banpu: 3q16 results · banpu: 3q16 results investor and analyst update 15th november 2016. 2....

Banpu: 3Q16 results

Investor and analyst update

15th November 2016

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 Banpuparticipates 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

2.2 Australia operations

Coal business

Investor focus

2

1

2.3 Indonesia operations

2.4 China, Mongolia operations

Gas business4

Financial summary5

Power business

2.1 Coal market

3

Takeaways6

4

Banpu Power IPO: 28th October 2016

IPO ALLOCATION*

Banpu

shareholders32%

20%

22%

26%

International

investors

Retail

Local

institutional

5

Received 93% acceptance from Banpu shareholders

Raised $389M for: debt repayment $334M, business expansion $28M, working capital $9M and other expenses 1 $18M

Well-diversified investor base with international investors

Strong investor support, THB 21/sh top-end of IPO price range

Thank you for your support

Note: *28th October 20161 Including legal fees, underwriting fees and financial advisory fees

Banpu Power IPO: delivering on our promise

Unleashing value

6

Capital for power business growth

Strengthen Banpucapital structure

Power business accountability

Realized market cap. of US$2.36bn* on 1st day of trading

1

BPP will provide capital for future

growth options

Recapitalized balance sheet and reduced

gearing*

Separate disclosure, separate analyst

presentation starting next quarter

3

2

4

*Consolidated net debt to equity

6

*At closing price THB 27.25/share

Coal: leaner, stronger

PRODUCTIVITY / OPERATIONAL

IMPROVEMENT

(2013 – Present)

COST RATIONALIZATION

(2013 – Present)

Own mining contractor

Bharinto ramp-up

Embalut and Jorong reserves optimization

Logistics, infrastructure improvement

34% cost reduction: from US$65/t in 2013 to US$43/t in 2016*

Stripping ratio optimization

Contractor management and negotiation

Step Change Productivity

Portfolio optimization

Record production: Mandalong, Clarence

New LW at Springvale

Production cost from US$50/t in 2013 to US$36/t in 2016*

Logistics optimization

Mining bolter

New railspur

Singapore office

China/

Mongolia Coal

MS&L 1

Note: *2016 target1 Marketing, sales & logistics

Infrastructure & logistics improvement to invigorate productivity and maximize

benefits from coal prices upturn

Continuous cost reduction efforts through process

optimization and stakeholder management

7

Note: 1 As of 10 November 2016

Supply drivers – short term, seasonal

Supply drivers - structural

Demand drivers – short term, seasonal

Coal: tight supply in thermal market

8

Supply

restrictions

in SA, Russia

& Colombia

Delayed

reaction from

production

cuts

Thermal coal

switch back to

metallurgical

use

Cost-cutting

to curtail quick

production

increases in

every country

Newcastle

Coal Index 1

Unit: US$/t

160

140

120

100

60

80

2016

+c.130%

• Highest since 2013• Tohoku Electric

Power and Glencore settled contract at US$94.75/t

Unplanned

replacement

purchases

China’s

capacity

removal and

production

caps

Cutbacks by

major

exporters and

market

Accelerated

catch-up

purchases

from low

inventory

Prolonged

wet season

in Indonesia

Winter

season2011 2012 2013 2014 2015

Unsold tonnage, different index Auger mining Improvement of hauling road

Additional export of 1Mt in 2017 compared to 2016

Increase clean coal to metallurgical market

Coal: strategic options

China/

Mongolia Coal

MS&L 1

Development of Mongolian assets

Portfolio optimization

− New tonnage from projects advancements (i.e. Airly stage 2, Neubecks)

− Resumption of Newstan and Angus Place

Reoptimize mine plan / reserves Additional exploration, development Reserves acquisition

SHORT-TERM OPTIONS MEDIUM TO LONG-TERM OPTIONS

Note: 1 Marketing, sales & logistics9

BANPU GROUP

“Choose & Focus”

CHOOSE flexibly

FOCUS on margins & delivery predictability

Adjust coal product to maximize average selling price. Maintain focus on productivity improvement and cost rationalization


Coal business

Investor focus

2

1



Gas business4

Financial summary5

Power business

2.1 Coal market

3

10

Takeaways6

OTHERS

CHINA

EUROPE

OTHER

N.ASIA

INDIA

Note: Includes anthracite and lignite

Source: EIA International Energy Outlook 2016

Global demand trends: 2016 vs 2015

+13

-19

-7

-14

+8

+35

GLOBAL

Supply rationalization created short supply, rising domestic coal prices

Weak power demand, low power plant utilization, increased domestic coal production and high coal prices hampered coal imports

Low UK imports; gas-switching; coal plant retirements and increased renewable energy

Vietnam, Philippines and Malaysia expected to add c.11Mt of demand

-

Slow economic growth, high renewable energy and plant maintenance lower coal burn

GEOGRAPHYCHANGE

2015-16 (MT.)COMMENTS

11

Continued rainfall and increased domestic demand limited export growth

S.AFRICA

INDONESIA

RUSSIA

COLOMBIA

Bad weather and maintenance tighten supplyAUSTRALIA

Rising domestic demand and limited rail capacity restrict export growth

Improve domestic demand, limited volume for export

GLOBAL -

-1

+8

+7

-2

-10

+1

-8

-11

USA

OTHERS

Weather condition and social and labour issues interrupted supply from time to time

Shortage coal wagon limited spot availability and tighten supply

Note: includes anthracite and lignite

Source: EIA International Energy Outlook 2016

Uncertainty long term demand caused producers to rethink about growing mining capacity

GEOGRAPHYCHANGE

2015-16 (MT.)COMMENTS

12

Global supply trends: 2016 vs 2015

Global coal market trends 2016 vs. 2015

EUROPEUSA

-10+8

-19

-2

SOUTH

AFRICA

+35

-14

-7

+13

-11

-1

INDIA

COLOMBIA

CHINA

INDONESIA

AUSTRALIA

OTHER N. ASIA

OTHERS

PACIFIC

+27

-5-19

-3

ATLANTIC

SUPPLY

DEMAND

Unit: Mt

+1OTHERS

+7

RUSSIA

13

250

350

450

550

650

750

2014 2015 2016

> 5,800 kcal/kg

> 5,500 kcal/kg

> 5,000 kcal/kg

704

678

600

Note: *includes anthracite and lignite imports/exports

Source: www.sxcoal.com/cn 9 November 2016

CHINA THERMAL COAL IMPORTS/EXPORTS*

Sources: Banpu MS&L estimates

Unit: Mt YTD China’s imports surpassed 2015 levels.

Supply cut policy resulted in significant price spikes.

Government eased capacity-reduction target in the efforts to stabilize coal price

8 Sep: allow 74 mines to increase production

23 Sep: allow 791 mines to lift production between 276 and 330 working days per year in Q4

but have been ineffective as spot prices continue to rise .

Truck haulage cost increased following the new truck loading policy – cut 6 tons freight volume per truck.

Imports are likely to remain relatively high in Q4 as winter demand step in and production increased will take time.

China likely to continue capacity -reduction policy

China thermal coal market review

CHINA DOMESTIC COAL PRICES

Unit: RMB/t

QUARTERLY (ANNUALIZED) ANNUALLY

IMPO

RT

EX

PO

RT

201153 160 167 145 148

176221

1Q15

55 2

3Q14

199

4Q14

4 64

2Q16 3Q16

10

4Q15

6

3Q152Q15

5

1Q16

156191

2016e

8

2015

4

2014

5

229

2014 2015 2016e3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

2014 2015 2016

14

INDIA THERMAL COAL IMPORTS*

Unit: Mt India still faces a surplus supply situation and high stocks in domestic coal market due to weak demand and high domestic coal production

Expected higher coal burn inQ4 due to low hydro as monsoon passed

India added 800 MW new coal-fired power generation capacity in July-August but capacity utilization remains low.

Slow power distribution reform means power off-take will remain low

Government continues pushing state-owned coal-fired power plants to use only domestic coal.

High coal prices will impact coal imports but private coal-fired power plants in coastal locations and cement industry will continue using imported coal.

Note: *includes lignite grade importsSources:: HDR, Banpu MS&L Estimates

India thermal coal market review

QUARTERLY (ANNUALIZED) ANNUALLY

168

197

171180

142

161149

171

134

2Q15 4Q15 2Q161Q163Q15 3Q161Q154Q143Q14

163 164150

2016e20152014

15

2014 2015 2016e3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Coal prices outlook: sustainability of increase

SUPPLY SEASONALITY

constrains supply increase in

Indonesia, Russia and Australia

WINTER SEASON

increases electricity

demand in India

and China

SHORT-TERM IMPACT MEDIUM TO LONG-TERM IMPACT

SUPPLY DELAYS

of new mine infrastructure

construction ( >1 year)

SMALL PRICE SPREADS

between premium and off-spec

coals are unlikely to induce new

expansion in premium coal

CHINA’S POLICY

of structural adjustment

will remain

COMMERCIALIZATION

of Chinese goods production

supports LT seaborne traded

coal demand

STEEL DEMAND

leads to sales of

thermal coal into

metallurgical coal market

HIGH SEA FREIGHTS

constrain sales of Atlantic

basin coals into

Asia-Pacific market

Demand drivers

Supply drivers

16

Notes:

* Excluding Mongolia coal

THAILAND

HK

CHINA

TAIWAN

ITALY

7.0

0.1

INDIA

2.9 Mt

2.3 Mt

11.1 Mt

0.5 Mt 2.4 Mt

0.1 Mt

6.7 Mt

2.2 Mt

JAPAN

5.4

MALAYSIA

0.3 Mt

INDONESIA

3.7 Mt PHILIPPINES

AUSTRALIA

8.7 Mt

OTHERS0.51.2

1.7 Mt

Indonesia coal

Australia coal

China coal

Japan, 15%

Korea, 5%

Taiwan, 5%

China , 25%Australia,

19%

SE Asia

19%

India

6%

Others,

6%

Notes:* Sales from Indonesia are included on 100% basis, sales from Australia and

China are included on equity basis

** Illustrative target

*** Include coal sales from domestic production in China

S KOREA

Banpu group coal sales 2016e

45.0

Mt*****

COAL SALES* SOURCE – DESTINATION ANALYSIS 2016 GLOBAL COAL SALES* 2016 BY REGION

1.5

0.8

2.3 Mt

1.30.91.5

4.0

17

Indicative 2016 Banpu coal sales pricing status

Fixed

95%

4%1%

Fixed

Indexed

27.1 Mt*

Unsold

52%

48%

33%

2%1%

Indexed

Fixed

Export

Domestic:

long-term export

parity

13.7 Mt*

Domestic:

legacy

Unpriced

*Target sales

AUSTRALIA COAL INDONESIA COAL

*Target sales

18

Note: * Included post shipment price adjustments as well as traded coal

** The Newcastle Export Index (previously known as the Barlow Jonker Index – BJI)

3Q16 ASP firmed according to general

bullish market driven by Chinese

production cap policy as well as supply

tightness

– ITM ASP: US$51.35/t* (+11% QoQ)

– CEY ASP: A$67.00/t* (+8% QoQ)

– NEX (Nov 10, 2016)**: US$112.9/t

NEX benchmark prices got a very strong

gain during second half of Q3 and

reached a four and a half year high level

during Oct 16

Unit: US$/t

Banpu ASPs vs thermal coal benchmark prices

BANPU ASP VS BENCHMARK PRICES COMMENTS

19

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Monthly NEX

Quarterly ITM ASP

Quarterly Centennial ASP

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


Coal business

Investor focus

2

1



Gas business4

Financial summary5

Power business

2.1 Coal market

3

20

Takeaways6

Australia: operational and financial summary

Wollongong

PKCT

Airly

NeubeckAngus

Place

Clarence

Springvale

Mandalong Myuna

Newstan

Sydney

PWCS

Newcastle

Inglenook

Project

Underground mine

Port

Power station

RoadRail

C&M 4

WESTERN OPERATIONS:

2016e: 5.5 Mt

NORTHERN OPERATIONS:

2016e: 7.4 Mt

NCIG

2016e output: 12.9 Mt Production

Equity ROM: 3.2 Mt (3Q15: 3.2 Mt).

Output impacted by poor conditions at Myuna and an extended longwall changeover at Springvale – gateroad conditions and regulatory changes to ventilation requirements.

Continued productivity and efficiency improvements, with two further output records achieved (Airly and Clarence).

ASP

3Q16: ~A$65/t vs 2Q16: ~A$59/t – with the ASP benefitting from a new export-parity priced domestic contract (replacing a lower priced legacy contract) and improving export prices.

Sales volume up 6% YoY and 19% QoQ

Domestic: export split 65%:35% (2015: 62%:38%).

Note 1: Mannering placed on “Care & Maintenance” November 2012 – benefitting

from new production sharing arrangement with neighbouring mine.

Note 2: NCIG = Newcastle Coal Infrastructure Group; PWCS = Port Waratah Coal

Services; PKCT = Port Kembla Coal Terminal.

Note 3: Newstan (1 August 2014) and Angus Place (February 2015 ) placed on care &

maintenance.

3Q16 YoY QoQ

Sales revenue A$236 M ▲12% ▲32%

EBITDA A$34 M ▼2% ▼1%

PBT A$(9) M ▼5% ▼23%

NPAT A$(6) M ▼1% ▼13%

Gearing(Net debt to net debt

+ book value of equity)

39%

2016e OUTPUT (ROM EQUITY BASIS) KEY UPDATES

FINANCIAL SUMMARY

21

MANDALONG

Australia: northern operations quarterly output

COAL OUTPUT (Mt)1

CV: 6,700 kcal/kg2

Mandalong: Production up 34% QoQ, remains on target at 6Mtpa. Currently concluding a LW changeover. YTD production is 6% lower

Myuna: Production down 11% QoQ, and 28% Y0Y, due to difficult mining conditions. In response to prevailing conditions:

– Implemented a shift roster change for productivity (increasing operating time to compensate for increasing travel times);

– First of the two proposed super panels introduced into the Fassifern seam in late August, reaching full production in September; and

– A second Super Panel is planned to be introduced shortly

Note: 1 ROM output on an equity basis

2 CV figures are air-dried basis

3 Longwall

LW3 MOVE SCHEDULE

3Q15 2Q16 3Q16 4Q16e 1Q17e

Mth 1

Mth 2

Mth 3

2

wks

2

wks

1.8

1.2

1.7

1.3

2Q163Q15 4Q16e3Q16

0.40.30.4 0.3

3Q16 4Q16e3Q15 2Q16

COAL OUTPUT (Mt)1

CV: 6,700 kcal/kg2

MYUNA COMMENTS

22

3Q15 2Q16 3Q16 4Q16e

3Q15 2Q16 3Q16 4Q16e

Australia: western operations quarterly output

COAL OUTPUT (Mt) 1

CV: 6,700 kcal/kg 2

Springvale: Production up 10% QoQ and 828% YoY from extended LW changeover due to gateroad conditions and regulatory changes. YTD production is 21% higher. On track for record year. While Court dismissed legal challenge to Springvale approval process, an appeal has been lodged. Hearing not expected until mid-2017.

Clarence: Production down 4% QoQ but up 13% YoY. Achieved daily production record. YTD production is 6% higher; Clarence on track for 2.9Mtpa

Airly: Production down 1% QoQ and 3% YoY – despite this, new monthly record achieved since re-opening in June 2014.

Note: 1 ROM output on an equity basis: Angus Place and Springvale 50%, Clarence 85% and Charbon 95%

2 CV figures are air-dried basis

3 Longwall

SPRINGVALE

COMMENTS

COAL OUTPUT (Mt) 1

CV: 6,700 kcal/kg 2

OTHER OPERATIONS

0.4

0.8

0.3

4Q16e3Q15 2Q16

0.0

3Q16

0.7 0.7 0.6 0.7

0.3 0.20.2

0.2

CLARENCE

3Q15 4Q16e3Q16

AIRLY

2Q16

3Q15 2Q16 3Q16 4Q16e 1Q17e

LW 3 MOVE SCHEDULE

Mth 1

Mth 2

Mth 3

12

wks

4

wks

5

wks

23

3Q15 2Q16 3Q16 4Q16e

Australia: operating costs

Continued focus on cost control and productivity, driven by step-change in productivity programme and increasing LW automation.

Productivity continues to improve, with daily production records at Airly and Clarence.

Remain on track for YoY reduction in unit costs.

3Q16 over 2Q16 cost increase due to:

Extended LW changeover at Springvale and ventilation regulatory changes;

Variable mining conditions at Clarence and Myuna.

Continued focus on reducing distribution costs and increasing efficiency of distribution chain.

Note: 1 These figures do not include selling, distribution and royalty costs; based on ‘sold’ production

2 Open-cut production ceased in CY2015

Unit: A$/t

2015 2016

0

5

10

15

20

25

30

35

40

45

50

55

2Q

Stores and supplies

General expense

3Q

54

Labor

Cash overhead

Repair and maintenance

49

Coal handling

& preparation

45

52

1Q

50

FY14

49

52

4Q

Depreciation

46

2Q FY16

48

FY15FY13 3Q

44

Open-cut 2

51

1Q

AVERAGE PRODUCTION COST 1 COMMENTS

24


Coal business

Investor focus

2

1



Gas business4

Financial summary5

Power business

2.1 Coal market

3

25

Takeaways6

Indonesia: operational and financial summary

East Kalimantan

Balikpapan

Palangkaraya

Banjarmasin

Central Kalimantan

South Kalimantan

Kitadin -Embalut0.9 Mt

Indominco16.0 Mt

Trubaindo5.8 Mt

Bharinto2.5 Mt

Jorong1.0 Mt

Jorong Port

Bontang Coal Terminal

Captive coal-

fired power project

2016 target: 26.2 Mt Indominco : 3Q16 production output was lower than

target due to rain affecting mine production.

Trubaindo: 3Q16 production according to target.

Bharinto : 3Q16 production output slightly lower than target due to higher rainfall at mine area.

Kitadin Embalut: 3Q16 production output was lower than target due to bad weather and sliding.

Jorong: 3Q16 production according to target.

Samarinda

PRODUCTION OUTPUT 2016 KEY UPDATES

FINANCIAL SUMMARY

Bunyut Port

26

Indonesia rainfall 2010 - 2016

27

3Q16 rainfall levels at most mines reached highest levels in 6 years since 2010, with September’s level up steeply

Despite lower than average rainfall in 1H16, Indominco’srainfall in 3Q16 was higher than expected, which impacts output

Trubaindo and Jorong achieved production record despite heavy rainfall. Indominco, Bharinto and Embalut yielded slightly lower-than-target production

Unit: Millimeter Unit: Millimeter

Unit: Millimeter Unit: Millimeter

INDOMINCO TRUBAINDO & BHARINTO

JORONG EMBALUT

0

50

100

150

200

250

300

350

400

450

500

0

100

200

300

400

500

600

0

50

100

150

200

250

300

350

400

450

500

0

50

100

150

200

250

300

350

400

450

500

2010–15 average rainfalls 2016 rainfalls 2010-15 rainfall range

0.3 0.3 0.2 0.3

Indonesia: quarterly output

CV: 5300 kcal/kg**

STRIP RATIOS (bcm/t)

4.6

13.8

Note: *Output figures are 100% basis

**CV figures are air-dried basis

JORO

NG

E B

LOCK

TD

MY

W B

LOCK

IND

OM

INCO

TD

MY

TRU

BAIN

DO

BH

ARIN

TO

TRU

BAIN

DO

BH

ARIN

TO

EM

BALU

TJO

RO

NG

EM

BALU

T

EAST

WEST

COAL OUTPUT (Mt)*

CV: 5950 - 6250 kcal/kg**COAL OUTPUT (Mt)*

CV: 6550 - 6700 kcal/kg**

COAL OUTPUT (Mt)*

CV: 5800 kcal/kg**

3Q15 2Q16 3Q16 4Q16e


3.8

14.4

11.4


2.7

7.8

9.0

2.0

17.7

7.1

8.4

6.8 7.9

4.3

2.2

13.4

8.3 8.0

5.5

5.0

13.9

2.4

12.1

7.2

10.5

7.6

5.7

16.9

0.3 0.3 0.1 0.2

2.93.5 3.3

3.8

0.3

0.50.4

0.6

0.6

3.84.0

3.7

4.4

2.01.4 1.6 1.6

0.7

0.60.6 0.8

INDOMINCO - BONTANG TRUBAINDO - BHARINTO EMBALUT - JORONG

28

3Q15 2Q16 3Q16 4Q16e

3Q15 2Q16 3Q16 4Q16e

3Q15 2Q16 3Q16 4Q16e

3Q15 2Q16 3Q16 4Q16e

3Q15 2Q16 3Q16 4Q16e

3Q15 2Q16 3Q16 4Q16e

Indonesia: total costs

INDICATIVE AVERAGE TOTAL COSTS COMMENTS

3Q16 cost slightly higher than 2Q16 mainly due to:

- Lower coal volume at Indominco and Embalutdue to higher rainfall

- Higher oil price from US$0.42/ltr to US$0.46/ltr

Continuous cost reductionefforts through process optimization such as overburden distance minimization, explosive cost reduction, contractor management and negotiation

Remain on track for a YoY reduction in unit costs

Note: * Repair and maintenance, salaries and allowances, etc.

0

5

10

15

20

25

30

35

40

45

50

55

60

65

Mining cost

43

4Q

48

FY14 FY163Q3Q2Q

59

FY13

42 42

FY15

46

1Q

62

Other production

cost*

1Q

505252

Depreciation &

amortisation

Coal handling

& preparation

44

2Q

SG&A expenses

Unit: US$/t

2015 2016

29


Coal business

Investor focus

2

1



Gas business4

Financial summary5

Power business

2.1 Coal market

3

30

Takeaways6

Hebi

China, Mongolia summary

1.92.5 2.8 2.3

3Q15 2Q16 3Q16 4Q16e

Summary 4Q15 1Q16 2Q16 3Q16

Sales

(Mt)2.2 1.9 2.4 2.1

ASP

(US$/t)41 37 41 50

Revenue

(US$M) ***91 69 96 104

COGS

(US$/t)42 36 38 36

EBITDA

(US$M)12 21 26 36

Gaohe

HEBI

1.2 Mt

GAOHE

10 Mt

Hebi

Underground working area improvements: enhance dust control in working areas; closely monitoring gas and CO2 in development areas adjacent to goaf 1 and increase safety management on gas control

Tsant Uul

Performed batch operations to confirm product specifications

Commercial-scale technical pre-feasibility study and market study

Unst Khudag and Altai Nuurs

Received MRAM 2 approval and coal mining licenses

Continuing water resource modeling and development

Preliminary feasibility for coal conversion and power facility scenarios incl. technical and market related studies

Unit: Mt ROM

Note: * Output figures are ROM output (100% basis)

** CV figures are air-dried basis

*** Exchange rate of 3Q16 is RMB 6.67/USD

0.3 0.3 0.2 0.3

3Q15 2Q16 3Q16 4Q16e

CHINA COAL 2016 PRODUCTION

3Q15 – 3Q16 CHINA COAL OUTPUT

GAOHE OPERATIONAL UPDATES HEBI OPERATIONAL UPDATES

31

Operation

BEIJING

Gaohe

3Q16 production up from 2Q16 due to good mining conditions, as well as Gaohebeing named on e of 74 “Advanced Coalmines” in China, allowing for production to increase, in times tight supply.

Coal supply tight due to supply-side reform, as well as customers’ demand better than expected during peak summer season.

Note: 1 Part of a mine from which the mineral has been partially

or wholly removed2 Mineral Resources Authority of Mongolia

feasibility study

Project

MONGOLIA

MONGOLIA PROJECTS UPDATES


Coal business

Investor focus

2

1



Gas business4

Financial summary5

Power business

2.1 Coal market

3

32

Takeaways6

Banpu Power: 3Q16 overview

33

CHINA – SOLAR

Reported revenue from solar operations in total of US$1.4M

THAILAND

BLCP: reported EBITDA of US$46M

JAPAN – SOLAR

Project Awaji construction reached10.8% as of Sep 2016

Project Nari Aizu achieved project financing

LAOS

Hongsa: reported EBITDA of US$60M

CHINA

BIC: reported EBITDA of US$66M

SLG construction reached 28% (as of Sep 2016) and expected to COD in 1H18

THAILAND LAOS CHINA JAPAN SOLAR CHINA SOLAR

Thailand power: BLCP in 3Q16

* Based on Banpu Power’s 50% interest

FX

loss

20

9

USD million

EQUITY INCOMEAVAILABILITY PAYMENT (AP) TOTAL REVENUE

ENERGY PAYMENT (EP)

DISPATCH (%) EBITDA

EBIT

56.1 69.951.5

3Q15 2Q16 3Q16

139.9 153.4125.0

3Q15 2Q16 3Q16

36.2 50.6 34.4

3Q15 2Q16 3Q16

37.2 48.9 46.1

3Q15 2Q16 3Q16

14

78.1 76.7

66.5

3Q15 2Q16 3Q16

FX

gain

2

11

-2

3Q15

-1

3Q162Q16

12

21

FX

loss

99.3 99.5 98.3

3Q15 2Q16 3Q16

Q-Q : -18.5%

Y-Y : -10.7%

Q-Q : -5.7%

Y-Y : 23.9%

Q-Q : -32.0%

Y-Y : -5.0%

Q-Q : -13.3%

Y-Y : -14.9%

Q-Q : -26.3%

Y-Y : -8.2%

Q-Q: -55.0%

Y-Y: -35.7%

34

Thailand power: HPC in 3Q16

Q-Q : -23.8%

Y-Y : 103.4%

* Based on Banpu Power’s 40% interest

-9.4

-4

14

2Q163Q15

0.4

3Q16

6

-1 FX

loss

FX

gain

13

2

23.6

93.2 63.3

3Q15 2Q16 3Q16

12.143.6 45.6

3Q15 2Q16 3Q16

35.7

137.3109.0

3Q15 2Q16 3Q16

28.5

76.659.5

3Q15 2Q16 3Q16

29.5

78.760.0

3Q15 2Q16 3Q16

-9

93.3 100.0 100.0

4Q15 1Q16 2Q16

USD million

EQUITY INCOMEAVAILABILITY PAYMENT (AP) TOTAL REVENUE

ENERGY PAYMENT (EP)

DISPATCH (%) EBITDA

EBIT

Q-Q : -20.6%

Y-Y : 205.3%

Q-Q : -32.1%

Y-Y : 168.2%

Q-Q: -84.6%

Y-Y: 122.2%

Q-Q : -22.3%

Y-Y : 108.8%

Q-Q : 4.6%

Y-Y : 276.9%

FX

loss

35

3Q15 2Q16 3Q16

China power: BIC in 3Q16 (100% basis)

Note: *Unaudited figures, **Including transportation

LuannanHebei Province

Power 100 MW

Steam 128 tph

(Banpu 100% )

ZhengdingHebei Province

Power 73 MW

Steam 370 tph

Chilled water 35 MW

(Banpu 100%)

ZoupingShandong Province

Power 100 MW

Steam 450 tph

(Banpu 70%)

(RMB/t)

3Q15 2Q16 3Q16

3Q16 sales and EBITDA lower QoQ and YoY due to decline in power sales for lower utilization and higher coal price.

3Q16 sales higher QoQand YoY due to increase in sales of cooling water.

However, higher coal price lead to EBITDA lower than 2Q16 and YoY.

3Q16 sales lower QoQand YoY due to decline in power sales for lower utilization.

Meanwhile, higher coal price lead to lower QoQand YoY EBITDA .

COAL PRICE**UTILIZATION

(RMB/kwh)

EBITDA

(RMB M)(RMB M) (hours)

POWER TARIFFSALES*BIC

192121

3Q162Q163Q15

1,149

3Q15 3Q162Q16

1,0271,043

0.39

3Q15 2Q16 3Q16

0.41 0.39

342316322

3Q162Q163Q15

595856

3Q15 3Q162Q16

0.32

3Q163Q15

0.35

2Q16

0.32

310294295

3Q15 3Q162Q16

1,546

3Q162Q163Q15

1,6021,403

99104105

3Q15 2Q16 3Q16

25

3639

3Q15 3Q162Q16

0.38

2Q16

0.400.37

3Q163Q15

454401

427

3Q15 2Q16 3Q163Q15

1,504

3Q162Q16

1,4691,702

222323

3Q162Q163Q15

36

485251

3Q162Q163Q153Q15 2Q16 3Q16 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16

3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16

3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16 3Q15 2Q16 3Q16

1,0431,149

1,027

1,6021,403

1,546

1,469

1,7021,504

Banpu Power : sales and profit from JVs

37

703 635

569

458

426

415

-49

10

16 11

3Q15 2Q16 3Q16

1,171

1,078 1,045

Steam-3% QoQ

-9% YoY

Power

-10% QoQ

-19% YoY

Other

Solar - JapanSLG Hongsa BLCP

499

692

316

(322)

485

68

(4)

(0)(76)

128

3Q15 2Q16 3Q16

172

1,101

PowerOthers SteamSolar

Solar

SALES SHARE OF PROFIT FROM JOINT VENTURES

THB million

Q-Q : -3.0%

Y-Y : -10.8%

Q-Q : -53.5%

Y-Y : 197.6%

$33.2

$30.5 $30.0

$4.9

$31.2

$14.7

512

BLCP

-54% QoQ

-37% YoY

Hongsa

-86% QoQ

121% YoY

Solar-Japan*

Note: *3Q16 one-off FX gain

Banpu Power : EBITDA and NPAT

38

3Q15 2Q16 3Q16

644

1,526

3Q15 2Q16 3Q16

96

1,335

489

Q-Q : -42.6%

Y-Y : 36.0%

Q-Q : -63.4%

Y-Y : 409.4%

THB million

EBITDA NET PROFIT AFTER TAX

876

$18.3

$43.4

$25.1

$2.7

$37.8

$14.0

Impacts of:- BIC: seasonal

power demand- BLCP: planned

maintenance- HPC: unplanned

outage (low AP)


Coal business

Investor focus

2

1



Gas business4

Financial summary5

Power business

2.1 Coal market

3

39

Takeaways6

U.S. gas market update

Gas prices remain volatile but average increased due to slow inventory build-up from falling production. However, weather has been warmer and tends to damp demand in autumn

Gas stockpiles remain high. However, there has been below-average increases for 21 consecutive weeks as strong underlying consumption and falling output have rebalanced the market

Source: EIA

Unit: US$/Mmbtu

$2.73

27 Oct 16

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan-16 Apr-16 Jul-16 Oct-16

YTD

average

$2.41

Q1 Q2 Q3

Unit: Bcf

AVERAGE HENRY HUB PRICE 2016 U.S. TOTAL NATURAL GAS PRODUCTION

NATURAL GAS IN UNDERGROUND STORAGE

-10%

-5%

0%

5%

10%

0

2,000

4,000

6,000

2015 2016

% Increase compared to 5-years average

5-years (2011-2015) maximum billion cubic feet

Working Gas in Storage billion cubic feet

3,909 Bcf(As of 21st Oct 2016)

Below-average increases

40

Unit: Bcf/d

-

20

40

60

80

2015 2016

Marcellus “Other Shale Gas” Production Other Natural Gas Production

3% decreases from Jan-16

76 Bcf/d (As of Sep 2016)

2015 2016

2015 2016

Chaffee Corners 3Q16 performance

Note:

1 British thermal unit

2 Pipeline recovery income

Midstream4.92

Upstream

Unit: Trn btu 1

3 Lease operating expense and work over expenses

4 Royalty, taxes, marketing and transportation expenses, and administrative expense

Operating

expense 3

Selling

and admin 4

Avg. Henry Hub Upstream Midstream 2 Ebitda

2.86

2.140.16 0.23

0.81

1.26

1.89

2.30

2Q16 3Q16

3.65

5.28

2.03

2.89

2Q16 3Q16

As a result of strong asset performance, the fund sent first capital return back to Banpu: US$1M (early Oct)

TOTAL REVENUE

EBITDA

Unit: US$M

Unit: US$M

EBITDA BREAKDOWN

Unit: US$/Mmbtu

UNIT PRODUCTION

3.31

4.92

0.34

0.36

2Q16 3Q16

41


Coal business

Investor focus

2

1



Gas business4

Financial summary5

Power business

2.1 Coal market

3

42

Takeaways6

Banpu consolidated sales revenues

USD million

43

404

295 367

160

140

184

34

31

30

3Q15 2Q16 3Q16

Note: Revenue from others is included in Coal Indonesia.

598

469

586

-2% YoY

Coal Australia

+31% QoQ

+15% YoY

Coal Indonesia

+24% QoQ

-9% YoY

Power-3% QoQ-12% YoY

Gas

Power

Coal Australia

Coal Indonesia

Gas+25% QoQ

+25% QoQ

Banpu consolidated EBITDA

44

61

33

63

(0) (5)

3

30

30

28

13

40

19 2

3

3Q15 2Q16 3Q16

USD million

105 99

Coal - China

Coal - Indonesia

+3% YoY

+91% QoQ

Coal - Australia

-7% QoQ-7% YoY

Power -53% QoQ

+46% YoY

115

+9% YoY

+16% QoQ

Gas

Power

Coal Australia

Coal China

Coal Indonesia

Gas - USA+50% QoQ

+160% QoQ

Banpu: 3Q16 consolidated NPAT

45

COAL

17

OPERATING

PROFIT

52

(35)

FINANCE

CHARGES

RECURRING

PROFIT

17

NPATNON-

RECURRING

ITEMS

POWER

35

(9)

COAL

26

OPERATING

PROFIT

32

(33)

FINANCE

CHARGES

RECURRING

PROFIT

(1) (2)

NPATNON-

RECURRING

ITEMS

POWER6

(1)

3Q15 NET PROFIT AFTER TAX

USD million


USD million

8

Non-recurring items

• FX gain $3M

• Others ($2M)

• Derivative loss ($10M)

Non-recurring items

• FX gain $18M

• Others ($1M)


19

2

NON-

RECURRING

ITEMS

NPATOPERATING

PROFIT

POWER

15

RECURRING

PROFIT

FINANCE

CHARGES

(34)

53

COAL

38

-57% Q-Q

+140% Y-Y

+127% Q-Q

+48% Y-Y

Non-recurring items:

• FX loss USD:THB ($8M)


- FX ($5M)

- Coal swap ($1M)

- IRS* ($2M)

• Others ($1M)

(17)


USD million

Note : * Interest rate swap

Banpu consolidated balance sheet

46

3Q16 CONSOLIDATED BALANCE SHEET DEBT FX STRUCTURE

USD

Fixed

44%

AUD

Fixed

3%

THB

Fixed

16%

USD

Float

22%

AUD

Float

8%

THB

Float

7%

Total gross debt: US$3.58 billion

As of 30 Sep 2016

(reduced to US$3.20 billion post-IPO)

1.18 1.40 1.34

Net debt / Equity 1 (x)

54%58% 57%

Net market gearing 2 (%)

Net debt / EBITDA (x)

4.40 5.90

2014 2015 3Q16

GEARING RATIOS

Note:

1 Net debt to book value of shareholders' equity

2 Net debt to enterprise value (enterprise value

= net debt + market capitalization as at 30 September 2016)

USD million

6,621

2,375

403

1,066

3,583

TOTAL ASSETS TOTAL LIABILITIES

AND

SHAREHOLDERS'

EQUITY

ASSETS

TOTAL

SHAREHOLDERS’ EQUITY

TOTAL BORROWINGS

OTHER LIABILITIES

CASH EQUIVALENT


Coal business

Investor focus

2

1



Gas business4

Financial summary5

Power business

2.1 Coal market

3

47

Takeaways6

Key takeaways

48

POWER IPO SUCCESS

Top-end of price range; up c.30% on first day;

US$0.4 bn capital raised

POWER GROWTH

Portfolio targeted at 4.3GWe by 2025; >20% renewables

COAL PRICE

Has more than doubled in 2016, highest since 2013; outlook strong

POWER PROJECTS

Progressing well: Japan solar, China solar,

China coal-fired

SUSTAINABLE

STRATEGY

Integrated pan-Asia-Pacific energy player;

balancing conventional with new energy

GAS INVESTMENT

Chaffee Corners:first dividend

FINANCIAL

STRENGTH

Balance sheet strong: capital from IPO; warrant exercise;

gearing down

CASHFLOW

RECOVERY

Consolidated EBITDA US$115M up 16% QoQ

Structure for next results presentation

49

BANPU POWER PRESENTATION

FY16 Banpu Power

presentation

2016 summary

Operational performance

Financial performance

BANPU

POWER Q&A

Q&A regarding

Banpu Power

(excluding

questions

about Banpu

Group)

BANPU PRESENTATION

FY16 Banpu presentation

Investor focus

Coal business

Power business

Gas business

Group financial

summary

BANPU Q&A

Q&A regarding

Banpu Group

(excluding

questions about

Banpu Power)

15 MINS

BREAK

9.30 am 10.10 am 10.30 am 10.45 am 12.10 pm 12.30 pm

Appendices

50

Key external and corporate eventsE

XT

ER

NA

L E

VE

NT

SC

OR

PO

RA

TE

E

VE

NT

SD

IREC

TIN

DIR

EC

T

ADB cuts Thai growth forecast

First investment in unconventional shale gas

1Q16 result

Announcement on China solar projects

2H15 dividend paid Bt0.5/share

Completion of rights offering & capital increase warrants issue

China announced reduction in coal mine working days to 276

Indonesia’s

Sep HBA hit new

high at $63.9/Mt

Vietnam’s July

coal imports

surged 141%

YoY to 1.3Mt

Increasing

NEX since

end of June

BOT

maintained

policy rates

at 1.50%

BoA

Thailand

raised

Thai GDP

forecast

to 3.2%

from 2.8%

China’s mild

inflation

created room

to boost

economy

Moody’s

lowered

Thailand’s

economic

strength to

‘high(-)’

from ‘high’

FED

maintained

rates at

0.25-0.5%

level

Voters approved military-backed constitution

Announced plans to acquire

additional 5% stake in

Chaffee Corners

2Q16 F/S

report and

Analyst

meeting

Signed

solar

power

R&D

projects

MOU with

KMITL,

Huawei and

Techen

First day trade

of new shares

Announced

details on

rights offering

of BPP IPO

Commercial

operation of

Solar power

projects in

China

Report on

utilization

of proceeds

from

capital

increase

Beginning

of BPP IPO

period

1st

warrant

exercise

date

2Q16 3Q16

51

Banpu group Q-Q revenue analysis: coal

Note: ITM and Centennial revenues are consolidated in Banpu income statement.

Australia Coal – Third party coal sales included.

*NEX = Newcastle Export Index (formerly Barlow Jonker Index or BJI)

It is relevant but not linked to China Coal’s ASP

Note: Hebi and Gaohe revenues are not consolidated

in Banpu income statement.

SALES (Mt)

AVERAGE SELLING PRICE (US$/t) excl. VAT

REVENUE (US$M)

48 49 38 48 50

3Q15 4Q15 1Q16 2Q16 3Q16

1.0 1.1 1.0 1.2 1.1

3Q15 4Q15 1Q16 2Q16 3Q16

AS

P

49 45 39 4149

3Q15 4Q15 1Q16 2Q16 3Q16

NE

X*

5953 51 52

67

Equity basis

Equity basis

Domestic

Export

2.3 1.8 2.4 1.8 2.3

3.42.8

3.4 3.03.6

3Q15 4Q15 1Q16 2Q16 3Q16

SALES (Mt)

AVERAGE SELLING PRICE (A$/t)

REVENUE (A$M)

208 177 216 179 236

3Q15 4Q15 1Q16 2Q16 3Q16

ASP

61 63 63 59 65

3Q15 4Q15 1Q16 2Q16 3Q16

NEX

*

59 53 51 5267

Equity basis

Equity basis

Domestic

Export

5.9 6.1 5.8 5.4 6.0

6.8 7.1 6.9 6.2 7.0

3Q15 4Q15 1Q16 2Q16 3Q16

SALES (Mt) 100% basisDomestic

Export

AVERAGE SELLING PRICE (US$/t)

REVENUE (US$M)

382 383 331 278 349

3Q15 4Q15 1Q16 2Q16 3Q16

NEX

*A

SP

59 53 51 5267

100% basis

56 53 48 45 50

3Q15 4Q15 1Q16 2Q16 3Q16

INDONESIA COAL (ITM) AUSTRALIA COAL (CENTENNIAL) CHINA COAL

52

Banpu consolidated coal gross margin 3Q16: 30%

Note: AUD exchange rate – US$ 0.7413/A$ (average of 3Q16)

Coal sales Gross margin

3Q15 2Q16 3Q16

160

184

Indonesia coal

gross margin: 36%

37%34%

USD millionUSD million Australia coal

gross margin: 22%

140

32%

3Q15 2Q16 3Q16

30%

37%

347388

283

36%

28%28% 22%

AUSTRALIA COAL INDONESIA COAL

53

54

Indonesia coal gross margin 3Q16 : 36%

54

3Q15 2Q16 3Q16

36%

30%

37%

347

Indonesia Coal

3Q15 2Q16 3Q16

Indominco

32%27%34%

180163

179

3Q15 2Q16 3Q16

25%

46% 37%

107

Trubaindo

109

72

3Q15 2Q16 3Q16

Jorong

41% 33% 40%

9 9 7

52%

3Q15 2Q16 3Q16

10

28% 28% 26%

Kitadin

16 12

388

283

3Q15 2Q16 3Q16

Bharinto

4327

29%43% 52%

3Q152Q163Q16

Tandung

Mayang

0.0

-6% 93%

51%

32

0.4

44

45%

USD million

BLCP: 3Q16 operational performance

Dispatch (%)AAH (hours)

4,345 4,242

3,680

3Q15 2Q16 3Q16

Commercial availability (%) Net generation (Gwh) Coal consumption (‘000 tonnes)

Heat rate (kj/KWh)

2,9232,847

2,477

3Q15 2Q16 3Q16

1,090 1,068917

3Q15 2Q16 3Q16

9,4059,493

9,396

3Q15 2Q16 3Q16

99.3 99.5 98.3

3Q15 2Q16 3Q16

97.4 99.9 96.5

3Q15 2Q16 3Q16

55

HPC: 3Q16 operational performance

Dispatch (%)AAH (hours)

1,229

4,2074,730

0

3,249

4,585

3Q15 2Q16 3Q16

Commercial availability (%) Net generation (Gwh) Coal consumption (‘000 tonnes)

Heat rate (kj/KWh)

EGATEDL

93.3100.0 100.0

3Q15 2Q16 3Q16

12,676 12,274 12,532

3Q15 2Q16 3Q16

62.7 63.971.2

3Q15 2Q16 3Q16

903

2,187 2,199

3Q15 2Q16 3Q16

1,086

2,683 2,778

3Q15 2Q16 3Q16

56

BIC Luannan: 3Q16 operational performance

Utilization (hours)

Electricity sold (GWh)

Steam sold (‘000 tonnes)

51.4

54.9

51.2

3Q15 2Q16 3Q16

8,4738,704

7,322

3Q15 2Q16 3Q16

Coal consumption (‘000 tonnes)

Heat rate (kj/KWh)

100.8

125.1147.4

3Q15 2Q16 3Q16

90.4

98.3

86.8

3Q15 2Q16 3Q16

1,043

1,149

1,027

3Q15 2Q16 3Q16

57

BIC Zhengding: 3Q16 operational performance

Electricity sold (GWh)

Steam sold (‘000 tonnes) Coal consumption (‘000 tonnes)

Heat rate (kj/KWh)

Utilization (hours)

1,4151,403

1,546

3Q15 2Q16 3Q16

98.6

90.5

95.7

3Q15 2Q16 3Q16

179.2

171.3

165.9

3Q15 2Q16 3Q16

8,692

8,175 8,255

3Q15 2Q16 3Q16

66.5

59.7

66.5

3Q15 2Q16 3Q16

58

BIC Zouping: 3Q16 operational performance

Coal consumption (‘000 tonnes)

Heat rate (kj/KWh)Electricity sold (GWh)

Steam sold (‘000 tonnes)Utilization (hours)

1,469

1,702

1,504

3Q15 2Q16 3Q16

117.0

136.5

118.8

3Q15 2Q16 3Q16

701.2725.0

635.0

3Q15 2Q16 3Q16

4,457

4,684

4,900

3Q15 2Q16 3Q16

106.9

118.7

108.7

3Q15 2Q16 3Q16

59

FX impact analysis guidance on P&L

60

CURRENCY

EXPOSURE

NPAT IMPACT

3Q16 (US$M)

APPROXIMATE FX

EXPOSURE (US$M)

NPAT 5% SENSITIVITY

3Q16 (US$M)

-8

-0.7

-0.2

-7

NET

AUD

ID R

THB & O THER

Banpu: THB

bond and others

+2

+70

AUD

ID R

THB & O THER

+15

+0.2

-3

+18

NET

AUD

ID R

THB & O THER

NET LIABILITY NET ASSET

Moderate growth

BI cut rates 25 bps in

Oct

Moderate growth

Slowly recovery GDP

Assuming 5% depreciation of local

currencies against USD

ITMG: IDR asset

and liabilities

CEY: USD asset

Net

-350

Banpu group EBITDA breakdown

61

Note: all ownership 100% unless otherwise shown.

*BIC = Banpu Investment China

11 22 26 10

-4 -2 -2 -2

3 4 0 1

5 1 2 1

3 3 1 9

25 18 3 18

35 23 28 31

Jorong

55 43 79 60

31 50 49 25

-2 -3 -7 -7

71 50 33 59

50%

40%

Power & New energy

40%

45%

70%

Gaohe

Hebi

BLCP

HONGSA

BIC*

Zouping

5 6 5 5

Zhengding

9 10 3 4

Luannan

8 9 3 4

& holding companies

65%

Indominco

Trubaindo

Kitadin

AACI OVERHEAD

100%

7 40 34 34

Consolidated NOT consolidated

-1 -1 -1 -1

21 23 11 13

AUD mil

All figures are 100% basis except for Centennial which is equity basis

115 113 99 115

Bharinto

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16 4Q15 1Q16 2Q16 3Q164Q15 1Q16 2Q16 3Q16 4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q164Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q164Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

USD million

Banpu group net debt breakdown

62

Note: all ownership 100% unless otherwise shown.

2,562 2,122 2,203

2,225

225 226 187 110

& holding companies

2,893 3,241 3,212 3,181

AUSTRALIA COAL INDONESIA COAL CHINA COAL MONGOLIA COAL

THAILAND POWER

LAOS POWER CHINA POWER

Gaohe Hebi

HONGSABLCP BIC*

100% 65% 45% 40% 100%

50% 40% 100%

739 709 761 752-268 -295 -266 -268

-90 -85 -81 -96 -1 -1 -2 -1

315 275 269 231-9 -15 -27 -7

AUD mil

Consolidated

NOT

consolidated

Net debt

Net cash

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16 4Q15 1Q16 2Q16 3Q164Q15 1Q16 2Q16 3Q16 4Q15 1Q16 2Q16 3Q16

4Q15 1Q16 2Q16 3Q16 4Q15 1Q16 2Q16 3Q16 4Q15 1Q16 2Q16 3Q16

USD million

Banpu consolidated : operating profit

63

Sales revenues – Power

Cost of sales

Gross profit*

GPM

Sales revenues – Coal

Total sales revenues*

Gross profit – Coal

Gross profit – Power

GPM – Power

GPM – Coal

-8%

YoY%

-2%

-2%

-11%

-11%

-18%

Note: * Including other businesses

30%

QoQ%

25%

27%

34%

-2%

-8%

34

(400)

198

33%

598

557

187

11

33%

34%

30

(405)

181

31%

586

544

166

9

30%

30%

USD million

3Q153Q16 2Q16

31

(330)

140

30%

469

429

124

10

32%

29%

Sales revenues – Gas -45%-5 4

Gross profit – Gas -81%-2 1

GPM – Gas -45% 36%

Banpu consolidated : operating profit

64

Gross profit

GPM

SG&A

Royalty

Other income

EBIT

EBITDA

EBIT - Coal

EBIT - Power

Income from associates

EBITDA - Coal

EBITDA - Power

Mining property

EBITDA - Gas

198

33%

(78)

(60)

5

68

105

58

10

5

92

(1)

13

-

181

31%

(72)

(56)

6

71

115

54

17

17

93

(6)

19

3

30%

23%

17%

QoQ%

81%

-56%

68%

-54%

n.m.

-6%

66%

-8%

4%

9%

YoY%

2%

39%

n.m.

USD million

3Q153Q16 2Q16

140

30%

(69)

(44)

9

58

98

20

38

26

57

(4)

40

2

Banpu consolidated : net profit

65

Note: * Income from non-core assets and other non-operating expenses

EBIT

Interest expenses

Financial expenses

Minorities

Non-recurring items*

Income tax (non - core business)

Net profit before FX

Income tax (core business)

Net profit before extra items

FX translations

Net Profit

EPS (US$/share)

4%

YoY%

n.m.

n.m.

0%

Deferred tax income (expenses)

23%

QoQ%

106%

-75%

57%

Gain (Loss) on Derivatives Transactions

71

(32)

(2)

(11)

(0)

(0)

10

(15)

11

(8)

2

0.000

7

(8)

68

(31)

(2)

(10)

(1)

(3)

(20)

(14)

11

18

(2)

(0.001)

(10)

(18)

58

(33)

(2)

(5)

(2)

-

(11)

7

10

5

3

(10)

8

0.002

USD million 3Q153Q16 2Q16

Centennial : income statement

66

USD million

Cost of sales

Gross profit

GPM

Royalty

SG&A

EBIT

Sales revenue

Sales volume (Mt)

Other income

Interest expenses

Financial expenses

Gain (loss) on exchange rate

Net profit

Gain (loss) on derivative

Other expenses

YoY%

-10%

-8%

8%

-32%

6%

15%

11%

n.m.

QoQ%

3%

-2%

33%

-17%

19%

31%

-6%

n.m.

Deferred tax income

(4.4)

-

(143.6)

40.3

22%

(11.6)

(24.1)

6.6

3.6

183.9

2.0

(6.5)

(0.8)

(0.8)

(5.0)

2.1

(4.1)

-

(26.0)

0.7

(8.7)

-

(115.5)

44.8

28%

(10.8)

9.8

3.4

160.2

1.8

(6.9)

(0.7)

(5.8)

-

3Q153Q16 2Q16

(100.6)

39.3

28%

(8.8)

(24.6)

8.0

3.0

139.9

2.1

(6.6)

(0.8)

0.2

(6.4)

1.4

67

Banpu Power : income statement

THB million

Cost of sales

Gross profit

GPM

Equity income

Administrative Expense

EBIT

Sales revenue

Sales revenue

Dividend income

Interest expenses

Financial expenses

Income tax – Core Business

Net profit

NCI/Minorities

Other income

YoY%

-17%

17%

197%

57%

-11%

-

408%

QoQ%

-9%

18%

-54%

-47%

-3%

-28%

-63%

3Q15

(793.9)

377.0

32%

172.4

(186.1)

483.6

1,170.9

-

(49.5)

(0.1)

(97.0)

96.1

(141.7)

120.2

3Q16

(731.7)

313.0

30%

511.8

(218.3)

761.6

1,044.7

6.6

(130.0)

(0.6)

(54.1)

488.7

(21.2)

148.5

2Q16

(732.4)

345.3

32%

1,100.8

(184.9)

1,446.9

1,077.7

9.3

(115.4)

(0.4)

(108.5)

1,335.2

(38.2)

176.4

Non-recurring items (8.4)(49.7) (34.7)

Deferred tax income / expense 15.9(8.5) 108.2

FX translations (106.8)(8.8) 77.3

24% -16%

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 2015.

Normal production Bolt-up/commissioning

1.4 1.2 1.21.7

1.2 1.31.7

1.2

2.1

1.62.0

1.7

1.5

2.2 1.6 2.4

2.83.2

2.73.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

1Q16 2Q16 3Q16 4Q16e 1Q17e 2Q17e 3Q17e 4Q17e

Total equity ROM (Mt)

WESTERN

NO

RTH

ERN

LW relocation

Australia coal: quarterly equity ROM output

3.5 3.4

ACTUAL PLANNED (INDICATIVE ONLY)

2016 2017e

LW move Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mandalong

(100%)

Springvale

(50%)

2 wks

2 wks

9wks

4 wks

4 wks

3.53.6

68

banpu: 3q16 results · banpu: 3q16 results investor and analyst update 15th november 2016. 2....

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