Kghm Polska Miedz S.a. · GPW:KGH

Kghm Polska Miedz — Investor Presentation (September 2020)

78 slides from Kghm Polska Miedz's investor presentation, September 2020

  1. Slide 1: Layers of possibilities – KGHM Group Investor Presentation

    Layers of possibilities KGHM Group Investor Presentation September 2020

  2. Slide 2: Cautionary statement

    Cautionary statement This presentation was prepared by KGHM Polska Miedź S.A. (KGHM). The presentation is strictly of an informational nature and should not be construed as containing investment advice. The users of this presentation are solely responsible for their own analysis and assessment of th

  3. Slide 3: Agenda

    Agenda 1. Key information about 2. Sustainable development 3. The KGHM Group the KGHM Group of the KGHM Group vs the sector 4. Production and financial 5. Advancement of 6. Additional slides, results of the KGHM Group the Group’s Strategy Q&A 3

  4. Slide 4: Actions by the KGHM Group during the COVID-19 pandemic

    We care, możliwości Pokłady we act, we protect Actions by the KGHM Group during the COVID-19 pandemic Selected internal procedures for protection and prevention  An informational campaign is underway  Procedures were introduced complying  Body temperature measurement was using the company’s exist

  5. Slide 5: We care, we act, we protect

    We care, możliwości Pokłady we act, we protect The company NITROERG produces The companies KGHM ZANAM and disinfectants. This liquid has already Mercus Logistyka are engaged in been provided to more than a producing protective masks for the thousand Polish hospitals, medical Voivodeship of Lower Sil

  6. Slide 6: We care, we act, we protect

    We care, możliwości Pokłady we act, we protect Miedziowe Centrum Zdrowia, a health services company in the KGHM Group, opened a special telephone hotline to provide medical advice through its clinics in several towns in the region. This is aimed at helping patients with consultations as respects pre

  7. Slide 7: Key information about the KGHM Group

    Key information about the KGHM Group

  8. Slide 8: KGHM Group in brief

    KGHM Group in brief One of the world’s largest producers of copper and 702 thousand tonnes A diversified portfolio of silver with nearly 60 years of of payable copper production assets at various stages of experience in mining and by the KGHM Group in 2019, development located in mining- metallurgy

  9. Slide 9: KGHM: a top ten copper producer and a leading Polish exporter

    KGHM: a top ten copper producer and a leading Polish exporter The Group has a global reach and plays a significant role on the global copper and silver markets Sixth Cu Second Ag largest largest copper silver producer producer Other KGHM Group products:  Molybdenum  Platinum  Copper  Lead  Rhen

  10. Slide 10: KGHM among the biggest copper and silver producers

    KGHM among the biggest copper and silver producers1) Mined Copper production 2019 2) Silver production 2019 3) 1,706 1,610 1,371 1,417 1,258 996 1,170 805 994 671 702 633 702 631 557 625 520 556 499 [kt] 523 [kmt] 1) KGHM results as reported in its consolidated financial statement 2019 2) Mines and

  11. Slide 11: A proud history of mining and metallurgy

    A proud history of mining and metallurgy Discovery of the copper deposit brought about a fundamental change in the region’s economy thanks to the growth of KGHM Polska Miedź S.A. As a result of M&A activities, capped by the acquisition of Quadra FNX, KGHM became a truly global copper producer aimed

  12. Slide 12: Core production assets in Poland – stable output and earnings

    Core production assets in Poland – stable output and earnings Underground copper mines, fully integrated production Polkowice-Sieroszowice Mine Legnica Smelter and Refinery 36 years LOM LME grade A-registered cathodes  Copper production in 2019 (payable): Capacity of ~120 kt electrolytic Cu/year 1)

  13. Slide 13: Key international assets

    Key international assets Existing operations and growth potential from projects Producing assets Potential growth projects Sierra Gorda (55% stake), Chile Sierra Gorda Oxide, Chile 24 years LOM 2019 production stats: 11 years LOM  Open-pit mine  Cu production  The project aims at processing the o

  14. Slide 14: Sierra Gorda

    Sierra Gorda Sierra Gorda is an open pit copper and molybdenum mine located in Chile’s Antofagasta region in the Atacama desert. Sierra Gorda is a Joint Venture of:  KGHM Polska Miedź S.A. – 55% share  Sumitomo Metal Mining – 31.5% share  Sumitomo Corporation – 13.5% share Schedule of Sierra Gord

  15. Slide 15: Sustainable development

    Sustainable development

  16. Slide 16: Copper - a strategic material for a carbon neutral and circular economy

    Copper production: Pokłady możliwości emissions and impact on climate transformation Arguments for using copper as a carbon-neutral metal Copper - a strategic material for a carbon neutral and circular economy in Europe 0.4% CIRCULAR ECONOMY ENERGY TRANSITION AND DIGITISATION -75% A circular metal C

  17. Slide 17: Sustainable development of the raw materials industry

    Sustainable Pokłady development of the raw materials industry możliwości 09 INNOVATION, INDUSTRY, INFRASTRUCTURE – a global challenge of the modern world 08 ECONOMIC GROWTH AND DECENT WORK KGHM as a signatory of Agenda 2030 operates on the basis of the 07 CLEAN AND principles of sustainable developm

  18. Slide 18: Sustainable value chain

    Sustainable value chain Responsible Supply Chain Policy of the KGHM Group Logistics Responsible Supply Chain Policy Extraction Commerce of the KGHM Group Rational deposits management Reduction of emissions, Commerce based - Intelligent production making logistics structures on Fair Trade Code of Eth

  19. Slide 19: Ethical Standards

    Ethical Standards KGHM Polska Miedź S.A. We follow We avoid the principle of We take responsibility conflicts “Zero tolerance for the quality of our of interests for corruption”. products and services We care about the We care about security of information our Company’s property and personal data an

  20. Slide 20: People and the Environment as a strategic area in the KGHM Group

    People and the Environment as a strategic area in the KGHM Group Strategy for 2019 – 2023 LTIFR and TRIR ratios1) TRIR ratio in KGHM INTERNATIONAL LTD. People and the Environment LTIFR ratio in KGHM Polska Miedź S.A. 10 18.6 Decrease over 20.0 15.4 the last 10 years  Main target – growth based on t

  21. Slide 21: Emissions by the divisions of KGHM Polska Miedź S.A.

    Emissions by the divisions of KGHM Polska Miedź S.A. SO2 and dust emissions1) SO2 emissions by KGHM Polska Miedź S.A. Dust emissions by KGHM Polska Miedź S.A. [tonnes] [tonnes] 80,000 –81% Reduction of SO emissions over the last 10 years 2 12,000 –83% Reduction of dust emissions over the last 10 yea

  22. Slide 22: Emissions by the divisions of KGHM Polska Miedź S.A.

    Emissions by the divisions of KGHM Polska Miedź S.A. Lead and copper emissions Lead emissions by KGHM Polska Miedź S.A. Copper emissions by KGHM Polska Miedź S.A. [tonnes] [tonnes] 400 350 350 300 –78% Reduction of lead emissions –71% Reduction of copper emissions 300 250 over the last 20 years over

  23. Slide 23: Pro-ecological investments and environmental fees

    Pro-ecological investments and environmental fees KGHM Group Over spent in 2019 by KGHM [incl. the largest expenses of over PLN 44 million incurred on replacing 229 on investments to the absorption and drying towers of the protect the natural sulphuric acid plant at the Legnica Copper million PLN en

  24. Slide 24: Pro-ecological investments and environmental fees

    Pro-ecological investments and environmental fees KGHM INTERNATIONAL Activities carried out by the entities of the KGHM INTERNATIONAL Group in 2019 related to environmental protection PLN 28 million PLN 1 million Robinson Mine (USA) Sudbury Basin (Canada) including PLN 3 million due to environmental

  25. Slide 25: Energy development program

    Energy development program Renewable energy Optimisation and R&D of Competence sources development of gas alternative building development fired units options  Photovoltaic  Power production  Waste heat utilisation  Adjusting company - 200 ha of own lands increase in existing from metallurgy and

  26. Slide 26: First photovoltaic projects

    First photovoltaic projects Design phase Pre-design phase Głogów PV1) 1. HMG Lubin 4 MW Głogów Copper 3. Wierzba I Smelter and Refinery Start of production Legnica Wrocław 16 MWp2) at the willow3) plantation Q3 2021 PV 2. Piaskownia Obora 4. Wierzba II 5 MW in the reclamation 50 MWp at the area of t

  27. Slide 27: ESG - a new dimension of sustainable development

    ESG - a new dimension of sustainable development in the field of reporting environmental, social and corporate activities Protection of human rights, operating with respect for the natural environment, responsible supply chain management and transparency in relations with stakeholders are crucial to

  28. Slide 28: The KGHM Group vs the sector

    The KGHM Group vs the sector Macroeconomic environment

  29. Slide 29: Macroeconomic environment

    Macroeconomic environment Commodities and currencies prices Despite the outbreak of the COVID-19 pandemic the copper price returned to its level at the start of the year, Price (USD/t) Cena Cena Price (PLN/t) (USD/t) Annual Śr. Śr. av.(USD/t) roczna roczna Annual (USD/t) av.(PLN/t) (USD/t) while sil

  30. Slide 30: Precious metals prices and ETF assets

    Higher precious Pokłady metals prices due to investor flight towards safe assets. możliwości A greater scope of quantitative easing by central banks. The change in silver prices had matched that of gold by the start The appreciation in the assets of ETFs since June 2019 by 59% (for of the second hal

  31. Slide 31: Economic activity in H1 2020 at record lows in most countries

    Economic activity in H1 2020 at record lows in most countries An improvement in PMI numbers in June 2020 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20

  32. Slide 32: Economic growth forecasts by the IMF in June 2020

    Economic Pokłady growth forecasts by the IMF in June 20201) możliwości Eurozone Poland Canada 22019: 4.1% 2019: 1.6% 2019: 1.2% 2020F: -10.2%  -2.7 p.p. 2020F: -4.6%  -7.7 p.p. 2020F: -8.4%  -2.2 p.p. 2021F: 4.2% 2021F: 4.9%  +0.7 p.p. 2021F: 6.0%  +1.3 p.p. World 2019: 2.9% 2020F: -4.9%  -1.9

  33. Slide 33: World Uncertainty Index

    Pokłady możliwości The coronavirus pandemic overlapped a series of events which increased uncertainty Cięcia fiskalne in the world’s economies 60,000 w USA i kryzys PIIGS w Europie World Uncertainty Index (WUI) COVID-19 pandemic Fiscal cuts in the 50,000 US and PIIGS Crisis resulting from crisis in

  34. Slide 34: The production of miners in the first half was under heavy pressure

    The production of miners in the first half was under heavy pressure Copper production by miners, H1 2020 vs H1 2019 5% -0.3% -2% -2% -4% -4% -5% -7% -11% -12% 0% +3% +2% -5% -10% -15% Codelco BHP Billiton KGHMGK KGHM KGHMKGHM PM S.A. Anglo American Anglo Antofagasta Freeport Rio Tinto Vale Glencore

  35. Slide 35: Production and financial results of the KGHM Group

    Production and financial results of the KGHM Group Part I: 5 years data

  36. Slide 36: Key production data – 5 years (KGHM Polska Miedź S.A.)

    Key production data – 5 years KGHM Polska Miedź S.A. Ore extraction Production of copper Production of Metallic silver production [mn t dry weight] in concentrate electrolytic copper [t] [kt] [kt] 574 566 536 426 424 419 522 502 1,400 401 1,283 31.6 32.0 31.2 30.3 29.9 399 1,191 1,218 1,189 2015 201

  37. Slide 37: Key production data – 5 years (Sierra Gorda)

    Key production data – 5 years Sierra Gorda1) Payable copper production Silver production [kt] [t] 7.7 14.1 14.0 14.5 14.6 2015 2016 2017 20182 2018 59.5 51.5 53.4 53.3 TPM2) production 46.3 [koz t] 28.0 23.2 31.2 12.8 22.9 2015 2016 2017 2018 2019 Molybdenum production [mn lbs] 19.7 12.2 14.7 11.2 6

  38. Slide 38: Key production data – 5 years (KGHM International)

    Key production data – 5 years KGHM INTERNATIONAL Payable copper production Silver production [kt] [t] 1.6 2.4 1.6 1.7 1.6 2015 2016 2017 2018 2019 97.6 TPM production 89.8 81.0 [koz t] 78.8 76.5 95.3 92.1 74.0 67.6 85.2 2015 2016 2017 2018 2019 Molybdenum production [mn lbs] 1.0 0.9 0.8 0.7 0.6 2015

  39. Slide 39: Sales revenue and net profit – 5 years

    Sales revenue and net profit – 5 years KGHM Group Revenues Net profit [mn PLN] [mn PLN] 22 723 20 008 20 358 20 526 19 156 1,658 1,525 1,421 * 1,202 1,225 * 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 * Net profit of 2015 and 2016 excluding impact of impairment of non-current assets, loans and

  40. Slide 40: EBITDA and EBITDA margin – 5 years

    EBITDA and EBITDA margin – 5 years KGHM Group EBITDA by segments 1) EBITDA margin 2) [mn PLN] [%] KGHM Polska Miedź S.A. KGHM INTERNATIONAL Sierra Gorda (55%) Others 5,753 4,972 5,229 26 4,710 4,666 23 23 22 21 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 1) Sum of segments; adjusted EBITDA = E

  41. Slide 41: Net debt and net debt/EBITDA ratio – 5 years

    Net debt and net debt/EBITDA ratio – 5 years KGHM Group Net debt Net debt/adjusted EBITDA [mn PLN] [ratio] 7 262 7 000 6 891 6 554 6 577 1.6 1.6 1.5 1.4 1.3 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 41

  42. Slide 42: Basic items of the consolidated financial statements

    Basic items of the consolidated financial statements KGHM Group KGHM Group – consolidated data 2015 2016 2017 2018 2019 Sales revenue [mn PLN] 20 008 19 156 20 358 20 526 22 723 Profit/(loss) for the period [mn PLN] -5 009 -4 449 1 525 1 658 1 421 Total assets [mn PLN] 36 764 33 442 34 122 37 237 39

  43. Slide 43: Production and financial results of the KGHM Group – H1 2020

    Production and financial results of the KGHM Group Part II: H1 2019

  44. Slide 44: Summation of the first half of 2020 in the KGHM Group

    Summation of the first half of 2020 in the KGHM Group Main events and factors affecting the results of the Group1) in the age of the COVID-19 pandemic Macroeconomic environment Production and C1 cost Financial results -11% -0.3% -2% Copper price Copper production Revenues: PLN 10 948 mn +9% -1% -3%

  45. Slide 45: Metals production

    Metals production KGHM Group  Slightly lower production of electrolytic Silver production Payable copper production [t] copper by KGHM Polska Miedź S.A. due [kt] -1% H/H to lower processing of own concentrate 713 708 and the build-up of anode inventories -0.3% H/H due to the planned maintenance shu

  46. Slide 46: Production results

    Production results KGHM Polska Miedź S.A. Ore extraction Production of copper Electrolytic copper Metallic silver [mn t dry weight] in concentrate [kt] production [kt] production [t] –2.0% H/H –0.7% H/H -2.1% H/H -1.4% H/H 200 287 281 15.1 14.8 199 From 705 695 purchased 49.1 48.5 79 75 metal-bearin

  47. Slide 47: Change in inventories

    Change in inventories KGHM Polska Miedź S.A. Inventories of copper in concentrate at the smelters amount of Cu [t] +2% Q2/Q1 24,277 14,886 15,153  Slight rise in concentrate inventories due to the start of the planned maintenance shutdown at the Głogów I smelter Q4 2019 Q1 2020 Q2 2020 Inventories

  48. Slide 48: Production results – Sierra Gorda

    Production results Sierra Gorda1) Payable copper production Silver production +76% H/H [kt] [t] 12.5 +34% H/H 6.8 7.1 3.5 39.2  Higher extraction by 29.2 Q2 2019 Q2 2020 H1 2019 H1 2020 the Sierra Gorda mine 20.2 lead to higher 14.5 TPM production +12% H/H production of copper, [koz t] silver and g

  49. Slide 49: Production results – KGHM International

    Production results KGHM INTERNATIONAL Payable copper production Silver production -31% H/H [kt] [t]  Lower silver production 1.1 in the Sudbury Basin due -14% H/H 0.8 0.5 0.3 to lower extraction and lower silver content in 36.0 ore 30.7 Q2 2019 Q2 2020 H1 2019 H1 2020  Lower gold production by 19.

  50. Slide 50: Sales revenue

    Sales revenue KGHM Group Revenues from contracts with customers -2% H/H Revenues from contracts with [mn PLN] customers [mn PLN] 11,228 +538 10,948 11,228 10,948 -29 -57 983 782 -732 1,414 1,269 Revenues Change in sales Change in prices Change in Other Revenues H1 2019 volumes of basic of basic prod

  51. Slide 51: Sales revenue – KGHM Polska Miedź S.A.

    Sales revenue KGHM Polska Miedź S.A. Higher revenues from sales by PLN 66 million (+1%) in H1 2020 compared Sales revenue to H1 2019 due to : [mn PLN]  a more favourable USD/PLN exchange rate (+6%) and +1% H/H  higher prices of silver (+9%) and gold (+26%) 8,831 8,897  alongside less favourable c

  52. Slide 52: The financial situation of the KGHM Group remains stable and safe

    The financial situation of the KGHM Group remains stable and safe 2020 Budget Total unit production cost of electrolytic copper from own concentrate KGHM Polska Miedź S.A.1) 19.3 [k PLN/t] 17.6 Investments Capital expenditures 1 024 2 250 KGHM Polska Miedź S.A.2) [mn PLN] Other expenditures, includi

  53. Slide 53: C1 unit cost

    C1 unit cost1) KGHM Group C1 – KGHM Polska Miedź S.A. C1 – Group [USD/lb]  The decrease in C1 cost in KGHM [USD/lb] 1.81 -12% H/H 1.59 incl.the minerals Polska Miedź S.A. by 12% versus extraction 0.54 0.38 tax the first half of 2019 was mainly -10% H/H 1.27 1.21 due to a weakening of the PLN vs the

  54. Slide 54: Expenses by nature

    Expenses by nature KGHM Polska Miedź S.A.  Expenses by nature were lower by PLN 284 million (4%) Expenses by nature [mn PLN] mainly due to lower costs of consumption of purchased -4% H/H metal-bearing materials by PLN 259 million and a lower 7 433 minerals extraction tax charge by PLN 188 million 7

  55. Slide 55: Operating results

    Operating results KGHM Group Change in adjusted EBITDA1) Adjusted EBITDA [mn PLN] [mn PLN] -3% H/H 2,732 +12 +79 +2 2,651 2,732 2,651 128 130 -174 349 428 336 162 1,919 H1 2019 KGHM KGHM Sierra Other H1 2020 1,931 Polska Miedź S.A. INTERNATIONAL Gorda H1 2019 H1 2020  Lower adjusted EBITDA of the G

  56. Slide 56: Financial results – profit for the period

    Financial results KGHM Group Profit for the period PLN 699 million -28% H/H [mn PLN] consolidated net profit for H1 2020 Group profit for the period lower by PLN 271 million (-28%) mainly due to:  a lower result on operating activities  a lower result on involvement in joint ventures  a lower res

  57. Slide 57: EBITDA and profit for the period

    EBITDA and profit for the period KGHM Polska Miedź S.A. Adjusted EBITDA Profit for the period Similar EBITDA with [mn PLN] [mn PLN] lower net profit +1% H/H -39% H/H 1,919 1,931  EBITDA at a similar level to 1,227 that achieved in H1 2019 747  Lower net profit of PLN 480 million (-39%) than in H1

  58. Slide 58: Cash flow

    Cash flow KGHM Group [mn PLN] + 432 + 778 +1 107 - 386 +1 010 1,951 - 135 - 83 1,016 -1 581 - 207 Cash as at Profit/loss before Exclusion of Income tax paid Change in Acquisition of Acquisition of Proceeds Interest paid Other Cash as at 31 Dec 2019 income tax income and costs working capital propert

  59. Slide 59: Net debt of the KGHM Group

    Net debt of the KGHM Group As at the end of Q2 2020 Net debt / adjusted EBITDA Main factors affecting interest-bearing debt in the first 6 months of 2020 1.8 1.5 1.6 (Increases in debt)  Cash expenditures on property, plant and equipment (PLN 1 582 mn)  The minerals extraction tax (PLN 678 mn) 30-

  60. Slide 60: Advancement of the KGHM Group's strategy

    Advancement of the KGHM Group’s strategy

  61. Slide 61: 4 strategic directions for KGHM's development

    4 strategic Pokłady directions for KGHM’s development możliwości The review of the Strategy of KGHM Polska Miedź S.A. for 2019-2023 # 4E ELASTICITY, EFFICIENCY FLEXIBILITY ECOLOGY, SAFETY AND SUSTAINABLE E-INDUSTRY DEVELOPMENT 61

  62. Slide 62: Strategic priorities

    Strategicmożliwości Pokłady priorities #1 Higher #2 Energy #3 International assets 2.0 #4 Long-term production independence financial strategy #5 Ecosystem #6 Technologies #7 New quality innovation of the future Safety and for KGHM development 62

  63. Slide 63: Strategy in practice (1)

    Strategy możliwości Pokłady in practice Selected key operating initiatives (1) AREA MAIN TARGET SELECTED EFFECTIVENESS MEASURES Maintenance of cost-effective domestic and foreign production Level of production in Poland of Average yearly Yearly average of daily ore mined Cu in ore with an annual C1

  64. Slide 64: Strategy in practice (2)

    Strategy możliwości Pokłady in practice Selected key operating initiatives (2) AREA MAIN TARGET SELECTED EFFECTIVENESS MEASURES Increase the efficiency of the KGHM Group through innovation Increase expenditures on Ensure that all of the innovation Level of funds for R&D and innovation and R&D work p

  65. Slide 65: Strategy in practice (3)

    Strategy możliwości Pokłady in practice Selected key operating initiatives (3) AREA MAIN TARGET SELECTED EFFECTIVENESS MEASURES Implementation of systemic solutions aimed at increasing Ensure financial stability of Increase in the efficiency of Minimum level of achievement the KGHM Group’s the Polis

  66. Slide 66: Consistent advancement of the strategy

    Consistent advancement of the strategy Key areas – 4E  Rational management of the Company’s resources Adaptation of the operating  Optimisation of metallurgical production Elasticity/ model for the KGHM Group  Exploration projects in Poland Flexibility to market conditions  Optimisation of the i

  67. Slide 67: A consistent and rational investment program

    A consistent and rational investment program Capital expenditures by KGHM Polska Miedź S.A. for the first half of 2020 CAPEX execution in H1 2020 by area by category Mining (67%) Replacement (28%) Metallurgy (27%) Maintaining mine production (36%) Other activities (1%) Mine development (34%) Leasing

  68. Slide 68: Selected development projects

    Selected development projects CAPEX execution in H1 2020 PLN 193 million PLN 6.8 million PLN 12.5 million Deposit Access Program KGHM 4.0 Program Exploration projects  The project „Locating persons and machines in the – in the following concessions:  20.4 km of tunneling were excavated underground

  69. Slide 69: Supporting slides

    * ‘= ae OR a Le ‘ep Te yt oS ae - ae Nat a ; Ls % ‘56 ene * r ae any Ser te gs i ok GHM ¢ Polska HLeD es F Son ge Se DRS ge . ar 52 sapperting slides

  70. Slide 70: Reasons to invest in KGHM

    Reasons to invest in KGHM A leading player on the copper A reliable producer, and silver market in terms of mine A diversified portfolio of assets at a trusted business partner output and size of documented various stages of development to and a company committed to resources, in mining-friendly gua

  71. Slide 71: Transparent Group structure

    Transparent Group structure General Shareholders Meeting Supervisory Board Management Board KGHM Polska Miedź S.A. (Lubin, Poland) (Listed on Warsaw Stock Exchange since 1997) KGHM International Ltd. Production Development Group of subsidiaries (Vancouver, Canada) Development divisions projects Oper

  72. Slide 72: Committed to solid corporate governance

    Committed to solid corporate governance Independent directors on the board KGHM’s Corporate Governance is guided by international standards and follows best practices:  All members of KGHM’s Supervisory Board are appointed by 2 Independent Directors the General Shareholders Meeting Other Directors

  73. Slide 73: Shareholder structure of KGHM Polska Miedź S.A.

    Shareholder structure of KGHM Polska Miedź S.A. Ownership structure Geographical ownership structure [% of shares] No. of Percentage Share in Shareholder shares/ of share total number votes capital of votes Rest of the Americas Polish State Treasury 63,589,900 31.79% 31.79% 0.4% Nationale-Nederlande

  74. Slide 74: Share price performance

    Share price performance Basic quotes Strong correlation with copper and silver KGHM [change in %] Cu 210% Ag 200% WSE debut 10th July 1997 190% 180% 75 GPW ticker KGH 170% 160% 50 150% Bloomberg/Reuters ticker KGH PW / KGH.WA 140% 130% 25 Share price [PLN] 136.25 120% 110% 0 100% Capitalization [bn

  75. Slide 75: Market risk management – copper hedging

    Market risk management Hedged position on the copper market (as at 30 June 2020) Copper In 1H 2020 KGHM Polska Miedź S.A. [tonnes] Pozycja Hedgedzabezpieczająca position – as at -31 stan Decna2019 31.12.2019 recorded a result on derivatives* and Pozycja otwartaas Open position naat31.12.2019 31 Dec

  76. Slide 76: Market risk management – silver, currency and interest rates

    Market risk management Hedged positions on the silver, currency and interest rate markets (as at 30 June 2020) USD/PLN [mn USD] Hedged Pozycja position – as at- 31 zabezpieczająca Dec stan na2020 31.12.2020  At the end of the first half of 2020, Hedged Pozycja position implemented zabezpieczająca i

  77. Slide 77: CO2 emissions by KGHM Polska Miedź S.A.

    CO2 emissions by KGHM Polska Miedź S.A. ETS1) direct emissions + nonETS [kt CO2] 2,000 Scope 1 emissions [kt CO2e] 1,800 1,600 1,692 1,678 1,539 1,532 1,521 1,519 1,508 1,400 1,492 1,489 1,482 1,481 1,476 1,470 1,466 1,407 1,200 1,000 800 600 400 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 20

  78. Slide 78: Thank you

    Follow us on Thank you social media: Investor Relations Departament kghm.com/en/investors ir@kghm.com +48 76 74 78 280

KGHM Polska Miedź — Investor Presentation (September 2020) on 6ix