Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Shareholder Meeting (October 2015)
35 slides from Whitehaven Coal's shareholder meeting presentation, Oct 30, 2015
Slide 1: ASX cover letter for Chairman's Address and MD Presentation
30 October 2015 For personal use only The Manager, Listings Australian Securities Exchange Company Announcements Office Dear Sir, Via ASX Online We attach copies of the Chairman’s Address and Managing Director’s Presentation which will be delivered at the Company’s Annual General Meeting being held
Slide 2: Chairman's Address
For personal use only 30 OCTOBER 2015 WHITEHAVEN COAL 2015 AGM – CHAIRMAN’S ADDRESS Despite difficult external market conditions, Whitehaven Coal can look back on the year as one of strong progress and achievement. We have delivered significant operational and financial achievements. As a result, th
Slide 3: Chairman's Address (continued)
For personal use only 30 OCTOBER 2015 The full year net loss after tax was $342.7 million, which included an after tax significant item loss of $332.0 million. Significant items included the de-recognition of deferred tax balances resulting from the enactment of legislation repealing the MRRT and so
Slide 4: Board and governance
For personal use only 30 OCTOBER 2015 Board and governance Rick Gazzard retired as a non-executive director, in July 2015. The Board would like to thank Rick for his significant contribution to the Company during the three years he served as a Director and wish him well in his retirement. During his
Slide 5: Whitehaven Coal Annual General Meeting 2015
For personal use only Whitehaven Coal Limited ANNUAL GENERAL MEETING 2015 SYDNEY, AUSTRALIA 30 OCTOBER 2015
Slide 6: Disclosure
Disclosure For personal use only 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 GROWTH OR OTHER TREND PROJEC
Slide 7: Agenda
Agenda For personal use only Financial and operating performance in FY2015 Environment and community credentials Strategy Our growth markets and coal quality Whitehaven’s growth Key priorities for the year ahead 3 // 2015 AGM PRESENTATION
Slide 8: Our goal
Our goal For personal use only To become Australia’s leading independent coal company 4 // 2015 AGM PRESENTATION
Slide 9: Financial and operating performance
For personal use only Financial and operating performance 5 // 2015 AGM PRESENTATION
Slide 10: Year of delivery
Year of delivery For personal use only ACHIEVED ALL TARGETS SET OUT AT THE 2014 AGM 6 // 2015 AGM PRESENTATION
Slide 11: Safety performance
Safety performance For personal use only IMPROVING SAFETY OUTCOMES LEADS TO BETTER OPERATING PERFORMANCE Whitehaven and NSW Coal Industry TRIFR 25 – Introduction of Whitehaven’s “Safehaven Rules” in early 2014 is 20 delivering improved safety performance 15 10 – The TRIFR fell by 35% in FY2015 to Sa
Slide 12: Coal sales in FY2015
Coal sales in FY2015 For personal use only STRATEGICALLY ALIGNED TO PREMIUM PAN-ASIAN MARKETS Thermal Coal Sales 3% – Over 82% of thermal coal sold into premium Asian 9% Japan markets 3% 3% Korea 39% 5% Taiwan – Sales mix 84% thermal and 16% metallurgical coal SE Asia for FY2015 Sth America Other Ch
Slide 13: Financial summary
Financial summary For personal use only PROFITABLE IN THE SECOND HALF EXCLUDING SIGNIFICANT ITEMS Financial Performance - A$ millions H2 FY2015 H1 FY2015 FY2015 FY2014 Revenue 391.5 371.8 763.3 755.4 Operating EBITDA before significant items 78.2 52.1 130.3 90.4 Net profit / (loss) after tax, before
Slide 14: Significant items
Significant items For personal use only NON CASH IMPACT ON THE RESULT There are three major non-cash significant items included in the full year results MRRT de-recognition $90.7m pre tax – The impairment was taken with the first half results following the enactment of legislation by the Australia
Slide 15: Balance sheet at year end
Balance sheet at year end For personal use only CONSERVATIVELY GEARED WITH PATHWAY TO DELEVER 30 Jun 2015 30 Jun 2014 $’m $’m – The new $1.4 billion finance facility arranged in March comprises a Cash on hand 102.4 103.2 combination of term loan, revolver and guarantee facilities maturing July Senio
Slide 16: Maules Creek construction completed
Maules Creek construction completed For personal use only MINE OPERATING COMMERCIALLY FROM 1 JULY 2015 – Construction completed with final project costs to be in the order of $720m to $740m – Operating at 6.0Mtpa increasing to 8.5Mtpa by December 2015 – Costs expected to be <A$62/t in FY2016 – ROM p
Slide 17: Narrabri - #1 LW mine in Australia
Narrabri - #1 LW mine in Australia For personal use only HIGHLY PRODUCTIVE LOW COST UNDERGROUND MINE WITH MORE GROWTH POTENTIAL – Record ROM and saleable coal production in FY2015 of 7.7Mt and Narrabri Managed Saleable Coal Production 7.2Mt respectively (000's t) 8,000 – Record development of 19,800
Slide 18: Environment & community credentials
For personal use only Environment & community credentials 14 //2015 AGM PRESENTATION
Slide 19: Sustainability, environment and people
Sustainability, environment and people For personal use only CORE STRATEGY INTEGRATING HEALTH, SAFETY, ENVIRONMENT SOCIAL AND ECONOMIC CONTRIBUTION 15 //2015 AGM PRESENTATION
Slide 20: Aboriginal engagement
Aboriginal engagement For personal use only WHITEHAVEN ENSURING BENEFITS FLOWING FROM OUR OPERATIONS ACCRUE TO THE ENTIRE COMMUNITY IN THE REGION – Reconciliation Action Plan (RAP) launched in early September – The development of our RAP is built on our values of : Respect, Integrity, Commitment and
Slide 21: Strategy – the path ahead
For personal use only Strategy – the path ahead 17 //2015 AGM PRESENTATION
Slide 22: Strategic framework
Strategic framework For personal use only HOW WHITEHAVEN WILL MEET ITS GOAL 18 //2015 AGM PRESENTATION
Slide 23: Growth markets and quality
For personal use only Growth markets and quality 19 //2015 AGM PRESENTATION
Slide 24: SE Asia primary energy demand
SE Asia primary energy demand For personal use only COAL’S SHARE OF THE ENERGY MIX WILL EXCEED ALL OTHER SOURCES BY 2040 – Coal demand more than triples in the period to 2040 growing at 4.6% per year on average – Coal’s lower price relative to other fuels and the need to provide electricity to the 1
Slide 25: Growing coal fired generating capacity
Growing coal fired generating capacity For personal use only STRONG LONG TERM GROWTH IN SEVERAL SE ASIAN COUNTRIES – All Southeast Asian countries are adding electricity generating capacity IEA Forecast Coal Fired Electricity Capacity (GW) and Coal Required (Mt) 600 – SE Asia is one of the few regio
Slide 26: High quality coal underpins Asian emission reductions
High quality coal underpins Asian emission reductions For personal use only efficiency 35% CO2 =100 5.39 Mt – Power station efficiency drives subcritical carbon emissions efficiency 40% CO2 =87 4.70 Mt – Utilising USC or AUSC technology supercritical reduces emissions by up to 40% efficiency 43% CO2
Slide 27: Whitehaven redefining Asian coal quality
Whitehaven redefining Asian coal quality For personal use only Thermal Coal - Ash vs Sulphur Ash (% a.d,) High Quality Coal 20.0 18.0 16.0 14.0 12.0 10.0 8.0 0.20 – Whitehaven produces some of 0.30 the highest quality coals sold in Whitehaven the Asian region 0.40 Premium Hunter 0.50 – As countries
Slide 28: Case study - Narrabri
Case study - Narrabri For personal use only IF JAPAN’S COAL FIRED GENERATING EFFICIENCY WAS ADOPTED ELSEWHERE2, CARBON DIOXIDE EMISSIONS WOULD BE REDUCED BY 1.5BT/Y1 – In FY2015, 39% of Whitehaven’s thermal coal was sold in Japan, increasing as Maules Creek coal is sold into Japan – The state of the
Slide 29: Production growth
For personal use only Production growth 25 //2015 AGM PRESENTATION
Slide 30: Capital deployed for growth path
Capital deployed for growth path For personal use only ONGOING GROWTH FROM LOW COST HIGH MARGIN COAL Saleable Coal Production by Mine (Mt) 30.0 – Strong production growth to continue 25.0 Forecast as Maules Creek ramps up to full production in FY2019 20.0 – Saleable coal production for FY2016 15.0 l
Slide 31: Vickery – Whitehaven's next project
Vickery – Whitehaven’s next project For personal use only ANOTHER SIGNIFICANT GROWTH OPTION Approval granted by the NSW Government in September 2014 for a 4.5Mtpa open cut mine Location – About 25kms north of Gunnedah Reserves – Open cut Reserves of 200Mt Ownership – Whitehaven 100%, Seeking to form
Slide 32: Key priorities for FY2016
Key priorities for FY2016 For personal use only Continue to improve safety performance Return company to profitability Take more costs out of the business Add cash to the balance sheet and begin deleveraging the company How priorities will be achieved Continue ramp up of Maules Creek and o
Slide 33: Thank you
For personal use only THANK YOU www.whitehavencoal.com.au
Slide 34: Appendices
For personal use only Appendices 30 //2015 AGM PRESENTATION
Slide 35: Reserves
Reserves For personal use only WHITEHAVEN COAL LIMITED - COAL RESERVES - AUGUST 2015 Recoverable Reserves Marketable Reserves Competent Report Tenement Proved Probable Total Proved Probable Total Person Date Vickery Opencut CL316/EL4699/EL7407 – 200 200 – 178 178 1 Mar-15 Rocglen Opencut M L1620 3.8