Hindalco Industries Limited · NSE:HINDALCO
Hindalco Industries — Q4 FY2015 Earnings Presentation
30 slides from Hindalco Industries's earnings presentation, May 15, 2015
Slide 1: Hindalco Industries Ltd … FY2015
HINDALCO INDUSTRIES LTD … FY2015
Slide 2: Highlights and Financial Performance
Highlights and Financial Performance Review – Aluminium Business Review – Copper Business
Slide 3: Financial markets showing increased volatility
Financial markets showing increased volatility – Mixed signals: US recovering, While Europe staring at possible deflation… – ECB and BOJ announced QE that resulted in stock market rise – Weakness in Euro and commodities , Specter of Rising interest rates in the US has increased uncertainty – India s
Slide 4: Aluminium: Realizations have softened recently
Aluminium: Realizations have softened recently 2,200 Global aluminium market likely to LME – Al ($/t) witness surplus of ~0.3 Mn t in 2015 2,000 1,710 Rising market surplus in China – 1,800 leading to a jump in exports 1,600 Premiums have collapsed 1,400 Long-term growth prospects – both 1,2
Slide 5: FY15: Highlights…
FY15: Highlights… Aluminium Record Volumes as facilities ramp up (India) YOY EBIT jumped 44% Won 4 coal blocks in auction Shipments increased in all regions Novelis Strategic rolling expansions driving higher shipments, Auto story set to play out Strong Operational performance Copper R
Slide 6: Highlights: FY15
Highlights: FY15 Consolidated Revenue $17.1 Bn, PBITDA $1.6 bn FY15 vs. FY14 Standalone Consol. Revenues Highest ever (both Standalone & 24% 19% Consolidated) Standalone Consol. EBITDA 37% 8% Strong operational result India Metal Volume (Al) On the back of ramp-up of new 37% smelters Copper (India)
Slide 7: Standalone Financials FY15
Change % (`) Cr FY15 FY14 Net Sales 34,525 27,851 24% Other Income 882 1,124 (22)% PBITDA 4,299 3,616 19% Depreciation (837) (823) 2% Interest (1,637) (712) 130% PBT before exceptional 1,825 2,081 (12)% Exceptional items* (578) (396) PBT 1,247 1,685 (26)% PAT 925 1,413 (35)% EPS (`) 4.48 7.09 (30)%
Slide 8: Segmental Performance – FY15
Segmental Performance – FY 15 Aluminium Copper C.E. 88% 12% SALES 41% 59% EBIT 47% 53% *Standalone 8
Slide 9: Standalone Q4 FY15 Financials
Change % Change (`) Cr Q4 FY15 Q4 FY14 Q3 FY15 YoY %QOQ Net Sales 9,372 8,435 11% 8,603 9% Other Income 230 212 8% 212 8% PBITDA 1,078 1,057 2% 1136 (5%) Depreciation (238) (244) (3)% (216) 10% Interest (466) (215) 117% (447) 4% PBT before 374 598 (37)% 472 (21%) exceptional Exceptional (146) (396)
Slide 10: Consolidated Financials FY15
Change % (`) Cr FY15 FY14 YoY Net Sales 104,281 87,695 19% PBITDA 10,049 9,303 8% Depreciation (3,591) (3,553) 1% Interest (4,178) (2,702) 55% PBT before exceptional 2,280 3,049 (25)% Exceptional items (1,940) (396) PBT 340 2,653 (87)% PAT 854 2,175 (61)% EPS (`) 4.14 10.91 (62)%
Slide 11: Aluminium Business
ADITYA BIRLA HINDALCO Aluminium Business
Slide 12: Al: External Drivers
Al: External Drivers FY15 FY14 Q4 FY 15 Q4 FY 14 LME 1,889 1,773 1801 1710 ($/t) INRUSD 61.2 60.4 62.3 61.8 MJP 392 265 377 313 Coal costs remained at elevated levels Smelter ramp up got affected due to coal availability on account of infrastructure bottlenecks While realizations improved, cost of
Slide 13: Al: Robust Operational Performance
Al: Robust Operational Performance (Figures in Kt = ’000 tonnes) Record volumes on the back of ramp-up of expansion projects Alumina Al Metal (incl. Utkal) Capability to handle large 40% 2,259 37% 836 export volumes established; 1,619 1,038 258 613 334 kt metal exported in 277 57 FY15 1,343 556 57
Slide 14: New Smelters: ramping Up
New Smelters: ramping Up Mahan Metal Production (kt) 58 48 43 37 29 18 7 Q2 Q3 Q4 Q1 Q2 Q3 FY Q4 FY FY14 FY14 FY14 FY15 FY15 15 15 Aditya Metal Production (kt) 36 22 6 Q2 FY15 Q3 FY15 Q4 FY 15
Slide 15: Al: Financial Performance (Standalone, w/o Utkal)
Al: Financial Performance (Standalone, w/o Utkal) Quarterly Trend FY15 Performance Net Sales (` Cr) Net Sales (` Cr) 3,636 4,141 10,050 3,010 3,316 FY14 40% 14,105 FY15 Q1 Q2 Q3 Q4 FY15 FY15 FY15 FY15 EBIT (` Cr) EBIT (` Cr) 320 384 339 306 44% FY14 934 FY15 1349 Q1 Q2 Q3 Q4 FY15 FY15 FY15 FY15
Slide 16: Utkal Alumina
Utkal Alumina Plant operating at close to full Production* (‘000 t) capacity level 240 274 316 208 288 kt alumina exports in FY15 Amongst world’s lowest cost and one 147 of the best quality producers of alumina Long distance conveyor trials started UAIL achieved EBITDA of `261 crore Q4 Q1
Slide 17: Coal Blocks….
Coal Blocks…. Coal Block Mineable Capacity Reserves (Mntpa) (Mn t) Mahan Kathautia (JH) 26 0.8 Gare Palma IV/5 (CG) 41 1.0 Gare Palma IV/4 (CG) 11 1.0 Dumri Dumri (JH) 45 1.0 Fiercely competitive auctions; Hindalco won 4 coal blocks Gare Kathautia Palma IV/5 Close to 30% of requirement secured,
Slide 18: Novelis
J ‘ Novelis ce NOVELIS
Slide 19: Novelis: FY15 – Highlights…
ADITYA BIRLA Novelis: FY 15 — Highlights... HINDALCO = Grew portfolio of high-recycled content premium products * Record total shipments # Record automotive shipments * Record level of recycled inputs = EBITDA up 2% to $902 million = Free cash flow of $71 million after funding $518 million in capita
Slide 20: Novelis…. Highlights
Novelis…. Highlights Shipments up 5% yoy; grew in all regions Strong growth in Asia and South America on the back of rolling expansions in Korea and Brazil Strong progress on strategic priorities Auto shipments up 45% (yoy) in Q4 Q4 recycled content at 53% Additional auto lines in German
Slide 21: Copper Business
ADITYA BIRLA Copper Business
Slide 22: Cu: Favourable Industry Trends…
Cu: Favourable Industry Trends… FY15 vs. Impact FY14 (YoY) TCRC Higher LME ($/t) Lower Exch. Rate (`/$) Acid Price Higher DAP Realization Higher
Slide 23: Strong Production growth
Cathode DAP 17% 22% 93% 7% 386 107 100 299 229 56 329 96 FY14 FY15 Q4 FY 14 Q4 FY 15 FY14 FY15 Q4 FY 14 Q4 FY 15 Strong Production growth
Slide 24: Cu: Financial Performance
Cu: Financial Performance Quarterly Trend FY15 Performance Net Sales (` Cr) Net Sales (` Cr) 5,247 5,238 4,990 4,976 17848 FY14 15% 20451 FY15 Q1 Q2 Q3 Q4 FY15 FY15 FY15 FY15 EBIT (` Cr) EBIT (` Cr) 317 414 396 390 62% FY14 938 FY15 1516 Q1 Q2 Q3 Q4 FY15 FY15 FY15 FY15
Slide 25: Cu: Contributing in Challenging times…
Cu: Contributing in Challenging times… (` Cr) EBIT 1600 1400 1200 1000 800 1516 600 938 400 802 768 602 200 0 FY11 FY12 FY13 FY14 FY15 EBIT – 2.5X in 4 years
Slide 26: ABML: FY15 performance affected by Sinkhole incident
ABML: FY15 performance affected by Sinkhole incident Nifty mine operations were gradually restarted from mid-July 2014 Ore production @1.4 mtpa annual rate achieved in Q4 FY15 (Near- term target to operate mine @1.5-1.7 mtpa) Copper production down to 12.7 kt in FY15 from 44.6 kt in FY14 Gra
Slide 27: Overall Outlook
Overall Outlook Aluminium business will continue to face pressures because of structurally higher-than-envisaged coal prices and sharp drop in Al premium Outlook for Copper business broadly positive on the back of favourable TCRC and robust performance of smelter Novelis will focus on operational
Slide 28: 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
Slide 29: 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 30: Appendix: Exceptional Items
Appendix Exceptional Items (Net) of Rs. 578 crore include: Rs. 563 crore towards additional levy of Rs. 295/- per MT on extracted coal for the period up to 30th September, 2014. Rs. 258 crore towards provision for diminution in the carrying value of investments in Aditya Birla Minerals Limited, A
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