Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q1 2014 Earnings Presentation
25 slides from Aluminium Bahrain B.S.C's earnings presentation, 2014
Slide 1: Aluminium for the world: Q1 2014 IR Presentation
Aluminium for the world Q1 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- Q1 2014 Results 4- Industry Perspectives in 2014 5- 2014 Alba Priorities albasmelter.com 3
Slide 4: Industry Highlights
‘~ INDUSTRY HIGHLIGHTS
Slide 5: Aluminium Demand Still Healthy
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2014 Aluminium Demand Still Healthy (Reference Period: January - March) World consumption up by 5.6% YoY Asian demand up by 8% YoY driven by China (+10% YoY) thanks to a strong move towards light weight vehicles MENA consumption up by 5% YoY on the back
Slide 6: Production Evolution
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2014 Production Evolution World production up by 5.5% YoY and is expected to grow in the short-run with the fast ramp-up of Greenfield smelters in China (Shandong province) and India (Hindalco) Western producers continue to operate at a loss on the back
Slide 7: LME & Premiums
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2014 LME & Premiums LME inventories at 5.2 million metric tonnes 1Q14 Cash-average was $1,708/t with LME ranging between $1,641 on February 04 and $1,767 on January 20 Physical premiums at elevated levels as physical tightness continues US Mid West prem
Slide 8: Alba Highlights
‘~ ALBA HIGHLIGHTS
Slide 9: Q1 2014 Operational Highlights/Achievements
Aluminium for the world Alba Highlights Q1 2014 - Operational Highlights/Achievements Alba was able to increase its sales figures (in metric tonnes) by 3.1% YoY while production figures went up by 2.1% YoY on the back of strong operational performance 1Q14 Sales of Value-Added Products represented 6
Slide 10: 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 Q1 2014: Project Titan on Track with Projected Savings of $75/t Project Titan - US$ per MT 150 100 75 YTD March Year-End January 2016 2014 2014 Target Final Target 1. Savings from Project Titan repres
Slide 11: Q1 2014 Operational Highlights/Achievements: Raw Materials, Safety, Growth
Aluminium for the world Alba Highlights Q1 2014 - Operational Highlights/Achievements Raw Materials 2014 supply requirements have been fully secured Alba Safety Program 2,000,000 hours without Lost Time Injury (LTI) milestone Continuous focus on Zero Accidents Principles plant wide Future Growth Ban
Slide 12: Q1 2014 Financial Key Performance Indicators
Aluminium for the world Alba Highlights Q1 2014 - Financial Key Performance Indicators Adjusted EBITDA driven by lower LME prices US$94 million down by 25% YoY Adjusted Net Income driven by lower LME prices US$39 million down by 44% YoY Strong Free-Cash Flow thanks to sound working capital managemen
Slide 13: Q1 2014 Results
<: Q1 2014 RESULTS
Slide 14: Sales Analysis 1Q14 vs. 1Q13
Aluminium for the world Q1 2014 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Sales Analysis 1Q14 vs. 1Q13 Lower LME Prices Partially Offset by Higher Premium & Sales Volume 1Q14 vs. 1Q13 - Metal Sales Bridge (US$M) 500 16 73 18 1 350 498 459 200 Metal Sales 1Q13 LME Product Mix Pr
Slide 15: Continuous Shift to Optimum Product Mix
Aluminium for the world Q1 2014 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Continuous Shift to Optimum Product Mix Maximize Value-Added Products and Leverage Pricing Power 1Q14 vs. 1Q13 - Sales by Product line Bridge Premium Above LME Trend US$ Per MT (000’s MT) 250 4 4 1 320 12
Slide 16: Cost Analysis 1Q14 vs. 1Q13
Aluminium for the world Q1 2014 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cost Analysis 1Q14 vs. 1Q13: Higher Costs Due to Higher Production & Alumina Sales 1Q14 vs. 1Q13 - Direct Costs Bridge (US$M) 400 5 7 2 1 4 21 8 1 55 275 379 351 150 albasmelter.com RM Price RM Consumptio
Slide 17: Adjusted EBITDA Bridge Gap Analysis 1Q14 vs. 1Q13
Aluminium for the world Q1 2014 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Adjusted EBITDA Bridge Gap Analysis 1Q14 vs. 1Q13 Lower EBITDA Margin due to Lower LME Levels 1Q14 vs. 1Q13 - EBITDA Bridge (US$M Adjusted) 150 EBITDA 25.2% 38 55 27 28 0 EBITDA 19.4% 8 75 126 94 0 albasm
Slide 18: Cash Flow Bridge 1Q14 vs. Year-End 2013
Aluminium for the world Q1 2014 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Cash Flow Bridge 1Q14 vs. Year-End 2013: Healthy Cash Generation Despite Low LME Prices Q1 2014 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 8 300 23 100 94 82 150 60 50 80 172 71 109 0 0 Balance CF from
Slide 19: Financial Summary Q1 2014 vs Q1 2013
Aluminium for the world Q1 2014 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME LEVELS Sound Management Performance Partially Offset by Lower LME Prices Financial Summary Q1 2014 Q1 2013 Average Cash LME (US$/MT) 1,708 2,001 Total Sales (US$M) 486 498 EBITDA (US$M) 94 126 EBITDA% 19.4% 25.2
Slide 20: Industry Perspectives in 2014
INDUSTRY PERSPECTIVES IN 2014
Slide 21: Demand to Remain Healthy but with Strong Volatility
Aluminium for the world Industry Perspectives in 2014 Demand to Remain Healthy but with Strong Volatility Key factors to be observed: Global market expected to move into a deficit (last deficit was in 2006) Physical premiums to remain high as physical tightness continues MENA to remain bullish as co
Slide 22: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2014 Raw Materials Price Trends Alumina prices expected to slightly soften on the back of lower LME prices Green Petroleum Coke prices to remain relatively low with smelters’ production curtailments Aluminium Fluoride prices (ALF3) to remain stable in
Slide 23: 2014 Alba Priorities
‘~ 2014 ALBA PRIORITIES
Slide 24: 2014 Alba Priorities
Aluminium for the world 2014 Alba Priorities Continuous Improvement & Preparation for Future Growth Continued Focus on Safety & Training Deliver on Project Titan Leverage Physical Premiums Future Growth Complete Bankable Feasibility Study (BFS) within the first half of 2014 albasmelter.com 24
Slide 25: For more information, contact us
FOR MORE INFORMATION, CONTACT US ON: IR@alba.com.bh
Aluminium Bahrain B.S.C. — Q1 2014 Earnings Presentation on 6ix