Slide 1: Australian Securities Exchange Notice
3 Australian Securities Exchange Notice 18 August 2022 ASX: DRR FY22 Financial Results and Outlook Presentation Deterra Royalties Limited (ASX: DRR) (Deterra or Company) is pleased to release a results and outlook presentation for its full year results for the financial year ended 30 June 2022 (FY22
Slide 2: Full Year Results and Outlook
Full Year Results and Outlook Financial Year 2022
Slide 3: Important notices and disclaimer
Important notices and disclaimer This presentation has been prepared by Deterra Royalties Limited (“Deterra”, “the Company”). By accessing this presentation you acknowledge that you have read and understood the following statement. The material in this presentation is general background information
Slide 4: Corporate overview
Corporate overview Share price1 $4.59 Managing Director, CEO Julian Andrews Shares on issue 528.5m Independent Non-Executive Chair Jenny Seabrook Market capitalisation $2.4bn Non-Executive Director Graeme Devlin Cash (30 June 2022) $27.5m Non-Executive Director Joanne Warner FY’22 Dividend Declared
Slide 5: Business Highlights
Business Highlights FY2022 was a year of robust organic growth for Deterra Assets Performing Positioning Prioritised Shareholder Strongly for Growth Returns Record MAC production of 111Mwmt Evaluated multiple opportunities Dividend policy • Up 80% on FY21 • Limited value on offer • Prioritise shareh
Slide 6: What we offer investors
What we offer investors MAC royalty covers a world class iron ore hub, Quality Operated by BHP the world’s largest mining company1 Margins 97% EBITDA Margin Dividends 100% of NPAT, Fully Franked paid to date2 South Flank expected to grow MAC volumes to 145Mwmtpa 3 Growth Patient and disciplined appr
Slide 7: A better way to invest in resources
A better way to “Top line” cashflows Commodity price leverage Project optionality invest in resources Royalty revenue Asset expansions Direct exposure to and extensions derived from Reduce operational exposure, asset’s revenue underlying commodity price. drive value of royalty line. capture upside i
Slide 8: Financial Results
Financial Results Simple business model continues to deliver strong financial performance
Slide 9: FY'22 Highlights
FY’22 Highlights Lean business model delivering strong financial performance REVENUE $265M EBITDA1 $257M 97% EBITDA MARGIN PAYOUT NPAT $178M 100% NPAT DIVIDENDS $178M 22.08¢/sh 33.76¢/sh Final (declared) Full-Year (1) See notes on slide 2 – Non-IFRS Measures. 8
Slide 10: Mining Area C Royalty Performance
Mining Area C Royalty Performance MAC reported significant increases in production volumes, up 78% on the prior year MAC quarterly receipts and implied sales price AUD million, A$/tonne (FOB, Australia) • BHP’s MAC operation has 30.6 performed strongly with Revenue royalty (A$M) 27.3 Capacity paymen
Slide 11: Simplified Income Statement
Simplified Income Statement Illustrative FY22 statement of profit or loss AUD million Total Costs $8.8 million1 Net Tax Impact $77.1 million MAC Royalty Revenue $218.8 million Total Revenue $265.2 million $178.5 million FY22 NPAT MAC Capacity Revenue $46 million Other $0.4 million (1) Total Costs of
Slide 12: Delivering strong shareholder returns
Delivering strong shareholder returns Continuing to build a track record of disciplined capital management and shareholder returns Dividend History AUD million Deterra’s capital management framework 116.7 • Prioritise returns to shareholders whilst Prioritise acknowledging the opportunity to invest
Slide 13: Capital structure for growth and returns
Capital structure for growth and returns The high-quality MAC cash flows and conservative capital management provides Deterra with strong capacity to fund growth and dividends Other New Royalty Cornerstone MAC Royalty Royalties Revenue New Royalty revenue = 1.232% of 5 x small investments Potential
Slide 14: Strategy and Outlook
Strategy and Outlook Maximise returns and grow value responsibly
Slide 15: Royalty and streaming company landscape
Royalty and streaming company landscape Deterra holds a leading position in the non-precious royalty streaming sub-sector Listed Royalty Companies1 Opportunity Pool of Non-Precious Focused Listed Existing Royalties2 Royalty Companies1 Total US$58bn market cap 29% of Existing Royalties Altius Mineral
Slide 16: Strategy focused on value-accretive growth
Strategy focused on value-accretive growth Deterra’s screening process and investment criteria prioritise opportunities where it has a competitive advantage Primary royalties How we prioritise opportunities Investment criteria Creating new royalties for: • Project capital Size Commodity Geography St
Slide 17: Positioned to grow in changing capital markets
Positioned to grow in changing capital markets Access to traditional funding sources is becoming more challenging U.S. High Yield Debt Issuance Global Equity Issuance 2019 2020 2021 2022 Annuals Quarters 2016 2011 3Q21 2012 2Q21 3Q22 2013 2014 2015 2017 2018 2019 2021 2022 1Q22 2Q22 2020 1Q21 4Q21 Y
Slide 18: Committed to sustainable shareholder returns
Committed to sustainable shareholder returns Our sustainability roadmap outlines our commitment to transparent reporting of our ESG performance and objectives Complete Next Steps • Established Climate Policy and achieved • Maintain emissions monitoring and net- net-zero operational GHG footprint zer
Slide 19: A better way to invest in the resources industry
A better way to invest in the resources industry Investment Proposition Our Business Model 1 Top-line exposure to one of the world’s best iron ore operations 2 Limited exposure to operating and capital cost inflation 3 Prioritised returns with 100% of NPAT dividend payout ratio, fully franked paid t
Slide 20: Appendix – Mining Area C
Appendix – Mining Area C 19
Slide 21: Our core asset – the Mining Area C Royalty
Our core asset – the Mining Area C Royalty The South Flank expansion is BHP’s newest and most technically advanced operation and will make Mining Area C the world’s largest iron ore hub, producing some of the lowest cost and lowest carbon emitting iron ore in the world. Low Costs Low Emissions Large
Slide 22: Our core asset – the Mining Area C Royalty
Our core asset – the Mining Area C Royalty Low risk exposure to a long-life operation with near term growth and potential for further extension Realising organic growth through South Further resource extension potential in a low-risk jurisdiction Flank expansion Mining Area C (MAC) royalty area2 Min
Slide 23: Investor and Media enquiries
Investor and Media enquiries Matthew Schembri Investor Relations Manager Mobile: + 61 (0) 427 821 380 Email: matt.schembri@deterraroyalties.com Brendan Ryan Chief Financial Officer Email: investor.relations@deterraroyalties.com Deterra Royalties Limited ACN 641 743 348 Level 5, 216 St Georges Terrac
Slide 24: Income statement
Income statement Statement of profit or loss 2022 2021 $’000 $’000 Royalty Revenue 265,155 145,209 Business Development (729) (237) Operating expenses (7,642) (4,604) Depreciation and amortization (393) (365) Demerger expenses - (4,637) Operating profit before finance cost 256,391 135,366 Net financ
Slide 25: Balance Sheet
Balance Sheet 2022 2021 $’000 $’000 $’000 Cash and cash equivalents 27,456 24,206 Trade and other receivables 113,220 54,955 Income tax assets 482 Prepayments 602 644 Total Current Assets 141,760 79,805 Royalties intangible assets 8,596 8,903 Other intangible assets 4 5 Property, plant, and equipmen
Slide 26: Underlying EBITDA and earnings adjustment
Underlying EBITDA and earnings adjustment Earnings and earnings adjustments1 2022 2021 $’000 $’000 Net Profit After Tax 178,462 94,260 add back income tax expense 77,070 40,875 add back income tax expense on acquired receivable - 6,512 Profit before tax 255,532 141,647 less Valuation gain on acquire