Peabody Energy Corporation · NYSE:BTU
Peabody Energy — BMO Coal Symposium 2021
19 slides from Peabody Energy's conference presentation, Nov 10, 2021
Slide 1: BMO Coal Symposium
BMO Coal Symposium Mark Spurbeck, Chief Financial Officer November 10, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as
Slide 3: Peabody's Three Strategies for Value Creation
Peabody’s Three Strategies for Value Creation Continuing to reweight investments toward greater seaborne thermal and metallurgical coal to capture higher ‘= growth Asian demand 3) Optimizing = Executing our our lowest- ™ 86 financial cost and approach of highest- generating margin U.S. : cash, therm
Slide 4: Peabody: Leading Global Coal Producer Providing Essential Products
Peabody: Leading Global Coal Producer Providing Essential Products for Baseload Electricity and Steel Va Seaborne Thermal Coal delivered primarily to Asia Anchored by tier one Wilpinjong Mine Consistently high margins throughout price cycle ~ Va Seaborne Met Coal delivered to Asia and Europe Costimp
Slide 5: Segment Deep Dive
Slide 6: Seaborne Platform Well-Positioned to Serve Higher-Growth Demand Centers
Seaborne Platform Well-Positioned to Serve Higher-Growth Demand Centers with a Diversity of Products STRATEGY Operate safe and sustainable mines serving higher-growth Asian-Pacific demand centers, while exploring means to enhance the v platform and improve our cost position Coppabella Wilpinjong, }
Slide 7: Seaborne Thermal Coal Segment Margins to Benefit from Highest Prices in over 10 years
a Seaborne Thermal Coal Segment Margins to Benefit from Highest Prices in over 10 years @ Seaborne thermal prices surged to the highest levels Newcastle Index Price (USD per tonne) in over 10 years $280 e Supply hampered by rain, $240 rail and production issues $200 e@ Markets expected to remain $16
Slide 8: Seaborne Thermal: Represents Tier One Assets with Strong Margins
Seaborne Thermal: Represents Tier One Assets with Strong Margins e Investing in Seaborne Thermal platform to extend life of assets with Wambo 20Mt 19Mt JV and Wilpinjong Seaborne Thermal Volumes, Revenues and Costs 17-18 Mt 17-18 Mt —— extension e Wilpinjong is one of Australia’s lowest-cost coal mi
Slide 9: Global Economic Indicators Remain Positive for a Favorable Seaborne Met Market
Global Economic Indicators Remain Positive for a Favorable Seaborne Met Market Economic indicators remain positive for continued strong global GDP growth; fiscal stimulus will be supportive for demand growth Favorable macro backdrop is expected to provide continued support for commodities and coal p
Slide 10: Seaborne Metallurgical: Delivering Increased Volumes and Lower Costs
Seaborne Metallurgical: Delivering Increased Volumes and Lower Costs into Robust Market Seaborne Met Volumes, Revenues and Costs 2019 2020 mm CMV mmm Metropolitan jm Millennium mm Estimate —Costs per Ton mm Shoal Creek Revenues per Ton Shoal Creek and Metropolitan resume productionin 2021 with highe
Slide 11: Key Takeaways: Seaborne Thermal and Metallurgical
Key Takeaways: Seaborne Thermal and Metallurgical Operational Excellence: Drives safety, productivity, cost efficiency, reclamation Strategically positioned to serve higher-growth Asia-Pacific demand centers Strengthens and diversifies company’s portfolio, offering substantial upside price exposure
Slide 12: Powder River Basin and Other U.S. Thermal: Strategically Positioned
Powder River Basin and Other U.S. Thermal: Strategically Positioned, Providing Reliable Value STRATEGY Capitalize on highly productive, low cost, responsible operations with substantial reserves to maximize cash flow
Slide 13: U.S. Thermal Coal Segments Benefiting from Elevated U.S. Power Demand
U.S. Thermal Coal Segments Benefiting from Elevated U.S. Power Demand and Global Market Tightness e U.S. coal generation increased 26% over U.S. Generation Mix prior year to 23% with high natural gas prices and a 3% increase in electricity demand over prior year e@ Coal inventories decreased by 54 m
Slide 14: Powder River Basin: Operates as a Complex; Sharing Resources
Powder River Basin: Operates as a Complex; Sharing Resources, Technologies, Contracts to Maximize Returns Powder River Basin Volumes, Revenues and Costs 108 Mt 90+Mt 7 87Mt 85-90 Mt co a 2019 2020 2021E 2022E mms NARM mmm Caballo mmm Rawhide — Revenues perTon ——Costs per Ton 1E Reve Peahody «- Peano
Slide 15: Other U.S. Thermal: Supplies Regional Demand Under Term Agreements
Other U.S. Thermal: Supplies Regional Demand Under Term Agreements; Strong Margins Due to Proximity to Customer e Ramping up volumes in 2022 by approximately two million tons to meet increased demand Other U.S. Thermal Volumes, Revenues and Costs 28Mt 18-19 Mt e Reached agreements +} that will suppo
Slide 16: Key Takeaways: Powder River Basin and Other U.S. Thermal
Key Takeaways: Powder River Basin and Other U.S. Thermal Operational Excellence: Drives safety, productivity, cost efficiency, reclamation Strategically positioned in best U.S. regions Operates core regions as complexes, sharing resources, contracts to maximize returns Data driven analytics to incre
Slide 17: Enhancing Financial Strength: Debt Reduction and Enhanced Liquidity
Enhancing Financial Strength: Debt Reduction and Enhanced Liquidity e Refinancing completed in Q1 2021 Total Debt resulted in meaningful extension of (Sin millions) debt maturities to December 2024 yy ~$2$0 MILLION and landmark surety agreement $1,548 YTD RepucTion e Retired ~$250 million of senior
Slide 18: Enhancing Financial Strength: Cash Flow Improvements and Liability Management
Enhancing Financial Strength: Cash Flow Improvements and Liability Management © Significant cash flow forecasted on expected HIGHER SEABORNE AND VS. THERMAL PRICING * Continue DISCIPLIWED cost and capital allocation practices © Positioning each operation to be profitable in ALL MARKET CYCLES through
Slide 19: Near Term Focus: Positioning Company for Long-Term Success
Near Term Focus: Positioning Company for Long-Term Success Resilience in all Market Cycles Alea Organic and Synergistic Growth and continue focus on cost structures to be resilientin all Reece Growing with Our Customers opportunities utilizingidled Aligni ith market cycles i igning with our [\VEAWel