Using this template


Whitehaven Coal Limited

DEUTSCHE BANK

23RD ANNUAL LEVERAGED FINANCE CONFERENCE


PHOENIX, ARIZONA

28 -30 SEPTEMBER 2015


Disclosure


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, INDUSTRY GROWTH OR OTHER TREND PROJECTIONS AND ANY ESTIMATED COMPANY EARNINGS ARE OR MAY BE FORWARD LOOKING STATEMENTS. SUCH STATEMENTS RELATE TO FUTURE EVENTS AND EXPECTATIONS AND AS SUCH INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES. ACTUAL RESULTS, ACTIONS AND DEVELOPMENTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THESE FORWARD LOOKING STATEMENTS DEPENDING ON A VARIETY OF FACTORS.


THE PRESENTATION OF CERTAIN FINANCIAL INFORMATION MAY NOT BE COMPLIANT WITH FINANCIAL CAPTIONS IN THE PRIMARY FINANCIAL STATEMENTS PREPARED UNDER IFRS. HOWEVER, THE COMPANY CONSIDERS THAT THE PRESENTATION OF SUCH INFORMATION IS APPROPRIATE TO INVESTORS AND NOT MISLEADING AS IT IS ABLE TO BE RECONCILED TO THE FINANCIAL ACCOUNTS WHICH ARE COMPLIANT WITH IFRS REQUIREMENTS.


ALL DOLLARS IN THE PRESENTATION ARE AUSTRALIAN DOLLARS UNLESS OTHERWISE NOTED.


Competent Persons Statement

Information in this report that relates to Coal Resources and Coal Reserves is based on and accurately reflects reports prepared by the Competent Person named beside the respective information. Mr Greg Jones is a principal consultant with JB Mining Services. Mr Phillip Sides is a senior consultant with JB Mining Services. Mr Mark Dawson is a Geologist with Whitehaven Coal Limited. Mr Ben Thompson is a Geologist with Whitehaven Coal. Mr John Rogis is a Geologist with Whitehaven Coal. Mr Rick Walker is a Geologist with Whitehaven Coal. Mr Graeme Rigg is a full time employee of RungePincockMinarco Ltd. Mr Doug Sillar is a full time employee of RungePincockMinarco Ltd.


Named Competent Persons consent to the inclusion of material in the form and context in which it appears. All Competent Persons named are Members of the Australian Institute of Mining and Metallurgy and/or The Australian Institute of Geoscientists and have the relevant experience in relation to the mineralisation being reported on by them to qualify as Competent Persons as defined in the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012 Edition).


Agenda


  • About Whitehaven Coal


  • Low cost producer and margin analysis


  • Benchmarking Whitehaven against US peers


  • Whitehaven's markets


  • High quality coal


  • Operational performance


  • Community contribution


  • Summary financials


  • Outlook


About Whitehaven Coal

LOW COST MINES PRODUCING HIGH QUALITY COAL


ASX Code: WHC

  • 1,026 million shares on issue

  • Market Cap $A1.0 billion

  • Trading 90 million shares per month

    Whitehaven Operations

  • Narrabri U/G mine, Maules Creek, Werris Creek, Tarrawonga and Rocglen O/C mines

    Saleable Production

  • On track to produce 18.9Mt to 19.4Mt in

    FY2016

  • Increasing to 26Mt in FY2019

  • Metallurgical coal production increasing to over 35% of total as Maules Creek ramps

    Costs

  • Unit costs reduced to A$60/t in H2 FY15, in

    the lowest cost quartile

    Shareholders


    - Farallon

    16.6%

    - AMCI Group

    14.7%

    - Eastspring

    10.1%

    - Manning & Napier

    6.0%

    - Martua Sitorus Group

    5.8%

    - Kerry Group

    5.0%

    - Australian Institutions

    17.8%


    Capital Structure
  • Senior Secured Debt facility A$1,200m

    - thereof drawn A$ 900m

  • Asset financing drawn A$ 136m

  • Cash on hand A$ 100m

  • Net Debt A$ 936m


Where we operate

LOW CASH COST PRODUCER OF HIGH QUALITY METALLURGICAL AND PREMIUM THERMAL COAL


Maules Creek (75%) Tier One Mine

  • Reserves: ~ 30 years, Permitted & Planned 13Mtpa

  • SSCC, PCI and high energy thermal


    Narrabri (70%) Tier One Mine

  • Reserves: ~ 25 years, Permitted 8Mtpa, Planned 7Mtpa

  • PCI & low ash thermal


    Tarrawonga (70%)

  • Reserves: >20 years, Permitted 3Mtpa, Planned 2Mtpa

  • SSCC, PCI and thermal coal


    Werris Creek (100%)

  • Reserves: ~ 8 years, Permitted & Planned 2.5Mtpa

  • PCI and thermal coal


    Rocglen (100%)

  • Reserves: ~3 years, Permitted 1.5Mtpa, Planned 1.2Mtpa

  • Thermal coal


    Gunnedah CHPP (100%)

  • Permitted to 4.1Mtpa product coal


    Vickery (100%) Future Development

  • Reserves: ~ 30 years, Permitted to 4.5Mtpa

  • SSCC, PCI and high energy thermal coal


Note: CHPP stands for Coal Handling and Preparation Plant


5 // 2015 DB LEVERAGED FINANCE CONFERENCE

Management has a strong recent track record of delivering on recent targets

DELIVERED ON KEY FY14 AND FY15 TARGETS



Targets

Outcomes

Aiming for ongoing improvement in safety performance at all operations


Outstanding safety performance with TRIFR falling by 35% in FY15

Ensuring Maules Creek construction remains ahead of schedule and under budget


Maules Creek completed three months ahead of schedule and $27m under budget

Improving the production performance of all mines in the portfolio


Record production results in FY2015 with further growth to come

Reduce costs


Increased operating margins in FY2015; Unit

costs down for 5th successive half

Implementing a long term financing plan that aligns funding requirements and mine life


Robust capital structure underpinned by re- finance on improved terms

Developing long term markets and sales contracts for all Maules Creek production


Opened a representative office in Tokyo

Whitehaven is a low cost, high quality coal producer

DELIVERING SUSTAINABLE COST REDUCTIONS AND INCREASED MARGINS


ASP, Costs and Margin (A$/t)
  • Unit costs down 24% from H1 FY2013 to

    $85


    $80


    $75


    $70


    $65


    $60


    $55


    $50

    A$60/t in H2 FY2015


  • Whitehaven increased margins in second half of FY2015 to A$15/t from A$10/t in the first half


  • Using current market prices and exchange rate the margin have increased above A$15/t in September 2015 quarter


    H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 H2 FY15

  • Costs positioned in lowest quartile of cost

curve


Sales Price ex Royalties

Costs ex Royalties


Source: Whitehaven. Costs and ASP (Average Selling Price) exclude Royalties levied as a percentage of the sales price and paid to the NSW State Government.


Unparalleled productivity metrics

WHITEHAVEN PRODUCTIVITY CONTINUES TO IMPROVE


NSW and Whitehaven Mine Productivity


25.0


Maules Creek ramped


20.0


15.0


10.0


5.0


0.0


FY04

FY06

FY08

FY10

FY12

FY14

FY16

FY18


NSW tpmy

Whitehaven tpmy


Note: Graph depicts saleable coal on a 100% basis including coal destined for domestic and export sales and pre-commercial coal production from Maules Creek

tpmy = saleable coal production (tonnes per man year)


  • Productivity at Whitehaven's Maules Creek and Narrabri mines ensures that productivity remains well above the NSW average

    Whitehaven benchmarked against US coal companies

    HIGH QUALITY COAL AND LOW COST OPERATIONS GENERATE HIGH MARGINS



    • Whitehaven generates significant EBITDA margin per short ton in the current coal market


      $25

      Gearing Versus Cash Margin First Half CY1512


      • This is due to its low cost operations and high quality coals which sell at a premium to benchmark prices


    • Whitehaven is much less geared than US coal

      companies


      • Limited net debt of A$936m (US$655m at current AUD/USD exchange rate of 0.70)


        Cash margin (US$/ton)

        $20


        $15


        $10


        Whitehaven

        Producer 5


        - Gearing of less than 25%

        $5

    • Operating cash flow will meet interest payments, sustaining capex and be applied to

reduce debt $0


Producer 1


Producer 2


Producer 4


Producer 3


Producer 6;

Gearing: 172%

Margin: ~$4 / ton


  • New mine investment cycle has concluded


  • Delevering becomes the priority

0% 20% 40% 60% 80% 100%

Gearing ratio



Note: Market data as of September 14, 2015.

1 Gearing ratio defined as net debt / (book equity + net debt) 2 Cash margin defined as EBITDA / short ton

Circle width represents market cap


Producer 7;

Gearing: 635% Margin: ~($22) / ton

Whitehaven benchmarked against US coal companies (continued)

EXPOSED TO GROWING COAL DEMAND IN THE PACIFIC BASIN

% of Sales by Region Global coaldemand


Company N. America3 Pacific Atlantic Other

- 100% of WHC's coal sales are to Asia Pacific customers

Producer 12

85%

12%

3%


Producer 22


80%


2%


18%


Producer 31


82%


5%


10%


3%

Whitehaven1


Producer 41


Producer 51


Producer 62


Producer 72

100%


77% 23%


70% 1% 26% 3%


100%


34% 14% 52%


  • Annual coal consumption in the Asia Pacific region increased 5 fold between 1980 (1.1 bn tons) and

    2012 (5.4 bn tons) CAGR (1980 - 2012): 5.2%


  • The Asia Pacific region is the largest coal consumer globally - 65% of global consumption


  • Emerging and Developing Asia is forecast to grow 6.6% in 2015 and 6.4% in 2016, outpacing global GDP growth [source: IMF]


  • Coal is expected to remain a key source of energy fuelling economic growth in the Asia Pacific region


Note: Market data as of September 14, 2015. 1 Regional sales breakout by revenue.

2 Regional sales breakout by shipments. 3 Represents the US and Canada.

Source: EIA, IMF, company filings

Our coal goes to premium Asia (ex China) market

COAL SALES TO PREMIUM PAN-ASIAN MARKETS / MET COAL MIX INCREASING TO > 35%


Thermal Coal Sales

9%3%

3%


Japan


- Over 82% of thermal coal sold into premium Asian markets

3%

5%


38%

39%

Korea

Taiwan SE Asia

Sth America Other

China


  • Sales mix 84% thermal and 16% metallurgical coal for FY2016


  • Sales mix improves as higher margin metallurgical coal product rises to over 35% of total sales following ramp up to full production at

Metallurgical Coal Sales

Maules Creek



60%

26%


1%


13%


Japan Korea Taiwan India

  • Overall thermal coal quality improves as production from Maules Creek increases


  • Korea and India targeted growth markets for metallurgical coal in the future



Whitehaven's Asian markets

STRONG REGIONAL GROWTH FOR HIGH QUALITY COAL


New Coal Fired Generation Capacity (GW)

20


15


10


5


0

2015 2016 2017 2018 2019 2020 2021 2022

Japan Korea Malaysia Philippines Taiwan Thailand Vietnam


  • All countries in Whitehaven's key market region are adding new supercritical and ultra-supercritical coal fired generating capacity


  • Over 70 GW of new capacity by 2022 will require about 180Mtpa of high quality coal supply



200

(GW)

150

100

50

0

(Mt)

Cumulative Growth in Generating Capacity & Coal Demand in Whitehaven's Key Markets


2015 2016 2017 2018 2019 2020 2021 2022


Cumulative Total (GW) Additional Coal Demand (Mt)

- Whitehaven is well placed to increase sales of its high quality coals in the region


Source: Various Investment Banks and country forecasts

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