Slide 1: 1H 2016 Interim Results Presentation
1H 2016 INTERIM RESULTS PRESENTATION Supplying the world with iron ore pellets for over 35 YEARS
Slide 2: Disclaimer
DISCLAIMER This document is being supplied to you solely for your information and does not constitute or form any governmental or regulatory body without the prior written consent of the Company. part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to Cert
Slide 3: Michael Abrahams CBE DL, Chairman
MICHAEL ABRAHAMS CBE DL, CHAIRMAN 3
Slide 4: Chris Mawe, CFO
C H R I S M AW E , C F O 4
Slide 5: 1H 2016 Results Demonstrate Resilience & Quality of Business
1 H 2 0 1 6 R E S U LT S D E M O N S T R AT E R E S I L I E N C E & Q U A L I T Y O F BUSINESS SUMMARY FINANCIALS $M (unless otherwise stated) 1H 16 1H 15 Change 2015 – Excellent operational performance Production from own ore (kt) 5,700 5,503 4% 11,258 • Record production from own ore in 1H period
Slide 6: Strong Performance Due to Higher Sales of Premium Product, Lower Freight & Cost Reductions
STRONG PERFORMANCE DUE TO HIGHER SALES OF PREMIUM P R O D U C T, L O W E R F R E I G H T & C O S T R E D U C T I O N S EBITDA COMPARISON EXCLUDING NON-CASH OPERATING FOREX GAIN 1H 2015 VS. 1H 2016 ($M) 200 180 6 13 160 140 49 44 23 23 8 120 100 176 163 80 160 60 40 20 0 1H 2015 Oper forex 1H 15 EBIT
Slide 7: Strong Cash Generation
S T R O N G C A S H G E N E R AT I O N CASH FLOW 1H 2016 VS. 1H 2015 $M (unless otherwise stated) 1H 16 1H 15 Change 2015 – Notable working capital improvement in 1H 2016 EBITDA 160 176 -9% 313 • Lower net trade receivables/account payables Operating FX gains (non-cash) -2 -15 -87% -26 • Lower pelle
Slide 8: Debt Maturity Profile Easing in 1H16 and 2017
D E B T M AT U R I T Y P R O F I L E E A S I N G I N 2 H 2 0 1 6 A N D 2 0 1 7 DEBT MATURITY PROFILE AS OF 30 JUNE 2016 – Repaid $420M PXF facility in full - final payment July 2016 ECA, Leasing PXF-1 PXF-2 Bond – Secured new trade finance lines in 1H 2016 300 Repaid 273 – 2H 2016 debt amortisation
Slide 9: Conclusion to Financial Review
CONCLUSION TO FINANCIAL REVIEW - Excellent results - EBITDA in line with prior year - Net cash flow from operating activities $142M - Net debt reduced by $115M - Cash increased by $9M - Well placed to continue deleveraging in 2H 2016 9
Slide 10: Kostyantin Zhevago, CEO
KOSTYANTIN ZHEVAGO, CEO Town of Horishni Plavni qd) FERREXPO™
Slide 11: Significant Cost Reductions
SIGNIFICANT COST REDUCTIONS 1H 2016 C1 CASH COST AT RECORD LOW C1 COST REDUCED 23% TO US$25.7 PER TONNE 60 59.7 59.8 – Electricity prices reflect local inflation 50.7 50 42.4 45.9 – Year on year CPI reducing significantly 39.7 40 34.4 – 2H 2016 increased stripping at FPM, in line with 5 year mine pl
Slide 12: Increased Volumes and Quality from Own Ore
INCREASED VOLUMES AND QUALITY FROM OWN ORE RECORD VOLUMES OF HIGHER QUALITY OUTPUT 140 100% % of 65% Fe production Total Fe output Linear (Total Fe output) 90% % of 65% Fe production from own ore 130 80% Total Fe output rebased to 100 70% 120 60% 110 50% 40% 100 30% 20% 90 10% 80 0% 1H 2011 2H 2011
Slide 13: Marketing Continues to Perform Well
MARKETING CONTINUES TO PERFORM WELL SERVICING THE WORLD’S TOP STEEL MILLS CONTINUALLY STRENGTHENING CUSTOMER PORTFOLIO 1H 2016 SALES DATA: SALES VOLUME BY COUNTRY 6,000 53% 5,000 46% Sales volumes (000 tonnes) 1H 2015 1H 2016 4,000 3,000 24% 2,000 17% 18% 13% 1,000 9% 8% 6% 6% 0 2007 2008 2009 2010
Slide 14: Ferrexpo Is a Top Supplier in a Premium Market
FERREXPO IS A TOP SUPPLIER IN A PREMIUM MARKET P E L L E T S U P P LY I N D E F I C I T TOP PELLET EXPORTERS 1H 2016 EXPORT SUPPLY Million tonnes 2016 F Million tonnes 1H 16 1H 15 Change 2H 15 Vale (Brazil + Oman) 40.0 South America 16.5 28.3 -42% 25.5 LKAB (Sweden) 19.0 North America 11.2 11.3 -1%
Slide 15: Outlook
OUTLOOK - One of the lowest cost pellet producers in the world - Pellet premiums remain well supported due to lower supply - Operations continue uneffected by situation in Ukraine - Well placed to generate positive operating cash flows throughout the cycle - Priority remains to reduce debt STRONG EB
Slide 16: Thank You – Questions?
=O 2 ees Bs 1 aes |) | Lea Nd THANK YOU — QUESTIONS? FERREXPO