U.S. Coal Demand and Peabody Strategic Overview slide image

U.S. Coal Demand and Peabody Strategic Overview

U.S. Operations: PRB Adjusted EBITDA Margins Routinely Superior to Other PRB Coal Companies 25% Adjusted EBITDA Margin of PRB Producers (2014-2017 Average) 21% 17% Peer Avg. 11% Consistently delivers Adjusted EBITDA margins superior to other PRB producers - 56% higher Adjusted EBITDA margins than average of other PRB coal producers Lowest-cost producer • Well-capitalized reserve position through prior reserve acquisitions BTU Peabody - No new LBAs required for nearly a decade Source: Public company reports. Other PRB producers include Alpha Natural Resources / Contura (through Sept. 30, 2017), Arch, and Cloud Peak (listed in alphabetical order). Adjusted EBITDA margin is a non-GAAP measure and may not be calculated identically by all companies. Please refer to the appendix for information on this non-GAAP measure. 18
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