Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Investor Day (April 2023)
47 slides from Hindalco Industries's investor day presentation, Apr 4, 2023
Slide 1: Stock exchange filing letter for Investor Day 2023
April 04, 2023 BSE Limited National Stock Exchange of India Banque Internationale A Luxembourg Scrip Code: Limited Societe Anonyme 500440 Scrip Code: HINDALCO Sub: Investor Presentation for the ‘Investor Day 2023’, Conference scheduled on April 04, 2023 by Hindalco Industries Limited (‘the Company’)
Slide 2: Investor Day 4th April 2023
INVESTOR DAY 4TH APRIL 2023
Slide 3: Safe Harbor Statement
Safe Harbor Statement Forward-looking statements Statements made in this presentation which describe the company's' intentions, expectations, beliefs or predictions may be forward-looking statements within the meaning of securities laws. Forward-looking statements include statements preceded by, fol
Slide 4: Contents
Contents 01 About Us 02 Update on Sustainability 03 Market Outlook 04 Update on Growth Projects Financial 05 Strength 06 Key Takeaways 03
Slide 5: Hindalco is a leading global industry player
Hindalco is a leading global industry player Novelis | Largest Hindalco | Largest aluminum FRP fully integrated India Ops Novelis producer and recycler aluminum player Aluminium Flat Rolled in the world in India Aluminium Copper Products (FRP) Capacity Capacity Utkal Alumina One of the largest Alumi
Slide 6: Strategic Priorities Way Forward
Strategic Priorities Way Forward Portfolio Enrichment Advancing from Strong ESG manufacturing company to manufacturing solution Commitment Value Enhancing Focus on ESG by taking provider Prudent Capital Growth sustainability initiatives Enrich product mix Structure Focus on shareholder value across
Slide 7: Sustainability
Sustainability Our ESG initiatives to create a sustainable world together
Slide 8: Sustainability is a virtuous circle that encompasses nature, climate, our employees and communities
Sustainability is a virtuous circle that encompasses nature, climate, our employees and communities Highlights ESG Targets 2.2 mn tons of aluminium Carbon neutral by 2050 scrap recycled in FY22 at Water positive by 2050 Novelis Bio-Diversity Communities ~80% of waste re-used No net loss in bio-diver
Slide 9: Novelis' ESG Ambitions
Novelis’ ESG Ambitions To be the world’s leading provider of low-carbon, sustainable aluminium solutions that advance 30%* Carbon-neutral our business, industry, and society reduction towards the benefits of a circular in carbon by 2050 footprint economy. by 2026 10% 10% 20% Reduction in Reduction i
Slide 10: Circularity is at the core of our strategies
Circularity is at the core of our strategies Infinitely Recyclable Bauxite Alumina Casting + FRP + Recycling – Scrap Smelting Fabrication Mining Refining Recycling Extrusions Collection >50% red mud re-use or >100% fly ash Novelis recycled 57%* of Novelis Significant CO2 >2.3mn tons per annum re-use
Slide 11: Corporate targets are mostly common for climate change
Corporate targets are mostly common for climate change Fortune Global 500 companies’ nature-related targets and acknowledgments, % share Acknowledgment Climate change 83 15 2 and target set Freshwater Acknowledgment 25 49 26 without target consumption No Acknowledgment Chemical and 20 41 39 or targe
Slide 12: Hindalco's target - No net loss in bio-diversity by 2050
Hindalco’s target - No net loss in bio-diversity by 2050 Achievements 20% addition in Seed collection from number of native 4500 SQM Active Introduced BMP at 4 local forests to developed species from FY’22 to of Miyawaki bird conservation new mining clusters indigenous species FY’23 in 3 BMP sites P
Slide 13: Roadmap to carbon neutral by 2050
Hindalco Continues to build out and refine its roadmap to carbon neutral by 2050 Novelis Hindalco FY16-FY23* Primary Aluminum + Downstream -19% tCO2e Absolute -24% tCO2e/t Intensity 25% tCO2e/t intensity -30% tCO2e Absolute 25 -44% tCO2e/t Intensity 18.5% 20.5% 30.0 19.9 20.4 CO2e Emissions Intensit
Slide 14: Key Sustainability Projects
Key Sustainability Projects Novelis Utkal Net Zero CO2 Significant Red Lab Valais, Mineralization Renewables Mud Sierre with Red Mud Pipeline Roads Switzerland Round the Wind - Mahan Novelis Clock Renewable Solar Spent Enhanced Energy Hybrid Pot Line Crusher recycling project capabilities 13
Slide 15: Hindalco is in the top 1% S&P Global ESG score in the aluminium industry
Hindalco is in the top 1% S&P Global ESG score in the aluminium industry Industry Distinctions 2023 Top 1% S&P Global ESG Score (S&P Global ESG Score (as of Feb 7,2023) Hindalco Industries Limited* India 83 Top 10% S&P Global ESG Score Alcoa Corporation United States 77 *S&P Global Industry Mover In
Slide 16: Novelis Near Term Outlook
Novelis Near Term Outlook
Slide 17: Market Leader with Unmatched scale & presence
Market Leader with Unmatched scale & presence Unmatched Scale with Global Presence Key Facts and Figures Fiscal Year 2022 FRP Shipments 3,858kt Fiscal Year 2022 Novelis Shipments by Region $17.1Bn $2.0Bn 3,858kt $530 South Revenue Adj. EBITDA FRP Shipments Adj. EBITDA America 16% 16% per tonne North
Slide 18: Macro Headwinds muting Near-term performance
Macro Headwinds muting Near-term performance Q3FY23 a trough, but expect headwinds to Mitigating actions persist into FY24 Volatile energy Select end-market $525 Adjusted challenges Working Operational & other cost • Strength in automotive capital & and commercial EBITDA/ton inflation & aerospace ma
Slide 19: Short-term trends impact can sheet demand in CY2022-2023
Short-term trends impact can Sheet demand in CY2022-2023 Lack of Promotional Activity Brand owners’ price increases & lower promotion leading to lower volumes Normalisation in patterns & channel Reverting to normal consumption patterns with more on-premise post-pandemic Supply chain challenges 2022
Slide 20: Novelis Market Outlook
Novelis Market Outlook
Slide 21: Long-Term Cansheet Demand Remains Robust in All regions
Long-Term Cansheet Demand Remains Robust in All regions Novelis is the largest supplier of beverage can Despite recent disruptions, market sheet with 40% global market share (ex-China), demand remains strong with 3-4% shipping over 2.2Mt of can sheet in FY22 CAGR in all regions Global Can Sheet Dema
Slide 22: North America Demand Requires Bay Minette Investment
North America Demand Requires Bay Minette Investment Novelis’ new low-carbon, state-of-the art aluminum Supply/Demand imbalance supports North America investment recycling and rolling facility in Alabama will serve kt North American Can Sheet Market growing demand for aluminum beverage can sheet and
Slide 23: Electrification will drive robust Long-Term Growth in Automotive Sheet
Electrification will drive robust Long-Term Growth in Automotive Sheet Global Light Vehicle Production & Electric Vehicle Share Millions of vehicles Growth Trends and Drivers Pillars Vehicle • Near term (CY23-25) global vehicle volume expected to have a CAGR of 4% due to pent-up demand Build Rate •
Slide 24: Novelis Automotive well Positioned to capture growth
Novelis Automotive well Positioned to capture growth Global Aluminium FRP Demand Novelis FY23 Market Share (millions tonnes) 40% 35% 20% North America Europe Asia Novelis aluminum sheet capacity expansion aligned with market demand projections Lightweighting Alumobility, the Global network of Leader
Slide 25: Diverse Specialties Portfolio is High-End & Regionally focused
Diverse Specialties Portfolio is High-End & Regionally focused Europe Broadly more cyclical markets North America aligned with economic growth; Exceptionally diverse average long-term market Leading supplier of high customer base Asia growth ~3-4% High end focused Asia recycled content continuous ca
Slide 26: Leverage our preferred supplier Position to protect market share
Leverage our preferred supplier Position to protect market share Our long-term Our global strategy Deliver global growth as a aspiration reliable and stable partner ~ 25% global market share Differentiate via increased recycling Become #1 content and vertical integration in Europe/Asia Capitalize on
Slide 27: Novelis Updates on Growth Projects
Novelis Updates on Growth Projects
Slide 28: Transformational strategy intact, Prioritized spending
Transformational strategy intact, Prioritized spending Committed to our transformational organic Pacing spend of growth capital Timing of further potential investment growth journey to further strengthen industry expenditures, prioritizing $3.3 billion of opportunities will be based on cash flow lea
Slide 29: India Business Market Overview & Our Initiatives
India Business Market Overview & Our Initiatives
Slide 30: Domestic Aluminium Consumption Expected to Double by FY33
Domestic Aluminium Consumption Expected to Double from ~4.5 MT in FY23 to ~9.0 MT in FY33 Outlook: 3rd largest market in Outlook: 3rd largest market in the World by 2030 the World by FY33 Demand drivers: Focus on light Demand drivers: Increase in weighting and increasing share urban housing demand,
Slide 31: Hindalco Aluminium Downstream New value pools with solutions
Hindalco Aluminium Downstream New value pools with solutions EV Applications – Aluminium Battery Enclosures Lightweighting commercial vehicles – Aluminum Trailers A solution provider for OEMs and access an Aim to improve cost and sustainability of extended value pool logistics Co-design and manufact
Slide 32: Domestic Copper Consumption is Expected to double by FY33
Domestic Copper Consumption is Expected to double from ~1.0 MT in FY23 to ~2.0 MT in FY33 EV Growth accelerating Rapid urbanization and on the back of GOI push Make in India and targeted housing growth as well as consumer PLIs moving copper accelerating home demand. (Copper demand to India demand In
Slide 33: Hindalco Copper – Moving further Downstream and towards circularity
Hindalco Copper – Moving further Downstream and towards circularity Superior Copper Alloy Rods First Inner Grooved Copper Tube for high-speed railways facility Current Capacity: 5 KTPA Planned Capacity : 25 KTPA Copper Magnesium rod with Thin-walled small diameter grooved superior tensile strength t
Slide 34: Global & Domestic Specialty Alumina Consumption – a promising outlook
Global & Domestic Specialty Alumina Consumption – a promising outlook Increase in global demand Increasing demand for high Demand for specialty for high-quality refractories crystalline alumina and aluminium hydroxide is for cleaner steel activated alumina products. increasing due to stringent manuf
Slide 35: Hindalco Specialty Alumina - Cutting edge products launched
Hindalco Specialty Alumina - Cutting edge products launched Precipitated Hydrate High Precision HCA series with IC series of Alumina with finer particles SMA Series reduced soda content with increased purity Superfine Aluminium Hydrate Super reactive Sub Micron High Crystalline Alumina has 4 Industr
Slide 36: India Business Updates on Growth Projects
India Business Updates on Growth Projects
Slide 37: India Business Growth Projects Under Execution (FY24-28)
India Business Growth Projects Under Execution (FY24-28) Sr Estimated Expected Year Projects Plant/Region Capacity(Kt) Status of Projects No. Cost(US$ Mn) of Completion I Aluminium-Upstream Sr. No. 1 Alumina Expansion (via Debottlenecking) Utkal 350 $40 FY24 On Track 2 Project will be executed with
Slide 38: India Business Identified future growth opportunities (FY24-28)
India Business Identified future growth opportunities (FY24-28) Estimated Expected Year of Sr No. Identified Projects Plant/Region Capacity(Kt) Status of Projects Cost(US$ Mn) Completion Sr. No. I Aluminium-Upstream Project is Under Appraisal: Bauxite Mining auctions are 1 Alumina Expansion (Greenfi
Slide 39: Financial Strength
Financial Strength
Slide 40: Financial Strength: Enabler for value enhancing growth
Financial Strength : Enabler for value enhancing growth Net Debt to EBITDA (x) Consolidated India Business Novelis Debt Maturity India Business Novelis • Comfortable consolidated Net Debt to EBITDA ratio creating 2850 Balance in US $ Mn balance sheet flexibility to drive growth • Long-dated maturity
Slide 41: Key Takeaways
Key Takeaways Financial and operational performance Our disciplined approach to Capital getting adjusted to macro economic Allocation and Shareholder returns challenges in the post covid continues environment Long Term market outlook across business segments remain intact, while short term headwinds
Slide 42: Thank You
For Further Queries Please Contact: Subir Sen, Investor Relations Telephone- +91 22 6662 6666 E mail: hilinvestors@adityabirla.com Website: www.hindalco.com Registered Office Ahura Centre, 1st Floor, B Wing Mahakali Caves Road Andheri (East), Mumbai 400 093 THANK YOU Telephone- +91 22 6691 7000 Webs
Slide 43: Annexures
Annexures
Slide 44: Novelis Growth Projects Under Execution (FY24-28)
Novelis Growth Projects Under Execution (FY24-28) Primary Product Status/Estimated Identified Projects Location Primary Product Capacity(Kt) Cost(US$) Status / Estimated Identified Projects Location Markets Supported Capacity (Kt) Cost (US$) Commissioning Markets Supported Commissioning North Americ
Slide 45: Novelis Identified future growth opportunities (FY24-28)
Novelis Identified future growth opportunities (FY24-28) Primary Product Primary Product Status/Estimated Status / Estimated Identified Projects Identified Projects Location Location Capacity(Kt) Capacity (Kt) Cost(US$) Cost (US$) Markets Markets Supported Supported Commissioning Commissioning Asia
Slide 46: Novelis decarbonization Strategy
Novelis decarbonization Strategy Carbon Neutral CO2 Baseline 30% 2016 2026 2050 Maximize Decarb of Increase Support the High Recycle Circularity + Melting Process, Recycling Decarbonization Content Alloy Closed Loop Energy Efficiency Capacities + of Primary Development Recycling & Sourcing Capabilit
Slide 47: Disclaimer
Disclaimer NON-U.S. GAAP FINANCIAL MEASURES Primary Product Status / Estimated Markets Supported Commissioning With respect to Novelis, this presentation contains certain non-U.S. GAAP financial measures as defined by SEC rules, such as Adjusted EBITDA and Adjusted EBITDA per tonne. We believe these