Ferrexpo Plc · LSE:FXPO
Ferrexpo — Shareholder Meeting (May 2017)
8 slides from Ferrexpo's shareholder meeting presentation, May 2017
Slide 1: Annual General Meeting May 2017
ANNUAL GENERAL MEETING MAY 2017
Slide 2: 2016: Resilient performance in challenging circumstances
2016: RESILIENT PERFORMANCE IN CHALLENGING C I R C U M S TA N C E S - Record sales volumes - Record production of high quality 65% Fe pellets - Increased market share with premium customers - C1 cash cost of production reduced to a 10 year low - 159% increase in cash flow from operations to $332M -
Slide 3: Financial performance reflects strong business profile
FINANCIAL PERFORMANCE REFLECTS STRONG BUSINESS PROFILE NICHE PRODUCT, TOP CLASS CUSTOMERS, WELL INVESTED LONG LIFE ASSET BASE & LOW POSITION ON COST CURVE DELIVERS HIGH MARGINS EVEN AT THE LOW POINT IN THE CYCLE – Average EBITDA margin since 2007 35.6% (or $44/ tonne) EBITDA Margin 62% Fe iron ore f
Slide 4: Past investment has increased product quality and access to premium customers
PA S T I N V E S T M E N T H A S I N C R E A S E D P R O D U C T Q U A L I T Y & ACCESS TO PREMIUM CUSTOMERS INCREASING QUALITY GROWING SHARE IN PREMIUM MARKETS Significant growth in shipments to premium markets since 2009 Total pellet production 6000 12,000 100% 2009 2016 % of 65% Fe pellet product
Slide 5: Pellets are a niche product that receive a price premium
P E L L E T S A R E A N I C H E P R O D U C T T H AT R E C E I V E A P R I C E PREMIUM PELLET PREMIUMS ARE RELATIVELY STABLE COMPARED TO THE IRON ORE FINES PRICE $ per tonne Iron ore fines 62% CFR China Blast furnace pellet premium to non-Chinese markets 166 166 154 155 135 140 98 85 63 63 67 56 58
Slide 6: Consistent strategy underpins performance
C O N S I S T E N T S T R AT E G Y U N D E R P I N S P E R F O R M A N C E S T R O N G C A S H G E N E R AT I O N T H R O U G H T H E C Y C L E Breakeven price of seaborne exporters, CFR China, 62% Fe sinter fines, $/ dry t 1 70 60 50 40 30 20 FXPO 10 0 0 250 500 750 1000 1250 WORLD-CLASS ASSETS WIT
Slide 7: Thank you
THANK YOU -_ <(F _ FERREXPO
Slide 8: Disclaimer
DISCLAIMER This document is being supplied to you solely for your information and does not any discussion, correspondence or contact concerning the information in this document constitute or form part of any offer or invitation or inducement to sell or issue, or any with any of the directors or empl