Yanzhou Coal Mining Company Limited. Annual Results 2009 and First Quarterly Results April 2010

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Roberta Benson
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1 Annual Results 2009 and First Quarterly Results 2010 April

2 Part I Results Review 2009 Part II Results Review 1Q2010 Part III Part IV Part V Acquisition of Felix Resources Market Analysis Operating Strategies 2

3 Part I Results Review 2009 Results Overview Financial Information Coal Business Operation of Major Subsidiaries 3

4 Results Overview 1. Coal business ( 000 tonnes) 2. Coal chemical business ( 000 tonnes ) Production volume of saleable coal Sales volume of saleable coal Methanol production Methanol sales volume Change (%) 35,768 35, ,017 37, , Net sales (RMB m) 19, , Net income (RMB m) 4, , EPS (RMB)

5 Financial Information As at 31 December 2009 Unit: RMB m, RMB/share Unit: RMB m, RMB/share As at 31 December 2008 Change (%) Cash at bank and on hand 11, , Notes receivable& accounts receivable 4, , Intangible assets 18, , , Goodwill 1, Bank loan 22, , Total assets 62, , Shareholders equity 29, , Net asset value per share

6 Coal Business - Production and Sales Volumes Production volume of saleable coal Sales volume of saleable coal Unit: 000 tonnes Unit: 000 tonnes Unit: 000 tonnes Unit: 000 tonnes 35,515 35,768 32,840 33, ,562 38,017 32,402 33, ,577 2,058 1,105 1,002 1,570 1,605 1, ,484 1, Total The Headquaters Shanxi Neng Hua Yancoal Australia Heze Neng Hua Total The Headquarters Shanxi Neng Hua Yancoal Australia Coal purchased from other companies Heze Neng Hua 6

7 Coal Business - Coal Price (Net) Unit: RMB/tonne Unit: RMB/tonne Y-o-Y Change Change (%) 4Q Q Q Q 2009 The Headquarters Domestic Overseas Shanxi Neng Hua Yancoal Australia , Heze Neng Hua

8 Coal Business - Cost of Coal Cost of coal sold for each business entity Unit: RMB/tonne Unit: RMB/tonne Change Change(%) The Headquarters Shanxi Neng Hua Yancoal Australia Major factors affecting the changes of cost of coal Major Factors Decrease in land subsidence and ground attachment compensation fees payable Change in Amount (RMB) Strengthened cost management and decrease in cost of materials Increase in staff remuneration Increase in fixed assets and the change of residual values

9 Operation of Major Subsidiaries Unit: RMB m Unit: RMB m Company Equity Interests Projects Net Income Yancoal Australia 100% Austar Coal Mine Hua Ju Energy 95.14% Shanxi Neng Hua 100% Electrical power and heat businesses Tianchi Coal Mine 100,000 tonnes methanol Yulin Neng Hua 100% 600,000 tonnes methanol Heze Neng Hua 96.67% Yushuwan Coal Mine Company Ordos Neng Hua 100% Zhaolou Coal Mine Wanfu Coal Mine % Yushuwan Coal Mine 600,000 tonnes methanol and development of the coal resources 9

10 Part II Results Review 1Q 2010 Results Review Coal Price Cost of Coal Sold 10

11 Results Review Under PRC CASs Under PRC CASs Production volume of saleable coal ( 000 tonnes) Sales volume of saleable coal ( 000 tonnes) 1Q Q 2009 Change (%) 10,424 8, ,393 7, Methanol production ( 000 tonnes) 131 Methanol sales volume ( 000 tonnes) 130 Revenue (RMB m) 7, , Net profit (RMB m) 2, EPS (RMB)

12 Coal Price RMB/tonne RMB/tonne The Headquarters 1Q Q Q 2009 Q-o-Q Change(%) As compared with 4Q Shanxi Neng Hua Heze Neng Hua Yancoal Australia ,

13 Cost of Coal Sold Under PRC CASs Under PRC CASs Unit: RMB/tonne Unit: RMB/tonne Company 1Q Q 2009 Change Change (%) The Headquarters Shanxi Neng Hua Heze Neng Hua Yancoal Australia

14 Part III Acquisition of Felix Resources The Transaction Company Overview Major Coal Mines Production Plan 14

15 The Transaction Acquisition method: Scheme of arrangement - Yanzhou Coal s wholly-owned subsidiary, Austar Coal Mine Pty Limited, acquired 100% equity interest in Felix in cash Consideration: AUD16.95 per share, total consideration amounted to approximately AUD3,333 million Source of funding: Bank borrowings Transaction date: 23 December

16 Company Overview Quality coal assets Proven & probable Coal reserve reserves Attributable ( million tonnes) (million tonnes) interest Attributable Attributable Total amount Total amount I. 3 operating coalmines Yarrabee open-cut Coal Mine 100% Minerva open-cut Coal Mine 51% Ashton Coal Mine 60% II. 1 coalmine under construction Moolarben Coal Mine (Open-cut and underground) 80% III. 3 exploration projects Athena undergound Coal Mine 51% Harry-brandt open-cut Coal Mine 100% 96.0 Wilpeena open-cut Coal Mine 100% 27.2 Total 2, , An equity interest of 15.4% in the third coal port in Newcastle Ultra clean coal technology 16

17 Major Coalmines Yarrabee Minerva Ashton Moolarben Format Open-cut Open-cut Open-cut and underground Open-cut and underground Type of coal PCI coal: 90% Thermal coal: 10% Low ash thermal coal Semi-soft coking coal: 85% Low ash thermal coal: 15% Low ash thermal coal Annual production capacity of raw coal (million tonnes) Preparation capacity (million tonnes) Markets of sales Asia, Europe, U.S. 2.6 Asia Asia 16.0 Open-cut: 12.0 Underground: Asia, Australia 17

18 Production Plan Million tonnes 20 Production plan of saleable coal for Felix Resource Limited Saleable Coal Attributable production volume 18

19 Part IV Market Analysis Coal Market Analysis Domestic Coal Market Analysis International Coal Market Analysis Domestic Methanol Market Analysis 19

20 Domestic Coal Market Analysis (I) 2009 domestic coal market overview Supply and demand relationship: eased to tense Coal price kept increasing since Sep Change Raw coal production 2,950 2, % Salable coal sales 2,631 2, % Export % Import % Year-end national coal inventory (Early 2009) -8.78% Shanxi Quality Mixed Coal Price in Qinhuangdao (2009) RMB Unit: m tonne Unit: m tonne RMB /5 3/5 5/5 7/5 9/5 11/5 20

21 Domestic Coal Market Analysis (II) 2010 domestic coal market outlook Relatively tight demand and supply relationship Stable coal price Favorable macro-economy Coal Price Railway transportation bottleneck Consolidation of coal resources Anticipated inflation 21

22 International Coal Market Analysis (I) 2009 international coal market overview Balanced supply and demand relationship Million tonnes Major exporting countries Major importing countries Australia Indonesia China Japan Korea India YoY (%) 5.14% -3.93% Net export of 5.19 million tonnes Coal price bottom out and rebound 90 The Australia BJ Spot Price of Thermal Coal in % 2.75% 18.47% USD/ tonne Mar: USD 61.5/ tonne 31 Dec: USD 83.25/ tonne 60 1/1 2/22 4/15 6/6 7/28 9/18 11/9 12/31 22

23 International Coal Market Analysis (II) 2010 international coal market outlook Relatively tight supply and demand relationship Increasing international coal price Contracted coal price: USD/ tonnes USD/ tonnes April to June Growth Hard coking coal % Semi-soft coking coal % Thermal coal % 23

24 Domestic Methanol Market Analysis (I) 2009 domestic methanol market overview Production and sales voumes of domestic 000 tonnes methanol 18,000 12,000 Domestic menthanol price in 2009 RMB/ tonne 2,500 2,480 2,250 2,000 6, Production volume Consumption volume 1,750 1,770 1,500 Jan Mar May Jul Sep Nov 24

25 Domestic Methanol Market Analysis (II) Production capacity exceeding demand Difficult to have a substantial increase in methanol price 2010 domestic methanol market outlook Methanol market to remain stable with the accelerated implementation of adjustment and revitalization of the chemical industry and the austerity measures in coal chemical industry in the PRC 25

26 Part V Operating Strategies Sales Plan in 2010 Operating Strategies 26

27 Coal Sales Contracts Signed in 2010 Coal sales contracts and letters of intent signed amounted to million tonnes The Headquarters contract amount Contract Volume ( Million tonnes) Change (%) Price (RMB/tonne) Change (%) Key contracts Yancoal Australia contract amount 8.12 April-June 1.92 US$ Coal sales target of the Group is million tonnes in

28 Operating Strategies Proactively and steadily promoting the development and establishment of external projects Strengthening capital operation and continuing to search for new project acquisition opportunities Improving operation management and implementing effective cost control Enhancing internal control system for regulating operations 28

29 Conclusion A decrease in 2009 results Tight demand and supply for coal in domestic and overseas markets in 2010 Felix Resources Limited will become the new growth driver Net profit in 1H 2010 will achieve a year-on-year increase of over 100% 29

30 Thank you 30

FISCAL YEAR MARCH 2018 FIRST HALF FINANCIAL RESULTS

FISCAL YEAR MARCH 2018 FIRST HALF FINANCIAL RESULTS PRESENTATION OUTLINE Highlights Fiscal Year March 2018 First Half Results Fiscal Year March 2018 Full Year Forecast Progress of Key Initiatives/ Business