Uacj Corporation · TSE:5741
Uacj — Tri-Arrows Aluminum — Investor Day (June 2023)
13 slides from Uacj's investor day presentation, Jun 7, 2023
Slide 1: UACJ Investor Day
Ht TRI-ARROWS ALUMINUM INC.
Slide 2: Tri-Arrows Aluminum
Tri-Arrows Aluminum TAA Headquarters Louisville, KY 70+ Employees Logan Plant World Class Productivity Russellville, KY 1,500 Employees Low-Cost Producer Over 490 kt sold annually Business Focused on Can Sheet Preferred Supplier JV Production Facility driven by Safety, Sustainability, and Partnershi
Slide 3: Our Mission and Our Strategy
Our Mission Create value and opportunities for growth through partnerships that are forward-thinking and dependable. Our Strategy Be the supplier of choice to the can sheet market while strengthening our economic base and expanding our capabilities and infrastructure.
Slide 4: FY22 Achieves Five Consecutive Years of Earnings Growth
FY22 Achieves Five Consecutive Years of Earnings Growth EBITDA $M’s $233 Record Performance • EBITDA of $233M • Conversion Revenue $164 $165 • FG Coil Production $137 • Cost and Revenue Inflation Management • UBC and Recycled Scrap Consumption $109 FY18 FY19 FY20 FY21 FY22 4
Slide 5: Transitioning from Growth to Stability
TRANSITIONING from Growth to Stability Stable Modest Growth Capacity Expansion Performance FY22-25 Project to & Capital Investment during inflationary Expand Capacity environment EBITDA $233 105% $205 $207 $207 $214 $M’s $164 $165 $137 $109 $80 FY17 FY18 FY19 FY20 FY21 FY22 FY23B FY24 FY25 FY26 ~$42
Slide 6: Macro-Economic Pressures: Inflation, Higher Interest Rates, and Aluminum Pricing
Macro-Economic Pressures: Inflation, Higher Interest Rates, and Aluminum Pricing Manufacturing Costs Interest Rate Aluminum Price Effective Scrap Price (index) (1 Month SOFR - % ) (UST $/lb.) (% of UST) +8.0% -4.4% +5% 5 4 3 $1.3864 $1.3256 65% 70% 2 1 0 FY22 FY23B 22-Apr 22-Oct 23-Apr 23-OctF FY22
Slide 7: Demand for Aluminum Cans in North America is Projected to Grow +3% per Year
Demand for Aluminum Cans in North America is Projected to Grow +3% per Year. Consumer Preference for the US Beverage Container Sales1 (Billion Units) Aluminum Can is Driving Growth 164 3.4 3.5 3.5 3.2 +3% 154 • Focus on environment by consumers, businesses and government policy makers 145 137 141 •
Slide 8: Can Line Investments: Summary
Can Line Investments: Summary • As new, more efficient and productive lines open, can makers have started to idle slower and less efficient lines • Some construction projects are delayed longer than Ardagh anticipated, as growth has Ball Crown slowed to 3% CanPack Florida Can Vobev • Additional new
Slide 9: U.S. Can Sheet Demand Growth Drawing Brownfield Expansions and Greenfield Investments
U.S. Can Sheet Demand Growth Drawing Brownfield Expansions and Newly Announced Greenfield Investments of $4.7B US Can Sheet Supply and Demand1 Deficit in U.S. (Billion Pounds) Greenfield New Brownfield Domestic Can Sheet Commissioning Greenfield2 Expansions Uncertainty Run Rate Will be More Balanced
Slide 10: TAA Investments: Continuing to Seek Growth, Investment Opportunities at Logan and Beyond
TAA Investments: Continuing to Seek Growth, Investment Opportunities at Logan and Beyond Logan External Hot Cold Recycling Enhance Existing Rolling Rolling Capabilities Dross $118M $31M $??M Processing $??M Investment for Continuity, Look for opportunity JV Partnership 13% productivity upgrades, and
Slide 11: Sustainability: Environmental Focus
Sustainability: Environmental Focus Aluminum Stewardship Initiative (ASI) Performance Standard Certified • Scope 1 and 2 emissions at industry-leading +30% CAPACITY INCREASE levels due to plant efficiencies and a low carbon electrical power mix • Aggressive recycled scrap consumption resulting in hi
Slide 12: Sustainability: Environmental Focus
Sustainability: Environmental Focus • Ongoing optimization of Recycling Rate Targets operational efficiencies to keep emissions low • Investigate and support evolving technologies (hydrogen, carbon capture) • Influence consumer behavior to increase UBC recycle rate 45% 70% • Continuing to seek impro
Slide 13: Summary / Outlook
Summary / Outlook North America can sheet market continues to grow, supported by consumer preferences TAA is well-positioned in the market as a preferred supplier, with a healthy balance of sheet and strong cash flow. TAA maintains strong risk management practices, commodity price risk, intere