1

PT Toba Bara Sejahtra Tbk (“Toba”)

Company PresentationApril 2017

PT Toba Bara Sejahtra Tbk (“Toba”)

Company PresentationAugust 2017

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

2

Company Profile

Performance Highlights

3

1

Strategy to Venture into Power

3

i Sulbagut-1 Project

ii Sulut-3 Project

4

Performance HighlightsPerformance Highlights2 Company Profile1

Location: Kutai, Kalimantan Timur

Hak Guna Usaha (“HGU”) covers 8,633 ha, where

2,701 ha has been planted

CPO mill with capacity of 30 tons Fresh Fruit Bunch

(“FFB”) per hour

GLP and MCL established in February 2016 and March

2017 respectively for development of steam (coal) fired

power plant project (“CFPP") with capacity of 2x50 MW

each

25 year Power Purchase Agreement (“PPA”) through

Independent Power Producer (“IPP”) scheme with PLN

as single offtaker

TBE established in December 2016 for investment in

power generation business5

Toba Bara Sejahtra In Brief

Location: Kutai Kartanegara, Kalimantan Timur

Total Concession: 7,087 ha

JORC-compliant proved and probable reserves of

147 MM tons and measured, indicated and inferred

resources of 236 MM tons

Coal brands with mid to upper range calorific values

ranging from 4,700-5,900 Kcal/kg GAR

Prime location provides operational cost edge to

grow as a logistical & operational center for the area

Coal Mining Palm Oil Plantation & Mill

Toba Bara Sejahtra(Toba) has 5 (“five”) subsidiaries engaged in:

Power Generation

Note:

1. PLN: PT Perusahaan Listrik Negara (Persero)

Ownership Structure

License

Area

Davit Togar

Pandjaitan

PT Bara Makmur

AbadiPT Toba Sejahtra Roby Budi Prakoso

PT Sinergi Sukses

Utama

61.91% 10.00% 6.25% 5.10%

PT Toba Bumi Energi

(“TBE”)

99.99%

99.99%

3.64%

51.00% 99.99%

Public *)

12.35%

90.00% 80.00%

Highland Strategic

Holdings Pte. Ltd.

0.75%

• On 25th January 2017, PT Toba Sejahtra (“TS”), the majority shareholder of PT Toba Bara Sejahtra Tbk (“Company”) with 71.79%

divested majority 61.79% share ownership to new shareholder, Highland Strategic Holdings Pte. Ltd. (“HSH”)

• HSH is a Singapore-based investment company, mainly focused in the energy sector

• With HSH and TS sharing the same business alignment, HSH is expected to add further value to the future development of the Company

6

*) Incl. Baring Private Equity

as anchor investor

90.00%

20-year Production

Operation Mining Permit

(“IUP-OP”) expiring in

December 2029

2,990 ha

IUP-OP extension was

completed in March

2013 (First out of 2

extensions: in 2023,

with tenor of 10 years

each)

683 ha

13-year IUP-OP expires

in December 2023

3,414 ha

Plantation permit of PT

Perkebunan Kaltim

Utama I (PKU) expires

in 2036

IUP-P for downstream

processing

8,633 ha (Right to Use

Land)

GLP’s PPA with PLN(1)

for 25- year contract

~60 ha

MCL’s PPA with PLN(1

for 25- year contract

~30 - 40 ha

Off-take (“take or pay”)

by PLN for 25 years

Planted Area: 2,701 ha Off-take (“take or pay”)

by PLN for 25 yearsReserveReserves: 117 MT - JORC

Resources: 156 MT - JORC

Reserve: 22 MT - JORC

Resources: 37 MT - JORC

Reserves : 8 MT - JORC

Resources: 43 MT - JORC

99.60%

Strategic Mine Locations

Muara Berau

Muara Jawa

Makassar Strait

~55 km

(total ~120 km)

Balikpapan

Samarinda

~65 km

Major

CityJetty Transhipment

Point

TMU – IM

Hauling Road

Kutai Energi

TMU

ABN

IM

Major city to north

is less than 50 km

Adjacent

locations for all

3 mines

Close proximity to

jetty and

transhipment point

of Muara Jawa

Distance from pit to

jetty, with closest one

~5 km and furthest ~25

km

~5 km

IM jetty

ABN jetty

Toba owns all infrastructures (coal processing plant, overland conveyors, and jetties), giving significant

operating leverage vs other concessions in surrounding areas

25 km

7

TMU IM

ABN

TMU

Overland & Barge

Loading Jetty: Speed

of 1,800 TPH

High Built CPP Cap

up to 10 Mn TPA

Short Coal Hauling

Distance < 5km

Hauling Road to

Connect with ABN

CPP Capacity : 6 Mn

Tons/Annum (TPA)Conveyor to Jetty

Short Coal Hauling

Distance ~4km

Infrastructure & Operational Capabilities

Toba’s Concessions

ROM Stockpile

8

Note: PT Adimitra Baratama Nusantara (ABN)

PT Indomining (IM)

PT Trisensa Mineral Utama (TMU)

PPA signing with

PLN for Sulut-3

Power Project

Engineering Procurement Contract

(EPC) signing with SEPC* for

Sulbagut-1 Power Project

Contracts and Awards Earned in 1H17

7 April 2 May 7 July 11 July 14 July

Project Financing Signing with

Bank Mandiri worth US$ 171.8 mn

for Sulbagut-1 Power Project

Material Information

9

Financing Date with

PLN for Sulbagut-1

Power Project

Special Transaction Loan Facility

and Non-Cash Loan of US$ 50 mn

with Bank Mandiri

* Shanghai Electric Power Construction Co. Ltd.

ABN received Gold PROPER

Enviromental Award from

Provincial Govt for 3 consecutive

years

IM and TMU received Green

PROPER Enviromental Award for 2

consecutive years

IM received certificates for ISO

14001, OHSAS 18001 and ISO 9001

ABN received Award from

Customs Office of East

Kalimantan as “Ideal”

Company

TMU received Pratama Award

from Ministry of Energy, Mines,

& Resoucres (MEMR)

10

Performance Highlights2

4.1 Mt

5.2 Mt5.6 Mt

6.5 Mt

8.1 Mt

6.1 Mt5.5 Mt

5.0-6.0 Mt

$99 $121 $97

$85

$71

$59$66

$65-70

0

20

40

60

80

100

120

140

0

1

2

3

4

5

6

7

8

9

10

2010 2011 2012 2013 2014 2015 2016 2017 est.

Toba Consolidated NEWC Price

30.1% 32.9%

5.7%13.9% 13.5% 15.4% 15.2%

Stablemargin

EBITDA Margin

Production Profile

11

Source: Coal price from GlobalCoal

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

Operational Performance

Quarterly Production & SRProduction in Thousand Tons

Production SummaryMT: Million Ton

2Q16 2Q17 Change Comment

Sales Volume

SR (x)

1.7 1.1

13.8 14.3

(35.3)%

10.5%

Sales volume tracked its 2Q17 production volume

SR edged up due to impact from mining operations during

prolonged wet weather conditions

1.3 1.2Production volume in 2Q17 was below guidance due to

prolonged rainfall during the period(17.9)%Production

Volume

Production SummaryMT: Million Tons

Quarterly production volume of 1.2

mn tons in 2Q17 came in below 2017

quarterly guidance of 1.25 -1.50 mn

tons

2Q17 SR rose to 14.3x from 13.7x in

1Q17 due primarily to heavier than

expected rainfall, which impacted

production

Production should normalize in

subsequent quarters

2017 guidance for SR is estimated at

12x - 13x in line with mine plan

12

13.8x12.8x 12.6x

13.7x 14.3x12.0x - 13.0x

0.0

0.1

0.1

0.2

0.2

0.3

2Q16 3Q16 4Q16 1Q17 2Q17 QuarterlyGuidance

TMU IM ABN SR (Consolidated)

1.3 1.41.2

1.1

1.41.25 - 1.50

Consolidated Performance

Operational 1H16 1H17 Change

Production Volume 2.8 2.3 -17.9%

Sales Volume 3.1 2.2 -29.0%

Stripping Ratio (SR) 13.1 14.0 6.9%

Sales 139.0 127.9 -8.0%

EBITDA* 22.0 28.4 29.1%

Profit for the Period 9.3 14.6 57.0%

Financial 1H16 1H17 Change

Note: Based on unaudited financial statements

(*) EBITDA = Gross profit – selling expenses – G&A + depreciation and amortization + other non-cash items

45.4

13

NEWC Index 80.6 58.3%50.9

Average Selling Price (ASP) 57.3 26.2%

Mn ton

Mn ton

x

US$/ton

US$/ton

US$ mn

US$ mn

US$ mn

FOB Cash Cost 34.9 38.8 11.2%US$/ton

15.8%EBITDA Margin 22.2%

Gross Profit Margin

Financial Ratios 1H16 1H17

28.6%20.2%

14

Sales Volume, NEWC Index & ASP (million tons and US$/ton)

Sales, Cost of Goods Sold and Gross Profit

Margin (US$ million and %)

EBITDA/ton and EBITDA Margin(US$/ton and %)

Increase in ASP per ton directly filters to higher

gross profit margin and EBITDA margin

ASP Positively Impacts Margins

3.33.1

2.262.7

50.9

80.6

57.3

45.4

57.3

1H15 1H16 1H17

Sales Volume

NEWC Index

ASP

190.8139.0

127.9

154.7

110.991.2

18.9% 20.2%

28.6%

1H15 1H16 1H17

Sales

Cost of GoodsSold

Gross ProfitMargin

9.07.2

12.9

15.6% 15.8%

22.2%

1H15 1H16 1H17

EBITDA/ton

EBITDA Margin

Balance Sheet

Consolidated Balance SheetIn Million US$

Net Debt to EBITDA2)

In Million US$

Total assets and total liabilities rose similarly due to rise in interest bearing debt from Bank Mandiri’s US$ 50 mn

loan facility. This was for refinancing syndicated loan, investment, and corporate purposes where US$ 40 mn of

proceeds was used by June 2017

Total equity value improved due to current earnings over the period

Net Debt to EBITDA ratio has constantly recorded stability from quarter to quarter at < 0.5x

Note:

(1) Interest Bearing Debt: Bank loans + Financing lease

(2) EBITDA : Based on last 12 months15

276.3Total Assets 261.6 5.6%

Interest Bearing Debt1) 61.351.3 19.5%

Total Liabilities 120.8113.8 6.1%

Shareholders Equity 154.8147.7 5.2%

Balance Sheet Dec’ 16 ChangeJun’ 17

Cash and Cash Equivalent 37.6 31.6%49.5

Capital Expenditure

CAPEX Realization until June 2017

16

Realized CAPEX as of 1H17 :

US$ 5.3 mn in mining-related

activity and power project from

2017 target : US$ 60 – 65 mn (inc.

Investment in power project)

Advance for purchase of fixed

asset 75%

Exploration and land

acquisition15%

Vehicles4%

Machinery and heavy equipment

3%

Conveyor2%

Others1%

96%

63%

71%77%

4%

37%

29%

23%

Traders End-users

30

40

50

60

70

80

90

100

110

120

2014 2015 2016 1H17

NEWC ASP HBA

Rise in 1H17 ASP vs full year 2016 ASP

> rise in NEWC over same period due

to better contracted prices mainly

secured in 2H16

ASP Performance vs Benchmark

17

US$/ton

In 2014-2015, spread between NEWC and ASP narrowed due to optimizing marketing initiative at mainly

fixed price to premium customers in Japan, Korea, Taiwan, and Malaysia

Majority of 2016 sales volume was fixed at price during 1H16 period. Sudden coal price surge in 2H16

beyond market prediction was not reflected in the 2016 ASP, causing widened spread between NEWC

and ASP

Diversified Export Market Base

18

10%

7%5%

30%

26%

31%

4%

10%

24%

18%

6%

11%

6% 6% 7%

1H15 1H16 1H17

China Korea Thailand Taiwan Japan

30.8%

23.6%

11.4%

7.9%

7.0%

5.5%

3.8%

3.4%

2.9%

2.0%

1.7%

0.0 0.2 0.4 0.6

Korea

Thailand

Taiwan

Malaysia

Japan

China

India

Vietnam

Hong Kong

Bangladesh

Others

Million tons

Export Market Focus 1H15 - 1H17 1H17 Export Market - More ASEAN Driven

Given China’s economic situation in 2015, focus shifted towards export markets whose economies showed

stable demand prospects ie. Korea, Japan, Taiwan, India, and at later stages ASEAN ie. Thailand, Malaysia, and

Vietnam (showing positive traction)

Diversification towards countries ex.China remained a highlight for 2016

In 1H17 and going forward, ASEAN markets will play more important role in sourcing coal from its proximate

supplier ie. Indonesia

19

In 1H15 and 1H16, sales constribution consistently derived from mainly 5600 GAR products

Rescheduling of partial sales delivery of 5600 GAR products to 2H17 period has contributed to

decline in the 5600 GAR in 1H17 product composition as compared to previous periods

Product Composition (GAR) by % - 1H17 Product Composition (GAR) : 1H15 - 1H17

Product Composition by Quality

24.8%

23.4%

22.3%

11.4%

10.0%

7.0%

1.1%

0.0 0.2 0.4 0.6

4800 & 5000

5600 HS

5200

5600 RS

5800

5900 LS

Others

Million Tons

32%36%

23%

39%

30%

11%

0%

10% 10%

29%

24%

56%

1H15 1H16 1H17

5600 HS 5600 RS 5800 Others

Snapshot of 2017F

Operation

Prod Vol (mn ton)

SR (x) 12x - 13x

5 - 6

2015

12.3x

6.1

NEWC Coal Price (US$/ton) 66.159.2

Mine Plan Execution

2017 production and SR are targeted similar to those in 2016 of 5 - 6 million tons and 12x

- 13x respectively

Marketing Strategy

The Company continues managing well-diversified market destinations and customer

base, maintaining product quality and timely delivery, as well as optimizing the current

favorable coal price into the Company’s ASP

Capital Expenditure

Total CAPEX for 2017 is estimated at US$ 60 - 65 million, of which 85% - 90% will be

allocated for EPC phase of the power project (Sulbagut-1), with the balance for the mining

business, i.e. land acquisition, and infrastructure/heavy equipment

Sourcing of Other Power Projects

In translating the Company’s vision, the Company will continuously seek for opportunities

in sourcing new power projects (fossil fuel and non fossil fuel based such as renewables)

through participation in IPP tenders as well as through acquisition of existing power assets 20

12x - 13x

5 - 6

2017 F

65 - 70

2016

Building, Infra, Heavy Equip

~5%

Land Acquisition

~6%

Exploration~1%

Power~88%

2017 CAPEX : Significantly into Power Project

21

Performance HighlightsPerformance Highlights2Strategy to Venture into Power3

Business Growth and Sustainabiity

Transformation

• Acquisition of mine(s)

around existing mining

concessions

• Acquisition of mine(s)

to support coal-related

power projects

• Active participation as

IPP* in PLN tenders

• Assessment of

developing renewables

• Identification of

strategic partner with

vast track record

• Expansion of power

project capacity (MW)

Coal Mine

• Optimization of existing mine plan

• Optimization of infrastructure sharing

• Cost management

• Diversification of markets and

customer base

• Active participation in CSR

Company Strategy

Integrated

Energy

Company Fossil Fuel and

Renewables Power

Present Future Company Initiatives

Coal

Mining

Company

* Independent Power Producer 22

23

Why Toba Can Realize this Goal?

Extensive experience in executing project from greenfield to brownfield in

coal mining, CFPP and gas-fired power plant development and operation

Sulbagut-1 CFPP project (2x50 MW) – Financial close was reached on 14

July 2017, the first reached on schedule this year by any IPP. Expected

COD in mid 2020

Second 2x50 MW Sulut-3 CFPP project was signed on 7 April 2017 with

expected COD in 2020

Our partners for the projects are well established and vastly experienced

in construction and operation of power plants in many countries

Having strong partners enable us to de-risk the construction phase of

the projects

Substantial

Power-Related

Milestones

Have Been

Achieved

Experienced

Partners with

Proven Track

Record

Currently, Toba Sejahtra (Toba’s Shareholder) has one operating power

plant asset: 2 x 41 MW Senipah Gas Power Plant, COD in 1Q-2015; and

previously 2 x 15 MW Palu CFPP; reached COD in 2007 (already divested

in 4Q16)

Possessing vast learning curve of knowing what to and not to do in

planning to execution of project management. This enables Toba to

mitigate and minimize project risk

Leveraging

Toba Sejahtra

Group’s

experience

Toba Participation Process in IPP Tenders

IPP Tender Participation 2014-2015

• Toba has actively participated in PLN tenders including 6 IPP bidding projects initiated in 2014-2015. For

gas-fired projects, Toba decided not to continue with the bidding process due to IRR calculation

• Going forward, Toba is targeting non-coal projects, including gas and renewables-based projects

24

Project Name Company Name Capacity

Toba

Stake (%) Status

Sulbagut -1 PT Gorontalo Listrik Perdana 2 x 50 80% Signed PPA in July 2016

Sulut-3 PT Minahasa Cahaya Lestari 2 x 50 90% Signed PPA in April 2017

Gas-fired Power Plant 1 x 500 5% Refrained from bidding process

Gas-fired Power Plant 1 x 250 5% Refrained from bidding process

Gas-fired Power Plant 1 x 100 24% Refrained from bidding process

Gas-fired Power Plant 2 x 800 5% Refrained from bidding process

25

Our Project Selection Process

Targeting return of equity IRR and Project IRR

Ability to identify, assess, and manage completion risk, technical and non-technical risk such as

social assessment for land acquisition to ensure the project can be completed within specified time

schedule

Financial capability to participate in targeted tender projects where PLN sets specific requirements

to meet

Majority control for certain size of IPP projects

Appetite to have minority portion with good and credible partner in larger size projects

• Credible partner with vast experience and proven technology

• Can bring long-term value-add to organization and local people including transfer knowledge

• Have good networking capability with PLN and power stakeholders

Parameters for Project Selection

Parameters for Partner Selection

Leveraging Toba Sejahtra Group’s

Experience in Power Plant Development

Sumatra

Kalimantan

Java

Sulawesi

Malaysia

East Kalimantan

Senipah Power Plant

Central Sulawesi

Palu Power Plant

PLTG Senipah

2 x 41 MW

PJPP *)

2x15 + 2x18 MW

In operation, COD in Q1

2015

Combined Cycle

System is under PPA

finalization for additional

35 MW

Total potential supply:

115 MW

In operation, COD in

2007

Expansion 2x18 MW is

COD 2016

Total potential supply:

66 MW

26

SULBAGUT-1

2 x 50 MW

Financial Close: 14

July 2017, the first

reached on schedule

this year by any IPP

NEW PROJECTS

(Expected COD in 2020)

* Dviested to private buyer in 4Q 2016

SULUT-3

2 x 50 MW

PPA in place, in

process for

Commencement of

Work

Sulbagut-1 Projecti

28

General Description of Sulbagut-1 Project

Project

Location :

North

Gorontalo

Regency,

Sulawesi

Sulbagut-1 Coal-Fired Power Project is part of 35 GW Program

• 2 x 50 MW Capacity

(Nett)

• Build-Own-Operate-Transfer

(BOOT)

Contract Scheme

• 25 YearsContract Period

• MiD 2020COD

Target

• SEPCEPC

• US$ 210-220 million

Project Value

29

Financial Close of Sulbagut-1 Project

Principle License

Land Acquisition

Tariff Approval

EPC Contract

Financing Agreement

Financal Close

Reception

attended by

BoD of PLN

Achievement of

Financing Date with

PLN, 14 July 2017

30

2017 2020

Site

Preparation

2018 2019

Construction

Next after Financial Close...

Commercial

Operation

Date (COD)

Commissioning

Sulut-3 Projectii

32

Project

Location :

North

Minahasa

Regency,

Sulawesi

Sulut-3 Coal-Fired Power Project is part of 35 GW Program

• 2 x 50 MW Net

Capacity

• Build-Own-Operate-Transfer

(BOOT)

Contract Scheme

• 25 YearsContract Period

• 33 months post Commencement

of Work

COD Target

• US$ 205-215 million

Project Value

General Description of Sulut-3 Project

33

Signing of PPA for Sulut-3 Project

Handing of Token of Appreciation to

PLN, 7 April 2017

PPA signing for Sulut -3 Project

7 April 2017

THANK YOU