Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — FY2010 Earnings Presentation
32 slides from Aluminium Bahrain B.S.C's earnings presentation, March 2011
Slide 1: Aluminium for the world: 2010 IR Presentation
Aluminium for the world 2010 IR PRESENTATION albasmelter.com 1
Slide 2: Confidential Document
Aluminium for the world CONFIDENTIAL DOCUMENT 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 ava
Slide 3: Contents
Aluminium for the world Contents 1- Industry Highlights 2- Alba Highlights 3- 2010 Results 4- Industry Perspectives in 2011 5- 2011 Alba Priorities albasmelter.com 3
Slide 4: Industry Highlights
INDUSTRY HIGHLIGHTS
Slide 5: Industry Highlights: 2010 A Recovery Year
Aluminium for the world INDUSTRY HIGHLIGHTS 2010 A RECOVERY YEAR Strengthening demand driven by global economic rebound Worldwide consumption staged a dramatic comeback increasing 19.8% year over year Automotive market made giant turnaround Buoyant German industrial production (+ 9.4% in 2010). Chin
Slide 6: Industry Highlights: LME, premiums and raw material prices
Aluminium for the world INDUSTRY HIGHLIGHTS 2010 A RECOVERY YEAR LME and premiums The LME continued to rise during 2010 with an average cash price of 2,173 $/t vs 1,665 $/t in 2009 (and a Q4 2010 at 2,343 $/t) Ingot premium market remains healthy with Europe Duty Delivered Paid (DDP) at 169 $/t and
Slide 7: Alba Highlights
ALBA HIGHLIGHTS
Slide 8: 2010 Alba Highlights
Aluminium for the world 2010 Alba Highlights 2010: Alba takes its place on the World Wide Stage Alba New Management Team in Place Implementation of our STAR Operational Improvement Program: Achieved approximately 100M$ of performance improvements in 2010 as compared to 2009 Launched Alba Lean Manufa
Slide 9: 2010 - A Step Forward to Worldwide Leadership
Aluminium for the world ALBA HIGHLIGHTS 2010 - A STEP FORWARD TO WORLDWIDE LEADERSHIP Operational Excellence blossoms in Alba “$100M of performance improvements achieved in 2010 against 2009” Organizational Efficiency – Head Count Management Marketing and Sales Excellence – Increase in Value Added Sal
Slide 10: 2010 Results
2010 RESULTS
Slide 11: Sales Analysis 2010 vs. 2009
Aluminium for the world 2010 Results A STRONG RECOVERY Sales Analysis 2010 vs. 2009 Dramatic shift in LME and Value Added sales (product mix and pricing power) 2010 vs 2009- Metal Sales Bridge (US$M) 2,000 14 24 26 1,750 424 1,500 1,933 1,250 1,496 1,000 Sales 2009 LME Product Mix Pricing Power Volu
Slide 12: Shift to Optimum Product Mix
Aluminium for the world 2010 Results A STRONG RECOVERY Shift to Optimum Product Mix: Maximize Value Added Sales and minimize Commodity 2010 vs 2009- Sales by Product line Bridge (MT '000) Premium Above LME Trend USD/MT 1,250 155 45 215 150 1,000 120 750 142 870 855 90 96 500 60 Sales 2009 Value Adde
Slide 13: Cost Analysis 2010 vs. 2009
Aluminium for the world 2010 Results A STRONG RECOVERY Cost Analysis 2010 vs. 2009: Successful transition to continuous improvement culture 2010 vs 2009 - Direct Costs Bridge (US$M) 1,600 1,500 20 8 2 1,400 112 57 1,300 1,200 1,337 1,296 1,100 1,000 2009 Raw Material Price Raw Material Consumption E
Slide 14: Adjusted EBITDA Bridge Gap Analysis 2010 / 2009
Aluminium for the world 2010 Results A STRONG RECOVERY Adjusted EBITDA Bridge Gap Analysis 2010 / 2009: Adjusted EBITDA Margin approaching 30% (tops in Industry) 2010 vs 2009 - EBITDA Bridge (US$M) 800 12 41 47 600 11 EBITDA 28% 437 400 552 EBITDA 13% 200 203 0 EBITDA 2009 (adjusted) Metal Sales Oth
Slide 15: Working Capital Trend as Percentage of Sales
Aluminium for the world 2010 Results A STRONG RECOVERY Working Capital Trend as Percentage of Sales: Cash is King Working Capital As percentage of Sales 30% 27% 28% 25% 23% 22% 20% 2009 2010 Percentage albasmelter.com 15
Slide 16: Cash Flow Bridge 2010 vs. 2009
Aluminium for the world 2010 Results A STRONG RECOVERY Cash Flow Bridge 2010 vs. 2009: Healthy cash generation to cover debt, make investments and maximize shareholder value creation 2009 to 2010 Cashflow Bridge (USD M) Free Cash Flow (USD M) 1,000 800 500 20 62 600 238 400 577 300 495 226 200 279 1
Slide 17: Total Debt Reduction Trend
Aluminium for the world 2010 Results A STRONG RECOVERY Total Debt Reduction Trend: Stable debt profile with favorable leverage position Total Debt Trend (USD M) 1,300 1,238 1,053 451 1,000 405 700 787 648 400 2009 2010 Long-Term Short Term Total Debt albasmelter.com 17
Slide 18: Cash back to Shareholders
Aluminium for the world 2010 Results A STRONG RECOVERY Cash back to Shareholders: History of delivering cash even in the worst of economic times Cash back to Shareholders Trend (USD M) 300 200 238 100 56 0 2009 2010 Cash back to Shareholders albasmelter.com 18
Slide 19: Q4 and Full Year Results 2010 vs. 2009
Aluminium for the world 2010 Results A STRONG RECOVERY Q4 and Full Year Results 2010 vs. 2009: Sustainable recovery leveraging maximum benefits from operational excellence in an improved economic environment Financial Summary Q4 2010 Q4 2009 FY 2010 FY 2009 Sales 561 442 1,997 1,549 Adjusted EBITDA
Slide 20: Alba Board recommends dividend of 200M$
Aluminium for the world 2010 Results A STRONG RECOVERY Alba Board recommends dividend of 200M$ At the February 28th Alba Board meeting, the Directors recommended a dividend equalling 54.3% of 2010 net profit (subject Bahrain Bourse and Alba Shareholder approval). The Shareholder approval will be req
Slide 21: Industry Perspectives in 2011
INDUSTRY PERSPECTIVES IN 2011
Slide 22: Another Year of Recovery of the Consumption
Aluminium for the world Industry Perspectives in 2011 Another Year of Recovery of the Consumption Overall Aluminium consumption continues dramatic growth (+8.6% in 2011) Automotive sector remains bullish with China experiencing double-digit growth in car production and global OEM’s increasing Alumin
Slide 23: Shortage of Value Added Production Capacity
Aluminium for the world Industry Perspectives in 2011 Shortage of Value Added Production Capacity Cutbacks during the crisis have left world shortage in value added casting capacity Automotive industry drive to reduce weight by substitution has gobbled up most available capacity Trend of Aluminium p
Slide 24: LME Stocks and Price Outlook
Aluminium for the world Industry Perspectives in 2011 LME Stocks and Price Outlook Majority of LME inventories are locked up in warehouse/financing deals which is expected to continue in a low interest rate environment Chinese inventories will remain tight with 20 days of demand and will be highly s
Slide 25: Raw Material Trends
Aluminium for the world Industry Perspectives in 2011 Raw Material Trends Producers are moving away from fixed LME percentage contracts as supply tightens Green petroleum coke prices increasing in China due to increased local demand and shortage of high quality material Liquid pitch price increasing
Slide 26: 2011 Alba Priorities
2011 ALBA PRIORITIES
Slide 27: Maximizing Value Added Sales
Aluminium for the world 2011 Alba Priorities Maximizing Value Added Sales Maximize utilization of value added casting capacity Further increase the geographical footprints to develop new business (e.g. Rolling Slab) New project to install re-melting capacity to increase overall metal supply albasmel
Slide 28: Continuous Improvement
Aluminium for the world 2011 Alba Priorities Continuous Improvement Achieve target of 170M$ performance improvements in 2011 against 2009 Well on our way to achieve the targeted run rate of 250M$ in performance improvements by the end of 2012 2011 “AlbaSmartWay” initiatives will focus on: Securing t
Slide 29: Raw Material Competitive Long Term Sourcing
Aluminium for the world 2011 Alba Priorities Raw Material Competitive Long Term Sourcing Alumina: Majority of our requirements covered under long term contracts with balance purchased through spot market on an opportunistic basis Green petroleum coke: significant efforts to increase supply base and e
Slide 30: Preparing Alba's Future Growth
Aluminium for the world 2011 Alba Priorities Preparing Alba’s Future Growth Further evaluation of organic capacity expansions taking into account competitive energy and technology solutions Line 4 and 5 Creep target 80 KTPY Line 6 target 400 KTPY albasmelter.com 30
Slide 31: Appendix
APPENDIX
Slide 32: Value Added Products Reach 63% of Total
Aluminium for the world 2010 Results VALUE ADDED PRODUCTS REACH 63% OF TOTAL (UP FROM 44% IN 2009) 2010 vs 2009 - Sales by Product line (MT ‘000) 350 300 250 200 150 307 300 236 100 200 191 50 114 118 110 66 85 0 Billet Rolling Slab Foundry Liquid Commodity Ingots 2009 2010 Billets, Rolling Slabs an
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