Slide 1: CAP S.A. 2022 First Quarter Results Presentation
CAP S.A. 2022 FIRST QUARTER RESULTS PRESENTATION 11 May 2022
Slide 2: Forward-looking statements disclaimer
This information material may include certain forward-looking statements and projections provided by CAP S.A. (the “Company“) with respect to the financial condition, results of operations, cash flows, plans, objectives, future performance, and business of the Company. Any such statements and projec
Slide 3: Agenda
Agenda 1 Highlights 1Q22 2 Market background 3 Consolidated financial results 1Q22 4 Results by business segment 5 ESG Topics
Slide 4: Agenda
Agenda 1 Highlights 1Q22 2 Market background 3 Consolidated financial results 1Q22 4 Results by business segment 5 ESG Topics
Slide 5: Highlights 1Q22
1. Highlights 1Q22 CAP publishes its first Annual Integrated Report Following the best corporate governance practices, last April Grupo CAP published its first integrated report, in which it presents its operational, financial and sustainable results for 2021 and the ongoing strategy around those ar
Slide 6: Market background
2. 1 Highlights 1Q22 2 Market background 3 Consolidated financial results 1Q22 4 Results by business segment 5 ESG Topics
Slide 7: Iron ore market
Iron ore market Iron ore price (CFR China) Brazil-China freight rate 300 60 250 50 200 40 US$/wmt US$/wmt 150 30 100 20 50 10 0 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 0 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Ja
Slide 8: Steel Market
Steel Market Steel Price 1200 400 Steel Price 1000 350 350 1000 900 300 800 300 700 250 800 600 250 200 US$/t 500 150 US$/t 600 200 400 300 100 150 200 400 50 100 100 0 0 200 50 MB Rebar Turquia Global Long products Price Indicator 0 0 Jan-14 Jan-19 Jun-14 Apr-15 Dec-16 May-17 Apr-20 Jul-16 Mar-18 D
Slide 9: Consolidated financial results 1Q22
3. 1 Highlights 1Q22 2 Market background 3 Consolidated financial results 1Q22 4 Results by business segment 5 ESG Topics
Slide 10: Main consolidated financial figures 1Q22
Main consolidated financial figures 1Q22 Revenues (US$ million) EBITDA (US$ million) Net income (US$ million) 818 -4% 460 -20% 205 -34% 787 366 137 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 Despite high iron ore prices, lower revenues, EBITDA and net income than in 2021, due to a high basis of comparison (histo
Slide 11: Contribution by segment to EBITDA 1Q22
Contribution by segment to EBITDA 1Q22 (US$ million) Contribution to 1Q22 EBITDA 4% -2% 5% -2% 95% Mining Steel SPG Infrastructure Holding • Mining: 11% higher volumes and 16% lower prices • Steel: 43% higher prices and 31% lower volumes • Steel processing: 29% higher prices for steel products and 2
Slide 12: CAP Group cash flow generation
CAP Group cash flow generation (US$ million) • Increase in working capital results in negative operating cash flow in 1Q22 • Net amortization of financial debt for US$ 25.0 million • Financial interest payment of US$ 11.2 million
Slide 13: Strong balance sheet: negative net financial debt
Strong balance sheet : negative net financial debt Evolution of net financial debt (US$ million) Financial debt maturity profile(US$ millions) 315 1.333 1.168 1.144 161 962 943 907 720 787 814 685 743 718 726 37 623 679 34 36 41 664 658 660 26 15 16 612 14 15 14 14 557 613 483 480 2022 2023 2024 202
Slide 14: CAP Group's credit metrics
CAP Group’s credit metrics Net Financial Debt to EBITDA ratio (times) EBITDA to Net Interest Expense ratio (times) 4,50 4,50 4,50 4,50 4,00 4,00 4,00 4,00 4,00 4,00 4,00 4,00 29,98 29,09 27,88 28,28 3,12 2,71 17,82 2,10 1,83 12,36 1,32 7,77 0,82 5,62 3,80 4,29 0,19 2,30 2,82 0,03 0,06 -0,13 -0,12 -0
Slide 15: Results by business segment
4. 1 Highlights 1Q22 2 Market background 3 Consolidated financial results 1Q22 4 Results by business segment 5 ESG Topics
Slide 16: Mining
Mining Compañía Minera del Pacífico operates in Atacama and Coquimbo regions, developing products with high iron ore content: Punta Totoralillo Cerro Negro Norte Port Copiapó • Pellet Feed 66% to 69% Fe content. • Pellets 65% to 67% Fe content. Copiapó Valley Planta Magnetita • Sinter Feed 62% to 64
Slide 17: Iron ore volumes and product mix
Iron ore volumes and product mix Production (million ton) Shipments (million ton) 5,1 4,8 4,6 4,6 4,5 4,3 4,1 4,1 4,3 3,9 3,7 3,9 3,8 3,3 3,4 2,9 2,9 3,1 2,6 2,6 2,6 2,6 2,5 2,2 1,9 1,8 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 18: CMP cash cost evolution
CMP cash cost* evolution (US/t (FOB)) CMP's cash cost was above the estimated range due to cost pressures and lower shipments than average Cash Cost 75,5 59,2 59,1 55,2 52,7 51,3 49,6 48,2 45,2 46,3 47,1 47,2 45,5 45,9 42,5 41,0 41,0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2
Slide 19: Steel Production
Steel Production Compañía Siderúgica Huachipato manufactures long steel products: • Bars for mineral grinding media • Reinforcing bars for construction Huachipato • Wire rod • San Vicente Bay • Special steels • Coal, limestone and iron ore unloading • Shipments of steel products 1Q22 1Q21 Revenue US
Slide 20: Steel volumes and product mix
Steel volumes and product mix Production (thousand tons) Shipments (thousand tons) 250 228 229 208 198 208 215 200 195 189 200 186 189 196 188 194 180 188 186 199 181 163 158 141 148 138 150 131 124 100 50 - 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1Q19 2Q19 3Q19 4Q19 1Q20 2Q
Slide 21: Steel Processing
Steel Processing SPG promotes the development of the construction and metal- Steel Processing Group (SPG) is composed of the following companies in Chile, mechanic sectors in Chile, Peru and Argentina, through different Peru and Argentina: Cintac, Promet, Calaminon, Tupemesa, Sehover, Signovial, pro
Slide 22: Infrastructure
Infrastructure The infrastructure segment groups port, water and energy assets that provide services to our mining and steel businesses, as well as other customers located in the area of operation. It is currently comprised of: Desalination Plant: Cleanairtech 1Q22 1Q21 Revenue US$23 millon US$25 mi
Slide 23: ESG Topics
5. 1 Highlights 1Q22 2 Market background 3 Consolidated financial results 1Q22 4 Results by business segment 5 ESG Topics
Slide 24: ESG topics
ESG topics ESG goals : Reduce continental Reduce water Reduce CMP water consumption at emissions by consumption at CSH by 50% 40% CMP by 30% 2024 2025 2030 Reduce scope 1 and 2 GHG Reach 12% emissions for female presence CAP Group by in CSH 24% All future mining projects to use 100% desalinated wate
Slide 25: ESG topics: initiatives in place
ESG topics Initiatives in place to achieve our objectives: Electromobility: Construction of chimney Replacement of coal with Fleet of electric buses precipitator 2B at Pellet liquified natural gas (LNG) at Electric shovels at Los Colorados Plant the Pellet Plant Mine Water recirculation projects CSH
Slide 26: CAP S.A. 2022 First Quarter Results Presentation
CAP S.A. 2022 FIRST QUARTER RESULTS PRESENTATION 11 May 2022