Slide 1: Full Year Results 2016
22 FEBRUARY 2017 Full Year Results 2016
Slide 2: Important notice
Important notice • This presentation has been prepared by the management of Nyrstar NV (the "Company"). It does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any
Slide 3: Agenda
Full year results 2016 Agenda • Business highlights and initial actions • Update on 2016 operating results • 2016 financial review • 2017 priorities 3
Slide 4: Overview of 2016
Business highlights and initial actions Overview of 2016 • Strong progress made on key strategic initiatives − Balance sheet strengthened − Substantial improvement with consistent operating performance in Q4’16 − Mining divestment advanced and remaining Mining cashflow positive − Management team cha
Slide 5: Initial actions
Business highlights and initial actions Initial actions • Strong, technically competent workforce supported by strengthened senior management team − Hilmar Rode as Chief Executive Officer − Frank Rittner as Chief Operating Officer − Sebastião Balbino as Chief Commercial Officer • Review of head offi
Slide 6: Agenda
Full year results 2016 Agenda • Business highlights and initial actions • Update on 2016 operating results • 2016 financial review • 2017 priorities 6
Slide 7: Macro conditions were increasingly supportive over 2016
Update on 2016 operating results Macro conditions were increasingly supportive over 2016 Zinc pricing LME zinc price • Strong price growth in 2016, driven by a FY-15 - $1,928/t FY-16 - $2,095/t sharp contraction in mine supply and 2,850 2,700 inventory levels falling to a six-year low 2,550 2,400 •
Slide 8: Metals Processing negatively impacted by one-off outages in Q3 2016
Update on 2016 operating results Metals Processing negatively impacted by one-off outages in Q3 2016 Zinc production Zinc production per quarter (kt) per site (kt) • Zinc metal production of 1,015kt affected by -9% -9% planned maintenance shuts and exceptional 1,115 1,000 - 1,100 1,115 operational o
Slide 9: Mining performance continued to improve during 2016
Update on 2016 operating results Mining performance continued to improve during 2016 Zinc in concentrate Zinc in concentrate Mining continuing operations production (kt)1 per site (kt) • Zinc in concentrate production in 2016 down 40% on 2015, -40% -40% primarily due to the suspension of operations
Slide 10: Improvements in safety performance during 2016
Update on 2016 operating results Improvements in safety performance during 2016 Safety Lagging Safety Indicators • Preventing harm is a core value of Nyrstar • Safety performance in 2016 tragically marked by Nyrstar RIR DART LTIR three fatalities at El Mochito and one at Langlois 11.4 13.0 • LTIR in
Slide 11: Port Pirie Redevelopment project comprehensively reviewed
Update on 2016 operating results Port Pirie Redevelopment project comprehensively reviewed • Strategy to maximise free metal and by-products by extracting more ~ 50% increase in throughput value from feed material and internal flows and relying less on through greater ability to use residues1 treatm
Slide 12: Remaining Mining cashflow positive at current macros
Update on 2016 operating results Remaining Mining cashflow positive at current macros Asset Impairments in 2016 (€m) • Completed sale of El Toqui and El Mochito, share purchase Langlois 19 agreements signed for Coricancha and Contonga Myra Falls 62 ‒ Total cash consideration of USD 52m (USD 39m upfr
Slide 13: Agenda
Full year results 2016 Agenda • Business highlights and initial actions • Update on 2016 operating results • 2016 financial review • 2017 priorities 13
Slide 14: Financial summary
2016 financial review Financial summary Underlying EBITDA (€’m) 267 €m 20151 2016 ∆ ∆% 183 193 Revenue 3,020 2,763 (257) (9%) 336 MP U. EBITDA 336 222 (114) (34%) Metals Processing 239 222 Mining U. EBITDA (31) 6 37 119% Other U. EBITDA (38) (35) 3 8% (10) 6 Mining1 (31) Group Underlying EBITDA 267
Slide 15: Group underlying EBITDA – 2016 on 2015
2016 financial review Group underlying EBITDA – 2016 on 2015 (€m) Group Macro Metals Processing Mining €267m1 €(57)m €(48)m + €24m 48 (110) 5 Planned maintenance 47 Zinc Suspension of operations at shuts and impact of (88) TC MTN and Myra Falls and exceptional production Group production issues at E
Slide 16: Net Debt evolution 2016
2016 financial review Net Debt evolution 2016 (1,163) Zn Prepay & Perp Notes 50 (106) €m Net Debt 8 (223) (36) (298) (937) 262 (156) (156) (52) (49) (140) 193 (133) 865 1163 • PPR €(114)m • FX €(21)m • Perp Note +€110m • Restructuring & Transaction (865) (865) (781) • MP Growth €(48)m €(14)m (156) N
Slide 17: Balance sheet substantially strengthened
2016 financial review Balance sheet substantially strengthened Liquidity at the end of 2016 Solid financial position (committed and uncommitted) • Diversified sources of funding backed by broad €m Capacity Drawn Available banking syndicate SCTF Facility 400 (330) 70 • Borrowing base (SCTF) facility
Slide 18: Agenda
Full year results 2016 Agenda • Business highlights and initial actions • Update on Q3 operating results • Financial review • 2017 priorities 18
Slide 19: 2017 priorities
2017 priorities 2017 priorities • Initiate a step change in performance across all operations towards their full potential • Execute on the revised Port Pirie Redevelopment budget and schedule • Progress the divestment of the cash flow positive mining segment for value − Reviewing the re-start of My
Slide 20: Questions
Questions
Slide 21: 2016 underlying EBITDA sensitivity
Appendix 2016 underlying EBITDA sensitivity 2016 Estimated annual 2016 underlying EBITDA impact (€’m) Change Parameter average +/-10% Metals price/rate Processing Mining Group EUR:USD* 1.11 -/+ 10% +97 (79) +5 (4) +102 (83) Zinc price $2,095/t -/+ 10% (39) +53 (15) +15 (54) +68 Zinc Base (28) +28 +3
Slide 22: Gross profit by metal
Appendix Gross profit by metal 2015 Metals Processing gross profit by metal1 2016 Metals Processing gross profit by metal1 €1,003m €845m Zinc (€685m, 73%) Zinc (€811m,73%) Lead (€83m, 9%) Lead (€ 81m, 7%) Sulphuric Acid (€45m, 5%) Sulphuric Acid (€56m, 5%) Leach product (€38, 4%) Leach product (€ 59
Slide 23: Inventory evolution: Dec 2015 to Dec 2016
Appendix Inventory evolution: Dec 2015 to Dec 2016 €m +206 40 (7) (3) (11) 20 (12) (23) 63 70 (10) (3) 1 15 USD:EUR moved 31 Zinc +€23m from 1.116 at the 62 Zinc +€40m Lead €(8)m (25) 30.Sep to 1.054 Zinc +€43m Lead +€17m Silver €(20)m at 31.Dec Silver +€25m Silver +€6m Gold €(2)m Lead +€3m Zinc +€5
Slide 24: Debt, working capital facilities, prepays, perpetual securities overview
Appendix Debt, working capital facilities, prepays, perpetual securities overview Maturity profile Outstanding balances at 31 Dec 2016 (€m) Structural Debt and Working Capital Facilities €m Structural Debt 2018 Convertible Bond 113 €400m SCTF Facility 2019 High Yield Bond 341 (June) 2022 Convertible
Slide 25: Underlying EBITDA to Net Loss reconciliation
Appendix Underlying EBITDA to Net Loss reconciliation €m 2015 2016 ∆ Underlying EBITDA 267 193 (74) Embedded derivatives 13 (5) (19) Restructuring expense (12) (9) 3 M&A related transaction expense - (5) (5) Underlying adjustments 2 (19) (21) Unadjusted EBITDA 268 174 (95) Depreciation, depletion an
Slide 26: 2017 guidance
Appendix 2017 guidance Production Capex 2016 2017 2016 2017 €’m Actual Guidance Actual Guidance Metals Processing Zinc (kt) 1,015 1,000 – 1,100 Metals Processing 236 205 – 255 Sustaining 97 100 – 135 Mining - metal in concentrate Growth 44 25 – 35 Zinc (kt) 96 115 – 135 Port Pirie Redevelopment 95 8