Qatar Aluminium Manufacturing Company · QSE:QAMC
Qatar Aluminium Manufacturing — H1 2022 Earnings Presentation
36 slides from Qatar Aluminium Manufacturing's earnings presentation, Jun 30, 2022
Slide 1: Qatar Aluminium Manufacturing Company Investor Relations Presentation
Qatar Aluminium Manufacturing Company Investor Relations Presentation 30 June 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 six-month period ended 30 June 2022) 8. CAPEX and Cash flows (2022F – 2026F) 9. Marke
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 39.1% Peer 1 39.6% Peer 2 33.8% QAMCO 38.0% QAMCO ranks #2 QAMCO 33.3% QAMCO ranks #3 Peer 2 37.3% Peer 3 31.0% Peer 3 34.7% Peer 4 27.3% Peer 4 31.7% 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) 4500 Aluminium LME spot prices ($/MT) 750 Alumina spot prices ($/MT) 4000 650 3500 3000 550 2500 450 2000 350 1500 1000 250 Jan-20 Dec-20 Dec-21 Jun-22 Dec-20 02/01/2020 02/01/2021 02/01/2022 02/01/20
Slide 17: QAMCO results (six-month period ended June 2022)
CLASSIFICATION: C1 - CONTROLLED QAMCO results (For the six-month period ended 30 June 2022) 17
Slide 18: 1H-22 results at a Glance
CLASSIFICATION: C1 - CONTROLLED 1H-22 results at a Glance Growth vs. 1H-21 Revenue 56% EBITDA 58% Net profit 112% QR 2.11 billion QR 883 million QR 611 million EBITDA Margin: 41.9% EPS: QR 0.110 RoAE: 18.7% ▪ QAMCO posted highest half-yearly net profit since incorporation, benefitting from construct
Slide 19: Operational Performance review
CLASSIFICATION: C1 - CONTROLLED Operational Performance review Production (MT’ 000) – 100% • 1H-22 production volumes slightly inched higher compared to 1H-21. • 2Q-22 production volumes marginally increased compared to 1Q-22, mainly due to comparatively higher no. of operating days and higher produ
Slide 20: Financial performance review
CLASSIFICATION: C1 - CONTROLLED Financial performance review Share of Revenue (QR million) QAMCO’s Net Profit (QR million) • 1H-22 vs 1H-21: Share of JV’s revenue inclined, mainly due to • 1H-22 vs 1H-21: Profitability improved mainly due to continued uptick positive selling price trajectories and s
Slide 21: Net Profit Variance Analysis 1H-22 vs. 1H-21
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 1H-22 vs. 1H-21 (Amounts in QR’ million) QAMCO reported a net profit of QR 611 million, an increase in profitability by 112% compared to 1H-21. QAMCO’s 1H-22 results were impacted by Joint Venture’s performance mainly due to: Favorable m
Slide 22: Net Profit Variance Analysis 2Q-22 vs. 1Q-22
CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 2Q-22 vs. 1Q-22 (Amounts in QR’ million) QAMCO reported a net profit of QR 371 million, an increase in net profits by 55% compared to 1Q-22. QAMCO’s 2Q-22 results were impacted by Joint Venture’s performance mainly due to: Favorable move
Slide 23: Analysis of Selling Prices
CLASSIFICATION: C1 - CONTROLLED Analysis of Selling Prices Selling prices ($/MT) – 1H-22 vs 1H-21 LME Price difference o Average selling prices improved due to persistent strength from constructive macroeconomic environment leading to better demand for aluminium products globally, coupled with suppl
Slide 24: Analysis of EBITDA margins
CLASSIFICATION: C1 - CONTROLLED Analysis of EBITDA margins QAMCO’s JV EBITDA margins continue to remain robust & resilient 4,300 46.5% 48% 46.0% Primary Aluminium Price (USD/ton) 45.1% QAMCO’s JV EBITDA Margins (%) 3,800 43% 41.0% 41.4% 38.0% 3,300 36.8% 38% 2,800 33% 2,300 29.7% 28.3% 27.2% 26.1% 2
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 24% Qatar North America 4% Asia 22% 50% 25 QAMCO, IR Presentation, 1H-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. 1H-22 QAMCO JV Sales 1H-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) QAR 9.5 bn 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - May-19 May-20 May-21 May-22 Apr-19 Apr-20 Apr-21 Apr-22 Feb-19 Mar-19 Jul-19 Oct-19 Feb-20 Mar-20 Jul-20 Oct-20 Feb-21 Mar-21 Jul-21 Oct-21 Feb-22 Mar-22 A
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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