U.S. Coal Demand and Peabody Strategic Overview

Second Quarter 2018 Expectations • Increase Australian thermal volumes sequentially as year progresses, lower unit costs • Reduce Australian metallurgical costs through improved operational performance • Improve Midwest cost performance on greater equipment reliability; Expect seasonally lower Q2 PRB volumes • Execute stated financial approach, including returning cash to shareholders. through upsized share buyback program and dividends Peabody Note: Peabody's board of directors will evaluate dividends on a quarterly basis, taking into consideration the company's cash flows and alternative means to create shareholder value. 26

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