Investor Presentation Sep2010

An Industry Leader in Aluminium & Copper
Hindalco Industries Limited

Investor Presentation
September 2010
Disclaimer
This presentation may not be copied, published, distributed or transmitted. The information in this presentation is being provided by Hindalco Industries Limited (the Company). Any reference in this presentation to Hindalco Industries Limited shall mean, collectively, the Company and its subsidiaries. This presentation has been prepared for informational purposes only. This presentation does not constitute a prospectus, offering circular or offering memorandum and is not an offer or invitation to buy or sell any securities, nor shall part, or all, of this presentation form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. Furthermore, this presentation is not an offer of securities for sale in the United States, India or any other jurisdiction. This presentation may contain forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. The Company, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this presentation, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company.
Hindalco Industries Limited: Investor Presentation
Strategy to build upstream and buy downstream
Our Vision
To be a premium metals major, Global in size and reach, excelling in everything we do, and creating value for its
Towards a new Hindalco
stakeholders
ABG aspires to be in the Fortune 200 with a $65bn turnover by FY15 and Hindalco expected to be the torchbearer..
Hindalco : A promise delivered through stellar performance

Stronger StrongerNovelis Novelis

Paradigm shift in focus from volume driven to EBITDA driven Higher premiums and permanent cost cuts Well positioned in emerging markets with strong growth fundamentals One of the worlds largest recyclers of aluminium reduces costs and enables signficant reduction in energy consumption Signficant market share in FRP with strong global market outlook
From turnaround From turnaround to outperformerto outperformerEBITDA of EBITDA of US$1bn US$1bn
Existing ExistingIndian Indian Operations Operations

Asset sweating, Brownfield expansion on track Exploiting low cost base Increasing mix of VAP and domestic sales Dominant market share
Better Better profitability profitability amongst peers amongst peers
Focus Focuson on delivering delivering expansion expansionplans plans

Well timed capacity increases expected to be in the global best quartile for manufacturing costs Significant progress achieved reinforcing timely delivery capabilities
Ensures full Ensures full coverage across coverage across the value chain the value chain
1. Novelis : Successful Turnaround Story
Key themes
Way forward for Novelis: On the threshold of robust growth
I III II
Industry: Improved aluminium sector fundamentals with a positive demand outlook
Novelis turnaround: Dual benefit of pricing power and cost cutting, coupled with strong liquidity
Global Economies : Showing on the road to recovery

Global economic recovery continues YOY % GDP growth rate from Q2 2009 to Q2 2010 with improved sector outlook
I
Overall demand
(%)
10.3
(CY09-14)
Can Sheet
9.3
Automotive
Industrial/ Electronics
7.9
2.4
6.0
1.4
Asia
4-8%
8-10%
>10%
8%
0%
(0.7)
N. America
>15%
8-10%
4%
(5.3)
Europe
Europe China Q409 Q110 India Q210
2-3%
7%
4-6%
4%
US Q209
Q309
S. America
6%
10%
10%
7%
Q2 2010 growth rates for Europe and India are estimates
Major emerging economies such as China and India have rebounded strongly from global downturn
Global
3-5%
>10%
10%
6%
Novelis Turnaround in operations

Uptick in volumes...
116 201 88 191 289 307 323 353
II
800 750 700 650 756 600 88 550 500 Q2FY09 Q3FY09 Q4FY09 632 605 53 127
Shipm ents (kt)

Adjusted EBITDA/ton (US$)
Adjusted EBITDA (US$m n) 231 199
263
300 250 200 150
200 124 693 650
716 649
746 100 50 0
Q1FY10
Q2FY10
Q3FY10
Q4FY10
Q1FY11
Turnaround driven by a number of cost cutting initiatives
Restructuring globally across the Company to reduce labour and overhead costs through capacity and staff reductions Reduced manpower by 11%
Annual cost savings of US$140m achieved ahead of schedule Transfer of production facilities to low-cost regions relocation of Rogerstone facility to Hirakud Proactive risk management for commodity pricing, foreign exchange and interest rate risks
Novelis Convergence of Adj. EBITDA and EBITDA

Over time, Novelis has witnessed a gradual convergence between EBITDA and adjusted EBITDA
II
EBITDA (US$mn) 500 127 53 Q3FY09 Q4FY09 413 124 200 199 Q2FY10 Q3FY10 434 264
Adjusted EBITDA (US$mn)
214 88
231 164 Q4FY10
263 213
0 Q2FY09 (124) (500) Q1FY10 Q1FY11
(1,000)
Novelis strong risk management practices combined with the termination of certain ceiling contracts have led to a gradual convergence of EBITDA and adjusted EBITDA numbers
(1,500)
(2,000)
(1,868)
Novelis shipments sustained improvement across markets

North America
Segment income (US$mn)
37 57 75 99 89 101
II
Europe
15 33 60 60 94 88
Automotive
Q2 Q3 Q4 Q1
Automotive
Q4 Q1
Q4
Q1
Q4
Q1
Q2
Q3
Industrial
Shipments (kt)
246 254 258 243 274 278
Industrial
Shipments (kt)
227 188 185 203 188 232
Cans
Cans
Q4
Q1
Q2
Q3
Q4
Q1
Q4
Q1
Q2
Q3
Q4
Q1
South America
36 9 Q4 11 Q1 Q2 Q3 Q4 Q1 26 38 49
Asia
Automotive Industrial Cans
38 3 Q4 Q1 Q2 Q3 Q4 Q1 48 39 41 44
Automotive Industrial Cans
Shipments (kt)
130 86 139 134 129 146
Shipments (kt)
85 81
93 84
86
90
Q4
Q1
Q2
Q3
Q4
Q1
Q4
Q1
Q2
Q3
Q4
Q1
Current trend in Aluminium demand
Novelis Shipments
Novelis Segment Income
10
Global Leader in Aluminium Recycling
II
Novelis is one of the worlds largest recyclers of aluminium 9 plants on 4 continents
Aluminium recycling only requires 5% of energy used to produce primary aluminium Aluminium recycling avoids 95% of GHG emissions of primary aluminium smelting Novelis recycled 40 billion cans in FY2009 Reduced the need for primary aluminium by 530,000 metric tons Saved 73 million MMBTUS Avoided 5 million tonnes of GHG emissions
Recycling drives low cost position; positions the cans as environmentally preferred package
11
Sustained turnaround with strong liquidity

Visibly sustained turnaround in Operating and Financial Performance
41 FRP Shipments (kt)
800 756 716 700 650 632 600 88 500 Q2FY09 Q3FY09 Q4FY09 Q1F10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 127 53 0 124 605 200 693 649 231 199 100 263 200 300
II
$1,051
Strong liquidity (Mn)
44
43
40
41
42
41
36
400 746
Adjusted EBITDA (US$mn)
$1,026
$634 $446 $555
Q1FY10
Q2FY10
Q3FY10
Q4FY10
Q1FY11
Interest, net (US$ mn)

FRP Shipments (LHS) Adjusted EBITDA (RHS)
Cash and cash equivalents
Availability under the ABL facility

Strong liquidity: Now focuses on strategic capital allocation decision Excess cash may be utilized by Novelis towards future capex (the Company recently announced Pinda Project in Brazil) On its way to fuel Greater Hindalco growth
12
Novelis today
Inventory control Significant reduction in inventory through effective supply chain management De-risked business model Simple converter business (LME pass through)
III
6 1
Cost initiatives Relocation of facilities to low-cost regions Greater application of Novelis technology for global projects
High end products focus Continues to build on its strong market position in FRP Majority of product portfolio comprised of premium products Market leader in can recycling with strong technology focus
4
Effective Risk Management Strong controls and systems in place to reduce volatility
Well Balanced geographic mix Over 33% revenues from emerging markets
Novelis initiatives and multi-pronged strategy have successfully enabled it to turnaround operations Worldwide assets and expertise provide unique capabilities to regional/ global customers
13
Novelis going forward

One Novelis Drive Efficiencies and Reduce Costs Strategic & Opportunistic Investments
III
Expand and further consolidate leadership position Build on Novelis focused business model to become a fully integrated global company
Reduce overall cost base and improve manufacturing efficiency Leverage and streamline procurement Standardize financial and IT platforms Greater application of Novelis technology for global projects (such as Tata Motors)
Governed by operating efficiency gains and IRR hurdle rates Explore potential opportunities and identify optimum option for deployment of excess cash reserves Achieve plant optimization in developed markets Emerging markets and brownfield expansion focus
Pinda Project in Brazil
Novelis is on the threshold of robust growth, with plans to exceed $1B of Adjusted EBITDA per annum going forward
14
Strong Outlook for FRP Products

FRP growth worldwide from 2010 to 2015 (kt)
24,000
III
967 22,090
Areas of focus
22,000 639 3,088 20,000 338
343
222
18,000
16,493
16,000
14,000
12,000
10,000 2010 Asia MENA West. Europe East. Europe S. America N. America 2015
Focusing capex on growing economies; Europe & N.A to return to pre-recession levels
15
Novelis continues to be strong player in global can business

Novelis Dominant player in global can business
III

Beverage can portfolio Immune to economic downturn ~58% can body stock Recycling Go Green initiative Novelis bought over 40bn cans in FY10
Steady increase in contribution by beverage can segment
3% 4% 6% Beverage cans 45% Industrial Construction
FY08
Advantages of the Can Cans have considerable advantages over bottles in all relevant areas for retail and industry
Branding Freshness
Foil & Packaging Transport Lithography
9%
16%
Others 17%
2% 4% 7% 10%
8% Beverage cans Industrial 54% Construction Others
FY10
Variety
Logistics
Foil & Packaging Transport Lithography
FY09 Can shipments 1,557 KT FY10 Can shipments 1,580 KT
15%
16
2. Continued impressive performance of Indian operations
Key themes
Copper business: Steady margins despite decline in TcRc II rates, with good by-product realizations; situation expected to improve
Industry : Improved Domestic aluminium sector fundamentals with a positive demand outlook
III II
Focused growth of Indian operations All round improvement in Al
18
Hindalco at the forefront of the explosive growth in India

India: Strong growth in end user industries
Aluminium consumption (kt) Electrical & Electronics

435
Building & Construction
390
Large scope for metal consumption to rise from current levels End user segments have a strong/positive outlook i.e. Power, Transport, Construction, Industrial etc Rising per capita consumption of Al in India Strong metal sector growth Al consumption and Cu consumption
FY10 Q1
FY11 Q1
11.5%
Consumer Durable
Copper consumption (kt) Automobile & Transport

166
160
Industrial Machinery
FY10 Q1
FY11 Q1
3.8%
Packaging
Insulated from global pressures due to exposure to Power sector in India accounts for c.48% of aluminium usage in India
Hindalco Industries Limited: Investor Presentation 19
Indian Al operations robust growth prospects

Alumina (kt) Metal (kt) Wire rod (kt) FRP (kt) Extrusions (kt)
II
6%
1,307
6%
555 75
23
92
13
205
8%
39
523 1,237 182 36
FY09
FY10
FY09
FY10
FY09
FY10
FY09
FY10
FY09
FY10
Higher alumina and metal production on he back of Brownfield expansions increased volumes of downstream value added products
20
Hindalco: Low cost position

Hindalco Aluminium smelters are in the best quartile (25th percentile) on cost US$/ t
3,000
120 115 110 105 100 95 90 85 80 75 70
II
Further set to benefit from Hirakud Cost Advantage
114 110 102 100 95 107 102
29.5 29.0 28.5

104 99
29.0 28.5 28.0 27.5
Site Operating Cash Cost Curve

2,500 2,000 1,500
28.0 27.0
86
84
86
27.0 26.5 26.0
Renukoot Business Operating Costs

1,000
Hirakud Business Operating Costs

Renukoot
FY10Q1
FY10Q2
FY10Q3
FY10Q4
Hirakud share in output (%)
500 0 1% 25% 41% 52% 63% 75% 85% 94% 100%
Overall Hirakud
The only smelter which uses captive coal and power
Aluminium conversion cost (Rs/t, Indexed)

100
% of World Production
Cost control initiatives launched proactively ahead of the global downturn have helped The Company has been able to maximize production output at Hirakud, which has access to captive coal Costs to reduce further as Greenfield projects come on stream
FY09
94
FY10
Hindalcos Indian aluminium operations ranked amongst the lowest cost producers of aluminium globally
21
VAP to drive margins

VAP: Key driver for Hindalcos downstream operations Healthier product-mix and geographic mix (kt)
II
VAP sales: One of the key drivers for Hindalcos sales in India Key brands commanding significant market share; has 53% market share in domestic Rolled Products sales* Increasing downstream applications in India; Hindalcos well balanced product portfolio would consolidate market leader position High margins further enhanced with duty protection
Key Brands
521
40%
6%
555
43% VAP Primary
60%
57 %
FY09
FY10
521
31%
555
18% Exports
Hindalco has a dominant market share in FRP
69%
82%
Domestic
FY09
FY10
Hindalcos downstream products command market premium with significant market share in India Hindalco expects to increase VAP going forward and maintain its dominant market share going forward
New initiatives undertaken by Hindalco

Al Railway Wagon in India Aluminisation in Automotives
II
Development of Aluminium hoods & roof
Al Roofing's for Construction
Al Bicycle Frames
Al. Swing Arm Al Boats
Hindalco has pioneered new range of futuristic value added product range with a potential to improve margins
23
Hindalco: Long on Alumina

Global Alumina Third Party Market (mn tons)
II
China increasingly dependent on ROW for its alumina requirement Rising Alumina cost further adds to Chinese costs
ROW
China
18
2.3
Hindalco 2010: Integrated Upstream Operations

Upstream
Hindalco 2012: Integrated Global Upstream Operations

Upstream
16.4 8.1 10.8
16
Alumina Aluminium Alumina Aluminium
mtpa
1980 1990 2000 2010
1.5
0.6
3.0
1.4
Contract alumina prices up from 12-12.5% of LME historically to 13-13.5% in 2009 and to 14-15% in 2010
Going forward Hindalco will be long in Alumina
Chinas dependence is positive for Hindalcos long alumina position Delinking of Alumina prices from the LME and introduction of spot price would benefit Hindalcos long alumina position
Steps taken by Hindalco to strengthen copper business

Key focus areas Drivers
III
1 2 3 4 5 6
Capital Efficiency
Cost effective brown field expansion Strategic advantage through technology Asset sweating Service level differentiation Quality edge Jetty /port infrastructure to overcome locational disadvantage Sourcing Mix optimisation Regional redistribution points Global Scale Top Quartile Cost Curve By-Products value extraction Value added downstreaming A cost effective Upstreaming strategy Mining acquisition Strategic alliances/partnership
Leadership in domestic market offering better realisation
Supply Chain Reengineering
Global Cost Competitiveness
Value Chain Enhancement
Long Term feedstock securitisation
Transforming the copper business into a globally competitive smelting value chain
25
Copper Operations - Good performance despite tough market conditions

Cathode (kt) Nifty production (tons)
56,450
7% 12% 4%
III
14%
999 1,043 298 333
49,600
170
182
FY09
FY10
DAP (kt)
Cathode (kt) FY09 FY10
Sulfuric Acid (kt)
Overall production down 19% to 57kt due to conscious idling of Mt. Gordon
Performance at ABML (US$mn)
440 448
Copper Cathode cost w/o any credits (c/lb, indexed)

100 73
FY09
FY10
166

Sustained improvement in key parameters like recovery and energy consumption Energy-mix : more usage of petcoke and LNG Ratio of VAP to cathode production up from 37% to 53% DAP production increased significantly
72 (60) (89)
Sales (US$mn)
EBIDTA (US$mn) FY09 FY10
PAT (US$mn)
26
Strong financial performance (standalone)

8% 21% 12% 14% 15% 17%
1,500
Sales (US$m n)
EBITDA (US$m n)
LME prices (US$) 2,199
EBIDTA Margin (%)

2,122 1,175 1,126
2,500
1,300 1,836 1,100 1,530 1,069 1,155
2,037
2,000
900
820
1,401
847
1,500
700 1,000
500
300 181 100 68 132 163 182
196
500
(100)
Q4FY09
Q1FY10
Q2FY10
Q3FY10
Q4FY10
Q1FY11
Exchange Rate: US$1: INR46
27
3. Expansion Projects : Aggressively focused on delivery with calibrated financial closure on course
Robust project pipeline backbone to deliver growth future growth

Project Timing Expected Completion Project Cost (US$mn) Comments
Mahan Aluminium
Q2FY12
US$ 2,000 mn

Basic Engg-94 % Complete, Detailed Engg-60% Complete Major approvals in place Orders for all major, long delivery equipment placed More than 10,000 people at site. Major Contractors like L&T, BHEL, Rohan Builders etc have been mobilized fully
Aditya Aluminium
Q3FY12
US$ 2,000 mn
Detailed Engg-59% Complete for smelter & 25 % complete for CPP Major approvals received. Forest land stage I clearance received.
Permission to start project site consolidation activities received. Stage II clearance is progressing
Utkal Alumina
Q2FY12
US$ 1,217 mn
Basic Engg-100 % Complete, Detailed Engg-92% Completed All statutory clearances have been obtained More than 5000 people working at site. Major Contractors like L & T,
Simplex, GDC mobilized fully at site
Aditya Refinery
Q1 FY14
US$ 1,304 mn
c.1,387 Acres of land registered in name of company, process for

balance land is in progress Water drawl agreement to draw upto10.42 cusecs obtained
Jharkhand Aluminium
Q1 FY14
US$ 2,174 mn
Total land requirement of c.4,000 acres for the project. Application for
acquisition of private land has been submitted Water drawl clearance received for 55 MCM and DFR is complete
29
Update on Project : Greenfield

Mahan aluminium, Madhya Pradesh Aditya aluminium, Orissa Utkal alumina, Orissa
Key Benefits
Nature Scope
Smelter 359 ktpa smelter 900MW power plant
Smelter 359 ktpa smelter 900MW power plant
Refinery 1,500 ktpa
Well timed capacity increase
Project Cost (US$mn)
US$ 2,000 mn
US$ 2,000 mn
US$ 1,217 mn
57%
83%
49%
66%
66%
82%
Lower Production Cost
% committed
% % com m itted com m itted at tim e of current QIP
Lower Capex Cost ( on a per ton basis)
Land spread
3,750 acres
870 630
3,328 acres
924 522 109 300 2010 2011 2012 217 2013
6,578 acres
522 370 283 44 2013
Raw Material Coverage
Capex ramp up (US$mn)
337
2010
2011
2012
2013
2010
2011
2012
Greater Integration
Expected Completion
Q2FY12
Q3FY12
Q2FY12
30
Progress of Key Projects
Bauxite Mine & Refinery
Utkal Alumina

Basic Engineering 100% and Detailed Engineering 92% completed Statutory approvals obtained Site progress c.5,000 people working at site; major contractors have been mobilized; 87% of Piling work completed; RCC, structural fabrication 33% complete; Tankages erection under progress Power plant Erection of BTG units under progress Financial closure achieved Syndication launched for US$1,087mn against which a response received for c. US$2,391mn and Documentation completed
Mahan Aluminium
Basic Engineering 94% and Detailed Engineering 60% completed Statutory approvals major approvals in place Site progress c.10,000 people working at site; Smelter - Site Grading 55% complete; structural - under progress Power plant 5 boiler units, 4 ESP units, 2 power units completed, First chimney 88 m completed, second chimney 40 m completed Financing - DFR completed, preliminary discussion with banks for financing has commenced and Banks are willing to underwrite entire fund requirement
Aditya Aluminium

Detailed Engineering 59% completed for smelter and 25% complete for CPP Statutory approvals major approvals in place - Forest land stage I clearance received. Site progress c.10,000 people working at site; Smelter - Site Grading 65% complete; structural - under progress. R & R houses-30 % houses completed Financing - DFR completed, financing being launched shortly

31
Update on Project : Brownfield
HIRAKUD, ORISSA
HIRAKUD, ORISSA
PINDA, BRAZIL
Smelter Expansion - Capacity increase from 161 to 213 KTPA through addition of 80 Pots of 235 kA. The plan is to
Hirakud, Orissa

expand the capacity to 360 KT Power Plant Expansion - Capacity to increase to 467.5 MW by addition of 100 MW Progress - DCPL has been engaged as the EPCM consultant . Basic Engineering by GAMI-LOT A & B Basic Engineering documents recd. 3rdLot also in final stage. Orders placed for 100 MW turbine/generator and boilers. Enquiries for FTP, Rectifier station, PTM have been floated. Orders to be placed by end August. Site grading 80 % completed. Project Schedule - 30 pots to be commissioned by Dec2011 & balance 50 pots by Mar2012.
Nature and Scope Transfer of Novelis UK can factory to India Progress - 98 % dismantling completed. Containers are being dispatched and some have arrived in India. Cold and FRP, Hirakud, Hot Mill orders placed with vendors (Achenbach and ABB). Site office developed for project team. Site Grading and Orissa
Boundary Wall Construction in progress. 165 persons working at site.
Project Schedule To be completed by Q2FY12 Nature and Scope Expansion of the VAP facility to 600 ktpa. The expansion is expected to cost c.$300m Progress recently conceived Project Schedule - To be completed by Q3FY13
Pinda, Brazil
32
Project Capital expenditure and financing need

Project spending for key projects (US$mn)
6,000
5,000
2,000 4,000 3,652 3,000 5,217 2,000 2,000 391 1,000 1,217 1,174
70%
Treasury
Already spent
0 Utkal Alumina Mahan Aluminium Aditya Aluminium Total Project Finance Equity contribution
Post the successful QIP transaction, Hindalco is well positioned to raise additional debt for its planned projects Hindalco has over US$1 bn in Treasury
Exchange Rate: US$:INR 1:46
33
Impressive financial performance with upward momentum in profitability
Strong financial performance (consolidated*)

4.4% 10.9% 10.2% 11.1% 11.5% 12.5%
6,000
Sales (US$m n)
EBITDA (US$m n)
LME prices (US$) 2,199 2,037
EBIDTA Margin (%)

2,122
2,500
5,000 1,836
2,000
4,000 1,401 3,000 2,759 2,807
1,530 3,250 3,267
3,595
3,659 1,500
1,000 2,000
500 1,000 121 0 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 305 332 362 413 459
* Consolidated: comprises Hindalco standalone and Novelis results Exchange Rate: US$1: INR46
35
Debt Position (Consolidated)

Novelis
Repayment schedule
3,000 2,631 2,414
US$ in mn
Over 90% of debt back-ended

2,000
1,000 145 0 Debt (30 June 2010) Within 1 yr 2 years 3 years 4 years 5 years After 5 years 16 16 16 24
Hindalco
3,000
US$ in mn
Repayment schedule*
2,000
1011
Repayment of Novelis loan commences in FY12
1,000 1418 61 0 Debt (30 Jun 2010) 2010-11 2011-12 Secured Loan 354 354 173 2012-13 304 234 2013-14 Novelis Loan Recourse 448 2014-15 76 2015-16
* Hindalco Repayment Schedule includes Hindalco Standalone Debt consisting of secured loans & unsecured foreign currency loan and Novelis Loan Recourse; does not include working capital loans Exchange Rate : US$1: INR 46
36
Favourable Market Outlook
Robust world consumption for Al post rebound in 2010

Sustained robust demand for Aluminium over the next few years Projected primary aluminium consumption by region (in MMT) Rest of World Russia India Latin America Asia w/o China, India and Russia
12%
2%
7% 0.4%
2009 Actual 2010 Forecast 2011E
Rest of World Russia 2009 Global demand growth rate: -4%
0%
8%
4.2%
9%
4.7%
India Latin America Asia w/o China, India and Russia North America Europe 2010 Global demand growth rate: 11% (2010 ex-China: 8%)
North America
7% 6% 3.1%
Europe
-13% 14% 4.6%
-19%
7%
3.6%
2011 Global demand growth rate: 8% (2011 ex-China: 4%)
China
-25% 6% 3.4%
16%
2010E Consumption
Source: Industry Reports
15%
14.0%
China
38
Robust world consumption for Al post rebound in 2010

Positive Outlook for Aluminium to continue with China and India aluminium demand consumption to outpace production
China
Production Consumption 21,434 23,148 19,306 25,000 20,879
India
Production Consumption 1,755 1,588 1,712 1,563 1,5031,636 1,550 1,439 1,473 1,304 1,798 1,597
18,934 16,605 17,600 14,446 16,115 15,025 12,846
2009
2010E
2011E
2012E
2013E
2014E
2009
2010E
2011E
2012E
2013E
2014E
Source: Industry reports
China was a net exporter of aluminium in June 2010 for the first time since 2008 production was at record levels One year contango still higher than storage costs (US$/T)
200 1 yr contango Storage + Financing cost
Regional Premiums close to all time highs due to paucity of aluminium in the physical markets
500% 400% 300% 200% 100% 0% May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10
Midwest
Japan
Europe
150
Contango flat for last one year
100
50 Jan-08 May-08 Sep-08

Jan-09 May-09 Sep-09
Jan-10 May-10
39
Drivers for consumption growth in India in place

Robust growth outlook 8.4
12 9.4 8 4 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 7.5
to continue to drive Aluminium consumption 10.4 9.4

1.68 1.85
8.4
8.2
11.6
9.9
8.5
9.0
2.8
2.07 1.45
6.7
7.2
0.86
0.96
1.08
1.21
1.28
2010E
2011E
2012E
2013E
GDP growth (%)
Industrial Production growth (%)
Source: Office of Economic Advisor (India), IMF, Industry reports
is expected to continue showing robust demand
Consumption by various industry segments

Others 17%
Generation capacity to increase by 68,869 MW in 2007-12 Privatization of electricity T&D and emphasis on improving existing infrastructure to strengthen domestic aluminium demand Increased use of aluminium in automobile and two-wheeler manufacturing to further bolster domestic demand Underpenetration in India also augurs well for future demand Per capita consumption 1.1 kg in 2009 as compared 1025 kg in developed European countries and USA
Industrial 7%
Power 48%
Construction 13%
Transportation 15%
Source: Aluminium Association of India
2014E
40
2004
2005
2006
2007
2008
2009
Favorable Demand outlook: Reflected in Al forward prices

Aluminium forward price curve (US$/t) Steadily rising
2,300 2,250 2,200 2,150 2,100 2,050 2,000 Sep-10
5 year forward curve price change (Sept 2010- Nov 2015)

12.0%
Last Price
1.6% -0.9%
-13.0%
Dec-11 Mar-13 Jun-14 Sep-15
-13.6% Nickel Lead Zinc
Aluminium
Copper
Source: Bloomberg (August 2010)
Source: Bloomberg (August 2010)
Key Drivers for Aluminium Prices

Recovery of US/ European markets and continued robust growth in Asia/ Latin America; China to witness acceleration phase in demand for Aluminium Reduced production capacity, declining global aluminum inventories growing tightness in prime and value added products Launch of physical backed Aluminum Exchange Traded Funds (ETF) Wider application of Aluminum, especially in Auto and Industrial segments
Aluminium continues to be the only major non-ferrous metal with a double digit forward price growth (over a 5-year time horizon)
Re-rating due to visibility of growth and focused strategy in place
Well defined Growth drivers for Hindalco

Hindalco Today
Revenue (FY10) USD 12.9bn EBITDA (FY10) USD 1.4bn
Hindalco Tomorrow
ABG aspires to be a $65bn turnover by FY15 and Hindalco expected to be the torchbearer..
Alumina
Greenfield Projects
Value Added Products
Long on Alumina
- from 1.5 mtpa currently to 3 mtpa in the future
Greenfield projects expected to be

in global best quartile for manufacturing costs
Expansion of the Pinda project

would increase emerging market exposure to over c.40%
Amongst the largest producers of Specialty Alumina (expanding capacity to 350 kta) globally with a 90% domestic market share in India bauxite and set up alumina refinery
Scalability of Greenfield projects to

provide uptick in margins in the future
Expects to increase mix of VAP and

introduce futuristic value added products to provide further upsides to revenues and margins
JV in Cameroon in place to mine
Strong EBITDA profile for new

projects to improve growth fundamentals and capital structure
To deliver high end products in

Hirakud (Project Blue Fox)
43
Towards Sustainable Leadership

Domestic operations

Expansion Projects

Novelis
Driver

User industries of aluminum have a bullish outlook Robust sector fundamentals Long on Alumina Introduction of new futuristic value added products (Al) New avenues for copper use

Financial closure on track for key Greenfield projects Greenfield projects expected to be in global best quartile for manufacturing costs Infrastructure available for further scalability in the future Brownfield capacity increase advantage
Improving product mix to drive margins and growth Successful relocation of Roger Stone Convergence of EBITDA and Adjusted EBITDA Leader in Al Recycling
Strong risk management practices in place Leading market share in VAP Continued focus on operational excellence for both Aluminum and Copper Low cost base and robust derisked business model

Highlights
Focus on timely delivery of planned projects Maintain high quality of execution Greenfield projects will further sharpen the competitive positioning Low capex cost per ton with best in class operating capacities
Financial turnaround with continued operational improvement Leverage on high end technology Brownfield expansion Pinda project, Brazil

Sustainable growth Strategy Price Leader
Achieve potential
Stabilize and transform
Cost Leader
Capability Leader
Seamless Global One Metal business

Thank You!
Hindalcos Copper Operations - Focused Value Extraction in Copper

Cu Conc. Smelter Cu Anodes Refinery
Cu Cathodes
Sulphuric Acid Rock Phosphate
Anode Slime
Phosphoric Acid Plant
Precious Metals Refinery
Ammonia
Phosphoric Acid
Di-Ammonium Phosphate (400 ktpa)
Gold (15 ktpa)
Silver (150 ktpa)
Captive All-Season Jetty
Captive 135MW power plant
Captive Oxygen Plant
Ability to extract value from By-Products and Captive Infrastructure

46

Investor Presentation Sep2010

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Investor Presentation Sep2010

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An Industry Leader in Aluminium & Copper

Hindalco Industries Limited

Hindalco Industries Limited: Investor Presentation

Strategy to build upstream and buy downstream

Towards a new Hindalco

Hindalco : A promise delivered through stellar performance

Stronger StrongerNovelis Novelis

From turnaround From turnaround to outperformerto outperformerEBITDA of EBITDA of US$1bn US$1bn

Existing ExistingIndian Indian Operations Operations

Better Better profitability profitability amongst peers amongst peers

Focus Focuson on delivering delivering expansion expansionplans plans

Hindalco Industries Limited: Investor Presentation

1. Novelis : Successful Turnaround Story

Way forward for Novelis: On the threshold of robust growth

Industry: Improved aluminium sector fundamentals with a positive demand outlook

Hindalco Industries Limited: Investor Presentation

Global Economies : Showing on the road to recovery

Q2 2010 growth rates for Europe and India are estimates

Hindalco Industries Limited: Investor Presentation

Novelis Turnaround in operations

Shipm ents (kt)

Adjusted EBITDA (US$m n) 231 199

300 250 200 150

200 124 693 650

Turnaround driven by a number of cost cutting initiatives

Hindalco Industries Limited: Investor Presentation

Novelis Convergence of Adj. EBITDA and EBITDA

Adjusted EBITDA (US$mn)

231 164 Q4FY10

0 Q2FY09 (124) (500) Q1FY10 Q1FY11

Hindalco Industries Limited: Investor Presentation

Novelis shipments sustained improvement across markets

Automotive Industrial Cans

Current trend in Aluminium demand

Novelis Segment Income

Hindalco Industries Limited: Investor Presentation

Global Leader in Aluminium Recycling

Novelis is one of the worlds largest recyclers of aluminium 9 plants on 4 continents

Hindalco Industries Limited: Investor Presentation

Sustained turnaround with strong liquidity

Strong liquidity (Mn)

Adjusted EBITDA (US$mn)

$634 $446 $555

Interest, net (US$ mn)

Cash and cash equivalents

Availability under the ABL facility

Hindalco Industries Limited: Investor Presentation

Novelis going forward

Pinda Project in Brazil

Strong Outlook for FRP Products

22,000 639 3,088 20,000 338

Novelis continues to be strong player in global can business

Foil & Packaging Transport Lithography

8% Beverage cans Industrial 54% Construction Others

Foil & Packaging Transport Lithography

FY09 Can shipments 1,557 KT FY10 Can shipments 1,580 KT

Hindalco Industries Limited: Investor Presentation

2. Continued impressive performance of Indian operations

Hindalco Industries Limited: Investor Presentation

Hindalco at the forefront of the explosive growth in India

Aluminium consumption (kt) Electrical & Electronics

Building & Construction

Copper consumption (kt) Automobile & Transport