Investor Update13 November 2002

www.banpu.co.th

Rawi CorsiriRawi Corsiri COOCOO

Somruedee Somphong Somruedee Somphong CFOCFO

2www.banpu.co.th

Agenda

Quarterly overviewQuarterly overviewResults highlightResults highlight

Coal industry snapshotCoal industry snapshot

Business scenarioBusiness scenario

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Quarterly overview

� Coal Business- Spot coal prices bottomed-out in 3Q and started to show a strong

recovery in 4Q- Cost reduction programs have been done in mining process at

Indominco & Kitadin- Successful implementation of Centralization and Marketing Logistics- Achieved shipments to European market

� Power Business- TECO achieved 100% AP during Aug-Oct after the inspectation in 2Q- On-course project financing process of BLCP

� Finance- Completion in securing long-term bank loan for ECD and bonds

refinancing- 2002 interim dividend of Bt1.50/share

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Coal tonnage sales

Source: Banpu (Indocoal consolidation started in Mar02)

� A significant increase in volume sales in 3Q mainly from Thai market and International sales from Jorong

� Tonnage sales from Indocoal posted a slight decline due mainly from pending delivery in 4Q

� Anticipation of higher sales from Indocoalexport in 4Q

986 981 1,038 1,0251,356

431 554 458 441

513590

1,870

1,815

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Jul-Sep, 01 Oct-Dec, 01 Jan-Mar, 02 Apr-Jun, 02 Jul-Sep, 02

Unit

in '0

00 to

nnes

International sales - IndocoalInternational sales - JorongThai market sales

10%

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Sales revenue

Source: Banpu (Indocoal consolidation started in Mar02)

796 739 729 7461,015

321 356 310 313

320634

1,8841,643

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Jul-Sep, 01 Oct-Dec,01 Jan-Mar,02 Apr-Jun,02 Jul-Sep,02

Unit

in '0

00 B

aht

International sales - IndocoalInternational sales - JorongThai market sales

1%� Steady sales revenue

despite a sharp decline in coal prices

� Significant increase on Thai market sales due to temporarily domestic supply shortage

� Indocoal sales revenue anticipated to increase with more shipment in 4Q

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Market share - Thailand

Source: Banpu

Note: Total domestic coal consumptions in Thailand estimated at 10 MT

3Q02 9-month 2002

G Prem Jee9% Lanna

11%

Siam Cement7%

Others21%

Banpu52%

Siam Cement

6%

G Prem Jee9%

SBC6%

Marubeni3%

Others20%

Banpu44%

Lanna12%

� Banpu’s sales in Thailand achieved 52% market share

� YTD, Banpu shared 44% of the homeland market

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Agenda

Quarterly overviewQuarterly overview

Results highlightResults highlightCoal industry snapshotCoal industry snapshot

Business scenarioBusiness scenario

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Quarterly results

� Despite a strong growth in tonnage sales, 3Q revenues were steady due to the sharp decline in coal price

� Coal price also impacts gross profit and EBIT margins

� Strong core earnings (before FX) mainly from lower interest expense, and improved equity income

� However, the bottom-line dragged by TECO’s FX

Year-end Dec (Btm) 3Q02 2Q02Revenues 3,048 3,078 Gross profit 791 847 SG&A (373) (333) Royalty (249) (251) Other income 28 14 EBIT 196 277 Interest expense (168) (218) Equity income (bef. FX) 115 (13) Dividend income - 234 Income tax 19 (91) Minorities 11 (43) Net profit before extra items 173 146 Non-recurring items 69 172 ECD redemption premiums (19) (231) Mine property expenses (47) 57 Net profit before FX 177 143 Net profit 114 612

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9-month results

� Indocoal consolidation enhanced Banpu’srevenues by 71% y-y

� Gross profit margin significantly improved post-termination of EGAT’soverburden work

� Core-operation profits (before FX) solidly improved thanks to strong associate contributions

Year-end Dec (Btm) 9-mo02 9-mo01Revenues 7,742 4,136 Gross profit 2,169 852 SG&A (988) (894) Royalty (612) (79) Other income 165 162 EBIT 734 40 Interest expense (528) (359) Equity income (bef. FX) 222 157 Dividend income 267 9 Income tax (79) (65) Minorities (55) (23) Net profit before extra items 561 (242) Non-recurring items 384 1,099 ECD redemption premiums (337) (169) Mine property expense (25) - Net profit before FX 583 689 Net profit 1,271 659

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Operational breakdown

YTD 3Q02 2Q02 1Q02Tonnage sales ('000 tonnes)

Thai market 3,420 1,356 1,025 1,038 - Domestic 2,297 849 690 757 - Import 1,123 508 335 281 Jorong 1,411 513 441 458 Indocoal 4,275 1,815 1,870 590

Sales revenue (Btm)Thai market 2,490 1,015 746 729 - Domestic 1,090 410 342 338 - Import 1,399 605 404 390 Jorong 943 320 313 310 Indocoal 4,000 1,643 1,723 634

GPMThai market 23% 25% 21% 23% - Domestic 38% 33% 38% 42% - Import 12% 20% 11% 6%Jorong 49% 44% 54% 48%Indocoal 24% 22% 25% 27%

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Balance sheet

1.11.01.2

1.00.8

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Jul-Sep, 01 Oct-Dec, 01 Jan-Mar, 02 Apr-Jun, 02 Jul-Sep, 02

Historical net D/E

(Btm) Jul-Sep, 01 Oct-Dec, 01 Jan-Mar, 02 Apr-Jun, 02 Jul-Sep, 02

Total assets 16,397 15,799 23,291 23,310 23,584

Total liabilities 8,980 8,988 15,246 14,399 9,962

Net debts 5,932 6,454 9,238 9,193 9,460

Equity 7,417 6,811 8,045 8,911 8,449

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Agenda

Quarterly overviewQuarterly overview

Results highlightResults highlight

Coal industry snapshotCoal industry snapshotBusiness scenarioBusiness scenario

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Banpu’s position in Indonesia

Source: Indonesia Coal Mining Association, Banpu

Note: Banpu’s productions include Indominco, Kitadin, and Jorong

� Amongst key players in Indonesia, Banpu ranked 4th after Adaro, KPC, and Kideco

� Banpu’s productions of 11.2mtpa in 2002 to be increase in 2004 with new production of Trubaindo

� Indonesia target to export just above 70% in 2002 –the rest for domestic consumptions

Top-ten producers (mtpa) 2002E Sharing

Adaro Indonesia 20.5 19%

Kaltim Prima Coal 17.0 16%

Kideco Jaya Agung 11.5 11%

Banpu 11.2 11%Bukit Asam 10.5 10%

BHP Aruthmin 10.2 10%

Berau Coal 7.0 7%

Ganung Bayan Pratama 2.5 2%

Bukit Daiduri Enterprise 2.3 2%

Others 13.1 12%

Total 105.8 100%

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Thermal coal spot price

Source: International Coal Report (28 Oct 2002)

Kcal/kg Current 3Q 2Q 1Q

Australia

Gladstone 6500 24.50-25.50 23.69-25.34 26.62-28.15 28.51-29.41

Newcastle 6300 24.00-25.00 22.17-23.63 25.70-26.99 26.78-28.68

China - Qinghuadao 6200 25.50-26.80 23.47-24.47 26.74-27.78 28.77-29.77

Indonesia

Kalimantan 6300 23.50-24.50 21.89-23.32 24.44-25.37 26.81-27.68

Russia Pacific 6300 25.00-25.50 23.06-24.44 25.77-27.96 27.35-28.85

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Demand outlook – Asia (Pacific Rim)

� Demand of thermal coal is expected to increase at a steady pace driven by Pacific Rim countries of 4% pa in next 10-yr*

� Assumptions used are conservative given:

� Average GDP growth of 1.0-2.0%� Energy reform in Hong Kong� Kyoto protocol� Proposed coal tax of Japan� Korean’s utilities restructuring� Nuclear capacity addition in

Taiwan*Source: Hill & Associates (2002)

0

50

100

150

200

250

300

2001 2006 2011

Unit

in m

illio

n to

nnes

4.4% CAGR

Taiwan

S Korea

HK

Japan

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Demand outlook – Other Asia

� China: A record imported of 5.6mt in 1H02 compared with 0.8mt during the same period last year

� Malaysia: A rapid demand driven by increased coal-fired power plants from 700MW in 2001 to 7,300MW in 2006

� India: High demand frustrated by three obstacles: import levies, high rail rates, and limited port capacity

� Philippines: Despite a huge electricity consumption, coal-fired generation highly depends on the two government initiatives

� Thailand: Strong environmental opposition to some coal-fired power plants project

Source: Hill & Associates (2002)

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Supply outlook – Asian exporters

� Under Hill’s base case scenario, thermal coal exports from Asian producers will grow at 2% pa in the next 10-yr

� Indonesia: No stagnation on productions and exports despite the country’s internal problems

� China: Exports based on political and economic decisions

� Australia: Market share hurt by China’s glut, yet, managed to dominant

Source: Hill & Associates (2002)

0

50

100

150

200

250

300

2001 2006 2011

Unit

in m

illio

n to

nnes Indonesia

China

Australia

1.8% CAGR

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Agenda

Quarterly overviewQuarterly overview

Results highlightResults highlight

Coal industry snapshotCoal industry snapshot

Business scenarioBusiness scenario

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Ramp-up capacity production of Indocoal

0

1

2

3

4

5

6

7

1999 2000 2001 2002 2003 2004 2005 20060%

5%

10%

15%

20%

25%

30%

Indominco Kitadin Trubaindo Overall GPM

Post acquisition(MT)

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Implementation of cost reduction program

Crusher System

TWIN BOOMSTACKER

Coal Transport to Port34 Km

MINE STOCKYARD

PORT STOCKYARD

PIT

SHIP LOADER

Conve

yor 6

.5 Km

Truck Dump

C24-1C24-2

C24-3

C24-4

C25-1 C25-2C25-3

C25-4

Result QualityCV : 6000 - 6700kcalAsh: 5.0%Ts : 0.8%

Cross Belt Sample

Cross Belt SampleINDOMINCO

1

3

2

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Other issues

� Imposition of Japan coal tax

� The Bali Blast

� News on possible delay of BLCP

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Upcoming events

� Independent review of Banpu’s reserves figures by international technical consulting firm

� Secure additional investment insurance policy of Indonesian assets worth US$55m

Question & Answer

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Appendices

� Planned CAPEX 2002-06

� Debt portfolio

� Summary of Indocoal financials

� Summary of TECO’s financials

� BLCP development

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Planned Capex (Maintained)

(US$m) 2002 2003E 2004E 2005E 2006E

Coal Thailand __ 1 2 1 __

Jorong 12 3 6 1 2

Indocoal 11 11 10 11 9

Power 11 22 __ 21 49

Total 34 37 18 34 60

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Debt portfolio: as at September 2002

Debentures BANPUECD #2

BANPU #3

BANPU #4

BANPU #5

BANPU #6

IndocoalCD

O/S amount US$3.1m Bt937.5m Bt750m Bt2,500m Bt500m US$30m

Maturity date Apr-03 Nov-02 Nov-04 Apr-06 Apr-08 2004

Interest rate 2.75% 8.125% MLR-0.25% 5.80% MLR-0.375% 2.75%

Rating - - - "A-" (TRIS) "A-" (TRIS)

Bank Loans BANPU Indocoal

Long-term Bt2,280m US$61.1m

Short-term Bt1,200m Rp5,936m

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Indocoal’s financials

Y/E Dec (Btm) 3Q02 2Q02Revenues 1,932 1,911Cost of sales (1,439) (1,420)SG&A (277) (120)Royalty (183) (193)Interest expenses (68) (84)Net operating profit (35) 94FX translation (149) 572Mining property (47) 57Minority interest 0 0Income tax 38 (88)Reported net profit (193) 635

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TECO’s financials

Y/E Dec (Btm) 3Q02 2Q02

Revenues 2,376 1,767

Cost of sales (1,723) (1,423)

SG&A (33) (34)

Swap cost (123) (112)

Interest expenses (113) (118)

Net operating profit 384 78

FX translation (438) 481

Reported net profit (54) 559

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BLCP development

�1,434MW coal-fired power plant (50% held by Banpu and CLP Powergen Southeast Asia, 47 km transmission line)

�25-year PPA with EGAT, the national utility

�Environmental approvals in place for the industrial location

�25-year Coal Supply agreement with coal source portfolio

�Financial close expected by July 2003