Korea Zinc Co., Ltd. · KRX:010130
Korea Zinc — Q2 2022 Earnings Presentation
21 slides from Korea Zinc's earnings presentation, 2022
Slide 1: 2Q22 Korea Zinc Earnings Release
2Q22 Korea Zinc Earnings Release
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking information and statements with respect to market conditions, financial conditions, results of operations and business, and plans of the management. Please note they may differ from actual results. Financial results herein are under audit review,
Slide 3: 2Q 2022 Earnings
2Q 2022 Earnings KZ Standalone Sorin Corporation Sun Metals Corporation Zinc Oxide Corporation KZ Consolidated
Slide 4: KZ Standalone: Revenue by Product and Sales Volume
KZ Standalone Revenue by Product (bn KRW) 2,500 2,052 1,953 Others 2,000 1,819 1,817 1,706 158 100 109 137 86 ▪ Despite lower sales volume, favorable LME price 77 100 234 226 Copper 74 74 246 70 1,500 212 196 and FX rate has contributed to higher revenue 451 Gold 510 427 537 508 1,000 320 362 320 Si
Slide 5: KZ Standalone P&L summary
KZ Standalone P&L summary 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ YoY (bn KRW) Sales 1,819 1,706 1,953 1,817 2,052 12.9% 12.8% COGS 1,574 1,467 1,679 1,571 1,671 6.4% 6.1% ▪ Sales . Major logistic disruption has been resolved SG&A 21 20 25 25 33 28.9% 57.6% . Tailwind from LME price & strong USD contributed to
Slide 6: KZ Standalone BS summary
KZ Standalone BS summary 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ (bn KRW) Assets 7,653 7,965 8,321 8,256 8,580 3.9% Current Assets 3,754 4,017 4,444 4,247 4,247 0.0% Cash and financial instruments 1,920 2,100 2,125 1,744 1,725 -1.1% Inventories 1,834 1,917 2,318 2,503 2,520 0.7% ▪ Non-current asset Non-current
Slide 7: Sorin Corporation P&L summary
Sorin Corporation P&L summary 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ YoY (mn KRW) Sales 437,166 567,184 896,512 674,398 683,999 1.4% 56.5% COGS 412,849 539,385 867,294 615,432 658,754 7.0% 59.6% ▪ Sales . Higher average zinc price(+4.9% qoq) offset by lower SG&A 7,600 7,392 8,951 9,274 8,945 -3.6% 17.7% avera
Slide 8: Sun Metals Corporation
Sun Metals Corporation P&L summary 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ YoY (‘000 USD) Sales 213,584 201,527 174,430 151,924 176,938 16.5% -17.2% COGS 174,161 172,650 155,810 143,389 160,318 11.8% -7.9% ▪ Production . Commissioning delay have led curtailment of production SG&A* 10,759 10,695 10,869 7,393 11
Slide 9: Zinc Oxide Corporation
Zinc Oxide Corporation P&L summary 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ YoY (mn KRW) Sales 19,805 17,491 25,029 30,979 24,268 -21.7% 22.5% ▪ Sales . Due to annual routine maintenance in June, production & COGS 11,011 14,033 15,556 17,907 16,771 -6.3% 52.3% sales volume have dropped SG&A 533 586 932 631 729
Slide 10: KZ Consolidated P&L summary
KZ Consolidated P&L summary 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ YoY (bn KRW) Sales 2,375 2,415 2,986 2,661 2,851 7.1% 20.0% COGS 2,061 2,116 2,653 2,333 2,414 3.5% 17.1% SG&A 41 33 45 44 56 28.0% 36.6% ▪ Sales . Favorable business environment(e.g. LME price, FX rate, Operating profit 273 266 287 285 381 34
Slide 11: DEFINE 50: Redefining KZ's Next Years
DEFINE 50 Redefining KZ’s Next 50 Years Troika Drive Resource Recycling - GSDK Resource Recycling – Igneo Resource Recycling - KZ Copper
Slide 12: Troika Drive
Troika Drive Korea Zinc presents “TROIKA DRIVE”
Slide 13: Zinc Oxide Corporation to acquire GSDK
Resource Recycling Zinc Oxide Corporation to acquire GSDK to add flexibility to Korea Zinc’s feedstock mix 1. Basic Information of the deal . ZOC had signed an agreement with Mexico-based Zinc Internacional to acquire a 100% 4. EAFD Treatment Capacity equity stake in Global Steel Dust Korea(GSDK) 2.
Slide 14: Acquisition of IGNEO Holdings, LLC
Resource Recycling Acquisition of IGNEO Holdings, LLC will allow Korea Zinc to upgrade its standing in secondary copper refining 3. Governance Structure 1. Basic Information of Igneo . Igneo is a leading e-waste recycler . Proven, scalable, proprietary process to convert low-grade e-waste to sustain
Slide 15: KZ's High-Purity Copper
Resource Recycling KZ’s High-Purity Copper recovered in the form of by-products and low-quality recycled feedstock 1. Copper Manufacturing Process 2. Copper Production At a Glance Capacity (MT) Zinc concentrate Waste from other 40,000 PCB scrap Lead concentrate smelters 35,000 KZ Zinc process Electr
Slide 16: Appendix
APPENDIX Metal Market Sales Volume Breakdown Sales Revenue Breakdown 2Q22 Metal Prices & FX rates
Slide 17: Metal Market
Metal Market 2022 2023 Global (kt) ▪ With Chinese demand weak in the face of the covid restrictions in Mine Production 13,,050 13,654 many parts of the country, there has been enough refined zinc Refined Production 13,765 14,463 available for the rumoured Chinese exports of metal to materialize Cons
Slide 18: Sales Volume Breakdown
Sales Volume Breakdown KZ Standalone KZ 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ YoY Zinc(MT) Domestic 55,464 53,613 54,891 57,379 53,717 -6.4% -3.1% Export 108,086 93,801 109,177 89,090 100,030 12.3% -7.5% Total 163,550 147,414 164,069 146,470 153,746 5.0% -6.0% Lead(MT) Domestic 32,940 28,751 29,189 28,166 27
Slide 19: Sales Revenue Breakdown
Sales Revenue Breakdown KZ Standalone (bW) 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ YoY Zinc Domestic 193 194 227 260 282 8.5% 46.4% Export 366 340 438 402 529 31.6% 44.4% Total 559 535 665 662 811 22.5% 45.1% Lead Domestic 86 86 90 89 89 0.9% 4.0% Export 215 194 271 231 231 -0.1% 7.7% Total 301 280 362 320 320
Slide 20: 2Q22 Metal Prices & FX rates
2Q22 Metal Prices & FX rates Quarterly Average Index (KRW) 2Q21 3Q21 4Q21 1Q22 2Q22 QoQ YoY Zinc (USD/MT) 2,916 2,991 3,365 3,743 3,925 4.9% 34.6% Lead (USD/MT) 2,127 2,341 2,331 2,334 2,203 -5.6% 3.6% Gold (USD/oz) 1,815 1,790 1,795 1,874 1,874 0.0% 3.3% Silver (USD/oz) 26.70 24.36 23.32 23.94 22.6
Slide 21: IR contact
APPENDIX IR contact [email protected]