Q3 Fiscal Year 2024 Highlights

• Net income attributable to our common shareholder of $121 million, up significantly compared to $12 million in the prior year period; Net income excluding special items was $174 million, up 81% YoY

• Adjusted EBITDA of $454 million, up 33% YoY

• Rolled product shipments of 910 kilotonnes, flat YoY

• Adjusted EBITDA per tonne shipped of $499, up 33% YoY

Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, today reported results for the third quarter of fiscal year 2024.

"Novelis delivered a substantial year-over-year improvement in Adjusted EBITDA and Adjusted EBITDA per tonne margin, in line with our expectations of continued margin recovery this fiscal year," said Steve Fisher, president and CEO, Novelis Inc. "Our unmatched global scale, diversified end market product portfolio and recycling leadership is evident in our strong third quarter results and makes us an essential partner of choice for our customers. These differentiators also allow us to execute our ongoing strategy to invest in growth and organically increase our rolling and recycling capacity to shape a more sustainable future."

Net sales decreased 6% versus the prior year period to $3.9 billion for the third quarter of fiscal year 2024, driven by lower average aluminum prices as shipments were in line with prior year levels. Total flat rolled product shipments were 910 kilotonnes in the third quarter of fiscal year 2024 compared to 908 kilotonnes in the prior year period. Shipments were flat due to a decline in specialties product shipments from muted economic conditions in some markets, though more than offset by continued growth in automotive shipments and a return in demand for beverage packaging sheet.

Net income attributable to our common shareholder significantly improved versus the prior year to $121 million in the third quarter of fiscal year 2024, due primarily to higher Adjusted EBITDA. Adjusted EBITDA increased 33% versus the prior year to $454 million in the third quarter of fiscal year 2024. This significant improvement was primarily driven by favorable metal benefit from recycling, higher pricing, and lower operating costs than the prior year, which was heavily impacted by high inflation and geopolitical instability.

Net cash flow provided by operating activities was $420 million in the first nine months of fiscal year 2024 compared to $309 million in the prior fiscal year period, primarily due to favorable changes in working capital. Adjusted Free Cash Flow was an outflow of $517 million in the first nine months of fiscal year 2024, higher than the prior year period outflow of $170 million due primarily to higher capital expenditures, partially offset by higher cash flow from operating activities. Fiscal year-to-date 2024 capital expenditures total $960 million and reflect the planned increase in strategic investments in new rolling and recycling capacity under construction. The company had a net leverage ratio (Net Debt / trailing twelve months (TTM) Adjusted EBITDA) of 2.7x at the end of the third quarter of fiscal year 2024.

"We continue to expect adjusted EBITDA per tonne to return to a sustainable $525 level beginning this fiscal fourth quarter as shipments seasonally improve and we drive more operating leverage," said Devinder Ahuja, executive vice president and CFO, Novelis Inc. "Looking ahead, we believe there is opportunity for further margin expansion over time as we progress through our current period of disciplined, transformational capital investment to capture market growth."

The company had a strong total liquidity position of $2.1 billion, consisting of $787 millionin cash and cash equivalents and $1.4 billion in availability under committed credit facilities, as of December 31, 2023.

Bay Minette Update

Novelis is constructing a state-of-the-art, greenfield rolling and recycling plant in Bay Minette, Alabama, that we anticipate will be able to initially produce 600 kilotonnes of finished goods for the beverage packaging and automotive markets in North America. This is the first fully integrated aluminum plant built in the U.S. in nearly 40 years, and the largest project in company history. With a high level of project engineering complete, and all key equipment and the majority of materials contracted, the project capital cost is now expected to be $4.1 billion, and to  commission in the second half of calendar year 2026.

"We are building this plant not just for today, but for the next 40 years and beyond," said Fisher. "Bay Minette will be a true plant of the future, combining our decades of experience with the latest technology to improve safety, efficiency, and the sustainability of our products, while also providing the ability to double future capacity in a cost-effective manner. With customer contracts for beverage packaging already signed, and automotive contracting proceeding as planned, we remain confident in the double-digit return of this historic investment."

Third Quarter Fiscal Year 2024 Earnings Conference Call

Novelis will discuss its third quarter fiscal year 2024 results via a live webcast and conference call for investors at 7:00 a.m. EST/5:30 p.m. IST on Monday, February 12, 2024. The webcast link, access information and presentation materials can also be found at https://investors.novelis.com/. To view slides and listen to the live webcast, visit: https://links.ccwebcast.com/?EventId=NOV120224. To participate by telephone, participants are requested to register at:  https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=3131628&linkSecurityString=124c689f60