FY18 & 4Q18 results Investor and analyst update. 28 th February 2019

Transcription

1 FY18 & 4Q18 results Investor and analyst update 28 th February 2019

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3 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 significant 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, expect, 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

4 1 3 Strategic Review 2 Financial Summary Energy Resources Coal Gas Energy Generation Energy Technology Key Takeaways 4

5 Banpu business groups ENERGY RESOURCES ENERGY GENERATION ENERGY TECHNOLOGY COAL CONVENTIONAL POWER SMART ENERGY OIL & GAS RENEWABLE POWER PROPRIETARY TECHNOLOGY DEVELOPMENT Greener and smarter with stronger integration 5

6 Banpu: integrated energy solutions Energy Resources Energy Technology Coal: leading pan-asia- Pacific supplier, 43Mtpa Gas: leading Marcellus shale producer, USA; ~200 MMcfd; >1.25 Tcf reserves Energy Generation Conventional Power: 2.4GWe committed in Greater Mekong, China Renewable Power: 0.5GWe committed in Japan, China, Vietnam INDIA MONGOLIA CHINA THAILAND SINGAPORE NORTH ASIA 2b LAOS VIETNAM JAPAN USA INDONESIA AUSTRALIA Solar Rooftop: 151 MW installed across Southeast Asia and India Batteries: strategic stake in Singapore lithium-ion battery producer, 80 MWh pa EV: strategic stakes in Japan and Thailand s leading EV companies Innovation Lab: IP and new technology business development via R&D, start-up cocreation and corporate venture capital Coal operations Shale gas Solar PV Wind Innovation lab Coal development Conventional power Solar rooftop Batteries Electric Vehicles 6

7 2018 highlights A leading integrated energy solutions company in Asia-Pacific $378 M Net profit from operations stable YoY $1,178 M Consolidated Ebitda +22% YoY 1.07x Net D/E Gearing Energy Resources Energy Generation Energy Technology 43.1 Mt Total group coal sales volume* 2.87 GWe Total committed power capacity 151 MW Total committed solar rooftop and solar PV capacity 70.8 Bcf Total gas sales volume* 16% Renewables share of total portfolio 80 MWh Lithium-ion battery production capacity 996 $ million** Coal Ebitda $895 M** Gas Ebitda $101 M**, +22% YoY 182 $ million** Ebitda resilience despite coal price increase 20 $ million Electric vehicle business investment Note: *Equity basis, **Consolidated EBITDA 7

8 Greener and smarter milestones Greener and smarter portfolio at end 2018 Total committed equity capacity GAS Annual gas sales volume 5.5 Bcf 20.9 Bcf Bcf 70.8 Bcf JAPAN 233 MW Solar; EV investment RENEWABLES (BPP) SOLAR ROOFTOP AND SOLAR PV (BANPU INFINERGY) 245 MW 385 MW +140 MW Japan Solar 94 MW 465 MW +80 MW Vietnam wind 151 MW +57 MW Solar rooftop and Solar PV Battery production capacity INDIA CHINA 152 MW Solar THAILAND 14 MW solar rooftop and Smart city projects; EV investment NORTH ASIA 2b VIETNAM 80 MW wind OTHER SEA* AND INDIA 137 MW solar rooftop and solar PV (38.5% stake in Sunseap); 80 MWh EV battery production USA 70.8 Bcf annual gas sales volume ENERGY STORAGE SYSTEM (BANPU INFINERGY) +80 MWh Note: *Other SEA includes Singapore, Malaysia, Philippines, Cambodia, and Vietnam 8

9 Greener: gas 2018 GOING FORWARD $101 M 2018 EBITDA, +>300% YoY 1.25 Tcf 1P Reserves 70.8 Bcf Annual gas sales volume FY2018 which currently control >80% US field office To facilitate asset operation for sustainable growth UPSTREAM STRATEGY Seeking opportunities to strengthen position in N.E. Marcellus area Another $500 M investment budget with target to establish sustainable business in US gas industry Enhance existing portfolio production volume and improve reserves life with effective asset development program MIDSTREAM STRATEGY Enhance margins from effective gas marketing program Explore investment opportunities in midstream gas pipeline and infrastructures In process of study on potential to supply gas directly to local gasfired power plant 9

10 Greener: renewable power TOTAL COMMITTED RENEWABLES EQUITY CAPACITY Unit: MW Target 4.3 GW +275 MW NEW GROWTH Seeking new opportunities in Asia Pacific and diversifying renewable fuel types to reach 20% renewable target within the next 7 years Renewable power 20% 860 MW +120 MW ADDITIONAL GROWTH FROM VIETNAM WIND PROJECT Potential to secure investment certificate for additional 120 MW, from total 200 MW MOU of Soc Trang wind project Conventional power 465 MW COMMITTED CAPACITY Achieved >50% of target renewables capacity within 2 years since IPO To ensure on-time project development for all committed projects in portfolio 2025 Target renewable capacity by 2025 Committed renewable capacity at end

11 Greener and smarter: smart energy Solar rooftop and battery energy storage to enhance Banpu Infinergy holistic solar energy solution Integrate solar rooftop and other energy solutions to develop smart cities SOLAR ROOFTOP SOLUTIONS Further investment in Sunseap: increase stake from 25.7% to 38.5%. Leverage Sunseap s expertise to secure new opportunities and achieve strategic goal of 300 MW solar rooftop ENERGY STORAGE SYSTEMS Durapower Holdings acquisitions: 47.7% stake in Durapower Holdings, Singapore lithium-ion batteries manufacturer for both stationary and automotive energy storage solutions Solar rooftop Batteries Batteries will be used for powering electric vehicles Electric vehicles ELECTRIC VEHICLES FOMM Corporation acquisition: 21.5% stake in FOMM, Japan s leading compact electric vehicle developer Urban Mobility Tech acquisition: 22.5% stake in Urban Mobility Tech, developer of electric tuk tuk and Muvmi (on-demand sharing transportation services) SMART CITIES Smart City pilot partnership with Rugby School and cooperation on renewable energy development under Phuket smart city plan 11

12 TARGET WITHIN AND ACROSS BUSINESS UNIT SYNERGY TARGET SYNERGY Smarter: synergy strategy focus Vietnam BANPU BUSINESSES IN VIETNAM HARD SYNERGY (SUPPLY CHAIN) SOFT SYNERGY (SKILLS) HANOI Haiphong Thai Binh Da Nang COAL MARKETING Blending, trading and logistics synergies enabling customized coal specification RENEWABLE POWER EXPERTISE Sharing of renewable power business development expertise between BPP and Banpu Infinergy Ninh Thuan 44 MW solar (through 38.5% stake in Sunseap) Qui Nhon To achieve > 2 Mt of coal sales in Vietnam (from 1.3 Mt in 2018) Enhance operational performance and project development Nha Trang HCMC office Port Tra Vinh Soc Trang 80 MW wind (BPP) Banpu s coal sales to Vietnam VIETNAM POWER SUPPLY GROWTH GW COAL SUPPLY TO POWER PLANT Supply coal for future coal-fired power plant investment in Vietnam HO CHI MINH OFFICE Co-ordinate business development across all business units Coal Renewables* Others** 47% 31% 22% 130 GW Enhance cost control and additional margin Secure new investment opportunities to capture electricity demand growth in Vietnam 43 GW Operational Development 2016 Growth 2030 Source: Vietnam s Power Development Plan 7, April 2017 Note: *exclude hydro power, ** Include large hydro power, gas and oil-fired power 12

13 Growing sustainable businesses and regional presence CAPITAL EXPENDITURE PLAN BY BUSINESS ILLUSTRATIVE & INDICATIVE ONLY New smart energy businesses Smart Energy $100 M US$835 M CAPEX PLAN Coal $110 M Coal reserves organic growth Conventional power $60 M Renewable power $65 M Project pipeline (SLG, China CHP) Project pipeine (JP solar and VN wind) Banpu is leading the transition to greater energy sustainability in a responsible way New greener investments will be funded by solid cash flow from conventional energy businesses Gas $500 M New acquisitions Note: capex figures exclude maintenance capex 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. 13

14 1 3 Strategic Review 2 Financial Summary Energy Resources Coal Gas Energy Generation Energy Technology Key Takeaways 14

15 Banpu consolidated sales revenues USD million +4% QoQ +13% YoY +21% YoY Others* Power Gas Coal Australia Coal Indonesia , Others* -33% QoQ +84% YoY Power +43% QoQ -9% YoY Gas +11% QoQ +221% YoY Coal Australia +17% QoQ +10% YoY Coal Indonesia -1% QoQ +8% YoY 2, ,722 3, ,014 1,984 Others* +213% YoY Power +4% YoY Gas +289% YoY Coal Australia +15% YoY Coal Indonesia +15% YoY 4Q17 3Q18 4Q Note: Note: *Revenue *Revenue from from others others includes includes coal coal trading, trading, fuel fuel business business and and other other businesses businesses 15

16 Banpu consolidated coal gross margin 2018: 37% COAL GROSS MARGIN 4Q18 : 35% COAL GROSS MARGIN 2018 : 37% USD million Australia coal gross margin: 28% Indonesia coal gross margin: 39% USD million Australia coal gross margin: 27% Indonesia coal gross margin: 42% 1,984 1, , % 42% 47% 43% 39% 34% 27% 36% 20% 28% 4Q17 3Q18 4Q18 4Q17 3Q18 4Q Coal sales Gross margin 16

17 Banpu consolidated EBITDA USD million +13% QoQ +28% YoY 1, % YoY Power +19% YoY Power Gas Coal Australia Coal China Coal Indonesia Power -25% QoQ +18% YoY Gas +54% QoQ +437% YoY Coal - Australia +61% QoQ -8% YoY Coal - China -31% QoQ +21% YoY Coal - Indonesia +13% QoQ +30% YoY Gas +308% YoY Coal Australia -5% YoY Coal China +24% YoY Coal Indonesia +21% YoY 4Q17 3Q18 4Q

18 Banpu consolidated NPAT 3Q18 NET PROFIT AFTER TAX 2017 NET PROFIT AFTER TAX USD million Power Gas Coal - Australia Coal - China Coal - Indonesia (61) 41 Interest - (45) 34 Tax - (36) 174 (36) Non-recurring items: FX loss USD:THB ($24.8M) Other non recurring ($3.4M) Derivative loss ($29.0M) - Coal swap ($23.1M) - Gas hedging $0.8M - FX ($6.3M) - CCS & IRS* ($0.4M) 133 (57) 76 USD million Power Gas Coal - Australia Coal - China Coal - Indonesia (206) Interest (140) Tax - (134) (110) Non-recurring items: FX loss USD:THB ($76M) Other non recurring ($48M) Derivative loss ($21M) - Coal swap ($13M) - Oil hedging $4.9M - Gas hedging $3.2M - FX ($12M) - CCS & IRS* ($4.1M) 379 (145) 234 EBITDA AS REPORTED D&A INTEREST MINORITY NP & TAX FROM OPERATION NON- RECURRING ITEMS NPAT EBITDA AS REPORTED D&A INTEREST MINORITY NP & TAX FROM OPERATION NON- RECURRING ITEMS NPAT 4Q18 NET PROFIT AFTER TAX 2018 NET PROFIT AFTER TAX USD million 351 Power Gas Coal - Australia Coal - China Coal - Indonesia (140) Interest - Tax - (45) (56) (23) Non-recurring items: FX gain USD:THB $2.3M Other non recurring ($17.5M) Derivative loss ($27.5M) - Coal swap ($10.5M) - Oil hedging ($5.9M) - Gas hedging ($4.7M) - FX ($5.3M) - CCS & IRS* ($1.1M) 88 (43) 45 USD million 1,178 Power Gas Coal - Australia Coal - China Coal - Indonesia (326) 222 Interest - (175) Tax - (189) (109) Non-recurring items: FX loss USD:THB ($19M) Hongsa court case ($86M) Derivative loss ($62.6M) - Coal swap ($45.8M) - Oil hedging ($5.6M) - Gas hedging ($3.3M) - FX ($6.8M) - CCS & IRS* ($1.1M) 378 (173) 205 EBITDA AS REPORTED D&A INTEREST MINORITY NP & TAX FROM OPERATION NON- RECURRING ITEMS NPAT EBITDA AS REPORTED D&A INTEREST MINORITY NP & TAX FROM OPERATION NON- RECURRING ITEMS NPAT Note: *interest rate swap, cross currency swap 18

19 Banpu consolidated financial position 2018 CONSOLIDATED FINANCIAL POSITION DEBT FX STRUCTURE GEARING RATIOS USD million Net debt / Equity 1 (x) CASH EQUIVALENT 615 TOTAL BORROWINGS AUD Float 5% THB Float 4% 0.99x 0.99x 1.07x ASSETS 7,839 4,022 OTHER LIABILITIES 1,257 USD Float 22% THB Fixed 19% USD Fixed 48% Net market gearing 2 (%) 58% 50% 52% TOTAL SHAREHOLDERS EQUITY 3,175 AUD Fixed 2% Net debt / EBITDA (x) 4.99x 3.27x 2.89x TOTAL ASSETS TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Total gross debt: US$4.02 billion As of 31 December Note: 1 Net debt to book value of shareholders' equity 2 Net debt to enterprise value (enterprise value = net debt + market capitalization as at 31 December 2018) 19

20 1 3 5 Strategic review 2 Financial summary 4 6 Energy Resources Coal Gas Energy Generation Energy Technology Key takeaways 20

21 Global demand trends: 2018 vs 2017 GEOGRAPHY CHINA INDIA OTHER N.ASIA EUROPE -8 CHANGE (Mt) COMMENTS Import restriction reduced coal imports sharply in Q4, significant impact to low-energy coal market Mild winter, slowed economy, increased domestic supply and high stocks at power plants led to weak demand in Q4 Total year import was strong due to tight domestic supply in the first 3 quarters Healthy industrial production growth drove power demand Strong import demand in non-power sector Insufficient domestic supply Mild temperatures and increased nuclear availability reduced coalfired generation in Japan. Flat coal burn in South Korea and Taiwan despite government restricted coal-fired generation to counter air pollution. Focus on high quality coal Mild weather and strong contribution from renewable generations reduced coal burn Low water levels at the Rhine River limited imports, ARA stocks high Coal phase-out gained more momentum in 2018 OTHERS GLOBAL New coal-fired power plants in Vietnam, Malaysia, Philippines and Pakistan are driving coal demand. Demand is improving in Egypt and Morocco Strong demand growth with high volatility and uncertainty. Tighten environmental control in northern Asia kept high quality coal demand strong and kept Newcastle 6,000 kc nar price high. While Chinese import restriction reduced demand for LCV coal significantly and depressed LCV coal prices to the floor level at the end of the year. Note: Includes lignite but excludes anthracite 21

22 Global supply trends: 2018 vs 2017 GEOGRAPHY INDONESIA CHANGE (Mt) +31 COMMENTS Significant growth of LCV production Chinese import restriction weighed on Q4 exports and pressured LCV coal prices Rainy season started in Q4 AUSTRALIA +8 Weather and rail and port maintenance limited export growth COLOMBIA -3 Intense wet season and production constraints hampered exports. Diverted more coal to Asia and sold more to Americas as European demand declined RUSSIA S.AFRICA USA OTHERS Diverted more coal to Asia Weather and infrastructure constraint limited export growth to Asia Continued shortage of high quality product due to limited capital spend in the past few years. Miners exported lower quality coal to fulfil take-or-pay commitment with export port which added more LCV coal into oversupply market. Low domestic demand incentivized miners to divert production to exports to realize higher prices Limited availability of rail and port capacity restricted export growth Exports from Poland, China, Canada, Venezuela and the Philippines are declined GLOBAL +41 Tight supply of high-energy coal on strong demand and limited reserves and investments. But oversupply for low-energy coal driven by Chinese import restrictions and increased production from Indonesia. This has increased spread between high- and low-energy coal prices. Note: Russia exports to non-cis only 22

23 Banpu group coal sales 2018 COAL SALES* SOURCE DESTINATION ANALYSIS 2018 GLOBAL COAL SALES* 2018 BY REGION 10.3 Mt Mt 1.5 Mt ITALY CHINA JAPAN 0.8 Mt 2.7 Mt 3.5 Mt 0.5 Mt 1.8 BANGLADESH 0.9 HK 1.0 Mt INDIA 1.3 Mt TAIWAN Mt 0.3 THAILAND 2.1 Mt OTHERS VIETNAM 0.2 Mt PHILIPPINES 2.8 Mt MALAYSIA INDONESIA S KOREA 6.4 Mt Mt India 8% Thailand 3% Other SE Asia 16% Australia 20% Others 5% 43.1 Mt Japan 15% Korea 3% Taiwan 6% China 24% ** Indonesia coal Australia coal China coal AUSTRALIA Notes: * Sales from Indonesia are included on 100% basis, sales from Australia and China are included on equity basis. Excluding Mongolia coal ** Includes coal sales from domestic production in China 23

24 Banpu coal sales pricing status AUSTRALIA COAL 2018 INDONESIA COAL 2018 Fixed Export 39% 14.1 Mt 61% Domestic 24.1 Mt Fixed 100% Fixed 2019e Unsold 2019e Unpriced 11% Indexed 26% 9% 14.9* Mt 7% 47% Domestic Unsold 39% 2% 28.0* Mt 20% Fixed 39% Fixed Indexed Fixed Export Unpriced Note: * target sales; Indonesia coal sales includes third-party sourced coal 24

25 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan Banpu ASPs vs thermal coal benchmark prices BANPU ASP VS BENCHMARK PRICES Monthly NEX Unit: US$/t; A$/t for CEY COMMENTS Chinese import restriction weighed in on Q4 exports and pressured Indonesian coal Divergence of ICI indices against Australian Indices continued to widen through Q4 130 Expect gap to retract into 2019 as Chinese Import quota reset Quarterly Centennial ASP Monthly NEX Quarterly ITM ASP A$105.4/t US$94.9/t US$77.3/t CEY protected by Newcastle-linked price and stable domestic contracts with spot sales at high electricity demand in Australia As a result, 4Q18 ASP weaker for ITM, but stronger for CEY 50 ITM ASP: US$77.3/t* (-13% QoQ) 30 CEY ASP: A$105.4/t* (+5% QoQ) NEX (Feb 22, 2019)**: US$94.9/t Note: * Included post shipment price adjustments as well as traded coal ** The Newcastle Export Index (previously known as the Barlow Jonker Index BJI) 25

26 Australia: operational summary 2018 OUTPUT (ROM EQUITY BASIS) QUARTERLY OUTPUT (ROM EQUITY BASIS) 2018 output: 11.7 Mt 2019 target: 13.0 Mt COAL OUTPUT (Mt) 1 CV: 6,700 kcal/kg 2 +44% QoQ +13% YoY -5% YoY Newcastle Airly Springvale Clarence WESTERN OPERATIONS: 4.3 Mt Underground mine Power station Port Road Rail Mandalong Wollongong PKCT Sydney PWCS Myuna NCIG NORTHERN OPERATIONS: 7.4 Mt Key updates Note: NCIG = Newcastle Coal Infrastructure Group; PWCS = Port Waratah Coal Services; PKCT = Port Kembla Coal Terminal. 1 ROM output on an equity basis, 2 CV figures are air-dried basis Equity ROM: 3.4 Mt (up 44% QoQ, up 13% YoY) with both longwalls on full production during the quarter Productivity and efficiency improvements continue, with further production records achieved at Myuna and Airly Springvale continues to navigate through difficult mining conditions, evidenced by changes to coal seam lithology, which is also impacting coal quality Mandalong, despite a delayed start to the longwall block, LW24A returned the most productive first week in the history of Mandalong. Introduction of new bolting regime and adoption of new shuttle car panel layout, resulted in a 25% increase in productivity QoQ 2.5 4Q17 3Q18 4Q18 1Q19e

27 Australia: financial summary FINANCIAL SUMMARY Unit: A$ M 4Q18 3Q18 QoQ YoY ASP (A$/t) % % Sales revenue % 1,372 1,112 23% EBITDA % % PBT % % NPAT % % Comments Higher ASP benefitting from higher export prices, with contracted domestic sales were higher proportion of overall sales Sales volume up 13% QoQ, up 5% YoY reflecting timing of longwall changeovers Quarterly domestic: export split 63%:37% (3Q18: 58:42%) Full year domestic: export split 61%:39% (2017: 61%:39%) 4Q18 third party coal sales at 0.7 Mt, up 5% QoQ AVERAGE PRODUCTION COST 1 Unit: A$/t FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY Depreciation Cash overhead Coal handling & preparation General expense Repair and maintenance Stores and supplies Labor Both longwall mines in full production during the quarter, albeit Springvale continued to experience lithology difficulties Lithology 2 at Springvale has adversely impacted mined coal quality and increased saleable coal costs due to additional washing costs. Operation of the longwall is being carefully managed to minimise these impacts Looking forward: - Focus remains on cost control, improved production and improved productivity through lean activities - Continue to develop automation, technology, digital and engineering opportunities through a programme of digital transformation Note: 1 These figures do not include selling, distribution and royalty costs; based on sold production, 2 Lithology: the composition or type of rock such as sandstone or limestone 27

28 Indonesia: operational summary 2018 OUTPUT (SALEABLE TONNE BASIS) QUARTERLY OUTPUT (100% BASIS) 2018 output: 22.1 Mt 2019 target: 23.6 Mt East Kalimantan Indominco 12.6 Mt COAL OUTPUT (Mt) CV: kcal/kg* 0% QoQ +12% YoY +1% YoY Bontang Coal Terminal Central Kalimantan Trubaindo 4.7 Mt Palangkaraya Bunyut Port Bharinto 2.6 Mt South Kalimantan Banjarmasin Jorong 1.1 Mt Jorong Port Samarinda Balikpapan Captive coalfired power Kitadin - Embalut 1.1 Mt Average strip ratios (bcm/t) 5.7 Key updates Q17 3Q18 4Q18 1Q19e 12.1x 10.8x 10.5x 12.3x Indominco: 4Q18 output was lower than target of 4.1Mt due to weather condition Trubaindo: 4Q18 production output achieved target output of of 1.3 Mt Bharinto: 4Q18 production output was 0.7 Mt, close to target Embalut: achieved target output of of 0.3 Mt Jorong: achieved target output of 0.3 Mt x 11.1x Note: *CV figures are air-dried basis 28

29 Indonesia: financial summary FINANCIAL SUMMARY Unit: US$ M 4Q18 3Q18 QoQ YoY ASP (US$/t) % % Sales revenue % 2,008 1, % EBITDA % % PBT % % NPAT % % AVERAGE TOTAL COST 1 Unit: US$/t Average total costs Royalty Comments In 4Q18 coal price lower than 3Q18 due to Chinese import restrictions effect and weak demand as a result of slowing economy in China ITM recorded increase in EBITDA and net profit in FY2018 due to higher volume and ASP 2018 average total cost higher than 2017 mainly due to: Optimized stripping ratios in 2018 as result of coal price and coal quality improvement Higher oil price in 2018 by 34% Higher selling cost in 2018 a result of DMO expenses FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 SG&A expenses Depr & Amortization Other production costs 2 Mining cost Note: 1 Coal business only, 2 Repair and maintenance, salaries and allowances, inventory adjustment, others etc. 29

30 Indonesia focus: increase in reserves Unit: Mt Coal reserves increased by 122 Mt from (22) END 2017 EXPLORATION AND MINE PLAN IMPROVEMENT 2018 NPR MINE ACQUISITION IN 2Q SALES DEPLETION END 2018 Note: coal reserves based on 100% basis prepared according to JORC Code

31 China and Mongolia summary CHINA COAL 2018 PRODUCTION* Unit: Mt ROM Altai Nuurs Operation MONGOLIA Tsant Uul GAOHE 10.1 Mt CHINA Unst Kudag BEIJING HEBI 1.5 Mt GAOHE S FINANCIAL SUMMARY Unit: US$ M 4Q18 3Q18 QoQ YoY Sales (Mt) % % ASP (US$/t) Sales revenue COGS (US$t/) Gaohe 2018 output: 11.6 Mt Q17 3Q18 4Q18 1Q19e Hebi Project 4Q17 3Q18 4Q18 1Q19e Note: * Output figures are ROM output (100% basis) % % % % % % EBITDA % % GAOHE OPERATIONAL UPDATES Stable production with continued focus on safety HEBI OPERATIONAL UPDATES Lower production QoQ due to mining panel hit fault zone and cutting too much rock. Continue to manage gas drainage and to improve development rate MONGOLIA PROJECTS UPDATES Tsant Uul Collaborate with pyrolysis vendors and oil upgrading vendors to add more value to tar oil and char Unst Khudag and Altai Nuurs Preliminary feasibility study for UK coal conversion Received MRPAM 1 approval of Feasibility Study for AN Coal Fired Power Plant Received approval DEIA 2 report for AN Coal Fired Power Plant from MEGD 3 Note: 1 Mineral Resources and Petroleum Authority of Mongolia, 2 Detail Environmental Impact Assessment, 3 Ministry of Environment and Green Development 31

32 1 3 5 Strategic Review 2 Financial Summary 4 6 Energy Resources Coal Gas Energy Generation Energy Technology Key Takeaways 32

33 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 U.S. gas market update AVERAGE HENRY HUB PRICE AS OF 14 FEB-19 U.S. TOTAL NATURAL GAS PRODUCTION CONSUMPTION Unit: US$/MMBTU 5.00 Unit: Bcf/d 110 Forecast average $3.07 $ Feb Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Average Henry Hub price FY2018 was US$3.07 per MMBtu due to concern on lower than normal US gas inventories, especially in 4Q18 Looking ahead to 2019, production growth still sets the stage for a relatively range-bound price forecast which EIA expects that the production should increase to 90 Bcf/d. However the outlook on storage inventories, LNG exports, and power burns will drive periodic market volatility as they move out of sync with expected production increases. U.S. STORAGE LEVEL Unit: Bcf Production Consumption Forecast Storage Low High Source: EIA 33

34 Gas business 4Q18 performance and FY2018 Revenue increased significantly in 4Q18 as positive momentum of Henry Hub Price. Portfolio EBITDA FY2018 reached US$101 M from strong selling price through the year and solid contribution from operating wells SALES VOLUMES Unit: Bcf 1 TOTAL REALIZED REVENUE Unit: US$M EBITDA Unit: US$M Total Midstream and other Upstream Q18 4Q Q18 4Q Q18 4Q Note: 1 Bcf = Billion cubic feet 34

35 1 3 Strategic review 2 Financial summary Energy Resources Coal Gas Energy Generation Energy Technology Key takeaways 35

36 Banpu Power 4Q18: conventional power THAILAND BLCP Completed unit 2 EMJ activities ahead of planned and resume normal operation with EAF for 2018 reach 89% EAF**of 4Q18 reported at 69% resulted from the planned maintenance of unit 2 EBITDA of THB 0.6 Bn, -6% YoY and -64% QoQ BLCP sold electricity outside CAH for 580 hrs, reduce impact from EMJ activity LAOS Hongsa Achieve EAF at 89% in 4Q18, reflecting successful implementation of reliability improvement program EAF reported at 89%, +5% improvement QoQ though underwent planned maintenance for 2 weeks EBITDA of THB 2.9 Bn, -12% QoQ, due to higher investment for plant improvement program. Profit contribution of THB 0.7 Bn, +53% YoY and -9% QoQ CHINA China CHP Higher demand during winter resulted in better performance QoQ despite continued plant optimization during high coal cost environment EBITDA of RMB 79 M improve 259% QoQ from higher demand of both electricity and steam SLG Construction progress as planned with target COD by end early 2020 Note: *EMJ = Extended Major Overhual, ** Equivalent Availability Factor (EAF) is a percentage and measures of the potential amount of energy that could be produced by the unit after all planned and unplanned losses are removed 36

37 Banpu Power 4Q18: renewable power 80 MW CHINA China Solar Lower irradiation during winter resulted in lower electricity generation, stable result compared to previous year Average capacity factor reported at 12.2%, -4% QoQ Power sold down by 25% QoQ Reported revenue of RMB 31 M, -23% QoQ JAPAN Japan Solar Lower capacity factor during winter and unfavorable weather conditions, increasing snowy days result in lower electricity sold Consolidating large snow area projects which are Mukawa in 3Q18 and Nari Aizu in 4Q18 therefore reflect in average capacity factor of 9.2%, or reduce by -6% QoQ VIETNAM Vietnam Wind Start Feasibility study of phase 1 of 30 MW out of total 80 MW Established office in Vietnam with professionals for ongoing business activities and project development Started Feasibility study of phase 1 with 100 meter measuring tower Expect to complete study in March 2019 In process for technology selection 37

38 1 3 Strategic Review 2 Financial Summary Energy Resources Coal Gas Energy Generation Energy Technology Key Takeaways 38

39 Banpu CTO OTHMAN ELKHOMRI Chief Technology Officer Banpu Innovation & Ventures TECHNOLOGY DEVELOPMENT EXPERIENCE AUTONOMOUS FLYING VEHICLE In charge of technology development activities across Banpu group Heads up the new 'Banpu Innovation & Ventures Joined Banpu in 2017 from Silicon Valley where he was instrumental in development of disruptive technologies for top unicorns and other stealth mode start-ups Pre-Silicon Valley: o Eaton: e-mobility architecture and powertrain system development o Moog: flight simulator technology o Electrodynamics Associates: airborne electromechanical energy conversion and motion control systems in collaboration with MIT Magnetic Lab Bachelors in Electrical Engineering and Masters in Power Electronics, Univ. of Central Florida AIRBORNE ENERGY CONVERSION SYSTEM E-MOBILITY SURGICAL ROBOTS FLIGHT SIMULATION 39

40 BANPU INNOVATION & VENTURES BANPU PLC - CORPORATE Banpu Innovation & Ventures ( BIV ) OBJECTIVES START-UP CO-CREATION PLAN FOR 2019 Develop cutting edge technologies and fast track them to value-creating businesses for Banpu or spin-out/divest Innovation lab: R&D, corporate venture capital, and start-up co-creation Banpu BU technology roadmaps and solutions START-UPS INDIVIDUALS INSTITUTES CORPORATES OUTSIDE BANPU Spin-Out? Co-creation! E-MOBILITY AS A SERVICE BLOCKCHAIN DIGITAL MINING ENERGY SYSTEMS Spin-In? ECOSYSTEM Innovation thesis Map portfolio Co-creation model Framework INSIDE BANPU CURRENT BUSINESSES NEW BUSINESSES Developing Digital Mining capabilities BANPU CO-CREATION SPACE ECOSYSTEM ALIGNMENT 40

41 BPIN-BIV partnership with Japan EV company FOMM CORPORATION Japan s leading close-range mobility EV developer FOMM EV FEATURES Battery cloud system Battery health and preventive maintenance services World s smallest class 4-seater electric vehicle: High space utilization efficiency Float-driven function: Equipped with flood countermeasure function to float on water BPIN-FOMM-BIV INVESTMENT COLLABORATION BPIN subsidiary has acquired 21.5% shareholding in FOMM for US$20 M FOMM will use Durapower lithium-ion batteries (BPIN 47.7%*) BIV-FOMM PARTNERSHIP BIV collaboration partnership agreement with FOMM: Size: 2,585 1,295 1,560 (mm) 4 persons seating capacity Cooling system: State-of-the-art power cooling system R&D Commercialization Virtual Power Plant (VPP) Micro grid systems Grid/Home Energy Balancing and Trading Note: *BPIN acquired 44.8% in Durapower Holdings in March

42 BPIN partnership with Rugby school: smart campus BPIN delivers comprehensive clean energy and efficient Smart Solutions to push the school towards becoming a Smart Campus providing Smart City Solution services ranging from system design, installation of solar power system and smart solutions, and maintenance PHASE 1 BPIN has installed c.1,450 kw solar rooftop systems for school buildings and walk ways PHASE 2 Project detail for phase 2 includes: Solar rooftop system School buildings and walk ways Solar rooftop system for new buildings Solar street lights for outdoor lighting Energy storage and energy management system Energy learning center 42

43 1 3 Strategic Review 2 Financial Summary Energy Resources Coal Gas Energy Generation Energy Technology Key Takeaways 43

44 Key takeaways 2018 US$378 M NET PROFIT FROM OPERATIONS US$1,178 M GROUP EBITDA COAL EBITDA REMAINS STRONG GAS EBITDA INCREASES >4X Adjusted net profit from operations (before FX and other non-recurring items) remained solid YoY Consolidated EBITDA +22% YoY, driven by strong coal and gas prices and higher sales volumes US$895 M Coal EBITDA +13% YoY; overall ASP increased from strong coal price recovery US$101 M Gas EBITDA; led by higher volume and selling price improvement HONGSA AND BLCP: STABLE PERFORMANCE RENEWABLE CAPACITY >50% TARGET 2025 BANPU INFINERGY: STRONGER INTEGRATION BIV LAUNCH FOR LONG TERM GROWTH Hongsa and BLCP achieved >87% EAF; maintained plant stability and reliability despite planned maintenance Total 465 MW committed renewable power capacity; +80 MW first wind project in Vietnam Strategic investments in energy storage systems and electric vehicles to strengthen integration within smart energy business Banpu Innovation and Ventures to develop new value-creating businesses through cutting edge technologies Note: Numbers are represented on equity basis 44

45 Integration and synergy value 'The whole is greater than the sum of its parts!'* ARISTOTLE *Attributed to Aristotle, source: Aristotle, Metaphysics 8.6 [=1045a]: "Many things have a plurality of parts and are not merely a complete aggregate but instead some kind of whole beyond its parts" 45

46 APPENDIX 46

47 Regional thermal coal market: 2018 vs RUSSIA EUROPE USA CHINA +31 OTHER N. ASIA -2 OTHERS -5 INDIA +23 Unit: Mt COLOMBIA -3 SOUTH AFRICA -2 INDONESIA +8 AUSTRALIA OTHERS * SUPPLY DEMAND ATLANTIC PACIFIC * Demand in other countries driven by Vietnam, Malaysia, Thailand, Pakistan, Egypt and Morocco. (across both Pacific and Atlantic) 47

48 EXPORT IMPORT China: import control driving market CHINA THERMAL COAL IMPORTS/EXPORTS* Unit: Mt Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Sources: Banpu MS&L QUARTERLY (ANNUALIZED) CHINA DOMESTIC COAL PRICES Unit: RMB/t Note: * includes Note: * includes lignite but lignite excludes but excludes anthracite anthracite imports/exports imports/exports Source: Source: 10 April February ANNUAL > 5,800 kcal/kg > 5,500 kcal/kg > 5,000 kcal/kg Q18 Weak demand due to slowing economy, a warmerthan-expected winter, widespread anti-pollution measures and improving domestic supply. Coal inventories at coastal power plants were extremely high. Government introduced more stringent restrictions to keep 2018 imports in line with 2017 levels, which led to a significant drop of import in Q4. International coal price for low-energy coal dropped significantly after Chinese import restrictions took effect. The spread between high-energy coal price and lowenergy coal price increased to about 40% in absolute terms at the end of the year. Some Indonesian producers of low-energy coal were at or below marginal costs Outlook Import is expected to overshoot in short-term due to low prices for low-energy coals. Mild winter and Chinese New Year will lead to lower demand in Q1. Domestic supply is improving but mine accident leads to stricter implementation of safety standard which may disrupt supply. Chinese government intervention will be a key driver for 2019 coal market. 48

49 India: reliance on imports grew INDIA THERMAL COAL IMPORTS* Unit: Mt QUARTERLY (ANNUALIZED) Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 ANNUAL Q18 Improved industrial performance and the push of electrification drove electricity demand Power sector reforms included obligating 24-7 power supply, penalizing power purchase agreement violations, etc. boosted coal demand Slowed down domestic coal production forced Coal India (CIL) to prioritize its supply to power sector left non-power sector to rely on imports. Continued poor domestic delivery and low rail car wagon availability kept low inventory levels at power plant coal stocks. Government tighten rules on petroleum coke consumption in the industrial sector led to highenergy off-spec thermal coal imports from the US. Outlook GDP and industrial growth will drive electricity generation growth in 2019 but domestic supply continues to face challenges in meeting demand growth. After Supreme Court ruling allowing power companies in Gujarat state to raise tariffs to cover increased imported coal costs, we expect higher coal imports in Since this is an election year, the government will aim for regular power supply to all households. Note: * includes lignite grade imports Sources:: Commodity Insights, Banpu MS&L 49

50 Coal quarterly output summary AUSTRALIA OPERATIONS: COAL OUTPUT (MT) ROM OUTPUT ON EQUITY BASIS Mines CV (kcal/kg)* 4Q17 3Q18 4Q18 1Q19e Western operations Springvale 6, Clarence 6, Airly 6, Northern operations Mandalong 6, Myuna 6, Total Australia coal INDONESIA OPERATIONS: COAL OUTPUT (MT) ROM OUTPUT ON 100% BASIS Mines CV (kcal/kg)* 4Q17 3Q18 4Q18 1Q19e Output (Mt) Strip ratios (bcm/t) Output (Mt) Strip ratios (bcm/t) Output (Mt) Strip ratios (bcm/t) Output (Mt) Strip ratios (bcm/t) Indominco West block x x ,950 6,250 Indominco East block x x Trubaindo x x ,550 6,700 Bharinto x x Kitadin-Embalut 5, x x Jorong 5, x x Total Indonesia coal x x CHINA OPERATIONS: COAL OUTPUT (MT) ROM OUTPUT ON 100% BASIS Mines CV (kcal/kg)* 4Q17 3Q18 4Q18 1Q19e Gaohe Hebi Total China coal Note: *CV figures are air-dried basis 50

51 ASP NEX* ASP NEX* Banpu group Q-Q revenue analysis: coal INDONESIA COAL (ITM) AUSTRALIA COAL (CENTENNIAL) CHINA COAL Domestic Export SALES (Mt) 100% basis Domestic Export SALES (Mt) Equity basis Domestic Export SALES (Mt) Equity basis Q17 1Q18 2Q18 3Q18 4Q Q17 1Q18 2Q18 3Q18 4Q Q17 1Q18 2Q18 3Q18 4Q18 AVERAGE SELLING PRICE (US$/t) AVERAGE SELLING PRICE (A$/t) AVERAGE SELLING PRICE (US$/t) excl. VAT Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 REVENUE (US$M) 100% basis REVENUE (A$M) Equity basis REVENUE (US$M) Equity basis Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 2Q17 1Q18 2Q18 3Q18 4Q18 Note: ITM and Centennial revenues are consolidated in Banpu income statement. Australia Coal Third party coal sales included. Note: Hebi and Gaohe revenues are not consolidated in Banpu income statement. *NEX = Newcastle Export Index (formerly Barlow Jonker Index or BJI) It is relevant but not linked to China Coal s ASP 51

52 Indonesia coal gross margin 4Q18 : 39% USD million % 43% 39% 39% 44% 31% 51% 54% 61% 64 48% % 50% % 24% 15% 52% % 63% 48% Indominco Trubaindo Bharinto Jorong Kitadin Indonesia Coal 52

53 Gas business: 2018 indicative guidance ILLUSTRATIVE AND INDICATIVE ONLY UNIT GUIDANCE (US$/ MCF) COMMENTS REVENUE Average differential to Henry Hub Pipeline revenue k $0.5-$0.8 Difference selling points and (NYMEX basis) and Henry Hub $0.05-$0.15 Applicable to Chaffee Corners volume only COSTS G&C costs $ Gathering and compression costs (to intrastate pipelines) Lease operating costs $0.2-$0.3 Main component of operating costs G&A $0.25-$0.35 General and administrative costs DD&A $ Depreciation, depletion and amortization Taxes 21% Currently benefit from tax shield due to accelerated DD&A CURRENT PORTFOLIO (2018) Reserves (Bcf) 1,250 Production (MMcfd)

54 CORPORATE EVENTS EXTERNAL EVENTS Key external and corporate events DIRECT INDIRECT Argentina and Turkey currency cries Indonesia rupiah hit its weakest in last 3 years BoT maintains policy rate at 1.5% Fed increased policy rate to 2%- 2.25% range US-China agreed to 90- day postpone of any new tariffs in trade war following G20 summit China s NDRC imposed further port restrictions on coal to support domestic supply until end of 2018 BoT increased policy rate to 1.75% Fed increased policy rate to 2.25%-2.50% range 3Q18 4Q18 Banpu Infinergy and Phuket City to jointly develop Phuket Smart City TRIS rating assigned A+ rating to US$50 M senior unsecured debt 2Q18 results presentation and launch of new Banpu brand Banpu and BPP dividend XD date 3Q18 results presentation 54

55 THB & O THER ID R AUD NET Fx impact analysis guidance on P&L CURRENCY EXPOSURE NPAT IMPACT 4Q18 (US$M) APPROXIMATE FX EXPOSURE (US$M) NPAT 5% SENSITIVITY 1Q19 (US$M) NET LIABILITY NET ASSET Assuming 5% depreciation of local currencies against USD BOT forecast growth 4.0% in 2019 Banpu: THB bond and others THB & OTHER 45 ITMG: IDR asset and liabilities IDR BI forecast 2019 growth lower range of % CEY: USD asset AUD RBA forecast growth 3.5% 0.2 Net 2.4 NET

56 Banpu group EBITDA breakdown USD million & holding companies Q18 2Q18 3Q18 4Q18 100% AUD mil % AACI OVERHEAD % U.S. SHALE GAS Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 All figures are 100% basis except for Centennial which is equity basis Indominco Q18 2Q18 3Q18 4Q18 Trubaindo Q18 2Q18 3Q18 4Q18 45% 40% 104 Gaohe 12 6 Hebi Q18 2Q18 3Q18 4Q18-3 1Q18 2Q18 3Q18 4Q18 50% 40% BLCP Q18 2Q18 3Q18 4Q18 HONGSA Q18 2Q18 3Q18 4Q18 Bharinto BIC* Q18 2Q18 3Q18 4Q18 Kitadin Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 70% Q18 2Q18 3Q18 4Q18 Luannan Zhengding Zouping Jorong 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q Q18 2Q18 3Q18 4Q18 Consolidated NOT consolidated Note: all ownership 100% unless otherwise shown *BIC = Banpu Investment China 56

57 Banpu group net debt breakdown USD million 3,430 3,508 3,456 3,407 Consolidated NOT consolidated & holding companies Net debt Net cash 1Q18 2Q18 3Q18 4Q18 100% AUSTRALIA COAL 68% INDONESIA COAL 79% POWER AUD mil Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 45% CHINA COAL 40% 100% MONGOLIA COAL 50% THAILAND POWER 40% LAOS POWER 100% CHINA POWER Gaohe Hebi BLCP HONGSA BIC* 2,21 8 2,08 9 2,110 2, Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18 Note: all ownership 100% unless otherwise shown *BIC = Banpu Investment China 57

58 Banpu consolidated : operating profit USD million YoY% Total sales revenues* 3,481 2,877 21% Sales revenue Coal 3,020 2,629 15% Sales revenue Gas % Sales revenue Power % Cost of sales (2,253) (1,767) Gross Profit* 1,228 1,110 11% Gross profit Coal 1,103 1,047 5% Gross profit Gas % Gross profit Power % GPM 35% 39% GPM Coal 37% 40% GPM Gas 47% 36% GPM Power 21% 24% Note: *including other businesses 58

59 Banpu consolidated : operating profit USD million YoY% Gross Profit 1,228 1,110 11% GPM 35% 39% SG&A (343) (291) Royalty (291) (268) Income from associates Other income and Dividend Mining property (40) (39) EBIT % EBIT Coal % EBIT Gas % EBIT Power % EBITDA 1, % EBITDA Coal % EBITDA Gas % EBITDA Power % 59

60 Banpu consolidated : net profit USD million YoY% EBIT % Interest expenses (170) (135) Financial expenses (5) (5) Income tax (core business) (121) (117) Minorities (109) (110) Net profit before extra items % Non-recurring items* (91) (48) Gain (Loss) on Derivatives Transactions (63) (21) Income tax (non - core business) (23) (21) Deferred tax income (expenses) (46) 4 Net profit before FX % FX translation (19) (76) Net Profit % EPS (US$/share) Note: *income from non-core assets and other non-operating expenses 60

61 Banpu consolidated : operating profit USD million 4Q18 3Q18 4Q17 QoQ% YoY% Total sales revenues* 1, % 13% Sales revenue Coal % 8% Sales revenue Gas % 221% Sales revenue Power % -9% Cost of sales (655) (609) (541) Gross Profit* % -1% Gross profit Coal % -6% Gross profit Gas % 455% Gross profit Power % -24% GPM 35% 37% 39% GPM Coal 35% 39% 41% GPM Gas 53% 52% 31% GPM Power 23% 16% 27% Note: * including other businesses 61

62 Banpu consolidated : operating profit USD million 4Q18 3Q18 4Q17 QoQ% YoY% Gross Profit % -1% GPM 35% 37% 39% SG&A (99) (84) (87) Royalty (85) (84) (82) Income from associates Other income and Dividend Mining property (12) (8) (7) EBIT % -5% EBIT Coal % -18% EBIT Gas % na. EBIT Power % 17% EBITDA % 28% EBITDA Coal % 18% EBITDA Gas % 437% EBITDA Power % 18% 62

63 Banpu consolidated : net profit USD million 4Q18 3Q18 4Q17 QoQ% YoY% EBIT % -5% Interest expenses (44) (43) (36) Financial expenses (0) (2) (2) Income tax (core business) (30) (43) (34) Minorities (23) (36) (30) Net profit before extra items % -5% Non-recurring items* (17) (3) (20) Gain (Loss) on Derivatives Transactions (28) (29) (2) Income tax (non - core business) (7) (0) (7) Deferred tax income (expenses) (19) 7 (4) Net profit before FX % -51% FX translation 2 (25) (22) Net Profit % -32% EPS (US$/share) Note: * income from non-core assets and other non-operating expenses 63

64 Centennial : Income statement USD million YoY% Sales volume (Mt) % Sales revenue 1, % Cost of Sales (768.3) (581.9) Gross Profit % GPM 26% 34% SG&A (94.4) (105.8) Royalty (56.3) (55.6) Other income Other expenses - - EBIT % Interest expenses (23.6) (24.5) Financial expenses (2.5) (2.0) Gain (loss) on exchage rate 3.0 (3.4) Gain (loss) on derivative (17.3) (29.0) Corporate income tax - - Deferred tax income (27.6) (24.8) Net Profit % 64

65 Centennial : Income statement USD million 4Q18 3Q18 4Q17 QoQ% YoY% Sales volume (Mt) % 6% Sales revenue % 11% Cost of Sales (209.1) (200.4) (166.7) Gross Profit % -16% GPM SG&A (24.7) (16.4) (28.3) Royalty (15.6) (13.9) (15.9) Other income Other expenses EBIT % -16% Interest expenses (5.2) (6.1) (5.9) Financial expenses 1.2 (1.2) (0.8) Gain (loss) on exchage rate (0.1) Gain (loss) on derivative (5.3) (9.3) (6.1) Corporate income tax Deferred tax income (10.0) (1.1) (11.1) Net Profit % -14% 65

66 Australia coal: quarterly equity rom output Total equity ROM (Mt) ACTUAL PLANNED (INDICATIVE ONLY) Q18 2Q18 3Q18 4Q18 1Q19e 2Q19e 3Q19e 4Q19e WESTERN NORTHERN e 3 wks 3 wks 5 wks 2 wks 2 wks 1 wk 5 wks 5 wks Normal production Bolt-up/commissioning LW relocation Note: 1 Bar width is indicative of the equity production contributions to Centennial 2 Production generally responds to the timing of longwall changeovers (i.e. lower production results during a longwall changeover period) 3 Angus Place was put on care and maintenance from February