Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — H1 2018 Earnings Presentation
36 slides from Yancoal Australia's earnings presentation, Aug 15, 2018
Slide 1: Australia's Largest Pure-Play Coal Producer
For personal use only Australia’s Largest Pure-Play Coal Producer AUGUST 2018
Slide 2: Disclaimer
Disclaimer For personal use only The information contained herein has been prepared by representatives of Yancoal Australia Ltd (the “Company”) and does not constitute any recommendation or form the basis for any investment decisions regarding the securities of the Company. You must, and must cause
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) For personal use only You should note that this presentation contains pro forma historical and forecast financial information. The pro forma and forecast financial information, and the historical information, provided in this presentation is for illustrative purposes only and is
Slide 4: Table of Contents
Table of Contents For personal use only Section 1: Introduction Section 2: Key Investment Highlights Section 3: Operations Overview Section 4: 1H CY18 Results Update Section 5: Coal Market Outlook Appendix: Asset Overviews 4
Slide 5: Section 1: Introduction
For personal use only Section 1: Introduction
Slide 6: Company Overview
Company Overview Major Shareholders (Pre-IPO) Share Price Performance – Last 2 Years (Adjusted)(1) Capitalisation For personal use only AUD Announced Exchange Listing ASX 0.40 Repayment of acquisition of C&A Other US$450MM of from Rio Tinto Lucion 5% 0.35 senior debt Share Price (A$/sh)(1) 0.135 6%
Slide 7: History and Key Milestones
History and Key Milestones For personal use only Yancoal acquired Yancoal merged with Yancoal Yancoal Yancoal acquired Revenue 100% of Felix Gloucester Coal (ASX:GCL), acquired a completed the a further 28.898% AUD MM Resources which owned Middlemount 1% interest acquisition of Coal in Warkworth Sal
Slide 8: Coal & Allied Acquisition Recap
Coal & Allied Acquisition Recap Transformational acquisition by Yancoal, creating Australia’s largest pure-play coal producer For personal use only Coal & • Yancoal successfully completed the acquisition of Coal & Allied from Rio Tinto in September 2017 Allied Acquisition – Total consideration of US
Slide 9: Section 2: Key Investment Highlights
For personal use only Section 2: Key Investment Highlights
Slide 10: Key Investment Highlights
Key Investment Highlights For personal use only 1 Australia’s largest pure-play coal producer with a seaborne business focused on major Asian export markets including the PRC 2 Diversified portfolio of world class assets that produce high value coal products for the major export markets 3 Sustai
Slide 11: Australia's Largest Pure-Play Coal Producer
Australia’s Largest Pure-Play Coal Producer 1 2 3 4 5 Australia’s largest pure-play coal producer with a seaborne business focused on major Asian export For personal use only markets Largest Pure-Play Coal Producer in Australia by CY17 Marketable Production and Reserves CY17 Marketable Production in
Slide 12: Diversified Portfolio of High Value Coal Products
Diversified Portfolio of High Value Coal Products 1 2 3 4 5 Diversified portfolio of world class assets that produce high value coal products for key major export For personal use only markets Diversified Portfolio of World Class Assets in Australia Darwin Abbot Point South Bowen Pacific Ocean NT Ma
Slide 13: Sustainable Platform For Future Growth
Sustainable Platform For Future Growth 1 2 3 4 5 Large, high quality reserve and resource base supports future growth opportunities For personal use only Various Brownfield and Greenfield Opportunities Available • Large, high quality reserve and resource base, providing Yancoal with a sustainable as
Slide 14: Experienced Management Team
Experienced Management Team 1 2 3 4 5 Management team consists of executives with deep experience in the coal sector and the financial For personal use only sector, with track record of success Baocai Zhang, Chair of the Board Fucun Wang, Chair of the Executive Committee • Chair of the Board since J
Slide 15: Strong Relationships With Key Stakeholders
Strong Relationships With Key Stakeholders 1 2 3 4 5 Valuable and strategic operational and trade relationships formed, as well as strong support from key For personal use only shareholders Operational Partners Trade Relationships Key Shareholders Operational Partners • Key operational partner and s
Slide 16: Section 3: Operations Overview
For personal use only Section 3: Operations Overview
Slide 17: Organisational Structure
Organisational Structure For personal use only Other Shareholders Yanzhou Management Agreement Yancoal International The Company (Holding) Co. Management Agreement Watagan Mining Company Pty Ltd 100% Mines Coal Export Terminals 100% Asset Asset Asset Ownership Asset Ownership Hunter Valley Austar Ca
Slide 18: Yancoal Asset Summary
Yancoal Asset Summary For personal use only Hunter Valley Mount Thorley Moolarben Stratford Duralie Yarrabee Middlemount Operations (5) Warkworth Location NSW NSW NSW NSW QLD QLD Glencore Sojitz Peabody 49.0% Other 10.0% ~50.0% Yancoal Yancoal 17.1% 100.0% 100.0% Ownership Yancoal 82.9% Korean Yanco
Slide 19: Safety and Environmental Management
Safety and Environmental Management Yancoal’s Health, Safety and Environment Committee is chaired and led by members of the Yancoal For personal use only Board, providing external oversight of the Company’s operating and reporting standards Each mine implements proactive Total seeding and planti
Slide 20: Section 4: 1H CY18 Results Update
For personal use only Section 4: 1H CY18 Results Update
Slide 21: 1H CY18 Results Update
1H CY18 Results Update Yancoal’s transformational acquisition of 100% of C&A from Rio Tinto drove immediate production and For personal use only financial gains Profit Result (A$MM) Half-Year Ended June 2018 Half-Year Ended June 2017 Year Ended December 2017 Year Ended December 2016 Revenue from Con
Slide 22: Sound Financial Position and Performance
Sound Financial Position and Performance For personal use only Revenue Operating EBITDA Profit / (Loss) before Tax AUD MM AUD MM AUD MM 4,000 1,200 600 539 988 980 400 311 3,000 2,601 900 2,347 200 2,000 600 1,238 0 832 277 2016 2017 1H2017 1H2018 1,000 300 172 (200) (18) 0 0 (400) (312) 2016 2017 1
Slide 23: Sound Financial Position and Performance (Cont'd)
Sound Financial Position and Performance (Cont’d) For personal use only Operating EBITDA Margin Profit / (Loss) before Tax Margin Profit / (Loss) after Tax Margin 45.0% 41.8% 36.0% 24.0% 38.0% 23.0% 15.4% 36.0% 33.3% 24.0% 16.0% 12.0% 8.8% 12.0% 8.0% 27.0% 0.0% 0.0% 18.0% 13.9% 2016 2017 1H2017 1H20
Slide 24: Production Costs Breakdown
Production Costs Breakdown For personal use only Comparison of Production Costs Breakdowns Production Costs(1) Half-Year Ended Half-Year Ended Year Ended Year Ended Breakdown (A$MM) June 2018 June 2017 December 2017 December 2016 100% Raw Materials and (337) (109) (349) (187) Consumables Used 80% Em
Slide 25: Section 5: Coal Market Outlook
For personal use only Section 5: Coal Market Outlook
Slide 26: Historical and Estimated Coal Price
Historical and Estimated Coal Price For personal use only Historical and Estimated Thermal Coal Prices(1), US$/t 120 Forecast 100 80 60 40 2014 2015 2016 2017 2018 2019 2020 Newc Thermal Contract 6,322kcal/kg GAR Newc Thermal 6,000 Spot Newc Thermal 5,500 Spot Historical and Estimated Metallurgical
Slide 27: Appendix: Asset Overviews
For personal use only Appendix: Asset Overviews
Slide 28: Hunter Valley Operations
Yancoal Hunter Valley Operations Owned & Operate Mines Other JV Interests Watagan Mines For personal use only Key Metrics Marketable Coal Production (Mt) (100% basis) (3) Production (Mt) Location New South Wales, Australia 8 Mine Type Open Cut 6 Year of Initial Operation 1949 Ownership (%) 51.0% 4 M
Slide 29: Mount Thorley Warkworth
Yancoal Mount Thorley Warkworth Owned & Operate Mines Other JV Interests Watagan Mines For personal use only Key Metrics Marketable Coal Production (Mt) (100% basis) (3) Production (Mt) Location New South Wales, Australia 8 Mine Type Open Cut 6 Year of Initial Operation 1981 Ownership (%) 82.9% 4 Me
Slide 30: Moolarben
Yancoal Moolarben Owned & Operate Mines Other JV Interests Watagan Mines For personal use only Key Metrics Marketable Coal Production (Mt) (100% basis) (3) Production (Mt) Location New South Wales, Australia 21 Mine Type Open Cut and Underground Year of Initial Operation 2010 14 12.4 9.3 8.8 Full Ye
Slide 31: Stratford Duralie (Gloucester)
Yancoal Stratford Duralie (Gloucester) Owned & Operate Mines Other JV Interests Watagan Mines For personal use only Key Metrics Marketable Coal Production (Mt) (100% basis) (3) Production (Mt) Location New South Wales, Australia 1.5 1.4 Mine Type Open Cut Year of Initial Operation 1995 1.0 0.9 0.7 0
Slide 32: Yarrabee
Yancoal Yarrabee Owned & Operate Mines Other JV Interests Watagan Mines For personal use only Key Metrics Marketable Coal Production (Mt) (100% basis) (3) Production (Mt) Location Queensland, Australia 4.0 3.1 Mine Type Open Cut 2.8 2.9 Year of Initial Operation 1994 Full Year Data 2.0 1.2 1.3 1.3 1
Slide 33: Middlemount
Yancoal Middlemount Owned & Operate Mines Other JV Interests Watagan Mines For personal use only Key Metrics Marketable Coal Production (Mt) (100% basis) (3) Production (Mt) Location Queensland, Australia 6.0 Mine Type Open Cut 4.1 4.1 3.9 4.0 Year of Initial Operation 2011 Full Year Data Ownership
Slide 34: Ashton
Yancoal Ashton Owned & Operate Mines Other JV Interests Watagan Mines For personal use only Key Metrics Marketable Coal Production (Mt) (100% basis) (3) Production (Mt) Location New South Wales, Australia 2.0 Mine Type Underground and Potential Open Cut 1.4 Year of Initial Operation 2005 1.2 1.1 Own
Slide 35: Austar
Yancoal Austar Owned & Operate Mines Other JV Interests Watagan Mines For personal use only Key Metrics Marketable Coal Production (Mt) (100% basis) (3) Production (Mt) Location New South Wales, Australia 2.0 1.9 Mine Type Underground Year of Initial Operation 1916 1.1 0.9 Full Year Data Ownership (
Slide 36: Donaldson
Yancoal Donaldson Owned & Operate Mines Other JV Interests Watagan Mines For personal use only Key Metrics Marketable Coal Production (Mt) (100% basis) (3) Production (Mt) Location New South Wales, Australia 2.0 Mine Type Underground Year of Initial Operation 2006 1.3 Ownership (%) 100%(2) 1.0 Full