Disposal) YTD 4 Total 3M19 4 As of Dec 31, 2018 Additional/ (Disposal) YTD 1 Total 3M19 1

Floating Loading Facility

As of Dec 31, 2018 Additional/ (Disposal) YTD 2 Total 3M19 2

Indika Resources’ Financial Highlights

Revenues (USD mn) Net Profit (USD mn) Gross Profit (USD mn) MUTU Production Vol. (mn ton) Coal Trading Vol. (mn ton) Cost of Good Sold (USD mn)

239.0 216.7 319.8 395.6 81.4

• 50.0

100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 2015 2016 2017 2018 1Q19 221.5 209.3 306.5 359.4 70.5

• 50.0

100.0 150.0 200.0 250.0 300.0 350.0 400.0 2015 2016 2017 2018 1Q19 17.5 7.4 13.3 36.2 10.9

• 5.0

10.0 15.0 20.0 25.0 30.0 35.0 40.0 2015 2016 2017 2018 1Q19 (50.1) (15.6) (142.4) 2.4 1.2 (160.0) (140.0) (120.0) (100.0) (80.0) (60.0) (40.0) (20.0)

• 20.0

2015 2016 2017 2018 1Q19 8.2 6.8 6.8 8.4 1.8 1 2 3 4 5 6 7 8 9 2015 2016 2017 2018 1Q19 0.1 0.5 1.2 0.3 0.2 0.4 0.6 0.8 1 1.2 1.4 2015 2016 2017 2018 1Q19

47

48

Indika Resources’ Financial Highlights (2)

*

Revenues Breakdown

*

MUTU ASP (USD/ton)

3M19: USD81.4 mn 3M18: USD126.0 mn

MUTU Cash Cost (USD/ton)

Coal Trading 65% MUTU 35% Coal Trading 86% MUTU 14% 66.5 78.3 87.6 81.1 20 40 60 80 100 2015 2016 2017 2018 1Q19 108.3 94.3 73.9 70.9

• 20.0

40.0 60.0 80.0 100.0 120.0 2015 2016 2017 2018 1Q19

49

CEP’s Financial Highlights

Revenues (USD mn) Gross Profit (USD mn) Operating Profit (USD mn) Net Profit (USD mn) EBITDA (USD mn)

261.9 229.6 245.7 250.0 61.3 60 120 180 240 300 2015 2016 2017 2018 1Q19 109.9 98.4 91.4 80.9 21.0 30 60 90 120 150 2015 2016 2017 2018 1Q19 104.2 93.0 86.7 74.9 19.9 30 60 90 120 150 2015 2016 2017 2018 1Q19 38.9 99.2 34.9 30.7 9.1 30 60 90 120 150 2015 2016 2017 2018 1Q19 106.8 96.0 89.9 78.5 20.7 30 60 90 120 150 2015 2016 2017 2018 1Q19

50

Fast Fact

51

PT Indika Energy Tbk.

Energy Services Energy Infrastructure Energy Resources

• Established since 1991
• 3rd largest coal producer
• Resources 1,625 MT, reserves

569 MT

• 91.0% ownership as of 6 Dec.

2017

• Established since 1989
• Bituminous thermal & coking coal
• Resources 75.2 MT, reserves

40.6 MT

• 85.0% ownership
• Established since 2012
• Coal trading, ~7.0 MT volume
• Established since 1994
• Integrated water coal transportation

and logistic

• 51% ownership
• Established since 2007
• 20.0% owned 660MW, enviro-

friendly supercritical technology

• 6.25% owned 1000MW expansion ,

ultra supercritical technology (under construction)

• Established since 2018
• Integrated logistic services
• Build and operate fuel storage

facility

• Port Business Entity license to
• perate and provide port and logistic

services at all Indonesia major ports

• Established since 1973
• Leading EPC and O&M services in
• il & gas and power generation
• 100% ownership
• Established since 1972
• Coal contract mining and E&C

capabilities in mining and oil and gas

• 69.8% ownership

Other Portfolios

• Established since 2011
• Investment company in mineral

mining

• Developing gold project Awak Mas

in South Sulawesi

• Resources 2 million oz, reserves

1,1 million oz

• 19,9% ownership
• Established since 2018
• Technology company which help to

transform to digitalized company thru automation and data analysis

• Established since 2018
• Providing services in Information,

communication & Technology (ICT), including IT user support, IT enterprise & IT business consulting

4 3 2 1

Indika Energy, Indonesia’s leading fully integrated energy company

52

Indika Energy Group Companies Cover End-To-End Coal Business Value Chain

A well-integrated energy platform across the entire value chain Energy resources Energy services Energy infrastructure Identification / acquisition of assets Exploration Economic and feasibility study Engineering and construction Production Processing Land transportation Barging Loading / transshipment Power generation Offtake sales

• Operational synergies from intra-group

cross-selling opportunities

• part of Kideco's overburden

removal, coal barging and transshipment services outsourced to Petrosea and MBSS

• Kideco contracted to provide 1.9mt
• f coal per year to CEP
• discussion underway amongst

MUTU, Petrosea and MBSS for the provision of overburden removal, coal barging and transshipment services

• Cost synergies from integrated
• perations - work-share and knowledge-

share amongst Tripatra, Petrosea and MBSS

• Increasingly stable earnings and

cashflow from continued diversification

53

Indika Energy has grown through inorganic and organic expansions

2004 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016 2017 2018

2004 41% KIDECO Acquisition 2006 5% Additional Acquisition 2007 Tripatra Merger Into Indika Energy 660MW CEP Investment 2009 98.55% Petrosea Acquisition 2011 51% MBSS Acquisition 2012 85% MUTU Acquisition 2014 Inception of Indika Trading 2015 1,000MW CEPR Expansion Project 2017 KIDECO Majority (+45%) Acquisition 2007 19.9% Nusantara Investment Inception of Interport 2007 Bond Offering 5Y US$250mn 8.50% 2008 Indika Energy IPO on Indonesia Stock Exchange 2009 Bond Offering 7NC4 US$230mn 9.75% 2011 Bond Offering 7NC4 US$115mn 7.00% Exchange

• f

US$165mn 2012 Petrosea Relisting on Indonesia Stock Exchange 2013 Bond Offering 10NC5 US$500mn 6.375% 2015 Tender Offer to Repurchase US$129mn in the 2018 Notes 2017 Bond Offering 5NC3 US$265mn 6.875% Bond Offering 7NC4 US$575mn 5.875%

Acquisition & Launches Capital Market Transaction

54

Diversification Investments – Gold Asset Project

A Strategic investment in Nusantara Resources Limited (ASX: NUS). Nusantara owned 100% PT Masmindo Dwi Area which has sole rights to exploit in Awak Mas Gold Project

Location : South Sulawesi, 220 km from Makasar Potential Resources : 2 million onz Potential Reserves : 1.1 million onz Total Project Cost : US$150 - 200 million Target Production : 2021 License : COW (Contract of Work) amended in March 2018 Total concession : 14,390Ha, explored area ± 2,000Ha Current Status : Feasibility Study Ownership : 19.9% in Nusantara Resources Limited Transaction value : AUD 7.68 million

55

Diversification Investments – Fuel Storage Project

Build and operate fuel storages exclusively for ExxonMobil in conjunction with entering Indonesia retail market in various locations

Location : Balikpapan, Kariangau, East Kalimantan Project Company : PT Karingau Gapura Terminal Energy Total Project Cost : US$115million Funding Structure : US$75 million - bank loan & US$38 million - equity Storage Capacity : 75ML – Diesel; 13ML – MoGas; - 8ML –B100 Construction Periods : 18 months starting January 2019 COD : 2nd semester 2020 Contractors : Tripatra & Petrosea

Phase 1

56

Notes Outstanding

Indo Energy Finance II B.V.

USD500.0 mn 6.375% 10-year Senior Notes Reg S / 144A due 2023

The Senior Notes are rated:

BB - / Stable Outlook International Ratings (as of Dec. 2018) A + / Stable Outlook National Ratings (as of Dec. 2018) Ba 3 Outlook Stable (as of Dec. 2018)

January 2013

Indo Energy Capital II Pte. Ltd.

USD265.0 mn 6.875% 5-year Senior Notes Reg S / 144A due 2022

April 2017

Indo Energy Capital III Pte. Ltd.

USD575.0 mn 5.875% 7-year Senior Notes Reg S / 144A due 2024

November 2017

57

58

Indika Energy Group

** BI: IDR14,241/USD

Market Cap

As of 31 Mar 19

Number of Shares Listing Shareholding Structure

• PT Indika Inti Investindo : 37.79%
• PT Teladan Resouces : 30.6 5%
• Public

: 31.56% listed in the Indonesia Stock Exchange on June 11, 2008 Part of IDX’s LQ 45 Index and MSCI Indonesia Index 5,210,192,000 IDR 1.825,-/ share IDR 9,5 trillion (USD 668 million)**

• PT Indika Energy Tbk : 69.80%
• Public

: 30.20% listed in the Indonesia Stock Exchange on May 21, 1990 1,008,605,000 IDR 1,825,-/ share IDR1.8 trillion (USD129 million)**

• PT Indika Energy

infrastructure : 51.00%

• China Navigation

Co Pte Ltd : 25.68%

• Public

: 23.32%

INDY

PT Indika Energy Tbk

PTRO

PT Petrosea Tbk

MBSS

PT Mitrabahtera Segara Sejati Tbk

listed in the Indonesia Stock Exchange on April 06, 2011 1,750,026,639 IDR 585,- / share IDR1,0 trillion (USD72 million)**

59

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