Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — FY2021 Earnings Presentation
39 slides from Aluminium Bahrain B.S.C's earnings presentation, 2022
Slide 1: Investor Relations Presentation 2021
INVESTOR RELATIONS PRESENTATION 2021
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 2021 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: Strong Market Demand Supported by V-Shape Economic Recovery
Strong Market Demand Supported by V-Shape Economic Recovery 2021: a golden year for Aluminium being the best performing metal out of major LME base metals Robust rebound in Global Demand supported by strong market recovery and economic activity in key markets (+8% YoY) Double-digit increase in World
Slide 6: Strong Aluminium Fundamentals Support Supply Growth by 4% YoY
Strong Aluminium Fundamentals Support Supply Growth by 4% YoY European smelting industry hit hard by escalating gas and power prices. 7 Aluminium producers have curtailed their supply since Oct’21 -> meek growth of 1% YoY China: a net importer of Aluminium [supply up by 5% YoY] --> which helped to r
Slide 7: LME Price & Premiums
LME Price & Premiums Aluminium prices break higher on supply constraints due to European power market. LME-Cash averaged US$2,475/t - up by 45% YoY [lowest: US$1,952/t on 19 Jan’21 and highest: US$3,180/t on 18 Oct’21] LME inventories remain low at ~0.9 million MT by end-2021 (versus ~1.3 million MT
Slide 8: Alumina Price: 14% of LME Price
Alumina Price: 14% of LME Price [US$383/t] LME Price Trend (US$/t) 2,900 2,764 2,647 2,500 2,399 2,092 2,100 1,918 1,700 1,300 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Alumina Price Index Trend (% of LME) 18% 16% 15% 14% 14% 14% 12% 12% 12% 10% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Page 8
Slide 9: Alba Highlights
02 ALBA HIGHLIGHTS1 1 Alba Highlights relate to Alba official news Page 9
Slide 10: Major Environment, Social and Governance (ESG) Highlights
Major Environment, Social and Governance (ESG) Highlights Collaborated with a top-class consultant to develop a fully-fledged ESG roadmap in line with Bahrain’s Objectives towards ‘Net Zero Emissions’ by 2060 Alba CEO received People First Leader Award in Oct’21 during the GCC GOV HR Awarding Ceremo
Slide 11: Safety in Numbers
Safety in Numbers # Total Injuries 110 105 # Recordable Injuries 100 # LTIs 90 80 70 60 59 60 49 50 40 34 30 2017 2018 2019 2020 2021 57 32 12 12 11 6 3 0 1 0 *Alba achieved 20 Million safe working hours without LTI on 25 December 2021 Page 11
Slide 12: ESG Roadmap for Alba's Race to Net Zero
ESG Roadmap for Alba’s Race to Net Zero › Energy Management System (EMS) & Power Station Efficiency › Afforestation & Reforestation Decarbonisation › Inert Anode Technology › Hydrogen › Carbon Capture & Storage (CC&S) & Carbon Offsets › On-site Solar Green Energy & Aluminium › Government Collaborati
Slide 13: Operational Highlights
Operational Highlights Closed 2021 with an all-time Production record of 1,561,222 metric tonnes (MT) and higher Sales’ volume of 1,550,857 MT despite logistics’ challenges Value Added Sales averaged 63% of the total shipments vs. 44% in 2020 [VAP in MT: 977,582 up by 44% YoY] Made in Bahrain & Bran
Slide 14: Sales' Breakdown
Sales’ Breakdown By Geographic Footprint By Product-Line Americas Standard/ Europe T-Ingots 14% 19% 20% MENA Billets 40% VAP 20% Liquid 17% 63% Bahrain 25% 8% 21% 16% Asia Slabs Foundries Page 14
Slide 15: Financial Key Performance Indicators – Q4 & FY 2021
Financial Key Performance Indicators – Q4 & FY 2021 EBITDA - driven by higher Free Cash Flow1 - impacted LME price & premiums by working capital changes FY: US$1,202 million up by 4,532% YoY Q4: US$482 million up by 466% YoY FY: US$1,636 million FY: US$581 million up by 260% YoY down by 303% YoY Q4:
Slide 16: 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 US$45.35/MT 11 One-off (Inventory) 10.00 100.00 US$100M 47 70.80 Operations Recurring 60.00 37 Sales, Marketing & Casthouse Target 202
Slide 17: Alba Share Price Performance
Alba Share Price Performance [Alba, Fils] 0.85 0.800 0.75 57% YoY 0.65 0.55 0.510 0.45 0.35 0.25 Page 17
Slide 18: Alba Operational Productivity
Alba Operational Productivity Head Count Value Added Sales (MT’000) as a % of Total Sales 63% 7,000 1,000 850 44% 5,500 4,141 4,031 700 4,000 550 978 901 1,006 400 677 2,500 3,130 3,135 250 1,000 100 2020 2021 2020 2021 Internal External Total Head Count Internal External Total Head Count (Hire of L
Slide 19: Net Debt to EBITDA Ratio
Net Debt to EBITDA Ratio (x) 3,000 8.03 5.98 118 1.36 216 2,500 6.1 248 276 2,000 1,500 2.42 2,606 2,450 206 2,218 1,000 2,012 1,059 500 0 2017 2018 2019 2020 2021 Net Debt Cash Net Debt to EBITDA Page 19
Slide 20: 2021 Results
03 2021 RESULTS Refer to Alba’s 2021 Financial Statements Page 20
Slide 21: Strong Market Sentiment Fuels Rebound in LME Price: Metal Sales Bridge
Strong Market Sentiment Fuels Rebound in LME Price Metal Sales Bridge Analysis: 2021 vs. 2020 Higher Metal Sales Thanks to Higher LME Prices & Premiums Metal Sales Bridge (US$M) – 2021 vs. 2020 4,500 18 39 188 3,500 1,114 by 0.6% YoY in 2,500 volume 4,169 of 45% 2,810 in LME price 1,500 500 Metal Sa
Slide 22: Sales by Product-Line Bridge and Premiums
Strong Market Sentiment Fuels Rebound in LME Price Higher VAP │ Lower Commodities’ Volume │ Higher Premiums 2021 vs. 2020 Premium Above LME Trend US$/MT Sales by Product-Line Bridge (MT’000) 2000 10 300 300 300 250 1500 +97% 200 296 1000 1,541 1,551 150 150 500 100 Sales Value Liquid Commodity Sales
Slide 23: Cost Analysis 2021 vs. 2020
Strong Market Sentiment Fuels Rebound in LME Price Cost Analysis 2021 vs. 2020 Higher Direct Cost Owing to Higher Alumina, CPC Prices & Production Direct Cost Bridge (US$M) – 2021 vs. 2020 3,000 11 40 36 2,500 203 89 15 17 2,000 1,500 2,451 2,282 1,000 500 Direct Cost RM RM Energy Other Alumina Inve
Slide 24: EBITDA Bridge Gap Analysis – 2021 vs. 2020
Strong Market Sentiment Fuels Rebound in LME Price EBITDA Bridge Gap Analysis – 2021 vs. 2020 Strong EBITDA Margin at 38.8% YTD 2021 vs. YTD 2020 - EBITDA Bridge (US$M) 2000 33 EBITDA 38.8% 168 1700 43 1400 1100 1,359 1,636 800 EBITDA 16.1% 500 455 200 EBITDA 2020 Metal Other Direct Selling EBITDA 2
Slide 25: Cash Flow Bridge – 2020 to 2021
Strong Market Sentiment Fuels Rebound in LME Price Cash Flow Bridge – 2020 to 2021: Sound Cash Position 2020 to 2021 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 1750 1500 600 1250 828 500 1000 400 1,595 750 186 300 581 33 500 318 200 250 100 100 248 144 118 0 0 Cash CF WC CAPEX Line 6 Loan Payment
Slide 26: Financial Summary Q4 and FY 2021
Strong Market Sentiment Fuels Rebound in LME Price Record Breaking Operational & Financial Performance Supported by Higher LME Prices Financial Summary Q4 2021 Q4 2020 FY2021 FY2020 Average Cash LME (US$/MT) 2,764 1,918 2,475 1,702 Average Alumina Price (US$/MT) 383 276 325 280 Revenues1 (US$M) 1,39
Slide 27: Industry Perspectives in 2022
04 INDUSTRY PERSPECTIVES1 IN 2022 1 Industry Perspectives are based on CRU Market Intel Page 27
Slide 28: Aluminium Market to Remain Bullish on Firm Demand & Tight Supply
Aluminium Market to Remain Bullish on Firm Demand & Tight Supply High energy prices in Europe and China as well as rising geopolitical tensions between Russia and Ukraine would ignite supply crunch, hit supply chain and lift Aluminium prices and premia to record highs Demand in North America will sh
Slide 29: Industry Perspectives in 2022: Raw Materials Price Trends
Industry Perspectives in 2022 Raw Materials Price Trends (Al₂O₃, AlF3 and GPC) Alumina spot prices are set to peak until Q2-end 2022 then will ease down with the drop in Aluminium prices by H2 2022 Aluminium Fluoride to remain at higher levels until Q1 2022 amidst power disruptions in China Carbon m
Slide 30: 2022 Alba Priorities
05 2022 ALBA PRIORITIES Page 30
Slide 31: 2022 Alba Priorities
2022 Alba Priorities ESG Focus & Journey Towards Safety Excellence Deliver on newly-launched ESG roadmap in line with Bahrain’s objectives for ‘Net Zero Emissions’ by 2060 Evolve Towards Safety Excellence & Keep Alba’s Human Capital Safe Amidst COVID-19 Meet 2022 Production Target of 1,560,000 metri
Slide 32: Appendix – Q4 2021
06 APPENDIX – Q4 2021 Page 32
Slide 33: Metal Sales Bridge Analysis: Q4 2021 vs. Q4 2020
Strong Market Sentiment Fuels Rebound in LME Price Metal Sales Bridge Analysis: Q4 2021 vs. Q4 2020 Higher Metal Sales Thanks to Higher LME and Higher Sales’ Volume Metal Sales Bridge (US$M) – Q4 2021 vs. Q4 2020 1,500 124 1,200 7 98 420 by 17% 900 in volume 1,390 600 741 of 44% in LME price 300 Met
Slide 34: Sales by Product-Line Bridge – Q4
Strong Market Sentiment Fuels Rebound in LME Price Higher VAP │ Lower Commodities’ Volume │ Higher Premiums Sales by Product-Line Bridge (MT’000) Premium Above LME Trend US$ Per MT Q4 2021 vs. Q4 2020 500 6 450 34 91 350 400 +145% 250 441 402 300 378 150 164 200 50 Sales Value Liquid Commodity Sales
Slide 35: Direct Cost Bridge – Q4 2021 vs. Q4 2020
Strong Market Sentiment Fuels Rebound in LME Price Higher Direct Cost Owing to Higher Alumina, CPC Prices & Higher Production and Other Operating Costs Direct Cost Bridge (US$M) – Q4 2021 vs. Q4 2020 800 2 700 130 10 1 2 30 600 104 752 500 537 400 Direct Cost RM RM Energy Other Alumina Inventory Pla
Slide 36: EBITDA Bridge Gap Analysis – Q4 2021 vs. Q4 2020
Strong Market Sentiment Fuels Rebound in LME Price EBITDA Bridge Gap Analysis – Q4 2021 vs. Q4 2020 Breaking Record EBITDA Margin at 43.5% EBITDA Bridge (US$M) – Q4 2021 vs. Q4 2020 1000 2 800 215 EBITDA 43.5% 600 17 648 400 EBITDA 25.2% 605 200 187 0 EBITDA Metal Other Direct Selling EBITDA Q4 2020
Slide 37: Cash Flow Bridge – Q3 2021 to Q4 2021
Strong Market Sentiment Fuels Rebound in LME Price Cash Flow Bridge – Q3 2021 to Q4 2021 Q3 2021 to Q4 2021 Cash Flow Bridge (US$M) Free Cash Flow (US$M) 850 310 217 700 260 68 4 550 589 210 224 160 304 400 110 100 250 60 272 248 10 100 Cash CF WC CAPEX Line 6 Loan Payment Cash -44 Balance from Chan
Slide 38: 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 39: For more information, please contact us
For more information, please contact us on: [email protected] Alba4World Alba4World user/Alba4World Alba4World Page 39
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