Company Presentation 1Q 2015 TBS CP 1Q15

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.

Table of Contents

2

5

Company Profile

4

1Q15 Operational Highlights

3

1Q15 Marketing Highlights

Guidance for 2015

1

4

Toba’s 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 is less than 50 km

Adjacent locations for all

3 mines

Close proximity transhipment

point & jetty Furthest pit to jetty 25 km, with closest

one ~5 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

Coal calorific values : mid to upper

Loading Speed of 1,800 TPH High Built CPP Cap

10 Mn TPA Hauling Road to IM

Mine Ops Commenced at Block 4

Short Coal Hauling Distance < 5km

CPP Ramp Up to 6Mn Tons/Annum (TPA)

Conveyor for TMU & Others

Short Coal Hauling Distance 4km ABN

TMU

Infrastructure & Operational Capabilities

INDOMINING

Integrate CPP Ops with IM

 20-year Production Operation Mining Permit (䇾IUPOP䇿) expiring in December 2029

 IUPOP was converted from

Kuasa Pertambangan (䇾KP䇿) in 2009

 IUPOP expires in June 2013

 IUPOP was converted from KP

in 2010

 IUPOP extension was

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

 13-year IUPOP expires in

December 2023

 IUPOP was converted from a

KP in 2010

 Plantation permit 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: 37MT- JORC

 Reserves : 8 MT - JORC and

additional 7 MT of internal estimate

 Resources: 43 MT- JORC

 Planted Area: 2,896 ha

Ownership Structure

Notes:

1. Son of TS founder, Luhut B. Pandjaitan 2. Figures are rounded off

License

Area

Davit Togar Pandjaitan (1) _{PT Bara Makmur Abadi}

PT Toba Sejahtra (䇾TS䇿) PT Sinergi Sukses Utama Roby Budi Prakoso

71.8% 0.8% 6.2% 5.1%

PT Toba Bumi Energi (䇾TBE䇿)

99.99% (2)

99.99% (2)

3.6%

ABN Minorities

Majority Shareholder

 PT Toba Bara Sejahtra Tbk

 PT Kutai Energi

 PT Pusaka Jaya

Palu Power

 PT Kartanegara

Energi Perkasa

Toba believes it benefits from Toba Sejahtra’s experience in the Indonesian coal sector as well as its

leadership and experience

Controlling Shareholder with Established Track Record… Helmed by an Experienced Leader

 General (Ret.) Luhut B. Pandjaitan is the key

shareholder and founder of Toba Sejahtra Group. He is currently the chairman of TS

 Mr. Luhut had a long and illustrious career in

the civic service before turning to the commercial sector. Over the course of thirty years in the Army Special Forces, Mr. Luhut rose to become a four-star general

 In 1999, Mr. Luhut retired from the military service to serve as

Ambassador for the Republic of Indonesia to Singapore

 In 2000, he was appointed Minister of Industry and Trade of the

Republic of Indonesia

 Thereafter, Mr. Luhut applied his knowledge and leadership

skills to establish TS in 2004, building it from the ground up into a major business group with interests in energy oil and gas, power and agribusiness

 PT Tritunggal

Sentra Buana (Palm Oil)

Established in 2004, PT Toba Sejahtra (TS) is a fast growing Indonesian enterprise with industries, ranging from Energy Sector such as Natural Resources, Power, and Agriculture (Palm Oil) to Property

9

1Q15 Realization

2015

“Sustainability & Resilience”

Operational 1Q14 1Q15 Δ_% 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

• Competitive price-fixing relative to benchmark Newcastle adjusted price

Note:

2008 2009 2010 2011 2012 2013 2014 2015e

ABN IM TMU

G

uidan

ce

Yearly Coal Production

Mt : In Million Tons

5.6

6.5

6.0 – 8.0 8.1

 Production volume rose significantly from only 800K tons in 2008 to 8.1 mn tons in 2014, booking CAGR growth of 47.1% over 6 years

 2014 production volume of 8.1 mn tons exceeded 2013 volume by 24.6% and 2014 internal target of 7.2-7.8 mn tons

 To preserve profitable margin and coal reserves, 2015 production target expected at 6.0-8.0 mn tons

 Stripping Ratio (SR) expected to stabilize at 11x – 12x in 2015 from 13.3 in 2014

 1Q15 results from subsidiaries came in line with 2015 quarterly guidance

Cumulative production achievement >10 Mt

Cumulative production achievement >20 Mt

5.2 4.1

0.8

2.0

2015 Production Target

2008 2009

1Q15 Operational Performance

Quarterly Production & Stripping Ratio (SR)

Production in Thousand Tons

Production Summary

MT: Million Ton

1Q14 1Q15 Change Comment

Sales Volume (mt)

Sales volume stabilized at 1.9 mn tons

SR continued to fall resulting in lower mining cost

1.9 1.5 Production volume decreased y-o-y to 1Q15 to

ensure profitable margin

(21.1)% Production

Volume (mt)

Production Summary

MT: Million Ton

 1Q15 production came in line with 2015 quarterly guidance of 1.5-2.0 mn tons

 To anticipate potentially weaker coal prices in 2015, the relatively higher SR in 4Q14 stemmed from higher pre-stripping activities to allow for better coal extraction in subsequent periods.

 In line with internal SR guidance, 1Q15 SR decreased to 12.4x vs 13.8 in 4Q14 and 13.5x in 1Q14

1.298 1.501 1.802 1.950 1.911 2.160 2.330 1.653 1.505

15,1x

13,6x _{12,7x 12,7x} 13,5x 13,8x

12,5x 13,8x 12,4x

0,0x

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

ABN Operational Performance

ABN

TMU

IM

PT Kutai Energi

Quarterly Production & Stripping Ratio

Production in Thousand Tons

Key Highlights

Dump

Dist. (m) 1,894 1,842 1,853 2,111 2,153

 Q-o-q production declined 9.9% to 0.9 mn tons in 1Q15 but in line with 2015 internal guidance

 4Q14 SR rose from previous quarters due to relatively high pre-stripping to anticipate better coal extraction during continued weak coal prices in 2015

 SR decreased y-o-y by 7.1% to 13.1x in 1Q15

1Q14 2Q14 3Q14 4Q14 1Q15

IM Operational Performance

TMU

ABN

PT Kutai Energi

Quarterly Production & Stripping Ratio

Production in Thousand Tons

Key Highlights

 Although 1Q15 production volume fell y-o-y to 1Q15, it came in line with 2015 quarterly internal guidance of 200K – 300K tons

 SR decreased significantly from 13.7x in 1Q14 and from 13.3x in 4Q14 to 12.0x in 1Q15

Dump

Dist. (m) 1,904 1,751 1,957 1,831 2,255

547 570 700 493 388

13,7x

12,8x 13,3x 13,3x

12,0x

1Q14 2Q14 3Q14 4Q14 1Q15

TMU Operational Performance

ABN IM

PT Kutai Energi

Note:

- - -

Hauling road

Key Highlights

Quarterly Production & Stripping Ratio

Production in Thousand Tons

 1Q15 production volume came in line with 2015 internal production guidance

 SR declined 8.8% and 19.4% from 11.4x in 1Q14 to 10.4x in 1Q15 and from 12.9x in 4Q14 to 10.4x in 1Q15 respectively

362 379 400 231 213

11,4x 11,7x 11,7x

12,9x

1Q14 2Q14 3Q14 4Q14 1Q15

16

Evolution of FOB Cash Cost from 1Q12-1Q15

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 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

67 69 60 57 55 55 53 49 49 53 51 50 47

12,7x 12,7x 13,5x 13,8x _12,5x 13,8x _12,4x

0x

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

15,8 _13,9

Operational & Financial Highlights

Production (in mt)

1.9 1.5

21.1%

Avg. Cash Cost (in US$/ton)

48.9 46.6

Production volume decreased 21.1% y-o-y to 1.5 mn tons in

1Q15, while sales volume

remained stable at 1.9 mn tons over the same period

FOB cash cost fell by 4.7% y-o-y, resulting from lowered overall SR by 8.1% y-o-y from 13.5x in 1Q14 to 12.4x in 1Q15

EBITDA declined by 16.1% y-o-y to US$ 17.7 mn in 2014

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

Financial and Operational Highlights

All figures are in million US$

unless otherwise stated 1Q14 1Q15 Changes 4Q14 1Q15 Changes

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

Despite weaker NEWC Index price by 15.7%, ASP declined by only 6.5%. With flat sales volume, sales decreased 8.4% y-o-y to US$ 111.7 mn in 1Q15

Positive cash and cash

equivalents increased by 1.5% y-o-y due to efforts in maintaining healthy cash flows despite

unfavorable coal market

conditions

Balance Sheet

Consolidated Balance Sheet In Thousand US$

Net Debt to EBITDA In Million US$

 Total assets decreased 3.0% to US$ 291.7 mn in 1Q15 from US$ 300.6 mn as per end 2014

 Over same period, total liabilities declined 6.1% to US$ 148.6 mn

 Total equity in 1Q15 increased 0.5% to US$ 143.1 mn from US$ 142.4 mn, attributable to additional income for the period

Note:

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

-17,0

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15

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

21

1Q15 Marketing Performance

NEWC Index & ASP (in US$/ton) Product Contribution (GAR)

 Average NEWC Index declined by 15.7% from US$ 78.1/ton 1Q14 to US$ 65.8/ton in 1Q15, while ASP declined by 6.5% from US$ 62.9/ton to US$ 58.8/ton

 Total sales were mainly contributed by ~5,600 GAR products 98,5

2010 2011 2012 2013 2014 1Q15

NEWC ASP

Million Tons

14.5%

28.6%

50.9%

3.9%

1Q15 Marketing & Sales

–

Quality & Diversified Buyers

Initiatives Undertaken:

Major Customers Export Destinations by Country

 Maintaining well-diversified customer base consisting of mainly reputable international traders, while also growing the number of end-users

 Generating good quality sales backed by quality buyers and favorable terms of payment

 Achieved tighter discount rate to reference market price

24

50

Target & Strategy

1

2

“Sustainability & Resilience”

3

2015 Strategy

Focus on maintaining certain

profitability level during uncertain times

Increase reserve through inorganic growth (M&A)

Diversify into downstream industries

NEWC Index (2011 – 2015)

Apr ‘13 US$87/ton

Apr ‘12 US$103/ton

• Coal Market has been under pressure for the past three years. In April 2015, NEWC Index reached US$59/ton or 43% lower compared to the high US$103/ton in April 2012

Marketing Plan & Strategy

1

2

Secure good quality sales backed by quality buyers and favorable terms of _payment

3

Achieve ASP based on tighter discount rate to reference market price

Operational & Financial Snapshot 2015F vs 2014

Operation

Prod Vol (mt)

Sales Vol (mt)

SR (x) _{11x - 12x}

6 - 8 6 - 8

2015 F 2014

13.3x

7.9 8.1

NEWC Coal Price _{62 - 65 70.8}

• SR expected to be lowered to ~11x level. SR reduction expected to come mainly from IM & TMU

2015 CAPEX

In 2015, Toba is planning to realize CAPEX of US$ 10 – 14 mn

US$ mn

Salient Points

1 - 2

2 - 3

4 - 5

4 - 5

0 2 4 6 8 10 12 14 16

Conveyor Land Comp. Building Road & Bridges Total CAPEX 2015 14

• Toba’s 2015 CAPEX supports its on-going sustainability program strategy amidst cutbacks among major industry producers

Long Term: Create Downstream Synergy through Power

Sector Backed by Continuous Reserve

Build sustainable cash-flow Increase margin

Short - Medium Term

Medium - Long Term

VERTICAL DIVERSIFICATION

Continuous increase in coal reserve via concession acquisition

Protect and maximize margin in prolonged weak & volatile coal market

Focus on continuous improvement in cost efficiency

Generate higher portion of durable cash-flow, improving margin over time

 Run executable mine plan focusing on profitable production growth

 Deploy hedging (coal & fuel price)

 Source cheaper substitute energy to replace diesel fuel

Commercially-viable

 Develop and operate coal-fired power plant, optimizing supply for domestic consumption