Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Shareholder Meeting (October 2023)
28 slides from Whitehaven Coal's shareholder meeting presentation, Oct 26, 2023
Slide 1: 2023 AGM Addresses and Presentation announcement
26 October 2023 TO: ASX Market Announcements FROM: Company Secretary SUBJECT: 2023 Annual General Meeting – Addresses and Managing Director and CEO Presentation For personal use only Attached are the following which will be delivered at the Company’s Annual General Meeting being held today at 10:00a
Slide 2: Chairman's address to the AGM
The Hon Mark Vaile AO Chairman, Whitehaven Coal Address to the Whitehaven Coal Annual General Meeting 26 October 2023 Ladies and Gentlemen First can I acknowledge the Traditional Owners of the land on which we meet, the Gadigal people of the Eora Nation, and pay my respects to their elders past and
Slide 3: Chairman's address: acquisition and capital allocation
The increased scale delivered by the acquisition will consolidate Whitehaven’s position as the leading Australian ASX-listed metallurgical coal producer. It is a highly earnings accretive acquisition from its first year, with considerable upside potential, which we expect will deliver meaningful ret
Slide 4: Chairman's address: remuneration and closing
Importantly, at last year’s AGM the SIP remuneration framework was approved by shareholders, including the foreign institutional shareholder now making these claims, and supported by all proxy advisors. Shareholders can be confident in the strong alignment between management and shareholders. There
Slide 5: Appendix: Chairman's comments on key resolutions
APPENDIX: Chairman’s AGM comments regarding key resolutions RESOLUTION 1 – REMUNERATION REPORT As disclosed in the 2022 Remuneration Report, the Board undertook a significant review of the executive remuneration strategy and framework in response to a first strike and subsequent shareholder feedback
Slide 6: Resolutions 1 and 2 comments
In summary, the Board is confident we have designed a remuneration framework that best reflects our unique challenges while aligning management to maximum long-term value creation for shareholders. As such, the Board recommends that shareholders vote in favour of resolution 1. RESOLUTION 2 – grant o
Slide 7: Sustainability and decarbonisation comments
The company already provides a comprehensive suite of disclosures on these and other topics in its sustainability report, which I commend to all stakeholders. The report also outlines our decarbonisation roadmap, which details current and potential site-based levers to reduce our emissions footprint
Slide 8: Managing Director and CEO address
Paul Flynn Managing Director and Chief Executive Officer, Whitehaven Coal Address to the Whitehaven Coal Annual General Meeting 26 October 2023 Thank you, Chairman. Welcome everyone to Whitehaven Coal’s Annual General Meeting for 2023. I would also like to acknowledge the Traditional Owners of the l
Slide 9: Strong financial results
Strong financial results We delivered a record net profit after tax of $2.7 billion, and earnings before interest, tax, depreciation and amortisation of $4 billion, generating cash from operations of $4.2 billion and ending the period with $2.65 billion of net cash on the balance sheet. This strong
Slide 10: Acquisition rationale and balance
Acquiring these assets will provide us with a better balanced business to face a future where metallurgical coal will be an essential component to deliver on the global energy transition through increased steel demand to build renewable energy infrastructure. These assets were acquired at a price th
Slide 11: Returning capital to shareholders
3. We will return capital to shareholders. During the deferred payment period of the acquisition, the Board expects to maintain franked dividends within the targeted payout ratio of 20-50% of NPAT generated from Whitehaven’s existing operations. The share buy-back is expected to remain on hold while
Slide 12: Whitehaven Coal October 2023
For personal use only Whitehaven Coal 2023 AGM Presentation 26 October 2023 Authorised for release by the Board of Whitehaven Coal Limited Whitehaven Coal Limited ABN 68 124 425 396 Level 28, 259 George Street, Sydney NSW 2000 P +61 2 8222 1100 | F +61 2 8222 1101 PO Box R1113, Royal Exchange NSW 12
Slide 13: Disclosure
For personal use only Disclosure This presentation contains information in a summary form and does not purport to be complete. It is qualified by any other information that Whitehaven discloses to the ASX. FORWARD LOOKING STATEMENTS Statements contained in this material, particularly those regarding
Slide 14: A record result delivered in FY2023
For personal use only A record result delivered in FY2023
Slide 15: FY23 drivers and outcomes
FY23 drivers and outcomes External factors Providing energy security through the transition For personal use only Strong demand and Weather events – Japan Whitehaven’s coal produces supply constraints industry wide impacts 29.5 TWh of Japan’s baseload, representing • HCV coal in high demand • Severe
Slide 16: FY23 results highlights
FY23 results highlights For personal use only 13% improvement in Strong underlying 18.2Mt ROM Record demand for high-CV coal production impacted by $4.0b EBITDA and TRIFR1 to 4.7 and underpinning record flooding events, labour ZERO environmental realised coal price shortages and constraints at $2.7b
Slide 17: Excellent safety and environmental performance
Excellent safety and environmental performance Whitehaven recorded a TRIFR for employees Whitehaven received ZERO environmental For personal use only and contractors of 4.7 for FY23, a 13% enforceable actions in FY23, a significant improvement on FY22 improvement on recent years 25 12 Environmental
Slide 18: Highly engaged people and communities
Highly engaged people and communities For personal use only Approx. 75% 10.5% 17.3% 5% increase in of 2,750-strong of workforce identify female employee workforce engagement workforce based in as Aboriginal and/or participation in our scores to 6.6 out of 10 local communities Torres Strait Islander
Slide 19: Local community sentiment towards Whitehaven
Local community sentiment towards Whitehaven has improved to its highest level yet For personal use only Overall positivity has increased significantly. Among those aware of Whitehaven, slightly over half are positive (51%), up from 44% in 2022. Only 18% have a negative opinion, compared to 21% last
Slide 20: Sustainability Report
Sustainability Report For personal use only 9
Slide 21: A compelling acquisition in line with strategy
For personal use only A compelling acquisition in line with strategy
Slide 22: Snapshot of expanded pro-forma portfolio
Snapshot of expanded pro-forma portfolio Whitehaven will be the leading ASX-listed metallurgical coal producer1 For personal use only Pro-forma structure Port of Hay Point Dalrymple Bay Terminal 100% 100% Daunia Blackwater NSW Queensland Blackwater RG Tanna Coal Terminal Maules Creek Narrabri Tarraw
Slide 23: Transaction summary
Transaction summary For personal use only ▪ Whitehaven to acquire 100% of the Blackwater and Daunia metallurgical coal mines from BMA for an aggregate cash consideration of US$3.2 billion1 comprising: – US$2.1 billion upfront consideration payable on completion – US$500 million, US$500 million and U
Slide 24: Diversifying and transforming Whitehaven
Diversifying and transforming Whitehaven For personal use only We are acquiring established metallurgical coal mining operations with combined ROM production of ~20 Mtpa sold via export markets If the Daunia, Blackwater and Whitehaven’s assets were combined for the full FY24 (pro-forma results), the
Slide 25: Strategic rationale
Strategic rationale This is a compelling and transformational acquisition aligned to Whitehaven's strategy For personal use only 1 Highly attractive and earnings accretive acquisition 2 Provides significant value upside including strategic growth options 3 Transforms Whitehaven into a metallurgical
Slide 26: Capital allocation framework – current priorities
Capital allocation framework – current priorities Allocation of capital will be reviewed in light of the acquisition For personal use only Operating cash flows 1 2 3 Maintain & optimise Retain cash / maintain Return to shareholders operations balance sheet strength Dividends Buy-backs Includes capit
Slide 27: Thank you
For personal use only Thank you
Slide 28: For personal use only
For personal use only