non-ferrous metallurgy: nickel - investinrussia.com · 7 1. norilsk nickel russia 2. vale brazil 3....

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

6 WWW.INVESTINRUSSIA.COM

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

WWW.RDIF.RU 7

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



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

WWW.RDIF.RU 11

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



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

WWW.RDIF.RU 13

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


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

WWW.RDIF.RU 17

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


4

Shanutch (Kamchatsky Krai)

CJSC Geotekhnologiya


2

Serovskoe (Sverdlovskaya Oblast)

OJCS Ufaleinickel


3

Ufalei nickel plant


Talnakhskaya Norilskaya

Concentratingplants



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

WWW.RDIF.RU 19

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



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

WWW.RDIF.RU 21

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



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

WWW.RDIF.RU 23

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


NOTES

WWW.RDIF.RU 25

NOTES


INVESTIN RUSSIA

RDIF PRESENTS

PLATFORMINVEST IN RUSSIA

WWW.RDIF.RU 27

Key facts about the Russian economy. Russia’s global ranking in different areas.

Use this link to learn more about the largest Russian companies.

Stay connected with investment promotion agencies and government authorities in any region in Russia.

COMPARE REGIONSEvery region talks about their pro-business investment climate. We gather evidence on the actual state of affairs.

SECTORSGain access to the partners’ reports, guides and other materials about key industries.

REGION PROFILESSay YES to your success in Russia. Our team of regional professionals provide you with the expertise and up to date information you need in order to make an informed investment decision with regards to any specific region.

Get a historical perspective on top international companies which have made specific regions in Russia their home and see their profiles.

Browse our library of Investment News and Research, companies’ case studies, guides, industry reports and comments from investment professionals and the business community around the world.

Find information about publicly announced investments within Russian regions.

THEY CHOOSE RUSSIASuccess stories of foreign investors from multiple Russian regions. Track inward strategic investment across Russia.

PROJECT DATABASEThe Project Database is the central storehouse of information on regional projects, verified by the Russian Direct Investment Fund professionals.

SITE SELECTION TOOLSThe best way to find the best properties (greenfield and brownfield).

The easy-to-use property search tool allows you to find a specific site by entering Size, Other Features and Location Filters. Compare selected properties side-by-side, download individual property sheets and see your results in a basic or detailed list view, or on a map.

WHY RUSSIA

TOP RUSSIA

OUR PARTNERS

WHERE TO INVEST

KNOWLEDGE HUB & NEWS

INVESTMENT ANNOUNCEMENT

INVESTMENT TOOLS

SITE MAP

Presnenskaya Nab., 8/1Moscow, Russia, 123317Tel.: +7 (495) 644-34-14Fax: +7 (495) 644-34-13

[email protected]

www.investinrussia.com

non-ferrous metallurgy: nickel - investinrussia.com · 7 1. norilsk nickel russia 2. vale brazil 3....

Documents