Slide 1: Interim report January – June 2013
Interim report p January – June 2013 Lennart Evrell President & CEO Mikael Staffas C O CFO
Slide 2: Q2 Summary
Q2 Summary Revenues 8,035 (10,363) MSEK MSEK Quarterly EBIT R12, MSEK EBIT ex PIR* 370 ((956)) MSEK 2 500 Quarterly y EBIT excl PIR* 6000 ‒ EBIT -59 (795) MSEK Rolling Q EBIT excl PIR* Free cash flow -1,477 (79) MSEK 2 000 5000 Lower metall prices L i 1 500 4000 Good mine production Exte
Slide 3: The Market
The Market Boliden Group Q2 2013 3 2013-07-17
Slide 4: Industrial production
Industrial production Year on y year % 25 20 15 10 5 0 ‐5 ‐10 ‐15 ‐20 ‐25 25 2007 2008 2009 2010 2011 2012 2013 China World USA Euro Area Boliden calculation of world IP, IP Boliden estimate for Euro Area in May 2013 Boliden Group Q2 2013 4 2013-07-17
Slide 5: Construction
Construction Year on y year % 40 30 20 10 0 ‐10 USA: construction spending value ‐20 EU27: Index construction production China: fixed asset investments - cumulative value ‐30 30 2007 2008 2009 2010 2011 2012 2013 China USA EU27 Boliden Group Q2 2013 5 2013-07-17
Slide 6: Automotive
Automotive Production, year on year % by quarter 120 100 80 60 40 20 0 ‐20 ‐40 ‐60 ‐80 2007 2008 2009 2010 2011 2012 2013 China Germany US auto IP light vehicles Boliden Group Q2 2013 6 2013-07-17
Slide 7: Zinc price and inventories
Zinc price and inventories USD/t LME Inventory Shanghai Inventory Price Price Q avg Zinc price (LME average) 5 000 1,8 Millions Q2-13 vs 4 500 1,6 USD/t S / period 4 000 Q2 12 1,928 -5% 1,4 3 500 Q3 12 1,885 -2% 1,2 3 000 Q4 12 1,947 -5% 1,0 2 500 Q1 13 2,033 -9% 0,8 Q2 13 1,840 - 2 000 0,6 1 500 04
Slide 8: Zinc TC and premiums
Zinc TC and premiums $/t conc Treatment charge (TC) Metal premium $/t metal 300 250 250 200 200 150 150 100 100 50 50 0 0 2010 2011 2012 2013 2010 2011 2012 2013 Realised TC (including price participation) Europe ex-works US Midwest Delivered Spot TC - outturn Far East ((Western)) Source: © CRU (www
Slide 9: Copper price and inventories
Copper price and inventories USD/t LME Inventory Shanghai Inventory COMEX Inventory Price Price Q avg Copper price (LME average) 11 000 1,6 Q2-13 vs ons Millio 10 000 USD/t period 1,4 9 000 Q2 12 7,869 -9% 1,2 8 000 Q3 12 7,706 -7% 7 000 1,0 Q4 12 7,909 -10% 6 000 Q1 13 7,931 -10% 0,8 5 000 Q2 13 7,
Slide 10: Copper TC and premiums
Copper TC and premiums Treatment charge (TC) Metal premium $/t conc $/t metal 120 140 100 120 100 80 80 60 60 40 40 20 20 0 0 2010 2011 2012 2013 2010 2011 2012 2013 TC annual and mid-year benchmark contract Spot Copper premium CIF W. Europe Standard g grade spot p TC US$/dmt Benchmark CIF Europe So
Slide 11: Gold, Silver and Lead prices
Gold, Silver and Lead prices Precious metals, sharp reductions in April USD/oz Gold USD/t 5 000 Lead 450 2 000 Thousands 1 800 4 500 400 1 600 4 000 350 1 400 3 500 300 1 200 3 000 250 1 000 2 500 200 800 2 000 600 150 1 500 400 100 1 000 200 50 500 0 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 12: Market development
Market development Zinc – global market Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Demand -2% 1% 3% 5% 5% Smelter production -4% -6% -4% 1% 7% Metal balance, kt -7 -136 -4 5 62 Mine production 0% -3% 0% -1% -5% Concentrate balance, balance kt 238 321 70 -151 151 24 Copper – global market Q2 2012 Q3 201
Slide 13: Mines
Mines Boliden Group Q2 2013 13 2013-07-17
Slide 14: Mines – Summary
Mines – Summary EBIT 376 (730) MSEK MSEK Quarterly EBIT R12, MSEK ‒ 427 MSEK in Q1 2013 Rolling Q EBIT 1 400 5000 Price impact -335 MSEK vs Q1 4500 ‒ Incl. final pricing -56 MSEK 1 200 4000 Good production 1 000 Moderate cost increase 3500 3000 800 Capex 977 (842) MSEK 2500 600 Expansion
Slide 15: Mines – Production
Mines – Production Milled ore, Copper Metal Milled ore, Zinc Metal mt content, kt mt content, kt 10 24 100 1,5 20 8 80 1,2 16 6 60 0,9 12 4 0,6 40 8 2 4 0,3 20 0 0 0,0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2011 2012 2013 2010 2011 2012 2013 Milled ore (
Slide 16: Smelters
Smelters Boliden Group Q2 2013 16 2013-07-17
Slide 17: Smelters – Summary
Smelters – Summary EBIT ex PIR* -30 (251) MSEK Quarterly EBIT R12, MSEK MSEK ‒ 298 MSEK in Q1 2013 Quarterly EBIT excl PIR* 1 300 1400 Extensive maintenance stops Rolling Q EBIT excl PIR* ‒ EBIT impact 305 (130) MSEK 1 100 1200 Capex 530 (274) MSEK 900 ‒ Maintenance 1000 ‒ De-bottlenecking 700
Slide 18: Smelters – Production
Smelters – Production Metal Total feed, Copper Cathode Total feed, Zinc production, kt production, ktonnes ktonnes kt 250 140 400 100 350 120 80 200 300 100 250 60 150 80 200 40 60 150 100 100 40 20 50 50 20 0 0 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2010 2
Slide 19: Financials
Financials Boliden Group Q2 2013 19 2013-07-17
Slide 20: Financial development – Summary
Financial development – Summary MSEK Q2 2013 Q2 2012 Q1 2013 Revenues 8,035 10,363 9,249 EBITDA 664 1,433 1,377 EBIT -59 795 695 EBIT ex PIR 370 956 751 Investments 1,510 1,118 1,019 Free cash flow -1,477 79 -220 Earnings per share, SEK -0.37 1.95 1.86 Net debt / equity ratio 41 32 27 Boliden Group
Slide 21: EBIT analysis Q2 vs Q1
EBIT analysis Q2 vs Q1 MSEK Q2 2013 Q1 2013 EBIT -59 59 695 Process inventory revaluation (PIR) -429 -56 EBIT excl. PIR 370 751 Deviation -381 Specification of deviation Higher mine production Volume 314 Metal prices down, -538 MSEK Prices and Terms (incl. hedges) -418 Hedges positive impact Currenc
Slide 22: EBIT analysis Q2 vs Q2
EBIT analysis Q2 vs Q2 MSEK Q2 2013 Q2 2012 EBIT -59 59 795 Process inventory revaluation (PIR) -429 -162 EBIT excl. PIR 370 956 Deviation -586 Specification of deviation Volume -5 All metals down except lead Prices and Terms (incl. hedges) -272 Currency effects -155 155 SEK 6% stronger than Q2 Q2-1
Slide 23: Cash flow
Cash flow MSEK Q2 2013 Q2 2012 Q1 2013 EBITDA including PIR* 664 1 433 1,433 1 377 1,377 PIR 429 162 56 Change in inventories 387 -465 -103 Change in payables -838 838 202 -158 158 Change in receivables -108 250 -98 Other -2 -5 0 Changes in working capital -132 132 144 -303 303 Cash flow from invest
Slide 24: Capital structure
Capital structure MSEK % Net debt & Gearing SEK bn 30 Jun 31 Mar Unless otherwise stated 2013 2013 10 000 50 45 Total Asset 40.0 39.9 8 000 40 Capital employed 33.3 31.8 35 Shareholders' equity 22.0 23.0 6 000 30 25 Net debt 9.0 6.2 4 000 20 g, % Gearing, 41 27 15 Loan duration, years 3.1 3.3 2 000
Slide 25: Project update
Project update Aitik mine production 38,5 pace in Q2, R4Q 34,7 Mt Kankberg (Boliden area) ‒ Tellurium leaching plant – in production Sil Silver recovery Kokkola K kk l on plan l ‒ Start-up Q3 2014 Garpenberg on plan ‒ Underground g infrastructure, shafts, concentrator ‒ Start-up first half 2
Slide 26: Summary and going forward
Summary and going forward Market Boliden Metal markets uncertain Aitik Base metal prices down ‒ Low grades through 2014 ‒ Record production in Q2 Precious metals prices sharp decline Maintenance stops in Q2 ‒ On plan - EBIT impact Strong SEK, slightly weaker in Q2 ‒ Capex - maintenance a
Slide 27: Disclaimer
Disclaimer This presentation has been prepared by Boliden for information purposes only. Nothing in this material shall be construed as an offer or solicitation to buy y or sell any y securityy or p product,, or to engage in or refrain from engaging in any transaction. This presentation has been
Slide 28: Metals for modern life
Metals for modern life Boliden Group Q2 2013 28 2013-07-17