Walid Al Attar

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Global and regional aluminium markets managing growth, competition and oversupply

The Middle East as an emerging hub

Walid Al Attar, Chief Marketing Officer

Platts Aluminium Symposium 2014

12 to 14 January 2014


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1Emirates Global Aluminium

Agenda

Introducing Emirates Global Aluminium

Primary aluminium core assets

Product mix

Global dynamics

Middle East primary aluminium industry

EGA sales strategy


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2Emirates Global Aluminium 2Emirates Global Aluminium

Middle East primary aluminium industry (1)Centred in the Gulf Co-operation Council (GCC) region

Saudi Arabia

OmanQatar

UAE

Bahrain

Kuwait

EMAL

DUBAL

Alba

Qatalum

Sohar

Maaden

Six smelters in five GCC states

Massive growth in 40 years 120,000 t in 1971 to 3.7 M t in

2012

Over 9% of total global primaryaluminium production will come

from the Middle East by 2020

Some 60% of Middle Eastprimary aluminium capacity hasbeen built since 2008

About 57% of new capacityrepresents regional investments

by global majors


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Middle East primary aluminium industry (2)Capacity to exceed 4.88 M t by 2014 (almost 32% up on 2012)

Country Company Annual

productioncapacity (t)

Year

commissioned

Ownership

Bahrain ALBA 880,000 1971 Bahrain (67.5%)

SABIC (21.5%)

Public (11%)

UAE DUBAL 1,056,000 1979 Dubai Government (100%)*

Oman Sohar 370,000 2008 Oman Oil Co (40%)

Abu Dhabi Water & Elec. Authority (40%)Rio Tinto Alcan (20%)

Qatar Qatalum 585,000 2010 Qatar Aluminium (50%)

Hydro Alumin ium (50%)

UAE EMAL 1,255,000 2010 DUBAL (50%)*

Mubadala (50%)*

Saudi Arabia Maaden 740,000 2012 Saudi Arabian Mining Company (Maaden) (74.9%)

Alcoa (25.1%)

Source: Gulf Aluminium Council

* Ownership structure changing, through formation of EGA


5/244Emirates Global Aluminium 4Emirates Global Aluminium

Middle East primary aluminium industry (3)Key factors behind the growth

Energy is a readily available resource (more economical than elsewhere); industry adds valueto energy to support social development initiatives

Modern installations, featuring advanced, environmentally-friendly energy-efficient reductioncell technologies (focus on economic and environmental sustainability)

Location, with excellent reach to all corners of the globe

Strong export capacity, designedto exceed regional demand and

fulfil commitments to global markets

Continued growth in globaldemand identified unanimously by

industry analysts

National government support forinvestment in industry (ease of

doing business) Many attractive features,

conducive to primary aluminium

production


6/245Emirates Global Aluminium

Agenda


Core primary aluminium assets

Product mix

Global dynamics


EGA sales strategy


7/246Emirates Global Aluminium 6Emirates Global Aluminium

Mubadala Development Company andInvestment Corporation of Dubai (collectively theshareholders of DUBAL and EMAL) havecombined their aluminium industry interestsin anew jointly-owned, UAE-based entity called Emirates Global Aluminium (EGA)

Completion of the transaction achieved in Q1 2014, allowing integrated operations tocommence January 2014

EGA represents the progression of the shareholders principles for cooperation agreed in2006 that have underpinned their relationship in EMAL and continue in their activities in all

parts of the aluminium value chain (aluminium industry in the UAE began 35 years ago) EGA has very strong financial backing both shareholders are sovereign wealth funds,

with unwavering commitment to sustainable growth

EGAs visionis to provide the global economy with sustainable material of the highestquality, building a legacy of excellence for the UAE and the world

EGACreating a new, UAE-based global aluminium champion


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World-class smelter operations on two sites (1)

Commissioned end-1979

Sequential expansions, advancing

technologies

1,573 reduction cells in seven

potlines

Smelter (>1 M tpa) Casthouses (>1 M tpa)

2,350 MW power station (30C)

30 million gallon/day desalination

plant

Port facilities

Warehouses & administration

Residential area


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World-class smelter operations on two sites (2)

PHASE I

756 cells (DX Technology)

Fully commissioned end-2010

787 kt sold in 2012

PHASE II

444 cells (DX+ Technology)

Upgrade of Phase I cells

First hot metal September 2013

Increase capacity to 1.35 M tpa byend-2014


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Total UAE smelter capacity

DUBALwas worlds 2ndlargest single-site producer in 2012 (1.025 M t)

EMALwill be worlds largest single-site smelter once fully commissioned in 2014

EGA(DUBAL + EMAL) accounts for 50% of Middle East production

Initially DUBAL only, including EMAL from 2010 onwards

135

240

380

530

680761

864 890950 970

1304

17811839 1872

23152384 2395 2393

0

500

1000

1500

2000

2500

3000

1980 1990 1996 1999 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

ktpa

Smelting capacity (000 tonnes per annum)


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Product mix

Product type cast by DUBAL and EMAL from 2014 (i.e. EMAL Phase II fully commissioned)

Total2,500,000 tpa

240,000

780,000

1,100,000

380,000

Unalloyed

Foundry

Billet

Slab


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Dedicated to excellence and sustainabil ity

Premium purity, high performance aluminium products

Super high and high purity aluminium >99.952% metal purity

Leading supplier of foundry alloys to automotive manufacturers

One of the worlds largest suppliers of billets for forging andextrusion

Investment in value-added products casting facilities to meetcustomers requirements

Advanced reduction-cel l technologies, developed in-house

DX Technology (385 kA) (796 cells)

DX+ Technology (440 kA) (449 cells)

Modernisation and retrofit of older potlines (DUBAL)

Superb environmental performance *

Focus on energy-efficiency (smelter specific energy:14.73 DC MWh/t Al)

Stringent emission control (PFC 0.12 CO2eq t/t Al;HF 0.60 kg/t Al )

Safety fi rst and always

* DUBAL, 2012 figures


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Agenda



Product mix

Global dynamics


EGA sales strategy


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Global dynamics influencing EGA

Global growth of aluminium consumption

Growth of Chinese aluminium consumption and production

Increasing costs and decreasing availability of energy, driving closures of primary smelters

Environmental pressures to reduce greenhouse gas emissions

Influence of financial investment companies on aluminium pricing

Protectionism


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Growth in primary aluminium consumption

Annual growth in primary aluminium consumption of 4% to 6%

ROW versus China (ktpa)

17

2736

40

24

29

34

39

0

10

20

30

40

50

60

70

80

90

2010 2015 2020 2025

China Others

000to

nnes

Data: CRU


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Protectionism

Chinas tax incentives:

Competitive edge in terms ofpricing

Extraordinary growth inChinese production of

aluminium extrusions

Substantial growth in Chineseexports of aluminium

products manufactured fromextrusions.

Production of extrusions in China

X

10,0

00tpa

Sources: China NFMA, CRU

Chinese semi-fabricated exports to the GCC

tpa

Import tariff barriers:

Protects interests of older smelters BUT undermines competitiveness of countrys

downstream industry

Inappropriate warehousing strategies:

Perverse financial incentives Manipulation to maximise warehouse returns Aggravating tight supply of products and

depressing LME prices


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Aluminium is a commodity

Primary aluminium is in demand globally Highly competitive and transparent markets createsinteresting dynamics:

EGA sells products globally, mainly into countries short on primary aluminium production

EGA must thus compete on quality, service and price against international and national

producers

Primary aluminium is a globally traded product, with common commercial values (i.e. inherentenergy value):

Some countries export primary aluminium, others import it

Aluminium semi-fabricated and finished products are imported and exported by some

countriesAluminium scrap is imported and exported by some countries

The major common denominator in these flows is the value of the aluminium content. Other

variables (cost, quality and service) are the differentiators

Protectionvs. globalisation


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Agenda



Product mix

EGA sales strategy


Global dynamics


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Global sales strategy: regional application Follow markets where demand exceeds internal production

More than 88% of production is exported (largest market is Asia, followed by Middle East

North Africa region, Europe and The Americas)

39%

26%

20%

15%

Asia

MENA

Europe

Americas


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*IMPORTANT NOTES:

A) Aluminum production forecasts assume all confirmed brownfield / greenfield projects hit the market as planned

(no delays).

B) Aluminum production forecasts assume no cuts in production beyond the ones that have been confirmed so far

nor disruptions in operating capacity.

C) Aluminum production forecasts include annual capacity creep of 0.5% per year for all smelters.

Regional deficits widening(especially in North America, Western Europe, China)

Expected primary aluminium market deficits by region 2012-2015*(million tonnes)

Source: HARBOR Intelligence

NORTH AMERICA

1.051.50

WEST EUROPE

2.80 2.86

2.11 2.17

JAPAN

ASIA EXCL.

CHINA AND

JAPAN

5.625.01

2012

GLOBAL

2015

1.00 1.08

0.50

1.65

CHINA


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*IMPORTANT NOTES:

A) Aluminum production forecasts assume all confirmed brownfield / greenfield projects hit the market as planned

(no delays).

B) Aluminum production forecasts assume no cuts in production beyond the ones that have been confirmed so far

nor disruptions in operating capacity.

C) Aluminum production forecasts include annual capacity creep of 0.5% per year for all smelters.

GCC: only region with increasing surplusExpected primary aluminium market surpluses by region 2012-2015*(million tonnes)

Source: HARBOR Intelligence

MIDDLE EAST

REGIONAL SURPLUS

LATIN AMERICA

0.400.19

AFRICA

1.231.24

OCEANIA

1.811.47

2.58 2.53

EASTEUROPE3.044.51

2012

GLOBAL DEFICIT

2015

1.00 1.08


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The Americas: Strengthening presence,

penetrating markets

North America:

Strengthened DUBAL/EMAL presence through DUBAL America Inc. Proportion of sales into the USA increased from 8% in 2011 to 15% in 2012.

South America: First foray in 2011

DUBAL sales in 2011 and 2012 totaled approximately 33,000 t

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1,001 1,015 1,032 1,052

2009 2010 2011 2012

Asia

MENA

Europe

Americas


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Closing thoughts

Global aluminium industry:

Challenged by warehousing dynamics and re-melt overhang. Constrained by depressed LME prices.

Strong and continuous growth in demand for value-added products.

Long-term outlook to rectify.

Middle East aluminium industry: State-of-the-art smelters.

Substantial investment in sustainable production (advanced technologies, emissionreduction).

Casthouse mix primarily value-added products to meet customer demands.

EGA prospects: Additional 500,000 tonnes coming on stream (EMAL Phase II).

Strong demand will ensure full capacity pre-sold.


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Thank you

Walid Al Attar

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