Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q1 2023 Earnings Presentation
32 slides from Aluminium Bahrain B.S.C's earnings presentation, 2023
Slide 1: Investor Relations Presentation Q1 2023
INVESTOR RELATIONS PRESENTATION Q1 2023
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 2023 Highlights Highlights Results 04 05 06 Industry Perspectives 2023 Alba Appendix in 2023 Priorities Page 3
Slide 4: Industry Highlights
01 INDUSTRY HIGHLIGHTS1 1 Industry Highlights are based on CRU Market Intel Page 4
Slide 5: World Market Demand in a Tight Spot (-6% YoY)
World Market Demand in a Tight Spot (-6% YoY) Mixed macroeconomic dynamics -- a bearish post-COVID recovery in China, limited restarts of capacity in Europe (owing to falling gas prices) and banking turmoil’s impact on US economic activity -- continued to weigh on Aluminium market Economic activity
Slide 6: World Market Supply Flat Thanks to a Fresh Wave of Cuts (+1% YoY)
World Market Supply Flat Thanks to a Fresh Wave of Cuts (+1% YoY) Chinese production up by 3% YoY owing to supply cuts on the back of insufficient hydropower Middle East supply down by 1% YoY (+1% YoY in Bahrain and -7% YoY in KSA) Lacklustre mood in Europe with the closure of 25% of its operating s
Slide 7: LME Price & Premiums
LME Price & Premiums Market uncertainty dragged LME prices lower - US$2,399/t in Q1 2023 -- down by 27% YoY [lowest: US$2,232/t on 17 & 22 March 2023 and highest: US$2,636/t on 18 January 2023] LME inventories remain at low levels at ~0.5 million MT (down by 19% YoY) Premium prices moved to differen
Slide 8: Alumina Price: 15% of LME Price
Alumina Price: 15% of LME Price [US$353/t] LME Price Trend (US$/t) 3,700 3,267 3,300 2,882 2,900 2,354 2,324 2,399 2,500 2,100 1,700 1,300 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Alumina Price Index Trend (% of LME) 19% 18% 16% 16% 16% 15% 13% 13% 10% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Page 8
Slide 9: Alba Highlights
02 ALBA HIGHLIGHTS1 1 Alba Highlights relate to Alba official news Page 9
Slide 10: Safety in Numbers
Safety in Numbers # Total Injuries 70 # Recordable Injuries 60 59 60 # LTIs 49 50 40 34 32 30 20 9 10 0 2018 2019 2020 2021 2022 Q1 2023 32 12 12 11 9 3 3 0 1 0 1 0 8 Million Safe Working Hours w/o LTI on 06 March 2023 Page 10
Slide 11: Major Environment, Social and Governance (ESG) Highlights
Major Environment, Social and Governance (ESG) Highlights Solar Farm Project Awarded to Advanced United Systems to install Solar Photovoltaic (PV) Panels over 37,000 m2 with a capacity of more than 6 Megawatts (MW) [aim to reduce 189,794,000 Kg of CO2 over 25-year span Alba secures BBK’s sustainable
Slide 12: 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 13: ESG: A Journey, Not A Destination
ESG: A Journey, Not A Destination Decarbonisation Green Energy Circular Economy Employee Collaboration Transparency, Comms’ & Aluminium & Secondary Alu. Welfare & Partnership & Due Diligence 12 Dec’22 Net Zero Lunched mini plant-wide by 2060 27 Mar’22 Safety & ESG Campaign 27 Apr’22 06 Feb’22 Signed
Slide 14: Major Operational Highlights
Major Operational Highlights Sales’ volume topped 359,677 metric tonnes (MT), up by 2% YoY while Production reached 398,252 MT, up by 2% YoY Value Added Sales averaged 64% of the total shipments, almost flat [VAP: 230,491 MT in Q1’23 versus 230,467 in Q1’22] Commissioned the Forced Cooling Network (
Slide 15: Financial Key Performance Indicators – Q1 2023
Financial Key Performance Indicators – Q1 2023 EBITDA – driven primarily by Free Cash Flow1 - impacted lower LME price & premiums by working capital changes US$230 million down US$126 million down Q1: US$72 million by 53% YoY by 68% YoY down by 77% YoY Net Income - driven by lower EBITDA 1Free Cash
Slide 16: AL HASSALAH Initiative: Save US$100M by 2022
AL HASSALAH Initiative (2-Year): Save US$100M (w/o One-Off Savings) by 2022 Sustain AL HASSALAH Benefits (US$115.34 Million) in 2023 AL HASSALAH (US$ Million) Breakdown by Value Chain (US$ Million) One-Off Savings RM Sourcing & Others Power 10 2.01 21.46 115.34 100 US$115.34M 71 60.02 31.86 Operatio
Slide 17: Q1 2023 Results
03 Q1 2023 RESULTS Refer to Alba’s Q1 2023 Condensed Interim Financial Information Page 17
Slide 18: Aluminium Industry: Weak Market Sentiment – Metal Sales Bridge
Aluminium Industry: Weak Market Sentiment Lower Metal Sales Impacted by Depressed LME Prices & Premiums Metal Sales’ Bridge (US$M) – Q1 2023 vs. Q1 2022 1,400 1,200 203 39 19 1,000 3 800 by 27% 1,210 in LME Price 600 by 27% in Premium 984 400 200 Metal Sales LME Product Mix Pricing Power Volume Meta
Slide 19: Sales by Product-Line Bridge and Premium Trend
Aluminium Industry: Weak Market Sentiment Lower Premiums │ Higher Liquid Metal & Lower Commodities Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q1 2023 vs. Q1 2022 380 450 8 350 0 2 -27% 350 320 290 354 360 250 427 260 311 150 230 200 50 Sales Value Liquid Commodity Sales
Slide 20: Direct Cost Bridge Q1 2023 vs. Q1 2022
Aluminium Industry: Weak Market Sentiment Higher Direct Cost Owing to Higher Throughput & Partially Offset by Lower Alumina Prices Direct Cost Bridge (US$M) – Q1 2023 vs. Q1 2022 800 700 9 10 4 36 15 28 0 600 500 710 664 400 300 200 Direct Cost RM RM Energy Other Alumina Inventory Plant Direct Cost
Slide 21: EBITDA Bridge Gap Analysis
Aluminium Industry: Weak Market Sentiment EBITDA Bridge Gap Analysis – Q1 2023 vs. Q1 2022 Lower EBITDA Margin at 23.4% Owing to Lower Top-Line EBITDA Bridge (US$M) – Q1 2023 vs. Q1 2022 600 EBITDA 40.7% 500 400 226 300 0 EBITDA 23.4% 492 46 10 200 230 100 0 EBITDA Metal Other Direct Selling EBITDA
Slide 22: Cash-Flow Bridge – FY 2022 to Q1 2023
Aluminium Industry: Weak Market Sentiment Cash-Flow Bridge – FY 2022 to Q1 2023: Sound Cash Position FY 2022 to Q1 2023 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 800 700 360 600 310 344 323 260 500 117 210 400 234 39 160 316 300 3 110 200 345 60 249 78 100 10 0 -40 Cash CF WC General Block 4 Net
Slide 23: Financial Summary Q1 2023
Aluminium Industry: Weak Market Sentiment Good Financial Performance Partially Offset by Lower LME Prices Financial Summary Q1 2023 Q1 2022 Average Cash LME (US$/MT) 2,399 3,267 Average Alumina Price (US$/MT) 353 432 Revenue1 (US$M) 984 1,210 EBITDA (US$M) 230 492 EBITDA% 23.4% 40.7% Net Income (US$
Slide 24: Industry Perspectives in 2023
04 INDUSTRY PERSPECTIVES1 IN 2023 1 Industry Perspectives are based on CRU Market Intel Page 24
Slide 25: Mixed Macroeconomic Outlook & Fragile Market Fundamentals
Mixed Macroeconomic Outlook & Fragile Market Fundamentals Market uncertainty will continue to cloud the Aluminium market and LME prices Smelters’ cuts in Europe are likely to keep the market in deficit in 2023. The Eurozone economy likely to be challenged by weak manufacturing activities and higher
Slide 26: Industry Perspectives in 2023
Industry Perspectives in 2023 Raw Materials Price Trends (Al₂O₃, AlF3 and GPC) Alumina spot prices to remain at the same level in the short term Aluminium Fluoride prices expected to range at the same levels owing to stable raw material prices Carbon products’ prices (GPC, CPC & Anodes) to slightly
Slide 27: 2023 Alba Priorities
05 2023 ALBA PRIORITIES Page 27
Slide 28: ESG Focus & Journey Towards Safety Excellence
ESG Focus & Journey Towards Safety Excellence ESG Focus & Journey Towards Safety Excellence Continue our Safety journey by adhering to ‘Safety is our Operating License’ Further sustainable value across our value chain and in line with Bahrain’s objectives for ‘Net Zero Emissions’ by 2060 Increase th
Slide 29: Appendix
06 APPENDIX Page 29
Slide 30: Code of Conduct Relaunch & Awareness: March 2023
Code of Conduct Relaunch & Awareness: March 2023 Page 30
Slide 31: 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 32: For more information, please contact us
For more information, please contact us on: IR@alba.com.bh Alba4World Alba4World user/Alba4World Alba4World Page 32
Aluminium Bahrain B.S.C. (Alba) — Q1 2023 Earnings Presentation on 6ix