1
PT Toba Bara Sejahtra Tbk (“Toba”)
Company Presentation First Quarter 2016
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.
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Table of Contents
2
5
Company Profile
4
1Q16 Operational Highlights
3
1Q16 Marketing Highlights
Guidance for 2016
1
1Q16 Financial Highlights
3
4
Company Profile 1
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
5
Strategic Mine Locations
Muara Berau
Muara Jawa
Makassar Strait
~55 km
(total ~120 km)
Balikpapan
Samarinda
~65 km
Major
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
6
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)
PT Trisensa Mineral Utama (TMU)
20-year Production Operation
Mining Permit (“IUP-OP”) expiring in December 2029
IUP-OP was converted from
Kuasa Pertambangan (“KP”) 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 Roby Budi Prakoso PT Sinergi Sukses Utama
71.8% 0.8% 6.2% 5.1%
PT Toba Bumi Energi (“TBE”)
99.99% (1)
99.99% (1)
3.6%
ABN Minorities
49.0%
51.00% 99.99% (1)
Public
12.5%
Reserve
90.00%
8
9
1Q16 Operational Highlights 2
Realization
1Q 2016
Operational 1Q15
1Q16 Δ%
Production Vol 1.5 1.5 (0.0)%
Sales Vol 1.9 1.4 (26.3)%
Stripping Ratio x 12.4 12.4 (0.0)%
Sales 111.7 63.6 (43.1)%
EBITDA 17.7 11.3 (36.2)%
Net Profit 10.5 5.2 (50.5)%
Financial 1Q15 1Q16
58.8
NEWC Index 50.3 (23.6)% 65.8
ASP 46.8
(20.4)%
mn ton
mn ton
US$/ton
US$/ton
US$ mn
US$ mn
US$ mn
Δ%
EBITDA/ton 9.3 8.3 (10.8)% US$/ton
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
10
2008 2009 2010 2011 2012 2013 2014 2015 2016
ABN IM TMU
Gu
ida
nce
Annual Coal Production Mt : In Million Tons
5.6
6.5
5.0 - 7.0
8.1
Production volume rose from
only 800K tons in 2008 to 6.1
mn tons in 2015, booking
CAGR growth of 33.6% over 8
years
2015 overall results from
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
ABN (Mt)
IM (Mt)
0.1 1.1
0.7 0.9
0.8 2.0 Production Vol.
(Mt)
2010 2011
3.1 3.8
1.0 1.4
4.1 5.2
2012
4.4
1.0
5.6
2013 2014
4.2 4.4
1.4 2.3
6.5 8.1
TMU (Mt)
SR (x)
- -
11.9x 10.5x
- -
9.9x 12.7x
0.2
14.9x
0.9 1.4
13.4x 13.3x
2016E
3.6-5.0
0.5-0.7
5.0-7.0
0.9-1.3
11x-12x 11
2015
6.1
3.9
1.2
1.0
12.3x
6.1
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
05x
10x
15x
20x
0
400
800
1,200
1,600
2,000
2,400
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
TOBA
Production Volume (000) Stripping Ratio
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
Production Volume (000) Stripping Ratio
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
12.0x
0x
5x
10x
15x
0
50
100
150
200
250
300
350
400
450
1Q15 2Q15 3Q15 4Q15 1Q16
IM
Production Volume (000) Stripping Ratio
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
15
213 269 259 247 292
10.4x
9.4x
8.3x 8.3x
10.8x
0x
5x
10x
15x
0
50
100
150
200
250
300
1Q15 2Q15 3Q15 4Q15 1Q16
TMU
Production Volume (000) Stripping Ratio
16
1Q16 Financial Highlights 3
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
60 57 55 55 53 49 49 53 51 50 47 43 41 38 35
63
52
59 56
51 52 51 54
50 51 46
42 41 38
34
14.2x
12.1x
15.1x
13.6x 12.7x 12.7x
13.5x 13.8x
12.5x
13.8x
12.4x 12.5x 12.0x 12.1x 12.4x
0x
3x
6x
9x
12x
15x
18x
21x
0
20
40
60
80
100
3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
FOB cash cost Adj. FOB cash cost SR
13.9 10.6
3.7
(0.0)
0.9
1.1
1Q15 1Q16
TMU
IM
ABN
50.0 35.5
40.0 41.7
40.0 28.0
1Q15 1Q16
TMU
IM
ABN
0.9 1.1
0.4 0.1
0.2 0.3
1Q15 1Q16
TMU
IM
ABN
Operational & Financial Highlights
Production (mn tons)
1.5
0.0%
FOB Cash Cost (US$/ton)
46.6 34.8
25.3%
EBITDA (US$ mn)
17.7 11.3
36.2%
1
2
3
In line with the mine plan,
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
fuel cost
EBITDA declined by 36.2% y-o-y to
US$ 11.3 mn in 2015, yet EBITDA
margin rose from 15.8% to 17.8%
over the same period due to the
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
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1.5
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$
unless otherwise stated 1Q15 1Q16 Changes
Operation
Sales Volume mn ton 1.9 1.4 (26.3)%
Production Volume mn ton 1.5 1.5 0.0%
Stripping Ratio (SR) x 12.4 12.4 0.0%
FOB Cash Cost* US$/ton 46.6 34.8 (25.3)%
NEWC Index Price US$/ton 65.8 50.3 (23.6)%
Average Selling Price (ASP) US$/ton 58.8 46.8 (20.4)%
Financial Performance
Profit (Loss) 1Q15 1Q16 Changes
Sales US$ mn 111.7 63.6 (43.1)%
Cost of Goods Sold US$ mn 91.4 49.3 (46.1)%
Gross Profit US$ mn 20.3 14.3 (29.6)%
Operating Profit US$ mn 15.9 8.3 (47.8)%
EBITDA** US$ mn 17.7 11.3 (36.2)%
Profit for the Period US$ mn 10.5 5.2 (50.5)%
EBITDA/ton US$/ton 9.3 8.3 (10.8)%
Operating Cash Flow US$/ton 7.9 10.7 35.4%
CAPEX US$ mn 2.3 3.4 47.8%
Balance Sheet Dec'15 Mar’16 Changes
Interest Bearing Debt US$ mn 64.0 61.3 (4.2)%
Cash and Cash Equivalents US$ mn 45.5 49.1 7.9%
Net Debt*** US$ mn 18.5 12.2 (34.1)%
Total Assets US$ mn 282.4 282.3 0.0%
Total Liabilities US$ mn 127.3 122.2 (4.0)%
Total Equity US$ mn 155.1 160.2 3.3%
Financial Ratios
Gross Profit Margin % 18.2% 22.5%
EBITDA Margin % 15.8% 17.8%
Operating Profit Margin % 14.2% 13.1%
9.2 8.9
13.3
18.5
12.2
17.7
12.1 12.2 11.7 11.3
0
2
4
6
8
10
12
14
16
18
20
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 61.3 64.0 (4.2)%
Total Liabilities 122.2 127.3 (4.0)%
Shareholders Equity 160.2 155.1 3.3%
Balance Sheet Dec ’151) Changes Mar ‘16
Cash and Cash Equivalent 45.5 7.9% 49.1
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1Q16 Marketing Highlights 4
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
$/t
on
Notes:
- HS is High Sulphur, max 2.0%
- RS is Regular Sulphur, max 1.0%
- LS is Low Sulphur, max 0.6%
Diversified Market Base & Customer Base
Initiatives Undertaken:
Total Sales by Customer Type Sales Destinations by Country
Building well-diversified export destination base and customer base backed by positive demand
prospects and quality customers respectively: In 2015, Korea replaced China as main export
destination, while the customer base consisted of mainly reputable international traders with growing
composition of notable regional end-users, increasing from 3.6% in 2014 to 36.8% in 2015
In 1Q16, end-users composition stabilized at 30.0% level as compared to 39.7% in 1Q15
Maintaining product brand with customers by making good on delivery with specifications ensured
Achieving tighter discount to even premium to Newcastle adjusted reference price 23
27.0%
7.0%
5.7%
22.2%
12.4%
6.7%
4.6%
5.5%
5.0%
4.0%
0.0 0.1 0.2 0.3 0.4
Korea
Taiwan
Malaysia
India
China
Japan
Vietnam
Thailand
Bangladesh
Others
Million Tons
70.0%
30.0%
Traders End-Users
24
Guidance for 2016 5
Snapshot of 2016F
Operation
Prod Vol (mn ton)
SR (x) 12.3x
6.1
2014
13.3x
8.1
NEWC Coal Price (US$/ton) 59.2 70.8
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
2015
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