Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Investor Presentation (2016)
37 slides from Aluminium Bahrain B.S.C's investor presentation, 2016
Slide 1: Investor Relations Presentation 2015
Aluminium for the world INVESTOR RELATIONS PRESENTATION 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 2015 Industry 2016 Highlights Highlights Results Perspectives ALBA Priorities in 2016 3
Slide 4: Industry Highlights
Aluminium for the world 01 INDUSTRY HIGHLIGHTS
Slide 5: Industry Highlights - 2015: Global Physical Demand Remains Healthy
Aluminium for the world Industry Highlights - 2015 Global Physical Demand Remains Healthy World consumption up by 4% YoY (56.2 million metric tonnes) Asian demand up by 5% YoY supported by softer consumption in China (+6% YoY) Demand in North America up by 3% YoY mainly denominated by the automobile
Slide 6: Industry Highlights - 2015: Production Evolution
Aluminium for the world Industry Highlights - 2015 Production Evolution World production up by 6% YoY Chinese output continue to rise (+31.2 million metric tonnes, 10% YoY) albeit at a slower pace due to smelters’ closure World market in surplus with China (+1.3Mt) and in deficit w/o China (-970Kt)
Slide 7: Industry Highlights - Q4 2015: LME & Premiums
Aluminium for the world Industry Highlights - Q4 2015 LME & Premiums LME inventories at 2.8 million metric tonnes in December Q4 2015 cash-average was $1,495/t with LME ranging between$1,424/t on November 23 and $1,607/t on October 12 Regional collapse in physical premiums ($/t): Major Japanese Port
Slide 8: Alba Highlights
Aluminium for the world 02 ALBA HIGHLIGHTS
Slide 9: Alba Highlights - 2015: Operational Highlights & Achievements
Aluminium for the world Alba Highlights - 2015 Operational Highlights & Achievements Continuous improvement in Safety performance Alba wins Gold at the International Green Apple Awards Production up by 3.1% YoY (960,643 mt) thanks to strong operational performance Successful Early Retirement Scheme
Slide 10: Sales Breakdown by Geographic Footprint (2015 vs. 2014)
Aluminium for the world Alba Highlights - 2015 Sales Breakdown by Geographic Footprint (2015 vs. 2014) Maintain Core Middle East Market & Expand in North America Americas 48.9K 86.5K Americas 5% 9% Europe Europe 15% 10% Bahrain Bahrain Asia 49% Asia 48% 13% 17% MENA MENA 18% 16% 2014 2015 10
Slide 11: Project Titan - Improve Cash Cost
Aluminium for the world Alba Highlights - 2015 Project Titan - Improve Cash Cost Full-Year 2015: Project Titan Achieved Savings of $148/t Project Titan - US$ per MT 148 150 102 December December January 2016 2014 2015 Target *Savings from Project Titan represent the annual $cost per mt improvement o
Slide 12: Financial Key Performance Indicators
Aluminium for the world Alba Highlights - Q4 & FY 2015 Financial Key Performance Indicators EBITDA (excluding One-Off Costs) down due to lower LME prices Q4: US$56 million down by 61% YoY FY: US$401 million down by 17% YoY Net Income (excluding One-Off Costs) down driven primarily by lower EBITDA le
Slide 13: Operational Excellence Continues to Sustain Momentum
Aluminium for the world Alba Highlights - 2015 Operational Excellence Continues to Sustain Momentum Value-Added Sales (MT’000) as a % of Total Sales 66% 64% 613 605 2014 2015 % of Total Sales Value Added Sales Account Receivable Days Inventory Days Trend 83 91 40 38 2014 2015 2014 2015 13
Slide 14: Optimal Manpower & A Leaner Structure
Aluminium for the world Alba Highlights - 2015 Optimal Manpower & A Leaner Structure 4,000 3,636 3,590 Early Retirement Scheme (ERS) 3,310 launched in December 2015 729 663 3,000 654 and closed by January 31st 2016 Alba’s Manpower down by 271 2,000 2,907 2,927 2,656 employees Alba’s Manpower d
Slide 15: Maintain Sound Balance Sheet & Ready for Line 6 Financing
Aluminium for the world Alba Highlights - 2015 Maintain Sound Balance Sheet & Ready for Line 6 Financing Cash, Net Debt & Net Debt to EBITDA 1.05 265 1.25 164 1.0 172 0.4 -0.2 613 179 513 362 309 184 -71 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Net Debt Cash Net Debt to EBITDA 15
Slide 16: 2015 Results
Aluminium for the world 03 2015 RESULTS
Slide 17: Sales Analysis 2015 vs. 2014
Aluminium for the world 2015 Results Aluminium Industry: Collapse of All-In-Prices Sales Analysis 2015 vs. 2014 Favourable Management Performance Offset by Low LME Prices 2015 vs. 2014 - Metal Sales Bridge (US$M) 2200 45 164 82 1800 4 2,034 1,993 1400 1000 Metal Sales LME Product Mix Pricing Power V
Slide 18: Maintain Optimum Product Mix
Aluminium for the world 2015 Results Aluminium Industry: Collapse of All-In-Prices Maintain Optimum Product Mix Favourable Management Performance 2015 vs. 2014 - Sales by Product Line Premium Above LME Trend US$ Per MT Bridge (MT’000) 1000 500 7 22 9 932 952 300 410 328 700 100 Sales Value Liquid Co
Slide 19: Cost Analysis 2015 vs. 2014
Aluminium for the world 2015 Results Aluminium Industry: Collapse of All-In-Prices Cost Analysis 2015 vs. 2014 2015 vs. 2014 - Direct Cost Bridge (US$M) 1700 28 31 106 2 31 2 17 7 1550 1,653 1,643 1400 Direct Cost RM RM Energy Alumina Inventory Plant One-Off Line-6 Direct Cost 2014 Price Consumption
Slide 20: EBITDA Bridge Gap Analysis - 2015 vs. 2014
Aluminium for the world 2015 Results Aluminium Industry: Collapse of All-In-Prices EBITDA Bridge Gap Analysis - 2015 vs. 2014 EBITDA Margin at 17.3% 2015 vs. 2014 - EBITDA Bridge (US$M) 500 EBITDA 21.3% 41 375 105 EBITDA 17.3% 465 11 2 20 352 250 EBITDA 2014 Metal Other Sales Direct Cost Derivatives
Slide 21: Cash Flow Bridge - FY 2015 vs. FY 2014
Aluminium for the world 2015 Results Aluminium Industry: Collapse of All-In-Prices Cash Flow Bridge - FY 2015 vs. FY 2014 Achieving Constant Cash Flow Trend FY14 to FY15 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 600 106 124 350 77 400 350 125 300 332 200 309 305 179 0 250 Cash CF WC CAPEX Paymen
Slide 22: Working Capital Trend as Percentage of Sales
Aluminium for the world 2015 Results Aluminium Industry: Collapse of All-In-Prices Working Capital Trend as Percentage of Sales - Cash is King Working Capital as Percentage of Sales 22% 18% 17% 16% 12% 2014 2015 PERCENTAGE 22
Slide 23: Financial Summary Q4 2015 and FY 2015
Aluminium for the world 2015 Results Aluminium Industry: Collapse of All-In-Prices Favourable Management Performance Partially Offset by LME Prices Financial Summary Q4 2015 Q4 2014 FY 2015 FY 2014 Average Cash LME (US$/MT) 1,495 1,968 1,663 1,866 Sales (US$M) 469 591 2,039 2,185 EBITDA (US$M) 9 140
Slide 24: Total Debt Reduction Trend
Aluminium for the world 2015 Results Aluminium Industry: Collapse of All-In-Prices Total Debt Reduction Trend - Continue to Strengthen Total Debt Trend (US$M) 700 363 350 192 238 150 171 88 0 2014 2015 Long-Term Short Term Total Debt 24
Slide 25: Alba Continues to Deliver Cash to its Shareholders
Aluminium for the world 2015 Results Aluminium Industry: Collapse of All-In-Prices Alba Continues to Deliver Cash to its Shareholders At Alba’s Board Meeting on February 18, 2016, the Directors recommended a total dividend of US$ 41.3 million (26% of 2015 Net Income), where US$ 20.6 million (interim
Slide 26: Industry Perspectives in 2016
Aluminium for the world 04 INDUSTRY PERSPECTIVES IN 2016
Slide 27: Global Physical Demand to Remain Healthy
Aluminium for the world Industry Perspectives in 2016 Global Physical Demand to Remain Healthy Key factors to be observed: LME volatility will continue Lower LME prices & strong US dollar will continue to pressure marginal producers to cut output in North America, Europe and China North America dema
Slide 28: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2016 Raw Materials Price Trends Alumina spot index to soften and expected to remain stable with minor fluctuations Green Petroleum Coke prices to slightly soften in 2016 Alumina Fluoride (ALF3) and Liquid Pitch prices to remain at current levels in 20
Slide 29: 2016 Alba Priorities
Aluminium for the world 05 2016 ALBA PRIORITIES
Slide 30: Sustainable Improvement & Preparation for Future Growth
Aluminium for the world 2016 Alba Priorities Sustainable Improvement & Preparation for Future Growth Continuous Focus on Safety Initiatives & Talent Management Introduce “Titan 2” Focus on Value-Added Sales Increase Creep Capacity with Minimal Capital Investment Kick-off the early works for Line 6 E
Slide 31: Appendix
Aluminium for the world 06 APPENDIX
Slide 32: Sales Analysis 4Q15 vs. 4Q14
Aluminium for the world Q4 2015 Results Aluminium Industry: Collapse of All-In-Prices Sales Analysis 4Q15 vs. 4Q14 Favourable Management Performance Offset by Low LME Prices 4Q15 vs. 4Q14 - Metal Sales Bridge (US$M) 575 500 119 565 0 24 425 11 459 350 Metal Sales LME Product Mix Pricing Power Volume
Slide 33: Maintain Optimum Product Mix (Q4)
Aluminium for the world Q4 2015 Results Aluminium Industry: Collapse of All-In-Prices Maintain Optimum Product Mix Favourable Management Performance 4Q15 vs. 4Q14 - Sales by Product Line Premium Above LME Trend US$ Per MT Bridge (MT’000) 300 400 21 8 2 200 242 253 350 306 100 200 Sales Value Liquid
Slide 34: Cost Analysis 4Q15 vs. 4Q14
Aluminium for the world Q4 2015 Results Aluminium Industry: Collapse of All-In-Prices Cost Analysis 4Q15 vs. 4Q14 4Q15 vs. 4Q14 - Direct Cost Bridge (US$M) 450 8 8 0 20 3 42 17 9 350 446 431 250 Direct Cost RM RM Energy Alumina Inventory Plant One-Off Line-6 Direct Cost 4Q14 Price Consumption Cons.
Slide 35: Adjusted EBITDA Bridge
Aluminium for the world Q4 2015 Results Aluminium Industry: Collapse of All-In-Prices Adjusted EBITDA Bridge Adjusted EBITDA Margin at 2% 4Q15 vs. 4Q14 - EBITDA Bridge (US$M) EBITDA 23.7% 120 106 140 60 16 4 2 EBITDA 2.0% 15 9 0 EBITDA 4Q14 Metal Other Sales Direct Cost Derivatives Selling EBITDA 4Q
Slide 36: Cash Flow Bridge - 3Q15 to 4Q15
Aluminium for the world Q4 2015 Results Aluminium Industry: Collapse of All-In-Prices Cash Flow Bridge - 3Q15 to 4Q15 Achieving Constant Cash Flow Trend 3Q15 to 4Q15 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 350 55 0 13 118 250 9 309 150 72 224 47 50 0 Cash CF WC CAPEX Payment Net Debt Cash 3Q14
Slide 37: 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 37
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