Saudi Arabian Mining Co. · TADAWUL:1211

Saudi Arabian Mining — FY2020 Earnings Presentation

52 slides from Saudi Arabian Mining's earnings presentation, 2021

  1. Slide 1: Growing a Saudi Global Mining Giant

    Growing a Saudi Global Mining Giant Saudi Arabian Mining Company (Ma’aden) Investor Presentation – Q4 & FY 2020 Results

  2. Slide 2: Frederik Michaelsen, Senior Investor Relations Advisor

    Growing a Saudi Global Mining Giant Frederik Michaelsen Senior Investor Relations Advisor

  3. Slide 3: 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 the Saudi Arabian Mining Company Ma’aden (the "Company"). These statements are based on the Company's current plans, estimates and

  4. Slide 4: Mosaed Sulaiman Al Ohali, Chief Executive Officer

    Mosaed Sulaiman Al Ohali Chief Executive Officer 4 of 52

  5. Slide 5: Ma'aden's 2025 Strategy

    Ma’aden’s 2025 Strategy “Sustainable mining champion with global presence” Pillar 1: Operational, capital and Pillar 3: Global presence Foundations : Sustainability and Pillar 2: National mining champion commercial excellence capability building • Enhance competitiveness • Grow sustainably phosphate

  6. Slide 6: Ma'aden's Growth Since Its Inception

    MAADEN’S GROWTH SINCE ITS INCEPTION 70 MPC Sukuk MWSPC & Capital Sales, SAR mn MRC Increase 60 18,600 Commercial MRC Production Ad Duwayhi Start 460 Commercial Covid Commercial Production 19 50 Starting Production of Effect 2008 2020 Aluminum Rights issue Start Aluminum Operation Smelter MA’aden MPC

  7. Slide 7: Ma'aden outperformed peers and the market

    Ma’aden’s outperformed peers and the market Share price returns (indexed to 100) Ma’aden 2019 Equity increase (Debt for Equity swap) Annualized return since the IPO 260% (in percent) 240% Ma’aden 2014 220% Rights issue 250 M Share 200% Ma’aden 9.2% 180% 160% Mining Giants1 8.9% 140% Ma’aden IPO Pure

  8. Slide 8: Health, Safety, Security & Environment (HSSE)

    Health, Safety, Security & Environment (HSSE) 8 of 52

  9. Slide 9: EHSS Performance

    EHSS Performance Total Recordable Injury Rate (TRIR) Benchmarking 2.0 0 2.00 1.50 1.50 1.00 1.00 0.31 0.37 0.38 0.50 0.50 0.27 0.24 0.22 0.22 0.05 0.00 0.00 2 0 17 2 0 18 2 0 19 2 0 2 0 -Q1 2 0 2 0 -Q2 2 0 2 0 -Q3 2 0 2 0 -Q4 2016 2017 2018 2019 2020 MAADEN ICMM Mosaic Newmont M a 'a d e n Contra c

  10. Slide 10: Environmental Sustainability - 2020

    Environmental Sustainability - 2020 Maaden Water Maaden Energy Intensity Maaden GHG Emissions Intensity Consumption Intensity 80000 CO2 eq 71,502 68,225 400000 70000 25000 318,996 19,484.09 60000 19,272.86 tons CO2 eq/ton 300000 20000 50000 GJ / ton m3 / ton 222,000 40000 15000 200000 30000 10000 10

  11. Slide 11: Covid-19 Update

    Covid-19 Update 11 of 52

  12. Slide 12: COVID-19 Update

    COVID-19 Update 4.0 Overall Infection Rate 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 21-Nov 20-Jun 9-Jan 28-Nov 16-Jan 10-Oct 11-Jul 12-Dec 18-Jul 19-Sep 24-Oct 22-Aug 5-Dec 23-Jan 2-Jan 26-Dec 27-Jun 12-Sep 4-Jul 14-Nov 5-Sep 17-Oct 25-Jul 30-Jan 15-Aug 29-Aug 7-Nov 3-Oct 19-Dec 8-Aug 1-Aug 31-Oct 26-Sep Ove

  13. Slide 13: Q4 2020 Update

    Q4 2020 Update 13 of 52

  14. Slide 14: Q4 2020 - Financial Performance Update

    Q4 2020 - Financial Performance Update Higher sales and EBITDA; net profit of SR0.617bn • Sales was SR5.5bn in Q4-20, up 19% q-o-q, due to higher product prices except gold, Financial combined with higher sales volume of alumina, primary aluminum and FRP, along with higher Performance Meridian sales

  15. Slide 15: Q4 2020 – Analyst Forecasts & Expectations

    Q4 2020 – Analyst Forecasts & Expectations Market expectations for Q4 2020 were exceeded Sales EBITDA Net Profit EPS Actual Q4 2020: 5.549 2.003 0.617 0.46 Aljazira Forecasts: 4.961 1.401 -0.071 -0.06 vs. Actual: 12% 43% -969% -867% Arqaam Forecasts: 5.219 1.893 0.336 0.27 vs. Actual: 6% 6% 84% 70%

  16. Slide 16: Q4 2020 - Production Update

    Q4 2020 - Production Update • Ammonium Phosphate production was 1,338kt (up 6% y-o-y and down 5% q-o-q) Production • Ammonia production was 598kt (down 3% y-o-y and down 1% q-o-q) • Aluminum production was 260kt (up 9% y-o-y and up 4% q-o-q) • Alumina production was 455kt (up 1% y-o-y and down 4% q-

  17. Slide 17: FY 2020 Update

    FY 2020 Update 17 of 52

  18. Slide 18: FY 2020 - Financial Performance Update

    FY 2020 - Financial Performance Update Higher sales and EBITDA; smaller net loss of SR0.85bn • Sales reached SR18.6bn, up 5% vs. 2019, mainly due to higher volume sold except alumina Financial and inclusion of Meridian sales for full year, partially offset by lower sales prices of all Performance pr

  19. Slide 19: FY 2020 – Analyst Forecasts & Expectations

    FY 2020 – Analyst Forecasts & Expectations Market expectations for FY 2020 were beaten soundly Sales EBITDA Net Profit EPS Actual FY 2020: 18.580 5.633 -0.847 -0.17 Aljazira Forecasts: 17.992 5.037 -0.852 -0.69 vs. Actual: 3% 12% -1% -75% Arqaam Forecasts: 17.923 5.161 -0.734 -0.6 vs. Actual: 4% 9%

  20. Slide 20: FY 2020 - Production Update

    FY 2020 - Production Update • Ammonium Phosphate production was 5,137kt (down 2% vs. 2019) Production • Ammonia production was 2,342kt (up 4% vs. 2019) • Aluminum production was 1,011kt (up 5% vs. 2019) • Alumina production was 1,782kt (down 1% vs. 2019) • Flat Rolled Products production was 303kt (

  21. Slide 21: Market Prices & Outlook

    Market Prices & Outlook 21 of 52

  22. Slide 22: Phosphate & Ammonia Prices

    Phosphate & Ammonia Prices Phosphate and Ammonia prices stabilizing Phosphate: • Prices rose 10% vs. Q3-20 • Tight supply and strong demand across key markets $450 $400 • High consumption in India for Rabi season • Lower than average inventory levels in India $350 • Healthy farmer economics in both,

  23. Slide 23: Aluminum & Alumina Prices

    Aluminum & Alumina Prices LME Prices continue on an uptrend Aluminum • Major Chinese demand and weak dollar drove Q4 prices $2,500 $700 • Hope for stimulus across Europe and US underpinned $2,300 sentiments of a quick recovery $600 • December first month since Covid-19 with positive y-o-y $2,100 gro

  24. Slide 24: Gold & Copper Prices

    Gold & Copper Prices Copper continues to rise; Gold inching higher Gold • 2020 was a strong year for gold which benefited from demand for capital safe-havens attributed to investor $2,000 $8,000 anxiety from COVID-19 and concerns about currency debasement $7,500 $1,800 • Support still comes from acc

  25. Slide 25: Yaser A. Barri, SVP Finance & CFO (A)

    Yaser A. Barri SVP, Finance & Chief Financial Officer (A) 25 of 52

  26. Slide 26: Q4 2020 - Financial Performance

    Q4 2020 - Financial Performance 26 of 52

  27. Slide 27: Q4 2020 - Consolidated Key Financial Results

    Q4 2020 - Consolidated Key Financial Results 27 of 52

  28. Slide 28: Q4 net profit compared to Q3-20 net loss

    Q4 net profit compared to Q3-20 net loss SRmn Movement in net profit by line items (q-o-q) Profit / (Loss) attributed to the shareholders’ of parent co. Profit / (Loss) attributed to minority interest 61 -236 617 399 572 491 6 45 -105 -99 Net loss Price Sales vol. Finance Others Net loss Q3-20 effec

  29. Slide 29: Q4 net profit compared to Q4-19 net loss

    Q4 net profit compared to Q4-19 net loss SRmn Movement in net profit/ (loss) by line items (y-o-y) Profit / (Loss) attributed to the shareholders’ of parent co. Profit / (Loss) attributed to minority interest 617 119 275 572 102 45 -277 551 -154 -431 Net loss Price Sales vol. Finance Others Net prof

  30. Slide 30: Q4 2020 - Consolidated Sales and EBITDA by Segment

    Q4 2020 - Consolidated Sales and EBITDA by Segment Consolidated Phosphate vs. vs. vs. vs. Q4-20 LY Qtr. Prev. Qtr. Q4-20 LY Qtr. Prev. Qtr. Sales (SRmn) 5,549 13% 19% Sales (SRmn) 2,844 33% 24% EBITDA* (SRmn) 2,003 41% 36% EBITDA* (SRmn) 997 101% 44% EBITDA margin 36% 7% 5% EBITDA margin 35% 12% 5%

  31. Slide 31: Quarterly EBITDA and EBITDA margins

    Quarterly EBITDA and EBITDA margins Highest EBITDA since Q1 2017; Rising EBITDA margins in 2020 55% 53% 52% 50% 51% 47% 43% 44% 36% 33% 33% 32% 30% 29% 25% 27% 1,966 2,003 1,815 1,727 1,681 1,428 1,504 1,345 1,541 1,392 1,310 1,439 1,416 1,470 1,091 1,069 EBITDA (mn SR) EBITDA Margin 31 of 52

  32. Slide 32: Q4 - Consolidated statement of cash flows

    SRmn Q4 - Consolidated statement of cash flows Healthy cash flow from operating activities 404 7,253 1,396 -341 351 6,242 678 120 5,713 5,117 -1,481 -452 -78 Cash bal. Income Non Change Others Cash Capex / Settlemnt Projects - Cash Debt Lease Cash bal. before cash items in WC Investment of MBCC AP &

  33. Slide 33: FY 2020 - Financial Performance

    FY 2020 - Financial Performance 33 of 52

  34. Slide 34: FY 2020 - Consolidated Key Financial Results

    FY 2020 - Consolidated Key Financial Results 34 of 52

  35. Slide 35: FY 2020 net loss 45% lower than FY 2019

    FY 2020 net loss 45% lower than FY 2019 SRmn Movement in net profit by line items 2020 vs 2019 Profit / (Loss) attributed to the shareholders’ of parent co. Profit / (Loss) attributed to minority interest -209 -739 739 -902 -638 -847 -789 -45% 1,398 -1,528 -555 Net loss Price Sales vol. Finance Othe

  36. Slide 36: FY 2020 - Consolidated Sales and EBITDA by Segment

    FY 2020 - Consolidated Sales and EBITDA by Segment Consolidated Phosphate vs. vs. 2020 Prev. Yr. 2020 Prev. Yr. Sales (SRmn) 18,580 5% Sales (SRmn) 8,663 5% EBITDA* (SRmn) 5,632 1% EBITDA* (SRmn) 2,174 -11% EBITDA margin 30% -1% EBITDA margin 25% 1% 39% of Group EBITDA Aluminium Gold vs. vs. 2020 Pr

  37. Slide 37: FY 2020 - Consolidated statement of cash flows

    SRmn FY 2020 - Consolidated statement of cash flows Healthy cash flow from operating activities 6,633 55 10,769 292 -2,016 881 7,566 6,792 5,713 -695 -4,376 -1,447 -134 -272 Cash bal. bal. Income Non Change Others After Cash after Settlemnt of Capex/ Projects Cash after Cash Debt Upfront fee of Leas

  38. Slide 38: Financial Ratios

    Financial Ratios 2020 2019 Return on total assets (ROA) (%) 0.8% 0.9% Return on total assets excl. CWIP (ROA) (%) 0.9% 0.9% Profitability Return on total equity (ROE) (%) -2.4% -4.0% EBITDA m argin 30.3% 31.4% ROIC 1.0% 1.1% Asset turnover 0.19 0.18 Inventory turnover 5.9 5.0 Efficiency Accounts rec

  39. Slide 39: Q4 2020 - Operational Performance

    Q4 2020 - Operational Performance 39 of 52

  40. Slide 40: Phosphate & Ammonia: Production & Sales – Q4

    Phosphate & Ammonia: Production & Sales – Q4 Ammonium Phosphate Fertilizer Ammonia 1,800 800 1,407 1,420 1,338 1,373 615 603 598 1,267 1,300 1,132 600 368 328 330 400 800 200 300 0 -200 Q4 2019 Q3 2020 Q4 2020 Q4 2019 Q3 2020 Q4 2020 Production (in kmt) Sales (in kmt) Production (in kmt) Sales (in k

  41. Slide 41: Aluminum & Alumina: Production & Sales - Q4

    Aluminum & Alumina: Production & Sales - Q4 Aluminum Alumina 451 472 455 270 500 260 260 260 400 251 251 248 250 300 239 240 200 157 93 230 100 34 220 0 Q4 2019 Q3 2020 Q4 2020 Q4 2019 Q3 2020 Q4 2020 Production (in kmt) Sales (in kmt) Production (in kmt) Sales (in kmt) Flat Rolled Products 80 78 78

  42. Slide 42: Gold & Copper: Production & Sales – Q4

    Gold & Copper: Production & Sales – Q4 Gold Copper 19 150 130 125 20 17 16 17 16 91 15 13 91 90 89 100 10 50 5 0 0 Q4 2019 Q3 2020 Q4 2020 Q4 2019 Q3 2020 Q4 2020 Production (in koz) Sales (in koz) Production (in kmt) Sales (in kmt) 42 of 52

  43. Slide 43: FY 2020 - Operational Performance

    FY 2020 - Operational Performance 43 of 52

  44. Slide 44: Phosphate & Ammonia: Production & Sales – FY 2020

    Phosphate & Ammonia: Production & Sales – FY 2020 Ammonium Phosphate Fertilizer Ammonia 5,400 2,262 2,342 5,302 2,500 5,223 5,200 5,137 2,000 1,291 1,339 1,500 5,000 4,906 1,000 4,800 500 4,600 0 2019 2020 2019 2020 Production (in kmt) Sales (in kmt) Production (in kmt) Sales (in kmt) 44 of 52

  45. Slide 45: Aluminum & Alumina: Production & Sales – FY 2020

    Aluminum & Alumina: Production & Sales – FY 2020 Aluminum 1,011 1,011 Alumina 1,020 1,840 1,832 1,000 1,820 980 967 1,798 964 1,800 1,782 960 1,780 1,763 940 1,760 920 1,740 2019 2020 1,720 2,019 2,020 Production (in kmt) Sales (in kmt) Production (in kmt) Sales (in kmt) Flat Rolled Products 310 303

  46. Slide 46: Gold & Copper: Production & Sales – FY 2020

    Gold & Copper: Production & Sales – FY 2020 Gold Copper 415 413 80 409 68 67 410 70 60 60 55 405 399 50 400 394 40 395 30 390 20 385 10 380 0 2,019 2,020 2,019 2,020 Production (in koz) Sales (in koz) Production (in kmt) Sales (in kmt) 46 of 52

  47. Slide 47: Updates on Ma'aden's Projects

    Updates on Ma’aden’s Projects 47 of 52

  48. Slide 48: Updates on Ma'aden's Projects

    SRmn Updates on Ma’aden’s Projects Ammonia III • Expected to produce 1,1kmt p.a. • US$1,113mn Budget • Completion: Q4 2021 (20kmt) and full operational Q1 2022 MMGP • Expected to produce 250k ounces of gold p.a. • US$880mn Budget • Completion: Q2 2022 Phosphate III • Expected to produce 3,0kmt p.a.

  49. Slide 49: Q&A

    Q&A 49 of 52

  50. Slide 50: Appendix

    Appendix 50 of 52

  51. Slide 51: Debt repayment profile

    Debt repayment profile Schedule debt repayment profile, in mn USD 3,000 USD Millions MIC MGBM MWSPC MBAC MRC MAC MPC Pre-Refinance Repayment 2,500 2,000 1,500 1,000 500 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 51 Earnings Conference Call – YE 2019 51 of 52

  52. Slide 52: Thank You

    Growing a Saudi Global Mining Giant Thank You

Saudi Arabian Mining Company (Ma'aden) — FY2020 Earnings Presentation on 6ix