Alro S.a. · BVB:ALR
Alro — H1 2017 Earnings Presentation
28 slides from Alro's earnings presentation, Aug 11, 2017
Slide 1: Financial Results for 1H 2017 – Alro Group
Financial Results for 1H 2017 – Alro Group 11 August 2017
Slide 2: Contents
vimetco alro == Contents Overview
Slide 3: Overview
Overview • In 1H 2017, Alro continued on an upward trend, supported mainly by a strong LME aluminium price environment and higher sales of processed aluminium products. The Group closed 1H 2017 with an EBITDA of RON 291.6mn, more than double YoY, while net profit increased 5.3x times YoY. Alro achie
Slide 4: Contents: Key developments 1H 2017
Contents • Key developments 1H 2017 11/08/2017 4
Slide 5: Key developments - 1H 2017
Key developments - 1H 2017 • April 2017: in 28 April, Alro held its annual ordinary Shareholders Meeting for approving, among others, the 2016 financial statements, the consolidated administrators’ report for 2016, the budget and the capex plan for 2017. With the same occasion, the shareholders reco
Slide 6: Contents: Operational Highlights 1H 2017
Contents • Operational Highlights 1H 2017 11/08/2017 6
Slide 7: Operational Highlights – Production - Aluminium
Operational Highlights – Production - Aluminium Casting facilities Processing facilities • During 1H 2017, the primary aluminium production registered a slight • In 1H17, in line with its long-term strategy of focusing on high value increase, i.e. 1.1% YoY. Of primary products, the production of sla
Slide 8: Operational Highlights – Production – Alumina and Bauxite
Operational Highlights – Production – Alumina and Bauxite Bauxite – SMHL, Sierra Leone Alumina – Alum, Romania • In 1H 2017, the production of commercial bauxite was 921,238 • Alum is the main alumina supplier for Alro, part of the integrated tons, higher by 35.6% YoY. production chain, selling alum
Slide 9: Operational Highlights – Sales - Aluminium (1 of 2)
Operational Highlights – Sales - Aluminium (1 of 2) In 1H 2017, Alro’s sales of primary products decreased by 4.8% YoY (in volume terms). Sales of wire rod continued to be weak, affected by lagging market demand, while billet sales also dropped. Demand for billets was particularly weak in 1Q17, but
Slide 10: Operational Highlights – Sales - Aluminium (2 of 2)
Operational Highlights – Sales - Aluminium (2 of 2) • The focus of the group on developing its sales of value added products is reflected by the evolution of the sales breakdown, as the processed products now account for 50% of sales revenues, versus 28% in 2010. This achievement is more relevant in
Slide 11: Contents: Financial Highlights 1H 2017
Contents • Financial Highlights 1H 2017 11/08/2017 11
Slide 12: Financial Performance – Alro Group
Financial Performance – Alro Group Income Statement Sales – In 1H 2017, Alro’s stand-alone sales to third parties accounted for 83% of total Group sales (84% in 1H 2016). RON '000 1H 2017 1H 2016 YoY Change Alro’s revenues were supported by the hike in LME aluminium quotation (up 21.8% YoY), which o
Slide 13: Alro stand alone summary – Sales and profitability evolution
Alro stand alone summary – Sales and profitability evolution Sales, LME & realized premia Profit margins evolution 2,500 2,299.2 9,000 30% 2,250.1 2,127.1 8,000 1,994.1 25% 2,000 21% 7,000 20% 18% 6,000 17% 1,500 15% 14% 14% RON/t mn RON 1,260.6 5,000 12% 12% 1,111.1 10% 11% USD 910 10% 4,000 10% 1,
Slide 14: Alro stand alone summary – EBITDA and adjusted EBITDA evolution
Alro stand alone summary – EBITDA and adjusted EBITDA evolution Adjusted EBITDA & LME + FX 600,000 9,000 USD 1,880 USD 2,389 8,000 500,000 USD 1,661 7,000 400,000 6,000 USD 1,845 USD 1,544 RON/t '000 RON 5,000 300,000 254,715 246,232 227,473 4,000 200,000 3,000 115,301 2,000 100,000 37,893 1,000 - -
Slide 15: Alro stand alone summary – Net result evolution vs. 1H 2016
Alro stand alone summary – Net result evolution vs. 1H 2016 Alro stand alone Net result 1H 2017 vs. 1H 2016 (RON mn) 490 Alro Revenue: RON 149.5 mn 420 Alro COGS: -RON 13.6 mn 350 280 185.7 (29.9) (0.6) (3.6) 19.5 (31.5) (22.3) 210 11.7 2 (21.9) 20.7 (7.2) 140 (5.7) 156.0 70 39.1 - (70) (140) Revenu
Slide 16: SMHL and Alum stand alone summary
SMHL and Alum stand alone summary • In 1H 2017, SMHL sold bauxite in amount of RON 123.7mn, • In 1H 2017, Alum registered a decrease in sales in volume 7.4% more than in 1H 2016, supported mainly by an increase in terms, in line with a drop in output caused by some one-off quantity, while the price
Slide 17: Financial Statements – Statement of Financial Position (1 of 2)
Financial Statements – consolidated Statement of Financial Position (1 of 2 ) Property, plant and equipment RON '000 30-Jun-17 31-Dec-16 YoY Change In 1H 2017, Alro Group spent some RON 91mn on PP&E, 53% more than in the same period of 2016. The acquisitions Assets were mainly related to a EU co-fin
Slide 18: Financial Statements – Statement of Financial Position (2 of 2)
Financial Statements – consolidated Statement of Financial Position (2 of 2) RON '000 30-Jun-17 31-Dec-16 YoY Change Bank loans No new loans were contracted by the Group companies in Share capital 356,091 336,703 6% 1H 2017. The only novelty was that, in May 2017, Groups’ Share premium 86,351 69,446
Slide 19: Financial Statements – Cash Flow
Financial Statements – consolidated Cash Flow RON '000 1H 2017 1H 2016 In 1H 2017, Alro Group further improved its cash generating Cash flow from operating activities abilities and the cash generated from operations increased Net cash generated by / (used in) operating activities 249,268 103,917 2.4
Slide 20: Alro stand alone summary – CAPEX and some key metrics
Alro stand alone summary – CAPEX and some key metrics Capex dynamics 45.0 RON '000 1H 2017 1H 2016 YoY Peers 40.0 median** 35.0 Net Debt 571,873 696,333 -18% 30.0 Adjusted EBITDA 227,473 115,301 97% USD mn 25.0 Net Debt / Adjusted EBITDA 1.3 3.0 1.2 20.0 Interest coverage ratio 6.0 2.5 1.6 15.0 Curr
Slide 21: Contents: Outlook
Contents • Outlook 11/08/2017 21
Slide 22: Market Outlook
Market Outlook In 1H17, aluminium was an outperformer among base metals. It rallied 22% YoY, touching a benchmark of USD 1,965/t in March, the highest since 2014. However, its price increase was partly capped by capacity additions and growing production in China. This was valid until recently, whe
Slide 23: Contents: Appendices
Contents • Appendices 11/08/2017 23
Slide 24: Alro Group entities
Alro Group entities Company Parent Shareholding Bauxite mining (%) Alro S.A. Vimetco NV 84.19 Alum S.A. Alro S.A. 99.4 Conef S.A. Alro S.A. 99.97 Vimetco Extrusion SRL Alro S.A. 100.00 Global Aluminium Ltd. Alum S.A. 100.00 Alumina refining Bauxite Marketing Ltd. Global Aluminium Ltd. 100.00 Sierra
Slide 25: Simplified Group Structure
Simplified Group Structure 11/08/2017 25
Slide 26: Supporting information – Adjusted Net Result calculation
Supporting information – Adjusted Net Result calculation (Alro Group) Alro Group – Adjusted Net Result RON '000 1H 2017 1H 2016 Net result 186,847 35,033 Impairment of property, plant and equipment - (844) Derivative financial instruments (87) 17,230 Deferred tax 31,806 4,492 Adjusted net result 218
Slide 27: Supporting information – Adjusted EBITDA calculation
Supporting information – Adjusted EBITDA calculation (Alro stand-alone) Alro stand – alone – Adjusted EBITDA RON '000 2011 2012 2013 2014 2015 2016 H1 2016 H1 2017 EBITDA 482,794 292,164 (6,743) 114,700 223,501 246,627 118,225 227,473 EBITDA Margin (%) 21.3% 13.1% -0.3% 5.8% 9.7% 11.6% 10.6% 19.1% E
Slide 28: Cautionary statement
Cautionary statement These materials are being supplied to you solely for your information and may not be reproduced in any form, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, by any medium or for any purpose. Failure to comply with this r