Noranda Aluminum — Q2 2015 Earnings Presentation
11 slides from Noranda Aluminum's earnings presentation, Jul 22, 2015
Slide 1: 2nd Quarter 2015 Earnings Conference Call
2nd Quarter 2015 Earnings Conference Call Noranda Aluminum Holding Corp July 22, 2015 10:00 AM Eastern Exhibit 99.2
Slide 2: Forward-looking statements
The presentation and comments made by Noranda’s management on the quarterly conference call contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding a positive outlook for aluminum prices beyond the near-term; the
Slide 3: Second Quarter 2015 and Other Highlights
• Fifth consecutive quarter of positive operating cash flow and third consecutive quarter of year- over-year improvement in operating cash flow • Cash and cash equivalents totaled $24.5 million and total available liquidity was $159.1 million as of June 30, 2015 • Excluding special items, EPS was a
Slide 4: Progress on Transformation Path
Progress on Transformation Path 4 We have now either realized or begun to realize savings on 55% of our $85 million three year productivity target, and have made substantial progress on another 18% of that target.
Slide 5: Operating Reliability
Operating Reliability 5 Eliminating reliability issues at the smelter would have reduced our net cash cost by 8 cents per pound during second quarter. For the trailing four quarters, eliminating those reliability issues would have decreased net cash cost by 5 cents per pound. • Focus in Primary segm
Slide 6: Our Opportunity
Our Opportunity 6 With current commodity input prices, full implementation of productivity projects, and improved operational reliability, our cost structure will allow us to be free-cash flow positive in the event of an extended period of aluminum prices at their current levels. Productivity implem
Slide 7: Bridge of Segment Profit to Net Income, Ex. Special Items
(amounts in millions) Q2 2014 Q1 2015 Q2 2015 Segment profit $ 30.4 $ 33.9 $ 19.4 LIFO/LCM (1.2) 4.8 (5.9) Other recurring non-cash items (2.8) (4.5) (6.0) EBITDA, excluding special items 26.4 34.2 7.5 Depreciation & amortization (22.3) (23.0) (23.5) Interest expense, net (12.6) (13.2) (13.2) Pre-ta
Slide 8: Segment Profit Summary
Quarterly Results Last Four Quarters (amounts in millions except per pound data) Q2-14 Q1-15 Q2-15 Q2-14 Q2-15 Integrated Upstream Business: Primary shipments (lbs) 143.2 131.1 128.3 584.5 531.7 Integrated Upstream margin/lb: Midwest Transaction Price/lb $ 0.99 $ 1.05 $ 0.95 0.94 1.05 Integrated net
Slide 9: Sequential Quarter Cash Cost and Segment Profit Bridges
Sequential Quarter Cash Cost and Segment Profit Bridges 9 Sequential total segment profit declined due primarily to a sequential decrease in aluminum prices, which negatively impacted Alumina and Primary results. $0.87 $0.01 $0.02 $0.03 $0.05 $0.03 $0.02 $0.83 1Q-15 Net Cash Cost Additional bauxite
Slide 10: Capital structure
Capital structure 10 Our capital structure provides us flexibility, with cash and available liquidity to support our business as we improve our operational reliability and implement key productivity projects • $265 million asset-based revolving credit facility o No borrowings outstanding at end of 2
Slide 11: Cash and Financial Management Overview
Cash and Financial Management Overview (1) Includes impact of taxable cancellation of debt income from open market debt repurchases in 2009, which is being recognized as taxable income from 2014 through 2019.. The recognition of this taxable income has an annual tax impact of approximately $12.7 mil
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