PGAS Business Updates Mandiri Investment Forum 2020 February 6, 2020

Investor Presentation PGAS Business Updates Mandiri Investment Forum 2020 February 6, 2020

www.pgn.co.id About PGAS

1 Operation Highlight & Projection 2020 Dec 19 Operation Highlight | Operation Projection | Capex Projection

9M2019 3 Operational Performance Distribution | Transmission | Other Downstream | Upstream Lifting

9M2019 4 Financial Performance Income Statement | Balance Sheet | Cashflow | Financial Ratios | Debt Maturity Profile

2 Disclaimer & This document is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of the Company’s credit facilities or any of the Company’s securities. Neither this presentation nor anything in it shall form the basis of any contract or commitment. This document is not intended to be relied Cautionary upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. Statement The Company has prepared this document based on information available to it that have not been independently verified. No representation or warranty, expressed or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. The information included in this presentation is preliminary, unaudited and subject to revision upon completion of the Company’s closing and audit process.

This document may include forward-looking statements concerning the Company’s plans, objectives, goals, strategies, future events, future performance, capital expenditures, business trend, and other information that is not historical. When used in this document, the words “estimates”, “expects”, “anticipates”, “projects”, “plans”, “intends”, “believes”, “predicts”, “forecasts”, or future or conditional verbs, such as “will”, “should”, “could”, or “may” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, management’s examination of historical operating trends and data are based upon the Company’s expectation and various assumptions. Future events or results may differ from those anticipated or expressed in these forward- looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf apply only as of the date of this document. The Company undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

3 December 2019 Operational Updates . PGN and Pertagas recorded distribution volume of 837 Volumes Jan – Nov 2019 Jan – Dec 2019 Δ YoY % FY 2019 Targets BBTUD and 143 BBTUD, respectively, in Dec. vs. 911 and Distribution* 160 BBTUD, respectively, in the prior month (or declined by 987 988 2.84 970 – 990 (BBTUD) 8.12% for PGN and 10.62% for Pertagas, respectively, MoM). These declined were mainly contributed from lower gas Transmission 2,044 2,046 -2.64 2,070 – 2,100 (MMSCFD) consumption from power and industrial customers as a result of pipeline maintenance works that delivered gas to Tanjung Upstream Lifting 9.35 10.41** -27.33 10.50 – 11.00 Priok power plant in Dec. as well as Christmas and New (MMBOE) Year’s holidays. Regasification 121 120 -3.81 125 – 130 (BBTUD) . Lower transportation volumes declined MoM by 0.26% to LPG Processing 2,059 MMSCFD in Dec. mainly due to lower Pertagas’ 722 716 -9.05 740-770 (TPD) volumes MoM from 1,299 MMSCFD in Nov. to 1,293 Oil Transportation MMSCFD in Dec. 3,401,539 3,746,265 0.89 4,361,069 (Barrel) . O&G lifting in Dec. stood at 1.05 MMBOE or higher by USD 200 - 250 Million * Incl. Processed Gas Volume of 39 BBTUD ~USD 219Million -3% ** Lifting Vol. based on estimation 50.29% compared to the prior month mainly driven by higher oil lifting volume in Dec. by 189.86% MoM to 8,255 bbl per day mainly driven from Ketapang and Muara Bakau blocks. 48% 56% . Other segments reflect Pertagas business contributions: . YTD capex spending as of December 2019 - Regasification volumes MoM increased by 24.25% to 116 Upstream reached US$218 million, US$121 million of BBTUD in Dec. due to higher gas consumption by PLN. which was spent on upstream activities - LPG processing dropped by 3.38% from 673 TPD in Nov. 52% 44% and the remaining was spent on to 651 TPD in Dec. due to lowering production both in Perta downstream midstream and supporting Samtan Gas and and MKS LPG plant. businesses. - Oil transportation from Pertamina EP oil field in Central FY2019 CAPEX Dec-19*** Ramba, South Sumatra, to Plaju refinery unit in South *** Based on Estimation Sumatra recorded higher oil volumes 12.79% MoM to

Upstream 344,726 BOEPD. Downstream, Midstream & Supporting Business Projections 2020* Refocusing Core Business

CAPEX PLAN ($US Million) Projects/Programs Years Operating Metrics Financial Indicator Upstream ~200 Developing Pangkah, Muara Bakau 2020-2021 and Ketapang CAPEX 500-700 +3% +1% +6% Midstream ~80 LNG Infrastructures 2020-2021 ($US Million) • LNG Carrier/Vessel 29% • LNG Trucking • Revitalised Arun Tank 11% Downstream ~360 • Java & Sumatra Distribution 2020-2021 • Customer Attachment 1,377 980 11.0 • Gressik – Semarang 949 Upstream 1,369 10.4 219 950 -

10.5 - 55% Transmission

- 1,369 Midstream 56% • Rokan Oil Pipeline Downstream 3% Supporting ~35 2020 Distribution (BBTUD) **

Transmission (MMSCFD)*** Transmission Upstream Lifting (MMBOE) 32% 10% 5% Supporting FY19 FY20 FY19 FY20 FY19 FY20 Dec. 2019 FY20 Target Target Target Target Actual Dec. ‘19 capex yet to be determined Macro Impacts Key Assumptions ** Excl. Processed Gas *** Excl. TGI & KJG • Weakening US Dollar against Rupiah • Exchange Rate USD/IDR : 14,400 • Lower electricity & industries consumption • Inflations : 3.1% Tightening Government Policy Oil Price (ICP): USD 63/barrel Sales Volume Target • • +5% +5% -2% • Industries Growth 2% - 3% (Based on Customer Segment) FY 2020E Business Focus • Stable Power Consumption 1% Development of Infrastructures: • Distribution Pipeline in Java and Sumatra 37% • Completion of Gas Transmission pipeline 67

126 FY2019 3.65 Oil Transportation pipeline

- • 64 3.74 120 62%

65 1%

120 - Distribution expansion in key markets: 3.50 - • Greater Medan Area 42% • Dumai-Riau

Oil Transport (MMBOE) Transport Oil 58% Regasification (BBTUD) Regasification

Processed Gas (Thousand Ton)**** • Java (Centra Java, East Java, & West Java) Power (PLN/IPP/PPU) FY19 FY20 FY19 FY20 FY19 FY20 Industries/Commercials Notes: Target Target Target * May be reviewed in anticipation of City Gas 5 **** Excl. Perta Samtan implementing new industrial gas pricing About PGAS PT Perusahaan Gas Negara Tbk (PGAS:IJ) the leading natural gas distribution and transportation player in Indonesia. PGAS continues to strengthen its position in the market by graduallytransforminginto an integrated energy solution company, encouraging the use of natural gas. PGAS is engaged in upstream oil and gas, midstream and downstream fields across the Indonesian peninsula. PGAS owns and operates natural gas pipelines in excess of more than 10,000km in total length, covering c. 96% of the national natural gas pipeline network. PGAS’ upstream portfolio consist of 11 oil and gas blocks across the country, and 1 shale gas in Houston, US. PGAS has 2 FSRU’s (Lampung & West Java) and land based regasification facility in Arun. PGAS, through its downstream entities, serves more than 2,000 industrial and commercial customers. PGAS become subsidiary of PT Pertamina (Persero) since 11 March 2018 as part of Government of Indonesia’s Oil & Gas Holding initiatives. With the acquisition of 51% stake in PT Pertamina Gas (and its subsidiaries) on 28 December 2018, PGAS has officially been the Gas Sub-holding Company.

www.pgn.co.id The Milestones

1998 2007 2010 2012 2015 2017 • Completion of Grissik – • Completion of SSWJ Muara Bakau Block started Duri transmission pipeline transmission pipeline Establishment of a JV production and meet the Establishment of PT PGN Completion of Kalija • Establishment of PT • Establishment of PT PGAS between Pertamina and target of natural gas lifting of LNG Indonesia transmission pipeline by KJG TransportasiGas Indonesia Telekomunikasi PGN: PT Nusantara Regas 580 MMscfdto increase (TGI) in 2002 Nusantara (PGASCOM) domestic gas supply 2003 2009 2011 2014 2016 2018 • Completion of Grissik- Batam-Singapore Establishement of upstream • Estabalishment of PT Development of gas Establishment of O&M subsidiary, PT Saka Energi Permata Graha Nusantara, distribution pipeline in Musi transmission pipeline Establishment of Oil & Gas subsidiary, PT PGAS Indonesia and downstream a subsidiary in property Banyuasin, Bandar • Batam Distribution Network Holding in 2004 Solution subsidiary PT Gagas Energi • Operation of FSRU Lampung, DKI Jakarta and • Listed Company (“PGAS”) Indonesia Lampung Mojokerto.

Distribution (BBTUD) Revenue& EBITDA Capitalization Transmission (MMSCFD ) (USD Million) (USD Million) 3,061 3,007

960 971 2,814 3,873 3,472 3,664 4,737 4,044 3,870 1,591 1,591 1,600 3,571 1,505 3,253 Liabilities Total 3,069 2,935 2,812 802 802 803 772 2,101 2,036 2,875 4,310 3,023 3,170 3,202 3,278 789 789 797 733 1,115 1,201 951 807 1,085 725 Total Equity 2014 2015 2016 2017 2018 9M-2019 2014 2015 2016 2017 2018 9M-2019 2014 2015 2016 2017 2018 9M-2019

7 The Sub-Holding Co.

Vision

To be World Leading National Gas Company for a Sustainable Future and National Energy Sovereignty. 1 Serie A

Mission

Conducting gas business in Midstream, Downstream, and Other supporting businesses that committed to increasing value for all 43.04% stakeholders through: Public 1. Providing gas and developing infrastructure to utilize gas as 56.96% energy and raw materials to create optimum value for the benefit of customers and society; 2. Creating added value for shareholders and employees, environmentally sound, has the advantage and prioritize Credit Rating Moody’s S&P Fitch safety; 3. Carry out the principles of professional, responsible and Indonesia Baa2 (Stable) BBB (Stable) BBB (Stable) sustainable management of the Company; 4. Organizing other businesses to support gas utilization and Pertamina Baa2 (Stable) BBB (Stable) BBB (Stable) sustainable business management.

PGN Baa2 (Stable) BBB- (Stable) BBB- (Stable) 8 Leadership Board of Directors Board of Commissioners

President Director Director of Finance Director of Commerce President Commissioner Independent Commissioner Independent Commissioner Gigih Prakoso Arie Nobelta Kaban Dilo Seno Widagdo Arcandra Tahar Kiswodarmawan Paiman Raharjo • A Master of Economic • Previously served as Director of • Holds a Master degree in • A Bachelor of Civil Engineering from • Holds a Bachelor and Master Administration from the University Investment Planning and Risk International Management from • Master and Ph.D. of Ocean ITS, Surabaya. Previously served as degree from University of Gajah of Prof. Dr. Moestopo and Doctor of Management of PT Pertamina University of Prasetya Mulya. Engineering – Texas A&M University Managing Director of Adhi Karya Mada. Administrative Sciences from (Persero) • Serves as a Director of Commerce • Serves as President Commissioner (Persero) Tbk • Previously served as Team Leader since 30 August, 2019. Previously since 21 January 2020. Previously • Having no affiliation with other Padjajaran University • A PhD from the University of Investigation in Corruption served as Director of Infrastructure served as Vice Minister Energy and members of the Board of Directors and • Having no affiliation with members Kentucky, Lexington, USA Eradication Commission (KPK) & Technology PT PGN Tbk Mineral Resources of Republic of the Board of Commissioners, as well as of the Board of Directors and other Indonesia (2016 –2019) majority and/or controlling members of the Board of shareholders Commissioners, as well as major shareholders and/or controllers.

Director of Human Capital & Director Infrastructure & Director of Strategy & Independent Commissioner Commissioner Commissioner General Services Technology Business Development Christian H. Siboro Mas’ud Khamid Luky Alfirman Desima Equalita Siahaan Redy Ferryanto Syahrial Mukhtar • A Master of Business Administration & • A Bachelor in Physics from ITS • Holds a Master degree in International • A MA and PhD in Economic, University • A Bachelor of Industrial Engineering Management from PPM Graduate Surabaya • Holds a Bachelor of Management Management from University of Pelita of Colorado ITB, Magister of Management School of Management and Paris • Having an affiliation with PT from University of Padjajaran Harapan/UPH (Harvard University • Having an affiliation with the Republic University of Gajah Mada and Doctor of School of Business. Pertamina (Persero) as the controlling Bandung and Master of Marketing Class). of Indonesia as the controlling at Oklahoma City University, USA. Management Strategic University of • Having no affiliation with members of shareholder, in his position as Director • Serves as a Director since August 30, shareholder, in his position as General Indonesia the Board of Directors and other of Retail PT Pertamina (Persero). • Served as HR and General Director 2019. Previously served as the Director Director of Funding & Risk in Ministry • Previously served as Corporate members of the Board of • Previously served as Director of since May 4, 2017. of Operational & Development PT of Finance Secretary PT. Pertamina (Persero) Commissioners, as well as major Consumer Service PT Telkom 9 Energi Management Indonesia shareholders and/or controllers. (Persero) Tbk Business Portfolio Sub Holding Gas

UPSTREAM MIDSTREAM DOWNSTREAM

Through TGI, KJG and Pertagas, PGN Oil and Gas Production maintain a very high reliability and Natural gas reserves in Indonesia are operational infrastructure security. larger than oil. Saka Energi Indonesia is FSRU converts LNG into high-quality subsidiary of PGN that has business natural gas. PGN has 2 (two) FSRUs activities in the upstream business namely FSRU lampung and FSRU West Gas Transport Module (Gas Link) Commercial Customers Java and also land base regasification Gas Link is a solution for chanellingnatural MRU is the solution for natural gas facility in Arun through Pertagas gas to location that are not connected to a filling station for trantationusing gas pipeline CNG technology 0 > > > >

Power Plants Commercial Customer Household Customer Gas Filling Station Industrial Sector Power plant made from gas Efficiency and reliability are PGN has distributed gas to (SPBG) and Mobile Indonesia’s growth is driven by fuel is more environment important factor in more that 300,000 household the growth of its industrial friendly compared to oil distributing energy to customers in 52 RefuelingUnit (MRU) sector. PGN continues trying to Subsidiary, Gagas Energi fuel or coal commercial customers. PGN cities/regencies all over encourage fuel usage efficiency Indonesia operates 16 SPBG in this case can fulfil these Indonesia by distributing natural gas to at 11 cities in Java and needs various industrial area in Sumatra Indonesia

10 Business Structure PGN Group

1111 Gas Infrastructure Market Development

Reliability : 99.88%

. Distribution Pipeline ±5,376 km . Transmission Pipeline ±4,818 km . LNG Infrastructure 2 FSRUs, 1 Land-based Regas Facility . CNG Infrastructure 12 SPBG, 4 MRUs . LPG Infrastructure 3 Processing Plants 9M–2019 Highlights

-23% 0% -2% -6% -1% -36% 11.0 2,100 990 130 770 MMBOE

OPERATING - 10.5 971 731 TPD Barrel 2,036 118 8.1 BBTUD BBTUD 970 - MMSCFD 4,361,069 125 - METRICS 740 - - 2,070 2,780,956

FY2019 DISTRIBUTION FY2019 TRANSMISSION FY2019 UPSTREAM FY 2019 REGASIFICATION FY 2019 PROCESSED FY 2019 OIL Target VOLUME Target VOLUME Target LIFTING Target Target GAS Target TRANSPORTATION Guideline Guideline Guideline Guideline Guideline Guideline

200 - 250

Revenue 2,812 -42% 48%

131 FINANCIAL EBITDA 725 INDICATORS (USD Million) Total Asset 7,322 71% 52% Equity 3,278 Upstream 29% Downstream, Midstream & Supporting FY2019 CAPEX 9M-2019 13 9M2019 Operational Performance Distribution | Transmission | Other Downstream | Upstream Lifting

www.pgn.co.id 9M–2019

Operational Highlights: Distribution Volume (BBTUD) Wood 0,02% Distribution Lifting Oil 0,25% +1% Cement 0,30% Distribution Volume CNG 1,16% Industrial Consumtption (BBTUD) 960 958 971 Textile 1,53% to Total Sales Volume 39

42 42 634 614 604 585 865 Basic Metal 2,57% 583 802 803 542 772 Paper 3,88% Glass 4,00% 139 136 133 130 130 130 Fabricated Metal 129 5,35% 89 90 98 119 81 84 100 Others 6,41% 5 Biggest Segment 2014 2015 2016 2017 2018 9M-2019 Ceramic 8,34% Regional Distribution Food 8,37% RD 1 : Jakarta, Bogor, Bekasi, Karawang, Tangerang, Cilegon, Chemical 13,51% Lampung, Palembang, and Cirebon Power Plant 39,72% RD 2 : Surabaya, Sidoarjo, Pasuruan, Semarang, Tarakan, and Sorong RD 3 : Medan, Batam, Pekanbaru, and Dumai. 2014 2015 2016 2017 2018 30-Sep-18 30-Sep-19 Processed Gas Pertagas

PGN’s ASP vs Other Energy Trend of Industrial Consumption Number of Customers Length of Distribution Pipeline (KM)

Natural Gas (PGN’s Avg.) 8.50 (BBTUD) 567 560 MFO +125% 19.14 541 502 479 MDF/IDO (Diesel) +163% 22.39 473 469 TOTAL Kerosene +176% 23.47 371,941 3,278 3,270 HSD (Solar) 3,184 +196% 25.16 3,052 2,984

386 2,528 RON 88 +174% 23.32 357 345 351 324 327 LPG - 50 kg +132% 19.74 286 1,232 1,221 1,209 1,172 1,007 859 845 777 768 770 751 LPG - 12 kg +163% 22.39 724 Households 367,965 LPG - 3 kg 9.16 Small Businesses 1,508 8 8 2014 2015 2016 2017 2018 9M-2019 Industries & Commercials 2,468 Coal 2.62 USD/IDR : 14,245 Retail (Non-Power) Power -69% As of 30 Sep 2019 15 9M–2019 Operational Highlights: Transmission Other Downstream

-3% Transmission Volume 2,101 2,094 2,036 Oil Transportation (BPD) Regasification (BBTUD) Gas Processing (TPD) (MMSCFD) 25 25 15 47 51 26

654 641 657 -1% -3% -5% 10,246 10,187 122 773 118 731

851 789 797 733 538 1,375 1,377 1,338 546

205 2014 2015 2016 2017 2018 30-Sep-18 30-Sep-19 171 29 14 9M-2018 9M-2019 9M-2018 9M-2019 9M-2018 9M-2019 Pertagas TGI . Total Length: ± 1,000 km . Total Length: ± 2,466 km LPG Perta Samtan (Pertagas’ shares 66%) . Off-taker: CPI, Gas Supply Pvt. Ltd., PGN, PLN . Transmission Revenue LPG MKS (60%) . Profit from JV LPG Pondok Tengah PGN . Total Length: ±1,145 km (incl. SSWJ) KJG . Total Length: ± 200 km . Off-taker: PLN, BBG . Off-taker: PLN . Transmission Revenue . Finance Lease Revenue

16 9M–2019 Operational Highlights: Pangkah Ketapang Sanga-Sanga SES Muriah Muara Bakau Upstream Lifting Fasken Bangkanai

Oil Gas Lifting (BOEPD) Crude Oil (MMBBL) Gas (BBTU) LNG (BBTU) LPG (MT) -27% 40,552 -35% -29% -16% -16% Oil 2.2 33,470 16,013 25,169 Gas 8,232 LNG LPG 9,367 13,457 21,095 0.8

29,622 23,621 1,097 1.5 5,309 5,724 0.4 14,034 23,260 21,138 0.8 14,716

0.7 13,413 14,918

1,991 0.7 2,533 1,891 0.4 1,382 1,293 1,979 1,909 2,383 1,299 10,113 9M-2018 9M-2019 9M-2018 9M-2019 9M-2018 9M-2019 9M-2018 9M-2019 8,499

1,069 896 9M-2018 9M-2019 17 9M2019 Financial Performance Income Statement | Balance Sheet | Cashflow | Financial Ratios

www.pgn.co.id 9M–2019 Revenue Contribution EBITDA Contribution Others Financial Highlights: Upstream 6% Upstream Consolidated Income Statement 10% 23%

30 Sep 2018 (As restated) 77% 84% 30 Sep 2019 (Unaudited) Distribution & Transmission Distribution, Transmission & Others (USD Million)

Revenue 30 September 30 September 2,890 2,812 (USD Million) 2018 2019

Gas Distribution 2,103 2,182 Gas Transmission 167 181 1,917 1,925 Oil Transportation 20 15 E & P 442 292 Fiber Optic 10 12 972 31 16 887 903 Finance Lease 725 Gas Processing 98 81 495 407 Others 19 32 244 129 Total 2,890 2,812 Revenue Cost of Gross Profit Operating Net Income EBITDA

Revenue Income 19 9M–2019 Financial Highlights: Consolidated Balance Sheet Consolidated Cashflow

31 Dec 2018 (Audited) Cash Flow 30 Sep 2018 30 Sep 2019 30 Sep 2019 (Unaudited) 7,939 (ÙSD Million) (As restated) (Unaudited) 7,322 Beginning Balance 1,140 1,315 (USD Million) Cash flow from operating 727 867

Cash flow from investment (81) (879) 5,466 5,188 Cash flow from financing 32 (345) 4,737 4,044 Foreign Exchange Impact (42) 5 Ending Balance 1.776 964 3,202 3,278 3,133 2,961 2,474 2,134 Financial Ratios 31 Dec 2018 30 Sep 2019 1,605 1,083 EBITDA Margin 26% 26% EBITDA /Interest Expense (x) 6.7 5.7 Debt-to-Equity (x) 1.1 0.8 Current Non Current Total Assets Current Non Current Total Total Equity Net Debt/EBITDA (x) 2.1 2.5 Assets Assets Liabilities Liabilities Liabilities Gross Debt/EBITDA (x) 3.4 3.8

20 9M–2019 Debt Maturity Profile* Interest Payment* (USD Million) (USD Million) 16 21 9 6 5 5 2 5 25 12 4 Debt Profile 19 19 21 19 31 19

179

821 328 35 1,975 117 117 117 Total Loan 71 71 117 44 117 117 USD 2.76 Billion Commercial & Multilateral Loan Weighted Average Interest Rate 4.36% 70 Shareholder Loan (Excl. Tax) 26 8 Bonds 2 2019E 2020E 2021E 2022E 2023E 2024E >2025E** 2019E 2020E 2021E 2022E 2023E 2024E >2025E**

13% Currency Forecast Interest Rate Forecast (%) USD JPY 14,600 106 7.00 1.70 14,400 105 6.80 1.65 14,200 104 6.60 6.40 14,000 103 1.60 6.20 13,800 102 6.00 1.55 13,600 101 5.80 13,400 100 5.60 1.50 87% 2019E 2020E 2021E 2022E 2023E 2024E >2025E 2019E 2020E 2021E 2022E 2023E 2024E >2025E USD-IDR USD-JPY (Source: Bloomberg & Moving Average Forecast) LIBOR-3M LIBOR-6M JIBOR-6M

Fixed 15% Float Entities PGN SAKA Pertagas*** PGAS Solution Lender EIB JBIC IBRD Bank Mandiri Bond Bond SHL Bank Mandiri

Loan Amount 70,000,000 JPY 49,088,000,000 69,381,312 350,000,000 1,350,000,000 625,000,000 549,106,589 7,055,171 (USD) (IDR 100,000,000,000)

Outstanding 4,750,674 346,520,470 31,848,896 150,000,000 246,207,747 7,055,171 85% (USD) Maturity 2020 2043 2026 2020 2024 2024 2028 2020

*) The amount stated above may differ due to loan prepayment and/or withdrawal, currency and rate volatility **) PGN’s Long Term Loan (JBIC, Maturity 2043), Pertagas Shareholder Loan (Maturity 2028) ***) Pertagas Shareholder Loan is lended by PT Pertamina (Persero) 21 HEADQUARTER Jl. K.H. Zainul Arifin No. 20, Jakarta, Indonesia

Investor Relations: PT Perusahaan Gas Negara Tbk Mid Tower Manhattan 26th Floor Jl. TB Simatupang Kav. 1-S, Jakarta, Indonesia Email: [email protected] Phone: +62 21 8064 1111