Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q3 2016 Earnings Presentation
30 slides from Aluminium Bahrain B.S.C's earnings presentation, 2016
Slide 1: Investor Relations Presentation Q3 2016
Aluminium for the world INVESTOR RELATIONS PRESENTATION Q3 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 Q3 2016 Industry 2016 Highlights Highlights Results Perspectives ALBA Priorities in 2016 3
Slide 4: Industry Highlights
Aluminium for the world 01 INDUSTRY HIGHLIGHTS
Slide 5: Industry Highlights - Q3 2016: Global Physical Demand Remains Firm
Aluminium for the world Industry Highlights - Q3 2016 Global Physical Demand Remains Firm World consumption up by +5% YoY Asian demand up by 6% YoY supported by Chinese Consumption (+7% YoY) on the back of sold growth in construction, transport and electrical sectors MENA demand remains healthy (+6.
Slide 6: Industry Highlights - Q3 2016: Production Evolution
Aluminium for the world Industry Highlights - Q3 2016 Production Evolution World production up by 3% YoY Asia output up by 5% YoY, supported by Chinese output ( +4% YoY) due to smelters restarts and new smelter ramp-ups North America production dropped by 11% YoY due to smelters closures as a result
Slide 7: Industry Highlights - Q3 2016: LME & Premiums
Aluminium for the world Industry Highlights - Q3 2016 LME & Premiums LME inventories at 2.1 million metric tonnes in September 3Q16 cash-average was $1,620/t with LME ranging between $1,546/t on September 12 and $1,691/t on August 18 Physical premiums prices continue to float at lower range ($/t) Ma
Slide 8: Alba Highlights
Aluminium for the world 02 ALBA HIGHLIGHTS
Slide 9: Alba Highlights - Q3 2016: Operational Highlights & Achievements
Aluminium for the world Alba Highlights - Q3 2016 Operational Highlights & Achievements Launch Safety Campaign ‘Safety at the Heart of Alba’ Alba was able to increase its sales volume by 3.1% YoY while production was up by 2.4% YoY Value-Added Sales averaged 58% of total shipments in Q3 Project Tita
Slide 10: Alba Highlights – Q3 & YTD 2016: Financial Key Performance Indicators
Aluminium for the world Alba Highlights – Q3 & YTD 2016 Financial Key Performance Indicators Adjusted EBITDA up in Q3 thanks to saving in Titan - Phase II Q3: US$87 million up by 21% YoY YTD: US$241 million down by 30% YoY Adjusted Net Income up driven by higher EBITDA levels in Q3 Q3: US$38 million
Slide 11: Maintain Solid Balance Sheet & Readiness for Line 6 Financing
Aluminium for the world Alba Highlights – Q3 2016 LME Prices: Slight Rebound in Q3 Maintain Solid Balance Sheet & Readiness for Line 6 Financing Cash & Net Debt 159 265 164 894 172 613 179 513 362 310 304 344 293 184 -72 -77 -139 -93 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Q2 2016 Q3
Slide 12: Q3 2016 Results
Aluminium for the world 03 Q3 2016 RESULTS
Slide 13: Q3 2016 Results: Metal Sales Bridge
Aluminium for the world Q3 2016 Results Favourable Management Performance Partially Offset by Lower Premiums 500 Q3 2016 vs. Q3 2015 - Metal Sales Bridge (US$M) 0 5 45 15 400 477 442 300 Metal Sales LME Product Mix Pricing Power Volume Metal Sales Q3 2015 Q3 2016 13
Slide 14: Q3 2016 Results: Sales by Product Line Bridge
Aluminium for the world Q3 2016 Results LME Prices: Slight Rebound in Q3 Favourable Management Performance Partially Offset by Lower Premiums 3Q16 vs. 3Q15 Premium Above LME Trend US$ Per MT Sales by Product Line Bridge (MT’000) 250 400 21 11 225 250 385 3 246 239 179 200 100 Sales Value Liquid Comm
Slide 15: Q3 2016 Results: Cost Analysis 3Q16 vs. 3Q15
Aluminium for the world Q3 2016 Results LME Prices: Slight Rebound in Q3 Cost Analysis 3Q16 vs. 3Q15 Q3 2016 vs. Q3 2015 - Direct Cost Bridge (US$M) 425 46 14 1 4 5 350 2 9 408 367 275 200 Direct Cost RM RM Energy Alumina Inventory Plant One-Off Direct Cost Q3 2015 Price Cons. Cons. Sales Change Spe
Slide 16: Q3 2016 Results: Adjusted EBITDA Margin at 18.7%
Aluminium for the world Q3 2016 Results LME Prices: Slight Rebound in Q3 Favourable Management Performance Adjusted EBITDA Margin at 18.7% Q3 2016 vs. Q3 2015 - EBITDA Bridge (US$M) 100 2 18.7% 1 14.6% 41 36 50 87 9 72 0 EBITDA Q3 2015 Metal Other Sales Direct Cost Derivatives Selling EBITDA Q3 2016
Slide 17: Q3 2016 Results: Cash Flow Bridge 2Q16 vs. 3Q16
Aluminium for the world Q3 2016 Results LME Prices: Slight Rebound in Q3 Cash Flow Bridge - 2Q16 vs. 3Q16 Q2 2016 to Q3 2016 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 450 35 140 85 6 90 0 5 250 70 344 293 119 44 50 0 Cash CF WC CAPEX Line 6 Payment Net Debt Cash Q3 2015 Q3 2016 Balance from Chan
Slide 18: Q3 2016 Results: Financial Summary
Aluminium for the world Q3 2016 Results LME Prices: Slight Rebound in Q3 Sound Management Performance Financial Summary Q3 2016 Q3 2015 YTD 2016 YTD 2015 Average Cash LME (US$/MT) 1,620 1,589 1,569 1,719 Total Sales (US$M) 463 490 1,320 1,570 EBITDA (US$M) 87 72 241 343 EBITDA% 18.7% 14.6% 18.3% 21.
Slide 19: Industry Perspectives in 2016
Aluminium for the world 04 INDUSTRY PERSPECTIVES IN 2016
Slide 20: Industry Perspectives in 2016: 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 LME price expected to fluctuate between $1,600/t - $1,700/t in Q4 2016 Physical premiums expected to
Slide 21: Industry Perspectives in 2016: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2016 Raw Materials Price Trends Alumina spot index expected to inch-up in Q4 2016 Green Petroleum Coke prices to remain relatively stable Alumina Fluoride (ALF3) and Liquid Pitch prices to remain at current levels for the remained of the year 21
Slide 22: 2016 Alba Priorities
Aluminium for the world 05 2016 ALBA PRIORITIES
Slide 23: 2016 Alba Priorities: Sustain Operational Performance and Gear for Future Growth
Aluminium for the world 2016 Alba Priorities Sustain Operational Performance and Gear for Future Growth Continuous Focus on Safety Initiatives & Talent Management Deliver on Project Titan -Phase II Increase Value-Added Sales Line 6 on Schedule Finalize ECA Financing by Q1 2017 23
Slide 24: Appendix
Aluminium for the world 06 APPENDIX
Slide 25: YTD 2016 Results: Metal Sales Bridge
Aluminium for the world YTD 2016 Results All-in-Prices: Floating at Lower Range Favourable Management Performance Partially offset with lower All-In-Prices YTD 2016 vs. YTD 2015 - Metal Sales Bridge (US$M) 1600 137 21 162 40 1200 1,533 1,253 800 400 Metal Sales LME Product Mix Pricing Power Volume M
Slide 26: YTD 2016 Results: Sales by Product Line Bridge
Aluminium for the world YTD 2016 Results All-in-Prices: Floating at Lower Range Favourable Management Performance offset with lower All-In- Prices YTD16 vs. YTD15 Premium Above LME Trend US$ Per MT Sales by Product Line Bridge (MT’000) 750 450 56 80 5 550 448 699 718 250 192 350 50 Sales Value Liqui
Slide 27: YTD 2016 Results: Direct Cost Bridge
Aluminium for the world YTD 2016 Results All-in-Prices: Floating at Lower Range Favourable Management Performance offset with lower All-In- Prices 1300 YTD 2016 vs. YTD 2015 - Direct Cost Bridge (US$M) 42 1100 173 30 25 57 9 1 900 1,197 1,054 700 500 Direct Cost RM RM Energy Alumina Inventory Plant
Slide 28: YTD 2016 Results: Adjusted EBITDA Margin at 18.3%
Aluminium for the world YTD 2016 Results All-in-Prices: Floating at Lower Range Favourable Management Performance Adjusted EBITDA Margin at 18.3% YTD 2016 vs. YTD 2015 - EBITDA Bridge (US$M) 400 22.0% 10 18.3% 5 200 280 343 143 241 30 0 EBITDA YTD15 Metal Other Sales Direct Cost Derivatives Selling
Slide 29: YTD 2016 Results: Cash Flow Bridge YTD 2016 vs. FY 2015
Aluminium for the world YTD 2016 Results All-in-Prices: Floating at Lower Range Cash Flow Bridge - YTD 2016 vs. FY 2015 FY 2015 to YTD 2016 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 600 280 43 45 238 109 350 21 36 180 261 309 293 150 100 80 Cash CF WC CAPEX LINE 6 Payment Net Debt Cash YTD 15 YT
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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