FER R EXPO 2 0 1 4 FU LL YEA R R ESU LTS PR ESEN TATION D I S C L - PowerPoint PPT Presentation

FER R EXPO 2 0 1 4 FU LL YEA R R ESU LTS PR ESEN TATION

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IN TR OD U C TION MIC H AEL ABR AH AMS C BE D L, C H AIR MAN 3

2014 FIN AN C IALS R ESU LTS C H R IS MAW E , C FO 4

2 0 1 4 : S T R O N G P E R F O R M A N C E US$M (unless otherwise stated) 2014 2013 % Change  Benchmark iron ore price down 47% in 2014 from US$135/t to US$72/t, however Total production (kt) 11,021 10,813 2%  Strong performance highlights strength of business model Sales volumes (kt) 11,167 10,689 5%  Higher pellet premiums Average CFR 62% fines price (US$/t) 97 135 (28%)  Improved pricing terms Revenue 1,388 1,581 (12%)  Increased production volumes and quality C1 cash cost (US$/t) 46 60 (23%)  Improved efficiency Operating foreign exchange gains 76 1 n/a  Lower costs (currency effects) EBITDA 506 496 (2%) Impairments (1) (84) n/a  Lower freight – from December Profit for the period 264 184 (30%)  Dividend retained in line with 2013 Income tax % 28% 14% 100%  Capex to complete QUP & CUP; 12 MTPA capacity reached Diluted eps 30.39 44.69 (31%)  FYM concentrator on hold Net cash flow from operating activities 288 233 24%  Net debt increased modestly by US$39M CAPEX 235 278 (15%)  US$20M increase in VAT (no repayment in Nov & Dec), normal repayments in Jan & Feb 2015 13.2 Dividend 13.2 - Closing net debt 678 639 6% Net assets 718 1,735 (59%) 5

H I G H E R V O L U M E S , I N D E X B A S E D P R I C I N G , I M P R O V E D P E L L E T P R E M I U M S A N D L O W E R C O S T S S U P P O RT E D 2 0 1 4 E B I T D A REVENUE 2014 VS. 2013 (US$M) EBITDA 2014 VS. 2013 (US$M) 1600 64 11 430 1400 62 164 1200 600 1000 500 800 76 1,388 1,581 400 43 600 430 35 104 300 45 23 496 400 506 200 164 200 100 0 0 2013 Spot 62% Fe Pellet Volume, own Freight & 2014 2013 Spot 62% Pellet Volume, C1 / Other costs / C1 / forex Other costs / Forex non- 2014 EBITDA Fe fines premium & own ore constant constant effect forex effect cash gain EBITDA revenue fines premium & ore other revenue price price currency currency realisation realisation 6

L O W E R C O S T S C1 CASH US$ PER TONNE BREAKDOWN OF C1 CASH COST 60 4% Royalites 3% Explosives 6% Spares 55 7% Maintenance 25% Electricity -23% 50 US$ per tonne 7% Grinding bodies 45 10% 60 46 Personnel 15% Gas -22% 40 10% Materials 35 13% Fuel 36 30 2013 2014 Jan/Feb 2015 45% = FPP 1 52% = FPP 1 81% = FPP 1 C1 cost US$14 per tonne lower  Largely driven by UAH devaluation  Average Average Average 2015 Current spot  Positive FYM contribution 2013 2014 as of 28 Feb (approximately) 15% decline in gas prices  2015  Improved consumption norms UAH vs. US$ 8.0 11.9 20.3 23.0 14% increase in electricity tariffs   Increased royalty payments in UAH 1 Ferrexpo Premium Pellets, 65% Fe 7

M A J O R C A P E X P R O G R A M M E S C O M P L E T E D – 1 2 M T PA C A PA C I T Y A C H I E V E D MAJOR CAPEX PROGRAMMES DELIVERED Project (US$M) 2014 2013 Status  CUP: modernisation complete  QUP: final of 3 floatation units commissioned in 1Q 15 (c. US$3M) Capacity upgrade project 37 20 Complete Sustaining capex (incl. logistics) 43 67  FYM: mining infrastructure complete Total sustaining capex 80 87  November 2014 run rate 11.5 MTPA of pellets Quality upgrade project 44 47 Complete 1Q 2015  January 2015 1 MT pellet production, February 2015 all 65% pellet output FYM 74 100 Complete Logistics 18 20 Complete Other projects 19 24 Complete Total development capex 155 191 Total capex 235 278 US$2 BILLION CAPEX PROGRAMME SINCE IPO DELIVERING BENEFITS TO CONSUMPTION NORMS Electricity consumption (kWh/t pellets) Gas (m 3 /t pellets) Grinding bodies (t/th.t pellets) 18.5 200 18.0 6.0 190 5.5 17.5 5.0 180 17.0 4.5 170 4.0 16.5 3.5 160 16.0 3.0 150 15.5 2.5 140 2.0 15.0 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 8

C A S H F L O W S 2 0 1 4 V S . 2 0 1 3 2014 2013 % Change US$M (unless otherwise stated)  EBITDA flat year on year EBITDA 496 506 (2%)  Working capital reflects VAT refunds Non cash operating forex gain (76) (1) n/a  Sustaining capex in-line with historic run rate Interest, tax & working capital (132) (272) (51%)  42% increase in free cash flow Net cash flows from operating activities 288 233 24%  Growth projects complete Sustaining capex (80) (87) (8%)  Drawdown of PXF facility in 2H 2014 increased liquidity Free cash flow 208 146 42%  Strong credit metrics maintained, net debt to EBITDA 1.4x Development capex (155) (191) (21%) Dividend (77) (78) - Acquisition - (82) n/a Other (15) (10) n/a Change in net debt (39) (215) (82%) Net debt at period end (678) (639) (6%) Net debt to EBITDA (x) 1.4 1.3 - Cash balance at period end 627 390 60% 1 US$54M bond prepayment as announced on 23 February 2015 9