Slide 1: Full Year Financial Results (2021)
FERREXPO PLC FULL YEAR FINANCIAL RESULTS (2021) Results Presentation 22 April 2022 Ferrexpo PLC | FY Results 2021 Presentation
Slide 2: The Situation in Ukraine
THE SITUATION IN UKRAINE SUPPORTING UKRAINE AT THIS DIFFICULT TIME - The world is witnessing a brutal invasion being waged by Russia against the people of Ukraine. - In the face of Russian invasion of Ukraine, Ferrexpo continues to support its workforce, their families and communities throughout the
Slide 3: Ferrexpo – Proudly Ukrainian
FERREXPO – PROUDLY UKRAINIAN IN SOLIDARITY WITH UKRAINE MAJOR EMPLOYER LOGISTICS WESTERN BORDER CROSSING Kyiv +10,000 FERREXPO’S ASSETS HAVE OPERATED FOR MORE THAN 50 YEARS AND THE GROUP HAS A WORKFORCE OF MORE THAN 10,000 PEOPLE. FERREXPO OPERATIONS MINING & PROCESSING COMPLEX EXPORT Insert REVENUE
Slide 4: 2007-2022: 15 Years of Investing in Growth Since IPO
2007-2022: 15 YEARS OF INVESTING IN GROWTH SINCE IPO FOCUSED ON HIGH GRADE IRON ORE INCREASING OUTPUT HIGH GRADE PRODUCTION +25% Over US$3.0 billion of investment has 100% High grade products1, including the enabled output to grow from 9 million Group’s latest product – direct tonnes in 2007 to over
Slide 5: Financial Review
FINANCIAL REVIEW Overview of financial performance in 2021 Image: sunset at the Yeristovo mine, with this image showing a CAT 793D with a recently installed lightweight tray that serves to help improve productivity and reduce diesel consumption. Ferrexpo PLC | FY Results 2021 Presentation
Slide 6: FY21 Review: Income Statement
FY21 REVIEW: INCOME STATEMENT ROBUST PERFORMANCE REFLECTS INVESTMENTS TO DATE (USD million, unless stated) 2021 2020 % Sales volume (million tonnes) 11.3 12.1 (6%) Lower sales volumes reflects completion of destocking process in 2020. Iron ore fines price (US$/T)1 186 122 +53% Revenue reflects inves
Slide 7: FY21 Review: Cash Flow Statement & Balance Sheet
FY21 REVIEW: CASH FLOW STATEMENT & BALANCE SHEET A BALANCED APPROACH TO CAPITAL ALLOCATION (USD million, unless stated) 2021 2020 % Net cash flows from operating activities 1,094 687 +59% Net cash flows from operations increasing in line with profit after tax. Including: Increase in trade and other
Slide 8: EBITDA: Key Drivers in 2021
EBITDA: KEY DRIVERS IN 2021 MARKET FACTORS HELP DELIVER INCREASE IN EARNINGS EBITDA: Waterfall Progression Market factors contribute an additional US$859M of EBITDA 2,000 285 136 in 2021. 100 162 Reduced sales volumes reflect 710 82 99 destocking process completed 1,500 1,439 in 2020. C1 cash costs
Slide 9: C1 Cash Costs: Key Drivers in 2021
C1 CASH COSTS: KEY DRIVERS IN 2021 COMMODITY INPUTS DRIVE COST INCREASE C1 Cash Cost: Waterfall progression C1 Cash Cost Structure (2021) 60.0 0.6 0.04 55.8 Royalties Others 2.3 11.3 Personnel 6% 3% 8% Electricity 23% 41.5 40.0 US$ per tonne Consumables 15% 2021: US$55.8/T 20.0 41.5 (2020: US$41.5/T
Slide 10: Market Review
MARKET REVIEW Overview of iron ore marketing in 2021 Image: loading of a CAT 793D haul truck at the Yeristovo Mine. The Group has commenced a project to automate haul trucks at its Yeristovo mine, with the first phase of this project (consisting of 6 trucks) undertaken in 2021. Ferrexpo PLC | FY Res
Slide 11: Market Demand in 2021
MARKET DEMAND IN 2021 RETURN TO HISTORIC CUSTOMER BALANCE Sales distribution in 2021 saw a return to similar SALES SPLIT (% TOTAL SALES, 2019-2021) distribution to that seen prior to Covid-19 pandemic. - Sales mix in 2021 largely mirrors 2019 distribution. - European markets recovering faster than A
Slide 12: Market Dynamic in 2021
MARKET DYNAMIC IN 2021 VOLATILE PRICING ENVIRONMENT IRON ORE MARKET INDICES (2021) Key events in 2021: - Rising demand for iron ore fines in H1 as governments inject Covid- 300 19 related stimulus. - Decrease in iron ore fines pricing 250 in H2 as Chinese government 1 enacts measure to taper market
Slide 13: Markets in Q1 2022
MARKETS IN Q1 2022 ROBUST MARKET DYNAMIC SEEN IN STEEL VALUE CHAIN Iron ore fines price1 Pellet Premiums2 Freight Rates3 Steel prices +US$28/t +US$12/t +US$4/t +57% 200 70 30 2,000 150 60 1,500 25 100 50 1,000 20 50 End- End- 40 Dec- Mar- End- End- 500 End- End- Dec Mar 21 22 Dec Feb Dec Mar 0 30 15
Slide 14: Operational Review
OPERATIONAL REVIEW Review of production in 2021 Image: view over Ferrexpo’s Yeristovo mine. Ferrexpo PLC | FY Results 2021 Presentation
Slide 15: Workforce Safety and Wellbeing
WORKFORCE SAFETY AND WELLBEING SAFETY THE TOP PRIORITY DURING RUSSIA’S INVASION OF UKRAINE LOST TIME INJURY RATES SAFETY CONSIDERATIONS DURING RUSSIAN INVASION (PER MILLION HOURS WORKED) OF UKRAINE (2022) 1.8 - Safety of the Group’s employees remains a key priority. - Operations continue following r
Slide 16: Production Overview
PRODUCTION OVERVIEW FOCUS ON HIGH GRADE IRON ORE PELLETS PRODUCTION VOLUMES HIGH QUALITY PRODUCTION EXPANSION PROJECTS PAUSED 11.2MT 100% WAVE 1 Production result in 2021 in line with Pivot to high grade (65% Fe and In light of the conflict in Ukraine, the 2020, despite pelletiser upgrade work above
Slide 17: ESG Overview
ESG OVERVIEW Responsible Business Activities in 2021 Image: Since 2015, Ferrexpo has used sunflower husks as a biofuel in its pelletiser, with this activity serving to partially substitute the use of natural gas. In 2021, the Group’s use of sunflower husks represented 18% of total pelletiser energy
Slide 18: Sustainability Overview
SUSTAINABILITY OVERVIEW SUSTAINABLE PRACTICES THROUGHOUT OUR BUSINESS SAFETY: Maintaining safety performance below our peer group and historical average. BIOFUELS: Utilising biofuels in our pelletiser, helping to reduce carbon emissions by 16% for the second successive year. SOLAR POWER: 5MW trial s
Slide 19: Community Support
COMMUNITY SUPPORT LOOKING TO PROVIDE TIMELY AND EFFECTIVE ASSISTANCE Ferrexpo Humanitarian Fund established in response to the war in Ukraine - US$12.5 million of approved funding1 to support those affected by the humanitarian crisis in Ukraine. - Projects are varied in scale and nature, responding
Slide 20: Climate Change
CLIMATE CHANGE REDUCING EMISSIONS TODAY & LOOKING TO THE FUTURE Process underway with climate change specialists Ricardo plc to develop a bespoke net zero pathway. Carbon reduction (2021) Carbon reduction to date Modules underway: - Module 1 – government regulation (risks & 16% Scope 1 and 2 emissio
Slide 21: Governance: Updated Board and Management
GOVERNANCE: UPDATED BOARD AND MANAGEMENT LEADERSHIP TEAM FOR NEXT PHASE OF GROWTH Executive management team appointments (CEO and CFO). Two additional Independent Non- executive directors appointed in 2021. Lucio Genovese Jim North Fiona MacAulay Ann-Christin Six out of eight Board members Non-execu
Slide 22: Looking Forward
LOOKING FORWARD SAFETY REMAINS THE KEY PRIORITY SAFETY AND WELLBEING CONTINUED PRODUCTION FERREXPO HUMANITARIAN FUND 10,000 11.2MT US$12.5M Safety remains the key priority for the Continuing to produce high grade Dedicated fund established to Group’s workforce of 10,000 people iron ore pellets and c
Slide 23: Thank You
THANK YOU. Ferrexpo PLC | FY Results 2021 Presentation