Banpu: 3Q16 results Opportunity Day 28 th November 2016 1 2 - PowerPoint PPT Presentation

Banpu: 3Q16 results Opportunity Day 28 th November 2016 1

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DISCLAIMER The information contained in this presentation is intended solely for your reference. This presentation contains “forward - looking” statements that relate to future events, which are, by their nature, subject to sig nificant risks and uncertainties. All statements, other than statements of historical fact contained in this presentation including, without limitation, those regarding Banpu’s future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets where Banpu participates or is seeking to participate and any statements preceded by, followed by or that include the words “believe”, “e xpe ct”, “aim”, “intend”, “will”, “may”, “project”, “estimate”, “anticipate”, “predict”, “seek”, “should” or similar words or expressions, are forward -looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond our control, which may cause the actual results, performance or achievements, or industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which Banpu will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as of the date on which they are made. Banpu does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. The information set out herein is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company. Banpu makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one if many possible scenarios and should not be viewed as the most likely or standard scenario. No assurance given that future events will occur or our assumptions are correct. Actual results may materially differ from those provided in the forward- looking statements and indications of past performance are not indications of future performance. In no event shall Banpu be responsible or liable for the correctness of any such material or for any damage or lost opportunities resulting from use of this material. Banpu makes no representation whatsoever about the opinion or statements of any analyst or other third party. Banpu does not monitor or control the content of third party opinions or statements and does not endorse or accept any responsibility for the content or use of any such opinion or statement. Banpu’s securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state of the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of such act or such laws. This presentation does not constitute an offer to sell or a solicitation of an offer to buy or sell Banpu’s securities in any jurisdiction. 3

Investor focus 1 Coal business 2 2.1 Coal market 2.2 Australia operations 2.3 Indonesia operations 2.4 China, Mongolia operations 3 Power business 4 Gas business 5 Financial summary Takeaways 6 4

Banpu Power IPO: 28 th October 2016 Thank you for your support Raised $389M for: debt repayment $334M, business expansion $28M, IPO ALLOCATION* working capital $9M and other expenses 1 $18M Banpu 32% shareholders Strong investor support, THB 21/sh top-end of IPO Retail 26% price range 20% Received 93% acceptance from Banpu shareholders International 22% investors Local institutional Well-diversified investor base with international investors 5 Note: *28 th October 2016 1 Including legal fees, underwriting fees and financial advisory fees

Banpu Power IPO: delivering on our promise 1 2 Unleashing value Capital for power business growth Realized market cap. BPP will provide of US$2.36bn* on capital for future 1 st day of trading growth options *At closing price THB 27.25/share 3 4 Strengthen Banpu Power business capital structure accountability Recapitalized balance Separate disclosure, sheet and reduced separate analyst gearing* presentation starting next quarter *Consolidated net debt to equity 6 6

Coal: leaner, stronger PRODUCTIVITY / OPERATIONAL COST RATIONALIZATION IMPROVEMENT (2013 – Present) (2013 – Present) Infrastructure & logistics Continuous cost reduction improvement to invigorate efforts through process productivity and maximize optimization and stakeholder benefits from coal prices upturn management  Own mining contractor  34% cost reduction: from US$65/t in 2013 to US$43/t in 2016*  Bharinto ramp-up  Stripping ratio optimization  Embalut and Jorong reserves optimization  Contractor management and negotiation Logistics, infrastructure improvement   Step Change Productivity  Production cost from US$50/t in 2013 to US$36/t in 2016* Portfolio optimization   Logistics optimization  Record production: Mandalong, Clarence  New LW at Springvale China/  Mining bolter Mongolia Coal  New railspur  Singapore office MS&L 1 7 Note: *2016 target 1 Marketing, sales & logistics

Coal: tight supply in thermal market Supply drivers - structural China’s Supply drivers – short term, seasonal capacity Demand drivers – short term, seasonal removal and production Delayed caps Unplanned reaction from replacement production purchases cuts Newcastle Coal Index 1 Unit: US$/t Accelerated Cutbacks by 160 • Highest since 2013 • Tohoku Electric catch-up major Power and 140 purchases exporters and Glencore settled from low market contract at 120 inventory US$94.75/t 100 +c.130% 80 60 Prolonged Winter wet season 40 season in Indonesia 2010 2011 2012 2013 2014 2015 2016 Cost-cutting Thermal coal to curtail quick switch back to Supply production metallurgical restrictions increases in use in SA, Russia every country & Colombia 8 Note: 1 As of 10 November 2016

Coal: strategic options BANPU GROUP SHORT-TERM OPTIONS MEDIUM TO LONG-TERM OPTIONS  Unsold tonnage, different index  Reoptimize mine plan / reserves  Auger mining  Additional exploration, development  Improvement of hauling road  Reserves acquisition  Portfolio optimization  Additional export of 1Mt in 2017 compared to 2016 − New tonnage from projects advancements (i.e. Airly stage 2, Neubecks) − Resumption of Newstan and Angus Place China/  Development of Mongolian  Increase clean coal Mongolia Coal assets to metallurgical market “Choose & Focus”  CHOOSE flexibly MS&L 1  FOCUS on margins & delivery predictability Adjust coal product to maximize average selling price. Maintain focus on productivity improvement and cost rationalization 9 Note: 1 Marketing, sales & logistics

Investor focus 1 Coal business 2 2.1 Coal market 2.2 Australia operations 2.3 Indonesia operations 2.4 China, Mongolia operations 3 Power business 4 Gas business 5 Financial summary Takeaways 6 10

Global demand trends: 2016 vs 2015 CHANGE GEOGRAPHY COMMENTS 2015-16 (MT.)  Supply rationalization created short supply, +35 CHINA rising domestic coal prices  Weak power demand, low power plant utilization, increased domestic coal production and high coal (14) INDIA prices hampered coal imports  Slow economic growth, high renewable energy OTHER (7) N.ASIA and plant maintenance lower coal burn  Low UK imports; gas-switching; coal plant (19) EUROPE retirements and increased renewable energy  Vietnam, Philippines and Malaysia +13 OTHERS expected to add c.11Mt of demand +8 GLOBAL - 11 Note: Includes anthracite and lignite Source: EIA International Energy Outlook 2016

Global supply trends: 2016 vs 2015 CHANGE GEOGRAPHY COMMENTS 2015-16 (MT.)  Continued rainfall and increased domestic INDONESIA -11 demand limited export growth -1  Bad weather and maintenance tighten supply AUSTRALIA  Weather condition and social and labour issues COLOMBIA +8 interrupted supply from time to time  Shortage coal wagon limited spot availability and RUSSIA +7 tighten supply  Rising domestic demand and limited rail capacity S.AFRICA -2 restrict export growth  Improve domestic demand, limited volume for -10 USA export OTHERS +1  Uncertainty long term demand caused producers GLOBAL - -8 to rethink about growing mining capacity 12 Note: includes anthracite and lignite Source: EIA International Energy Outlook 2016

Global coal market trends 2016 vs. 2015 +35 +7 Unit: Mt SUPPLY DEMAND RUSSIA USA OTHER N. ASIA EUROPE +13 CHINA -7 -10 +8 INDIA INDONESIA OTHERS +1 OTHERS -19 COLOMBIA SOUTH -11 AUSTRALIA AFRICA -14 -1 -2 ATLANTIC PACIFIC +27 -3 -5 -19 13