Ferrexpo Plc · LSE:FXPO
Ferrexpo — H1 2022 Earnings Presentation
16 slides from Ferrexpo's earnings presentation, Aug 3, 2022
Slide 1: Standing with Ukraine: Interim Financial Results 2022
STANDING WITH UKRAINE Interim Financial Results 2022 3 August 2022 Footnote: Words with the symbol A in the following presentation are defined in the Alternative Performance Measures section Ferrexpo PLC | Interim Results Presentation (August 2022) 1 of the Group’s Interim Results Press Release for
Slide 2: Ferrexpo Humanitarian Fund
FERREXPO HUMANITARIAN FUND PROVIDING SUPPORT TO THE PEOPLE AND COMMUNITIES OF UKRAINE US$15 MILLION 7 REGIONS APPROVED FUNDING SUPPORT PROVIDED TO FOR THE FERREXPO COMMUNITIES IN 7 HUMANITARIAN FUND REGIONS OF UKRAINE 70+ PROJECTS +2,000 IDPS HSEC COMMITTEE OVER 2,000 APPROVAL FOR MORE INTERNALLY DI
Slide 3: Health and Safety Performance
HEALTH AND SAFETY PERFORMANCE SAFETY REMAINS FIRST PRIORITY CHART: FERREXPO SAFETY PERFORMANCE AGAINST PEER GROUP SAFETY PERFORMANCE 1H 2022 - Group lost time injury frequency 1.80 rate continues below the Group’s historic full year average (0.83) 1.60 and peers. 1.40 - Total injury frequency rate a
Slide 4: 1H 2022: Financial Highlights
1H 2022: FINANCIAL HIGHLIGHTS CONTINUING TO DELIVER STRONG PERFORMANCE INVESTMENTS DELIVER CONSISTENT PERFORMANCE Revenue of US$936 million, 31% lower as a result of reduced logistics availability and 1,000 200 tighter market environment. 900 180 C1 cash cost of productionA of US$85 per tonne, refle
Slide 5: Financial Review
FINANCIAL REVIEW Nikolay Kladiev, Chief Financial Officer Ferrexpo PLC | Interim Results Presentation (August 2022)
Slide 6: Financial Performance in 1H 2022
FINANCIAL PERFORMANCE IN 1H 2022 FOCUS ON HIGH QUALITY, HIGH GRADE PRODUCTS CONTINUES (USD million, unless stated) 1H 2022 1H 2021 % PRODUCTION SERVING AVAILABLE MARKETS Pellet production (Mt) 4,797 5,563 (14%) - 14% lower pellet production as a consequence of restricted access to markets following
Slide 7: Review of Cash Flow in 1H 2022
REVIEW OF CASH FLOW IN 1H 2022 BENEFITING FROM LOW DEBT LEVELS AND BALANCE SHEET STRENGTH (USD million, unless stated) 1H 2022 1H 2021 % FACTORS AFFECTING UNDERLYING EBITDAA Underlying EBITDAA 486 868 (44%) - Profitability impacted by lower sales volumes, rising energy costs and reduced commodity pr
Slide 8: Reconciliation of Underlying EBITDA
RECONCILIATION OF UNDERLYING EBITDAA KEY FACTORS: SALES VOLUMES, MARKET FACTORS AND C1 COSTS 900 KEY DRIVER: REVALUATION OF USD 196 14 UNDERLYING EBITDAA (US$, MILLIONS) DENOMINATED TRADE 84 RECEIVABLES, WITH UAH DEPRECIATION IN 1H 2022 AND OPPOSITE 600 290 EFFECT IN 1H 2021 MARKET FACTORS COMBINED:
Slide 9: Review of C1 Costs
REVIEW OF C1 COSTSA ENERGY PRICES AND NEW ROYALTIES REGIME1 KEY FACTORS IN 1H 2022 WATERFALL CHART: C1 COSTSA C1 COSTA COMPOSITION 3.4 0.5 80.0 EXPLOSIVES 13.2 2% ENERGY-LINKED COSTS: 46% US$ PER TONNE ROYALTIES 60.0 21.6 (1H 2021: 40%) 16% 40.0 85.3 ELECTRICITY 20.0 46.6 20% OUTER: 1H 2022 0.0 1H20
Slide 10: Market Review
MARKET REVIEW Brett Salt, Chief Marketing Officer Ferrexpo PLC | Interim Results Presentation (August 2022)
Slide 11: Market Snapshot
MARKET SNAPSHOT GLOBAL ENERGY COSTS AND INFLATION TAKING EFFECT MARKET FACTORS (1H 2022) IRON ORE PRICE (65% FE)1 250 - 1H 2022: 22% decrease overall. - Comprising: - 1Q 2022: 31% increase. 200 - 2Q 2022: 26% decrease. - Key drivers emerging in 2Q 2022: IRON ORE PRICE (65% FE)1 - War in Ukraine & gl
Slide 12: Market Outlook
MARKET OUTLOOK KEY FACTORS TO CONSIDER IN 2H 2022 STEEL PRICES Energy Costs Iron ore prices (14%) YTD price for European hot rolled coil1 +233% YoY European natural gas prices2 (30%) Change in iron ore prices since March 2022 Review: Rise in 1Q 2022 as increased raw Review: The ongoing war in Ukrain
Slide 13: Operations Review
OPERATIONS REVIEW Jim North, Chief Executive Officer Ferrexpo PLC | Interim Results Presentation (August 2022)
Slide 14: Operational Update
OPERATIONAL UPDATE ADAPTING OPERATIONS TO MEET ACCESSIBLE MARKETS MINING ACTIVITIES PELLET PRODUCTION LOGISTICS • Continuing at a reduced rate, • Focus on producing volumes for • Remains greatest constraint on reflecting lower production accessible markets. Ferrexpo business today. requirement for i
Slide 15: Sustainability Overview
SUSTAINABILITY OVERVIEW CONTINUED PROGRESS ON SUSTAINABILITY, DESPITE WAR IN UKRAINE SAFETY External assurance process (ISAE 3000) now completed on safety and greenhouse gas emissions data for 2021. 1 BIOFUELS 3 22% of pelletiser energy sourced from sunflower husks in 1H 2022 (FY 2021: 18%). 2 SUSTA
Slide 16: Thank You
THANK YOU.