Valterra Platinum Limited · JSE:VAL
Valterra Platinum — FY2021 Earnings Presentation
68 slides from Valterra Platinum's earnings presentation, Feb 21, 2022
Slide 1: Anglo American Platinum 2021 Annual Results
AngloAmerican PLATINUM Anglo Ar 2021A 21 February 2022 _
Slide 2: Cautionary Statement
Cautionary Statement Disclaimer: This presentation has been prepared by Anglo American Platinum Limited ("Anglo American Platinum’) and comprises the written materials/slides for a presentation concerning Anglo American Platinum, By attending this presentation and/or reviewing the slides you agree t
Slide 3: 2021 annual results agenda
21 annual results agenda 2021 overview 4 =) ESG performance 7 Feeeaeee HeBSAeee Operational performance 12 i —_ ] Financial performance 19 Market review 29 Market development 35 Quality of the portfolio 39
Slide 4: 2021 overview
20?1 overview
Slide 5: 2021 overview: Safe production, record operational and financial results
2021 overview Safe production, record operational & financial results Safety Mining EBITDA margin Record refined PGM production Zero fatalities at own-managed operations & Modikwa EBITDA “ 65% Economic contribution to society “5.1m 2021 dividend declared 4 R108bn R148bn 4 R80bn 100% of headline earn
Slide 6: Delivering our Purpose through four strategy priorities
2021 overview We are delivering our Purpose through the four priorities of our strategy Our Purposeis: “Reimagining mining to improve people’s lives" Four priorities of strategy delivery A leader in ESG Going beyond resilience, Maximize value from Stimulate new markets and thrive through change our
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Slide 8: Zero fatalities achieved - continuous efforts to move to zero harm
ESG performance Zero fatalities achieved - continuous efforts to Aleaderin ESC Safety move to zero harm Health Elimination-of-fatalities (EOF) @ ma Annual Loss of life 9 —=*==TRCFR! on 2017 2018 2019 2020 2021 Focus on behaviours, particularly during period of disruption and change. Technology and m
Slide 9: Economic contribution of R148 billion
ESG performance Economic contribution of R148 billion Aleaderin ESC Taxes and royalties Local BEE procurement Increasing contribution to stakeholders and society RS55bn Salaries and wages Rand billion R28bn Social investment & Covid-19 R14bn Capital investment R2bn Dividends R39bn R14bn 2018 b nN mT
Slide 10: Supporting our colleagues and our communities
ESG performance Supporting our colleagues and our communities Aleaderin ESG Supporting colleagues Supporting communities Culture in Action Supporting mental health & wellbeing. Continuing food support and access to Taking a leader-led stand to reinforce our clean water programmes. commitment to stop
Slide 11: Roadmap to reduce emissions established
ESG performance Roadmap to reduce emissions established — Aleaderin ESC Roadmap to reduce Scope 1 & 2 emissions * by 2030 positive impact from environment targets Environment Million tons CO; equivalent 4 -30% Expected 2030 level with no action — Emission reduction programmes 2016 2021 Solar PVs & H
Slide 12: Operational performance
Dishaba colleagues
Slide 13: Benefit of a diversified portfolio contributing to EBITDA
Production performance Benefit of a diversified portfolio contributing to EBITDA and strong margins Own-mine PGM production EBITDA contribution per own-mine operation 000 ounces Rand billion 30m - 2,859 65% x) u-- L468). -_: 2021 2019 2020 2021 2019 =Mogalakwena © Amandelbult =Mototolo =Unki ™Joint-
Slide 14: Record refined production driven by ACP performance
Production performance Record refined production driven by ACP performance, leading to strong sales volumes Refined PGM production PGMs sales volumes (excluding trading) 000 ounces 000 ounces 5,225 5,214 4,634 3,217 504 2,869 : = 2018 2019 2020 2021 2018 2019 2020 2021 wOwn production ciToll ounces
Slide 15: Mogalakwena driving new technology
Production performance &) Maximize value from our core Bulk ore sorting &) Coarse particle rejection Mogalakwena driving new technology for operational efficiencies and sustainability ‘D) Hydrogen fuel-cell truck 0) Bulk ore sorter is fully operational at North Concentrator. Pilot testing work is un
Slide 16: Advancing modernisation and mechanisation at Amandelbult
Production performance Advancing modernisation and emews MECHanisation at AMandelbult Modernisation @ Cycle mining @ Mechanisation @ Modernisation journey to address Transitioning from a conventional shift- Mechanisation advancing at Tumela 15E inherent safety and health risks - leading cycle to a c
Slide 17: Mototolo life extension approved
Production performance Mototolo life extension approved — (2) pp Maximize value from our core Life extension plan - new decline at Der Brochen South construction to start in H1 2022 PGM production profile (000 ounces per annum) e Lebowa shaft mining at boundary \ and coming to end of life Mototolo L
Slide 18: Increasing capital on asset reliability at processing assets
Production performance Increasing capital on asset reliability at Going beyond resilience, ‘thrive through change Capital investment in asset reliability in processing processing assets — ACP shows delivery @ Average daily ACP feed Annualaverage spend on asset reliability - Rand billion 41 08 25 25
Slide 19: Financial performance
Financial performance
Slide 20: Record 2021 financial performance
Financial performance Record 20721 financial performance Revenue EBITDA Headline earnings ®R215bn TRI1IO8bn TS R79bN Return on capital employed (ROCE) Net cash 2021 dividend declared “ 185% “S R49bn “a RS500/share H2 2021: R125/share
Slide 21: Record EBITDA: higher PGM prices and volumes
Financial performance Record EBITDA: Higher PGM prices and volumes EBITDA PGM rand basket price Rand billion “6% WS 22% 55 me PGM sales volumes Other: 7 a eo e) PGMs (e) Mining EBITDA margin 2020 Price FX8 CPI & Input cost Improved 2021 before Inventory 2021 65 % Royalties inflation mining accountin
Slide 22: Working capital reduction
Financial performance Working capital reduction Trade working capital movements WIP inventory release Rand billion -R15 billion 10.6 (3.9) 2020 Workin processinventory —_Inventoryaccounting Customer prepayment, other change inventory, debtors and price effect 2021 Vv R8.2bn Inventory accounting chan
Slide 23: Unit cost impacted by steep rise in input cost inflation
Financial performance Unit cost impacted by steep rise in Inout cost inflation Unit cost per PGM ounce Mining production ~ 1147 14,500- “ 1 5% 13,800 Rand per PGM ounce Labour Power Input inflation A 14% 2022 Unit cost increase 2020 PGM production & CPI 4.4% Input cost inflation 2021 2022 Guidance j
Slide 24: Strong net cash position
Financial performance Strong net cash position Net cash evolution Cash from operations Rand billion 2020 Cash from operations mTaxes, royalties and interest 2021 m Customer prepayment & other ml Capex and capitalised waste m Dividend R124 bn Customer prepayment extension 5 years Net cash position “
Slide 25: Balanced and disciplined capital allocation
Financial performance Balanced and disciplined capital allocation Capital allocation framework Balance sheet flexibility on. coelscretiono’y Pital optio™ Additional shareholder returns Portfolio. upgrade Future project options including ESG Generate strong free cash flow from operations Maintain bal
Slide 26: SIB capital focused on asset reliability
Financial performance SIB capital focused on asset reliability Stay-in-business capital Total SIB capital Rand billion 73 | 2021 ~10.0 90-95 2022 2023 ™ Stay-in-business = Non-recurring -110 2024 R/.Sbn 80 Life extension capital RO.4bn Breakthrough & growth capital oem R?2.8bn 26
Slide 27: Industry-leading returns to shareholders
Financial performance Industry-leading returns to shareholders 2021 dividend per share 2021 dividend declared Dividend pay-out ratio 300 100% > pay-out ratio HEPS Dividend per share R80bn H2 2021: R33 bn Dividend per share 100% Dividend yield’ R4S00/share H2 2021R125/ share 1/% 27
Slide 28: Embedding ESG into our capital allocation framework
Financial performance A leader in ESG - embedding ESG into our Aleaderin ESG What we have done capital allocation framework Example of changes we have made Prioritised ESG dimensionsthat can be influenced by the capital portfolio with supporting metrics and targets Introduced ESG boundary conditions
Slide 29: Market review
Market review PMR: Palladium good delivery bar with grain
Slide 30: PGM basket price reached new highs in 2021
Market review PGM basket price reached new highs in 2021 US$ basket price - half year average market price® 3,307] 2,146 1,106 964 962 713 H116 H216 H117 H217 H118 H218 H119 H219 H120 H2 20 H121 H221 PGM basket price reached a record high in H1 2021. Despite a fallin H2 2021, prices remain elevated
Slide 31: Short term: easing chip shortage allows rising auto production
Market review Short term: easing chip shortage allows rising auto production Semiconductor shortage impacts 2021 light duty vehicle output? Million vehicles Impact of semiconductor chip shortage on auto production Semiconductor shortages 50 reduced auto production in 2021 by 11m vehicles 45 compared
Slide 32: Reasons to be positive
Market review Reasons to be positive Global vehicle production vs 2019 US second-hand car prices" Global vehicle inventory levels 12 Jan 21 Apr 21 Jul21 Oct 21 0% (5)% (25)% Auto production is already recovering -Q 42021 saw production heading back to normal Year-on-year Light vehicle inventory redu
Slide 33: PGM metals heading back into deficits
Market review SE metals heading back into deficits Platinum’ Palladium'’ Rhodium’ Future demand from gasoline substitution & hydrogen economy drives deficit 1,000 2021 2022F = =2023F = 2024F = 2025F Ongoing deficit driven by auto demand and tighter emissions legislation (75) 2021 2022F 2023F 2024F 2
Slide 34: Medium-term: higher production and loadings help offset rise of BEVs
Market review Medium-term: higher production and loadings helo offset rise of BEVs Global autocatalyst PGM demand” 000 ounces Growth in vehicles Covid-19 recovery 11,500 2019 2020 2021 Higher production +5% | [el ~30-35% BEV penetration Higher BEVs FCEVs 2030 loadings 34
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Slide 36: Market development
Market development • • • • • • • • • • 36
Slide 37: Driving innovation in new applications for palladium demand
Market development Driving innovation in new applications for Zu, PAlladium demand leveragenew capobilties In computing In batteries (and BEVs) In food preservation In new materials R&D on using palladium in R&D and commercial efforts on Progressing the Creating a physical & digital memory devices e
Slide 38: Increasing our market development activities
Market development Increasing our market development activities comme I Platinum jewellery leveragenew capobilties Better materials New technology Facilitating transactions New consumers Collaborating to explore and create superior alloys Klloyed Addressing the challenges from manufacturing to produ
Slide 39: Quality of the portfolio
Quality of the portfolio
Slide 40: Tier assets with optionality delivering high value proposition
Quality of the portfolio (ar) Tier 1 assets with optionality delivering high a value proposition Resources inclusive of reserves (million ounces 3E+ goldy® Maximize value from our core Reserve life Resource life 2021Revenue =Platinum = Palladium = Rhodium = Other PGMs + gold Base metals "Chrome voin
Slide 41: Developing the Future of Mogalakwena
Quality of the portfolio Developing the Future of Mogalakwena Communities - creating trusting relationships and valued oe? partnerships we Integrated Six key workstreams Technology & innovation — develop and deploy technology (LOLd) SOIDUBIOIYS leleleey elo) Downstream processing - e utilise downstr
Slide 42: Maximising value from our integrated value chain
Quality of the portfolio (ar) Maximising value from our integrated value a chain Maximize value from our core Processing Marketing & Exploration Mining Concentrating Smelting Refining market development B >50% \ of integrated producer capacity Components in processing End-products with changing netw
Slide 43: Strategy delivering strong financial returns and value to stakeholders
Quality of the portfolio Strategy delivering strong financial returns and value to our stakeholders Four priorities of strategy Targeting value creation for all our stakeholders 2020 baseline 2025 2030 Aleader in FSG Mechanised and modernised 399 009 i ——> operations, % of PGM production % 100% Cost
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Slide 45: Appendix
Appendix 2022 4.1-4.5 million ounces 4.2-4.6 million ounces 4.2-4.6 million ounces 15,800-14,500 Rand per PGM ounce
Slide 46: Three-year guidance
Appendix Three-year guidance Unit 2022E 2023E 2024E Metal in concentrate Total PGMs (m ounces) 41-45 41-45 41-45 Platinum (m ounces) 19-21 19-21 19-21 Palladium (m ounces) 13-14 13-14 13-14 Other PGMs and gold (m ounces) 0.9-10 0.9-1.0 0.9-10 Refined production Total PGMs (m ounces) 42-46 38-42 41-4
Slide 47: Capital expenditure guidance
Appendix Capital expenditure guidance = Expansion / Growth capital Life extension Capital waste stripping = Stay-in business Capital expenditure Total capital expenditure (R billion) Total Sustaining capital (R billion) Stay-in-business (R billion) Capitalised waste stripping (R billion) Life extens
Slide 48: Exiting Bokoni and Kroondal - creating value uplift
Appendix Exiting Bokoni and Kroondal - creating value uplift for stakeholders and shareholders Bokoni Kroondal Concluded an agreement for the disposal of Bokoni Mine to African Rainbow Minerals for R3.5 billion. Important that Bokoni Mine was sold to an operator with the technical and operational ca
Slide 49: Progress on zero-emissions mine solution at Mogalakwena
Appendix Progress on zero-emissions mine solution at Mogalakwena System Architecture We generate renewable electricity which is: ad @ Excess energy converted to aA hydrogen (H,) Completed design and build of infrastructure for electrolysers, storage & refuelling. Performed high speed hydrogen refuel
Slide 50: Strong basket price - led by rhodium and minor PGMs
Appendix Strong basket price - led by rhodium and minor PGMs Indexed market prices log scale (1 Jan 2019=100)2 Ru Ir USD Basket == ZARbasket m—Pt =m =Pd Rh 50
Slide 51: Platinum - future demand from gasoline substitution and hydrogen
Appendix Platinum - future demand from gasoline substitution & hydrogen economy drives deficit Supply and demand balance’ 2021 gross demand by segment?s 000 ounces 1,000 210 230 (220) = (385) (335) (630) 2015 «2016-2017, «2018 ~=— 2019-2020 2021 2022 2023 2024 2025 Fuel cells 1% Industrial 35% Autoc
Slide 52: Palladium - ongoing deficit driven by auto demand
Appendix Palladium — ongoing deficit driven by auto demand and tighter emissions legislation Supply and demand balance’ 2021 gross demand by segment?s 000 ounces Jewellery 4% Investment 2015 = 2016) 2017,— «2018. 2019S 2020S 2021» 2022S 2023S 2024 =. 2025 Industrial 1% mm “F' a (75) (200) . (280) 10
Slide 53: Rhodium - unique NOx reduction qualities drive demand
Appendix Rhodium — unique NOx reduction qualities drive auto demand and continuing deficits Supply and demand balance® 2021 gross demand by segment25 000 ounces Jewellery Industrial 1% 115 9% es mM ounce market 55 " : . (60) . (80) 2015 201%) 20177, 2018S 2019-2020. 2021S 2022» 2023-2024 ~=—.2025 Au
Slide 54: Medium term: auto PGM demand driven by tighter emissions legislation
Appendix Medium term: auto PGM demand driven by tighter emissions legislation Rising PGM loadings - example Euro gasoline LDV Robust PGM demand from LDV globally Euro emissions standards 24 Loading 6b Million vehicles (LHS), million ounces (RHS) 25 120 (estimate) 100 80 60 40 20 2010 2015 2020 2025
Slide 55: Secondary supply - rising trend mainly from palladium
Appendix Secondary supply - rising trend mainly from palladium Projected autocatalyst recycling volume”6 (000 ounces per annum) 7000 6000 5000 | = Yd 4000 = = mm a 3000 = = = fil - LLL LLL 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Plat
Slide 56: Truck demand - a platinum growth area
Appendix Truck demand - a platinum growth area Heavy-duty platinum automotive demand in China and India?” 000 ounces per annum 2020 2021 China m= India 2022 2023 All Chinese trucks sold by 2023 will need platinum- based catalysts due to tightening emissions. Many manufacturers implementing systems e
Slide 57: Outlook for global emissions regulation - light duty
Appendix Outlook for global emissions regulation — light duty?® N America Tier 2 Tier3 Tier 4 Europe EURO 5 EURO 6b EURO 6c EURO 6d EURO7 China (gas) CHINA 3 CHINA 6a CHINA 6b + RDE CHINA7 Japan JAPAN 2009 India BHARAT IV BHARAT V BHARAT VI + RDE 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 203
Slide 58: Outlook for global emissions regulation - heavy duty
Appendix Outlook for global emissions regulation — heavy duty”® Europe EURO VII china CHINA Vib CHINA VII Japan 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Slide 59: Market development of all PGMs
Appendix Market develooment of all PGMs End use sector diversity Full PGM basket resilience Creating possibilities and options for Opportunity Areas Hydrogen & mobility Low-Loss Computing Battery & Storage New Materials Carbon-Neutral Feedstock FoodTech MedTech Waste & Pollution Control She” seo0g P
Slide 60: PGM prill split by own-mined assets
Appendix PGM prill split by own- Metal-in-concentrate production by PGM mined assets Revenue contribution by PGM per asset 445m PGM ounces _ =Platinum — = Palladium a -— a 3% Unki Modikwa POC Mogalakwena Amandelbult —Mototolo Kroondal = Rhodium Iridium = = Ruthenium — = Gold 60
Slide 61: Returning excess cash to shareholders
Appendix Returning excess cash to shareholders Dividend declared - base and special dividends Total 2021 dividend declared Rand billion Pay-outratio 30% 30% 40% 40% 76% 40% 40% 100% 46.4 npa-- «wa . @ R8BQbn Dividend pay-out ratio 100% Dividend yield 33.2 H22017 H12018 H22018 H12019 H22019 H12020 H2
Slide 62: EBITDA sensitivity
Appendix EBITDA sensitivity Sensitivity analysis -2021 Commodity / unit Platinum ($/oz) Palladium ($/oz) Rhodium ($/oz) Gold ($/oz) Nickel ($/ton) Copper ($/ton) Chrome ($/ton) Currency South African rand/dollar 31 December spot 965 1,967 14,100 1818 20,498 9726 75 1589 Average realised 1,083, 2439
Slide 63: Net cash flow by mine
Appendix Net cash flow by mine Net cosh Assets 31Dec 2020 Mogalakwena ‘Amandelbult Mototolo Unki Joint operations (mined) Third party POC Other 18,650 Cash generated 39,294 24,766 8941 6,076 15,593 20577 348 115,595 SIB capital and capitalised waste (6,642) (744) (S53) (545) (650) (1,018) (213) (10,
Slide 64: Cost breakdown
Appendix Cost breakdown Costs reflective of AAP own mined and joint operations share of production and costs at operations (excludes all purchase of concentrate costs and volume, overhead and marketing expenses). 2021 Cost base (Ron) Volume % PGMs (koz) Labour Contractors Materials Utilities Sundrie
Slide 65: All-in sustaining cost (AISC)
Appendix Allin sustaining cost (AISC) Mogalakwena Amandelbult Costs (US$ milion) Cash operating costs (excl. stock piles) 829 875 Other costs and marketing 324 280 Capitalised waste costs 207 Sustaining capital 245 57 a Total Cost 1605 1212 Total revenue excluding PGMs revenue (US$m) b Base and othe
Slide 66: Rand basket price
Appendix Rand basket price Mogalakwena Net sales revenue (US$ million) from platinum, from palladium from rhodium, from other metals a Total revenue Sales volume (000 ounces) b platinum ounces sold other PGMs sold ce Total PGMs sold US$ Basket prices d=a+cx1000 US$ basket price per PEM ounce! e=a+bx
Slide 67: Simplified EBITDA per PGM ounce
Appendix Simplified EBITDA per PGM ounce (Rmilion) a=(bx¢)/1000+d. b e d e=(fxg)/1000+h f 9g h i=G+k+l+m+n) j k I m Net revenue Basket price per PGM ounce PGM ounces sold Other revenue Cash operating costs Cash operating cost / PGM oz PGM ounces produced POC and1toll costs Other costs -Metal invento
Slide 68: Footnotes
Footnotes Total recordable case injury frequency rate (TRCFR) is a measure of all injuries requiring treatment above first aid per 000,000 hours worked New case of Occupational Disease defined as: A case of disease (diagnosed by a physician and counted from the date of diagnosis) where an employee h