NON-FERROUS METALLURGY: NICKEL FACTS AND FIGURES 2014
NON-FERROUS METALLURGY: NICKELFACTS 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 NICKEL INDUSTRYI
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RUSSIA IN THE GLOBAL NICKEL INDUSTRY
1.1
* Source: USGS data
RUSSIA IS RANKED FOURTH IN THE WORLD BY NICKEL RESERVES AND THIRD BY NICKEL PRODUCTION
Nickel reserves by country 2013, mln tonnes*
Global nickel mining by country,2013, thousand tonnes*
1. Philippines 2. Indonesia 3. Russia 4. Australia 5. Canada 6. Brazil
440 440 250 240 225 149
3.9
2. New Caledonia
3. Brazil 4. Russia 5. Cuba 6. Dominican Republic
1. Australia
1812
8.46.1 5.5
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1. Norilsk NickelRussia
2. ValeBrazil
3. JinchuanChina
4. Glencore Xstrata
Switzerland
5. BHPAustralia
6. SMMJapan
14 12 8 7 6 3
1.2 NORILSK NICKEL IS THE INDUSTRY LEADER BOTH IN RUSSIA AND GLOBALLY2013, % of global nickel production
RUSSIAN NICKEL INDUSTRY: CURRENT ISSUES AND TRENDS
II
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RUSSIAN NICKEL INDUSTRY: CURRENT ISSUES AND TRENDS
RUSSIA ACCOUNTS FOR OVER 10% OF GLOBAL NICKEL EXTRACTION
2.1
Nickel extraction in Russia and globally2009-2013, thousand tonnes*
1200012800
1353113450
262 269 267 255 250
18.7 16.9 13.7 11.4 10
2010 2012 20132009 2011
1,400 1,590 1,940 2,220 2,490
In Russia Globally Russia’s share of global extraction volumes, %
* Source: USGS data
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2.2 THE FOREIGN MARKET FOR NICKEL IN 2013 CONTINUED TO BE UNFAVORABLE
242
Primary nickel production in Russia 2009-2013, thousand tonnes
Production in Russia, % change from the previous period
100.0
102.7 101.4
95.895.1
2010 2012 20132009 2011
255 262 265 254
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RUSSIAN NICKEL INDUSTRY: CURRENT ISSUES AND TRENDS
RUSSIA IS THE LEADING NICKEL SUPPLIER ON THE GLOBAL MARKET
2.3
Nickel ore and concentrates, thousand tonnes Nickels and nickel products, thousand tonnes
Belgium
Hungary
Belarus
China
Kazakhstan
Ukraine
Italy
Netherlands
235.30.1
0.113.1
0.1
0.3
0.2
0.81.2
UK
Russian nickel export volumes 2013, thousand tonnes, by key importing countries
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253.2 244.7 240.4 195.5 219.1 238.319.6 3.5 5.2 4.4 3.7 3.6
253,2 - Russian export, thousand tonnes 253,2 - Russian export, USD bln 19.6
2.4 RUSSIAN NICKEL EXPORT VOLUMES ARE GRADUALLY RETURNING TO PRE-CRISIS LEVELS
Russian nickel exports2008-2013
2010 2012 201320092008 2011
GEOGRAPHY AND CORPORATE STRUCTURE III
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GEOGRAPHY AND CORPORATE STRUCTURE
MAIN NICKEL RESERVE FIELDS IN RUSSIA
Krasnoyarsk Krai
Murmansk Region
Orenburg Region
Rep. of Karelia
Kamchatsky Krai
Amur OblastRep. of Tyva
Sverdlovskaya Oblast
Chelyabinskaya Oblast
< 1 1-5 >5Reserves, %
4
11
2
3
3.1
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Polar Division (Noril-sky Kombinat OJSC)
Kolskaya GMK OJSC
Kombinat Severoni-kel OJSC
Mining and Metal-lurgical
Kombinat Pechen-ganikel OJSC
MMC Norilsk Nickel
Companiesof the Holding company
Mines of the Holding company
Octyabrskoye (Kras-noyarsk Krai)
Talnakhskoye (Kras-noyarsk Krai)
Norilsk-1 (Krasnoyarsk Krai)
Zhdanovskoye (Mur-mansk Region)
Zapolyarnoe (Kras-noyarsk Krai)
Kotselvaara, Semiletka (Krasnoyarsk Krai)
Copper Metallurgical Plant
Nickel Metallurgical Plant
Nadezhdinsky Metal-lurgical Plant
Severonikel Kombinat
Metallurgicalprocessing enterprises
1
3.2 RUSSIAN NICKEL INDUSTRY: CORPORATE STRUCTURE
Burkutal (Orenburg Region)
Burkutal Nickel Reserve Field LLC
Mines of the company
Burukrtal nickel plant
Metallurgicalprocessing enterprises
4
Shanutch (Kamchatsky Krai)
CJSC Geotekhnologiya
Mines of the company
2
Serovskoe (Sverdlovskaya Oblast)
OJCS Ufaleinickel
Mines of the company
3
Ufalei nickel plant
Metallurgicalprocessing enterprises
Talnakhskaya Norilskaya
Concentratingplants
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GEOGRAPHY AND CORPORATE STRUCTURE
Russia
USA
UK
Canada
Peru
South Africa
China
Philippines
China
Australia
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
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
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
3.3
N
OR
ILSK
NIC
KEL
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NORILSK NICKEL: GLOBAL MARKET LEADER 2013 , share in global metal production
№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
Nickel production,2011-2013, thousand tonnes
2952011 2012 2013
300 285
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GEOGRAPHY AND CORPORATE 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
CapitalizationUSD bln
23.8Nov. 13
+20%
N
OR
ILSK
NIC
KEL
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4.25.8
EBITDA USD bln
4251
41
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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GEOGRAPHY AND CORPORATE 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
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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PLATFORMINVEST IN RUSSIA
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