PT BUKIT ASAM Tbk Corporate Presentation 9M 2019 Outline 1. - PowerPoint PPT Presentation

PT BUKIT ASAM Tbk Corporate Presentation 9M 2019

Outline 1. Introduction 2. 9M 2019 Update 3. Company Overview 1

1. Introduction 2

PT Indonesia Asahan Aluminium (Persero) memiliki ~65,93% of total shares The Subsidiaries and Indirect Subsidiaries Others Mining Trading Power Logistics Gas Investment Others Mining Power Gas Trading Logistics Investment PTBA continues to diversify its source of revenues – The Company’s core coal mining business is supported by the  development of other businesses in power generation, logistic, coal beneficiation, investment and others.  This year, PTBA began to enter the property and construction sector through the establishment of a subsidiary of PT Bukit Multi Properti. 3

Key Milestones 23 Dec 2002  PTBA was publicly listed on the Jakarta 1876  PN TABA was converted into a 2 Mar 1981  Coal Mine in Ombilin, Stock Exchange with 35% of shares limited corporation and its West Sumatera, held by the public. It traded with the name changed to PT Tambang started operations initial stock price of IDR575 under the Batubara Bukit Asam (PTBA). code PTBA This date is officially considered as the base of the 1919  During the Dutch colonial commemoration of the period, the first open-pit at  Adopted a new vision of company’s anniversary Airlaya mine, in Tanjung Enim, 30 Dec 2013 becoming “ a world-class South Sumatera started energy company that operations  Another state owned coal company, 1990 cares about the “Perusahaan Umum Tambang environment” batubara ” merged with PT Tambang Batubara Bukit Asam (“PTBA”). Since then, PTBA became the only state  Established a holding 2017 owned coal mining in Indonesia company of mining 1950  The company changed businesses on 29 1991 - 1995  From 1991 to 1995, on the into an Indonesian state November 2017 behalf of the Indonesian owned company which  Stock split of 1:5 on 14 was called “PN government, PTBA acted as December 2017 the domestic coal regulator Tambang Arang Bukit Asam ” (“TABA”). PN is for Coal Contract of Works  Transform into an 2018 (“ CCoW ”) the abbreviation for energy company by Perusahaan Negara, entering the coal which means “State gasification sector Company” 1876 1919 1950 1981 1990 1991- 1995 2002 2013 2017 2018 PTBA is Indonesia’s Oldest and Most Experienced Coal Producer 4

PTBA among peers 2015 – 2018 Production CAGR 2018 Coal Production (Juta ton) (%) 83.3 37.5% 36.8% 54.0 34.0 28.9 14.8% 26.4 22.6 22.1 11.0% 1.6% Bumi Adaro Indika Bayan PTBA Golden ITMG (4.5%) Energy (8.1%) Golden Bayan Bumi PTBA Adaro Indika ITMG Energy 2018 EBITDA Margin 2018 Weighted Average Stripping Ratio (%) (x) 11.1x 44% 39% 36% 7.9x 6.3x 25% 22% 22% 5.1x 4.8x 4.1x n.m n.m. (1) (1) (1) Bayan Adaro PTBA ITMG Indika Bumi Golden PTBA Bayan Adaro Indika Bumi ITMG Golden Energy Energy Source: Internal Analysis. (1) Adjusted EBITDA. PTBA is one of the fastest growing and lowest cost coal producers in indonesia 5

2. 9M 2019 Update 6

Key Performance Highlights YoY 9M 2019 9M 2018 FY2019 E (% change) Sales volume (Mt) 28.4 20.6 18.6 10.7% 21.6 19.7 Production (Mt) 27.3 9.6% 25.3 17.8 17.0 4.7% Railway Capacity (Mt) Revenue (IDR TN) n.a. 16.3 16.0 1.4% 3.1 3,9 Net Profit (IDR TN)* n.a. -20.5% Weighted Average n.a. 775.675 841.655 -7.8% Selling Price (IDR/t) Stripping Ratio (x) 4.8 4.6 4.1 12.2% Note: *net profit after minority interest 7

Key Operational Highlights Production and Sales Volume Railway Capacity (Mt) (Mt) 22.7 21.4 26.4 24.7 17.7 17.8 24.2 23.6 17.0 21.6 20.8 20.6 19.6 19.7 18.6 FY2016 FY2017 FY2018 9M 2018 9M 2019 FY2016 FY2017 FY2018 9M 2018 9M 2019 Production (Mt) Sales Volume (Mt) Weighted Average Stripping Ratio Weighted Average Selling Price (x) (IDR/t) 4.9 835,155 841,655 4.6 808,690 775,675 4.1 4.1 658,018 3.6 FY2016 FY2017 FY2018 9M 2018 9M 2019 FY2016 FY2017 FY2018 9M 2018 9M 2019 PTBA’s 9M -2019 achievement is still on track 8

Key Financial Highlights Revenue and Growth Gross Profit and Margins (IDR bn) (IDR bn) 43.7% 40.4% 31.3% 35.1% 1.5% 38.5% 8.7% 20.7% 1.4% 41.6% 8,507 8,546 21,167 19,471 6,667 16,254 5,705 16,036 14,059 4,401 FY2016 FY2017 FY2018 9M 2018 9M 2019 FY2016 FY2017 FY2018 9M 2018 9M 2019 Revenue (IDR bn) Growth (%) Gross profit (IDR bn) Gross profit margin (%) Operating Profit and Margins Net Profit and Margins Note: net profit after minority interest (IDR bn) (IDR bn) 30.3% 29.7% 18.0% 23.0% 23.7% 24.5% 19.1% 32.3% 25.1% 14.3% 5,024 6,283 5,899 4,476 5,174 3,930 4,082 3,101 2,531 2,006 FY2016 FY2017 FY2018 9M 2018 9M 2019 FY2016 FY2017 FY2018 9M 2018 9M 2019 Operating profit (IDR bn) Operating profit margin (%) Net profit (IDR bn) Net profit margin (%) 9

Key Financial Highlights (Cont.) Sales Breakdown by Country (1) Cost Breakdown Heavy Third Party Others China , 2% Malaysia, Equipment 10% 1% 2% Spareparts & 2% (2) Philipina, materials 3% Others, 5% 3% Train Fuel Transportation Jepang, 3% 4% 29% Depreciation Taiwan, 3% 4% Royalty & Domestic, Retribution Hongkong, 59% 8% 5% South Salaries & Third Party Korea, 7% Wages Mining Cost India, 11% 13% 26% Sales Breakdown by Quality (1) Total Cash Cost (FOB) (4) % Cash cost (3) 9M2018 9M2019 Peningkatan Others BA-64 , 2% (IDR ‘000/t) BA-45 7% (Penurunan) 3% 561 572 Total 2% GAR 6100 5% GAR 4800 16% BA-50 67% (1) Breakdown based on sales distribution per ton. (2) Others include Thailand, Sri Lanka, Vietnam, Cambodia, Australia, Pakistan. (3) Others include SEMI-ANS, ANS, GAR 5800, GAR 6700, GAR 4700-IPC, GAR 4600-IPC, BA-55. (4) Total Cash Cost include COGS, G&A, Selling Expenses, Inventory and Royalty. 10

3. Company Overview 11

Company Overview Captive Market for Domestic Market Expanding Railways Capacity and New Ports Development Projects Financial Strength and High Dividend Payout Ratio 12

Captive Market for Domestic Market Coal remains the key source of Indonesia’s energy over time (3) Domestic coal consumption expected to grow at ~12% (1)  Overall coal domestic consumptions is expected to grow at 12%, largely  Indonesia's energy mix is expected to undergo a transformation over the next driven by demand from power plants and Cement, textile, fertilizer & pulp decade that would result in more coal being consumed (1) industry  Indonesia plans to increase power generation by 35 GW Program, of which 20GW is expected to be generated using coal (1) CAGR (Mt) (2015A-2019E) 135.5 115.1 Coal: ~30% 14.5 30% 30% 30% 97.0 1.8 of total 15% 90.6 25.3 49% 86.0 22.2 electricity 0.3 0.4 13.7 0.4 generation 14.7 22% 14.7 24% 29% 8% 19% 95.7 91.1 23% 83.0 22% 75.4 23% 70.8 20% 23% 25% 19% 12% 2015A 2016A 2017A 2018A 2019E 2016A 2020E 2025E 2030E (2) Renewables Gas Oil Coal Power Plant Cement, textile, fertilizer & pulp Others PTBA’s sales breakdown per country FY 2018 (4) Given its strong relationship with PLN and abundant reserves (>100 years’ reserve life), PTBA was the highest coal DMO supplier company in 2018 (5) Taiwan Others 3% 5% Thailand 3% Note: Hong Kong (1) Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources 4% Domestic (2) Others include Metallurgy, Smelter and Briquette industries. South 56% 2020E – 2030E forecasted electricity generation composition as reported by the (3) Korea Indonesia Energy Statistics (World Bank, Indonesia Energy Statistics). 2016A data based on 8% BMI. (4) Breakdown based on sales distribution per country in tons FY2018 India (5) Others include Cambodia, Japan, Vietnam, Malaysia, Philippines, Pakistan 10% China 11% Significant Coal Sales Exposure to Indonesia Market and Benefiting The Most from Growth in Domestic Coal Demand 13

Expanding Railway Capacity and New Ports Indonesia New Barging Port Project Construction of Prajin Barging Port  Capacity : 10 Mtpa (2024) Prajin Barging Port Railway Project (New) Kertapati Development to Northern South Sumatera Barging Port Option to Prajin Barging Port Capacity: 10 Mtpa (2024) Muara Enim Lahat Tanjung Enim Prabumulih Baturaja Railway (Upgraded): Shortcut Capacity: up to 30 Mtpa TE - Baturaja  TE – Kertapati: 5 Mtpa (2019) Railway Project (New) Development to Southern Lampung  TE – Tarahan (Tarahan-I) : 20.3 Mtpa (2019); Tarahan (Tarahan-II) 25 Mtpa (2020) Capacity: 20 Mtpa (2024) Tarahan Port Phase 2 Tarahan New Port Phase 2 Tarahan Port Developmnet  Capacity : 20 Juta Mtpa (2024) The Tanjung Enim Mine (27 Mtpa existing production capacity) and Tarahan Port (largest coal terminal in Sumatera, accommodating “ Capesize ” bulk carrier vessels of up to 210,000 DWT) are 100% owned and operated by PTBA 14