Century Aluminum Company · NASDAQ:CENX

Century Aluminum — Q2 2018 Earnings Presentation

15 slides from Century Aluminum's earnings presentation, Aug 1, 2018

  1. Slide 1: 2nd Quarter Earnings Call

    2nd Quarter Earnings Call August 1, 2018

  2. Slide 2: Cautionary Statement

    Cautionary Statement This press release and statements made by Century Aluminum Company management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 2

  3. Slide 3: Speakers

    Speakers • Mike Bless, President and Chief Executive Officer • Craig Conti, Executive Vice Present and Chief Financial Officer • Shelly Harrison, Senior Vice President, Finance and Treasurer • Peter Trpkovski, Manager, Finance 3

  4. Slide 4: Overview

    Overview • Industry fundamentals remain strong • Operations at all plants stable and financial results consistent with expectations • Hawesville restart/investment project on schedule and budget • Recovery from Sebree power equipment failure on track – cell restarts commenced • Mt Holly power negoti

  5. Slide 5: Hawesville Restart Project

    Hawesville Restart Project $160 30 150 $140 45 $120 $100 $80 $MM 25 $60 50 $40 $20 $0 3 potlines rebuild/restart Capital projects/ Rebuild 2 potlines currently Capital projects/ technology upgrades producing technology upgrades PHASE 1 PHASE 2 TOTAL Q2 '18 - Q1 '19 TBD (1) Note (1) Expected to begin

  6. Slide 6: Industry Environment

    Industry Environment Q2 2018 Supply, Demand, Balance LME, MWP, and EDPP 20,000 17,442 LME LME + MWP LME + EDPP 16,017 3,200 15,000 Primary Aluminum (kt) 9,624 2,800 LME Prices ($/T) 10,000 9,158 7,818 6,859 2,400 5,000 (466) (959) (1,425) 2,000 0 Supply Demand Balance Supply Demand Balance Supply De

  7. Slide 7: Q2 2018 vs. Q1 2018 Operations

    Q2 2018 vs. Q1 2018 Operations Hawesville Sebree Mt. Holly Grundartangi Safety Production (1) 3% -12% 0% 0% KPIs Flat Flat Flat Flat Conversion cost (2) 7% 9% -6% 3% Notes (1) Production on a tonnes per day basis (2) Excludes alumina and casting 7

  8. Slide 8: Q2 2018 Summary Results

    Q2 2018 Summary Results ($MM, except per share and tonne amounts) Q118 Q218 Income statement Shipments (tonnes) 187,238 180,220 Net sales $ 454 $ 470 Net (loss)/income (0) 19 Diluted earnings per share (0.00) 0.20 Adjusted (loss)/net income (1) (3) 31 Adjusted (loss)/earnings per share (1) (0.04) 0.

  9. Slide 9: Q2 2018 Adjusted EBITDA

    Q2 2018 Adjusted EBITDA (1) $60 8 1 54 0 1 $50 27 2 $40 $30 $MM 22 $20 $10 $0 3/31/2018 LME / Regional Volume / Sales Alumina and Power Other Operating Other, Net 6/30/2018 Premiums Mix Other Raw Costs Materials Note (1) See reconciliation to comparable GAAP financial measure in appendix 9

  10. Slide 10: Q2 2018 Cash Flow

    Q2 2018 Cash Flow $190 54 $180 6 $170 9 $160 10 3 $150 $MM $140 131 $130 124 33 $120 $110 $100 3/31/2018 Adjusted Capex Hawesville Interest Taxes Working 6/30/2018 EBITDA(1) restart Capital/Other Note (1) See reconciliation to comparable GAAP financial measure in appendix 10

  11. Slide 11: Appendix: Non-GAAP Financial Measures

    Appendix Non-GAAP Financial Measures Adjusted EBITDA, adjusted net income and adjusted earnings per share are non-GAAP financial measures that management uses to evaluate Century's financial performance. These non-GAAP financial measures facilitate comparisons of this period’s results with prior per

  12. Slide 12: Adjusted Net Income Non-GAAP Reconciliation

    Adjusted Net Income Non-GAAP Reconciliation Q118 Q218 $MM EPS $MM EPS Net income/(loss) as reported $ (0.3) $ (0.00) $ 19.4 $ 0.20 Lower of cost or NRV inventory adjustment (3.2) (0.03) - - Sebree equipment failure - - 8.5 0.09 Hawesville restart - - 3.0 0.03 Adjusted net income/(loss) $ (3.5) $ (0.

  13. Slide 13: Adjusted EBITDA Non-GAAP Reconciliation

    Adjusted EBITDA Non-GAAP Reconciliation ($MM) Q118 Q218 Net (loss)/income as reported $ (0.3) $ 19.4 Interest expense 5.5 5.6 Interest income (0.5) (0.5) Net gain on forward and derivative contracts (0.7) (1.2) Other expense/(income) - net 1.1 (2.1) Income tax (benefit)/expense (1.0) 2.3 Equity in e

  14. Slide 14: For Additional Information

    For Additional Information Peter Trpkovski Finance Manager peter.trpkovski@centuryaluminum.com 312-696-3112 (Office) Century Aluminum Company One South Wacker Dr, Suite 1000 Chicago, IL 60606 312-696-3102 (Fax) www.centuryaluminum.com 14

  15. Slide 15: CenturyAuminum

    CenturyAuminum

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