Slide 1: Interim Report January - September 2005
Boliden Interim Report January - September 2005 Mines Smelters Zinc Copper Boliden AB 1 October 24, 2005
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 2005 9 months* Industrial production 20 - Cu-consumption -0.4 % - Cu-production 7.7 % - Zn-consumption 3.5 % 15 - Zn-production -1.3 % • USA 10 - Cu-consumption -6.7 % - Zn-consumption -3.8 % 5 • Europe - Cu-consu
Slide 3: Zinc: Price and LME stocks
Zinc: Price and LME stocks USc/lb tonnes 70 810 000 65 770 000 60 730 000 55 690 000 50 650 000 45 610 000 40 570 000 35 530 000 30 490 000 03 3 04 4 05 5 4 5 3 3 4 5 -0 -0 l-0 -0 -0 -0 -0 -0 -0 n- n- n- l l ct ct ct r r r Ju Ju Ju Ap Ap Ap Ja Ja Ja O O O Boliden AB 3 October 24, 2005
Slide 4: Copper: Price and LME stocks
Copper: Price and LME stocks USc/lb tonnes 195 900 000 180 800 000 165 700 000 150 600 000 135 500 000 120 400 000 105 300 000 90 200 000 75 100 000 60 0 4 5 5 3 4 03 4 5 3 5 3 4 0 0 l-0 -0 -0 -0 -0 -0 -0 -0 -0 n- n- n- l l ct ct ct r r r Ju Ju Ju Ap Ap Ap Ja Ja Ja O O O Boliden AB 4 October 24, 200
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 October 24, 2
Slide 6: Recovery of the US dollar
Recovery of the US dollar 9.00 1.40 8.75 1.35 8.50 1.30 8.25 8.00 1.25 EUR/USD USD/SEK 7.75 1.20 7.50 1.15 7.25 1.10 7.00 6.75 1.05 6.50 1.00 Apr Jul Oct 04 Apr Jul Oct 05 Apr Jul Oct Apr Jul Oct 04 Apr Jul Oct 05 Apr Jul Oct Boliden AB 6 October 24, 2005
Slide 7: Historically strong result
Historically strong result SEK m First nine months Q3 Q3 2005 2004 2005 2004 Net sales 14 118 13 310 4 939 4 265 Operating result (EBIT) 1 484 1 320 701 405 Result after financial items 1 231 1 013 610 315 Earnings per share 2.96 3.90 1.50 1.18 Cash flow from operating activities 1 593 1 257 632 347
Slide 8: Operating result - quarterly
Operating result - quarterly SEK m 800 701 700 600 511 500 475 440 405 415 400 369 300 200 100 0 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Boliden AB 8 October 24, 2005
Slide 9: Production Copper
Production Copper* Mining production, metal content Smelter production, cathodes Tonnes Tonnes 100 000 100 000 89 898 91 363 89 196 88 143 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 30 000 22 678 30 000 20 560 21 484 19 027 19 258 20 000 20 000 10 000
Slide 10: Production Zinc
Production Zinc* Mining production, metal content Smelter production, casted zinc Tonnes Tonnes 120 000 120 000 107 994 109 156 108 845 107 429 104 378 98 422 100 000 100 000 87 021 86 800 79 657 80 163 80 000 80 000 60 000 60 000 40 000 40 000 20 000 20 000 0 0 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 20
Slide 11: Operating result per segment
Operating result per segment SEK m First nine months Q3 Q3 2005 2004 2005 2004 Copper 917 1 095 462 386 Zinc 630 638 238 304 Other -63 -413 1 -285 Total 1 484 1 320 701 405 • Copper – higher metal prices and stock profit counteracted by lower US dollar exchange rate and decline in production. • Zinc
Slide 12: Cash flow
Cash flow Operating result before • Cash flow from operating depreciation (EBITDA), SEK m activities SEK 1 593 million (SEK 1 257 m). 1,100 1,013 • Cash flow from investment 1,000 activities SEK -605 million (SEK -1 234 m). 900 • Free cash flow SEK 988 million 800 780 (SEK 23 m). 718 684 700 674 • N
Slide 13: Capital structure
Capital structure 30 Sep 30 Sep 2005 2004 Net debt / Shareholders’ equity, % Balance Sheet total, 100% 94% SEK bn 21.3 20.3 71% 71% 69% Capital employed, 64% SEK bn 15.3 15.4 50% Shareholders’ equity, SEK bn 9.5 8.1 Net debt, SEK bn 6.0 7.5 0% Gearing, % 64 94 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005
Slide 14: Summary first nine months and forecasts 2005
Summary first nine months and forecasts 2005 • Continued strong and stable growth in the global economy. • Higher metal prices but lower US dollar exchange rate. • High production levels from all units during Q3. • Result after financial items first nine months SEK 1 231 million (SEK 1 013 m), Q3 SE