Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — Shareholder Meeting (May 2023)
32 slides from Yancoal Australia's shareholder meeting presentation, May 31, 2023
Slide 1: 2023 Annual General Meeting Address and Presentation
YANCOAL AUSTRALIA LTD ADDRESS: Tower 2, 201 Sussex Street Sydney NSW 2000 PHONE: 61 2 8583 5300 FAX: 61 2 8583 5399 WEBSITE: www.yancoal.com.au 31 MAY 2023 ASX Release: 2023 Annual General Meeting Address and Presentation In accordance with ASX Listing Rule 3.13, this release provides the address to
Slide 2: Yancoal Australia Ltd 2023 Annual General Meeting
Yancoal Australia Ltd 2023 Annual General Meeting 31 May 2023 1
Slide 3: 2023 AGM – Yancoal Australia Ltd
2023 AGM – Yancoal Australia Ltd Mr Gregory Fletcher, Co-Vice Chairman o Independent Non-Executive Director o Chair of the Audit and Risk Management Committee Ms Helen Gilles, Independent Non-Executive Director o Chair of the Nomination and Remuneration Committee Mr David Moult, Chief Executiv
Slide 4: Important Notice and Disclaimer
Important Notice and Disclaimer Acceptance - This presentation is issued by Yancoal Australia Limited ABN 82 111 859 119 (“Yancoal”). By accepting, accessing or reviewing this presentation, you acknowledge and agree to the terms set out in this Important Notice and Disclaimer. Summary of information
Slide 5: Important Notice and Disclaimer (Continued)
Important Notice and Disclaimer (Continued) Reserves and Resources Reporting - In this presentation, references to mineral resources (“Resources”) and ore reserves (“Reserves”) for Yancoal are compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserv
Slide 6: Webcast instructions
Webcast instructions Computershare supported webcast Instructions to access the webcast are available from the Yancoal website: • https://www.yancoal.com.au/page/en/investors/ 5
Slide 7: 2022 Review - Safety Performance
2022 Review - Safety Performance YAL Sites 12 month rolling TRIFR and LTIFR • Continued to implement COVID-19 12 response measures that proved effective in minimising risk to the 10 workforce and disruption to operations. 8 • TRIFR rate uptick in mid-2022 served as a reminder that constant attention
Slide 8: 2022 Review - Environment, Social and Governance (ESG)
2022 Review - Environment, Social and Governance (ESG) • Commenced development of an enterprise sustainability strategy. • Investigating enhanced systems and processes for the management of ESG data, and measurement and tracking of our performance. • Exploring opportunities in the renewable energy s
Slide 9: 2022 Review - Key Numbers: Record Revenue, EBITDA and Margin
2022 Review - Key Numbers: Record Revenue, EBITDA and Margin 4% improvement in TRIFR rate to $10.5 billion Revenue 8.1 in 2022 95% increase on 2021 performance 50.5Mt ROM production (100%) Record $7.0 billion Operating EBITDA 38.9Mt Saleable production (100%) & EBITDA margin of 65% 29.4Mt Saleable p
Slide 10: 2022 Review - Coal market conditions
2022 Review - Coal market conditions Thermal indices (US$/t), Met. coal indices (US$/t), YAL Average thermal coal sale price (US$/t)* YAL Average met. coal sale price (US$/t)* 700 500 Platts Low Vol PCI FOB Aust., US$/t GlobalCOAL NEWC 6,000kCal, US$/t Platts Semi-Soft FOB Aust., US$/t 450 Argus / M
Slide 11: 2022 Review - Operations
2022 Review - Operations Attributable Saleable Production 1 Operating costs and implied margin 2 (Million tonnes) (A$/tonne) Total - Attributable Non-attributable Implied operating cash margin Royalty Cash operating costs 60 400 350 50 13.5 300 16.5 11.8 17.1 40 250 251 9.5 30 200 150 20 57 63 33 10
Slide 12: 2022 Review - Operations
2022 Review - Operations Rainfall and ROM coal production Rainfall and ROM coal production (mm per year, Million tonnes) (mm per year, Million tonnes) 1400 25 1400 25 1200 1200 20 20 1000 1000 15 15 800 800 600 600 10 10 400 400 5 5 200 200 0 0 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2018 2019 2
Slide 13: 2022 Review - Revenue and EBITDA
2022 Review - Revenue and EBITDA Revenue and Average realised price EBITDA and Margin (A$ Million) | (A$/tonne) (A$ Million) | (%) Revenue Average realised coal price Operating EBITDA EBITDA Margin 378 65% 45% 46% 36% 141 132 21% 111 82 4,850 4,459 3,473 5,404 10,548 2,180 1,654 748 2,531 6,959 2018
Slide 14: 2022 Review – Profit and Operating Cashflow
2022 Review – Profit and Operating Cashflow Profit / (Loss) after tax Operating cash flow (A$ Million) (A$ Million) Profit / (Loss) after tax Operating cash flow 4,000 7,000 3,586 6,528 6,000 3,000 5,000 2,000 4,000 1,000 852 791 719 3,000 - 1,900 2,000 1,747 1,548 (1,000) 1,000 605 (1,040) (2,000)
Slide 15: 2022 Review – Debt and Distributions
2022 Review – Debt and Distributions Annual Net Debt 1 and Gearing Ratio 2 Dividends and Payout Ratio 3 (A$ Million) | (%) (A$ Million) | (%) Net debt Net gearing, % Interim Div. Final Div. Special Div. Payout ratio 4,000 1,800 118% 41% 1,600 3,000 35% 1,400 2,000 29% 1,200 924 1,000 24% 1,000 60% 3
Slide 16: 2023 Outlook
2023 Outlook Operating component 2023 Expectation Attributable saleable coal production 31-36 million tonnes Attributable cash operating cost $92/tonne to $102/tonne (excl. government royalties) * with operating cash costs in the first half of the year higher than in the second half $750-$900 millio
Slide 17: Voting Instructions
Voting Instructions Voting procedure Conducting polls • YELLOW indicates a non- • For each poll please record your voting shareholder vote by placing a mark in the appropriate “for” or “against” box • WHITE indicates a visitor, on your card. also non-voting • The cards will be collected by • BLUE in
Slide 18: Items of business
Items of business Items 1. Financial Statements and 5. Reappointment of Auditor and Reports authorisation to fix Auditor’s remuneration 2. Election and Re-election Directors 6. General mandate to issue shares 3. Adoption of Remuneration Report 7. General mandate to repurchase 4. Issue of STIP Rights
Slide 19: Question and Answer
Question and Answer How to ask a question • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button 18
Slide 20: Proxy results
Proxy results Valid securities voted: 16.76% Item For Against Open-Usable Abstain 2A 214,833,260 97.05% 5,940,569 2.68% 597,514 0.27% 70,476 n/a 2B 205,324,134 92.76% 15,431,418 6.97% 616,445 0.27% 69,822 n/a 2C 219,357,068 99.10% 1,403,081 0.63% 599,814 0.27% 81,857 n/a 2D 219,060,275 98.96% 1,675,
Slide 21: Conduct of Poll
Conduct of Poll Resolutions to be decided by poll 20
Slide 22: Thank you for your participation
Thank you for your participation Thank you for your participation 21
Slide 23: Yancoal Australia Ltd Annual General Meeting
Yancoal Australia Ltd Annual General Meeting 11:00am (AEST), 9:00am (HKT) on Wednesday 31 May 2023 The Pavilion, 201 Sussex Street, Sydney, NSW 2000, Australia [SLIDE 2 – 2023 AGM] Welcome to the 2023 Annual General Meeting of Yancoal Australia. My name is Greg Fletcher. I am the Co-Vice Chairman, a
Slide 24: Welcome to the 2023 Annual General Meeting
Mr Huang is also nominated as a replacement on the Yancoal Board and has extensive leadership experience. Mr Huang joined Yankuang Energy in 1999 and has held several senior roles; in 2021 he became the Secretary of the Board and subsequently a Director of Yankuang Energy. Also in attendance is Yanc
Slide 25: Safety performance
[SLIDE 6 – Safety performance] Shareholders, members of the Board, ladies and gentlemen, good morning, and thank you for attending today’s Annual General Meeting. While we are pleased that Yancoal achieved record results in 2022, keeping our workforce safe is always our primary objective. The ongoin
Slide 26: Coal market conditions
[SLIDE 9 – Coal market conditions] Looking at the coal markets, the heavy rainfall and pandemic disruptions were obvious factors contributing to supply shortfalls and tight market conditions. In 2022, our average realised thermal coal price was A$372 per tonne, compared to A$134 per tonne in 2021. S
Slide 27: Revenue and EBITDA
impact was relatively modest, because as mentioned we had the ability to deplete mining inventory. Unlike past La Niña weather cycles that typically last for one year there was limited respite from the rain over the past three years. The cumulative impact on production became more pronounced each ye
Slide 28: Debt and distributions / 2023 operational expectations
Yancoal has said in the past it aims to balance sustaining capital expenditure, debt reduction, distributions to shareholders and growth initiatives. Over the past eighteen months the Board has utilised the remarkable cashflow to meet this aim. Yancoal is in an extremely robust financial position an
Slide 29: Voting and meeting procedures
Persons holding either a blue or yellow card are entitled to speak at this meeting. However, only those persons holding a blue card are entitled to vote at this meeting. If any shareholder here is eligible to vote and does not have a blue coloured card, would you please raise your hand now. [wait fo
Slide 30: Items of business
nominated to be elected as Non-Executive Directors; the biographical details are contained in the Explanatory Notes to the Notice of Meeting. Item 3 is the Adoption of the Remuneration Report. The Remuneration Report is contained within the 2022 Annual Report. I will take the report as read. This vo
Slide 31: Q&A Session
[SLIDE 18 – Q&A Session] We will now take questions from shareholders on any matters relevant to the business of the meeting. Both the questions and the responses will be repeated in Mandarin for the benefit of Hong Kong Stock Exchange shareholders. We will begin with questions submitted in writing,
Slide 32: Poll and meeting close
If a proxy holder has been directed to vote in a particular manner, then the proxy holder will be deemed to have voted per those directions by completing the voting card. In respect of any open votes a proxy holder may be entitled to cast, you need to mark a box beside the motion to indicate how you