Aluminium Bahrain B.s.c · BAHRAIN:ALBH
Aluminium Bahrain B.s.c — Q3 2024 Earnings Presentation
36 slides from Aluminium Bahrain B.s.c's earnings presentation, November 2024
Slide 1: Investor Relations Presentation Q3 2024
INVESTOR RELATIONS PRESENTATION Q3 2024
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 Global Demand- Alba 9 Months 2024 Supply Dynamics Highlights Results 04 05 06 Industry Perspectives 2024 Alba Appendix in 2024 Priorities Page 3
Slide 4: Global Demand-Supply Dynamics
01 Global Demand-Supply Dynamics1 1 Global Demand-Supply Dynamics are based on CRU Market Intel for Q3 2024 Page 4
Slide 5: Slow Demand Recovery Amidst Macroeconomic Challenges (+1% YoY)
Slow Demand Recovery Amidst Macroeconomic Challenges (+1% YoY) The global economy continues its gradual recovery, bolstered by positive market sentiment following the US Federal Reserve's interest rate cut and China's stimulus measures. However, geopolitical tensions and trade barriers remain signif
Slide 6: World Market Supply +0.5% YoY
World Market Supply +0.5% YoY China: Production up by 1% YoY, stabilising after Yunnan ramp-ups. However, Yunnan Honghe continues to operate below full capacity. China is about to reach its production capacity cap of 45 million metric tonnes making any significant net supply growth from China unlike
Slide 7: LME Price & Premiums
LME Price & Premiums LME Price: LME price averaged US$2,383/t in Q3 2024, up by 11% YoY. Prices fluctuated between a low of US$2,161.50/t on 30 July 2024 and a high of US$2,611/t on 30 September 2024 LME Inventories: Inventories reached 790,000 MT in Q3 2024 up by 62% YoY Premiums: European premiums
Slide 8: Alumina Price Index (API): 20% of LME Price
Alumina Price Index (API): 20% of LME Price [US$471/t] LME Price Trend (US$/t) 2,600 2,519 2,383 2,155 2,190 2,200 2,200 1,800 1,400 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q 3 2024 Alumina Price Index Trend (% of LME) 20% 19% 17% 16% 16% 16% 16% 13% 10% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Page 8
Slide 9: Alba Highlights
02 ALBA HIGHLIGHTS1 1 Alba Highlights relate to Alba official news in Q3 2024 Page 9
Slide 10: Safety in Numbers
Safety in Numbers 60 59 49 50 40 35 34 32 30 26 Million Safe Hours w/o LTI 20 on 01 November 2024 13 12 12 11 10 9 9 3 0 0 1 0 1 1 0 2019 2020 2021 2022 2023 YTD 2024 Total Injuries Recordable Injuries Lost Time Injuries Page 10
Slide 11: ESG Journey by 2035
ESG Journey by 2035 Decarbonisation Green Energy & Aluminium Circular Economy & Secondary Aluminium Employee Welfare Collaboration & Partnership Transparency, Communications & Due Diligence Q2 2024 Q4 2024 Q2 2027* 2025-2027 2030 Alba Solar Efficiency Upgrades Recycled Government Farm Material Colla
Slide 12: Alba Celebrates ESG Achievements and Plans Future Course
Alba Celebrates ESG Achievements and Plans Future Course Safety First. Safety Always Launched 2024 Summer Safety & Health (S&H) Campaign ‘Safety Reflection for Family's Protection’ Won the prestigious British Safety Council’s International Safety Award 2024 with Merit Empowering People Partnered wit
Slide 13: Planned Merger: Alba x Ma'aden
Planned Merger: Alba x Ma’aden On 16 Sep’24, Alba announced a non-binding agreement with Ma’aden to commence due diligence towards a potential business combination with segments of Ma’aden aluminium strategic business unit This partnership will create a larger, vertically integrated global champion
Slide 14: Operational Highlights – Q3 & 9 Months of 2024
Operational Highlights – Q3 & 9 Months of 2024 Production: Q3: 402,568 MT (-2% YoY); 9 Months: 1,212,209 MT (-0.1% YoY) Sales Volume: Q3: 431,220 MT (+0.2% YoY); 9 Months: 1,192,041 MT (+0.8% YoY) Value-Added Sales: Q3: 72% vs 68% in 3Q23; 9 Months: 72% versus 67% in 9 months of 2023 Page 14
Slide 15: e-Al Hassalah Programme (2024 – 2026)
e-Al Hassalah Programme (2024 – 2026) e-Al Hassalah (US$ Million) Description A combination of process improvement/optimization methods and 160 Industry 4.0 focused to improve EBITDA [65% Bottom-up Projects/Ideas] 150 120 Industry 4.0 Roadmap, Projects and business case evaluation and validation com
Slide 16: Financial Key Performance Indicators – Q3 & 9 Months 2024
Financial Key Performance Indicators – Q3 & 9 Months 2024 EBITDA Free Cash Flow1 9 Months: US$392 million up by 56% YoY 9 Months: US$732 million Q3: US$145 million 9 Months: US$304 million up by 22% YoY up by 215% YoY down by 23% YoY Q3: US$263 million Q3: US$58 million up by 57% YoY down 68% YoY Pr
Slide 17: 9 Months 2024 Results
03 9 Months 2024 RESULTS Reference: Interim Condensed Consolidated Financial Statements for the Nine Months Period Ended 30 September 2024 (reviewed) Page 17
Slide 18: Metal Sales Bridge YTD 2024 vs. YTD 2023
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Metal Sales See Uptick: LME & Volume Strength Counterbalance Lower Premiums Metal Sales’ Bridge (US$M) – YTD 2024 vs. YTD 2023 3,500 66 2 25 3,000 58 2,500 by 15% YoY in premium 2,000 by 4% YoY in LME 1,500 3,066 3,101 1,000 500 0 Metal
Slide 19: Higher VAP, Lower Commodities' Volume
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Higher VAP │ Lower Commodities’ Volume YTD 2024 vs. YTD 2023 Premium Above LME Trend US$ Per MT Sales by Product-Line Bridge (MT’000) 58 1,200 48 350 800 15% 250 1,182 1,192 306 400 150 259 0 50 Sales Value Commodity Sales YTD 2023 YTD 2
Slide 20: Direct Cost Bridge YTD 2024 vs. YTD 2023
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Lower Other Raw Material Prices Helped Control Direct Costs Despite Higher Costs in Other Areas YTD 2024 vs. YTD 2023 - Direct Cost Bridge (US$M) 2,500 18 35 146 13 2,000 1,500 2,362 2,282 1,000 500 Direct Cost RM Other Alumina Plant Dir
Slide 21: EBITDA Bridge Gap Analysis – YTD 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry EBITDA Bridge Gap Analysis – YTD 2024 vs. YTD 2023 Higher EBITDA Owing to Higher Metal Sales & Lower Direct cost YTD 2024 vs. YTD 2023 - EBITDA Bridge (US$M) EBITDA 23% 800 3 EBITDA 20% 35 13 80 600 400 732 601 200 - EBITDA Metal Other D
Slide 22: Cash Flow Bridge FY 2023 to YTD 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Cash Flow Bridge FY 2023 to YTD 2024 FY 2023 to YTD 2024 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 1,000 800 156 400 107 600 300 736 169 396 400 24 200 129 304 130 200 100 159 180 0 0 Cash CF Pricing WC CAPEX Block 4 Net Debt Payment
Slide 23: Key Financial Performance Indicators
Key Financial Performance Indicators Particulars Q3 2024 Q3 2023 YTD 2024 YTD 2023 Revenue1 (US$M) 1,153 1,064 3,125 3,077 EBITDA (US$M) 263 168 732 601 EBITDA% 23% 16% 23% 20% Profit (US$M) 145 46 392 252 Gain/(Loss) Unrealised 2 (1) 2 (1) Derivatives (US$M) Adjusted Profit2 (US$M) 143 47 390 253 A
Slide 24: Industry Perspectives in 2024
04 INDUSTRY PERSPECTIVES1 IN 2024 1 Industry Perspectives are based on CRU Market Intel Page 24
Slide 25: Aluminium Market Outlook: Uncertainties Cloud Short-Term Prospects
Aluminium Market Outlook: Uncertainties Cloud Short-Term Prospects Market Uncertainty Persists: The market will remain uncertain while the US Fed rate cuts and Chinese stimulus will provide short-term support, sustained price increases will depend on fundamental improvements in demand Demand Outlook
Slide 26: Feedstock Trends (Al₂O₃, AlF3 and GPC)
Industry Perspectives in 2024 Feedstock Trends (Al₂O₃, AlF3 and GPC) Alumina Market: Prices are expected to remain elevated due to ongoing supply disruptions in Australia, India and Jamaica Carbon Market: Product prices (GPC, CPC, and Anodes) are anticipated to stabilise due to balanced supply and d
Slide 27: 2024 Alba Priorities
05 2024 ALBA PRIORITIES1 1 Based on Alba 5-Year Strategic Initiatives Page 27
Slide 28: Alba: Safe, Sustainable, Successful
Alba: Safe, Sustainable, Successful Leading the Way: Safety First, Sustainability Always Aligned with Bahrain's objective of net-zero emissions by 2060, Alba embeds sustainability principles in all operations, minimizing environmental impact from raw material sourcing to product delivery Operational
Slide 29: Appendix (Q3 2024 Results)
06 APPENDIX (Q3 2024 Results) Reference: Interim Condensed Consolidated Financial Statements for the Nine Months Period Ended 30 September 2024 (reviewed) Page 29
Slide 30: Metal Sales Bridge Q3 2024 vs. Q3 2023
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Higher Metal Sales due to Higher LME Price, Product Mix & Volume Metal Sales’ Bridge (US$M) – Q3 2024 vs. Q3 2023 1,300 4 2 95 1 900 by 11 % YoY in LME Price 1,153 1,053 500 100 Metal Sales LME Pricing Impact Product Mix Volume Metal Sal
Slide 31: Higher VAP, Lower Commodities' Volume
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Higher VAP │ Lower Commodities’ Volume Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q3 2024 vs. Q3 2023 500 20 350 19 300 400 2% YoY 250 300 200 430 431 284 289 150 200 100 100 50 Sales Value Commodity Sales Q
Slide 32: Direct Cost Bridge Q3 2024 vs. Q3 2023
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Lower Other Raw Material Prices Helped Control Direct Costs Despite Higher Costs in RM Price and Plant Spending Q3 2024 vs. Q3 2023 - Direct Cost Bridge (US$M) 900 66 56 5 11 10 11 600 868 851 300 0 Direct Cost RM RM Other Alumina Invent
Slide 33: EBITDA Bridge Gap Analysis – Q3 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry EBITDA Bridge Gap Analysis – Q3 2024 vs. Q3 2023 Higher EBITDA Owing to Higher Metal Sales & Lower Direct cost EBITDA Bridge (US$M) – Q3 2024 vs. Q3 2023 300 EBITDA 23% 11 16 10 250 100 200 EBITDA 16% 263 150 168 100 50 EBITDA Metal Othe
Slide 34: Cash-Flow Bridge Q2 2024 to Q3 2024
Macroeconomic Uncertainty Casts Shadow Over Aluminium Industry Cash-Flow Bridge Q2 2024 to Q3 2024 Q2 2024 to Q3 2024 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 600 200 73 400 58 264 150 75 6 51 100 184 200 70 249 50 180 58 0 0 Cash CF Pricing WC CAPEX Block4 Net Debt Payment Cash Q3 2023 Q3 2024
Slide 35: 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 36: For more information, please contact us
For more information, please contact us on: IR@alba.com.bh InvestorRelations@alba.com.bh Alba4World Alba4World user/Alba4World Alba4World Page 36
Aluminium Bahrain B.S.C. (Alba) — Q3 2024 Earnings Presentation on 6ix