Boliden Ab · OMXSTO:BOL
Boliden Ab — H1 2003 Earnings Presentation
20 slides from Boliden Ab's earnings presentation, Aug 19, 2003
Slide 1: Interim Report January - June 2003
© boliden Boliden = (S) boliden Interim Report January -— June 2003 Jan Johansson - President & CEO August 19, 2003
Slide 2: Copper price and stocks
!" # $ #% Boliden USc/lb Tonnes 85 1000000 80 900000 75 800000 70 700000 65 600000 60 500000 2 02 3 2 2 2 3 3 2 3 -0 -0 -0 -0 -0 -0 -0 -0 -0 v- l l ar ar aj aj p n n ju ju no se ja ja m m m m 2 August 19, 2003
Slide 3: Zinc price and stocks
!" & # # $ #% Boliden USc/lb Tonnes 40 800000 38 700000 36 600000 34 500000 32 400000 2 3 2 03 2 2 3 2 02 3 -0 -0 -0 -0 -0 -0 -0 -0 n- v- l l n aj aj ar p ar ju ju ja ja no se m m m m 3 August 19, 2003
Slide 4: Metal Prices
" ' # Boliden Metal Prices First 6 months Change Second Quarter Change (average LME/LBMA) 2003 2002 in % 2003 2002 in % Copper (USD/lb) 0.75 0.72 4 0.74 0.73 1 Zinc (USD/lb) 0.35 0.36 -3 0.35 0.36 -3 Lead (USD/lb) 0.21 0.21 0 0.21 0.21 0 Gold (USD/oz) 350 301 16 347 313 11 Silver (USD/oz) 4.63 4.60
Slide 5: Sensitivity analysis: metal prices
$ ( " ' # )" $ *+ Boliden 800 700 600 500 +10% = 340 MSEK 400 300 200 100 0 -100 -200 -300 -400 -500 -600 -700 -800 -20% -15% -10% -5% 0% 5% 10% 15% 20% 5 August 19, 2003
Slide 6: Earnings development and business areas
, - ' . / $0" Boliden • Increased production at the mines • Higher metal prices • Productivity increases cost cutting at the operations • Close-out of the dollar futures • Lower exchange rate for the US dollar Mining Smelting Fabrication • Lower smelting and refining charges Operations Operations •
Slide 7: Net debt has decreased
1 2 3 4 "$ * Boliden 5 300 • Net debt has decreased 5 200 • In July the debt was amortized by approximately 300 MSEK 5 100 5 000 4 900 4 800 4 700 4 600 4 500 4 400 I -02 II -02 III -02 IV -02 I -03 II -03 7 August 19, 2003
Slide 8: Positive development of shareholders' equity
$ ' 5 6 4 "$ * Boliden 3 500 • Positive development of shareholder’s equity 3 000 2 500 2 000 1 500 1 000 500 0 I -02 II -02 III -02 IV -02 I -03 II -03 8 August 19, 2003
Slide 9: Gearing has improved gradually
1 2 3 7$ ' 5 6 Boliden 2.3 • Gearing has improved gradually 2.1 1.9 1.7 1.5 1.3 1.1 0.9 0.7 0.5 I -02 II -02 III -02 IV -02 I -03 II -03 9 August 19, 2003
Slide 10: Mines: results drivers
" Boliden • Increased production • Productivity improvements • Higher metal prices • Lower smelting and refining charges • Lappberget • Lower exchange rate for the US dollar • Lower gold production at Aitik and the Boliden Area • Lower zinc production at Myra Falls 10 August 19, 2003
Slide 11: Copper production by mine
# ) + Boliden Boliden Area Aitik • Copper production varies at Garpenberg Myra Falls Aitik, which is the largest 30 000 producer • Copper production has increased 25 000 in the Boliden Area mainly due to the start up of Storliden and the 20 000 priority given to copper ore during 2003 15 000 • Coppe
Slide 12: Zinc production by mine
& # # ) + Boliden Boliden Area Garpenberg Myra Falls • During Q2 zinc production was at 50 000 the same level as in Q1 45 000 – Boliden Area 1% 40 000 – Garpenberg 8% 35 000 – Myra Falls -8% 30 000 25 000 20 000 15 000 10 000 5 000 0 I -02 II -02 III -02 IV -02 I -03 II -03 12 August 19, 2003
Slide 13: Smelters: results drivers
$ ' Boliden • Higher metal prices • Increased sales at Bergsöe • Increased processing of internal mine concentrates and secondary raw materials • Lower smelting and refining charges • Lower production due to a shortage of the external mine concentrates • Lower exchange rate for the US dollar • Valua
Slide 14: Feed of copper concentrate
8 %9 / # ) + Boliden Feed Copper Concentrate (tonnes) • Feed of copper concentrate at 200 000 planned levels 195 000 190 000 185 000 180 000 175 000 170 000 165 000 I/02 II/02 III/02 IV/02 I/03 II/03 14 August 19, 2003
Slide 15: Production of copper
8 %9 # ) + Boliden Copper (tonnes) • Production of copper is back to 60 000 normal levels 58 000 56 000 54 000 52 000 50 000 48 000 I/02 II/02 III/02 IV/02 I/03 II/03 15 August 19, 2003
Slide 16: Fabrication: brass market restructuring
/ 3 # Boliden • Initiative to restructure and consolidate the Nordic and British brass markets • Extensive efficiency-boosting programmes – costs and capital • Weak demand for copper and brass products • Pressure on prices, especially for copper products 16 August 19, 2003
Slide 17: Brass and copper measures and status
# :/ 3 # Boliden Measures Measures Status Status Brass Brass Reduction Reduction in in personnel personnel July July 2, 2, announcement announcement of of aa surplus surplus LDM LDM of of 40 40 positions. positions. Negotiations Negotiations in in progress. progress. October October 1, 1, implementa
Slide 18: Currency futures and USD/SEK
; Boliden Currency futures: P/L effect from currency futures, including closed-out contracts: 2003 55% to USD/SEK 10.59 2003 83% to USD/SEK 10.59 2004 36% to USD/SEK 10.57 2004 72% to USD/SEK 10.57 2005 10% to USD/SEK 10.29 2005 28% to USD/SEK 10.29 Options with Floor 2003 25% to strike 9.00 12 0# <
Slide 19: Summary
$ Boliden • Improved earnings after financial items. • Mines – Higher metal prices and positive development of the production. New cost- saving programme at Aitik. Lappberget, an inferred mineral resource of 7.5 million tonnes. • Smelters – Lower production due to a shortage of external mine concent
Slide 20: www.boliden.com
Boliden www.boliden.com 20 August 19, 2003