Slide 1: Interim Report January - March 2006
Boliden Interim Report January - March 2006 Mines Smelters Zinc Copper Boliden AB 1 May 4, 2006
Slide 2: Continued strong growth in China – lower growth rate in the rest of the world
Continued strong growth in China – lower growth rate in the rest of the world • Global 2006 Q1* Industrial Production 20 - Cu-consumption 5.5 % - Cu-production 7.3 % - Zn-consumption 3.4 % 15 - Zn-production 1.1 % Growth % • USA 10 - Cu-consumption 9.9 % - Zn-consumption 0.0 % 5 • Europe - Cu-consum
Slide 3: LME Copper Price and Stocks
LME Copper Price and Stocks USD/tonne Tonnes 7 500 1 200 000 7 000 1 100 000 6 500 1 000 000 6 000 900 000 5 500 800 000 5 000 700 000 4 500 600 000 4 000 500 000 3 500 400 000 3 000 300 000 2 500 200 000 2 000 100 000 1 500 0 05 3 4 6 4 5 3 3 4 5 3 4 5 6 0 0 0 l-0 l-0 l-0 -0 -0 -0 r-0 r-0 r-0 r-0 n
Slide 4: LME Zinc Price and Stocks
LME Zinc Price and Stocks USD/tonne Tonnes 3 500 1 075 000 3 100 950 000 2 700 825 000 2 300 700 000 1 900 575 000 1 500 450 000 1 100 325 000 700 200 000 3 4 5 03 04 05 06 3 4 5 6 3 4 5 l-0 l-0 l-0 0 0 0 0 -0 -0 -0 n- n- n- n- r- r- r- r- ct ct ct Ju Ju Ju Ap Ap Ap Ap Ja Ja Ja Ja O O O Boliden AB 4
Slide 5: Increased demand for zinc import in Europe
Increased demand for zinc import in Europe consumption in '000 tonnes 2 600 900 Balance in '000 tonnes 2 500 700 Production and 500 2 400 300 2 300 64 58 100 2 200 -100 -60 -86 2 100 -143 -300 -208 -248 2 000 -500 2004 2005 2006 2007 2008 2009 2010 Balance Europe Production total Europe Consumption
Slide 6: Zinc metal premiums
Zinc metal premiums USD/tonne 185 176 175 165 155 143 155 145 140 135 130 130 130 125 115 110 110 115 115 105 105 110 123 105 105 105 105 115 100 100 110 105 110 95 100 105 105 100 100 100 100 100 100 100 95 100 85 95 94 94 88 75 61 83 77 65 73 55 5 5 5 5 5 5 6 5 6 5 5 5 nt 5 05 -0 -0 -0 -0 -0 -0 -0
Slide 7: Shortage of copper concentrate?
Shortage of copper concentrate? Copper: Present production + probable expansions + possible expansions '000 tonnes of copper p.a. 30 000 Possible expansions Probable expansions Base Case 25 000 New Projects and planned expansions 1% growth rate 3 % growth rate 20 000 5% growth rate 15 000 10 000 5 0
Slide 8: Shortage of zinc concentrate?
Shortage of zinc concentrate? Zinc: Present production + probable expansions + possible expansions '000 tonnes of zinc p.a Possible Expansions Probable Expansions 20 000 Base Case + Highly Probable 1% Demand Growth 18 000 3% Demand Growth 16 000 5% Demand Growth 14 000 12 000 10 000 8 000 6 000 4 00
Slide 9: Historically strong result
Historically strong result SEK m First quarter Change 2006 2005 in % Net sales 7 337 4 458 65 Operating result (EBIT) 1 750 398 340 Result after financial items 1 697 353 381 Earnings per share 4.28 0.88 387 Cash flow from operating activities 999 249 301 Return on capital employed, % 44 10 Net debt
Slide 10: Operating result - quarterly
Operating result - quarterly SEK m 2 000 1 800 1750 1634 1 600 1 400 1 200 1 000 800 686 600 511 440 405 398 400 351 200 0 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Boliden AB 10 May 4, 2006
Slide 11: Production Copper
Production Copper Mining production, metal content Smelter production, cathodes Tonnes Tonnes 100 000 100 000 89 196 88 143 89 429 90 029 90 000 90 000 80 939 80 000 80 000 70 000 70 000 60 000 60 000 50 000 50 000 40 000 40 000 27 161 25 617 30 000 30 000 19 027 19 258 21 484 20 000 20 000 10 000 1
Slide 12: Production Zinc
Production Zinc Mining production, metal content Smelter production, casted zinc Tonnes Tonnes 120 000 120 000 112 537 108 845 107 429 108 455 104 378 100 000 100 000 87 021 86 800 87 548 89 225 80 164 80 000 80 000 60 000 60 000 40 000 40 000 20 000 20 000 0 0 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 200
Slide 13: Garpenberg Area
Garpenberg Area Long section Garpenberg Garpenberg N 0Z 400Z Dammsjön K va r Lappberget 800Z nber 870 Z 910 Z Finnhyttan & g et Strand Ore Tyskgården & Kyrkmalmen Dammsjön Kanal Ore Kaspersbo N Production Levels Potential Areas Boliden AB 13 May 4, 2006
Slide 14: Operating result per segment
Operating result per segment SEK m First quarter 2006 2005 Copper 733 231 Zinc 1 027 218 Other -10 -51 Total 1 750 398 • Copper – higher metal prices, US dollar exchange rate, TC/RC, increased production and stock profit were counteracted mainly by higher costs. • Zinc – higher metal prices, US doll
Slide 15: Cash flow
Cash flow Operating result before depreciation (EBITDA), SEK m • Cash flow from operating 2 079 2 100 activities SEK 999 million 1 949 (SEK 249 m). 1 900 • Cash flow from investment 1 700 activities SEK -441 million 1 500 (SEK -76 m). 1 300 • Free cash flow SEK 558 million 1 100 (SEK 173 m). 998 900
Slide 16: Capital structure
Capital structure 31 Mar 31 Mar Net debt / Equity 2006 2005 80% Balance Sheet total, 71% 69% 70% SEK bn 24.2 20.6 64% 60% 54% Capital employed, 50% 45% SEK bn 16.1 15.4 40% Shareholders’ equity, 30% SEK bn 10.9 9.2 20% 10% Net debt, SEK bn 5.0 6.5 0% Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Gearing,
Slide 17: Summary Q1 and forecast 2006
Summary Q1 and forecast 2006 • Continued strong and stable growth in the global economy. • Higher metal prices and US dollar exchange rate. • Good production levels from all units during Q1. • Result after financial items SEK 1 697 million (SEK 353 m) • Production on planned levels in early Q2 2006.
Slide 18: www.boliden.com
www.boliden.com Mines Smelters Zinc Copper Boliden AB 18 May 4, 2006