Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Shareholder Meeting (October 2022)
34 slides from Whitehaven Coal's shareholder meeting presentation, Oct 26, 2022
Slide 1: 2022 AGM Addresses and CEO Presentation
26 October 2022 For personal use only TO: ASX Market Announcements FROM: Company Secretary SUBJECT: 2022 Annual General Meeting – Addresses and Managing Director and CEO Presentation 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 Annual General Meeting
THE HON. MARK VAILE AO, CHAIRMAN For personal use only ADDRESS TO THE WHITEHAVEN COAL ANNUAL GENERAL MEETING 26 October 2022 Ladies and Gentlemen I would like to acknowledge the Traditional Owners of the land on which we meet, the Gadigal people of the Eora Nation, and pay my respects to their elder
Slide 3: Chairman's address (continued)
is building around the coal industry-funded and government-supported work of Low Emissions Technology Australia (LETA). Whitehaven plays an important role in supporting industry innovation, community development, and economic growth more broadly. Our taxes and royalties to governments both State and
Slide 4: Managing Director & CEO address
PAUL FLYNN, MANAGING DIRECTOR & CEO ADDRESS TO THE WHITEHAVEN COAL For personal use only ANNUAL GENERAL MEETING 26 October 2022 Thank you, Chairman. Welcome everyone to Whitehaven Coal’s Annual General Meeting for 2022. Can I also acknowledge the Traditional Owners of the land on which we meet today
Slide 5: CEO address: record financial results
Adding to inflationary cost impacts has been labour supply constraints due to full employment, minimal immigration and ongoing COVID-induced supply chain disruptions. These challenges will remain an ongoing feature of FY23. And finally, while severe weather events in December impacted Whitehaven, in
Slide 6: CEO address: share price and coal price
Looking at the history of Whitehaven’s share price, there has been a strong correlation with coal price until about two years ago. At that point we started to see a disconnect in the share price and coal price relationship, making Whitehaven shares exceptional value. While we do not expect the curre
Slide 7: CEO address: emissions reduction
We are also investing in R&D options for reducing Scope 1 emissions, which include the difficult-to-abate fugitive emissions from our mining operations. An emerging technology in this space is a process owned by Hydrobe Pty Limited in which Whitehaven is a significant investor. Hydrobe has a world-p
Slide 8: CEO address: Vickery and metallurgical coal
The Vickery development project is now fully approved to produce up to 10 million tonnes ROM per annum of very high quality thermal coal. In order to fully assess the current economics of the project and determine the timing, we are revising earlier capital budgets, refining mine plans and finalisin
Slide 9: Whitehaven Coal October 2022
For personal use only Whitehaven Coal 2022 AGM Presentation 26 October 2022 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 02 8222 1100 | F 02 8222 1101 PO Box R1113, Royal Exchange NSW 1225 whi
Slide 10: Disclosure: forward looking statements
For personal use only Disclosure FORWARD LOOKING STATEMENTS Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Whitehaven Coal Limited, industry g
Slide 11: Exceptionally strong demand
For personal use only Exceptionally strong demand
Slide 12: Premium products delivered into premium markets
For personal use only Premium products delivered into premium markets Europe 1 2 18.8Mt managed FY22 sales volumes 1 3 10 Japan Europe Other 1% 7% 2 6 South Korea Indonesia 5% India 2 2 1 2 Taiwan India - 1 Philippines 10% Japan Malaysia - 1 50% Indonesia 1 1 1 Vietnam Taiwan 13% 2 2 New Caledonia S
Slide 13: Providing energy security for customers
For personal use only Providing energy security for customers We provide a significant proportion of electricity for our key customer countries totalling 36.4 TWh, which is equivalent to ~50% of the total annual electricity consumption in NSW. Contribution to baseload electricity from WHC managed co
Slide 14: Thermal coal prices
For personal use only Thermal coal prices (US$/t)1 Strong demand and tight supply underpinning record thermal coal prices $500 $450 $400 $350 $300 US$ / t $250 $200 $150 $100 $50 $0 Oct-20 Nov-20 Dec-20 Mar-21 Apr-21 May-21 Oct-21 Nov-21 Dec-21 Mar-22 Apr-22 May-22 Oct-22 Nov-22 Dec-22 Aug-20 Sep-20
Slide 15: Metallurgical coal prices
For personal use only Metallurgical coal prices (US$/t)1 Met coal prices have dropped below thermal due to different market dynamics $700 $600 $500 US$ / t $400 $300 $200 $100 $0 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Ja
Slide 16: FY22 impact of coal market dynamics on WHC
For personal use only FY22 impact of coal market dynamics on WHC Record gC NEWC Supply & demand Labour constraints, Weather events prices factors COVID and inflation • Weather events in • Coal prices were well • Strong demand for all fuel • Labour supply constraints December impacted supported prior
Slide 17: Record financial results
For personal use only Record financial results
Slide 18: FY22 ROM coal production and sales
For personal use only FY22 ROM coal production and sales Whitehaven managed ROM coal production (Mt) Whitehaven managed coal sales (Mt) 20.7 20.6 20.2 20.0 19.8 18.8 2.4 2.0 1.2 10.7 12.7 11.2 7.9 9.6 9.6 6.1 4.8 6.2 4.1 4.5 4.6 3.9 3.8 4.0 3.7 3.6 3.3 FY20 FY21 FY22 FY20 FY21 FY22 Open Cuts Narrabr
Slide 19: FY22 financial highlights – a record year
For personal use only FY22 financial highlights – a record year Record coal prices and solid Returning capital production underpin record earnings to shareholders Achieved coal price1 NPAT Final franked dividend2 A$325/t $2.0 billion 40 cents plus interim dividend of 8 cents Revenue Cash generated b
Slide 20: Disciplined approach to capital management
For personal use only Disciplined approach to capital management
Slide 21: Capital allocation framework
For personal use only Capital allocation framework Disciplined capital allocation to build resilience and deliver shareholder value Operating cash flows 1 2 3 ~20%-50% NPAT payout Maintain & optimise Retain cash / maintain Return to shareholders ratio for distributions dividends and operations balan
Slide 22: Disconnect in long-term coal price to share price relationship
For personal use only There’s been a disconnect in the long-term coal price to share price relationship WHC share price highly correlated with gC NEWC coal price EV:EBITDA EV:EBITDA trading ~4 – 7x (as expected of a resource company) trading ~1 - 2x $35.00 $750 $30.00 $650 gC NEWC coal price, A$ WHC
Slide 23: Safe, efficient and sustainable operations
For personal use only Safe, efficient and sustainable operations
Slide 24: Safety is always a key focus for Whitehaven
For personal use only Safe, efficient and sustainable operations Safety is always a key focus for Whitehaven 25 20.0 20 ROM coal production (Mt) 15 and TRIFR Whitehaven recorded 10 a 12 month TRIFR for employees and 5 5.4 contractors of 5.4 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY
Slide 25: Highly engaged people and communities
For personal use only Highly engaged people and communities Approx. 75% 11.8% 15.3% 3% increase in of 2,500-strong of workforce1 identify of our employees are employee engagement workforce1 based in as Aboriginal and/or female, up from 12% in scores to 6.3 out of 10, regional areas Torres Strait Isl
Slide 26: Focused on Scope emissions and TCFD reporting
For personal use only Focused on Scope 1 and 2 • Scope 1 emissions primarily Maules Creek (open cut) and Narrabri fugitive emissions and TCFD reporting emissions, plus diesel consumption – Improved reporting accuracy in FY21 through use of site specific emissions Total reported greenhouse gas emissi
Slide 27: High-CV thermal coal supports emissions reduction
For personal use only Our high-CV thermal coal supports emissions reduction CO2 Emissions per MWh of sent out energy generation by coal fired power plants 1.29 44% lower emissions 0.95 24% lower 0.89 emissions t CO2 / MWh 0.81 0.72 0.65 Whitehaven’s coal currently allows USC power plants in Asia to
Slide 28: We produce the highest quality seaborne coal
For personal use only We produce the highest quality seaborne coal Percentage of thermal coal exports by quality – FY22 In FY22, 89% of Whitehaven’s thermal coal exports were NCV >5600 kcal/kg. 100% 90% kcal/kg NAR1 66% of Australia’s total thermal coal 80% exports were >5600 kcal/kg. >6200 70% This
Slide 29: Our future
For personal use only Our future
Slide 30: Reliable energy is required for the energy transition
For personal use only Reliable energy is required for the energy transition but the supply gap continues… Seaborne supply meets demand only if Highly Probable, Probable and Possible new mines are built 1200 million tonnes Wood Mackenzie forecasts global demand to largely 1000 remain flat to 2030. Ad
Slide 31: Our portfolio of assets presents options to grow
For personal use only Our portfolio of assets presents options to grow Our long life assets are providing high-quality coal and energy security through the transition 2023 2024 2025 2026 2027 2028 2029 2030 2040 Production1 & LOM Werris Current production Werris Creek ~1.5 Mtpa Creek to finish in 20
Slide 32: Asian demand for metallurgical coal remains robust
For personal use only Asian demand for metallurgical coal remains robust over the next three decades Total Asia seaborne demand by country Asia seaborne demand by metallurgical coal type 400 250 million tonnes million tonnes 350 218.3 Malaysia 200 Taiwan 300 Vietnam Indonesia 250 150 South Korea 151
Slide 33: Outlook
For personal use only Outlook Market outlook FY23 focus • Energy security to remain a key priority - likely to take • Further improving safety, several years to rebalance supply and demand environmental and sustainability performance • High-quality, high-CV thermal coal required through the multi-de
Slide 34: For personal use only
For personal use only