Aluminium Bahrain B.s.c · BAHRAIN:ALBH
Aluminium Bahrain B.s.c — Q1 2024 Earnings Presentation
31 slides from Aluminium Bahrain B.s.c's earnings presentation, May 2024
Slide 1: Investor Relations Presentation Q1 2024
INVESTOR RELATIONS PRESENTATION Q1 2024
Slide 2: Disclaimer
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 you in connection with th
Slide 3: Contents
CONTENTS 01 02 03 Industry Alba Q1 2024 Highlights Highlights Results 04 05 06 Industry Perspectives 2024 Alba Appendix in 2024 Priorities Page 3
Slide 4: Industry Highlights
01 INDUSTRY HIGHLIGHTS1 1 Industry Highlights are based on CRU Market Intel & others Page 4
Slide 5: Global Economy Bounces Back, Market Demand (+5% YoY)
Global Economy Bounces Back, Market Demand (+5% YoY) The global economy is holding up better than expected, even with rising interest rates. Industrial production is poised for a comeback with key indicators pointing towards a positive outlook. While inflation is on a downward trend, progress is slo
Slide 6: Global Aluminium Supply (+3% YoY), Mixed Signals Amid Geopolitical Tensions
Global Aluminium Supply (+3% YoY), Mixed Signals Amid Geopolitical Tensions China's production growth muted by hydropower shortage. Despite the restart of Yunnan smelters, Chinese aluminium supply climbed by 4% YoY. Middle East witnessed a rise in supply, +4% YoY, bolstered by a 29% surge from Saudi
Slide 7: LME Price & Premiums
LME Price & Premiums Market uncertainty surrounding inflation and policy support measures pushed LME prices down to US$2,200/t in Q1 2024, representing a drop of 8% YoY. Prices fluctuated between US$2,110/t (lowest on 22 Jan’2024) and US$2,337/t (highest on 02 Jan’2024). LME inventories remain at lo
Slide 8: Alumina Price: 16% of LME Price
Alumina Price: 16% of LME Price [US$362/t] LME Price Trend (US$/t) 2,600 2,399 2,263 2,200 2,155 2,190 2,200 1,800 1,400 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Alumina Price Index Trend (% of LME) 19% 17% 17% 16% 16% 16% 15% 13% 10% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Page 8
Slide 9: Alba Highlights
02 ALBA HIGHLIGHTS1 1 Alba Highlights relate to Alba official news Page 9
Slide 10: Safety in Numbers
Safety in Numbers # Total Injuries 64 59 56 # Recordable Injuries 49 48 # LTIs 40 35 34 32 32 24 16 8 5 0 2019 2020 2021 2022 2023 Q1 2024 12 12 11 9 9 1 0 1 0 1 1 0 18 Million Safe Hours w/o LTI on 10 May 2024 Page 10
Slide 11: Alba Celebrates ESG Achievements and Plans Future Course
Alba Celebrates ESG Achievements and Plans Future Course Safety First. Safety Always Launch of plant-wide ‘SAFE and Healthy Ramadan’ Campaign. Empowering People Nine employees earned Professional Diploma in Waste Management from Arabian Gulf University (AGU). 12 exceptional employees, including 6 wo
Slide 12: CEO 2024 Objectives
alga se Aluminium for the world Aluminium Bahrain BSG. (Alba) «-p-c% G2 >4!! suit!
Slide 13: ESG Journey by 2035
ESG Journey by 2035 Decarbonisation Green Energy & Aluminium Circular Economy & Secondary Aluminium Employee Welfare Collaboration & Partnership Transparency, Communications & Due Diligence Q2 2024 Q4 2024 Q2 2027* 2025-2027 2030 Alba Solar Efficiency Upgrades Recycled Government Farm Material Colla
Slide 14: Major Operational Highlights
Major Operational Highlights Sales volume topped 363,283 MT, up by 1% YoY, while Production rose to 405,893 MT, reflecting a 2% YoY growth. Value Added Sales (VAP) averaged 70% of total shipments, corresponding to +10% YoY [VAP: 252,772 MT in Q1'24 versus 230,491 MT in Q1'23]. Alba secured a strateg
Slide 15: e-Al Hassalah Programme (2024 – 2026)
e-Al Hassalah Programme (2024 – 2026) Description A combination of process e-Al Hassalah (US$ Million) improvement/optimization methods and Industry 4.0 focused to improve EBITDA 160 [65% Bottom-up Projects/Ideas] 150 Industry 4.0 Roadmap, Projects and business case evaluation and validation 120 com
Slide 16: Financial Key Performance Indicators – Q1 2024
Financial Key Performance Indicators – Q1 2024 EBITDA driven primarily by Free Cash Flow1 impacted lower LME price & premiums by working capital changes US$180 million down US$65 million down Q1: US$102 million by 22% YoY by 48% YoY up by 31% YoY Net Income driven by lower EBITDA 1 Free Cash Flow ex
Slide 17: Q1 2024 Results
03 Q1 2024 RESULTS Refer to Alba’s Q1 2024 Interim Condensed Consolidated Financial Statements Page 17
Slide 18: Higher Sales Volume Helped Mitigate Impact of Lower LME Prices & Premiums
Aluminium Industry: Supply Chain Disruptions & Geopolitical Tensions Weigh on Sentiment Higher Sales’ Volume Helped Mitigate Impact of Lower LME Prices & Premiums Metal Sales’ Bridge (US$M) – Q1 2024 vs. Q1 2023 1,000 85 2 10 33 800 600 984 by 8 % YoY in LME Price by 27% YoY 878 in Premiums 400 200
Slide 19: Higher VAP, Higher Liquid Metal, Lower Commodities Volume
Aluminium Industry: Supply Chain Disruptions & Geopolitical Tensions Weigh on Sentiment Higher VAP │ Higher Liquid Metal │ Lower Commodities’ Volume Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q1 2024 vs. Q1 2023 400 2 350 22 21 27% 250 300 360 363 311 150 226 200 50 Sal
Slide 20: Lower Raw Material Prices Helped Control Direct Costs
Aluminium Industry: Supply Chain Disruptions & Geopolitical Tensions Weigh on Sentiment Lower Raw Material Prices Helped Control Direct Costs Despite Higher Costs in Other Areas Direct Cost Bridge (US$M) – Q1 2024 vs. Q1 2023 725 35 7 0 7 18 39 12 650 710 680 575 500 Direct Cost RM RM Energy Other A
Slide 21: EBITDA Bridge Gap Analysis – Q1 2024 vs. Q1 2023
Aluminium Industry: Supply Chain Disruptions & Geopolitical Tensions Weigh on Sentiment EBITDA Bridge Gap Analysis – Q1 2024 vs. Q1 2023 Lower EBITDA Margin at 20% Owing to Lower Top-Line EBITDA Bridge (US$M) – Q1 2024 vs. Q1 2023 300 EBITDA 23% EBITDA 20% 200 106 14 30 12 230 100 180 0 EBITDA Metal
Slide 22: Cash-Flow Bridge FY 2023 to Q1 2024
Aluminium Industry: Supply Chain Disruptions & Geopolitical Tensions Weigh on Sentiment Cash-Flow Bridge FY 2023 to Q1 2024 FY 2023 to Q1 2024 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 400 120 33 300 100 42 23 177 8 60 80 200 60 102 216 40 78 100 159 20 0 0 Cash CF WC Capital Block 4 Net Debt Pa
Slide 23: Commodity Price Weakness Impact on Financial Performance
Commodity price weakness (LME & premiums) Impact Financial Performance Particulars Q1 2024 Q1 2023 (Price-to-Earnings) P/E Ratio FY23 14 Revenue1 (US$M) 890 984 1Q24 71 EBITDA (US$M) 180 230 EBITDA% 20% 23% Profit (US$M) 65 126 (Net Debt to EBITDA) Leverage Ratio FY23 1.74 Gain/(Loss) Unrealised 1 0
Slide 24: Industry Perspectives in 2024
04 INDUSTRY PERSPECTIVES1 IN 2024 1 Industry Perspectives are based on CRU Market Intel Page 24
Slide 25: Aluminium Market Outlook: Uncertainties Cloud Short-Term Prospects
Aluminium Market Outlook: Uncertainties Cloud Short-Term Prospects Macroeconomic Headwinds: Concerns over persistent inflation and the effectiveness of government support measures continue to cast a shadow on the aluminium market. Strong dollar may limit LME price increases. Demand, A Delicate Balan
Slide 26: Industry Perspectives in 2024
Industry Perspectives in 2024 Feedstock Trends (Al₂O₃, AlF3 and GPC) Alumina prices may see modest hikes due to increased short-term demand from China. Aluminium Fluoride prices are likely to experience a slight upward correction due to reduced supply. Carbon product prices (GPC, CPC, and Anodes) ar
Slide 27: 2024 Alba Priorities
05 2024 ALBA PRIORITIES 1 Based on Alba’s 5-Year Strategic Initiatives Page 27
Slide 28: Alba: Safe, Sustainable, Successful
Alba: Safe, Sustainable, Successful Leading the Way: Safety First, Sustainability Always Aligned with Bahrain's objective of net-zero emissions by 2060, Alba embeds sustainability principles in all operations, minimizing environmental impact from raw material sourcing to product delivery. Operationa
Slide 29: Appendix
06 APPENDIX Page 29
Slide 30: Alba Shareholder's Structure
Alba Shareholder’s Structure Alba was converted into a Bahrain Public Joint Stock Company on 23 November 2010 Alba shares are listed on two exchanges: Ordinary Shares on Bahrain Bourse and Global Depository Receipts (GDRs) on the London Stock Exchange – Alternative Investment Market Alba Ticker [BHB
Slide 31: For more information, please contact us
For more information, please contact us on: IR@alba.com.bh InvestorRelations@alba.com.bh Alba4World Alba4World user/Alba4World Alba4World Page 31
Aluminium Bahrain B.S.C. (Alba) — Q1 2024 Earnings Presentation on 6ix