Producing iron ore pellets for 35 years

2012 Annual Results Presentation

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IntroductionMichael Abrahams CBE DL, Chairman

2

3

2012 Financial ResultsChris Mawe, CFO

― Revenue reflects market prices on avg 23% lower vs. 2011

― Remained competitively positioned on global cost curve― C1 costs managed and now stabilised― Significantly reduced freight costs

― Capex reflects growth projects & logistics development

― Strong credit metrics

― Special dividend of 6.6 US cents per share : 1st ore at FYM

4

2012 Highlights: Reducing Operational & Financial Risk

US$M (unless otherwise stated) 2012 2011 ChangeRevenue 1,424 1,788 (20%)EBITDA 402 801 (50%)Profit for the year 216 575 (63%)Diluted eps 36.6 97.0 (62%)Capital investment 429 380 +13%Cash balance at 31/12/12 597 890 (33%)Net debt 423 80Net debt to EBITDA 1.1x 0.1xShareholder funds 1,549 1,373 +13%Final ordinary dividend (cents) 3.3 3.3Special dividend (cents) 6.6 -

Income Statement 2012 vs. 2011

US$M (unless otherwise stated) 2012 2011Pellet production from own ore (000’ tonnes) 9,409 9,063

Pellet sales (000’ tonnes) 9,675 9,875Revenue 1,424 1,788C1 cost per tonne 59.6 50.7Gross profit 729 1,138% margin 51% 64%Selling and distribution (312) (318)General admin and other (75) (62)Financing incl. non-operating Forex (79) (68)Profit before tax 262 691% margin 18% 39%Income tax % 18% 17%Profit for the year 216 575Diluted eps (US cents) 36.6 97.0

5

― Consistent production underpinned results, own ore up 4%― Revenue reflects market environment― Costs reflect stable UAH & full year impact of 2011 energy

price increases― S&D reflects lower freight rates & move to capesize vessels― General admin reflects increased market coverage― Finance expense includes $20M discount for VAT outstanding

for more than 1 year― Overall, satisfactory results given market environment

1,7881,424

42

11

327

846

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Revenue 2011 Sales volume, ownore

Sales price, own ore Conversionbusiness

CIF/CFR sales Other Revenue 2012

1. Sales price on DAP/FOB basis excluding impact of international freight.

6

Revenue 2012 vs. 2011US$M

1

EBITDA 2012 vs. 2011

1. Sales volume from own ore 7

801

402

23

21

348

85

5 5

0

100

200

300

400

500

600

700

800

900

EBITDA, FY2011

Sales volume Global iron oreprices

Lower freight C1 cost DAP/FOBdistribution costs

G&A and Other EBITDA, FY2012

1

50.759.6

2.3 1.6 0.4 0.9 0.8 2.4 1.2 60.4 58.90.1 0.7

0

10

20

30

40

50

60

70

C1 20

11

Elec

tricity

tariff

s

Gas t

ariffs Fuel

Gridi

ng m

edia

Strip

ping

Cons

umpti

on no

rms

Perso

nnel

Repa

irs, m

ainten

ance

Othe

r

C1 20

12

C1 1H

2012

C1 2H

2012

C1 cash cost per tonne

Energy related cost increases

US$M

Price effect: $327m

US$/t

onne

Cash Flow 2012 vs. 2011

US$M (unless otherwise stated) 2012 2011EBITDA 402 801Working capital movements (128) (111)Interest (56) (43)Tax and other (99) (144)Net cash flow from operating activities 119 503Sustaining CapEx (114) (129)Free cash flow 6 375Development CapEx (316) (251)Dividend (39) (39)Acquisitions and other 10 (36)Net financing inflow 46 521Net increase / (decrease) (294) 571Cash balance at 1 January 890 319Cash balance at 31 December 597 890Net debt at 31 December 423 80Net debt to EBITDA 1.1x 0.1xGearing 21% 5%

8

― Working capital affected by slow repayment of VAT & pre-payment of corporate profit tax

― US$302M1 VAT outstanding at 31 Dec 2012, 71% of net debt― Interest includes US$39M coupon on Eurobond― Sustaining capex reflects modernisation programme― Growth projects on track to deliver increased output & quality― Net financing inflow reflects ECA funding― Strong credit metrics, net debt to EBITDA of 1.1x― Low gearing of 21%

1. Ukrainian VAT excludes other VAT of US$3.3M

2012 Capex reflects Modernisation, Projects to increase Output & Quality & Logistics development

9

― FYM: 22.1m m³ overburden removed, 49.9m m³ removed since project’s start; first ore reached

― FPM capacity upgrade project: sections #9 and #15 complete, #2 97% complete

― FPM QUP: 8 of 10 Metso Vertical mills delivered, assembly in process

― FPM MLE: 11.5m m³ of overburden removed; 24.8 m m³ removed since project’s start (55% of project’s total)

― Belanovo: 5 trucks, 1 excavator delivered

― Logistics: 2011 purchase order for 1,000 rail cars completed in 2012, total fleet: 1,933 rail cars

― Logistics: Iron Destiny commenced operation in December 2012

US$M 2012 2011

FYM 146 129

FPM 192 170

Sustaining/modernisation 108 121

Mine life extension 49 46

Quality upgrade 35 3

Other: 91 81

FBM, other deposits 42 12

Logistics 49 69

Total 429 380

Capital expenditure Progress as projects ramp up

Credit Metrics – High Liquidity

10

Balance Sheet 2012 vs. 2011

Gross Debt Maturity Profile at 31 December 2012

Net Debt / EBITDA

US$M 31 Dec 2012 31 Dec 2011

Cash and Equivalents 597 890

Total Gross Debt 1,020 970

Net Debt (423) (80)

Total Equity 1,570 1,393

Undrawn Facilities 0 50

Total Liquidity (Facilities + Cash) 597 940

― Minimal debt repayment in 2013 +1H 2014

― Average maturity profile 3 years

― Diversified sources of funding

― Access to bond market if required

2007 2008 2009 2010 2011 20120.5 0.4 1.9 0.2 0.1 1.1

US

$m

-

300

600

900

Cash 2013 2014 2015 2016 2017 2018 2019

Conclusion to Financial Review

11

– Good results reflective of market environment– Maintained competitive position on global cost curve– C1 costs stabilised– Significant reduction in freight costs– Growth projects on track, output to increase going forward– Strong balance sheet– Slow repayment of VAT (71% of net debt)

Business UpdateKostyantin Zhevago, CEO

12

Ferrexpo’s Key Objectives

– Expand high quality customer base– Reduce freight costs to Asia to levels below Brazilian competitors – Retain competitive position on global cash cost curve– Continue expansion to increase pellet equivalent production output to 20 Mtpa– Improve product mix: increase average pellet content to 65% Fe – Prudent financial management to efficiently fund growth strategy– Maintain high quality corporate governance associated with a premium listed company

13

Developing the Business and Reducing Risk

– Increased sales to Growth markets from 27% of sales in 2010 to 42%

– Reduced dependence on Traditional markets and customer concentration risk

14

1. Diversified sales portfolio

– “Building the bridge to Asia” – Began loading capsize vessels, significantly reducing

freight cost per tonne of pellets– Acquired top-off vessel to reduce loading costs

– Increased railcar fleet to reduce reliance on state railcars and transportation costs

2. Expanded logistics infrastructure

– First ore reached at FYM with commercial production expected in 2H 2013

– Diversification of operations – Higher quality ore with lower cash costs

3. Developed resource base

– Continued modernisation of the production process to increase output to 12 Mtpa in 2014 and improve the quality of pellet products to an average iron content of 65% in 2015

4. Modernised FPM’s facilities

– Extended the Yeristovskoe mining license to 2032– Extending exploration licenses for our Northern

deposits

5. Extended mining and exploration licenses

– Reduced the average cost of debt by 100 bps– 2011 bond issue extended maturity profile by 2 years

6. Improved financial profile

29%

47%

24%

IndexQuarterly FixedSpot

Sales Volume by Market

Marketing Expansion with Focus on Crisis Resistant Clients

– Index-linked pricing in line with the industry– Strengthening and diversification of customer base

– Redirected sales volumes from price sensitive customers in Ukraine, Serbia and Hungary

– Continued expansion in Growth markets– Captured significant market share with China’s leading steel mill

and more than doubled annual volumes to Japan– Tripled annual volumes to Germany – Allocation of 10% of sales to potential new customers

78

5366

53 49

1839

2740 42

4 8 7 7 90

30

60

90

2008 2009 2010 2011 2012Traditional Growth Natural

+24 percentage points

Changes Implemented by Ferrexpo Since the 2008/09 downturn Sales Volume by Contract Type

%

15

Logistics Taking it to the Next Level

– Developing seaborne logistics to Asia– Own approximately 2,000 rail cars (lowers rail costs, guarantees

wagon availability and reduces risk of contamination)– Integrated barging operations on the Dnieper, Danube and

Rhine Rivers

– 17 capesize vessels loaded in 2012, over 30 expected in 2013– Panamaxes reduced and phased out – Transhipment vessel has reduced top-off costs and time taken to

load capesize vessels– Resulting in increased port efficiency and reduced handling cost

per tonne

Ferrexpo seaborne freight cost

16

“Building the Bridge to Asia”

17

22

27

32

37

42

1H2010 2H2010 1H2011 2H2011 1H2012 2H2012 Jan-2013

Ferrexpo, Yuzhny-Qindao C3 Tubarao-Qindao

US$/tonne

Concentrate Production – Competitive Cost Position

1Source Bank of America Merrill Lynch, January 2013

CIF China 62% Fe Equivalent Unit Concentrate Cash Cost1

US$/tonne

171 Pelletising margin deducted from operating cost.

0

20

40

60

80

100

120

140

China Mid Cost

Ferrexpo

China High Cost

China Low Cost

Rio Tinto Rio TintoValeBHP Billiton

18

C1 cash cost: 2012 vs. October 2008 (pre-devaluation)C1 Cash Cost breakdown 2012

51.0

59.6

4.8 0.3 11.4 4.4 3.0 0.51.68.7

1.54.0

0

10

20

30

40

50

60

70

C1 O

ct. 08

Gas t

ariffs Fuel

Grind

ingme

dia

Elec

tricity

tariffs

FX ef

fect o

nele

ctrici

ty

Cons

umpti

onno

rms

Perso

nnel

FX ef

fect o

npe

rsonn

el

Repa

irs,

maint

enan

ce

Othe

r

C1 20

12

C1 cash cost US$ per tonne

US$-denominated commoditiesPersonnel costs stable in US$

25%

10%

14%7%3%

10%

18%

11%2% Electricity

FuelGasGrinding mediaExplosivesOther materialsMaintenance and repairsPersonnelRoyalties

Ongoing Investment in Low Risk Brownfield Projects

Capital Expenditure

86

167

380429

0

100

200

300

400

2009 2010 2011 2012

US$ MM

– Modernization and debottlenecking of FPM processing facilities– First ore at FYM– Logistics investments

Reducing Operational Risk and Further Developing a High Quality Asset Base

Output and Grade to Steadily Increase

2012 2013 2014 2015 2017

10 Mtpa 11 Mtpa 12 Mtpa 12 Mtpa 20-22 Mtpa

@63.3% Fe @63.5% Fe @63.5% Fe @65.0% Fe @65.9% Fe

Processing higher quality ore from FYM using FPM’s spare capacity

– Total of US$383M invested in FYM since 2008FPM quality upgrade

– Total of US$38M spent since 2011 with US$68M (out of US$174M remaining) to be spent in 2013

Beneficiating facilities at FYM– Initial investment of US$30M was approved in

October 2012

1

3

2

1 2 3

Avg pellet equivalent Fe

(1)

Sustaining capexDevelopment capex

1 Estimated as 12 Mtpa @65% Fe and 10 Mtpa @67% 19

Ferrexpo a World Class Iron Ore Pellet Producer

– Continue dialogue with Ukrainian government & manage country risk on a proactive basis

– Continue expansion to increase quality & pellet equivalent output to 20 Mtpa– Continue to develop logistics capabilities & premium customer base– Continue to evaluate potential NPV accretive opportunities– Prudent balance sheet management

20

Strategy

Thank you, the end.

21

Appendix

22

Geographical location — Ukraine

Ferrexpo at a Glance - A World Class Pellets Producer

Significant resource base…

– Over 5 Mtpa handling capacity at Yuzhny port– Own transshipment vessel at Yuzny facilitates use of capesize vessels– Approaching self-sufficiency in rail cars with 1,933 units owned– Extensive fleet of barges on the Danube river

– 1.47 Bnt of 2P reserves and 4.7 Bnt of JORC M&I resources1

– Production from two open cut mines – FPM and FYM– In 2012 we mined approximately 30 Mt of crude ore

1 Measured and indicated resources include proved and probable reserves

Goris

hne-

Plav

ninsk

oye

and

Lavr

ikovs

koye

*3.

6Bt

Yeris

tovs

koye

**1.

2Bt

Belan

ovsk

oye*

**1.

7Bt

Gales

chins

koye

0.

3Bt

Zaru

dens

koye

1.5B

t

Vasil

ievsk

oye

1.4B

t

Khar

chen

kovs

koye

2.8B

t

Man

uilov

skoy

e3.

5Bt

Brov

arsk

oye

4.0B

t

6.8 Bnt JORCClassified

ProductionDevelopmentLicence Maintenance

Gdantsev Successionquartzite, schist, filliteschist units

Saksagan SuccessionBIF units

Basementamphilobitegranite, migmatite

13.2 Bnt FSUSoviet Classified

*Operated by Ferrexpo Poltava Mine subsidiary (FPM)** Operated by Ferrexpo Yeristovo Mine subsidiary (FYM)*** Operated by Ferrexpo Belanovo Mine subsidiary (FBM)…supported by an in-house logistics network

23

FPM Safety

0102030405060708090

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Number of accidents at FPM

Ferrexpo at a Glance (Cont’d)

Production Output and Quality‘000 tonnes %

8,76610,031 9,811 9,690

63.5 63.4 63.5 63.3

62

63

64

65

0

3,000

6,000

9,000

12,000

2009 2010 2011 2012Production from own oreProduction from third party concentrate Average Fe content

EBITDA and MarginUS$ M %

Well Located to Supply Regional and Seaborne Markets2012 Sales Volume by Value

0%

10%

20%

30%

40%

50%

-100

100

300

500

700

900

2009 2010 2011 2012

EBITDA EBITDA margin

24

Ferrexpo

Marketing officeTarget markets

Traditional marketsNatural marketsGrowth markets

9%

42%

49%

Unique Investment Proposition

High quality and diversecustomer base

Integrated logistical solution

Strong governance andexperienced management team

Premium product producer

Strong cash flow and competitive cost position

Vast resource base with growth optionality

1

2

3

– 100% of production is in the form of iron ore pellets…

– … of which half contain 65% Fe

– One of the lowest pelletizing costs in the industry on an FOB basis

– Globally competitive on iron ore concentrate cost curve

– 4.7 Bnt of JORC M&I resources along a single ore body

– Multiple opportunities for brownfield growth– ca.50 years of reserve life(1)

– Focus on customers producing high value added steel products who are “crisis resistant”

– Sales split between Europe, Middle East and Asia

– Stake in Yuznhy port terminal for capesize vessels

– New top-off vessel in harbor– Own railcar and river barge fleet

– Governance in line with the requirements of LSE Premium Listing

– Management combining international expertise and detailed local knowledge

4

5

6

1 Estimated based on total reserves of 1,470 Mt and average ore mining rate of 30Mtpa

25

26

FerrexpoGroup Investor RelationsIngrid McMahon – i.mcmahon@ferrexpo.ch+44 207 389 8304 www.ferrexpo.com