Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q2 2018 Earnings Presentation
31 slides from Aluminium Bahrain B.S.C's earnings presentation, 2018
Slide 1: Investor Relations Presentation Q2 2018
Aluminium for the world INVESTOR RELATIONS PRESENTATION Q2 2018
Slide 2: Disclaimer
Aluminium for the world This document has been prepared and issued by and is the sole responsibility of Aluminium Bahrain B.S.C. (the “Company”). The document is being supplied to you solely for your information and for use at the Company’s presentation. No information made available to you in conne
Slide 3: Contents
Aluminium for the world CONTENTS 01 02 03 04 05 Industry ALBA Q2 2018 Industry 2018 Highlights Highlights Results Perspectives ALBA Priorities in 2018 3
Slide 4: Industry Highlights
Aluminium for the world 01 INDUSTRY HIGHLIGHTS 1 Industry Highlights are based on CRU analysis
Slide 5: Industry Highlights - Q2 2018: Global Physical Demand Remain Healthy
Aluminium for the world Industry Highlights - Q2 2018 Global Physical Demand Remain Healthy World consumption up by 5% YoY MENA demand surge by +9% YoY driven by major infrastructure spending in Saudi Arabia (+20% YoY) Demand in Asia up by 6% YoY supported by Chinese consumption (+6% YoY) on the bac
Slide 6: Industry Highlights - Q2 2018: Global Production Growth Flat
Aluminium for the world Industry Highlights - Q2 2018 Global Production Growth Flat World production down by ~ 0.5% YoY Asian supply almost flat & Chinese supply down by 2% YoY due to delays in smelters’ ramp-up Production in North America dropped by 5% YoY due to outages in Warrick and Sebree smelt
Slide 7: Industry Highlights - Q2 2018: LME & Premiums
Aluminium for the world Industry Highlights - Q2 2018 LME & Premiums Q2 2018 cash-average was $2,259/t with LME ranging between $1,967/t on April 6 and $2,602/t on April 19 LME inventories at 1.1 million metric tonnes in June Physical premium prices ($/t) up driven by tight supply & Rusal sanctions
Slide 8: Alba Highlights
Aluminium for the world 02 ALBA HIGHLIGHTS
Slide 9: Alba Highlights - Q2 2018: Operational Highlights & Milestones
Aluminium for the world Alba Highlights - Q2 2018 Operational Highlights & Milestones Launch of Summer Safety Campaign ‘Selfie Safety’ Production up by 23% YoY (252,081 mt) while Sales volume up by 19% YoY (249,595 mt) Alba Value-Added Sales averaged 60% of total shipments in Q2 2018 Line 6 Expansio
Slide 10: Safety in Focus - Safety Selfie
Aluminium for the world Alba Highlights - Q2 2018 Safety in Focus - Safety Selfie Lost Time Injury (LTI) Trend Total Injuries Trend 70 8 69 64 57 57 4 6 6 5 3 2 17 0 10 2014 2015 2016 2017 YTD 2014 2015 2016 2017 YTD June 2018 June 2018 10
Slide 11: Alba Highlights - Q2 & H1 2018: Financial Key Performance Indicators
Aluminium for the world Alba Highlights - Q2 & H1 2018 Financial Key Performance Indicators EBITDA up due to higher LME prices & impact of Line 5 recovery in Q2 2017 Q2: US$ 117 million up by 22% YoY H1: US$ 242 million up by 15% YoY Net Income up supported by higher EBITDA levels Q2: US$ 77 million
Slide 12: Project Titan - Phase III: Improve Cash Cost Structure
Aluminium for the world Alba Highlights – Q2 2018 Project Titan - Phase III: Improve Cash Cost Structure by US$ 60/MT Q2 2018: Achieved Savings of US$ 81/ MT Project Titan - US$ per MT 81 60 Q2 2018 Target *Savings from Project Titan represent the annual US$ cost per mt improvement once all projects
Slide 13: Q2 2018 Results
Aluminium for the world 03 Q2 2018 RESULTS
Slide 14: Sales Bridge Analysis Q2 2018 vs. Q2 2017
Aluminium for the world Q2 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Sales Bridge Analysis Q2 2018 vs. Q2 2017 Higher Sales Volume Due to Line 5 Recovery in 2017 & Higher LME Prices Q2 2018 vs. Q2 2017 - Metal Sales Bridge (US$M) 650 83 550 1 19 75 450 623 350
Slide 15: Sales by Product-Line Bridge Q2 2018 vs. Q2 2017
Aluminium for the world Q2 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Higher Sales Volume Due to Line 5 Recovery in 2017 & Higher LME Prices Q2 2018 vs. Q2 2017 Premium Above LME Trend US$ Per MT Sales by Product-Line Bridge (MT’000) 280 250 7 10 23 200 180 276
Slide 16: Cost Analysis Q2 2018 vs. Q2 2017
Aluminium for the world Q2 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Cost Analysis Q2 2018 vs. Q2 2017: Higher Raw Materials Prices Q2 2018 vs. Q2 2017 - Direct Cost Bridge (US$M) 550 8 2 2 2 8 48 85 375 523 376 200 Direct Cost RM RM Energy Other Alumina Invent
Slide 17: Favourable Management Performance: EBITDA Bridge
Aluminium for the world Q2 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Favourable Management Performance EBITDA Margin at 17.9% Q2 2018 vs. Q2 2017 - EBITDA Bridge (US$M) 300 5 147 178 150 EBITDA 17.9% EBITDA 19.9% 5 117 96 0 EBITDA Metal Other Direct Selling EBI
Slide 18: Cash Flow Bridge - Q1 2018 to Q2 2018
Aluminium for the world Q2 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Cash Flow Bridge - Q1 2018 to Q2 2018: Maintain Good Cash Position Q1 2018 to Q2 2018 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 500 240 17 300 150 250 117 365 110 100 114 121 120 -17 -100
Slide 19: Financial Summary Q2 2018
Aluminium for the world Q2 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Solid Management Performance Coupled With Higher LME Prices Financial Summary Q2 2018 Q2 2017 H1 2018 H1 2017 Average Cash LME (US$/MT) 2,259 1,911 2,209 1,880 Total Sales (US$M) 653 480 1,254
Slide 20: Industry Perspectives in 2018
Aluminium for the world 04 INDUSTRY PERSPECTIVES IN 2018
Slide 21: Physical Demand to Remain Healthy
Aluminium for the world Industry Perspectives in 2018 Physical Demand to Remain Healthy Key factors to be observed: LME volatility to continue on the back of trade-war tensions and stronger US$ Consumption to slow-down in China while Europe and North America to maintain healthy growth Global market
Slide 22: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2018 Raw Materials Price Trends Spot alumina prices to remain high pending resolution of Alunorte’s production cutbacks Green Petroleum Coke (GPC) price to remain at the higher range led by Chinese environmental regulations and supply constraints Liqu
Slide 23: 2018 Alba Priorities
Aluminium for the world 05 2018 ALBA PRIORITIES
Slide 24: 2018 Alba Priorities
Aluminium for the world 2018 Alba Priorities Sustainable Improvement & Preparation for Future growth Continued focus on Safety initiatives Deliver on Project Titan - Phase III [2018: 1 Million MT & US$ 60/t] Leverage strong demand on Value-Added Sales Focus on future upstream opportunities Prepare f
Slide 25: Appendix
Aluminium for the world 06 APPENDIX
Slide 26: Sales Bridge Analysis H1 2018 vs. H1 2017
Aluminium for the world H1 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Sales Bridge Analysis H1 2018 vs. H1 2017 Higher Sales Volume Due to Line 5 Recovery in 2017 & Higher LME Prices 1,250 H1 2018 vs. H1 2017 - Metal Sales Bridge (US$M) 99 2 21 168 1,000 1,219 9
Slide 27: Sales by Product-Line Bridge H1 2018 vs. H1 2017
Aluminium for the world H1 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Higher Sales Volume Due to Line 5 Recovery in 2017 & Higher LME Prices H1 2018 vs. H1 2017 Premium Above LME Trend US$ Per MT Sales by Product-Line Bridge (MT’000) 600 200 9 9 30 400 100 190 2
Slide 28: Cost Analysis H1 2018 vs. H1 2017
Aluminium for the world H1 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Cost Analysis H1 2018 vs. H1 2017: Higher Raw Materials Prices H1 2018 vs. H1 2017 - Direct Cost Bridge (US$M) 1000 43 20 16 10 37 15 147 800 600 982 400 766 200 0 Direct Cost RM RM Energy Oth
Slide 29: Favourable Management Performance: H1 EBITDA Bridge
Aluminium for the world H1 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Favourable Management Performance EBITDA Margin at 19.4% H1 2018 vs. H1 2017 - EBITDA Bridge (US$M) 500 33 290 216 EBITDA 19.4% 250 EBITDA 21.1% 9 242 210 0 EBITDA Metal Other Direct Selling E
Slide 30: Cash Flow Bridge - FY 2017 to H1 2018
Aluminium for the world H1 2018 Results Aluminium Industry: Higher Prices on Market Volatility & Trade Wars Cash Flow Bridge - FY 2017 to Q2 2018: Maintain Good Cash Position FY 2017 to H1 2018 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 600 28 169 380 400 242 756 200 185 383 98 206 385 120 0 -200
Slide 31: For more information, contact us
Aluminium for the world For more information, contact us on: IR@alba.com.bh Alba4World alba4world user/Alba4World photos/alba4world 31 Manama (ALBH)
Aluminium Bahrain B.S.C. — Q2 2018 Earnings Presentation on 6ix