Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q3 2013 Earnings Presentation
29 slides from Aluminium Bahrain B.S.C's earnings presentation, 2013
Slide 1: Aluminium for the world: Q3 2013 IR Presentation
Aluminium for the world Q3 2013 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- Q3 2013 Results 4- Industry Perspectives in 2013 5- 2013 Alba Priorities albasmelter.com 3
Slide 4: Industry Highlights
‘~ INDUSTRY HIGHLIGHTS
Slide 5: Aluminium - Physical Demand Still Healthy
Aluminium for the world INDUSTRY HIGHLIGHTS Q3 2013 Aluminium - Physical Demand Still Healthy (Reference Period: July - September) World consumption up by 7.8% YoY Asian demand up by 11.1% YoY supported by robust growth in China (+14.7% YoY) and Indonesia (+10.1% YoY) MENA demand up by 4.5% on the b
Slide 6: Production Evolution
Aluminium for the world INDUSTRY HIGHLIGHTS Q3 2013 Production Evolution World market production up by 5.2% YoY China output at 6.2 million metric tonnes (+9.6% YoY) driven by government support on power subsidies and the fast ramp-up of smelters in the Northwest region Western producers continue to
Slide 7: LME & Premiums
Aluminium for the world INDUSTRY HIGHLIGHTS Q3 2013 LME & Premiums LME inventories almost stable at 5.4 million metric tonnes in September 3Q13 Cash-average at $1,781/t with LME ranging between $1,730/t on September 17 and $1,877/t on August 16 Physical premiums face uncertainty as a result of poten
Slide 8: Alba Highlights
‘~ ALBA HIGHLIGHTS
Slide 9: Q3 2013 - Operational Highlights/Achievements
Aluminium for the world Alba Highlights Q3 2013 - Operational Highlights/Achievements Alba was able to increase its sales (metric tonnes) by 4.2% YoY thanks to a strong Saudi demand Strong overall operational & cost performance (production in tonnage up by 4.7% YoY) 3Q13 Sales of Value-Added Product
Slide 10: Q3 & YTD 2013 - Financial Key Performance Indicators
Aluminium for the world Alba Highlights Q3 & YTD 2013- Financial Key Performance Indicators Adjusted EBITDA significantly up thanks to higher physical premiums, favorable plant performance and partially offset by low LME prices Q3: US$69 million up by 97% YoY YTD: US$285 million up by 20% YoY Adjust
Slide 11: Q3 2013 Results
<: Q3 2013 RESULTS
Slide 12: Sales Analysis 3Q13 vs. 3Q12
Aluminium for the world Q3 2013 Results STRONG PHYSICAL DEMAND DESPITE LOW LME PRICES Sales Analysis 3Q13 vs. 3Q12 Higher Premiums Coupled with Higher Sales Volume 3Q13 vs. 3Q12 - Metal Sales Bridge (US$M) 500 19 19 19 0 250 449 467 0 Sales 3Q12 LME Product Mix Pricing Power Volume Sales 3Q13 albasm
Slide 13: Maintain Optimum Product Mix
Aluminium for the world Q3 2013 Results STRONG PHYSICAL DEMAND DESPITE LOW LME PRICES Maintain Optimum Product Mix Increase Value-Added Products & Leverage Pricing Power 3Q13 vs. 3Q12 - Sales by Product line Bridge Premium Above LME Trend USD (Per MT) (000’s MT) 250 8 4 3 200 175 228 219 125 250 169
Slide 14: Cost Analysis 3Q13 vs. 3Q12
Aluminium for the world Q3 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME PRICES Cost Analysis 3Q13 vs. 3Q12: Higher Overall Costs on the Back of Higher Production 3Q13 vs. 3Q12 - Direct Costs Bridge (US$M) 450 8 4 2 3 11 21 1 275 398 403 100 Direct Costs RM Price RM Consumption Energ
Slide 15: Strong EBITDA vs. Industry
Aluminium for the world Q3 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME PRICES Strong EBITDA vs. Industry Adjusted EBITDA Margin at 14.2% 3Q13 vs. 3Q12 - EBITDA Bridge (US$M Adjusted) 80 EBITDA 14.2% 5 10 1 12 18 40 EBITDA 7.7% 69 35 0 EBITDA 3Q12 Metal Sales Other Sales Direct Cost
Slide 16: Cash Flow Bridge 3Q13 vs. 3Q12
Aluminium for the world Q3 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME PRICES Cash Flow Bridge 3Q13 vs. 3Q12: Alba Still Generating Cash Despite Low LME Prices Q3 2013 Cash Flow Bridge (USD M) Free Cash Flow (USD M) 250 16 30 100 69 52 125 32 50 141 226 111 55 37 0 0 Cash Balance C
Slide 17: Solid Management Performance Partially Offset by Lower LME Prices
Aluminium for the world Q3 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME PRICES Solid Management Performance Partially Offset by Lower LME Prices Financial Summary Q3 2013 Q3 2012 YTD 2013 YTD 2012 Average Cash LME (US$/MT) 1,781 1,922 1,872 2,025 Sales (US$M) 488 457 1,488 1,476 EBI
Slide 18: Industry Perspectives in 2013
INDUSTRY PERSPECTIVES IN 2013
Slide 19: Aluminium Demand Remains Healthy but with Strong Volatility
Aluminium for the world Industry Perspectives in 2013 Aluminium Demand Remains Healthy but with Strong Volatility Key factors to be observed Uncertainty on premiums due to pending decisions on LME warehousing rules Smelting overcapacity in China remains a concern MENA infrastructure spending to cont
Slide 20: Raw Materials Price Trends
Aluminium for the world Industry Perspectives in 2013 Raw Materials Price Trends Alumina spot index expected to remain stable for the rest of 2013 Green Coke prices to soften in Q4 2013 Liquid Pitch and Aluminium Fluoride prices to further weaken with the oversupply & weak demand in China for the re
Slide 21: 2013 Alba Priorities
‘~ 2013 ALBA PRIORITIES
Slide 22: Transform Safety Culture & Preparation for Future Growth
Aluminium for the world 2013 Alba Priorities Transform Safety Culture & Preparation for Future Growth Continued Focus on Safety Programs Leverage Operational Excellence Program Continued Focus on Talent Management Sustain Focus on Value-Added Sales Future Growth Bankable Feasibility Study (BFS) unde
Slide 23: Appendix
APPENDIX
Slide 24: Sales Analysis YTD13 vs. YTD12
Aluminium for the world YTD 2013 Results STRONG PHYSICAL DEMAND DESPITE LOW LME PRICES Sales Analysis YTD13 vs. YTD12 Higher Premiums Coupled with Higher Sales Volume YTD13 vs. YTD12 - Metal Sales Bridge (US$M) 1,700 52 39 86 1 850 1,458 1,462 0 Sales YTD12 LME Product Mix Pricing Power Volume Sales
Slide 25: Maintain Optimum Product Mix (YTD)
Aluminium for the world YTD 2013 Results STRONG PHYSICAL DEMAND DESPITE LOW LME PRICES Maintain Optimum Product Mix Increase Value-Added Products & Leverage Pricing Power YTD 13 vs. YTD 12 - Sales by Product Premium Above LME Trend USD (Per MT) line Bridge (000’s MT) 31 15 700 28 300 450 665 682 150
Slide 26: Cost Analysis YTD13 vs. YTD12
Aluminium for the world YTD 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME PRICES Cost Analysis YTD 13 vs. YTD 12: Lower Raw Material Prices on the Back of Lower LME Prices YTD 13 vs. YTD 12 - Direct Costs Bridge (US$M) 1,200 14 10 8 15 6 10 57 700 1,157 55 1,148 200 Direct Costs RM P
Slide 27: Adjusted EBITDA Bridge Gap Analysis YTD13 vs. YTD12
Aluminium for the world YTD 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME PRICES Adjusted EBITDA Bridge Gap Analysis YTD13 vs. YTD12: Adjusted EBITDA Margin at 19.2% YTD13 vs. YTD12 - EBITDA Bridge (US$M Adjusted) 300 1 EBITDA 19.2% 9 26 8 EBITDA 16.0% 4 200 285 236 100 EBITDA YTD12
Slide 28: Cash Flow Bridge YTD13 vs. YTD12
Aluminium for the world YTD 2013 Results FAVORABLE MANAGEMENT PERFORMANCE DESPITE LOW LME PRICES Cash Flow Bridge YTD13 vs. YTD12: Alba Still Generating Cash Despite Low LME Prices YTD 2013 Cash Flow Bridge (USD M) Free Cash Flow (USD M) 500 44 250 86 289 105 250 125 227 106 159 164 111 0 0 Cash Bal
Slide 29: For More Information, Contact Us
FOR MORE INFORMATION, CONTACT US ON: IR@alba.com.bh
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