Qatar Aluminium Manufacturing Company · QSE:QAMC
Qatar Aluminium Manufacturing — FY2022 Earnings Presentation
36 slides from Qatar Aluminium Manufacturing's earnings presentation, Dec 31, 2022
Slide 1: Qatar Aluminium Manufacturing Company Investor Relations Presentation
Qatar Aluminium Manufacturing Company Investor Relations Presentation 31 December 2022
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 year ended 31 December 2022) 8. CAPEX (2023F – 2027F) 9. Market statistics and divide
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 Aluminium 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 Exchang
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 one of the industry’s most competitive profit margins and
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 State of the art production facility and technology deployed Low cost Assured feedstock supply and competitively priced energy smelter High focus on Health and Safety and Environment Proven Positive share of operating profit & competitive
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 35.2% QAMCO ranks #1 QAMCO 40.0% QAMCO ranks #1 Peer 1 33.7% Peer 1 34.0% Peer 2 33.4% Peer 2 27.8% Peer 3 27.2% Peer 3 27.6% Peer 4 26.1% Peer 4 24.9% Note: Data as of
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) 4500 Aluminium LME spot prices ($/MT) 750 Alumina spot prices ($/MT) 4000 650 3500 3000 550 2500 450 2000 350 1500 1000 250 Jan-20 Dec-20 Dec-21 Dec-22 02/01/2020 02/01/2021 02/01/2022 02/01/2020 Jan-
Slide 17: QAMCO results (For the year ended December 2022)
CLASSIFICATION: C1 - CONTROLLED QAMCO results (For the year ended 31 December 2022) 17
Slide 18: YE-22 results at a Glance
CLASSIFICATION: C1 - CONTROLLED YE-22 results at a Glance Growth vs. YE-21 Revenue 28% EBITDA 6% Net profit 10% QR 3.98 billion QR 1.46 billion QR 919 million EBITDA Margin: 37% EPS: QR 0.165 RoAE: 13.9% ▪ QAMCO sets a record with highest yearly net income since incorporation, despite an uneven mark
Slide 19: Operational Performance review
CLASSIFICATION: C1 - CONTROLLED Operational Performance review Production (MT’ 000) – 100% • YE-22 production volumes slightly inched higher compared to YE-21, due to increase in liquid production amid higher amperage. • 4Q-22 production volumes remained flat compared to 3Q-22. Sales volumes (MT’ 00
Slide 20: Financial performance review
CLASSIFICATION: C1 - CONTROLLED Financial performance review Share of Revenue (QR million) QAMCO’s Net Profit (QR million) • YE-22 vs YE-21: Share of JV’s revenue inclined, mainly due to • YE-22 vs YE-21: Profitability improved mainly due to continued uptick positive selling price trajectories and s
Slide 21: Net Profit Variance Analysis YE-22 vs. YE-21
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis YE-22 vs. YE-21 (Amounts in QR’ million) QAMCO reported a net profit of QR 919 million, an increase in profitability by 10% compared to YE-21. QAMCO’s YE-22 results were impacted by JV’s performance mainly due to: Favorable movements a)
Slide 22: Net Profit Variance Analysis 4Q-22 vs. 3Q-22
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 4Q-22 vs. 3Q-22 (Amounts in QR’ million) QAMCO reported a net profit of QR 116 million, a decline in net profits by 39% compared to 3Q-22. QAMCO’s 4Q-22 results were impacted by JV’s performance mainly due to: Unfavorable movements a) Lo
Slide 23: Analysis of Selling Prices
CLASSIFICATION: C1 - CONTROLLED Analysis of Selling Prices Selling prices ($/MT) – YE-22 vs YE-21 o Average selling prices improved on a year- on-year basis, underpinned by continued strength from constructive macroeconomic LME Price difference context carried forward from the latter part of last ye
Slide 24: Analysis of EBITDA margins
CLASSIFICATION: C1 - CONTROLLED Analysis of EBITDA margins Despite macroeconomic volatilities, QAMCO’s JV EBITDA margins continue to remain robust & resilient Recent decline in EBITDA margins is mainly due to declining selling prices, while, raw material price remained stronger despite recent shortf
Slide 25: Geographic analysis – QAMCO JV revenue
CLASSIFICATION: C1 - CONTROLLED Geographic analysis – QAMCO JV revenue Asia remained QAMCO JV’s largest market, while its presence in Europe and US continued to be substantial Europe 23% Qatar North America 4% Asia 22% 51% 25 QAMCO, IR Presentation, YE-22
Slide 26: 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. YE-22 QAMCO JV Sales YE-21 QAMCO JV Sales Volumes – Product mix (%) Volumes – Product mix (%)
Slide 27: Market Statistics and dividend distribution
CLASSIFICATION: C1 - CONTROLLED Market Statistics and dividend distribution 27
Slide 28: Market Statistics and Dividends
CLASSIFICATION: C1 - CONTROLLED Market Statistics and Dividends 16.00 Market Cap (QR Billion) 14.00 12.00 10.00 QAR 8.5 bn 8.00 6.00 4.00 2.00 - Dividend distribution since incorporation Dividend - Dividend - Dividend - Dividend - Total 2019 2020 2021 2022 * QR 167.4 m QR 195.3 m QR 446.4 m QR 502.2
Slide 29: CAPEX (2023-2027)
CLASSIFICATION: C1 - CONTROLLED CAPEX (2023-2027) 29
Slide 30: CAPEX (2023-2027) – (QAMCO's Share)
CLASSIFICATION: C1 - CONTROLLED CAPEX (2023-2027) – (QAMCO’s Share) CAPEX: o Planned CAPEX (2023-27) include routine operations such as pot relining and other maintenance pertaining to power plant and anode plant. CAPEX overview 2023 2024 2025 2026 2027 (QAR’ m) Pot relining 72 19 31 79 133 CAPEX <$
Slide 31: Historical performance (2019 - 2022)
CLASSIFICATION: C1 - CONTROLLED Historical performance (2019 - 2022) 31
Slide 32: Key Performance Indicators
CLASSIFICATION: C1 - CONTROLLED Key Performance Indicators Production (MT’000) – 100% Sales Volumes (MT’000) – 100% Selling Prices ($ / MT) 666 • 2022 Production remained highest since QAMCO’s incorporation. • 2022 Selling prices remained highest amid constructive macroeconomic context. Share of Rev
Slide 33: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure 33
Slide 34: 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 35: 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 36: 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@qataenergy.qa or qamco@qataenergy.qa Address: P. O. Box 3212, Doha, State of Qatar. Please refer to www.qamco.com.qa
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