651 20 15 Terrafame 9.1 employees 682 10 8.1 7.2 5 0 - PowerPoint PPT Presentation

» January – March 2019 Joni Lukkaroinen CEO 26 April 2019 1

» January – March in brief  Net sales EUR 81.0 million.  EBITDA EUR 11.3 million.  Operating profit EUR 2.8 million.  Nickel production 7,288 tonnes.  Zinc production 14,343 tonnes.  Construction works for the solvent extraction building at the battery chemicals plant were started.  Safety culture development continued with Don’t get hurt - campaign and manager training.

» Price developments of nickel and zinc brightened up

» Nickel price development began to rise in early 2019 Nickel price development (USD/t) 1 Jan 2016 – 31 Mar 2019 18,000  In Q1, average price was 12,369 USD/t which was 7.4% higher than in Q4. 16,000  Compared with 2018 Q1, average price 14,000 was 6.8% lower.  The combined stock levels of LME and 12,000 SHFE decreased by over 28,000t and 10,000 were appr. 193,000t at the end of March (Q1 2018: 368,000t). This equals 8,000 to four weeks ’ demand (Q1 2018: 8 weeks). 6,000 1.1.16 31.3.16 29.6.16 27.9.16 26.12.16 26.3.17 24.6.17 22.9.17 21.12.17 21.3.18 19.6.18 17.9.18 16.12.18 16.3.19 Day price for nickel on the London Metal Exchange (USD/t) Day price for nickel on the London Metal Exchange (USD/t), 90 day average Data source: Metal Bulletin LME = London Metal Exchange, SHFE = Shanghai Futures Exchange

» Zinc price continued to increase in January – March Zinc price development (USD/t) 1 Jan 2016 – 31 Mar 2019 4,000  In Q1, average price was 2,702 USD/t which was 2.7% higher than in Q4. 3,500  Compared with 2018 Q1, average price 3,000 was 21.0% lower.  The combined stock levels of LME and 2,500 SHFE increased by over 11,000t and 2,000 were appr. 164,000t (Q1 2018: 362,000t) at the end of March. This equals to 1,500 under one week’s demand (Q1 2018: 1 week). 1,000 1.1.16 31.3.16 29.6.16 27.9.16 26.12.16 26.3.17 24.6.17 22.9.17 21.12.17 21.3.18 19.6.18 17.9.18 16.12.18 16.3.19 Day price for zinc on the London Metal Exchange (USD/t) Day price for zinc on the London Metal Exchange (USD/t), 90 day average Data source: Metal Bulletin LME = London Metal Exchange, SHFE = Shanghai Futures Exchange

» Nickel production continued over the level of 7,000 tonnes

» Nickel and zinc production remained at good level in January – March Nickel production, rolling 12-month (t) Zinc production, rolling 12-month (t) 30,000 70,000 60,000 25,000 50,000 20,000 40,000 15,000 30,000 10,000 20,000 5,000 10,000 ,0 ,0 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2019 Q1 2019

» Liikevaihto kaksinkertaistui » Liikevaihto kehittyi xxx » Liikevaihto » Liikevaihto kehittyi edellisvuoteen verrattuna VAIHDA laivakuva » Turvallisuus on kehittyi hyvin erittäin hyvin Päivitä kuva ja otsikko avainasioitamme Kuva päivitettävä Kuva vaihdettava » Työturvallisuus » Systematical work for » Järjestelmällinen työ- ja PÄIVITETTÄVÄ » Työturvallisuus safety development suurennuslasin alla ympäristöturvallisuuden kehittäminen jatkuu suurennuslasin alla 8 6.5.2019 Dokumentin nimi

» Employee safety is one of the cornerstones of Terrafame Lost-time injury frequency, rolling 12-month 30 Cooperation partners 25 651 20 15 Terrafame 9.1 employees 682 10 8.1 7.2 5 0 employees 2015 2016 2017 2018 2019 2019 Terrafame Combined Partner companies Lost-time injury frequency (LTIFR) = number of injuries per one million person-hours worked.

Kuva: Juhani Viitanen Joni Lukkaroinen toimitusjohtaja 25.10.2018 » Positive operating profit in the first quarter

» Net sales increased approximately 5 percent from the last quarter of 2018 Net sales (EUR million) EBITDA (EUR million) 100 40 80 30 85.7 86.0 81.0 77.4 76.7 60 20 40 10 12.9 11.1 11.3 -1.0 9.8 20 0 0 -10 Q1 2019 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Full year 2018: EUR 325.8 million Full year 2018: EUR 32.8 million

» Operating profit EUR 2.8 million Operating profit (EUR million) 10 4.7 3.4 2.8 5 2.4 -7.5 0 -5 -10 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Full year 2018: EUR 3.0 million

» In Q1 2019, EUR 17.5 million was allocated to improving productivity and capacity Capital expenditure (EUR million) 30 Key capital expenditures in Q1:  Design, equipment purchases and the initiation of construction work of 20 2.8 the battery chemicals plant  Construction work of the new 4.9 gypsum pond 10 17.5 Sustaining capex 10.6 Improving productivity and capacity 0 2019 2018 2019

» Terrafame’s solidity is at good level Equity and liabilities (EUR million) 685 682 616 617 700 613 600 366 349 Equity 500 301 305 310 400 300 200 Liabilities 100 0 31.3.2018 30.6.2018 30.9.2018 31.12.2018 31.3.2019 31.3.2019

» Akkukemikaalitehtaa sta » Construction of battery chemicals plant proceeds as planned

» Strongly growing production of electric vehicles accelerates demand of nickel  In 2018, demand of electric vehicles increased 63 percent compared to 2017.  After commissioning, Terrafame’s new factory will produce nickel and cobalt sulphates suitable for electric vehicle battery manufacturing and ammonium sulphate – a new by-product – which is used as fertiliser.  Construction works for the solvent extraction building at the battery chemicals plant were started.  The plant will employ appr. 150 persons after commissioning.

» Terrafame’s impact on the Kainuu and Finnish economy Terrafame’s regional economic impact with the battery chemicals plant. Source: Ramboll

» Events following the reporting period  Stacking of new ore started on 20 April.  Liner structures of the primary leaching area were repaired 18 March – 20 April.  Repairs of the structures decreased ore mining and stacking volumes but did not affect production in the metals production plant.

» Short-term outlook  Terrafame will continue to develop production and improve cost efficiency.  In 2019, the Government is expected to issue a decision on the application for a uranium recovery permit.  Construction of the battery chemicals plant is ongoing.

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