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TRANSCRIPT
2013 results
investor and analyst update
27th February 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
Strategic review
5
4
3
2
1
29.4Mt
13.8Mt
1.2Mt
0.2GW
1.4GW
4
2013 summary: strengthening our core
Australia coal
Indonesia coal
Power
• Record output at 29.4Mt
• Lower S/Rs at Indominco, Trubaindoand Bharinto
• Reduction in total costs by 11%
• IPCC trial commenced in Dec 2013
• Annual output records: Myuna, Angus Place, Charbon and Clarence
• Strong domestic sales; new 24Mt, 8-year contract
• New equipment at Mandalong, Springvale and Myuna should boost productivity
• Logistics and infrastructure optimised
Corporate
• Group OHs down 10%
• Coal marketing, sales and trading office established in Singapore
• Financial management focus: debt service, share restructuring and derivatives
Note : Output on 100% basis (except Australia ROM output is stated on an equity basis)
Mines
Power plant
• Tsant Uul: good outcome from coal to chemical testing
• Gaohe: 6Mt (above target 1Mt); rail spur bridge development
• Hebi: steady output
China, Mongolia coal
• BIC: record profit
• Hongsa: 78% complete
• BLCP: equity income up 13% to $82M
1.8GW
6Mt
Power project
5
2013 in review: Southeast Asia
THAILAND
LAOS
INDONESIA
Mahakam River
BaritoRiver
INDOMINCO
BALIKPAPAN JORONG
TDMY
BHARINTOEMBALUT
BONTANG
JORONG(ANCHORAGE)
SINGAPOREOFFICE
BLCP
HONGSABLCP equity income: $82M, up 13%
Financial management:
debt, shares, risks
Established BMS Coal
Sales
Hongsaprogress 78%
Reduced total costs 11% to $62/t in 2013
IPCC trial stage at Indominco commenced Dec 2013
Lower SRs at Indominco, Trubaindo,
and Bharinto
Renegotiating barging contract
OPEN CUT MINE
PROJECT
COAL TERMINAL
POWER
TRUBAINDO
Trial shipment of
Bharinto coal to non-Japan
market
Optimisedmining reserves
New conveyor belt system at Embalut port
Indo coal sales: 29.1Mt
SAMARINDA(ANCHORAGE)
KALIMANTAN
WESTERN
AUSTRALIA
QUEENSLAND
NORTHERN
TERRITORY
NSW
VICTORIA
SOUTH
AUSTRALIA
6
2013 in review: Australia
Sydney
Wollongong
NEWSTANMANDALONG
MYUNA
MANNERING
CHARBONINGLENOOK
AIRLY
ANGUS PLACE
SPRINGVALE
CLARENCE
NEUBECK
NORTHERN OPERATIONSWESTERN
OPERATIONS
OPEN CUT MINE
UNDERGROUND MINE
PROJECT
PORT
ROAD
RAIL
IVANHOE
Newcastle
Mannering transfers operating risk through 3rd party production sharing arrangement
Cost reduction and productivity improvement
Four annual production records
Rationalised capex
Sales contract with major power station at long-term export parity
New state-of-the-art longwall at
Springvale
Mandalong -Introduced 3x Sandvik MB650 CM, with resultant record development
Myuna re-equipped, and delivered record production
Improved coordination between rail, ports and domestic customers
Relinquished tonnage at PWCS(T4)
Airly re-evaluation of mine plan for re-
opening
7
2013 in review: China and Mongolia
Xinjiang
Heilongjiang
Jilin
Liaoning
Taiwan
Tibet
Sichuan
YunnanGuangxi Guangdong
Fujian
Shandong
Hubei
Hunan Jiangxi
Hainan
Inner
Mongolia
NingxiaQinghai
Hebei
Shanxi
Henan
Anhui
Zhejiang
JiangsuShaanxi
Guizhou
MONGOLIA
MONGOLIA
ALTAI NUURS
TSANT UUL
Altai Nuurs :
exploration and feasibility study to be completed in 2014
Tsant Uul: small pilot test with encouraging results on a coal to coal tar, off-gas and semi coke plant
Studying potential of CHP in Mongolia
Hebei
Henan
Shandong
Shanxi
GAOHE
HEBI
LUANNAN
ZHENGDING
ZOUPING
Gaohe: 6 Mt (above plan
of 5 Mt)
Hebi: 1.2 Mt OPEN CUT MINE
PROJECT
POWER
BIC record net profit: $24M contribution
UNST KHUDAG
CHINA
PIT BENCHES
IN-PIT CONVEYORS
BACKHOE EXCAVATOR
TRUCK
SPREADER
IPCC
WASTE DUMPNON-IPCC
WASTE DUMP
C.120 M
C.80 M
IN-PIT CRUSHER
DEEPER TONNAGES
IPCC WASTE
COMMENTS
8
2014 and beyond: Indonesia cost structure reduction
● IPCC trial commenced in December 2013 at Indominco East Block
● OB removal capacity: 14 MBcm per year
● Using power from Indominco coal-fired power plant
● Estimated cost savings around 10% of OB costs
● Facilitates access to deeper coal reserves
● More environmentally friendly: less dust, less noise, lower emissions
IN-PIT CRUSHING AND CONVEYING (IPCC)
Mine depth without IPCC
Mine depth with IPCC
ILLUSTRATIVE ONLY
● Completed study for trucks to partially replace diesel with LNG or other alternative fuels
● Currently at trial stage for coal transport at Indominco-Bontang
● Partnership with contractor under negotiation
● Possible implementation at Trubaindo-Bharinto
MID-TERM: ELECTRIFICATION
9
2014 and beyond: further Indonesia cost plans
● Electric overland conveyors being studied to reduce coal transport cost at both Indomincoand adjacent operations and Trubaindo-Bharinto
● Would enhance efficiency of coal transport while reducing operating costs
● Proven technology widely used in Europe, USA and Australia
● Possible medium term implementation
DIESEL SUBSTITUTION
Test unitwith LNG tank
ILLUSTRATIVE ONLY
10
2014 and beyond: Australia optimisation programme
COST MANAGEMENT REVENUE OPTIMISATION
• Lidsdale siding upgrade, completion due May 14
• Optimisation of rail and port capacity
• Improved coordination between rail, ports and domestic customers
• Target increased production from Springvale, Mandalongand Myuna, following new equipment installation in 2013
• Reduced longwallchangeover time
• ‘Step Change’ productivity programmecommenced
• New domestic sales contracts to be priced at long-term export parity price, providing a natural hedge against A$/US$ volatility
• Balance coal sales and revenues from domestic and export business
• Reduce customer concentration risk
Improving production volume
Logistics optimisation Sales contract pricing Balance customer diversification
NOTE: COMPARATIVE ECONOMICS
11
2014 and beyond: power business growth
● Fossil fuel like thermal coal and gas remains a primary source for power generation
● Renewable energy growing due to supportive government policies toward cleaner energy
● Japan and China aimed to significantly expand power capacity from wind and solar: short construction time of 1.5 years
INVESTMENT OPPORTUNITIES IN POWER
● Hongsa project in Laos: 78%-progress; COD in 2H2015 and in 1H2016
● Potential for brownfield growth around existing power assets ?
● Banpu exploring potential for new investment in coal-fired power and potentially also in renewable power businesses in Asia-Pacific
Source: IEA
BLCP18 year lifetime
?
?
Value creation
Lifecycle
Brownfield?
Greenfield?
Hongsa78% progress
CURRENT PROJECTS NEW PROJECTS Capex($/kW)
Non-fuel O&M ($/kW)
Capacity factor
Constructiontime
Nuclear
Coal supercritical
Gas CCGT
Wind
Solar
3
5
7
1.5
1.5
4,500
3,500
1,600
700
1,500
2 1
2 5
6 0
1 2 3
na
60%
22%
80%
na
85%
Note : capital costs include interest during construction, engineering, procurement , construction and legal expenses
12
Long term Asia Pacific power demand to 2035
*Note: ‘Others’* include power generation from oil, nuclear, geothermal and non-hydro renewablesSource : Energy outlook for Asia and the Pacific report, October 2013, ADB and APEC
China 1,174 1,1931,258
Japan
India
Vietnam
Indonesia
Thailand
Korea
Australia
761
1,102
670
616514 555
221286
607
311290353
220353
187
128 174
410
1,855
1,374
3,437
5,462
6,467
9,542
2015 2020 2035
2015 2020 2035
2015 2020 2035
2015 2020 2035
2015 2020 2035
2015 2020 2035
2015 2020 2035
2015 2020 2035
Unit: TWh
Coal
Gas
Hydro
Others*
CAGR
6%
3%
6%
5%
CAGR
5%
2%
8%
2%
CAGR
2%
-2%
1%
CAGR
-3%
0%
2%
1%
CAGR
2%
6%
CAGR
16%2%5%
8%
Other Asia Pacific
2015 2020 2035
CAGR
0%4%
4%
1%
CAGR
1%6%3%
6%CAGR
6%1%5%2%
Power demand in Asia-Pacific forecast to increase 76% by 2035 including 66% increase in coal-fired power equivalent to 2.1 billion tonnesincremental coal demand*
EIA assumption1,870 KWh = 1 tonne coal1 TWh = 0.54 million tonnes coal
10483187
PhilippinesCAGR
6%
2015 2020 2035
13
Banpu examining its strategic horizons
Coal-mining
Tr
an
s-P
ac
ific
*
* The Trans-Pacific Partnership (‘TPP’) is currently under negotiation between countries of Asia-Pacific and the America to foster trans-Pacific trade and investment growth
As
ia-P
ac
ific
AUSTRALIA
COAL
Coal-power/oil New energy**
?
?
BLCPHONGSA
CHINAPOWER
?
BONTANG
INDONESIA
COAL
CHINA
COAL?
HUNNU
ILLUSTRATIVE ONLY
* New energy technologies: renewable energy, unconventional energy extraction, alternative fuels…
14
Financial summary
Power business
Coal marketing
Coal operations
Strategic review
5
4
3
2
1
2013 YoY 4Q13 QoQ
Sales revenue A$966m ▼ 12% A$259m ▲ 10%
EBITDA (pre FX) A$160m ▼53% A$49m 0%
PBT (pre FX) A$(11)m n.a. A$1m n.a.
Unrealised FX3 A$(56)m n.a. A$(5)m n.a.
NPAT A$(47)m n.a. A$(2)m n.a.
Gearing(Net debt to net debt + book value of equity)
36% 36%
CAPEX4 A$174 ▼58% A$48 ▼5%
15
Australia Coal: operational and financial summary
2013 OUTPUT (ROM EQUITY BASIS) KEY UPDATES
Production
● Equity ROM 3.7Mt (up 21% YoY), with all three LWs* in full production during 4Q13
● Equity ROM of 13.8 Mt (2012: 14.6 Mt ); placement of Airly and Mannering into C&M in 4Q12
● Focus on productivity resulted in four annual production records
ASP
● 4Q13: A$68/t
● Sales volume down 5% YoY
● Domestic: export split 62%:38% (2012: 56%:44%)
● Improved domestic margins helping to sustain ASP
● 2013 ASP c. A$70/t
*LW: longwall
Note 1: Airly and Mannering mines placed on “Care & Maintenance” November 2012.
Note 2: NCIG = Newcastle Coal Infrastructure Group; PWCS = Port Waratah Coal Services; PKCT = Port Kembla Coal Terminal.
Note 3: Pre tax impact of A$ translation of US$ denominated net debt. A$ depreciated 14% in 2013.
Note 4: Plant & Equipment
FINANCIAL SUMMARY
Wollongong
PKCT
Charbon
Airly
Neubeck Angus Place
Clarence
Springvale
Mandalong Myuna
Newstan Extension
Sydney
PWCS
Newcastle
Inglenook
Open-cut mine
Project
Underground mine
Port
Power station
RoadRail
WESTERN OPERATIONS: 6.8 Mt
NORTHERN OPERATIONS: 7.0 Mt
NCIG
Mannering
16
NEWSTAN EXTENSIONMANDALONG OTHER OPERATIONS
Australia Coal: Northern Operations quarterly output
1.10.8
1.9
0.7
1.5 1.4
LW MOVE SCHEDULE
COAL OUTPUT (Mt)*
CV: 6,700 kcal/kg**
Mth 1
Mth 2
Mth 3
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e 2Q14e
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
4 wks
6 wks
0.6 0.5 0.6 0.5 0.5 0.7
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
COAL OUTPUT (Mt)*
CV: 6,700 kcal/kg**
● Mandalong
Annual production down 10% YoY: two extended changeovers, LW outperformance; installation road failure
3x new development units achieving record performance
● Myuna: 2013 annual production record of 1.6 Mt, 10% up on 2012
● Newstan: continues as CM mine while expansion opportunities assessed ventilation shaft completed
LW MOVE SCHEDULE
Mth 1
Mth 2
Mth 3
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
Completion date extended
COAL OUTPUT (Mt)*
CV: 6,700 kcal/kg**
Note: *ROM output on an equity basis**CV figures are air-dried basis
7 wks
COMMENT
3wks
17
● Angus Place: above plan performance: record c.4.0 Mt (100%)
● Charbon and Clarence: Strong performances resulted in record annual output of 1.5 Mt and 2.4 Mt respectively (100%)
● Springvale: challenging mining conditions and ageing equipment for much of 2013; new LW commissioned during 4Q13, now full production
● Bushfires 4Q: Lost 5-days output at Clarence and Springvale; rail network affected for two weeks
0.9 0.71.0 1.0
0.7 0.8
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
OTHER OPERATIONSANGUS PLACE SPRINGVALE
Australia Coal: Western Operations quarterly output
0.4 0.3 0.2 0.4 0.5 0.50.2
0.5 0.5 0.5 0.5 0.4
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
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e 2Q14e
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
COAL OUTPUT (Mt)*
CV: 6,700 kcal/kg**
LW MOVE SCHEDULE
Mth 1
Mth 2
Mth 3
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e 2Q14e
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
6 wks
Note: *ROM output on an equity basis: Angus Place and Springvale 50%, Clarence 85% & Charbon 95%
**CV figures are air-dried basis
COMMENT
2 wks
1 wk
4 wks
0
10
20
30
40
50
60
COMMENTS
18
Australia Coal: operating costs
● Strong 4Q13 performance delivered lowest quarterly cost for year
● Focus on cost control and productivity delivered improved costs YoY
● A$100m removed from 2013 cost base compared to 2012 (including one-off redundancy costs in 4Q13)
● Group productivity improved c.9%, leading to four annual production records
● One-off costs due to bushfires and further restructuring impacted 4Q13 by c. $1/tonne
● Continuing focus on improving operating costs and productivity: FY14 costs expected to improve further
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
$52
$59A$/t
Cash overhead
$58
$52
$47
$55$53
1Q 2Q 3Q 4Q
2012
Full year2012
1Q Full year20132013
Planned cost reduction 2012 achieved
2Q
$51
3Q
$51$50
4Q
LOGISTICS
19
Australia Coal: further optimisation
● Lidsdale Siding: Western load point upgrade to 8 Mt will complete May 2014
● Rail efficiency improving, with longer trains driving lower costs
● Improved coordination between rail, ports and domestic customers
PRODUCTIVITY
● Springvale: new generation high productivity LW in full production
● Mandalong: 3x New generation LW Development CMs delivering + 20% improvement in development rates
● Myuna: completely re-equipped
● “Step Change” productivity programmecommenced across all mines
KEY UPDATES
20
Indonesia coal: operational and financial summary
OUTPUT 2014 (100% BASIS, SALEABLE COAL)
FINANCIAL SUMMARY
2013 YoY 4Q13 QoQ
Sales revenue $2,179m ▼ 11% $546m ▲ 1%
EBITDA $401m ▼ 35% $102m ▼ 11%
NPAT $230m ▼ 47% $46m ▼25%
Gearing(Net debt to Net debt + book value of equity)
n.a. n.a.
CAPEX $44m $4m
East Kalimantan
Bunyut Port
Balikpapan
Palangkaraya
Banjarmasin
Central Kalimantan
South Kalimantan
Kitadin -Embalut
1.0 Mt
Indominco15.2 Mt
Trubanindo7.3 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 Production
• 2013: record output of 29.4mt (slightly lower than plan), up 7% YoY
• 4Q13: 7.4mt, down 7% YoY
• 2013 production slightly lower than target due to weather condition
ASP
• 2013: $74.9/t (down 17% YoY)
• 4Q13: $71.0/t (down 2% QoQ)
• Weak coal market throughout 2013 impacted ASP
21
0.3 0.3 0.3 0.3 0.3 0.3JO
RO
NG
0.3 0.2 0.3 0.20.4 0.3
15.1 15.1 15.1 15.1 15.117.9
2.1 2.0 2.0 2.0 1.9 1.7
0.50.2 0.5
2.5 2.4 2.5 2.7 3.0 3.4
2.0
1.1 1.11.3 1.0 0.4
0.4
0.8 0.50.6 0.7
0.5
4.9
4.3 4.14.6 4.7
4.3
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**
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
E B
LO
CK
TD
MY
WB
LO
CK
STRIP RATIOS (bcm/t)
7.2
16.9
IND
OM
INC
OT
DM
Y
13.9
19.1
9.3
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
16.8
7.2
COAL OUTPUT (Mt)*
CV: 6250 - 7200 kcal/kg**
TR
UB
AIN
DO
BH
AR
INT
O
STRIP RATIOS (bcm/t)
TR
UB
AIN
DO
10.312.210.9 10.9
2.4
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
2.3
11.1
BH
AR
INT
O
6.9 6.9
COAL OUTPUT (Mt)*
CV: 5750 kcal/kg**
CV: 5300 kcal/kg**
EM
BA
LU
T
STRIP RATIOS (bcm/t)
8.6
10.6
6.0
11.5
JO
RO
NG
EM
BA
LU
T
8.6
6.0
8.6
11.5
8.6
10.9
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
8.6
10.6
9.0 9.3
7.5
11.2
9.2
EA
ST
WE
ST
7.5
2.6
19.1
7.8
2.52.2
0.32.1
17.1
8.3
COMMENTS
22
● Achieved lower total costs of $61/tonne in 4Q13 down from $67/tonne in 4Q12
● ITM continue to reduce average strip ratios in 2013 to cope with lower coal price trend
● Continue to focus on cost reductions including implementation of cost reduction program such as IPCC, renegotiate barging contract, fuel substitute, etc.
● IPCC will lower usage of diesel truck and shovel and use more electricity from owned power plant
Indonesia Coal: total costs
4Q13 AND FY13 AVERAGE TOTAL COSTS
0
10
20
30
40
50
60
70
80
Mining and contractor cost
* Coal transportations, repair and maintenance, salaries and allowance, etc.
$74$72
$68
$65
$/t
$67
Other production costs*
Dep. & Amortisation
SG&A expenses
Royalty
1Q 2Q 3Q 4Q Full year 1Q
$70
Full year2012 2012 2013 2013
$62$64
2Q
$59
3Q
$61
4Q
1.2 1.4 1.3 1.22.1 1.6
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
23
CHINA COAL 2013 PRODUCTION TARGETS*
BEIJING
Hebi(40%),Henan1.2 Mt
Gaohe (45%),Shanxi 6.0 Mt
OperationProjectOperationProject
POWER
COAL
Gaohe
CV: 6500-8000 Kcal/kg**
Hebi
CV: 5300-6800 Kcal/kg**
4Q12 – 4Q13 COAL OUTPUT (Mt ROM)
China Coal: growing coal output
0.3 0.3 0.3 0.3 0.3 0.3
4Q12 1Q13 2Q13 3Q13 4Q13 1Q14e
Note: *Output figures are ROM output (100% basis)
**CV figures are air-dried basis
GAOHE
● 2013 production 6Mt (above target 5Mt)
● Mining bolter was installed underground in Dec’13
HEBI
● Ventilation shaft incident in December caused stoppageto one LW unit; shaft was repaired; LW back to fullproduction since Jan’14
● Improvements to mine safety and planning withcontinued introduction of hazard mapping and geologicmodeling
● Degas improvement trials showed promising results forwater flushing and under-seam protection mining (UPM)
OPERATIONAL UPDATES
Summary 3Q13 4Q13 2012 2013
Sales (Mt) 1.2 1.8 4.0 5.5
ASP (RMB/t) 505 527 616 561
Revenue (US$ M) 101 157 388 341
COGS (RMB/t) 357 297 458 417
EBITDA (US$ M) 13 32 145 181
ALTAI NUURS AND UNST KHUDAG PROJECTS
24
Mongolia Coal: project development
● Altai Nuurs Project:
Completed drilling test and plan to complete the PEA (Preliminary Economic Analysis) and PFS (Preliminary Feasibility Study) in 2014
• Unst Khudag Project
Completed the updated Geological and Mining Models
TSANT UUL PROJECT
● Completed mine development
● Completed small pilot tests with encouraging results on a potential coal to coal tar, off-gas and semi-coke plant
● Focus on larger scale test plants and product testing, aiming to develop c.0.5 Mtpa coal-to-chemicals commercial scale plant by 2015
● Currently testing the market in China; some trial lots have been sent to customers
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
25
Financial summary
Power business
Coal marketing
Coal operations
Strategic review
5
4
3
2
1
Europe Continue power plant retirement, strong clean-dark spreads keep coal burn high
China Slower demand growth, political / environmental issues, low quality coal import ban (?), high competition from domestic suppliers.
India High electricity demand growth, insufficient domestic coal supply, focus LCV
Other NorthAsia
Continue nuclear stoppage in Japan, coal still competitive in all north Asian countries
Others Other Asian and South Americas drive demand growth
USA Continue retracting to domestic and HS bigger share of export
Colombia Drummond export ban in Q1, political, social/environmental issues continue
South Africa
Higher rail efficiency
Continuing political, social issues. Expand or not debatable
Indonesia Debating policies: export level, price levels, tax levels, DMO, losing market share for LCV, offshore loading, trading oversight
Considerable expansion (more LCV / less HCV)
Australia Encouraged by exchange rate Discouraged by prices and challenges for higher ash
Considerable expansion
26
New emerging thermal trends for 2014
SUPPLY TRENDS DEMAND TRENDS
-3 Mt
+5 Mt
+2 Mt
+15 Mt
+10 Mt
+1-5 Mt
+1-5 Mt
+12 Mt
+1-5 Mt
+10 Mt
27
Banpu ASPs vs thermal coal benchmark prices
• Declines in ITM ASP are combination of continued market easing and product mixes
• Tonnages remain high for shipment, protecting total revenues
• Centennial concluded sales of 3.7 Mt in 4Q13 at ASP of A$71/t, down 4% QoQ in line with easing export prices and more domestic deliveries
• Reduced demurrage cost of Indonesia coal from $0.9/t in 2012 to $0.7/t in 2013, down 35%
• ITM ASP 2013 US$75/t
• CEY ASP 2013 A$70/t
BANPU ASP VS BENCHMARK PRICES
* The Newcastle Export Index (previously known as the Barlow Jonker Index – BJI)
ITM ASP 4Q13 $71.0 (-2% QoQ)
CEY ASP 4Q13 A$70.6 (-3% QoQ)
NEX* February 20, 2014 $77.0
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
Monthly NEX
Quarterly ITM ASP
Quarterly Centennial ASP
28
China and India thermal coal market review
CHINA ANNUALIZED ACTUAL IMPORT 1Q12-4Q13&1Q14e
CHINA THERMAL COAL IMPORTS/EXPORTS* INDIA THERMAL COAL IMPORTS**
INDIA ANNUALIZED ACTUAL IMPORT 1Q12-4Q13&1Q14e
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 146 148 140 159 162 144
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
Import
Export
94 97 104133 131
159135 120 120
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
ImportExport
Unit: Mt
Unit: Mt Unit: Mt
400
500
600
700
800
900
Fe
b-1
2
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
> 5,800 kcal/kg> 5,500 kcal/kg> 5,000 kcal/kg
Unit: RMB/t
585545470
Source: www.sxcoal.com/cn 25 February 2014
INDIA FOCUS COMMENTS
• Electricity demand continues to grow
• Coal remains the base-load for power generation
• Insufficient domestic coal supply
• Depreciation of Rupee impact coal import
CHINA INDIA
175
* Does not include lignite imports c.0.5Mtpa **Includes lignite grade imports
29(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 2013 and 2014e
JAPAN
6.4 Mt
PHILIPPINES
2.2 Mt
INDONESIA
3.2 Mt
THAILAND
1.9 Mt
INDIA
2.5 Mt
OTHERS
0.8 Mt
HK
0.3 Mt
S KOREA
2.9 MtCHINA
11.1 Mt
TAIWAN
3.7 Mt
AUSTRALIA
8.5 Mt
ITALY
0.8 Mt
2.9
1.8
4.6
2.0
8.10.7
0.1
1.7
2.2
0.30.5
Total: 45.7 Mt
(Sales from Indonesia are included on 100% basis, sales from Australia and China are included on equity basis )
MALAYSIA
0.8 Mt
USA
0.6 Mt
19%
24%
14%
7%
8%
6%
5%
5%
5%1%
1%
1%
2%
2%
Indonesia Coal
Australia Coal
China Coal
% of total sales
COAL SALES(1) 2013 : 45.7 Mt(2)
JAPAN
7.0 Mt
PHILIPPINES
1.8 Mt
INDONESIA
3.7 Mt
THAILAND
2.3 Mt
INDIA
3.0 Mt
OTHERS
1.9 Mt
HK
0.4 Mt
S KOREA
3.2 MtCHINA
10.1 Mt
TAIWAN
2.6 Mt
AUSTRALIA
10.1 Mt
ITALY
0.7 Mt
3.2
1.8
5.2
1.8
6.8 1.1
0.1
0.8
2.1
1.50.4
MALAYSIA
0.7 Mt
USA
0.7 Mt
COAL SALES(1) 2014e : 48.2 Mt(2)
Total: 48.2 Mt
(Sales from Indonesia are included on 100% basis, sales from Australia and China are included on equity basis )
6%5%
1%
5%
4%
1% 8% 21%
4%
7% 15%
21%1%
1%
30
Indicative 2014 Banpu coal sales pricing status
INDONESIA COAL
Fixed
53%
13%
7%
11%
7%9%
Unsold
AUSTRALIA COAL
TARGET SALES 2014 (equity basis): c.15.3 MtAs at 25 Feb 2014
Indexed
Domestic: Legacy
Fixed ExportDomestic: long-term
export parity
Unpriced1
Note:1JPU contracts comprise 10% of 11% of unpriced sales.
Unsold 21%
Fixed 47%
TARGET SALES 2014: c. 30.7 MtAs at 25 Feb 2014
Indexed20%
Unpriced12%
31
Financial summary
Power business
Coal marketing
Coal operations
Strategic review
5
4
3
2
1
9684
96 93
3Q13 4Q13 2012 2013
32
Thailand Power: BLCP in 2013USD million
Energy Payment (EP)
Dispatch (%)
Availability Payment (AP)
Q-Q : -40.4%Y-Y : -13.1%
Q-Q : -87.6%Y-Y : -15.8%
Q-Q : -67.2 %Y-Y : -7.3%
Total revenue
EBIT
EBITDA
Q-Q : -31.8%Y-Y : -14.9%
Q-Q : -52.2 %Y-Y : -10.7%
Based on Banpu’s 50% interest
Q-Q: -68.3%
Y-Y: +12.6%
Equity income
73FX gain
82
27
8
FX Loss
2012 2013
2012 20133Q13 4Q13
FX gain
7536
3Q13 4Q13 2012 20132012 2013
263 235
78 53
3Q13 4Q13 2012 20132012 2013
310264
95
3Q13 4Q13 2012 20132012 2013
605526
160
7
3Q13 4Q13 2012 20132012 2013
176148
56
24
3Q13 4Q13 2012 20132012 2013
244227
73
26
3
1
5
-8
7581
7
PROGRESS UPDATES 4Q13
33
Thailand Power: Hongsa project in Laos
PROGRESS UPDATES 4Q12
Note: *Banpu’s equity injection US$340M from 2014-2016
PROGRESS UPDATES 4Q12
Overall progress approx. 78% completeOverall progress approx. 40% complete
115 COOLING TOWER 1ST
UNIT115 KV TRANSMISSION LINE
34
Hongsa project: construction progress
COAL STOCKYARD BELT CONVEYOR
SUB-STATION PHASE SHIFT TRANSFORMER
COAL MINE
TRANSMISSION LINE
Note: *BIC = Banpu Investment China (formerly BPIC),** Unaudited figures, *** Including transportation
LuannanHebei Province
Power 100MW;
Steam 128tph
(Banpu 100% )
ZhengdingHebei Province
Power 48MW;
Steam 180tph
(100%)
ZoupingShandong Province
Power 100MW;
Steam 430tph
(70%)
Sales**
(USD m)
EBITDA
(USD m)
Utilization
(hours)
Power tariff
(RMB/kwh)
Coal price***
(RMB/t)
1,748
2,311 0.410.40
8.313.8
2.45.5
484465
22.526.3 4.8
6.61,787
2,162
655 630
0.44 0.43
511 498
1,251
1,54110.112.3
3.34.6
0.43 0.42
BIC*
45.7
97.9
47.8
13.7
16.8
18.6
25.0
9.5
15.5
7,7527,948
7,2457,761
5,8795,911
0.40 0.40
0.44 0.44
0.44 0.43
630504
833
652
676515
3Q13 4Q13 2012 2013
45.7
93.7
48.7
35
3Q13
China Power: BIC* in 2013 (100% basis)
4Q13 2012 2013 3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013
3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013
3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013 3Q13 4Q13 2012 2013
36
Financial summary
Power business
Coal marketing
Coal operations
Strategic review
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 U.S. government
shutdown
Change in par value from Bt 10 to Bt 1
3Q13 Result announcement
3Q13 Analyst
meeting
3Q13 SET Opportunity Day
ADB lower Thailand’s 2013 economic growth to 3.8% from 4.9%
China increases export taxes on coking coal to 10%
Bushfire in Australia
impacts coal rail network
Bt5/share interim dividend paymentEnd of share
buy-back program of 5% (13.6million shares)
2Q13 Result announcement
World Bank announced limits
lending for coal-fired power plants
Share split announced
EGM to approve the share split
• Positive economic data from China
• Moody’s upgrade US coal sector to STABLE
Syria chemical weapon threat
3Q13
FED not to reduce QE
2Q13 Analyst
meeting
2Q13 SET Opportunity Day
Announced Bt5/share interim
dividend
India to defer coal import
from Indonesia as Rupee falls
Thermal coal dipped to 4-year lows at $77/t
Tony Abbot won the election to be new Australian prime minister
4Q13
Moody’s and Fitch warned a potential credit downgrade if political unrest prolongs
THB falls to 32/USD
Banpuroadshow in Singapore
Filing to the SEC; write-off of 135.6m shares between Mar 15-Sep 14, 2013
Anti-government protest in Thailand
SET fell by 68 points and Baht weakened
Japanese power utilities agree to buy coal at $89/t (lowest since 2009)
BHP cut 230 jobs at
Australian coal mine
China’s dimmed GDP forecast (7.4%), reforms may slow growth to the lowest since 1990
Indonesia to cap coal
output to 400 mt in 2014
1Q14
4Q13 Analyst meeting
Decrease in Paid-up Capital
announced
4Q13 Result announcement
Announced Bt0.70/share 2H dividend
4Q13 SET Opportunity Day
38
Banpu group Q-Q revenue analysis: coal operations
7.6 6.5 6.1 6.7 6.8
6.67.1 6.9 7.5 7.6
4Q12 1Q13 2Q13 3Q13 4Q13
Indonesia Coal (ITM)
Note: ITM and Centennial revenues are consolidated in Banpu income statement.Australia Coal – Third party coal sales included.
SALES (Mt)
AVERAGE SELLING PRICE (US$/t)
REVENUE ($M)
653563 527 543 545
4Q12 1Q13 2Q13 3Q13 4Q13
NE
X*
AS
P
Domestic
Export
86 93 86 78 84
81 80 77 73 71
4Q12 1Q13 2Q13 3Q13 4Q13
100% basis
100% basis
Note: ‘$’ 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
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)
154 161 133 126 186
4Q12 1Q13 2Q13 3Q13 4Q13
0.7 0.7 0.7 0.7 0.9
4Q12 1Q13 2Q13 3Q13 4Q13
AS
P 101 10690 81 88
4Q12 1Q13 2Q13 3Q13 4Q13
NE
X*
8693 86
78 84
Equity basis
100% basis
Domestic
Export
1.7 1.6 2.5 1.8 2.5
3.3 2.93.8 3.2 3.7
4Q12 1Q13 2Q13 3Q13 4Q13
Australia Coal (Centennial)
SALES (Mt)
AVERAGE SELLING PRICE (A$/t)
REVENUE (A$M)
244 202271 234 259
4Q12 1Q13 2Q13 3Q13 4Q13
AS
P
74 65 70 73 70
4Q12 1Q13 2Q13 3Q13 4Q13N
EX
*
8693 86
78 84
Equity basis
Equity basis
Domestic
Export
39
Banpu consolidated sales revenuesUSD million
Coal Indonesia
Power+5% Y - Y
984809
Power
Coal Australia
Coal Indonesia
Coal Australia
Note: Revenue from other is included in Coal.
854
-11% Y –Y
-15% Y - Y
-11 % Y - Y
3,775
3,351
USD million
Coal Australia+12% Q - Q-4% Y - Y
Coal Indonesia+1% Q- Q-18 % Y - Y
-13% Y –Y
+5% Q – Q
Power+29% Q - Q+4% Y - Y
685 554 562
2,5132,247
248214 239
1,079
913
51 41 53
183
191
4Q12 3Q13 4Q13 2012 20132012 2013
Coal gross margin (weighted average) 4Q13: 32% Coal gross margin (weighted average) 2013: 32%
40
Banpu consolidated coal gross margin 2013 : 32%
Coal sales Gross margin
Indonesia gross margin: 35%
Indonesia Coal
4Q12 3Q13 4Q13
35%38%38%
672
545540
USD million USD million
Australia gross margin: 25%
Australia Coal
4Q12 3Q13 4Q13
25%29%27%
248 239214
Indonesia gross margin: 36%
Indonesia Coal
2012 2013
36%
43%
2,476
2,182
Australia gross margin: 23%
Australia Coal
2012 2013
23%30%
1,079913
2012 2013 2012 2013
142 122 99
651
42011
3 9
29
27
49 43 54
226
146
11 35 9
68
103
4Q12* 3Q13 4Q13 2012* 2013
41
Banpu consolidated EBITDA
Coal Indonesia
Power
-35% Y-Y
USD million
Power
974
213203
Coal Australia Coal China Coal Indonesia
USD million
Coal Australia
Coal China
Coal - Indonesia
Power
-30% Y-Y
Coal - Australia
Coal - China
-18% Y-Y
171
-16% Q –Q
-20% Y –Y
-19% Q-Q
+200% Q-Q
697+52% Y-Y
-7% Y-Y
+26% Q-Q
+10% Y-Y
-28% Y –Y
* Reflects new TFRS accounting policies
+26% Q-Q
+10% Y-Y
-35% Y-Y
2012* 2013
8139
6
202
110
7
3
7
28
21
-6 -18 -13
26
-67 -9
23
-2
42
66
-2 -16
23
-27
-27
4Q12* 3Q13 4Q13 2012* 2013
FX• FX gains (Banpu)
+$30M
• FX losses (CEY) -$7M
42
Banpu consolidated NPAT
Coal Indonesia
Power
-46% Y-Y
USD million
Power
272
7130
Coal Australia Coal China Coal Indonesia
USD million
Coal Australia
Coal China
Coal Indonesia
Power n.m.
-93% Y-Y
Coal Australia
Coal China
+0% Y-Y
+43% Q-Q
* Reflects new TFRS accounting policies
20
-32% Q –Q
-71% Y –Y
-85% Q-Q
+133% Q-Q
103
+57% Y-Y
-25% Y-Y
FX and derivative
FX • FX gains (Banpu) +$25M
• FX losses (CEY) -$52M
+117% Y-Y
-62% Y –Y
n.m.
2012* 2013
GEARING RATIOS
43
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 31 December 2013)
USD Float53%
USD Fixed27%
AUD Fixed
4%
THB Float2%
THB Fixed14%
TOTAL DEBT: $3.24 billionAs at 31 January 2014
0.74 0.791.07
Net debt / Equity1 (x)
42%45%
52%
Net market gearing2 (%)
Net debt / EBITDA (x)
2.052.52
3.99
2011 2012 20132011 2012 2013
44
Capex outlook : 2012-2015
100
1,273
123
197
427
Australia
340(1)
Total capexLaos
269230
Indonesia
146
Mongolia
200
100
China
37
* Capex figures exclude maintenance capex Disclaimer: all capex figures are indicative only and are subject to change
(1) Includes 2016 Hongsa equity injection
IPCC, BoCTexpansion, BunyutExpansion, etc
Newstan and Angus Place extension
China Power (BIC)
Tsant Uuldevelopment and Altai Nuursexploration
Capex from Hongsaproject in 2014-2016
USD million
Capex FY12-13
Capex FY14-15
494
779
45
● IFRIC 20 – Stripping costs in the production phase of a surface mining
● Stripping costs, which provides an improved access benefit to ore/ coal is recognized as an asset
● Effective date: January 1, 2014
● Compulsory for all mining companies with surface mines
● Change in accounting policy (retroactive and require restatement)
● First result will be shown in 1Q14 statements
COMMENTS
Change in accounting standard: Indonesia coal
Note: charts not drawn to scale. IFRIC stands for International Financial Reporting Accounting Interpretation Committee, ISAK stands for Interpretation of Financial Accounting Standard
1. Cash basis
• Capitalized O/B if there is future benefit (e.g. access to coal)
• O/B above LOM avg. is capitalized
• Capitalized O/B is amortized according to production and remaining reserves by pit
• Indominco
• Trubaindo
• Embalut
• Bharinto
*New practice to be applied for all ITM mines
8.0 8.4 8.2 8.7 4.2
2.01.0 2.5 1.03.5
2. Life of mine
3. Betterment
ROM
4. IFRIC 20/ISAK29
S/R
IFRIC 20 : MINING COSTCURRENT PRACTICES
Based on LOM S/R
Based on S/R attributable to coal inventory
Avg. 8.0
7.0
11.8
3.5
12
8.09.0
1 2.5 3.5ROM
8.9 7.5 7.9 4.011.6S/R
ROM
Avg. 8.0
Amort.(year 1)
Amort.(year 2)
Based on LOM S/R, production and reservesS/R ILLUSTRATIVE ONLY
• Jorong
• Td.Mayang
ROM
Avg. 8.0
S/R
8.0 8.0 8.0 8.0 8.0
S/R
COMMENTS
46
Change in accounting standard: BLCP
● TFRIC 4 – Determining whether an arrangement contains a lease
● Effective date: January 1,2014
● PPA is considered as a lease
● Treats capacity utilization as a ‘lease rental’
● Potential impact:
o Smooths revenue and net income curve over long term
o No change to cash flows and tax treatment
APR2: Availability Payment for power plant maintenance2 No adjustment
EP :
Energy payment for fuel cost3 No adjustment
VOM :
Variable operating and maintenance
4 No adjustment
APR1: Availability Payment for investment cost
1
Adjustment :
- APR1
+ Interest income
+ Depreciation
+/- Gain(loss) on FX
EXISTING REVENUE
TARIFF BASED INCOME
TFRIC 4
LEASE BASED INCOME
TFRIC4 ADJUSTMENTS FOR BLCP INCOME
47
Appendices
INDONESIA COAL: SALEABLE COAL 100% BASIS
48
MONGOLIA COAL: SALEABLE 100%BASISCHINA COAL: SALEABLE COAL EQUITY BASIS
Banpu group indicative five-year plan output targets
Disclaimer: These output targets are indicative only and are subject to change.
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016
Bharinto
JorongEmbalut
Trubaindo
Indominco
* **
* Tandung Mayang
0
5
10
2012 2013 2014 2015 2016
Gaohe (45%)Hebi (40%)
0
5
10
2012 2013 2014 2015 2016
Mt
MtMt
AUSTRALIA COAL: SALEABLE EQUITY BASIS
Others - West
Springvale (50%)Angus Place (50%)Others - NorthNewstan Ext (100%)
Mandalong (100%)
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016
Mt
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
2012 2013 2014 2015 20162012 2013 2014 2015 2016
49
Indonesia Coal gross margin 4Q13 : 35%
4Q12 3Q13 4Q13
35%38%
38%
545
Indonesia Coal
USD million
4Q12 3Q13 4Q13
Indominco
40%
37%
37%
259258
333
4Q12 3Q13 4Q13
34%
36%
31%
179
Trubaindo
228
160
4Q12 3Q13 4Q13
53%
Jorong
29%30% 25%
19 14 1652%
4Q12 3Q13 4Q13
20 54%
32% 34%
Kitadin
28 17
672
540
4Q12 3Q13 4Q13
Bharinto
17
5247%
48%52%
4Q12 3Q13 4Q13
TandungMayang
53
37%40%
51%
3839
25
34%
50
Banpu group EBITDA breakdown
46 43 34 58
-3 -3 -3 -3
2
-1
1 1
19 16 13 20
9 10 12 0
18 19 12 16
51 46 21 65
Jorong
-4 -2 -1 -4
58 72 7324
2 0
-2
1
99 88 114 102
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
7 6 5 7
Zhengding
6 3 2 6
Luannan
4 3 3 5
& holding companies
65%
Indominco
Trubaindo
Kitadin
AACI OVERHEAD
Unit: $M
100%
1162 43 43
Consolidated NOT consolidated
-2 -2 -3 -2
17 13 10 14
Unit: AUD Mil
All figures are 100% basis except for Centennial which is equity basis
148175 203 171
Bharinto
1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q131Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13 1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13
1Q13 2Q13 3Q13 4Q13
51
Banpu group net debt breakdown
Note: all ownership 100% unless otherwise shown.*BIC = Banpu Investment China (formerly BPIC)
1201 1286 14721686
318 224 192 155
& holding companies
2,484 2,469 2,482 2,500
1Q13 2Q13 3Q13 4Q13
4Q131Q13 2Q13 3Q13
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
548 631 687 667
-496 -400 -418 -289-40 -24 -18 -19 -5 -5 -7 -5
574 557 506 490 -4
1 3
-15
Unit: AUD Mil
Unit: $M
4Q131Q13 2Q13 3Q13 4Q131Q13 2Q13 3Q13 4Q131Q13 2Q13 3Q13 4Q131Q13 2Q13 3Q13
4Q131Q13 2Q13 3Q13 4Q131Q13 2Q13 3Q13 4Q131Q13 2Q13 3Q13
52
Banpu consolidated : operating profit
Units: USD million
Sales revenues – Power (BIC)
Cost of sales
Gross profit* -25%
GPM
YoY%
-11%
Sales revenues – Coal
Total sales revenues*
-12%
Gross profit - Coal -27%
Gross profit – Power (BIC)
GPM – Power (BIC)
GPM - Coal
5%
67%
191
(2,276)
1,075
32%
2013
3,351
3,128
1,008
52
27%
32%
183
(2,332)
1,443
38%
2012
3,775
3,555
1,387
31
17%
39%
Note: * Including other business
Units: USD million
Gross profit -25%
GPM
SG&A
Royalty
Other income
EBIT -36%
EBITDA -28%
YoY%
EBIT - Coal -45%
EBIT - Power
Income from associates
72%
EBITDA - Coal -34%
EBITDA - Power 51%
Other expenses - Operations
1,075
32%
(402)
(325)
57
471
697
2013
380
91
95
594
103
(30)
1,443
38%
(448)
(383)
63
740
974
2012
687
53
86
906
68
(21)
53
Banpu consolidated: operating profit
54
Banpu consolidated : net profit
Note: * Income from non-core assets and other non-operating expenses
Units: USD million
EBIT -36%
YoY%
471
2013
Interest expenses
Financial expenses
Minorities
Non-recurring items*
Income tax (non - core business)
Income tax (core business)
Net profit before extra items
(116)
(11)
(85)
(39)
(21)
(104)
155
Net profit before FX -57%130
FX translations
Net Profit -62%
(27)
103
EPS (USD/share) 0.04
-45%
Deferred tax income (expenses) 35
740
2012
(112)
(11)
(152)
0
(14)
(183)
298
(27)
272
1.00
283
30
55
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
-18%
YoY%
-13%
-14%
-21%
4%
69%
41
(526)
284
35%
3Q13
809
760
271
9
22%
36%
51
(648)
336
34%
4Q12
983
920
321
9
18%
35%
Note: * Including other business
-4%
QoQ%
5%
4%
-6%
29%
71%
53
(580)
274
32%
4Q13
854
793
255
15
29%
32%
Units: USD million
Gross profit
GPM
SG&A
Royalty
Other income
EBIT
EBITDA
EBIT - Coal
EBIT - Power
Income from associates
EBITDA - Coal
EBITDA - Power
-18%
-26%
-20%
YoY%
-27%
-17%
-20%
-18%
Other expenses - Operations
284
35%
(93)
(81)
13
144
203
3Q13
117
27
29
168
35
(7)
336
34%
(122)
(105)
28
143
213
4Q12
137
6
17
202
11
(10)
56
Banpu consolidated: operating profit
274
32%
(97)
(82)
11
105
171
4Q13
100
5
7
162
9
(7)
-4%
-27%
-16%
QoQ%
-15%
-81%
-4%
-74%
57
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)
-26%
YoY%
-104%
-71%
-46%
Deferred tax income (expenses)
144
3Q13
(30)
(3)
(22)
(20)
-
40
(29)
60
(10)
30
0.012
0
143
4Q12
(29)
(2)
(23)
(17)
-
73
(33)
(2)
71
0.26
57
32
105
4Q13
(30)
(3)
(17)
(31)
(8)
(3)
(24)
31
23
20
0.008
(6)
-27%
QoQ%
-108%
-32%
-48%
Units: USD million 2013 YoY%
Cost of sales
Gross profit -35%
GPM
Royalty
SG&A -17%
-21%
-101%EBIT
-5%
Sales revenue
Sales volume (Mt)
-15%
Other income 30%
Interest expenses
Financial expenses
Net profit -149%
2012
(751.25)
327.78
30%
(75.01)
(186.44)
68.85
14.30
1,079.03
22.98
(25.56)
(5.80)
101.33
(699.42)
213.97
23%
(58.96)
(155.56)
(0.87)
13.59
913.38
29.84
(26.33)
(5.76)
Gain (loss) on exchange rate 5.34(52.40)
Corporate income tax 0.55-
(49.30)
Gain (loss) on derivative 57.9518.38
Other expenses (20.46)(30.16)
58
Centennial : Income Statement
Deferred tax -17.69
47%
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
4Q12
(179.87)
68.18
27%
(17.03)
(48.06)
2.05
3.297
248.05
(6.50)
(2.13)
(1.43)
10.24
18.23
Other expenses
59
Centennial : Income Statement
YoY%
-14%
-26%
-10%
464%
11%
-4%
19%
n.m.
-29%
9.19
(10.23)
QoQ%
-4%
-6%
7%
70%
14%
12%
131%
n.m.
4%
Deferred tax income -
4Q13
(180.50)
58.78
25%
(15.33)
(35.56)
11.56
3.659
239.29
10.91
(6.57)
(1.62)
(6.58)
(2.44)
0.33
(7.24)
0.45
3Q13
(153.21)
61.15
29%
(14.37)
(37.75)
6.81
3.214
214.37
4.73
(6.40)
(1.34)
0.99
0.36
0.29
(6.96)
-
60
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 1.5 1.6 1.7 1.7
1.3
2.51.2 2.0 2.1 1.7
2.71.9
2.8
4.2
3.1
3.7 3.63.3
4.4
3.6
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
2013 2014
6 wks
5 wks
3