Qatar Aluminium Manufacturing Company · QSE:QAMC
Qatar Aluminium Manufacturing — Q1 2024 Earnings Presentation
36 slides from Qatar Aluminium Manufacturing's earnings presentation, May 1, 2024
Slide 1: Qatar Aluminium Manufacturing Company Investor Relations Presentation
Qatar Aluminium Manufacturing Company Investor Relations Presentation 31 March 2024
Slide 2: Disclaimer
CLASSIFICATION: C1 - CONTROLLED Disclaimer The company in which Qatar Aluminium Manufacturing Company Q.P.S.C. directly owns investment is a separate entity. In this presentation, “QAMCO” and “the Company” are sometimes used for convenience in reference to Qatar Aluminium Manufacturing Company Q.P.S
Slide 3: Table of Content
CLASSIFICATION: C1 - CONTROLLED Table of Content 1. QAMCO at a Glance 2. Ownership structure 3. Operations of joint venture 4. Competitive strengths 5. Peer review 6. Macroeconomic updates 7. QAMCO results (For the three-month period ended 31 March 2024) 8. CAPEX (2024F – 2028F) 9. Market statistics
Slide 4: QAMCO at a Glance
CLASSIFICATION: C1 - CONTROLLED QAMCO at a Glance 4
Slide 5: QAMCO at a Glance: Overview
CLASSIFICATION: C1 - CONTROLLED QAMCO at a Glance Overview • Qatar Aluminium Manufacturing Company • QatarEnergy provides all of the head office Q.P.S.C (QAMCO) was incorporated on functions for QAMCO through a comprehensive December 3, 2018 and listed on Qatar service-level agreement. Stock Exchang
Slide 6: Ownership structure
CLASSIFICATION: C1 - CONTROLLED Ownership structure 6
Slide 7: Ownership Structure
CLASSIFICATION: C1 - CONTROLLED Ownership Structure QatarEnergy Public (51%) (49%) QAMCO Qatalum Joint Venture (50%) QAMCO holds 50% share of Qatar Aluminium Limited (“Qatalum” or “QAMCO JV” or “JV”) as a joint venture shareholder, which produces high-quality aluminium of more than 650,000 tons per
Slide 8: Operations of Joint Venture
CLASSIFICATION: C1 - CONTROLLED Operations of Joint Venture 8
Slide 9: QAMCO's Joint Venture
CLASSIFICATION: C1 - CONTROLLED QAMCO’s Joint Venture • Qatar Aluminium (Qatalum) is located in Qatar, the company benefits from access to one of the world’s largest and most competitively priced sources of energy which allows it to maintain one of the industry’s most competitive profit margins and
Slide 10: QAMCO's Joint Venture: Sales and Marketing
CLASSIFICATION: C1 - CONTROLLED QAMCO’s Joint Venture Sales and Marketing: • With a Marketing and Offtake Agreement, Hydro Aluminium is responsible for the offtake and marketing of 100% of Qatar Aluminium products. The Marketing and Offtake Agreement gives Qatar Aluminium (Qatalum) access to Hydro A
Slide 11: Competitive strengths
CLASSIFICATION: C1 - CONTROLLED Competitive strengths 11
Slide 12: Competitive strengths
CLASSIFICATION: C1 - CONTROLLED Competitive strengths State of the art production facility and technology deployed Low cost Assured feedstock supply and competitively priced energy smelter High focus on Health and Safety and Environment Proven Positive share of operating profit & competitive
Slide 13: Peer review
CLASSIFICATION: C1 - CONTROLLED Peer review 13
Slide 14: QAMCO's competitive positioning versus global peers
CLASSIFICATION: C1 - CONTROLLED QAMCO’s competitive positioning versus global peers Gross profit margin (%) EBITDA margin (%) Peer 1 33.0% Peer 1 33.5% Peer 2 18.7% QAMCO 30.9% QAMCO ranks #2 QAMCO 22.4% QAMCO ranks #2 Peer 2 16.2% Peer 4 16.6% Peer 3 8.6% Peer 5 10.8% Peer 4 12.9% Net profit margin
Slide 15: Macroeconomic updates
CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates 15
Slide 16: Macroeconomic updates
CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates (Graphs to be updated) Aluminium prices ($/MT) Alumina prices ($/MT) 4,500 Aluminium LME spot prices ($/MT) 750 Alumina spot prices ($/MT) 4,000 650 3,500 3,000 550 2,500 450 2,000 350 1,500 1,000 250 Jan-20 Dec-20 Dec-21 Dec-22 Dec-23 Mar-24 Jan
Slide 17: QAMCO results
CLASSIFICATION: C1 - CONTROLLED QAMCO results (For the three-month period ended 30th March 2024) 17
Slide 18: 1Q-24 results - At a Glance vs. 1Q-23
CLASSIFICATION: C1 - CONTROLLED 1Q-24 results - At a Glance vs. 1Q-23 Revenue -13% EBITDA -2% Net profit -8% QR 640 million QR 220 million QR 86 million Cost per EBITDA EPS ton -10% Margin vs. 30% QR 0.015 vs. QR 0.017 QR 8,288* 34% ▪ 1Q-24 aluminum realized prices declined notably versus previous a
Slide 19: Operational Performance review
CLASSIFICATION: C1 - CONTROLLED Operational Performance review Production (MT’ 000) – 100% • 1Q-24 vs 1Q-23: Production volumes slightly inched higher compared to last year, due to increase in liquid metal production amid higher amperage. • 1Q-24 vs 4Q-23: production volumes marginally down compared
Slide 20: Financial performance review
CLASSIFICATION: C1 - CONTROLLED Financial performance review Share of Revenue (QR million) Net Profit (QR million) • 1Q-24 vs 1Q-23: Share of JV’s revenue declined, mainly due to • 1Q-24 vs 1Q-23: Profitability declined mainly due to lowered revenue, lower avg realized selling price & slightly lower
Slide 21: Net Profit Variance Analysis 1Q-24 vs. 1Q-23
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 1Q-24 vs. 1Q-23 (Amounts in QR’ million) QAMCO reported a net profit of QR 86 million, a decline in profitability by 8% compared to last year. QAMCO’s 1Q-24 results were impacted by JV’s performance mainly due to: Unfavorable movements a
Slide 22: Net Profit Variance Analysis 4Q-23 vs. 1Q-24
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 4Q-23 vs. 1Q-24 (Amounts in QR’ million) QAMCO reported a net profit of QR 86 million in 1Q-24, a decrease of 7% compared to 4Q-23. QAMCO’s 1Q-24 results were impacted by JV’s performance mainly due to: Unfavorable movements a) Lower avg
Slide 23: Analysis of Selling Prices
CLASSIFICATION: C1 - CONTROLLED Analysis of Selling Prices Selling prices ($/MT) – YE-24 vs YE-23 o YoY: Average selling prices declined versus last year due to persistent macroeconomic headwinds affecting -28% LME prices. o LME premiums declined mainly due to a LME negative macroeconomic context we
Slide 24: Analysis of EBITDA margins
CLASSIFICATION: C1 - CONTROLLED Analysis of EBITDA margins Despite macroeconomic volatilities, QAMCO’s JV EBITDA margins continue to remain robust & resilient 4,300 47% 46.0% 48% Primary Aluminium Price (USD/ton) 45% QAMCO’s JV EBITDA Margins (%) 3,800 43% 41% 41% 3,300 37% 38% 38% 36% 2,800 34% 33%
Slide 25: Geographic analysis – QAMCO JV revenue
CLASSIFICATION: C1 - CONTROLLED Geographic analysis – QAMCO JV revenue Asia remained QAMCO JV’s largest market, while its presence in Europe and US continued to be substantial Europe 15% Qatar North America 4 5% Asia 18% 96 62% 25 Revenue for YTD June-2023 QAMCO, IR Presentation Q1-24
Slide 26: QAMCO JV Volumes – product mix (%)
CLASSIFICATION: C1 - CONTROLLED QAMCO JV Volumes – product mix (%) ▪ Foundry alloys along with extrusion ingots (together referred to as value added or premium products) remains key products for QAMCO’s JV. 1Q-24 QAMCO JV Sales 1Q-23 QAMCO JV Sales Volumes – Product mix (%) Volumes – Product mix (%)
Slide 27: Market Statistics and dividend distribution
CLASSIFICATION: C1 - CONTROLLED Market Statistics and dividend distribution 27
Slide 28: Market Statistics and Dividends
CLASSIFICATION: C1 - CONTROLLED Market Statistics and Dividends 16.00 Market Cap (QR Billion) 14.00 12.00 QAR 7.81 bn 10.00 8.00 6.00 4.00 2.00 - May-20 May-21 May-22 May-23 Apr-20 Apr-21 Apr-22 Apr-23 Jul-19 Oct-19 Feb-20 Mar-20 Jul-20 Oct-20 Feb-21 Mar-21 Jul-21 Oct-21 Feb-22 Mar-22 Jul-22 Oct-22
Slide 29: CAPEX (2024-2028)
CLASSIFICATION: C1 - CONTROLLED CAPEX (2024-2028) 29
Slide 30: CAPEX (2024-2028) – (QAMCO's Share)
CLASSIFICATION: C1 - CONTROLLED CAPEX (2024-2028) – (QAMCO’s Share) CAPEX: o Planned CAPEX (2024-28) include routine operations such as pot relining and other maintenance pertaining to power plant and anode plant. CAPEX overview 2024 2025 2026 2027 2028 (QAR’ m) Pot relining 19 21 72 112 126 CAPEX <
Slide 31: Historical performance (2019 - 2023)
CLASSIFICATION: C1 - CONTROLLED Historical performance (2019 - 2023) 31
Slide 32: Key Performance Indicators
CLASSIFICATION: C1 - CONTROLLED Key Performance Indicators Production (MT’000) – 100% Sales Volumes (MT’000) – 100% Selling Prices ($ / MT) 666 • 2023 Production remained highest since QAMCO’s incorporation. • 2023 Selling price fluctuated amid challenging macroeconomic context. Share of Revenue (QR
Slide 33: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure 33
Slide 34: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure Board structure Board committees • QAMCO Board of Directors consists of six (6) • The Board of Directors established Board Directors, all were appointed by the Special Committees and Special Committees to carry Shareholder “QatarEnergy”. out speci
Slide 35: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure Remuneration Shareholders’ rights Board of Directors • The Company’s Articles of Associations provide for • The Company has developed a periodically the rights of shareholders, particularly the rights to revisited remuneration policy for Board mem
Slide 36: THANK YOU
THANK YOU For further information, Qatar Aluminium Manufacturing Company can be contacted as follows: Telephone: (+974) 4013 2277 Fax: (+974) 4013 9750 E-mail: qamco.investorrelations@qataenergy.qa or qamco@qataenergy.qa Address: P. O. Box 3212, Doha, State of Qatar. Please refer to www.qamco.com.qa
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