Alro S.a. · BVB:ALR
Alro — Q3 2017 Earnings Presentation
23 slides from Alro's earnings presentation, Nov 20, 2017
Slide 1: Financial Results for 1-3Q 2017 – Alro Stand-alone
Financial Results for 1-3Q 2017 – Alro Stand-alone 20 November 2017
Slide 2: Contents
vimetco =m aliro == Contents Overview
Slide 3: Overview
Overview Compared to 9 months 2016: Total deliveries were up by 3.2%; high value-added deliveries increased by 7.4%; Sales increased by 18.0%, supported mainly by higher aluminium prices; EBITDA doubled as compared to 1-3Q 2016; EBITDA margin improved to 18.0% from 10.6% in the same period las
Slide 4: Contents: Operational Highlights 1-3Q 2017
Contents • Operational Highlights 1-3Q 2017 20/11/2017 4
Slide 5: Operational Highlights – Production - Aluminium
Operational Highlights – Production - Aluminium Casting facilities Processing facilities • During 1-3Q 2017, Alro increased its primary aluminium production by • In 1-3Q 2017, Alro stand-alone increased its production of flat rolled 2.7% YoY, changing the production mix in the favor of slabs and wir
Slide 6: Operational Highlights – Sales - Aluminium (1 of 2)
Operational Highlights – Sales - Aluminium (1 of 2) In 1-3Q 2017, Alro’s sales of primary products increased by 1.1% YoY in Primary aluminium sales (tonnes) 1-3Q 2017 volume terms. Sales of wire rod recovered significantly from the period of weak demand that marked the previous four quarters and inc
Slide 7: Operational Highlights – Sales - Aluminium (2 of 2)
Operational Highlights – Sales - Aluminium (2 of 2) • Over the past years, Alro has been focused on increasing the share of Primary vs FRP evolution (% of sales, value terms) value-added products in its portfolio, starting even to deliver directly to the 100% aerospace industry last year. This focus
Slide 8: Contents: Financial Highlights 1-3Q 2017
Contents • Financial Highlights 1-3Q 2017 20/11/2017 8
Slide 9: Financial Performance – Alro Stand-alone
Financial Performance – Alro Stand-alone Income Statement Sales – In 1-3Q 2017, Alro’s stand-alone sales increased by RON '000 1-3Q 1-3Q YoY Q3 Q3 YoY 18% YoY, supported by the hike in LME aluminium quotation 2017 2016 change 2017 2016 change (up 22.5% YoY) and by higher sales volumes, which offset
Slide 10: Alro stand-alone – Sales and profitability evolution
Alro stand-alone – Sales and profitability evolution Sales, LME & realized premia Profit margins evolution 2,500 9,000 30% 2,250.1 2,230.4 2,299.2 2,127.1 8,000 25% 1,948.3 1,994.1 21% 2,000 1,861.8 7,000 20% 18% 1,577.6 6,000 14% 15% 14% 14% 1,500 12% RON/t mn RON 5,000 12% 11% 10% USD 921 10% USD
Slide 11: Alro stand-alone – EBITDA and adjusted EBITDA evolution
Alro stand alone – EBITDA and adjusted EBITDA evolution Adjusted EBITDA & LME + FX Cost of electrolytic (%) 500,000 482,985 9,000 USD 1,923 100 8,000 400,000 7,000 335,995 80 6,000 291,979 USD 1,570 Other 300,000 RON/t '000 RON 254,715 246,232 5,000 Overheads 4,000 60 200,000 Direct salaries incl. t
Slide 12: Alro stand-alone – Net result evolution vs. 1-3Q 2016
Alro stand alone – Net result evolution vs. 1-3Q 2016 Alro stand alone Net result 9 mo 2017 vs. 9 mo 2016 (RON m) 650 Alro Revenue: RON 284.2 mn Alro COGS: -RON 85.6 mn 550 450 263.2 (35.9) (2.9) (28.1) 7.5 (68.3) 350 3.3 14.8 12.1 (29.7) (29) (7.2) 250 59.8 150 223.4 50 63.8 (50) Revenues: as previ
Slide 13: Statement of Financial Position (1 of 2)
Financial Statements – stand-alone Statement of Financial Position (1 of 2 ) Property, plant and equipment RON '000 30-Sep-17 31-Dec-16 % In 1-3Q 2017, Alro stand-alone spent some RON 101.3m on Assets PP&E, 83% more than in the same period of 2016. The Non-current assets acquisitions were mainly rel
Slide 14: Statement of Financial Position (2 of 2)
Financial Statements – stand-alone Statement of Financial Position (2 of 2) Bank loans RON '000 30-Sep-17 31-Dec-16 % No new loans were contracted by Alro in 1-3Q 2017. In April Share capital 370,037 370,037 0% 2017, Alro repaid a USD 2.7m loan. Share premium 86,351 86,351 0% We note that, at the en
Slide 15: Cash Flow
Financial Statements – stand-alone Cash Flow RON '000 1-3Q 2017 1-3Q 2016 Q3 2017 Q3 2016 In 1-3Q 2017, Alro stand-alone exhibited noteworthy cash generating abilities and the cash generated from operations Cash flow from operating activities increased 3.4 times YoY. This was mainly the consequence
Slide 16: Alro stand-alone – CAPEX and treasury management
Alro stand-alone – CAPEX and treasury management Capex dynamics Alro's debt evolution 1,200,000 45.0 40.0 1,000,000 35.0 800,000 RON '000 30.0 600,000 USD mn 25.0 20.0 400,000 Debt structure 15.0 200,000 10.0 19.0% - 5.0 Dec-14 Dec-15 Dec-16 Sep-17 USD - Total Loans Cash and cash equivalents 16.5% E
Slide 17: Contents: Outlook
Contents • Outlook 20/11/2017 17
Slide 18: Market Outlook
Market Outlook In Q317, aluminium continued its strong performance, increasing by 5.4% QoQ and 24% YoY. September was the month with the highest average quotation (i.e. USD 2,100/t), supported by the news flow on capacities shut down in China, bigger than previously expected. Supply – capacity c
Slide 19: Contents: Appendices
Contents • Appendices 20/11/2017 19
Slide 20: Alro Stand-alone info
Alro Stand-alone info Company Parent Shareholding Smelting (%) Alro S.A. Vimetco NV 84.19 Alum S.A. Alro S.A. 99.4 Conef S.A. Alro S.A. 99.97 Vimetco Extrusion SRL Alro S.A. 100.00 Global Aluminium Ltd. Alum S.A. 100.00 Casting Processing Bauxite Marketing Ltd. Global Aluminium Ltd. 100.00 Sierra Mi
Slide 21: Supporting information – Adjusted Net Result calculation
Supporting information – Adjusted Net Result calculation Alro stand-alone – Adjusted Net Result RON '000 1-3Q 2017 1-3Q 2016 Q3 2017 Q3 2016 Net result 223,424 63,796 67,474 24,717 Impairment of non-current assets - (844) - - Derivative financial instruments that do not qualify 2,471 17,805 2,513 57
Slide 22: Supporting information – Adjusted EBITDA calculation
Supporting information – Adjusted EBITDA calculation (Alro stand-alone) Alro stand – alone – Adjusted EBITDA RON '000 2011 2012 2013 2014 2015 2016 1-3Q 2016 1-3Q 2017 EBITDA 482,794 292,164 (6,743) 114,700 223,501 246,627 167,255 335,995 EBITDA Margin (%) 21.3% 13.1% -0.3% 5.8% 9.7% 11.6% 10.6% 18.
Slide 23: Cautionary statement
Cautionary statement These materials are being supplied to you solely for your information and may not be reproduced in any form, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, by any medium or for any purpose. Failure to comply with this r