Slide 1: Interim Report January - June 2005
Boliden Interim Report January - June 2005 Mines Smelters Zinc Copper Boliden AB 1 2005-07-25
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 Q2 2005* 20 Industrial production - Cu-consumption -0,7 % - Cu-production 10,7 % 15 - Zn-consumption 3,2 % - Zn-production 2,0 % • USA 10 - Cu-consumption -12,2 % - Zn-consumption 1,7 % 5 • Europe - Cu-consumption
Slide 3: Zinc: Price and LME stocks
Zinc: Price and LME stocks USc/lb tonnes 65 810000 770000 60 730000 55 690000 50 650000 45 610000 40 570000 35 530000 30 490000 3 4 3 4 5 03 04 05 03 04 05 t -0 t -0 l- 0 l- 0 l- 0 n- n- n- r- r- r- ok ok ju ju ju ap ap ap ja ja ja Boliden AB 3 2005-07-25
Slide 4: Copper: Price and LME stocks
Copper: Price and LME stocks USc/lb tonnes 170 900000 160 800000 150 700000 140 600000 130 120 500000 110 400000 100 300000 90 200000 80 100000 70 60 0 03 4 3 4 5 03 04 05 03 04 05 t -0 l- 0 l- 0 l- 0 t- n- n- n- r- r- r- ok ok ju ju ju ap ap ap ja ja ja Boliden AB 4 2005-07-25
Slide 5: Continued Zn imbalance - Cu approaches balance
Continued Zn imbalance - Cu approaches balance Zinc balance Copper balance supply – demand supply – demand Thousand Thousand tonnes tonnes 500 1200 1000 300 800 600 400 100 200 0 -100 -200 -400 -300 -600 -800 -500 -1000 90 92 94 96 98 00 02 04 06 90 92 94 96 98 00 02 04 06 Boliden AB 5 2005-07-25
Slide 6: Recovery of the US dollar
Recovery of the US dollar USD/SEK EUR/USD 9,00 1,40 8,75 1,35 8,50 1,30 8,25 1,25 8,00 7,75 1,20 7,50 1,15 7,25 1,10 7,00 1,05 6,75 6,50 1,00 Apr Jul Oct 04 Apr Jul Oct 05 Apr Jul Apr Jul Oct 04 Apr Jul Oct 05 Apr Jul EUR/USD USD/SEK Boliden AB 6 2005-07-25
Slide 7: Earnings trend
Earnings trend SEK m First six months Q2 Q2 2005 2004 2005 2004 Net sales 9 179 9 045 4 705 4 547 Operating result (EBIT) 783 915 369 440 Result after financial items 621 698 269 350 Earnings per share 1,46 2,72 0,57 1,28 Cash flow from operating activities 961 910 712 434 Return on capital employed
Slide 8: Operating result - quarterly
Operating result - quarterly SEK m 600 511 500 475 440 405 415 400 369 300 200 100 0 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Boliden AB 8 2005-07-25
Slide 9: Production Copper
Production Copper* Smelter production, cathodes To nne s Mining production, metal content To nne s 100,000 100,000 89,113 89,898 91,363 89,196 80,939 80,000 80,000 60,000 60,000 40,000 40,000 20,354 22,678 20,560 19,027 19,258 20,000 20,000 0 0 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q2 2004 Q3 2004
Slide 10: Production Zinc
Production Zinc* Mining production, metal content Smelter production, casted zinc Tonnes Tonnes 120 000 120 000 107 914 109 156 108 845 102 212 104 378 98 422 100 000 100 000 88 946 87 021 79 656 80 163 80 000 80 000 60 000 60 000 40 000 40 000 20 000 20 000 0 0 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 20
Slide 11: Operating result per segment
Operating result per segment SEK m First six months Q2 Q2 2005 2004 2005 2004 Copper 455 709 224 370 Zinc 392 334 174 118 Other -64 -128 -29 -48 Total 783 915 369 440 • Copper – higher metal prices and stock profit counteracted by lower US dollar exchange rate and decline in production. • Zinc – the
Slide 12: Cash flow
Cash flow Operating result before • Cash flow from operating depreciation (EBITDA), SEK m activities SEK 961 million 2,977 (SEK 910 m). 3,000 • Cash flow from investment 2,500 activities SEK -549 million (SEK -751 m). 2,000 SEK m • Free cash flow SEK 624 million 1,500 (SEK 35 m). • Net loan amortisa
Slide 13: Capital structure
Capital structure 30 Jun 30 Jun 2005 2004 Net debt / Shareholders’ equity, % 97% Balance Sheet total, 100% 94% SEK bn 21,2 19,9 90% 80% 71% 71% 69% 70% Capital employed, 60% SEK bn 15,4 15,3 (%) 50% 40% Shareholders’ equity, 30% SEK bn 9,3 7,9 20% 10% Net debt, SEK bn 6,4 7,6 0% Q2 2004 Q3 2004 Q4 2
Slide 14: Summary first six months and forecast 2005
Summary first six months and forecast 2005 • Continued strong growth in China, but lower growth rate in the rest of the world. • Higher metal prices but lower US dollar exchange rate. • Temporary lower production during first six months. • Result after financial items first six months SEK 621 millio
Slide 15: Boliden
Boliden Interim Report January - June 2005 Mines Smelters Zinc Copper Boliden AB 15 2005-07-25
Slide 16: Operating result per segment
Operating result per segment *) 1400 1393 1200 1000 808 800 600 370 386 400 304 298 231 218 224 170 174 200 118 0 Q2 2004 Q3 2004 Q4 2004 FY 2004 Q1 2005 Q2 2005 Copper Zinc *) Excl OH & other Zinc 2004 incl sale of land in Tara during Q3 och Q4 net SEK 175 million. Boliden AB 16 2005-07-25
Slide 17: Sensitivity analysis June 2005
Sensitivity analysis June 2005 Change Effect on Change Effect on Change in Effect on in metal prices op.result in USD op. result TC/RC op. result +10% SEK m +10% SEK m +10% SEK m Copper 233 USD/SEK 516 TC/RC Copper 74 Zinc 353 EUR/USD 265 TC Zinc 44 Lead 52 USD/NOK 60 TC Lead -3 Gold 52 Silver 48 Ni
Slide 18: Investments
Investments • Investments for the first six months SEK 549 million (SEK 751 m). Copper mines 25% Zinc mines • Increased budget for 49% exploration in 2005. • Total investments in 2005 lower than in 2004. 18% Investments lower than Copper 8% depreciations in 2005 smelters Zinc smelters Boliden AB 18
Slide 19: Business cycle of metals
Business cycle of metals Availability of raw materials + low metal high metal prices prices high TC/RC high TC/RC Availability + of metal - low metal high metal prices prices low TC/RC low TC/RC - Boliden AB 19 2005-07-25