Saudi Arabian Mining Co. · TADAWUL:1211
Saudi Arabian Mining — FY2022 Earnings Presentation
30 slides from Saudi Arabian Mining's earnings presentation, Jul 22, 2023
Slide 1: Investor Presentation — Full Year and Q4 FY22 Results
MAADEN > UaLop Saudi Arabian Mining Company (Ma’aden) Investor Presentation — Full Year and Q4 FY22 Results
Slide 2: Disclaimer
DISCLAIMER This presentation contains statements that are, or may be deemed to be, forward looking statements, including statements about the beliefs and expectations of Saudi Arabian Mining Company (Ma‘aden) (the "Company"). These statements are based on the Company's current plans, estimates and p
Slide 3: Today's Presenters
TODAY'S PRESENTERS >- Robert Wilt Louis Irvine Chief Executive Officer Chief Financial Officer MAADEN Pr uaLen 3
Slide 4: 2022 — A Record Full Year Performance
2022 — A RECORD FULL YEAR PERFORMANCE Revenues se 40.28bn FY21: 26.77bn EBITDA sar 18.68bn FY21: 12.35bn Net Profit sar 2.1 3bn FY21: 6.48bn With an unwavering commitment to safety > 50% > 51% = Ne 9627" Operating Cash Flow sar 16,21bn fs j %7" FY21: 9.47bn Net Debt/EBITDA 1.3x Elis FY21: 3.1x Earni
Slide 5: Strategic Updates
Growth i STRATEGIC UPDATES Ivanhoe Electric partnership to explore minerals in KSA PIF JV to invest in global mining assets 2 new JV/s with Barrick Gold to explore and develop Jabal Sayid South and Umm Ad Damar license areas Phosphate 3 Phase 1 EPCM contract with Worley signed Ammonia 3 commercial p
Slide 6: Investment in Technology, R&D and Innovation
INVESTMENT IN TECHNOLOGY, R&D AND INNOVATION Partnering with leading technology organizations, academia and government Drone use for surveys and monitoring MoU to develop Ma'aden’s aerial inspection and analysis capabilities using drones and related technology Wifi/LTE connectivity Agreement to enab
Slide 7: Developing a Sustainable Mining Champion
DEVELOPING A SUSTAINABLE MINING CHAMPION Accelerating investments to decarbonize our operations and support our communities Environmental leadership ei * MoU with Shell to explore decarbonization partnerships * Top three bidder at the world’s largest carbon credit auction during Fll in October 2022
Slide 8: A Strong Foundation for Success
A STRONG FOUNDATION FOR SUCCESS Implementing Operational Excellence Long-term Growth Opportunities Activated wall Embedding Safety & ESG Best Practices @ Capital Expenditure Framework Established ce Optimizing Portfolio & Production ne? Financial Position Strengthened MAADEN > uaLen
Slide 9: Financial Results
FINANCIAL RESULTS ~; Chief Financial Officer 7
Slide 10: Record Financial Results in 2022
RECORD FINANCIAL RESULTS IN 2022 Highlighting FY22’s Exceptional Performance i} Highlights - * Best year on record * — Record cash generation * — Continued debt profile improvement in rising interest rate environment * — Softer commodity prices in Q4-FY22 * One-off adjustments impacting H2- FY22 and
Slide 11: EBITDA Bridge (FY21-FY22)
EBITDA BRIDGE (FY21-FY22) Increase of 51% YoY during a year of stabilization and transformation Favorable YoY realized commodity prices Higher raw material costs (sulfur, carbon materials, caustic soda) Higher sales volumes offsetting higher operating costs * Maintenance * Personnel * Working capita
Slide 12: Net Profit Walkthrough (FY21-FY22)
NET PROFIT WALKTHROUGH (FY21-FY22) Increase of 87% YoY - Zakat & Income Tax: mm SAR -446, - Other net income: mm SAR 224 - Income from term deposits: mm SAR 230 6,332 | —_—_ — — 8 0s ~308 -176 6,481 Net Profit EBITDA Dep. & Amort. Finance Costs Share in Joint Ventures Others Net Profit FY21 Effect F
Slide 13: Record Cash Generation from Operating Activities
RECORD CASH GENERATION FROM OPERATING ACTIVITIES Cash balance up 80% from December 2021 - D&A:mm SAR 5,013 Includes finance costs - Fertilizers: mm SAR 1,335 - Finance charges accrued:mm SAR 1,515 (mm SAR 1,413), zakat & - Aluminium: mm SAR 353 income taxes - BM&NM:mm SAR 832 t | - Accelerated repay
Slide 14: Deleveraging Balance Sheet and Reducing Net Debt
DELEVERAGING BALANCE SHEET AND REDUCING NET DEBT Debt & Borrowing (SAR billion) wm Cash & Cash Equiv. Long-term Borrowing gq Net Debt 48 47 43 46 nad 43 “1 38 36 32 28 25 2 16 16 10 6 9 FY20 FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Net Debt/EBITDA reduced to 1.3x vs 3.1x in FY21 (SAR billion) FY20 FY21
Slide 15: Fertilizers
FERTILIZERS Contributed circa 66% of sales and 83% of FY22 EBITDA Financial performance FY22 FY21 Variance Q4-FY22 Q4-FY21 ios 15,584 6,848 B2h6 alsa EBITDA marg 58% 47% 50% 52% | zo | Production performance ie | nar | ievance sii li 3,205 +77% 838 625 +34% 5,151 +0.4% 1,272 1,381 | | Sales volumes
Slide 16: Fertilizer EBITDA Bridge
FERTILIZER EBITDA BRIDGE Strong performance of Fertilizer BU with over 2.2x YoY increase in EBITDA 4,667 | 15,584 “1,568 7 6,976 194 = 2600 1145 6,848 EBITDA Price Major Raw: Others Sub-total Volume Operating Others** EBITDA FY21 Effect Material Costs: Effect Costs* FY22 Market led Business led (SAR
Slide 17: Aluminium
ALUMINIUM Contributed circa 28% of sales and 15% of FY22 EBITDA Financial performance ee 11,280 9,890 2,313 2,824 Ws 1,520 2 Su, | zo: 1.520 Ls su, Production performance FY22 FY21 Variance Q4-FY22 Q. Variance 29; Ef Cos 1879 450 491 | atuminium ee 999 220 250 Gu 309 290 78 53 +47% Sales volumes ] A
Slide 18: Aluminium EBITDA Bridge
ALUMINIUM EBITDA BRIDGE Decrease of 40% YoY due to higher operating costs and lower sales volumes 4472 4,725 EBITDA Price Major Raw = Metal Purch. FY21 Effect Material Costs & Inventory Revaluation Market led (SAR million) “excluding exploration, G&A, S&M **including exploration, G&A, S&M 4 Others 4
Slide 19: Base Metals & New Minerals
BASE METALS & NEW MINERALS Contributed circa 6% of sales and 4% of FY22 EBITDA Highlights * Mansourah-Massarah commissioning continues during H1-FY23 * Initial commercial production on track for H2-FY23 * Expected to produce on average =250koz/year * Higher operating cost affecting EBITDA margin inc
Slide 20: Base Metals & New Minerals EBITDA Bridge
BASE METALS & NEW MINERALS EBITDA BRIDGE Decrease of 27% YoY due to higher operating and fixed costs 123 1,181 — 1082 7 — ~ -198 77 EBITDA Price Others ‘Sub-total Volume Operating Others** EBITDA FY21 Effect Effect Costs* FY22 Market led Business led (SAR million) “excluding exploration, G&A, S&M “i
Slide 21: Capital Allocation Framework
Slide 22: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Strategically deploying and investing capital for long-term sustainable growth Alignment with Vision 2030 Strengthen KSA's presence in the global supply chain, contribute to economic diversification and growth, and solidify its position in the metals of the future Commit
Slide 23: Capex Growth and Strategic Partnerships
CAPEX GROWTH AND STRATEGIC PARTNERSHIPS Kingdom-focused oe International partnerships Growth CAPEX 2023 Guidance Range (SAR mn): 1,350 - 1,600 Global Mining Assets * JV with PIF to invest in global mining assets. + Positioning KSA at forefront of metals of the future * Organic and new project develo
Slide 24: Outlook
OUTLOOK
Slide 25: Exploration Licenses
Granted Pending 86.5 86.0 21.5 85.5 65.0 20.6 0.5 65.0 64.6 0.0 0.6 0.4 0.3 0.0 0.1 Total Gold, Phosphate Bauxite Magnesite Potash ELs1 Base metals New minerals 1 - Exploration License
Slide 26: Production and Capex Guidance
PRODUCTION AND CAPEX GUIDANCE Production volume growth across all assets except Aluminium BU PRODUCTION FORECAST 2023 CAPEX GUIDANCE* Lower Upper Lower Upper DAP Equivalent KM 4,900 5,600 Sustaining CAPEX = sarin) 1,400 1,700 Ammonia kM 3,100 3,500 Growth CAPEX sarima) 1,350 1,600 Alumina kM 1,600 1
Slide 27: 2023 Market Outlook
2023 MARKET OUTLOOK &> Global Environment * Geopolitical uncertainty continues to limit visibility, but long-term market fundamentals remain strong * Risk of continuing inflationary environment impacting manufacturing demand * Easing Covid restrictions in China leading to recovery in demand ak Commo
Slide 28: Ma'aden — A Unique Investment Opportunity in Global Mining
MA’‘ADEN — A UNIQUE INVESTMENT OPPORTUNITY IN GLOBAL MINING Diversified portfolio of long- life, multi-commodity assets * Global leader in fertilizer production * World's lowest cost integrated aluminium value chain * Portfolio of low-cost long-life assets * Global customer base (serving markets acr
Slide 29: Q&A
Q&A > i Robert Wilt Louis Irvine Chief Executive Officer Chief Financial Officer MAADEN Pr uaLen 29
Slide 30: talon
+4 v talon MAADEN GETITON Google Play
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