Yancoal Australia Ltd. · ASX:YAL
Yancoal Australia — FY2021 Earnings Presentation
27 slides from Yancoal Australia's earnings presentation, Mar 1, 2022
Slide 1: Full Year Financial Result 2021 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 28 February 2022 ASX Release: Full Year Financial Result 2021 Presentation Authorised for lodgement by the Yancoal Disclosure Committee Investor
Slide 2: 2021 Full-year Financial Result
Yancoal Australia Ltd 2021 Full-year Financial Result 28 1 February 2022
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: Record Revenue and EBITDA in 2021
Record Revenue and EBITDA in 2021 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$67/tonne Operating Cash Cost 31-Dec-2021
Slide 6: Safety Performance
Safety Performance YAL SITES 12mth Rolling TRIFR <IFR 12 • The pandemic response plan limited the impact of COVID-19, but mandated isolation requirements 10 were unavoidable at most sites, affecting crew availability. 8 • Risks posed by the pandemic likely to 6 extend into 2022. 4 • The Group’s TR
Slide 7: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG) • Increased corporate oversight of the management of Aboriginal cultural heritage sites. • Actively investigating emissions reduction opportunities, such as replacing the diesel-powered mining fleet with lower emissions/electric equipment, and the potential f
Slide 8: Yancoal Overview
Yancoal Overview Map of Yancoal operations Milestones in Yancoal’s growth 18 years of growth through prudent acquisitions 7 * Managed, not owned, by Yancoal
Slide 9: Yancoal operations summary
Yancoal operations summary Mount Thorley Hunter Valley Moolarben Warkworth Operations Yarrabee Middlemount Ashton Stratford-Duralie (MTW) (HVO) Operator Yancoal Yancoal Joint Venture Yancoal Joint Venture Yancoal Yancoal Economic interest 95% 83% 51% 100% ~50% 100% 100% Employees & Contractors ~780
Slide 10: Key Result Drivers
Key Result Drivers Operating factors 2021 2020 Change Observations Average realised sales price 141 82 72% Strong prices and higher proportion of met. coal (A$/t) Attributable production 36.7 38.2 (4%) Impacted by rain events and COVID-19 disruptions (million tonnes) Attributable sales 37.5 37.9 (1%
Slide 11: Coal market conditions
Coal market conditions • Average realised thermal coal price of A$134/t was up • Average realised metallurgical coal price of A$180/t was 76% from 2020 as supply constraints saw international up 45% from 2020, as steel sector activity persisted indices rally to record levels in October. despite coal
Slide 12: Product mix and sales volume split
Product mix and sales volume split • The metallurgical sales proportion recovered in 2021 on 2021 2020 % Change the back of steel industry activity and customer requirements. Thermal coal A$/t 134 76 76% price achieved • Yancoal continued to diversify its customer base. Metallurgical coal A$/t 180 1
Slide 13: ROM Coal Production impacted by uncontrollable events
ROM Coal Production impacted by uncontrollable events ROM Production by Asset (100% basis)* (Million tonnes) • Total ROM mined (100% basis) during the Moolarben MTW HVO period was 63.2Mt, a decrease of 7% from Yarrabee Stratford Duralie Middlemount 2020 after the combination of the pandemic Ashton 8
Slide 14: Saleable Coal Production
Saleable Coal Production Attributable Saleable Production by Asset * (Million tonnes) • Despite a hard rock intrusion at the Moolarben underground, wet weather, and COVID-19 Moolarben MTW HVO issues, attributable saleable coal production of Yarrabee Stratford Duralie Ashton 36.7 million tonnes was o
Slide 15: Unit costs fluctuate on uncontrollable elements
Unit costs fluctuate on uncontrollable elements Cash operating costs (per production tonne) (A$/tonne) • Cash operating costs, A$67/tonne, increased due to several factors including diesel price, Cash operating costs Royalty Implied operating cash margin demurrage costs, and reduced output.* 160 • T
Slide 16: Financial Summary – Record Revenue and EBITDA results
Financial Summary – Record Revenue and EBITDA results Income Statement 2021 2020 Change Observations ($ millions) Revenue * 5,404 3,473 1,931 Higher coal prices Operating EBITDA 2,530 748 1,782 Coal price more than offset the unit cost increase Operating EBIT 1,699 (56) 1,755 Replicates the revenue
Slide 17: Record Prices, Revenue and EBITDA
Record Prices, 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 18: Operating EBITDA Drivers
Operating EBITDA Drivers Components of Operating EBITDA change from 2020 to 2021 (A$ Million) • The influence of the rising benchmark coal prices, and Yancoal’s realised coal price is apparent in the Operating EBITDA component chart. • The AUD:USD exchange rate did not counter the coal price strengt
Slide 19: 1H 2021 Net loss erased by 2H performance
1H 2021 Net loss erased by 2H performance 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 2017 20
Slide 20: Improved Fiscal Position
Improved Fiscal Position Cashflow and 2021 2020 Change Observations Balance Sheet Operating cash flow 1,900 605 214% Rebound is consistent with EBITDA ($ million) Cash at end of period 1,495 637 135% Dividend to be paid from cash ($ million) Gearing ratio 24% 41% - Gearing reduction returns to sub-3
Slide 21: Debt and Gearing
Debt and Gearing Annual Net Debt* and Gearing Ratio** (A$ Million) | (%) • Debt and gearing levels reduced during Net debt, A$ mn Gearing ratio, % 2021, as a result of a US$500 million early debt repayment in October and cash 5,000 47% accumulation from the record operating 4,500 cash flow. 41% 4,00
Slide 22: Distributions to Shareholders
Distributions to Shareholders Dividends and Payout Ratio* (A$ Million) | (%) Interim Div. Final Div. Special Div. Payout ratio • $930 million is allocated to pay dividends for 2021; with $0.5000 per 1,000 118% share (unfranked) as a final dividend 900 and A$0.2040 per share (unfranked) 800 269 as a
Slide 23: Outlook for 2022
Outlook for 2022 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 24: The Investment case
The Investment case Three low-cost, large-scale assets underpin the business The capability to blend and wash coal products to maximise the market opportunity Diverse customer base that continues to demonstrate appetite for Yancoal product Capacity for rapid cash accumulation, changes in net
Slide 25: Appendices
Appendices G@ vancoat
Slide 26: 4Q and 2021 Production and Sales data for all sites
4Q and 2021 Production and Sales data for all sites ROM COAL PRODUCTION, Mine Economic 4Q 3Q 4Q 12 months year-to-date type Interest Change Change Notes: Mt (100% basis) 2021 2021 2020 2021 2020 Change OC / Moolarben 95% 5.0 5.3 (6%) 5.0 -% 20.4 21.7 (6%) • Attributable figures UG MTW OC 82.9% 4.4 4
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