Aluminium Bahrain B.s.c · BAHRAIN:ALBH
Aluminium Bahrain B.s.c — Q2 2024 Earnings Presentation
37 slides from Aluminium Bahrain B.s.c's earnings presentation, August 2024
Slide 1: Investor Relations Presentation Q2 & H1 2024
INVESTOR RELATIONS PRESENTATION Q2 & H1 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 Industry Alba Q2 2024 Highlights Highlights Results 04 05 06 Industry Perspectives 2024 Alba Appendix in 2024 Priorities H1 2024 Page 3
Slide 4: Industry Highlights
01 INDUSTRY HIGHLIGHTS1 1 Industry Highlights are based on CRU Market Intel Page 4
Slide 5: Slow Demand Recovery Amidst Macroeconomic Challenges (+2% YoY)
Slow Demand Recovery Amidst Macroeconomic Challenges (+2% YoY) The global economy continues to face several challenges including persistent inflation, geopolitical tensions, and supply chain disruptions. These challenges have collectively contributed to a passive demand environment. While certain se
Slide 6: Global Aluminium Production rises 3%
Global Aluminium Production rises 3% Despite overall weak demand, global primary production rose due to higher output in China, Europe, and the Middle East. Chinese supply climbed 4%YoY as Yunnan smelters operated at full capacity except for Yunnan Hongtai smelter as heavy June rains boosted hydropo
Slide 7: LME Price & Premiums
LME Price & Premiums LME price averaged US$2,519/t in Q2 2024, up by 11% YoY. Prices fluctuated between a low of US$2,322.50/t on 2 April 2024) and a high of US$2,695/t on 29 May 2024. LME inventories jumped 88% YoY reaching about 1 million tonnes, fuelled by growing stockpiles of Russian metal in L
Slide 8: Alumina Price Index (API): 16% of LME Price
Alumina Price Index (API): 16% of LME Price [US$392/t] LME Price Trend (US$/t) 2,600 2,519 2,263 2,200 2,155 2,190 2,200 1,800 1,400 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Alumina Price Index Trend (% of LME) 19% 17% 17% 16% 16% 16% 16% 13% 10% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Page 8
Slide 9: Alba Highlights
02 ALBA HIGHLIGHTS1 1 Alba Highlights relate to Alba official news which have been made public during Q2 2024 Page 9
Slide 10: Safety in Numbers
Safety in Numbers 60 59 49 50 40 35 34 32 30 20 10 12 12 11 10 9 9 2 0 0 1 0 1 1 0 2019 2020 2021 2022 2023 Q2 2024 22 Million Safe Hours w/o LTI on 06 August 2024 Total Injuries Recordable Injuries Lost Time Injuries Page 10
Slide 11: Alba Celebrates ESG Achievements and Plans Future Course
Alba Celebrates ESG Achievements and Plans Future Course Safety First. Safety Always Alba wins four Awards from the National Safety Council. Empowering People Alba Signs cooperation protocols with the Company’s two trade unions. 24 National Employees advance in Mechanical Engineering Programme at th
Slide 12: Alba's low carbon aluminium product line: EternAl-30 and EternAl-15
Alba’s low carbon aluminium product line with two initial variants: EternAl-30 and EternAl-15 with 30% and 15% recycled content Page 12
Slide 13: 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 14: Major Operational Highlights – Q2 2024
Major Operational Highlights – Q2 2024 Sales’ volume topped 397,538 metric tonnes (MT), up by 1% YoY while Production dipped slightly by 0.5% YoY to reach 403,747 MT. Value Added Sales accounted for 73% of the total sales’ shipments [VAP: 288,312 MT in Q2’24 versus 272,944 MT in Q2’23]. Alba inks an
Slide 15: 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 16: Financial Key Performance Indicators – Q2 & H1 2024
Financial Key Performance Indicators – Q2 & H1 2024 EBITDA: Primarily driven by Free Cash Flow1: Impacted by LME price & premiums changes in working capital Q2: US$182 million up by 129% YoY Q2: US$289 million H1: US$247 million Q2: US$145 million up by 42% YoY up by 20% YoY up by 9% YoY H1: US$469
Slide 17: Q2 2024 Results
03 Q2 2024 RESULTS Reference: Interim Condensed Consolidated Financial Statements for the Period Ended 30 June 2024 Page 17
Slide 18: Metal Sales Bridge Q2 2024 vs Q2 2023
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Metal Sales See Uptick: LME Strength Counterbalances Lower Premiums Metal Sales’ Bridge (US$M) – Q2 2024 vs. Q2 2023 1,100 1 14 55 28 800 by 11 % YoY in LME Price by 21% YoY 1,029 in Premiums 1,071 500 200 Metal Sales LME Pricing Impact
Slide 19: Sales by Product-Line Bridge Q2 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Higher VAP │ Lower Liquid Metal │ Lower Commodities’ Volume Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q2 2024 vs. Q2 2023 450 400 400 16 2 8 300 21% 350 200 300 392 327 398 257 100 250 0 200 Q2 2023 Q2 2024
Slide 20: Direct Cost Bridge Q2 2024 vs Q2 2023
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Lower Raw Material Prices Helped Control Direct Costs Despite Higher Costs in Other Areas Direct Cost Bridge (US$M) – Q2 2024 vs. Q2 2023 800 7 16 11 750 51 12 4 0 700 650 784 751 600 550 500 Direct Cost RM RM Energy Other Alumina Invent
Slide 21: EBITDA Bridge Gap Analysis – Q2 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry EBITDA Bridge Gap Analysis – Q2 2024 vs. Q2 2023 Higher EBITDA Owing to Higher Metal Sales & Lower Direct cost EBITDA Bridge (US$M) – Q2 2024 vs. Q2 2023 EBITDA 27% 300 12 33 1 EBITDA 20% 41 200 289 100 204 0 EBITDA Metal Other Direct Se
Slide 22: Cash-Flow Bridge – Q1 2024 to Q2 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Cash-Flow Bridge – Q1 2024 to Q2 2024 Q1 2024 to Q2 2024 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 600 200 500 99 400 51 150 295 10 300 102 100 0 145 200 133 249 50 100 216 0 0 Cash CF WC General Block 4 Net Debt Payment Cash Q2 2023
Slide 23: Key Financial Performance Indicators
Key Financial Performance Indicators Particulars Q2 2024 Q2 2023 H1 2024 H1 2023 Revenue1 (US$M) 1,082 1,029 1,972 2,013 EBITDA (US$M) 289 204 469 433 EBITDA% 27% 20% 24% 22% Profit (US$M) 182 80 247 206 Loss Unrealised (1) - - - Derivatives (US$M) Adjusted Profit2 (US$M) 183 80 247 206 AVG Cash LME
Slide 24: Industry Perspectives in 2024
04 INDUSTRY PERSPECTIVES1 IN 2024 1 Industry Perspectives are based on CRU Market Intel Page 24
Slide 25: Aluminium Market Outlook: Uncertainties Cloud Short-Term Prospects
Aluminium Market Outlook: Uncertainties Cloud Short-Term Prospects Market Uncertainty Persists: Market sentiment remains cautious due to a complex interplay of factors affecting LME prices. Supply-Demand Dynamics: Increased global production, particularly from China, combined with passive demand, is
Slide 26: Industry Perspectives in 2024: Feedstock Trends
Industry Perspectives in 2024 Feedstock Trends (Al₂O₃, AlF3 and GPC) Alumina Market The Alumina Price Index (API) has reached its highest point since March 2022 driven by production disruptions in Australia and China's bauxite sourcing challenges. Outlook is bullish with API expected to remain high
Slide 27: 2024 Alba Priorities
05 2024 ALBA PRIORITIES1 1 Based on Alba 5-Year Strategic Initiatives Page 27
Slide 28: Alba: Safe, Sustainable, Successful
Alba: Safe, Sustainable, Successful Leading the Way: Safety First, Sustainability Always Aligned with Bahrain's objective of net-zero emissions by 2060, Alba embeds sustainability principles in all operations, minimizing environmental impact from raw material sourcing to product delivery. Operationa
Slide 29: Appendix (H1 2024)
06 APPENDIX (H1 2024) Reference: Interim Condensed Consolidated Financial Statements for the Period Ended 30 June 2023 Page 29
Slide 30: Metal Sales Bridge H1 2024 vs H1 2023
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Lower LME Prices and Premiums Contracted Metal Sales, Partially Offset by Higher Volume 2,200 Metal Sales’ Bridge (US$M) – H1 2024 vs. H1 2023 1 24 29 60 1,700 1,200 2,013 1,949 700 200 Metal Sales LME Pricing Impact Product Mix Volume M
Slide 31: Sales by Product-Line Bridge H1 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Higher VAP │ Lower Commodities’ Volume Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT H1 2024 vs. H1 2023 38 800 0 350 29 600 24% 250 400 752 761 319 150 242 200 50 0 H1 2023 H1 2024 Sales Value Liquid Commodity
Slide 32: Direct Cost Bridge H1 2024 vs H1 2023
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Lower Raw Material Prices Helped Control Direct Costs Despite Higher Costs in Other Areas Direct Cost Bridge (US$M) – H1 2024 vs. H1 2023 1,500 14 51 30 0 23 11 90 1,300 1,100 1,494 1,431 900 700 500 Direct Cost RM RM Energy Other Alumin
Slide 33: EBITDA Bridge Gap Analysis – H1 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry EBITDA Bridge Gap Analysis – H1 2024 vs. H1 2023 EBITDA Bridge (US$M) – H1 2024 vs. H1 2023 EBITDA 24% 500 13 EBITDA 22% 64 400 65 24 300 469 433 200 100 EBITDA Metal Other Direct Selling EBITDA H1 2023 Sales Sales Cost Expenses H1 2024
Slide 34: Cash-Flow Bridge – FY 2023 to H1 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Cash-Flow Bridge – FY 2023 to H1 2024 FY 2023 to H1 2024 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 700 300 600 133 500 94 200 400 472 17 78 245 300 211 60 100 200 249 159 100 0 Cash CF WC General Block 4 Net Debt Pay. to Cash H1 2023
Slide 35: 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 36: CEO 2024 Objectives
alga se Aluminium for the world Aluminium Bahrain BSG. (Alba) «-p-c% G2 >4!! suit!
Slide 37: 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 37
Aluminium Bahrain B.S.C. (Alba) — Q2 2024 Earnings Presentation on 6ix