Alba Reports Full Year 2011 Results

Alba Reports Full Year 2011 Results

·; 2011: Net Income of US$ 564 million - up by 53% YoY

·; 2011: A record year for Production & Sales

·; 2011: Dividend of US$ 252 million proposed by the Board (of which US$ 102 million were paid as an interim dividend in August 2011)

2011 Industry Highlights:

·; Aluminium demand still healthy with world consumption growing by 9.6%, Europe & MENA's consumption up by 6% and 15% respectively.

·; Signs of improvement in US economy while capacity cuts in the range of 1.7 million metric tonnes are expected to disappear in Europe in 2012.

·; World market slightly over-supplied and China's output reaching record levels.

·; Aluminium prices at the London Metals Exchange dropped by 13% in Q4 2011 with an average cash price of US$ 2,089 mtpa versus US$ 2,400 mtpa in Q3 2011.

2011 Alba Highlights:

·; Alba exceeded the additional recurrent savings by recording US$ 73 million in 2011 ahead of target by US$ 3 million.

·; Alba recorded an increase in production by 3.6% and an increase in sales by 4.5% in 2011.

·; Sales of Value-Added products reached 63% of total shipments in 2011 versus 62% in 2010.

·; Kick-off of Safety Excellence & 6 Sigma Programs.

·; Feasibility studies on optimum energy and technology solutions for Pot Lines 4 and 5 Creep, and Pot Line 6 expansion project were completed.

2011 Full Year Results:

·; Sales reach US$ 2,349 million in 2011 as compared to US$ 1,997 million in 2010.

·; EBITDA (excluding one-time costs) at US$ 631 million in 2011 - up by 14% YoY.

·; Net Income of US$ 564 million in 2011 - up by 53% as compared to US$ 368 million in 2010.

·; Actual cash delivered to Shareholders in 2011 was US$ 267 million versus US$ 238 million in 2010.

·; Board recommended an additional dividend of US$ 150 million bringing-up the total to US$ 252 million for 2011

2012 Alba Priorities:

·; Alba Star Programme to achieve additional cash savings of US$ 30 million in 2012.

·; Have a sustained focus on Value-Added products.

·; Discussion with local authorities on a long-term contract securing availability and price of gas beyond 2012.

·; Launch bankable feasibility studies for the Pot Line 6 expansion project.

Aluminium Bahrain B.S.C. (Alba) released its full year and fourth quarter 2011 results during a meeting of the company's Board of Directors on Thursday, February 16, 2011 at the Ritz Carlton Hotel Bahrain.

Commenting on the full-year results, Alba's Chief Executive, Laurent Schmitt said:

"Alba's sound financial performance for 2011 was underpinned by sustained growth, enhanced productivity and higher profits thanks to our Continuous Improvement Program which was ahead of our target.

Despite the social challenges faced in early 2011 coupled with some exceptional one-time costs as well as the decline of LME prices in the latter quarter of the year, Alba showed strong resilience reflected in its healthy financial performance and strong EBITDA levels.

Looking ahead, Alba remains committed to future growth through pro-active initiatives that build upon developing a culture of Continuous Improvement, commitment to Operational Efficiency and Global Competitiveness."

The Chairman of Alba's Board of Directors, Mahmood Hashim Al Kooheji added:

"Alba is a success story not only because of the positive results achieved in 2011 but more for the strong fundamentals the company has in place that made this growth possible.

This achievement was made possible thanks to the efficiency of the Management team and the loyalty of Alba's workforce in meeting goals despite the prevailing challenges. Furthermore, distributing a cash dividend endorses Alba's strong business model which continuously deliver returns to its shareholders."

Alba's Chief Executive, Laurent Schmitt, Chief Financial Officer, Tim Murray and Investor & Public Relations Manager, Eline Hilal will be holding a series of meetings with investors in Bahrain, Dubai and London. They will be making a presentation on the full year and fourth quarter results, discuss Alba's performance in 2011 as well as outline the company's priorities and plans for 2012.

ENDS

Note:

Alba has been consistently ranked as one of the largest aluminium smelters in the world, and is known for its technological strength, global competitiveness and innovative policies. Alba produces more than 860,000 metric tonnes per annum of aluminium which meet or exceed the industry standard for purity, with products including standard and T-ingots, extrusion billets, rolling slab, propertzi ingots, and molten aluminium. It has also maintained a strong track record of operational safety and environmental compliance.

http://www.rns-pdf.londonstockexchange.com/rns/6219X_-2012-2-17.pdf

Photo Caption 1:

Alba's Chairman, Mahmood Hashim Al Kooheji

Photo Caption 1:

Alba's Chief Executive, Laurent Schmitt

For further details, please contact Investor & Public Relations Manager, Eline Hilal

Tel: (973) 17 8335100 (direct)(973) 39 907255 (mobile)

Fax: (973) 17 833822

E-mail: [email protected]

Date: February 16, 2012