Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q3 2014 Earnings Presentation
30 slides from Aluminium Bahrain B.S.C's earnings presentation, 2014
Slide 1: Aluminium for the world: Q3 2014 IR Presentation
Aluminium for the world Q3 2014 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- Q3 2014 Results 4- Industry Perspectives in 2014 5- 2014 Alba Priorities albasmelter.com 3
Slide 4: Industry Highlights
INDUSTRY HIGHLIGHTS Primary Reference for Industry Data is CRU
Slide 5: Aluminium Demand Remains Strong
Aluminium for the world INDUSTRY HIGHLIGHTS Q3 2014 Aluminium Demand Remains Strong (Reference Period: July - September) World consumption up by +8% YoY Asian demand up by 11% YoY driven by a robust growth in China (+14% YoY) on the back of government stimulus and infrastructure investment Demand in
Slide 6: Production Evolution
Aluminium for the world INDUSTRY HIGHLIGHTS Q3 2014 Production Evolution (Reference Period: July - September) World market production up by 6% YoY China output up by 4% YoY to reach 6.5 million metric tonnes supported by new capacity ramp-ups and production restarts on large scale World market short
Slide 7: LME & Premiums
Aluminium for the world INDUSTRY HIGHLIGHTS Q3 2014 LME & Premiums LME inventories at 4.6 million metric tonnes in September 3Q14 cash-average was $1,989/t with LME ranging between $1,837/t on July 1 and $2,114/t on August 29 Physical premiums continue to rise across the globe DDP Rotterdam at $447/
Slide 8: Alba Highlights
‘~ ALBA HIGHLIGHTS
Slide 9: Q3 2014 - Operational Highlights/Achievements
Aluminium for the world Alba Highlights Q3 2014 - Operational Highlights/Achievements Significant boost in Summer Safety campaigns Alba wins the 2014 RoSPA Gold Award for Safety Alba was able to increase its sales (metric tonnes) by 2.3% YoY Production up by 1.5% YoY on the back of sustained operati
Slide 10: Q3 & YTD 2014 - Financial Key Performance Indicators
Aluminium for the world Alba Highlights Q3 & YTD 2014 - Financial Key Performance Indicators Adjusted EBITDA up due to solid physical premiums, higher overall sales & favorable plant performance Q3: US$134 million up by 94% YoY YTD: US$325 million up by 14% YoY Adjusted Net Income up driven by highe
Slide 11: Project Titan - Improve Cash Cost of $150/t by January 2016
Aluminium for the world Alba Highlights Project Titan - Improve Cash Cost of $150/t by January 2016 YTD September 2014: Project Titan on Track with Projected Savings of $92/t Project Titan - US$ per MT 150 100 92 YTD September Year-End January 2016 2014 2014 Target Final Target 1. Savings from Proje
Slide 12: Q3 2014 Results
<: Q3 2014 RESULTS
Slide 13: Sales Analysis 3Q14 vs. 3Q13
Aluminium for the world Q3 2014 Results SOUND MANAGEMENT PERFORMANCE & HIGHER LME LEVELS Sales Analysis 3Q14 vs. 3Q13 Higher Premium, Higher LME Prices and Higher Sales Volume 3Q14 vs. 3Q13 - Metal Sales Bridge (US$M) 550 11 18 1 35 467 531 383 467 300 Metal Sales LME Product Mix Pricing Power Volum
Slide 14: Maintain Optimum Product Mix
Aluminium for the world Q3 2014 Results SOUND MANAGEMENT PERFORMANCE & HIGHER LME LEVELS Maintain Optimum Product Mix Sustain Value-Added Products & Leverage Pricing Power 3Q14 vs. 3Q13 - Sales by Product line Bridge Premium Above LME Trend US$ Per MT (000’s MT) 250 8 1 2 300 200 228 233 200 331 250
Slide 15: Cost Analysis 3Q14 vs. 3Q13
Aluminium for the world Q3 2014 Results SOUND MANAGEMENT PERFORMANCE & HIGHER LME LEVELS Cost Analysis 3Q14 vs. 3Q13 3Q14 vs. 3Q13 - Direct Costs Bridge (US$M) 10 5 450 62 2 14 9 9 3 300 442 403 150 Direct Cost RM Price RM Consumption Energy Alumina Sales Inventory Plant Spending One-Off Line-6 Dire
Slide 16: Adjusted EBITDA Bridge Gap Analysis 3Q14 vs. 3Q13
Aluminium for the world Q3 2014 Results SOUND MANAGEMENT PERFORMANCE & HIGHER LME LEVELS Adjusted EBITDA Bridge Gap Analysis 3Q14 vs. 3Q13 Adjusted EBITDA Margin at 22.6% 3Q14 vs. 3Q13 - EBITDA Bridge (US$M Adjusted) 180 42 40 EBITDA 22.6% 1 0 64 90 EBITDA 14.2% 134 69 0 EBITDA 3Q13 Metal Sales Othe
Slide 17: Cash Flow Bridge 3Q14 vs. 2Q14
Aluminium for the world Q3 2014 Results SOUND MANAGEMENT PERFORMANCE & HIGHER LME LEVELS Cash Flow Bridge 3Q14 vs. 2Q14 Achieving a Consistent Cash Flow Trend Q3 2014 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 4 320 37 120 45 133 50 160 60 100 162 167 55 0 CAPEX Payment to Net Debt Cash 0 Cash CF
Slide 18: Sound Performance with an Upward Trend in Sales
Aluminium for the world Q3 2014 Results SOUND MANAGEMENT PERFORMANCE & HIGHER LME LEVELS Sound Performance with an Upward Trend in Sales Financial Summary Q3 2014 Q3 2013 YTD 2014 YTD 2013 Average Cash LME (US$/MT) 1,989 1,781 1,832 1,872 Sales (US$M) 593 488 1,595 1,505 EBITDA (US$M) 134 69 325 285
Slide 19: Industry Perspectives in 2014
INDUSTRY PERSPECTIVES IN 2014 Primary Reference for Industry Data is CRU
Slide 20: Higher Premiums to be Maintained in the Short-Term
Aluminium for the world Industry Perspectives in 2014 Higher Premiums to be Maintained in the Short-Term Key factors to be observed: Physical premiums remain high on the back of tightness in the physical market MENA infrastructure spending to continue North American demand firm on the back of automo
Slide 21: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2014 Raw Materials Price Trends Alumina spot index to slightly soften in Q4 2014 Green Petroleum Coke prices to remain stable Aluminium Fluoride (ALF3) and Liquid Pitch prices to remain at the current levels for the remainder of 2014 albasmelter.com 2
Slide 22: 2014 Alba Priorities
‘~ 2014 ALBA PRIORITIES
Slide 23: Sustainable Improvement & Preparation for Future Growth
Aluminium for the world 2014 Alba Priorities Sustainable Improvement & Preparation for Future Growth Continuous Focus on Safety & Talent Management Deliver on Project Titan Leverage Strong Physical Demand Conditions Increase Creep Capacity with Minimal Capital Investment Line 6 Expansion Finalize ga
Slide 24: Appendix
APPENDIX
Slide 25: Sales Analysis YTD vs. YTD 13
Aluminium for the world YTD 2014 Results SOUND MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Sales Analysis YTD 14 vs. YTD 13 Higher Premium Partially Offset by Lower LME Prices YTD 14 vs. YTD 13 - Metal Sales Bridge (US 53 15 1,500 63 1 1,050 1,462 1,468 600 Sales YTD13 LME Product Mix Pricing Powe
Slide 26: Maintain Optimum Product Mix
Aluminium for the world YTD 2014 Results SOUND MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Maintain Optimum Product Mix Sustain Value-Added Products & Leverage Pricing Power YTD 14 vs. YTD 13 - Sales by Product line Premium Above LME Trend US$ Per MT Bridge (000’s MT) 5 4 700 2 350 667 689 682 633
Slide 27: Cost Analysis YTD14 vs. YTD13
Aluminium for the world YTD 2014 Results SOUND MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cost Analysis YTD14 vs. YTD13 YTD 14 vs. YTD 13 - Direct Costs Bridge (US 1,300 8 13 102 3 30 22 6 5 55 1,000 1,222 1,164 700 Direct Cost RM Price RM Consumption Energy Alumina Sales Inventory Plant Spending
Slide 28: Adjusted EBITDA Bridge Gap Analysis YTD14 vs. YTD13
Aluminium for the world YTD 2014 Results SOUND MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Adjusted EBITDA Bridge Gap Analysis YTD14 vs. YTD13: Adjusted EBITDA Margin at 20.4% YTD14 vs. YTD13 - EBITDA Bridge (US$M 350 12 EBITDA 20.4% 58 83 EBITDA 18.9% 6 3 225 325 285 100 EBITDA YTD 13 Metal Sales
Slide 29: Cash Flow Bridge YTD vs. FY13
Aluminium for the world YTD 2014 Results SOUND MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cash Flow Bridge YTD 14 vs. FY13: Healthy Cash Generation Despite Servicing Loans YTD14 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 24 550 90 280 127 325 275 136 180 258 172 167 159 0 Balance CF from WC CA
Slide 30: For More Information, Contact Us
FOR MORE INFORMATION, CONTACT US ON: IR@alba.com.bh
Aluminium Bahrain B.S.C. — Q3 2014 Earnings Presentation on 6ix