Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — Shareholder Meeting (May 2022)
31 slides from Yancoal Australia's shareholder meeting presentation, May 30, 2022
Slide 1: 2022 Annual General Meeting Address and Presentation
YANCOAL AUSTRALIA LTD ADDRESS: Tower 2, 201 Sussex Street Sydney NSW 2000 PHONE: 61 2 8583 5300 FAX: 61 2 8583 5399 WEBSITE: www.yancoal.com.au 30 MAY 2022 ASX Release: 2022 Annual General Meeting Address and Presentation In accordance with ASX Listing Rule 3.13, this release provides the address to
Slide 2: Yancoal Australia Ltd 2022 Annual General Meeting
Yancoal Australia Ltd 2022 Annual General Meeting 30 1 May 2022
Slide 3: 2022 AGM – Yancoal Australia Ltd
2022 AGM – Yancoal Australia Ltd Mr Gregory Fletcher, Co-Vice Chairman o Independent Non-Executive Director Mr David Moult, Chief Executive Officer 2
Slide 4: 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 5: 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 6: Webcast instructions
Webcast instructions Computershare supported webcast Instructions to access the webcast are available from the Yancoal website: • https://www.yancoal.com.au/page/en/investors/ 5
Slide 7: 2021 Review - Safety Performance
2021 Review - Safety Performance YAL SITES 12mth Rolling TRIFR <IFR 12 • The pandemic response plan limited the impact of COVID-19, but mandated isolation requirements 10 were unavoidable at most sites, affecting crew availability. 8 • Risks posed by the pandemic likely to 6 extend into 2022. 4 •
Slide 8: 2021 Review - Environment, Social and Governance
2021 Review - Environment, Social and Governance • Increased corporate oversight of the management of Aboriginal cultural heritage sites. • Actively investigating emissions reduction opportunities, such as replacing the diesel- powered mining fleet with lower emissions/electric equipment, and the po
Slide 9: 2021 Review - Highlights
2021 Review –Highlights Effective COVID-19 response and sustained safety performance $5.40 billion Revenue 8.2 TRIFR 36.7Mt Attributable Saleable $2.53 billion Operating EBITDA Production & operating margin of 46% Cash position of $1.50 billion at A$67/tonne Operating Cash Cost 31-Dec-2021 A$0.5000/
Slide 10: 2021 Review - Coal market conditions
2021 Review - Coal market conditions Thermal benchmarks (US$/t), Met. coal benchmarks (US$/t), YAL Average thermal coal sale price (US$/t)* YAL Average met. coal sale price (US$/t)* 450 700 GlobalCoal NEWC 6,000kCal, US$/t Platts Low Vol PCI FOB Aust., US$/t 400 Argus / McCloskey API5 5,500kCal, US$
Slide 11: 2021 Review - Operations
2021 Review - Operations Attributable Saleable Production 1 Operating costs and implied margin 2 (Million tonnes) (A$/tonne) Total - Attributable Non-attributable Cash operating costs Royalty Implied operating cash margin 60 160 140 50 13.5 120 16.5 11.8 17.1 63 40 57 100 41 38 30 80 17 13.0 60 20 3
Slide 12: 2021 Review - Revenue and EBITDA
2021 Review - Revenue and EBITDA Revenue and Average realised price EBITDA and Margin (A$ Million) | (A$/tonne) (A$ Million) | (%) Revenue Average realised coal price Operating EBITDA EBITDA Margin 7,000 160 3,000 45% 46% 141 132 140 6,000 2,500 38% 114 36% 111 120 5,000 2,000 100 4,000 82 80 1,500
Slide 13: 2021 Review – Profit and Operating Cashflow
2021 Review – Profit and Operating Cashflow Profit / (Loss) after tax Operating cash flow (A$ Million) (A$ Million) | (%) Profit / (Loss) after tax Operating cash flow 1,000 2,000 852 1,900 791 719 1,747 500 1,548 1,500 229 - 1,000 (500) 605 500 408 (1,000) (1,040) (1,500) - 2017 2018 2019 2020 2021
Slide 14: 2021 Review – Debt and Distributions
2021 Review – Debt and Distributions Annual Net Debt 1 and Gearing Ratio 2 Dividends and Payout Ratio 3 (A$ Million) | (%) (A$ Million) | (%) Net debt, A$ mn Gearing ratio, % Interim Div. Final Div. Special Div. Payout ratio 5,000 1,000 47% 118% 4,500 900 41% 4,000 800 269 35% 3,500 700 29% 3,000 60
Slide 15: 2022 Guidance
2022 Guidance Guidance component 2021 Outcome 2022 Guidance Attributable saleable coal production 36.7 million tonnes 35 to 38 million tonnes Attributable cash operating cost $67/tonne $71 to 76/tonne (excl. government royalties) * Attributable capital expenditure $269 million $600 to 650 million •
Slide 16: Yankuang Energy Potential Transaction
Yankuang Energy Potential Transaction • On Wednesday evening last week, Yancoal’s majority shareholder, Yankuang Energy Group Company Limited, released an announcement indicating it is considering a potential transaction to acquire further Yancoal shares. • At this time, there is no certainty that t
Slide 17: Voting Instructions
Voting Instructions Voting procedure Conducting polls • YELLOW indicates a non- • For each poll please record your voting shareholder vote by placing a mark in the appropriate “for” or “against” box • WHITE indicates a visitor, on your card. also non-voting • The cards will be collected by • BLUE in
Slide 18: Items of business
Items of business Items 1. Financial Statements and Reports 6. General mandate to issue shares 2. Election of Director 7. General mandate to repurchase shares 3. Remuneration Report 8. Extension of the general mandate to 4. Issue of rights issue shares by the number of shares repurchased 5. Reappoin
Slide 19: Question and Answer
Question and Answer Webcast attendee question process • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button 18
Slide 20: Proxy results
Proxy results Valid securities voted: 21.72% Item For Against Open-Usable Abstain 2 286,714,624 99.95% 20,401 0.01% 99,671 0.04% 11,309 n/a 3 286,691,692 99.95% 63,057 0.02% 79,579 0.03% 11,677 n/a 4 286,655,714 99.93% 90,657 0.03% 88,127 0.04% 11,507 n/a 5 286,725,788 99.96% 22,117 0.01% 79,579 0.0
Slide 21: Conduct of Poll
Conduct of Poll Resolutions to be decided by poll 20
Slide 22: Thank you for your participation
Thank you for your participation 21
Slide 23: Yancoal Australia Ltd Annual General Meeting
Yancoal Australia Ltd Annual General Meeting 11:00am (AEST), 9:00am (HKT) on Monday 30 May 2022 The Pavilion, 201 Sussex Street, Sydney, NSW 2000, Australia [SLIDE 2 – 2022 AGM] Welcome to the 2022 Annual General Meeting of Yancoal Australia. My name is Greg Fletcher. I am the Co-Vice Chairman, an I
Slide 24: Chair's address: disclaimer, webcast and 2021 review
Also in attendance is Yancoal’s Chief Executive Officer, David Moult, who will present the 2021 Review. I will now commence today’s proceedings. [SLIDE 3 & 4 – Disclaimer] The commentary provided today includes forward-looking statements. The notices and disclaimers on slides three and four pertain
Slide 25: Address: safety and ESG
organisation limited to the mandatory Government isolation requirements. We remain vigilant to the continued risks posed by the pandemic and broader health and safety issues across all of our sites. Yancoal’s 12-month Total Recordable Injury Frequency Rate remained below the comparable industry aver
Slide 26: Address: Slide 10 - Operations
in response to the current market conditions. Restrictions on mining permits and approvals, as well as on funding sources, means there is almost no latent capacity on stand-by. The prospect of coal prices remaining elevated throughout 2022 is increasing. [SLIDE 10 - Operations] Yancoal delivered 36.
Slide 27: Address: dividends and 2022 guidance
118%. Yancoal has returned $1.85 billion to shareholders since 2018, including $930 million in 2021. [SLIDE 14 – 2022 Guidance] Yancoal started 2022 at, or close to, its water storage capacity levels at most of its mines. Exceptional rainfall in the first few months of the year – which exceed even t
Slide 28: Address: attendance cards and items of business
Anyone attending in person today will have been issued an attendance card: - Yellow indicates a non-voting shareholder; - Blue indicates a voting shareholder or proxy holder for the Yancoal Australia Annual General Meeting; and - White indicates a non-voting visitor Persons holding either a blue or
Slide 29: Address: Items 2 to 4
Item 2 is the Election of a Director. There is one person nominated to be elected as a Non- Executive Director; the biographical details are contained in the Notice of Meeting. Item 3 is the Remuneration Report. The Remuneration Report is contained within the 2021 Annual Report. I will take the repo
Slide 30: Address: questions and proxy results
We will now take questions from shareholders on any matters relevant to the business of the meeting. Both the questions and the responses will be repeated in Mandarin for the benefit of Hong Kong Stock Exchange shareholders. Would any speakers from the floor please raise their hand and state their n
Slide 31: Address: poll closing and meeting close
If you have a query concerning any of the polls, please raise your hand, and a member from Computershare will assist you. [Allow the appropriate time for cards to be filled in] I now declare the poll closed. I will ask Computershare to collect the voting cards at the end of the meeting. The results