Global Ferronickel Holdings, Inc. · PSE:FNI

Global Ferronickel — H1 2017 Earnings Presentation

16 slides from Global Ferronickel's earnings presentation, Aug 8, 2017

  1. Slide 1: 1H2017 Earnings Presentation

    1H2017 Earnings Presentation 8 August 2017

  2. Slide 2: Summary

    Summary  Solid turnaround delivered from growth in volumes and cash flows underpinned by low cost base and capex requirements  Net income of ₱148.8 million from a loss of ₱317.5 million in 1H2016  EBITDA of ₱397.6 million or 21.4% of sales  Funds from operations of ₱412.6 million, up 131.1%  Ca

  3. Slide 3: Operations Update

    Operations Update Ship loading of nickel ore, Surigao del Norte

  4. Slide 4: Operational efficiencies drive growth in volume

    Operational efficiencies drive growth in volume 1H2017 1H2016 Daily Loading (1H2017) WMT vessels Daily volume 1H17 average 1H16 average 35 shipped 20 vessels shipped 50,000 40,000 Sunny day average: 24,600 WMT Rainy day average: 10,195 WMT 30,000 11 contractors 7 contractors 20,000 10,000 - 19,500WM

  5. Slide 5: Flexible product mix captures varying customer needs

    Flexible product mix captures varying customer needs Revenue Breakdown Volume Analysis By shipment volume 1H2017 1H2016 change Low grade Volume (‘000 WMT) 1,915.1 1,090.5 75.6% Medium grade 63% 37% Limonite (Low grade) 1,215.9 880.4 38.1% Saprolite (Med grade) 699.2 210.1 232.8% Volume mix Low vs. M

  6. Slide 6: Market Review

    Market Review Shipside loading operations

  7. Slide 7: Large addressable markets support long-term demand outlook

    Large addressable markets support long-term demand outlook Stainless steel Urbanization and infrastructure Battery Electric car population1 and nickel 70% of Ni use modernization in Asia NCA, NCM demand2 Architecture, Nickel-Cobalt- energy supply, 2017–2020: 3% annual Ni Aluminum (NCA) 2016: 2 milli

  8. Slide 8: Declining inventory levels for nickel ore boost market prices

    Declining inventory levels for nickel ore boost market prices China Laterite Ore Inventory and Nickel Ore Price Nickel Price versus Nickel Ore Price 10,000MT Nickel Ore LME Nickel Nickel Ore China Laterite Ore Inventory Nickel Ore Price Price (RMB) Price (US$) LME Nickel Price Nickel Ore Price Price

  9. Slide 9: Strong end-demand environment in China

    Strong end-demand environment in China Demand for consumer goods still pointing upwards as China shifts to a consumption driven economy with rising disposable income China Fixed Assets Investment (Excluding Rural Households)1 China Industrial Production2 YOY Growth YOY Growth (%) (%) 13 8 12 6.9% 11

  10. Slide 10: Healthy leading indicators for real estate development

    Healthy leading indicators for real estate development Real estate sector in China remains resilient China Fixed Assets Investment in Real Estate China Land Area Purchased for Real Estate YOY Growth YOY Growth (%) (%) 10 20 8.8% 8 10 5.5% 0 6 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 J

  11. Slide 11: Healthy leading indicators for infrastructure

    Healthy leading indicators for infrastructure Heavy investments in power, transport, and water infrastructure continue to be favourable China Fixed Assets Investment in Supply of Power, Gas and Water China Fixed Assets Investment in Water and Environment YOY Growth YOY Growth (%) (%) 25 35 20 30 25.

  12. Slide 12: Healthy leading indicators for automobile

    Healthy leading indicators for automobile Demand for new energy vehicles holding up well on rising disposable incomes and government incentives to EV adoption China Industrial Production of Automobiles China Passenger Car Sales YOY Growth YOY Growth (%) (%) 18 35 30 15 13.1% 25 12 20 15 9 10 2.7% 5

  13. Slide 13: Financial Highlights

    Financial Highlights Quality control

  14. Slide 14: 1H2017: Beginning of turnaround momentum

    1H2017: Beginning of turnaround momentum (in PHP millions, unless otherwise indicated) Summary Income Statement Summary Balance Sheet 1H2017 1H2016 change Cash 267.6 Volume (‘000 WMT) 1,915.0 1,090.0 75.6% Total current assets 3,961.2 Average realized price 19.44 13.48 44.2% PPE 2,040.6 (US$/WMT) To

  15. Slide 15: Aggressive distribution of cash to shareholders via share buyback

    Aggressive distribution of cash to shareholders via share buyback Share buyback 36,355,333 shares 66,613,333 shares Total amount ₱93,550,340 ₱173,392,770 as of 30 Jun 2017 as of 4 Aug 2017 15

  16. Slide 16: Questions

    Questions www.gfni.com.ph investorrelations@gfni.com.ph Grade control

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