Aluminium Bahrain B.s.c · BAHRAIN:ALBH
Aluminium Bahrain B.s.c — FY2024 Earnings Presentation
43 slides from Aluminium Bahrain B.s.c's earnings presentation, Mar 4, 2025
Slide 1: Investor Relations Presentation Full Year 2024
INVESTOR RELATIONS PRESENTATION FULL YEAR 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 Global Demand- Alba 2024 Supply Dynamics Highlights Results 04 05 06 Industry Perspectives 2025 Alba Appendix in 2025 Priorities Page 3
Slide 4: Global Demand-Supply Dynamics
01 Global Demand-Supply Dynamics1 1 Global Demand-Supply Dynamics are based on CRU Market Intel for Q4 2024 Page 4
Slide 5: World Market Demand +3% YoY
World Market Demand +3% YoY Global Economy Dynamics: Resilient with moderating inflation and stabilising growth but risks remain with geopolitical tensions, trade policies and supply constraints China: Primary aluminium demand grew by 4% YoY driven by energy and transportation sectors, though proper
Slide 6: World Market Supply +3% YoY
World Market Supply +3% YoY China: Supply rose by 3% YoY but remained near its capacity cap of 45 million MT Europe: Output up by 2% YoY supported by Germany and Russia Middle East: Supply rose by 1% YoY with KSA contributing an 8% rise North America: Production down by 2% YoY primarily due to a 12%
Slide 7: LME Price & Premium Trends
LME Price & Premium Trends LME Price: LME prices averaged US$2,419/t in 2024 (+7% YoY) with fluctuations in the fourth quarter between a low of US$2,470/t on 19 December 2024 and a high of US$2,655.50/t on 07 October 2024 LME Inventories: Rose by 12% YoY to 635,000 MT by year end Premiums: Aluminium
Slide 8: Alumina Price Index (API): 21% of LME Price
Alumina Price Index (API): 21% of LME Price [US$553/t] LME Price Trend (US$/t) 2,519 2,573 2,600 2,383 2,190 2,200 2,200 1,800 383/t 1,400 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Alumina Price Index Trend (% of LME) 22% 21% 20% 19% 191/t 16% 16% 16% 16% 13% 10% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 202
Slide 9: Alba Highlights
02 ALBA HIGHLIGHTS1 1 Alba Highlights relate to Alba official news in Q4 2024 Page 9
Slide 10: Safety in Numbers
Safety in Numbers 60 59 49 50 40 35 34 32 30 20 20 12 12 11 10 9 9 4 0 0 1 0 1 1 0 30 Million Safe Hours w/o LTI 2019 2020 2021 2022 2023 2024 on 23 January 2025 Total Injuries Recordable Injuries Lost Time Injuries Page 10
Slide 11: 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 12: Alba Celebrates ESG Achievements and Plans Future Course
Alba Celebrates ESG Achievements and Plans Future Course Safety First & Operational Excellence Achieved 30 million safe working hours w/o LTI on 23 January 2025 Successfully contained a minor industrial fire safely at power rectiformer supplying Line 1 Empowering Local Talent Celebrated graduation o
Slide 13: Alba & Ma'aden
Alba & Ma’aden 16 September 2024: Alba announced a non-binding agreement with Ma’aden to commence due diligence towards a potential business combination with segments of Maaden’s Aluminium Strategic Business Unit 17 September 2024: Alba was notified on 17 September by its shareholder, SABIC Industri
Slide 14: Alba Sets New Production Record, Exceeding 1.622 million MT
Alba Sets New Production Record, Exceeding 1.622 million MT Page 14
Slide 15: Operational Highlights 2024
Operational Highlights 2024 Sales’ Volume: Increased to 1,611,638 MT (+1% YoY) despite market challenges Net Finished Production: Closed 2024 with an all-time record of 1,622,261 MT (+0.1% YoY) Value Added Sales: Averaged 72% of the total shipments (up from 68% in 2023). VAP Sales’ volume increased
Slide 16: e-Al Hassalah Programme (2024 - 2026)
e-Al Hassalah Programme (2024 - 2026) e-Al Hassalah (US$ Million) Description A combination of process improvement/optimization methods and 160 Industry 4.0 focused to improve EBITDA [65% Bottom-up Projects/Ideas] 150 120 Industry 4.0 Roadmap, Projects and business case evaluation and validation com
Slide 17: Sales by Geographic Footprint
Sales by Geographic Footprint Europe 27.4% Asia MENA Bahrain 14.9% 16% 27.4% Americas 14.3% 72.6% of Alba products are exported worldwide through its Sales offices in Zurich & Singapore as well as Subsidiary in Atlanta - US Sales by Geographic Footprint are calculated based on MT Sold Page 17
Slide 18: Sales' Breakdown by Product-Line
Sales’ Breakdown by Product-Line Standard High Purity /T-Ingots Metal Liquid 8.7% 8.4% 19.5% 11% 33.1% 19.3% Slabs Foundries Billets VAP Sales 72 % Sales by Product Line are calculated based on MT Sold Page 18
Slide 19: Financial Key Performance Indicators – Q4 & FY 2024
Financial Key Performance Indicators – Q4 & FY 2024 EBITDA increase driven by higher LME Free Cash Flow1 impacted price & partially offset by alumina by working capital changes FY: US$491 million up by 56% YoY Q4: US$98 million up by 58% YoY FY: US$939 million FY: US$569 million up by 17% YoY down b
Slide 20: Alba Share Price Performance
Alba Share Price Performance [ALBH, Bahraini Dinars] 1.5 Highest in BD 2024 1.420 13.54% Alba Announces 1.4 Non-Binding Agreement with Ma’aden 1.3 BD1.300 1.2 Renewed Alumina Supply Contract BD1.145 with Alcoa for 10 1.1 years Alba Inks 10-Year Gas Supply Deal 1 with Bapco Energies 0.9 Page 20
Slide 21: Operational Productivity
Operational Productivity Total Head Count Value Added Sales (MT’000) as a % of Total Sales (MT) 72% 4,263 4,379 68% 1,113 1,200 1,096 1,157 3,150 3,179 2023 2024 Internal External 2023 2024 Account Receivable Days Trend Inventory Days Trend 54 103 113 46 2023 2024 2023 2024
Slide 22: Net Debt to EBITDA Ratio Trend
Net Debt to EBITDA Ratio Trend 3,000 5.98 118 1.36 2,500 248 2,000 0.95 1.74 1.17 1,500 249 159 2,606 303 2,218 1,000 1,424 1,399 500 1,103 0 2020 2021 2022 2023 2024 Net Debt Cash Net Debt to EBITDA Page 22
Slide 23: 2024 Results
03 2024 RESULTS Refer to Alba’s 2024 Audited Financial Statements Page 23
Slide 24: Higher Metal Sales Owing to Higher LME Price & Volume
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Higher Metal Sales Owing to Higher LME Price & Volume Metal Sales’ Bridge (US$M) – 2024 vs. 2023 5,000 4,500 217 1 22 35 4,000 3,500 3,000 2,500 by 7% YoY in LME Price 4,085 4,290 2,000 by 7% YoY 1,500 in Premiums 1,000 500 0
Slide 25: Higher VAP, Higher Liquid Metal, Lower Commodities' Volume
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Higher VAP │ Higher Liquid Metal │ Lower Commodities’ Volume 2024 vs. 2023 Premium Above LME Trend US$/MT Sales by Product-Line Bridge (MT’000) 62 12 1,650 65 1,450 350 1,250 7% 1,050 250 1,603 1,612 850 289 268 650 150 450 2
Slide 26: Higher Production Costs Due to Higher Alumina Prices
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Higher Production Costs Due to Higher Alumina Prices and Plant Spending 2024 vs. 2023 - Direct Cost Bridge (US$M) 4,000 3,500 23 130 43 159 2 3,000 91 2,500 2,000 3,154 3,210 1,500 1,000 500 Direct Cost Major RM RM Other Alum
Slide 27: Higher EBITDA - EBITDA Bridge 2024 vs 2023
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Higher EBITDA - Higher LME Price offset by Higher Alumina Price 2024 vs. 2023 - EBITDA Bridge (US$M) 1,100 2 EBITDA 22% 1,000 900 EBITDA 20% 205 56 16 800 700 600 500 939 804 400 300 200 100 EBITDA Metal Other Direct Selling
Slide 28: Cash Flow Bridge 2023 to 2024
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Cash Flow Bridge 2023 to 2024 – Improved Cash Position 2023 to 2024 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 1,200 1,000 230 800 71 225 700 800 953 52 600 600 243 500 400 400 651 130 569 300 200 200 303 159 0 100 Cash CF
Slide 29: Key Financial Performance Indicators
Key Financial Performance Indicators Particulars Q4 2024 Q4 2023 FY 2024 FY 2023 Revenue1 (US$M) 1,188 1,029 4,313 4,106 EBITDA (US$M) 207 203 939 804 EBITDA% 17% 20% 22% 20% Profit (US$M) 98 62 491 314 Gain/(Loss) Unrealised 2 (2) 4 (3) Derivatives (US$M) Adjusted Profit2 (US$M) 96 64 487 317 AVG C
Slide 30: Industry Perspectives in 2025
04 INDUSTRY PERSPECTIVES1 IN 2025 1 Industry Perspectives are based on CRU Market Intel Page 30
Slide 31: Macroeconomic Outlook: Trade Turbulence Dominates the Landscape
Macroeconomic Outlook: Trade Turbulence Dominates the Landscape Market Uncertainty Persists: 2025 started with significant volatility in LME prices. The possibility of a global trade war remains, as paused tariffs on Canada and Mexico could still be implemented later. Renewed discussions of EU sanct
Slide 32: Feedstock Trends (Al₂O₃, AlF3 and GPC)
Feedstock Trends (Al₂O₃, AlF3 and GPC) Alumina Market: Prices expected to remain volatile at the start of 2025 with Alumina Price Index (API) likely to decline reflecting recent spot trade trends. Supply bottlenecks started to ease in China while production gains are expected in India and Indonesia.
Slide 33: 2025 Alba Priorities
05 2025 ALBA PRIORITIES1 1 Based on Alba’s 5-Year Strategic Initiatives Page 33
Slide 34: Alba: Safe, Sustainable, Successful
Alba: Safe, Sustainable, Successful Leading the Way: Safety First, Sustainability Always Aligned with Bahrain’s 2060 vision of net-zero emissions, Alba embeds sustainability from raw material sourcing to product delivery, minimising environmental footprint Operational Excellence and Growth Exceed 20
Slide 35: CEO Annual Majlis 2025
CEO Annual Majlis 2025 Page 35
Slide 36: Appendix – Q4 2024
06 APPENDIX – Q4 2024 Page 36
Slide 37: Higher Metal Sales due to Higher LME Price & Premiums
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Higher Metal Sales due to Higher LME Price & Premiums Metal Sales’ Bridge (US$M) – Q4 2024 vs. Q4 2023 1,400 21 1 3 1,200 150 1,000 800 by 21% YoY in Premiums 1,188 by 17 % YoY 600 1,019 in LME Price 400 200 Metal Sales LME P
Slide 38: Higher VAP, Higher Liquid Metal, Lower Commodities' Volume
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Higher VAP │ Higher Liquid Metal │ Lower Commodities’ Volume Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q4 2024 vs. Q4 2023 500 350 450 12 300 4 17 250 21% 400 200 350 294 421 420 150 242 300 100
Slide 39: Higher Production Costs Due to Higher Alumina Prices
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Higher Production Costs Due to Higher Alumina Prices & Plant Spending Q4 2024 vs. Q4 2023 - Direct Cost Bridge (US$M) 1,000 16 56 137 19 11 43 800 600 928 400 792 200 0 Direct Cost Major RM RM Other Alumina Inventory Plant Di
Slide 40: Lower EBITDA Owing to Higher Alumina Price
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Lower EBITDA Owing to Higher Alumina Price offset by higher LME Price EBITDA Bridge (US$M) – Q4 2024 vs. Q4 2023 450 400 350 11 300 136 170 250 EBITDA 20% EBITDA 17% 200 19 150 203 207 100 EBITDA Metal Other Direct Selling EB
Slide 41: Cash-Flow Bridge Q3 2024 to Q4 2024
Aluminium Industry Faces Increased Volatility Amidst Rising Trade Tensions Cash-Flow Bridge Q3 2024 to Q4 2024 – Improved Cash Position Q3 2024 to Q4 2024 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 600 500 56 400 28 400 178 350 74 114 300 300 217 250 200 200 303 150 265 100 255 180 100 0 50 Cash
Slide 42: 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 43: 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 43
Aluminium Bahrain B.S.C. (Alba) — FY2024 Earnings Presentation on 6ix