Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q2 2024 Earnings Presentation
26 slides from Century Aluminum's earnings presentation, Aug 8, 2024
Slide 1: Century Aluminum Company 2nd Quarter Earnings Call
Century Aluminum Company 2nd Quarter Earnings Call August 8, 2024
Slide 2: Cautionary Statement
Cautionary Statement Certain statements in this presentation, and those made by Century Aluminum Company management on the quarterly conference call, relate to future events and expectations and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 19
Slide 3: Speakers
Speakers • Jesse Gary – President and Chief Executive Officer • Jerry Bialek – Executive Vice President and Chief Financial Officer • Peter Trpkovski – Senior Vice President, Finance and Treasurer 2
Slide 4: Company and Market Update
Company and Market Update • Increased aluminum prices in Q2. Limited capacity additions as China commits to energy and CO2 reductions Industry • Global inventories remain at historical lows Fundamentals • Tight alumina supply has driven alumina market price to 2-year high • Additional trade measures
Slide 5: Industry Environment: Aluminum Supply and Demand Balance
Industry Environment Aluminum Supply and Demand Balance – FY24 Primary Aluminum Balance – US and EU 80 - 72.3 72.1 Primary Aluminum Balance (MT in 70 (0.5) Primary Aluminum (MT in MM's) (1.0) 60 (1.5) 50 42.8 44.5 (2.0) MM's) 40 (2.5) (2.3) 29.5 27.6 30 (3.0) (2.9) (3.0) (3.0) (3.5) (3.1) (3.1) 20 (
Slide 6: Industry Environment: LME, Alumina, Premiums, Power Rates
Industry Environment LME Aluminum Alumina Price Index 3,400 500 3,200 450 3,000 2,800 400 LME $/MT 2,600 API $/MT 350 2,400 2,200 300 2,000 250 1,800 200 1,600 1,400 150 Regional Premiums Power Rates 900 300 800 Regional Premiums $/MT 250 700 Power Rates $/MWh 600 200 500 400 150 300 100 200 100 50
Slide 7: Industry Environment: Smelter and Refinery Input Prices
Industry Environment Indy Hub $/MWh Coke $/MT Smelter Input Prices $70 $701 $558 $41 $35 $438 $33 $32 $392 $393 $27 $23 $287 $242 2019 2020 2021 2022 2023 2024 Spot 2019 2020 2021 2022 2023 2024 YTD Spot YTD Caustic $/MT HFO $/bbl $85 $824 Refinery Input Prices $68 $68 $67 $57 $58 $505 $384 $380 $36
Slide 8: Summary of Financial Results
Summary of Financial Results ($MM, except per share and tonne amounts) Q124 Q224 Income statement Aluminum shipments (tonnes) 174,627 167,908 Net sales $ 490 $ 561 Net income/(loss) 247 (3) Earnings/(loss) per share 2.26 (0.03) Adjusted net income/(loss)1 (3) 1 Adjusted earnings/(loss) per share1 (0
Slide 9: Financial Results: Q124 to Q224 Adjusted EBITDA
Financial Results Q124 to Q224 Adjusted EBITDA ($MM) 1 1 1) See reconciliation to comparable GAAP financial measure in appendix 8
Slide 10: Financial Results: Q124 to Q224 Cash Flow
Financial Results Q124 to Q224 Cash Flow ($MM) 1 1) See reconciliation to comparable GAAP financial measure in appendix 9
Slide 11: Q3 Outlook at Realized Prices
Q3 Outlook at Realized Prices Adjusted EBITDA1 $MM Q2 Actual Adjusted EBITDA Attributable to Century $34 LME / Delivery Premiums $30 - $40 LME $2,440/MT US Midwest Premium $425/MT European Duty Paid Premium $320/MT Energy ~$(5) Indy Hub $37/MWh HFO $67/bbl Henry Hub $2.25/mmbtu Raw Materials ~$ - Co
Slide 12: Appendix
Appendix
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA and net debt 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 result
Slide 14: Adjusted Net (Loss) Income Attributable to Century Non-GAAP Reconciliation
Adjusted Net (Loss) Income Attributable to Century Non-GAAP Reconciliation Q124 Q224 $MM EPS $MM EPS Net (loss) income attributable to Century stockholders $ 246.8 $ 2.66 $ (2.5) $ (0.03) Less: net (loss) income allocated to participating securities 13.2 0.14 - - Net income (loss) allocated to commo
Slide 15: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation $MM Q124 Q224 Net (loss) income attributable to Century stockholders $ 246.8 $ (2.5) Add: Net (loss) attributable to noncontrolling interests (2.1) (4.2) Net (loss) income 244.7 (6.7) Interest expense 9.2 10.3 Interest income (0.7) (0.6) Net loss (gain) on for
Slide 16: Financial Hedge Landscape
Financial Hedge Landscape Volume (unit) / % Hedged / Price/unit1 Commodity (unit) FY24 Q4 FY25 Volume % Hedged Price Volume % Hedged Price LME (MT) 16,000 9% $ 2,440 11,000 2% $ 2,615 MWP (MT) 7,000 7% $ 485 11,000 3% $ 485 EDPP (MT) - - - - - - Indiana Hub (MWh) 132,000 16% $ 45 206,000 6% $ 45 Nat
Slide 17: 2024 Financial Assumptions
2024 Financial Assumptions Income Statement ($MM) YTD FY24 Cash Flow ($MM) YTD FY24 Aluminum shipments (kMT) 342 700 Sustaining Capex $7 $10-15 Jamalco Capex1 $8 $10-15 D&A $42 $90-100 Iceland Casthouse $26 $20-30 SGA $26 $40-45 SGA $20 $35-40 Interest Expense $20 $35-40 Interest $17 $35-40 Varies b
Slide 18: 2024 Financial Information
2024 Financial Information Sensitivities ($MM) Variance Annual EBITDA7 Annual Cash8 Pricing Convention LME +/- $100/MT $ 46 $ 43 U.S.:50% ~1 month lag / 50% ~3 month lag LME MWP 1 +/- $22.04/MT 9 9 Iceland: primarily ~3 month lag MWP ~1 month lag EDPP2 +/- $22.04/MT 7 7 EDPP ~3 month lag Alumina Pri
Slide 19: Capacity and Production Information
Capacity and Production Information Aluminum facilities (kMT) Plant Country Capacity % Operating Sebree U.S. 220 100 Hawesville U.S. 250 0 Mt. Holly U.S. 230 75 Grundartangi Iceland 320 100 Total 1,020 70 Carbon anode facility (kMT) Plant Country Capacity % Operating Vlissingen Netherlands 150 100 T
Slide 20: Value-Added Products
Value-Added Products Value-added products capacity (kMT) FY24 FY25 Sebree – Billet/Slab 175 175 Mt. Holly – Billet/Slab 120 120 Grundartangi – Natur-Al TM Foundry Alloy 120 120 Grundartangi – Natur-Al TM Billet 150 150 Total 565 565 19
Slide 21: Capital Allocation
Capital Allocation Capital Allocation Framework Current Status Update • $250-$300MM liquidity Q224 Target Maintain Liquidity Through the target Investment Cycle Capital Liquidity $343 $250-300 • $300MM net debt target Projects Net Debt $443 $300 Sustaining Capital • $30-35MM in historical Projects s
Slide 22: Green Aluminum Smelter Project
Green Aluminum Smelter Project Investing in the future of the U.S. aluminum industry with first primary smelter in 45 years, nearly doubling the size of the current footprint • The U.S primary aluminum market is • Selected by the US Department of • Multi-phase planning/construction short ~4.1 millio
Slide 23: Extrusion trade case expected to drive increased U.S. billet demand
Extrusion trade case expected to drive increased U.S. billet demand U.S. market share of aluminum extrusions Subject import volume by region (MTs) Imports subject to 27% AD/CVD duties Europe 12% Other Asia ~50k ~170k China UAE Mexico ~90k ~10k ~100k 61% South America ~90k FY 2022 Shipment Volume U.S
Slide 24: Century Well Positioned for 2024 and Beyond
Century Well Positioned for 2024 and Beyond • Duty free access for U.S. and EU regional delivery premiums • Reliable supply to customers in short markets • Balanced operational footprint Aluminum Smelter Corporate Norðurál Headquarters Grundartangi Chicago, IL Iceland Carbon Anode United States Plan
Slide 25: Natur-Al products made with 100% renewable energy
“Natur‐Al products are made with energy from 100% renewable sources” 24
Slide 26: For Additional Information
For Additional Information Ryan Crawford investorrelations@centuryaluminum.com 312-696-3132 (Office) Century Aluminum Company One South Wacker Dr, Suite 1000 Chicago, IL 60606 312-696-3102 (Fax) www.centuryaluminum.com 25
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