non-ferrous metallurgy: copper · jilin jien nickel industry co., ltd. nickel asia corp. chongyi...
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NON-FERROUS METALLURGY: COPPERFACTS AND FIGURES
2014
ABOUT THE RUSSIAN DIRECT INVESTMENT FUND
The Russian Direct Investment Fund is a $10 billion fund established to make equity investments primarily in the Russian economy.
RDIF was created in 2011 under the leadership of the President and Prime Minister of Russia to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia. RDIF together with its co-investors invested and committed over $7 billion for this purpose, of which RDIF alone invested $1.3 billion and over $6 billion came from the leading international co-investment partners.
RDIF also attracted over $15 billion of foreign capital into the Russian economy through long-term strategic partnerships.
RUSSIA IN THE GLOBAL COPPER INDUSTRY
I
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RUSSIA IN THE GLOBAL COPPER INDUSTRY
RUSSIA IS RANKED SIXTH GLOBALLY BY BOTH COPPER RESERVES AND MINING
Ranking of countries by copper reserves*2013, mln tonnes
Global copper miningLeading mining countries*, 2013, mln tonnes
1.1
19087 70
39 3830
2. Australia 3. Peru1. Chile 6. Russia4. USA 5. Mexico
4. USA1. Chile 2. China 3. Peru 6. Russia
5,700 1,2201,650 1,300 9309905. Australia
* Source: USGS data
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UMMC AND NORILSK NICKEL ARE AMONG THE LARGEST GLOBAL COPPER PRODUCERS
1.2
Key global players 2013, % of global production volumes
1. CodelcoChile
10
2. FreeportUSA
4. ВНРAustralia
10. UMMC OJSCRussia
11. MMC Norilsk Nickel OJSC
Russia
3. Glencore Xstrata
Switzerland
9 4 29 2
RUSSIAN COPPER INDUSTRY: CURRENT ISSUES AND TRENDS
II
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COPPER MINING IN RUSSIA ACCOUNTS FOR 5% OF THE GLOBAL OUTPUT
2.1
RUSSIAN COPPER INDUSTRY: CURRENT ISSUES AND TRENDS
Copper mining in Russia and globally2009-2013, thousand tonnes*
In Russia
* Source: USGS data
Globally
15,860
725
2009
14.5
15,938
703
2010
14.4
16,100
713
2011
14.4
16,900
883
2012
15.2
17,900
930
2013
15.2
— Russia’s share of the global production volumes, %1%
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2.2 REFINED COPPER IN RUSSIA IS PRODUCED BY UMMC, MMC NORILSK NICKEL AND RUSSIAN COPPER COMPANY
Copper production in Russia 2009-2013, thousand tonnes*
Production in Russia, % change from previous period
100.0
109.6102.8
97.6
2010 2011 2012 2013
853.5 885.5 924.4 887.4 886.42009
99.8
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DOMESTIC COPPER CONSUMPTION IN RUSSIA IS RECOVERING FROM MARKET VOLATILITY IN 2012
2.3
RUSSIAN COPPER INDUSTRY: CURRENT ISSUES AND TRENDS
Domestic copper consumption 2010-2013, thousand tonnes
Source: Ministry of Industry of the Russian Federation
Copper consumption in Russia, % change from previous period
106.2
80.4
109.4
100.02010
2011
2012
2013 267.0
258.5
312.3
251.4
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Russian exports of copper 2013, thousand tonnes
2.4 IN 2013, RUSSIA EXPORTED 223.3 THOUSAND TONNES OF COPPER
7.7
6
8.6
0.5
Uzbekistan
Bulgaria
refined copperores and concentrates
4.60,0285
Kazakhstan
China
BelarusGermanyNetherlands
126
Belgium
0.5
1
GEOGRAPHY AND CORPORATE STRUCTURE
III
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GEOGR APHY AND CORPOR ATE STRUCTURE
< 5 5-50 50-400 > 400
KEY COPPER DEPOSITS IN RUSSIA3.1
Reserves, mln tonnes
Chukotka AO
Orenburg Region
Republic of Bashkortostan
Murmansk Region
1
4 6
73
5
10
9
2
Krasnoyarsk Krai
Sverdlovsk Region
Chelyabinsk Region
Zabaykalsky Krai
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3.2 RUSSIAN COPPER INDUSTRY: CORPORATE STRUCTURE
Oktyaberskoe (Krasnoyarsk Krai) Talnakhskoe (Krasnoyarsk Krai) Norilsk I (Krasnoyarsk Krai)
Peschanka (Chukotka AO)
Bystrinskoe (Zabaykalsky Krai)
Mikheyevskoe
Tominskoe (Chelyabinsk Region)
Volkovskoe (Sverdlovsk Region)
Zhdanovskoe (Murmansk Region)
Gayskoe (Orenburg Region)
Gorevskoe (Krasnoyarsk Krai)
Yubileynoe (Republic of Bashkortostan) Podolskoe (Republic of Bashkortostan)
MMC Norilsk Nickel OJSC GDK Baimskaya LLC
GRK Bystrinskoe LLC
Mikheyevsky GOK CJSC
Tominsky GOK CJSC
Svyatogor OJSC
Kolskaya MMC OJSC
Gaysky GOK OJSC
Bashkir Copper LLC
Baikal Mining Company LLC
1 6
7
8
9
10
2
3
4
5
Mines of the Holding company Mines of the Holding company
Mines of the Holding company
Mines of the Holding company
Mines of the Holding company
Mines of the Holding company
Mines of the Holding company
Mines of the Holding company
Mines of the Holding company
Mines of the Holding company
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GEOGR APHY AND CORPOR ATE STRUCTURE
RUSSIAN COPPER INDUSTRY: CORPORATE STRUCTURE3.3
Polar Division (Norilsky Kombinat OJSC) Kolskaya GMK OJSC Kombinat Severonikel OJSC Mining and Metallurgical Kombinat Pechenganikel OJSC
Gaisky GOK Sredneuralsky Copper Smelter Metallurgical plant N/A A.K. Serov Bogoslovskoe mine Svyatogor Buribaevsky GOK Urupskiy GOK Sibir-Polimetally Bashkirskaya Med Uralelectromed Safyanovskaya Med
Talnakhskaya Norilskaya
Khaibullinskaya Rubtsovskaya Zarechenskaya Urupskaya Buribaevskaya Krasnouralskaya Gayskaya
Copper Metallurgical Plant Nickel Metallurgical Plant Nadezhdinsky Metallurgical Plant Severonikel Kombinat
Uralelectromed
MMC Norilsk Nickel
OJSC UMMC
1
2
Companies of the holding
Companies of the holding
Concentrating plants
Concentrating plants
Metallurgical processing enterprises
Metallurgical processing enterprises
MMC Norilsk Nickel
OJSC UMMC
1
2
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Ormet Aleksandrinskaya mining company Verkhne-Uralskaya mine Mauksky mine Mikheevsky GOK Tominsky GOK
Uralhydromed Karabashmed Kyshtymsky copper plant Novgorod metallurgical plant
Vostok-olovo Solnechny GOK
Sorsky GOK Sorsky ferromolibdenum plant
Novo-Shirokinsky mine
Novo-Shirokinsky mine
CJSC Russkaya Mednaya Company
NOK
HC Soyuzmetalresurs
Highland Gold Minig LTD.
Glencore International AG
3
4
5
6
7
Companies of the holding
Companies of the holding
Companies of the holding
Companies of the holding
Companies of the holding
Aleksandrinskaya
Concentrating plants
CJSC Russkaya Mednaya Company
NOK
HC Soyuzmetalresurs
Highland Gold Minig LTD.
Glencore International AG
3
4
5
6
7
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UMMC IS THE LARGEST PRODUCER OF RAW COPPER AND COPPER PRODUCTS
GEOGR APHY AND CORPOR ATE STRUCTURE
Copper production by key players 2011-2013, %
UMMC Revenues 2011-2013, thousand RUB
UM
MC
OJS
C
3.4
2011 2011
2012 2012
2013 2013
41.6
43.8
43.4
39.8 8,59218.6
39.8 8,59216.4
41.1 8,58015.5
UMMC OJSC MMC Norilsk Nickel Russian Copper Company
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UMMC: KEY PERFORMANCE INDICATORS
UMMC production indicators2011-2013
Copper cathodes (pig copper), thousand tonnes
Copper powder, thousand tonnes
Rolled non-ferrous metals, thousand tonnes
Copper wire rod, thousand km
Cable products, thousand km
382.5
301.8
96.7
6.3
60.3
389.9
282.3
239.6
6.3
59.0
380.7
288.2
261.2
6.7
56.8
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GEOGR APHY AND CORPOR ATE STRUCTUREM
MC
NO
RIL
SK N
ICK
EL
Russia
USA
UK
Canada
Peru
South Africa
China
Philippines
China
Australia
28 642.18
23 369.05
10 988.26
9 126.63
8 523.86
4 582.44
3 721.92
2 472.43
1 362.36
849.16
3.5
Norilsk Nickel
Southern Copper Corp.
Antofagasta Plc
First Quantum Minerals Ltd.
Sociedad Minera Cerro Verde SAA
Impala Platinum Holdings Ltd
Jilin Jien Nickel Industry Co., Ltd.
Nickel Asia Corp.
Chongyi Zhangyuan Tungsten Co., Ltd
Western Areas Ltd
11 121.42
6 669.27
6 325.39
3 446.50
1 804.65
2 728.63
391.16
245.54
322.42
301.93
Market capitalization, USD mln
Sales, USD mln
CompanyCountry
NORILSK NICKEL: NO. 1 IN GLOBAL INDUSTRY TOP – 102013, by sales volume and market capitalization
1
2
3
4
5
6
7
8
9
10
Sources: Bloomberg, Reuters
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NORILSK NICKEL - MARKET LEADER 2013 , world metals production share
Coppper production,2011-2013, thousand tonnes
3782011 2012 2013
364 371№1global nickel producer
№1global palladium producer
№4global platinumproducer
№11global copperproducer
14% of global nickel
production
41% of global palladium
production
11% of global platinum
production
2% of global copper
production
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GEOGR APHY AND CORPOR ATE STRUCTURE
NORILSK NICKEL MARKET CAPITALIZATION
Norilsk Nickel
Rio Tinto
BHP Billiton
VALE
Capitalization growthNov 2013 - Nov 2014, %
Sources: Bloomberg, Reuters, Company data
+20%
-9.3%
-19.3%
-41%
28.6Nov. 14
+20%
CapitalizationUSD bln
23.8Nov. 13
MM
C N
OR
ILSK
NIC
KEL
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4.25.8
EBITDA USD bln
4251
4137
5.8 4.2 7.2 7.2 4.9 4.2 2008 2009 2010 2011 2012 2013
4956
EBITDA margin, %
RevenuesUSD mln
Earnings per shareUSD
2013
2012
2011
16.3
19.2
23.2
2013
2012
2011
11.5
12.4
14.5
NORILSK NICKEL: SUSTAINABLE HIGH MARGIN
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GEOGR APHY AND CORPOR ATE STRUCTURE
NORILSK NICKEL: KEY FINANCIAL INDICATORS 2011-2013
Net Debt to EBITDA2013
Free Cash Flow2013, as % of Revenue
Norilsk Nickel
BHP Billiton
VALE
Rio Tinto
Anglo American
21
11
9
8
4
BHP Billiton
Rio Tinto
Norilsk Nickel
VALE
Anglo American
0.8x
0.9x
1.1x
1.1x
1.2x
MM
C N
OR
ILSK
NIC
KEL
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C
AGR
30%
Europe 52
NORILSK NICKEL: DIVERSIFIED GLOBAL PLAYER WITH A FOCUS ON CHINA
Norilsk Nickel exports to China2005-2013, nickel, thousand tonnes
Norilsk Nickel Sales structure2013, %
North America 9
Asia 29
Russia 10
2005 2013
70
8.75
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NOTES
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NOTES
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INVESTIN RUSSIA
RDIF PRESENTS
PLATFORMINVEST IN RUSSIA
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