New Hope Corporation Limited · ASX:NHC
New Hope — FY2015 Earnings Presentation
46 slides from New Hope's earnings presentation, Sep 22, 2015
Slide 1: Financial Results Release Full Year Ended 31 July 2015
rsonal use only FINANCIAL RESULTS RELEASE Full Year Ended 31 July 2015 Presented by Robert Millner - Chairman & Shane Stephan - Managing Director 22 September 2015
Slide 2: Disclaimer
DISCLAIMER rsonal use only IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited (“NHC”) and is subject to change without notice. Nothing contained in this document constitutes investment, legal, tax or other advice. The information
Slide 3: Overview
OVERVIEW Mr Robert Millner - Chairman rsonal use only
Slide 4: Executive Summary
EXECUTIVE SUMMARY rsonal use only • Ongoing improvement in safety performance • Strong operating cash flow, with an increase of $24.1 million • Strong sales and production tonnages for the period • Profit after tax before non-regular items totals $51.7 million – $26.0 million from coal mining, marke
Slide 5: Safety Performance
SAFETY PERFORMANCE Mr Shane Stephan - Managing Director rsonal use only EMERGENCY RESPONSE TEAM TRAINING
Slide 6: Safety Performance
SAFETY PERFORMANCE Principle of Safe Production rsonal use only • Safety performance continues to improve in relation to FY 2014 • All lag indicators improved for FY 2015 compared to same period in 2014 – TRI’s down 50% – LTI’s down 27% – HPI’s down 43% • Concentration through embedding i-Safe/We-Sa
Slide 7: Safety Performance: Quarterly TRIFR
SAFETY PERFORMANCE rsonal use only Quarterly Total Reportable Injury Frequency Rate (TRIFR) 50 45 40 35 30 25 20 15 10 5 0 TRIFR Linear (TRIFR) 7 | 22 September 2015
Slide 8: Financial Overview
FINANCIAL OVERVIEW rsonal use only
Slide 9: Financial Overview
FINANCIAL OVERVIEW FY 2015 rsonal use only 12 Months Ended 31 July (A$m) 2015 2014 Change % Revenue from ordinary activities 505.8 549.0 -8% Earnings before interest, tax, depreciation, amortisation 132.7 113.7 +17% and non regular items^ Earnings before interest, tax and non regular items^ 71.6 53.
Slide 10: Financial Overview: Per Share and Dividends
FINANCIAL OVERVIEW FY 2015 rsonal use only 12 Months Ended 31 July (cents per share) 2015 2014 Earnings per share before non regular items^ 6.2 5.0 Earnings per share (2.6) 7.0 Interim Dividend 4.0 6.0 Final Dividend to be paid in November 2015 2.5 2.0 Special Dividend to be paid in November 2015 3.
Slide 11: Group NPAT Comparison
NPAT $m rsonal use only 100 110 0 10 20 30 40 50 60 70 80 90 2014 NPAT 41.5 11 | 22 September 2015 Mining Costs - 7.0 Acland 8.4 Mining Costs - WM 9.1 Other Cost Savings Change in FX 28.2 Before non regular items Sales Volume 8.7 Sales Price GROUP NPAT COMPARISON 40.7 Logistics 6.7 3.9 Interest Reve
Slide 12: Group Cash Position
rsonal use only Cash $'m 800 900 1,000 1,100 1,200 1,300 Opening cash (incl. 12 | 22 September 2015 TD) 1,124.3 Op. Cash surplus 89.4 Interest Revenue 38.4 Sale of Shares 8.6 GROUP CASH POSITION Dividends 78.9 North Surat 48.2 Acquisition Cash Position including Term Deposits Capex 68.2 Closing Cash
Slide 13: Significant Items
SIGNIFICANT ITEMS Non Cash impact on FY 15 Results rsonal use only • There are five (5) major non-cash significant items included in the full year results with a total net impact of $73.6m post tax – Impairment of coal to liquids facility ($17.0m post tax) due to lack of commercial application in th
Slide 14: Cost Management
COST MANAGEMENT rsonal use only
Slide 15: Cost Management
COST MANAGEMENT rsonal use only • Innovation initiatives sustainably reduce costs • Wirtgen Surface miner purchased for Acland. Replaces two dozers and a loader, with resultant productivity improvement. • Reduced noise, vibration and potential for vehicle collision • Continuing to improve Wirtgen pe
Slide 16: Cost Management: Operations maintaining Cost Competitiveness
COST MANAGEMENT Operations maintaining Cost Competitiveness rsonal use only • Costs of sales reduced by $57.7 million or 17.1% • Administration costs reduced by $3.2 million or 26.2% • 2015 FOR operating costs reduced by 11.4% compared to 2014 financial year • Fuel costs savings of $11.2m, equating
Slide 17: Cost Control Trend Analysis
COST CONTROL Trend Analysis rsonal use only 17 | 22 September 2015
Slide 18: Production and Sales
PRODUCTION AND SALES rsonal use only
Slide 19: Production & Sales Performance
PRODUCTION & SALES PERFORMANCE FY 2015 rsonal use only Australian Operating Results 7,000 Production Sales 6,000 Tonnes - 000's 5,000 4,000 3,000 2,000 1,000 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Years ended 31 July 19 | 22 September 2015
Slide 20: Production & Sales Tonnages
PRODUCTION & SALES TONNAGES FY 2015 rsonal use only 12 Months Ended 31 July (million tonnes) 2015 2014 Change ROM Coal Processed 11.140 11.046 +1% Saleable Coal Production 5.747 5.637 +2% Export Sales * 5.681 5.846 -3% Domestic Sales 0.145 0.158 -6% TOTAL SALES * 5.827 6.003 -3% * Includes trade coa
Slide 21: North Surat Projects
NORTH SURAT PROJECTS rsonal use only
Slide 22: North Surat Projects
NORTH SURAT PROJECTS rsonal use only • In Dec 2014 acquired Cockatoo Coal’s 51% of North Surat Joint Venture for $25m • In Feb 2015 acquired Mitsui’s 49% of North Surat Joint Venture on similar terms • Long term strategic investment in a large tonnage of low ash open cut thermal coal 22 | 22 Septemb
Slide 23: North Surat Projects
NORTH SURAT PROJECTS rsonal use only • The three projects acquired from Cockatoo/Mitsui are Taroom, Collingwood and Woori • In combination with New Hope’s existing Elimatta project, the projects contain total resources of over 1 billion tonnes * • In the short term, New Hope will focus on project de
Slide 24: Community and Sustainability
COMMUNITY AND SUSTAINABILITY rsonal use only
Slide 25: Our Vision and Values
OUR New Hope is a successful diversified mining and energy business. We are proud of our achievements and care about people and the environment. VISION We will deliver sustainable growth and enduring shareholder value through our people and quality assets. rsonal use only INTEGRITY SAFETY We are eth
Slide 26: Community & Social Responsibility
COMMUNITY & SOCIAL RESPONSIBILITY Working together to maintain our Social Licence to Operate rsonal use only • We contribute around $600,000 pa to local community projects and not- for-profit groups through our Sponsorship Program and Community Investment Fund • Our Community Reference Group at Acla
Slide 27: Community Engagement
COMMUNITY ENGAGEMENT New Acland mine Family Support Walk • Over 800 New Acland employees and supporters turned out in force in Oakey on 15 rsonal use only March to show their support for the coal mine with a Family Support Walk through the town • Employees at the mine came up with the idea for the e
Slide 28: New Acland Coal Mine Stage 3 Project
NEW ACLAND COAL MINE STAGE 3 PROJECT Highlights rsonal use only • Continue the mine until approximately 2029, supporting approximately 435 operational jobs at peak, construction jobs of up to 260, plus thousands of indirect jobs • Potential expansion of the mine to 7.5 Mtpa product • Contribute $300
Slide 29: New Acland Coal Mine Project Timeline
NEW ACLAND COAL MINE STAGE 3 PROJECT Project Timeline Regulatory Approvals Engineering Stakeholders rsonal use only Nov ‘14 FEED Complete Board Approval Detail Design $47M Dec ‘14 CG Report / Conditional Approval EPBC Approval - Federal Gov’t Detail Design Feb ‘15 Enhanced (now deferred) Interaction
Slide 30: Rehabilitation
REHABILITATION Land Management rsonal use only • New Hope is committed to the progressive rehabilitation of land across its operations • Rehabilitation is progressive and occurs right behind the mining activities • To date 405 Ha of land has been fully rehabilitated at Acland • Clear demonstration o
Slide 31: Thermal Coal Markets
THERMAL COAL MARKETS rsonal use only
Slide 32: Coal Demand
COAL DEMAND Market Context SOURCE: Wood Mackenzie rsonal use only Thermal Coal Demand Demand Mt % 1,800 90 China import demand declining, however high quality Australian thermal coal is still in demand 1,600 80 1st Half 2015 China imports down 31% to 139Mt 1,400 70 1st Half 2015 China imports
Slide 33: Coal Supply
COAL SUPPLY Market Context SOURCE: Wood Mackenzie Mt Thermal Coal Supply rsonal use only 1,800 Supply 1,600 Seaborne thermal coal supply growth is 1,400 moderating particularly from Indonesia 1,200 Australian thermal coal supply 1st Half 2015 increased by only 1.8% to 115Mt 1,000 Currency depr
Slide 34: Port Operations
PORT OPERATIONS rsonal use only
Slide 35: Port Operations
PORT OPERATIONS Queensland Bulk Handling rsonal use only • QBH exported 7.1Mt for the year on 89 vessels • QBH is a despatch port • QBH management and staff maintained the strong safety performance, this year delivering over 3 years Lost Time Injury (LTI) free • Strong focus on cost control through
Slide 36: Oil and Gas
OIL AND GAS TOS NEW HOPE GROUP Ajuo asn yeuosie
Slide 37: Oil and Gas: Bridgeport Energy
OIL AND GAS Bridgeport Energy rsonal use only 12 Months Ended 31 July ($000) 2015 2014 Total Revenue 11,955 14,153 Earnings Before Interest Tax Depreciation (621) 200 Amortisation and non regular items^ Profit Before Tax (after non regular items)^ (59,862) (2,240) Less Income Tax Benefit (expense) 1
Slide 38: Oil and Gas Production and Revenue
OIL AND GAS Production and Revenue rsonal use only 38 | 22 September 2015
Slide 39: Oil and Gas Growth Projects
OIL AND GAS Growth Projects rsonal use only • Inland, Utopia and Cuisinier fields – Production enhancement program – Well cleanouts, descaling wells, re-perforating and fracture stimulation of some wells on existing production fields • 3D Seismic Program – PEL 630 – ATP 794 and ATP 805P • A number o
Slide 40: Outlook
OUTLOOK HOS NEW HOPE GROUP Ajuo asn jeuosia
Slide 41: Outlook and Focus
OUTLOOK AND FOCUS New Hope has a long term Growth Strategy rsonal use only Markets are changing however high quality thermal coal will remain in demand in Asia for many decades to come – there remains no economically sustainable substitute for coal in Asia Prices will continue to fluctuate and i
Slide 42: Appendix
ersonal use only APPENDIX NEW HOPE GROUP
Slide 43: Reconciliation of Non-IFRS Financial Information
RECONCILIATION OF NON-IFRS FINANCIAL INFORMATION rsonal use only 12 Months Ended 31 July (A$m) 2015 2014 Net profit / (loss) after tax (21.8) 58.4 Income Tax expense / (benefit) (1.9) 19.9 Petroleum Resource Rent Tax expense / (benefit) (1.0) (7.3) Profit before income tax (24.7) 71.0 Non regular it
Slide 44: Reconciliation of NPAT Before and After Non Regular Items
RECONCILIATION OF NET PROFIT AFTER TAX BEFORE AND AFTER NON REGULAR ITEMS rsonal use only Marketing Treasury Coal Oil and 12 Months Ended 31 July (A$000) and and Total Mining Gas Logistics Investment 2015 Net profit/(loss) after tax (17,858) (42,459) 26,881 11,615 (21,821) Non regular items after ta
Slide 45: Reconciliation of Non-IFRS Financial Information
RECONCILIATION OF NON-IFRS FINANCIAL INFORMATION rsonal use only 12 Months Ended 31 July 2015 2014 Basic earnings per share (cents) (before non regular items) 6.2 5.0 Disposal of investments 0.1 2.0 Impairment of oil assets (4.3) - Impairment of goodwill (0.5) - Impairment of available for sale inve
Slide 46: rsonal use only
ersonal use only Va newhopegroup.com.au