Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Deutsche Bank 8th Annual Global Industrials & Materials Summit Conference 2017
18 slides from Century Aluminum's conference presentation, Jun 8, 2017
Slide 1: Deutsche Bank Conference
Deutsche Bank Conference June 8, 2017
Slide 2: Cautionary Statement
Cautionary Statement This presentation and comments made by Century Aluminum management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the S
Slide 3: Group Overview
Group Overview • Formed early 1990s from Glencore’s aluminum assets • Glencore remains major shareholder ‒ 43% voting interest ‒ 1 (of 5) Board seats • Strategy focused on primary (upstream) portion of value chain • Current annualized revenue $1.5B • Current equity market capitalization $1.3B 3
Slide 4: Century at a Glance
Century at a Glance ($MM, except per share and tonne amounts) Aluminum Smelter Grundartangi, Iceland Corporate Headquarters Chicago, IL Carbon Anode Plant Vlissingen, Netherlands Aluminum Smelter Hawesville, KY(2) Aluminum Smelter Aluminum Smelter Mt. Holly, SC(2) Carbon Anode Plant Sebree, KY Guang
Slide 5: Strategy
Strategy • Best-in-class safety culture and performance • Revenue expansion ‒ Hot metal capacity creep ‒ Upgrade of product mix ‒ Opportunistic acquisitions • Continue cost structure improvement ‒ Global power ‒ Productivity initiatives at all plants • Maintain robust financial profile ‒ Preserve le
Slide 6: Primary Aluminum Producer
Primary Aluminum Producer U.S. • Hawesville • Mt. Holly − 245k tonnes operating capacity − 230k tonnes operating capacity − 2 of 5 pot lines in operation − 1 of 2 pot lines in operation − Premium purity, molten and sow (standard grade) − Premium billet, foundry and other value- added products • Sebr
Slide 7: Global Production
Global Production % of Global Production 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 China USA Source: CRU Group 7
Slide 8: LME Prices
$/T 1300 1400 1500 1600 1700 1800 1900 2000 1/2/2015 2/2/2015 3/2/2015 4/2/2015 5/2/2015 6/2/2015 7/2/2015 8/2/2015 9/2/2015 LME Prices 10/2/2015 11/2/2015 12/2/2015 1/2/2016 2/2/2016 3/2/2016 4/2/2016 5/2/2016 LME Cash Price 6/2/2016 7/2/2016 8/2/2016 9/2/2016 10/2/2016 11/2/2016 12/2/2016 1/2/2017
Slide 9: Trade Update
Trade Update • WTO trade case brought against illegal Chinese subsidies on primary aluminum • Recent announcements suggest Chinese to implement supply cuts • U.S. administration launched section 232 trade investigation into aluminum on national security 9
Slide 10: Potential Restarts
Potential Restarts • Mt. Holly – 1 of 2 pot lines (115k tonnes) curtailed ‒ Monopoly utility forcing purchase of 25% of power requirement at unregulated rate ‒ Purchasing 75% of power requirement from competitive wholesale market ‒ Blended rate not competitive ‒ Antitrust suit against monopoly utili
Slide 11: Financial Summary
Financial Summary $MM Q117 Results Net Sales $366 Adjusted EBITDA(1) 22 Other data LME/T w/ 2 month lag $1,752 EBITDA quarterly sensitivity per $100/T LME 16 Balance Sheet Cash $126 Revolver availability 100 Gross debt 258 (1) See reconciliation in appendix 11
Slide 12: Appendix
Appendix Non-GAAP Financial Measures Adjusted EBITDA, adjusted net income (loss) and adjusted earnings (loss) per share are non- GAAP financial measures that management uses to evaluate Century's financial performance. These non-GAAP financial measures facilitate comparisons of this period’s results
Slide 13: Q1 2017 Summary Results
Q1 2017 Summary Results ($MM, except per share and tonne amounts) Q416 Q117 Income statement Shipments (tonnes) 183,210 186,395 Net sales $ 340 $ 366 Adjusted EBITDA(1) 12 22 Adjusted net loss(1) (12) (5) (1) Adjusted EPS $ (0.12) $ (0.05) Liquidity Cash $ 132 $ 126 Revolver availability 100 100 Tot
Slide 14: Adjusted Net Income (Loss) GAAP Reconciliation
Adjusted Net Income (Loss) GAAP Reconciliation Q416 Q117 $MM EPS $MM EPS Net loss as reported $ (168.5) $ (1.93) $ (15.1) $ (0.17) Helguvik impairment 152.2 1.75 - - Unrealized loss on forward and derivative contracts - - 14.0 0.16 Discrete tax items 6.9 0.08 - - LCM inventory adjustment (2.1) (0.02
Slide 15: Adjusted EBITDA GAAP Reconciliation
Adjusted EBITDA GAAP Reconciliation ($MM) Q416 Q117 Net loss $ (168.5) $ (15.1) Interest expense 5.7 5.6 Interest income (0.3) (0.2) Net (gain)/loss on forward & derivative contracts (0.5) 16.1 Other expense - net (1.8) (0.4) Income tax 6.1 (0.3) Equity in earnings of joint ventures (0.4) (0.5) Oper
Slide 16: 2017 Sensitivities
2017 Sensitivities ($MM) Variance Annual EBITDA LME(1) +/- $100/T $ 62 (2) MWP +/- $0.01/lb $ 9 EDPP(3) +/- $22.04/T $ 7 MISO Indiana Hub(4) +/- $1/MWh $ 5 (5) NYMEX Henry Hub Nat Gas +/- $0.10/MMBtu $ 1 Alumina Index Price +/- $10/T $ 14 Notes (1) Includes LME Hedges in place as of February 23, 201
Slide 17: For Additional Information
For Additional Information Peter Trpkovski Finance Manager peter.trpkovski@centuryaluminum.com 312-696-3112 (Office) Century Aluminum Company One South Wacker Dr, Suite 1000 Chicago, IL 60606 312-696-3102 (Fax) www.centuryaluminum.com 17
Slide 18: Centuryawminum |
Centuryawminum |