2Q16 results - Banpu...5 Banpu’s core skills to achieve renewables target REGIONAL Positioned in...

2Q16 results

Investor and analyst update

16th August 2016

1

2

DISCLAIMER

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

3

Financial summary

Power business

Coal marketing

Coal operations

Focus: Banpu Power renewables outlook

6

4

3

2

1

Looking ahead7

Gas business5

4

2018

Portfolio target: ≥20% in renewables by 2025

1.86GW

June 2016 2025

4.3GW2.4GW

4.3GWe by 2025

Capture new opportunities from >700GW demand growth in Asia-Pacific over

the next four years(1)

Leverage existing assets and platform for both organic and inorganic expansion

≥ 20% renewables by 2025

Diversify fuel type for both conventional and renewable plant

Balance country and regulatory risks

Leverage and strengthen Banpu Power’s skills and advantages

≥20%4%

EXPAND DIVERSIFY STRENGTHEN

7%

(Operating)

Source: (1) Frost & Sullivan, EIA, CEA, AER, WEO, Cleantechnica

(Operating and committed projects) (Target)

5

Banpu’s core skills to achieve renewables target

REGIONALPositioned in the most attractive growth markets in Asia-Pacific: equity capacity of 4.3GWe by 2025

SYNERGIESSynergies with coal business to provide local expertise and other synergies

EXPERTISEProject development expertise from coal-fired projects to leverage in developing renewables

FINANCINGProject financing capabilities, experienced team, access to capital and strong financial position

PARTNERSHIPPartnership access and ability to work with partners to enhance overall competitiveness

PIONEERPioneer in private power for over two decades in Asia, with solid track-record of value creation

PERMITS&

PLANNING

FEASIBILITY

STUDY

DESIGN &

PROCUREMENTFINANCING CONSTRUCTION COMMISSIONING O&M

6

Sources: Power development plans of each country, WEO’s special report on SE Asia(1) includes hydropower capacity; (2) other Greater Mekong Subregion comprises Cambodia, Laos, Myanmar, and Vietnam;(3) other South East Asia comprises Malaysia, Singapore, Philippines, East Timor, and Brunei

*DISCLAIMER 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.

79%

11%

THAILAND**

JAPAN

Source: Frost & Sullivan, AER, EIANote: Bubble size not drawn to scale* Exclude hydro; ** As of 2014

PHILIPPINES

70%

22%

8%CHINA

LAOS

Renewables*

146GW

Hydro

307GW

33GW

Wind

2GW

0.1GW

6 GW

Hydro

6GW

Solar

Geothermal

Hydro

50GW

Hydro

3GW

Wind

Wind

INDIA

AUSTRALIA

Hydro

8GWSolar 68%

28%

0.2GW

16GW

VIETNAM**

INDONESIA

Asia-Pacific renewables installed capacity 2015

Biomass

Solar

Unit: GW

13%

74%

13%

Hydro

45GW

Wind

3GW 55%

46%47%

39GW

Wind

Hydro

5GW

5GW

Hydro

3GW

Hydro

7

Sources: Power development plans of each country, WEO’s special report on SE Asia(1) includes hydropower capacity; (2) other Greater Mekong Subregion comprises Cambodia, Laos, Myanmar, and Vietnam;(3) other South East Asia comprises Malaysia, Singapore, Philippines, East Timor, and BruneiAsia-Pacific renewables growth 2015 – 2020

COUNTRIES SELECTED ARE FOR

EDUCATIONAL PURPOSES ONLY*

2020

48%

52%

2015

686

32%

68%

453

18

2020

50%33%

67%

2015

12

50%

2020

35%

2015

4%

7

95%96%

60%

2020

129

2015

83

61%

39%

40%

JAPAN

LAOS

THAILAND

Hydro

Year

Renewables

CHINA

+184

+233

+46

+46

+4

+6

+0.1

+4

• >250GW capacity growth from renewables is expected in the next four years

• Major growth in absolute MW would come from China, Japan and India

• Renewable energy excluding hydro is expected to constitute c.20% of total generating capacity in Asia-Pacific* by 2020

• Potential upside with technology advancement

+49

+4

+2

6

46%

20202015

54%No

breakdown

available

PHILIPPINES

2020

8

19

45%38%

2015

55%

62%

INDONESIA

+7

+4

+11



AUSTRALIA

Note: Map not drawn to scaleSource: Frost & Sullivan, EIA, CEA, AER, WEO, Australian Gov’t, RET, Cleantechnica

2020

91%

2%98%

16

2015

9%

23

VIETNAM

+2

+7

+5

INDIA

2020

53%

47%

2014*

84

124

54%

46%+27

+40

+13

Unit: GW

19

59%

2020

58%

42%

2015

1341%

+6

+6

+0.5

* Note: But in Laos and Vietnam it is likely to be much less than 20%

8

Japan renewables market

Note: As of June 15, 2016. All plants capacity is based on an as-completed basis includes capacity expansion currently under development.

Source: JWPA, IEA, Agency of Natural Resources and Energy, Institute for Sustainable Energy Policies, METI, EIA Geothermal Report

Operational solar

Developing solar64

28

20202015

RENEWABLES TARGET BY TYPE

Unit: GW

4

20202015

0.5 11

2013 2020

BANPU’S POWER ASSETS IN JAPAN

4

11

2015 2020

Mukawa

17 MW

Yabuki

7 MW

Olympia

10 MWHino

3.5 MW

Awaji

8 MW

Nari Aizu

20 MW

Onami

16 MW

Yamagata

20 MW

* Banpu’s effective ownership is between 40-75%

• Renewables to constitute 22-24% of total power generation capacity by 2030

• Solar, wind and biomass are primary generating resources

• FIT is generally reviewed annually and reduced overtime to control capacity

• FIT could be replaced by auction process for large solar projects in 2017

• Tax holiday was removed for commercial solar installation in Mar’16 while other renewable energy’s tax incentives remain

Solar Wind

Biomass Geothermal

9

China renewables market

Source: Climatenexus, Bloomberg New Energy Finance, Sciencedirect, The Climate Group, Cleantechnica

100

2020

200

2015 2030

400

33

100

2030

310

20202015

5930

13

203020202015

• Renewables to constitute 15% of total power generation capacity by 2020 and 20% by 2030

• Government’s target for 2-10% by 2020 of each province’s consumption to come from non-hydro renewables, primarily wind, solar, and biomass

• FIT for solar PV and wind was cut in 2016 in order to regulate development

• Incentives include capex subsidies, tax reduction/exemption, *license exemption

* For under 6MW projects


Unit: GW

BANPU’S POWER

ASSETS IN CHINA

Huineng (100%)

20 MWHaoyuan (100%)

20 MW

Jinshan (100%)

30 MW

Luannan (100%)

123 MWe

Zhengding (100%)

139 MWe

SLG (30%)

1,320 MW

Zouping (70%)

180 MWe

Biomass

Huien (100%)

20 MW

Wind

Solars

Operational coal-fired

Developing coal-fired

Operational solar

Developing solar

As of June 2016

10

Thailand renewables market

Source: Sunwindenergy, AEDP, Thai German Cooperation, EPPO

2

2021*

3

2015

6

2036*


Unit: GW

65

2

2015 2021* 2036*

3

2

2036*2021*2015

0.2

• Renewables to constitute 25% of total power generation capacity by 2021 and 30% by 2036

• Solar, biomass and wind are priority

• Replaced adder program with FIT for solar (Oct 2014). Available FIT for other renewables

• Incentives include tax reduction, import duties reduction/exemption, permission to own land, etc.

0.50.20.1

2036*2021*2015

* Alternative Energy Development Plan

BLCP (50%)

1,434 MW

BANPU’S POWER ASSETS IN THAILAND

Wind

Biomass

Waste

Operational coal-firedSolar

Thai Solar

Up to 4.1 MW

(Under construction)

11

Capacity presented on a 100% basis

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.

Diversified portfolio in high growth countriesBanpu’s ownership

Under development

SLG

1,320 MW

Hongsa

1,878 MW

Operation

Japan

solar

102 MW

Th

ailan

dO

ther

Asi

a-P

ac

Gre

ate

r

Meko

ng

Solar

50% Equity

40%

BLCP

1,434 MW

China

solar

90 MW

China CHP

273 MW

948 tph

LN and ZP

expansion (25MW

and 150tph each)

China

ChinaIndonesia

Biomass

Wind

Coal-fired

CambodiaLaos

Japan

Myanmar

Laos

Vietnam

Considerations : Strategic fit Regulations Risks Financing Economics

70-100%30%40-75%

100%

Thai Solar

Up to 4.1 MW

100%

12

Financial summary

Power business

Coal marketing

Coal operations


6

4

3

2

1

Looking ahead7

Gas business5

13

2016e OUTPUT (ROM EQUITY BASIS)

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: 7.5 Mt

NCIG

2016e output: 13.0 Mt

KEY UPDATES

Production

2Q16 Equity ROM: 2.8 Mt (down 8% YoY). (Note: 2Q15 included production from Charbon – since exhausted).

Two planned longwall changeovers during the period, with Mandalong achieving a record 14.5-day changeover.

Following the 2014/15 decision to focus on higher margin operations, Centennial continues to deliver cost improvements, production and

productivity records.

ASP

2Q16: ~A$59/t vs 1Q16: ~A$63/t –with ASP impacted as a result of thetiming of domestic deliveries into lower priced legacy contracts.

2Q16 Sales volume down 2% YoY,11% QoQ – as a consequence of lower longwall production.

Domestic: export split 61%:39% (2015: 62%:38%) – in part responding to lower production andexport price recovery.

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

Australia coal: operational and financial summary

2Q16 YoY QoQ

Sales revenue A$179M ▼ 9% ▼ 17%

EBITDA A$34M ▲ 6% ▼ 15%

PBT A$(7)M ▲36% ▼65%

NPAT A$(5)M ▲33% ▼72%

Gearing(Net debt to net debt + book value of equity)

39%

FINANCIAL SUMMARY

14

Australia coal: Northern operations quarterly output

COAL OUTPUT (Mt)1

CV: 6,700 kcal/kg2

1.1

1.8

0.8

1.8

1.2

1.8

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

0.5 0.4 0.3 0.4 0.3 0.4

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

Mandalong

Quarterly production down 30% QoQ, but up 10% YoY, with 2Q16 production impacted by a planned longwall changeover.

2Q16 – Production recommenced in early June, with the changeover completed in a record 14.5 days “coal-to-coal” surpassing the previous record of 19 days.

Myuna

Quarterly production down 7% QoQ, and 27% Y0Y.

A shift roster change is being implemented in 3Q16, to provide additional operating hours in the Panel (increasing operating time from 8 to 10 hrs to compensate for increasing travel times).

A second Super Panel to be introduced over the next twelve months replacing the existing Place-Change Mining Panel. This will provide greater flexibility to secure variable roof conditions more quickly and efficiently; with the benefit of improved coal quality, than can be delivered from a place-change panel.

COMMENTS

Decision made to return mine to care and maintenance – effective 1 August 2014

8Mt Northern Coal Services state approval received, underpinning the Newstan extension project for when coal industry economics improve.

Note: 1 ROM output on an equity basis2 CV figures are air-dried basis3 Longwall

LW3 MOVE SCHEDULE

Mth 1

Mth 2

Mth 3

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e 4Q16e

3 wks

3 wks

MYUNA

COAL OUTPUT (Mt)1

CV: 6,700 kcal/kg2

NEWSTAN EXTENSIONMANDALONG

2 wks

3 wks

15

Springvale:

2Q16 production down 54% QoQ and 40% YoY – with a planned longwall changeover, which commenced in May 2016 with production now recommenced.

Improved productivity has enabled the mine to achieve similar YTD production to 2015 and a forecast full year increase in production.

Legal challenge to Springvale approval process – judgment awaited.

Clarence:

2Q16 production up 34% QoQ and 25% YoY.

New weekly and monthly production records achieved in 2Q16.

The FCT 4 continues to perform well and is on target to achieve 1 million tonnes in its first full 12 months following its overhaul in late-2015. The FCT has now moved into an extraction phase.

Airly: Production up 5% QoQ and 25% YoY – achieving a new monthly production record since re-opening in June 2014.

OTHER OPERATIONS

COAL OUTPUT (Mt) 1

CV: 6,700 kcal/kg 2

0.60.0

0.6 0.70.3

0.5

COAL OUTPUT (Mt) 1

CV: 6,700 kcal/kg 2

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

1 ROM output on an equity basis: Angus Place and Springvale 50%, Clarence 85% and Charbon 95% 2 CV figures are air-dried basis3 Longwall4 Flexible Conveyor TrainNote: Following material overflow in reject emplacement area at Clarence in July, authorities were notified and actions were taken in compliance with NSW Environmental Protection Authority Clean-up Notice. The clean-up operation has now been completed.

COMMENTS

Mth 1

Mth 2

Mth 3

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e 4Q16e

LW 3 MOVE SCHEDULE

12 wks

SPRINGVALE CLARENCE

0.6 0.7 0.80.5 0.7 0.7

COAL OUTPUT (Mt) 1

CV: 6,700 kcal/kg 2

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

0.2 0.3 0.1 0.2 0.2 0.2

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

2 wks

Australia coal: Western operations quarterly output

5 wks

3 wks

16

Continued focus on cost control and productivity, driven by step-change in productivity programme and increasing LW(1) automation.

On a like-for-like basis, productivity continues to improve, with several production records achieved across the Centennial group.

2Q16 over 1Q16 cost improvement reflects a continued focus on cost efficiency and timing associated with the longwall changeover accounting (with both Mandalong and Springvale on changeoverduring 2Q16).

Targeting a YoY reduction in unit costs.

Distribution cost reduction –improving rail logistics e.g. recently successfully trialed a 100 wagon distributed power coal train from the western coalfields to NCIG.

AVERAGE PRODUCTION COSTS COMMENTS

0

10

20

30

40

50

60

FY14 2Q

General expenses

Open-cut contractor cost

Repairs & maintenance

Stores & supplies

Labour

Depreciation

* These figures do not include selling, distribution and royalty costs; based on ‘sold’ production(1) Longwall

$49

A$/t

$50$49

1Q 2Q 3Q 4Q

2015

FY15 1Q FY16E

$46 $45

$54

$48

2016

$52

Australia coal: operating costs

FY13

$52

$44

Cash overhead

Coal handling & preparation

17

Domestic contracts provide regular monthly cash flows

“New” re-priced domestic contracts improve domestic revenues as new prices reflect long-term export parity.

Legacy contracts conclude at end of June 2022.

Average base price expected to escalate based on key indices.

Consistent with Centennial’s philosophy of maintaining a strong domestic base, domestic sales represent up to 70% of total Centennial group sales.

These re-priced domestic sales underpin Centennial’s business.

Australia coal: domestic contracts

AUSTRALIA COAL: DOMESTIC CONTRACTS

Note: Presented on 100% basis for illustrative purposes

0

2

4

6

8

10

12

2012 2013 2014 2015 2016F 2017P 2018P 2019P 2020P 2021P

Legacy NewUnit : Mt

18

Indonesia coal: operational and financial summary

PRODUCTION OUTPUT 2016

FINANCIAL SUMMARY

East Kalimantan

Bunyut Port

Balikpapan

Palangkaraya

Banjarmasin

Central Kalimantan

South Kalimantan

Kitadin -Embalut1.1 Mt

Indominco16.0 Mt

Trubaindo6.0 Mt

Bharinto2.5 Mt

Jorong1.0 Mt

Samarinda

Jorong Port

Bontang Coal Terminal

Captive coal-fired power project

KEY UPDATES

2016 target: 26.6 Mt ● Indominco : 2Q16 production is according to target.

● Trubaindo: 2Q16 production higher than plan due to good mining performance at June 2016.

● Bharinto: 2Q16 production is according to target.● Kitadin Embalut : 2Q16 production is according

to target● Jorong: 2Q16 production output was slightly lower

than target due to rainy days affecting mine production.

2Q16 YoY QoQ

Sales revenue US$278M ▼ 30% ▼ 16%

EBITDA US$32M ▼43% ▼ 37%

NPAT US$13M ▼ 34% ▼ 42%

Gearing(Net debt to net debt + book value of equity)

n.a.

CAPEX US$5M

19

0.3 0.3 0.3 0.3 0.2 0.2

0.3 0.3 0.3 0.3 0.3 0.3

CV: 5300 kcal/kg**

STRIP RATIOS (bcm/t)

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

5.4

10.5

4.6

13.8

Indonesia coal: quarterly output

Note: *Output figures are 100% basis**CV figures are air-dried basis

JO

RO

NG

EMBALUT AND JORONGINDOMINCO - BONTANG TRUBAINDO - BHARINTO

E B

LO

CK

TD

MY

W B

LO

CK

IND

OM

INC

OT

DM

Y

TR

UB

AIN

DO

BH

AR

INT

OT

RU

BA

IND

OB

HA

RIN

TO

EM

BA

LU

TJ

OR

ON

GE

MB

AL

UT

EA

ST

WE

ST

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

COAL OUTPUT (Mt)*CV: 6550 - 6700 kcal/kg**

COAL OUTPUT (Mt)*

CV: 5800 kcal/kg**

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

3.2 2.9 2.8 3.13.5 3.6

0.30.3 0.4

0.80.5 0.40.7

0.6 0.6

4.23.8 3.8 3.9 4.0 4.0


20.7

7.3

6.6

17.1

9.5

3.8

14.4

11.4

2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

1.9 2.0 1.71.2 1.4 1.6

0.7 0.70.9

0.50.6

0.7


2Q15 3Q15 4Q15 1Q16 2Q16 3Q16e

2.72.6

8.2

5.3

2.6

7.8

9.0

7.8

3.6

4.6

12.6

1.7

13.8

7.88.3

6.4

3.9

13.2

2.0

17.7

7.1

8.4

6.8

4.3

7.9

2.3

13.6

7.88.2

7.1

5.6

10.4

20

-

10

20

30

40

50

60

70

FY13FY14 1Q 2Q 3Q 4Q FY15 1Q 2Q FY16

Indonesia coal: total costs

* Repair and maintenance, salaries and allowances, etc.

COMMENTS

Continue to implement cost reduction programs:

- Optimize strip ratios, reduce overburden distance, overhaul parts, IPCC optimization

- Lower explosive cost, ship-loading cycle time, barging negotiation

The fall in oil price has also helped ITM to reduce cost further

INDICATIVE AVERAGE TOTAL COSTS

Mining cost

Other production costs*

Depreciation & amortisation

SG&A expenses

Royalty

$52

$59

$52

$42

U$/t

$48$46

2015

FY16

$49

$43

2016

$62

$43

21

CHINA COAL 2016 PRODUCTION

1.9 2.12.7 2.5 2.6

3Q15 4Q15 1Q16 2Q16 3Q16E

BEIJING

Hebi(40%),Henan1.2 Mt

Gaohe(45%),Shanxi

9 Mt

Note: * Output figures are ROM output (100% basis)** CV figures are air-dried basis*** Exchange rate of 2Q16is RMB 6.54/USD

Gaohe

2Q16 production increased from 1Q16 due to good miningconditions and higher sales;

Market showed short-term recovery signal mainly due tothe government policy of cutting down coal productionand supplying;

Selling price increased due to better demand supplybalance due to the above mentioned production controlpolicy.

Hebi

Underground working area improvements: enhance dustcontrol in underground working areas; closely monitoringthe gas and CO2 conditions in development areas adjacentto goaf(1) and increase safety management on gas control.

OPERATIONAL UPDATES

Summary 3Q15 4Q15 1Q16 2Q16

Sales (Mt) 1.9 2.2 1.9 2.4

ASP (US$/t) 49 41 37 41

Revenue (US$ M) *** 87 91 69 96

COGS (US$/t) 40 42 36 38

EBITDA (US$ M) 9 12 21 26

OperationProject

OperationProject

POWER

COAL

Gaohe

CV: 6500-8000 Kcal/kg**

3Q15 – 2Q16 COAL OUTPUT (Mt ROM)

3Q15 4Q15 1Q16 2Q16 3Q16E

China coal: operational summary

Hebi

CV: 5300-6800 Kcal/kg**

0.3 0.3 0.3 0.3 0.2

Note: (1)Part of a mine from which the mineral has been partially or wholly removed

22

UNST KHUDAG AND ALTAI NUURS PROJECTSTSANT UUL PROJECT

* Mineral Resources Authority of Mongolia

Unst Khudag Project

Received MRAM* approval of the coal mining Feasibility Study

Continuing water resource modeling and development

Currently conducting preliminary feasibility program for coal conversion and power facility scenarios including technical and market related studies

Altai Nuurs Project

Submitted mining licenses application in June.

Product testing results have been favorable which indicates suitability for certain market segments in China.

The technical pre-feasibility study and market study for commercial-scale development will be conducted in 3Q16

OVEN PLANT INSTALLATION

Mongolia coal: project developments

23

Financial summary

Power business

Coal marketing

Coal operations


6

4

3

2

1

Looking ahead7

Gas business5

24

Global thermal coal market trends: 2016 vs 2015

China*Domestic supply-side reform, rising domestic coal prices

IndiaLow power plant utilization dueto financial loss; increased domestic coal production

Other

N.Asia

-

EuropeLow UK imports; gas-switching; Coal plant retirements and increased renewable energy

OthersVietnam, S. Korea, Philippines and Malaysia expected to add c.15 Mt of demand

Global

IndonesiaHeavy rain; partly successful in clamping down illegal mining

AustraliaProducers discipline tighten supply; cost reduction continues

ColombiaRetreat supply to Asia as freight rates recovered

RussiaLow freight rates and weak Ruble keep Russian coal competitive

S. AfricaRail maintenance help to tighten supply; rising domestic demand

USAAvailable gas; deep production cuts; export not competitive

Others

Global

SUPPLY TRENDS DEMAND TRENDS

China’s steep decline appears to have bottomed out. Growth is expected

from SE Asian economies. The coming winter is likely to boost thermal

coal demand in N. Asia and may cause a short supply of HCV product.

Note: *includes anthracite and lignite

Major exporting countries have impacts from heavy rainfall. Supply

side looks to be under more control.

CHANGE

2015-16 (MT.) COMMENTS

[-3 to -13 Mt]

CHANGE

2015-16 (MT.) COMMENTS

+7

+6

+6

-19

-14

+25

-6

+2

-13

+0

+1

+2

+5

-13

25

COMMENTS

Note: *includes anthracite and lignite imports/exports

CHINA ANNUALIZED ACTUAL IMPORT 1Q13-2Q16*

CHINA THERMAL COAL IMPORTS/EXPORTS*

137178

235 252229

156181

18 11 8 6 5 4 10

2010 2011 2012 2013 2014 2015 2016F

Import

Export

Sources: Banpu MS&L Estimates

Unit: Mt

Unit: Mt

CHINA

The 276-working days policy reduces coal production significantly.

Domestic coal prices continued picking up.

Imports are likely to remain relatively high in 2H16 and will continue to absorb some of the excess seaborne exports.

Heavy rainfall in southern part increases hydro power output.

Government aims to reduce capacity by 10% or c.500 Mt within the next three years.

Met coal imports likely 10 to 15 Mtpa up, and restructuring supports international demand

Source: www.sxcoal.com/cn 31 July 2016

CHINA DOMESTIC COAL PRICES

Unit: RMB/t

251 242 244 270 284232 199 201

153 160 167 145 148 176

7 7 6 5 7 4 4 5 2 5 5 4 10 6

1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16

Import

Export

China thermal coal market review

200400600800

1,000

Ma

y-1

2J

ul-

12S

ep-1

2N

ov

-12

Ja

n-1

3M

ar-

13M

ay

-13

Ju

l-13

Sep

-13

No

v-1

3J

an

-14

Ma

r-14

Ma

y-1

4J

ul-

14S

ep-1

4N

ov

-14

Ja

n-1

5M

ar-

15M

ay

-15

Ju

l-15

Sep

-15

No

v-1

5J

an

-16

Ma

r-16

Ma

y-1

6J

ul-

16

> 5,800 kcal/kg> 5,500 kcal/kg> 5,000 kcal/kg

476450

405

26

COMMENTS

INDIA THERMAL COAL IMPORTS*

INDIA ANNUALIZED ACTUAL IMPORT 1Q13-2Q16

Sources:: HDR, Banpu MS&L Estimates

131

159

135120 126

163 168

197

171 180

142161

149171

1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16

Unit: Mt

Unit: Mt

Strong economy and low hydro increased coal-fired generation in Q2. However, recent monsoon arrival is likely to boost up hydro power in Q3.

Strong domestic production with high stocks reduced imports.

The coal-fired power plant utilization levels remain low. Power distribution companies still struggling to increase power off-take due to their financial loss.

Government initiatives to promote “India-first” coal consumption in order to “eliminate”

imports look questionable as coal imports still have an advantage for coastal coal-fired power plants.

INDIA

Note: *includes lignite grade imports

6887

107

136

163 164150

2010 2011 2012 2013 2014 2015 2016F

India thermal coal market review

27

(1) Excluding Mongolia coal

(2) Sales from Indonesia are included on 100% basis, sales from Australia and China are included on equity basis

COAL SALES(1) SOURCE – DESTINATION ANALYSIS 2016 GLOBAL COAL SALES(2) 2016 BY REGION

THAILAND

HK

CHINA

TAIWAN

ITALY

4.0

1.3

6.1

0.1

0.8

INDIA

4.0 Mt

2.4 Mt

10.2 Mt

0.6 Mt 2.3 Mt

0.1 Mt

6.4 Mt

2.2 Mt

JAPAN

1.2

5.2

MALAYSIA

0.3 Mt

INDONESIA

3.7 Mt PHILIPPINES

2.1 Mt

AUSTRALIA

9.4 Mt

OTHERS0.90.8

1.7 Mt

Indonesia coal

Australia coal

China coal

Japan, 14%

Korea, 5%

Taiwan, 5%

China , 22%

Australia21%

SE Asia19%

India9%

Others, 5%

* Illustrative target

** Include coal sales from domestic production in China

S KOREA

1.40.9

Banpu group coal sales 2016e

45.4 Mt(2)

**

28

Indicative 2016 Banpu coal sales pricing status

36%

33%

24%

5%3%

Indexed

Fixed Export

Domestic: long-term export parity

13.7 Mt*

AUSTRALIA COAL

Domestic: legacy

Unpriced

Note: *Target Sales

Fixed77%

9%

3%

11%

Fixed

Indexed

27.7 Mt*

INDONESIA COAL

Unpriced

Unsold

29

* Included post shipment price adjustments as well as traded coal** The Newcastle Export Index (previously known as the Barlow Jonker Index – BJI)

2Q16 ASP eased due to general market

weakness, JFY15/16 term effected as

well as product mixes

– ITM ASP was 6% down Q-o-Q

– CEY ASP was 5% down Q-o-Q

NEX benchmark prices remained weak

during Q2 with signs of recovery already

showing in Q3

ITM ASP 2Q16 $46.4* (-6% QoQ)

CEY ASP 2Q16 A$61.8* (-5% QoQ)

NEX** Aug 11, 2016 $67.3

Unit: $/t

0

20

40

60

80

100

120

140

160

180

200

Ja

n-0

7

Ju

l-0

7

Ja

n-0

8

Ju

l-0

8

Ja

n-0

9

Ju

l-0

9

Ja

n-1

0

Ju

l-10

Ja

n-1

1

Ju

l-11

Ja

n-1

2

Ju

l-12

Ja

n-1

3

Ju

l-13

Ja

n-1

4

Ju

l-14

Ja

n-1

5

Ju

l-15

Ja

n-1

6

Ju

l-16

Monthly NEX

Quarterly ITM ASP

Quarterly Centennial ASP

BANPU ASP VS BENCHMARK PRICES COMMENTS

Banpu ASPs vs thermal coal benchmark prices

30

Financial summary

Power business

Coal marketing

Coal operations


6

4

3

2

1

Looking ahead7

Gas business5

31

Banpu Power: 2Q16 overview

THAILAND

BLCP: continued

strong EBITDA of

$49M

JAPAN – SOLAR

One additional

Japan project Hino

3.5MW began

operations in May,

making total solar

operating capacity

13.5MW(1)

LAOS

Hongsa: EBITDA

increased 83%

QoQ from $43M

to $79 mainly from

increased availability

energy payment

CHINA

BIC: EBITDA

maintained at

comparable

YoY level

SLG: completed

de-sulphur

foundation area

and 4th batch

of auxiliary

equipment bidding

CHINA – SOLAR

Obtained rights to

acquire four

projects with

90MW in which 70

MW from 3

projects already in

operation

Remaining 20 MW

is expected to

COD in

September 2016

32

USD million

Energy Payment (EP)

Dispatch (%)

Q-Q : 5.3%Y-Y : 4.7%

Q-Q : -1.2%Y-Y : -5.1%

Total revenue

EBIT

EBITDA

Q-Q : -0.9%Y-Y : 9.4%

Q-Q: -2.2%Y-Y: -5.6%

Based on Banpu’s 50% interest

Equity income

Thailand power: BLCP in 2Q16

USD million

Availability Payment (AP)

Q-Q : 9.1%Y-Y : -1.3%

FX Loss

Q-Q : 3.7%Y-Y : -0.9%

14

-2-3

23

2Q16

7

22

1Q162Q15

FX Loss

70.5 63.8 69.6

2Q15 1Q16 2Q16

70.1 77.4 76.7

2Q15 1Q16 2Q16

146.5145.6

153.4

2Q15 1Q16 2Q16

94.6 97.9 99.5

2Q15 1Q16 2Q16

FX Gain

51.0 48.8 50.6

2Q15 1Q16 2Q16

51.5 49.5 48.9

2Q15 1Q16 2Q16

2021 20

33

84.4 76.1

137.3

4Q15 1Q16 2Q16

9.4

1.0

13.9

0.4

0.3

(0.9)

4Q15 1Q16 2Q16

USD million

Energy Payment (EP)

Dispatch (%)

Q-Q : 80.4%

Q-Q : 82.5%

Total revenue

EBIT

EBITDA

Q-Q :71.5 %

Q-Q: 872%

Based on Banpu’s 40% interest

Equity income

Thailand power: HPC in 2Q16

USD million

Availability Payment (AP)

Q-Q : 86.7%

1.3

FX Loss

9.8

Q-Q : 85.2%

FX gain

53.5 43.1

4Q15 1Q16 2Q16

53.3 41.4

76.6

4Q15 1Q16 2Q16

13.0

FX gain

94.8 100.0 100.0

4Q15 1Q16 2Q16

51.4 49.9

4Q15 1Q16 2Q16

35.5

25.4

43.6

4Q15 1Q16 2Q16

93.2

78.7

34

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16 2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

2Q15 1Q16 2Q16

57.2

102.3

51.8 22.2

59.9

21.3

36.7 36.735.7

1,998

1,1491,205

1,7661,702

1,510

2,122

1,4031,418

0.39 0.39

0.42

0.310.32

0.36

0.37 0.37

0.41

315 316

357

407401

457

302 294

357

58.1

77.9

21.6

97.4

107.5

103.9

53.0

124.9

22.9

China power: BIC in 2Q16 (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%)

Sales*

(RMB$M)

EBITDA

(RMB$M)

Utilization

(hours)

Power tariff

(RMB/kwh)

Coal price**

(RMB/t)BIC 2Q15 1Q16 2Q16

According to seasonalbusiness nature of peakheating season in Q1, the2Q16 EBITDA was atcomparable YOY level:USD 0.9M lower due tolower power sales.

According to seasonalbusiness nature of peakheating season in Q1, the2Q16 EBITDA was atcomparable YOY level:USD 1.3M higher due tohigher heat sales

As client’s demand wasgenerally stable butslightly drop due to noheating load, EBITDA in2Q16 was USD 1M lowerthan YOY and 1Q16.

35

Shanxi Lu Guang update

24% completion as of July 2016

Chimney construction has reached 21 meters; the foundation construction of de-sulfur area has been completed; the fencing wall construction was on going

4th batch of auxiliary equipment bidding has been finished

One natural draft cooling tower for 2 units

Obtained full financial commitment from lenders

Cooling tower

Unit #2 foundation

Chimney

Construction progress

Construction reached 21 meters

De-sulfur area foundation completed

Cooling tower construction rapid progress

Overall progress approx. 24% on schedule (as of July 2016)

36

Japan solar update

*Banpu effective ownership is between 40-75%

Hino

3.5 MWAC

Awaji

(COD 2017)

8 MWAC

Mukawa

(COD 2018)

17 MWAC

Nari Aizu

(COD 2018)

20 MWAC

Olympia

10 MWAC

Tokyo

Japan solar portfolio

Hino 3.5MW commenced operations in May

Awaji completed project financing and started construction

Nari Aizu and Mukawaare in the process of project financing

YTD performance 1,956MWh, 15.45% capacity factor

TK Distribution 2Q16 $0.8 M

Construction solar

Operation solar

Development solar

Hokkaido

Honshu

ShikokuKyushu

Onami

(COD 2018)

16 MWAC

Yamagata

(COD 2018)

20 MWAC

Yabuki

(COD 2018)

7 MWAC

China solar: investment progress

• BPP obtained rights to acquire 100% in four solar projects for total 90MW

• 70MW from three projects have already been in operation as of August 2016

• The remaining 20 MW is under construction and expected to complete in September 2016

• RMB 1.0 per kwh of FIT & subsidies

• Subject to conditions precedent being fulfilled, the acquisition of projects is expected to complete by end of 2016

SHANDONG

Tianjin LIAONING

Beijing

HEBEI

Henan JIANGSU

ANHUI

HENAN

Zouping (70%)

100 MW, 450 tph

Cangzhou

Zhengzhou

WuheXuzhou

Dalian

Huineng

20MW

Haoyuan

20MW

Jinshan

30MW

Huien

20MW

Construction solar

Operation solar


37

38

Jinshan project Hui’en project

Haoyuan project Huineng project

China solar: photos from the sites

20MW

20MW30MW

20MW

39

Financial summary

Power business

Coal marketing

Coal operations


6

4

3

2

1

Looking ahead7

Gas business5

40

Bcf

0

1000

2000

3000

4000

5000

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

Working Gas in Storage billion cubic feet

5-year (2011-2015) minimum billion cubic feet

3,277 Bcf (+236)[15 Jul 16]

U.S. gas market update

• Higher ASP due to gas price recovery since 2Q16

• Natural gas price jumped as hot summer keeps demand strong despite the high inventory level

• Gas rig count remains relatively stable and inventory level remains seasonally high

Source: EIA

Gas Rig Count Oil Rig Count

0

500

1000

1500

2000

0

100

200

300

400

2014 2015 2016

US Gas Rig Count Marcellus Gas Rig CountUtica Gas Rig Count US Oil Rig Count

1.3

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

3.1

Jan Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Jul

AVERAGE HENRY HUB PRICE 2016

Unit: $/Mmbtu

$2.79

25 Jul 16

2Q average

$2.19

Jan Feb Mar Apr May Jun

NATURAL GAS IN UNDERGROUND STORAGE

GAS RIG COUNT

2014 2015 2016

July

YTD average

$2.47

Q1 Q2

41

Chaffee Corners 2Q16 performance

Total revenue ($M)

EBITDA ($M)

2Q16

1.95

Note 1Q16 : 28 – 31 Mar.16(1) British Thermal Unit(2) Pipeline recovery income

Midstream

3.65

3.31

2Q16

0.34

Upstream

Unit production (Trn btu(1))

(3) Lease operating expense and work over expenses(4) Royalty, taxes, marketing and transportation expenses, and administrative expense

2Q16

1.89

EBITDA Breakdown($/Mmbtu)

0.21

0.69

1.03

2.19

0.181.75

Operating expense(3)

Selling and admin(4)

Avg. Henry Hub

Upstream Midstream(2) Ebitda

Revenue($/Mmbtu)

42

Financial summary

Power business

Coal marketing

Coal operations


6

4

3

2

1

Looking ahead7

Gas business5

43

EX

TE

RN

AL

E

VE

NT

SC

OR

PO

RA

TE

E

VE

NT

S

DIR

EC

TIN

DIR

EC

TKey external and corporate events

Rights offering and warrant issues

approved by AGM

4Q15 Analyst meeting

4Q15 SET Opportunity Day

Announced 2H15 dividend of

Bt0.50/share

2015 Result Announcement

China GDP was 6.9% in 2015; expected to be 6.7% in 2016

China announced no approval of coal mines in the next three years

2Q16

Indonesia to relax foreign ownership rules in power

Myanmar’s government targets coal as main source of power

HBA thermal coal price increased 1.4%

Vietnam demands more Australian coal

BOT likely to keep rates on hold for the rest of 2016

ADB cuts Thai growth forecast

Announced US$554M investment plan for 2016-20

Announced plan to issue 1.29b new shares in Rights offering (to raise up to THB 6.45Bn)

Full commercial operation of Hongsa Power Plant

First investment in unconventional shale gas

1Q16 result

Announcement on China solar projects

2H15 dividend paid Bt0.5/share

Completion of Rightsoffering & capital increase warrants issue

China announced reduction in coal mine working days to 276

1Q16

44

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

CHINA COAL

Note: Hebi and Gaohe revenues are not consolidated in Banpu income statement.

SALES (Mt)

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

REVENUE (US$M)

59 48 49 38 48

2Q15 3Q15 4Q15 1Q16 2Q16

1.1 1.0 1.1 1.0 1.2

2Q15 3Q15 4Q15 1Q16 2Q16

AS

P 55 49 45 39 41

2Q15 3Q15 4Q15 1Q16 2Q16

NE

X*

60 59 53 51 52

Equity basis

Equity basis

Domestic

Export

Banpu group Q-Q revenue analysis: coal operations

AUSTRALIA COAL (CENTENNIAL)

1.7 2.3 1.8 2.4 1.8

3.1 3.42.8

3.4 3.0

2Q15 3Q15 4Q15 1Q16 2Q16

SALES (Mt)

AVERAGE SELLING PRICE (A$/t)

REVENUE (A$M)

198 208 177 216 179

2Q15 3Q15 4Q15 1Q16 2Q16

AS

P

64 61 63 63 59

2Q15 3Q15 4Q15 1Q16 2Q16

NE

X*

60 59 53 51 52

Equity basis

Equity basis

Domestic

Export

INDONESIA COAL (ITM)

5.9 5.9 6.1 5.8 5.4

6.9 6.8 7.1 6.9 6.2

2Q15 3Q15 4Q15 1Q16 2Q16

SALES (Mt) 100% basisDomestic

Export

AVERAGE SELLING PRICE (US$/t)

REVENUE (US$M)

397 382 383 331 278

2Q15 3Q15 4Q15 1Q16 2Q16

NE

X*

AS

P

60 59 53 51 52

100% basis

57 56 53 48 45

2Q15 3Q15 4Q15 1Q16 2Q16

45

405 344

297

163

159

140

34

49

33

2Q15 1Q16 2Q16

Note: Revenue from others is included in Coal Indonesia.

US$ M

602552

469-22% YoY

Coal Australia

-12% QoQ

-14% YoY

Coal Indonesia

-14% QoQ

-27% YoY

Power

-33% QoQ

-4% YoY

Power

Coal Australia

Coal Indonesia

-15% QoQ

Banpu consolidated sales revenues

46

INDONESIA COALAUSTRALIA COAL

Note: AUD exchange rate – US$ 0.745A$ (Average of 2Q16)

Coal sales Gross margin

2Q15 1Q16 2Q16

23%24%

163

140

Indonesia coal gross margin: 30%

37%34%

US$ MUS$ M Australia coal gross margin: 28%

159

28%

32%

2Q15 1Q16 2Q16

34%32%

283

396331

30%

Banpu consolidated coal gross margin 2Q16: 29%

47

47 5132

3

(10) (5)

29 30

30

26 42

40

2

2Q15 1Q16 2Q16

Banpu consolidated EBITDA

USD million

104

113

Coal - China

Coal - Indonesia

-32% Y-Y

-36% Q-Q

Coal - Australia

-1% Q-Q +3% Y-Y

Power

-4% Q-Q

+57% Y-Y

99-5% YoY

-13% QoQ

Gas - USA

Gas

Power

Coal Australia

Coal China

Coal Indonesia

48

Banpu: 2Q16 consolidated NPAT

17

8

NON-

RECURRING

ITEMS

NPATOPERATING

PROFIT

POWER

35

RECURRING

PROFIT

FINANCE

CHARGES

(35)

52

2Q16 NET PROFIT AFTER TAX

UNIT: $M


UNIT: $M

COAL

21

OPERATING

PROFIT

54

(33)

FINANCE

CHARGES

RECURRING

PROFIT

21

(5)

NPATNON-

RECURRING

ITEMS

OTHERS

FX LOSS

DERIVATIVES

POWER

33

COAL

17

(5)(7)

(15)

+6% Q-Q

+94% Y-Y

-19% Q-Q

+2% Y-Y

Non-Recurring Items• FX gain $ 3M• Derivative loss ($10M)• Others ($2M)


UNIT: $M

COAL

12

OPERATING

PROFIT

30

(33)

FINANCE

CHARGES

RECURRING

PROFIT

(3)

(2)

NPATNON-

RECURRING

ITEMS

OTHERS

POWER

18

1

FX GAIN

DERIVATIVES(17)

17

(9)

Step 1: Contact

broker to issue

warrant certificate

from TSD

Step 2: Complete

warrant exercise

form and process

for payment

Step 3: Submit the

relevant documents

to Bualuang Securities

- Exercise price 5 THB / share

- Minimum exercise 100 warrants/time

Procedures

Banpu Warrants (BANPU– W3) conversion guideline

1st warrant

notification dates

1st warrant

exercise date

2nd warrant

notification dates

2nd warrant

exercise date

3rd warrant

notification dates

3rd warrant

exercise date

4th warrant

notification dates

4th warrant

exercise date

Warrant exercise timeline

29 Aug

-2 Sep

5 Sep 25 Nov

–1 Dec

2 Dec

FY 2016 FY 2017

24 Feb

-2 Mar

3 Mar

“SP” date

10 May

Book

closing

15 May 19 May

-2 Jun

5 Jun

MOC register

8 Sep

First trading day

of new shares*

12 Sep

MOC register

and first

trading day of

new shares*

MOC register

and first

trading day of

new shares*

MOC register

and first

trading day of

new shares*

1) Warrant exercise form

2) Payment evidence

3) Warrant issued by TSD

4) Copy of ID card

1

2

Sell

warrants

in the

market

Exercise

warrants

BANPU W3

(period 1 year)

Terms

*MOC Register and first trading day of new shares will follow within 1 week after exercise date

49

50

Financial summary

Power business

Coal marketing

Coal operations


6

4

3

2

1

Looking ahead7

Gas business5

51

Towards strategic sustainabilityC

ON

VE

NT

ION

AL

• Australia coal Ebitdastabilized

• Indonesia output on target

• Chaffee Corners performance on target

• Gas price rising

• Developing margin-enhancement plans

• Developing plans for new logistics and marketing businesses (early stages)

• Strong Hongsa Ebitda growth

• SLG construction progress• Banpu Power IPO: capital

for further growth

• China and Japan operating solar capacity growing

• Thai solar: first step taken*• Banpu Power IPO: capital

for further growth

UPSTREAM MIDSTREAM DOWNSTREAMN

EW

*Up to 4MW of solar rooftop investment subject to contingencies

Appendices

58

53

Sources: Power development plans of each country, WEO’s special report on SE Asia(1) includes hydropower capacity; (2) other Greater Mekong Subregion comprises Cambodia, Laos, Myanmar, and Vietnam;(3) other South East Asia comprises Malaysia, Singapore, Philippines, East Timor, and BruneiAsia-Pacific power growth 2015 – 2020

Installed capacity (GW)

COUNTRIES SELECTED ARE FOR

ILLUSTRATIVE PURPOSES ONLY*

18%

17%

2015

21%

2020

1,979

10%

1,462

43

14%

13%

2015 2020

19%

15%

54

3% 3%78%72%

20202015

9

4

2020

18%12%

281

28%

278

2015

18%

JAPAN

LAOS

THAILAND

Hydro

RenewablesCoal-fired

2015 2020

Others

Nuclear

CHINA

+184

+517

+46

+3

+4

+11

+0.1

+5

• >250GW capacity growth from renewables is expected in the next four years

• Major growth in absolute MW would come from China, Japan and India

• Renewable energy excl. hydro is expected to constitute c.20% of total generating capacity by 2020 (except for Laos and Vietnam)

• Potential upside with technology advancement

+49

+4

+2

22

2020

19%

2015

17

10%

No

breakdown

available

PHILIPPINES

+5

51

6%

2015

10%

2020

10%

94

11%

INDONESIA

+7+4

+43



AUSTRALIA

Note: Map not drawn to scaleSource: Frost & Sullivan, EIA, CEA, AER, WEO, Australian Gov’t, RET, Cleantechnica

0.5%

34

26%

2015

46%

2020

1%

73

VIETNAM

+2

+39

+5

INDIA

13%

15%

2014*

13%

282

2020

16%

385

+27

+103

+13

Unit: GW

2020

21%

46

15%11%

16%

52

2015

+6

+6

+0.5

54

Laos renewables market

73

126

2025*20202015


Unit: MW

43

23

109

2025*20202015

4836

22

2025*20202015

• Primary focus on hydro-electricity generation, with target to increase renewables by 150MW 2015-20

• Target non-hydro renewables to be 30% by 2025

• Long-term focuses on biomass and wind

• Primary focus on untapped hydropower potential of up to 26GW

BANPU’S POWER ASSETS IN LAOS

HONGSA (40%)

1,878 MW

Note: * According to National Sustainable Energy Strategy Report 2014, (1) Equity basis Source: Laos’ Renewable Energy Development Strategy (REDS) 2011, Ministry of Energy and Mines 2015

36

179

20202015 2025*

Solar

WindBiomass

Waste


55

Indonesia renewables marketRENEWABLES TARGET BY TYPE

Unit: GW

15

6

2

2015 20302020

Source: National Energy Policy, IRENA Renewable Energy Capacity Statistics 2016, Indonesia Energy Projection towards 2050 (2014)

13

4

1

2020 20302015

Biomass

Geothermal

• Renewables to constitute 25% of total energy mix by 2025

• Primary focus on geothermal and biomass

• 2015 installed capacity of 1Gw accounts for only 3% of its 29GW geothermal energy potential (equivalent to about 40% of world’s total geothermal reserves)

• In order to boost renewables development, the government provides Geothermal Fund Facility (GFF) to geothermal mining license holders to support exploration activities

56

Vietnam renewables market

0.8

2030

2

20202015

<0.1


Unit: GW

5

0.2

2020 2030

1

2015

Source: ADB, National Plan for Power Development 2011-20

0.5

203020202015

2

<0.01

• Vietnam National Plan for Power Development 2011-20 targets renewables as 4.5% by 2020 and 6% by 2030

• Solar and wind are priority, with significant growth for solar under long-term strategy

Biomass

Wind

Solar

57

India renewables marketRENEWABLES TARGET BY TYPE

Unit: GW

Note: * Government’s targetSource: CEA, Frost & Sullivan Analysis

Biomass

Solar

Wind

3227

2015

127

2020 2030*

204

20202015 2030*

254

85

2030*2015 2020

• Renewables to constitute 15% of total energy mix by 2020 and 30% by 2030

• Primary focus on wind and solar energy

• Incentives include FIT, 10-year income tax holiday (100%), custom duty and excise duty exemption on equipments, tax rebates on manufacturing of solar and wind components

n.a.

58

Australia renewables marketRENEWABLES TARGET BY TYPE

Unit: GW

Wind Solar

8

4

20202015

2

2020

0.2

2015

• Australia’s Renewable Energy Target set renewables growth for 6GW during 2015-20 to 23.5% of total capacity

Source: AER

59

Indonesia coal gross margin 2Q16 : 30%

2Q15 1Q16 2Q16

30%34%

32%

283

Indonesia Coal

2Q15 1Q16 2Q16

Indominco

30%25%

32%

163174

164

2Q15 1Q16 2Q16

41%36%

25%

72

Trubaindo

114

93

2Q15 1Q16 2Q16

Jorong

42% 48% 33%

13 16 9

52%

2Q15 1Q16 2Q16

12

26% 17% 28%

Kitadin

18 13

396

331

2Q15 1Q16 2Q16

Bharinto

2734

35%29%

52%

2Q15 1Q162Q16

TandungMayang

0.4

16% -6%

42%

42

1

46

35%

US$M

60

NPAT IMPACT 2Q2016

(US$m)

APPROXIMATE FX EXPOSURE (US$m)

NPAT 5% SENSITIVITY 3Q2016

(US$m)

+3

+0.1

-0.4

+3

NET

AUD

ID R

THB & O THER

Banpu: THB bond and others

+4

+70

AUD

ID R

THB & O THER

+16

+0.2

-3

+19

NET

AUD

ID R

THB & O THER

NET LIABILITY NET ASSET

Moderate growth

Moderate growth

RBA cut rates 25 bps in +Aug

Slowly recovery GDP

Assuming 5% depreciation of local currencies against USD

CURRENCY EXPOSURE

ITMG: IDR asset and liabilities

CEY: USD asset

Net

-380

FX impact analysis guidance on P&L

61

GEARING RATIOS

Banpu gearing and foreign exchange structure

DEBT FX STRUCTURE

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 June 2016)

USD Fixed44%

USD Float25%

AUD Fixed

2%

AUD Float7%

THB Fixed16%

THB Float6%

Total gross debt: US$3.62 billionAs of 30 June 2016

1.18 1.40 1.44

Net debt / Equity1 (x)

54% 58% 59%

Net market gearing2 (%)

Net debt / EBITDA (x)

4.4 5.9

2014 2015 2Q162014 2015

62

Banpu group EBITDA breakdown

Note: all ownership 100% unless otherwise shown.*BIC = Banpu Investment China

9 11 22 26

-2 -4 -2 -2

1 3 4 0

12 5 1 2

6 3 3 1

25 25 18 3

21 35 23 28

Jorong

29 55 43 79

37 31 50 49

-1 -2 -3 -7

65 71 50 33

50%

40%

Power & New energy

40%

45%

70%

Gaohe

Hebi

BLCP

HONGSA

BIC*

Zouping

6 5 6 5

Zhengding

4 9 10 3

Luannan

3 8 9 3

& holding companies

65%

Indominco

Trubaindo

Kitadin

AACI OVERHEAD

Unit: US$M

100%

34 7 40 34

Consolidated NOT consolidated

-1 -1 -1 -1

13 21 23 11

Unit: AUD Mil

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

105 115 113 99

Bharinto

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16 3Q15 4Q15 1Q16 2Q163Q15 4Q15 1Q16 2Q16 3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q163Q15 4Q15 1Q16 2Q163Q15 4Q15 1Q16 2Q16

63

Banpu group net debt breakdown

Note: all ownership 100% unless otherwise shown.

2502 25622122

2203

85 225 226 187

& holding companies

2,727 2,893 3,241 3,212

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%

730 739 709 761-344 -268 -295 -266

-15 -90 -85 -81 -2 -1 -1 -2

323 315 275 2690

-9 -15 -27

Unit: AUD Mil

Unit: US$M

Consolidated

NOT consolidated

Net debt

Net cash

3Q15 4Q15 1Q16 2Q163Q15 4Q15 1Q16 2Q16

3Q15 4Q15 1Q16 2Q16

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

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

3Q15 4Q15 1Q16 2Q16

Unit: USD million

Sales revenues – Power (BIC)

Cost of sales

Gross profit*

GPM

Sales revenues – Coal

Total sales revenues*

Gross profit - Coal

Gross profit – Power (BIC)

GPM – Power (BIC)

GPM - Coal

-23%

YoY%

-22%

-24%

-26%

-4%

21%

Note: * Including other businesses

-22%

QoQ%

-15%

-14%

-18%

-33%

-45%

49

(374)

179

32%

1Q16

552

497

151

24

49%

30%

34

(420)

182

30%

2Q15

602

561

167

11

33%

30%

Banpu consolidated : operating profit

33

(330)

140

30%

2Q16

469

429

124

13

41%

29%

64

65

Unit: USD million

Gross profit

GPM

SG&A

Royalty

Other income

EBIT

EBITDA

EBIT - Coal

EBIT - Power

Income from associates

EBITDA - Coal

EBITDA - Power

Mining property

Banpu consolidated : operating profit

EBITDA - Gas

182

30%

(82)

(62)

7

56

104

2Q15

34

22

19

78

(8)

26

-

140

30%

(69)

(44)

9

58

99

2Q16

20

38

26

57

(4)

40

2

11

71

179

32%

(67)

(52)

8

71

113

1Q16

(7)

31

40

42

-

-22%

-18%

-13%

QoQ%

-36%-3%

-20%

-4%

n.m.

-41%

76%

-23%

5%

-5%

YoY%

-28%

57%

n.m.

66

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

Unit: USD million

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)

5%

YoY%

n.m.

n.m.

355%

Deferred tax income (expenses)

-18%

QoQ%

-47%

n.m.

-37%

Banpu consolidated : net profit

Gain (Loss) on Derivatives Transactions

58

2Q16

(33)

(2)

(5)

(2)

-

5

(11)

7

3

8

0.002

10

(10)

56

2Q15

(30)

(2)

(8)

2

(3)

(18)

(13)

2

17

(2)

(0.001)

(2)

(17)

71

1Q16

(31)

(2)

(9)

(5)

(6)

(17)

11

15

9

(15)

(7)

(5)

(0.002)

67

Unit: 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

Centennial : income statement

YoY%

1%

-8%

-21%

47%

-2%

-14%

-52%

n.m.

QoQ%

5%

19%

-15%

-9%

-11%

-12%

-14%

n.m.

Deferred tax income

2Q15

(123.7)

38.9

24%

(11.1)

(26.8)

5.5

3.1

162.6

4.5

(6.5)

(1.0)

2.0

(8.6)

(8.7)

-

-

2Q16

(100.6)

39.3

28%

(8.8)

(24.6)

8.1

3.0

139.9

2.2

(6.6)

(0.8)

0.2

(4.0)

(6.4)

-

1.5

1Q16

(122.1)

37.4

23%

(10.3)

(20.7)

8.8

3.4

159.4

2.5

(6.3)

(0.8)

(1.0)

(2.1)

(3.7)

-

0.9

68

Note: 1. Bar width is indicative of the equity production contributions to Centennial2. 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

1.81.4

1.01.4 1.4 1.2 1.4 1.5

2.5

1.6 2.2 1.1

2.11.6

2.21.6

3.0 3.2

2.52.8 3.1

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16e 3Q16e 4Q16e

4.3

Total equity ROM (Mt)

WE

ST

ER

NN

OR

TH

ER

N

LW relocation

2015 2016e

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%)

3 wks

6 wks

Awaiting Approvals

3wks

ACTUAL

2 wks

3 wks

8wks

3.53.6

Australia coal: quarterly equity ROM output

PLANNED (INDICATIVE ONLY)

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