Aluminium Bahrain B.s.c · BAHRAIN:ALBH
Aluminium Bahrain B.s.c — Q1 2022 Earnings Presentation
31 slides from Aluminium Bahrain B.s.c's earnings presentation, 2022
Slide 1: Investor Relations Presentation Q1 2022
INVESTOR RELATIONS PRESENTATION Q1 2022
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 Q1 2022 Highlights Highlights Results 04 05 06 Industry Perspectives 2022 Alba Appendix in 2022 Priorities Page 3
Slide 4: Industry Highlights
01 INDUSTRY HIGHLIGHTS1 1 Industry Highlights are based on CRU Market Intel Page 4
Slide 5: Economics of War & World Consumption Flat (+1% YoY)
Economics of War & World Consumption Flat (+1% YoY) Having started to recover from COVID-19 pandemic, the Russo-Ukrainian war raised new challenges for commodities and created mixed market sentiment. Markets for commodities, foreign exchanges, equities and debt are all adjusting to the shock of war
Slide 6: World Market Supply Down by 2% YoY
World Market Supply Down by 2% YoY The war in Ukraine has flagged strong differences between China and the Rest of the World (ROW) with LME and SHFE prices moving in opposite directions Middle East supply up by 4% YoY (Bahrain up by 1% & UAE by 7% YoY) China: COVID lockdowns weighed on growth with s
Slide 7: LME Price & Premiums
LME Price & Premiums Strong Aluminum fundamentals supported highest quarterly AVG LME Aluminum price since 1988. LME-Cash averaged US$3,267/t - up by 56% YoY [lowest: US$2,815.50/t on 4 Jan’22 and highest: US$3,984.50/t on 7 Mar’22] LME inventories remain low at ~0.6 million MT as of 31 Mar’22 (down
Slide 8: Alumina Price: 13% of LME Price
Alumina Price: 13% of LME Price [US$432/t] LME Price Trend (US$/t) 3,700 3,267 3,300 2,900 2,764 2,647 2,399 2,500 2,092 2,100 1,700 1,300 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Alumina Price Index Trend (% of LME) 18% 16% 14% 14% 14% 13% 12% 12% 12% 10% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Page
Slide 9: Alba Highlights
02 ALBA HIGHLIGHTS1 1 Alba Highlights relate to Alba official news Page 9
Slide 10: Major Environment, Social and Governance (ESG) Highlights
Major Environment, Social and Governance (ESG) Highlights Alba inked a MoU with Mitsubishi Heavy Industries to collaborate on opportunities to reduce Alba’s carbon footprint Spent Pot Lining Treatment Plant in full operational swing to produce HiCal (125 tonnes were shipped to Thailand) Alba won Bri
Slide 11: ESG Roadmap for Alba's Race to Net Zero
ESG Roadmap for Alba’s Race to Net Zero › Energy Management System (EMS) & Power Station Efficiency › Afforestation & Reforestation Decarbonisation › Inert Anode Technology › Hydrogen › Carbon Capture & Storage (CC&S) & Carbon Offsets › On-site Solar Green Energy & Aluminium › Government Collaborati
Slide 12: Safety in Numbers: Highest Ever Achieved in Alba's History
Safety in Numbers # Total Injuries 120 105 # Recordable Injuries 100 # LTIs 80 60 59 60 49 40 34 20 4 0 2017 2018 2019 2020 2021 Q1 2022 Highest Ever Achieved in Alba’s 57 32 12 12 11 4 History (30 April 2022) 6 3 0 1 0 0 Page 12
Slide 13: Major Operational Highlights
Major Operational Highlights Sales’ volume topped 354,216 metric tonnes (MT), down by 0.3% YoY while Production reached 391,050 MT, up by 2.4% YoY Value Added Sales averaged 65% of the total shipments versus 62% in Q1 2021 [VAP: 230,467 MT up by 5.4% YoY] Effective 01 April 2022, natural gas price a
Slide 14: Financial Key Performance Indicators – Q1 2022
Financial Key Performance Indicators – Q1 2022 EBITDA - driven by higher Free Cash Flow1 - impacted LME price & premiums by working capital changes US$492 million up by US$390 million up by Q4: US$316 million 105% YoY 181% YoY up by 7,933% YoY Net Income - driven by higher EBITDA 1Free Cash Flow exc
Slide 15: AL HASSALAH Initiative: Save US$100 Million by 2022
AL HASSALAH Initiative (2-Year): Save US$100 Million by 2022 AL HASSALAH (US$ Million) Breakdown by Value Chain (US$ Million) Saving US$45.38/MT Raw Materials’ Sourcing &Others Power 5 11 100 89 71 US$100M 47 Operations 37 18 Sales, Marketing & Casthouse Achieved Achieved Cumulative Target 2022 2021
Slide 16: Q1 2022 Results
03 Q1 2022 RESULTS Refer to Alba’s 2021 Financial Statements Page 16
Slide 17: Metal Sales Bridge Analysis: Q1 2022 vs. Q1 2021
Aluminium Industry: Volatile Market Conditions Push LME Price Higher Metal Sales Bridge Analysis: Q1 2022 vs. Q1 2021 Higher Metal Sales Thanks to Higher LME Prices & Premiums Metal Sales’ Bridge (US$M) – Q1 2022 vs. Q1 2021 1,400 80 3 1,100 0 349 by 110% 800 in Premium 1,210 by 56% 500 784 in LME P
Slide 18: Sales by Product-Line Bridge and Premium Above LME
Aluminium Industry: Volatile Market Conditions Push LME Price Higher Higher Premiums │ Higher VAP & Lower Commodities’ Volume Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q1 2022 vs. Q1 2021 400 1 450 12 14 350 400 350 300 300 +110 % 250 355 250 354 427 200 200 150 150 20
Slide 19: Cost Analysis Q1 2022 vs. Q1 2021
Aluminium Industry: Volatile Market Conditions Push LME Price Higher Cost Analysis Q1 2022 vs. Q1 2021 Higher Direct Cost Due to Higher Alumina & Other Raw Materials’ Price Direct Cost Bridge (US$M) – Q1 2022 vs. Q1 2021 850 700 101 21 57 11 5 0 121 550 400 664 536 250 100 Direct Cost RM RM Energy O
Slide 20: EBITDA Bridge Gap Analysis – Q1 2022 vs. Q1 2021
Aluminium Industry: Volatile Market Conditions Push LME Price Higher EBITDA Bridge Gap Analysis – Q1 2022 vs. Q1 2021 Strong EBITDA Margin at 40.7% EBITDA Bridge (US$M) – Q1 2022 vs. Q1 2021 800 600 21 128 EBITDA 40.7% 426 25 400 EBITDA 29.8% 492 200 240 0 EBITDA Metal Other Direct Selling EBITDA Q1
Slide 21: Cash-Flow Bridge – FY 2021 to Q1 2022
Aluminium Industry: Volatile Market Conditions Push LME Price Higher Cash-Flow Bridge – FY 2021 to Q1 2022: Sound Cash Position FY 2021 to Q1 2022 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 800 360 700 132 310 600 35 260 6 12 500 483 210 200 316 160 400 110 300 60 346 -4 200 10 248 100 -40 Cash C
Slide 22: Financial Summary: Strong Performance Supported by High LME Prices
Aluminium Industry: Volatile Market Conditions Push LME Price Higher Strong Financial Performance Supported by High LME Prices Financial Summary Q1 2022 Q1 2021 Average Cash LME (US$/MT) 3,267 2,092 Average Alumina Price (US$/MT) 432 298 Revenue1 (US$M) 1,210 805 EBITDA (US$M) 492 240 EBITDA% 40.7%
Slide 23: Industry Perspectives in 2022
04 INDUSTRY PERSPECTIVES1 IN 2022 1 Industry Perspectives are based on CRU Market Intel Page 23
Slide 24: Aluminium Market Remain Bullish on Firm Demand & Tight Supply
Aluminium Market Remain Bullish on Firm Demand & Tight Supply A reviving US$, acceleration in smelter output growth in China on the back of restarts, and concerns over the impact of the Russo-Ukrainian War on global economic activity are likely to trigger a correction in LME Aluminium price Chinese
Slide 25: Raw Materials Price Trends
Industry Perspectives in 2022 Raw Materials Price Trends (Al₂O₃, AlF3 and GPC) Alumina spot price to trend lower amidst higher availability of spot cargoes and lower Alumina refining production costs Aluminium Fluoride to remain at the current higher levels due to political unrest and increased frei
Slide 26: 2022 Alba Priorities
05 2022 ALBA PRIORITIES Page 26
Slide 27: 2022 Alba Priorities
2022 Alba Priorities ESG Focus & Journey Towards Safety Excellence Deliver on newly-launched ESG roadmap in line with Bahrain’s Objectives for ‘Net Zero Emissions’ by 2060 Embed ESG in the Company’s operations and processes as well as deliberate with various stakeholders and partners potential ESG i
Slide 28: Appendix
06 APPENDIX Page 28
Slide 29: 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 30: Alba Share Price Performance
P a g e 3 0 Alba Share Price Performance [Alba, BHD] 1.85 1.65 1.470 1.45 1.25 84% YoY 1.05 0.85 0.800 0.65 0.45 0.25 Page 30
Slide 31: For more information, please contact us
For more information, please contact us on: IR@alba.com.bh Alba4World Alba4World user/Alba4World Alba4World Page 31
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