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1 LINET omorrow will be different than TodayAnnual Report 2017 His Royal Highness Prince Khalifa bin Salman Al KhalifaThe Prime Minister of the Kingdom of BahrainHis Majesty King Hamad bin Isa Al KhalifaThe King of the Kingdom of BahrainHis Royal Highness Prince Salman bin Hamad Al KhalifaThe Crown Prince First Deputy Prime Minister & Deputy Supreme Commander04 Board of Directors05 Executive Management06 To our Shareholders08 CEO Message12 Operational Highlights14 Financial Highlights16 corporate Governance22 Products and Markets24 Clientele Profile30 Line 6 Expansion Project32 Safety, Health & Environment34 Recovery Journey of Line 536 Training and Development42 corporate Social Responsibility (CSR)44 Financial StatementsCONTENTS04 | Aluminium Bahrain (Alba) Annual Report 2017 BOARD OFDIRECTORSS haikh Daij bin Salman bin Daij Al KhalifaChairmanUwaidh K.

2 Al-HarethiDirectorYaser HumaidanDirectorAhmed Al JabrDirectorOsama M. Al ArrayedhDirectorMutlaq H. Al MorishedDirectorDr. Mohamed KameshkiDirectorSuha KarzoonDirectorYousif A. TaqiDirectorAli Al ShamraniDirector1234567891014259637810 Aluminium Bahrain (Alba) Annual Report 2017 | 05 EXECUTIVEMANAGEMENTTim MurrayChief Executive OfficerAli Al BaqaliDeputy Chief Executive Officer & Chief Supply Chain OfficerAmin SultanChief Power OfficerKhalid A. LatifChief Marketing OfficerWaleed TamimiChief Administration OfficerHassan NoorActing Chief Operations Officer12345614235606 | Aluminium Bahrain (Alba) Annual Report 2017I am pleased to report that Alba succeeded in demonstrating resilience against all odds and managed to achieve the highest production record of 981,016 metric tonnes per annum (mtpa) in is no doubt that Alba paid a hefty price with the Line 5 crisis; however, we look back at this incident as an opportunity to strengthen our business and a learning curve for the Line 6 Expansion Project.

3 I can confidently say that despite these challenges, we have emerged stronger today than ever Highlight/Summary(Year-ended 31 December 2017) 2017 was a year of change in Alba as the Company had an exceptional finish in terms of productivity, top-line and higher margins. Our resilience coupled with our focus on operational discipline has allowed us to propose BD million (US$ million) as dividend for 2017 equivalent to 26 fils per share. The dividend will be paid from March 21, 2018 to Alba s shareholders of record date March 07, 6 Expansion Project From a Blueprint to Reality The Line 6 Expansion Project, Alba s game-changer, will change the landscape of the Kingdom of Bahrain.

4 I am delighted to say that the Project - both Smelter and Power Expansion - has been performing exceptionally well, the advancing works have been very encouraging and the construction phase is on schedule. We are also very pleased that the site-works contracts have been awarded to local Bahraini companies, which will bring significant growth opportunities for the Kingdom s local businesses and economy. We have invested a lot to We conquered from within the challenges, we bounced back safe and we finished 2017 OURSHAREHOLDERS Aluminium Bahrain (Alba) Annual Report 2017 | 07ensure that the Line 6 Expansion Project operates more efficiently, thus creating long-term shareholder value.

5 This Project is transformational on many fronts as it will raise the bar for sustainability in the global aluminium industry by using cutting-edge technology, both for Potline 6 and the Power Expansion Project. Securing almost of Line 6 Expansion Project financing, the syndicated loan facility as well as the Export Credit Agency-covered facilities for Power Station 5 and Power Distribution System, underscores Alba s strong business fundamentals and the confidence the financial markets have placed in Alba and our Project. Looking ahead, we remain focused to progress with Line 6 Expansion Project and I am confident that we will deliver the First Hot Metal by 01 January 2019 to become the world s largest aluminium Rooted in our Operations Safety will always be on top of our mind in everything we do and will continue to remain an integral part of our operations.

6 Our Safety performance has been consistently improving and 2017 was no exception. We continue to maintain the highest Safety standards at the workplace for our employees and contractors alike, thus ensuring a strong Safety Year-AheadAlba s journey from the first primary aluminium smelter in Bahrain, in the Arabian Peninsula, to one of the largest smelters in the world has been an interesting one. As you can see, our exemplary performance speak for itself. Our strategy is strong as we see strong fundamentals in the aluminium industry and by seeking to always go beyond our limits, Alba will be transformed to become the largest smelter in the world upon the completion of Line 6 Expansion Project.

7 I am very confident we will accomplish what we have set-out to do, while at the same time, remain committed to the highest standards of governance, ethics and fairness to the interests of all our take this opportunity to express my sincere thanks and gratitude to the wise Leadership and Government of the Kingdom of Bahrain for their valuable guidance and generous support. I remain grateful to my fellow Board of Directors for their dynamic leadership in supporting Alba in our long-term success. I, also, express my sincere appreciation to Alba s Management Team for working tirelessly to transform challenges into successes as well as their commitment towards developing Alba from within.

8 I look forward to continuing this journey together in 2018, and most importantly, I applaud our committed employees for constantly raising the bar and for making Alba what it is today. Our future success rests on our ability to keep moving forward. We are here today to make things happen Warm Regards,Daij bin Salman bin Daij Al KhalifaChairman of the BoardAluminium Bahrain year, we strive to stretch our targets through continuous improvement TargetsObjectivesA reality which will transform Alba into being the largest smelter in the world upon its completionExpansionLine 6 Project To our Shareholders CEO Message corporate Governance Line 6 Expansion Project Financial Statements08 | Aluminium Bahrain (Alba) Annual Report 2017 TOMORROW will be different than TODAY2017 was one of Alba s most challenging years but also one of our most successful ones.

9 In 2017, Alba learned the Power of Resilience during the Line 5 Recovery. Safety continues to be our number One priority and there were numerous activities throughout the year to ensure our employees well-being. 2017 was marked by many highlights: There was again significant volatility with rising LME prices starting around US$ 1,700 per metric tonnes (mt) at the beginning of the year and ultimately exceeding US$ 2,200 per mt towards the end of 2017 on the back of a weaker US$ currency and Chinese winter production cutbacks. Alba faced one of the most painful events in our history with the Power Outage in April that resulted in the partial shutdown of Line 5 operations.

10 However, through Alignment, Direct Communication and most of all Teamwork, Alba was able to restore Line 5 in record time and has set a new industry benchmark for speed for potline recovery. Despite the Line 5 challenges, Alba had an exceptional finish to the year with production of 981,016 mt which was approximately 10,000 mt more than 2016 production volume. I believe that resilience was the key to our success in the past year and I would like to thank all the workers involved in restoring Line 5 operations both safely and quickly. As we look forward to 2018 we will continue to focus on all aspects of Safety as we prepare for the rise of Line 6 which will make Alba the largest smelter in the world.