1
PT Toba Bara Sejahtra Tbk (“Toba”)
Company PresentationApril 2017
PT Toba Bara Sejahtra Tbk (TOBA)
Company PresentationSeptember 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
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
Note:
1. PLN: PT Perusahaan Listrik
Negara (Persero)
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
~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
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% 60.00%
Highland Strategic
Holdings Pte. Ltd.
0.75%
*) Incl. Baring Private Equity
as anchor investor
90.00%
99.60%
Strategic Mine Locations
Toba owns all infrastructures (coal processing plant, overland conveyors, and jetties) giving significant
operating leverage vs other concessions in surrounding areas
Muara Berau
Muara Jawa
Makassar Strait
~55 km
(total ~120 km)
Balikpapan
Samarinda
~65 km
Major
City
Jetty Transhipment
Point
TMU – IM
Hauling Road
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
25 km
7
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 9M17
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
$65-70
0
20
40
60
80
100
120
140
0
1
2
3
4
5
6
7
8
9
10
2010 2011 2012 2013 2014 2015 2016 2017 est.
Toba Consolidated NEWC Price
30.1% 32.9%
5.7%13.9% 13.5% 15.4% 15.2%
Stablemargin
EBITDA Margin
Production Profile
11
Source: Coal price from GlobalCoal
Amidst coal price volatility over the past several years and to sustain the Company’s survival mode, Toba
has undergone cost efficiency initiatives as shown by stable EBITDA margin
Operational Performance
Quarterly Production & SRProduction in Thousand Tons
Production SummaryMT: Million Ton
3Q16 3Q17 Change Comment
Sales Volume
SR (x)
1.2 1.3
12.8 12.6
9.8%
(1.4)%
Sales volume tracked its 3Q17 production volume
SR in 3Q17 was still in line with target
1.4 1.4 Production volume in 3Q17 was still in line with target(0.0)%Production
Volume
Production SummaryMT: Million Tons
Q-o-q production volume has
remained stable and in line with
2017 quarterly guidance of 1.25 -
1.50 mn tons
3Q17 SR stabilized at 12.6x, on
track of achieving annual SR
guidance of 12x - 13x
Higher SR in 2Q17 impacted by wet
weather
12
12.8x 12.6x 13.7x 14.3x12.6x 12.0x - 13.0x
3Q16 4Q16 1Q17 2Q17 3Q17 QuarterlyGuidance
TMU IM ABN SR (Consolidated)
1.41.2
1.41.25 - 1.501.4
1.1
Realization
Consolidated 9M 2017
“Sustainability & Resilience”
Focused on profitable production output
through optimization of :
• Infrastructure and connectivity sharing
(hauling road and coal processing plant)
• Joint mine plan
• Coal sale pricing driven by relationship.
consistency in scheduled delivery and
product quality
• Well-diversified market destinations
and customer base
Note:
(1) EBITDA = Gross Profit – selling expenses – G&A + depreciation and amortization13
Operational 9M16 9M17 Δ%
Production Vol 4.2 3.7 (11.9)%
Sales Vol 4.3 3.5 (18.6)%
Stripping Ratio 13.0 13.5 3.8 %
Sales 192.1 211.3 10.0 %
EBITDA 27.0 51.9 92.2 %
Net Profit 9.7 29.0 199.0 %
Financial 9M16 9M17
44.8
NEWC Index 85.2 51.1 %56.4
ASP 59.2 32.1 %
mn ton
mn ton
x
US$/ton
US$/ton
US$ mn
US$ mn
US$ mn
Δ%
EBITDA/Ton 6.3 14.7 133.3 %US$/ton
14.1%EBITDA Margin 24.6%
Gross Profit Margin 29.9%19.2%
Financial Ratios 9M16 9M17
Evolution of FOB Cash Cost
Quarterly FOB Cash Cost
In US$/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 cost
Despite fluctuation in NEWC price, TOBA has maintained relatively stable SR and cash cost
through proper mine planning and cost management initiatives
Although cash cost rose 17.1% from 2Q16 to 3Q17, coal price increased much higher by 83.3%
over same period. This reflects much higher ASP expansion than cash cost rise itself
14
51 50 47 43 41 38 35 35 35 34 37 40 41
50 51 46
42 41 38
34 35 35 34 37
42 41
68.4 63.8 65.8
59.6 59.0 52.6 50.3 51.5
67.3
94.7 81.5 79.7 94.5
12.5x
13.8x
12.4x 12.5x12.0x 12.1x
12.5x
13.8x
12.8x 12.6x
13.7x 14.3x
12.6x
0x
3x
6x
9x
12x
15x
0
20
40
60
80
100
120
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
FOB cash cost Adj. FOB cash cost NEWC SR
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$/ton and %)
Increase in ASP per ton directly filters through
higher gross profit margin and EBITDA margin
ASP Positively Impacts Margins
4.8 4.3
3.561.4 56.4
85.2
55.9
44.8
59.2
9M15 9M16 9M17
SalesVolume
NEWC Index
ASP
268.6
192.1
211.3
217.0
155.3
148.0
19.2% 19.2%
29.9%
9M15 9M16 9M17
Sales
Cost of GoodsSold
Gross ProfitMargin
8.86.3
14.7
15.6%14.1%
24.6%
9M15 9M16 9M17
EBITDA/ton
EBITDA Margin
Balance Sheet
Consolidated Balance SheetIn Thousand US$
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 syndicated loan, investment and corporate purposes where US$ 40
mn of total proceeds was used by June 2017
Citibank, amounting to US$ 4 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
23.3
13.710.8 11.8
21.6
38.8 39.2
45.1 45.8
64.1
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
3Q16 4Q16 1Q17 2Q17 3Q17
Net Debt (Cash) (US$ Mn) Last 12 Month EBITDA
Ratio (x) 0.6 0.4 0.2 0.3 0.3
297.1Total Assets 261.6 13.6 %
Interest Bearing Debt 64.251.3 25.1 %
Total Liabilities 135.5113.8 19.1 %
Shareholders Equity 161.6147.7 9.4 %
Balance Sheet Dec’ 16 ChangeSep’ 17
Cash and Cash Equivalent 37.6 13.3 %42.6
NEWC - Adj.5,600 GAR
ASP
HBA - Adj.5,600 GAR
63%
71%75%
37%
29%25%
2015 2016 9M17
Traders
End-users
Marketing Performance
Prior to 2016, 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
Throughout 9M17, spread between NEWC and ASP narrowed due to large portion of sales volume
being fixed during price uptrend in 3Q17 and not capturing the high of 4Q16
17
Diversified Export Market Base
18
Export Market Focus 9M15 – 9M17 9M17 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, Taiwan, India. ASEAN markets ie. Thailand, Malaysia, and
Vietnam have shown positive traction
Diversification towards countries ex.China remained highlight for 2017
In 9M17 and going forward, ASEAN markets will play more important role in sourcing coal from its
proximate supplier ie. Indonesia
10%
5%
8%
34%
25%
29%
3%
13%
20%
13%
8%
12%12% 12%13%
9M15 9M16 9M17
China Korea Thailand Taiwan Malaysia
28.7%
19.7%
13.5%
11.7%
8.3%
4.4%
3.8%
3.0%
2.6%
2.5%
1.8%
0.0 0.2 0.4 0.6 0.8 1.0
South Korea
Thailand
Malaysia
Taiwan
China
Japan
India
Vietnam
Hong Kong
Philippines
Others
Million Tons
19
From 9M15 to 9M17, 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 % - 9M17 Product Composition (GAR) : 9M15 – 9M17
Product Composition by Quality
24.9%
22.9%
21.5%
15.8%
7.9%
4.4%
2.6%
0.0 0.2 0.4 0.6 0.8 1.0
5600 HS
4800 & 5000
5200
5600 RS
5800
5900 LS
Others
Million Tons
37%
29%
25%
36%
25%
16%
12%
24%
12%
0%
4%
22%
15%18%
25%
9M15 9M16 9M17
5600 HS 5600 RS 5800 & 5900 LS 5200 Others
Power32%
Building, Infrastructure, Heavy Equip
56%
Exploration12%
Snapshot of 2017F
Mine Plan Execution
2017 production and SR are targeted similar to those in 2016 of 5 - 6 million tons and
12.0x – 13.0x 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 consolidated CAPEX for 2017 is estimated at US$ 55 - 60 million, of which 75% -
80% 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
assets20
Operation
Prod Vol (mn ton)
SR (x) 12.9x
5.5
2015
12.3x
6.1
NEWC Coal Price (US$/ton) 66.059.2
12.0x - 13.0x
5.0 - 6.0
2017 F
65 - 70
2016
Realized CAPEX 9M17
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
24
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
25
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
27
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
28
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
29
2017 2020
Site
Preparation
2018 2019
Construction
Next after Financial Close...
Commercial
Operation
Date (COD)
Commissioning
Sulut-3 Projectii
31
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
32
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