Slide 1: Hindalco Industries Ltd Investor Presentation Standalone FY12
Hindalco Industries Ltd Investor Presentation Standalone FY12
Slide 2: Presentation Structure
Presentation Structure Highlights Performance Review Projects Progress 2
Slide 3: Highlights and Financial Performance
Highlights and Financial Performance 3
Slide 4: FY12: Highlights
FY12: Highlights Strong performance despite severe cost pressures Portfolio strategy depicted its benefits as upstream business witnessed margin squeeze Aluminium – Record production production, efficiency gains Copper – Strong all-round performance Financing strengthened… Largest NCD offering in
Slide 5: Financial Performance (Standalone, FY 12)
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 55 5.5 PAT 2,137 2,237 4.7 EPS (`) 11.17 11.69 4.7 5
Slide 6: Financial Performance (Standalone, Q4)
Financial Performance (Standalone, Q4) (Unaudited) ` Cr Q4 FY11 Q Q4 FY12 Q Change g (%) ( ) Net Sales 6,846 7,647 11.7 PBITDA 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
Slide 7: Robust Financial Performance…
Robust Financial Performance… LME ($/t) PBITDA (` cr) 2700 1100 2600 2603 1045 1025 1000 2500 2400 2400 900 Improved quarterly 2300 845 performance through… 800 805 2200 2177 9Higher volumes & VAP 2100 700 2089 9Better efficiencies 2000 600 1900 1800 500 Q1 Q2 Q3 Q4 7 -----------FY12-----------
Slide 8: Business Environment
Business Environment 8
Slide 9: FY12: A Challenging Year
FY12: A Challenging Year Year started on an optimistic note with strong LME pricing amidst strong investor appetite During the year LME rally fizzled out as global macro economic concerns re- emerged Cost push however continued, continued especially energy push due to geo geo-political politic
Slide 10: Al. LME: Softened again
Al. LME: Softened again 2700 2,663 World aluminium market had a LME Al ($/t) 2600 750+kt surplus p in Q1, 2012 2500 2400 Consumption growth only 3.3% 2300 in Q1 vs. 9.6% in 2011 2200 Macro-risks holding back LME 2,047 2100 when 25-30% of global capacity 2000 has cost above abo e ruling LME 190
Slide 11: Al: Cost pressures way ahead of LME
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 derivatives 11
Slide 12: Performance Review
Performance Review 12
Slide 13: Key External Drivers
Key External Drivers Aluminium LME ($/t) Other Drivers 2,500 (vis-à-vis year-ago period) Q4 FY12 FY12 2,317 2,257 C l Coal 2,177 FO and carbon costs Q4 F11 Q Q4 FY12 Q FY11 FY12 Exchange Rate (`/$ ) Copper TCRC 50.28 Sulphuric Acid 47.92 realization 45.56 Significant g f Cost ppressure 45.27 continu
Slide 14: Al: Mitigating cost pressures
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
Slide 15: Al: Physical Performance - Annual
Al: Physical Performance - Annual Alumina Output (kt) Metal Output (kt) 7% FY11 1,353 FY11 538 Ever highest FY12 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 35,033 FY11 195,163 14% FY12 30,023 FY12 201,254 Alupuram p
Slide 16: Al: Physical Performance – Quarter
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 55,689 16
Slide 17: Al: Revenue break up (Rs Crore)
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 hi h volumes higher l & improved mix FY11 FY12 FY11 FY12 17
Slide 18: Aluminium Financials
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
Slide 19: Copper Performance
Copper Performance ADITYA BIRLA RA
Slide 20: Cu: Performance Drivers
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) D production FY11 336 D Optimization of the marketing mix Greater value from selenium and FY12 33
Slide 21: Cu: Revenue Drivers (Rs Crore)
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 FY12 21 Robust business model delivered strong numbers
Slide 22: Copper Financials
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 Sales Sl 4 637 4,637 5,154 1 4 11 1 11.1 EBIT 206 293 42.5 22
Slide 23: Projects Progress
Projects Progress 23
Slide 24: Utkal Refinery
Utkal Refinery Heat Exchanger erected Turbine alignment in progress CHP Stacker and Reclaimer Erection of Rod Mill 24
Slide 25: Mahan Smelter & CPP
Mahan Smelter & CPP Pot Line Inside view Fume Treatment Centre T bi Turbine P Power Pl Plant Vi View 25
Slide 26: Aditya Smelter & CPP
Aditya Smelter & CPP Pot Room Switch Yard Cooling Tower Power Plant Chimney 26
Slide 27: Hirakud FRP
Hirakud FRP Hot Mill Cold Mill 27
Slide 28: Summary….
Summary…. India-specific p cost ppressures continue – especially p y relating to coal Operational excellence helped us tide over these challenging times Robust business model delivering results 28
Slide 29: Thank you
ADITYA BIRLA HINDALCO Thank you