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

U.S. Coal Demand and Peabody Strategic Overview

Return Cash to Shareholders - Cash Allocation Shifts from Debt Repayment to Returning Cash to Shareholders in 2018 $300 Cash Allocation ($ in millions) $200 $69 $107 Q3 2017 Q4 2017 $46 $239 YTD 2018 • Company repurchases 5.7 million shares in 2018 • Repurchases total $400 million, 8% of shares outstanding, since initiation. of buyback program - Peabody now has ~125.8 million total shares outstanding • Expanding share repurchase ■Discretionary Debt Repayment Cash Returned to Shareholders Peabody program to $1 billion Initiated and paid a dividend in first quarter Note: Cash to shareholders includes cash dividends and share repurchases through April 25, 2018. Percent of shares repurchased based on 137.3 million shares outstanding as of relisting. 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. 24 24
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