Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — FY2022 Earnings Presentation
31 slides from Yancoal Australia's earnings presentation, Feb 28, 2023
Slide 1: 2022 Financial Result Presentation
YANCOAL AUSTRALIA LTD ADDRESS: Level 18, Tower 2, 201 Sussex Street, Sydney NSW 2000 PHONE: 61 2 8583 5300 FAX: 61 2 8583 5399 WEBSITE: www.yancoal.com.au 27 February 2023 ASX Release: 2022 Financial Result Presentation Authorised for lodgement by Yancoal Disclosure Committee Investor Relations Cont
Slide 2: Yancoal Australia 2022 Financial Result
Yancoal Australia 2022 Financial Result 27 February 2023 Yancoal Australia Ltd Investor Relations Contact: Brendan Fitzpatrick, GM Investor Relations - Brendan.Fitzpatrick@yancoal.com Level 18, Tower 2, 201 Sussex Street, Media Relations Contact: Matthew Gerber, GM Corporate Affairs - Matthew.Gerber
Slide 3: 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 4: 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 5: 2022 Key Numbers: Record Revenue, EBITDA and Margin
2022 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 $7.0 billion Operating EBITDA 38.9Mt Saleable production (100%) & EBITDA margin of 65% 29.4Mt Saleable production
Slide 6: Safety Performance
Safety Performance YAL Sites 12 month rolling TRIFR and LTIFR • Continued to implement COVID-19 12 response measures that proved effective in minimising risk to the 10 workforce and disruption to operations. 8 • TRIFR rate uptick in mid-2022 served as a reminder that constant attention is 6 required
Slide 7: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG) • Commenced development of an enterprise sustainability strategy. • Investigating enhanced systems and processes for the management of ESG data, and measurement and tracking of our performance. • Exploring opportunities in the renewable energy sector and dive
Slide 8: 2022 Operational Performance
2022 Operational Performance Operating factors 2022 2021 Change Observations ROM coal production, (Mt) 50.5 63.2 (20%) Heavy rain events disrupting operations and coal transport logistics, ongoing global disruption to supply Saleable coal production, (Mt) 38.9 48.5 (20%) chains and workforce availab
Slide 9: Coal Market Conditions
Coal Market Conditions Met. coal benchmarks & YAL Average met. coal sale price (US$/t)* • Ongoing rain disruptions and international 700 pandemic disruptions compounded the structural supply coal shortfall issues 600 resulting from challenges in gaining mining 500 permits, environmental licenses and
Slide 10: Coal Market Conditions
Coal Market Conditions Thermal benchmarks & YAL Average thermal coal sale price (US$/t)* • According to the International Energy Agency, 500 the global coal demand increased by 1.2% in 450 2022 and exceeded 8 billion tonnes. 400 • Australia's exports should gradually improve if 350 heavy rain associ
Slide 11: Product Mix and Sales Volume Split
Product Mix and Sales Volume Split 2022 Final destination for coal sales managed by Yancoal Marketing* • Responded to market conditions in 2022, and further Other, 1% Other, 0% Sth America, 2% diversified its customer base. Market conditions Sth America, 1% Vietnam, 4% Vietnam, 6% allowed high-ash p
Slide 12: ROM Coal Production
ROM Coal Production ROM Production by Asset (100% basis)* (Million tonnes) • Total ROM mined (100% basis) was Moolarben MTW HVO 50.5Mt, a decrease of 20% from 2021 Yarrabee Ashton Stratford Duralie Middlemount after the combined impacts of wet 80 weather delays, COVID-19 disruptions, 66.6 69.0 68.1
Slide 13: Saleable Coal Production
Saleable Coal Production Attributable Saleable Production by Asset * • Saleable coal production was prioritised to (Million tonnes) Moolarben MTW HVO Yarrabee Ashton Stratford Duralie capture maximum benefit from the Non-attributable elevated coal prices. 60 • In 2023, mining inventory needs rebuild
Slide 14: Cash Operating Costs
Cash Operating Costs Cash operating costs (per product tonne) (A$/tonne) • Increase in cash operating costs to A$94/tonne was a result of: Raw materials Employee benefits Transportation Contracting – lower production volumes, Other 100 – advancing mine parameters, 3 – the production recovery program
Slide 15: Operating Cash Margin
Operating Cash Margin Operating cash margin components (per product tonne) • To limit impact of external inflation factors, focus on cost control was unwavering. (A$/tonne) Implied operating cash margin Royalty Cash operating costs • State royalties tripled to $33/tonne, due to 400 higher realised c
Slide 16: NSW Coal Reservation Directions
NSW Coal Reservation Directions • Yancoal is compelled to provide up to 310,000 tonnes per quarter for five quarters. • Sales are subject to a price cap of A$125/tonne delivered for 5,500 kcal/kg products, energy-adjusted. • No compensation for difference between market price and price cap. • Direct
Slide 17: 2023 Operational Expectations
2023 Operational expectations Operating component 2023 Expectation As mining inventory rebuilds and productivity rates improve over coming quarters, production Attributable saleable coal levels should increase towards the levels experienced in prior years. production 2023 attributable saleable produ
Slide 18: 2022 Financial Performance
2022 Financial Performance Income Statement 2022 2021 Change Observations ($ millions) Revenue ^ 10,548 5,404 5,144 Higher coal prices in effect Operating EBITDA 6,959 2,531 4,428 Coal price more than off-set the unit cost increase Operating EBIT 6,125 1,700 4,425 Replicates the revenue impact at th
Slide 19: Record Prices, Revenue and EBITDA
Record Prices, Revenue and EBITDA Revenue and Average realised price Operating EBITDA and Margin (A$ Million) | (A$/tonne) (A$ Million) | (%) Revenue Average realised coal price Operating EBITDA EBITDA Margin 378 65% 45% 46% 36% 141 132 111 21% 82 4,850 4,459 3,473 5,404 10,548 2,180 1,654 748 2,531
Slide 20: Profit and Operating Cashflow up sharply from prior periods
Profit and Operating Cashflow up sharply from prior periods 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
Slide 21: Debt and Gearing
Debt and Gearing Annual Net Debt* and Gearing Ratio** (A$ Million) | (%) • Repaid US$2.26 billion of debt ahead of schedule. Combined with US$0.5 billion Net debt Net gearing, % repaid in late 2021 finance cost savings in 4,000 41% 2023 will be $294 million. 3,000 35% • Net cash position and effecti
Slide 22: Dividend
Dividend Dividends and Payout Ratio (A$ Million) | (%) • 2022 Final dividend allocation is $924 Interim Div. Final Div. Special Div. Payout ratio million, A$0.70/share (fully franked). 1,800 118% • The ~A$1.23/share Total dividend for 1,600 2022 is a 20% dividend yield on the 31- 1,400 Dec-22 share
Slide 23: Appendices and Additional Information
Appendices and Additional Information 22
Slide 24: Executive Leadership Team
Executive Leadership Team 23
Slide 25: Yancoal Overview
Yancoal Overview Map of Yancoal operations Milestones in Yancoal’s growth 18 years of growth through prudent acquisitions 24 * Managed, not owned, by Yancoal
Slide 26: Yancoal Operations Summary
Yancoal operations summary • An interest in 7 producing coal mines and operates 2 mines on management contracts. • Total annual production across the 9 mines is about 70 million tonnes of ROM coal and 55 million tonnes of Saleable coal, and nearly all the saleable coal enters the export market. Moun
Slide 27: Stratford Renewable Energy Hub
Stratford Renewable Energy Hub • Renewable energy hub could provide an excellent opportunity for the beneficial re-use of land and support the energy market transition. • Feasibility study is underway, and concept remains subject to permitting requirements and relevant approval processes. • Central
Slide 28: The Largest Coal Focused Company on the ASX
The largest coal focused company on the ASX • In 2022, the total Australian saleable thermal coal production is ~207Mt. Yancoal’s equity attributable thermal coal production is about 12% of the national total. * • Attributable coal production is the third largest, after BHP and Glencore. • Three lar
Slide 29: Yancoal Market Capitalisation and Daily Turnover
Yancoal market capitalisation and daily turnover A$/sh ASX - A$/sh and Shares traded ADT mn • 1.32 billion shares for an approximate market 7.50 10.00 capitalisation of A$7.5 billion. 7.00 9.00 6.50 8.00 • 83% of shares held on ASX and 17% of shares held 6.00 7.00 on HKEx. 5.50 6.00 5.00 5.00 • Shar
Slide 30: Dual Listed on ASX and HKEx
Dual listed on ASX and HKEx – shares fully fungible Summary share register 12 Month Share price activity 8.00 45.00 Shareholders * Shares % of IC 7.00 40.00 6.00 35.00 Yankuang Energy 822,157,715 62.3 30.00 5.00 HKD/Share A$/share 25.00 Cinda International 181,474,887 13.7 4.00 20.00 3.00 Directors
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