Slide 1: Interim Financial Results 2024
INTERIM FINANCIAL RESULTS 2024
Slide 2: Forward Looking Statement & Disclaimers
FORWARD LOOKING STATEMENT & DISCLAIMERS Information regarding forward-looking statements. This Presentation includes When assessing and discussing the Group’s reported financial performance, forward-looking statements. These forward-looking statements involve known financial position and cash flows,
Slide 3: First Half Business Review
First Half Business Review Lucio Genovese Executive Chair 3
Slide 4: Integrated Premium Iron Ore Pellet Producer and Exporter
INTEGRATED PREMIUM IRON ORE PELLET PRODUCER AND EXPORTER Our high-quality iron ore pellets are What we do The outcomes we deliver preferred by premium steel producers around the world and are ECONOMIC TRANSPORTATION enabling the transition MINING PROCESSING MARKETING to green steel, whilst at AND LO
Slide 5: Increased Production and Sales Results in Stable Financial Condition
INCREASED PRODUCTION AND SALES RESULTS IN STABLE FINANCIAL CONDITION Revenue Resilient total production Stable net cash position Investment in the future US$549M 3.7MT US$112M US$55M Revenues increased by Easing of logistics constraints Despite the ongoing war Continued investment in 64% due to incr
Slide 6: Operations
OPERATIONS Operations scaled to deliver exceptional increases in throughput, production and sales Strong growth in mining Increased flexibility with Logistics capabilities rapidly rates, to deliver ore to plant multiple pellet lines in operation expanded to meet demand Mining Processing Logistics •
Slide 7: Rapid Recovery in Mined Volume and Production
RAPID RECOVERY IN MINED VOLUME AND PRODUCTION Mined volume Pellet production & sales Six-monthly (thousand tonnes) Six-monthly (thousand tonnes) 80,000 6,000 4 pellet lines equivalent 70,000 5,000 60,000 3 pellet lines equivalent 4,000 50,000 40,000 3,000 2 pellet lines equivalent Production 30,000
Slide 8: Operating During a Time of War
OPERATING DURING A TIME OF WAR Our business has built-in operational flexibility and continues to adapt to the many challenges the war poses Workforce in Armed Forces Logistics 10% 54% seaborne Approximately one-in-ten of our Access to the Black Sea maritime employees are currently serving in corrid
Slide 9: Operating During a Time of War: Humanitarian and CSR Funding
OPERATING DURING A TIME OF WAR Humanitarian and CSR funding for over 100 projects and initiatives 3% 11% 21% 4% 8% US$26M Construction of bomb shelters Veteran rehabilitation since full-scale invasion 11% in February 2022 42% Electronics PPE Supplied goods Medicine Foods and Others Transport and Fue
Slide 10: Sustainability Dashboard
SUSTAINABILITY DASHBOARD Continuing with activities to progress ESG targets, even during a time of war Safety rate (LTIFR) CO2 emissions (Scope 1+2 kg/t) Women in leadership roles 0.48 -35% 22% 132 22% 22% 21% 20% 110 0.79 18% 92 91 89 85 0.58 0.51 0.48 0.41 0.39 2019 2020 2021 2022 2023 1H 2024 201
Slide 11: First Half Market Review
First Half Market Review Yaroslavna Blonska Acting Chief Marketing Officer 11
Slide 12: Iron Ore Prices
IRON ORE PRICES Weaker fundamentals due to increased iron ore supply and weak demand from the Chinese steel sector 1H 2024 Prices rise on low Constantly shifting sentiment between stocks and strong Ferrexpo average realised Chinese demand weakness and optimism Chinese demand keeping prices in US$100
Slide 13: Multi-Mode Logistics Network Provides Flexible Options to Deliver to Customers
MULTI-MODE LOGISTICS NETWORK PROVIDES FLEXIBLE OPTIONS TO DELIVER TO CUSTOMERS Sales Markets 3.8MT 80% EUROPE 20% MENA & ASIA Sales for 1H 2024 increased 84% Access to Ukrainian Black Sea ports compared to 2H 2023 and 85% resulted in growth in seaborne compared to 1H 2023. Broad mix exports and sale
Slide 14: Working with Our Customers to Enable the Transition to Green Steel
WORKING WITH OUR CUSTOMERS TO ENABLE THE TRANSITION TO GREEN STEEL Pellet demand & premiums Premium customers 65% + Fe Green steel Short-term disruptions in Agreements signed with leading European supplies, combined with European and Asian business dislocation of seaborne trade due partners to joint
Slide 15: First Half Financial Review
First Half Financial Review Nikolay Kladiev Chief Financial Officer 15
Slide 16: Income Statement
INCOME STATEMENT Revenue (US$ million, unless otherwise stated) 1H 2024 1H 2023 Change 2H 2023 Change • Strong increase of sales volume as a result of improved access to Ukrainian Black Sea ports Total sales volume (mt) 3.85 2.08 85% 2.09 84% • Iron ore fines prices remained flat compared to 1H 2023
Slide 17: Underlying EBITDA Drivers
UNDERLYING EBITDA DRIVERS EBITDA development waterfall 1H 2024 US$m EBITDA EBITDA margin 300 224 (5) US$79M 14% (24) (98) Sales • Sales volumes increased 85% due to resumed shipping operations from Ukrainian Black Sea ports since January 2024 • Realised prices 15% lower mainly due to lower pellet pr
Slide 18: Production Costs
PRODUCTION COSTS 1H 2024 vs 1H 2023 1H 2024 C1 costs breakdown C1 Cash Costs Change vs 2H 23 US$78.8/t -4% • Energy-related costs accounting for the largest share at 45% • Approximately two thirds denominated in Ukrainian hryvnia • Benefit from the better fixed cost absorption due to the higher prod
Slide 19: Cash Flow Statement
CASH FLOW STATEMENT (US$ million, unless otherwise stated) 1H 2024 YE 2023 Change 1H 2023 Change Positive net cash flows from operating activities of US$56 million, including: Underlying EBITDA 79 99 (20%) 64 24% • Underlying EBITDA excluding operating foreign exchange gains of US$55 million (change
Slide 20: Balance Sheet
BALANCE SHEET Balance sheet maintained with slight improvement in year-end net cash position US$ million 1H 2024 YE 2023 Change 1H 2023 Change Assets • Stable balance of cash and cash equivalents – positive effects from higher Total assets, including 1,320 1,347 (2%) 1,383 (5%) sales volume offset b
Slide 21: Standing with Ukraine
Standing with UKRAINE