Boliden Ab · OMXSTO:BOL

Boliden Ab — Investor Day (March 2021)

10 slides from Boliden Ab's investor day presentation, Mar 17, 2021

  1. Slide 1: Generating strong returns through the cycle

    Finance Generating strong returns through the cycle Håkan Gabrielsson, CFO CMD 2021

  2. Slide 2: Maintaining a strong EBIT excl. PIR performance, despite the challenges of 2020

    Maintaining a strong EBIT excl. PIR performance, despite the challenges of 2020 MSEK 10,000  EBIT excl. PIR 8,438 MSEK (7,035) 8,000  Increased volumes ‒ Higher milled volume in Kevitsa, Aitik and 6,000 Garpenberg following expansions ‒ Higher capacity, complex materials & improved 4,000 process s

  3. Slide 3: A diversified portfolio for today's society

    A diversified portfolio for today’s society Gross Profit 2020  Strong fundamentals Premia Other Treatment Charges Copper  Well balanced  Low risk, negative correlations Precious Metals  No precious metals streaming Zinc Lead Nickel CAPITAL MARKETS DAY MARCH 17, 2021 3

  4. Slide 4: EBIT Sensitivity by Business Area

    EBIT Sensitivity by Business Area Effect on operating profit, MSEK Change in metal prices, +10% BA Mines BA Smelters Total Group Copper 750 65 815 Zinc 590 170 760 Gold 295 95 390 Silver 230 40 270 Nickel 200 30 230 Lead 100 30 130 Palladium 40 70 110 Platinum 25 10 35 Change in TC/RC, +10% Zinc TC

  5. Slide 5: Provisional pricing

    Provisional pricing  Provisional pricing at delivery from Mines Cu, Zn, Pb  Open positions revalued to market prices each month-end Ag, Au  Definitive pricing; average market Ni, Co prices 1-4 months after month of Pd, Pt arrival  Inventory in Smelters hedged Delivery 1 month 2 months 3 months 4

  6. Slide 6: Outlook

    Outlook  Aitik ‒ 2021: Cu 0.21 %, Au 0.11 g/tonne ‒ Lower in Q1  Garpenberg ‒ 2021: Zn 3.8 %, Ag 110 g/tonne  Q1 production issues ‒ Covid-19 ‒ Aitik, Tara  Maintenance stops ‒ 2021: -550 (-345) MSEK  Capex ‒ 2021: Slightly above 7 BSEK CAPITAL MARKETS DAY MARCH 17, 2021 6

  7. Slide 7: Stable maintenance capital expenditure

    Stable maintenance capital expenditure Mine sustaining Replacement  Slightly above 2.5 BSEK in 2021  2 BSEK in 2021 ‒ 35 BSEK Property, plant and equipment in balance sheet*  Stripping, development and successive raising  50% in each Business Area of dams  Aitik and Kevitsa ~ 1 BSEK each  Stab

  8. Slide 8: Capital expenditure to extend and expand

    Capital expenditure to extend and expand Stay in business capex Expansions  1.5 BSEK in 2021  1 BSEK in 2021  Foundation to extend and develop business  Expansions vs existing plan ‒ Efficiency investments to strengthen the  Required return > 10 % competitive position  Potential large projects

  9. Slide 9: Strong return on invested capital

    Strong return on invested capital Return on Capital Dividend and Redemption of Shares Employed (ROCE) % SEK 25 16 14 20 12 15 10 8 10 6 4 5 2 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* ROCE Average Dividend Redemption of Shares *2020; pro

  10. Slide 10: Long-term commitment to financial targets and dividend policy

    Long-term commitment to financial targets and dividend policy Return on Dividend policy: Net Debt/Equity investments 1/3 of at about 20% ≥ 10% net profit at economic peaks* *The target also includes net reclamation liability CAPITAL MARKETS DAY MARCH 17, 2021 10

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