Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q1 2012 Earnings Presentation
25 slides from Aluminium Bahrain B.S.C's earnings presentation, 2012
Slide 1: Aluminium for the world: Q1 2012 IR Presentation
Aluminium for the world Q1 2012 IR PRESENTATION albasmelter.com
Slide 2: Disclaimer
Aluminium for the world 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 y
Slide 3: Contents
Aluminium for the world Contents 1- Industry Highlights 2- Alba Highlights 3- Q1 2012 Results 4- Industry Perspectives in 2012 5- 2012 Alba Priorities albasmelter.com 3
Slide 4: Industry Highlights
‘~ INDUSTRY HIGHLIGHTS
Slide 5: Aluminium Demand Still Healthy in Few Key Economies
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2012 Aluminium Demand Still Healthy in Few Key Economies (Reference Period: January - February) World consumption up to February 2012 grew by 1.5% vs. the same period of 2011 Europe consumption still weak (up to Feb.) - 6% decrease YoY with premium of a
Slide 6: Production Evolution
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2012 Production Evolution China output is still growing at a fast pace with 15% YoY Western producers suffering from current LME price & high energy cost thus leading to further capacity cuts World market slightly over-supplied at the end of February (+
Slide 7: LME & Premiums
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2012 LME & Premiums LME inventories at 5.1 million metric tonnes in February (+496 Kt vs. February 2011 and +124 kt vs. December 2011) LME recovered by 4% in 1Q12 vs. 4Q11. 1Q12 Cash-average was $2,202/t with LME ranging between $2,308 in February 28 an
Slide 8: Alba Highlights
‘~ ALBA HIGHLIGHTS
Slide 9: Q1 2012 Operational Highlights/Achievements
Aluminium for the world Alba Highlights Q1 2012 - Operational Highlights/Achievements STAR Operational Improvement Program Additional recurrent savings of US$5 million recorded in 1Q12 vs. a full-year target of US$30 million Alba was able to increase production by 2% with sales stable despite the Eu
Slide 10: Q1 2012 Operational Highlights/Achievements: Raw Materials, Safety, Growth
Aluminium for the world Alba Highlights Q1 2012 - Operational Highlights/Achievements Raw Materials 2012 Alumina supply have been secured based on long-term contracts and spot market opportunities. AlbaSafeWay Program Safety Excellence Program in progress with 4 work streams launched in 1Q12. Future
Slide 11: Q1 2012 Financial Key Performance Indicators
Aluminium for the world Alba Highlights Q1 2012 - Financial Key Performance Indicators EBITDA driven by Lower LME levels & Higher Gas Cost US$115 million down by 34% YoY Net Income impacted by Lower LME levels & Higher Gas Cost US$57 million down by 35% YoY Adjusted Net Income driven by Lower LME le
Slide 12: Q1 2012 Results
Yo Q1 2012 RESULTS
Slide 13: Sales Analysis 1Q12 vs. 1Q11
Aluminium for the world Q1 2012 Results LOW LME & SOFTER MARKET CONDITIONS Sales Analysis 1Q12 vs. 1Q11 (000’s MT) Low LME Coupled with Lower Sales Volume 1Q12 vs. 1Q11 - Metal Sales Bridge (US$M) 600 62 1 6* 500 1 400 563 300 496 200 100 Sales 1Q11 LME Product Mix Pricing Power Volume Sales 1Q12 al
Slide 14: Continuous Shift to Optimum Product Mix
Aluminium for the world Q1 2012 Results LOW LME & SOFTER MARKET CONDITIONS Continuous Shift to Optimum Product Mix Value-Added Sales Soften in Europe with Premium Supported by Price Increase from 2nd Half of 2011 1Q12 vs. 1Q11 - Sales by Product line Bridge Premium Above LME Trend US$M (Per MT) (000
Slide 15: Cost Analysis 1Q12 vs. 1Q11
Aluminium for the world Q1 2012 Results LOW LME & SOFTER MARKET CONDITIONS Cost Analysis 1Q12 vs. 1Q11: Gas Price Increase Coupled with Re-instatement Cost due to 2011 1Q12 vs. 1Q11 - Direct Costs Bridge (US$M) 400 23 1 4 6* 0 10 2 26 300 55 200 356 352 100 0 RM Price RM Consumption Energy Price Ene
Slide 16: STAR Saving - 1Q vs. Target 2012
Aluminium for the world Q1 2012 Results LOW LME & SOFTER MARKET CONDITIONS STAR Saving - 1Q vs. Target 2012: 1Q12 vs. Target 2012 - STAR Cumulative Savings (US$M) 35 18 30.0 19.0 12.0 5.0 0 Q1 Actual Q2 Target Q3 Target Year End Target Target Year-End Target albasmelter.com $5 million - Recurrent Sa
Slide 17: Adjusted EBITDA Bridge Gap Analysis 1Q12 vs. 1Q11
Aluminium for the world Q1 2012 Results LOW LME & SOFTER MARKET CONDITIONS Adjusted EBITDA Bridge Gap Analysis 1Q12 vs. 1Q11: Adjusted EBITDA Margin at 23.2% 1Q12 vs. 1Q11 - EBITDA Bridge (US$M Adjusted) 200 EBITDA 30.2% 150 67 55 7 EBITDA 23.2% 13 4 100 17 175 115 50 0 EBITDA 1Q11 Metal Sales Other
Slide 18: Cash Flow Bridge 1Q12 vs. Year-End 2011
Aluminium for the world Q1 2012 Results LOW LME & SOFTER MARKET CONDITIONS Cash Flow Bridge 1Q12 vs. Year-End 2011: Sound Cash Flow Despite Seasonal Increase in Inventory of Raw Materials as well as Recovery of Value-Added Sales in Europe Q1 2012 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 400 63
Slide 19: Financial Summary Q1 2012 vs Q1 2011
Aluminium for the world Q1 2012 Results LOW LME & SOFTER MARKET CONDITIONS Without LME Effect, Alba Managed to Maintain its Performance Despite the Significant Impact of Gas Price Increase Financial Summary Q1 2012 Q1 2011 Sales 496 578 EBITDA 115 175 EBITDA% 23.2% 30.3% EBITDA (Excl. One Time Cost)
Slide 20: Industry Perspectives in 2012
INDUSTRY PERSPECTIVES IN 2012
Slide 21: Demand to Remain Healthy but with Strong Volatility
Aluminium for the world Industry Perspectives in 2012 Demand to Remain Healthy but with Strong Volatility Key factors to be observed: Capacity cuts still unclear in Europe No collapse on premiums expected based upon current market conditions MENA bullish with customers increasing their Value-Added p
Slide 22: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2012 Raw Materials Price Trends Alumina price to soften with the market Green Petroleum Coke prices expected to drop in Q2 post the slight increase in early 2012 and then stabilize Aluminium Fluoride (ALF3) price will remain stable Liquid Pitch prices
Slide 23: 2012 Alba Priorities
‘~ 2012 ALBA PRIORITIES
Slide 24: Continuous Improvement & Preparation for Future Growth
Aluminium for the world 2012 Alba Priorities Continuous Improvement & Preparation for Future Growth AlbaSafeWay Program Ongoing implementation for Alba SafeWay work streams 2012 STAR Program: To achieve additional cash savings of US$30 million in 2012 Roll-out of another 8 Six Sigma Projects by 1st
Slide 25: For More Information, Contact Us
FOR MORE INFORMATION, CONTACT US ON: IR@alba.com.bh
Aluminium Bahrain B.S.C. — Q1 2012 Earnings Presentation on 6ix