Nyrstar NV · EURONEXT:NYR
Nyrstar NV — Investor Presentation (January 2014)
18 slides from Nyrstar NV's investor presentation, Jan 8, 2014
Slide 1: Introduction to Nyrstar
8 JANUARY 2014 Introduction to Nyrstar 1
Slide 2: Important Notice
Important Notice - This presentation has been prepared by the management of Nyrstar NV (the "Company"). It does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any
Slide 3: Nyrstar at a glance
Nyrstar at a glance Nyrstar is an integrated mining and metals business, with market leading positions in zinc and lead, and growing positions in other base and precious metals; essential resources that are fuelling the rapid urbanisation and industrialisation of our changing world. Nyrstar has its
Slide 4: Our products and their contribution to Nyrstar
Our products and their contribution to Nyrstar Diverse product portfolio - Today Group EBITDA by segment Mining Metals Processing 2012 Gross profit by metal 2012 4
Slide 5: Our main end markets: construction, transport & infrastructure
Our main end markets: construction, transport & infrastructure Zinc consumption by first use (2012) 57% galvanising, 15% die-cast alloys, 10% brass semis and castings, 8% oxides and chemicals, 6% semi-manufactured products, 4% other 5
Slide 6: Market position and production
Market position and production Strong position in zinc ... ... and other metals1 Zinc metal production ('000t) Zinc in concentrate production ('000t) Lead ('000 t) 179 196 158 1,076 1,125 1,084 16 1 8 Copper ('000 t) 3 2010 2011 2012 2010 2011 2012 4 4 0 Top 5 zinc smelters Top 5 zinc miners (zinc m
Slide 7: Economic growth in developing economies will underpin continuing demand for zinc
Economic growth in developing economies will underpin continuing demand for zinc Continuing urbanisation in China, India and Increasing zinc consumption over the medium term South East Asia % of urban population CAGR Actual Forecast 2012-20 3% 4% 2% 0% 6% Global The outlook for Chinese zinc demand g
Slide 8: Increased demand together with significant tightening of zinc concentrate supply
Increased demand together with significant tightening of zinc concentrate supply in the medium term… Zinc mine depletions (and total attritions) between Zinc mine depletions and attritions by the end of 2016 2013-2016 Zinc production Mine (location) (kt)2 Century (Australia) – mid 2015 515 Global Br
Slide 9: Strong mid- to long-term zinc price consensus
Strong mid- to long-term zinc price consensus Zinc price projections until 2020 Observations Based on fundamental Zinc price (USD/t) supply/demand imbalances 4,500 Actual Forecast zinc price projected to increase to USD2,308/t 4,000 (consensus mean) This is conservative given 3,500 the high levels z
Slide 10: Strategy: Our industrial footprint, ownership of raw materials and commercial focus
Strategy: Our industrial footprint, ownership of raw materials and commercial focus provide a unique step change opportunity to deliver our mission… Nyrstar 2020 - Metals Processing traditionally volume and treatment charge driven…a business model that faces challenges - Significant additional value
Slide 11: …enabled by an integrated business and operating model
…enabled by an integrated business and operating model 11
Slide 12: Metals Processing: Leveraging industrial footprint provides unique opportunity
Metals Processing: Leveraging industrial footprint provides unique opportunity to unlock and create further value Redevelopment Debottlenecking projects Current operations Port Pirie Redevelopment Metals Processing Transformation Fuming Hobart Multiple residue sites Multiple Zinc Lead Zinc Lead site
Slide 13: Our unique model will provide an opportunity to grow and further diversify earnings
Our unique model will provide an opportunity to grow and further diversify earnings PAST: 2008 PRESENT: 2012 FUTURE: 2016 * Upgraded zinc Advanced 6 smelters 6 smelters smelters metals Asset recovery 6 non-core assets 9 mines & stream facility footprint +9 mines & stream 2 non-core assets Marketing,
Slide 14: Financials: Key Metrics
Financials: Key Metrics 1 EBITDA (EURm) Key financials 2013 EURm 2010 2011 2012 H1 Revenue 2,696 3,348 3,070 1,430 Gross Profit 925 1,286 1,356 622 Gross Margin 34% 38% 44% 43% 142 Operating Costs 1 (721) (1,021) (1,138) (535) 123 115 112 109 95 EBITDA1 210 265 220 87 87 EBITDA margin1 7.8% 7.9% 7.2
Slide 15: Balance sheet focus and access to various funding opportunities
Balance sheet focus and access to various funding opportunities allows us to continue our strategic journey Diverse funding sources Recent financing EURm at 30 June 2013 - New EUR 120 million convertible bond issued - Closest maturity refinanced at significantly Cash improved terms (4.25% coupon) 20
Slide 16: Solid financial position; high quality portfolio of long-term debt
Solid financial position; high quality portfolio of long-term debt Net Debt (EURm) Gearing¹ Solid Financial Position Maturity profile 525 New EUR120m Diversified sources of funding convertible bond 400 issued in September Cyclical protection: working capital reduces when 2013 metal prices decline 22
Slide 17: Actively managing near term profitability by delivering sustainable operational improvements
Not only looking long term; actively managing near term profitability by delivering sustainable operational improvements Working capital improvements Monthly reduction in inventory value (USDm) - Optimizing physical inventory 1100 levels in Metals Processing 900 segment 700 - Dedicated task force to
Slide 18: Highlights
Highlights Top 5 company in zinc mining and zinc processing Key Business Urbanisation and lack of mine investment drive strong zinc fundamentals Strengths Experienced and committed Management Team Raw material flows provide significant value opportunity that today is not captured Unique Strategic Le