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Banpu: 3Q16 results
Investor and analyst update
15th November 2016
2
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
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
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
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
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
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
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
STRIP RATIOS (bcm/t)
3.8
14.4
11.4
STRIP RATIOS (bcm/t)
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
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
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
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
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
$14.0
Impacts of:- BIC: seasonal
power demand- BLCP: planned
maintenance- HPC: unplanned
outage (low AP)
2.2 Australia operations
Coal business
Investor focus
2
1
2.3 Indonesia operations
2.4 China, Mongolia operations
Gas business4
Financial summary5
Power business
2.1 Coal market
3
39
Takeaways6
U.S. gas market update
Gas prices remain volatile but average increased due to slow inventory build-up from falling production. However, weather has been warmer and tends to damp demand in autumn
Gas stockpiles remain high. However, there has been below-average increases for 21 consecutive weeks as strong underlying consumption and falling output have rebalanced the market
Source: EIA
Unit: US$/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
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
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
2Q16 NET PROFIT AFTER TAX
USD million
8
Non-recurring items
• FX gain $3M
• Others ($2M)
• Derivative loss ($10M)
Non-recurring items
• FX gain $18M
• Others ($1M)
• Derivative loss ($18M)
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)
• Derivative loss ($8M)
- FX ($5M)
- Coal swap ($1M)
- IRS* ($2M)
• Others ($1M)
(17)
3Q16 NET PROFIT AFTER TAX
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
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
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