Company Presentation 1Q16

1

PT Toba Bara Sejahtra Tbk (

䇾

Toba

䇿

)

Disclaimer

These materials have been prepared by PT Toba Bara Sejahtra (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.

Table of Contents

2

5

Company Profile

4

1Q16 Operational Highlights

3

1Q16 Marketing Highlights

Guidance for 2016

1

1Q16 Financial Highlights

4

Company Profile

 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 (CV) of 4,700-5,800 kcal/kg GAR

 Strong production growth profile, registering ~34% CAGR between 2008 and 2015. Produced 6.5 MM tons in 2013 and grew ~25% to 8.1 MM tons in 2014

 Prime location near Capital of East Kalimantan

and proximity to waterways provides

operational cost edge to grow as logistical & operational center for the area

Strong Growth

Profile

Toba specializes in thermal coal production and comprises of three mining subsidiaries: Adimitra

Baratama Nusantara (ABN), Indomining (IM) and Trisensa Mineral Utama (TMU)

Toba Bara Sejahtra in Brief

Diversified Thermal Coal

Reserves and Resources

Strategic Mine Locations

Muara Berau

Muara Jawa Makassar Strait

~55 km

City Jetty 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

TMU

IM

ABN

TMU

Underpass Infrastructure

Loading Speed of 1,800 TPH High Built CPP Cap

up to 10 Mn TPA Short Coal Hauling

Distance < 5km

~16 km Hauling Road to Connect with ABN

Mine Ops Commenced at Block 4

CPP Capacity (cap) Ramped Up to 6 Mn Tons/Annum (TPA)

IM Conveyor for TMU usage &

Others

Short Coal Hauling Distance ~4km

Infrastructure & Operational Capabilities

Toba’s Concessions

Integrated CPP and

Jetty Ops with IM 7

Note: PT Adimitra Baratama Nusantara (ABN) PT Indomining (IM)

 20-year Production Operation Mining Permit (䇾IUP-OP䇿)

expiring in December 2029  IUP-OP was converted from

Kuasa Pertambangan (䇾KP䇿) in

2009

 IUP-OP expires in June 2013  IUP-OP was converted from KP

in 2010

 IUP-OP extension was

completed in March 2013 (First out of 2 extensions: in 2023, with tenor of 10 years each)

 13-year IUP-OP expires in December 2023

 IUP-OP was converted from a KP in 2010

 Plantation permit of PT Perkebunan Kaltim Utama I (PKU) expires in 2036

 2,990 ha  683 ha  3,414 ha  8,633 ha (Right to Use Land)

 Reserves: 117 MT- JORC  Resources: 156 MT- JORC

 Reserve: 22 MT- JORC  Resources: 37 MT- JORC

 Reserves : 8 MT - JORC

 Resources: 43 MT- JORC  Planted Area: 2,896 ha

Ownership Structure

Note:

1. Figures are rounded off

License

Area

Davit Togar Pandjaitan _{PT Bara Makmur Abadi}

PT Toba Sejahtra PT Sinergi Sukses Utama Roby Budi Prakoso

71.8% 0.8% 6.2% 5.1%

PT Toba Bumi Energi (䇾TBE䇿)

99.99% (1)

99.99% (1)

3.6%

9

1Q16 Operational Highlights

Realization

Focused on profitable production output

through optimization of :

 Infrastructure and connectivity sharing

(hauling road, coal processing plants (CPP), & jetties)

 Joint mine plan between three adjacent operating mines

 Competitive & premium coal pricing driven by strong coal branding from

consistency in scheduled delivery/product quality and established customer

relationship with diversified customer base

 Average Selling Price (ASP)

outperformance relative to benchmark Newcastle due to sale executions based on well-timed predictions in market trends

Note:

(1) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization

2008 2009 2010 2011 2012 2013 2014 2015 2016

Annual Coal Production

Mt : In Million Tons

subsidiaries came in line with 2015 annual guidance

 With strategy to sustain

certain margin, while

preserving life-of-mine (LoM)

reserves, 2016 production

guidance is estimated at 5.0-7.0 mn tons

 2016 Stripping Ratio (SR) is

expected to stabilize at

11x-12x, as per the mine plan

Cumulative production achievement >10 Mt

Cumulative production achievement >20 Mt 5.2

4.1

0.8

2.0

2016 Production Guidance

2008 2009 Production Vol.

1Q16 Operational Performance

Quarterly Production & SR

Production in Thousand Tons

Production Summary

MT: Million Ton

1Q15 1Q16 Change Comment

Sales Volume

SR (x)

1.9 1.4

12.4 12.4

(26.3)%

(0.0)%

1Q16 sales volume tracked its 1Q16 production volume

SR stabilized in line with mine plan

1.5 1.5

Production volume in 1Q16 stabilized at 1.5 mn tons in line with mine plan, while ensuring certain margin and optimizing reserve preservation

(0.0)% Production

Volume

Production Summary

MT: Million Tons

 Q-o-q production volume of 1.5 mn tons in 1Q16 came in line with 2016 quarterly guidance of 1.25 -1.75 mn tons

 1Q16 SR stabilized at 12x level, in line with annual and quarterly SR guidance of 11x - 12x

 Quarterly SR of 12.4x in 1Q16 remained the same as that in 1Q15

12 1,911 2,160 2,330 1,653 1,505 1,469 1,565 1,529 1,503

13.5x 13.8x _12.5x 13.8x

12.4x 12.5x 12.0x 12.1x 12.4x

00x

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 TOBA

ABN Operational Performance

ABN

TMU

IM

PT Kutai Energi

Quarterly Production & SR

Production in Thousand Tons

Key Highlights

 1Q16 quarterly production increased y-o-y and q-o-q from 4Q15 and 1Q15 respectively, both in line with

internal guidance

 SR in 1Q16 stabilized at 12.9x level from 4Q15, and edged down from 13.1x in 1Q15

13 904 969 987 994 1,071 13.1x 13.3x 13.0x _12.6x 12.9x

0x 5x 10x 15x 20x

0 200 400 600 800 1,000 1,200

1Q15 2Q15 3Q15 4Q15 1Q16

ABN

IM Operational Performance

TMU

ABN

PT Kutai Energi

Quarterly Production & SR

Production in Thousand Tons

Key Highlights

 Production decrease to 140K tons in 1Q16 came in line with 2016 internal quarterly guidance of 125K - 175K tons

 SR in 1Q16 stabilized y-o-y from 1Q15 at 12.0x

14 388 231 319 288 140

12.0x 12.7x 12.2x

13.6x

1Q15 2Q15 3Q15 4Q15 1Q16

IM

TMU Operational Performance

ABN IM

PT Kutai Energi

Note:

- - -

Hauling road

Key Highlights

Quarterly Production & SR

Production in Thousand Tons

 1Q16 production volume came in at 292K tons, in line with 2016 internal quarterly production guidance of 225K-325K tons

 1Q16 SR on q-o-q and y-o-y basis edged up to 10.8x from 8.3x in 4Q15 and 10.4x in 1Q15

1Q15 2Q15 3Q15 4Q15 1Q16

TMU

16

1Q16 Financial Highlights

Evolution of Quarterly FOB Cash Cost from 3Q12-1Q16

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 deferred exploration & development costs and excluding deferred stripping cost

Constant convergence between FOB cash cost and adjusted FOB cash cost underline

normalization of SR over quarterly period resulting from more efficient mine operations

17

12.7x 12.7x 13.5x

13.8x

12.5x

13.8x

12.4x 12.5x _{12.0x 12.1x} 12.4x

0x

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

13.9

Operational & Financial Highlights

Production (mn tons)

1.5

0.0%

FOB Cash Cost (US$/ton)

46.6 34.8

production volume stabilized y-o-y at 1.5 mn tons in 1Q16.

FOB cash cost fell by 25.3% y-o-y,

resulting from continuous cost

management initiatives, better

execution of mine plan, and lower same reasons above

Notes:

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

(2) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization

18

Financial Performance

Notes: (1) FOB Cash Cost = COGS including royalty and selling expense – depreciation and amortization (2) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization

23.6% weaker y-o-y NEWC Index price caused decline in ASP at lower pace of 20.4% due to marketing initiative of predicting market downtrend and securing contracts at fixed price

Financial position remains solid as cash preservation is maintained with cash and cash equivalents at US$ 49.1 million as at 31st _{of March 2016}

Stabilization of annual SR to 11x-12x level is shown as 1Q16 SR remained the same as that in 1Q15

19

Gross profit margin, and EBITDA

margin each rose y-o-y to 1Q16

resulting from better operational

performance, disciplined cost

management initiatives, and effective marketing strategy

Financial and Operational Highlights

All figures are in million US$

9.2 _8.9

1Q15 2Q15 3Q15 4Q15 1Q16

Net Debt (Cash) (US$ Mn) EBITDA (US$ Mn)

Ratio(x) 0.5 0.7 1.1 1.6 1.1

Balance Sheet

Consolidated Balance Sheet

In Million US$

Net Debt to EBITDA2)

In Million US$

 Total assets stabilized at US$ 282.3 mn at end-March 2016 from US$ 282.4 mn as per end 2015, while total liabilities dropped by 4.0% to US$ 122.2 mn over the same period

 Total equity value increased 3.3% to US$ 160.2 mn from US$ 155.1 mn, attributable to additional profit for the period

 Net Debt to EBITDA ratio has constantly recorded stability from quarter to quarter at way below 2x

Note:

(1) Restated due to compliance on PSAK 24R implementation

(2) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization

20

282.3

Total Assets 282.4 0.0%

Interest Bearing Debt 64.0 61.3 (4.2)%

Total Liabilities 127.3 122.2 (4.0)%

Shareholders Equity 155.1 160.2 3.3%

Balance Sheet Dec ’151) _Mar ‘_{16 Changes}

21

1Q16 Marketing Highlights

3.0%

10.6%

32.2%

32.8%

13.9%

7.0%

0.6%

0.0 0.1 0.2 0.3 0.4 0.5

4800

5000

5600 HS

5600 RS

5800

5900 LS

Others

Million Tons

Optimizing Selling Price & Product Quality

Covergence of NEWC Index & ASP (in US$/ton) Sales by Product Mainly Contributed by 5600 (GAR)

 Average NEWC Index declined by 23.6% from US$ 65.8/ton in 1Q15 to US$ 50.3/ton in 1Q16, while ASP contracted less by 20.4% from US$ 58.8/ton to US$ 46.8/ton over the same period

 at ~65.0%, the 5,600 GAR products account for the largest portion of 1Q16 total sales volume

 As of 1Q16, ~60.0% of 2016 sales volume target has been secured mostly at fixed price

22

US$/

ton

Notes:

- HS is High Sulphur, max 2.0%

- RS is Regular Sulphur, max 1.0%

Diversified Market Base & Customer Base

Initiatives Undertaken:

Total Sales by Customer Type Sales Destinations by Country

 Building well-diversified export destination base and customer base backed by positive demand

prospects and quality customers respectively: In 2015, Korea replaced China as main export

destination, while the customer base consisted of mainly reputable international traders with growing composition of notable regional end-users, increasing from 3.6% in 2014 to 36.8% in 2015

 In 1Q16, end-users composition stabilized at 30.0% level as compared to 39.7% in 1Q15

 Maintaining product brand with customers by making good on delivery with specifications ensured

 Achieving tighter discount to even premium to Newcastle adjusted reference price 23

27.0%

Million Tons

70.0% 30.0%

24

Guidance for 2016

Snapshot of 2016F

Operation

Prod Vol (mn ton)

SR (x) 12.3x

6.1

2014

13.3x 8.1

NEWC Coal Price (US$/ton) 70.8 59.2

 Objective is to execute disciplined mine plan that generates certain margin without compromising long term reserves

 Post 17.7% and 25.3% y-o-y FOB cash cost reductions in 2015 and 1Q16 respectively, joint mine plan

and infrastructure sharing are to be better streamlined among 3 operating subsidiaries, with initiatives to lower costs throughout value chain from mining to logistics costs

 Marketing is to focus on better diversification of export destination base and customer base (ideal mix between traders and end-users) and maintaining product branding

 2016 CAPEX is estimated at US$ 5 - 8 mn to support mainly mining facilities and equipment, and to

lesser extent, plantation operation of PKU. Currently, PKU is in final stage of constructing palm oil mill with capacity of 30 fresh fruit bunch (FFB) / hour to be completed by first semester 2016

 To maintain sustainable business growth by having more stable revenue stream, Toba is currently

evaluating prospects of undergoing downstream integration in energy-related sector

25

11x - 12x 5 - 7

2016 F

50 - 55