Ferrexpo Plc · LSE:FXPO
Ferrexpo — Investor Presentation (November 2021)
14 slides from Ferrexpo's investor presentation, Nov 16, 2021
Slide 1: Delivering Sustainable Growth – Analyst Roundtable
DELIVERING SUSTAINABLE GROWTH ANALYST ROUNDTABLE November 2021 Jim North, Interim CEO Nikolay Kladiev, CFO Ferrexpo plc | Analyst Roundtable, November 2021
Slide 2: Prioritising Safety
2 PRIORITISING SAFETY KEY RATE CONTINUES BELOW 5Y AVERAGE 1.40 ZERO 0.38 OPERATIONS REMAIN INJURY FREQUENCY 1.20 LOST TIME INJURY FREQUENCY RATE RATE OF 0.38, +50% FATALITY FREE IN 2021 BELOW 5Y AVERAGE 1.00 0.98 (2020: 1). (0.98) & MATERIALLY BELOW PEERS IN 0.80 AUSTRALIA. 0.60 0.40 0.20 THREE THIR
Slide 3: Production & Growth
PRODUCTION & GROWTH Ferrexpo plc | Analyst Roundtable, November 2021
Slide 4: Production: 2021 Recap
4 PRODUCTION: 2021 RECAP FURTHER INVESTMENT IN THE GROUP’S PELLETISER KEY: P PELLET LINE UPGRADE WORK PELLET PRODUCTION YTD 35 AVERAGE DAILY PRODUCTION (KT) P P P 25 15 5 JAN-21 FEB-21 MAR-21 APR-21 MAY-21 JUN-21 JUL-21 AUG-21 SEP-21 OCT-21 NOV-21 (MTD) Ferrexpo plc | Analyst Roundtable, November 20
Slide 5: Production Snapshot
5 PRODUCTION SNAPSHOT INVESTING IN PELLET VOLUME AND QUALITY DELIVERED: 2021 VOLUME: STRONG Q4 TO DELIVER 7% GROWTH IN PELLET RESULT IN LINE FOR FY VOLUMES IN 2020. 2021. 2022 VOLUME: 2022 QUALITY: PLAN TO INCREASE DR GROWTH IN VOLUMES PELLET (67% FE) TO ABOVE 2021 LEVEL. BETWEEN 0.5-1.0MT. Ferrexpo
Slide 6: Investing in Growth – Wave 1 Overview (1)
6 INVESTING IN GROWTH – WAVE 1 OVERVIEW (1) PROVIDING ADDITIONAL 3MT OF PELLET CAPACITY • BENEFICIATION BENEFICIATION PLANT (US$240M) UPGRADE • WAVE 1: • INSTALLATION OF HIGH PRESSURE GRINDING ROLLS (“HPGR”, WEIR MINERALS). LOCATION 1 ON AERIAL VIEW OPPOSITE (X2). 1 • TAILINGS THICKENING TO ENABLE I
Slide 7: Investing in Growth – Wave 1 Overview (2)
7 INVESTING IN GROWTH – WAVE 1 OVERVIEW (2) PROVIDING ADDITIONAL 3MT OF PELLET CAPACITY PELLET PLANT (US$181M) THICKENING (DEWATERING STAGE) • WAVE 1 • UPGRADE OF ONE OUT OF FOUR PELLETISER LINES. • WORK TO PRIMARILY FOCUS ON PRE-HEATING STAGE OF PELLETISER. • INVESTMENT TIMING PRINCIPALLY 2022/2023
Slide 8: Capital Allocation
CAPITAL ALLOCATION Ferrexpo plc | Analyst Roundtable, November 2021
Slide 9: Shareholder Returns Policy
9 SHAREHOLDER RETURNS POLICY FORMALISING GROUP’S EXISTING APPROACH • HISTORICALLY GROUP HAS APPLIED BALANCED CAPITAL ALLOCATION (2018-2020) APPROACH TO CAPITAL ALLOCATION (SEE CHART) 100% • SHAREHOLDER RETURNS POLICY ANNOUNCED TODAY 90% % OF INVESTING & FINANCING ACTIVITIES • AIMS TO FORMALISE HISTO
Slide 10: Historical Shareholder Returns
10 HISTORICAL SHAREHOLDER RETURNS POLICY THRESHOLD MET FOR PAST THREE YEARS 120% SHAREHOLDER RETURNS (DIVIDENDS) PAID IN 100% RESPECT OF FY AS % OF FCF 80% 60% 40% (8) (11) (24) 30% LEVEL (BRACKETS DENOTE 20% US CENT/SHARE EQUIVALENT) 0% 2018 2019 2020 DIVIDENDS PAID IN 23.1 19.8 85.8 RESPECT OF FY
Slide 11: Carbon Journey
CARBON JOURNEY Ferrexpo plc | Analyst Roundtable, November 2021
Slide 12: Carbon Snapshot
12 CARBON SNAPSHOT CLEAR PATHWAY TO LOW CARBON ON SCOPE 1, 2 AND 3 Scope 1 Emissions Scope 2 Emissions Scope 3 Emissions (50kg CO2/t pellet) (62kg CO2/t pellet) (1,082kg CO2/t pellet) Sources ■ Mining (diesel, 41% Scope 1). ■ Electricity (97% of Scope 2). ■ Pellet conversion into steel (94% of ■ Pel
Slide 13: Carbon Outlook
13 CARBON OUTLOOK RICARDO PIECE TO FURTHER DEVELOP GROUP’S REPORTING • SCOPE 1 AND 2 FERREXPO’S OVERALL CARBON FOOTPRINT (2020) • TARGETING 30% REDUCTION IN SCOPE 1 AND 2 COMBINED BY 2030 (PER TONNE BASIS) SCOPE 1, 4% SCOPE 2, • NET ZERO BY 2050. 5% • SCOPE 3 • SCOPE 3 FOOTPRINT INTRINSICALLY LINKED
Slide 14: Thank You
THANK YOU Ferrexpo plc | Analyst Roundtable, November 2021