Boliden AB · OMXSTO:BOL

Boliden AB — Investor Day (September 2011)

20 slides from Boliden AB's investor day presentation, Sep 6, 2011

  1. Slide 1: Strategy

    Strategy Capital Markets Day 6 September 2011 Lennart Evrell President & CEO

  2. Slide 2: Favourable market through 2025

    Favourable market through 2025 Short term volatility million tonnes World Copper Demand 30 2010-2020: +3.6% p.a. China expansion 25 20 1945-1973: +5% p.a. 1982-1990: +2.3% p.a. Post war 1900-1918: + 6.6% p.a. W World slower growth Japan expansion 15 Industrialization in USA and Europe 10 1929-1932:

  3. Slide 3: Boliden Position

    Boliden Position Boliden Group-CMD 2011 3 2011-09-06

  4. Slide 4: Smelters – Cost Position

    Smelters – Cost Position  Informationen ej tillräcklig för benchmarking  Kokkola sannolikt nära målet NOTE THAT INTERNAL  Global no 6 Odda ej i nivå med målet Global no 1 Global no 2 Global no ~15 Global no 1 CALCULATIONS SHOW A SIGNFICANTLY DIFFERENT Global no 2 Global no 3 Global no 3 COST LEVE

  5. Slide 5: Mines – Cost Position

    Mines – Cost Position Boliden Group-CMD 2011 5 2011-09-06

  6. Slide 6: Boliden rank

    Boliden rank Zinc mining 2010 Zinc smelting 2010 Zinc kt kt 1 Glencore 743 1 Nyrstar 1,077  A leading position both in 2 Hindustan Zinc 718 2 Korea Zinc Group 940 mines and smelter 3 Xstrata (free float) 666 3 Hindustan Zinc 669 4 MMG 664 4 Votorantim 488 5 Teck Cominco 646 5 Boliden 456 Copper 6 A

  7. Slide 7: Strengths and weaknesses - Boliden Group

    Strengths and weaknesses - Boliden Group Strengths Weaknesses  High productivity  Short Life of Mine in Tara  High quality Metals and Mining  Exposed to weak concentrate market company  Northern Europe issues  Favourable Cash-cost position ‒ Energy  Low political risk ‒ Distance to end-market

  8. Slide 8: Strength and weaknesses - Smelters

    Strength and weaknesses - Smelters Strenghts Weaknesses  Strong market position in Northern  Exposed to weak copper concentrate Europe market  Diversification in copper smelters  Process stability Odda and Harjavalta  High productivity in Kokkola  High cost energy exposure in Finland  Long-te

  9. Slide 9: Strength and weaknesses - Mines

    Strength and weaknesses - Mines Strenghts Weaknesses  Mine design  Declining mine production in Tara  Knowledge AG milling  Low grade in Aitik  High productivity  Competitive mines  Long-term energy contracts  Environmental performance Boliden Group-CMD 2011 9 2011-09-06

  10. Slide 10: Goal

    Goal Boliden Group-CMD 2011 10 2011-09-06

  11. Slide 11: Future position

    Future position Position  Base metals company with a focus on sustainability with core expertise in exploration, mining, smelting and metal recycling Perceived as  Best company among medium-sized base metals company with at least maintaining market share By creating  Strong mines, efficient smelt

  12. Slide 12: Financial Goals

    Financial Goals  Return on capital employed exceeding 10 % over a business cycle. ‒ 21% 2010  Net debt/equity ratio in an economic upturn below 20% in order to maintain a reasonable financial ability in a recession. ‒ 24% 2010  Dividend one third of net profit. ‒ 5 SEK 2010 Boliden Group-CMD 2011

  13. Slide 13: CSR goals

    CSR goals  Social responsibility ‒ Securing tomorrow’s skill pool ‒ Diversity and equal opportunity ‒ Implementation of New Boliden Way ‒ Create a safe working environment  Environmental responsibility ‒ Minimise emissions to air and water ‒ Limit impact on the physical environment ‒ Responsible m

  14. Slide 14: Target by business area

    Target by business area Smelters Mines  New Boliden Way  New Boliden Way ‒ Production stability ‒ Production stability ‒ Productivity improvement ‒ Productivity improvement ‒ Cost reduction ‒ Cost reduction ‒ Quality  Increased Production  Raw Material ‒ Organic growth ‒ Competitive prices and c

  15. Slide 15: Strategy

    Strategy Boliden Group-CMD 2011 15 2011-09-06

  16. Slide 16: Boliden strategy

    Boliden strategy  Operational excellence ‒ Production stability and productivity ‒ New Boliden Way  Organic growth ‒ Eliminating production bottlenecks ‒ Long-term growth investments ‒ Near-mine exploration  Acquisitions ‒ Focus on zinc ‒ Boliden’s competence offers excellence opportunities to cr

  17. Slide 17: Operational excellence

    Operational excellence Follow up NBW 1. Leadership2. Customer- supplier 28. Continuous improvement5,00 3.relations NBW plan deployment 27. Process stability (A3) 4. Performance 26. Team management 4,00 management 25. Shipping 5. Elimination of waste 3,00 24. Quality 6. Problem solving 2,00 7. Learni

  18. Slide 18: Organic growth

    Organic growth Project portfolio 2010 2012 2014 New Boliden Way - Lean Aitik Rönnskär Kankberg Garpenberg Expansion E-scrap Au, Te Expansion Cu-Ag Zn, Ag, Pb Boliden Area Hötjärn Maurliden East Boliden Area Kankberg, Te tailings pond Cu mine Mill/feed leaching logistics Boliden Group-CMD 2011 18 201

  19. Slide 19: Organic growth

    Organic growth Exploration Exploration Project Development Decision - Execution Conceptual – Pre-feasibility – Feasibility Garpenberg 1957 Garpenberg 1999 Garpenberg 2007 Garpenberg Garpenberg Garpenberg 2009 2.5 2008 Jan 2011 Kankberg 2004 Kankberg Garpenberg Kankberg Kankberg Kankberg 2010 1999 Fe

  20. Slide 20: Boliden produces metals that make modern life work

    Boliden produces metals that make modern life work Boliden Group-CMD 2011 20 2011-09-06

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