Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q4 2019 Earnings Presentation
22 slides from Century Aluminum's earnings presentation, Feb 20, 2020
Slide 1: Century Aluminum Company 4th Quarter Earnings Call
Century Aluminum Company 4th Quarter Earnings Call February 20, 2020
Slide 2: Cautionary Statement
Cautionary Statement This presentation and statements made by Century Aluminum Company management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21
Slide 3: Speakers
Speakers • Mike Bless, President and Chief Executive Officer • Craig Conti, Executive Vice President and Chief Financial Officer • Peter Trpkovski, Director of Financial Planning and Analysis 2
Slide 4: Overview
Overview • Industry fundamentals improving before virus outbreak • Input costs continue to fall • Strong quarter in safety performance and cost control at all plants • Hawesville fourth potline restart on time and budget; plant at 80% capacity by the end of Q1 • Good progress at Mt. Holly on path to
Slide 5: Natur-Al™
Natur-Al™ - Centuryauminum naturAl Low-Carbon Aluminum Made in Iceland M Centuryawminum
Slide 6: Industry Environment
Industry Environment Global Inventory Days of Primary Aluminum Consumption LME and Regional Premiums FY 2020 Supply and Demand Balance Alumina and Coke 1) Source: CRU Group, Century Aluminum Company 5
Slide 7: Operations
Operations Q319 vs. Q419 Performance Hawesville Sebree Mt. Holly Grundartangi Safety Flat Flat Production(1) 5% 0% 0% -1% KPIs Flat Flat Flat Controllable cost(2) -8% -4% 3% -1% 1) Production on a tonnes per day basis 2) Excludes raw materials and casting costs 6
Slide 8: Summary of Financial Results
Summary of Financial Results ($MM, except per share and tonne amounts) Q319 Q419 Income statement Shipments (tonnes) 198,543 202,870 Net sales $ 438 $ 436 Net income/(loss) (21) (5) Earnings/(loss) per share (0.23) (0.05) (1) Adjusted net income/(loss) (37) (9) (1) Adjusted earnings / (loss) per sha
Slide 9: Financial Results: Adjusted EBITDA
Financial Results Q319 vs. Q419 Adjusted EBITDA ($MM) 1) See reconciliation to comparable GAAP financial measure in appendix 8
Slide 10: Financial Results: Cash Flow
Financial Results Q319 vs. Q419 Cash Flow ($MM) 1) See reconciliation to comparable GAAP financial measure in appendix 9
Slide 11: 2020 Items – Price Assumptions
2020 Items – Price Assumptions Key Assumption Units Price Midwest Premium $/T $ 310 European Duty Paid Premium $/T 150 Alumina Price Index $/T 280 MISO Indiana Hub $/MWh 25.10 NYMEX Henry Hub Nat Gas $/MMBtu 2.10 1 Nord Pool System Price $/MWh 19.80 Coke $/T 255 Pitch2 $/T 825 1) Assumes EURUSD of 1
Slide 12: 2020 Items
2020 Items Hawesville - ~195K tonnes Sebree - ~220K tonnes Shipments Mt. Holly - ~115K tonnes Iceland - ~320K tonnes U.S. Standard - Midwest Transaction with ~50% 1 month lag and ~50% 3 month lag 1 Pricing Iceland Standard - LME plus European Duty Paid premium with primarily 3 month lag Value Added
Slide 13: 2020 Items cont…
2020 Items cont… Book - ~$45MM SG&A Cash - ~$37MM Book - ~$23MM Interest, net Cash - ~$22MM 1 Hawesville term loan paydown $20MM Maintenance - $10-15MM Capex Investment ex Hawesville restart - $5-10MM Hawesville restart - ~ $10MM Depreciation $80-90MM U.S. - book/cash < $1MM Income tax Iceland - boo
Slide 14: Appendix
Appendix
Slide 15: Natur-Al™
Natur-Al™ • Low-carbon aluminum products, with one of the lowest CO₂ footprints in the world • Natur-Al™ aluminum has CO₂ levels below one-fourth of the industry average or 4 tonnes CO₂ per tonne opposed to 18 tonnes CO₂ per tonne • Natur-Al™ products are made with energy from hydroelectric and geot
Slide 16: The Natur-Al™ Advantage
The Natur-Al™ Advantage ¢ Primary aluminium produced with renewable energy results in direct CO, below 2 tonnes per tonne Aluminium ¢ Third Party Certification of CO, emissions ¢ Traceability from mine to metal ¢ Data available for use in life cycle analysis of finished products ¢ Total CO, emission
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA, adjusted net income / (loss) and adjusted earnings / (loss) per share and net debt are non-GAAP financial measures that management uses to evaluate Century's financial performance. These non-GAAP financial measures facilitate comparisons of this period’s
Slide 18: Adjusted Net Income (Loss) Non-GAAP Reconciliation
Adjusted Net Income (Loss) Non-GAAP Reconciliation Q319 Q419 $MM EPS $MM EPS Net income (loss) as reported $ (20.7) $ (0.23) $ (4.8) $ (0.05) Lower of cost or NRV inventory adjustment, net of tax (5.7) (0.06) (3.3) (0.04) Unrealized (gain) loss on forward and derivative contracts, net of tax (10.1)
Slide 19: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation ($MM) Q319 Q419 Net income (loss) as reported $ (20.7) $ (4.8) Interest expense 5.6 5.7 Interest expense - term loan 0.8 0.8 Interest income (0.2) (0.2) Net (gain) loss on forward and derivative contracts (10.3) (1.3) Other (income) expense - net 0.9 (0.5) Inc
Slide 20: 2020 Items Net Plant Cash Cost Reconciliation
2020 Items Net Plant Cash Cost Reconciliation FY20 ($/T) U.S. Iceland Plant operating cash costs ($/T) $ 2,000 $ 2,050 $ 1,630 $ 1,680 Regional premium (310) (310) (150) (150) Other1 (50) (50) - - Net plant operating cash costs ($/T) $ 1,640 $ 1,690 $ 1,480 $ 1,530 1) Product premium on average acro
Slide 21: 2020 Sensitivities
2020 Sensitivities ($MM) Variance Annual EBITDA7 LME +/- $100/T $ 66 MWP1 +/- $22.04/T 12 EDPP2 +/- $22.04/T 7 Alumina Price Index +/- $10/T 7 MISO Indiana Hub3 +/- $1/MWh 6 NYMEX Henry Hub Nat Gas4 +/- $0.10/MMBtu 1 Nord Pool5 +/- $1/MWh 1 Coke6 +/- $10/T 3 Pitch6 +/- $10/T 1 1) Midwest Premium for
Slide 22: For Additional Information
For Additional Information Peter Trpkovski peter.trpkovski@centuryaluminum.com 312-696-3112 (Office) Century Aluminum Company One South Wacker Dr, Suite 1000 Chicago, IL 60606 312-696-3102 (Fax) www.centuryaluminum.com 21
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