CREATING VALUE IN MINING IP LP Commercial use CEM FDG : Flue Gas Desulfurizer ESP : Electrostatic...
58
2Q14 results investor and analyst update 14 th August 2014
Transcript of CREATING VALUE IN MINING IP LP Commercial use CEM FDG : Flue Gas Desulfurizer ESP : Electrostatic...
2Q14 results
investor and analyst update
14th August 2014
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.
2
3
Financial summary
Power business
Coal marketing
Coal operations
Focus: Hongsa power
5
4
3
2
1
4
Project development timeline
Note : * Laos Holding State Enterprise
DEVELOPMENT
POWER
COAL
FINANCING
2007 2008 2009 2010 2011 2012 2013 2014 20162015
JDA with BPP and
Ratch
Dec
Shareholders Agreement
signed
Feb
Concession agreement signed
Nov
Feasibility study
EGAT PPA signed
Apr
EDL PPA signed
May
Mining equipment
service with Sandvik and
MMD signed
Apr
Mining service with ITD signed
Oct
1st
unit COD
Jun
2nd
unit COD
Nov
3rd
unit COD
Mar
Debt Financing
closed
Aug
First draw down
Oct Loan drawdown period
Tariff MOU with EGAT
May
Equity financing from LHSE*
Power EPC
signed
Dec
Feasibility study
5
Key stakeholders of the project
Note : * LHSE - Laos Holding State Enterprise** CPE - Chang Pinit Engineering
BANPU RATCH LHSE*
40% 40% 20%
1,473 MW EGAT
100MW
EDL
Offtake: 25 years
67km 500KV line to Thai-Lao border115km 115 KV line to LuangPrabang
Gross nominal capacity: 1,878 MW (3x626 MW)
• Auxiliary power consumption 75x3 MW
• Internal usage 75 MW
Coal fired power plantConcession: 25 years
MuangNguenEnterprise
Limestone
EGAT
O&M
Xian Electric Engineering
Henan Electric Power Transmission
Transmission
China National Electric Equipment Corp. (CNEEC)
Harbin Group
Plant
POWER
Mining method: truck and shovel
Coal type: LigniteConcession: 25 yearsResources
577 Mt (493 Mt in measured category)
Reserves 393 MtCoal required: 371Mt
Production: 14.3 Mtpa
Coal quality• Gross CV :
2,492kcal/kg GAR• Total moisture : 34%• Ash : 25%• Sulphur : 0.7%
COAL
Mr. Eisuke AsadaManaging Director
Mrs.WarangkanaWongkhaluangFinance and AccountingDeputy Managing Director
Management appointed by Banpu
ITD Sahakol CPE**
Contractors(Operation)
Sandvik MMD
Equipment
MPC CPE**
Contractors(construction)
RWE
Planning
Government of Laos
Concession provider
6
Location of Hongsa power plant
Nan LAOS
THAILAND
MYANMAR
CAMBODIA
Bangkok
LuangPrabang
NAN
THAILAND
Hongsa
XAYABOURY
LUANG
PRABANG
LAOS
Hongsa and MuangNguen Districts, Xayaboury Province
7
Schematic layout of Hongsa
Eastoverburden
zone
Nam Ken Dam
Nam Louk Dam
Overburden flow
Coal flow
• Concession area : 76.4 km2
• Concession period : 25 years
Westoverburden
zone
East lake
Main pit
Tumbon ChondaenSongkhwae district
Nan provinceThailand
• Area : 272,000 m2
• Max. stock : 0.75 mtreserved for 15 days
Luang prabangLaos
Overburden Conveyor line
Overburden crusher
Coal crusher
Coal stockyardHongsa
substation
LAOS
THAILAND
LuangPrabang
8
Hongsa power projectNAM KEN DAMPOWER PLANTMAIN PIT
NAM LUAK DAMCONVEYOR LINE
SUBSTATION
COAL STOCK YARD
TRANSMISSION LINE
SPREADER
COMMENTS
9
Plant technology and emissions
● Proven technology
● Strong environmental management - compliance with World Bank standards
● Emission control and monitoring
FGD: up to 92% efficient in removing sulfur dioxide from flue gas
ESP: up to 99.83% efficient in removing particulates from flue gas
CEM: installed at stack end to measure NOx, SOx, TSP, O2, temp. etc; data monitored in real time at control room linked to the government
● Recycling and treatment
Closed cycle cooling tower
All waste water is well treated before being discharged
Some fly ash used commercially, the rest stored on site
POWER PLANT DESIGN TO REDUCE ENVIRONMENTAL IMPACTS
FAN MILLCOAL SILO
TURBINE
GENERATORCOOLING SYSTEM
PLANT
BOILER
ESP
Flue Gases
Fly Ash
Bottom Ash
Gypsum
PulverisedCoal
Steam
Condensate
DemineralisedWater
Raw Water
Electricity
HP LPIP LP
Flue Gases
500kV to EGAT Grid System
115kV to EDL Grid System
WASTE DUMP
AREASLAG SILO
FGD
GENERATOR
SWITCHYARDCONDENSER
COOLING
TOWER
FEED
HEATING
WATER TREATMENT
PLANT
FLY ASH
SILO
EAST LAKE
COAL
STOCKYARD
Flue Gases
HP LPIP LP
Commercial use
CEM
FDG : Flue Gas Desulfurizer
ESP : Electrostatic Precipitator
CEM : Continuous emissions monitoring system
COMMENTS
10
Tariff and cost structure
● AP & EP tariff structure similar to BLCP’s
● Commodity price risk is still pass-through
Pass-through for BLCP is for variation in global benchmark coal prices
Pass-through for Hongsa is for variation in diesel price
● Potential upsides due to cost reductions during operations
TARIFF AND COST STRUCTURE
Revenue Cost
APR1
VOM
Diesel
FOMAPR2
Fuel charges
VOM
Depreciation
VOMFOM
Depreciation
APR1
APR2
Fuel charges
VOM
EP Coal cost
Fixed O&M
Capital cost &profitAP
Variable O&M
Coal cost
Coal price pass-through
Diesel price pass-through
Other mining costs
SIMPLIFIED & ILLUSTRATIVE
25%
THB Loan50%
Equity25%
PROJECT REVENUE AND EBITDA
11
Capital structure and financials
FINANCING STRUCTURE
US$mInvestment cost
US$ 3.7 bn
THB Loans
Consortium of 11 banks
• Tenor: 17 years 8 months
• Avg. loan life: 7.5 years
• Avg. repayment: 7.8% p.a.
“Hongsa is the largest project loan ofany kind closed in the Thai bankmarket.”
Infrastructure Journal and Project Finance Magazine (2011)
Banpu 40%
Ratch 40%
LHSE 20%
Note : revenue and EBITDA based on actual tariff, not TFRIC 4 ,20
INDICATIVE ONLY
Majority of loan has been paid off
-
100
200
300
400
500
600
700
800
900
1,000
2015 2025 20352015 2041
Front load structure
USD Loans
12
Risk management
CONSTRUCTION
PO
TE
NT
IAL
IS
SU
ES
CO
MM
EN
TS
COMMISSIONING POST-COD
Project
• Delays
• Cost overrun
• 89% progress, in line with plan
• Construction within budget
• Fixed price contract with EPC
EGAT power line
• Delays
• Good track record of EGAT transmission construction
• Financially covered under PPA
Mine
• Production ramp up to 14 mt by 2016
• Outsourcing to multiple contractors
• Systematic mine planning
Power plant
• Fine-tuning boiler to Hongsa coal
• Pilot testing of boiler with Hongsa coal
• O&M experience
Mine
• Reliability
• Operating costs
• Diesel price variations
• Diversified contractors
• Medium and long-term contracts
• Diesel price pass-through
Power plant
• Reliability
• Operating costs
• Proven technology
• Planned outage factor in first year for potential interruption
• O&M outsourced to EGAT
Community development
• Concession agreement requirements
• Sustainable development program
• Some communities already achieved targets
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Sustainable development
RESETTLEMENT PROGRAM
Note : * Government of Laos
Hongsa power project overview
Hongsacity
Ban Mai
Ban Champa
Ban Nanongkham
Ban Nasaikham
Ban Namaiyom
Resettlement village
New houses constructed in residential area
Community school
Career development
(organic vegetable farming)
Career development (weaving and
dyeing cotton)
COMMUNITY PARTNERSHIP
ECONOMIC DEVELOPMENTSUSTAINABLE DEVELOPMENT
• Residents to earn income
above National Rural
Poverty Line within 2 years
• Income must increase by
150% from average baseline
within 10 years
450 households relocated since July 2012
Benefits include:
• Cash compensation, agreed by GOL*
• At least 1 person per household employed
• 2 ha. farmland allocated per resettler
Luang Prabang
THAILAND
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Economics and social benefits of Hongsa project
• Baseload of electricity supply
• Fuel source diversification
• Competitive tariff with limited exposure to fuel price
• Baseload of electricity supply to Thailand
• Reliable electricity
Coal
Hydro
With Hongsa
capacity
14%
68%
Gas
Coal
Hydro
2013 installed
capacity
34 GW
2013 installed
capacity
3 GW
• Social and economic development from project revenues
• Employment opportunities and training for communities
• Infrastructure development
Nan
Hongsa
Population: 6.4 million
Area: 236,800 sq.km.
GDP (2013): $11.1bn
Major export(2013): $2.4bn
• Minerals (41%)
• Hydropower (21%)
LAO PDR.
Thailand’s levelized tariff in cents/kwh
6.7 7.2 9.5
13.5
Hongsa Current
IPP coal
New
coal
New IPP
gas
INDICATIVE ONLY
15
Synergies within Banpu’s asset portfolio
Note : * Coal production figures are based on 2014 target with the exception to Hongsa which is at full operation
** Unit of BIC’s power is in MW equivalent which is derived from the capacity of power and steam combined.
100% reserves
Equity reserves Equity power capacity
100% power capacity100% production
Equity production
AUSTRALIA INDONESIA CHINA/MONGOLIA THAILAND/LAOS
317
206
201
89
393
148
8.2
3.6
14.3
5.7
19.5
15.6
1,434
717
BLCP
1,878
751
Hongsa
14
Bontang Power 386**
Power 332**
BIC
29.5
19.2
POWER
RESERVES
(Mt)
PRODUCTION*(Mtpa)
INSTALLED CAPACITY(MW)
COAL
395
328
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Financial summary
Power business
Coal marketing
Coal operations
Focus: Hongsa power
5
4
3
2
1
2Q14 YoY QoQ
Sales revenue A$218m ▼ 20% ▼ 24%
EBITDA (pre FX) A$36m ▼ 43% ▼ 38%
PBT (pre FX) A$(12)m ▼174% ▼272%
Unrealised FX3 A$0m ▲ 101% ▼ 91%
NPAT A$(8)m ▲ 69% ▼196%
Gearing(Net debt to net debt + book value of equity)
37%
CAPEX4 A$40 ▲13% ▲10%
17
Australia coal: operational and financial summary
2014 OUTPUT (ROM EQUITY BASIS) KEY UPDATES
Production
● Equity ROM 3.7 Mt (down 13% YoY), with two longwall changeovers impacting 2Q14
● Focus on productivity and cost reduction continues
● Monthly production record at Springvale
● On track for annual production target of 15.6Mt
● Newstan to return to care & maintenance from 1 Aug 14
ASP
●2Q14: ~A$67/t v 1Q14: ~A$71/t (2013 ASP ~A$70/t)
●Sales volume down 14% YoY
●YTD Domestic: export split 59%:41% (2013: 62%:38%)
●2Q14 sales focused on lower-priced legacy domestic obligations (1Q14 having benefited from higher export tonnes at higher prices)
Note 1: Mannering placed on “Care & Maintenance” November 2012 –benefiting from new production sharing arrangement with neighbouring mine.
Note 2: NCIG = Newcastle Coal Infrastructure Group; PWCS = Port Waratah Coal Services; PKCT = Port Kembla Coal Terminal.
FINANCIAL SUMMARY
Wollongong
PKCT
Charbon
Airly
NeubeckAngus Place
Clarence
Springvale
Mandalong Myuna
Newstan
Sydney
PWCS
Newcastle
Inglenook
Open-cut mine
Project
Underground mine
Port
Power station
RoadRail
WESTERN OPERATIONS: 7.1 Mt
NORTHERN OPERATIONS: 8.5 Mt
NCIG
Mannering
Note 3: Pre tax impact of A$ translation of US$ denominated net debt.
Note 4: Plant & Equipment.
Note 5: Newstan placed on "Care & Maintenance" from 1 August 2014.
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MANDALONG OTHER OPERATIONS
Australia coal: Northern operations quarterly output
1.9
0.7
1.5 1.51.2
1.9
LW MOVE SCHEDULE
COAL OUTPUT (Mt)*CV: 6,700 kcal/kg**
Mth 1
Mth 2
Mth 3
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e 4Q14e
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
0.6 0.5 0.5 0.7 0.7 0.7
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
COAL OUTPUT (Mt)*CV: 6,700 kcal/kg**
● Mandalong
Production down 20% QoQ and 36% YoY, with 2Q14 impacted by a changeover
Changeover completed in 19 days, 10 days ahead of expectations.
● Myuna
Continues to perform strongly
Note: *ROM output on an equity basis**CV figures are air-dried basis
7 wks
COMMENT
3 wks
NEWSTAN EXTENSION
LW MOVE SCHEDULE
Mth 1
Mth 2
Mth 3
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
● Newstan: conditions remained variable through 2Q14.
Decision made to return mine to Care and Maintenance
Continue to progress both Northern Coal Services and Newstan Extension Projects
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
Completion date extended
19
● Airly: Production up 468% QoQ on first full quarter.
● Angus Place: Production down QoQas longwall changeover completed during quarter, with strong production continuing.
● Clarence: Continues to perform strongly.
● Springvale: New LW continues to break records, with 416,000 tonnes mined in June (despite variable conditions).
1.0 1.00.7 0.8
1.1 1.0
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
OTHER OPERATIONSANGUS PLACE SPRINGVALE
Australia coal: Western operations quarterly output
0.20.4 0.5 0.4 0.4 0.30.5 0.5 0.5 0.3 0.3 0.5
COAL OUTPUT (Mt)*CV: 6,700 kcal/kg**
COAL OUTPUT (Mt)*CV: 6,700 kcal/kg**
LW MOVE SCHEDULE
Mth 1
Mth 2
Mth 3
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e 4Q14e
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
COAL OUTPUT (Mt)*CV: 6,700 kcal/kg**
LW MOVE SCHEDULE
Mth 1
Mth 2
Mth 3
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e 4Q14e
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
Note: *ROM output on an equity basis: Angus Place and Springvale 50%, Clarence 85% and Charbon 95%
**CV figures are air-dried basis
COMMENT
3wks
1 wk
3wks
6wks
0
10
20
30
40
50
60
COMMENTS
20
Australia coal: operating costs
● Focus on cost control and productivity continues to deliver improved costs.
● 1H14 performance better than plan following strong production and cost control – resulting in cost savings of $17million YTD.
● Targeting further group productivity improvements of c.10% (2013: c.9%).
INDICATIVE AVERAGE PRODUCTION COSTS*
General expenses
Coal handling & preparation
Open-cut contractor cost
Repairs & maintenance
Stores & supplies
Labour
Depreciation
* These figures do not include selling, distribution and royalty costs** Based on ‘sold’ production
$58
A$/t
Cash overhead
$51$52
1Q 2Q 3Q 4Q
2013
FY13 1Q Full year2014E
Planned cost reduction 2013 achieved
$51 $51$50 $49$50
2Q
2014
KEY UPDATES
21
Indonesia coal: operational and financial summary
OUTPUT 2014 (100% BASIS, SALEABLE COAL)
FINANCIAL SUMMARY
2Q14 YoY QoQ
Sales revenue $462m ▼ 11% ▼ 8%
EBITDA $75m ▼11% ▼ 28%
NPAT $52m ▲ 4% ▼ 46%
Gearing(Net debt to net debt + book value of equity)
n.a.
CAPEX $8m
East Kalimantan
Bunyut Port
Balikpapan
Palangkaraya
Banjarmasin
Central Kalimantan
South Kalimantan
Kitadin -Embalut1.0 Mt
Indominco15.2 Mt
Trubaindo7.3 Mt
Bharinto3.0 Mt
Jorong1.2 Mt
Samarinda
Jorong Port
Operation
Project
Operation
Project
POWER
COAL
Bontang Coal Terminal
Captive coal-fired power project
KitadinTandung Mayang1.8 Mt
2014 target: 29.5 Mt ● Indominco: 2Q14 production was lower than target due to heavy rainfalls.
● IPCC Project : Test run and system adjustment done by the Operation team. Submit monthly report to ESDM and in process of getting the certification.
● Trubaindo: 2Q14 production achieved slightly lower than plan due to higher rainfalls.
● Kitadin Embalut: 2Q14 production achieved as according to plan
22
0.3 0.3 0.3 0.3 0.3 0.3
JO
RO
NG
0.3 0.2 0.4 0.30.3 0.3
17.118.2
16.717.7
15.5
2.0 2.0 1.9 1.7 1.8 1.9
0.6 0.50.2 0.5 0.5
0.7
2.5 2.7 3.0 3.2 2.9 3.3
1.11.3 1.0 0.4 0.7
0.70.5
0.6 0.70.6 0.5
0.44.1
4.64.7
4.2 4.14.4
EMBALUT AND JORONGINDOMINCO - BONTANG TRUBAINDO - BHARINTO
Indonesia coal: quarterly output
Note: *Output figures are 100% basis**CV figures are air-dried basis
COAL OUTPUT (Mt)*CV: 6050 - 6500 kcal/kg**
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
E B
LO
CK
TD
MY
WB
LO
CK
STRIP RATIOS (bcm/t)
9.9
14.5
IND
OM
INC
OT
DM
Y
18.9
9.5
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
24.5
8.3
COAL OUTPUT (Mt)*CV: 6250 - 7200 kcal/kg**
TR
UB
AIN
DO
BH
AR
INT
O
STRIP RATIOS (bcm/t)
TR
UB
AIN
DO
11.3
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
2.6
11.9
BH
AR
INT
O
6.96.4
COAL OUTPUT (Mt)*
CV: 5750 kcal/kg**
CV: 5300 kcal/kg**
EM
BA
LU
T
STRIP RATIOS (bcm/t)
8.9
JO
RO
NG
EM
BA
LU
T
5.5
10.0
6.9 6.7
9.6
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
4.9
11.24.3
10.3 10.0
8.4
EA
ST
WE
ST
17.5
8.6
2.52.1
2.6
2.2
17.7
8.7 4.2
11.1
9.3
8.4
2.3
15.8
17.5
8.3 9.3
7.2
6.3
11.9
COMMENTS
23
● ITM continues to reduce average strip ratios in 2014 to cope with lower coal price trend
● Continuing to focus on cost reductions: renegotiate barging contracts, fuel substitution, etc.
● IPCC will lower usage of diesel truck and shovel and use more electricity from owned power plant
Indonesia coal: total costs
0
10
20
30
40
50
60
70
INDICATIVE AVERAGE TOTAL COSTS*
US$/t
1Q 2Q 3Q 4Q
2013
FY13 1Q Full year2014E
2Q
2014
Mining cost
Other production costs*
Depre & Amortisation
SG&A expenses
Royalty
* Coal transportation, repair and maintenance, salaries and allowances, etc.
$67
$63$64
$60 $61 $60$61$59
1.3 1.22.1 1.7 1.7
2.4
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
24
CHINA COAL 2014 PRODUCTION TARGETS*
BEIJING
Hebi (40%),Henan1.2 Mt
Gaohe(45%),Shanxi 7.0 Mt
OperationProjectOperationProject
POWER
COAL
Gaohe
CV: 6500-8000 Kcal/kg**
Hebi
CV: 5300-6800 Kcal/kg**
1Q13 – 2Q14 COAL OUTPUT (Mt ROM)
China coal: growing coal sales
0.3 0.3 0.3 0.3 0.3 0.3
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14e
Note: *Output figures are ROM output (100% basis)**CV figures are air-dried basis
GAOHE
● 2014 production target is 7Mt. 2Q14 finished ahead of 2Qtarget by 583 Kt.
● All production units are running in normal conditionsand no geologic issues are foreseen
HEBI
● Improvements to underground working areas, includingreplacing old mine cars, repairing rail and roadways.
● Will conduct final stage to confirm the effectiveness of new degas technique called UPM (under-seam protection mining) which can significantly accelerate the degas in the coal seam and improve future production capacity
OPERATIONAL UPDATES
Summary 3Q13 4Q13 1Q14 2Q14
Sales (Mt) 1.2 1.8 1.3 2.5
ASP (RMB/t) 505 527 440 367
Revenue (US$ M) 101 157 92 151
COGS (RMB/t) 357 297 275 230
EBITDA (US$ M) 34 58 44 63
UNST KHUDAG AND ALTAI NUURS PROJECTS
25
Mongolia coal: project development
• Unst Khudag Project
Completed the updated geological and mining models
For 2014, focus on water resource modeling & development
Conducting preliminary feasibility study (PFS) for coal-to-liquid (CTL), coal-to-gas(CTG ), and power facility at Unst Khudag
● Altai Nuurs Project
Completed drilling test and plan to complete the preliminary economic analysis (PEA) in 2014
Obtained preliminary mining agreement (PMA) approvals from Government of Mongolia
TSANT UUL PROJECT
● Completed mine development for pilot testing
● Completed small pilot tests with encouraging results for a potential coal to coal tar, off-gas and semi-coke plant
● Focusing on larger scale test plants and product testing, aiming to develop c.0.5 Mtpa coal-to-chemicals commercial scale plant by 2016
OVENCOAL
COAL TAR
SEMI-COKE
OFF GAS
COKING/
STEEL
MAKING PLANT
DIESEL
CAPTIVE POWER PLANT
GRID?
REFINER
STEELOVEN
COAL TO SEMI-COKE AND COAL TAR PILOT STUDY
26
Financial summary
Power business
Coal marketing
Coal operations
Focus: Hongsa power
5
4
3
2
1
USA Continued retraction to domestic, uncompetitive in export market
Colombia Political, social and environmental issues continue.Workers strikes often interrupting coal exports.
South Africa
Continue political, social issues. Expansion is uncertain.Face high competition in India market.
Indonesia Debating policies: production cap, price levels, tax levels, DMO, 14 designated loading ports, trading oversight
Considerable expansion (more LCV / less HCV)
Australia Repeal coal tax, depreciation A$, take-or-pay infrastructure agreement encourage coal export
Considerable expansion
27
Negligible net change: thermal trends for 2014
SUPPLY TRENDS DEMAND TRENDS
-10 Mt (from -6 mt)
+3 Mt
+4 Mt
+20 Mt
+14-15Mt(from +10 mt)
-4 Mt
+1-5 Mt
+12 Mt
+1-5 Mt
+10 Mt
Europe Falling gas price in UK encourage utilities switch to gas, higher renewable energy output, enter low-demand summer period, potential ban on Russian coal supply increased prices
China Political and environmental issues, heavy rainfall leads to cooler weather and increase hydro production, high competition from domestic suppliers, Shenhua cut coal prices heavily
India Increase power demand , potential drop on hydropower, insufficient domestic coal supply, increase import, focus LCV
Other NorthAsia
Enter low-demand season,Continue nuclear stoppage in Japan, coal still competitive in all north Asian countries
Others Other Asian and South Americas drive demand growth
28
Banpu ASPs vs thermal coal benchmark prices
• Marginal decline in ITM ASP due to
combination of continued market easing
with product mixes and target market
constraining the impact
• Centennial ASP fell due lower production
(principally the result of the timing of the
Mandalong LW changeover) therefore
could not target higher priced domestic
contracts
BANPU ASP VS BENCHMARK PRICES
* The Newcastle Export Index (previously known as the Barlow Jonker Index – BJI)
ITM ASP 2Q14 $68.2 (-4% QoQ)
CEY ASP 2Q14 A$67.0 (-6% QoQ)
NEX* Aug 14, 2014 $69.85
Unit: $/t
COMMENTS
0
20
40
60
80
100
120
140
160
180
200
Ja
n-0
7A
pr-
07
Ju
l-0
7O
ct-0
7J
an
-08
Ap
r-0
8J
ul-
08
Oct
-08
Ja
n-0
9A
pr-
09
Ju
l-0
9O
ct-0
9J
an
-10
Ap
r-10
Ju
l-10
Oct
-10
Ja
n-1
1A
pr-
11J
ul-
11O
ct-1
1J
an
-12
Ap
r-12
Ju
l-12
Oct
-12
Ja
n-1
3A
pr-
13J
ul-
13O
ct-1
3J
an
-14
Ap
r-14
Ju
l-14
Monthly NEX
Quarterly ITM ASP
Quarterly Centennial ASP
29
China and India thermal coal market review
CHINA ANNUALIZED ACTUAL IMPORT 1Q12-2Q14
CHINA THERMAL COAL IMPORTS/EXPORTS* INDIA THERMAL COAL IMPORTS**
INDIA ANNUALIZED ACTUAL IMPORT 1Q12-2Q14
CHINA DOMESTIC COAL PRICES
93 103
147 155
14 7 5 4 4
2010 2011 2012 2013 2014F
Import
Export
Sources: China Coal Report Jan 2014, Banpu MS&L Estimates
Unit: Mt 152 155
2010 2011 2012 2013
6887
107
148
2010 2011 2012 2013 2014F
136148
Sources: Salva Report India, Banpu MS&L Estimates
2010 2011 2012 2013
116151 146 148 140 159 162 167 135
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Import
Export
94 97 104133 131
159135 120 119
152
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
ImportExport
Unit: Mt
Unit: Mt Unit: Mt
400500600700800900
Ap
r-12
Ju
n-1
2
Au
g-1
2
Oct
-12
Dec
-12
Fe
b-1
3
Ap
r-13
Ju
n-1
3
Au
g-1
3
Oct
-13
Dec
-13
Fe
b-1
4
Ap
r-14
Ju
n-1
4
> 5,800 kcal/kg> 5,500 kcal/kg> 5,000 kcal/kg
Unit: RMB/t
510445
Source: www.sxcoal.com/cn 10 July 2014
INDIA FOCUS COMMENTS
• Insufficient domestic coal supply is likely to increase coal imports further
• Positive central government policy changes expected
• Weather and economic improvement lifts imports – still no major jump
CHINA INDIA
175
* Does not include lignite imports c.60Mtpa **Includes lignite grade imports
550
30(1) Excluding Mongolia coal
(2) Sales from Indonesia are included on 100% basis, sales from Australia and China are included on equity basis
Banpu group coal sales 2014e
JAPAN
8.0 Mt
PHILIPPINES
2.2 Mt
INDONESIA
4.0 Mt
THAILAND
2.3 Mt
INDIA
3.6 Mt
OTHERS
1.0 Mt
HK
0.4 Mt
S KOREA
3.3 MtCHINA
10.5 Mt
TAIWAN
2.9 Mt
AUSTRALIA
9.2 Mt
ITALY
0.7 Mt
3.6
2.0
6.0
1.5
6.7 2.0
0.1
1.4
1.3
0.20.8
MALAYSIA
0.4 Mt
USA
0.7 Mt
COAL SALES(1) 2014e : 49.2 Mt(2) BANPU GROUP TOTAL GLOBAL COAL SALES(2) 2014 TARGET
Total: 49.2 Mt(2)
21%
19%
16%
8%
7%
7%
6%
5%
4%
2%1%1% 1%1%
Australia
Japan
China
Taiwan
India
Italy
Thailand
Philippines
Hong Kong
Indonesia
Others
MalaysiaUSA
Korea
31
Indicative 2014 Banpu coal sales pricing status
AUSTRALIA COAL
46%
13%
32%
5% 4%
Unsold
TARGET SALES 2014 (equity basis): c.15.6 MtAs at 22 July 2014
Indexed
Domestic: legacy
Fixed Export
Domestic: long-term
export parity
INDONESIA COAL
Fixed
Unsold
Fixed 85%
TARGET SALES 2014: c. 30.0 MtAs at 22 July 2014
Indexed9%
Unpriced
2%4%
32
Financial summary
Power business
Coal marketing
Coal operations
Focus: Hongsa power
5
4
3
2
1
33
Thailand Power: BLCP in 2Q14USD million
Energy Payment (EP)
Dispatch (%)
Availability Payment (AP)
Q-Q :+13.8%Y-Y : +6.8%
Q-Q : +38.6%Y-Y : +19.2%
Q-Q : +36.0%Y-Y : +19.8%
Total revenue
EBIT
EBITDA
Q-Q : +2.7%Y-Y : +13.0%
Q-Q : +32.3%Y-Y : +14.8%
Based on Banpu’s 50% interest
Q-Q: +49%Y-Y: +38%
Equity income
FX gain
2,143
20
30
22
73.1 63.4 83.9
2Q13 1Q14 2Q14
70.6 77.7 79.8
2Q13 1Q14 2Q14
155.6 145.9 166.1
2Q13 1Q14 2Q14
57.9 49.8
69.1
2Q13 1Q14 2Q14
58.3 51.4
69.9
2Q13 1Q14 2Q14
FX Loss
96.4 96.8 98.3
2Q13 1Q14 2Q14
12
-3
30
10
23
2Q13 1Q14 2Q14
Thailand Power: Hongsa project in Laos
● Overall progress approx. 89% as planned (as of June 2014)
● Major activities of the project in 2Q-2014
Cooling tower : concrete construction and system installation of Unit 1 progress 99%, Unit 2
and Unit 3 progress is 95% and 52% respectively.
Boiler and turbine : unit 1 progress 88%, unit 2 and unit 3 progress is 72% and 63%
respectively.
35
China Power: BIC* in 2Q14 (100% basis)
LuannanHebei Province
Power 100 MW
Steam 128 tph
(Banpu 100% )
After heating season, both sales and EBITDA in 2Q14 were lower than 1Q14. Driven by higher utilization and lower coal price, EBITDA in 2Q14 was USD 0.3 m higher YOY.
ZhengdingHebei Province
Power 48 MW
Steam 180 tph
(Banpu 100%)
ZoupingShandong Province
Power 100 MW
Steam 430 tph
(Banpu 70%)
Impacted by temporary lower steam demand from Xiwang Group, utilization and sales were lower than 1Q14 and YOY. However, low coal price helped lessen the impact on EBITDA.
Sales**
(USD m)
EBITDA
(USD m)
Utilization
(hours)
Power tariff
(RMB/kwh)
Coal price***
(RMB/t)BIC* 2Q13 1Q14 2Q14
10.1 9.8
16.5
8.9 10.2
14.4
21.918.4
23.3
3.43.7
6.1
4.1
6.8
2.9
6.3 6.6 5.9
1,343
1,857
1,205
1,618
1,9351,804
1,8382,035
1,861
0.43 0.430.44
0.40 0.400.41
0.420.410.43
473464
518
623555
646
485419
506
2Q13 1Q14 2Q14
2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q14
2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q14
2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q14 2Q13 1Q14 2Q14
After heating season, both sales and EBITDA in 2Q14 were lower than 1Q14. Driven by sharp decrease of coal price, EBITDA in 2Q14 was USD 1.2 m higher YOY.
Note: *BIC = Banpu Investment China (formerly BPIC), **Unaudited figures, *** Including transportation
36
Financial summary
Power business
Coal marketing
Coal operations
Focus: Hongsa power
5
4
3
2
1
37
Key external and corporate events
EX
TE
RN
AL
E
VE
NT
SC
OR
PO
RA
TE
E
VE
NT
S
DIR
EC
TIN
DIR
EC
T
1Q14
Anti-government protest in Thailand
2Q14 3Q14
China close 1,725 mines in 2014, with 118Mt capacity
1Q14Analyst meeting
Annual General Meeting
Thai economy
contracted by 2% in
1Q14
SET index reached
1,500
CEY placed Newstan on
care and maintenance
Goldman Sachs expect thermal coal import to grow at 2%
Thai coup by NCPO
2Q14Analyst meeting
2Q14 SET Opportunity Day
Thermal coal price
fell to$68/t
Indonesian Presidential
election
Carbon tax revocation
Indonesia coal exporters to be required to have licenses
SET fell by 68 points and Baht weakened
BHP cut 230 jobs at
Australian coal
China’s dim GDP forecast (7.4%),
Indonesia to cap coal
output at 400 mt in 2014
4Q13 Analyst meeting
Decrease in Paid-up Capital
announced
4Q13 Result announcement
Announced Bt0.70/share 2H dividend
4Q13 SET Opportunity Day
BOT warns of decline in GDP growth to below 2.9%
BJI down
further to $73
GlencoreXstrata suspend
mine with 2.1mt
output
DMO revocation
38
Banpu group Q-Q revenue analysis: coal operations
6.1 6.7 6.8 6.4 5.7
6.9 7.5 7.6 7.1 6.7
2Q13 3Q13 4Q13 1Q14 2Q14
Indonesia Coal (ITM)
Note: ITM and Centennial revenues are consolidated in Banpu income statement.Australia Coal – Third party coal sales included.
SALES (Mt)
AVERAGE SELLING PRICE (US$/t)
REVENUE ($M)
527 543 546 504 462
2Q13 3Q13 4Q13 1Q14 2Q14
NE
X*
AS
P
86 78 84 78 73
77 73 71 71 68
2Q13 3Q13 4Q13 1Q14 2Q14
100% basis
100% basis
Note: ‘$’ in this presentation denotes US dollar only, otherwise stated
*NEX = Newcastle Export Index (formerly Barlow Jonker Index or BJI)
It is relevant but not linked to China Coal’s ASP
Domestic
Export
China Coal
Note: Hebi and Gaohe revenues are not consolidated in Banpu income statement.
SALES (Mt)
AVERAGE SELLING PRICE (US$/t) excl. VAT
REVENUE ($M)
133 126 186 121 178
2Q13 3Q13 4Q13 1Q14 2Q14
0.7 0.7 0.9 0.7 1.3
2Q13 3Q13 4Q13 1Q14 2Q14
AS
P
90 81 8875
63
2Q13 3Q13 4Q13 1Q14 2Q14
NE
X*
8678 84 78 73
Equity basis
100% basis
Domestic
Export
2.5 1.8 2.5 2.2 1.9
3.8 3.2 3.7 3.8 3.2
2Q13 3Q13 4Q13 1Q14 2Q14
Australia Coal (Centennial)
SALES (Mt)
AVERAGE SELLING PRICE (A$/t)
REVENUE (A$M)
271 234 259 287218
2Q13 3Q13 4Q13 1Q14 2Q14
AS
P
70 73 70 71 67
2Q13 3Q13 4Q13 1Q14 2Q14N
EX
*
8678 84 78 73
Equity basis
Equity basis
Domestic
Export
552 519 477
259258
203
41 54
38
2Q13 1Q14 2Q14
39
Banpu consolidated sales revenues
USD million
-14% Q –Q
Coal Indonesia
Power-29% Q - Q
-8% Q- Q
852 831
Power
Coal Australia
Coal Indonesia
Coal Australia-21% Q - Q
Note: Revenue from other is included in Coal Indonesia.
718
-16% Y –Y
-22% Y - Y
-14% Y - Y
-6% Y - Y
AUSTRALIA COAL INDONESIA COAL
40
Banpu consolidated coal gross margin 2Q14 : 32%
Note: AUD exchange rate – USD 0.9325/A$ (as of 30 June 2014)
Coal sales Gross margin
2Q13 1Q14 2Q14
30%28%
259203
Indonesia Coal gross margin: 34%
2Q13 1Q14 2Q14
38%34%
460
528
USD millionUSD million Australia Coal gross margin: 25%
258
25%
505
34%
88 10376
-10
4013
6 5
8
6
3
5
50 56
36
16
-9 -26
23
35
40
17
26
31
-14 -4-2
2Q13 1Q14 2Q14 2Q13 1Q14 2Q14
41
Banpu consolidated EBITDA and NPAT
Coal Indonesia
Power
n.m.
USD million
Power
55
168199
Coal Australia Coal China Coal Indonesia
USD million
Coal Australia
Coal China
Coal Indonesia
Power +12% Q-Q
-14% Y-Y
Coal Australia
Coal China
+33% Y-Y
EBITDA NET PROFIT
-36% Q-Q
159
-26% Q-Q
+71% Y-Y
+60% Q-Q
1421
+19% Q-Q+82% Y-Y
+67% Q-Q+0% Y-Y
FX and derivative
-28%Y-Y
n.m.
FX
• FX losses (Banpu) -US$3.2M
• FX gains (CEY) +US$0.8M
-68% Q-Q
-62% Q –Q
49% Y –Y -20% Q –Q -5% Y –Y
GEARING RATIOS
42
Banpu gearing and foreign exchange structure
DEBT FX STRUCTURE
Note: 1 Net debt to book value of shareholders' equity2 Net debt to enterprise value (enterprise value = net debt + market capitalization as at 30 June 2014)
USD Float48%
USD Fixed26%
AUD Fixed
4%
THB Float2%
THB Fixed20%
TOTAL DEBT: $3.3 BillionAs of 31 July 2014
0.791.03 1.09
Net debt / Equity1 (x)
45%51% 52%
Net market gearing2 (%)
Net debt / EBITDA (x)
2.52
3.99
2012 2013 2Q142012 2013
43
Appendices
44
Banpu current power operations and projects
Note: 1Approximate numbers
Power plant Status Power(MW)
Steam (tph)
Coal use1
(Mtpa)Technology
BLCP Operation na 3.5 • super critical boiler (pulverized coal)• Electrostatic precipitator (ESP) • Flue gas desulphurization (FGD)• Emission level within the limits set by EIA
Hongsa Development na 12 • sub-critical boiler (pulverized coal)• Electrostatic precipitator (ESP) • Flue gas desulphurization (FGD)• Emission level within the limits set by EIA• Integrated with lignite mine
Bontang Operation na 0.03 • sub-critical boiler (stroker)• Flue gas desulphurization (FGD)• Integrated coal fired power plant• Use Banpu equity coal
Launnan Operation 0.3 • sub-critical (pulverized coal)• Low NOx burner• Flue gas desulphurization (FGD)• Emission level within the limits set by NDRC
Zhengding Operation 0.3 • sub- critical (fluidizied bed)• In-furnace desulfurization • Low NOx burner• Emission level within the limits set by NDRC
Zouping Operation 0.5 • sub-critical (pulverized coal)• Low NOx Burner• Flue gas desulphurization (FGD)• Emission level within the limits set by NDRC
Th
ai
La
os
Ind
oC
hin
a
1,434
1,878
14
100
48
100
128
180
500
45
Banpu : power efficiency and emissions control
AVERAGE
Note: (1) Efficiency of Hongsa power taken combined heat and power into account. (2) Measured at stack. Ambient air quality also depends on emission inventory in the area . Industrial area (e.g. Map ta phut where BLCP is located) has higher emission inventory compared to Hongsa area.(3) Efficiency and emissions of BLCP, China poweris measured as of 2Q14.(4) Hongsa’s emission level is based on plant design, not actual figures*Efficiency: the percentage of the total energy content of power plant’s fuel that is converted into electricityChina power includes Luannan, Zhending and Zouping
Particle
SOx
NOx
BANPU
50504829
17
Chinese standard
Hongsa(4)BLCP(3) World Bank standard
China
power(3)
42% 38%
HongsaBLCP Global average
33%
China power
66%(1)
EM
ISS
ION
S(2
)E
FF
ICIE
NC
Y
Efficiency*
400230230195155
650510510424
165mg/Nm3
mg/Nm3
mg/Nm3
46
Greater Mekong and ASEAN power generation
ELECTRICITY CONSUMPTION IN SOUTH EAST ASIA
Source : ADB, APEC Energy outlook for Asia and the Pacific 2013
187220
3532015
2020
2035
2615
121
2920 24
2015
2020
2035
2015
2020
2035 128
410
174
2015
2020
2035
187
10483
2015
2020
2035
5 143
2015
2020
2035
607
286221
2015
2020
2035
9,542
5,462
6,467
2015
2020
2035
213142125
2015
2020
2035
Coal
Gas
Hydro
Others*
Unit: TWh
Thailand
Myanmar
Laos
Vietnam
Philippines
Cambodia
Indonesia
China
Malaysia
Comments
• Growth potential in the Mekong Region and ASEAN
• Significant additional capacity expected to be coal fired
• Banpu Power: platform to capture future growth potential
COMMENTS
47
FX impact analysis guidance on P&L
*Note :Exposure not include new THB Bond issue in July 14
NPAT IMPACT 2Q2014
(US$m)
APPROXIMATE FX EXPOSURE (US$m)
NPAT 5% SENSITIVITY 3Q2014
(US$m)
-2
+1
-3
0
NET
AUD
IDR
T HB & OTH ER
Banpu: THB bond and others
-70
+60
AUD
IDR
T HB & OTH ER
+ 5
-3
-3
+ 11
NET
AUD
IDR
T HB & OTH ER
NET LIABILITY NET ASSET
Political Stability
Moderate growth
Political Stability
Revise GDP – up to 3% ?
Assuming 5% depreciation of local currencies against USD
CURRENCY EXPOSURE
ITMG: IDR cash and receivables
CEY: USD liabilities
Net
-200
48
TFRIC4: accounting for lease arrangements
BLCP and Hongsa are categorized as financial lease.
Under build–own–operate–transfer arrangements with EGAT, a single party. The majority of the risks and rewards are transferred to EGAT.
0
50
100
150
200
250
300
350
400
EBITDA GUIDANCEBLCP EBITDA: PPA MODEL VS. TFRIC 4
HISTORICAL
‘New’ EBITDAunder lease based revenue(TFRIC 4)
‘Old’ EBITDAunder tariff based revenue (PPA Model)
FORECAST
US$m
TFRIC4 will have no impact to BLCP’s cash flows
CONCEPT OF UTILITIY SALES UNDER TFRIC 4 TFRIC 4 Arrangements that may contain a lease
VOM VOM
EP EP
AP2 AP2
Tariff basedrevenue
Lease basedrevenue
Interestincome
Depreciation
No change
Availability Payment for power plant
maintenance
Energy Payment for
fuel cost
Variable operating &
maintenance
Availability Payment for investment cost (fixed)
More variables: total impact might be more or less than AP1
Income for investment cost
Cancel out capitalized cost
Illustrative only
49
Methodologies for overburden cost recordingCASH BASIS LIFE-OF-MINE BASIS BETTERMENT BASIS
IllustrativeOB stripping and cost recordingAssume: Long-term stripping ratio of 8:1
Estimationmethodology
Based on cash cost from actual overburden stripping activities
Based on life-of-mine plan and straight-line approach
Based on company’s mine plan
Pros Intuitive Reflect actual cash cost incurred
Simple and easy to understand Limited adjustments
Align with sales revenue recognition
Cons Not always align with sales revenue recognition
Not timely reflect actual cost incurred
Misalignment between cost recording and actual cash outflow
Subject to regular review
Implementation in Indonesia Coal operations
None For mine with relatively flat coal seam and low reserves e.g. Jorong and Kitadin – TandungMayang
Indominco Trubaindo/Bharinto Kitadin – Embalut
COAL
OVERBURDEN
Record actual OB
Record avg. LOM cost
Record deferred OB + actual OB
COAL
OVERBURDEN
COAL
OVERBURDEN
S/R 8:1 S/R 8:1 S/R 8:1
50
IFRIC20: accounting for waste removal costsIFRIC 20 is an adaption from the betterment basis to smoothen stripping cost amortization. Impact of IFRIC20 on deferred OB is adjusted in 2013 Retained Earnings.
ITM’s overburden cost vs. new adjustment
BETTERMENT BASIS
IFRIC 20
Pit X assumptions
Coal reserves: 100mt
Overburden: 80 bcm
LOM S/R: 8.0x
Production: 10mtpa
Mine life: 10 years
Illustrative only
Smoothen effect Deferred stripping cost is amortized throughout the remaining years
LOM S/R 8:1
LOM S/R 8:1
11.210.9
11.5
9.6
2013 2014E
PRE-IFRIC 20 POST-IFRIC 20
STRIPPING RATIO (bcm/t)
2013
51
Indonesia Coal gross margin 2Q14 : 34%
2Q13 1Q14 2Q14
34%38%34%
460
Indonesia Coal
USD million
2Q13 1Q14 2Q14
Indominco
35%32%33%
211
247256
2Q13 1Q14 2Q14
39%35% 36%
137
Trubaindo
160
137
2Q13 1Q14 2Q14
53%
Jorong
2%34% 51%
615 11
52%
2Q13 1Q14 2Q14
15 38% 30%
24%
Kitadin
19 20
528505
2Q13 1Q14 2Q14
Bharinto
4537
44% 37%52%
2Q13 1Q14 2Q14
TandungMayang
4249% 33%33%
44 4942
39%
52
Banpu group EBITDA breakdown
34 58 45 43
-3 -3 -2 -2
1 1 3 3
13 20 15 6
12 0 3 5
12 16 22 19
21 65 62 42
Jorong
-1 -4 -2 -2
7324 51 70
-2
1 2 2
114 102 104 75
50%
40%
Power & New energy
40%
45%
70%
Note: all ownership 100% unless otherwise shown.*BIC = Banpu Investment China (formerly BPIC)
Gaohe
Hebi
BLCP
HONGSA
BIC*
Zouping
5 7 7 6
Zhengding
2 6 7 4
Luannan
3 5 6 4
& holding companies
65%
Indominco
Trubaindo
Kitadin
AACI OVERHEAD
Unit: $M
100%
43 43 62 36
Consolidated NOT consolidated
-3 -2 -1 -1
10 14 19 13
Unit: AUD Mil
All figures are 100% basis except for Centennial which is equity basis
203 171 199 159
Bharinto
3Q13 4Q13 1Q14 2Q14
3Q13 4Q13 1Q14 2Q14 3Q13 4Q13 1Q14 2Q14 3Q13 4Q13 1Q14 2Q14 3Q13 4Q13 1Q14 2Q14
3Q13 4Q13 1Q14 2Q143Q13 4Q13 1Q13 2Q14
3Q13 4Q13 1Q13 2Q14
3Q13 4Q13 1Q14 2Q14
3Q13 4Q13 1Q14 2Q14
3Q13 4Q13 1Q13 2Q14
3Q13 4Q13 1Q14 2Q14
3Q13 4Q13 1Q14 2Q14
3Q13 4Q13 1Q14 2Q14 3Q13 4Q13 1Q14 2Q14 3Q13 4Q13 1Q14 2Q14
3Q13 4Q13 1Q14 2Q14
3Q13 4Q13 1Q14 2Q14
53
Banpu group net debt breakdown
Note: all ownership 100% unless otherwise shown.
1472 16861945 2111
192 155 193 170
& holding companies
2,482 2,500 2,523 2,888
3Q13 4Q13 1Q14 2Q14
2Q143Q13 4Q13 1Q14
AUSTRALIA COAL INDONESIA COAL CHINA COAL MONGOLIA COAL
THAILAND POWER LAOS POWER CHINA POWER
Gaohe Hebi
HONGSABLCP BIC*Consolidated
NOT consolidated
100% 65% 45% 40% 100%
50% 40% 100%
Net debt
Net cash
687 667 640 710-418 -289 -378 -298
-18 -19 -5 -8 -7 -5 -3 -4
506 490 476 464
3
-15 -16 -6
Unit: AUD Mil
Unit: $M
2Q143Q13 4Q13 1Q14 2Q143Q13 4Q13 1Q14 2Q143Q13 4Q13 1Q14 2Q143Q13 4Q13 1Q14
2Q143Q13 4Q13 1Q14 2Q143Q13 4Q13 1Q14 2Q143Q13 4Q13 1Q14
54
Banpu consolidated : operating profit
Units: 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
-17%
YoY%
-16%
-17%
-16%
-6%
5%
41
(582)
270
32%
2Q13
852
804
255
11
27%
32%
Note: * Including other business
-22%
QoQ%
-14%
-13%
-20%
-29%
-35%
38
(494)
224
31%
2Q14
718
671
215
12
30%
32%
54
(542)
289
35%
1Q14
831
771
270
18
33%
35%
Units: USD million
Gross profit
GPM
SG&A
Royalty
Other income
EBIT
EBITDA
EBIT - Coal
EBIT - Power
Income from associates
EBITDA - Coal
EBITDA - Power
-17%
-13%
-5%
YoY%
-31%
57%
-17%
71%
Other expenses - Operations
270
32%
(97)
(82)
8
116
168
2Q13
93
23
25
145
23
(8)
55
Banpu consolidated: operating profit
224
31%
(90)
(77)
10
100
159
2Q14
64
36
39
119
40
(7)
-22%
-28%
-20%
QoQ%
-41%
13%
-27%
12%
289
35%
(104)
(73)
8
140
199
1Q14
108
32
26
163
35
(6)
56
Banpu consolidated : net profit
Note: * Income from non-core assets and other non-operating expenses
Units: 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 (USD/share)
-13%
YoY%
-18%
49%
-40%
Deferred tax income (expenses)
116
2Q13
(29)
(3)
(19)
(20)
(2)
28
(22)
(14)
14
0.005
43
7
100
2Q14
(29)
(3)
(19)
(1)
(4)
23
(23)
26
(2)
21
0.008
2
-28%
QoQ%
-60%
-62%
-42%
140
1Q14
(28)
(3)
(35)
22
-
59
(29)
45
(4)
55
0.021
(8)
Units: 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
57
Centennial : Income Statement
YoY%
-31%
-7%
22%
-119%
-14%
-22%
63%
n.m.
9%
QoQ%
-34%
9%
21%
-117%
-15%
-21%
19%
n.m.
-11%
Deferred tax income
2Q13
(186.97)
72.21
28%
(17.63)
(36.69)
14.61
3.767
259.17
(6.77)
(1.36)
(51.36)
(18.83)
8.81
4.42
(7.70)
17.24
2Q14
(152.94)
50.14
25%
(13.76)
(39.30)
(2.72)
3.244
203.08
7.18
(7.31)
(1.54)
0.78
(9.61)
0.29
(6.98)
0.88
1Q14
(181.23)
76.48
30%
(17.39)
(43.10)
15.72
3.818
257.71
6.04
(7.14)
(1.54)
4.10
10.47
(0.67)
(6.31)
-
58
Australia Coal: quarterly equity ROM output
Note: Bar width is indicative of the equity production contributions to CentennialNote 2: Production generally responds to the timing of longwall changeovers (i.e. lower production results during a longwall changeover period)
Normal production Bolt-up/commissioning
1.5 1.7 1.9 1.7 1.51.8 1.8 2.0
1.3
2.51.2 2.0 2.2 1.9
2.61.8
2.8
4.2
3.1
3.7 3.7 3.7
4.4
3.8
0.00.51.01.52.02.53.03.54.04.55.0
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Total equity ROM (Mt)
ACTUAL PLANNED (INDICATIVE ONLY)
WE
ST
ER
NN
OR
TH
ER
N
6 wks
7 wks
LW relocation
3 wks
2013 2014
6 wks
6 wks
3wks
