Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Motilal Oswal 15th Annual Global Investor Conference 2019
24 slides from Hindalco Industries's conference presentation, Aug 20, 2019
Slide 1: Covering letter to stock exchanges
ADITYA BIRLA Udll HINDALCO Al ISTOEX-GN/75 20th August, 2019 BSE Limited National Stock Exchange of India Phiroze Jeejeebhoy Towers Limited Dalai Street Exchange Plaza, 5th Floor Mumbai: 400 001 Plot No. C/1, G Block Bandra Kuria Complex Bandra (East) Mumbai - 400 051 Mr. Daniel Schammo Banque Inter
Slide 2: A Sustainable Business Model
Hindalco Industries Ltd. A Sustainable Business Model Transforming towards a Resilient, Reliable and Responsible future Motilal Oswal Annual Investor Conference 2019 20th August, 2019 Presented by : Satish Pai, Managing Director
Slide 3: Hindalco's 3 R of Sustainable Business Model
Hindalco’s - 3 R of Sustainable Business Model RESILIENCE RELIABILITY RESPONSIBILITY Resource Security Operations Environment Sustainability Fully integrated aluminium business Steady operational performance in Environmental Stewardship model providing support in low India Climate Change com
Slide 4: Our Resilience
Our Resilience Hindalco Industries Limited EXCELLENCE BY DESIGN 3
Slide 5: Resource Security (Coal & Bauxite)
Resource Security (Coal & Bauxite) COAL ALUMINA (Input : Bauxite) Coal Procurement Options Integrated Alumina Self sufficient in Alumina (the intermediate product for Aluminium Linkage coal smelting) with capacity of 3.0 MT to feed its 1.3 MT Aluminium Capacities Long term coal linkage contract with
Slide 6: Diversified & Balanced Portfolio
Diversified & Balanced Portfolio Leading Global Industry Player Hindalco Industries Ltd Aluminium* Copper* Aluminium Flat Rolled Products (FRP) Alumina 2.9 Mt Copper Cathode 347 Kt #1 Rolled Products Supplier Worldwide Primary Metal 1.3 Mt Copper Rods 245 Kt Global Presence Shipments 3.3 Mt VAP (exc
Slide 7: Diversified & Balanced Portfolio Contd
Diversified & Balanced Portfolio ………….Contd FY19 – Consolidated EBITDA split (%) FY19 – Consolidated Revenue split (%) Rs. 16,627 crore Rs. 130,520 crore 5% 18% 31% 17% 55% 65% 9% Aluminium Copper Novelis Other Income Aluminium Copper Novelis Non-LME Linked (conversions) business contributed ~70% to
Slide 8: A Strong Balance Sheet
A Strong Balance Sheet Consolidated Return on Capital Employed – Consolidated Net Debt / EBITDA (x) Pre-Tax (%) 10.8 6.30 6.30 9.7 8.3 3.74 6.0 2.82 5.1 2.48 7 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Prepaid more than Rs. 10 billion of Long term loans in last 3 years Hindalco Industries Li
Slide 9: Our Reliability
Our Reliability Hindalco Industries Limited EXCELLENCE BY DESIGN 8
Slide 10: India Aluminium: Manufacturing Excellence
India Aluminium : Manufacturing Excellence Stable Production across all locations in Alumina & Aluminium Alumina Capacity Utkal 2.7 2.9 2.9 1,500 Kt Production in Alumina 2.3 Utkal (in Mt) 1.6 Capacity Mahan 360 Kt Aluminium FY15 FY16 FY17 FY18 FY19 Aluminium Metal 1.3 1.3 1.3 Production (in Mt) 1.1
Slide 11: Copper India: Manufacturing Excellence
Copper India: Manufacturing Excellence One of the Largest Single Location Copper Smelters in Asia 410 Copper Cathode 386 388 376 Production (in Kt) 347 FY15 FY16 FY17 FY18 FY19 Of above, Copper 245 CCR Capacity Continuous Cast Rod 365 Kt 151 158 150 166 (CCR) production (in Kt) FY15 FY16 FY17 FY18 F
Slide 12: Novelis: Manufacturing Excellence
Novelis : Manufacturing Excellence o Completed more than 1 decade post acquisition • One of the most successful acquisitions among Indian conglomerates 3.3 Mt 23 9 $12.3 bn $1.4 bn o Headline statistics in Roller in Recycler Shipments Number of Presence Revenues Adjusted Manufacturing in Countries E
Slide 13: Hindalco's Supplier Risk Assessment, Mitigation
Hindalco’s Supplier Risk Assessment, Mitigation Procurement Analytics Procurement Process Management Supplier Capability Spend Market Process Performance Performance Development Analytics Analysis Management Management Analytics & Training Risk mitigation New ways of doing business Co-developed and
Slide 14: Hindalco's Approach to Customer Centricity
Hindalco’s Approach to Customer Centricity In January 2019, Hindalco launched an innovative, lightweight and cost-efficient aluminium bulker makes travel efficient and sustainable for its customers. • The first bulker customised Aditya Birla Group company – Ultratech • Replaced steel making it 50% l
Slide 15: Product Stewardship: Focus on Aluminium Downstream in India
Product Stewardship : Focus on Aluminium Downstream in India Currently ~76% products sold as commodity Plans to sell ~60-70% products to end customers COAL MINING SLABS COILS / SHEET POWER ALUMINIUM BAUXITE MINING ALUMINA REFINING WIRE ROD SMELTING BAYER PROCESS ELECTROLYSIS BILLETS EXTRUSION Planni
Slide 16: Novelis - Strategic Capacity Expansion Plans
Novelis - Strategic Capacity Expansion Plans New expansion projects are underway in all 3 projects : 200kt greenfield automotive finishing lines in the U.S. to begin customer qualification late FY20 100kt automotive finishing expansion in China commissioning in FY21 100kt rolling and 60kt re
Slide 17: Our Responsibility
Our Responsibility Hindalco Industries Limited EXCELLENCE BY DESIGN 16
Slide 18: Environmental Stewardship: Waste, Emissions, Effluent Management
Environmental Stewardship: Waste, Emissions, Effluent Management Solid Wastes: Air Emissions: Liquid Effluents: Inventory all hazardous and non- Mapping emissions from processes, Segregate different types, focus on hazardous wastes power plants recycle, reuse Targets: follow mitigation hiera
Slide 19: Recycling Bauxite Residue - Construction
Recycling Bauxite Residue - Construction Opportunities in Construction Building through bricks, paver blocks, roof sheets, plastering Paver Blocks material Bricks Roof Sheets Making of roads Making of railway embankments Soil conditioning Roads Plastering Material Hindalco Industries Limited
Slide 20: Climate Change and Aluminium
Climate Change and Aluminium PROS Aluminium is infinitely recyclable Life cycle of an aluminium product is a renewable "cradle-to-cradle" Increase in recycling 95% less energy to recycle aluminium than to produce primary metal Light-weighting of transport offering reduction in vehicular GHG
Slide 21: Occupational Safety & Health
Occupational Safety & Health Safety is the language spoken Inherently Safer Processes State of art, latest technology at all new facilities No use of bulk chlorine for water treatment Attention to minuscule details when it comes to safety Benchmarked and at par with best in industry Un
Slide 22: To Sum up
To Sum up Leading with a balanced and sustainable business model Resilience in low LME Operational Focus on environment environment with excellence sustainability resource security and a balanced product mix Hindalco Industries Limited EXCELLENCE BY DESIGN 21
Slide 23: Thank You
ADITYA BIRLA HINDALCO Thank You
Slide 24: Questions?
ADITYA BIRLA HINDALCO Questions ?
Hindalco Industries — Motilal Oswal 15th Annual Global Investor Conference 2019 on 6ix