Whitehaven Coal Limited · ASX:WHC
Whitehaven Coal — Shareholder Meeting (October 2015)
31 slides from Whitehaven Coal's shareholder meeting presentation, Oct 30, 2015
Slide 1: Whitehaven Coal Limited Annual General Meeting 2015
Whitehaven Coal Limited ANNUAL GENERAL MEETING 2015 SYDNEY, AUSTRALIA 30 OCTOBER 2015
Slide 2: Disclosure
Disclosure 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 PROJECTIONS AND ANY ESTIMATE
Slide 3: Agenda
Agenda 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 4: Our goal
Our goal To become Australia’s leading independent coal company 4 // 2015 AGM PRESENTATION
Slide 5: Financial and operating performance
Financial and operating performance 5 // 2015 AGM PRESENTATION
Slide 6: Year of delivery
Year of delivery ACHIEVED ALL TARGETS SET OUT AT THE 2014 AGM 6 // 2015 AGM PRESENTATION
Slide 7: Safety performance
Safety performance 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 Safehaven Rules end the
Slide 8: Coal sales in FY2015
Coal sales in FY2015 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 China – Overall thermal
Slide 9: Financial summary
Financial summary 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 significant items 1.7
Slide 10: Significant items
Significant items 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 Australian Government to repeal
Slide 11: Balance sheet at year end
Balance sheet at year end 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 Senior secured bank facilit
Slide 12: Maules Creek construction completed
Maules Creek construction completed 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 production guidance for
Slide 13: Narrabri - #1 LW mine in Australia
Narrabri - #1 LW mine in Australia 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 metres in FY2015 and
Slide 14: Environment & community credentials
Environment & community credentials 14 //2015 AGM PRESENTATION
Slide 15: Sustainability, environment and people
Sustainability, environment and people CORE STRATEGY INTEGRATING HEALTH, SAFETY, ENVIRONMENT SOCIAL AND ECONOMIC CONTRIBUTION 15 //2015 AGM PRESENTATION
Slide 16: Aboriginal engagement
Aboriginal engagement 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 Teamwork – A number o
Slide 17: Strategy – the path ahead
Strategy – the path ahead 17 //2015 AGM PRESENTATION
Slide 18: Strategic framework
Strategic framework HOW WHITEHAVEN WILL MEET ITS GOAL 18 //2015 AGM PRESENTATION
Slide 19: Growth markets and quality
Growth markets and quality 19 //2015 AGM PRESENTATION
Slide 20: SE Asia primary energy demand
SE Asia primary energy demand 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 120 million people in t
Slide 21: Growing coal fired generating capacity
Growing coal fired generating capacity 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 regions of the 500 world wh
Slide 22: High quality coal underpins Asian emission reductions
High quality coal underpins Asian emission reductions 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 =81 4.35 Mt – The tec
Slide 23: Whitehaven redefining Asian coal quality
Whitehaven redefining Asian coal quality 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 strive to reduce Valle
Slide 24: Case study - Narrabri
Case study - Narrabri 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 art Isogo power stati
Slide 25: Production growth
Production growth 25 //2015 AGM PRESENTATION
Slide 26: Capital deployed for growth path
Capital deployed for growth path 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 likely to be in the ran
Slide 27: Vickery – Whitehaven’s next project
Vickery – Whitehaven’s next project 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 a JV (may sell up to
Slide 28: Key priorities for FY2016
Key priorities for FY2016 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 optimise Narrabri for 4
Slide 29: Thank you
THANK YOU www.whitehavencoal.com.au
Slide 30: Appendices
Appendices 30 //2015 AGM PRESENTATION
Slide 31: Reserves
Reserves 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 0.9 4.6 2.9 0.7 3.5 1