New Hope Corporation Limited · ASX:NHC
New Hope — FY2022 Earnings Presentation
26 slides from New Hope's earnings presentation, Sep 20, 2022
Slide 1: Financial Results Release Full Year 2022
FINANCIAL RESULTS rsonal use only RELEASE FULL YEAR 2022 Presented by Robert Bishop, Rebecca Rinaldi and Dominic O’Brien 20 September 2022
Slide 2: Important Information About This Document
IMPORTANT INFORMATION ABOUT THIS DOCUMENT 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.au rsonal use only Whil
Slide 3: Highlights
HIGHLIGHTS rsonal use only Robert Bishop Chief Executive Officer
Slide 4: Highlights
HIGHLIGHTS NHC Share price3 FULL YEAR DIVIDEND 2022 FINAL DIVIDEND TOTAL SHAREHOLDER rsonal use only 5.50 RETURNS 86.0c 31.0c 5.00 4.50 147% 4.00 3.50 FULL YEAR DIVIDEND 2021 FINAL SPECIAL DIVIDEND 3.00 11.0c 25.0c 2.50 2.00 1.50 1.00 0.50 Underlying EBITDA1 TOTAL TONNES SOLD SAFETY – TRIFR2 (before
Slide 5: Operations and Company Outlook
OPERATIONS rsonal use only AND COMPANY OUTLOOK
Slide 6: Bengalla production increased under New Hope ownership
Bengalla production increased under New Hope ownership… While approvals for New Acland are outstanding, Bengalla represents New Hope’s flagship asset. Distinguished by its high energy, lower emission coal and long-life production with approvals secured until 2039. rsonal use only 6,557 6,320 6,154 6
Slide 7: Demand outstripping supply, with limited supply response expected
Demand outstripping supply, with limited supply response expected… Robust market demand for high- rsonal use only Global Demand vs Supply (by operating status) energy and lower emission thermal 1,200 coal, strengthened by the Russia- Ukraine conflict which has further 1,000 tightened supply. 800 Wit
Slide 8: Pricing at record levels, with demand for higher emission coal more volatile
Pricing at record levels, with demand for higher emission coal (API-5) more volatile Bengalla and New Acland supply high energy coal predominately priced to the gc NEWC index. The lower rsonal use only energy, higher ash coal, priced to the API-5 index remains volatile with pricing between the two p
Slide 9: Global Cost Curve 2030
Global Cost Curve 2030 Even under scenarios of accelerated energy transition which has global demand reducing, both of the Company’s operations remain resilient. The Company is focused on remaining in the lowest quartiles of the global cost curve, maximising shareholder returns. rsonal use only 2030
Slide 10: Positioned for long-term growth
Positioned for long-term growth… New Acland Stage 3 • Environment Authority has been granted by the Department of Environment and Science. On 26 th rsonal use only August the Queensland Minister for Resources, Scott Stewart granted the Mining Leases. • The Company is working closely and productively
Slide 11: Strategy
STRATEGY rsonal use only Safe and efficient production maintaining cost discipline Responsible operator creating long-term shareholder value Positioned for accretive growth and transformation Focused capital allocation, maintaining strong returns 11
Slide 12: Financial Results
FINANCIAL rsonal use only RESULTS Rebecca Rinaldi Chief Financial Officer
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS rsonal use only REALISED PRICE ($AUD) TOTAL REVENUE CASH GENERATED Newcastle Thermal Prices $US/t FROM OPS $282/t $2,558M $1,139M 450.0 400.0 350.0 178% 143% 285% 300.0 250.0 200.0 GOVERNMENT NPAT NET ASSETS 150.0 CONTRIBUTIIONS 100.0 $626M $983M 2,316M 50.0 - 353% 1146% 32% gc
Slide 14: Underlying EBITDA
Underlying EBITDA1 Record Underlying EBITDA¹ achieved with consistent production at Bengalla despite uncontrollable weather events and COVID-19 labour disruptions. Cost performance maintained with minimal inflationary impacts realised. Realised prices increasing each quarter having a direct impact o
Slide 15: Site Costs (A$/Sales t)
Site Costs (A$/Sales t)…focus on protecting cost base A rise in fuel prices increased the underlying cost base by 23%, while the average sales price increased rsonal use only 178% over the same period. We expect inflation to be a headwind into 2023. However, our focus is security of supply and maxim
Slide 16: Underlying EBITDA Margin
Underlying EBITDA1 MARGIN…low-cost operations keeping returns high rsonal use only 281.8 - Energy crisis trend expected to continue into FY23 resulting in 47.0 forecast prices remaining elevated. - While inflationary pressures will 19.6 continue to impact cost base, coupled with elevated pricing, ma
Slide 17: Capital Management aligned to long-term strategy
Capital Management…aligned to long-term strategy The Company has taken significant steps to strengthen its balance sheet, focus on capital opportunities and provide significant fully franked dividends to shareholders. rsonal use only Operational Investment • $27m - Supported sustaining capital and d
Slide 18: Financial Performance
Financial Performance Record earnings and returns since the acquisition of Bengalla (A$ million) Underlying EBITDA1 $m 1,577 2022 2021 % change rsonal use only EBITDA before non regular items 1,577.4 367.2 330% 465 517 290 367 Depreciation and Amortisation (141.1) (149.4) 6% 2018 2019 2020 2021 2022
Slide 19: Responsible Operator
RESPONSIBLE OPERATOR rsonal use only Dominic O’Brien Executive General Manager and Company Secretary
Slide 20: Safety and Wellbeing
Safety and Wellbeing 7 6 Full Year – Total Recordable Injury Frequency 5.89 Frequency Rate 5 5.39 4 rsonal use only Continual improvement of the Company’s safety culture and 3 systems to address physical and wellbeing risks 52% improvement YOY 2.61 2 1 Dec-21 Nov-21 Jun-22 Oct-21 May-22 Jul-22 Sep-2
Slide 21: Attracting, developing and retaining our People
Attracting, developing and retaining our People Code of Conduct and Employee Engagement 2021 rsonal use only • Launch of revised Code of Conduct and new acceptable behaviours policy 13% • Listening to our people through an employee engagement survey Despite a reduced Enterprise Agreement workforce f
Slide 22: Communities - Creating a positive local impact
Communities - Creating a positive local impact rsonal use only Full funding 58 Regional community 550+ $1.6m PCYC Oakey events Local NSW Direct donations Youth Project organisations and sponsorships supported These slides should be read in conjunction with the Annual Financial Report.
Slide 23: Rehabilitation – restoring land to productive use post mining
Rehabilitation – restoring land to productive use post mining rsonal use only • New Hope’s Chuwar Coal Mine in the Ipswich Coal Fields is the first open cut coal mine in Queensland to be fully rehabilitated with the Queensland Government accepting relinquishment of approvals in July 2022. BEFORE • O
Slide 24: Bengalla Scope and Emissions Analysis
Bengalla Scope 1 and 2 Emissions Analysis 2021 Total Emissions (Scope 1 and 2) 2021 Fuel Emissions Emissions and abatement opportunity kt CO2-e kt CO2-e analysis at Bengalla completed rsonal use only Haul Trucks 97 Excavators 31 Continual improvement initiatives provide Total emissions 502 Dozers 25
Slide 25: Our role in the global transition to net-zero by 2050
Our role in the global transition to net-zero by 2050 1200 Thermal Seaborne Coal Exports by Region (Mt): 2022 - 2050, “Australia will continue to be a trusted and 1.5 degrees celsius scenario stable supplier of energy and resources to our rsonal use only 1000 key trading partners” Prime Minister Alb
Slide 26: Thank you
Thank you rsonal use only Contact us Level 16/175 Eagle St Brisbane City QLD 4000 (07) 3418 0500 newhopegroup.com.au ASX code: NHC