Hindalco Industries Ltd   Investor Presentation     Standalone FY12
Presentation Structure      Highlights      Performance Review      Projects Progress2
Highlights and Financial Performance3
FY12: Highlights    Strong performance despite severe cost pressures    Portfolio strategy depicted its benefits as upstre...
Financial Performance (Standalone, FY 12)                                            (Unaudited)                          ...
Financial Performance (Standalone, Q4)                                                (Unaudited)` Cr               Q     ...
Robust Financial Performance…     LME ($/t)                        PBITDA (` cr)      2700                                ...
Business Environment8
FY12: A Challenging Year     Year started on an optimistic note with strong LME pricing amidst strong     investor appetit...
Al. LME: Softened again2700    2,663                                                                                      ...
Al: Cost pressures way ahead of LME         Relative Increase (FY12 over FY11)                                            ...
Performance Review12
Key External DriversAluminium LME ($/t)                         Other Drivers      2,500                                 (...
Al: Mitigating cost pressures Higher production through asset sweating and continuous improvement in efficiencies  ffi i i...
Al: Physical Performance - Annual        Alumina Output (kt)                                   Metal Output (kt)          ...
Al: Physical Performance – Quarter           Alumina Output (kt)                    Metal Output (kt)                     ...
Al: Revenue break up (Rs Crore) Metal                     Chemicals          FRP and Foils                              76...
Aluminium Financials     ` Cr         FY11      FY12     Change (%)     Net Sales    7,965     9,041       13.5     EBIT  ...
Copper Performance                     19
Cu: Performance Drivers Output was affected by inferior         But performance lifted through concentrate grade & planned...
Cu: Revenue Drivers (Rs Crore)     Cathode                              CCR           7,488                            ,  ...
Copper Financials `Cr          FY11      FY12     Change (%)                                     g ( ) Net Sales   15,902 ...
Projects Progress23
Utkal Refinery Heat Exchanger erected                             Turbine alignment in progress              CHP Stacker a...
Mahan Smelter & CPP          Pot Line Inside view          Fume Treatment Centre                  Turbine                 ...
Aditya Smelter & CPP                    Pot Room   Switch Yard    Cooling Tower                 Power Plant               ...
Hirakud FRP                 Hot Mill              Cold Mill                            27
Summary…. India-specific cost p        p            pressures continue – especially                                       ...
Thank you
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Hindalco q4 fy11-12_presentation

  1. 1. Hindalco Industries Ltd Investor Presentation Standalone FY12
  2. 2. Presentation Structure Highlights Performance Review Projects Progress2
  3. 3. Highlights and Financial Performance3
  4. 4. FY12: Highlights Strong performance despite severe cost pressures Portfolio strategy depicted its benefits as upstream business witnessed margin squeeze Aluminium – Record production efficiency gains production, Copper – Strong all-round performance Financing strengthened… Largest NCD offering in the recent times (Rs 3,000 Crore) Long Tenor, Attractive pricing Preferential warrant allotment to promoter (~ Rs 2,160 Crore) p ( ,4 Projects - In advanced stages
  5. 5. Financial Performance (Standalone, FY 12) (Unaudited) Change ` Cr FY11 FY12 (%) Net Sales 23,859 26,597 11.5 PBITDA 3,502 3,721 6.2 PBT 2,595 2 595 2,737 2 737 5.5 55 PAT 2,137 2,237 4.7 EPS (`) 11.17 11.69 4.7 5
  6. 6. Financial Performance (Standalone, Q4) (Unaudited)` Cr Q Q4 FY11 Q Q4 FY12 Change (%) g ( )Net Sales 6,846 7,647 11.7PBITDA 1,019 , 1,025 , 0.6 .PBT 787 779 (1.0)PAT 708 640 (9.7) (9 7)EPS (`) 3.70 3.34 (9.7) Q4 PBITDA maintained despite lower rupee LME and input cost surge 6
  7. 7. Robust Financial Performance… LME ($/t) PBITDA (` cr) 2700 1100 2600 2603 1045 1025 1000 2500 2400 2400 900 Improved quarterly 2300 845 performance through… 800 805 2200 2177 Higher volumes & VAP 2100 700 2089 Better efficiencies 2000 600 1900 1800 500 Q1 Q2 Q3 Q47 -----------FY12-----------
  8. 8. Business Environment8
  9. 9. FY12: A Challenging Year Year started on an optimistic note with strong LME pricing amidst strong investor appetite During the year LME rally fizzled out as global macro economic concerns re- emerged Cost push however continued especially energy push due to geo-political continued, geo political concerns & India specific coal issues Physical demand continued to remain strong even as inventory overhang continued… Of late, slowdown in China has clouded the demand outlook9
  10. 10. Al. LME: Softened again2700 2,663 World aluminium market had a LME Al ($/t)2600 750+kt surplus in Q1, 2012 p25002400 Consumption growth only 3.3%2300 in Q1 vs. 9.6% in 20112200 Macro-risks holding back LME 2,0472100 when 25-30% of global capacity2000 has cost above ruling LME abo e19001800 Global inventory at 12.7 mn tonne (102 days); return on n-11 ul-11 t-11 b-12 r-11 y-11 g-11 p-11 v-11 c-11 n-12 r-12 r-12 Jun Feb May Aug Oct Nov Dec Apr Mar Apr Sep Jan Ju warehousing deals positive at Cost curve supports current present LME level 10
  11. 11. Al: Cost pressures way ahead of LME Relative Increase (FY12 over FY11) >40% 40% 30% >30% >25% ~20% 8% Rupee LME Coal Caustic Crude FO derivatives11
  12. 12. Performance Review12
  13. 13. Key External DriversAluminium LME ($/t) Other Drivers 2,500 (vis-à-vis year-ago period) Q4 FY12 FY12 2,317 2,257 Coal C l 2,177 FO and carbon costs Q Q4 F11 Q Q4 FY12 FY11 FY12Exchange Rate (`/$ ) Copper TCRC 50.28 Sulphuric Acid 47.92 realization 45.56 Significant Cost p g f pressure 45.27 continues Q4 FY11 Q4 FY12 FY11 FY12 13
  14. 14. Al: Mitigating cost pressures Higher production through asset sweating and continuous improvement in efficiencies ffi i i Domestic sales up 5% to 489 kt Overall metal sales up 6% to 568 kt 8% increase in special alumina /hydrate sale, even as standard alumina sale declined on higher captive use Strong operational performance helped us tide over the rough external environment 14
  15. 15. Al: Physical Performance - Annual Alumina Output (kt) Metal Output (kt) 7%FY11 1,353 FY11 538 Ever highestFY12 1,355 , FY12 574 700 900 1100 1300 1500 200 300 400 500 600 Rolled Product Sales Extrusion Sales (Tonne) (Tonne) 3% FY11 35,033 35 033FY11 195,163 14% FY12 30,023FY12 201,254 Alupuram plant under lockout till Q3 15
  16. 16. Al: Physical Performance – Quarter Alumina Output (kt) Metal Output (kt) 4% Q4 FY11 344 Q4 FY11 139 Q4 FY12 345 Q4 FY12 144 Rolled Sales (Tonne) Extrusions Sales (Tonne) Q4 FY11 49,766 Q4 FY11 7,518 16% 12% Q4 FY12 8,744 8 744 Q4 FY12 55,68916
  17. 17. Al: Revenue break up (Rs Crore) Metal Chemicals FRP and Foils 767 783 10% 3,209 , 19% 4,044 4 044 2,924 3,409 FY11 FY12 FY11 FY12 FY11 FY12 Extrusions Others Strong top line 489 growth… 552 313 Primarily driven by 516 higher l hi h volumes & improved mix FY11 FY12 FY11 FY1217
  18. 18. Aluminium Financials ` Cr FY11 FY12 Change (%) Net Sales 7,965 9,041 13.5 EBIT 2,004 1,822 (9.1) ` Cr Q4 FY11 Q4 FY12 Change (%) Net Sales 2,211 2 211 2,499 2 499 13.0 13 0 EBIT 562 484 (14.0)18
  19. 19. Copper Performance 19
  20. 20. Cu: Performance Drivers Output was affected by inferior But performance lifted through concentrate grade & planned various initiatives … shutdown … More VAP: Higher proportion of CCR Cathode output (kt) productionFY11 336 Optimization of the marketing mix Greater value from selenium and ‘waste-to-wealth’ initiativesFY12 330 Increased usage of external scrap 150 200 250 300 350 Improved recovery and efficiencies20
  21. 21. Cu: Revenue Drivers (Rs Crore) Cathode CCR 7,488 , 7,239 6,261 10% 5,683 FY11 FY12 FY11 FY12 Fertilizers & Acids Precious Metals & others 3,047 1,028 56% 31% 1,949 782 FY11 FY12 FY11 FY1221 Robust business model delivered strong numbers
  22. 22. Copper Financials `Cr FY11 FY12 Change (%) g ( ) Net Sales 15,902 17,575 10.5 EBIT 602 802 33.2 ` Cr Q4 FY11 Q4 FY12 Change (%) Net S l Sales 4,637 4 637 5,154 1 4 11.1 11 1 EBIT 206 293 42.5 22
  23. 23. Projects Progress23
  24. 24. Utkal Refinery Heat Exchanger erected Turbine alignment in progress CHP Stacker and Reclaimer Erection of Rod Mill 24
  25. 25. Mahan Smelter & CPP Pot Line Inside view Fume Treatment Centre Turbine T bi Power Pl P Plant Vi View 25
  26. 26. Aditya Smelter & CPP Pot Room Switch Yard Cooling Tower Power Plant Chimney 26
  27. 27. Hirakud FRP Hot Mill Cold Mill 27
  28. 28. Summary…. India-specific cost p p pressures continue – especially p y relating to coal Operational excellence helped us tide over these challenging times Robust business model delivering results 28
  29. 29. Thank you
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