#1US 7990 86862 NAY QAMCO شركة قطر لصناعة الألمنيوم Qatar Aluminium Manufacturing Company Qatar Aluminium Manufacturing Company Investor Relations Presentation 30 June 2021#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-21#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 2021) 8. CAPEX and Cash flows (2021f-2025f) 9. Market statistics and dividends 10. Historical performance (2019-2020) 11. Governance structure 12. Sales and marketing 3 QAMCO, IR Presentation, 1H-21#4ASTR QAMCO at a glance YEEB#5CLASSIFICATION: C1 - CONTROLLED QAMCO at a glance Overview • Qatar Aluminum 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). Qatar Petroleum 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. 32.9% QAMCO's shareholding structure ■Qatar Petroleum 5.5% 9.4% 1.2% ■Other Qatari Institutions and Funds ■Foreign Institutions and Funds ■Retail investors - Qatar 51.0% ■Retail investors - Foreign Note: Shareholder data as of 30-Jun-21 5 LO FOL: 49% Max. single shareholder limit: 2% Core values HSE Operational excellence Shareholder value creation Cost optimization maximization Profit QAMCO, IR Presentation, 1H-21#6CO ASTR Ownership structure YEEB#7CLASSIFICATION: C1 - CONTROLLED Ownership Structure 7 • Qatar Petroleum (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-21#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). 9 [ANJIN w.cla Bra QAMCO, IR Presentation, 1H-21#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-21#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 QP partn- ▸ Experienced senior management team ership ▸ 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-21#1313 YEEB ASTR Peer review#14CLASSIFICATION: C1 - CONTROLLED QAMCO's competitive positioning versus global peers Gross profit margin (%) EBITDA margin (%) QAMCO 29.4% QAMCO ranks #1 QAMCO 41% QAMCO ranks #1 Peer 1 28.9% Peer 1 37% Peer 2 27.0% Peer 2 32% Peer 3 24.0% Peer 3 29% Peer 4 23.0% Peer 4 19% Note: Data as of 31-Mar-21 Note: Data as of 31-Mar-21 Net profit margin (%) Peer 1 23% QAMCO 19% QAMCO ranks #2 Peer 2 17% Peer 3 15% Peer 4 13% Note: Data as of 31-Mar-21 14 Note: Peers data include all major listed companies involved in production of Aluminium and related value chain. QAMCO, IR Presentation, 1H-21#1515 ASTR Macroeconomic updates YEEB#16CLASSIFICATION: C1 - CONTROLLED Macroeconomic updates Aluminium prices ($/MT) Alumina prices ($/MT) 3000 Aluminum LME spot prices ($/MT) 400 -Alumina spot prices ($/MT) 2500 350 2000 1500 1000 1-Jan-20 300 250 200 31-Dec-20 30-Jun-21 1-Jan-20 31-Dec-20 30-Jun-21 • Prices of aluminium, continue to climb on the back of renewed global demand, whereby sectors such as construction and automotive industries witnessed growth, as the global economies started to show signs of recovery since later part of 2020. • With aluminium being a key input for electric vehicles (EVS), wind turbines and solar power, bringing an additional layer of long-term demand for primary aluminium. • Global climate initiatives are also providing structural support to aluminum markets, given its major role in decarbonization and playing a key part in creating supply deficits. . All of the aforementioned factors translated into a sequential growth in prices of primary aluminium along with improved margins. 16 Note: Market prices have been sourced from Bloomberg and may not reflect prices achieved by QAMCO JV QAMCO, IR Presentation, 1H-21#1717 QAMCO results (For the six-month period ended 30 June 2021) ALTR YEEB#18CLASSIFICATION: C1 - CONTROLLED 1H-21 results at a Glance Revenue EBITDA Growth vs. 1H-20 Net profit 21% 78% QR 1.35 billion QR 558 million QR 288 million EBITDA Margin: 41.2% 1,870% EPS: QR 0.052 ROAE: 6.4% QAMCO posted the highest half-yearly net profit since incorporation, on the back of improved global aluminum prices, linked to macro-economic recovery and supply constraints QAMCO JV's shift of product mix to 100% of value-added products (VAP) supported margins QAMCO's closing cash balance (including share of cash in QAMCO's JV) stood at QAR 812 million 18 Return on Av. Equity (ROAE): TTM net earnings / Av. equity QAMCO, IR Presentation, 1H-21#19CLASSIFICATION: C1 - CONTROLLED Operational performance review Production (MT' 000) 19 324 1H-20 +1% +1% 328 163 165 -4% 334 1H-21 Q1-21 Q2-21 Sales volumes (MT' 000) +1% 319 159 160 1H-20 1H-21 Q1-21 Q2-21 Selling prices ($/MT) +26% +11% 2,325 2,203 2,449 1,845 1H-20 1H-21 Q1-21 Q2-21 1H-21 production volumes slightly increased compared to 1H-20, mainly due to higher amperage and production of value-added products (VAP). Q2-21 production volumes slightly increased compared to Q1-21. 1H-21 sales volumes marginally down as compared to 1H- 20, as more VAP was sold during 2021 with delayed Incoterms compared to last year's sales of standard ingots. Q2-21 sales volumes slightly up by 1% versus Q1-21. During 2021, selling prices improved on account of overall increase in aluminum prices globally, on the back of renewed global demand for aluminium, whereby sectors such as construction and automotive witnessed growth on the back of constructive economic drivers. The prices were supported by supply side constraints, on account of decarbonization drive and supply chain bottlenecks. QAMCO, IR Presentation, 1H-21#20CLASSIFICATION: C1 - CONTROLLED Financial performance review 1,121 Share of Revenue (QR million) +21% 1,353 639 +12% 714 QAMCO's Net Profit (QR million) +1,870% 288 124 +33% 165 1H-20 1H-21 Q1-21 Q2-21 15 1H-20 1H-21 Q1-21 Q2-21 1H-21 vs 1H-20: Share of revenue inclined, mainly due to positive trends in selling prices and shifting product mix more towards value-added products, despite slightly lower sales volumes. Q2-21 vs Q1-21: Share of revenue increased, mainly due to improved average selling prices (+11%) and slightly higher sales volumes (+1%). Av. Cash cost (USD/MT) 1H-21 vs 1H-20: Profitability improved due to continued uptick in aluminium prices with better realized premiums, coupled with savings in COGS and finance cost. Q2-21 vs Q1-21: Profitability continued the positive trajectory, on the back of improved LME prices, amid continued strength from macroeconomic dynamics. Share of JV's Debt (QR million) 1,433 +0% 1,435 +2% 2,221 2,270 1H-20 1H-21 Insignificant increase in av. cash cost was mainly due to higher raw materials costs, fully offset by favorable inventory movements, manpower costs, savings on account of finance costs and other realized savings amid operating costs optimization initiatives. 20 31-Dec-20 (IAS 31) 30-Jun-21 Share of debt slightly increased by 2%. QAMCO, IR Presentation, 1H-21#21CLASSIFICATION: C1 - CONTROLLED Net Profit Variance Analysis 292 15 1H-20 Price Variance +1,870% (Amounts in QR' million) 28 288 22 -2 -6 -61 Volume Variance COGS S,G&A Finance costs Others 1H-21 QAMCO reported a net profit of QR 288 million, an increase in profitability by 1,870% compared to 1H-20. Results affected by Joint Venture performance due to: ▸ Favorable movements cost a) Higher average realized prices (+26%) and improved product mix leading to better premiums; b) Lower cost of goods sold on account of lowered manpower (-11%) and favorable inventory movements, offset by higher raw materials cost (+10%); c) Lower finance cost (-44%) due to reduced interest rates and one-off unamortized portion of financing cost being written-off last year. ► Unfavorable movements a) Lower sales volumes (-4%); b) Higher impairment of pots compared to 1H-20; c) Higher marketing fee. 21 21 QAMCO, IR Presentation, 1H-21#22CLASSIFICATION: C1 - CONTROLLED Analysis of Selling Prices Selling prices ($/MT) – 1H-21 vs 1H-20 +26% 2,325 LME Premium 264 LME Price difference 1,845 +22% 149 LME LME 2,061 1,696 1H-20 1H-21 Selling prices ($/MT) - Q2-21 vs Q1-21 +11% 2,449 2,203 230 LME Premium 298 LME Price difference +9% o Average selling prices in 2021 improved due to persistent strength from macroeconomic environment leading to a renewed demand of aluminium products at a global scale, coupled with supply constraints. 。 LME premiums in 2021 improved mainly due better product mix with 100% production of value added products during the current year, amid better global demand for premium aluminium products. 22 22 LME LME 2,151 1,973 Q1-21 Q2-21 LME Aluminium price source: Bloomberg, CRU QAMCO, IR Presentation, 1H-21#2323 23 CLASSIFICATION: C1 - CONTROLLED Analysis of EBITDA margins QAMCO's JV EBITDA margins continue to remain robust & resilient Primary Aluminium Price (USD/ton) 2,700 2,500 2,300 2,100 43% 41.0% 41.4% 41% 36.8% чт 39% 37% 35% 33% 1,900 29.7% 31% 28.3% 28.3% 1,700 29% 27.2% 26.1% 27% 1,500 25% 1,300 23% Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Primary Aluminium Price (USD/ton) QAMCO's JV EBITDA Margins (%) Primary Aluminium price source: Bloomberg QAMCO, IR Presentation, 1H-21 QAMCO's JV EBITDA Margins (%)#24CLASSIFICATION: 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 18% Europe 21% Qatar 4% Asia 57% 24 24 QAMCO, IR Presentation, 1H-21#25CLASSIFICATION: 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. 25 1H-21 QAMCO JV Sales Volumes - Product mix (%) 47% 53% 1H-20 QAMCO JV Sales Volumes - Product mix (%) ■Extrusion Ingots ■Foundry Alloys 22% 33% ■Standard Ingots 45% QAMCO, IR Presentation, 1H-21#2626 26 ASTR Market Statistics and dividend distribution YEEB#27QAR 8.5 bn 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 • The total dividends paid from the date of incorporation amounted to QR 362.7 million representing a payout of 6.5% of the nominal value of the shares. Interim Dividend - 2019 QR 111.6m QR 0.02 per QR 0.01 per share + share QR 195.3 m QR 0.035 per share Jan-19 Feb-19 Apr-19 May-19 Mar-19 Jun-19 Aug-19 Sep-19 Oct-19 Jul-19 Final Dividend - 2019 QR 55.8m Final Dividend - 2020 Dividend distribution since incorporation Nov-19 Dec-19 Jan-20 CLASSIFICATION: C1 - CONTROLLED Market Statistics and Dividends 10.00 Market Cap (QR Billion) Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 QAMCO, IR Presentation, 1H-21 share QR 362.7m QR 0.065 per Total May-21 Jun-21 27#2828 28 ASTR CAPEX and Cash Flows (2021-2025) YEEB#29CLASSIFICATION: C1 - CONTROLLED CAPEX and Cash Flows (2021-2025) - (QAMCO's Share) CAPEX: 。 Planned CAPEX (2021-25) include routine operations such as pot relining and other maintenance pertaining to power plant and anode plant. Cash Flows: Cash Flows (QAR' m) 2021 2022 2023 2024 2025 o Impressive cash flows from JV's operations, provided sales prices are realized in line with the budgeted plans. Net operating cash flows 632 530 673 693 691 Net investing cash flows (281) (235) (274) (140) (154) Net financing cash flows Net cash flows 56 30 (48) (64) (65) 406 325 351 489 471 o Financing cash outflow from FY 2021 is only pertaining to interest costs. Note: The cash flow figures for the years 2021-25 are based on the 2021 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 2021- 2025 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. 29 29 QAMCO, IR Presentation, 1H-21#3030 30 ASTR Historical performance (2019-2020) YEEB#31CLASSIFICATION: C1 - CONTROLLED Key Performance Indicators Production (MT’000) – 100% Sales Volumes (MT'000) – 100% Selling Prices ($ / MT) 653 +0% +0% -12% 655 648 651 2,098 1,854 2019 2020 2019 2020 2019 2020 • • 2020 Production and sales volumes remained flat in comparison to 2019. Selling prices remained under pressure in 2020, due to adverse macroeconomic conditions. Share of Revenue (QR million) QAMCO's Net Profit (QR million) Share of JV's Debt (QR million) -1% -8% -11% 96 95 2,415 2,221 2,476 2,197 2019 2020 2019 2020 2019 2020 (IAS 31) 31 • Revenue growth remained negative due to declining prices. Decline in net profit was mainly due to lower revenues and lowered realized premiums. This was offset by lowered cost of goods sold and savings on account of finance cost and G&A expenses. 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-21#3232 32 ASTR Governance Structure#3333 33 CLASSIFICATION: C1 - CONTROLLED Governance Structure Board structure QAMCO Board of Directors consists of six (6) Directors, all were appointed by the Special Shareholder "Qatar Petroleum". QP 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. 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. 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. 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. QAMCO, IR Presentation, 1H-21#34CLASSIFICATION: C1 - CONTROLLED Governance Structure Remuneration Board of Directors The Company has developed a periodically revisited remuneration policy for Board members. The policy has fixed component for Board membership and attending meetings and 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 Qatar Petroleum 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. 34 == QAMCO, IR Presentation, 1H-21#35THANK 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] 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.