Slide 1: Full Year Report 2005
Boliden Full Year Report 2005 Mines Smelters Zinc Copper Boliden AB 1 February 6, 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 2005 Q4* Industrial Production 20 - Cu-consumption 4.0 % - Cu-production 5.1 % - Zn-consumption 3.8 % 15 - Zn-production 0.1 % Growth % • USA 10 - Cu-consumption 1.3 % - Zn-consumption -6.2 % 5 • Europe - Cu-consu
Slide 3: Copper: Price and LME stocks
Copper: Price and LME stocks USc/lb Tonnes 240 900000 220 800000 200 700000 180 600000 160 500000 140 400000 120 300000 100 200000 80 100000 60 0 03 04 05 06 3 4 5 3 4 5 3 4 5 l-0 l-0 l-0 -0 -0 -0 -0 -0 -0 n- n- n- n- pr pr pr ct ct ct Ju Ju Ju Ja Ja Ja Ja O O O A A A Boliden AB 3 February 6, 2006
Slide 4: Zinc: Price and LME stocks
Zinc: Price and LME stocks USc/lb Tonnes 90 1200000 85 1100000 80 1000000 75 900000 70 800000 65 700000 60 600000 55 500000 50 400000 45 300000 40 200000 35 100000 30 0 03 04 05 3 4 5 06 3 4 5 3 4 5 -0 -0 -0 l-0 l-0 l-0 -0 -0 -0 n- n- n- n- ct ct ct pr pr pr Ju Ju Ju Ja Ja Ja Ja O O O A A A Boliden
Slide 5: China – large net importer of zinc concentrate and zinc metal
China – large net importer of zinc concentrate and zinc metal '000 tonnes 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov -10 000 -20 000 -30 000 -40 000 -50 000 -60 000 -70 000 Concentrates Metal Data: CHR Metals Boliden AB 5 February 6, 2006
Slide 6: Increased demand for zinc import in Europe
Increased demand for zinc import in Europe consumption in '000 tonnes 2600 900 Balance in '000 tonnes 2500 700 Production and 500 2400 300 2300 64 58 100 2200 (100) (60) (86) 2100 (143) (300) (208) (248) 2000 (500) 2004 2005 2006 2007 2008 2009 2010 Balance Europe Production total Europe Consumption
Slide 7: Increased zinc metal premium
Increased zinc metal premium US $/t 145 135 130 130 125 115 115 115 110 110 105 121 105 105 105 105 115 105 105 105 100 100 110 105 110 95 100 100 100 100 100 100 100 100 100 95 95 94 94 85 88 75 83 77 61 65 73 55 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sept-05 Oct-05 Nov-05 Dec-05 c
Slide 8: Shortage of copper concentrate?
Shortage of copper concentrate? Copper: Present production + probable expansions +possible expansions '000 tonnes of copper 30000 Possible expansions Probable expansions Base Case 25000 New Projects and planned expansions 1% growth rate 3 % growth rate 20000 5% growth rate 15000 10000 5000 0 1999 20
Slide 9: 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 20000 Base Case + Highly Probable 1% Demand Growth 18000 3% Demand Growth 16000 5% Demand Growth 14000 12000 10000 8000 6000 4000 2000 0
Slide 10: Historically strong result
Historically strong result SEK m Full year Fourth quarter 2005 2004 2005 2004 Net sales 20 441 17 928 6 323 4 618 Operating result (EBIT) 3 069 1 831 1 585 511 Result after financial items 2 812 1 365 1 581 352 Earnings per share 7.07 4.98 4.11 1.13 Cash flow from operating activities 2 540 1 552 94
Slide 11: Operating result - quarterly
Operating result - quarterly SEK m 1700 1585 1500 1300 1100 900 701 700 511 475 500 440 405 415 369 300 100 -100 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Boliden AB 11 February 6, 2006
Slide 12: Production Copper
Production Copper Mining production, metal content Smelter production, cathodes To nne s To nne s 100 000 100 000 91 363 89 196 88 143 89 429 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 30 000 30 000 20 560 19 027 21 484 19 258 20 000 20 000 10 0
Slide 13: Production Zinc
Production Zinc Mining production, metal content Smelter production, casted zinc To nne s To nne s 120 000 109 156 112 537 120 000 108 845 104 378 107 429 98 422 100 000 100 000 87 021 86 800 87 548 80 163 80 000 80 000 60 000 60 000 40 000 40 000 20 000 20 000 0 0 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4
Slide 14: Garpenberg Area
Garpenberg Area Long section Garpenberg Garpenberg N 0Z 400Z Dammsjön Lappberget K v ar 800Z nber 870 Z 910 Z Finnhyttan & ge t Strand Ore Tyskgården & Kyrkmalmen Dammsjön Kanal Ore Kaspersbo N Production Levels Potential Areas Boliden AB 14 February 6, 2006
Slide 15: Operating result per segment
Operating result per segment SEK m Full year Fourth quarter 2005 2004 2005 2004 Copper 1 921 1 393 1 004 298 Zinc 1 408 808 778 170 Other -260 -370 -197 43 Total 3 069 1 831 1 585 511 • Copper – higher metal prices, treatment charges and stock profit counteracted mainly by lower US dollar exchange r
Slide 16: Cash flow
Cash flow Operating result before depreciation (EBITDA), SEK m • Cash flow from operating 1 900 1 900 activities SEK 2 540 million (SEK 1 552 m). 1 700 • Cash flow from investment 1 500 activities SEK -982 million 1 300 (SEK -1 508 m). 1 100 • Free cash flow SEK 1 558 million 1 013 (SEK 44 m). 900 7
Slide 17: Capital structure
Capital structure 31 dec 31 dec 2005 2004 Net debt / Shareholders’ equity, % Balance Sheet total, 80% 71% 71% SEK bn 22.9 20.2 70% 69% 64% 60% Capital employed, 54% SEK bn 15.8 15.4 50% 40% Shareholders’ equity, SEK bn 10.3 9.1 30% 20% Net debt, SEK bn 5.5 6.5 10% Gearing, % 54 71 0% Q4 2004 Q1 2005
Slide 18: Financial goals
Financial goals • Net debt / shareholders´ equity of approximately 40 per cent • ROCE >10 per cent • Dividend – approximately 1/3 of net result Boliden AB 18 February 6, 2006
Slide 19: Summary 2005 and forecast 2006
Summary 2005 and forecast 2006 • Continued strong and stable growth in the global economy. • Higher metal prices but lower US dollar exchange rate. • Good production levels from all units during Q4. • Result after financial items full year SEK 2 812 million (SEK 1 365 m), Q4 SEK 1 581 million (SEK 3
Slide 20: www.boliden.com
www.boliden.com Mines Smelters Zinc Copper Boliden AB 20 February 6, 2006