Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q2 2013 Earnings Presentation
31 slides from Aluminium Bahrain B.S.C's earnings presentation, 2013
Slide 1: Aluminium for the world: Q2 2013 IR Presentation
Aluminium for the world Q2 2013 IR PRESENTATION albasmelter.com
Slide 2: Disclaimer
Aluminium for the world 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 y
Slide 3: Contents
Aluminium for the world Contents 1- Industry Highlights 2- Alba Highlights 3- Q2 2013 Results 4- Industry Perspectives in 2013 5- 2013 Alba Priorities albasmelter.com 3
Slide 4: Industry Highlights
INDUSTRY HIGHLIGHTS Primary Reference for Industry Data is CRU
Slide 5: Aluminium Demand Remains Healthy
Aluminium for the world INDUSTRY HIGHLIGHTS Q2 2013 Aluminium Demand Remains Healthy (Reference Period: April - June) World consumption up by +4.8% YoY Asian demand up by 7% YoY mainly supported by Thailand (+21% YoY) and China (+9% YoY) North America - healthy demand (+2% YoY) driven by a pick-up i
Slide 6: Production Evolution
Aluminium for the world INDUSTRY HIGHLIGHTS Q2 2013 Production Evolution (Reference Period: April-June) World market production up by 4.3% YoY China output at a record level reaching 5.8 million tonnes (+9.2% YoY) driven by government support on power subsidies & new capacity ramp-up in the Northwes
Slide 7: LME & Premiums
Aluminium for the world INDUSTRY HIGHLIGHTS Q2 2013 LME & Premiums LME inventories at 5.45 million metric tonnes in June 2Q13 cash-average was $1,834/t with LME ranging between $1,719/t on June 27 and $1,939/t on June 5 Physical premiums continue to be at record high across the globe: DDP Rotterdam
Slide 8: Alba Highlights
‘~ ALBA HIGHLIGHTS
Slide 9: H1 2013 - Operational Highlights/Achievements
Aluminium for the world Alba Highlights H1 2013 - Operational Highlights/Achievements Alba was able to increase its sales by 1.9% YoY thanks to a focused marketing strategy Production up by 2% YoY on the back of sustained productivity 1H13 Sales of Value-Added Products at 66% vs. 65% in 1H12 Signifi
Slide 10: Q2 2013 - Operational Highlights/Achievements
Aluminium for the world Alba Highlights Q2 2013 - Operational Highlights/Achievements Continued Focus on Optimisation of Logistics AlbaSafeWay Program Contractor safety awareness plant wide Launch of HSE summer week Future Growth Bankable Feasibility Study (BFS) for Line 6 expansion project on strea
Slide 11: Q2 & H1 2013 - Financial Key Performance Indicators
Aluminium for the world Alba Highlights Q2 & H1 2013 - Financial Key Performance Indicators Adjusted EBITDA inched-up due to solid physical premiums & favorable plant performance despite lower LME prices Q2: US$90 million up by 5% YoY H1: US$216 million up by 7% YoY Adjusted Net Income up driven by
Slide 12: Q2 2013 Results
<: Q2 2013 RESULTS
Slide 13: Sales Analysis 2Q13 vs. 2Q12
Aluminium for the world Q2 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Sales Analysis 2Q13 vs. 2Q12 Higher Premium Offset by Lower LME Prices 2Q13 vs. 2Q12 - Metal Sales Bridge (US$M) 550 21 8 44 1 400 514 498 250 100 Sales 2Q12 LME Product Mix Pricing Power Volume Sales 2Q1
Slide 14: Maintain Optimum Product Mix
Aluminium for the world Q2 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Maintain Optimum Product Mix Sustain Value-Added Products & Leverage Pricing Power 2Q13 vs. 2Q12 - Sales by Product line Bridge Premium Above LME Trend US$ Per MT (000’s MT) 250 1 15 12 300 175 231 235 20
Slide 15: Cost Analysis 2Q13 vs. 2Q12
Aluminium for the world Q2 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cost Analysis 2Q13 vs. 2Q12: Lower Raw Material Prices on the Back of Lower LME prices 2Q13 vs. 2Q12 - Direct Costs Bridge (US$M) 450 0 4 3 1 15 5 1 300 55 407 394 150 Direct Cost 2Q12 RM Price RM Consump
Slide 16: Adjusted EBITDA Bridge Gap Analysis 2Q13 vs. 2Q12
Aluminium for the world Q2 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Adjusted EBITDA Bridge Gap Analysis 2Q13 vs. 2Q12: Adjusted EBITDA Margin at 17.9% 2Q13 vs. 2Q12 - EBITDA Bridge (US$M Adjusted) 100 2 EBITDA 17.9% EBITDA 16.5% 9 16 13 4 50 86 90 0 EBITDA 2Q12 Metal Sale
Slide 17: Cash Flow Bridge 2Q13 vs. 1Q13
Aluminium for the world Q2 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cash Flow Bridge 2Q13 vs. 1Q13: Alba Still Generating Cash Despite Low LME Prices 1Q13 to 2Q13 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 250 13 47 160 93 31 125 80 143 139 141 33 0 0 Cash CF from WC C
Slide 18: Working Capital Trend as Percentage of Sales
Aluminium for the world Q2 2013 Results Working Capital Trend as Percentage of Sales: Slight Increase on Working Capital Due to Timing Working Capital As percentage of Sales 22% 20% 19% 17% 16% Q2 2012 Q2 2013 Percentage albasmelter.com 18
Slide 19: Financial Summary Q2 2013
Aluminium for the world Q2 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Solid Management Performance Partially Offset by Lower LME Prices Financial Summary Q2 2013 Q2 2012 H1 2013 H1 2012 Average Cash LME (US$/MT) 1,834 1,977 1,918 2,077 Sales (US$M) 503 523 1,001 1,019 EBITD
Slide 20: Industry Perspectives in 2013
INDUSTRY PERSPECTIVES IN 2013 Primary Reference for Industry Data is CRU
Slide 21: Demand to Remain Healthy but with Strong Volatility
Aluminium for the world Industry Perspectives in 2013 Demand to Remain Healthy but with Strong Volatility Key factors to be observed: LME volatility will continue with the uncertainty of Chinese economic activity Record physical premiums to be sustained in the short-run on the back of solid physical
Slide 22: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2013 Raw Materials Price Trends Alumina spot index expected to remain stable in 2H13 Green Petroleum Coke prices to remain stable for the remainder of 2013 Aluminium Fluoride (ALF3) and Liquid Pitch prices to weaken with the oversupply and weak demand
Slide 23: 2013 Alba Priorities
‘~ 2013 ALBA PRIORITIES
Slide 24: Sustainable Improvement & Preparation for Future Growth
Aluminium for the world 2013 Alba Priorities Sustainable Improvement & Preparation for Future Growth AlbaSafeWay Program - Towards ZERO Accidents Leverage Cost Improvements through Operational Excellence Program Continued Focus on Talent Management Leverage Strong Physical Demand Conditions Sustaine
Slide 25: Appendix
APPENDIX
Slide 26: Sales Analysis 1H13 vs. 1H12
Aluminium for the world H1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Sales Analysis 1H13 vs. 1H12 Higher Premium Offset by Lower LME Prices 1H13 vs. 1H12 - Metal Sales Bridge (US$M) 1,100 34 19 66 0 750 1,009 996 400 Sales 1H12 LME Product Mix Pricing Power Volume Sales 1H
Slide 27: Maintain Optimum Product Mix
Aluminium for the world H1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Maintain Optimum Product Mix Sustain Value-Added Products & Leverage Pricing Power 1H13 vs. 1H12 - Sales by Product line Bridge Premium Above LME Trend US$ Per MT (000’s MT) 500 23 11 26 250 400 446 454 3
Slide 28: Cost Analysis 1H13 vs. 1H12
Aluminium for the world H1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cost Analysis 1H13 vs. 1H12: Lower Raw Material Prices on the Back of Lower LME prices 1H13 vs. 1H12 - Direct Costs Bridge (US$M) 800 13 3 6 7 36 1 7 600 55 759 745 400 200 Direct Cost 1H12 RM Price RM Co
Slide 29: Adjusted EBITDA Bridge Gap Analysis 1H13 vs. 1H12
Aluminium for the world H1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Adjusted EBITDA Bridge Gap Analysis 1H13 vs. 1H12: Adjusted EBITDA Margin at 21.6% 1H13 vs. 1H12 - EBITDA Bridge (US$M Adjusted) 250 EBITDA 21.6% 16 2 EBITDA 19.7% 14 14 4 125 201 216 0 EBITDA 1H12 Metal
Slide 30: Cash Flow Bridge 2Q13 vs. Year-End 2012
Aluminium for the world H1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cash Flow Bridge 2Q13 vs. Year-End 2012: Alba Still Generating Cash Despite Low LME Levels Year-End 2012 to 2Q13 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 400 60 200 56 220 53 200 74 100 191 164 104 1
Slide 31: For More Information, Contact Us
FOR MORE INFORMATION, CONTACT US ON: IR@alba.com.bh
Aluminium Bahrain B.S.C. (Alba) — Q2 2013 Earnings Presentation on 6ix