Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q3 2011 Earnings Presentation
29 slides from Aluminium Bahrain B.S.C's earnings presentation, 2011
Slide 1: Aluminium for the world: Q3 2011 IR Presentation
Aluminium for the world Q3 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- Q3 2011 Results 4- Industry Perspectives in 2011 5- 2011 Alba Priorities albasmelter.com "
Slide 4: Industry Highlights
‘~ INDUSTRY HIGHLIGHTS
Slide 5: Industry Highlights Q3 2011
Aluminium for the world INDUSTRY HIGHLIGHTS Q3 2011 Aluminium demand still very healthy YTD world consumption grew by 10% vs. 2010 and no real slowdown was seen in Q3 (3Q11 vs. 3Q10 +9.7%) Aluminium - more resistant than other base metals to recent turmoil (Copper dropped 22% in September vs. 8% for
Slide 6: Industry Highlights: Production Evolution, LME & Premiums
Aluminium for the world INDUSTRY HIGHLIGHTS Q3 2011 Production Evolution YTD China output at record level (14 million metric tonnes, +8% YoY) but less than consumption (+13% YoY) and the threat of power shortage remains real World market balanced at the end of Q3 (-26 Kt with China & -5 Kt without)
Slide 7: Alba Highlights
‘~ ALBA HIGHLIGHTS
Slide 8: Alba Highlights: Q3 2011 Operational Highlights
Aluminium for the world Alba Highlights Q3 2011 - Operational Highlights/Achievements Gas Price Announcement of 50% increase in the gas price effective Jan. 1st 2012 impacting annual EBITDA by $85 million STAR Operational Improvement Program Additional recurrent savings of $59 million recorded YTD a
Slide 9: Alba Highlights: Safety Program and Future Growth
Aluminium for the world Alba Highlights Q3 2011 - Operational Highlights/Achievements AlbaSafeWay Program Safety Excellence Program launched in Sept. with the support of DuPont Sustainable Solutions over a span of 2 years Future Growth Ongoing feasibility studies in-progress to determine optimum ene
Slide 10: Alba Highlights: Q3 & YTD 2011 Financial KPIs
Aluminium for the world Alba Highlights Q3 & YTD 2011 - Financial Key Performance Indicators Adjusted EBITDA up by LME & continuous improvement Q3: US$159 million up by 45% YoY YTD: US$509 million up by 29% YoY Net Income benefited from unrealized derivative gains in addition to strong overall perfo
Slide 11: Q3 2011 Results
Yo Q3 2011 RESULTS
Slide 12: Sales Analysis 3Q11 vs. 3Q10
Aluminium for the world Q3 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Sales Analysis 3Q11 vs. 3Q10 (000’s MT) Solid increase in LME and higher overall Sales Volume 3Q11 vs. 3Q10 - Metal Sales Bridge (US$M) 600 37 * 1 2 500 100 581 441 400 Sales 3Q10 LME Product Mix Pricing Power Volu
Slide 13: Continuous Shift to Optimum Product Mix
Aluminium for the world Q3 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Continuous Shift to Optimum Product Mix Maximize Value Added Sales and Leverage Pricing Power 3Q11 vs. 3Q10 - Sales by Product line Bridge Premium Above LME Trend USD (Per MT) (000’s MT) 260 180 5 8 220 21 150 221
Slide 14: Cost Analysis 3Q11 vs. 3Q10
Aluminium for the world Q3 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Cost Analysis 3Q11 vs. 3Q10: Exceptional One-Time Costs due to Recent Events 3Q11 vs. 3Q10 - Direct Costs Bridge (US$M) 400 8 2 5 6 3 3 350 55 392 47 318 300 Direct Cost 3Q10 RM Price RM Consumption Energy Price En
Slide 15: STAR Saving: 3Q vs. Target 2011
Aluminium for the world Q3 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT STAR Saving - 3Q vs. Target 2011: YTD vs. Target 2011 - STAR Cumulative Savings (US$M) 75 6.5 50 9.0 70.0 25 52.5 7.5 35.0 17.5 0 Q1 Q2 Q3 Target Year-End Target Target Above Target Year-End Target albasmelter.com
Slide 16: Adjusted EBITDA Bridge Gap Analysis 3Q11 vs. 3Q10
Aluminium for the world Q3 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Adjusted EBITDA Bridge Gap Analysis 3Q11 vs. 3Q10: Adjusted EBITDA Margin at a 27.3% rate 3Q11 vs. 2Q10 - EBITDA Bridge (US$M Adjusted) 250 8 73 200 141 13 EBITDA 27.3% 150 0 EBITDA 24.6% 100 159 110 50 EBITDA 3Q10
Slide 17: Cash Flow Bridge 3Q11 vs. 3Q10
Aluminium for the world Q3 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Cash Flow Bridge 3Q11 vs. 3Q10: Achieving a healthy Cash Flow trend 2Q11 to 3Q11 Cash Flow Bridge (USD M) Free Cash Flow (USD M) 500 160 2 7 325 102 160 120 155 62 127 210 201 150 Balance 80 2Q11 CF from Operations
Slide 18: Financial Summary: 3Q11 vs. 3Q10
Aluminium for the world Q3 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT 3Q11 vs. 3Q10 Sound Performance with an upward trend in Sales Financial Summary Q3 2011 Q3 2010 YTD 2011 YTD 2010 Sales 582 447 1,805 1,438 Adjusted EBITDA 159 110 509 395 Adjusted EBITDA % 27.3% 24.6% 28.2% 27.5%
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 but buying patterns might change Key factors to be observed: No collapse of premiums expected unless there is further deterioration of financial markets triggering inventory sell-off to release cash Chinese supply growth
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 AlbaSafeWay Program Implementation underway supported by DuPont Sustainable Solutions 2011 STAR Program: Deliver on our action plans to achieve additional savings of $70 million in 2011 Six Sigma Prog
Slide 23: Appendix
APPENDIX
Slide 24: Sales Analysis YTD11 vs. YTD10
Aluminium for the world YTD 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Sales Analysis YTD11 vs. YTD10 (000’s MT) Solid increase in LME and higher overall Sales Volume YTD11 vs. YTD10 - Metal Sales Bridge (US$M) 1,800 15 79 * 4 1,650 272 1,500 1,781 1,350 1,411 1,200 Sales YTD 10 LME
Slide 25: Continued Shift to Optimum Product Mix
Aluminium for the world YTD 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Continued Shift to Optimum Product Mix Maximize Value Added Sales and Leverage Pricing Power YTD 11 vs. YTD 10 - Sales by Product line Bridge Premium Above LME Trend USD (Per MT) (000’s MT) 700 11 29 180 53 650 14
Slide 26: Cost Analysis YTD vs. YTD 10
Aluminium for the world YTD 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Cost Analysis YTD 11 vs. YTD 10: One-Time Social Costs & Exceptional Expenses due to Recent Events YTD 11 vs. YTD 10 - Direct Costs Bridge (US$M) 1,200 8 6 16 33 21 7 1,050 150 55 1,162 967 900 Direct Costs RM Pri
Slide 27: Adjusted EBITDA Bridge Gap Analysis YTD
Aluminium for the world YTD 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Adjusted EBITDA Bridge Gap Analysis YTD 11 vs. YTD 10: Adjusted EBITDA Margin at a 28.2% rate YTD 11 vs. YTD 10 - EBITDA Bridge (US$M 800 5 195 625 370 EBITDA 28.2% 39 17 450 EBITDA 27.5% 509 275 395 100 EBITDA YT
Slide 28: Cash Flow Bridge YTD vs. YTD 10
Aluminium for the world YTD 2011 Results MARKET CONSOLIDATION & CONTINUOUS IMPROVEMENT Cash Flow Bridge YTD 11 vs. YTD 10: Healthy Cash generation to maximize Shareholder Value Creation YTD 11 Cash Flow Bridge (USD M) Free Cash Flow (USD M) 800 500 35 40 267 400 530 400 141 455 386 154 201 0 Balance
Slide 29: Slide 29
Aluminium Bahrain B.S.C. (Alba) — Q3 2011 Earnings Presentation on 6ix