#1aba Aluminium for the world INVESTOR RELATIONS PRESENTATION Q3 2021#2DISCLAIMER aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba 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 the presentation may be passed on, copied, reproduced, in whole or in part, or otherwise disseminated, directly or indirectly, to any other person. This document and its contents are directed only to the intended audience. It is being made on a confidential basis and is furnished to you solely for your information. By accepting this material the recipient confirms that he or she is a relevant person. This document must not be acted on or relied on by persons who are not relevant persons. Any investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons. If you are not a relevant person you should not attend the presentation and should immediately return any materials relating to it currently in your possession. Forward-looking statements speak only as at the date of this presentation and Aluminium Bahrain B.S.C. expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. You should not base any behaviour in relation to financial instruments related to the Company's securities or any other securities and investments on such information until after it is made publicly available by the Company or any of their respective advisers. Some of the information is still in draft form and has not been legally verified. The Company, its advisers and each of their respective members, directors, officers and employees are under no obligation to update or keep current information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice. No representation or warranty, express or implied, is given by the Company, its undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use of this presentation or its contents otherwise arising in connection therewith is accepted by any such person in relation to such information. Page 2#3CONTENTS aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba 01 Industry Highlights • 04 Industry Perspectives in 2021 02 Alba Highlights 05 2021 Alba Priorities 903 Q3 2021 Results 9 06 Appendix Page 3#41 Industry Highlights are based on CRU Market Intelligence aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba 01 INDUSTRY HIGHLIGHTS¹ Page 4#5INDUSTRY HIGHLIGHTS aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba Strong Market Demand Supported by V-Shape Economic Recovery (+7% YoY) Market sentiment has been driven by China supply disruptions, a very strong demand and a tight physical market - all of which had led LME price to hit 10-year high > US$2,700/MT Double-digit increase in World ex-China consumption (+16% YoY), Europe's (+16% YoY), and North America's (+13% YoY) - owing to strong rebound in market recovery and economic activity Middle East demand continued to be strong (+18% YoY) supported by higher demand in Bahrain & UAE Chinese consumption almost flat (+1% YoY) due to slow growth in auto and construction market Page 5#6aba Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba INDUSTRY HIGHLIGHTS Global Production up by 4% YoY despite being at the Mercy of China's Power Constraints Power restrictions in China trigger substantial cutbacks in throughput (+3% YoY). In total, 3.1 Mtpa capacity were cut, 1.1 million MT greenfield projects were delayed, and 3.9 million MT expansions were pushed back [power cuts impacting Chinese smelters - Yunnan, Guangxi & Mongolia] Aluminium supply in GCC up by 3% YoY due to the 78Kt expansion at Al Taweela smelter while North America supply down by 2% YoY owing to supply cuts at Kitimat smelter in Canada World market swings into deficit with China (-492Kt) and w/o China (-251Kt) Page 6#7INDUSTRY HIGHLIGHTS aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba Record Highs in LME Price & Premia LME inventories at ~1,230 Kt as of 30 September 2021 (down by 16% YoY) Aluminium: immune from macro headwinds that affected other base-metals. LME-Cash averaged US$2,647/t-up by 55% YoY [lowest: US$2,424.50/t on 20 July and highest: US$2,950/t on 13 September] Logistics costs remain high → pushing up regional premiums. VAP premiums up supported by strong physical demand Major Japanese Ports (MJP¹) US Midwest 250 DDP Rotterdam 160 600 500 200 120 400 150 80 185 300 149 572 735 237 348 130 100 200 377 164 88 40 79 280 296 139 122 50 100 0 0 Q3 Q4 2020 Q1 2020 2021 2021 2021 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2020 2020 2021 2021 2021 Q3 Q4 Q1 Q2 Q3 2020 2020 2021 2021 2021 ¹Major Japanese Ports (MJP) is based on Cost, Insurance and Freight (CIF) $ Page 7#8INDUSTRY HIGHLIGHTS Alumina Price - 12% of LME Price [US$307/t] LME Price Trend (US$/t) 2,900 aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba 2,647 2,399 2,400 2,092 1,916 1,900 1,704 1,400 Q3 2020 Q4 2020 Q2 2021 Q3 2021 Q1 2021 Alumina Price Index Trend (% of LME) 20% 18% 16% 16% 15% 14% $260 14% $276 $298 12% 12% 12% $310 $307 10% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Page 8#91 Alba Highlights relate to Alba official news 02 ALBA HIGHLIGHTS1 aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba Page 9#10ALBA HIGHLIGHTS #Commit4Bahrain aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba Major ESG Highlights Proud recipients of SafeGuard Hygiene Excellence and Safety Label from Bureau Veritas (BV), and Bronze Medal from Brandon Hall Group Excellence in Learning Awards (Alba's "Al Jisr" Programme -- the first initiative of its kind to boost Bahranisation) Recipient of Volunteer Service Award from InJaz Bahrain for contributing 482 volunteer-hours - the highest amongst Bahraini companies Awarded 41 employees who volunteered to participate in InJaz Bahrain 99.7% vaccination rate in c.3,200 workforce 17 million safe working-hours w/o LTI was achieved on 9 October 2021 Safety measures at Alba's vicinity continue with random rapid tests carried-out daily at the Company's gates to Alba employees and contractors' personnel. All guests are to present their COVID-19 vaccine certificates in order to enter Alba Page 10#11aba Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba ALBA HIGHLIGHTS - THINK SAFETY FIRST & ALWAYS Aluminium ecovadis as steward Initiative 8 4 3 Lost Time Injury (LTI) Trend 1 0 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 70 70 35 Total Recordable Injuries 32 12 12 CONGRATULATIONS FOR ACHIEVING Sky is the limit 17 SAFE-WORKING HOURS Million WITHOUT LTI 5 9 0 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 Achieved on 09 Oct'21 Page 11#12aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba 2020 SUSTAINABILITY REPORT: TOPICS THAT MATTER THE MOST ه Climate Change, Green House Gas (GHG) and Energy Management Water and Wastewater Management + Health and Safety вв Compliance with Statutory and Regulatory Requirements Human Rights Community Development and Engagement including Education and Cultural Heritage Waste Management including Hazardous Materials & Recycling Product Quality Biodiversity Management Technology, Innovation and Process Improvement Business Integrity including Transparency, Ethics and Anti-Corruption Employee Training, Development and Talent Management Economic Performance Employee Welfare and Diversity including Gender Equality Anti-Competitive Behaviour Responsible Sourcing and Supplier Management Page 12#13aba Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba ALBA HIGHLIGHTS - Q3 2021 Operational Highlights & Milestones Sales' volume at 366,151 metric tonnes (MT), down by 7% YoY, owing mainly to logistics' challenges while Production reached 392,959 MT, up by 2% YoY, thanks to operational efficiencies Value Added Sales averaged 58% of the total shipments [VAP in MT up by 13% YoY] Inaugurated the New Jetty Extension & Additional Raw Materials Storage Facilities at the Marine Terminal Soon to release of Alba's Fifth Edition of Sustainability Report (w/ quality assurance) First smelter in GCC to publish its ESG Disclosure (climate change reporting) on CDP-UK Environmental Conservation Project: construction of Spent Pot Lining (SPL) Treatment Plant is completed Page 13#14aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba ALBA HIGHLIGHTS - Q3 & YTD 2021 Financial Key Performance Indicators EBITDA driven by higher LME prices and premiums Q3: US$440 million up by 487% YoY YTD: US$1,031 million up by 285% YoY Net Income driven by high EBITDA levels Q3: US$335 million up by 1,184% YoY YTD: US$720 million up by 1,320% YoY Free-Cash Flow* impacted by changes in the Working Capital Q3: US$231 million up by 85% YoY YTD: US$278 million up by 48% YoY *Free Cash Flow excludes Line 6 CAPEX spending Page 14#15ALBA HIGHLIGHTS - YTD 2021 One-off (Inventory) aba Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba AL HASSALAH Initiative (2-Year): Save US$100 Million by 2022 AL HASSALAH (US$ Million) 10 US$54.2/MT 100 Recurring 60 63 Target 2021 YTD 2021 Achieved Savings Target 2022 Breakdown by Value Chain Power 5 11 Raw Materials' Sourcing &Others US$100M 47 Operations 37 Sales, Marketing & Casthouse Page 15#1603 Q3 2021 RESULTS aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba Page 16#17aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Higher Metal Sales Thanks to Higher LME Prices, Higher VAP & Higher Premiums Aluminium for the world 1,200 1,100 1,000 Metal Sales' Bridge (US$M) – Q3 2021 vs. Q3 2020 - 900 314 800 700 600 699 500 3 51 48 by 55% YoY in LME price ▼by 7% YoY in volume 1,019 400 Metal Sales LME Product Mix Pricing Power Volume Metal Sales Q3 2020 Q3 2021 Page 17#18aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Higher VAP | Lower Commodities' Volume | Higher Premiums Aluminium for the world 450 Sales by Product-Line Bridge (MT'000) Q3 2021 vs. Q3 2020 4 25 400 350 393 300 Premium Above LME Trend US$ Per MT 300 56 250 +99% 200 150 366 100 149 297 250 50 Sales Value Q3 2020 Added Liquid Commodity Sales Metal Q3 2020 Q3 2021 Q3 2021 Page 18#19aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Aluminium for the world Lower Direct Cost Due to Lower Sales' Volume with Increases in Alumina Prices Partially Offset by Reductions in Some Other RM Prices Direct Cost Bridge (US$M) – Q3 2021 vs. Q3 2020 700 62 625 550 600 475 8 10 34 15 76 25 560 400 Direct Cost Q3 2020 RM RM Energy Price Consumption Price Other RM Alumina Sales' Cost Inventory Absorption Plant Spending Direct Cost Q3 2021 * RM stands for Raw Materials Page 19#20aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Higher EBITDA Thanks to Higher VAP Sales and Higher LME Prices All-Time Record EBITDA % at 42.6% EBITDA Bridge (US$M) - Q3 2021 vs. Q3 2020 Aluminium for the world 500 400 300 200 EBITDA 10.7% 100 0 75 321 15 41 12 EBITDA 42.6% 440 EBITDA Metal Other Q3 2020 Sales Sales Direct Cost Selling Expenses EBITDA Q3 2021 Page 20#21aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Cash-Flow Bridge Analysis - Q2 2021 to Q3 2021 Aluminium Bahrain B.S.C. (Alba) Aluminium for the world 700 600 500 Q2 2021 to Q3 2021 Cash-Flow Bridge (US$M) 400 421 300 200 100 166 0 144 46 2 123 Cash CF WC CAPEX Balance from Changes Spent 2Q21 Operations 260 210 160 110 Free Cash Flow (US$M) 60 125 272 10 Line 6 CAPEX Net Debt Payment Cash Service to Balance Shareholders 3Q21 -40 Q3 2020 231 Q3 2021 Operating & Investing Cash Flow (Excluding L6 CAPEX) Page 21#22aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Strong Financial Performance Thanks to High LME Prices & Operational Efficiencies Across the Plant Aluminium for the world Financial Summary Q3 2021 Q3 2020 YTD 2021 YTD 2020 Average Cash LME (US$/MT) 2,647 1,706 2,379 1,630 Average Alumina Price (US$/MT) 307 260 305 281 Total Sales (US$M) 1,034 699 2,823 2,081 EBITDA (US$M) EBITDA% Net Income/(Loss) (US$M) Gain/(Loss) Unrealised Derivatives Adjusted Net Income / (Loss)* 440 75 1,031 268 42.6% 10.7% 36.5% 12.9% 335 (31) 720 (59) 1 (7) 335 (31) 719 (52) 2 ¹Refer Note 7 in the Financial Statements. ² Excludes unrealized gain/(loss) on derivatives [Interest Rate hedge of 50% of the syndicated corporate loan] Page 22#2384 04 1 Industry Perspectives are based on CRU Market Intelligence aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba INDUSTRY PERSPECTIVES¹ IN 2021 Page 23#24aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba INDUSTRY PERSPECTIVES Global Demand to Remain Strong The outlook for aluminium will be shaped by energy transition, rising power costs and continued demand growth With China's power restrictions and energy-control policy, China is targeting 18% reduction in carbon intensity per unit of GDP by 2025 Global Aluminium demand to exceed 2019-level by 3.5 million MT in 2021. Asia, Europe and North America to lead the way in metal consumption Transportation, packaging and electrical sectors will support positive Aluminium demand. Scrap metal to gradually dominate the market on the path of decarbonisation Supply chains struggle to cope with the surge in metal demand & premiums to keep strong as China raises imports and freight costs remain high Global market to swing into a deficit of 2.08 million MT in 2021 and 2.6 million MT in 2022 LME price to range between US$2,600/t - US$2,900/t Page 24#25aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba INDUSTRY PERSPECTIVES Major Raw Materials' Price Trends Spot Alumina prices soared in Sep'2021 owing to production disruptions in Atlantic region and power/production cuts in China. This price trend is expected to continue until H1 2022 then will ease down by H2 2022 Carbon markets (GPC, CPC & Anodes) to be impacted by supply shortages and increasing metal demand Liquid Pitch prices have risen and expected to remain in the higher range amidst supply shortage in the market and increased demand globally Aluminium Fluoride (ALF3) to range at higher levels due to supply shortage in China and strong demand domestically in China and globally. Producers have cut production amidst power cuts in China and expected to continue until Q1 2022 Page 25#261 Based on Alba 5-Year Strategic Initiatives aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba 05 2021 ALBA PRIORITIES¹ Page 26#272021 ALBA PRIORITIES aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba ESG Focus & Journey Towards Safety Excellence Be the ESG Change We Want to See in the World Evolve Towards Safety Excellence & Keep Alba's Human Capital Safe Amidst COVID-19 Support the Government's Initiatives & aim is to have 100% vaccinated workforce Meet 2021 Production Target of 1,540,000 metric tonnes & Deliver on AL HASSALAH Savings' Target of US$70 Million by 2021-end Screen Potential Upstream Opportunities to Secure 1/3 Alumina Requirements & Continue Dialogue with Hangzhou Jinjiang Group Co. Ltd Capitalise on Aluminium Stewardship Initiative and Ecovadis Certifications to Penetrate New Markets & Increase VAP Sales Commission Spent Pot Lining Treatment (SPL) Plant Focus on Green and Sustainable Initiatives [Solar Farm] Page 27#2806 APPENDIX aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba Page 28#29aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Higher Metal Sales Thanks to Higher LME Prices, Higher VAP & Higher Premiums Metal Sales' Bridge (US$M) – YTD 2021 vs. YTD 2020 - Aluminium for the world 3,000 2,600 685 2,200 1,800 1,400 2,069 1,000 600 34 by 46% YoY in LME price 86 95 "1 / 1 by 5% YoY in volume 2,779 200 Metal Sales LME Product Mix Pricing Power Volume YTD 2020 Metal Sales YTD 2021 Page 29#30aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Aluminium for the world Higher VAP | Lower Commodities' Volume | Higher Premiums YTD 2021 vs. YTD 2020 Sales by Product-Line Bridge (MT'000) 4 1,400 209 1,000 600 1,163 Premium Above LME Trend US$ Per MT 275 266 200 +75% 1,110 125 145 200 Sales Value YTD 2020 Added Liquid Commodity Sales Metal YTD 2021 253 50 50 YTD 2020 YTD 2021 Page 30#31aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Aluminium for the world * RM stands for Raw Materials Lower Direct Cost Due to Lower Sales' Volume with Increases in Alumina Prices Partially Offset by Reductions in Some Other RM Prices YTD 2021 vs. YTD 2020 - Direct Cost Bridge (US$M) 2,000 30 9 34 59 100 145 1,750 15 1,500 1,250 1,745 1,000 750 1,699 500 Direct Cost YTD 2020 RM RM Energy Price Consumption Price Other RM Alumina Sales' Cost Inventory Change Plant Spending Direct Cost YTD 2021 Page 31#32aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Higher EBITDA Thanks to Higher VAP Sales and Higher LME Prices Strong EBITDA % at 36.5% YTD 2021 vs. YTD 2020 - EBITDA Bridge (US$M) Aluminium for the world 1200 1000 800 600 400 EBITDA 12.9% 711 46 31 25 25 EBITDA 36.5% 1,031 200 268 0 EBITDA YTD Metal Other 2020 Sales Sales Direct Cost Selling Expenses EBITDA YTD 2021 Page 32#33aa ALUMINIUM INDUSTRY: RALLY IN LME PRICES & PREMIUMS Aluminium Bahrain B.S.C. (Alba) Aluminium for the world 1200 1000 800 Cash Flow Bridge: YTD 2021 vs. FY 2020 FY 2020 to YTD 2021 Cash Flow Bridge (US$M) 600 1,005 400 610 300 250 200 Free Cash Flow (US$M) 150 117 278 30 94 100 0 188 50 272 200 118 0 0 Cash CF CAPEX Balance from Changes Spent 2020 Operations WC Line 6 Loan Payment Cash CAPEX Drawdown to Balance Shareholders YTD21 YTD 2020 YTD 2021 Operating & Investing Cash Flow (Excluding L6 CAPEX) Page 33#34ALBA SHAREHOLDERS' STRUCTURE Mumtalakat INVESTING FOR BAHRAIN سابك sabic aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba Bahrain Mumtalakat Holding Company SABIC Industrial Investment Company General Public 69.38% 20.62% 10% 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: ALBH, Fils 700 on 30 September 2021] Page 34#35ALBA SHARE PRICE YOY PERFORMANCE 2.00 1.80 Alba Share Price Vs. LME Price (US$) aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba 3,000 1.86 1.61 1.60 2,647 2,500 2,399 1.36 1.40 2,000 1.20 -1.18 2,096 0.95 1,916 1.00 0.90 1,500 0.80 1,704 1,497 0.60 0.40 0.20 1,000 500 0.00 0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Alba AVG Share Price (US$) LME AVG Price (US$) Page 35#36f Alba4World aa Aluminium for the world المنيوم البحرين ش.م.ب. Aluminium Bahrain B.S.C. (Alba For more information, please contact us on: [email protected] Alba4World YouTube user/Alba4World Alba4World Page 36