Financial Highlights - Sales in 2025 reached $130 million, increasing by 11% year-on-year [1] - Gross profit was $74 million, a year-on-year growth of about 15.5%, with a gross margin of 57%, an increase of 2.1 percentage points [2] - Net profit reached $45.5 million, a year-on-year increase of 19.5%, with a net profit margin improving to 34.9%, an increase of 2.3 percentage points [2] - Diluted EPS came to $0.0411 per share, which increased 19.1% year-on-year [2] Business Segment Performance - Fixed First Connectivity segment revenue increased by 3.5% year-on-year to about $18 million [3] - Mobile First Connectivity segment increased by 10.4% year-on-year to $73 million, driven by strong growth in high-end Mobile First routers and Starlink equipment [3] - Warranty and support services segment reached $28 million, up 12.3% year-on-year, while software licenses segment reached about $11 million, up 34% year-on-year [4] - Recurring revenues in warranty and support services and software licenses totaled about $38 million, an increase of 17% year-on-year, now accounting for close to 29% of total sales [4] Geographic Performance - North America sales increased 2.1% year-on-year to $76 million, accounting for about 59% of total sales, affected by tariff uncertainties [5] - EMEA sales increased about 28% year-on-year to $37 million, now accounting for about 29% of total sales [5] - Sales to Asia increased to $12 million, growing 36% year-on-year, attributed to large multi-year projects and growth in new markets like Japan [5] - Sales in Australia increased 14% year-on-year, making up about 4% of total sales [6] Company Strategy and Industry Competition - The company is focused on the connectivity market, serving a diverse range of verticals without a single dominant customer [8] - The company plans to spin off its North American business to better address different market requirements and improve competitiveness [12][13] - The company aims to maintain lean operations while leveraging AI tools for efficiency [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges from increased memory and component costs but believes the business model can mitigate these impacts [10][11] - The company sees significant growth opportunities in the U.S. and Europe, with a focus on becoming market leaders in various segments [32] - Management emphasizes the importance of reliable connectivity and the potential of new technologies like satellite communications [9] Other Important Information - The company has no debts and strong operating cash flows, with trade receivables turnover days at 67 days and inventory turnover days at 112 days [7] - The company is exploring AI applications to enhance product offerings and operational efficiency [29] Q&A Session Summary Question: Why not apply for marine certifications for cybersecurity compliance? - Management believes cybersecurity concerns can be addressed through third-party products rather than integrating them into their own [15][17] Question: Why not provide WireGuard support? - Management acknowledges the feedback and plans to provide support but emphasizes their focus on reliable connectivity rather than being feature-rich [19] Question: Will the spin-off unlock value? - Management views the spin-off as a way to better address market needs and improve operational efficiency rather than purely a financial maneuver [23][25] Question: What is the impact of the Starlink business? - The Starlink business is performing well, with plans for integrated products to enhance deployments [35][36] Question: How will the spin-off affect dividend payouts? - Management plans to continue distributing excess cash to shareholders, with the approach depending on market opportunities [33][49] Question: Will product development become independent post-spin-off? - Yes, both companies will operate independently, allowing for tailored product development [70][71]

Financial Highlights - Sales in 2025 reached $130 million, increasing by 11% year-on-year [1] - Gross profit was $74 million, a year-on-year growth of about 15.5%, with a gross margin of 57%, an increase of 2.1 percentage points [2] - Net profit reached $45.5 million, a year-on-year increase of 19.5%, with a net profit margin improving to 34.9%, an increase of 2.3 percentage points [2] - Diluted EPS came to $0.0411 per share, which increased 19.1% year-on-year [2] Segment Performance - Fixed First Connectivity segment revenue increased by 3.5% year-on-year to about $18 million [3] - Mobile First Connectivity segment increased by 10.4% year-on-year to $73 million, driven by strong growth in high-end Mobile First routers and Starlink equipment [3] - Warranty and support services segment reached $28 million, up 12.3% year-on-year, while software licenses segment reached about $11 million, up 34% year-on-year [4] - Recurring revenues in warranty and support services and software licenses totaled about $38 million, an increase of 17% year-on-year, now accounting for close to 29% of total sales [4] Geographic Performance - North America sales increased 2.1% year-on-year to $76 million, accounting for about 59% of total sales, affected by tariff uncertainties [5] - EMEA sales increased about 28% year-on-year to $37 million, now accounting for about 29% of total sales [5] - Sales to Asia increased to $12 million, growing 36% year-on-year, attributed to large multi-year projects and growth in new markets like Japan [5] - Sales in Australia increased 14% year-on-year, making up about 4% of total sales [6] Company Strategy and Industry Competition - The company plans to spin off its North America business to better address different market requirements and improve competitiveness [13][14] - The focus is on becoming the market leader in teleoperations and maritime connectivity, with a goal to dominate various vertical markets [25] - The company is leveraging AI tools to maintain lean operations and enhance product offerings [15] Management Commentary on Operating Environment and Future Outlook - Management acknowledges challenges from increased memory and component costs but believes the business model can mitigate these impacts [12] - The company is optimistic about growth in the U.S. and Europe, viewing them as major growth markets [33] - Management emphasizes the importance of reliable connectivity across various sectors, including logistics and autonomous systems [10][11] Other Important Information - The gross margin improved to 57% from 54.9% last year, attributed to a favorable product mix and economies of scale [6] - The company maintains a strong financial position with no debts and strong operating cash flows [7] Q&A Session Summary Question: Why not apply for marine certifications for cybersecurity compliance? - Management believes cybersecurity concerns can be addressed with third-party products and does not see integration as essential [16][18] Question: Why not provide WireGuard support? - Management acknowledges the feedback and plans to provide support but emphasizes their focus on reliable connectivity rather than being feature-rich [20] Question: Will the spin-off unlock value? - Management views the spin-off as a way to better meet market needs and improve operational efficiency rather than purely a financial maneuver [24] Question: What is the impact of Starlink business? - The Starlink business is performing well, with plans for integrated products to enhance deployments [36][37] Question: Will product development become independent post-spin-off? - Yes, both companies will operate independently, allowing for tailored product development [70] Question: How will the company manage the spin-off? - The company aims to maintain operational efficiency and continue distributing excess cash to shareholders [34][35]

Financial Data and Key Metrics Changes - The group's operating earnings before fair value movements decreased by 2% to over HKD 10.6 billion, while total earnings fell by 11% to HKD 11.5 billion due to coal plant-related items affecting comparability [5][7] - Capital investment declined by 13% to HKD 16.4 billion, with higher growth CapEx offset by the absence of the headquarters acquisition booked in 2024 [7][8] - Total dividends for financial year 2025 were HKD 3.20 per share, representing an increase of 1.6% from 2024 [5][7] Business Line Data and Key Metrics Changes - In Hong Kong, core earnings rose by 7% to just over HKD 9.5 billion, driven by capital investment and high operational reliability [9] - In the Chinese mainland, earnings declined by 12% to HKD 1.6 billion, primarily due to lower contributions from Yangjiang Nuclear and renewables [10][11] - EnergyAustralia's operating earnings were impacted by tough retail conditions, resulting in a net operating earning of AUD 85 million [12][14] Market Data and Key Metrics Changes - Electricity send-out in Hong Kong declined by 3%, reflecting lower coal outputs, while non-carbon capacity rose by 3% due to renewables and battery investments [6] - In Australia, intense competition and cost of living pressures led to margin compression and loss of customer accounts [12][14] - The renewable energy market in China added nearly 450 gigawatts of solar and wind in 2025, with the government pledging to reduce emissions by 7%-10% from peak levels [22][24] Company Strategy and Development Direction - The company is focused on energy security and decarbonization, with strategic priorities centered on balanced growth, decarbonization, and financial discipline [21][22] - A HKD 52.9 billion 5-year development plan is being executed to deliver safe, reliable, and affordable power while supporting Hong Kong's economic and infrastructure agenda [21] - The company aims to build durable, recurring earnings while ensuring diversification, with a disciplined approach to capital allocation [22][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the fundamentals of the business remain strong despite market headwinds in China and Australia [3] - The outlook for renewables in China is sound, with market fundamentals stabilizing and tariff pressure looking manageable [11][12] - EnergyAustralia is focused on optimizing its generation portfolio and improving retail margins through targeted customer strategies [14][26] Other Important Information - Free cash flow generation was strong, up HKD 1.6 billion to HKD 22.6 billion, driven by solid EBITDAF and fuel cost recovery [17][18] - The company has a strong financial structure with around HKD 29 billion in available facilities to meet business needs [19][20] - The Clean Energy Fund in China aims to attract partners, including potential insurance companies, to support renewable energy projects [88][89] Q&A Session Summary Question: EnergyAustralia's earnings below expectations and increase in corporate expenses - Management clarified that the increase in depreciation and amortization is recurrent, linked to increased CapEx, while some enterprise expenses are one-off related to IT outsourcing and customer platform contracting [35][39] Question: CapEx outlook for 2026 in Australia and China - Management indicated that CapEx for growth in China will be slightly reduced due to the lowered renewable target, while investments in Australia will depend on project timelines [42][63] Question: Future capital strategy and Clean Energy Fund - The Clean Energy Fund aims to attract partners for renewable energy projects, with a target fund size of around HKD 4 billion [88][89]

Financial Data and Key Metrics Changes - The group's operating earnings before fair value movements decreased by 2% to over HKD 10.6 billion, while total earnings fell by 11% to HKD 11.5 billion due to coal plant-related items affecting comparability [5][7] - Capital investment declined by 13% to HKD 16.4 billion, with higher growth CapEx offset by the absence of the headquarters acquisition booked in 2024 [7][8] - Total dividends for financial year 2025 increased by 1.6% to HKD 3.20 per share [5][7] Business Line Data and Key Metrics Changes - In Hong Kong, core earnings rose by 7% to just over HKD 9.5 billion, driven by capital investment and high operational reliability [9] - In the Chinese mainland, earnings declined by 12% to HKD 1.6 billion, primarily due to lower contributions from Yangjiang Nuclear and renewables [10][11] - EnergyAustralia's operating earnings were impacted by tough retail conditions, resulting in a net operating earning of AUD 85 million [12][14] Market Data and Key Metrics Changes - Electricity send-out in Hong Kong declined by 3%, reflecting lower coal outputs, while non-carbon capacity rose by 3% due to renewables and battery investments [6] - In Australia, intense competition led to a decline in customer accounts, although there was improvement in the second half of the year [12][14] - The Taiwanese and Southeast Asian markets saw earnings decline to HKD 179 million, with higher development and corporate expenses [16] Company Strategy and Development Direction - The company is focused on energy security and decarbonization, with strategic priorities centered on balanced growth, decarbonization, and financial discipline [21][22] - A five-year development plan of HKD 52.9 billion is being executed to deliver safe, reliable, and affordable power while supporting Hong Kong's economic agenda [21] - The company aims to participate selectively in the growth of renewable energy in China, adjusting its development targets from 6 GW to 5 GW by 2030 [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the fundamentals of the business remain strong despite market headwinds in China and Australia [3] - The outlook for renewables in China is sound, with market fundamentals stabilizing and tariff pressure manageable [11] - EnergyAustralia is focused on optimizing its generation portfolio and improving retail margins through targeted strategies [14][25] Other Important Information - Free cash flow generation was strong, increasing by HKD 1.6 billion to HKD 22.6 billion, driven by solid EBITDAF and fuel cost recovery [17][18] - The financial structure remains strong, with a slight increase in net debt and around HKD 29 billion in available facilities [19][20] Q&A Session Summary Question: EnergyAustralia's earnings below expectations and increase in corporate expenses - Management clarified that the increase in depreciation and amortization is recurrent, linked to increased CapEx, while some enterprise expenses are one-off related to IT outsourcing and new customer platforms [38][39] Question: CapEx outlook for 2026 in Australia and China - Management indicated that CapEx for growth in China will be slightly reduced due to the lowered renewable target, while investments in Australia will depend on project timelines [42][63] Question: Long-term planning for India and capital allocation - Management confirmed a target of 9 GW of non-carbon projects by 2030, maintaining a capital allocation of HKD 6 billion per annum [52][53] Question: Yallourn coal-fired plant closure and future investments - Management plans to retire Yallourn by mid-2028 and will focus on capital allocation for flexible capacity projects in Australia [58][63] Question: Customer upgrade timeline and wholesale energy segment performance - Management stated that the customer platform upgrade is expected to take about two years, while volatility in the wholesale market is being captured through investments in energy storage [100][104]

Financial Data and Key Metrics Changes - The group's operating earnings before fair value movements decreased by 2% to over HKD 10.6 billion, while total earnings fell by 11% to HKD 11.5 billion due to coal plant-related items affecting comparability [5][7] - Capital investment declined by 13% to HKD 16.4 billion, with higher growth CapEx offset by the absence of the headquarters acquisition booked in 2024 [7][9] - Total dividends for financial year 2025 were HKD 3.20 per share, representing an increase of 1.6% from 2024 [5][8] Business Line Data and Key Metrics Changes - In Hong Kong, core earnings rose by 7% to just over HKD 9.5 billion, driven by capital investment and high operational reliability [10] - In the Chinese mainland, earnings declined by 12% to HKD 1.6 billion, primarily due to lower contributions from Yangjiang Nuclear and renewables [11] - EnergyAustralia's operating earnings were AUD 85 million, impacted by tough retail conditions and one-off tax expenses [16] Market Data and Key Metrics Changes - Electricity send-out in Hong Kong declined by 3%, reflecting lower coal outputs, while non-carbon capacity rose by 3% due to renewables and battery investments [5][6] - In Australia, intense competition led to a decline in customer accounts, while the retail sector faced margin compression and higher bad debts [13][16] - In India, reported earnings were down 29% due to a one-off impairment, but underlying operating earnings improved with higher output from renewables [17] Company Strategy and Development Direction - The company is focused on energy security and decarbonization, with strategic priorities centered on balanced growth, decarbonization, and financial discipline [23] - A HKD 52.9 billion 5-year development plan is being executed to deliver safe, reliable, and affordable power while supporting Hong Kong's economic agenda [23][24] - The company is targeting growth in fast-growing energy transition markets, with a disciplined approach to investments that meet minimum return requirements [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the fundamentals of the business remain strong despite market headwinds in China and Australia [3] - The outlook for renewables is sound, with market fundamentals stabilizing and tariff pressure looking manageable [12] - Management emphasized the importance of operational excellence and digital transformation to meet the demands of a rapidly evolving energy sector [31] Other Important Information - Free cash flow generation was strong, up HKD 1.6 billion to HKD 22.6 billion, driven by solid EBITDAF and fuel cost recovery [19][20] - The financial structure remains strong, with a slight increase in net debt and around HKD 29 billion in available facilities [20][21] Q&A Session All Questions and Answers Question: EnergyAustralia's earnings below expectations - The increase in depreciation and amortization is recurrent, linked to increased CapEx, while enterprise expenses are more one-off related to IT outsourcing and customer platform contracting [41][42] Question: CapEx for growth in Australia and China - CapEx is mainly for Chinese renewable projects and EnergyAustralia's wind battery, with expected returns aligned with hurdle rates [45][46] Question: Long-term planning for India and capital allocation - The target for non-carbon projects in India is consistent with previous plans, maintaining a capital allocation of HKD 6 billion per annum [56][57] Question: Yallourn coal-fired plant closure - The current plan is to retire Yallourn by mid-2028, with capital allocation in China expected to be slightly reduced due to the lower target [62][66] Question: Customer upgrade timeframe in Australia - The current plan for the customer platform upgrade is to take about 2 years, targeting completion before the end of 2028 [105]

Financial Data and Key Metrics Changes - HKEX reported record revenue and profit for 2025, with revenue and other income reaching HKD 29.2 billion, a 30% increase from 2024, and profit after tax at HKD 17.8 billion, up 36% year-on-year [6][7] - Earnings per share (EPS) increased to HKD 14.05, reflecting a 36% growth compared to the previous year [6] - The board declared a total dividend of HKD 12.52 per share for 2025, a 35% increase from 2024 [7] - Average daily trading (ADT) reached HKD 249.8 billion, a 90% increase year-on-year, with both Northbound and Southbound Stock Connect achieving all-time highs [7][9] Business Line Data and Key Metrics Changes - Trading volumes in the cash and derivatives markets reached record highs, with derivatives market volumes increasing by 7% and commodities market volumes by 8% compared to 2024 [7][9] - The introduction of new IPO price discovery rules and support for specialist technology issuers contributed to increased market activity [3][4] Market Data and Key Metrics Changes - The secondary market remained vibrant, driven by renewed global interest in Hong Kong equities and rising demand for short-dated options [15] - The average daily trading volume of exchange-traded products nearly doubled from the previous year [15] Company Strategy and Development Direction - HKEX aims to enhance its multi-asset ecosystem, focusing on equities while expanding into fixed income, currency, and commodities [27][18] - The company plans to strengthen connectivity with other Asian markets and enhance its product offerings to meet the growing demand for China assets [19][18] - Strategic investments, such as the acquisition of a 20% stake in CMU OmniClear, are intended to bolster Hong Kong's position as a global hub for bond fundraising and risk management [4][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong momentum in 2026, supported by a robust IPO pipeline and ongoing market reforms [14][27] - The macroeconomic landscape presents both challenges and opportunities, with a focus on capital diversification and the evolving needs of global investors [16][26] Other Important Information - HKEX's effective tax rate increased to 15.7% in 2025 due to new tax provisions [8] - The company has made significant investments in technology and market reforms to enhance liquidity and attract high-quality issuers [24][25] Q&A Session Summary Question: Potential expansion of connectivity with other regions - Management highlighted the strong demand for connectivity with other Asian markets and ongoing initiatives for dual listings and cross-listing opportunities [32][34] Question: Cost discipline amid increasing initiatives - Management emphasized the importance of maintaining cost discipline while making thoughtful investments in future growth areas [35][36] Question: Revenue contribution from CMU OmniClear - Management indicated that the investment in CMU OmniClear is a strategic step towards building a comprehensive fixed income ecosystem, with potential for long-term returns [42][44] Question: IPO pipeline conversion probability - Management expressed optimism about the healthy IPO pipeline, noting strong demand and positive aftermarket performance for completed IPOs [55][56] Question: Timeline for Southbound RMB counter - Management confirmed ongoing progress on the Southbound RMB counter, with plans to accelerate implementation [57] Question: Cost growth expectations - Management projected a moderate growth in operating expenses, emphasizing stringent cost control measures while investing in future initiatives [66][68] Question: Importance of T-bond futures - Management acknowledged strong market demand for T-bond futures and confirmed ongoing discussions with partners to advance this initiative [62][64]

Financial Data and Key Metrics Changes - HKEX reported record revenue and profit for 2025, with revenue and other income reaching HKD 29.2 billion, a 30% increase from 2024, and profit after tax at HKD 17.8 billion, up 36% year-on-year [6][8] - Earnings per share (EPS) increased to HKD 14.05, reflecting a 36% growth compared to the previous year [6] - The board declared a second interim dividend of HKD 6.52 per share, totaling HKD 12.52 for the year, a 35% increase from 2024 [7] Business Line Data and Key Metrics Changes - Trading volumes in Hong Kong cash and derivatives markets reached record highs, with average daily turnover (ADT) of HKD 249.8 billion, a 90% increase year-on-year [8] - The derivatives market saw a 7% increase in trading volumes, while the commodities market increased by 8% compared to 2024 [8] - The group's effective tax rate rose to 15.7% in 2025 from 11.4% in 2024 due to new tax provisions [9] Market Data and Key Metrics Changes - Northbound and Southbound Stock Connect recorded all-time highs, indicating strong cross-border trading activity [8] - The secondary market remained vibrant, driven by renewed global interest in Hong Kong equities and rising demand for short-dated options [15] Company Strategy and Development Direction - HKEX aims to enhance its multi-asset ecosystem, focusing on equities while developing fixed income, currency, and commodities markets [25] - The company is expanding its connectivity with markets in the Middle East and Southeast Asia, enhancing its regional liquidity pool [20] - Strategic initiatives include the introduction of new IPO price discovery rules and the launch of the HKEX Tech 100 Index, focusing on Hong Kong's technology sector [3][4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong momentum in 2026, supported by a robust IPO pipeline and ongoing market reforms [14][25] - The macro landscape shows persistent uncertainty, but there are significant opportunities for capital diversification into Asia [16][17] - The company is well-positioned to capture emerging trends in technology and innovation sectors, particularly from mainland China [17][18] Other Important Information - HKEX's investment in CMU OmniClear is part of its strategy to strengthen Hong Kong's position as a global hub for bond fundraising and risk management [4][21] - The company is committed to future-proofing its technology and operations to meet growing demand for China assets [24] Q&A Session Summary Question: Potential expansion of connectivities with other regions - Management highlighted the strong demand for connectivity with other Asian markets and ongoing initiatives for dual listings and cross-listing opportunities [30][31] Question: Cost growth in line with revenue - Management emphasized the importance of maintaining cost discipline while making thoughtful investments in technology and personnel to support future growth [32] Question: Revenue contribution from CMU OmniClear - Management indicated that while the initial revenue contribution from CMU would be modest, it is a strategic investment aimed at building a comprehensive fixed income ecosystem [42][46] Question: IPO pipeline conversion probability - Management expressed optimism about the healthy IPO pipeline, noting strong demand and positive aftermarket performance for recent IPOs [53] Question: Timeline for Southbound RMB counter - Management confirmed that the implementation of the Southbound RMB counter is progressing, with updates to be shared as they become available [54] Question: Multi-asset business monetization opportunities - Management acknowledged the significant potential in the fixed income market and the need for a holistic approach to developing a multi-asset ecosystem [78][79]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue of almost AUD 6 billion, a decrease of 13% from the previous year due to lower average realized coal prices [5][21] - Operating EBITDA was over AUD 1.4 billion with a margin of 24%, reflecting the company's ability to maintain profitability despite weak coal prices [5][21] - Profit after tax was AUD 440 million, translating to AUD 0.33 per share, with a total dividend payout ratio of 55% of net profit after tax [5][25] - The company retains a strong balance sheet with AUD 2.1 billion in cash and no external debt as of December 31 [6][21] Business Line Data and Key Metrics Changes - ROM coal production reached 67 million tons, a record for the company and a 7% increase from 2024 [4][10] - Attributable salable coal production was 38.6 million tons, up 5% compared to 2024, with sales volumes optimized despite weather-related challenges [9][10] - Cash operating costs were AUD 92 per ton, a reduction of AUD 1 per ton from the first half of the year and lower than 2024 costs [4][12] Market Data and Key Metrics Changes - The overall realized coal price was AUD 146 per ton, down 17% from 2024, influenced by strong supply and weak demand conditions in international markets [17][18] - Revenue from Japan increased due to a higher proportion of metallurgical coal sales, while revenue from China decreased as domestic supply was utilized more [16][17] - Global metallurgical coal exports fell by 7% in 2025, with demand remaining lackluster due to steel exports from China [18][20] Company Strategy and Development Direction - The company aims to maintain operational momentum into 2026, with guidance for attributable salable production set between 36.5 million and 40.5 million tons [25][26] - A focus on sustainability is evident, with plans to develop a climate transition plan in 2026 and ongoing initiatives to improve sustainability data capture [7][8] - The company is evaluating opportunities for growth and M&A, leveraging its strong financial position while adhering to its dividend framework [58][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining production levels despite anticipated inflationary pressures on operating and capital expenditures [32][33] - The outlook for coal prices remains cautious, with potential impacts from Indonesian production cuts being monitored [35][36] - The company recognizes the volatility of the Australian dollar and its impact on foreign exchange losses, while also managing costs effectively [41][92] Other Important Information - The company has set world records for material movement at its mines, showcasing operational efficiency and capability [11] - A commitment to safety is highlighted, with improved safety performance metrics reported [6][7] Q&A Session Summary Question: Production cadence expectations for 2026 - Management expects a lower production figure in Q1, with more consistent production in subsequent quarters [30][31] Question: Measures to address cost inflation - The company has allowed for slight cost inflation in its guidance and aims to offset it through productivity initiatives [32][33] Question: Impact of Indonesian production cuts on coal prices - The market reacted to potential production cuts, but no official policies have been confirmed yet [35][36] Question: Foreign exchange losses and future expectations - The company anticipates continued volatility in the Australian dollar, which may impact US dollar holdings [41] Question: Demand outlook for thermal coal in traditional markets - Demand for higher quality coal remains stable, particularly in Japan, with a focus on security of supply [52] Question: M&A opportunities and capital management - The company is actively evaluating M&A opportunities while maintaining a strong balance sheet and adhering to its dividend policy [58][96]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue of almost AUD 6 billion, a decrease of 13% from the previous year due to lower average realized coal prices [20] - Operating EBITDA was over AUD 1.4 billion with a margin of 24%, reflecting the company's ability to maintain profitability despite weak coal prices [5][20] - Profit after tax was AUD 440 million, translating to AUD 0.33 per share, with a total dividend payout of AUD 243 million, representing a 55% payout ratio [5][24] Business Line Data and Key Metrics Changes - ROM coal production reached 67 million tons, a 7% increase from 2024, while attributable salable coal production was 38.6 million tons, up 5% compared to the previous year [4][10] - Cash operating costs were AUD 92 per ton, a reduction of AUD 1 per ton from the first half of 2025 and lower than 2024 costs [4][12] Market Data and Key Metrics Changes - The overall realized coal price was AUD 146 per ton, down 17% from 2024, influenced by strong supply and weak demand conditions in international thermal coal markets [16] - Revenue from Japan increased due to a higher proportion of metallurgical coal sales, while revenue and volumes from China decreased as domestic supply was utilized more [15][17] Company Strategy and Development Direction - The company aims to maintain operational momentum into 2026, with increased attributable salable production guidance of 36.5 million to 40.5 million tons [24] - A focus on sustainability is evident, with plans to develop a climate transition plan in 2026 and initiatives like the Sustainability Digital Data Platform launched in Q3 2025 [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflationary pressures on operating and capital expenditures but expressed confidence in offsetting these through productivity initiatives [32] - The company remains optimistic about the coal market, noting potential supply shortfalls in the coming years due to approval and financing challenges for new mines [18][19] Other Important Information - The company retains a strong balance sheet with AUD 2.1 billion in cash and no external debt as of December 31 [6] - Safety performance improved, with a TRIFR statistic below the industry average, emphasizing the company's commitment to workforce safety [7] Q&A Session Summary Question: Production cadence expectations for 2026 - Management expects a lower production figure in Q1 2026, with more consistent production in subsequent quarters [30] Question: Measures to address cost inflation - The company has increased cost guidance to reflect expected inflationary pressures and will continue to target productivity initiatives to offset these costs [32] Question: Outlook for coal prices with potential production cuts in Indonesia - Management noted that the market reacted to comments about production cuts in Indonesia, but no concrete policy changes have been confirmed yet [34] Question: Foreign exchange losses due to US dollar holdings - The company highlighted the volatility of the Australian dollar and its impact on foreign exchange losses, particularly with US dollar working capital [41] Question: Demand for 6,000 kcal coal in traditional markets - Demand for higher quality coal remains stable, particularly in Japan, with a focus on security of supply [52] Question: M&A opportunities and balance sheet management - The company is evaluating opportunities to enhance shareholder value while maintaining a strong financial position [58]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue of almost AUD 6 billion, a decrease of 13% from the previous year due to lower average realized coal prices [5][20] - Operating EBITDA was over AUD 1.4 billion with a margin of 24%, reflecting the quality of assets and operational effectiveness despite weak coal prices [5][20] - Profit after tax was AUD 440 million, translating to AUD 0.33 per share, with a total dividend payout ratio of 55% of net profit after tax [5][24] - Cash operating costs were AUD 92 per ton, a reduction of AUD 1 per ton from the first half of 2025 and lower than 2024 costs [4][11] Business Line Data and Key Metrics Changes - ROM coal production reached 67 million tons, a record for the company and up 7% from 2024 [4][8] - Attributable salable coal production was 38.6 million tons, with a 5% increase compared to 2024 [4][9] - The company optimized sales volumes, resulting in a 1% increase in attributable sales [8] Market Data and Key Metrics Changes - The overall realized coal price was AUD 146 per ton, down 17% from 2024, influenced by strong supply and weak demand conditions in international thermal coal markets [16] - Revenue from Japan increased due to a higher proportion of metallurgical coal sales, while revenue from China decreased as domestic supply was utilized more [15][16] Company Strategy and Development Direction - The company aims to maintain operational momentum into 2026, with guidance for attributable salable production set between 36.5 million and 40.5 million tons [24] - A climate transition plan is set to be developed in 2026 to enhance climate resilience and support the company's sustainability strategy [6][7] - The company continues to focus on maximizing production, controlling costs, and balanced capital allocation to enhance shareholder value [103] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflationary pressures on operating and capital expenditures but expressed confidence in offsetting these through productivity initiatives [32][80] - The outlook for coal prices remains cautious, with expectations of a relatively flat market in the near term, influenced by geopolitical events and supply dynamics [35][16] Other Important Information - The company retains a strong balance sheet with AUD 2.1 billion in cash and no external debt as of December 31 [6][20] - The company has set world records in material movement at two mines, showcasing its operational capabilities [10] Q&A Session Summary Question: Production cadence expectations for 2026 - Management expects a lower production figure in the first quarter, with more consistent production in subsequent quarters [29][30] Question: Measures to address cost inflation - The company has allowed for slight cost inflation in its guidance and aims to offset it through productivity initiatives [32] Question: Coal price outlook with potential production cuts in Indonesia - The market reacted to comments about production cuts in Indonesia, but no concrete policy changes have been confirmed yet [35] Question: Foreign exchange losses due to US dollar holdings - The company noted that the appreciation of the Australian dollar has led to foreign exchange losses on US dollar holdings, but it maintains a natural hedge through its revenue structure [40][95] Question: Demand for 6,000 kcal coal in traditional markets - Demand for higher quality coal remains stable, particularly in Japan, with a focus on security of supply [51] Question: M&A opportunities and balance sheet management - The company is evaluating opportunities for growth while maintaining a strong financial position and adhering to its dividend framework [58][101]