Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q3 2015 Earnings Presentation
31 slides from Aluminium Bahrain B.S.C's earnings presentation, 2015
Slide 1: Investor Relations Presentation Q3 2015
Aluminium for the world INVESTOR RELATIONS PRESENTATION Q3 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 Q3 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 - Q3 2015: Global Physical Demand
Aluminium for the world Industry Highlights - Q3 2015 Global Physical Demand Still Growing World consumption up by +5% YoY Asian demand up by 7% YoY supported by softer consumption in China (+9% YoY) on the back of government stimulus MENA demand remains healthy (+6% YoY) - driven by major infrastru
Slide 6: Industry Highlights - Q3 2015: Production Evolution
Aluminium for the world Industry Highlights - Q3 2015 Production Evolution World production up by 7% YoY Chinese output up despite slower demand growth (+8 million metric tonnes, +12% YoY) supported by new capacity ramp-ups from both greenfield & brownfield expansions World market in surplus with Ch
Slide 7: Industry Highlights - Q3 2015: LME & Premiums
Aluminium for the world Industry Highlights - Q3 2015 LME & Premiums LME inventories at 3.1 million metric tonnes in September 3Q15 cash-average was $1,590/t with LME ranging between $1,486/t on August 24 (lowest since July 2009) and $1,693/t on July 2 Regional collapse in physical premiums ($/t) Ma
Slide 8: Alba Highlights
Aluminium for the world 02 ALBA HIGHLIGHTS
Slide 9: Alba Highlights - Operational Highlights & Achievements
Aluminium for the world Alba Highlights - Q3 2015 Operational Highlights & Achievements Significant boost in Summer Safety campaigns: “Alba wins the 2015 RoSPA Gold Award for Occupational Health and Safety” Alba was able to increase its sales (metric tonne) by 2.5% YoY Production up by 2.9% YoY due
Slide 10: Alba Highlights - Q3 & YTD 2015 Financial KPIs
Aluminium for the world Alba Highlights - Q3 & YTD 2015 Financial Key Performance Indicators Adjusted EBITDA down due to lower LME prices Q3: US$72 million down by 47% YoY YTD: US$343 million up by 1% YoY Adjusted Net Income down driven by lower EBITDA levels in Q3 Q3: US$21 million down by 73% YoY
Slide 11: Project Titan - Improve Cash Cost by January 2016
Aluminium for the world Alba Highlights - Q3 2015 Project Titan - Improve Cash Cost of $150/t by January 2016 YTD 2015: Project Titan on Track with Projected Savings of $135/t Project Titan - US$ per MT 150 135 100 2014 Target January 2016 YTD 2015 Final Target 1. Savings from Project Titan represen
Slide 12: Sound Balance Sheet & Ready for Line 6 Financing
Aluminium for the world Alba Highlights - Q3 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: Q3 2015 Results
Aluminium for the world 03 Q3 2015 RESULTS
Slide 14: Metal Sales Bridge Q3 2015 vs Q3 2014
Aluminium for the world Q3 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Lower LME Prices Partially Offset by Higher Sales Volume & Premiums 600 Q3 2015 vs. Q3 2014 - Metal Sales Bridge (US$M) 500 80 14 14 1 531 400 477 300 Product Mix Metal Sales LME Pricing Power
Slide 15: Sales by Product Line and Premiums
Aluminium for the world Q3 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Favourable Management Performance & Higher Premiums 3Q15 vs. 3Q14 Premium Above LME Trend US$ Per MT Sales by Product Line Bridge (MT’000) 250 400 5 3 3 225 385 239 233 331 200 200 Sales Value
Slide 16: Cost Analysis 3Q15 vs 3Q14
Aluminium for the world Q3 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Cost Analysis 3Q15 vs. 3Q14 Q3 2015 vs. Q3 2014 - Direct Cost Bridge (US$M) 500 2 9 4 51 15 0 400 2 11 442 300 408 200 Direct Cost RM RM Energy Alumina Inventory Plant One-Off Line-6 Direct Cos
Slide 17: Adjusted EBITDA Margin at 14.6%
Aluminium for the world Q3 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Adjusted EBITDA Margin at 14.6% Q3 2015 vs. Q3 2014 - EBITDA Bridge (US$M) 150 EBITDA 22.6% 54 100 5 EBITDA 14.6% 1 134 49 50 35 72 0 EBITDA Q3 2014 Metal Other Sales Direct Cost Derivatives Se
Slide 18: Cash Flow Bridge 3Q15 vs 2Q15
Aluminium for the world Q3 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Cash Flow Bridge - 3Q15 vs. 2Q15 Maintain Solid Cash Flow Despite Tough Market Conditions Q2 2015 to Q3 2015 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 20 80 300 21 69 58 225 70 150 100 119
Slide 19: Sound Management Performance Partially Offset by Lower LME Prices
Aluminium for the world Q3 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Sound Management Performance Partially Offset by Lower LME Prices Financial Summary Q3 2015 Q3 2014 YTD 2015 YTD 2014 Average Cash LME (US$/MT) 1,589 1,989 1,719 1,832 Total Sales (US$M) 490 59
Slide 20: Industry Perspectives in 2015
Aluminium for the world 04 INDUSTRY PERSPECTIVES IN 2015
Slide 21: Prices to Remain under Pressure
Aluminium for the world Industry Perspectives in 2015 Prices to Remain under pressure Key factors to be observed: LME prices to remain depressed on the back of continued pressure from Chinese exports and stronger US dollar North America deficit will rise to around 3 million metric tonnes in 2016 aft
Slide 22: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2015 Raw Materials Price Trends Alumina spot index expected to slightly decline on expectation of lower aluminium prices Green Petroleum Coke (GPC) and Liquid Pitch prices to slightly soften for the remainder of 2015 Alumina Fluoride (ALF3) to remain
Slide 23: 2015 Alba Priorities
Aluminium for the world 05 2015 ALBA PRIORITIES
Slide 24: 2015 Alba Priorities
Aluminium for the world 2015 Alba Priorities Gear for Line 6 Expansion Continuous Focus on Safety, Training & Development Initiatives Deliver on Project Titan Sustained Focus on Value-Added Sales Increase Creep Capacity with Minimal Capital Investment Line 6 Expansion Project 24
Slide 25: Appendix
Aluminium for the world 06 APPENDIX
Slide 26: YTD Metal Sales Bridge
Aluminium for the world YTD 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Favourable Management Performance & Higher Premiums YTD 2015 vs. YTD 2014 - Metal Sales Bridge (US$M) 1700 22 1500 92 46 3 1300 1100 1,533 1,468 900 700 500 Metal Sales LME Pricing Power Volum
Slide 27: YTD Sales by Product Line and Premiums
Aluminium for the world YTD 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Favourable Management Performance & Higher Premiums YTD15 vs. YTD14 Premium Above LME Trend US$ Per MT Sales by Product Line Bridge (MT’000) 500 10 1 700 1 300 600 689 699 448 320 500 100 Sale
Slide 28: Cost Analysis YTD15 vs YTD14
Aluminium for the world YTD 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Cost Analysis YTD15 vs. YTD14 YTD 2015 vs. YTD 2014 - Direct Cost Bridge (US$M) 1300 20 17 29 97 10 9 1200 11 2 1100 1000 1222 1197 900 800 Direct Cost RM RM Energy Alumina Inventory Plant One
Slide 29: YTD Adjusted EBITDA Margin at 21.9%
Aluminium for the world YTD 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Adjusted EBITDA Margin at 21.9% YTD 2015 vs. YTD 2014 - EBITDA Bridge (US$M) 400 65 EBITDA 21.9% EBITDA 20.4% 89 18 25 1 300 325 343 200 100 EBITDA YTD 2014 Metal Other Sales Direct Cost Deriv
Slide 30: Cash Flow Bridge YTD 2015 vs YTD 2014
Aluminium for the world YTD 2015 Results Aluminium Industry Challenged by Significant Drop in All-in-Prices Cash Flow Bridge - YTD 2015 vs. YTD 2014 Maintain Solid Cash Flow Despite Tough Market Conditions YTD 2014 to YTD 2015 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 500 12 160 69 400 77 341 30
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
Aluminium Bahrain B.S.C. (Alba) — Q3 2015 Earnings Presentation on 6ix