Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q1 2016 Earnings Presentation
25 slides from Aluminium Bahrain B.S.C's earnings presentation, 2016
Slide 1: Investor Relations Presentation Q1 2016
Aluminium for the world INVESTOR RELATIONS PRESENTATION Q1 2016
Slide 2: Disclaimer
Aluminium for the world 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 conne
Slide 3: Contents
Aluminium for the world CONTENTS 01 02 03 04 05 Industry ALBA Q1 2016 Industry 2016 Highlights Highlights Results Perspectives ALBA Priorities in 2016 3
Slide 4: Industry Highlights
Aluminium for the world 01 INDUSTRY HIGHLIGHTS
Slide 5: Industry Highlights – Global Physical Demand Remains Healthy
Aluminium for the world Industry Highlights – Q1 2016 Aluminium Industry: Collapse of All-In-Prices Global Physical Demand Remains Healthy World consumption up by 5% YoY Asian demand up by 7% YoY driven by solid consumption in residential buildings in China (+8% YoY) MENA consumption up by 5% YoY dr
Slide 6: Industry Highlights – Production Growth Almost Flat
Aluminium for the world Industry Highlights – Q1 2016 Aluminium Industry: Collapse of All-In-Prices Production Growth Almost flat World production up by 1% YoY Chinese production flat at 7.5 million metric tonnes (mt) as curtailments were implemented by February 2016 North America supply dropped by
Slide 7: Industry Highlights – LME & Premiums
Aluminium for the world Industry Highlights – Q1 2016 Aluminium Industry: Collapse of All-In-Prices LME & Premiums LME inventories at 2.8 million metric tonnes in March Q1 2016 cash-average was $1,515/t with LME ranging between $1,453/t on January 13 and $1,622/t on February 29 Global physical premi
Slide 8: Alba Highlights
Aluminium for the world 02 ALBA HIGHLIGHTS
Slide 9: Operational Highlights & Achievements
Aluminium for the world Alba Highlights – Q1 2016 Aluminium Industry: Collapse of All-In-Prices Operational Highlights & Achievements Continuous improvement in Safety performance Sales figures up by 1.4% YoY (231,538 mt) Alba Value-Added Sales averaged 52% of total shipments in Q1 Project Titan – Ph
Slide 10: Launch of Project Titan - Phase II
Aluminium for the world Alba Highlights – Q1 2016 Aluminium Industry: Collapse of All-In-Prices Launch of Project Titan - Phase II Streamline cash-cost by US$ 100 per metric tonne Boost production capacity to 1 Million per annum by end of 2017 10
Slide 11: Financial Key Performance Indicators
Aluminium for the world Alba Highlights – Q1 2016 Aluminium Industry: Collapse of All-In-Prices Financial Key Performance Indicators Adjusted EBITDA down due to lower LME prices Q1: US$61 million down by 58% YoY Adjusted Net Income down driven by lower EBITDA levels Q1: US$ 11 million down by 88% Yo
Slide 12: Maintain Sound Balance Sheet & Readiness for Line 6 Financing
Aluminium for the world Alba Highlights – Q1 2016 Aluminium Industry: Collapse of All-In-Prices Maintain Sound Balance Sheet & Readiness for Line 6 Financing Cash & Net Debt 159 265 164 894 172 613 179 513 362 310 304 184 -72 -77 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Net Debt Cash
Slide 13: 2016 Results
Aluminium for the world 03 2016 RESULTS
Slide 14: Sales Analysis Q1 2016 vs. Q1 2015
Aluminium for the world Q1 2016 Results Aluminium Industry: Collapse of All-In-Prices Sales Analysis Q1 2016 vs. Q1 2015 Favourable Management Performance Offset Primarily by the collapse of all-in-prices Q1 2016 vs. Q1 2015 - Metal Sales Bridge (US$M) 550 79 6 62 400 531 8 392 250 Metal Sales LME P
Slide 15: Higher Sales Volume Partially Offset by Unfavourable Shift in Product Mix
Aluminium for the world Q1 2016 Results Aluminium Industry: Collapse of All-In-Prices Higher Sales Volume Partially Offset by Unfavourable Shift in Product Mix 1Q16 vs. 1Q15 - Sales by Product Line Premium Above LME Trend US$ Per MT Bridge (MT’000) 300 500 25 1 30 200 492 250 228 232 200 100 0 Sales
Slide 16: Cost Analysis: Q1 2016 vs. Q1 2015
Aluminium for the world Q1 2016 Results Aluminium Industry: Collapse of All-In-Prices Cost Analysis: Q1 2016 vs. Q1 2015 Q1 2016 vs. Q1 2015 - Direct Cost Bridge (US$M) 400 64 17 1 1 8 35 8 15 250 392 347 100 Direct Cost RM RM Energy Alumina Inventory Plant One-Off Line-6 Direct Cost 1Q15 Price Cons
Slide 17: Adjusted EBITDA Bridge Gap Analysis
Aluminium for the world Q1 2016 Results Aluminium Industry: Collapse of All-In-Prices Adjusted EBITDA Bridge Gap Analysis – Q1 2016 vs. Q1 2015 Adjusted EBITDA Margin at 14.6% 1Q16 vs. 1Q15 - EBITDA Bridge (US$M) 150 EBITDA 26.1% 75 144 138 1 4 EBITDA 14.6% 45 61 5 0 EBITDA 1Q15 Metal Other Sales Di
Slide 18: Cash Flow Bridge: FY15 to 1Q16
Aluminium for the world Q1 2016 Results Aluminium Industry: Collapse of All-In-Prices Cash Flow Bridge: FY15 to 1Q16 FY15 to 1Q16 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 350 33 60 20 70 0 12 250 35 309 304 60 150 7 0 Cash CF WC CAPEX Payment Net Debt Cash Q1 2015 Q1 2016 Balance from Changes S
Slide 19: Favourable Management Performance Offset by Low LME Prices
Aluminium for the world Q1 2016 Results Aluminium Industry: Collapse of All-In-Prices Favourable Management Performance Offset by Low LME Prices Financial Summary Q1 2016 Q1 2015 Average Cash LME (US$/MT) 1,515 1,801 Total Sales (US$M) 416 549 EBITDA (US$M) 61 144 EBITDA% 14.6% 26.1% EBITDA (Excl. O
Slide 20: Industry Perspectives in 2016
Aluminium for the world 04 INDUSTRY PERSPECTIVES IN 2016
Slide 21: Global Physical Demand to Remain Healthy
Aluminium for the world Industry Perspectives in 2016 Global Physical Demand to Remain Healthy Key factors to be observed: LME volatility will continue on the back of China smelters’ restarts Strong US dollar coupled with high power rates will continue to pressure marginal producers to cut output in
Slide 22: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2016 Raw Materials Price Trends Alumina spot index to gradually pick-up from low levels in Q1 Green Petroleum Coke prices to remain at current levels and likely to increase Alumina Fluoride (ALF3) and Liquid Pitch prices to remain stable 22
Slide 23: 2016 Alba Priorities
Aluminium for the world 05 2016 ALBA PRIORITIES
Slide 24: Sustainable Improvement & Preparation for Future Growth
Aluminium for the world 2016 Alba Priorities Sustainable Improvement & Preparation for Future Growth Continuous Focus on Safety Initiatives & Talent Management Deliver on Project Titan - Phase II Line 6 in progress: Bechtel appointed as EPCM Contractor 24
Slide 25: For More Information, Contact Us
Aluminium for the world For More Information, Contact Us on: IR@alba.com.bh Alba4World alba4world user/Alba4World photos/alba4world 25
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