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Q1 2015 Interim Report
Lennart Evrell
President & CEO
Mikael Staffas
CFO
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1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2010 2011 2012 2013 2014 2015
R4Q,MSEK
MSEK
Quarterly EBIT excl PIR* Rolling Q EBIT, RHS Rolling Q EBIT excl PIR*, RHS
Summary Q1 2015
2015-05-05 Boliden Group Q1 2015
* PIR=Process Inventory Revaluation
Revenues 10 407 (8 550) MSEK
EBIT ex PIR* 1 102 (385) MSEK
‒ EBIT 1 205 (265) MSEK
Free Cash Flow 19 (-432) MSEK
Favorable positioned
‒ Stronger USD, improved smelter
terms
‒ Expansion of Garpenberg well
timed
Lower metal prices
Lower volume vs Q4, strong YoY
Cost control
Increased working capital
Appeal regarding diesel tax at
Aitik rejected
2
Lower metal demand growth
Macro
Low global industrial growth continuous
‒ Slowdown in China
Metals markets
Softer metal demand growth in China
Zn - deficit in metal and concentrate
Cu - slight surplus in metal and
concentrate
Exchange rates
Continued USD strength
2015-05-05 Boliden Group Q1 2015 3
0
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75
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125
150
175
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225
250
2010 2011 2012 2013 2014 2015
BOLIDEN PRICE INDEX, SEK(Index 100 per 2009-01-01)
Metal price index, SEK
2015-05-05 Boliden Group Q1 2015 4
Note: Graph shows period 1 January 2009 until 16 April 2015.
2010 2011 2012 2013 2014 2015
0,00
0,10
0,20
0,30
0,40
0,50
0,60
0,70
0,80
0,90
1,00
0
1
2
3
4
5
6
7
8
9
10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
EUR/USDUSD/SEK
USD/SEK EUR/USD
Currencies
2015-05-05 Boliden Group Q1 2015 5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Note: Graph shows period 1 January 2005 until 17 April 2015.
1,00
1,11
1,25
1,43
1,67
2,00
2,50
3,33
Zinc – price down vs Q4 2014
2015-05-05 Boliden Group Q1 2015
Average price in Q1 vs period
Q4-14 Q3-14 Q2-14 Q1-14
-7% -10% 0% +2%
Q2 Q1 Q3 Q4
6
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Price Price Q avg
USD/tQ1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Copper – significant price drop
2015-05-05 Boliden Group Q1 2015 7
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
11 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
USD/t
Price Price Q avg
Average price in Q1 vs period
Q4-14 Q3-14 Q2-14 Q1-14
-12% -17% -14% -17%
Q2 Q1 Q3 Q4 Q1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gold and silver prices stable while lead down
vs Q4 2014
2015-05-05 Boliden Group Q1 2015
Lead Gold
Silver
Average price in Q1 vs period
Q4-14 Q3-14 Q2-14 Q1-14
Gold +2% -5% -5% -6%
Silver +1% -15% -15% -18%
Lead -10% -17% -14% -14%
8
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
USD/troy oz.
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
USD/troy oz.
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1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
USD/t
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mines
2015-05-05 Boliden Group Q1 2015 9
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1 200
1 800
2 400
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1 200
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1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2010 2011 2012 2013 2014 2015
R4Q, MSEK
MSEK
Quarterly EBIT Rolling Q EBIT
Mines
EBIT 482 (147) MSEK
‒ 461 MSEK in Q4 2014
Capex 549 (731) MSEK
Stronger USD
Lower metal prices
Garpenberg ramp-up on
plan
Good development in
Boliden Area
Lower production vs Q4
‒ Aitik winter impact and
maintenance
‒ Garpenberg stock pile
Actions in Tara
2015-05-05 Boliden Group Q1 2015 10
0
4
8
12
16
20
24
0
2
4
6
8
10
12
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
Metal content, kt
Milled ore, mt Copper
Milled ore Metal content
0
20
40
60
80
100
120
0,0
0,3
0,6
0,9
1,2
1,5
1,8
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
Metal content, kt
Milled ore, mt
Zinc
Milled ore Metal content
Garpenberg – lower production in plan,
higher recovery and grade
Tara – lower grade, production
disturbances
Boliden Area – more Zn
Mines – Production
Aitik – winter impact and maintenance
Boliden Area – less Cu
Kylylahti – higher grades
2015-05-05 Boliden Group Q1 2015 11
Smelters
2015-05-05 Boliden Group Q1 2015 12
-300
0
300
600
900
1 200
1 500
1 800
2 100
2 400
-100
0
100
200
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400
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600
700
800
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2010 2011 2012 2013 2014 2015
R4Q, MSEK
MSEK
Quarterly EBIT excl PIR* Rolling Q EBIT, RHS Rolling Q EBIT excl PIR*, RHS
Smelters
2015-05-05 Boliden Group Q1 2015
* PIR=Process Inventory Revaluation
13
EBIT ex PIR* 681 (199) MSEK
‒ 681MSEK in Q4 2014
Capex 156 (135) MSEK
Stronger USD
Improved smelter terms
Lower metal prices
Lower feed and costs vs Q4
0
30
60
90
120
150
0
50
100
150
200
250
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
Metal production,
kt
Total feed, kt
Zinc
Feed, total Metal production
0
15
30
45
60
75
90
105
120
0
50
100
150
200
250
300
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400
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015
Metalproduction,
kt
Total feed, kt
Copper
Feed, total Metal production
Smelters – Production
Rönnskär – changed raw material mix
impacts process stability
Harjavalta – stable production
Odda – high and stable production
Kokkola – process disturbances
2015-05-05 Boliden Group Q1 2015 14
Financials
2015-05-05 Boliden Group Q1 2015 15
MSEK Q1 2015 Q1 2014 Q4 2014
Revenues 10,407 8,550 9,614
EBITDA 2,057 989 2,044
EBIT 1,205 265 1,158
EBIT ex PIR 1,102 385 1,134
Investments 706 868 1,727
Free cash flow 19 -432 366
Earnings per share, SEK 3.27 0.56 3.06
Net debt / equity ratio 33 40 35
Financial development
2015-05-05 Boliden Group Q1 2015 16
EBIT analysis Q1 2015 vs. Q4 2015 Improved terms and lower volume
MSEK Q1 2015 Q4 2014
EBIT 1,205 1,158
Process inventory revaluation (PIR) 103 24
EBIT excl. PIR 1,102 1,134
Deviation -32
Specification of deviation
Volume -482
Prices and Terms (incl. hedges) 266
Whereof currency effects 481
Costs 130
Depreciation 37
Other 18
Deviation -32
2015-05-05 Boliden Group Q1 2015
Stronger USD
Improved smelter terms
Weaker metal prices
Aitik – winter impact, maintenance
Garpenberg stock pile
Strong smelter production Q4
Build-up of inventory
Lower production
Lower energy prices
17
Internal profit elimination redistributed to Volume and Prices and Terms.
EBIT analysis Q1 2015 vs. Q1 2014 Higher production and stronger USD
MSEK Q1 2015 Q1 2014
EBIT 1,205 265
Process inventory revaluation (PIR) 103 -120
EBIT excl. PIR 1,102 385
Deviation 717
Specification of deviation
Volume 217
Prices and Terms 827
Whereof currency effects 956
Costs -219
Depreciation -117
Other 9
Deviation 717
2015-05-05 Boliden Group Q1 2015
Stronger USD
Improved smelter terms
Lower metal prices
Ramp-up Garpenberg
Kylylahti
Garpenberg start
Aitik push back
Kylylahti
18
Ramp-up Garpenberg
Kylylahti
Internal profit elimination redistributed to Volume and Prices and Terms.
Cash flow quarterly
2015-05-05 Boliden Group Q1 2015 19
MSEK Q1 2015 Q1 2014 Q4 2014
EBITDA excluding PIR 1,954 1,109 2,020
Changes in working capital -1,017 -421 96
Inventories -981 -190 -433
Payables 23 -109 572
Receivables -59 -122 -44
Cash flow from investments -705 -874 -1,716
Financial items -59 -55 -67
Tax paid -50 -156 3
Other -103 -34 31
Free cash flow 19 -432 366
0
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2 000
4 000
6 000
8 000
10 000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2011 2012 2013 2014 2015
%MSEK
Net debt Gearing
Capital structure
2015-05-05 20
SEK bn Unless otherwise stated
31 Mar
2015
31 Dec
2014
Total Assets 44.5 43.9
Capital employed 35.8 35.1
Shareholders' equity 24.7 24.0
Net debt 8.2 8.3
Gearing, % 33 35
Loan duration, years 3.1 3.4
Average interest rate, % 1.6 1.7
Interest duration, years 0.6 0.8
Net payment capacity 5.5 5.8
Boliden Group Q1 2015
Capex projection 2015 and 2016
Slightly above 4 BSEK in 2015
Slightly below 4 BSEK in 2016
2015-05-05 Boliden Group Q1 2015 21
Updated external process inventories
2015-05-05 Boliden Group Q1 2015 22
Metal New Former
Copper , tonnes 28 500 29 000
Zinc, tonnes 15 000 17 000
Lead , tonnes 0 300
Gold, kg 2 200 2 200
Silver, kg 60 000 66 200
Palladium, kg 500 500
Total process inventory unchanged
More internal process inventory and less external
‒ Kylyahti and Garpenberg expansion
Redistribution of process inventory gives EBIT impact -40 MSEK in Q1
Project update
Garpenberg
‒ Mine to ramp-up in 2015
Silver recovery Kokkola
‒ Ramp-up behind schedule
Aitik45
‒ Production ramp-up on plan
‒ Permit appeal process ongoing
Odda
‒ Decision to increase to 200 (170) Kton/year
Laver
‒ Application for exploitation concession
2015-05-05 Boliden Group Q1 2015 23
Summary Q1 2015
Well positioned in the metal market
‒ Strong smelter development
‒ Garpenberg well timed
Stronger USD and smelter terms
Lower metal prices
Lower volume vs strong Q4
2015-05-05 Boliden Group Q1 2015 24
Going forward
Aitik
‒ Copper grade 0.21% in 2015-2016
‒ 40 Mton ore 2015 plan, 45 Mton ore 2017 plan
Garpenberg – 2.5 Mton pace end 2015
Tara – normal production levels in latter part of 2015
Kokkola – working with process stability
Rönnskär – action plan under implementation
Nickel business on own books H2 2015
Working capital
‒ High levels Q1
‒ Nickel business build-up Q2-Q3
Planned maintenance EBIT impact
‒ Q2 -180 MSEK, Q3 -80 MSEK, Q4 -20 MSEK
‒ Mainly Harjavalta Q2
2015-05-05 Boliden Group Q1 2015 25
Disclaimer
This presentation has been prepared by Boliden for information purposes only and as per the indicated date. Boliden does not undertake any obligation to correct or update the information or any statements made therein. Certain statements in this presentation are forward-looking and are subject to risks and uncertainties.
Nothing contained herein shall constitute any representation or warranty as to accuracy or completeness. Boliden has not made any independent verification of the information obtained from third parties.
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.
Boliden does not accept any liability whatsoever arising from or in connection with the use of this information.
Save as by prior approval in writing, this material may not be copied, transmitted or disclosed, whether in print, electronic or any other format. All rights to the material are reserved.
2015-05-05 Boliden Group Q1 2015 26
Appendix
2015-05-05 Boliden Group Q1 2015 28
Market balance
2015-05-05 Boliden Group Q1 2015
Source: CRU March/April2015, Boliden calculations
29
Zinc – global market Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115
Metals demand 4,2% 3,9% 4,4% 4,4% 3,5% 2,3% 0,8% 1,4%
Smelter production 4,9% 8,4% 4,7% 1,2% 2,3% 3,8% 6,3% 2,7%
Metal balance, kt -62 -64 39 -173 -101 -17 224 -135
Mine production 3,5% 2,0% -0,2% -3,6% -4,2% 0,1% 8,4% 9,2%
Concentrate balance, kt 221 117 -11 -275 62 0 -8 -351
Copper – global market Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115
Metals demand 4,8% 6,5% 9,1% 2,8% 5,3% 4,5% 1,8% 0,5%
Smelter production 4,3% 3,0% 4,2% 1,6% 5,3% 6,1% 4,9% 3,1%
Metal balance, kt -136 -37 -33 110 -143 44 136 241
Mine production (concentrates) 7,5% 11,2% 10,6% 6,2% 4,5% -1,2% -1,9% 4,9%
Concentrate balance, kt 137 220 229 -1 20 -30 -28 49
Zn - deficit in metal and concentrate
Cu - slight surplus in metal and concentrate
Strong Zn mine growth in Q1 15 compared to low production Q1 14
Zn smelters utilisation rates still below normal
Economic development
2015-05-05
Industrial production, year on year %
Boliden Group Q1 2015
Source: Reuters Datastream, Boliden calculations for world data
30
-5
0
5
10
15
20
2011 2012 2013 2014 2015
EU28 USA China World
-15
-10
-5
0
5
10
15
20
25
30
2011 2012 2013 2014 2015
EU USA China
Construction Largest segment for Cu and Zn
2015-05-05
Activity, year on year %
Source: Reuters Datastream
Boliden Group Q1 2015
China: year on year based on cumulative investments at each point
31
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
2011 2012 2013 2014 2015
Europe North America China World
2015-05-05
Source: LMC Automotive
Boliden Group Q1 2015
Automotive
32
Production of light vehicles, year on year, quarterly data
Zinc TC and premiums
New benchmark contract 245 (223) USD/t conc
Realized contract TC up slightly from Q4
Concentrate deficit, stable spot TC
Stable European spot premia
2015-05-05 Boliden Group Q1 2015
Source: CRU March/April 2015
33
0
50
100
150
200
250
300
2012 2013 2014 2015
US$/t concentrate
Treatment charges
Realized TC, European contract
Spot TC, China imports
0
50
100
150
200
250
2012 2013 2014 2015
US$/t metal Metal premia
Delivered Premia US Midwest
Ex-Works Premia Europe
Premia Far East - Western
Copper TC and premiums
Concentrate market in balance/tightness
Spot TC down
Low activity in European metals market
Spot premia remained low
2015-05-05 Boliden Group Q1 2015
Source: CRU March/April 2015
34
0
20
40
60
80
100
120
140
2012 2013 2014 2015
US$/t concentrate
Treatment charges
Contract TC - annual and mid-year benchmark
Standard grade spot TC
Contract benchmark according to market sources including CRU
0
20
40
60
80
100
120
140
160
2012 2013 2014 2015
US$/t metal Metal premia
CIF Average European premia CIF European benchmark premia
Contract benchmark according to market sources including CRU
