#1US 7990 86862 NAY QAMCO شركة قطر لصناعة الألمنيوم Qatar Aluminium Manufacturing Company Qatar Aluminium Manufacturing Company Investor Relations Presentation 31 December 2020#2Disclaimer 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, Q4-20#3Table of Content 1. About QAMCO 2. Ownership Structure 3. Board of Directors 4. Competitive advantages 5. Results at a Glance (For the year ended 31 December 2020) 6. Market statistics and dividends 7. Operations of joint venture 8. CAPEX and Cash flows (2021 - 2025) 9. Results at a Glance (2019) 10. Governance structure 11. Sales and marketing 3 QAMCO, IR Presentation, Q4-20#4ASTR About QAMCO YEEB QAMCO, IR Presentation, Q4-20#5LO 5 About QAMCO • 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 Authorized share capital is QR 5,580,120,000 divided into 5,580,119,999 ordinary Shares and one (1) Special Share. The free float consists of 49% shares, with a foreign ownership limit of the same. The maximum shareholding size per shareholder is 2%; • The Company holds 50% share of Qatar Aluminium Limited Q.S.C (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. • Qatar Petroleum provides all of the head office functions for QAMCO through a comprehensive service-level agreement. • Top shareholders of QAMCO are: Qatar Petroleum (51%) and General Retirement and Social Insurance Authority (5%). • The of operations Qatalum remain independently managed by its Board of Directors and senior management team. QAMCO, IR Presentation, Q4-20#66 Ownership Structure Qatar Petroleum (51%) QAMCO Qatalum Joint Venture (50%) Public (49%) QAMCO, IR Presentation, Q4-20#77 About QAMCO QAMCO Board of Directors consist of: Mr. Abdulrahman Ahmad Al-Shaibi Mr. Ahmad Saeed Al-Amoodi Vice Chairman Chairman Mr. Mohammed Essa Al-Mannai Member Mr. Mohammed Jaber Al-Sulaiti Member Mr. Nabeel Mohammed Al-Buenain Member Mr. Khalid Mohammed Laram Member For detailed biographies of Board of Directors, please refer to the QAMCO website. QAMCO, IR Presentation, Q4-20#88 Competitive Advantages Low cost aluminium smelter • • • State of the art production facility and technology deployed • Assured feedstock supply • Feedstock competitively priced Operational synergies High focus on Health and Safety and Environment Proven financial position Focused investment for aluminium segment Positive share of operating profit margins from its joint venture Healthy share of operating cash flow generation from its joint venture Positive share of EBITDA even under difficult conditions from its joint venture Strong partnership 51% held by QP Experienced senior management team Reputable industry leader as joint venture partner (Norsk Hydro) Strong shareholder support Effective marketing QAMCO's joint venture is one of the leading cost efficient global producer of primary aluminium with proven track-record Strategic location in close proximity to key markets Well diversified customer base through marketing & distribution agreement with Hydro QAMCO, IR Presentation, Q4-20#96 Results at glance (For the year ended 31 December 2020) ALTR YEEB QAMCO, IR Presentation, Q4-20#10Key Performance Indicators For the year ended 31 December 2020 Production (MT’000) – 100% - +0% +1% 653 655 165 166 2019 2020 Q3-20 Q4-20 Sales Volumes (MT'000) – 100% +0% +4% • 648 651 156 162 2019 2020 Q3-20 Q4-20 Selling Prices ($ / MT) • 2020 production volumes remained at par as compared to 2019. Q4-20 production volumes marginally increased by 1% on Q3-20, due to better operating rates. Production not affected by COVID-19. • 2020 volumes remained at par as compared to 2019. Q4-20 sales volumes increased by 4% on Q3-20, due to overall pick-up in demand. Sales volumes on overall basis not affected by COVID-19. -12% 2,098 2019 10 +16% 1,854 1,721 2020 Q3-20 2,001 Q4-20 2020 selling prices significantly down on 2019, largely driven by continued decline in global market prices for aluminum, amid challenging market conditions. Q4-20 selling prices significantly up by 16% compared to Q3-20, against a backdrop of continued momentum in aluminium market, amid improved demand backed by stimulus announcements and prospects for vaccine-led recovery. 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, Q4-20#11Key Performance Indicators For the year ended 31 December 2020 - QAMCO share in JV Share of Revenue (QR million) -11% 2,476 2,197 485 2019 96 2020 Q3-20 +22% 591 Q4-20 QAMCO's Net Profit (QR million) 96 2019 -1% 95 2020 +3,597% -2 Q3-20 82 Q4-20 Share of JV's Debt (QR million) 2,415 31-Dec-19 -8% 2,221 (IAS 31) 31-Dec-20 Av. Cash cost (USD / MT) 1,619 -15% 1,376 • • • • 2020 vs 2019: Share of revenue declined, mainly due to declining trends in selling prices. Q4-20 vs Q3-20: Share of revenue increased, mainly due to improved selling prices (+16%) with better LME premiums, and sales volumes (+4%). 2020 vs 2019: Profitability impacted due to continued decline in aluminium prices and lowered realized premiums. This was offset by lowered cost of goods sold and slightly improved sales volumes. Q4-20 vs Q3-20: Profitability recovered significantly, on the back of following factors: - improved LME prices, amid strength from macroeconomic dynamics; - better realized LME premiums, on account of reinstating product mix to value added products from standard ingots; - improved EBIDTA margins. Share of debt decreased by 8% mainly on account of repayment of principal amounting to QR 222 million. Decline in cash cost was mainly due to the overall decline in feedstock cost, lowered power import costs, savings on finance cost because of lowered interest rates and other realized savings amid operating costs optimization initiatives. 11 2019 2020 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, Q4-20#12Net Profit Variance Analysis (QR in Million) 96 96 255 -1% 11 17 95 95 -4 -289 10 2019 Price Variance Volume Variance COGS S,G&A Finance costs Others 2020 QAMCO reported a net profit of QR 95 million, a decline in profitability by 1% compared to the year 2019. Results affected by Joint Venture performance due to: ▸ Favorable movements a) Decline in cost of goods sold due to lowered raw materials, maintenance, salaries and energy consumption which in total decreased by 12% versus 2019; ▸ Unfavorable movements a) Reduction in revenue due to decline in average selling prices by 12% versus 2019. b) Lower realized premiums; c) No one-off insurance income due to insurance claims received last year. 12 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, Q4-20#13Analysis of Selling Prices Selling Prices ($ / MT) LME Price 2,098 LME Premium: 257 -12% 1,854 177 difference -9% LME 1,841 LME 1,677 2019 2020 Selling Prices ($/ MT) +16% 2,001 243 1,721 166 LME LME 1,758 1,555 LME Price difference +13% 。 2020 average selling prices declined from 2019 due to persistent challenging macroeconomic conditions pressuring LME prices. 。 2020 vs 2019 LME premiums declined mainly due to unprecedented shift in product mix from value added products towards standard ingots during the year amid declining global global demand for aluminium products. 。 Q4-20 vs Q3-20; selling prices improved on the back of improved market conditions. LME premiums also increased with product mix being reinstated back to maximum value added products from standard ingots in Q4- 20. 13 Q3-20 Q4-20 LME Aluminium price source: Bloomberg, CRU QAMCO, IR Presentation, Q4-20#14Primary Aluminium Price (USD/ton) Analysis of EBIDTA margins Despite pressured primary aluminium prices globally, QAMCO's JV EBIDTA margins remained robust and resilient 2,200 2,100 2,000 1,900 1,800 36.0% 37% 35% 33% 31% 29.4% 1.600 1,500 1,400 1,700 28.2% 27.8% 26.4% 25.2% 29% N27.4% 27% 25.2% 25% 1,300 23% Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 14 Primary Aluminium price source: Bloomberg -Primary Aluminium Price (USD/ton) QAMCO's JV EBITDA Margins (%) QAMCO, IR Presentation, Q4-20 QAMCO's JV EBITDA Margins (%)#15Geographic analysis - QAMCO JV revenue Asia remained QAMCO JV's largest market, while its presence in US and Europe continued to be substantial North America 14% Europe 19% Qatar 3% Asia 64% 15 QAMCO, IR Presentation, Q4-20#1616 QAMCO JV revenue - product mix (%) Extrusion ingots along with foundry alloys remains key products for QAMCO's JV. Contribution of standard ingots to overall revenue mix increased in 2020, as the production moved from value added products (VAP) to standard ingots for a certain period during the year 2020, with lower demand for value added products amid challenging market conditions due to the outbreak COVID-19 pandemic disrupting overall industrial activity. 2020 QAMCO JV Sales Volumes - Product mix (%) 2019 QAMCO JV Sales Volumes - Product mix (%) 36% 16% 7% 48% 39% 54% ■Extrusion Ingots ■Foundry Alloys ■Standard Ingots QAMCO, IR Presentation, Q4-20#1717 ASTR Market Statistics and dividend distribution YEEB QAMCO, IR Presentation, Q4-20#18• Market Statistics and Dividends 8.00 Market Cap (QR Billion) 7.00 6.00 5.00 4.00 3.00 2.00 1.00 Jan-19 Feb-19 Mar-19 Apr-19 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 Interim Dividend - 2019 QR 111.6m Dividend distribution since incorporation Final Dividend - 2019 QR 55.8m QR 0.02 per + share QR 0.01 per share + Final Dividend - 2020 QR 195.3 m QR 0.035 per share Total QR 362.7m QR 0.065 per share The total dividends paid (excl. 2020 dividends) from the date of incorporation amounted to QR 167.4 million representing a payout of 3% of the nominal value of the shares. 18 Proposed dividend; subject to shareholders' approval at the next Annual General Assembly meeting QAMCO, IR Presentation, Q4-20 QAR 5.4 bn#1919 ASTR Operations of Joint Venture YEEB QAMCO, IR Presentation, Q4-20#20• 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 20 20 w.cla Bra QAMCO, IR Presentation, Q4-20#21QAMCO'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. 21 21 1334 139898 A356 2 Sr QAMCO, IR Presentation, Q4-20#22CAPEX 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: o Impressive cash flows from JV's operations, provided sales prices are realized in line with the budgeted plans. Cash Flows (QAR' m) Net operating cash flows 2021 2022 2023 2024 2025 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. 22 22 QAMCO, IR Presentation, Q4-20#2323 23 ASTR Results at glance (2019) YEEB QAMCO, IR Presentation, Q4-20#24Key Performance Indicators (For the 13 month period ended 31 December 2019 - QAMCO share in JV) Production (MT'000) – 100% +1% 697 704 - Sales Volumes (MT'000) – 100% - +2% 684 695 Selling Prices ($ / MT) 2,403 -12% 2,112 24 2018 2019 2018 2019 2018 2019 Production and sales volumes were marginally higher in comparison to the last pro-forma period. Selling prices remained under pressure throughout 2019, due to adverse macroeconomic conditions including trade disputes between global economies causing global GDP to slowdown, which contributed negatively to the growth in the industry. Share of Revenue (QR million) QAMCO's Net Profit (QR million) • • -11% 2,990 2,669 2018 2019 -77% 352 2018 80 2019 Net Debt (QR million) -17% 2,307 1,919 2018 2019 (IAS 31) Revenue growth remained negative due to the declining prices. Decline in net profit was mainly due to the lower revenues, comparatively higher COGS, impairment losses and increased financing costs. Note: QAMCO's first financial year consisted of 13 months and ended on 31 December 2019. 2018 financial data is based on pro-forma financial statements for the 13 month period ended 31 December 2018. QAMCO, IR Presentation, Q4-20#2525 25 ASTR Governance Structure YEEB QAMCO, IR Presentation, Q4-20#26Governance 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. 26 26 QAMCO, IR Presentation, Q4-20#27Governance 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. 27 22 QAMCO, IR Presentation, Q4-20#28THANK 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.