Bayan s Transformation

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2 Bayan s Transformation % Change Financial Performance Revenue (in million USD) , % Gross Profit (in million USD) % EBITDA (in million USD) % Net Profit After Tax (in million USD) % Financial Ratios Gross Profit Margin (%) 37.9% 51.9% 37% EBITDA Margin (%) 30.0% 45.4% 51% Net Profit Margin (%) 3.2% 31.7% 876% Net Debt to EBITDA (x) (97%) Operational Statistics Overburden Removal (MBC M) % Strip Ratio (x) % Coal Produc tion (Million Tones) % Sales Volume (Million Tones) % 1

3 One of the Quickest Growing Coal Producers 2017 Production MT Bayan is currently in the top ten coal producers in Indonesia with a view to moving into the top 3 within the next few years. 0 Bumi Adaro Indika PTBA ITMG Bayan Golden Energy Source: Company Filings, Company Data CAGR (Production) Golden Energy Bayan PTBA Bumi Adaro Indika ITMG (2.7) (7.4) (8.8) 2017 completed the initial phase of infrastructure to allow Bayan to continue to be one of the quickest growing producers. Source: Company Fillings. Company Data 2

4 Total Cash Cost (US$/t Nominal) One of the Lowest Cost Producers in Indonesia 2017 EBITDA Margin (%) Source: Company Filings, Company Data Source: Company Filings, Company Data Bayan Adaro PTBA Indika ITMG Golden Energy 2017 EBITDA (Million USD) 1,400 1,200 1, , Adaro Indika PTBA Bayan ITMG Golden Energy Global Cost Competitive Positioning Source: Wood Mackenzie, Company Data 2017 Strip Ratio Competitors (x) Seaborne Export Supply (MT) RoW Indonesia Australia Bayan Tabang PTBA Golden Energy Source: Company Filings, Company Data Bayan Adaro Kideco Bumi ITMG 3

5 Deleveraged the Group Net Debt / EBITDA x x x 5 2.6x 0.1x EBITDA / Net Interest Expense x x 16 Management prudently utilised the significantly improved financial performance to deleverage the Group. The Group now has the financial strength to continue with the next phase of expansion of Tabang. Targeted leverage of less than 2x EBITDA throughout the commodity cycle x 2.7x 3.7x

6 Low Cost Incremental Growth Capex Intensity by Country (1) Tabang Capacity Growth Able to continue expansion using existing infrastructure whilst building for the next phase is completed Today Upside Unlocking tangible capacity upside at ~US$10/ton discretionary growth Capex New coal haul road and barge loading facility targeted to the constructed and brought into operations in 2021 which will double existing capacity. Budgeted capex in the region of USD 255 in the next three years Source: Wood Mackenzie Notes (1) Based on 2012 real dollars (2) US$255m Capex divided by an incremental 25+ Mtpa production / sales capacity 5

7 4Q 2017 Overburden Removal Coal Production Weighted Average Strip Ratio Average Cash Costs Coal Sales Average Selling Price Committed & Contracted Sales EBITDA Net Debt and Cash Position Capital Expenditure 6

8 Overburden Removal (OB) (million BCM) Q16 4Q17B 4Q17 Note : B stands for Budget Figure 4Q17 OB was 27.3 million BCM which was slightly higher than 3Q17 levels despite being significantly impacted by high rain levels, especially at Tabang. Considerably above the Budget as the Group pushed to meet stretch targets. (in million BCM) 4Q17B 4Q17 Teguh Sinar Abadi / Firman Ketaun Perkasa Perkasa Inakakerta Tabang Concessions Gunung Bayan Wahana Baratama Mining Total Q17 Overburden removal and 2017 significantly above Budget 7

9 Coal Production (million MT) 4Q17 coal production of 6.1 million 4.5 MT was lower than 3Q17 production due to very high rain 3.0 levels which significantly impacted Tabang s operations. 4Q16 4Q17B 4Q17 Note : B stands for Budget Figure 4Q17 coal production of 6.1 million MT was higher than the Budget due to all sites pushing to reach the stretch targets. (in million MT) 4Q17B 4Q17 Teguh Sinar Abadi/ Firman Ketaun Perkasa Perkasa Inakakerta Tabang Concessions Gunung Bayan Wahana Baratama Mining Total coal production of 20.1 million MT exceeded Budget by 18% 8

10 Weighted Average Stripping Ratio (SR) Q17 weighted average stripping ratio of 4.5:1 was higher than 3Q17 and above the Budget mainly due to WBM operating in a higher SR area and TSA/FKP operates at a higher SR due to geotechnical issue Q16 4Q17B 4Q17 Note : B stands for Budget Figure Weighted Average SR (:1) 4Q17B 4Q17 Teguh Sinar Abadi / Firman Ketaun Perkasa Perkasa Inakakerta Tabang Concessions Gunung Bayan Wahana Baratama Mining Total However the years average of 4.1:1 was one of the lowest compared to our competitors. Low stripping ratio when compared to our competitors 9

11 Average Cash Costs Q2017 Cash Costs were US$ 32.1/MT, which was slightly higher than the 3Q2017 and the Budget mainly due to: Higher royalty due to higher ASP as coal prices remained strong Q16 4Q17B 4Q17 Average Cash Costs include Royalty, Barging and SGA Note : B stands for Budget Figure Increasing fuel prices cash cost of USD 29.0 remained below Budget 10

12 Coal Sales (by volume) Indonesia 14% (million MT) Q16 4Q17B 4Q17 Note : B stands for Budget Figure Philippines 8% Vietnam 1% Korea 13% (4Q17) Others 7% Malaysia 13% Geographic Distribution India 27% China 16% Indonesia 14% Philippines 9% Vietnam 1% Korea 15% (YTD) Others 8% Malaysia 13% India 28% China 13% 4Q17 coal sales volumes of 6.1 were higher than 3Q17 and 4Q17B as sales were made in advance on the back of increased production levels in the previous quarters. India and China are the top two destinations in 4Q2017. Top customers 4Q2017 and YTD (by sales volume) are: TNB Fuel Service Sdn. Bhd., Mercuria Energy and Noble Resources. Indonesian domestic sales are becoming more significant due to continued effort to support GoI expansion program sales volumes of 20.1 million Mt exceeded Budget by15% 11

13 (US$ / MT) Average Selling Price (ASP) Q17 ASP of US$ 57.5/MT was higher than 3Q17 of US$ 52.3/MT and the Budgeted ASP of US$ 37.8/MT due to : Coal prices remaining strong into the 4Q2017 whilst the Budget anticipated a weakening coal price Combined with significant element of unfixed sales book Partially offset with: 0.0 * 4Q16 4Q17B 4Q17 ASP includes coal and non-coal sales Note : B stands for Budget Figure Lower CV than the Budget (4,569 GAR vs 4,653 GAR) as the proportion of Tabang was higher than the Budget as we exceeded Budgeted production volumes ASP of US$ 53.1/MT exceeded the Budget as the Company benefited from continued higher benchmark prices 12

14 Committed and Contracted Sales for million MT Strong demand and contacted volumes underpin 2018 volumes. 79% 21% 2018 Fixed Price Floating Price As at 31 December 2017 the Group had committed and contracted sales volumes of 18.1 million MT with an average CV of 4,606 GAR kcal which underpins the Group 2018 sales volumes. Additional sales will be made as production levels continue to grow throughout Fixed Price element at US$ 48.71/ MT with an average CV of 4,467 GAR kcal. Contracted sales already underpin 2018 growth 13

15 EBITDA Q16 4Q17B 4Q17 Note : B stands for Budget Figure 4Q17 EBITDA of USD 156.3m exceed the 3Q s results and was the highest of the year. The 2017 EBITDA of USD 485.1m exceeded some of the larger, more established Indonesian coal producers EBITDA Margin (%) Competitors Table Bayan Adaro PTBA Indika ITMG Golden Energy EBITDA margin in excess of 45% is one of the best in Indonesia. One of the best EBITDA margin s in Indonesia 14

16 (in million US$) Net Debt and Cash As of 31 December 2017, fully prepaid all existing long term debt Drew down USD 100 million under new Permata Working Capital facility. The Group leverage significantly reduced, Net Debt to EBITDA Ratio of 0.1x Q 2Q 3Q 4Q Net Debt Cash and Restricted Cash Deleveraged the Company 15

17 In Million USD Capital Expenditure Capex YTD was US$ 48.9 million, which was slightly below the Budget. Majority of spend was at Tabang related to infrastructure at: 30.0 Senyiur Jetty 20.0 Improvement of the CHR 10.0 Additional Equipment & Machinery. - Budget YTD Minimal Capex required to achieve growth 16

18 Appendix PT Gunungbayan Pratamacoal PT Perkasa Inakakerta PT Teguh Sinarabadi PT Firman Ketaun Perkasa PT Wahana Baratama Mining PT Fajar Sakti Prima PT Bara Tabang PT Brian Anjat Sentosa PT Tanur Jaya PT Silau Kencana PT Orkida Makmur PT Tiwa Abadi PT Sumber Api PT Dermaga Energi PT Bara Sejati PT Apira Utama PT Cahaya Alam PT Mamahak Coal Mining PT Bara Karsa Lestari PT Mahakam Energi Lestari PT Mahakam Bara Energi GBP PIK TSA FKP WBM FSP BT BAS TJ SK OM TA SA DE BS AU CA MCM BKL MEL MBE 17

19 Appendix PT Graha Panca Karsa Kangaroo Resources Limited PT Dermaga Perkasapratama PT Indonesia Pratama PT Muji Lines PT Bayan Energy PT Metalindo Prosestama PT Sumber Aset Utama PT Karsa Optima Jaya GPK KRL DPP IP Muji BE MP SAU KOJ 18

20 Disclaimer This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events. These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for coal generally and for our products in particular, the success of our mining activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for planned expansion efforts, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement. 19

21 Thank You 20