Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q2 2016 Earnings Presentation
30 slides from Aluminium Bahrain B.S.C's earnings presentation, Dec 4, 2016
Slide 1: Investor Relations Presentation Q2 2016
Aluminium for the world INVESTOR RELATIONS PRESENTATION Q2 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 Q2 2016 Industry 2016 Highlights Highlights Results Perspectives ALBA Priorities in 2016 3
Slide 4: Industry Highlights
Aluminium for the world 01 INDUSTRY HIGHLIGHTS REFERENCE: CRU
Slide 5: Industry Highlights - Q2 2016: Global Physical Demand Still Growing
Aluminium for the world Industry Highlights - Q2 2016 Global Physical Demand Still Growing World consumption up by 5% YoY Asian demand up by 7% YoY fuelled by China (+8% YoY) on the back of government stimulus policies on construction projects and grid-infrastructure spending MENA demand remains hea
Slide 6: Industry Highlights - Q2 2016: Production Evolution
Aluminium for the world Industry Highlights - Q2 2016 Production Evolution World production up by 2% YoY North America production down by 11% YoY due to higher energy costs Chinese output witnessed a flat growth at 7.8 million metric tonnes on the back of further smelters’ curtailments World market
Slide 7: Industry Highlights - Q2 2016: LME & Premiums
Aluminium for the world Industry Highlights - Q2 2016 LME & Premiums LME inventories at 2.4 million metric tonnes in June 2Q16 cash-average was $1,571/t with LME ranging between $1,481/t on April 6 and $1,673/t on April 29 Physical premiums prices floating at lower range ($/t) Major Japanese Ports (
Slide 8: Alba Highlights
Aluminium for the world 02 ALBA HIGHLIGHTS
Slide 9: Alba Highlights - Q2 2016: Operational Highlights & Achievements
Aluminium for the world Alba Highlights - Q2 2016 Operational Highlights & Achievements Launch of Summer ‘Safety Convoy Campaign’ Sales figures up by 3.2% YoY (239,739 metric tonnes) Value-Added Sales averaged 55% of total shipments in Q2 and exceeded 60% for the month of June Project Titan – Phase
Slide 10: Alba Highlights - Q2 & H1 2016: Financial Key Performance Indicators
Aluminium for the world Alba Highlights - Q2 & H1 2016 Financial Key Performance Indicators Adjusted EBITDA down on the back of lower LME & Premium prices Q2: US$94 million down by 27% YoY H1: US$154 million down by 43% YoY Adjusted Net Income down due lower EBITDA levels Q2: US$43 million down by 4
Slide 11: Maintain Sound Balance Sheet & Readiness for Line 6 Financing
Aluminium for the world Alba Highlights – Q2 2016 Maintain Sound Balance Sheet & Readiness for Line 6 Financing Cash & Net Debt 159 265 164 894 172 613 179 513 362 310 304 344 184 -72 -77 -139 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Q2 2016 Net Debt Cash 11
Slide 12: Q2 2016 Results
Aluminium for the world 03 Q2 2016 RESULTS
Slide 13: Metal Sales Bridge Q2 2016 vs Q2 2015
Aluminium for the world Q2 2016 Results Aluminium Industry: Collapse of Aluminium prices Favourable Management Performance Offset by the Collapse of All-In- Prices 600 Q2 2016 vs. Q2 2015- Metal Sales Bridge (US$M) 500 58 5 60 17 525 400 419 300 Product Mix Metal Sales LME Pricing Power Volume Metal
Slide 14: Sales by Product Line Bridge
Aluminium for the world Q2 2016 Results Aluminium Industry: Collapse of Aluminium prices Higher Sales Volume Partially Offset by Unfavourable Shift in Product Mix 2Q16 vs. 2Q15 - Premium Above LME Trend US$ Per MT Sales by Product Line Bridge (MT’000) 250 500 29 21 215 0 300 468 240 232 198 180 100
Slide 15: Cost Analysis Q2 2016 vs. Q2 2015
Aluminium for the world Q2 2016 Results Aluminium Industry: Collapse of Aluminium prices Cost Analysis Q2 2016 vs. Q2 2015 Q2 2016 vs. Q2 2015 - Direct Cost Bridge (US$M) 425 63 18 2 350 27 1 9 397 2 3 340 275 Direct Cost RM RM Energy Alumina Inventory Plant One-Off Line-6 Direct Cost Q2 2015 Price
Slide 16: Adjusted EBITDA Bridge GAP Analysis Q2 2016 vs. Q2 2015
Aluminium for the world Q2 2016 Results Aluminium Industry: Collapse of Aluminium prices Adjusted EBITDA Bridge GAP Analysis – Q2 2016 vs. Q2 2015 Adjusted EBITDA Margin at 21.2% 150 Q2 2016 vs. Q2 2015 - EBITDA Bridge (US$M) EBITDA 24.1% 4 EBITDA 21.2% 100 5 106 128 57 50 94 16 0 EBITDA Q2 2015 Met
Slide 17: Cash Flow Bridge: Q2 2016 vs. Q1 2016
Aluminium for the world Q2 2016 Results Aluminium Industry: Collapse of Aluminium prices Cash Flow Bridge: Q2 2016 vs. Q1 2016 Maintain Solid Cash Balance Q1 2016 to Q2 2016 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 450 24 38 80 21 94 19 300 304 344 81 80 150 0 0 Cash CF WC CAPEX Payment Net Deb
Slide 18: Financial Summary Q2 2016
Aluminium for the world Q2 2016 Results Aluminium Industry: Collapse of Aluminium prices Favourable Management Performance Offset by Low LME Prices Financial Summary Q2 2016 Q2 2015 H1 2016 H1 2015 Average Cash LME (US$/MT) 1,571 1,769 1,543 1,785 Total Sales (US$M) 441 530 857 1,080 EBITDA (US$M) 9
Slide 19: Industry Perspectives in 2016
Aluminium for the world 04 INDUSTRY PERSPECTIVES IN 2016
Slide 20: Physical Demand to Remain Relatively Healthy
Aluminium for the world Industry Perspectives in 2016 Physical Demand to Remain Relatively Healthy Key factors to be observed: LME volatility to continue on the back of smelters restarts and ramp-ups Physical premiums expected to be maintained at current levels North American output is set to furthe
Slide 21: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2016 Raw Materials Price Trends Alumina spot index to remain relatively stable Green Petroleum Coke prices to remain at current levels and likely to increase in the second half of 2016 Alumina Fluoride (ALF3) and Liquid Pitch price expected to softly
Slide 22: 2016 Alba Priorities
Aluminium for the world 05 2016 ALBA PRIORITIES
Slide 23: 2016 Alba Priorities
Aluminium for the world 2016 Alba Priorities Sustainable Improvement & Preparation for Future Growth Continuous Focus on Safety Initiatives & Talent Management Deliver on Project Titan - Phase II Increase Value-Added Sales Increase Line 4 Production by Implementing Larger Anode Line 6 Progressing as
Slide 24: Appendix
Aluminium for the world 06 APPENDIX
Slide 25: H1 2016 vs. H1 2015 Metal Sales Bridge
Aluminium for the world H1 2016 Results Aluminium Industry: Collapse of Aluminium prices Favourable Management Performance Offset by the Collapse of All-In-Prices H1 2016 vs. H1 2015 - Metal Sales Bridge (US$M) 1100 137 900 10 122 25 1,056 700 812 500 Product Mix Metal Sales LME Pricing Power Volume
Slide 26: H1 Sales by Product Line Bridge
Aluminium for the world H1 2016 Results Aluminium Industry: Collapse of Aluminium prices Higher Sales Volume Partially Offset by Unfavourable Shift in Product Mix 1H16 vs. 1H15 - Sales by Product Line Premium Above LME Trend US$ Per MT Bridge (MT’000) 500 500 46 59 2 400 471 300 480 460 199 300 100
Slide 27: Cost Analysis H1 2016 vs. H1 2015
Aluminium for the world H1 2016 Results Aluminium Industry: Collapse of Aluminium prices Cost Analysis H1 2016 vs. H1 2015 H1 2016 vs. H1 2015 - Direct Cost Bridge (US$M) 850 127 25 37 43 0 0 700 17 11 789 550 687 400 Direct Cost RM RM Energy Alumina Inventory Plant One-Off Line-6 Direct Cost 1H15 P
Slide 28: Adjusted EBITDA Bridge GAP Analysis H1 2016
Aluminium for the world H1 2016 Results Aluminium Industry: Collapse of Aluminium prices Adjusted EBITDA Bridge GAP Analysis – H1 2016 vs. H1 2015 Adjusted EBITDA Margin at 18% H1 2016 vs. H1 2015 - EBITDA Bridge (US$M) 300 EBITDA 25.2% 200 8 EBITDA 18% 272 245 4 100 102 154 22 0 EBITDA H1 2015 Meta
Slide 29: Cash Flow Bridge: H1 2016 vs. FY 2015
Aluminium for the world H1 2016 Results Aluminium Industry: Collapse of Aluminium prices Cash Flow Bridge: H1 2016 vs. FY 2015 Maintain Solid Cash Balance FY 2015 to H1 2016 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 500 160 8 58 400 154 21 31 300 80 141 309 344 200 87 100 0 Cash CF WC CAPEX Paym
Slide 30: 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 30
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