Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q4 FY17 Earnings Presentation
29 slides from Hindalco Industries's earnings presentation, May 30, 2017
Slide 1: Investor Presentation – Q4 FY17
Hindalco Investor Presentation – Q4 FY17 Mumbai, May 30, 2017 Excellence by Design
Slide 2: Forward Looking & Cautionary Statement
Forward Looking & Cautionary Statement 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
Slide 3: Agenda
Agenda 1 Key Highlights 2 Economy & Industry 3 Result Highlights 4 Operational and Financial Performance Aluminium (India) Copper Novelis Excellence by Design 3
Slide 4: Key Highlights
Key Highlights Excellence by Design
Slide 5: Key Highlights: Strengthening Balance Sheet
Key Highlights Strengthening Balance Sheet Raised USD 500 mn through Qualified Institutional Placement (QIP) ◊ Largest non bank QIP in last 2 years ◊ Generated demand in excess of USD 1.5 bn (3x Subscription) with strong demand from FII ◊ Priced at 2.7% premium to floor price & zero discount to cl
Slide 6: Key Highlights
Key Highlights Coal Security With new coal linkage in fiscal year 2017 coal security improved to two thirds of annual coal requirement for Aluminium business Aluminium India Record production of Aluminium at 1,266 Kt and Alumina at 2,886 Kt Record EBITDA at Rs. 3,473 crore vs. Rs. 2,009 crore
Slide 7: Economy and Industry
Economy and Industry Excellence by Design
Slide 8: Economy
Economy Global Economy – Gaining momentum amidst challenges ○ IMF projected world growth is expected to rise from 3.1 % in 2016 to 3.5 % in 2017 ○ China registered more than expected growth of 6.9% in Q1 CY 2017; Going forward growth is expected to moderate. ○ European Commission expects Euro area t
Slide 9: Aluminium Industry
Aluminium Industry Environmental & Supply side restrictions in Aluminium Prices Trend (USD/t) China expected to drive LME up 1,9311,950 1857 1,902 ◊ New smelting capacity growth is expected 1,791 1,7371,728 to slow down significantly 1,666 1,6291,639 1,5711,5511,594 1,592 ◊ Under construction proj
Slide 10: Aluminium Industry Drivers
Aluminium Industry Drivers ○ Realization improved significantly in H2FY2017 driven by Trump infra plan, surge in input cost and expected production cut in China ○ Regional premium moderated in FY2017 ○ Domestic market remains oversupplied due to imports and production enhancements Key macro drivers
Slide 11: Copper Industry
Copper Industry ○ Mine disruption in Chile and exports ban from Indonesia impacted concentrate supply and thereby affecting TcRc in H2 FY2017 ○ Increase in scrap availability affecting the refined consumption especially in the developed world - Growth in global refined copper consumption is likely t
Slide 12: Result Highlights FY17 - Strong operating performance
Result Highlights FY17- Strong operating performance Excellence by Design
Slide 13: FY17 – Standalone Highlights
FY17 – Standalone Highlights Revenue Rs. 39,383 crore Higher Aluminium volumes and realization (Y-o-Y up 7%) EBITDA Lower input cost Rs. 5,819 crore Stable operations (Y-o-Y up 35%) Net Profit Rs. 1,557 crore Overall strong performance based on stable (Y-o-Y up 182%) operations Utkal EBITDA
Slide 14: Operational Performance Aluminium (India)
Operational Performance Aluminium (India) Excellence by Design
Slide 15: Production Trend
Production Trend Alumina (KT) includes Utkal VAP incl. Wire Rod (KT) 2,680 2,886 481 423 1% 6% 14% 8% 703 744 709 118 119 125 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Metal (KT) Strong production growth with increase 1,266 1,133 by 8% for Alumina and 12% for Metal - 3% P
Slide 16: Utkal
Utkal Production (KT) 1,500 1,396 Plant achieved operations at designed capacity 7% 364 393 361 Cash cost of Alumina refinery is amongst the lowest in the world Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Excellence by Design 16
Slide 17: Operational Performance Copper
Operational Performance Copper Excellence by Design
Slide 18: Production
Production Cathode (KT) CC Rods (KT) 388 376 158 150 19% 19% (3)% (5)% (3)% (3)% 93 94 111 40 32 38 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 DAP (KT) ○ Cathode & DAP production 324 301 (10)% impacted mainly due to planned shutdown (7)% 69 72 62 ○ CC rod production impacted
Slide 19: Operational Performance Novelis
Operational Performance Novelis Excellence by Design
Slide 20: Key Highlights
Key Highlights Total Shipments (KT) ○ Aluminium Auto sheet demand continued to 3,123 3,067 be robust Share of Automotive shipments at 18% up from 15% last year. (2)% 788 750 790 ○ Lower can shipments mainly due to weaker economic conditions in Brazil and the Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Middl
Slide 21: Financial Performance
Financial Performance Excellence by Design
Slide 22: Financial Highlights – Standalone
Financial Highlights – Standalone (Rs. crore) Q4 Q3 Full Year Particulars FY17 FY16 FY17 FY17 FY16 Revenue from Operations 11,747 9,263 9,915 39,383 36,713 Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium 918 837 876 3,473 2,009 Copper 497 384 330 1,456 1,467 Others 155 166 200 890 8
Slide 23: Aluminium Standalone
Aluminium Standalone Revenue (Rs. crore) EBITDA (Rs. crore) 19,986 3,473 18,366 9% 10% 2,009 73% 9% 5,071 4,917 5,548 837 876 918 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 • Strong performance on account of steady plant operations, higher volumes, supportive macro factors a
Slide 24: Utkal
Utkal EBITDA (Rs. crore) 717 672 138% (6)% 265 112 140 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 • Strong performance on back of stable operations • During FY17 international alumina prices were relatively lower impacting Utkal’s EBITDA. However lower alumina prices result in lower input cost for Hindalco E
Slide 25: Copper
Copper Revenue (Rs. crore) EBITDA (Rs. crore) 1,467 1,456 19,408 18,362 30% 29% 48% (1)% 6% 6% 497 6,202 384 330 4,194 5,000 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 • Revenue up due to higher overall realization • EBITDA for FY17 slightly lower vs. last year: Lower volume
Slide 26: Novelis
Novelis Revenue (USD billion) Adjusted EBITDA* (USD million) 9.9 9.6 1,085 963 6% 9% 13% (3)% 277 255 292 2.4 2.3 2.6 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 Q4 FY16 Q3 FY17 Q4 FY17 FY16 FY17 • EBITDA grew by 13% driven by higher auto shipments, operating efficiencies and better metal mix with higher perc
Slide 27: Financial Highlights - Consolidated
Financial Highlights - Consolidated (Rs. crore) Full Year Particulars FY17 FY16 Revenue from Operations 102,631 101,202 Earning Before Interest, Tax and Depreciation (EBITDA) Aluminium 4,033 2,654 Copper 1,438 1,588 Novelis 7,194 5,039 Others 894 723 Total EBITDA 13,558 10,004 PBDT 7,816 4,870 Earni
Slide 28: Hindalco: Sustainable Performance
Hindalco: Sustainable Performance Stronger Balance Sheet ○ Accelerated the pace of deleveraging ○ Robust performance on the back of stable plant operations along Robust Operational Performance with higher Aluminium prices ○ GP IV/4 & GP IV/5 coal mines reached their peak capacity Improved Coal Secur
Slide 29: Thank You
Thank You REGISTERED OFFICE Century Bhavan, 3rd Floor, Dr. Annie Besant Road, Worli, Mumbai 400 030 Telephone- +91 22 6662 6666 Website: www.hindalco.com E mail: hindalco@adityabirla.com Corporate Identity No. L27020MH1958PLC011238 Excellence by Design