Aluminium Bahrain B.s.c · BAHRAIN:ALBH
Aluminium Bahrain B.s.c — Investor Presentation (February 2024)
41 slides from Aluminium Bahrain B.s.c's investor presentation, February 2024
Slide 1: Investor Relations Presentation 2023
INVESTOR RELATIONS PRESENTATION 2023
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 2023 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 Page 4
Slide 5: World Market Demand +1% YoY
World Market Demand +1% YoY Aluminium consumption saw a modest growth globally due to stagnant economies curbed by rising interest rates and inflation, ongoing supply chain disruptions and weak consumer confidence Chinese economy showed signs of stability fueled by resilient manufacturing sector and
Slide 6: World Market Supply +2% YoY
World Market Supply +2% YoY China: growth in production slowed due to winter disruptions in the South (+3% YoY) North America: production rose by 3% YoY with smelters’ restarts Middle East: overall flat (+1% YoY) with gains in Bahrain & UAE (+1% YoY) offset by a decline in KSA (-6% YoY) Europe: prim
Slide 7: LME Price & Premiums
LME Price & Premiums LME Cash averaged US$2,252/t in 2023 - down by 17% YoY. LME price fluctuated in the fourth quarter between a low of US$2,082.50/t on 11 December and a high of US$2,335.50/t on 29 December LME inventories remained low at 566,000 MT by year-end despite a 27% increase YoY. Chinese
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 2,324 2,263 2,155 2,190 2,200 1,800 1,400 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Alumina Price Index Trend (% of LME) 19% 17% 17% 16% 16% 16% 15% 13% 10% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 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 65 # Total Injuries 60 59 60 # Recordable Injuries 55 # LTIs 50 49 45 40 34 35 35 32 30 2018 2019 2020 2021 2022 2023 32 12 12 11 9 9 3 0 1 0 1 1 13 Million Safe Hours without any LTI on 23 January 2024) Page 10
Slide 11: Major Environment, Social and Governance (ESG) Highlights
Major Environment, Social and Governance (ESG) Highlights Milestone reached in Power Station 5 Block 4 with the arrival of M701JAC Gas Turbine on 16 October 2023 Safety Milestone: 7th consecutive summer of zero heat-related illnesses and injuries Alba: 1st smelter in the GCC to attain 4-star audit r
Slide 12: 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 13: All-Time Production (1,620,665 MT; +1.3% YoY)
All-Time Production (1,620,665 MT; + 1.3% YoY) Page 13
Slide 14: Operational Highlights (Full Year)
Operational Highlights (Full Year) Sales’ volume rose to 1,603,011 metric tonnes (MT) despite market challenges (+2.2% YoY) Closed 2023 with an all-time Net Finished Production of 1,620,665 MT (+1.3% YoY) Value Added Sales averaged 68% of the total shipments vs. 66% in 2022. VAP Sales’ volume exceed
Slide 15: Sales by Geographic Footprint
Sales by Geographic Footprint Europe 24% Asia MENA Bahrain 14.9% 20.6% 26.2% Americas 14.3% 73.8% of Alba products are exported worldwide through its Sales offices in Zurich & Singapore as well as Subsidiary in Atlanta - US
Slide 16: VAP Sales
Sales’ Breakdown by Product-Line Standard High Purity /T-Ingots Metal 12.9% 5.8% Liquid Billets 18.8% 8.6% 31.9% 22% Slabs VAP Sales Foundries 68.3% Page 16
Slide 17: Financial Key Performance Indicators – Q4 & FY 2023
Financial Key Performance Indicators – Q4 & FY 2023 EBITDA impacted by lower Free Cash Flow1 impacted LME price & premiums by working capital changes FY: US$314 million down by 72% YoY Q4: US$62 million down by 41% YoY FY: US$804 million FY: US$652 million down by 46% YoY down by 47% YoY Q4: US$203
Slide 18: Alba Share Price Performance
Alba Share Price Performance [ALBH, Bahraini Dinars] 1.300 Highest in BD Increase in Share 1.250 2023 1.275 5% Price 1.200 1.150 BD1.145 1.100 1.050 BD1.090 1.000 0.950 0.900 Page 18
Slide 19: Operational Productivity
Operational Productivity Total Head Count Value Added Sales (MT’000) as a % of Total Sales (MT) 68% 4,171 4,263 66% 1,025 1,113 1,042 1,096 3,146 3,150 2022 2023 Internal External 2022 2023 Account Receivable Days’ Trend Inventory Days’ Trend 110 103 45 46 2022 2023 2022 2023
Slide 20: Net Debt to EBITDA Ratio Trend
Net Debt to EBITDA Ratio Trend 3,000 8.03 5.98 118 1.36 216 2,500 248 2,000 0.95 1.74 1,500 249 159 2,450 2,606 2,218 1,000 1,424 1,399 500 0 2019 2020 2021 2022 2023 Net Debt Cash Net Debt to EBITDA Page 20
Slide 21: 2023 Results
03 2023 RESULTS Refer to Alba’s 2023 Audited Financial Statements Page 21
Slide 22: Metal Sales Bridge 2023 vs 2022
Aluminium Industry: Volatile and Weak Market Sentiment Lower Metal Sales Owing to Lower LME Price & Premiums Metal Sales’ Bridge (US$M) – 2023 vs. 2022 6,000 667 109 4,000 201 52 by 17% YoY in LME Price 4,896 2,000 4,085 by 35% YoY in Premiums 0 Metal Sales LME Pricing Power Product Mix Volume Metal
Slide 23: Sales by Product-Line Bridge and Premium Trend
Aluminium Industry: Volatile and Weak Market Sentiment Higher VAP │ Higher Liquid Metal │ Lower Commodities’ Volume 2023 vs. 2022 Premium Above LME Trend US$/MT Sales by Product-Line Bridge (MT’000) 1,800 54 23 42 500 1,200 350 35% 1,568 1,603 600 447 200 289 0 50 Sales Value Liquid Commodity Sales
Slide 24: Direct Cost Bridge 2023 vs 2022
Aluminium Industry: Volatile and Weak Market Sentiment Production Costs Lower Due to Lower Alumina Prices Despite Higher Throughput 2023 vs. 2022 - Direct Cost Bridge (US$M) 3,400 21 16 64 41 11 37 207 2,800 2,200 3,171 3,154 1,600 1,000 Direct Cost Major RM RM Energy Other Alumina Inventory Plant D
Slide 25: EBITDA Bridge 2023 vs 2022
Aluminium Industry: Volatile and Weak Market Sentiment Lower EBITDA Owing to Double-Digit Drop-in LME Price & Premiums 2023 vs. 2022 - EBITDA Bridge (US$M) EBITDA 31% 1,600 1,200 811 1,502 EBITDA 20% 800 17 21 75 804 400 EBITDA Metal Other Direct Selling EBITDA 2022 Sales Sales Cost Expenses 2023 Pa
Slide 26: Cash Flow Bridge 2022 to 2023
Aluminium Industry: Volatile and Weak Market Sentiment Cash Flow Bridge 2022 to 2023 2022 to 2023 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 1,200 112 281 1,000 1,250 115 800 1,000 821 254 600 750 1,233 400 500 373 652 200 250 249 159 0 - Cash CF WC CAPEX Block 4 Net Debt Payment Cash 2022 2023 B
Slide 27: Financial Summary
Aluminium Industry: Volatile and Weak Market Sentiment Double Digit Fall in LME Price and Premiums Impact Financial Performance Financial Summary Q4 2023 Q4 2022 FY 2023 FY 2022 Average Cash LME (US$/MT) 2,190 2,324 2,252 2,707 Average Alumina Price (US$/MT) 361 370 362 420 Revenue1 (US$M) 1,029 1,2
Slide 28: Industry Perspectives in 2024
04 INDUSTRY PERSPECTIVES1 IN 2024 1 Industry Perspectives are based on CRU Market Intel Page 28
Slide 29: Mixed Macroeconomic Outlook: Supply Constraints & Demand Upturn
Mixed Macroeconomic Outlook: Supply Constraints & Demand Upturn Global demand is expected to see a gradual rebound in the latter half of 2024 fueled by anticipated Chinese stimulus measures into their economy, prospects of interest rate cuts in the US boosting consumer spending and gradual recovery
Slide 30: Raw Materials Price Trends
Raw Materials Price Trends Alumina (Al₂O₃) -- modest price hikes driven by increased demand China in anticipation of potential bauxite disruptions from West Africa Aluminium Fluoride (AlF3) -- prices to remain stable thanks to lower offers from China’s downstream aluminium industry Carbon products (
Slide 31: 2024 Alba Priorities
05 2024 ALBA PRIORITIES1 1 Based on Alba’s 5-Year Strategic Initiatives Page 31
Slide 32: Evolving Beyond ESG & Safety Standards
Evolving Beyond ESG & Safety Standards Advance a culture of Safety where every action reflects our commitment to zero harm Align with Bahrain’s Objectives for ‘Net Zero Emissions’ by 2060 & embrace sustainability (from sourcing to delivery) across our operations Exceed 2023 Net Finished Production o
Slide 33: CEO Annual Majlis 2024
CEO Annual Majlis 2024 Page 33
Slide 34: Appendix – Q4 2023
06 APPENDIX – Q4 2023 Page 34
Slide 35: Metal Sales Bridge Q4 2023 vs Q4 2022
Aluminium Industry: Volatile and Weak Market Sentiment Lower Metal Sales due to Lower LME Price & Premiums Metal Sales’ Bridge (US$M) – Q4 2023 vs. Q4 2022 1,300 56 63 11 1,100 103 900 by 6 % YoY 700 in LME Price 1,230 by 34% YoY in Premiums 1,019 500 300 100 Metal Sales LME Pricing Power Product Mi
Slide 36: Sales by Product-Line Bridge Q4
Aluminium Industry: Volatile and Weak Market Sentiment Higher VAP │ Lower Liquid Metal │ Lower Commodities’ Volume Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q4 2023 vs. Q4 2022 500 400 4 8 34 400 300 34% 459 367 300 421 200 242 200 100 Sales Value Liquid Commodity Sale
Slide 37: Direct Cost Bridge Q4 2023 vs Q4 2022
Aluminium Industry: Volatile and Weak Market Sentiment Production Costs Lower Due to Lower Alumina Prices Despite Higher Throughput Q4 2023 vs. Q4 2022 - Direct Cost Bridge (US$M) 1,000 15 0 11 47 30 91 800 25 600 959 400 792 200 0 Direct Cost Major RM RM Energy Other Alumina Inventory Plant Direct
Slide 38: EBITDA Bridge Q4 2023 vs Q4 2022
Aluminium Industry: Volatile and Weak Market Sentiment Lower EBITDA Owing to Double-Digit Drop-in LME Price & Premiums Partially Offset by Lower Cost EBITDA Bridge (US$M) – Q4 2023 vs. Q4 2022 300 EBITDA 18% EBITDA 20% 200 14 211 222 167 100 203 11 0 EBITDA Metal Other Direct Selling EBITDA Q4 2022
Slide 39: Cash-Flow Bridge Q3 2023 to Q4 2023
Aluminium Industry: Volatile and Weak Market Sentiment Cash-Flow Bridge Q3 2023 to Q4 2023 Q3 2023 to Q4 2023 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 600 166 212 44 500 500 400 210 400 337 300 300 507 200 0 200 284 256 100 100 159 0 0 Cash CF WC CAPEX Block4 Net Debt Payment Cash Q4 2022 Q4 20
Slide 40: 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 41: For more information, please contact us
For more information, please contact us on: IR@alba.com.bh Alba4World Alba4World user/Alba4World Alba4World Page 41
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