Qatar Aluminium Manufacturing Company · QSE:QAMC
Qatar Aluminium Manufacturing — FY2020 Earnings Presentation
28 slides from Qatar Aluminium Manufacturing's earnings presentation, Dec 31, 2020
Slide 1: Qatar Aluminium Manufacturing Company Investor Relations Presentation
Qatar Aluminium Manufacturing Company Investor Relations Presentation 31 December 2020
Slide 2: Disclaimer
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.C. This presentation may contai
Slide 3: Table of Content
Table of Content 1. About QAMCO 2. Ownership Structure 3. Board of Directors 4. Competitive advantages 5. Results at a Glance (For the year ended 31 December 2020) 6. Market statistics and dividends 7. Operations of joint venture 8. CAPEX and Cash flows (2021 - 2025) 9. Results at a Glance (2019) 10
Slide 4: About QAMCO
About QAMCO 4 QAMCO, IR Presentation, Q4-20
Slide 5: About QAMCO
About QAMCO • Qatar Aluminum Manufacturing Company • The Authorized share capital is QR Q.P.S.C (QAMCO) was incorporated on 5,580,120,000 divided into 5,580,119,999 December 3, 2018 and listed on Qatar ordinary Shares and one (1) Special Share. The Stock Exchange on December 16, 2018. free float con
Slide 6: Ownership Structure
Ownership Structure Qatar Petroleum Public (51%) (49%) QAMCO Qatalum Joint Venture (50%) 6 QAMCO, IR Presentation, Q4-20
Slide 7: About QAMCO
About QAMCO • QAMCO Board of Directors consist of: Mr. Abdulrahman Ahmad Al-Shaibi Chairman Mr. Ahmad Saeed Al-Amoodi Mr. Mohammed Essa Al-Mannai Vice Chairman Member Mr. Mohammed Jaber Al-Sulaiti Mr. Nabeel Mohammed Al-Buenain Member Member Mr. Khalid Mohammed Laram Member 7 For detailed biographie
Slide 8: Competitive Advantages
Competitive Advantages Low cost aluminium Proven financial position smelter • Focused investment for aluminium segment • Positive share of operating profit margins from its • State of the art production facility and technology joint venture deployed • Healthy share of operating cash flow generation
Slide 9: Results at glance (For the year ended December 2020)
Results at glance (For the year ended 31 December 2020) 9 QAMCO, IR Presentation, Q4-20
Slide 10: Key Performance Indicators
Key Performance Indicators For the year ended 31 December 2020 Production (MT’000) – 100% • 2020 production volumes remained at par as compared to 2019. • Q4-20 production volumes marginally increased by 1% on Q3-20, due to better operating rates. • Production not affected by COVID-19. Sales Volumes
Slide 11: Key Performance Indicators - QAMCO share in JV
Key Performance Indicators For the year ended 31 December 2020 - QAMCO share in JV Share of Revenue (QR million) • 2020 vs 2019: Share of revenue declined, mainly due to declining trends in selling prices. • Q4-20 vs Q3-20: Share of revenue increased, mainly due to improved selling prices (+16%) wit
Slide 12: Net Profit Variance Analysis
Net Profit Variance Analysis (QR in Million) QAMCO reported a net profit of QR 95 million, a decline in profitability by 1% compared to the year 2019. Results affected by Joint Venture performance due to: Favorable movements a) Decline in cost of goods sold due to lowered raw materials, maintenanc
Slide 13: Analysis of Selling Prices
Analysis of Selling Prices Selling Prices ($ / MT) o 2020 average selling prices declined from 2019 due to persistent challenging macroeconomic conditions pressuring LME LME Price LME Premium difference prices. LME LME o 2020 vs 2019 LME premiums declined mainly due to unprecedented shift in product
Slide 14: Analysis of EBITDA margins
Analysis of EBIDTA margins Despite pressured primary aluminium prices globally, QAMCO’s JV EBIDTA margins remained robust and resilient 2,200 36.0% 37% Primary Aluminium Price (USD/ton) QAMCO’s JV EBITDA Margins (%) 2,100 35% 2,000 LME 33% 1,900 1,800 31% 29.4% 1,700 28.2% 29% 27.8% 27.4% 1,600 26.4
Slide 15: Geographic analysis – QAMCO JV revenue
Geographic analysis – QAMCO JV revenue Asia remained QAMCO JV’s largest market, while its presence in US and Europe continued to be substantial Europe 19% Qatar North America 3% Asia 14% 64% 15 QAMCO, IR Presentation, Q4-20
Slide 16: QAMCO JV revenue – product mix (%)
QAMCO JV revenue – product mix (%) Extrusion ingots along with foundry alloys remains key products for QAMCO’s JV. Contribution of standard ingots to overall revenue mix increased in 2020, as the production moved from value added products (VAP) to standard ingots for a certain period during the
Slide 17: Market Statistics and dividend distribution
Market Statistics and dividend distribution 17 QAMCO, IR Presentation, Q4-20
Slide 18: Market Statistics and Dividends
Market Statistics and Dividends 8.00 Market Cap (QR Billion) 7.00 6.00 QAR 5.4 bn 5.00 4.00 3.00 2.00 1.00 - Dividend distribution since incorporation Interim Final Final * Dividend - Dividend - Dividend - Total 2019 2019 2020 QR 111.6m QR 55.8m QR 195.3 m QR 362.7m QR 0.02 per QR 0.01 per QR 0.035
Slide 19: Operations of Joint Venture
Operations of Joint Venture 19 QAMCO, IR Presentation, Q4-20
Slide 20: QAMCO’s Joint Venture
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 a first quartile cost position, one of the industry’s highest profit margins and strong ca
Slide 21: QAMCO’s Joint Venture
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 product's. The Marketing and Offtake Agreement gives Qatar Aluminium (Qatalum) access to Hydro Aluminium’s worldwide sales netw
Slide 22: CAPEX and Cash Flows (2021-2025) – (QAMCO’s Share)
CAPEX and Cash Flows (2021-2025) – (QAMCO’s Share) CAPEX: o Planned CAPEX (2021-25) include routine operations such as pot relining and other maintenance pertaining to power plant and anode plant. Cash Flows: Cash Flows (QAR’ m) 2021 2022 2023 2024 2025 o Impressive cash flows from Net operating cas
Slide 23: Results at glance (2019)
Results at glance (2019) 23 QAMCO, IR Presentation, Q4-20
Slide 24: Key Performance Indicators
Key Performance Indicators (For the 13 month period ended 31 December 2019 - QAMCO share in JV) Production (MT’000) – 100% Sales Volumes (MT’000) – 100% Selling Prices ($ / MT) • Production and sales volumes were marginally higher in comparison to the last pro-forma period. • Selling prices remained
Slide 25: Governance Structure
Governance Structure 25 QAMCO, IR Presentation, Q4-20
Slide 26: Governance Structure
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 “Qatar Petroleum”. QP appoints out specific tasks. The B
Slide 27: Governance Structure
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 members. receive dividends, attend
Slide 28: 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@qp.com.qa or qamco@qp.com.qa Address: P. O. Box 3212, Doha, State of Qatar. Please refer to www.qamco.com.qa for the
Qatar Aluminium Manufacturing Company — FY2020 Earnings Presentation on 6ix