Qatar Aluminium Manufacturing Company · QSE:QAMC
Qatar Aluminium Manufacturing — Q3 2021 Earnings Presentation
35 slides from Qatar Aluminium Manufacturing's earnings presentation, Sep 30, 2021
Slide 1: Qatar Aluminium Manufacturing Company Investor Relations Presentation
Qatar Aluminium Manufacturing Company Investor Relations Presentation 30 September 2021
Slide 2: Disclaimer
CLASSIFICATION: C1 - CONTROLLED Disclaimer The company in which Qatar Aluminium Manufacturing Company Q.P.S.C. directly owns investment is a separate entity. In this presentation, “QAMCO” and “the Company” are sometimes used for convenience in reference to Qatar Aluminium Manufacturing Company Q.P.S
Slide 3: Table of Content
CLASSIFICATION: C1 - CONTROLLED Table of Content 1. QAMCO at a glance 2. Ownership structure 3. Operations of joint venture 4. Competitive strengths 5. Peer review 6. Macroeconomic updates 7. QAMCO results (For the nine-month period ended 30 September 2021) 8. CAPEX and Cash flows (2021f – 2025f) 9.
Slide 4: QAMCO at a glance
CLASSIFICATION: C1 - CONTROLLED QAMCO at a glance 4
Slide 5: QAMCO at a glance: Overview
CLASSIFICATION: C1 - CONTROLLED QAMCO at a glance Overview • Qatar Aluminum Manufacturing Company • QatarEnergy provides all of the head office Q.P.S.C (QAMCO) was incorporated on functions for QAMCO through a comprehensive December 3, 2018 and listed on Qatar service-level agreement. Stock Exchange
Slide 6: Ownership structure
CLASSIFICATION: C1 - CONTROLLED Ownership structure 6
Slide 7: Ownership Structure
CLASSIFICATION: C1 - CONTROLLED Ownership Structure QatarEnergy Public (51%) (49%) QAMCO Qatalum Joint Venture (50%) • QAMCO holds 50% share of Qatar Aluminium Limited (Qatalum), which produces about 650,000 tons per year of high-quality aluminium for customers in Asia, Europe and North America. Its
Slide 8: Operations of Joint Venture
CLASSIFICATION: C1 - CONTROLLED Operations of Joint Venture 8
Slide 9: QAMCO's Joint Venture
CLASSIFICATION: C1 - CONTROLLED QAMCO’s Joint Venture • Qatar Aluminium (Qatalum) is located in Qatar, the company benefits from access to one of the world’s largest and most competitively priced sources of energy which allows it to maintain a first quartile cost position, one of the industry’s high
Slide 10: QAMCO's Joint Venture: Sales and Marketing
CLASSIFICATION: C1 - CONTROLLED QAMCO’s Joint Venture Sales and Marketing: • With a Marketing and Offtake Agreement, Hydro Aluminium is responsible for the offtake and marketing of 100% of Qatar Aluminium product's. The Marketing and Offtake Agreement gives Qatar Aluminium (Qatalum) access to Hydro
Slide 11: Competitive strengths
CLASSIFICATION: C1 - CONTROLLED Competitive strengths 11
Slide 12: Competitive strengths
CLASSIFICATION: C1 - CONTROLLED Competitive strengths Low cost State of the art production facility and technology deployed Assured feedstock supply and competitively priced energy smelter High focus on Health and Safety and Environment Proven Positive share of operating profit & EBITDA marg
Slide 13: Peer review
CLASSIFICATION: C1 - CONTROLLED Peer review 13
Slide 14: QAMCO's competitive positioning versus global peers
CLASSIFICATION: C1 - CONTROLLED QAMCO’s competitive positioning versus global peers Gross profit margin (%) EBITDA margin (%) QAMCO 31% QAMCO ranks #1 QAMCO 41% QAMCO ranks #1 Peer 1 30% Peer 1 34% Peer 2 30% Peer 2 33% Peer 3 26% Peer 3 29% Peer 4 25% Peer 4 28% Note: Data as of 1H-21 Note: Data as
Slide 15: Macroeconomic updates
CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates 15
Slide 16: Macroeconomic updates
CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates Aluminium prices ($/MT) Alumina prices ($/MT) 3500 Aluminum LME spot prices ($/MT) 700 Alumina spot prices ($/MT) 3000 600 2500 500 2000 400 1500 300 1000 200 02/01/2020 1-Jan-20 31-Dec-20 02/01/2021 30-Sep-21 02/01/2020 1-Jan-20 02/01/2021 31-De
Slide 17: QAMCO results (nine months ended September 2021)
CLASSIFICATION: C1 - CONTROLLED QAMCO results (For the nine-month period ended 30 September 2021) 17
Slide 18: 9M-21 results at a Glance
CLASSIFICATION: C1 - CONTROLLED 9M-21 results at a Glance Growth vs. 9M-20 Revenue 32% EBITDA 104% Net profit 4,145% QR 2.13 billion QR 918 million QR 521 million EBITDA Margin: 43.2% EPS: QR 0.093 RoAE: 10.2% QAMCO sets a record for highest ever net earnings since incorporation, capturing benefit
Slide 19: Operational performance review
CLASSIFICATION: C1 - CONTROLLED Operational performance review Production (MT’ 000) – 100% • 9M-21 production volumes slightly increased compared to 9M-20, mainly due to higher amperage and production of value-added products (VAP). • Q3-21 production volumes slightly increased compared to Q2-21. Sal
Slide 20: Financial performance review
CLASSIFICATION: C1 - CONTROLLED Financial performance review Share of Revenue (QR million) QAMCO’s Net Profit (QR million) • 9M-21 vs 9M-20: Share of JV’s revenue inclined, mainly due to • 9M-21 vs 9M-20: Profitability improved due to continued uptick in positive trends in selling prices and shiftin
Slide 21: Net Profit Variance Analysis
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis (Amounts in QR’ million) QAMCO reported a net profit of QR 521 million, an increase in profitability by 4,145% compared to 9M-20. QAMCO’s 9M-21 results were affected by Joint Venture performance mainly due to: Favorable movements a) High
Slide 22: Analysis of Selling Prices
CLASSIFICATION: C1 - CONTROLLED Analysis of Selling Prices Selling prices ($/MT) – 9M-21 vs 9M-20 LME Premium LME Price difference o Average selling prices in 2021 improved LME due to persistent strength from constructive macroeconomic LME environment leading to a renewed demand for aluminium produc
Slide 23: Analysis of EBITDA margins
CLASSIFICATION: C1 - CONTROLLED Analysis of EBITDA margins QAMCO’s JV EBITDA margins continue to remain robust & resilient 3,100 46.5% 48% Primary Aluminium Price (USD/ton) QAMCO’s JV EBITDA Margins (%) 2,900 2,700 41.0% 41.4% 43% 2,500 36.8% 38% 2,300 2,100 33% 1,900 29.7% 28.3% 28.3% 1,700 27.2% 2
Slide 24: Geographic analysis – QAMCO JV revenue
CLASSIFICATION: C1 - CONTROLLED Geographic analysis – QAMCO JV revenue Asia remained QAMCO JV’s largest market, while its presence in US and Europe continued to be substantial Europe 20% Qatar North America 4% Asia 18% 58% 24 QAMCO, IR Presentation, 9M-21
Slide 25: QAMCO JV revenue – product mix
CLASSIFICATION: C1 - CONTROLLED QAMCO JV revenue – product mix (%) Extrusion ingots along with foundry alloys (together referred to as value added or premium products) remains key products for QAMCO’s JV. 9M-21 QAMCO JV Sales 9M-20 QAMCO JV Sales Volumes – Product mix (%) Volumes – Product mix (%)
Slide 26: Market Statistics and dividend distribution
CLASSIFICATION: C1 - CONTROLLED Market Statistics and dividend distribution 26
Slide 27: Market Statistics and Dividends
CLASSIFICATION: C1 - CONTROLLED Market Statistics and Dividends 12.00 Market Cap (QR Billion) QAR 10.3 bn 10.00 8.00 6.00 4.00 2.00 - May-19 Mar-19 Apr-19 Jul-19 Mar-20 Apr-20 May-20 Jul-20 Mar-21 Apr-21 May-21 Jul-21 Feb-19 Oct-19 Feb-20 Oct-20 Feb-21 Nov-19 Dec-19 Nov-20 Dec-20 Jan-19 Jun-19 Aug-1
Slide 28: CAPEX and Cash Flows (2021-2025)
CLASSIFICATION: C1 - CONTROLLED CAPEX and Cash Flows (2021-2025) 28
Slide 29: CAPEX and Cash Flows (2021-2025) – QAMCO's Share
CLASSIFICATION: C1 - CONTROLLED CAPEX and Cash Flows (2021-2025) – (QAMCO’s Share) CAPEX: o Planned CAPEX (2021-25) include routine operations such as pot relining and other maintenance pertaining to power plant and anode plant. Cash Flows: Cash Flows (QAR’ m) 2021 2022 2023 2024 2025 o Impressive c
Slide 30: Historical performance (2019 - 2020)
CLASSIFICATION: C1 - CONTROLLED Historical performance (2019 - 2020) 30
Slide 31: Key Performance Indicators
CLASSIFICATION: C1 - CONTROLLED Key Performance Indicators Production (MT’000) – 100% Sales Volumes (MT’000) – 100% Selling Prices ($ / MT) • 2020 Production and sales volumes remained flat in comparison to 2019. • Selling prices remained under pressure in 2020, due to adverse macroeconomic conditio
Slide 32: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure 32
Slide 33: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure Board structure Board committees • QAMCO Board of Directors consists of six (6) • The Board of Directors established Board Directors, all were appointed by the Special Committees and Special Committees to carry Shareholder “QatarEnergy”. out speci
Slide 34: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure Remuneration Shareholders’ rights Board of Directors • The Company’s Articles of Associations provide for • The Company has developed a periodically the rights of shareholders, particularly the rights to revisited remuneration policy for Board mem
Slide 35: Thank You
THANK YOU For further information, Qatar Aluminium Manufacturing Company can be contacted as follows: Telephone: (+974) 4013 2277 Fax: (+974) 4013 9750 E-mail: qamco.investorrelations@qp.com.qa or qamco@qp.com.qa Address: P. O. Box 3212, Doha, State of Qatar. Please refer to www.qamco.com.qa for the
Qatar Aluminium Manufacturing Company — Q3 2021 Earnings Presentation on 6ix