Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q3 2022 Earnings Presentation
36 slides from Aluminium Bahrain B.S.C's earnings presentation, 2022
Slide 1: Investor Relations Presentation Q3 2022
INVESTOR RELATIONS PRESENTATION Q3 2022
Slide 2: Disclaimer
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 you in connection with th
Slide 3: Contents
CONTENTS 01 02 03 Industry Alba 9 Months 2022 Highlights Highlights Results 04 05 06 Industry Perspectives 2022 Alba Appendix in 2022 Priorities Page 3
Slide 4: Industry Highlights
01 INDUSTRY HIGHLIGHTS1 1 Industry Highlights are based on CRU Market Intel Page 4
Slide 5: Falling Demand: Heightened Levels of Volatility and Uncertainty
Falling Demand: Heightened Levels of Volatility and Uncertainty (+0.3% YoY) After navigating through COVID-19 pandemic, the global economy has started to face the prospect of a recession. Outbreak of Ukraine-Russia war has led to a steep increase in energy prices with global inflation rising to unpr
Slide 6: World Market Supply +3% YoY
World Market Supply +3% YoY China increased production (up by 6% YoY) following 2021 supply cuts and delayed ramp ups Europe leading the World ex-China with its output cuts owing to spikes in energy prices (down by 8% YoY) North America supply impacted due to economic slowdown (down by 5% YoY) Middl
Slide 7: LME Price & Premiums
LME Price & Premiums LME-Cash averaged US$2,354/t in Q3 2022 -- down by 11% YoY [lowest: US$2,080/t on 28 Sep’22 and highest: US$2,498/t on 11 Aug’22] LME inventories hit record low at ~330 kt (down by 73% YoY) Premiums down owing to weaker demand and bearish market sentiment Major Japanese Ports (M
Slide 8: Alumina Price: 18% of LME Price
Alumina Price: 18% of LME Price [US$413/t] LME Price Trend (US$/t) 3,700 3,267 3,300 2,882 2,900 2,764 2,647 2,500 2,100 2,354 1,700 1,300 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Alumina Price Index Trend (% of LME) 21.00% 18.00% 16% 15.00% 14% 18% 12.00% 13% 9.00% 12% 6.00% 3.00% 0.00% Q3 2021 Q4 2
Slide 9: Alba Highlights
02 ALBA HIGHLIGHTS1 1 Alba Highlights relate to Alba official news in Q3 2022 Page 9
Slide 10: Safety in Numbers
Safety in Numbers # Total Injuries 120 Recordable # 105 Injuries # LTIs 100 80 60 59 60 49 40 34 20 4 5 7 0 2017 2018 2019 2020 2021 Q1 22 Q2 22 Q3 22 57 32 12 12 11 0 3 5 6 3 0 1 0 0 0 0 Achieved on 24 September 2022* * On 5 October 2022, Alba had an unfortunate LTI after more than 2 years Page 10
Slide 11: Major Environment, Social and Governance (ESG) Highlights
Major Environment, Social and Governance (ESG) Highlights Recipient of six major National Safety Council (NSC) USA awards for 2021: Safety Leadership Award, Significant Improvement Award, Perfect Record Award, Occupational Excellence Achievement Award, Milestone Award and Million Work Hours Award Al
Slide 12: ESG: A Journey, Not A Destination
ESG: A Journey, Not A Destination Decarbonisation Green Energy Circular Economy Employee Collaboration Transparency, Comms’ & Aluminium & Secondary Alu. Welfare & Partnership & Due Diligence Net Zero 27 Apr’22 26 Jul’22 by 2060 Refinancing linked Supported Ras to ESG Sanad Mangrove 27 Mar’22 Nursery
Slide 13: Operational Highlights – Q3 & 9 Months of 2022
Operational Highlights – Q3 & 9 Months of 2022 Production [Q3: 404,578 MT, up by 3% YoY; 9 Months: 1,192,171 MT, up by 2% YoY] Sales’ volume [Q3: 366,292 metric tonnes (MT); 9 Months: 1,108,950 MT -- flat growth in both periods] Value Added Sales [Q3: 67% versus 58% in Q3 2021; 9 Months: 67% versus
Slide 14: Financial Key Performance Indicators – Q3 & YTD 2022
Financial Key Performance Indicators – Q3 & YTD 2022 EBITDA Free Cash Flow1 YTD: US$1.002 billion up by 39% YoY YTD: US$1.280 billion YTD: US$726 million up by 24% YoY Q3: US$128 million up by 161% YoY down by 62% YoY Q3: US$234 million Q3: US$245 million down by 47% YoY up 6% YoY Profit 1Free Cash
Slide 15: AL HASSALAH Initiative: Save US$100 Million by 2022
AL HASSALAH Initiative (2-Year): Save US$100 Million by 2022 AL HASSALAH (US$ Million) Breakdown by Value Chain (US$ Million) Raw Materials’ Sourcing &Others Power 5 11 91.73 100 71 US$100M 47 37 Operations Achieved Cumulative Target 2021 2022* 2022 Sales, Marketing & Casthouse * Cumulative for 21 m
Slide 16: 9 Months 2022 Results
03 9 Months 2022 RESULTS Reference: Condensed Consolidated Interim Financial Information for the Nine Months Period Ended 30 September 2022 (reviewed) Page 16
Slide 17: Metal Sales Bridge YTD 2022 vs YTD 2021
Aluminium Industry: Uncertainty & Bearish Market Sentiment Higher Metal Sales Thanks to Higher LME Price & Premiums Metal Sales’ Bridge (US$M) – YTD 2022 vs. YTD 2021 4,200 3,700 7 245 2 3,200 637 2,700 by 90% YoY in Premiums 2,200 by 19% YoY 3,666 in LME price 1,700 2,779 1,200 700 200 Metal Sales
Slide 18: Sales by Product-Line Bridge YTD
Aluminium Industry: Uncertainty & Bearish Market Sentiment Higher VAP │ Lower Commodities’ Volume │ Higher Premiums YTD 2022 vs. YTD 2021 Premium Above LME Trend US$ Per MT Sales by Product-Line Bridge (MT’000) 1,400 4 550 1,200 60 65 450 1,000 +90% 350 800 1,110 1,109 480 600 250 400 150 253 200 50
Slide 19: Direct Cost Bridge YTD 2022 vs YTD 2021
Aluminium Industry: Uncertainty & Bearish Market Sentiment Higher Direct Cost Owing to Higher Raw Materials’ Cost and Energy Price YTD 2022 vs. YTD 2021 - Direct Cost Bridge (US$M) 2,400 267 42 2,200 21 46 50 2,000 19 382 1,800 1,600 2,212 1,400 1,699 1,200 1,000 Direct Cost RM RM Energy Other Alumi
Slide 20: EBITDA Bridge YTD 2022 vs YTD 2021
Aluminium Industry: Uncertainty & Bearish Market Sentiment Higher EBITDA due to Higher LME Price & Partially Impacted by Higher Cost & Selling Expenses │ EBITDA% at 34.9% YTD 2022 vs. YTD 2021 - EBITDA Bridge (US$M) 2,050 44 512 1,550 887 EBITDA% - 34.9% EBITDA% - 36.5% 82 1,050 1,280 550 1,031 50 E
Slide 21: Cash-Flow Bridge FY 2021 to YTD 2022
Aluminium Industry: Uncertainty & Bearish Market Sentiment Cash-Flow Bridge FY 2021 to YTD 2022 -- Good Cash Position FY 2021 to YTD 2022 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 1,500 800 1,300 383 700 1,100 600 900 108 500 1,217 49 726 327 400 700 300 500 320 200 300 278 100 248 278 100 0 Cas
Slide 22: Financial Summary Q3 2022
Aluminium Industry: Uncertainty & Bearish Market Sentiment Good Financial Performance Partially Offset by Higher Cost Financial Summary Q3 2022 Q3 2021 YTD 2022 YTD 2021 Average Cash LME (US$/MT) 2,354 2,647 2,834 2,379 Average Alumina Price (US$/MT) 413 307 436 305 Revenue (US$M) 1,072 1,034 3,666
Slide 23: Industry Perspectives in 2022
04 INDUSTRY PERSPECTIVES1 IN 2022 1 Industry Perspectives are based on CRU Market Intel Page 23
Slide 24: Aluminium Short-Term Outlook Clouded With Uncertainty
Aluminium Short-Term Outlook Clouded With Uncertainty & Weak Market Sentiment Global economy has plunged into an extended period of stagflation with high inflation, weak consumer demand and slow industrial output growth. This is likely to lead to a sustained period of metal surpluses in the market.
Slide 25: Major Raw Materials Price Trends
Major Raw Materials Price Trends (Al₂O₃, AlF3, Liquid Pitch and GPC) Alumina prices to further soften owing to LME price correction coupled with the refinery expansions around the world primarily in China and Indonesia Liquid Pitch supply to remain tight given the current conditions in Ukraine; thus
Slide 26: 2022 Alba Priorities
05 2022 ALBA PRIORITIES1 1 Based on Alba 5-Year Strategic Initiatives Page 26
Slide 27: ESG Focus & Journey Towards Safety Excellence
ESG Focus & Journey Towards Safety Excellence Deliver on newly-launched ESG roadmap in line with Bahrain’s Objectives for ‘Net Zero Emissions’ by 2060 Embed ESG in every aspect of our operations and processes as well as deliberate with various stakeholders and partners potential ESG initiatives to f
Slide 28: Appendix (Q3 2022 Results)
06 APPENDIX (Q3 2022 Results) Reference: Condensed Consolidated Interim Financial Information for the Nine Months Period Ended 30 September 2022 (reviewed) Page 28
Slide 29: Metal Sales Bridge Q3 2022 vs Q3 2021
Aluminium Industry: Uncertainty & Bearish Market Sentiment Higher Metal Sales Thanks to Higher VAP & Premiums & Partially Offset by lower LME Price Metal Sales’ Bridge (US$M) – Q3 2022 vs. Q3 2021 1,200 4 58 0 1,000 9 by 57% YoY 800 by 11% YoY in Premiums in LME price 1,072 600 1,019 400 200 Metal S
Slide 30: Sales by Product-Line Bridge Q3
Aluminium Industry: Uncertainty & Bearish Market Sentiment Higher VAP │ Lower Commodities’ Volume │ Higher Premiums Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q3 2022 vs. Q3 2021 450 650 7 400 32 39 350 450 +57% 300 366 366 467 250 250 297 200 50 Sales Value Liquid Comm
Slide 31: Direct Cost Bridge Q3 2022 vs Q3 2021
Aluminium Industry: Uncertainty & Bearish Market Sentiment Higher Direct Cost Due to Higher Raw Materials’ Cost and Energy Price Direct Cost Bridge (US$M) – Q3 2022 vs. Q3 2021 900 5 800 15 21 129 700 11 3 118 600 784 500 560 400 Direct Cost RM RM Energy Other Alumina Inventory Plant Direct Cost Q3
Slide 32: EBITDA Bridge Q3 2022 vs Q3 2021
Aluminium Industry: Uncertainty & Bearish Market Sentiment Lower EBITDA Owing to Lower LME Price, Higher Costs & Selling Expenses │ EBITDA% at 21.8% EBITDA Bridge (US$M) – Q3 2022 vs. Q3 2021 600 EBITDA% - 42.6% 53 15 450 224 300 EBITDA% - 21.8% 440 20 150 234 0 EBITDA Metal Other Direct Selling EBI
Slide 33: Cash-Flow Bridge Q2 2022 to Q3 2022
Aluminium Industry: Uncertainty & Bearish Market Sentiment Cash-Flow Bridge Q2 2022 to Q3 2022 -- Sound Cash Position Q2 2022 to Q3 2022 Cash-Flow Bridge (US$M) Free Cash Flow (US$M) 450 250 34 75 24 21 200 350 120 150 250 204 245 231 100 278 150 50 156 0 50 Q3 2021 Q3 2022 Cash CF WC CAPEX Block4 N
Slide 34: Alba Shareholder's Structure
Alba Shareholder’s Structure Alba was converted into a Bahrain Public Joint Stock Company on 23 November 2010 Alba shares are listed on two exchanges: Ordinary Shares on Bahrain Bourse and Global Depository Receipts (GDRs) on the London Stock Exchange – Alternative Investment Market Alba Ticker [BHB
Slide 35: Alba Share Price Performance [ALBH, BD]
0.000 0.200 0.400 0.600 0.800 1.000 1.200 1.400 1.600 1.800 1/1/2022 1/11/2022 0.800 1/21/2022 1/31/2022 2/10/2022 2/20/2022 3/2/2022 3/12/2022 3/22/2022 4/1/2022 4/11/2022 4/21/2022 Alba Share Price Performance [ALBH, BD] 5/1/2022 5/11/2022 5/21/2022 5/31/2022 6/10/2022 6/20/2022 6/30/2022 7/10/202
Slide 36: For more information, please contact us
For more information, please contact us on: [email protected] Alba4World Alba4World user/Alba4World Alba4World Page 36
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