Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q2 2015 Earnings Presentation
31 slides from Aluminium Bahrain B.S.C's earnings presentation, Dec 29, 2015
Slide 1: Investor Relations Presentation Q2 2015
Aluminium for the world INVESTOR RELATIONS PRESENTATION Q2 2015
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 2015 Industry 2015 Highlights Highlights Results Perspectives ALBA Priorities in 2015 3
Slide 4: Industry Highlights
Aluminium for the world 01 INDUSTRY HIGHLIGHTS
Slide 5: Industry Highlights - Q2 2015: Global Physical Demand Still Growing
Aluminium for the world Industry Highlights - Q2 2015 Global Physical Demand Still Growing World consumption up by +5% YoY Asian demand up by 6% YoY supported by softer consumption in China (+7% YoY) on the back of government stimulus policies North America continues to have a firm demand growth (+6
Slide 6: Industry Highlights - Q2 2015: Production Evolution
Aluminium for the world Industry Highlights - Q2 2015 Production Evolution World production up by 7% YoY Chinese output up despite slower demand growth (7.8 million metric tonnes, +14% YoY) supported by new capacity ramp-ups from both greenfield & brownfield expansions World market in deficit with C
Slide 7: Industry Highlights - Q2 2015: LME & Premiums
Aluminium for the world Industry Highlights - Q2 2015 LME & Premiums LME inventories at 3.5 million metric tonnes in June 2Q15 cash-average was $1,769/t with LME ranging between $1,642/t on June 29 (lowest since July 2009) and $1,919/t on May 1 Sharp decline in physical premiums ($/t) Major Japanese
Slide 8: Alba Highlights
Aluminium for the world 02 ALBA HIGHLIGHTS
Slide 9: Alba Highlights - Q2 2015: Operational Highlights & Achievements
Aluminium for the world Alba Highlights - Q2 2015 Operational Highlights & Achievements Launch of Summer ‘Safety Jungle Campaign’ Line 6 Expansion project approved during EGM in June 2015 and will increase capacity by 514,000 metric tonnes (mt) Production up by 3.1% YoY due to strong operational per
Slide 10: Alba Highlights - Q2 & H1 2015: Financial Key Performance Indicators
Aluminium for the world Alba Highlights - Q2 & H1 2015 Financial Key Performance Indicators Adjusted EBITDA up due to solid physical premiums, higher overall sales & favourable plant performance Q2: US$128 million up by 32% YoY H1: US$272 million up by 42% YoY Adjusted Net Income up driven by higher
Slide 11: Project Titan - Improve Cash Cost of $150/t by January 2016
Aluminium for the world Alba Highlights - Q2 2015 Project Titan - Improve Cash Cost of $150/t by January 2016 H1 2015: Project Titan on Track with Projected Savings of $129/t Project Titan - US$ per MT 150 129 100 2014 Target YTD June January 2016 2015 Final Target 1. Savings from Project Titan repr
Slide 12: Maintain Sound Balance Sheet & Ready for Line 6 Financing
Aluminium for the world Alba Highlights - Q2 2015 Maintain Sound Balance Sheet & Ready for Line 6 Financing Cash, Net Debt & Net Debt to EBITDA 1.60 159 1.05 265 1.25 164 1.0 894 172 0.4 613 513 179 362 184 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Net Debt Cash Net Debt to EBITDA 12
Slide 13: Q2 2015 Results
Aluminium for the world 03 Q2 2015 RESULTS
Slide 14: Q2 2015 Metal Sales Bridge
Aluminium for the world Q2 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Favourable Management Performance & Higher Premiums 600 Q2 2015 vs. Q2 2014 - Metal Sales Bridge (US$M) 5 500 7 35 0 525 400 478 300 Product Mix Metal Sales LME P
Slide 15: Q2 2015 Sales by Product Line and Premium Bridge
Aluminium for the world Q2 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Favourable Management Performance & Higher Premiums 2Q15 vs. 2Q14 - Premium Above LME Trend US$ Per MT Sales by Product Line Bridge (MT’000) 250 500 2 5 5 225 468
Slide 16: Cost Analysis 2Q15 vs. 2Q14
Aluminium for the world Q2 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Cost Analysis 2Q15 vs. 2Q14 Q2 2015 vs. Q2 2014 - Direct Cost Bridge (US$M) 500 10 9 1 15 400 36 1 2 1 300 400 397 200 Direct Cost RM RM Energy Alumina Inventory
Slide 17: Adjusted EBITDA Margin at 24.1%
Aluminium for the world Q2 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Favourable Management Performance Adjusted EBITDA Margin at 24.1% 200 Q2 2015 vs. Q2 2014 - EBITDA Bridge (US$M) 150 EBITDA 24.1% 32 47 4 13 EBITDA 18.8% 1 100 12
Slide 18: Cash Flow Bridge - 2Q15 vs. 1Q15
Aluminium for the world Q2 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Cash Flow Bridge - 2Q15 vs. 1Q15 Maintain Solid Cash Flow Q1 2015 to Q2 2015 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 275 17 80 30 128 0 200 40 78 81 125 184
Slide 19: Financial Summary Q2 2015
Aluminium for the world Q2 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Sound Management Performance Financial Summary Q2 2015 Q2 2014 H1 2015 H1 2014 Average Cash LME (US$/MT) 1,769 1,798 1,785 1,753 Total Sales (US$M) 530 515 1,080
Slide 20: Industry Perspectives in 2015
Aluminium for the world 04 INDUSTRY PERSPECTIVES IN 2015
Slide 21: Physical Demand to Remain Relatively Healthy
Aluminium for the world Industry Perspectives in 2015 Physical Demand to Remain Relatively Healthy Key factors to be observed: LME prices to remain volatile with continued pressure from Chinese exports and stronger US dollar Physical premiums expected to continue to decline into Q3 and level-off in
Slide 22: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2015 Raw Materials Price Trends Alumina spot index expected to slightly soften Green Petroleum Coke prices to remain relatively stable Alumina Fluoride (ALF3) and Liquid Pitch prices to remain at current levels for the next 6 months 22
Slide 23: 2015 Alba Priorities
Aluminium for the world 05 2015 ALBA PRIORITIES
Slide 24: Sustain Performance Gains & Prepare for Line 6 Expansion
Aluminium for the world 2015 Alba Priorities Sustain Performance Gains & Prepare for Line 6 Expansion Continuous Focus on Safety, Training & Development Initiatives Deliver on Project Titan Sustained Focus on Value-Added Sales Gear for Line 6 Expansion Project 24
Slide 25: Appendix
Aluminium for the world 06 APPENDIX
Slide 26: H1 2015 Metal Sales Bridge
Aluminium for the world H1 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Favourable Management Performance & Higher Premiums H1 2015 vs. H1 2014 - Metal Sales Bridge (US$M) 1100 9 34 77 1 900 1,056 937 700 500 Product Mix Metal Sales L
Slide 27: H1 2015 Sales by Product Line and Premium
Aluminium for the world H1 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Favourable Management Performance & Higher Premiums 1H15 vs. 1H14 - Sales by Product Line Premium Above LME Trend US$ Per MT Bridge (MT’000) 500 500 6 2 4 300 480
Slide 28: Cost Analysis 1H15 vs. 1H14
Aluminium for the world H1 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Cost Analysis 1H15 vs. 1H14 H1 2015 vs. H1 2014 - Direct Cost Bridge (US$M) 850 27 11 14 46 7 11 0 2 700 780 789 550 400 Direct Cost RM RM Energy Alumina Inventor
Slide 29: Adjusted EBITDA Margin at 25.2%
Aluminium for the world H1 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Favourable Management Performance Adjusted EBITDA Margin at 25.2% H1 2015 vs. H1 2014 - EBITDA Bridge (US$M) 350 40 EBITDA 25.2% 14 250 119 9 3 272 EBITDA 19.1% 1
Slide 30: Cash Flow Bridge - H1 2015 vs. FY 2014
Aluminium for the world Q2 2015 Results Aluminium: Industry Expecting Strong Headwinds in 2nd Half with Significant Drop in All-in-Prices Cash Flow Bridge - H1 2015 vs. FY 2014 Maintain Solid Cash Flow FY 2014 to H1 2015 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 500 160 400 80 49 270 300 56 158
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
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