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

U.S. Coal Demand and Peabody Strategic Overview

Generate Cash - Record Free Cash Flow in First Quarter 2018 • Operational results paramount to strong cash generation • Non-core asset sales provide incremental cash flows ● Substantial global NOL positions significantly limit future cash taxes for extended time Operational Results Non-Core Asset Sales - ~$3.6 billion U.S. NOLS; ~70% unlimited by Section 382 - ~A$3.9 billion Australian NOLS $90 million cash tax refunds in 2018 - $85 million AMT credits refunded in 2019 and beyond • All remaining restricted cash expected to be released in second quarter 2018 Cash Flow Utilizing NOLS Releasing Restricted Cash Peabody Note: Free cash flow is a non-GAAP metric. Refer to the reconciliation to the nearest GAAP measure in the appendix. 21 22
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