Ganfeng Lithium Group Co., Ltd. Class A · SZSE:002460
Ganfeng Lithium Group Co., Ltd. Class A — Investor Presentation (April 2021)
22 slides from Ganfeng Lithium Group Co., Ltd. Class A's investor presentation, April 2021
Slide 1: Company Presentation
Company Presentation April 2021 Strictly Private and Confidential
Slide 2: 1. Recent Developments
— 1. Recent Developments eee
Slide 3: Ganfeng Lithium – China’s Largest Lithium Compounds Producer
Ganfeng Lithium – China’s Largest Lithium Compounds Producer No.1 No.1 Lithium Hydroxide Production Lithium Metals Production Capacity Globally Capacity Globally 7 382 Investments in Research & Upstream Resources Development Staff RMB5.49bn (US$844m)1 RMB1.15bn (US$178m)1 FY2020 FY2020 Total Revenue
Slide 4: Recent Developments
Recent Developments Lithium Resources Cauchari-Olaroz (Argentina) Bacanora / Sonora (Mexico) Minmetals Salt Lake (China) 1 Increased shareholding in Minera 2 Acquired 28.8% interest in 3 Planning to acquire 49% interest in Exar to 51% Bacanora Lithium and 50% Minmetals Salt Lake in Qinghai province
Slide 5: Business Update
Business Update Pricing Outlook Capacity Expansion ✓• Lithium Carbonate price is ✓• Focus on reducing expected to remain LT production costs and strong due to growing expanding capacity demand ✓• Domestic capacity expects to reach 100K ton LCE in ✓• Rising market price of 2020A Spodumene Concentrate
Slide 6: Proven Financial Track Record
Proven Financial Track Record Revenue Gross Profit | Gross Profit Margin (RMB mm, %, RMB 000/ton) (RMB mm, %) 38% 40% 36% 24% 21% 5,489 5,246 4,890 4,171 1,675 1,754 2,633 1,238 1,161 1,005 2016A 2017A 2018A 2019A 2020A 2016A 2017A 2018A 2019A 2020A Adjusted EBITDA2 Adjusted Net Profit2 (RMB mm, %)
Slide 7: 4Q20 Financial Update
4Q20 Financial Update Revenue1 (RMB mm) 2020 Update 1631 1,493 1,506 1,330 1,388 1,308 1,131 Total sales of 63,013t LCE in 2020, total 1,079 production of 54,312t LCE in 2020 Inventory at 2020 Dec 31 is 5,937t LCE 4Q GP Margin increased significantly due to higher Lithium Carbonate price 1Q19
Slide 8: 2. Investment Highlights
ve estm ighlights GanfengLithium
Slide 9: Vertically Integrated Business Model with Synergies Across the Value Chain
1 Vertically Integrated Business Model with Synergies Across the Value Chain Spodumene Clay Brine Li Li Pharmaceutical Used battery recycling Raw materials of lithium Catalyst Recycling Ni, Mn, Co ceuticals Pharma- Ternary Lithium Lithium Other Lithium Lithium Lithium precursor Hydroxide Carbonate C
Slide 10: World-leading Position in Lithium Compounds and Metals with High Barriers to Entry
2 World-leading Position in Lithium Compounds and Metals with High Barriers to Entry Upstream and Midstream Segments Offer the Highest Margin High Barriers to Entry Favoring Established Producers Lithium Upstream Lithium Cathode Hexafluoro- Lithium Resources Compounds Materials phosphate Electrolyte
Slide 11: Access to Secure, High Quality Supply of Lithium Raw Materials
3 Access to Secure, High Quality Supply of Lithium Raw Materials Ireland • Avalonia (Spodumene) – Resource: In preliminary exploration – Equity interest: 55.0% in the project China • Ningdu Heyuan (Spodumene) – Resource2: 0.1 mt LCE – Equity interest: 100.0% Mexico Australia • Sonora (Lithium Clay)
Slide 12: Access to Secure, High Quality Supply of Lithium Raw Materials (Cont’d)
3 Access to Secure, High Quality Supply of Lithium Raw Materials (Cont’d) Our upstream offtakes are sufficient to support our downstream demand and the flexible pricing mechanism provide us margin protection in tough environment. Type of Project name Current offtaking situation Project progress reso
Slide 13: Lowest-CAPEX Intensity for New-Build Capacity
4 Lowest-CAPEX Intensity for New-Build Capacity Chemical Plant Capital Intensity (US$/ton LCE) 25,000 Ganfeng has an experienced in-house EPC team that has delivered industry- 20,000 leading production capacities with the lowest CAPEX 15,000 10,000 5,000 0 Ganfeng Ganfeng Jiangte* Yahua* Shandong Ge
Slide 14: Blue-chip Customer Base with High Visibility for Growing Demand
5 Blue-chip Customer Base with High Visibility for Growing Demand Cathode Battery OEMs Producers Producers Fixed Volume Long-term Market-based Adjustable Contract 1 2 Contracts Pricings • Most of contracts lock down Supply Contracts & Selected • Help establish long-term purchasing volumes from clien
Slide 15: Blue-chip Customer Base with High Visibility for Growing Demand (Cont’d)
5 Blue-chip Customer Base with High Visibility for Growing Demand (Cont’d) Electric Vehicle 8% 1/3 51% of Global Car Sales of Global Car Sales of Global Car Sales from EV from EV from EV Now By 2025 By 2030 More to Come Supplies lithium compounds to Provides lithium compounds Commits 20% of its lith
Slide 16: Advanced Technologies and Outstanding Research and Development
6 Advanced Technologies and Outstanding Research and Development Outstanding Research and Development Capabilities Recent Awards 382 Research and Development staff National National Key High-tech Intellectual Technology Enterprise of Property Innovation China Torch Advantages Demonstration Program E
Slide 17: Visionary and Experienced Management Team with an Established Talent Pool
7 Visionary and Experienced Management Team with an Established Talent Pool • Mr. Li, our founder, has been serving as Chairman of • Mr. Wang joined Ganfeng in 2006 and was the Board of Directors since the incorporation of appointed Vice Chairman of the Board of Directors Ganfeng in 2010 • He has be
Slide 18: Appendix
GanfengLithium
Slide 19: Highly Integrated Business Model
Highly Integrated Business Model FY2020 Revenue: RMB5,489mm (USD844mm) / Adj. EBITDA: RMB1,152mm (USD178mm) Lithium Compounds and Lithium Metals Lithium Batteries Others Key Revenue: RMB3,854mm Revenue: RMB1,267mm Revenue: RMB367mm Gross Profit: RMB888mm Gross Profit: RMB206m Gross Profit: RMB67mm F
Slide 20: Our Worldwide Operations
Our Worldwide Operations Fengxin Ganfeng Jiangsu Ganfeng1 Ireland • Avalonia Yichun Ganfeng Ganfeng Recycling China Ganfeng Lithium • Ningdu Heyuan Power Battery Plant Ningbo R&D Mexico Center • Sonora Xinyu Basic Lithium Plant Specialty Lithium Plant Zhejiang Fengli1 Argentina • Mariana Ningdu Heyu
Slide 21: Spodumene-Based Nameplate Capacity By 2021
Spodumene-Based Nameplate Capacity By 2021 Fronted Ore Processing Capacities Backend Lithium Compounds Capacities Xinyu Basic 15kt Lithium Carbonate Lithium Plant 22.5kt LCE Stage 1 11kt Lithium Chloride Xinyu Basic Lithium Plant 22.5kt LCE 31kt Hydroxide Lithium Stage 2 Lithium Sulfate Solution Xin
Slide 22: Disclaimer
Disclaimer This document has been prepared by Ganfeng Lithium Co., Ltd. (the “Company” or “us”) for a limited number of recipients and for information purposes only and not for public dissemination. You and your directors, officers, employees, agents and affiliates must hold this document and any or
Ganfeng Lithium Group — Investor Presentation (April 2021) on 6ix