Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q2 2011 Earnings Presentation
29 slides from Aluminium Bahrain B.S.C's earnings presentation, 2011
Slide 1: Aluminium for the world: Q2 2011 IR Presentation
Aluminium for the world Q2 2011 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- Q2 2011 Results 4- Industry Perspectives in 2011 5- 2011 Alba Priorities albasmelter.com 3
Slide 4: Industry Highlights
‘~ INDUSTRY HIGHLIGHTS
Slide 5: Industry Highlights Q2 2011
Aluminium for the world INDUSTRY HIGHLIGHTS Q2 2011 Aluminium demand still very healthy YTD world consumption grew by 10% vs. 2010 Aluminium benefiting from being one of the less sector-dependent base metals Europe - Industrial Production +4.6% YTD vs. 2010 Asia - solid demand despite Japan earthqua
Slide 6: Industry Highlights: Production, LME and Premiums
Aluminium for the world INDUSTRY HIGHLIGHTS Q2 2011 Production Evolution China output at record level (9.1 million metric tonnes (mt), +4.1% YoY) but the threat of power shortage still very real World market balanced at the end of Q2 (-161 Kt with China & +201 Kt without) LME & Premiums Inventories
Slide 7: Alba Highlights
‘~ ALBA HIGHLIGHTS
Slide 8: Alba Highlights: Operational Achievements
Aluminium for the world Alba Highlights Q2 & H1 2011 - Operational Achievements Human Resources Management One-time social cost of $22 million recorded in Q2 impacting EBITDA by 3.4% STAR Operational Improvement Program Additional recurrent savings of $44 million recorded in H1 ahead of target by $9
Slide 9: Alba Highlights: Financial Key Performance Indicators
Aluminium for the world Alba Highlights Q2 & H1 2011 - Financial Key Performance Indicators Adjusted EBITDA up by LME & continuous improvement Q2: US$175 million up by 20% YoY H1: US$350 million up by 23% YoY Net Income impacted by unrealized derivative gains in Q2 partially offset by strong overall
Slide 10: Q2 2011 Results
Yo Q2 2011 RESULTS
Slide 11: Sales Analysis 2Q11 vs. 2Q10
Aluminium for the world Q2 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Sales Analysis 2Q11 vs. 2Q10 (000’s MT) Solid increase in LME and higher overall Sales Volume 2Q11 vs. 2Q10 - Metal Sales Bridge (US$M) 650 2 5 4* 106 450 636 519 250 Sales 2Q10 LME Product Mix Pricing Power Volume
Slide 12: Continuous Shift to Optimum Product Mix
Aluminium for the world Q2 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Continuous Shift to Optimum Product Mix Maximize Value Added Sales and Leverage Pricing Power 2Q11 vs. 2Q10 - Sales by Product line Bridge Premium Above LME Trend USD (Per MT) (000’s MT) 260 200 1 17 14 230 150 228
Slide 13: Cost Analysis 2Q11 vs. 2Q10
Aluminium for the world Q2 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Cost Analysis 2Q11 vs. 2Q10: One-Time Social Costs 2Q11 vs. 2Q10 - Direct Costs Bridge (US$M) 450 22 3 0 13 4 0 375 50 55 414 348 300 Direct Cost 2Q10 RM Price RM Consumption Energy Price Energy Consumption Invento
Slide 14: STAR Saving: YTD vs. Target 2011
Aluminium for the world Q2 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT STAR Saving - YTD vs. Target 2011: YTD vs. Target 2011 - STAR Cumulative Savings (US$M) 75 50 9.0 70.0 25 52.5 7.5 35.0 17.5 0 Q1 YTD Q3 Target Year End Target Target Above Target Year-End Target albasmelter.com $1
Slide 15: Adjusted EBITDA Bridge Gap Analysis 2Q11 vs. 2Q10
Aluminium for the world Q2 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Adjusted EBITDA Bridge Gap Analysis 2Q11 vs. 2Q10: Adjusted EBITDA Margin at a 27% rate 2Q11 vs. 2Q10 - EBITDA Bridge (US$M Adjusted) 300 250 8 66 118 200 EBITDA 27.2% 7 8 EBITDA 27.5% 150 175 147 100 EBITDA 2Q10 M
Slide 16: Cash Flow Bridge 2Q11 vs. 2Q10
Aluminium for the world Q2 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Cash Flow Bridge 2Q11 vs. 2Q10: Achieving a consistent Cash Flow trend 2Q10 to 2Q11 Cash Flow Bridge (USD M) Free Cash Flow (USD M) 500 34 3 250 166 182 325 175 85 213 213 247 210 150 Balance 100 1Q11 CF from Opera
Slide 17: Working Capital Trend as Percentage of Sales
Aluminium for the world Q2 2011 Results Working Capital Trend as Percentage of Sales: Efficient Working Capital Management Working Capital As percentage of Sales 25% 22% 22% 20% 18% End Q2 2010 End Q2 2011 Percentage albasmelter.com 17
Slide 18: Financial Summary Q2 and H1 2011
Aluminium for the world Q2 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT 2Q11 vs. 2Q10; 1H11 vs. 1H10 Sound Performance with an upward trend in Sales Financial Summary Q2 2011 Q2 2010 H1 2011 H1 2010 Sales 645 534 1,222 991 Adjusted EBITDA 175 147 350 285 Adjusted EBITDA % 27.2% 27.5% 2
Slide 19: Industry Perspectives in 2011
INDUSTRY PERSPECTIVES IN 2011
Slide 20: Industry Perspectives in 2011
Aluminium for the world Industry Perspectives in 2011 Demand to remain healthy Key factors to be observed: MENA still bullish driven by Turkey, KSA as well as widespread infrastructure projects Chinese slow-down could dampen slightly the mood but Japanese recovery will kick-off in Q4 US recovery pha
Slide 21: 2011 Alba Priorities
‘~ 2011 ALBA PRIORITIES
Slide 22: 2011 Alba Priorities
Aluminium for the world 2011 Alba Priorities Continuous Improvement & Preparation for Future Growth DuPont Sustainable Solutions Safety Excellence Program to be launched in Q3 2011 STAR Program: Deliver on our action plans & sustain the results Six Sigma Program to kick-off in September Maintain Val
Slide 23: Appendix
APPENDIX
Slide 24: Sales Analysis 1H11 vs. 1H10
Aluminium for the world H1 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Sales Analysis 1H11 vs. 1H10 (000’s MT) Solid increase in LME and higher overall Sales Volume 1H11 vs. 1H10 - Metal Sales Bridge (US$M) 1,200 42* 3 12 172 1,000 1,199 970 800 Sales 1H10 LME Product Mix Pricing Powe
Slide 25: Continued Shift to Optimum Product Mix
Aluminium for the world H1 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Continued Shift to Optimum Product Mix Maximize Value Added Sales and Leverage Pricing Power 1H11 vs. 1H10 - Sales by Product line Bridge Premium Above LME Trend USD (Per MT) (000’s MT) 480 6 180 20 32 440 140 167
Slide 26: Cost Analysis 1H11 vs. 1H10
Aluminium for the world H1 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Cost Analysis 1H11 vs. 1H10: One-Time Social Costs & Exceptional Expenses due to Recent Events 1H11 vs. 1H10 - Direct Costs Bridge (US$M) 800 14 5 3 24 28 9 700 104 55 770 649 600 Direct Cost 1H10 RM Price RM Consu
Slide 27: Adjusted EBITDA Bridge Gap Analysis 1H11 vs. 1H10
Aluminium for the world H1 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Adjusted EBITDA Bridge Gap Analysis 1H11 vs. 1H10: Adjusted EBITDA Margin at a 28% rate 1H11 vs. 1H10 - EBITDA Bridge (US$M Adjusted) 1 500 121 400 229 26 EBITDA 28.6% 17 300 EBITDA 28.7% 350 285 200 EBITDA 1H10 Me
Slide 28: Cash Flow Bridge 1H11 vs. 1H10
Aluminium for the world H1 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Cash Flow Bridge 1H11 vs. 1H10: Healthy Cash generation to maximize Shareholder Value Creation 1H10 to 1H11 Cash Flow Bridge (USD M) Free Cash Flow (USD M) 550 36 400 33 166 369 275 79 200 300 259 210 154 0 Balance
Slide 29: Slide 29
Aluminium Bahrain B.S.C. — Q2 2011 Earnings Presentation on 6ix