Aluminum Rolling Outlook Platts Aluminum Symposium Presented by Nick Madden Senior Vice President and Chief Procurement Officer January 2012
Novelis is a Global Industry Leader The world ’ s leading The world’s largest The world ’ s largest recycler of used aluminum buyer of aluminum producer of rolled beverage cans aluminum products 2 2
Changing Industry Structure ► Downstream decoupling from metal supply ► Structural global demand growth 6%+ ► Customers going global ► FRP almost fully de-integrated ► Third party slab market developing ► Slab casting capacity needs to grow 3 3
Changing Industry Structure ► For Novelis... ► Focused business - portfolio of premium products ► Maturing pass-through business model ► Sustainability commitment ► Greater flexibility in metal strategy / increased recycling 4 4
Global rolled products demand is growing ► Growth 2010 – 2015 driven by global megatrends ► “Business as Usual” standard growth 2015 – 2020 ► Adds 11 Million tonnes to global demand 2010 - 2020 Future Past 35 0.12 30 0.1 25 0.08 20 FRP Demand 0.06 15 % CAGR 0.04 10 0.02 5 0 0 Source: CRU, Novelis 5 5
Long Term Global Trends in Aluminum Demand Automotive Specialties Beverage Can >25% 6% Long-term annual growth 4-5% rate (CY10-15) Strong Long Term Outlook Source: Novelis and CRU Estimates 6 6
2015: Asia ~ 50% of global aluminum rolled products market 12% Middle East 10% & Africa Asia Pacific 8% Average Annual Growth Rate 6% (CAGR % 1995-2015) Europe 4% Latin America 2% North America 0% -2% 0 2,000 4,000 6,000 8,000 10,000 12,000 Size of FRP Market (kt in 2015) Source: CRU March 2011 7 7
Global Trends Point to Increasing Aluminum Demand Sustainability Economic Development Material Preference Growing awareness Increasing urbanization, Increasing substitution of environmentalism modernization of to aluminum from other and demand for infrastructure, and materials in emerging recycled products global wealth markets 8 8
As largest global purchaser, Novelis has a leadership role Launched global Sustainability Commitment ► Will have major industry impact: suppliers, customers ► Reduces carbon intensity of our customers’ products ► Fundamental evolution of business model By 2020 We aim to have 80% of our products produced made from recycled materials 9 9
Primary Products – Excluding China Primary Smelter Product Mix Sheet Ingot Capacity (kt) 5000 4500 15% 4000 3500 3000 47% 2500 20% 2000 1500 1000 18% 500 0 Asia Africa/ME Ingot Slab Russia South America Billet Foundry / Other Europe North America 10 10
Novelis Investing in Supply Chain Aluminum plant expansion to create 100 new jobs Novelis Investing $400 Million to Grow its Operations in Asia Novelis Plans $15.8 million Italian Expansion Novelis Poised for Growth Amidst Slow Economy 11 11
Novelis Growth Roadmap ► Total capacity increase of ~1 mio tonnes through FY16 (CY2015) to 4 mio tonnes ► Requires proportionate increase in casting / recycling capacity Debottlenecking: ~90kt Portfolio optimization Automotive Capacity Multiple recycling projects Increase: ~200kt Debottlenecking: ~60kt Asian Rolling Expansion: ~350kt to 1 mio tonnes Debottlenecking: ~70kt UBC Recycling Pinda Expansion: ~220kt Debottlenecking: ~30kt UBC Recycling 12 12
Building a Lighter and Brighter Future ► Positive medium term outlook in FRP is unchanged ► 2012 will be slower than previously expected ► Novelis will invest ~$1.5bn and increase FRP capacity by 1 mio tonnes to meet requirements of our customers ► We will meet the growth with recycle based sheet ingot to: ► Secure economic supplies ► Meet our Sustainability goals. 13 13
Thank You
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