Hindalco Industries LtdInvestor Presentation

Q1 FY12

2

Performance Review

Presentation Structure

Projects Update

Highlights

Highlights – Q1 FY12

3

Despite strong Cost Push & adversities

Momentum continues …

Strong Performance by Novelis

Projects progressing

EBITDA

PAT

EPS

16%

21%

20%

1,045

644

3.4

NET SALES 6,03116%

0

200

400

600

800

1000

1200

FY11 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY12 Q1

901

780 801

1020

1045

(EBITDA, ` Cr)

Highlights - Improving Trend…

4

Disruptions at Hirakud

& Dahej

Key Business Drivers and Impact

Driver Change ( %) Impact

Aluminium LME

Average($/ton)24

Copper TC/RC

Benchmark (c/lb)22

Exchange

Rate (`/$)(2)

Coal India

Prices30%

Crude derivatives >20%

5

Financial Performance

6

` Cr Q1 FY11 Q1 FY12 Change (%)

Net Sales 5,178 6,031 16

PBITDA 901 1,045 16

PBT 673 803 19

PAT 534 644 21

EPS (`) 2.8 3.4 20

Other income higher by `109 crs reflecting higher treasury corpus

and yield ; and `69 crs dividend from ABML

Performance Review

7

Al: Supportive LME but ….

8

2096 2089 2343 2500 2603

95,481 97,097

1,05,110

1,13,1761,16,387

60000

70000

80000

90000

100000

110000

120000

1200

1400

1600

1800

2000

2200

2400

2600

2800

Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12

LME$/t `/t

But there were many challenges …

Across the board increase in key input prices

India specific challenges:

Coal cost increase

Uncertain regulatory regime

0

500

1000

1500

2000

2500

2001 2005 2010 Mid-2011

1,018

1,328

1,650

2,015

1,288

1,693

2,031

2,400

Average 90th Percentile

Cost pressures: A Global Phenomenon …

9

Energy

Carbon

Alumina

Shifting Global cost curve

($/ton of Aluminium)

Upward trend likely to continue for smelters that depend upon

external energy / alumina sources

(Source: Industry Estimates)

Aluminium:

10

341 335

Q1 FY11 Q1 FY12

Alumina (kt)

140 140

Q1 FY11 Q1 FY12

Aluminium (kt)

69.93

Production

19 22

3637

Q1 FY11 Q1 FY12

Specials

Standard

87.8% 90.4%

Q1 FY11 Q1 FY12

Export

Domestic

Increase in Hydrate / Alumina sales

with continued focus on specials

Maximized domestic

sale of metal …

55 kt59 kt

Aluminium Business: Financial Performance

11

Q1 FY11 Q1 FY12 Change

(%)

Net Sales &

Operating Revenue1,867 2,093 12.1

EBIT 552 599 8.5

(` cr)

Input cost pressures & stronger rupee partly negated the gains of

strong LME….

Downstream sales were lower due to sluggish demand and

Alupuram lock-out since Feb 2011.

Novelis Update (Q1 FY12)

12 Record First Quarter Results

Shipments Up 3% to 767 Kilotonnes

Net Sales Up 23% to $3.1 Billion

Record Adjusted EBITDA Up 16% to $306 Million

Free Cash Flow Before CapEx of ($127) Million

Liquidity of $865 Million

Net Income of $62 Million

(Millions)

Novelis : Adjusted EBITDA Trend

Driving Consistent & Predictable Results

263

291

238

280

306

$800

$850

$900

$950

$1,000

$1,050

$1,100

$1,150

$0

$50

$100

$150

$200

$250

$300

$350

Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12

TTM EBITDAQuarterly EBITDA

Qu

art

erl

yT

TM

Copper: Operational Performance

76

73

Q1 FY11 Q1 FY12

Cathode Production (kt)

Copper production down 3kt

~20 kt output lost due to shutdown

14

17% higher EBIT (YOY) despite volume loss….

• Improved Tc/Rc

•Improved operating efficiencies

•Higher DAP realisations…

………Resulted in improved

financial performance

despite……

…Cost pressures & higher

working capital requirement….

Copper: Financial Performance

15

Q1 FY11 Q1 FY12 Change

(%)

Net Sales &

Operating Revenue3,314 3,940 18.9

EBIT 124 145 16.8

(` cr)

ABML Update

16

Nifty Sulfide Production declined 24%…

15,665

11,888

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Q1 FY11 Q1 FY12

Copper in Conc. (tons)

… Due to a sharp decline in head

grade, which is in line with the mine

plan

1.0

2.0

3.0

Q1 FY11 Q1 FY12

3.05

2.20

Copper Grade (%)

• Copper prices remained strong

•Mt Gordon operations have re-started and production ramp up is

progressing

• Cost pressures and AUD strength are key challenges

28%

Key External Drivers - Outlook

17

Driver Current Assessment Impact

LME • Investor appetite is supportive, but concerns

galore

INR USD • Uncertainty over FII flows may hold rupee

appreciation, despite general USD weakness

Energy,

Input prices

• Upward pressure related to coal and carbon costs

TcRc • 2011 terms likely to be favourable to smelters vis-

à-vis last year

By products • Acid prices have firmed up, DAP subsidy

announced is higher

Projects Update

18

Greenfield Projects Update

Project ProgressExpected

completion

Mahan Aluminium, MP

• Project finance completed (contracted debt `7,875 Cr)

• Drawdown till date: ` 3,400 crs• 17,000 people at site• Forest clearance for coal block ,tapering linkage applied

First Metal End 2011

Utkal Alumina, Orissa

• >9,000 people at site• Project finance completed (debt tied up ` 4,906 Cr)

• Drawdown till date over ` 2,200 crs

Second half 2012

Aditya Aluminium, Orissa

• Forest Stage-II clearance received • Site activities at advanced stage• Financing option under evaluation

Early 2013

Aditya Refinery, Orissa

• Majority land acquired• Water drawl agreement obtained 2014

Jharkhand Aluminium

• Land acquisition started• Coal mine allotted jointly

2015

19

Activity at Project Sites Mahan Smelter

20

GTC1 ID Fan foundations & Stack :

Pot room “A” inside view Cathode Sealing Shop-Eqpts. Cmmnsg.

Pot Annexe bldg. and PTMs erection Smelter Overview

Activity at Project Sites Mahan CPP

21

Power House Building CHP Crusher and Stacker Reclaimer

Power Plant ViewPlacing of Stator #2 on position

Activity at Project Sites Utkal Refinery

Predisilication Area Ball Mill Erection

Captive Power Plant Calciner Erection

Update on Projects: Brownfield

Project Scope Expected completion

Hirakud expansion Smelter: 155 to 213 ktpa Early 2012

FRP, Hirakud

Transfer from Novelis UK plant

to produce a wide product

range including can body stock

End 2011

Pinda (Brazil)Significant increase in FRP

capacity to 600 ktpaEnd 2012

Korea expansion

Addition of 350kt increases

the annual capacity to

1,000kt

End 2013

Oswego, North

America expansion

Additional capacity of 200 kt

for automotive applicationsMid 2013

23

FRP - HirakudCold Mill Bay-Crane ErectionCold Mill Base Frame Erection

Hot Mill Table Roll FoundationHot Mill Bay

Pinda, Brazil Mill Expansion

Thank you

26

27

Certain statements in this report may be “forward looking statements”

within the meaning of applicable securities laws and regulations. Actual

results could differ materially from those expressed or implied.

Important factors that could make a difference to the company’s

operations include global and Indian demand supply

conditions, finished goods prices, feed stock availability and

prices, cyclical demand and pricing in the company’s principal

markets, changes in Government regulations, tax regimes, economic

developments within India and the countries within which the company

conducts business and other factors such as litigation and labour

negotiations. The company assume no responsibility to publicly

amend, modify or revise any forward looking statement, on the basis of

any subsequent development, information or events, or otherwise.

Forward Looking & Cautionary Statement

Aluminium Production

In Tonnes Q1FY11 Q1FY12 Variance

Alumina 341,419 334,587 -2%

Metal 140,061 140,387

FRP 51,373 49,544 -4%

Extrusions 9,617 7,321 -24%

Foil 4,781 4,750 -1%

Wire Rods 23,326 23,403

Copper Production

Production lower due to bi-annual shutdown

Production Units Q1 FY11 Q1 FY12 % chg

Copper Cathodes MT 76,309 73,192 -4%

CC Rods : Own MT 40,708 33,701 -21%