Slide 1: Interim report January – June 2012
Interim report January – June 2012 Lennart Evrell President & CEO Mikael Staffas CFO
Slide 2: Q2 Summary
Q2 Summary Revenues 10,363 (9,896) MSEK Msek EBIT excl. PIR* 931 (1,120) MSEK 2 500 6 000 Quarterly EBIT ‒ Operating profit MSEK 769 (1,134) Quarterly EBIT excl PIR* Rolling Q EBIT excl PIR* 5 000 Free Cash Flow 79 (-790) MSEK 2 000 High production 4 000 ‒ Aitik, Garpenberg 1 500 Rönnskär
Slide 3: The Market
The Market Boliden Group 3 2011-07-19
Slide 4: Industrial production
Industrial production Change from the previous year % 25 25 20 20 15 15 10 10 5 5 0 0 -5 -5 -10 -15 -10 -20 -15 -25 -20 USA Euro Area China World Brazil Russia India China BRIC Total Lower growth in China Unclear development in USA Recession in parts of Europe Source: Boliden calculation world
Slide 5: Construction
Construction Change from the previous year % Low activity in mature 40 economies 30 Good growth in China, but lower pace 20 10 0 -10 -20 -30 USA EU27 China USA: construction spending value EU27: Index construction production China: fixed asset investments - cumulative value Boliden Group 5 2011-
Slide 6: Car production
Car production Change from the previous year % 70 High production growth in Q1 2012 60 USA, China and Japan Q2 2012 European production down 50 40 30 20 10 0 -10 -20 China Germany S Korea Japan USA Source: Reuters Datastream, CRU, Wards Automotive Boliden Group 6 2011-07-19
Slide 7: Zinc price and inventories
Zinc price and inventories USD/t LME Inventory Shanghai Inventory Price Price Q avg Tonnes 5 000 1 400 000 Zinc price (LME average) Q2-12 vs 4 500 1 200 000 USD/t period 4 000 Q2 11 2,250 -14% 3 500 1 000 000 Q3 11 2,224 -13% 3 000 Q4 11 1,897 +2% 800 000 2 500 Q1 12 2,025 -5% 600 000 2 000 Q2 12 1,
Slide 8: Copper price and inventories
Copper price and inventories USD/t LME Inventory Shanghai Inventory COMEX Inventory Price Price Q avg Tonnes 11 000 1 600 000 Copper price (LME average) 10 000 Q2-12 vs 1 400 000 USD/t period 9 000 1 200 000 Q2 11 9,137 -14% 8 000 Q3 11 8,982 -12% 7 000 1 000 000 Q4 11 7,489 +5% 6 000 800 000 Q1 12
Slide 9: Smelter treatment charges
Smelter treatment charges Zinc Copper US$/t concentrate US$/t concentrate 350 120 300 100 250 80 200 60 150 40 100 20 50 0 0 Realised TC (including price participation) Standard grade TC Cif spot mine/trader USD/t Spot TC - outturn TC Annual contract benchmark Mine supply below expectations Incr
Slide 10: Metal premiums
Metal premiums Zinc Copper US$/t metal US$/t metal 200 140 120 160 100 120 80 80 60 40 40 20 0 0 Europe ex-works US Midwest Delivered Spot Copper premium CIF W. Europe Far East (Western) Benchmark CIF Europe Stable Zinc premium Slightly lower Copper premium in Europe Source: © CRU (www.crugroup.
Slide 11: Gold, Silver and Lead prices
Gold, Silver and Lead prices USD/oz Gold USD/oz Silver 2 000 60 1 800 50 1 600 1 400 40 1 200 1 000 30 800 600 20 400 10 200 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 USD/t Lead Tonnes 5 000 450 000 Inventory Price Price Q avg 4 500 400 0
Slide 12: Mines
Mines Boliden Group 12 2011-07-19
Slide 13: Mines – Summary Q2
Mines – Summary Q2 EBIT 726 (1,064) MSEK Msek ‒ 822 MSEK in Q1 2012 1 400 5 000 Quarterly EBIT High production 4 500 Rolling 4Q EBIT High grades in Garpenberg 1 200 4 000 High costs ‒ External services 1 000 3 500 ‒ Personnel 3 000 CAPEX 753 (599) MSEK 800 ‒ 645 MSEK in Q1 2012 2 500 600 2
Slide 14: Mines – Production
Mines – Production Metal Metal Milled ore, Copper content, Milled ore, content, ktonnes tonnes ktonnes Zinc tonnes 10 000 24 000 100 000 1 500 20 000 8 000 80 000 1 200 16 000 6 000 60 000 900 12 000 4 000 600 40 000 8 000 2 000 300 20 000 4 000 0 0 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q
Slide 15: Smelters
Smelters Boliden Group 15 2011-07-19
Slide 16: Smelters – Summary Q2
Smelters – Summary Q2 EBIT excl. PIR* 240 (143) Msek MSEK 1 400 Quarterly EBIT ‒ 349 MSEK in Q1 2012 Quarterly EBIT excl PIR* Rönnskär e-recycling at full 1 200 production Rolling 4Q EBIT excl PIR* Maintenance stops 1 000 ‒ (EBIT effect 130 MSEK) CAPEX 274 (412) MSEK 800 ‒ 270 MSEK in Q1 201
Slide 17: Smelters – Production
Smelters – Production Cathode Metal Total feed, Copper production, Total feed, Zinc production, tonnes tonnes tonnes tonnes 400 000 100 000 250 000 140 000 350 000 120 000 80 000 200 000 300 000 100 000 250 000 60 000 150 000 80 000 200 000 40 000 100 000 60 000 150 000 100 000 40 000 20 000 50 000
Slide 18: Financials
Financials Boliden Group 18 2011-07-19
Slide 19: Financial development - Summary
Financial development - Summary MSEK Q2 2012 Q2 2011 Q1 2012 Revenues 10,363 9,896 10,321 Operating profit before depr. 1,315 1,616 2,041 Operating profit 769 1,134 1,499 Operating profit ex PIR 931 1,120 1,217 Free cashflow 79 -790 888 Capital expenditures 1,029 1,020 917 Earnings per share, SEK 1.
Slide 20: Group EBIT Q2 2012 vs Q1 2012
Group EBIT Q2 2012 vs Q1 2012 MSEK Q2 2012 Q1 2012 EBIT 769 1,499 Process inventory revaluation (PIR) -162 282 EBIT excl. PIR 931 1,217 Deviation -287 Higher production in both Mines, +111 MSEK, and Smelters, +57 MSEK Specification of deviation Volume 168 Weaker SEK offset some USD price Prices and
Slide 21: Group EBIT Q2 2012 vs Q2 2011
Group EBIT Q2 2012 vs Q2 2011 MSEK Q2 2012 Q2 2011 EBIT 769 1,134 Process inventory revaluation (PIR) -162 14 EBIT excl. PIR 931 1,120 Deviation -189 Increased production in Mines and Smelters Specification of deviation Volume 167 Weaker SEK offset some USD price Prices and Terms -579 decline. Net -
Slide 22: Cash flow
Cash flow MSEK Q2 2012 Q2 2011 Q1 2012 EBITDA* (Operating profit before depr.) 1,315 1,616 2,041 PIR 162 -14 -282 Change in inventories -465 -961 749 Change in payables 248 -84 35 Change in receivables 205 -19 -127 Change in other working capital -5 3 5 Change in working capital 145 -1,075 379 Inves
Slide 23: Capital structure
Capital structure SEK billion 30 Jun 31 Mar MSEK Net debt & Gearing % 2012 2012 10 000 60 Total assets 37.6 37.4 30.5 30.1 50 Capital employed 8 000 Shareholders equity* 21.4 21.9 40 6 000 Net debt 6.1 5.2 30 Net debt /equity ratio, % 29 24 4 000 20 Equity/assets ratio, % 57 58 2 000 10 Loan duratio
Slide 24: Project update
Project update Aitik Rönnskär E-recycling ‒ 38 mt pace in Q2 ‒ Formal inauguration on June 1 Kankberg on plan ‒ Total e-scrap in Rönnskär on plan ‒ Mine production started ‒ 120 000 tonnes annual pace ‒ Tellurium leaching to start end of year Silver recovery Kokkola Garpenberg on plan ‒ Ea
Slide 25: Crushing station 1087
Crushing station 1087 Boliden Group 25 2011-07-19
Slide 26: Foundation for headframe
Foundation for headframe Boliden Group 26 2011-07-19
Slide 27: Moulding mill foundation
Moulding mill foundation Boliden Group 27 2011-07-19
Slide 28: Mounting Flotation Hall roof
Mounting Flotation Hall roof Boliden Group 28 2011-07-19
Slide 29: Summary
Summary Q2 Going forward Prices lower Boliden area mix changes Good production ‒ Kankberg mine started – limited effect in 2012 Aitik on record volumes ‒ Copper gradually down (Maurliden E-recycling at full capacity East) towards year-end ‒ Zinc gradually higher (Maurliden) Garpenberg hi
Slide 30: 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 31: Metals for modern life
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