PT Bukit Asam Tbk Corporate Presentation FY2018 Agenda 1. - PowerPoint PPT Presentation

PT Bukit Asam Tbk Corporate Presentation FY2018

Agenda 1. Introduction 2. FY 2018 Update 3. Company Overview 1

1. Introduction

PT Indonesia Asahan Aluminium (Persero) owns ~65% of total shares The Subsidiaries and Indirect Subsidiaries Others Mining Trading Power Logistics Gas Investment Others Mining Power Gas Trading Logistics Investment PT Bukit Asam Tbk (“PTBA” or the “Company”) operates a fully integrated large coal mining in Tanjung Enim (South  Sumatera), Ombilin (West Sumatera), Peranap (Riau) and East Kalimantan. 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, investment and others. 3

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

PTBA is One of The Fastest Growing and Lowest Cost Coal Producers in Indonesia 2015 – 2017 Production CAGR 2017 Coal Production (Mt) (%) 36.0% 33.9% 83.7 23.3% 12.2% 51.8 0.3% 32.7 24.2 22.1 20.9 15.6 (8.4%) (11.9%) Bumi Adaro Indika PTBA ITMG Bayan Golden Bayan Golden Bumi PTBA Adaro Indika ITMG Energy Energy 2017 EBITDA Margin 2017 Weighted Average Stripping Ratio (%) (x) 11.1x 45.4% 40.4% 35.0% 7.1x 26.5% 26.5% 6.1x 24.1% 4.6x 4.1x 4.1x 3.6x n.m. (1) (2) Bayan Adaro PTBA Indika ITMG Golden Bumi PTBA Golden Bayan Adaro Indika Bumi ITMG Energy Energy Source: Company filings. (1) Adjusted EBITDA. (2) Refers to the strip ratio of BIB concession area. 5

2. Update FY2018

Key Performance Highlights FY2018 vs FY2017 FY2019 E FY2018 FY2017 (% change) Sales volume (Mt) 28.38 24.69 23.63 4.5% Production (Mt) 27.26 26.36 24.23 8.8% 25.30 22.69 21.36 Railway Capacity (Mt) 6.2% Revenue (IDR TN) n.a. 21.17 19.47 8.7% Net Profit (IDR TN) n.a. 5.02 4.48 12.1% Weighted Average n.a. 835,155 808,690 3.3% Selling Price (IDR/t) Stripping Ratio (x) 4.8 4.1 3.6 16.3% 7

Key Operational Highlights Production and Sales Volume Railway Capacity (Mt) (Mt) 25.3 28.4 27.3 22.7 26.4 21.4 24.2 24.7 23.6 17.7 20.8 19.3 19.1 19.6 15.8 FY2015 FY2016 FY2017 FY2018 FY2019E FY2015 FY2016 FY2017 FY2018 FY2019E Production (Mt) Sales Volume (Mt) Weighted Average Stripping Ratio Weighted Average Selling Price (x) (IDR/t) 4.9 4.8 835,155 4.5 808,690 4.1 707,052 658,018 3.6 FY2015 FY2016 FY2017 FY2018 FY2019 E FY2015 FY2016 FY2017 FY2018 8

Key Financial Highlights Revenue and Growth Gross Profit and Margins (IDR bn) (IDR bn) 43.7% 30.7% 31,3% 5.9% 1.5% 38.5% 8.7% 40.4% 8,507 8,546 21,167 19,471 13,845 14,059 4,401 4,251 FY2015 FY2016 FY2017 FY2018 FY2015 FY2016 FY2017 FY2018 Revenue (IDR bn) Growth (%) Gross profit (IDR bn) Gross profit margin (%) Operating Profit and Margins Net Profit and Margins (IDR bn) (IDR bn) 17.8% 18.0% 30.3% 29.7% 23.7% 14.7% 14.3% 23.0% 6,283 5,024 5,899 4,476 2,531 2,469 2,036 2,006 FY2015 FY2016 FY2017 FY2018 FY2015 FY2016 FY2017 FY2018 Operating profit (IDR bn) Operating profit margin (%) Net profit (IDR bn) Net profit margin (%) 9

Key Financial Highlights Sales Breakdown by Country (1) Cost Breakdown (2) Taiwan Others Contribution for Community 3% 5% Development Thailand 2% Heavy 3% Fuel Others Equipment 4% Hong Kong 9% Rent Train 4% 4% Transportation Depreciation South Korea 29% 4% 8% Domestic Third Party 56% 7% India 10% Third Party Royalty & Mining Cost Retribution Salaries & China 20% 7% Wages 11% 16% Sales Breakdown by Quality (1) Total Cash Cost (FOB) (4) (3) GAR 6100 Others Tanjung Enim cash cost FY2018 vs FY2017 FY2017 FY2018 2% 3% (IDR ‘000/t) (% change) BA 45 4% BA 48 21% Total 497 536 (8%) GAR 4800-IPC 2% BA 50 68% (1) Breakdown based on sales distribution per ton. (2) Others include Cambodia, Japan, Vietnam, Malaysia, Philippines, Pakistan (3) Others include GAR 4200-IPC, GAR 4400-IPC, GAR 4700-IPC, GAR BA55, GAR 5800, BA 64, GAR 6700, ANS, Peranap. 10 (4) Tanjung Enim Mine Include COGS, G&A, Selling Expenses, Inventory and Royalty.

3. Company Overview

Company Overview Significant coal sales exposure to Indonesia market and benefiting the 1 1 most from growth in domestic coal demand 1 2 Expanding railways capacity to Sumatra mines Resilient operational track record, further propelled by the 1 3 optimism of railway capacity and future development projects 1 4 Robust financial strength with strong net cash position 12

Significant Coal Sales Exposure to Indonesia Market and 1 1 Benefiting The Most from Growth in Domestic Coal Demand 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 CAGR 20GW is expected to be generated using coal (1) (Mt) (2015A-2019E) 135.5 Coal: ~30% 30% of total 115.1 30% 30% 14.5 49% electricity 97.0 1.8 15% 25.3 90.6 86.0 generation 22.2 0.3 22% 0.4 13.7 24% 29% 0.4 14.7 14.7 19% 8% 23% 22% 95.7 23% 91.1 83.0 75.4 70.8 20% 25% 23% 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 (4)  Given its strong relationship (5) Taiwan Others with PLN and abundant reserves (>100 years’ reserve 3% 5% Thailand life), PTBA has one of the most 3% attractive production growth Hong Kong profile among ASEAN coal 4% Domestic miners 56%  As the world’s largest South Korea 8% consumer and producer of thermal coal, China remains a key export market to PTBA, India providing a stable source of 10% revenue moving forward  Furthermore, PTBA derives China 11% of its FY2018 sales from 11% China (13% in FY2017) (1) Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources (2) Others include Metallurgy, Smelter and Briquette industries. 2020E – 2030E forecasted electricity generation composition as reported by the Indonesia Energy Statistics (World Bank, Indonesia Energy Statistics). 2016A data based on BMI. (3) 13 (4) Breakdown based on sales distribution per country in tons FY2018 (5) Others include Cambodia, Japan, Vietnam, Malaysia, Philippines, Pakistan

Expanding Railways Capacity to Sumatra Mines 1 2 Indonesia Prajin Barging Port Railway Project (New) Kertapati Development to Northern South Sumatera Barging Port Option to Perajin Port  Capacity: 10 Mtpa (2023) Lahat Tanjung Enim Prabumulih Double Tracks Muara Enim Baturaja Railway (Upgraded): Shortcut Capacity: up to 30 Mtpa TE - Baturaja Railway Project (New)  TE – Kertapati: 5 Mtpa (2019) Development to Southern Lampung  TE – Tarahan (Tarahan-I) : 20.3 Mtpa (2019); Tarahan (Tarahan-II) 25 Mtpa (2020)  Capacity: 20 Mtpa (2023) Tarahan Tarahan Coal Terminal Second Line Port The Tanjung Enim Mine (25 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