Novelis Inc.

Novelis — Merger or Acquisition (April 2020)

11 slides from Novelis's merger presentation, Apr 14, 2020

  1. Slide 1: Closed Acquisition of Aleris

    CLOSED ACQUISITION OF ALERIS April 14, 2020 © 2020 Novelis

  2. Slide 2: Safe Harbor Statement

    SAFE HARBOR STATEMENT Forward-looking statements Statements made in this presentation which describe Novelis' intentions, expectations, beliefs or predictions may be forward-looking statements within the meaning of securities laws. Forward-looking statements include statements preceded by, followed

  3. Slide 3: Strong Strategic Rationale for Transaction

    STRONG STRATEGIC RATIONALE FOR TRANSACTION Metric Entire With Lewisport Aleris Portfolio & Duffel Divestitures China Integration     Aerospace Participation  Auto Diversification Achieved through and Growth organic growth Run-Rate Synergies $150 million $150 million Solidifies Novelis’ global l

  4. Slide 4: Financial Overview

    FINANCIAL OVERVIEW  On April 14, 2020, closed Aleris acquisition for ~$2.8 billion, including equity consideration of $825 million1 and ~$2.0 billion for the assumption or extinguishment of Aleris debt  Aleris trailing twelve month Adjusted EBITDA $388 million2 implies 7.2x multiple, in line with

  5. Slide 5: Transaction Financing and Liquidity

    TRANSACTION FINANCING AND LIQUIDITY  Acquisition debt-funding at Novelis in place  $775 million 5-year term loan at LIBOR + 1.75%  $1,100 million 1-year bridge loan at LIBOR +0.95% Approximate Sources and Uses $ billions Uses Sources Equity1 0.8 Bridge loan 1.1 Estimated net debt 2.0 Secured term

  6. Slide 6: Strong Reported Standalone Results

    STRONG REPORTED STANDALONE RESULTS  Trailing twelve months ending 12/31/19 as reported for legacy Novelis & Aleris Novelis Aleris FRP Shipments (kilotonnes) 3,332 858 Revenue ($ millions) 11,575 3,376 Adjusted EBITDA ($ millions) 1,446 388 Adjusted EBITDA/ton ($) 434 452 Net Debt ($ millions) 3,394

  7. Slide 7: Novelis Capabilities, Post Acquisition

    NOVELIS CAPABILITIES, POST ACQUISITION Novelis will operate under Four Value Streams  Can  Automotive  Aerospace 33  Specialties, including applications for: ~15,000 9 Manufacturing  Building &  HVAC Employees Countries Locations Construction  Signage &  Transportation Printing Employees, co

  8. Slide 8: Committed to Run-Rate Cost Synergies

    COMMITTED TO RUN-RATE COST SYNERGIES %; Time to Description Achieve • Acquisition fully integrates our existing Asia auto business Transformational • Gain SHFE access for ~200kt of auto 45-50%; Synergies cold coils produced at Zhenjiang 3-5 years • Closed loop scrap benefit in Asia • $250M-$300M inv

  9. Slide 9: Closing Remarks & Next Steps

    CLOSING REMARKS & NEXT STEPS  Integration of Aleris into Novelis to commence immediately, excluding Lewisport and Duffel  Continue working with Liberty House to close Duffel transaction, subject to China approval  Continue working with the U.S. Department of Justice to define timeline and terms f

  10. Slide 10: Appendix

    Novelis APPENDIX © 2020 Novelis

  11. Slide 11: 33 Manufacturing Locations in 9 Countries

    33 MANUFACTURING LOCATIONS IN 9 COUNTRIES Europe North America Asia South America Küsnacht, Switzerland Atlanta, Georgia Seoul, South Korea São Paulo, Brazil Novelis Europe Regional HQ Novelis Global Headquarters Novelis Asia Regional HQ Novelis South America and North America Regional HQ Regional H

Novelis — Merger or Acquisition (April 2020) on 6ix