1

PT Toba Bara Sejahtra Tbk (“Toba”)

Company PresentationApril 2017

PT Toba Bara Sejahtra Tbk (TOBA)

Company PresentationFull Year 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

2017 Performance Highlights

3

1

Strategy to Venture into Power

3

i Sulbagut-1 Project

ii Sulut-3 Project

4

Performance HighlightsPerformance Highlights2 Company Profile1

Kalimanta

n

East Kalimantan

PT Toba Bara Sejahtra Tbk in Brief

Location: Kutai Kartanegara,

Kalimantan Timur

Total Concession : 7,087 ha

Coal Mining

Location: Kutai Kartanegara,

Kalimantan Timur

Hak Guna Usaha (HGU) covers

8,633 ha. where 2,701 ha has

been planted

Palm Oil Plantation & Mill

5

Power Generation

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

Gorontalo

North Sulawesi

Ownership Structure

6

License

Area

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

~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

yearsReserve

Reserves: 45 MT –

JORC (2018)

Resources: 78 MT –

JORC (2018)

Reserve: 13.1 MT

– JORC (2018)

Resources: 54.6

MT – JORC

(2018)

Reserves : 5.8 MT

– JORC (2018)

Resources: 20.3

MT – JORC

(2018)

Davit Togar

Pandjaitan

PT Bara Makmur

Abadi

PT 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% 60.00%

Highland Strategic

Holdings Pte. Ltd.

0.75%

*) Incl. Baring Private

Equity as anchor

investor

90.00%

99.60%

Note: On 4th February, 2016, the Company has entered into sales and purchase agreement with Toba Sejahtera to acquire Toba Sejahtera’s 20% ownership in

GLP (Subject to approval from PLN) )

Strategic Mine Locations

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

significant operating leverage vs other concessions in surrounding areas7

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 2017

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

2017 Performance Highlights2

4.1 Mt

5.2 Mt5.6 Mt

6.5 Mt

8.1 Mt

6.1 Mt5.5 Mt

5.0 Mt

$99 $121 $97

$85$71

$59$66

$89

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

Toba Consolidated Production NEWC Price

30.1% 32.9%

5.7%13.9% 13.5% 15.4% 15.2%

24.1%

EBITDA Margin

Production Profile

11Source: 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

Yearly Production & SR

Production in Million Tons

2016 2017 Change Comment

Sales

Volume5.7 4.8 (15.8)% Sales volume tracked its 2017 production volume

SR (x) 12.9 13.1 1.6% SR edged up due to wet weather in 2Q17, but in line with

mine plan

5.5 5.0Production volume in 2016 stabilized at 5.0 mn tons in

line with mine plan(9.1)%

Production

Volume

Production Summary

MT: Million Tons

12

Q-o-q production volume has

remained stable and in line with

2017 quarterly guidance of 1.25

1.50 mn tons

4Q17 SR stabilized at 12.0x, on

track of achieving annual SR

guidance of 12x - 13x

Higher SR in 2Q17 impacted by

wet weather

12.6x

13.7x 14.3x

12.6x12.0x

12.0x - 13.0x

4Q16 1Q17 2Q17 3Q17 4Q17 QuarterlyGuidance

TMU IM ABN SR (Consolidated)

1.1 1.2

1.25 - 1.501.4 1.4 1.3

Realization

Consolidated Full Year 2017

“Sustainability & Resilience”

Focused on profitable production output

through optimization of :

• Infrastructure and connectivity sharing

(hauling road and coal processing plant)

• Joint mine plan

• Coal sale pricing driven by relationship.

consistency in scheduled delivery and

product quality

• Well-diversified market destinations

and customer base

Note:

(a) FOB Cash Cost = COGS including royalty and selling expense –

depreciation and amortization

(b) Includes profit from construction of Sulbagut-1 power project

(based on accounting treatment PSAK 34 and ISAK 16)

(c) EBITDA = Gross profit – selling expenses G&A + depreciation and

amortization

(d) EBITDA/ton = Coal mining business only

13

Operational FY16 FY17 Δ%

Production Vol 5.5 5.0 (9.1) %

Sales Vol 5.7 4.8 (15.8) %

Stripping Ratio 12.9 13.1 1.6 %

Sales(b) 258.3 310.7 20.3 %

EBITDA(c) 39.2 74.8 90.8 %

Net Profit 14.6 41.4 183.6 %

Financial FY16 FY17

45.4

NEWC Index 88.5 34.1 %66.0

ASP 61.1 34.6 %

mn ton

mn ton

x

US$/ton

US$/ton

US$ mn

US$ mn

US$ mn

Δ%

EBITDA/Ton(d) 7.1 15.3 115.5%US$/ton

15.2%EBITDA Margin 24.1%

Gross Profit Margin 30.3%20.6%

Financial Ratios FY16 FY17

FOB Cash Cost(a) 34.5 40.0 15.9 %US$/ton

Evolution of FOB Cash Cost

Quarterly FOB Cash Cost

In US$/ton

Notes:

(1) FOB Cash Cost = COGS including royalty and selling & marketing expense – depreciation and amortization

(2) Adj. FOB cash costs = COGS. including selling & marketing expense and royalty – depreciation & amortization of exploration & development and

excluding deferred stripping cost14

50 47 43 41 38 35 35 35 34 37 40 41 42

51 46

42 41 38 34 35 35 34 37 41 41 41

63.8 65.859.6 59.0

52.6 50.3 51.5

67.3

94.7

81.5 79.7

94.5

98.2

13.8x

12.4x 12.5x12.0x 12.1x 12.4x

13.8x12.8x 12.6x

13.7x 14.3x

12.6x12.0x

0x

3x

6x

9x

12x

15x

0

20

40

60

80

100

120

140

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

FOB cash cost Adj. FOB cash cost NEWC SR

Despite fluctuation in NEWC price, TOBA has maintained relatively stable SR and cash cost

through proper mine planning and cost management initiative

Although cash cost rose 18.8% from 2Q16 to 4Q17, coal price increased much higher by 90.5%

over same period, hence reflecting the still higher ASP expansion over cash cost rise itself

15

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 flows through

higher gross profit margin and EBITDA margin

ASP Positively Impacts Margins

6.4 5.7

4.8

59.2

66.0

88.5

54.8

45.4

61.1

2015 2016 2017

Sales Volume

NEWC Index

ASP

348.7 258.3310.7

278

205 21720.2%

20.6%

30.3%

2015 2016 2017

Sales

Cost ofGoodsSoldGrossProfitMargin

8.4 7.1

15.3

15.4% 15.2%

24.1%

2015 2016 2017

EBITDA/ton

EBITDA Margin

Balance Sheet

Consolidated Balance SheetIn Million US$

Net Debt to EBITDAIn Million US$

Total assets and total liabilities rose similarly mostly due to rise in interest bearing debt from :

Bank Mandiri, for refinancing of Toba’s syndicated loan and investment in construction of Sulbagut-1

power plant where US$ 50.0 mn and 28.1 mn of total proceeds respectively were used during 2017

Citibank, amounting to US$ 4.0 mn, used for ABN’s working capital and general corporate purposes

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

16

348.4Total Assets 261.6 33.2 %

Interest Bearing Debt 98.851.3 25.1 %

Total Liabilities 173.6113.8 52.5 %

Shareholders Equity 174.8147.7 18.3 %

Balance Sheet Dec’ 16 ChangeDec’ 17

Cash and Cash

Equivalents 1) 37.6 98.7 %74.7

13.710.8 11.8

8.2

24.1

39.2

45.1 45.8

64.1

74.8

4Q16 1Q17 2Q17 3Q17 4Q17

Net Debt (Cash) (US$ Mn) Last 12 Month EBITDA

Ratio (x) 0.4 0.2 0.3 0.1 0.3

Note:

(1) Cash and cash equivalents include restricted cash in bank

63%

71% 73%

37% 29%

27%

2015 2016 2017

Traders

End-users

NEWC - Adj.5,600 GAR

ASP

HBA - Adj.5,600 GAR

Marketing Performance

Prior to 2016, spread between NEWC and ASP narrowed due to optimizing marketing initiative to

premium customers in Japan, Korea, Taiwan, and Malaysia at mainly fixed price

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

Throughout 4Q17, spread between NEWC and ASP narrowed due to large portion of sales volume

being fixed during price uptrend in 4Q16, but still not capturing the high prices of November and

December 2016

17

Diversified Export Market Base

18

Export Market Focus FY15 – FY17 2017 Export Market – More ASEAN Driven

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

showed stable demand prospects such as Korea, Taiwan, India. ASEAN markets ie. Thailand, Malaysia,

Philippines, and Vietnam have shown positive traction

Diversification towards countries ex.China remained the highlight for 2017

In 2017 and going forward, ASEAN markets will play more important role in sourcing coal from its

proximate supplier such as Indonesia

25.9%

18.4%

12.4%

12.0%

9.1%

6.5%

4.4%

2.9%

2.5%

1.9%

4.0%

0.0 0.2 0.4 0.6 0.8 1.0

South Korea

Thailand

Malaysia

Taiwan

China

Japan

India

Philippines

Vietnam

Hong Kong

Others

Million Tons

9%

5%

9%

32%

25% 26%

4%

11%

18%

14%

9%

12%13%15%

12%

FY 2015 FY 2016 FY 2017

China Korea Thailand Taiwan Malaysia

19

From 2015 to 2017, sales constribution consistently derived from mainly 5600 GAR products

A mixture of mid-upper quality of 5600 - 5900 GAR still account for TOBA’s largest product

composition

Product Composition (GAR) by % – FY17 Product Composition (GAR) : FY15 – FY17

Product Composition by Quality

23.6%

22.9%

20.7%

15.4%

7.5%

6.5%

3.4%

0.0 0.5 1.0 1.5

5600 HS

4800 & 5000

5200

5600 RS

5800

5900 LS

Others

Million Tons

36%

30%

24%

30%

24%

15%18%

22%

14%

0%

7%

21%

16%17%

26%

2015 2016 2017

5600 HS 5600 RS 5800 & 5900 LS 5200 Others

Sulbagut-1 & Sulut-3 power projects

90%

Mining Business

10%

Snapshot of 2018

Mine Plan Execution

2018 production and SR are projected at similar numbers as in 2017 of 5 - 6 million

tons and 12x - 13x respectively. The Company will also maintain its cash cost at

stable level

Marketing Strategy

The Company plans to continue building 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 2018 is estimated at US$ 90 - 100 million, of which 80% - 90% will be

allocated for the Sulbagut-1 and Sulut-3 power projects, with the balance for the

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

Sourcing of Other Power and Coal Mining Asset

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

opportunities in sourcing potential projects and brownfield assets both for power and

coal mining 20

Operation

Prod Vol (mn ton)

SR (x) 13.1x

5.0

2016

12.9x

5.5

NEWC Coal Price (US$/ton) 88.566.0

12x – 13x

5.0 – 6.0

2018 F

80.0

2017

Forecast CAPEX 2018

21

Performance HighlightsPerformance Highlights2Strategy to Venture into Power3

Integrated

Energy

Company

Business Growth and Sustainability

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(s) 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

Fossil Fuel and

Renewables Power

Present Future Company Initiatives

Coal

Mining

Company

* Independent Power Producer

22

23

Downstream Integration Provides

Transformational Balance

Successfully built TMU from greenfield stage in 2011 to fully operating coal mine

at run-rate of > 1mmtpa

Sulbagut-1 CFPP project (2x50 MW) – successfully achieved financial close on

schedule, one of very few companies able to do so. Expected COD in mid 2020

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

COD in 2021

Experienced partners and EPC in both projects, who are one of the largest power

equipment manufacturing and construction conglomerates in China: (1) Shanghai

Electric Power Construction in Sulbagut-1; (2) Sinohydro in Sulut-3

Measures in place to ensure on-budget project cost and on-time delivery

In-house

Management

Experience

Strong

Partnership

Toba Sejahtra (one of Toba’s shareholders) have successfully built and operated 2

power plants: (1) 117 MW Senipah, gas-fired power plant, COD in 2015; (2) PJPP

Palu, 66 MW CFPP, COD in 2007

Some members of Toba’s Management were involved in above power plant

development and operation, allowing Toba to leverage on their strong experience

in development of existing and potential power projects

Shareholder

Experience

Toba is diversifying into power generation sector. Given its extensive experience in project execution

and key shareholder’s familiarity with power business, it is geared to completing the transformation

24

Project Selection Process

Targeting attractive 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 of knowledge

Have good networking capability with PLN and power stakeholders

Parameters for Project Selection

Parameters for Partner Selection

Toba Group IPP Experiences

25

Sumatra

Kalimantan

Java

Sulawesi

MalaysiaEast Kalimantan

Senipah Power Plant

Central Sulawesi

Palu Power Plant

PLTG Senipah

2x41 MW

PJPP *)

2x15 + 2x18 MW

In operation, COD in 1Q

2015

Combined Cycle System

is under PPA finalization

for additional 35 MW

Total potential supply:

115 MW

2x15 MW, COD in 2007

Expansion of 2x18 MW

reached COD in 2016

Total supply: 66 MW

SULBAGUT-1

2x50 MW

Financial Close: 14

July 2017

Expected COD: mid

2020

*) Divested to private buyer in 4Q 2016

SULUT-3

2x50 MW

In process for

Commencement of

Work

Expected COD: 2021

Sulbagut-1 Projecti

27

Project Location North Gorontalo Regency, Province of Gorontalo, Sulawesi

Developer PT Gorontalo Listrik Perdana

(80% Toba Group, 20% Shanghai Electric Power Construction Co. Ltd)

Capacity 2 x 50 MW (Net); 2 x 60 MW (Gross)

EPC Shanghai Electric Power Construction Co. Ltd

Total Investment US$ 220-225 mn

Total Required Land 60 Ha (100% secured)

Estimated COD Mid 2020

PPA Contract PPA was signed on 14 July 2016 for the period of 25 years

Project Financing Financing agreement was secured on 11 July 2017

Sulbagut-1 Project Summary

Sulbagut-1 has achieved financial close in July 2017 and is currently under construction

Kalimantan Sulawesi

TBS Concessions

Sulbagut-1

Project Overview

28

2017 Snapshot of Sulbagut-1 Project (1 of 2)

Financal Close Reception with

BOD of PT PLN (Persero)

Achievement of Financing Date with

PT PLN (Persero), 14 July 2017

Signing EPC Contract with

Shanghai Electric Power Construction

Signing Financing Agreement with

PT Bank Mandiri (Persero) Tbk

Kick Off Meeting with

Shanghai Electric Power Construction

29

2017 Snapshot of Sulbagut-1 Project (2 of 2)

Soil Investigation Activity Land Clearing Activity

Main Plant Area LandscapeProject Signboard Land Clearing of Access Road

30

Site

Preparation

Construction

Next after Financial Close...

Commercial

Operation Date

(COD)

Commissioning

2017 2018 2019 2020

31

Performance HighlightsPerformance Highlights2 Sulut-3 Projectii

32

Project Location North Minahasa Regency, Province of North Sulawesi, Sulawesi

Developer PT Minahasa Cahaya Lestari

(90% Toba Group, 10% Sinohydro Corporation Limited)

Capacity 2 x 50 MW (Net); 2 x 60 MW (Gross)

EPC Sinohydro Corporation Limited

Total Investment US$ 205-210 mn

Total Required Land 40 Ha (100% secured)

Estimated COD Early 2021

PPA Contract PPA was signed on 7 April 2017 for the period of 25 years

Project Financing Financing agreement expected to be secured by 1Q2019

Sulut-3 Project Summary

Sulut-3 is expected to complete EPC contract by early 2H18 and achieve financial close by 1Q2019

Project Overview

Kalimantan Sulawesi

TBS Concessions

Sulut-3

33

2017 Snapshot of Sulut-3 Project

Land Survey and Topography Investigation for Main Plant Area

Secured Land Signing of PPA on 7 April 2017

34

THANK YOU