Ferrexpo Plc · LSE:FXPO
Ferrexpo — Credit Suisse Investor Conference 2021
11 slides from Ferrexpo's conference presentation, September 2021
Slide 1: Investor Presentation: Market Outlook
INVESTOR PRESENTATION: MARKET OUTLOOK CREDIT SUISSE INVESTOR CONFERENCE SEPTEMBER 2021 Brett Salt, Chief Marketing Officer
Slide 2: Introduction to Ferrexpo
2 INTRODUCTION TO FERREXPO CORPORATE PRESENCE MARKETS IN 2021 • LONDON LISTED (PREMIUM LISTING) SINCE 2007 600 300 • SHARE STRUCTURE - SHARE PRICE: £3.901 FXPO SHARE PRICE (GBP) 500 250 IRON ORE PRICE (65% FE) - MARKET CAPITALISATION: US$3.18 BILLION1 - MAJOR SHAREHOLDERS2: FEVAMOTINICO (50%), 400 2
Slide 3: Market Review: Iron Ore Price (1H 2021)
3 MARKET REVIEW: IRON ORE PRICE (1H 2021) 300 SUPPLY SIDE CONSTRAINTS RELATING TO SHORT- TERM INSTABILITY IN AUSTRALIAN AND BRAZILIAN IRON ORE PRICE (US$ PER TONNE) MINE PRODUCTION. 250 200 GOVERNMENT STIMULUS, RELATING TO COVID-19 RECOVERY, DRIVING END-USER DEMAND FOR STEEL, 150 PARTICULARLY HIGH G
Slide 4: Market Review: Iron Ore Price (July-August 2021)
4 MARKET REVIEW: IRON ORE PRICE (JULY-AUGUST 2021) AUGUST 2021: C.25% SELL OFF IN IRON ORE 300 PRICING ANTICIPATED IN MARKET FORECASTS AND IRON ORE PRICE (US$ PER TONNE) FORWARD CURVES. 250 200 SEASONAL WEAKNESS: CHINESE DEMAND FOR IMPORTED IRON ORE TYPICALLY WEAKER DURING 150 SUMMER MONTHS (DOMESTI
Slide 5: Market Review: Pellet Premiums (2021)
5 MARKET REVIEW: PELLET PREMIUMS (2021) 80 1H 2021: ATLANTIC PELLET PREMIUM2 RISES TO US$54/T REFLECTING DEMAND FOR DIRECT CHARGE PELLET PREMIUM (US$ PER TONNE)1 MATERIAL AS STEELMAKERS INCREASE PRODUCTIVITY. 60 3Q 2021: FURTHER TIGHTENING OF MARKET CONDITIONS 40 (SETTLED JUNE 2021). 20 4Q 2021: DEM
Slide 6: Outlook: Near Term
6 OUTLOOK: NEAR TERM STEEL PRICES REMAIN EUROPE AND EX. CHINA PELLET MARKET TO STRONG – SUPPORTING ASIA ECONOMIES REMAIN TIGHT – SUPPORT IRON ORE PRICES CONTINUE TO RECOVER FOR PELLET PREMIUMS HOT ROLLED COIL PRICES1 CRUDE STEEL OUTPUT (YOY)2 EXPECTED NEW SUPPLY (CRU) HOT ROLLED COIL PRICES1 1,400 1
Slide 7: Outlook: Longer Term
7 OUTLOOK: LONGER TERM DECARBONISATION – DECARBONISATION – FXPO: REDUCED CARBON FOOTPRINT (SCOPE 1+2+3 BASIS) NEAR TERM LONGER TERM 1.50 2030 EMISSIONS TARGETS NET ZERO EMISSIONS DRIVING DEMAND FOR TARGETS INCREASING CASE 1.40 TOTAL CO2E EMISSIONS INTENSITY DIRECT CHARGE MATERIAL FOR HIGHER GRADE (6
Slide 8: Conclusions
8 CONCLUSIONS 1 IRON ORE FINES PRICES CURRENTLY TAPERING FROM RECORD LEVELS, IN LINE WITH EXPECTATIONS. 2 VOLATILITY IN IRON ORE FINES PRICING TO PERSIST UNTIL YEAR END. 3 STEEL PRICES AND MARGINS REMAIN ELEVATED, PROVIDING SUPPORT FOR IRON ORE. 4 NEW IRON ORE FINES SUPPLY TYPICALLY LOWER GRADE, LOW
Slide 9: Appendices
APPENDICES Ferrexpo plc | Credit Suisse Conference, Investor Presentation, September 2021
Slide 10: Key Investment Highlights (1H 2021)
10 KEY INVESTMENT HIGHLIGHTS (1H 2021) 0.37 LTIFR +147% 6%REDUCTION SAFE AND SUSTAINABLE UNDERLYING EBITDA IN 1H 2021 DELIVERING CARBON REDUCTIONS PRODUCTION, OPERATIONS INCREASING TO US$868 MILLION, TODAY, CUTTING CARBON CONTINUE TO PERFORM AHEAD OF REFLECTING MARKET STRENGTH FOOTPRINT PER TONNE IN
Slide 11: Disclaimer
11 DISCLAIMER This document is being supplied to you solely for your information and does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in Ferrexpo Plc (the “Company”, and together with