Slide 1: Full Year Results FY22
Full Year Results FY22 25 August 2022 Authorised for release by the Board of Whitehaven Coal Limited Investor contact Media contact Kylie FitzGerald Michael van Maanen +61 2 8222 1155, +61 401 895 894 +61 2 8222 1171, +61 412 500 351 kfitzgerald@whitehavencoal.com.au mvanmaanen@whitehavencoal.com.au
Slide 2: Contents and Disclosure
Contents Disclosure FORWARD LOOKING STATEMENTS 1. Whitehaven’s Market 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,
Slide 3: FY22 highlights
FY22 highlights Global energy supply Solid operational Record $3.1b EBITDA $1.0b of taxes shortfall underpinning performance and royalties paid strong demand for high-CV coal despite labour constraints, and $2.0b NPAT or payable for FY221 and record realised coal COVID absenteeism and weather interr
Slide 4: Whitehaven's Market
Whitehaven’s Market
Slide 5: Premium products delivered into premium markets
Premium products delivered into premium markets Europe 1 2 18.8Mt managed FY22 sales volumes Europe Other1 1% 7% 3 10 Japan Indonesia 2 6 Korea 5% India 2 2 1 2 Taiwan India 10% Japan Malaysia - 1 - 1 Philippines 50% 1 1 1 Vietnam Taiwan Indonesia 13% 2 2 New Caledonia Korea 2 14% Metallurgical Coal
Slide 6: We produce the highest quality seaborne coal
We produce the highest quality seaborne coal Percentage of thermal coal exports by quality – FY22 In FY22, 89% of Whitehaven’s thermal coal exports were NCV >5600 kcal/kg. 100% 90% kcal/kg NAR1 66% of Australia’s total thermal coal 80% exports were >5600 kcal/kg. >6200 70% This compares with 68% of
Slide 7: Our high-CV thermal coal supports emissions reduction
Our high-CV thermal coal supports emissions reduction CO2 Emissions per MWh of sent out energy generation by coal fired power plants 1.29 44% lower With carbon emissions reduction emissions efforts a focus for policymakers as well as energy generators and consumers, demand for high-quality, 0.95 24%
Slide 8: Providing energy security for customers
Providing energy security for customers We provide a significant proportion of electricity for our key customer countries totalling 36.4 TWh, which is equivalent to ~50% of the total annual electricity consumption in NSW. Contribution to baseload electricity from WHC managed coal supplied into JKT J
Slide 9: Reliable energy is required for the energy transition but the supply gap continues
Reliable energy is required for the energy transition but the supply gap continues… Seaborne supply meets demand only if Highly Probable, Probable and Possible new mines are built 1200 Million Tonnes Wood Mackenzie forecasts global demand to largely 1000 remain flat to 2030. Advanced Operating econo
Slide 10: And has been intensified by the Ukraine conflict
And has been intensified by the Ukraine conflict Approximately 112Mt of high-CV coal in seaborne markets is under threat by embargoes and restrictions on Russian coal FY22 HCV seaborne exports – by origin Seaborne thermal coal imports from Russia versus ROW from Jul-21 to May-22 Europe and North Asi
Slide 11: Asian demand for metallurgical coal remains robust over the next three decades
Asian demand for metallurgical coal remains robust over the next three decades Total Asia seaborne demand by country Asia seaborne demand by metallurgical coal type 400 250 Million Tonnes Million Tonnes 350 218.3 Malaysia 200 Taiwan 300 Vietnam Indonesia 250 150 South Korea 151.9 Japan 200 China 100
Slide 12: Thermal coal prices (US$/t)
Thermal coal prices (US$/t)1 Strong demand and tight supply underpinning record thermal coal prices $500 $450 $400 Russia invades Events over the past two Ukraine Indonesian years have caused a shift in $350 export ban global trade flows and $300 tightened the supply of all $250 coal products, leadi
Slide 13: Metallurgical coal prices (US$/t)
Metallurgical coal prices (US$/t)1 Met coal prices have dropped below thermal due to different market dynamics $700 $600 A global economic slowdown $500 has reduced steel demand in the near term. $400 Some recovery is expected $300 when EU steel mills re-enter the market following Russian $200 sanct
Slide 14: FY22 impact of coal market dynamics on WHC
FY22 impact of coal market dynamics on WHC Record gC NEWC Supply & demand Labour constraints, Weather events prices factors COVID and inflation • Weather events in • Coal prices were well • Strong demand for all fuel • Labour supply constraints December impacted supported prior to the types but coal
Slide 15: FY22 Results
FY22 Results
Slide 16: Safety performance
Safety performance Safety is always a key focus for Whitehaven 25 20.0 20 ROM coal production (Mt) 15 and TRIFR Whitehaven recorded a 12 month TRIFR for 10 employees and 5.4 contractors of 5 5.4 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 as at 30 June 2022 ROM coal produ
Slide 17: Highly engaged people and communities
Highly engaged people and communities Approx. 75% 10.6% 15.3% 3% increase in of 2,500-strong of employees female employee employee engagement workforce based in identify as Aboriginal participation in our scores to 6.3 out of 10, regional areas and/or Torres Strait workforce up from with participati
Slide 18: FY22 financial highlights – a record year
FY22 financial highlights – a record year Record coal prices and solid Returning capital production underpin record earnings to shareholders Achieved coal price1 NPAT Final franked dividend2 A$325/t $2.0 billion 40 cents to be paid 16 Sep 2022 Revenue Cash generated by operations Total returns to sh
Slide 19: FY22 ROM coal production and sales
FY22 ROM coal production and sales Whitehaven managed ROM coal production (Mt) Whitehaven managed coal sales (Mt) 20.7 20.6 20.2 20.0 19.8 18.8 2.4 2.0 1.2 10.7 12.7 11.2 7.9 9.6 9.6 6.1 6.2 4.1 4.8 4.5 4.6 3.9 3.8 4.0 3.7 3.6 3.3 FY20 FY21 FY22 FY20 FY21 FY22 Open Cuts Narrabri Maules Creek Open Cu
Slide 20: Maules Creek
Maules Creek Impacted by weather events in H1 with a solid recovery in H2 Managed ROM coal production (Mt) • H2 FY22 ROM production 6.3Mt, 29% above H1 of 4.9Mt reflecting a Guidance range flooding event that cut off mine 11.2 11.7 – 12.6Mt access for two weeks in H1 FY22. • FY22 ROM production of 1
Slide 21: Narrabri
Narrabri Scheduled longwall step around successfully completed in July 2022 Managed ROM coal production (Mt) • Improved coal quality in H2 FY22 with ROM production of 2.9Mt, 48% above H1 due to improved conditions in panel LW110A. Guidance range • FY22 ROM production of 4.8Mt, 4.8 5.0 – 5.7Mt 18% ab
Slide 22: Narrabri near term mine plan
Narrabri Near term mine plan returning to shallower ground • The scheduled longwall step around from panel LW110A to LW110B to avoid fault zone commenced mid-June and was successfully completed in July. • Next relocation from panel LW110B to panel LW203 scheduled in Q4 FY23, returning to shallow min
Slide 23: Gunnedah open cuts
Gunnedah open cuts Changes in mine sequencing in H2 offset weather impacts and labour constraints Managed ROM coal production (Mt) • H2 FY22 ROM production 2.5Mt, 62% above H1 reflecting mine sequencing changes in response to wet weather impacts in H1 • FY22 ROM production of 4.0Mt was 4.0 4% above
Slide 24: Financial history
Financial history Record earnings and cash generation Revenue ($m) EBITDA ($m) NPAT ($m) FY22 4,920.1 FY22 3,060.1 FY22 1,952.0 FY21 1,557.0 FY21 204.5 (543.9) FY21 FY20 1,721.6 FY20 306.0 FY20 30.0 FY19 2,487.9 FY19 1,001.2 FY19 527.9 FY18 2,257.4 FY18 1,002.2 FY18 524.5 Cash generated from operati
Slide 25: EBITDA margin
EBITDA margin Driven by strong and enduring global demand for high quality coal FY22 FY21 Coal sales (equity basis, excluding purchased coal) Mt 14.2 14.4 Average revenue (excluding purchased coal & net of royalties) A$/t 300 88 Average cost of sales A$/t 84 74 EBITDA margin on own coal sales A$/t 2
Slide 26: FY22 EBITDA vs FY21
FY22 EBITDA vs FY21 $m (3) 104 (142) (13) FX FY22 FY21 AUD:USD 0.73 0.75 Achieved Prices FY22 FY21 2,908 Thermal (US$/t) 239 68 Metallurgical (US$/t) 232 85 3,060 Overall (A$/t) 325 95 205 FY21 Price (net of royalty) FX Sales Volume Costs Other FY22 26
Slide 27: Strong coal prices achieved in FY22
Strong coal prices achieved in FY22 WHC’s achieved WHC’s thermal coal price premium WHC’s overall achieved thermal coal price (US$/t) / discount to gC NEWC (%) coal price (A$/t) FY22 US$239 -4% FY22 FY22 A$325 FY21 68 -14% FY21 FY21 95 FY20 66 FY20 2% FY20 104 FY19 100 FY19 1% FY19 145 FY18 98 -2% F
Slide 28: FY22 Unit costs $A/t vs FY21
FY22 Unit costs $A/t vs FY21 1 2 2 4 1 84 74 FY21 Yield Diesel Demurrage Impact of flooding Other FY22 Product quality Cyclical / seasonal strategy 28
Slide 29: From $809m net debt to $1.04b net cash in FY22
From $809m net debt to $1.04b net cash in FY22 (177) $m (439)1 (68) 2,530 1,038 (809) 30-Jun-21 Net cash from Investing Returns to Repayments 30-Jun-22 operating activities shareholders & other 29 1. A share trade entered into on 30 June 2022 for $3.6 million was settled and paid on 4 July 2022 brin
Slide 30: Allocation of FY22 cash
Allocation of FY22 cash 100% of surplus cash returned to shareholders $m (177) (774) FY22 capital returns to shareholders: • Up to $550 million for 10% buy-back • 48 cps dividend (interim 8 cps + (552) final 40 cps) 2,530 (19) (999) 1,007 9 Net cash from Net cash used in Debt retirement Income tax a
Slide 31: Uses of $1.04 billion net cash
Uses of $1.04 billion net cash Net cash retained for FY22 income tax and final dividend $m (552) 1,038 (191) (369) (74) Net cash as at 30 June 2022 Income tax accrued in Completion of 10% buyback FY22 final dividend Net cash after income tax respect of FY22 (up to $550m) and capital returns 31
Slide 32: Net cash/debt and liquidity
Net cash/debt and liquidity $m 30 Jun 2022 30 Jun 2021 Net cash outlook Cash on hand 1,215.5 95.2 • Continued strong cash generation Senior secured bank facility (drawn) - (688.0) expected underpinned by demand for high quality coal and tight supply. ECA1 (48.2) (58.0) • Disciplined capital allocati
Slide 33: Capital allocation framework
Capital allocation framework Disciplined capital allocation to build resilience and deliver shareholder value Operating cash flows 1 2 3 ~20%-50% NPAT payout Maintain & optimise Retain cash / maintain Return to shareholders ratio for distributions dividends and operations balance sheet strength Divi
Slide 34: Capital allocation in FY22
Capital allocation in FY22 Capital used to build balance sheet strength and provide returns to shareholders Operating cash flows 1 2 3 51% NPAT payout ratio Maintain & optimise Retain cash / maintain Return to shareholders including $550m buy-back operations balance sheet strength Dividends Buy-back
Slide 35: FY23 Guidance
FY23 Guidance
Slide 36: FY23 guidance
FY23 guidance FY22 FY23 Key elements Comments actual Guidance Managed ROM Coal Production Mt 20.0 20.0 – 22.0 Maules Creek Mt 11.2 11.7 – 12.6 Narrabri Mt 4.8 5.0 – 5.7 Gunnedah Open Cuts Mt 4.0 3.3 – 3.7 Managed Coal Sales Mt 17.6 17.5 – 18.5 Excluding purchased coal Equity Coal Sales Mt 14.2 14.1
Slide 37: Outlook
Outlook Market outlook FY23 focus • Energy security to remain a key priority - likely to take • Further improving safety, several years to rebalance supply and demand environmental and sustainability performance • High-quality, high-CV thermal coal required through the multi-decade transition • Deli
Slide 38: Appendices
Appendices
Slide 39: Gunnedah Basin and expanding to Bowen Basin
Gunnedah Basin and expanding to Bowen Basin Whitehaven is the largest independent producer of high-CV coal in Australia 39
Slide 40: Our portfolio of assets presents options to grow
Our portfolio of assets presents options to grow Our long life assets are providing high-quality coal and energy security through the transition 2023 2024 2025 2026 2027 2028 2029 2030 2040 Production1 & LOM Current production Werris Werris Creek ~1.5 Mtpa Creek to finish in 2024 Current production
Slide 41: Focused on Scope 1 and 2 emissions and TCFD reporting
Focused on Scope 1 and 2 • Scope 1 emissions primarily Maules Creek (open cut) and Narrabri fugitive emissions and TCFD reporting emissions, plus diesel consumption – Improved reporting accuracy in FY21 through use of site specific emissions Total reported greenhouse gas emissions factor for Maules
Slide 42: Greenhouse gas emissions by source
Greenhouse gas emissions by source Our emissions are predominantly fugitive emissions from Narrabri and diesel from Maules Creek Operational emissions by facility and source – based on FY21 data 500,000 Purchased Electricity Other Emissions 11% 1% 450,000 400,000 350,000 From FY22 carbon neutral ele
Slide 43: Profit and Loss
Profit and Loss $m FY22 FY21 Revenue 4,920.1 1,557.0 Other income 7.1 6.8 Operating expenses (764.3) (700.4) Coal purchases (308.0) (173.7) Rail, port, marketing and royalties (746.2) (439.7) Admin and other expenses (including net FX gain/loss) (48.6) (45.5) EBITDA 3,060.1 204.5 Depreciation & amor
Slide 44: Costs
Costs Unit cost calculation The unit cost can be calculated off the face of the P&L. It includes operating FY22 Costs expenses, selling & distribution expenses, administration expenses (net of sundry revenues) and share based payment expenses. Coal purchases, royalties, depreciation & amortisation,
Slide 45: D&A and net finance expense
D&A and net finance expense FY22 FY21 Drivers Depreciation & amortisation $238.9m $260.7m Reflects the impact of 30 June 2021 impairment D&A per tonne (sales of own coal) $17/t $18/t Net finance expense $55.3m $62.0m Commitment fees for undrawn facility Average balance of drawn senior $290m $652m se
Slide 46: FY23 capital expenditure guidance
FY23 capital expenditure guidance FY22 FY23 Key elements Comments actual guidance $10m - $13m environmental & regulatory Open Cuts $m 69 67 - 88 $39m - $46m fleet overhauls $18m - $29m sustaining / productivity $31m - $35m sustaining / productivity $10m - $12m environmental / regulatory Narrabri $m
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