#1US 7990 86862 NAY QAMCO شركة قطر لصناعة الألمنيوم Qatar Aluminium Manufacturing Company Qatar Aluminium Manufacturing Company Investor Relations Presentation 30 June 2022#2CLASSIFICATION: C1 - CONTROLLED Disclaimer The company in which Qatar Aluminium Manufacturing Company Q.P.S.C. directly owns investment is a separate entity. In this presentation, "QAMCO" and "the Company" are sometimes used for convenience in reference to Qatar Aluminium Manufacturing Company Q.P.S.C. This presentation may contains forward-looking statements concerning the financial condition, results of operations and businesses of Qatar Aluminium Manufacturing Company Q.P.S.C. All statements other than statements of historical fact are deemed to be forward-looking statements, being statements of future expectations that are based on current expectations and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, operations and business performance or events impacting the Company to differ materially from those expressed or as may be inferred from these statements. There are a number of factors that could affect the realisation of these forward-looking statements such as: (a) price fluctuations in commodity markets, (b) changes in demand or market conditions for the products, (c) loss of market share and industry competition, (d) environmental risks and natural disasters, (e) changes in legislative, fiscal and regulatory conditions, (f) changes in economic and financial market conditions and (g) political risks. As such, results could differ substantially from those stated, or as may be inferred from the forward- looking statements contained herein. All forward-looking statements contained in this presentation are made as of the date of this document. Qatar Aluminium Manufacturing Company Q.P.S.C., its Directors, officers, advisors, contractors and agents shall not be liable in any way for any costs, losses or other detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and/or other material contained herein. Qatar Aluminium Manufacturing Company Q.P.S.C. and its joint venture are further in no way obliged to update or publish revisions to any forward-looking statement or any other material contained herein which may or may not be known to have changed or to be inaccurate as a result of new information, future events or any reason whatsoever. Qatar Aluminium Manufacturing Company Q.P.S.C. does not guarantee the accuracy of the historical statements contained herein. GENERAL NOTES Qatar Aluminium Manufacturing Company's accounting year follows the calendar year. However, QAMCO's first financial year consisted of 13 months and ended on 31 December 2019. No adjustment has been made for leap years. Where applicable, all values refer to Qatar Aluminium Manufacturing Company's share. Values expressed in US $'s have been translated at the rate of US $1 = QR3.64. DEFINITIONS . . Adjusted Free Cash Flow: Cash Flow From Operations - Total CAPEX - Dividends ⚫ CAGR: 5-Year Compound Annual Growth Rate Cash Realisation Ratio: Cash Flow From Operations / Net Profit x 100 ⚫ Debt to Equity: (Current Debt + Long-Term Debt) / Equity x 100 • Dividend Yield: Total Cash Dividend / Closing Market Capitalisation × 100 ⚫ DRI: Direct Reduced Iron EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation calculated as (Net Profit + Interest Expense + Depreciation + Amortisation) • EPS: Earnings per Share (Net Profit / Number of Ordinary Shares outstanding at the year-end) • Free Cash Flow: Cash Flow From Operations - Total CAPEX • LME: London Metal Exchange MT PA: Metric Tons Per Annum • Payout Ratio: Total Cash Dividend / Net Profit x 100 • P/E: Price to Earnings (Closing market Capitalisation / Net Profit) • Utilization: Production Volume / Rated Capacity x 100 • 2 QAMCO, IR Presentation, 1H-22#3CLASSIFICATION: C1 - CONTROLLED Table of Content 1. QAMCO at a Glance 2. Ownership structure 3. Operations of joint venture 4. Competitive strengths 5. Peer review 6. Macroeconomic updates 7. QAMCO results (For the six-month period ended 30 June 2022) 8. CAPEX and Cash flows (2022F - 2026F) 9. Market statistics and dividends 10. Historical performance (2019-2021) 11. Governance structure 12. Sales and marketing 3 QAMCO, IR Presentation, 1H-22#4ASTR QAMCO at a Glance YEEB#5CLASSIFICATION: C1 - CONTROLLED QAMCO at a Glance • Qatar Aluminium Manufacturing Company Q.P.S.C (QAMCO) was incorporated on December 3, 2018 and listed on Qatar Stock Exchange on December 16, 2018. . • The Company holds 50% share of Qatar Aluminium Limited Q.S.C (Qatalum). QAMCO's shareholding structure 30.3% 7.9% 9.6% 1.2% ■QatarEnergy Overview ■Other Qatari Institutions and Funds ■Foreign Institutions and Funds ■Retail investors - Qatar 51.0% ■Retail investors - Foreign FOL: 100%* Max. single shareholder limit: 2% • QatarEnergy provides all of the head office functions for QAMCO through a comprehensive service-level agreement. The operations of Qatalum remain independently managed by its Board of Directors and senior management team. Core values Operational excellence HSE Shareholder value creation Cost optimization maximization Profit Note: Shareholder data as of 30-Jun-22 * Board of Directors approved to increase the FOL to 100%, implementation is subject to regulatory approvals. 5 QAMCO, IR Presentation, 1H-22#6CO ASTR Ownership structure YEEB#7CLASSIFICATION: C1 - CONTROLLED Ownership Structure 7 • QatarEnergy (51%) QAMCO Qatalum Joint Venture (50%) Public (49%) QAMCO holds 50% share of Qatar Aluminium Limited (Qatalum), which produces about 650,000 tons per year of high-quality aluminium for customers in Asia, Europe and North America. Its facilities include a carbon plant, port and storage facilities as well as a gas-fired power plant. QAMCO, IR Presentation, 1H-22#88 ASTR Operations of Joint Venture YEEB#9CLASSIFICATION: C1 - CONTROLLED • QAMCO's Joint Venture Qatar Aluminium (Qatalum) is located in Qatar, the company benefits from access to one of the world's largest and most competitively priced sources of energy which allows it to maintain a first quartile cost position, one of the industry's highest profit margins and strong cash flow generation. • Qatar Aluminium (Qatalum) had a design nameplate capacity of 575,000 tpy, but now produces more than 650,000 tpy of high-quality primary aluminium products, including standard ingots and Casthouse value-added products comprising extrusion ingots or billets (capacity of 375,000 tpy) and primary foundry alloys (capacity of 275,000 tpy). • Qatar Aluminium (Qatalum) has a captive Power Plant (with a capacity of approximately 1350 MW). [ANJIN 9 w.cla Bra QAMCO, IR Presentation, 1H-22#10CLASSIFICATION: C1 - CONTROLLED QAMCO's Joint Venture Sales and Marketing: . • With a Marketing and Offtake Agreement, Hydro Aluminium is responsible for the offtake and marketing of 100% of Qatar Aluminium product's. The Marketing and Offtake Agreement gives Qatar Aluminium (Qatalum) access to Hydro Aluminium's worldwide sales network on no less favourable treatment than other Hydro Aluminium smelters 86862 139898 A356.2 Sr 139898 A356 2 Sr Qatar Aluminium (Qatalum) acts as Hydro Aluminium's representative for marketing aluminium products in Qatar. 10 139898 A356 2 Sr 1334 QAMCO, IR Presentation, 1H-22#1111 ASTR Competitive strengths YEEB#12CLASSIFICATION: C1 - CONTROLLED Competitive strengths 12 Low cost smelter Proven ▸ ▸ State of the art production facility and technology deployed Assured feedstock supply and competitively priced energy High focus on Health and Safety and Environment financial position Positive share of operating profit & EBITDA margins from JV Healthy share of operating cash flow generation from JV Strong 51% held by QatarEnergy partn- ership ▸ Experienced senior management team ▸ Reputable industry leader as joint venture partner (Norsk Hydro) Effective QAMCO's JV is one of the leading cost efficient global producer of primary aluminium with a strategic location in close proximity to key markets market- ing ▸ Well diversified customer base through marketing & distribution agreement with Hydro QAMCO, IR Presentation, 1H-22#1313 YEEB ASTR Peer review#14CLASSIFICATION: C1 - CONTROLLED QAMCO's competitive positioning versus global peers Gross profit margin (%) EBITDA margin (%) 39.6% Peer 1 39.1% Peer 1 Peer 2 33.8% QAMCO 38.0% QAMCO ranks #2 QAMCO 33.3% QAMCO ranks #3 Peer 2 37.3% Peer 3 31.0% Peer 3 34.7% Peer 4 27.3% Peer 4 31.7% Note: Data as of 1Q-22 Note: Data as of 1Q-22 Net profit margin (%) Peer 1 32.3% Peer 2 26.9% QAMCO 24.5% QAMCO ranks #3 23.6% Peer3 Peer 4 23.5% Note: Data as of 1Q-22 14 Note: Peers data include all major listed companies involved in production of Aluminium and related value chain. QAMCO, IR Presentation, 1H-22#1515 ASTR Macroeconomic updates YEEB#16CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates Aluminium prices ($/MT) Alumina prices ($/MT) 4500 -Aluminium LME spot prices ($/MT) 750 -Alumina spot prices ($/MT) 4000 650 3500 3000 550 2500 450 2000 350 1500 1000 250 Jan-20 Dec-20 Dec-21 Jun-22 Jan-20 Dec-20 Dec-21 Jun-22 • • Macroeconomic environment remained uneven during the first half of 2022. Demand for primary aluminium continue to remain firm across key aluminium intensive sectors like automobiles (especially electric vehicles), construction, renewable energy and packaging. However, China's recent COVID-linked lockdowns has impacted demand for aluminium in the short-term. Supply remained in deficit, given exorbitant energy prices which challenged smelting capacitates and led to widening of inventory deficits. Also, trade disengagement from Russia amid geo-political tensions created uncertainty in the commodity markets. • On an overall basis, aluminium prices demonstrated essentially bullish trends during 1Q-22 amid persistent constructive demand and supply shortages. However, during Q2-22, LME prices softened on account of uncertainties over recessionary fears and limited demand. 16 Note: Market prices have been sourced from Bloomberg and may not reflect prices achieved by QAMCO JV QAMCO, IR Presentation, 1H-22#1717 QAMCO results (For the six-month period ended 30 June 2022) ALTR YEEB#18CLASSIFICATION: C1 - CONTROLLED 1H-22 results at a Glance Revenue EBITDA Growth vs. 1H-21 Net profit 56% 58% QR 2.11 billion QR 883 million QR 611 million 112% EBITDA Margin: 41.9% EPS: QR 0.110 ROAE: 18.7% QAMCO posted highest half-yearly net profit since incorporation, benefitting from constructive macroeconomic drivers. QAMCO JV's maximized sales of value-added products (VAP) supporting profitability margins. QAMCO's closing cash balance (including share of cash in QAMCO's JV) stood at QAR 1.3 billion. 18 Return on Av. Equity (ROAE): TTM net earnings / Av. equity QAMCO, IR Presentation, 1H-22#19CLASSIFICATION: C1 - CONTROLLED Operational Performance review Production (MT' 000) – 100% +1% 19 328 1H-21 +2% 330 164 1H-22 1Q-22 Sales volumes (MT' 000) – 100% +1% 319 322 158 1H-21 1H-22 167 2Q-22 +4% 164 1Q-22 2Q-22 Selling prices ($/MT) +54% 3,591 3,316 2,328 +17% 3,865 • 1H-21 1H-22 1Q-22 2Q-22 • • 1H-22 production volumes slightly inched higher compared to 1H-21. 2Q-22 production volumes marginally increased compared to 1Q-22, mainly due to comparatively higher no. of operating days and higher production of value-added products (VAP). 1H-22 sales volumes marginally increased as compared to 1H-21 inline with higher production. 2Q-22 sales volumes increased by 4% versus 1Q-22 inline with higher production. amid During 2022, selling prices continue to improve on account of overall strength from global aluminum prices constructive supply-demand imbalances. QAMCO, IR Presentation, 1H-22#20CLASSIFICATION: C1 - CONTROLLED Financial performance review Share of Revenue (QR million) +56% 2,106 950 1,353 1H-21 1H-22 QAMCO's Net Profit (QR million) +22% +112% +55% 1,156 611 371 240 288 1Q-22 2Q-22 1H-21 1H-22 1Q-22 2Q-22 • • 1H-22 vs 1H-21: Share of JV's revenue inclined, mainly due to positive selling price trajectories and slightly higher sales volumes. 2Q-22 vs 1Q-22: Share of JV's revenue increased, mainly due to elevated selling prices along with better sales volumes. 1H-22 vs 1H-21: Profitability improved mainly due to continued uptick in aluminium prices with better realized premiums, along with slightly higher sales volumes. This was partially offset mainly higher overall OPEX (mainly pertaining to higher raw material cost). 2Q-22 vs 1Q-22: Profitability improved on account of higher selling prices coupled with better sales volumes. This was partially offset by higher COGS and higher impairment of non-current assets. 20 20 Share of JV's Debt (QR million) 2,299 (IAS 31) 0% 2,293 31-Dec-21 30-Jun-22 Share of debt as of 30 June 2022 marginally declined versus 31 Dec 2021, mainly due to net movement relating to AGP loan facility. QAMCO, IR Presentation, 1H-22#21CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 288 738 15 1H-21 Price Variance Volume Variance +112% 1H-22 vs. 1H-21 (Amounts in QR' million) LO 5 611 -379 -53 -4 COGS S,G&A Finance costs Others 1H-22 QAMCO reported a net profit of QR 611 million, an increase in profitability by 112% compared to 1H-21. QAMCO's 1H-22 results were impacted by Joint Venture's performance mainly due to: ▸ Favorable movements a) Higher average realized prices (+56%), along with better premiums; b) Slightly higher sales volumes (+1%); c) Others: savings from head-office expenses and higher finance income from fixed deposits. Unfavorable movements a) Higher cost of goods sold, mainly on account higher raw material costs; b) Higher shipping & insurance cost; c) Higher finance cost due to increased floating lending rates, linked to overall hike in global interest rates. 21 24 QAMCO, IR Presentation, 1H-22#22CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis +55% 2Q-22 vs. 1Q-22 (Amounts in QR' million) 42 164 371 -49 -3 -5 -17 240 1Q-22 Price Variance Volume Variance COGS S,G&A Finance costs Others 2Q-22 QAMCO reported a net profit of QR 371 million, an increase in net profits by 55% compared to 1Q-22. QAMCO's 2Q-22 results were impacted by Joint Venture's performance mainly due to: ▸ Favorable movements a) Higher average realized prices (+17%), along with better premiums; b) Higher sales volumes (+4%); Unfavorable movements a) Higher cost of goods sold, mainly on account higher raw material costs; b) Others: Higher impairments partially offset with savings from head-office expenses. 22 22 QAMCO, IR Presentation, 1H-22#23CLASSIFICATION: C1 - CONTROLLED Analysis of Selling Prices Selling prices ($/MT) – 1H-22 vs 1H-21 +54% 3,591 567 2,328 264 3,024 2,064 1H-21 1H-22 LME Price difference +47% o Average selling prices improved due to persistent strength from constructive macroeconomic environment leading to better demand for aluminium products globally, coupled with supply side constraints. OLME OLME Premium Selling prices ($/MT) - Q2-21 vs Q1-21 3,316 543 +17% 3,865 591 LME Price difference +18% 。 LME premiums improved mainly due to favorable product mix and better global demand for premium products. aluminium 3,274 2,773 1Q-22 2Q-22 OLME OLME Premium 23 23 LME Aluminium price source: Bloomberg, CRU QAMCO, IR Presentation, 1H-22#24CLASSIFICATION: C1 - CONTROLLED Analysis of EBITDA margins 4,300 3.800 3,300 2.800 Primary Aluminium Price (USD/ton) QAMCO's JV EBITDA margins continue to remain robust & resilient 2,300 29.7% 28.3% 27.2% 1,800 26.1% 46.5% 46.0% 41.0% 41.4% 36.8% 48% 45.1% 43% 38.0% 38% 1,300 4Q-19 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-22 2Q-22 Primary Aluminium Price (USD/ton) QAMCO's JV EBITDA Margins (%) 24 24 Primary Aluminium price source: Bloomberg QAMCO, IR Presentation, 1H-22 QAMCO's JV EBITDA Margins (%) 33% 28% 23%#25CLASSIFICATION: C1 - CONTROLLED Geographic analysis - QAMCO JV revenue Asia remained QAMCO JV's largest market, while its presence in US and Europe continued to be substantial North America 22% Europe 24% Qatar 4% Asia 50% 25 QAMCO, IR Presentation, 1H-22#26CLASSIFICATION: C1 - CONTROLLED QAMCO JV revenue - product mix (%) Extrusion ingots along with foundry alloys (together referred to as value added or premium products) remains key products for QAMCO's JV. 26 26 1H-22 QAMCO JV Sales Volumes - Product mix (%) 2% 1H-21 QAMCO JV Sales Volumes - Product mix (%) 44% 47% 54% 53% ■Extrusion Ingots ■Foundry Alloys ■Standard Ingots QAMCO, IR Presentation, 1H-22#2727 27 ASTR Market Statistics and dividend distribution YEEB#2828 • 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 Jan-19 Feb-19 Mar-19 Apr-19 CLASSIFICATION: C1 - CONTROLLED Market Statistics and Dividends Market Cap (QR Billion) May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Dividend - 2019 Dividend distribution since incorporation Dividend - 2020 Dividend - 2021 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 QR 167.4 m QR 0.03 per share QR 195.3 m QR 0.035 per share QR 446.4 m QR 0.08 per share QR 809.1 m QR 0.145 per share The total dividends paid from the date of incorporation amounted to QR 809.1 million representing a payout of 14.5% of the nominal value of the shares. QAMCO, IR Presentation, 1H-22 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Total QAR 9.5 bn#2929 29 ASTR CAPEX and Cash Flows (2022-2026) YEEB#3030 30 CLASSIFICATION: C1 - CONTROLLED CAPEX and Cash Flows (2022-2026) - (QAMCO's Share) CAPEX: 。 Planned CAPEX (2022-26) include routine operations such as pot relining and other maintenance pertaining to power plant and anode plant. Cash Flows: o Impressive cash flows from JV's operations, provided sales prices are realized in line with the budgeted plans. o Financing cash outflows only pertains to interest costs, except for 2025, which includes loan repayment on a proportionate basis. Cash Flows (QAR' m) 2022 2023 2024 2025 2026 Net operating cash flows 1,270 1,158 1,086 993 988 Net investing cash flows (237) (300) (138) (123) (146) Net financing cash flows Net cash flows (38) 10 (60) (607) (46) 995 869 887 263 795 Note: The cash flow figures for the years 2022-26 are based on the 2022 approved budget and business plan, based on the expectations of the market conditions and aluminium prices prevailing at the time preparing the business plan. With the current market conditions and aluminium price trends, the cash flow forecasts for 2022- 2026 as disclosed in the above table cannot be relied on with absolute certainty, where, the actual realization of these cash flows might significantly differ as compared to these projections, subject to the macroeconomic conditions, including, among other factors, business environment, market dynamics, product prices etc. prevailing in that specific year. QAMCO, IR Presentation, 1H-22#3131 ASTR Historical performance (2019-2021) YEEB#32CLASSIFICATION: C1 - CONTROLLED Key Performance Indicators Production (MT'000) – 100% Sales Volumes (MT'000) – 100% Selling Prices ($/MT) +1% +0% +26% 653 655 662 2,638 648 651 649 2,098 1,854 2019 2020 2021 2019 2020 2021 2019 2020 2021 • 2021 Production remained highest in comparison to 2019 & 2020. . 2021 Selling prices remained highest, amid macroeconomic tailwinds. Share of Revenue (QR million) QAMCO's Net Profit (QR million) Share of JV's Debt (QR million) +26% 32 32 • 3,118 2,476 2,197 2019 2020 2021 -5% +769% 835 2,415 2,221 2,299 96 95 2019 2020 2021 2019 2020 2021 (IAS 31) Revenue growth continue to remain linked to selling price trends. 2021 Net profits were the highest reported earnings for QAMCO since incorporation, mainly linked to the benefits captured from elevated price levels. Note: For purpose of comparability, 2019 financial data reported here relates to the period from 01 January 2019 till 31 December 2019. Whereas, in actual, the published financial statements for the year ended 31 December 2019 included financial data for the period from the date of QAMCO's incorporation (i.e. 3 December 2018) till 31 December 2019. QAMCO, IR Presentation, 1H-22#3333 Governance Structure ASTR#34CLASSIFICATION: C1 - CONTROLLED Governance Structure Board structure QAMCO Board of Directors consists of six (6) Directors, all were appointed by the Special Shareholder "QatarEnergy". QatarEnergy appoints qualified and eligible Board Directors who are sufficiently experienced to perform their duties in the best interest of the Company and dedicated to achieving its goals and objectives. Governance and compliance QAMCO is firmly committed to implementing the principles of good governance set out in the Governance Code for Companies Listed on the Main Market issued by Qatar Financial Markets Authority (QFMA), that are consistent with the provisions of the Company's AoA. The Board of Directors ensures that an organizational framework, that is consistent with the legal and institutional framework of the listed companies, is in place at the Company level. This is achieved through a process of reviewing and updating governance implementation whenever required. Board committees The Board of Directors established Board Committees and Special Committees to carry out specific tasks. The Board remains liable for all the powers and authorities so delegated. Currently, Board Committees are Audit Committee and Remuneration Committee. Authorities No one person in the Company has unfettered powers of decision. Decision-making process is always done in accordance with the Company's Manual of Authorities and the relevant regulations. 34 4 QAMCO, IR Presentation, 1H-22#35CLASSIFICATION: C1 - CONTROLLED Governance Structure 35 Remuneration Board of Directors and The Company has developed a periodically revisited remuneration policy for Board members. The policy has fixed component for Board membership and attending meetings performance-related variable component. The proposed remuneration of Board members shall be presented to the General Assembly for approval. Executive Management All financial, administrative and head office services are provided by resources from QatarEnergy under a service-level agreement Disclosure and transparency The Board ensures that all disclosures are made in accordance with the requirements set by regulatory authorities, and that accurate, complete and non-misleading information is provided to all shareholders in an equitable manner. Shareholders' rights The Company's Articles of Associations provide for the rights of shareholders, particularly the rights to receive dividends, attend the General Assembly and participate in its deliberations and vote on decisions, tag along rights as well as the right to access information and request it with no harm to the Company's interests. Company's control system The Company adopted an internal control system that consists of policies and operating procedures for risk management, internal and external audit, monitoring Company's compliance with the relevant regulations. Clear lines of self-control, responsibility and accountability throughout the Company are therefore set. The internal control framework is overseen by the Executive Management, the Audit Committee and the Board of Directors. QAMCO, IR Presentation, 1H-22#36THANK YOU QAMCO شركة قطر لصناعة الألمنيوم Qatar Aluminium Manufacturing Company For further information, Qatar Aluminium Manufacturing Company can be contacted as follows: Telephone: (+974) 4013 2277 Fax: (+974) 4013 9750 E-mail: [email protected] or [email protected] 8685 Address: P. O. Box 3212, Doha, State of Qatar. Please refer to www.qamco.com.qa for the latest information, publications, press releases and presentations about Qatar Aluminium Manufacturing Company.