This presentation provides an overview of Hindalco Industries' financial and operational performance in fiscal year 2012. Some key points: - Hindalco achieved strong financial results despite severe cost pressures from rising coal, fuel, and input costs. Its portfolio strategy helped as upstream aluminum business faced margin squeeze. - Major projects like the Utkal alumina refinery, Mahan smelter and CPP, Aditya smelter and CPP, and Hirakud FRP plant are in advanced construction stages. - Hindalco strengthened its financing through a large NCD offering and preferential warrant allotment to its promoter. - The aluminum and copper businesses delivered improved production efficiencies and volumes compared

1. Hindalco Industries Ltd
Investor Presentation
Standalone FY12

2. Presentation Structure
Highlights
Performance Review
Projects Progress
2

3. Highlights and Financial Performance
3

4. FY12: Highlights
Strong performance despite severe cost pressures
Portfolio strategy depicted its benefits as upstream
business witnessed margin squeeze
Aluminium – Record production efficiency gains
production,
Copper – Strong all-round performance
Financing strengthened…
Largest NCD offering in the recent times (Rs 3,000 Crore)
Long Tenor, Attractive pricing
Preferential warrant allotment to promoter (~ Rs 2,160 Crore)
p ( ,
4 Projects - In advanced stages

5. 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 5.5
55
PAT 2,137 2,237 4.7
EPS (`) 11.17 11.69 4.7
5

6. Financial Performance (Standalone, Q4)
(Unaudited)
` Cr Q
Q4 FY11 Q
Q4 FY12 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

7. 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 Higher volumes & VAP
2100 700
2089
Better efficiencies
2000
600
1900
1800 500
Q1 Q2 Q3 Q4
7 -----------FY12-----------

8. Business Environment
8

9. 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 especially energy push due to geo-political
continued, geo political
concerns & India specific coal issues
Physical demand continued to remain strong even as inventory overhang
continued…
Of late, slowdown in China has clouded the demand outlook
9

10. Al. LME: Softened again
2700 2,663 World aluminium market had a
LME Al ($/t)
2600 750+kt surplus in Q1, 2012
p
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 ruling LME
abo e
1900
1800 Global inventory at 12.7 mn
tonne (102 days); return on
n-11
ul-11
t-11
b-12
r-11
y-11
g-11
p-11
v-11
c-11
n-12
r-12
r-12
Jun
Feb
May
Aug
Oct
Nov
Dec
Apr
Mar
Apr
Sep
Jan
Ju
warehousing deals positive at
Cost curve supports current present
LME level
10

11. 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

12. Performance Review
12

13. Key External Drivers
Aluminium LME ($/t) Other Drivers
2,500 (vis-à-vis year-ago period)
Q4 FY12 FY12
2,317
2,257
Coal
C l
2,177
FO and carbon costs
Q
Q4 F11 Q
Q4 FY12 FY11 FY12
Exchange Rate (`/$ ) Copper TCRC
50.28 Sulphuric Acid
47.92 realization
45.56
Significant Cost p
g f pressure
45.27
continues
Q4 FY11 Q4 FY12 FY11 FY12 13

14. 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 use
Strong operational performance helped us tide over the rough external
environment
14

15. 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 plant under
lockout till Q3
15

16. 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

17. 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 higher l
hi h volumes &
improved mix
FY11 FY12 FY11 FY12
17

18. 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

19. Copper Performance
19

20. 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) production
FY11 336 Optimization of the marketing mix
Greater value from selenium and
‘waste-to-wealth’ initiatives
FY12 330
Increased usage of external scrap
150 200 250 300 350
Improved recovery and efficiencies
20

21. 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

22. 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 S l
Sales 4,637
4 637 5,154
1 4 11.1
11 1
EBIT 206 293 42.5
22

23. Projects Progress
23

24. Utkal Refinery
Heat Exchanger erected Turbine alignment in progress
CHP Stacker and Reclaimer Erection of Rod Mill
24

25. Mahan Smelter & CPP
Pot Line Inside view Fume Treatment Centre
Turbine
T bi Power Pl
P Plant Vi
View
25

26. Aditya Smelter & CPP
Pot Room Switch Yard
Cooling Tower Power Plant
Chimney
26

27. Hirakud FRP
Hot Mill
Cold Mill
27

28. Summary….
India-specific cost p
p pressures continue – especially
p y
relating to coal
Operational excellence helped us tide over these
challenging times
Robust business model delivering results
28

29. Thank you