Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q1 2013 Earnings Presentation
24 slides from Aluminium Bahrain B.S.C's earnings presentation, 2013
Slide 1: Aluminium for the world: Q1 2013 IR Presentation
Aluminium for the world Q1 2013 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 2013 Results 4- Industry Perspectives in 2013 5- 2013 Alba Priorities albasmelter.com 3
Slide 4: Industry Highlights
‘~ INDUSTRY HIGHLIGHTS
Slide 5: Aluminium Demand Still Healthy
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2013 Aluminium Demand Still Healthy (Reference Period: January - March) World consumption up by 6% YoY Asian demand up by 9% YoY mainly driven by China (+11%), India (+7%) MENA demand up by 5% YoY on the back of large infrastructure spending in Saudi Ar
Slide 6: Production Evolution
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2013 Production Evolution World production up by 5% YoY and is expected to grow in the short- term with Greenfield projects ramp-up in the Middle East (Ma’aden), Malaysia and India Western producers still suffering from current LME prices & high energy
Slide 7: LME & Premiums
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2013 LME & Premiums LME inventories at 5.1 million metric tonnes 1Q13 Cash-average was $2,001/t with LME ranging between $1,868 on March 27 and $2,123 on February 15 Physical premiums at record high across the globe: DDP Rotterdam at $287/t vs. $183/t i
Slide 8: Alba Highlights
‘~ ALBA HIGHLIGHTS
Slide 9: Alba Highlights: Operational Highlights/Achievements
Aluminium for the world Alba Highlights Q1 2013 - Operational Highlights/Achievements Alba was able to increase sales by 2.2% on the back of healthy demand of Value-Added products Production up by 3% thanks to a sustained focus on enhanced productivity 1Q13 Sales of Value-Added Products represented
Slide 10: Alba Highlights: Operational Highlights/Achievements
Aluminium for the world Alba Highlights Q1 2013 - Operational Highlights/Achievements Raw Materials 2013 Alumina supply requirements have been secured and Alcoa agreement implemented AlbaSafeWay Program 4,000,000 hours without Lost Time Injury (LTI) milestone Continuous focus on Zero Accidents Princ
Slide 11: Alba Highlights: Financial Key Performance Indicators
Aluminium for the world Alba Highlights Q1 2013 - Financial Key Performance Indicators Adjusted EBITDA up due to strong physical premiums and favorable plant performance despite lower LME prices US$126 million up by 9% YoY Adjusted Net Income up on the back of higher EBITDA levels US$70 million up b
Slide 12: Q1 2013 Results
Yo Q1 2013 RESULTS
Slide 13: Sales Analysis 1Q13 vs. 1Q12
Aluminium for the world Q1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Sales Analysis 1Q13 vs. 1Q12 Higher Overall Sales & Premium Offset by Lower LME Prices 1Q13 vs. 1Q12 - Metal Sales Bridge (US$M) 11 13 500 22 0 400 496 498 300 200 Sales 1Q12 LME Product Mix Pricing Power
Slide 14: Continuous Shift to Optimum Product Mix
Aluminium for the world Q1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Continuous Shift to Optimum Product Mix Maximize Value-Added Products and Leverage Pricing Power 1Q13 vs. 1Q12 - Sales by Product line Bridge Premium Above LME Trend US$ Per MT (000’s MT) 250 9 10 14 188
Slide 15: Cost Analysis 1Q13 vs. 1Q12
Aluminium for the world Q1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cost Analysis 1Q13 vs. 1Q12: Lower Raw Material Prices on the Back of Lower LME Levels 1Q13 vs. 1Q12 - Direct Costs Bridge (US$M) 400 14 2 3 3 21 1 2 300 55 352 351 200 100 albasmelter.com RM Price RM Con
Slide 16: Strong EBITDA vs. Industry
Aluminium for the world Q1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Strong EBITDA vs. Industry Adjusted EBITDA Margin at 25.3% 1Q13 vs. 1Q12 - EBITDA Bridge (US$M Adjusted) 150 7 EBITDA 25.3% EBITDA 23.2% 2 1 0 55 100 126 115 50 0 albasmelter.com EBITDA 1Q12 Metal Sales D
Slide 17: Cash Flow Bridge 1Q13 vs. Year-End 2012
Aluminium for the world Q1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cash Flow Bridge 1Q13 vs. Year-End 2012: Healthy Cash Generation Despite Low LME Prices Q1 2013 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 300 46 100 127 10 53 200 43 50 100 71 164 139 48 0 0 Balance C
Slide 18: Financial Summary Q1 2013 vs Q1 2012
Aluminium for the world Q1 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Improved Management Performance Partially Offset by Lower LME Prices Financial Summary Q1 2013 Q1 2012 Sales 498 496 EBITDA 126 115 EBITDA% 25.3% 23.2% EBITDA (Excl. One Time Cost) 122 95 EBITDA% (Excl. O
Slide 19: Industry Perspectives in 2013
INDUSTRY PERSPECTIVES IN 2013
Slide 20: Demand to Remain Healthy but with Strong Volatility
Aluminium for the world Industry Perspectives in 2013 Demand to Remain Healthy but with Strong Volatility Key factors to be observed: Bullish physical demand despite low LME levels Record physical premiums to be sustained in the short-term on the back of sound physical demand MENA infrastructure spe
Slide 21: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2013 Raw Materials Price Trends Alumina spot index expected to range slightly higher in 2013 Green Petroleum Coke prices to remain stable in the remainder of 2013 Aluminium Fluoride (ALF3) to increase in the 2nd half of 2013 with production curtailmen
Slide 22: 2013 Alba Priorities
‘~ 2013 ALBA PRIORITIES
Slide 23: Continuous Improvement & Preparation for Future Growth
Aluminium for the world 2013 Alba Priorities Continuous Improvement & Preparation for Future Growth AlbaSafeWay Program Towards ZERO Accidents Leverage Strong Physical Demand Conditions Sustained focus on Value-Added Sales Focus on pricing power for 2nd half premium negotiations Enhance Leadership &
Slide 24: For more information, contact us
FOR MORE INFORMATION, CONTACT US ON: IR@alba.com.bh
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