Annual Results 2009 and First Quarterly Results 2010 April 2010 1
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
Part I Results Review 2009 Results Overview Financial Information Coal Business Operation of Major Subsidiaries 3
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 2009 2008 Change (%) 35,768 35,515 0.71 38,017 37,562 1.21 199 21 847.62 190 16 1,087.50 3. Net sales (RMB m) 19,850.1 24,394.4-18.63 4. Net income (RMB m) 4,117.3 6,488.9-36.55 5. EPS (RMB) 0.84 1.32-36.55 4
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 11,739.1 9,593.0 22.4 Notes receivable& accounts receivable 4,723.9 2,977.3 58.66 Intangible assets 18,866.7 1,039.7 1,714.61 Goodwill 1,305.3 298.7 337.08 Bank loan 22,509.8 258.0 8,624.73 Total assets 62,432.6 32,338.6 93.06 Shareholders equity 29,151.8 26,755.1 8.96 Net asset value per share 5.93 5.44 8.96 5
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 33,130 2008 2009 37,562 38,017 32,402 33,330 2008 2009 2,577 2,058 1,105 1,002 1,570 1,605 1,099 986 1,484 1,627 0 31 0 16 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
Coal Business - Coal Price (Net) Unit: RMB/tonne Unit: RMB/tonne 2009 2008 Y-o-Y Change Change (%) 4Q 2009 3Q 2009 2Q 2009 1Q 2009 The Headquarters 503.98 627.67-123.69-19.71 521.11 519.16 481.65 492.66 Domestic 503.76 628.20-124.44-19.81 521.14 519.16 481.58 491.58 Overseas 594.35 569.47 24.88 4.37 455.30 505.04 650.49 Shanxi Neng Hua 288.90 267.64 21.26 7.94 319.16 255.17 300.59 238.73 Yancoal Australia 668.21 1,029.25-361.04-35.08 527.28 626.93 763.35 996.64 Heze Neng Hua 519.63 7
Coal Business - Cost of Coal Cost of coal sold for each business entity Unit: RMB/tonne Unit: RMB/tonne 2009 2008 Change Change(%) The Headquarters 248.12 274.36-26.24-9.56 Shanxi Neng Hua 249.18 218.13 31.05 14.23 Yancoal Australia 392.41 432.10-39.69-9.19 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) -47.96 Strengthened cost management and decrease in cost of materials -5.89 Increase in staff remuneration +14.71 Increase in fixed assets and the change of residual values +9.54 8
Operation of Major Subsidiaries Unit: RMB m Unit: RMB m Company Equity Interests Projects Net Income Yancoal Australia 100% Austar Coal Mine 247.2 Hua Ju Energy 95.14% Shanxi Neng Hua 100% Electrical power and heat businesses Tianchi Coal Mine 100,000 tonnes methanol 133.6-148.6 Yulin Neng Hua 100% 600,000 tonnes methanol -266.7 Heze Neng Hua 96.67% Yushuwan Coal Mine Company Ordos Neng Hua 100% Zhaolou Coal Mine Wanfu Coal Mine -119.2 41% Yushuwan Coal Mine 600,000 tonnes methanol and development of the coal resources 9
Part II Results Review 1Q 2010 Results Review Coal Price Cost of Coal Sold 10
Results Review Under PRC CASs Under PRC CASs Production volume of saleable coal ( 000 tonnes) Sales volume of saleable coal ( 000 tonnes) 1Q 2010 1Q 2009 Change (%) 10,424 8,070 29.17 10,393 7,915 31.31 Methanol production ( 000 tonnes) 131 Methanol sales volume ( 000 tonnes) 130 Revenue (RMB m) 7,031.8 4,431.6 58.67 Net profit (RMB m) 2,100.5 722.3 190.78 EPS (RMB) 0.43 0.15 190.78 11
Coal Price RMB/tonne RMB/tonne The Headquarters 1Q 2010 1Q 2009 4Q 2009 Q-o-Q Change(%) As compared with 4Q 2009 623.72 515.85 541.40 20.91 15.21 Shanxi Neng Hua 373.80 242.37 323.57 54.42 15.52 Heze Neng Hua 752.44 528.48 42.38 Yancoal Australia 589.27 1,050.38 616.41-43.90-4.40 12
Cost of Coal Sold Under PRC CASs Under PRC CASs Unit: RMB/tonne Unit: RMB/tonne Company 1Q 2010 1Q 2009 Change Change (%) The Headquarters 264.50 269.48-4.98-1.85 Shanxi Neng Hua 247.14 319.93-72.79-22.75 Heze Neng Hua 654.51 Yancoal Australia 418.73 565.87-147.14-26.00 13
Part III Acquisition of Felix Resources The Transaction Company Overview Major Coal Mines Production Plan 14
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 2009 15
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 658.3 446.8 156.3 17.3 Yarrabee open-cut Coal Mine 100% 146.5 146.5 39.1 39.1 Minerva open-cut Coal Mine 51% 74.6 38.0 25.2 12.9 Ashton Coal Mine 60% 437.2 262.3 92.0 55.3 II. 1 coalmine under construction Moolarben Coal Mine (Open-cut and underground) 80% 706.4 565.1 356.8 285.4 III. 3 exploration projects - 683.2 285.6 Athena undergound Coal Mine 51% 560.0 285.6 Harry-brandt open-cut Coal Mine 100% 96.0 Wilpeena open-cut Coal Mine 100% 27.2 Total 2,047.9 1,297.5 513.1 302.7 An equity interest of 15.4% in the third coal port in Newcastle Ultra clean coal technology 16
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) 1.8 2.5 Markets of sales Asia, Europe, U.S. 2.6 Asia 5.6 5.4 Asia 16.0 Open-cut: 12.0 Underground: 4.0 12.0 Asia, Australia 17
Production Plan Million tonnes 20 Production plan of saleable coal for Felix Resource Limited 15 10 5 0 2010 2011 2012 2013 2014 2015 Saleable Coal Attributable production volume 18
Part IV Market Analysis Coal Market Analysis Domestic Coal Market Analysis International Coal Market Analysis Domestic Methanol Market Analysis 19
Domestic Coal Market Analysis (I) 2009 domestic coal market overview Supply and demand relationship: eased to tense Coal price kept increasing since Sep 2009 2009 2008 Change Raw coal production 2,950 2,716 8.62% Salable coal sales 2,631 2,583 1.86% Export 22.40 45.59-50.87% Import 125.83 40.40 211.46% Year-end national coal inventory 850 750 650 171.5 188(Early 2009) -8.78% Shanxi Quality Mixed Coal Price in Qinhuangdao (2009) RMB Unit: m tonne Unit: m tonne RMB 808 550 1/5 3/5 5/5 7/5 9/5 11/5 20
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
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 2009 272.98 126.81 103.43 149.7 92.95 59.00 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 2009-15.17% 2.75% 18.47% USD/ tonne 84 78 72 66 19 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
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 2010 2009 Growth Hard coking coal 200 129 55.0% Semi-soft coking coal 160 110 45.5% Thermal coal 98 70 40.0% 23
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 6,000 0 2005 2006 2007 2008 2009 Production volume Consumption volume 1,750 1,770 1,500 Jan Mar May Jul Sep Nov 24
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
Part V Operating Strategies Sales Plan in 2010 Operating Strategies 26
Coal Sales Contracts Signed in 2010 Coal sales contracts and letters of intent signed amounted to 40.29 million tonnes The Headquarters contract amount Contract Volume ( Million tonnes) 2010 2009 Change (%) Price (RMB/tonne) 2010 2009 Change (%) 10.01 8.26 21.2 578.26 491.51 17.6 Key contracts 4.29 4.29 503.86 463.84 8.6 Yancoal Australia contract amount 8.12 April-June 1.92 US$130.96 Coal sales target of the Group is 43.55 million tonnes in 2010 27
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
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
Thank you 30