Boliden Ab · OMXSTO:BOL
Boliden Ab — Q1 2013 Earnings Presentation
30 slides from Boliden Ab's earnings presentation, May 3, 2013
Slide 1: Interim report January – March 2013
Interim report January – March 2013 Lennart Evrell President & CEO Mikael Staffas CFO
Slide 2: Summary
Summary Revenues 9,249 (10,321) MSEK Msek Quarterly EBIT EBIT ex PIR* 751 (1,258) MSEK 2 500 Quarterly EBIT excl PIR* 6 000 ‒ EBIT 695 (1 540) MSEK Rolling Q EBIT excl PIR* Free Cash Flow -220 (888) MSEK Positive one-off, net 171 MSEK 5 000 2 000 Smelters strong – Mines weak Maintained c
Slide 3: The Market
The Market Boliden Group Q1 2013 3 2013-05-03
Slide 4: Industrial production
Industrial production Year on year % 25 20 15 10 5 0 -5 -10 -15 -20 Boliden calculation world IP and BRIC IP -25 2007 2008 2009 2010 2011 2012 2013 USA Euro Area China World BRIC Boliden Group Q1 2013 4 2013-05-03
Slide 5: Construction
Construction Year on year % 40 30 20 10 0 -10 -20 USA: construction spending value EU27: Index construction production -30 2007 2008 2009 2010 2011 2012 2013 USA EU27 China Boliden Group Q1 2013 5 2013-05-03
Slide 6: Automotive
Automotive Year on year % 120 100 80 60 40 20 0 -20 -40 -60 -80 2007 2008 2009 2010 2011 2012 2013 China Germany USA Boliden Group Q1 2013 6 2013-05-03
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 Q1-13 vs Millions 4 500 USD/t period 1,6 4 000 Q1 12 2,025 0% 1,4 3 500 Q2 12 1,928 +5% 1,2 3 000 Q3 12 1,885 +8% 1,0 2 500 Q4 12 1,947 +4% 0,8 Q1 13 2,033 - 2 000 0,6 1 500 0,4 1 0
Slide 8: Zinc TC and premiums
Zinc TC and premiums USD/t Treatment charge (TC) Metal premium USD/t metal concentrate 300 200 180 250 160 200 140 120 150 100 80 100 60 40 50 20 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 (W
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 Q1-13 vs Millions 10 000 USD/t period 1,4 9 000 Q1 12 8,310 -5% 1,2 8 000 Q2 11 7,869 +1% 7 000 1,0 Q3 12 7,706 +3% 6 000 Q4 12 7,909 0% 0,8 5 000 Q1 13 7,931 -
Slide 10: Copper TC and premiums
Copper TC and premiums USD/t Treatment charge (TC) Metal premium USD/t metal concentrate 120 120 100 100 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 grade spot TC US$/dmt Benchmark CIF Europe
Slide 11: Gold, Silver and Lead prices
Gold, Silver and Lead prices Precious metals, sharp reductions in April USD/t USD/oz 2 000 Gold 5 000 Lead 450 Thousands Inventory Price Price Q avg 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 2
Slide 12: Metals and concentrate markets
Metals and concentrate markets Balanced markets, zinc concentrate deficit Global metals and concentrate markets, 000 tonnes Q32012 Q42012 Q12013 Metals demand Copper 4,917 5,078 5,026 - Change % +0.9 +0.7 +4.1 Zinc 3,124 3,151 3,165 - Change % +0.8 +2.9 +4.5 Metal production Copper 5,029 5,180 5,029
Slide 13: Mines
Mines Boliden Group Q1 2013 13 2013-05-03
Slide 14: Mines – Summary
Mines – Summary EBIT 427 (842) MSEK Msek ‒ 545 MSEK in Q4 2012 1 400 Quarterly EBIT 5 000 Copper, gold production down Rolling Q EBIT 4 500 1 200 ‒ Aitik grades 4 000 Boliden area ore mix 1 000 3 500 ‒ Lower gold (Kankberg stable) Tara positive one-off 171 MSEK 800 3 000 ‒ Restated pensions
Slide 15: EBIT analysis Mines Q1 vs Q4
EBIT analysis Mines Q1 vs Q4 MSEK Q1 2013 Q4 2012 EBIT 427 545 Deviation -117 Specification of deviation Lower mine production Volume -42 Lower precious metals prices Prices and Terms (incl. hedges) -59 Lower hedge result Negative TC/RC impact Currency effects -54 USD/SEK decreased by 3% Costs -39 C
Slide 16: Mines – Production
Mines – Production Milled ore, Milled ore, Zinc Metal Copper Metal content, mt content, kt mt kt 10 24 100 1,5 20 8 80 1,2 16 6 60 0,9 12 4 0,6 40 8 2 0,3 20 4 0 0 0,0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2010 2011 2012 2013 Milled ore (
Slide 17: Smelters
Smelters Boliden Group Q1 2013 17 2013-05-03
Slide 18: Smelters – Summary
Smelters – Summary Msek EBIT ex PIR* 298 (360) MSEK 1 200 Quarterly EBIT 2 400 ‒ 202 MSEK in Q4 2012 Quarterly EBIT excl PIR* Rolling Q EBIT excl PIR* Capex 213 (270) MSEK 1 000 Kokkola silver recovery project 1 900 on plan 800 1 400 Major maintenance stops in Q2 600 900 400 400 200 0 -100 Q
Slide 19: Smelters – Production
Smelters – Production Total feed, Cathode Total feed, Metal kt Copper production, kt Zinc production, kt kt 250 140 400 100 350 120 80 200 300 100 250 60 150 80 200 40 100 60 150 100 40 20 50 50 20 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2
Slide 20: Financials
Financials Boliden Group Q1 2013 20 2013-05-03
Slide 21: Financial development – Summary
Financial development – Summary MSEK Q1 2013 Q1 2012 Q4 2012 Revenues 9,249 10,321 10,194 EBITDA 1,377 2,157 1,279 EBIT 695 1,540 676 EBIT ex PIR 751 1,258 839 Investments 1,019 1,005 1,474 Free cash flow -220 888 110 Earnings per share, SEK 1.86 4.08 3.15 Net debt / equity ratio 27 27 28 Boliden Gr
Slide 22: EBIT analysis Q1 vs Q4
EBIT analysis Q1 vs Q4 MSEK Q1 2013 Q4 2012 EBIT 695 676 Process inventory revaluation (PIR) -56 -163 EBIT excl. PIR 751 839 Deviation -87 Specification of deviation Lower mine production Volume -33 TC/RCs & premiums positive Prices and Terms (incl. hedges) 34 Higher price for base metals Currency e
Slide 23: EBIT analysis Q1 vs Q1
EBIT analysis Q1 vs Q1 MSEK Q1 2013 Q1 2012 EBIT 695 1,540 Process inventory revaluation (PIR) -56 282 EBIT excl. PIR 751 1,258 Deviation -508 Specification of deviation Volume -169 Lower mine production, grades Prices and Terms (incl. hedges) -216 All metals down except lead Currency effects -97 Co
Slide 24: Cash flow
Cash flow MSEK Q1 2013 Q1 2012 Q4 2012 Op profit before depreciation (EBITDA)* 1,377 2,157 1,279 PIR 56 -282 163 Change in inventories -103 749 -110 Change in payables -158 -128 273 Change in receivables -98 37 -50 Other 0 5 0 Changes in working capital* -303 380 275 Cash flow from investments -1,01
Slide 25: Capital structure
Capital structure SEK bn 31 Mar 31 Dec MSEK Net debt & Gearing % Unless otherwise stated 2013 2012 10 000 50 Total Asset 39.9 40.1 45 8 000 40 Capital employed 31.8 31.2 35 Shareholders' equity 23.0 22.4 6 000 30 25 Net debt 6.2 6.3 4 000 20 Gearing, % 27 28 15 2 000 10 Loan duration, years 3.3 3.5
Slide 26: Changes in accounting principles
Changes in accounting principles IFRIC 20 – deferred stripping IAS 19 – defined benefit pensions Calculated per push-back, no netting Corridor method discontinued Increased activated costs - lower Full pension liability on balance sheet operating costs excluding depreciation 2012 restated
Slide 27: Project update
Project update Aitik on plan to 36 Mt 2014 Kankberg (Boliden area) ‒ Leaching plant – ramp-up continues Silver recovery Kokkola on plan Garpenberg on plan ‒ Underground infrastructure, shafts, concentrator ‒ Start-up first half 2014, full production end 2015 Aitik45 feasibility study Lav
Slide 28: Summary
Summary Market Boliden Metals macro uncertain Aitik on low grades for two years China slower Mix change in Boliden area Metal prices down Tara efficiency program Strong Swedish krona Projects on plan Smelters generally good Maintenance stops: ‒ EBIT -325 MSEK ‒ Whereof approx. -3
Slide 29: 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 or sell any security or product, or to engage in or refrain from engaging in any transaction. This presentation has been prepare
Slide 30: Metals for modern life
Metals for modern life Boliden Group Q1 2013 30 2013-05-03