Slide 1: Full Year 2022 Financial Results
FULL YEAR 2022 FINANCIAL RESULTS 15 MARCH 2023
Slide 2: Review of 2022: Key Focus Areas
REVIEW OF 2022: KEY FOCUS AREAS HUMANITARIAN SUPPORT RESILIENT OPERATIONS COMMITTED TO UKRAINE OUR ROLE IN UKRAINE US$19M 6.1MT US$161M 3% Including Ferrexpo Operations continue for the Continuing to invest in our Ferrexpo represents a major Humanitarian Fund, with majority of 2022, despite workforc
Slide 3: Conflict in 2022: Impact on Our Business
CONFLICT IN 2022: IMPACT ON OUR BUSINESS Resilience in continuing to deliver our products, despite challenges Logistics (rail) Kyiv Ferrexpo operations Displaced Workforce Logistics Disruption Western border crossings Mining & processing complex 6% 50% Approximately 6% of our workforce Previously, a
Slide 4: Humanitarian Aid Provided
HUMANITARIAN AID PROVIDED Breakdown of support provided to date HUMANITARIAN SUPPORT PROVIDED IN 2022/20231 REGIONS SUPPORTED US$19M OF FUNDING PROVIDED TO DATE DIVERSE MIX OF PROJECTS IN REGIONS ACROSS THE FRONT LINE Infrastructure Other 5% Electronics 2% Supporting 2% displaced Medicine Humanitari
Slide 5: Financial Review
Financial Review Nikolay Kladiev, Chief Financial Officer Image: CAT 793D haul truck at Ferrexpo’s Yeristovo Mine. Ferrexpo PLC | Results Presentation 5
Slide 6: Review: Income Statement
REVIEW: INCOME STATEMENT Operations profitable despite difficulties faced in 2022 REVENUE: 46% DECREASE (US$ million, unless stated) 2022 2021 Change (%) - War in Ukraine: 46% lower sales volumes. - 25% decline in benchmark iron ore prices. Total sales volume (million tonnes) 6.2 11.3 (46%) - Partia
Slide 7: Underlying EBITDA: Key Drivers in 2022
UNDERLYING EBITDAA: KEY DRIVERS IN 2022 Production volumes and FX movements represent major factors C1 COSTSA: WATERFALL PROGRESSION UNDERLYING EBITDAA: WATERFALL PROGRESSION (US$ PER TONNE) (US$ MILLION) MARKET FACTORS: (US$300M ) 377 83 and currency Commodity Repairs and Consumption Local inflatio
Slide 8: Review: Cash Flow Statement
REVIEW: CASH FLOW STATEMENT Approach to investing in Ukraine and financing activities remains consistent Net cash flows from operating activities of US$301 million, STATEMENT OF CASH FLOWS AND CAPITAL ALLOCATION including: (US$ MILLION) - Adjusting items: FY 2022 FY 2021 FY 2020 - US$260 million im
Slide 9: Review: Balance Sheet
REVIEW: BALANCE SHEET Impairment recognised as a result of devaluation of local currency TOTAL ASSETS (US$ million, unless stated) As at As at Change 31.12.22 31.12.21 (USD, M) - Lower cash and cash equivalents as a result of the war in Ukraine and associated operating restrictions. Total assets 1,3
Slide 10: Market Review
Market Review Yaroslavna Blonska, Acting Chief Marketing Officer Image: Iron ore pellet stockpile. Ferrexpo PLC | Results Presentation 10
Slide 11: Iron Ore Fines Pricing in 2022
IRON ORE FINES PRICING IN 2022 Changing approach to Covid-19 represents key factor between half year periods Early 2022: Rising iron ore price environment with easing Covid restrictions and rising inventories in China. Weaker supply helps elevate pricing by 31%1. 24 February: Outbreak of Russian inv
Slide 12: Additional Market Factors in 2022
ADDITIONAL MARKET FACTORS IN 2022 Regional impact of rising energy prices creates shift in markets ATLANTIC (BLAST FURNACE) PELLET PREMIUM DIRECT REDUCTION (“DR”) PELLET PREMIUM 2022: US$72/T (2021: US$56/T)1 2022: US$87/T (2021: US$52/T)1 Key factors: Key factors: - Primary export markets2: Europe
Slide 13: Market Outlook
MARKET OUTLOOK Greater degree of stability expected in 2023 MARKET FACTORS IN 2023 - Key factors include: the timeline for the conflict in Ukraine, global inflation, energy prices and the level of economic growth in China. - Global steel production expected to expand by 2% in 2023, returning to simi
Slide 14: Logistics Review
LOGISTICS REVIEW Scaling production according to accessible markets European customers1 (2022) European market share (2022) 83% 27% Rail shipments into Europe Ferrexpo pellets represented 27% remains the main accessible of the market for pellet shipments customer market whilst Black Sea into Europe
Slide 15: Business Review
Business Review Jim North, Chief Executive Officer Image: Ferrexpo employees at our operations in Ukraine; photo taken to mark the inaugural Day of Ukrainian Statehood on 28 July 2022. Ferrexpo PLC | Results Presentation 15
Slide 16: Safety Review
SAFETY REVIEW Continued strong performance in protecting our workforce 2022: LOST TIME INJURY FREQUENCY RATE KEY SAFETY METRICS (“LTIFR”) LTIFR MEASURED AS LOST TIME INJURIES PER MILLION HOURS WORKED 0.51 1.4 1.2 Overview of safety in 2022: 1 - Second successive fatality free year. - Lost time injur
Slide 17: Review of Operations in 2022
REVIEW OF OPERATIONS IN 2022 Evolving impact of the war in Ukraine MINED VOLUMES (QUARTERLY AVERAGES) KEY CONSUMABLES 2022 TOTAL TONNES MINED, MT COMPOSITION OF C1 COSTSA Explosives Materials 2% 6% Grinding media Electricity 6% 22% 1 2020 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 Personnel (Quart
Slide 18: 2023: Expected Pathway
Operational status TBC 2023: EXPECTED PATHWAY nearer publication War creates wide range of potential outcomes CURRENTLY OPERATING WITH 2 PELLET LINES (OUT OF 4) - Second line recently restarted, with two pellet lines reflecting current level of electricity available. - Grid stabilising, but situatio
Slide 19: Operating Environment in Ukraine
OPERATING ENVIRONMENT IN UKRAINE Maintaining corporate governance standards in a warzone ADAPTING BUSINESS ENVIRONMENT - Outstanding Ukrainian business environment adapting well to operating in a conflict zone. - Deliveries of key consumables (natural gas, diesel) continues. - VAT repayments resumed
Slide 20: Sustainability Dashboard
SUSTAINABILITY DASHBOARD Progress uninterrupted by the war in Ukraine KEY SAFETY RATE (LTIFR)1 GHG EMISSIONS REDUCTION2 WOMEN IN LEADERSHIP ROLES COMMUNITY SUPPORT 0.51 31% 20.9% US$19M 31% 132kg/t 20.9% 1.18 1.17 1.17 110 19 20.1% 92 91 0.79 18.2% 0.58 17.7% 17.5% 0.51 0.41 6 6 3 2016 2017 2018 201
Slide 21: Looking Ahead
LOOKING AHEAD Key considerations for 2023 MAINTAINING OUR SAFETY-FIRST APPROACH: Remaining fatality-free for a third successive year and keeping injury rates low. Shifting focus to wellbeing of our people. WAR IN UKRAINE: Outlook for the conflict, restrictions imposed within Ukraine, energy pricing,
Slide 22: Thank you
Thank you Ferrexpo PLC | Results Presentation 22