U.S. Coal Demand and Peabody Strategic Overview

Invest Wisely - Default Position to Return Cash to Shareholders ● Particular emphasis on amount and timing of returns — Direct correlation between rate of return and shareholder value • Earned 21% ROIC in 2017, well above WACC of 10 - 11% Maintain financial strength Returns above cost of capital Reasonable payback period Core regions: PRB, ILB, seaborne met & thermal • Share repurchase program represents way Significant Tangible for Peabody to invest in synergies value for our shareholders company we know - - and like the best Peabody Note: ROIC of 21% reflects Peabody's ROIC post-emergence (2Q - 4Q 2017); ROIC equals Adjusted Net Operating Profit After Tax divided by Average Invested Capital Base. 23

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