New Hope Corporation Limited · ASX:NHC
New Hope — H1 2022 Earnings Presentation
22 slides from New Hope's earnings presentation, Mar 22, 2022
Slide 1: Financial Results Release Half-Year 31 January 2022
FINANCIAL RESULTS For personal use only RELEASE HALF-YEAR 31 JANUARY 2022 Presented by Robert Millner, Rebecca Rinaldi, Dominic O’Brien and Robert Bishop 22 March, 2022
Slide 2: Important Information About This Document
IMPORTANT INFORMATION ABOUT THIS DOCUMENT For personal use only The presentation in this document is in summary form only. It should be read together with New Hope Corporation Limited’s (“NHC’s”) other announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.a
Slide 3: Highlights
HIGHLIGHTS For personal use only Robert Millner Chairman
Slide 4: Highlights
HIGHLIGHTS Financial results Sustainable Operations and legacy company outlook HIGHLIGHTS For personal use only NHC Share price CLOSING SHARE INTERIM DIVIDEND SPECIAL DIVIDEND 3.50 PRICE $2.27 17.0cents 2.50 13.0cents 1.50 0.50 79% 325% “We have witnessed a remarkable recovery in coal prices since t
Slide 5: Financial Results
FINANCIAL For personal use only RESULTS Rebecca Rinaldi Chief Financial Officer
Slide 6: Financial Highlights
Highlights FINANCIAL Sustainable Operations and RESULTS legacy company outlook FINANCIAL HIGHLIGHTS For personal use only REALISED PRICE UNDERLYING TOTAL REVENUE Newcastle Index pricing US$/t EBITDA1 MARGIN $192.4/t $104.8/t $1,025M 350 300 147% 681% 153% 250 200 150 BANK DEBT DRAWN CASH GENERATED A
Slide 7: Underlying FOB Cash Cost (A$/Sales t)
Highlights FINANCIAL Sustainable Operations and RESULTS legacy company outlook UNDERLYING FOB CASH COST (A$/Sales t) For personal use only Cost control measures at both operating sites and reliable production at Bengalla resulting in reduction in site cash costs. Strategic purchase of trade coal to
Slide 8: Group Underlying EBITDA (A$m)
Highlights FINANCIAL Sustainable Operations and RESULTS legacy company outlook GROUP UNDERLYING EBITDA1 (A$m) For personal use only Coal price recovery, disciplined cost control and reliable production resulting in strong Underlying EBITDA growth. +94% 906 100 554 317 63 7 +253% 65 286 81 1H21 2H21
Slide 9: Cash Generation
Highlights FINANCIAL Sustainable Operations and RESULTS legacy company outlook CASH GENERATION For personal use only Significant cash build to enable growth and transformational opportunities when they arise, whilst rewarding shareholders with consistent and sustainable dividends. +21% 453 7 513 310
Slide 10: Debt and Liquidity
Highlights FINANCIAL Sustainable Operations and RESULTS legacy company outlook DEBT AND LIQUIDITY For personal use only +368 Net cash position to enable sustainable returns to shareholders with scope to pursue growth and transformational opportunities that provide long-term value to our shareholders
Slide 11: Financial Performance
Highlights FINANCIAL Sustainable Company Outlook Operations and RESULTS legacy company outlook FINANCIAL PERFORMANCE For personal use only (A$ million) 1H22 1H21 % change EBITDA before non regular items 554.4 81.2 583% Depreciation and Amortisation (67.3) (71.0) 5% Interest (2.2) (2.7) 19% Treasury
Slide 12: Sustainable Legacy
SUSTAINABLE For personal use only LEGACY Dominic O’Brien Executive General Manager and Company Secretary
Slide 13: Safety and Wellbeing
SUSTAINABLE Operations and Highlights Financial results LEGACY company outlook SAFETY AND WELLBEING YTD Month AVE - All Injury Frequency 40 For personal use only Committed to keeping safety front of mind and Frequency Rate continual improvement of culture and systems 30 to support positive outcomes.
Slide 14: Environmental, Social and Governance
SUSTAINABLE ENVIRONMENTAL, SOCIAL AND Operations and Highlights Financial results LEGACY company outlook GOVERNANCE For personal use only Committed to strong governance and climate change risk management. Responsible operator of our mines delivering positive outcomes for our business and stakeholder
Slide 15: People and Community
SUSTAINABLE Operations and Highlights Financial results LEGACY company outlook PEOPLE COMMUNITY For personal use only Workforce Average Tenure Donations Community Contributions 639 7.82 Yrs $181.6K $753.1K Sponsorships Supporting schools, sporting Average Age clubs, community health and $99.3K 14.4%
Slide 16: Operations and Company Outlook
OPERATIONS AND For personal use only COMPANY OUTLOOK Rob Bishop Chief Executive Officer
Slide 17: Operations Overview
OPERATIONS OVERVIEW Highlights Financial results Sustainable OPERATIONS legacy AND COMPANY OUTLOOK NSW coal QLD coal For personal use only Division Port operations operations projects Key assets ▪ Bengalla JV (80%), operated by New Hope, Taipower (20%) ▪ New Acland Stage 3 (100%) ▪ Queensland Bulk H
Slide 18: Operations Overview
Financial results Sustainable OPERATIONS OPERATIONS OVERVIEW Highlights legacy AND COMPANY OUTLOOK For personal use only Division Rehabilitation Agriculture Oil and gas Key assets ▪ New Oakleigh ▪ Acland Pastoral Company (APC) ▪ Bridgeport Energy ▪ West Moreton / Jeebropilly ▪ Bengalla Agricultural
Slide 19: Strategy
Highlights Financial results Sustainable OPERATIONS legacy AND COMPANY OUTLOOK STRATEGY For personal use only Safe and efficient production maintaining cost discipline Positioned for accretive growth and transformation Focused capital allocation, maintaining strong returns Sustainable, long-term sha
Slide 20: Outlook
Financial Sustainable OPERATIONS Highlights Highlightsresults legacy AND COMPANY OUTLOOK OUTLOOK For personal use only Prices supported by energy demand and focus on strong cost control and capital discipline. Coal prices continue to strengthen as the global energy market is impacted by supply side
Slide 21: Global Cost Curve - 2030
Highlights Financial results Sustainable OPERATIONS legacy AND COMPANY GLOBAL COST CURVE - 2030 OUTLOOK For personal use only Even under scenarios of accelerated energy transition which has global demand reducing, both of the Company’s operations remain resilient. 150 25th Percentile 50th Percentile
Slide 22: Thank you
Thank you For personal use only Contact us Level 16/175 Eagle St, Brisbane City QLD 4000 (07) 3418 0500 newhopegroup.com.au ASX code: NHC