Cap S.a. · BCS:CAP
Cap — 17th Annual Andean Conference LarrainVial 2023
29 slides from Cap's conference presentation, Mar 21, 2023
Slide 1: CAP S.A. 17th Annual Andean Conference
CAP S.A. 17th Annual Andean Conference LarrainVial 21 March 2023
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 4Q22 2 Market Background 3 Consolidated financial results 4 Segments results 5 ESG update 6 CAPEX plan 2023
Slide 4: Part 1: Highlights
Part 1: Highlights
Slide 5: Highlights
Highlights CAP IS A MEMBER OF THE DJSI CAP AWARDED AS THE 2022 CMP BECOMES THE FIRST M I L A PA C I F I C A L L I A N C E F O R T H E C O M PA N Y OF THE YEAR BY P R I VAT E MINING C O M PA N Y TO SIXTH CONSECUTIVE YEAR AND ICARE IMPLEMENT THE 40-HOUR RANKS FOURTH WORLDWIDE IN WORKING WEEK I T S I N
Slide 6: Part 2: Market Background
Part 2: Market Background
Slide 7: Iron ore market
Iron ore market Iron ore price (CFR China) Brazil-China freight rate 300 100 60 90 250 50 80 70 200 40 60 US$/ dmt US$/dmt US$/wmt 150 50 30 40 100 20 30 20 50 10 7 10 0 0 0 65% Fe - 62% Fe premium Platts 65% Fe CFR China Platts 62% Fe CFR China Pellet premium (USD/dmt) 4Q22 4Q21 2022 2021 (USD/wmt)
Slide 8: Context in China
%YoY Interannual Growth (%) 100 150 -50 0 -100 50 15 25 35 -5 5 -15 Feb-19 Mar-16 Apr-19 Jun-16 Jun-19 Sep-16 Aug-19 Dec-16 Source: Bloomberg – NBS Mar-17 Oct-19 Jun-17 Dec-19 Sep-17 Feb-20 Dec-17 Apr-20 Mar-18 Jun-18 Jun-20 Sep-18 Aug-20 Dec-18 Oct-20 Mar-19 Dec-20 Jun-19 Feb-21 Sep-19 Dec-19 Apr-2
Slide 9: Steel market
US$/t 200 400 600 800 1.000 1.200 0 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Metal bulletin Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 MB Rebar Turquia (l) Jul-17 Oct-17 Jan-18 2) Cámara chilena de la construcción Source: 1) CRUspi index @ 100 as of April 1994 Apr-18 Jul-18 Oct-18 Jan-
Slide 10: Part 3: Consolidated Financial Results
Part 3: Consolidated Financial Results
Slide 11: Main consolidated financial figures 4Q22
Main consolidated financial figures 4Q22 Revenue (US$ million) EBITDA (US$ million) Net income (US$ million) - 7% - 31% -87% 907 305 140 844 210 11 18 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 4Q22 revenue, EBITDA and net income lower than in 4Q21, mainly due to a lower performance in the steel production and s
Slide 12: Main consolidated financial figures 2022
Main consolidated financial figures 2022 Revenue (US$ million) EBITDA (US$ million) Net income (US$ million) - 18% - 50% -70% 3,677 741 1,814 3,008 910 226 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 2022 revenue, EBITDA and net income lower than in 2021, mainly due to lower iron ore prices, inflation
Slide 13: Contribution by segment in 4Q22
Contribution by segment in 4Q22 (US$ million) Contribution to 4Q22 Revenue -4% 3% 15% 19% 67% 13 Mining Steel production Steel processing Infrastructure Intercompanies • Mining: 4% higher prices, 5% higher volumes and 10% higher cash cost per ton • Steel production: 20% lower prices, 21% lower volum
Slide 14: Contribution by segment in 2022
Contribution by segment in 2022 (US$ million) Contribution to 2022 Revenue -6% 1,814 3% 19% 61% 14 23% Mining Steel production Steel processing Infrastructure Intercompanies • Mining: 24% lower prices, 1% higher volumes and 11% higher cash cost per ton • Steel production: 12% higher prices, 20% lowe
Slide 15: CAP Group cash generation
CAP Group cash generation (US$ million) • Positive operating cash flow, but lower than last year’s, due to higher working capital needs and tax payments for US$ 474 million • Negative cash flow from investing activities mainly due to CAPEX disbursement of US$ 423 million • Negative financing cash fl
Slide 16: Financial debt and covenants
Financial debt and covenants Evolution of net financial debt (US$ million) Net Financial Debt to EBITDA ratio (times) 4.5 4.5 4.5 4.5 1.333 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 1.168 1.144 1.061 3.1 962 943 933 907 2.7 720 787 814 786 685 743 718 726 2.1 623 664 658 679 660 612 711 613 557 610 483 480 33
Slide 17: Part 4: Segments Results
Part 4: Segments Results
Slide 18: Mining 2022
Mining 2022 Copiapó Copiapó Valley Compañía Minera del Pacífico is the leading iron ore and pellets producer on the Cerro Negro Norte American Pacific coast, with operations in Chile’s Atacama and Coquimbo regions, developing products with high iron content: Planta Magnetita • Pellet Feed 66% to 69%
Slide 19: Iron ore volumes and product mix
Iron ore volumes and product mix Production (million ton) Shipments (million ton) 16,3 16,4 4,7 4,5 4,4 4,3 4,1 4,1 3,9 3,8 3,7 3,6 3,3 3,4 3,1 2,6 2,5 5,1 5,3 1,8 4,8 4,3 4,6 4,6 3,9 4,0 4,1 2,6 2,6 2,9 2,6 2,9 1,9 2,2 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22
Slide 20: CMP cash cost evolution
CMP cash cost* evolution (US$/t (FOB)) CMP's cash cost under inflationary pressures that have especially affected the price of key inputs, and labor and services costs. Guidance for this year in the range of US$ 50 - 55 / ton Cash Cost 75,5 59,2 59,1 55,2 56,6 52,0 51,5 [50,0 – 55,0] 52,7 51,3 49,5
Slide 21: Steel production 2022
Steel production 2022 Compañía Siderúrgica Huachipato is the leading steel producer in Chile • Supplies ~70% of the conventional grinding media consumed in the mining industry in Chile and Peru • Manufactures long steel products: Huachipato • Bars for mineral grinding media • San Vicente Bay • Reinf
Slide 22: Steel volumes and product mix
Steel volumes and product mix Production (thousand tons) Shipments (thousand tons) 228 229 215 208 208 198 196 194 199 200 195 186 189 188 188 186 189 181 180 181 180 181 163 158 154 154 144 148 141 138 131 124 4Q22 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 1Q22 1Q19
Slide 23: Steel processing 2022
Steel processing 2022 Steel Processing Group (SPG) is composed of the following companies in SPG promotes the development of the construction Chile, Peru and Argentina: Cintac, Promet, Calaminon, Tupemesa, Agrow and and metal-mechanic sectors in Chile, Peru and Tubos Argentinos (TASA). Argentina thr
Slide 24: Infrastructure 2022
Infrastructure 2022 The infrastructure segment includes 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: 4Q22 4Q21 2022 2021 US$29 million US$25 million US$102 million US
Slide 25: Part 5: ESG Updates
Part 5: ESG Updates
Slide 26: ESG updates
ESG updates CAP is included in The Sustainability Yearbook for the second consecutive year • The publication, which considers the most distinguished companies in sustainability, placed CAP as one of the leaders in the industry. • The inclusion of CAP in this global ranking elaborated by S&P is mainl
Slide 27: Part 6: CAPEX plan 2023
Part 6: CAPEX plan 2023
Slide 28: CAPEX plan 2023
CAPEX plan 2023 CAPEX breakdown per business segment Breakdown per type of investment 5% 5% 13% 12% US$ 501 million US$ 501 million 27% 55% 79% 4% 28 Iron ore mining Steel production Infrastructure Steel processing Maintenance Cost reduction Sustainability Growth • 50% of CMP’s CAPEX is explained by
Slide 29: CAP S.A.
CAP S.A. 17th Annual Andean Conference LarrainVial 21 March 2023