2Q15 results investor and analyst update 14 th August 2015 - PowerPoint PPT Presentation

2Q15 results investor and analyst update 14 th August 2015

DISCLAIMER The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Banpu Public Company Limited. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. 2

Focus: Banpu Power growth update 1 2 Coal operations 3 Coal marketing 4 Power business 5 Financial summary 6 Looking forward 3

Banpu Power profile update agenda Banpu’s power portfolio Hongsa progress Power assets in China Japan solar Banpu Power looking ahead 4

Banpu Power asset portfolio Power capacity (GW equity) COCO 103 MW 0 .4 Mukawa 20 0 0 TECO (COD 2016) Luannan 266 MW 17 MW 123 MW* SLG Nari Aizu (COD 2017) Zhengding 0 .5 20 0 5 (COD 2018) Ratch 1,200 MW 139 MW* Awaji 20 MW 543 MW (COD 2016) Olympia 8.4 MW 10 MW CHINA Zouping Hino 180 MW* (COD 2016) 20 10 1.0 3.2 MW BLCP BIC 717 MW 327 MW* Japan solar 4 MW Hongsa BIC (COD 2015-16) Hongsa 1,878 MW 388 MW* 20 15 ** 1.4 250 MW LAOS BLCP Operational 717 MW Japan solar Solar 37 MW BLCP Project SLG 1,434MW BIC Solar 360 MW 424 MW* Operational coal-fired 20 18 e 2.3 Project (Committed) Hongsa coal-fired BLCP THAILAND 751 MW 717 MW All capacity presented on 100% basis *Power capacity is derived from the capacity of power and steam combined in MW equivalent 5 **As of 14 th Aug 2015 Note : Banpu effective ownership - Hongsa (40%), BLCP (50%), Luannan and Zhengding (100%), Zouping (70%), SLG (30%), Japan solar (40-75%) DISCLAIMER The views, information and indications expressed here including forward looking targets and indications are illustrative only, are subject to change, may be based on incorrect assumptions, and have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the views, information as indications expressed here. This slide should not be relied upon as a recommendation or forecast by Banpu Public Company Limited. Nothing in this slide should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

Hongsa: 97.8 % com plete* Power plants PROGRESS* 97% Power plants 0% Ash and gypsum 94% handling system 0% 100% Transmission line 0% and substations 99.2% Mining works 0% Transm ission line and substations 99.9% Infrastructure works 0% 96.6% Social development 0% *As of June 2015 6

Hongsa: 97.8 % com plete* (continued) Mining works Conveyor line Coal/soil crusher Stock yard Stacker PROGRESS* 97% Power plants 0% Ash and gypsum 94% handling system 0% Infrastructure works Main road from country border Nam Ken Dam 100% Transmission line 0% and substations 99.2% Mining works 0% Social developm ent Ban Homexai Ban Homesawang 99.9% Infrastructure works 0% 96.6% Social development 0% *As of June 2015 7

Hongsa: m ine in operation Nam Ken Dam Coal flow Coal/soil crusher Overburden Overburden flow crusher Main pit East overburden Overburden Coal zone Conveyor line crusher Coal stockyard West overburden zone East lake Nam Louk Dam Stock yard Coal stacker Conveyor line Area: 272,000 m 2 Max. stock: 0.75 mt reserved for 15 days 8

Hongsa: perform ance and reliability testing Com m ents Unit 1  Extensive testing process Alkaline clean conducted by Hongsa and 3rd OCT 14 parties (e.g. EGAT) to ensure Acid clean NOV 14 reliability Steam blow DEC 14  Capex lower than budget so far Start-up with oil FEB 15  Unit 1 is now in operation 1 st network synchronization FEB 15  Passed all tests on PPA, Start-up with oil FEB 15 performance and reliability MAR 15  Unit 2 and Unit 3 are on schedule Start up with coal & PPA test Performance test start MAY 15 Reliability and trial run test start MAY 15 JUN 15 COD JUL 15 Reliability test complete 9

Hongsa: social developm ent COMPENSATION 2009 PHYSICAL RELOCATION  New houses in residential area (450 sq. 2010 m./ household)  Relocated 450  Cash compensation and household households of 2011 account training 5 villages to resettlement areas  New farms (2 ha/ settler), with provision 2012 of budget for preparation  Arranged health check before 2013 LIVELIHOOD IMPROVEMENT relocation 2014  Utilities: farm access road, piped water Road to farmland Pipeline installation COMMUNITY supply & irrigation, shared electricity, bus DEVELOPMENT 2015 station and police box  Constructed  Capacity building: learning center, public facilities 2016 cooperatives & market place, training and infrastructure courses 2017 Primary school Secondary school  Built primary and  Health and education: schools, hospital & secondary schools 2018 medical equipment and health check with database management 2019 ECONOMIC DEVELOPMENT INCOME 2020 RESTORATION  Currently >3,000 families employed  Capacity building 2021  Increased resettlers’ income to 150% over  Provided budget for baseline in most areas 2022 plantation Chili cultivation Market place 10

Banpu Power assets in China Liaoning Com m ents Luannan 30%  Zhengding expansion completed, 10 0 MW including additional chilled water unit 128 tph to boost revenue during summer time Beijing  Luannan and Zouping have expansion Shanxi potential as local demand continues Hebei Lu Guang to grow 1,20 0 MW Zouping 10 0 MW Zhengding  Special niche in CHP market which 450 tph 73 MW (+25) can secure higher power dispatch due 370 tph (+173) Shaanxi to: (+35) 35 MW Power Yellow sea 70% Steam - being the only heat source that Shandong Chilled water Equity capacity supplies both industrial and Operational 603 MW Henan residential heat demand 813 tph Project Jiangsu 35 MW Capacity presented on a 100% basis - generating both power and steam at BIC’S NET INCOME (U$ M) VERSUS COAL PRICE the same time, therefore obtains 804 priority dispatch from the grid 745 BIC’s average 682 company 593 coal price 566 (RMB/t) 471 - obtaining strong local government support and recognition 27.0 26.1 20.1 18.8  With a strong local team and local 15.9 BIC’s 9.4 experience, Banpu is able to maintain net income (U$ M) a consistent track record 2009 2010 2011 2012 2013 2014 11

The Chinese power m arket com pared APPROVAL-ORIENTED MERCHANT INVESTMENT CHINESE MARKET “SINGLE BUYER MARKET” “MARKET – DRIVEN” e.g. Thai IPP and Japan solar e.g. Australia and Europe    No wholesale market No wholesale market Mostly private    No retail competition No retail competition Power sold through power exchanges   Regulated Price/ dispatch regulated  but also reflect Retail market are  Predictable rate of return supply/ demand and cost competitive  Investment through PPA (coal-power tariff  Limited intervention linkage policy)  Price/ return driven by supply/ demand and marginal cost Seller Buyer Seller Seller Buyer Buyer Fuel risks Demand risks Finance risks Operational risks 12

BIC strategy and perform ance BIC’s com petitive advantages BIC’s utilization versus industry Hour 9,000  Higher power dispatch ZD 8,000 7,000 from heat determined ZP (1) 6,000 power policy as a result of LN 5,000 being the only heat source 4,000 China’s average utilization hour in the area 3,000 2,000 2010 2011 2012 2013 2014  With heat load, CHP* average efficiency is higher Coal price versus tariff rate – Zhengding than pure power plants 0.42 800 Tariff (RMB/kwh) (LHS) 700  Integrated into local 0.40 600 community as essential 500 0.38 utility unit (heat source) 400 Coal price (RMB/t) 0.36 300 (RHS) 200 0.34 100 0.32 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: China Electricity Council, nationw ide coal-fired operating hour/ year 13 *Combined Heat and Power (1) ZP utilization hour dropped in 2013 was due to short term lower steam load