Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q1 2017 Earnings Presentation
26 slides from Aluminium Bahrain B.S.C's earnings presentation, Jun 19, 2017
Slide 1: Investor Relations Presentation Q1 2017
Aluminium for the world INVESTOR RELATIONS PRESENTATION Q1 2017
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 Q1 2017 Industry 2017 Highlights Highlights Results Perspectives ALBA Priorities in 2017 3
Slide 4: Industry Highlights
Aluminium for the world 01 1 INDUSTRY HIGHLIGHTS 1 Industry Highlights are based on CRU analysis
Slide 5: Industry Highlights - Q1 2017: Global Physical Demand Still Strong
Aluminium for the world Industry Highlights - Q1 2017 Global Physical Demand Still Strong World consumption up by 6% YoY Asian demand up by 7% YoY led by Chinese consumption (+8% YoY) MENA demand grew by 5% YoY driven by major infrastructure spending in Saudi Arabia (+13% YoY) Demand in North Americ
Slide 6: Industry Highlights - Q1 2017: Production Growth
Aluminium for the world Industry Highlights - Q1 2017 Production Growth World production up by 9% YoY Asia production rose by 15% YoY driven mainly by Chinese output (17% YoY) North America and Europe supply dropped by 5% YoY and 1.% YoY respectively World market in surplus with China (+664Kt) and i
Slide 7: Industry Highlights - Q1 2017: LME & Premiums
Aluminium for the world Industry Highlights - Q1 2017 LME & Premiums LME inventories at 1.8 million mt in March Q1 2017 cash-average was $1,850/t with LME ranging between $1,701/t on January 4 and $1,955/t on March 30 Physical premiums prices edge higher ($/t): Major Japanese Ports (MJP) US Midwest
Slide 8: Alba Highlights
Aluminium for the world 02 ALBA HIGHLIGHTS
Slide 9: Alba Major Highlights - Operational Highlights & Achievements
Aluminium for the world Alba Major Highlights - Q1 2017 Operational Highlights & Achievements Continuous improvement in Safety Performance with the launch of ‘Safety Tomorrowland’ initiatives Sales volume up by 4.9% YoY (242,932 mt) and production up by 5.6% YoY (248,776 mt) Value-Added Sales averag
Slide 10: Alba Major Highlights - In Focus - Towards Safety Tomorrowland
Aluminium for the world Alba Major Highlights - Q1 2017 In Focus - Towards Safety Tomorrowland Lost Time Injury (LTI) Trend Total Injuries Trend 130 10 70 6 119 8 6 69 64 5 57 11 3 0 2 10 2013 2014 2015 2016 YTD 2013 2014 2015 2016 YTD March March 2017 2017 10
Slide 11: Alba Major Highlights - Power Outage Update
Aluminium for the world Alba Major Highlights - Q1 2017 Power Outage Update Alba experienced a power outage that resulted in temporary loss of power in all reduction lines for about 3 hours on April 5, 2017. Power operations have been fully restored; operations were reinstated safely and without inj
Slide 12: Alba Major Highlights - Financial Key Performance Indicators
Aluminium for the world Alba Major Highlights - Q1 2017 Financial Key Performance Indicators Adjusted EBITDA up due to higher LME prices and favourable management performance Q1: US$ 115 million up by 89% YoY Adjusted Net Income up driven by higher EBITDA levels Q1: US$ 69 million up by 528% YoY Fre
Slide 13: Project Titan II - Improve Cash Cost Structure
Aluminium for the world Alba Major Highlights - Q1 2017 Project Titan II - Improve Cash Cost structure Q1 2017: Project Titan II Achieved Savings of US$ 85 per tonne Project Titan - US$ per MT 100 78 85 Achieved Achieved Target FY 2016 Q1 2017 2017 *Savings from Project Titan represent the annual $c
Slide 14: Q1 2017 Results
Aluminium for the world 03 Q1 2017 Results
Slide 15: Sales Bridge Analysis Q1 2017 vs. Q1 2016
Aluminium for the world Q1 2017 Results LME Prices Rebound on Bullish Sentiment Sales Bridge Analysis Q1 2017 vs. Q1 2016 Favourable Management Performance Q1 2017 vs. Q1 2016 - Metal Sales Bridge (US$M) 550 2 6 20 76 400 483 392 250 Metal Sales LME Product Mix Pricing Power Volume Metal Sales 1Q16
Slide 16: Higher Sales Volume Coupled with Favourable Shift in Product Mix
Aluminium for the world Q1 2017 Results LME Prices Rebound on Bullish Sentiment Higher Sales Volume Coupled with Favourable Shift in Product Mix 1Q17 vs. 1Q16 - Sales by Product Line Premium Above LME Trend US$ Per MT Bridge (MT’000) 300 250 16 3 2 200 232 243 200 183 100 0 Sales Value Liquid Commod
Slide 17: Cost Analysis 1Q17 vs. 1Q16
Aluminium for the world Q1 2017 Results LME Prices Rebound on Bullish Sentiment Cost Analysis 1Q17 vs. 1Q16 1Q17 vs. 1Q16 - Direct Cost Bridge (US$M) 8 4 12 26 14 31 390 347 Direct Cost RM RM Energy Alumina Inventory Plant Direct Cost 1Q16 Price Consumption Consumption Sales Change Spending 1Q17 Cos
Slide 18: Adjusted EBITDA Bridge Gap Analysis - Q1 2017 vs. Q1 2016
Aluminium for the world Q1 2017 Results LME Prices Rebound on Bullish Sentiment Adjusted EBITDA Bridge Gap Analysis – Q1 2017 vs. Q1 2016 Adjusted EBITDA Margin at 22.2% 1Q17 vs. 1Q16 - EBITDA Bridge (US$M) 180 9 43 EBITDA 22.2% 4 91 90 EBITDA 14.6% 115 61 0 EBITDA 1Q16 Metal Other Sales Direct Cost
Slide 19: Cash Flow Bridge - 4Q16 to 1Q17
Aluminium for the world Q1 2017 Results LME Prices Rebound on Bullish Sentiment Cash Flow Bridge – 4Q16 to 1Q17 Maintaining Good Cash Position 4Q16 to 1Q17 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 350 15 47 115 56 175 7.5 192 141 239 11 177 7 0 0 0 Cash CF WC CAPEX LINE 6 Payment Net Debt Cash
Slide 20: Financial Summary Q1 2017
Aluminium for the world Q1 2017 Results LME Prices Rebound on Bullish Sentiment Favourable Management Performance Financial Summary Q1 2017 Q1 2016 Average Cash LME (US$/MT) 1,850 1,515 Sales (US$M) 517 416 EBITDA (US$M) 115 61 EBITDA% 22.2% 14.6% Adjusted Net Income/ (Loss) (US$M) 69 11 Adjusted Ne
Slide 21: Industry Perspectives in 2017
Aluminium for the world 04 INDUSTRY PERSPECTIVES IN 2017
Slide 22: Global Physical Demand to Further Strengthen
Aluminium for the world Industry Perspectives in 2017 Global Physical Demand to Further Strengthen Key factors to be observed: LME volatility is set to continue on the back of stronger US dollar. LME inventories to edge lower while Chinese production will continue to accelerate. North America consum
Slide 23: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2017 Raw Materials Price Trends After starting 2017 at high levels, Alumina prices are expected to soften to reasonable levels. Green Petroleum Coke prices are expected to remain at current levels and likely to increase in the short-run. Liquid Pitch
Slide 24: 2017 Alba Priorities
Aluminium for the world 05 2017 ALBA PRIORITIES
Slide 25: 2017 Alba Priorities
Aluminium for the world 2017 Alba Priorities Sustainable Improvement & Progressing Line 6 Expansion Project Focus on Safety Tomorrowland Initiatives Fully Restore Line 5 Production Deliver on Project Titan - Phase II Leverage Strong Demand on Value-Added Sales Line 6 on Schedule - Award Remaining Pa
Slide 26: 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 26
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