Aluminium Bahrain B.S.C · BAHRAIN:ALBH
Aluminium Bahrain B.S.C — Q1 2011 Earnings Presentation
21 slides from Aluminium Bahrain B.S.C's earnings presentation, 2011
Slide 1: Aluminium for the world: Q1 2011 IR Presentation
Aluminium for the world Q1 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- 1Q2011 Results 4- Industry Perspectives in 2011 5- 2011 Alba Priorities albasmelter.com "
Slide 4: Industry Highlights
‘~ INDUSTRY HIGHLIGHTS
Slide 5: Industry Highlights: Demand driven by global economic rebound
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2011 Demand driven by global economic rebound Global GDP growth at 3.3% in 2011; Industrial Production bullish in emerging markets with 6% YoY growth MENA - Healthy demand activity despite political concerns mainly driven by 2 key players (Saudi Arabia
Slide 6: Industry Highlights: Production Evolution, LME & Premiums
Aluminium for the world INDUSTRY HIGHLIGHTS Q1 2011 Production Evolution China - Capacity restarts & expansion hindered by government regulations & energy constraints Rest of the world - High prices have led additional restarts of capacity LME & Premiums Inventories stable at 4.5 million metric tonn
Slide 7: Alba Highlights
‘~ ALBA HIGHLIGHTS
Slide 8: Alba Highlights: Q1 2011 Operational Achievements
Aluminium for the world Alba Highlights Q1 2011 - Operational Achievements Recent Events in Middle East Alba was able to maintain running at full capacity and to increase sales by 8.2% in the first quarter Operating costs have been impacted by one time $3 million in Q1 STAR Operational Improvement P
Slide 9: Alba Highlights: Q1 2011 Financial Achievements
Aluminium for the world Alba Highlights Q1 2011 - Financial Achievements Adjusted EBITDA US$175 million - 28% YoY growth Net Income US$88 million - 26% YoY growth Free-Cash Flow US$ 87 million - 89% YoY growth Dividends Shareholders & relevant regulatory authorities approved 2010 dividend of $200 mi
Slide 10: Q1 2011 Results
Yo Q1 2011 RESULTS
Slide 11: Sales Analysis 1Q11 vs. 1Q10
Aluminium for the world Q1 2011 Results A STRONG RECOVERY Sales Analysis 1Q11 vs. 1Q10 (000’s MT) Dramatic shift in LME and higher overall Sales Volume 1Q11 vs. 1Q10 - Metal Sales Bridge (US$M) 600 37 * 1 7 67 400 563 451 200 Sales 1Q10 LME Product Mix Pricing Power Volume Sales 1Q11 albasmelter.com
Slide 12: Continued Shift to Optimum Product Mix
Aluminium for the world Q1 2011 Results A STRONG RECOVERY Continued Shift to Optimum Product Mix Maximize Value Added Sales and Leverage Pricing Power 1Q11 vs. 1Q10 - Sales by Product line Bridge Premium Above LME Trend USD (Per MT) (000’s MT) 250 6 7 16 200 175 217 150 201 163 128 100 100 Sales 1Q1
Slide 13: Cost Analysis 1Q11 vs. 1Q10
Aluminium for the world Q1 2011 Results A STRONG RECOVERY Cost Analysis 1Q11 vs. 1Q10: Continuous Improvement Program on track 1Q11 vs. 1Q10 - Direct Costs Bridge (US$M) 400 3 2 9 6 11 8 55 300 55 57 356 301 200 Direct Cost 1Q10 RM Price RM Consumption Energy Price Energy Consumption Inventory Ch. C
Slide 14: STAR Saving 1Q11 vs. Target
Aluminium for the world Q1 2011 Results A STRONG RECOVERY STAR Saving -1Q11 vs. Target 2011: 1Q11 vs. 1Q10 - STAR Saving (US$M) 75 50 70.0 25 52.5 7.5 35.0 17.5 0 Q1 Q2 Target Q3 Target Year End Target Target Above Target Year-End Target albasmelter.com '(
Slide 15: Adjusted EBITDA Bridge Gap Analysis
Aluminium for the world Q1 2011 Results A STRONG RECOVERY Adjusted EBITDA Bridge Gap Analysis 1Q11 vs. 1Q10: Adjusted EBITDA Margin at a healthy 30% rate 1Q11 vs. 1Q10 - EBITDA Bridge (US$M Adjusted) 350 275 10 56 200 111 19 EBITDA 30.2% 9 EBITDA 30.1% 125 175 137 50 EBITDA 1Q10 Metal Sales Other Sa
Slide 16: Cash Flow Bridge 1Q11 vs. 1Q10
Aluminium for the world Q1 2011 Results A STRONG RECOVERY Cash Flow Bridge 1Q11 vs. 1Q10: Healthy cash generation to cover debt, make investments and maximize shareholder value creation 1Q10 to 1Q11 Cash Flow Bridge (USD M) Free Cash Flow (USD M) 300 0 7 70 187 100 30 150 247 50 87 154 226 46 0YE Ba
Slide 17: Financial Summary Q1 2011 vs Q1 2010
Aluminium for the world Q1 2011 Results A STRONG RECOVERY 1Q11 vs. 1Q10: Healthy Performance Partially Offset by Increased Input Costs Financial Summary Q1 2011 Q1 2010 Sales 578 455 Adjusted EBITDA 175 137 Adjusted EBITDA % 30.2% 30.1% Net Income 88 70 Net Income % 15% 15% Published LME Cash AVG (U
Slide 18: Industry Perspectives in 2011
INDUSTRY PERSPECTIVES IN 2011
Slide 19: Industry Perspectives in 2011
Aluminium for the world Industry Perspectives in 2011 Another Year of Consumption’s recovery Global recovery to continue despite Japan earthquake & MENA unrest Asia - Potential mid-term construction opportunities to arise post Japan earthquake Worldwide supply-demand balance will continue to tighten
Slide 20: 2011 Alba Priorities
‘~ 2011 ALBA PRIORITIES
Slide 21: 2011 Alba Priorities
Aluminium for the world 2011 Alba Priorities Continuous Improvement & Preparation for Future Growth European Sales office to be established in Q2 2011 2011 STAR Program: Additional action plans to be launched in Q2 2011 Preparation for the launch of Six Sigma in Q3 2011 Future Growth Complete feasib
Aluminium Bahrain B.S.C. (Alba) — Q1 2011 Earnings Presentation on 6ix