Aluminium Bahrain B.S.C · BAHRAIN:ALBH

Aluminium Bahrain B.S.C — Q3 2012 Earnings Presentation

32 slides from Aluminium Bahrain B.S.C's earnings presentation, 2012

  1. Slide 1: Q3 2012 IR Presentation

    Aluminium for the world Q3 2012 IR PRESENTATION albasmelter.com

  2. Slide 2: Disclaimer

    Aluminium for the world Disclaimer 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 y

  3. Slide 3: Contents

    Aluminium for the world Contents 1- Industry Highlights 2- Alba Highlights 3- Q3 2012 Results 4- Industry Perspectives in 2012 5- 2012 Alba Priorities albasmelter.com "

  4. Slide 4: Industry Highlights

    Po INDUSTRY HIGHLIGHTS

  5. Slide 5: Aluminium - Physical Demand Remains Very Tight

    Aluminium for the world INDUSTRY HIGHLIGHTS Q3 Q3 2012 Aluminium - Physical Demand Remains Very Tight (Reference Period: July - September) World consumption up by 3.9% North America - healthy demand (+5.4%) driven by automative and construction sectors Asian demand stable and is driven by China (+8%

  6. Slide 6: Production Evolution

    Aluminium for the world INDUSTRY HIGHLIGHTS Q3 Q3 2012 Production Evolution World production down by 2.4% and is expected to rise in the coming years with Greenfield projects ramp-up in Middle East, Russia and India China output at 2.2 million metric tonnes (+11.4%) driven by government support on p

  7. Slide 7: LME & Premiums

    Aluminium for the world INDUSTRY HIGHLIGHTS Q3 2012 LME & Premiums LME inventories almost stable at 5 million metric tonnes 3Q12 Cash-average was $1,922/t vs. $2,400/t in 3Q11 Physical premiums at record high across the globe: Major Japanese Ports at $205/t vs. an average of $121/t in 3Q11 DDP Rotte

  8. Slide 8: Alba Highlights

    © > ALBA HIGHLIGHTS

  9. Slide 9: Q3 2012 Operational Highlights/Achievements

    Aluminium for the world Alba Highlights Q3 2012 - Operational Highlights/Achievements Tim Murray Appointed CEO Effective October 1 Laurent Schmitt assigned to work as advisor to the Chairman of Alba’s Board of Directors on Bahrain downstream development Alba Settles RICO Case with Alcoa Settlement ha

  10. Slide 10: STAR Operational Improvement Program

    Aluminium for the world Alba Highlights Q3 2012 - Operational Highlights/Achievements STAR Operational Improvement Program Additional recurrent savings of US$2 million recorded in 3Q12 vs. a full-year target of US$30 million Alba was able to increase YTD production by 4,405 mt with sales stable desp

  11. Slide 11: Raw Materials, Safety and Future Growth

    Aluminium for the world Alba Highlights Q3 2012 - Operational Highlights/Achievements Raw Materials 1st round of meetings for 2013 supply requirements held in September AlbaSafeWay Program Allocated Safety Coordinators to report to Line Management Launch of plant wide equipment safety audits Combine

  12. Slide 12: Q3 & YTD 2012 Financial Key Performance Indicators

    Aluminium for the world Alba Highlights Q3 & YTD 2012- Financial Key Performance Indicators Adjusted EBITDA driven by low LME prices & higher energy cost Q3: US$35 million down by 79% YoY YTD: US$236 million down by 54% YoY Adjusted Net Income driven by low LME prices and unrealized derivative gains

  13. Slide 13: Q3 2012 Results

    © > Q3 2012 RESULTS

  14. Slide 14: Sales Analysis 3Q12 vs. 3Q11

    Aluminium for the world Q3 2012 Results STRONG PHYSICAL DEMAND DESPITE LOW LME Sales Analysis 3Q12 vs. 3Q11 Higher Premium Offset by Lower LME Prices 3Q12 vs. 3Q11 - Metal Sales Bridge (US$M) 600 130 1 1 6* 400 582 449 200 0 Sales 3Q11 LME Product Mix Pricing Power Volume Sales 3Q12 albasmelter.com H

  15. Slide 15: Maintain Optimum Product Mix

    Aluminium for the world Q3 2012 Results STRONG PHYSICAL DEMAND DESPITE LOW LME Maintain Optimum Product Mix Maximize Physical Demand Strength Through Value-Added Product Base 3Q12 vs. 3Q11 - Sales by Product line Bridge Premium Above LME Trend USD (Per MT) (000’s MT) 250 0 0 3 200 175 221 219 125 16

  16. Slide 16: Cost Analysis Q3 2012 vs. 3Q11

    Aluminium for the world Q3 2012 Results LOW LME PULLS DOWN RESULTS Cost Analysis 3Q12 vs. 3Q11: Higher Energy Costs Offset by Lower Raw Material Prices 3Q12 vs. 3Q11 - Direct Costs Bridge (US$M) 450 20 3 20 0 10 5 34 1 300 384 398 150 Direct Cost 3Q11 RM Price RM Consumption Energy Price Energy Inven

  17. Slide 17: STAR Savings YTD vs. Target 2012

    Aluminium for the world Q3 2012 Results LOW LME PULLS DOWN RESULTS STAR Saving -YTD vs. Target 2012: YTD vs. Target 2012 - STAR cumulative Savings (US$M) 35 18 30.0 14 12 5 0 Q1 Actual Q2 Actual Q3 Actual Year End Target Target Year-End Target albasmelter.com $2 million - additional savings generate

  18. Slide 18: Adjusted EBITDA Bridge 3Q12 vs. 3Q11

    Aluminium for the world Q3 2012 Results LOW LME PULLS DOWN RESULTS Adjusted EBITDA Bridge Gap Analysis 3Q12 vs. 3Q11: Alba Still Generating Cash Despite Low LME Prices 3Q12 vs. 3Q11 - EBITDA Bridge (US$M Adjusted) EBITDA 27.3% 160 133 80 159 7 EBITDA 7.7% 13 16 1 35 0 EBITDA 3Q11 Metal Sales Other S

  19. Slide 19: Cash Flow Bridge 3Q12 vs. 3Q11

    Aluminium for the world Q3 2012 Results LOW LME PULLS DOWN RESULTS Cash Flow Bridge 3Q12 vs. 3Q11: Alba Still Generating Cash Despite Low LME Prices 2Q12 to 3Q12 Cash Flow Bridge (USD M) Free Cash Flow (USD M) 300 11 160 43 18 53 200 31 80 154 100 202 226 155 37 0 0 Cash Balance CF from WC CAPEX Pay

  20. Slide 20: Financial Summary Q3 2012

    Aluminium for the world Q3 2012 Results LOW LOW L LME ME P PULLS ULLS D DOWN OWN F FINANCIAL INANCIAL R RESULTS ESULTS 3Q12 vs. 3Q11: Financial Summary Q3 2012 Q3 2011 YTD 2012 YTD 2011 Sales 457 582 1,476 1,805 EBITDA 35 159 236 509 EBITDA % 7.7% 27.3% 16.0% 28.2% EBIDTA (Excl. One time Cost) 35 16

  21. Slide 21: Industry Perspectives in 2012

    INDUSTRY PERSPECTIVES IN 2012

  22. Slide 22: Low LME Levels Continue to Drag on Industry Profitability

    Aluminium for the world Industry Perspectives in 2012 Low LME Levels Continue to Drag on Industry Profitability Key factors to be observed World awaits conclusion of US Presidential election Majority of the industry is operating cash negative Record premiums continue on the back of strong physical d

  23. Slide 23: Raw Materials Price Trends

    Aluminium for the world Industry Perspectives in 2012 Raw Materials Price Trends Alumina spot market expected to sustain at current price levels Green Coke market continues to soften thus creating spot market opportunities Liquid Pitch and Aluminium Fluoride prices have reduced slightly and are expe

  24. Slide 24: 2012 Alba Priorities

    Po 2012 ALBA PRIORITIES

  25. Slide 25: 2012 Alba Priorities

    Aluminium for the world 2012 Alba Priorities Transform Safety Culture and Build Foundation for Line 6 Expansion Project Accelerate AlbaSafeWay Program Leverage benefits of new Alcoa agreement 2012 STAR Program: Achieve additional cash savings of US$ 30 million in 2012 Capture benefits of high physic

  26. Slide 26: Appendix

    APPENDIX

  27. Slide 27: YTD 2012 Sales Analysis

    Aluminium for the world YTD 2012 Results STRONG PHYSICAL DEMAND DESPITE LOW LME Sales Analysis YTD12 vs. YTD11 Higher Premium Offset by Lower LME Prices YTD12 vs. YTD11 - Metal Sales Bridge (US$M) 1,800 321 1 0 4* 1,200 1,781 1,458 600 0 Sales YTD11 LME Product Mix Pricing Power Volume Sales YTD12 al

  28. Slide 28: YTD 2012 Product Mix

    Aluminium for the world YTD 2012 Results STRONG PHYSICAL DEMAND DESPITE LOW LME Maintain Optimum Product Mix Maximize Physical Demand Strength Through Value-Added Product Base YTD 12 vs. YTD 11 - Sales by Product Premium Above LME Trend USD (Per MT) line Bridge (000’s MT) 700 10 5 6 200 350 666 665

  29. Slide 29: YTD 2012 Cost Analysis

    Aluminium for the world YTD 2012 Results LOW LME PULLS DOWN FINANCIAL RESULTS Cost Analysis YTD 12 vs. YTD 11: Higher Energy Costs Offset by Lower Raw Material Prices YTD 12 vs. YTD 11 - Direct Costs Bridge (US$M) 29 12 1,250 1 10 63 70 2 50 1,000 750 55 1,164 1,157 500 250 Direct Cost 3Q11 RM Price

  30. Slide 30: YTD 2012 Adjusted EBITDA Bridge

    Aluminium for the world YTD 2012 Results LOW LME PULLS DOWN FINANCIAL RESULTS Adjusted EBITDA Bridge Gap Analysis YTD12 vs. YTD11: Alba Still Generating Cash Despite Low LME Prices YTD12 vs. YTD11 - EBITDA Bridge (US$M Adjusted) 550 EBITDA 28.2% 400 323 509 10 EBITDA 16.0% 250 7 43 236 10 100 EBITDA

  31. Slide 31: YTD 2012 Cash Flow Bridge

    Aluminium for the world YTD 2012 Results LOW LME PULLS DOWN FINANCIAL RESULTS Cash Flow Bridge YTD12 vs. YTD11: Alba Still Generating Cash Despite Low LME Prices YTD12 Cash Flow Bridge (USD M) Free Cash Flow (USD M) 12 550 35 500 250 203 275 134 250 455 265 227 155 0 0 Cash Balance CF from WC CAPEX

  32. Slide 32: For More Information, Contact Us

    FOR MORE INFORMATION, CONTACT US ON: IR@alba.com.bh

Aluminium Bahrain B.S.C. (Alba) — Q3 2012 Earnings Presentation on 6ix