Producing iron ore pellets for 35 years

2 0 1 3 A N N U A L R E S U LT S

D I S C L A I M E R

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I N T R O D U C T I O N M I C H A E L A B R A H A M S C B E D L , C H A I R M A N

3

2 0 1 3 F I N A N C I A L R E S U LT S C H R I S M AW E , C F O

4

2 0 1 3 H I G H L I G H T S : I N C R E A S E D V O L U M E S D R I V I N G G R O W T H

― Record pellet production of 11mtpa

― Revenue reflects higher sales volumes & prices

― Remained competitively positioned on global cost curve ― C1 costs inline with 2012 ― C1 cost declined by 10% during the year following

FYM ramp up in 1Q13

― Projects remain on track, lower capex reflects savings & focus to maintain balance sheet strength

― Strong credit metrics maintained

― Final dividend of US3.3 cents per share

― Special dividend of US6.6 cents per share

5

US$M (unless otherwise stated) 2013 2012 Change Revenue 1,581 1,424 11% EBITDA 506 405 25% Profit for the year 264 219 21% Diluted eps 44.69 37.08 21% Net cash flow from operating activities 233 119 96% Capital investment 278 429 (35%) Cash balance at 31/12 390 597 (33%) Net debt 639 423 51% Net debt to EBITDA 1.3x 1.1x Shareholder funds 1,713 1,527 12% Final ordinary dividend (cents) 3.3 3.3 - Special dividend (cents) 6.6 6.6 -

US$M (unless otherwise stated) 2013 2012 Pellet production from own ore (000’ tonnes) 10,466 9,409

Pellet sales (000’ tonnes) 10,689 9,675 Revenue 1,581 1,424 C1 cost per tonne 59.8 59.6 Gross profit 808 733 % margin 51% 51% Selling and distribution (336) (312) General admin and other (77) (76) Write down of VAT receivable (36) - Financing incl. non-operating Forex (54) (79) Profit before tax 305 266 % margin 19% 18% Income tax % 14% 18% Profit for the year 264 219 Diluted eps (US cents) 44.69 37.08

I N C O M E S TAT E M E N T 2 0 1 3 V S . 2 0 1 2

― Production from own ore increased 11%, adding US$40M to EBITDA

― Average prices up 4% compared to prior year ― C1 costs reflect FYM impact: volume efficiencies, lower mining

costs & higher grade ore, UAH stable ― S&D reflects higher volumes offset by freight savings ― General admin costs inline with 2012 ― VAT write down of US$36M reflecting estimated discount ― Finance expense included US$20M discount for VAT in 2012 ― Strong set of results in stable market environment

6

1,424

127

37 1 8

1,300

1,350

1,400

1,450

1,500

1,550

1,600

1,650

2012 revenue Sales volume Sales price, own ore CIF/CFR sales Other 2013 revenue

1,581

R E V E N U E 2 0 1 3 V S . 2 0 1 2

7

US$M

E B I T D A 2 0 1 3 V S . 2 0 1 2

8

US$M

405

506

40 56

17 12 11 12 1 0

0

100

200

300

400

500

600

2012

EBI

TDA

Sales

volum

e

Iron o

re pr

ices

Custo

mer m

ix

Freig

ht sa

vings

Glob

al fre

ight

price

s

C1 co

st

DAP/

FOB

distrib

ution

costs

G&A

& oth

er

2013

EBI

TDA

C 1 C A S H C O S T S B E N E F I T T I N G F R O M F Y M

9

63.9

59.8

58.2 57.6

59.8 59.6

54 55 56 57 58 59 60 61 62 63 64 65

1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 FY 2012

US$ C

1 Cas

h cos

t

Breakdown of C1 cash cost

― 7% increase in electricity tariffs ― Other C1 costs slightly lower, particularly oil & gas ― UAH stable in 2013, YTD depreciated by 16% ― FYM: 20% contribution to Group volumes, lower mining costs,

higher grade ore (vs. FPM lean ore)

25.5%

13.0%

11.8% 11.4%

9.8%

7.6%

7.0%

6.3% 4.1% 3.6% Electricity

Gas Materials Fuel Personnel Costs Maintenance & consumables Grinding bodies Spare parts Explosives Royalties

kWh p

er to

nne o

f pell

ets

205.5179.2 173.1 165.1

0

80

160

240

2005 2011 2012 2013

C1 cash cost evolution

Electricity consumption

C A S H F L O W 2 0 1 3 V S . 2 0 1 2

― Working capital reflects stocking of FPM lean ore & pre-payment of corporate profit tax

― VAT stabilised, US$318M VAT outstanding at 31 Dec 20131

― US$87M pre-paid corporate profit tax (CPT) at 31 Dec 2013 ― VAT & pre-paid CPT 63% of net debt ― Sustaining capex reducing: US$45M excl mine fleet

replacement & capacity upgrade project ― Growth projects near completion ― US$82M investment in Ferrous Resources ― Strong credit metrics, net debt to EBITDA of 1.3x

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1. VAT repayments were received in January 2014, reducing the gross VAT balance to US$291million

US$M (unless otherwise stated) 2013 2012 EBITDA 506 405 Working capital movements (103) (128) Interest paid (56) (56) Tax and other (113) (102) Net cash flow from operating activities 233 119 Sustaining CapEx (86) (113) Free cash flow 149 6 Development CapEx (192) (316) Dividend (78) (39) Acquisitions & other (80) 10 Net financing (outflow) / inflow (6) 46 Net increase / (decrease) (207) (293) Cash balance at 1 January 597 890 Cash balance at 31 December 390 597 Net debt at 31 December 639 423 Net debt to EBITDA 1.3x 1.1x

2 0 1 3 C A P E X R E F L E C T S E X P E N D I T U R E O N A P P R O V E D P R O J E C T S & S AV I N G S

Project status: FPM CUP1: – Concentrating capability increased to 1.1mt per month through 2013 – On track to achieve annualised processing capability of 12 million

tonnes of pellets FPM MLE2: – Stripping as per plan, mine life on track to be extended to 2038

FPM QUP3: – New grinding & floatation cell installed in 2013, further cell in 2014 – Expect 100% 65% Fe pellet production by year end 2015

FYM: Phase 1 – Mine complete & in production, mining infrastructure largely finished Phase 2 – 10mtpa concentrator, filtration plant & tailings handling facility to

produce 67% Fe fines – Detailed engineering complete, awaiting Board approval

Logistics: – Rail cars: purchased 267 units in 2013, total fleet at 31 Dec 13: 2,200.

300 units to be delivered in 2014 – Shipping: Top-off facility reduced freight costs by US$2.30 per tonne

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US$M 2013 2012

FPM 142 192

Sustaining/CUP1 81 108

Mine life extension2 15 49

Quality upgrade3 47 35

FYM 100 146

Other: 36 91

FBM, other deposits 9 42

Logistics 26 49

Total 278 429

Capital expenditure

1. CUP – capacity upgrade project, 2. MLE – mine life extension 3.QUP – quality upgrade programme

Credit Metrics – High Liquidity

B A L A N C E S H E E T 2 0 1 3 V S . 2 0 1 2

– New committed PXF US$350M, currently undrawn1

– Diversified sources of funding

– No material debt repayments in 2014 & 2015

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Pro forma Gross Debt Maturity Profile at 31 December 20131

Net Debt / EBITDA

2007 2008 2009 2010 2011 2012 2013 0.5 0.4 1.9 0.2 0.1 1.1 1.3

1. Ferrexpo secured a new PXF facility in 2013 for US$350M maturing in 2018. This facility remains undrawn & as of 31 December 2013, US$280M of the US$350M was available. Once repayment of Ferrexpo’s US$420M PXF commences in 2014 the remaining US$70 million of the US$350M PXF will become available.

US$M 31 Dec 2013 31 Dec 2012

Cash and Equivalents 390 597

Total Gross Debt 1,029 1,020

Net Debt (639) (423)

Total Equity 1,735 1,547

Undrawn Facilities1 280 0

Total Liquidity (Facilities + Cash) 670 597

US$M

0

100

200

300

400

500

600

700

2014 2015 2016 2017 2018 2019

C O N C L U S I O N TO F I N A N C I A L R E V I E W

– Record production & sales volumes – Profitability increased: higher output, higher prices, freight savings, stable C1 costs, lower

admin costs – Costs reduced steadily throughout 2013 – Growth projects on track, output to increase going forward – Special dividend reflects strong performance – Healthy credit metrics maintained – VAT stabilised – Weaker UAH has reduced local costs

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B U S I N E S S U P D AT E K O S T YA N T I N Z H E VA G O

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M A R K E T I N G & L O G I S T I C S

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G R O W I N G L O G I S T I C S C A PA B I L I T Y

Rail cars – Increased fleet (+267; 2,200 cars as of 31 December) – Provided savings & improved service reliability to customers – Aim to maintain self sufficiency as volumes grows Seaborne freight – Benefited from higher number of cargoes shipped by capes (22 in 2013 vs.

17 in 2012) – Market freight rates increased although remain relatively low – Sustainable cost savings made from:

– Commencement of Group’s top-off facility – Increasing ship loading rates – More efficient vessel scheduling – Improved negotiated freight rates with new ship owners

– Group loading facility reduced top-off costs by US$2.3 per tonne – Freight rate achieved in 2H 2013: at least in line with cost of freight for

capesize vessels from Brazil to China – Overall freight rate to China decreased 20% per tonne compared to 2012

In 2013 developed:

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– Optimise & reduce internal freight costs by: – Increasing rail car fleet (expect delivery of 300 cars) – Additional port capacity, further improvements in scheduling, &

optimisation of routes to market

Increase realisation from customers due to proximate location

In 2014 continue to:

Traditional Natural Growth

M A R K E T I N G E X PA N S I O N W I T H F O C U S O N P R E M I U M C R I S I S R E S I S TA N T C L I E N T S

– Not reliant on any one region for demand – In 2013: signed new contract with China’s leading steel mill, renewed a contract & commenced a trial cargo in Japan, increased

sales in Turkey and Germany – As of 1 January 2014, all long term contracts based on a benchmark index

Sales Volume by Contract Type

Benefits of diversity to Ferrexpo

Sales Volume by Market

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Benchmark indexed Spot Quarterly negotiated

2013 2012

0%

10%

20%

30%

40%

50%

60%

Traditional Natural Growth

2013 2012

Pelletising Cost Curve

Source: CRU, January 2013

Note: Only reflects costs incurred at pelletising stage of the production process (i.e. does not include mining, concentration and beneficiation costs) and as such should not be considered as a cost curve for total cost of pellets production. Site costs are defined as cash operating costs plus share of local overhead and sustaining capital

0

14

28

42

56

70

USc/d

mtu

Ferrexpo

0.2 Bnt

ENRC Metalloinvest

IOC

Metinvest Metinvest LKAB

LKAB Vale

Vale Samarco

Vale

CLIFFS

I N D U S T RY P E L L E T I S I N G C O S T C U RV E : F E R R E X P O I S W E L L P L A C E D

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– Ferrexpo to benefit from rising pellet premiums due to growing demand for higher quality iron ore feedstock

O P E R AT I O N S & I N V E S T M E N T S

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S T R O N G P E R F O R M A N C E F R O M F P M I N 2 0 1 3

– FPM processed more ore, produced more concentrate & pellets on a monthly basis

– Completing major modernisation whilst continuing to increase output

– 10% reduction in C1 cash cost during the year (1Q13 C1 cost US$63.9/t; 4Q13 C1 cost US$57.6/t)

– Improved consumption norms decreased C1 costs on average by US$3.5 per tonne in 2013

– 2014: further modernisation of grinding sections, replacement of medium/fine crushing sections, rebuild of one kiln, completion of floatation units, commissioning of tailings facility & completion of detailed engineering for press filtration plant

– Future opportunities: optimise FPM mine, increase capacity of

existing pellet lines, floatation unit 3 to further increase quality & yield

20

650

750

850

950

1050

1150

1250

Conc Pellets

Monthly Concentrate & Pellet Production (incl FYM)

Following completion of 5 grinding sections in 2012/13, new production capacities were achieved from 2H13

2014 production exit rate: 12 million tonnes per annum

FPM KPI’s 2012 2013 2014

Stripping (‘000 m3) 27.9 28.9 30.0 – 32.0

Processed ore (incl FYM) 29.8 30.7 31.0 – 32.5

Concentrate (mtpa) 11.7 13.2 14.0 – 14.4

Pellet (mtpa) 9.7 10.8 11.5 – 12.0

AV E R A G E M O N T H LY P R O D U C T I O N S TAT I S T I C S F R O M O W N O R E

21

650

750

850

950

1050

1150

2007 2008 2009 2010 2011 2012 2013

Concentrate Pellets

Average monthly concentrate & pellet production from own ore

Thou

sand

tonn

es

+13%

+13%

275

300

325

350

375

400

2007 2008 2009 2010 2011 2012 2013

Average monthly production of 65% Fe pellets from own ore

Thou

sand

tonn

es

+15%

– Average monthly concentrate & pellet production increased 13% in 2013 vs. 2012 – Average monthly concentrate production of 65% Fe pellets increased 15% in 2013 vs. 2012

I M P R O V I N G C O N S U M P T I O N N O R M S – C1 COST REDUCED BY US$8.6/TONNE SINCE 2005

22

68.4

59.8

-3.7

-2.8 -1.0 -1.1

PF 2005 Electricity Gas Grinding Media Personnel FY2013

6.4 5.2

2005 FY 2013

22.0

16.2

2005 FY 2013

205.5 165

2005 FY 2013

-20% -26% -19%

Electricity Gas Grinding Media kWh per tn of pellets m3 per tn of pellets Kg per tn of pellets

0.7

1.1

2005 FY 2013

69%

Productivity ‘000 tones of pellets per employee

F Y M P R O D U C I N G , L O W E R I N G C O S T S & O P E R AT I O N A L R I S K P R O F I L E

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– FYM ore contributed 20% to pellet production volumes in 2013 – Reduced C1 costs on avg by US$1.20 per tonne (principally due to lower mining costs) – Lower operational risk through two operating mines – In 2014: 9mt of FYM ore to be processed to produce c. 3mt of pellets (2013: 6.6mt processed; 2mt of pellets); completion of FYM

infrastructure and place commitments for long lead items for FYM concentrator (subject to Board approval)

50

100

150

200

250

300

350

Conc Pellets

Concentrate & Pellet production from FYM ore in 2013:

Throughout 2013, transportation & processing of FYM ore was streamlined

Thou

sand

tonn

es

O V E R A L L C O S T P O S I T I O N

24

Cash Charge Curve (US$/t – Dry, 62% Fe, CIF China)1

US$/t

onne

mtpa

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

0 500 1000 1500 2000

Predominantly Vale, Rio, BHP

Ferrexpo FMG

Predominantly China

– A 10% UAH devaluation vs. the US$ results in c.US$4 per tonne currency benefit – Approximately 1 billion tonnes of supply would need to be eliminated before Ferrexpo’s operations would be impacted

Source Deutsche Bank; Ferrexpo, November 2013

1 In order to determine a comparable CFR cost for non homogeneous iron ore products any benefits or discounts a producer may receive relative to the 62% Fines CFR China price are deducted or added. In the case of Ferrexpo, the calculation is as follows: C1 cash cost of production + freight to Port Yuzhny + sea freight to China + maintenance capex + regional market discount – less pellet premium - premium for higher Fe content.

OUTPUT TO GROW TO12MTPA, FYM CAN ADD FURTHER TONNAGE

2014 targets: – Sustained production of 1.2mt of concentrate per month – Sustained production of 1mt of pellets per month – Increase output of 65% Fe pellets – Further reductions in cost of pellets from FYM ore – Completion of FYM infrastructure – Place commitments for long lead items for FYM concentrator (subject to Board approval)

Future targets: – Further improvements in yield recovery and pellet quality, 100% of production to be 65% Fe pellets by end of 2015 – Increase capacity of existing pellet lines – Continued modernisation of sections within beneficiation plant (part of sustaining capex) – Develop 10mtpa concentrator to process FYM ore (4 lines of 2.5mtpa)

– Total investment for 10mtpa concentrator expected to be approximately US$85/tonne, one of the lowest in the industry – Phasing of investment possible to assist funding

– Continue to lower overall cost & improve position on global cost curve

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U K R A I N E

26

U K R A I N E

27

– Our deepest regrets for the lives lost in the recent political turmoil – We are hopeful of a satisfactory political outcome reflecting democratic principles – At the time of writing, there have been no disruptions to Ferrexpo’s operations in Ukraine

O U T L O O K

F E R R E X P O A W O R L D C L A S S I R O N O R E P E L L E T P R O D U C E R

2014 Market Outlook:

– Price of iron ore lower in 1Q 2014, expect some recovery in remainder of the year, but remains volatile

– Expect to benefit from a growing market requirement for high quality ore

– Local currency devalued reducing local costs

2014 Ferrexpo Targets:

– Benefit from increased pricing transparency as all long term contracts are now indexed

– Costs to continue to reduce through higher volumes

– Continue to expand logistics capability

– Continue prudent capital investment to complete existing projects

– Further investments (in FYM) dependent on balance sheet capacity

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T H A N K Y O U

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