Media Release

HINDALCO REPORTS STELLAR CONSOLIDATED Q1 FY22 RESULTS

Novelis and Aluminium India Business drive highest-ever quarterly net profits

Key Highlights of Q1 FY22

▪ All-time high Consolidated EBITDA at ₹6,790 crore, up 188% YoY and 16% QoQ
▪ All-time high Consolidated PAT at ₹2,787 crore, up 493% YoY and 45% QoQ
▪ All-time high Novelis quarterly Adjusted EBITDA at $555* million, up 119% YoY and 10%
QoQ
▪ Novelis quarterly Adjusted EBITDA per ton at $570*, up 75% YoY and 11% QoQ
▪ Novelis Net Income from continuing operations at $303* million, up 597% YoY and 1082%
QoQ
▪ All-time high quarterly India Business EBITDA at ₹2,513 crore, up 121% YoY; 32% increase
sequentially
▪ All-time high quarterly India Business PAT at ₹1,037 crore, up 1135% YoY; 59% increase
sequentially
▪ All-time high quarterly Aluminium India EBITDA at ₹2,352 crore, up 142% YoY and 29%
QoQ; EBITDA margins of 37.5%, highest in last 13 years
▪ Consolidated Net Debt to EBITDA improved further to 2.36x as of June 30, 2021 vs the peak
of 3.83x as of June 30, 2020
▪ S&P Global Ratings raised its issuer credit rating on Novelis to 'BB’ from 'BB-’
▪ Credit Rating upgraded by CRISIL from ‘AA’ to ‘AA+’ with ‘Stable’ outlook for Hindalco bonds

*As per US GAAP

MUMBAI, August 06, 2021

Hindalco Industries Limited, the Aditya Birla Group metals flagship, delivered stellar results in Q1
FY22 recording its highest-ever quarterly net profits.

The Company’s consolidated PAT was at ₹2,787 crore, which is a noteworthy increase of nearly
500% YoY. The results were driven by a strong performance by Novelis and India Business,
supported by favorable macros, strategic product mix, and stability in operations. Novelis reported
an all-time high quarterly EBITDA, as a result of upswing in demand for innovative and sustainable
aluminium products and an outstanding operational performance.

1
Table: Consolidated Financial Highlights for the Quarter ended June 30, 2021 (₹ Crore)

Particulars Q1 FY21 Q4 FY21 Q1 FY22

Revenue from Operations 25,283 40,507 41,358

Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA)
Novelis* 1,919 3,705 4,090
Aluminium 973 1,820 2,352
Copper 66 322 261
All Other Segments 1 13 (6)
Business Segment EBITDA 2,959 5,860 6,697
Unallocable Income/ (Expense) - (Net) & GAAP Adjustments (600) (15) 93
EBITDA 2,359 5,845 6,790
Finance Costs 992 903 820
PBDT 1,367 4,942 5,970
Depreciation & Amortisation (including impairment) 1,551 1,722 1,649
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax) 3 - 2
Profit before Exceptional Items and Tax (181) 3,220 4,323
Exceptional Income/ (Expenses) (Net)# (419) 34 230
Profit Before Tax (After Exceptional Item) (600) 3,254 4,553
Tax (31) 1,309 1,299
Profit/ (Loss) from Continuing Operations (569) 1,945 3,254
Profit/ (Loss) from Discontinued Operations (140) (17) (467)
Profit/ (Loss) After Tax (709) 1,928 2,787
*As per US GAAP ;
# Exceptional Income / (Expenses) for Q1FY22, exclude ₹346 crore (net of litigation cost of ₹9 crore) which represents the principal portion on PIS and COFINS related tax credit income as it is
included in the Novelis segment result.

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries Ltd.,
said, “This quarter we delivered record-breaking financial results despite the impact of the Covid
second wave. Our robust financial performance, accelerated pace of deleveraging and the
increasing strength of our balance sheet has been recognised by the market and is reflected in
credit rating upgrades for both Novelis and Hindalco.

The improvement is visible across all our business segments where we are seeing strong demand,
plants running at capacity, and better margins. We continue to keep employees protected and de-
risk plant facilities by taking all Covid-appropriate measures. We have started FY22 at a strong
pace and we are confident that our resilience against market swings will support us in continuing
to deliver our best. More importantly, we believe our focus on setting and achieving carbon
neutrality and other ESG goals will keep Hindalco in the leadership position as the world’s most
sustainable aluminium value-added player.”

2
Business Segment Performance in Q1 FY22 (vs Q1 FY21)

Novelis
Novelis recorded its best-ever quarterly Adjusted EBITDA of $555 million (vs $253 million), up 119%
YoY, on the back of higher volumes, favourable product mix and metal benefits, and a $47 million
gain related to a favourable decision in a Brazilian tax litigation.

Novelis achieved an Adjusted EBITDA per ton of $570 in Q1 FY22, compared to $327 in the prior
year, an increase of 75% YoY. Excluding the non-recurring tax litigation benefit, Adjusted EBITDA
per ton equates to $522 in the first quarter of FY22.

Novelis’ Net Income (excluding tax-effected special items) was $260 million, up 1082% YoY, driven
by higher Adjusted EBITDA. Revenue was $3.9 billion (vs $2.4 billion), up 59% YoY, due to higher
shipments, global aluminium prices and market premiums. Total shipments of flat rolled products
(FRPs) were at 973 Kt (vs 774 Kt), up 26% YoY, with strong demand across end-product markets
particularly beverage packaging and specialty products, partially offset by some headwinds in the
automotive industry on account of the semiconductor chip shortage.

Aluminium India
EBITDA was at an all-time high of ₹2,352 crore in Q1 FY22, compared with ₹973 crore for Q1
FY21, an increase of 142% YoY, primarily due to favourable macros, improved product mix and
better operational efficiencies. EBITDA margins reached a 13-year high of 37.5% and continue to
be among the best in the industry. Revenue was ₹6,267 crore in Q1 FY22 vs ₹4,436 crore in the
prior year period. Aluminium India Business recorded metal production of 319 Kt vs 291 Kt in the
corresponding period. Aluminium metal sales were flat YoY at 303 Kt. Aluminium VAP (excluding
wire rods) sales volumes were at 82 Kt (vs 35 Kt), up 137% YoY, driven by a sharp recovery in the
domestic market. VAP sales, as a percentage of total metal sales, were 27% this quarter vs 11%
in the same quarter last year, in line with market recovery.

Copper
Successful ramp-up of Smelter-3, post shutdown in Q1 FY22. Copper Cathode production was at
63 Kt in Q1 FY22 (vs 41 Kt in Q1 FY21), higher by 52% YoY. While overall copper metal sales were
at 80 Kt (vs 58 Kt in Q1 FY21), Copper Continuous Cast Rod (CCR) sales in Q1 FY21 were up
50%, at 46 Kt (vs 31 Kt in Q1 FY21), driven by market recovery. EBITDA for the Business stood at
₹261 crore compared to ₹66 crore in Q1 FY21, up 295% YoY. Revenue from the Copper Business
was ₹7,094 crore this quarter, up 134% YoY, primarily due to higher global prices of copper.

3
Consolidated Results
Hindalco reported another best-ever quarterly financial performance in Q1 FY22 with EBITDA at
₹6,790 crore (vs ₹2,359 crore), up 188% YoY. The record results were driven by an outstanding
performance by Novelis as well as India business, supported by a sharp recovery in all relevant
markets, and improved macros. Consolidated Revenue for the first quarter stood at ₹41,358 crore
(vs ₹25,283 crore), up 64% YoY. Consolidated PAT in Q1 FY22 was ₹2,787 crore, compared to a
loss of ₹(709) crore in Q1 FY21, a jump of 493% YoY. Gross Debt declined by ₹16,345 crore and
Net Debt fell by ₹10,389 crore as of June 30, 2021 from its peak on June 30, 2020. Consolidated
Net Debt to EBITDA ratio improved further to 2.36x on June 30, 2021, from a peak of 3.83x on
June 30, 2020.

Covid Response
Hindalco has prepared to tackle the third wave of Covid by fortifying its efforts to protect employees
and the community.
Over 51,000 employees have been vaccinated with at least one dose. In some states, the
Government is collaborating with Hindalco to vaccinate the local population at the Company’s own
hospitals and health centres. Hindalco’s dedicated team of 77 doctors and 245 paramedics is
working round the clock to serve employees and the community.

Hindalco has boosted medical infrastructure and equipped its own hospitals and health centres
with critical care equipment such as CT scan machines, set up oxygen lines in remote locations to
serve patients needing ICU care, and enhanced its lab testing facilities. Hindalco has strengthened
its medical teams, including adding pediatricians, and upskilling its paramedics.

Business Updates & Recognition

• Aleris Integration work continues with $100 million run-rate combination cost synergies
achieved through the end of Q1 FY22.
• As part of the integration, expansion project in Zhenjiang, China, is expected to begin in the
current year with investments of $375 million over 3 years. This includes a new cold mill,
automotive casting house, recycling capabilities, hot mill upgrade, etc.
• The Guthrie, Kentucky automotive finishing plants in the U.S. and in Changzhou, China are
both ramping up well.
• Novelis’ expansion of recycling, casting, and rolling facilities in Pinda, Brazil is on track, with
commissioning expected in Q2 FY22.
• S&P Global Ratings raised its issuer credit rating on Novelis to 'BB’ from 'BB-’in July 2021.
• Novelis launched an offering of two unsecured senior notes of $750 million each, at a
coupon of 3.250% and 3.875%, due in 2026 and 2031, respectively.
• 500 Kt Utkal Alumina expansion project to start commercial production in Q2 FY22.

4
 • Credit Rating upgrade by CRISIL from ‘AA’ to ‘AA+’ with ‘Stable’ outlook, in July 2021, for
bonds of Hindalco.
• CARE Ratings affirmed ‘AA+’ Credit Rating with Outlook upgraded from ‘Negative’ to ‘Stable’ in
June 2021 for long-term loans and bonds of Hindalco.
• Hindalco received highest Short-Term Rating of ‘A1+’ from ‘India Ratings’ in June 2021, for
issuance of Commercial Paper.

About Hindalco Industries Limited

Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. An $18 billion
metals powerhouse, Hindalco is the world’s largest aluminium company by revenues, and a major
player in copper. It is also one of Asia’s largest producers of primary aluminium.
Guided by its purpose of building a greener, stronger, smarter world, Hindalco provides innovative
solutions for a sustainable planet. Its wholly-owned subsidiary Novelis Inc. is the world’s largest
producer of aluminium beverage can stock and the largest recycler of used beverage cans (UBCs).
Hindalco’s copper facility in India comprises a world-class copper smelter, downstream facilities, a
fertiliser plant and a captive jetty. The copper smelter is among the world’s largest custom smelters
at a single location. Hindalco’s global footprint spans 48 manufacturing units across 10 countries.
Registered Office: Ahura Centre, 1st Floor, B Wing, Mahakali Caves Road Andheri (East),
Mumbai 400 093; Website: www.hindalco.com; E mail: hindalco@adityabirla.com;Corporate
Identity No. L27020MH1958PLC011238

Disclaimer: Statements in this “Media Release” describing the company’s objectives, projections, estimates, expectations or predictions 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 company’s operations include global and Indian demand supply
conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company’s principal markets, changes in
Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and
other factors such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify or revise any forward-
looking statement, on the basis of any subsequent development, information or events, or otherwise.

5
Hindalco
Industries
Limited

Q1 FY22 Earnings Presentation

06th August, 2021
SAFE HARBOUR

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 company’s operations include global and Indian
demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and
pricing in the company’s principal markets, changes in Government regulations, tax regimes, economic
developments within India and the countries within which the company conducts business and other factors
such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify
or revise any forward looking statement, on the basis of any subsequent development, information or
events, or otherwise.

Hindalco Industries Limited 2

Table of Content
1. Hindalco Sustainability Updates
2. Key Highlights – Q1 FY22
3. Economy & Industry Updates – Global & Domestic
• Novelis
4. Business Performance : Operational & Financial – Q1 FY22
- Novelis
- Aluminium (India)
- Copper • Aluminium
- Consolidated
(India)
5. Annexures :
- Consolidated - Key Financials
- Hindalco (India) Business - Key Financials
- Alumina Production Trend • Copper

Hindalco Industries Limited 3

 Hindalco (India) Sustainability Updates

Hindalco Industries Limited 4

Focus on Conservation: Waste, Water, Biodiversity
Environment Bauxite Residue (% Recycled)
• 82.7% of waste recycled and reused in Q1 FY22
62.3%
• 100% of Red Mud from three out of four Alumina Refiners reused in Cement
53.2%
Waste Recycling Industries. Utkal refinery is conducting pilot projects for Mine Backfilling and
Roads
• 89.3 % of Ash from Power Plants reused 27.5%

8.0%
• 3rdParty assurance of Mines water inventory in progress inline with ISO
14046. FY 19 FY 20 FY 21 FY 22- Q1 YTD
• Mouda ETP plant upgradation and RO plant stabilization completed
ZLD & Water
• Successful Electrocoagulation pilot test for water separation from emulsion
and fluoride reduction
• Committed to ZLD at all sites by 2025, adding one site per year Water Consumed & Recycled (mllion m3)

Consumption Recycled
• 1st Miyawaki plantation (3-tier scientific afforestation) carried out in Aditya
plant in the area of 400 m2 as per the Biodiversity Management Plan (BMP) 79.7 78.4 71.7
Green Cover by International Union for conservation of Nature (IUCN)
& • Enhanced the green cover by 12 acres in Q1 FY22; cumulative green cover
Biodiversity across all sites is spread over 4684.2 acres 18.6 18.9 16.0 18.4
• Green belt enhancement plan developed for ten of the non-BMP sites based 4.0
on revised Forest department’s SOPs for Flora and Fauna conservation
FY 19 FY 20 FY 21 FY 22- Q1 YTD

Hindalco Industries Limited 5

Focus on Renewables & Safety
Renewable Energy Aluminium Sp. Energy (%)
(Indexed to FY15 Base)
Onsite Renewable (Primarily solar) Renewables (MW)
86.1%
• Potential ̴ 246 MW. 250
• FY22 - 52 MW implementation across 5 locations are on 200
85.4%
track (49 MW already implemented) 200
170 84.7% 84.6%
• FY23 - 32 MW Identified so far including floating solar
150 135

Other Initiatives 100

100
• Continuously exploring & evaluating large scale. FY 19 FY 20 FY 21 FY 22- Q1 YTD
Renewable projects with storage (Pumped Hydro). 49
50
• Grid upgrade to 400 KV initiated at Aditya. LTIFR
Timeframe – 2 Years. 0
• Evaluating emerging technologies on Carbon Capture (CCUS) FY21 FY22 FY23 FY24 FY25 0.48 0.46
Target for Pilot FY23. 0.38 0.35

Workforce Health & Safety

• SIF prevention program: 461 situations having risk identified and action plan for mitigation of 449 prepared and
under implementation FY 19 FY 20 FY 21 FY 22- Q1 YTD
• New Contractor Safety Management Program implementation status: SAQ score not less than 81% at each unit
with plan to take it to 90% in Q2. Fatality (in Nos)
• In “Line of Fire” work situations: 1872 situation identified and control measures for more than 90% situation Employee Contract
• Digitization: e-permit implemented, Drone & Video Analytics for high-risk work like Confined Space Entry and 5
Work at height
• “TapRoot” Software for RCA and incorporation BBS module in Enablon 2 2 2
1 1
• Corporate / Cross Entity Safety Audit: 43 additional SIF situation identified 0 0
• Review of Risk Assessment: 43289 activities having human intervention rescreened
FY 19 FY 20 FY 21 FY 22- Q1 YTD
Hindalco Industries Limited 6
 Business Performance Key Highlights - Q1 FY22

Hindalco Industries Limited 7

Key Highlights : Q1 FY22
▪ Shipments of 973Kt (774Kt), up 26% YoY driven by strong demand across all business segments
▪ Record adjusted EBITDA at $555 million ($253 million), up 119% YoY on the back of higher volumes and favorable
product mix, favorable metal benefits and a $47 million gain related to a favorable decision in a Brazilian tax litigation
▪ Adjusted EBITDA per ton at $570 ($327/t) up 75% YoY; $522 per ton, excluding gain related to Brazilian tax litigation
in Q1FY22
Novelis* ▪ Net Income from continuing operations at $303 million (vs Loss of $61 million in Q1 FY21); Net Income (excluding
special items#) at $260 million ($22 million) up 1082% YoY
▪ Aleris Integration work continues with $100 million run-rate combination synergies achieved in Q1FY22
▪ Credit Rating upgrades by S&P Global Ratings raised issuer rating to 'BB’ from 'BB-’ on 22nd July 2021
▪ Launched an offering of two unsecured senior notes of $750 million each, at a coupon of 3.250% and 3.875% due in
2026 and 2031 respectively.

▪ Record quarterly EBITDA at ₹2,352 crore (₹973 crore) up 142%, on account of favorable macros, improved mix and
better operational efficiencies
▪ EBITDA margin at 37.5% (22%), highest in last thirteen years and continues to be one of the best in the industry
Aluminium
▪ Aluminium Metal sales at 303Kt (303Kt), was flat YoY
(India)
▪ Aluminium VAP (excluding wire rods) sales at 82Kt (35kt) up 137%, on account of sharp recovery in the domestic
demand
▪ 500Kt Utkal Alumina expansion commercial production to begin in Q2-FY22.
Note : Numbers in parenthesis() represent Q1 FY21 unless specified
*as per the US GAAP #Tax-effected special items include loss on extinguishment of debt, restructuring & impairment and metal price lag, in Novelis

Hindalco Industries Limited 8

Key Highlights : Q1 FY22 ...Contd.

▪ Successful ramp-up of Smelter-3 post shutdown in Q1 FY22.

▪ Cathode production was at 63Kt (41Kt) up 52% YoY ; CC Rods production was at 44Kt (26Kt) up 67% YoY
Copper
▪ Metal sales volumes at 80Kt (58Kt) up 36% YoY; CC Rods sales at 46 kt (31Kt), up 50% YoY with the market recovery
▪ EBITDA at ₹261 crore (₹66 crore) up 295% YoY

▪ Record quarterly EBITDA at ₹6,790 crore (₹2,359 crore), up 188% YoY

▪ PAT for continuing operations at ₹3,254 crore (vs loss of ₹569 crore)
▪ Strong Treasury Balance of $872 million in Novelis and ₹9,425 crore in Hindalco India at the end of June 2021
▪ Gross Debt is down by ₹16,345 crore and Net Debt is down by ₹10,389 crore as on June 30, 2021 from its peak on
June 30, 2020
Consolidated
▪ Net Debt to EBITDA has significantly improved to 2.36x as at June 30, 2021 (vs 3.83x as at June 30, 2020)
▪ Credit Rating upgrade by CRISIL from ‘AA’ to ‘AA+’ with ‘Stable’ outlook in July 2021 for bonds of Hindalco
▪ CARE Ratings also affirmed ‘AA+’ Credit Rating with Outlook upgraded from ‘Negative’ to ‘ Stable’ in June 2021 for
long term loans and bonds of Hindalco
▪ Received highest Short-Term Rating of ‘A1+’ from ‘India Ratings’ in June 2021 for issuance of Commercial Paper

Note : a) Numbers in parenthesis() represent Q1FY21 unless specified

Hindalco Industries Limited 9

 Economy & Industry Updates
Global & Domestic

Hindalco Industries Limited 10

Economy Updates
Global GDP Growth (% YoY) India GDP Growth (% YoY)
5.6 6.0
5.4
9.8 10.3
9.5
4.3 8.5 8.3 8.3
3.9 7.4 8.0
3.5 3.5 3.6 3.5 3.4 3.6 7.0
3.0 6.6 6.4
2.9 5.5
3.9 4.2

CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21E FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22E

-0.1

-3.2 -7.3
▪ Global growth is gradually recovering supported by large scale fiscal support ▪ India’s economic recovery was interrupted by the second wave. Extent of
and easing of pandemic restrictions economic damage likely to be lesser than the first wave
▪ However, recovery is uneven and being held back by resurgence of Covid ▪ Tapering of second wave, push in vaccination roll-out, pent up demand
and easing of restrictions will drive economic momentum going forward
cases, slow vaccination progress and limited policy progress specially in EM
▪ The RBI estimates FY22 GDP growth at 9.5%, after a contraction of 7.3%
▪ GDP growth contracted 3.2 % in CY20 and is expected to rebound to 6.0% in
in FY21. IMF latest forecasts for FY22 are also on similar lines
CY21 and 4.9% in CY22 (Source : IMF, July 2021)
▪ Adverse supply shocks and rise in oil prices have also intensified upside
▪ Risks – future path of pandemic, rising government debts, higher global risks to inflation which RBI is closely watching
inflation and slow pace of vaccine administration in EM ▪ Downside risks- rising inflation, probable 3rd wave of Covid and fiscal
constraints
Hindalco Industries Limited 11
Global Aluminium Industry
Global Demand & Supply Balance (Mt) Global Price of Aluminium (Cash -$/T)

Production Consumption Metal Balance

6% 7% 14% 12% 2,399

31.6 33.7 15.8 16.9 29.6 33.8 15.6 17.5 2.1 (0.1) 0.1 (0.6) 2,096
1,916

17.7 19.4 19.7 1,690 1,704

17.6 0.1 1,497
8.9 9.7 10.4 10.6
13.9 14.3 12.0 14.1 2.0 0.2 0.3
6.9 7.2 6.9 1.7
5.2
(0.3) (1.6) (0.9)
Q2 CY20

Q2 CY21

Q2 CY20

Q2 CY21
H1 CY20

H1 CY21

H1 CY20

H1 CY21

Q1CY20

Q2CY20

Q3CY20

Q4CY20

Q1CY21

Q2CY21
Q2 CY20

Q2 CY21
H1 CY20

H1 CY21
China World Ex. China
H1 CY21 (vs H1 CY20)
• Global production grew by 6%, consumption increased by 14%, leading to deficit of 0.1 Mt Global aluminium prices continued to improve
• China: Production increased by 9%, consumption grew by 12%, leading to deficit of 0.3 Mt • Q2 CY21 prices improved to $2,399/t up from
• World Ex-China: Production was up by 3%, consumption rose by 18%, reducing the surplus to 0.2 Mt $2,096 in Q1 CY21.
Q2 CY21 (vs Q2 CY20)
• Global aluminium prices in QTD (Q2CY21) is
• Global production expanded by 7%, consumption grew by 12%, leading to overall deficit of 0.6 Mt $2,487/ton
• China: Production rose by 9%, while consumption increased by 1%, leading to a deficit of 0.9 Mt
• World Ex-China: Production grew by 4%, consumption improved by 33%, leading to surplus of 0.3 Mt
Hindalco Industries Limited 12
Domestic Aluminium Industry

Domestic Demand (Kt)

574 747 1018 1073 884

195 237
173
122
442 415
116 262 371

272
363 382 422 340
186

Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22E

Domestic Sales Scrap Imports Imports Ex Scrap

▪ In Q1 FY22, domestic demand is estimated to record 884 Kt (54% growth YoY) due to base effect; this demand is estimated to drop by 18% sequentially.
▪ In Q1FY22, lockdowns in the country, due to the second wave of Covid has impacted demand of automotive, which has subsequently led to a decline of imports
of casting scrap in this quarter by around 10% sequentially
▪ Lockdowns and phased unlocking of markets has also led to softening of Electrical, Building & Construction, Consumer Durables, Industrial Machinery. However,
demand was strong in food and pharma packaging for the overall domestic market.
▪ In Q1FY22, sequentially, other imports excluding scrap also strongly de-grew by 27%, while domestic sales fell by 19% YoY to 173 KT
Hindalco Industries Limited 13
Aluminium Flat Rolled Products (FRP) Industry
▪ The global FRP Demand is estimated to grow by ~9% in CY21 (vs CY20 contraction of ~4%) on account of demand recovery and base
effect.

Beverage Cans Automotive Aerospace

CY21E Growth in Market Demand 3-6% CY21E Growth in Market Demand 20-25%
CY21E Growth in Market Demand 5-10%

• Customer demand continue to rise across • Semi-conductor shortage to have limited • Vaccine rollout a positive, but do not expect
all the regions short-term impact on OEM production and significant improvement in CY21 as
• Increasing demand of cans is driven by sheet demand consumer air travel remains restricted
higher at- home consumption as well as • Strong demand driven by new program • Heavily overstocked Aerospace supply chain;
increasing share of Cans as the sustainable adoption and increased consumer bookings improving but recovery could be
packaging option for beverages. preference for SUVs, pick-up trucks, electric prolonged and uneven
• Significant Can maker capacity expansions vehicles and premium vehicles
announced next 2-3 years across all
regions

India FRP Demand is estimated to grow YoY due to low base effect and is expected to decline sequentially due to lockdown in the country
Q1-FY22 on account of COVID 2nd wave.
• Pharma and food packaging are expected to grow whereas other sectors such as consumer durables, automotive , B&C will face some
headwinds
• Demand is estimated to recover in Q2-FY22 in a phased manner with unlocking in the country, post recovery from the 2nd wave
Hindalco Industries Limited 14
Copper Industry (Global)
Global Demand & Supply Balance (in Mt)
Production (MT) Consumption (MT)
5% 9%
11.5 12.0 11.7
10.7

4.6 5.0 6%
6.0 5%
5.5
6.1 5.8 6.1
5.7
2.3 2.5 3.3
3.5
6.9 7.0
5.2 5.7
3.4 3.6 2.8
2.3

H1 CY20 H1CY21 Q2 CY20 Q2 CY21 H1 CY20 H1CY21 Q2 CY20 Q2 CY21

Production Consumption
World ex-China China
H1 CY21 (vs H1 CY20)
• Global copper production grew by 5% and Consumption grew by 9% YoY due to base effect
• China production and consumption both grew by 9% YoY
• World Ex China production grew by 2.5% YoY, where as consumption grew by 9% YoY
Q2 CY21 (vs Q2 CY20)
• Global copper production grew by 6% and consumption grew by 5% YoY
• China production grew by 7% YoY while consumption de-grew by 6% due to lower physical demand impacted by the steep rise in the global prices of copper
• World Ex China Production grew by 6% YoY whereas the consumption grew by 22% YoY on account of faster recovery
Hindalco Industries Limited 15
Copper Industry (Domestic)
Domestic Demand (KT)

165 161
150

59 42
37 118

91
44
40
113 106 119
74
51

Q1FY21 Q2 FY21 Q3FY21 Q4FY21 Q1FY22

Domestic Supply Import
Q1 FY22 vs Q1 FY21
▪ Domestic market demand grew by 30% YoY at 118 KT in Q1 FY22 vs 91 KT in Q1 FY21. In Q1FY22.
▪ Domestic refined copper demand declined by around 27% to 118 KT in Q1 FY22 from 161 KT Q4 FY21 due to softening of market impacted by lockdowns in
the country due to 2nd wave of COVID-19.

Key Macro Drivers (Q1 FY22 vs Q1 FY21)

TC/RC S. Acid Price DAP Realisation

Hindalco Industries Limited 16

 Business Performance : Q1 FY22

Hindalco Industries Limited 17

 Novelis

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Operational Performance – Novelis
▪ Record quarterly financial performance backed by favorable markets and operational
Overall Shipments (KT)
excellence in Q1 FY22
983 973
▪ Shipments at 973 Kt in Q1FY22 up 26% YoY
774
▪ Automotive shipments are more than double the prior year despite some headwinds from the
current semiconductor chip shortage impacting the automotive industry.
▪ Beverage packaging and specialty product shipments benefited from continuing strong market
demand across all regions
Q1FY21 Q4FY21 Q1FY22 ▪ Expansion project updates:
▪ Recycling, Casting and Rolling expansion in Pinda, Brazil on track with Recycling and
Q1 FY22 - Shipments Mix (%) rolling capacity to commission in Q2-FY22.
▪ Automotive finishing plants in Guthrie, Kentucky in the US and Changzhou in China -
2% Customer qualifications and ramping up are in-line with expectations.
23%
▪ Aleris Integration updates:
▪ Integration work continues with $100 million run-rate combination cost synergies
already achieved in Q1-FY22 (Total Potential to exceed $120 million)
17% 58% ▪ Expansion project in Zhenjiang, China which is part of the integration, is expected to
begin in the current year with capital investments of $375 million over 3 years.
▪ These investments include new cold mill, automotive casting house, recycling
Can Automotive Specialities Aerospace capabilities, hot mill upgrade, etc.
▪ Strategic synergies from China integration - total potential $100 million
Hindalco Industries Limited 19
Financial Performance – Novelis

Revenue ($ Billion) Adjusted EBITDA ($ Million) Adjusted EBITDA ($/tonne)

3.9 555 570

3.6
505 514

2.4 327
253

Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22

▪ Net sales in Q1 FY22 stands at $3.9 ▪ All time high adjusted EBITDA at $555 ▪ Adjusted EBITDA per ton at $570/t
billion up 59% YoY driven by a 26% million in Q1 FY22, up 119% YoY, on the in Q1 FY22, up 75% YoY; $522/t,
increase in shipments, favorable back of higher volume and favorable excluding gain related to Brazilian
product mix and higher average product mix, as well as favorable metal tax litigation Q1 FY22
aluminum prices benefits and a $47 million gain related to a
favorable decision in a Brazilian tax litigation.

Note: All above numbers are as per the US GAAP

Hindalco Industries Limited 20
 Aluminium (India)

Hindalco Industries Limited 21

Aluminium Metal & VAP - Production and Sales in Kt
Production : Aluminium Metal (Kt) Production : Aluminium VAP# (Kt) ▪ Aluminium Metal Production up 9% YoY
and 1% QoQ
89
291
316 319 86 ▪ Aluminum VAP production was higher
by 150% YoY in Q1 FY22
34
▪ Alumina production in Q1 FY22 was at
718 Kt up 15% YoY and 3% QoQ
Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22

Sales: Aluminium Metal (Kt) Sales: Aluminium VAP# (Kt) ▪ Domestic Sales as % of total metal
sales was 44% in Q1 FY22 (vs 20% in
329 92
303 303
82
Q1 FY21)
▪ VAP sales were 27% as a % to total

35 metal sales in Q1 FY22 (vs 11% in Q1

FY21.)

Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22

# Excluding Wire Rods

Hindalco Industries Limited 22

Financial Performance - Aluminium (India)

Revenue (₹ Crore) EBITDA (₹ Crore)

6,267 2,352
5,969
1,820
4,436

973

Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22

▪ Aluminium revenues were up 41% YoY, with ▪ Record EBITDA at ₹2,352 crore, up 142% YoY in Q1 FY22
higher global prices of aluminium in Q1 FY22 vs on account of favorable macros, better efficiencies,
Q1 FY21 improved mix and a strong market recovery
▪ EBITDA margins at a all time high of 37.5%, and highest
in last thirteen years and continues to be one of the best
in the industry

Hindalco Industries Limited 23

 Copper

Hindalco Industries Limited 24

Copper Metal & VAP - Production and Sales in Kt
Production : Copper Cathode (Kt) Production : CC Rod (Kt) ▪ Cathode Production was

76 low due to maintenance

97 shutdown in Smelter-3
63 44
41 26

Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22

Sales : CC Rods (Kt) ▪ Metal and CC Rod sales were

Sales : Copper Metal (Kt)
low due to lower production
73
107 and softening of the
80
46 domestic market in Q1FY22
58
31

Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22

Hindalco Industries Limited 25

Financial Performance – Copper Business

Revenue (₹ Crore) EBITDA (₹ Crore)

8,508
7,094 322
261

3,031

66

Q1FY21 Q4FY21 Q1FY22

Q1FY21 Q4FY21 Q1FY22

▪ Revenues were up by 134% YoY in Q1 FY22, on

▪ EBITDA at ₹261 crore in Q1 FY22 compared to ₹66
account of higher global prices of copper compared
crore in the corresponding quarter, up 295% YoY
to the corresponding quarter of the last year

Hindalco Industries Limited 26

 Consolidated Financial Performance

Hindalco Industries Limited 27

Consolidated Financial Performance
Revenue (₹ Crore) EBITDA (₹ Crore)

40,507 41,358 6,790

5,845
25,283
2,359

Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22

PBT after Exceptional Items (₹ Crore) PAT for Continuing Operations (₹ Crore)

4,553 3,254

3,254
1,945

Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22

(600) (569)

Hindalco Industries Limited 28

Consolidated (Debt Position)
(₹ Crores)
As on As on As on As on As on
Particulars
30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21
Gross Debt 84,181 78,266 71,996 65,994 67,836
Cash & Cash Equivalents 21,879 20,265 18,194 18,575 15,923
Net Debt 62,302 58,001 53,802 47,419 51,913
TTM Adjusted EBITDA 16,276 16,491 17,409 18,293 21,997

Net Debt : EBITDA(x)

4.50

4.00
3.83
3.50 3.52

3.00 3.09

2.50 2.59
2.36
2.00

1.50
30-06-2020 30-09-2020 30-12-2020 31-03-2021 30-06-2021

Hindalco Industries Limited 29

 In Summary

Hindalco Industries Limited 30

Key Focus Areas

Product Mix Diversification

Profitable Growth
/ Enhancement

Profitable growth through investments in

recycling, debottlenecking and organic Enrich product mix through increasing the share
expansions in more stable and predictable of high-end value-added products in the overall
downstream businesses product portfolio
Stakeholder
Value
ESG
Enhancement Optimum Capital Structure

Strengthen capital structure by accelerating the

Creating a sustainable world together pace of deleveraging through robust cash
through strong commitment to ESG generation

Hindalco Industries Limited 31

Thank You
 Annexures

Hindalco Industries Limited 33

 Consolidated – Key Financials
Change QoQ
Particulars (₹ Crore) Q1 FY21 Q4 FY21 Q1 FY22
YoY % Change %
Revenue from Operations 25,283 40,507 41,358 64% 2%
Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA)
Novelis* 1,919 3,705 4,090 113% 10%
Aluminium 973 1,820 2,352 142% 29%
Copper 66 322 261 -19%
All Other Segments 1 13 (6)
Business Segment EBITDA 2,959 5,860 6,697 126% 14%
Unallocable Income/ (Expense) - (Net) & GAAP Adjustments (600) (15) 93
EBITDA 2,359 5,845 6,790 188% 16%
Finance Costs 992 903 820 17% 9%
PBDT 1,367 4,942 5,970 337% 21%
Depreciation & Amortisation (including impairment) 1,551 1,722 1,649 -6% 4%
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax) 3 - 2
Profit before Exceptional Items and Tax (181) 3,220 4,323 2488% 34%
Exceptional Income/ (Expenses) (Net)# (419) 34 230
Profit Before Tax (After Exceptional Item) (600) 3,254 4,553 859% 40%
Tax (31) 1,309 1,299
Profit/ (Loss) from Continuing Operations (569) 1,945 3,254 672% 67%
Profit/ (Loss) from Discontinued Operations (140) (17) (467)
Profit/ (Loss) After Tax (709) 1,928 2,787 493% 45%
*As per US GAAP ; # Exceptional Income / (Expenses) for Q1FY22, exclude ₹346 crore (net of litigation cost of ₹9 crore) which represents the principal portion on PIS and COFINS related tax credit income as it is included in the Novelis segment result.
Hindalco Industries Limited 34
Hindalco (India) Business – Key Financials
(₹ Crore)
YOY QoQ
Particulars Q1 FY21 Q4 FY21 Q1 FY22
Change % Change%
Revenue from Operations 7,464 14,471 13,349 79% -8%
EBITDA
Aluminium 973 1,820 2,352 142% 29%
Copper 66 322 261 295% -19%
Other Segments 1 7 1 0% -86%
Business Segment EBITDA 1,040 2,149 2,614 151% 22%
Unallocable Income/ (Expense) (Net) 98 (248) (101)
EBITDA 1,138 1,901 2,513 121% 32%
Finance Costs 457 359 373 18% -4%
PBDT 681 1,542 2,140 214% 39%
Depreciation 514 526 525 -2%
Profit before Exceptional Items and Tax 167 1,016 1,615 867% 59%
Exceptional Income/ (Expenses) (Net) (39) 23 -
Profit Before Tax (After Exceptional Item) 128 1,039 1,615 1162% 55%
Tax 44 386 578
Profit/ (Loss) After Tax 84 653 1,037 1135% 59%

Hindalco Industries Limited 35

Production – Alumina

Alumina* (KT)

697 718
623

Q1 FY21 Q4 FY21 Q1 FY22

▪ Total Alumina production was up 15% YoY and 3% sequentially in Q1 FY22

▪ Production at Utkal Alumina refinery was 425 Kt in Q1 FY22 after the ramp up post maintenance shutdown taken in Q4 FY21

*Hydrate as Alumina

Hindalco Industries Limited 36

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
Telephone- +91 22 6691 7000
Website: www.hindalco.com
E mail: hindalco@adityabirla.com
Corporate Identity No. L27020MH1958PLC011238