Qatar Aluminium Manufacturing Company · QSE:QAMC
Qatar Aluminium Manufacturing — 9M 2022 Earnings Presentation
36 slides from Qatar Aluminium Manufacturing's earnings presentation, Sep 30, 2022
Slide 1: Qatar Aluminium Manufacturing Company Investor Relations Presentation
Qatar Aluminium Manufacturing Company Investor Relations Presentation 30 September 2022
Slide 2: Disclaimer
CLASSIFICATION: C1 - CONTROLLED Disclaimer The company in which Qatar Aluminium Manufacturing Company Q.P.S.C. directly owns investment is a separate entity. In this presentation, “QAMCO” and “the Company” are sometimes used for convenience in reference to Qatar Aluminium Manufacturing Company Q.P.S
Slide 3: Table of Content
CLASSIFICATION: C1 - CONTROLLED Table of Content 1. QAMCO at a Glance 2. Ownership structure 3. Operations of joint venture 4. Competitive strengths 5. Peer review 6. Macroeconomic updates 7. QAMCO results (For the nine-month period ended 30 September 2022) 8. CAPEX and Cash flows (2022F – 2026F) 9.
Slide 4: QAMCO at a Glance
CLASSIFICATION: C1 - CONTROLLED QAMCO at a Glance 4
Slide 5: QAMCO at a Glance: Overview
CLASSIFICATION: C1 - CONTROLLED QAMCO at a Glance Overview • Qatar Aluminium Manufacturing Company • QatarEnergy provides all of the head office Q.P.S.C (QAMCO) was incorporated on functions for QAMCO through a comprehensive December 3, 2018 and listed on Qatar service-level agreement. Stock Exchang
Slide 6: Ownership structure
CLASSIFICATION: C1 - CONTROLLED Ownership structure 6
Slide 7: Ownership Structure
CLASSIFICATION: C1 - CONTROLLED Ownership Structure QatarEnergy Public (51%) (49%) QAMCO Qatalum Joint Venture (50%) • QAMCO holds 50% share of Qatar Aluminium Limited (Qatalum), which produces about 650,000 tons per year of high-quality aluminium for customers in Asia, Europe and North America. Its
Slide 8: Operations of Joint Venture
CLASSIFICATION: C1 - CONTROLLED Operations of Joint Venture 8
Slide 9: QAMCO's Joint Venture
CLASSIFICATION: C1 - CONTROLLED QAMCO’s Joint Venture • Qatar Aluminium (Qatalum) is located in Qatar, the company benefits from access to one of the world’s largest and most competitively priced sources of energy which allows it to maintain a first quartile cost position, one of the industry’s high
Slide 10: QAMCO's Joint Venture: Sales and Marketing
CLASSIFICATION: C1 - CONTROLLED QAMCO’s Joint Venture Sales and Marketing: • With a Marketing and Offtake Agreement, Hydro Aluminium is responsible for the offtake and marketing of 100% of Qatar Aluminium product's. The Marketing and Offtake Agreement gives Qatar Aluminium (Qatalum) access to Hydro
Slide 11: Competitive strengths
CLASSIFICATION: C1 - CONTROLLED Competitive strengths 11
Slide 12: Competitive strengths
CLASSIFICATION: C1 - CONTROLLED Competitive strengths State of the art production facility and technology deployed Low cost Assured feedstock supply and competitively priced energy smelter High focus on Health and Safety and Environment Proven Positive share of operating profit & EBITDA marg
Slide 13: Peer review
CLASSIFICATION: C1 - CONTROLLED Peer review 13
Slide 14: QAMCO's competitive positioning versus global peers
CLASSIFICATION: C1 - CONTROLLED QAMCO’s competitive positioning versus global peers Gross profit margin (%) EBITDA margin (%) Peer 1 39.6% QAMCO 41.9% QAMCO ranks #1 QAMCO 37.5% QAMCO ranks #2 Peer 1 39.4% Peer 2 33.4% Peer 2 32.5% Peer 3 30.1% Peer 3 30.8% Peer 4 28.7% Peer 4 30.7% Note: Data as of
Slide 15: Macroeconomic updates
CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates 15
Slide 16: Macroeconomic updates
CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates Aluminium prices ($/MT) Alumina prices ($/MT) 4,500 Aluminium LME spot prices ($/MT) 750 Alumina spot prices ($/MT) 4,000 650 3,500 3,000 550 2,500 450 2,000 350 1,500 1,000 250 Jan-20 Dec-20 Dec-21 Sep-22 Dec-20 02/01/2020 02/01/2021 02/01/2022
Slide 17: QAMCO results (nine months ended September 2022)
CLASSIFICATION: C1 - CONTROLLED QAMCO results (For the nine-month period ended 30 September 2022) 17
Slide 18: 9M-22 results at a Glance
CLASSIFICATION: C1 - CONTROLLED 9M-22 results at a Glance Growth vs. 9M-21 Revenue 42% EBITDA 32% Net profit 54% QR 3.02 billion QR 1.21 billion QR 803 million EBITDA Margin: 40.0% EPS: QR 0.144 RoAE: 17.4% ▪ QAMCO posted highest nine monthly net profit since incorporation ▪ Prices demonstrated vola
Slide 19: Operational Performance review
CLASSIFICATION: C1 - CONTROLLED Operational Performance review Production (MT’ 000) – 100% • 9M-22 production volumes slightly inched higher compared to 9M-21. • 3Q-22 production volumes marginally increased compared to 2Q-22, mainly due to comparatively higher no. of operating days. Sales volumes (
Slide 20: Financial performance review
CLASSIFICATION: C1 - CONTROLLED Financial performance review Share of Revenue (QR million) QAMCO’s Net Profit (QR million) • 9M-22 vs 9M-21: Share of JV’s revenue inclined, mainly due to • 9M-22 vs 9M-21: Profitability improved mainly due to continued uptick positive selling price trajectories and s
Slide 21: Net Profit Variance Analysis 9M-22 vs. 9M-21
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 9M-22 vs. 9M-21 (Amounts in QR’ million) QAMCO reported a net profit of QR 803 million, an increase in profitability by 54% compared to 9M-21. QAMCO’s 9M-22 results were impacted by Joint Venture’s performance mainly due to: Favorable mo
Slide 22: Net Profit Variance Analysis 3Q-22 vs. 2Q-22
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 3Q-22 vs. 2Q-22 (Amounts in QR’ million) QAMCO reported a net profit of QR 192 million, a decline in net profits by 48% compared to 2Q-22. QAMCO’s 3Q-22 results were impacted by Joint Venture’s performance mainly due to: Unfavorable move
Slide 23: Analysis of Selling Prices
CLASSIFICATION: C1 - CONTROLLED Analysis of Selling Prices Selling prices ($/MT) – 9M-22 vs 9M-21 o Average selling prices improved on a year- on-year basis, underpinned by continued strength from constructive macroeconomic LME Price difference context carried forward from the latter part of last ye
Slide 24: Analysis of EBITDA margins
CLASSIFICATION: C1 - CONTROLLED Analysis of EBITDA margins Despite macroeconomic volatilities, QAMCO’s JV EBITDA margins continue to remain robust & resilient 4,300 46.5% 46.0% 48% Primary Aluminium Price (USD/ton) 45.1% QAMCO’s JV EBITDA Margins (%) 3,800 38.0% 43% 41.0% 41.4% 3,300 36.8% 35.6% 38%
Slide 25: Geographic analysis – QAMCO JV revenue
CLASSIFICATION: C1 - CONTROLLED Geographic analysis – QAMCO JV revenue Asia remained QAMCO JV’s largest market, while its presence in US and Europe continued to be substantial Europe 23% Qatar North America 4% Asia 22% 51% 25 QAMCO, IR Presentation, 9M-22
Slide 26: QAMCO JV revenue – product mix
CLASSIFICATION: C1 - CONTROLLED QAMCO JV revenue – product mix (%) ▪ Extrusion ingots along with foundry alloys (together referred to as value added or premium products) remains key products for QAMCO’s JV. 9M-22 QAMCO JV Sales 9M-21 QAMCO JV Sales Volumes – Product mix (%) Volumes – Product mix (%)
Slide 27: Market Statistics and dividend distribution
CLASSIFICATION: C1 - CONTROLLED Market Statistics and dividend distribution 27
Slide 28: Market Statistics and Dividends
CLASSIFICATION: C1 - CONTROLLED Market Statistics and Dividends 16.00 Market Cap (QR Billion) 14.00 12.00 QAR 9.3 bn 10.00 8.00 6.00 4.00 2.00 - Dividend distribution since incorporation Dividend - Dividend - Dividend - 2019 Total 2020 2021 QR 167.4 m QR 195.3 m QR 446.4 m QR 809.1 m QR 0.03 per QR
Slide 29: CAPEX and Cash Flows (2022-2026)
CLASSIFICATION: C1 - CONTROLLED CAPEX and Cash Flows (2022-2026) 29
Slide 30: CAPEX and Cash Flows (2022-2026) – QAMCO's Share
CLASSIFICATION: C1 - CONTROLLED CAPEX and Cash Flows (2022-2026) – (QAMCO’s Share) CAPEX: o Planned CAPEX (2022-26) include routine operations such as pot relining and other maintenance pertaining to power plant and anode plant. Cash Flows: Cash Flows (QAR’ m) 2022 2023 2024 2025 2026 o Impressive c
Slide 31: Historical performance (2019 - 2021)
CLASSIFICATION: C1 - CONTROLLED Historical performance (2019 - 2021) 31
Slide 32: Key Performance Indicators
CLASSIFICATION: C1 - CONTROLLED Key Performance Indicators Production (MT’000) – 100% Sales Volumes (MT’000) – 100% Selling Prices ($ / MT) • 2021 Production remained highest in comparison to 2019 & 2020. • 2021 Selling prices remained highest, amid macroeconomic tailwinds. Share of Revenue (QR mill
Slide 33: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure 33
Slide 34: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure Board structure Board committees • QAMCO Board of Directors consists of six (6) • The Board of Directors established Board Directors, all were appointed by the Special Committees and Special Committees to carry Shareholder “QatarEnergy”. out speci
Slide 35: Governance Structure
CLASSIFICATION: C1 - CONTROLLED Governance Structure Remuneration Shareholders’ rights Board of Directors • The Company’s Articles of Associations provide for • The Company has developed a periodically the rights of shareholders, particularly the rights to revisited remuneration policy for Board mem
Slide 36: THANK YOU
THANK YOU For further information, Qatar Aluminium Manufacturing Company can be contacted as follows: Telephone: (+974) 4013 2277 Fax: (+974) 4013 9750 E-mail: qamco.investorrelations@qataenergy.qa or qamco@qataenergy.qa Address: P. O. Box 3212, Doha, State of Qatar. Please refer to www.qamco.com.qa
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