August 25, 2016 2:27 PM ET

Metals and Mining

Company Overview of Novelis Inc.

Company Overview

Novelis Inc. produces and sells aluminum rolled products. The company operates through four segments: North America, Europe, Asia, and South America. It produces aluminum sheet and light gauge products primarily for use in the beverage and food cans, electronics, containers and packaging, automotive and other transportation, architectural, and other industrial applications. The company was founded in 2004 and is headquartered in Atlanta, Georgia. Novelis Inc. is a subsidiary of AV Metals Inc.

3560 Lenox Road

Suite 2000

Atlanta, GA 30326

United States

Founded in 2004

11,970 Employees

Phone:

404-760-4000

Key Executives for Novelis Inc.

Chief Executive Officer and President
Age: 45
Chief Financial Officer and Senior Vice President
Senior Vice President and President of Novelis Europe
Age: 46
Senior Vice President and President of Novelis North America
Age: 59
Senior Vice President and President of Novelis South America
Age: 58
Compensation as of Fiscal Year 2016.

Novelis Inc. Key Developments

Novelis Inc. Amends Tender Offer for its 8.375% Senior Notes Due 2017

Novelis Inc. announced that it has amended the terms of its previously announced tender offer to purchase for cash its outstanding 8.375% Senior Notes due 2017 (the Notes) to increase the aggregate principal amount of Notes that may be purchased from $500.0 million to any and all of the outstanding Notes. All other terms of the tender offer, as previously announced, remain unchanged. The tender offer is being made upon, and is subject to, the terms and conditions set out in the offer to purchase, dated August 15, 2016 (the Offer to Purchase), and the related Letter of Transmittal. The tender offer will expire at 12:01 a.m., New York City time, on September 13, 2016, unless extended or earlier terminated by the company (such time and date, as the same may be extended or earlier terminated, the expiration time). In order to be eligible to receive the Total Consideration (as described below) for tendered Notes, holders must validly tender and not validly withdraw their Notes prior to 5:00 p.m., New York City time, on August 26, 2016, unless extended or earlier terminated by the Company (such time and date, as the same may be extended or earlier terminated, the early tender deadline). The total consideration for each $1,000 principal amount of Notes validly tendered and not validly withdrawn and accepted for purchase pursuant to the tender offer will be an amount equal to $1,021.25, payable in cash to holders that validly tender their Notes prior to the Early Tender Deadline, plus accrued and unpaid interest. The total consideration set out above includes an early tender payment of $30 per $1,000 principal amount of Notes, payable only to holders that validly tender and do not validly withdraw their Notes prior to the Early Tender Deadline. Holders of Notes validly tendered after the Early Tender Deadline will not receive an Early Tender Payment.

Novelis Announces Tender Offer for 8.375% Senior Notes Due 2017

Novelis Inc. announced that it has commenced a cash tender offer to purchase up to $500 million of its 8.375% senior notes due 2017. The tender offer will expire at 12:01 a.m., New York City time, on September 13, 2016, unless extended or earlier terminated by the company (such time and date, as the same may be extended or earlier terminated, the Expiration Time). In order to be eligible to receive the Total Consideration (as described below) for tendered Notes, holders must validly tender and not validly withdraw their Notes prior to 5:00 p.m., New York City time, on August 26, 2016, unless extended or earlier terminated by the Company (such time and date, as the same may be extended or earlier terminated, the "Early Tender Deadline). The tender offer is subject to the satisfaction or waiver of certain conditions as described in the Offer to Purchase, including the receipt of at least $500 million in gross proceeds from one or more offerings of senior notes on terms reasonably acceptable to the Company, and certain general conditions, in each case as described in more detail in the Offer to Purchase. If any of the conditions are not satisfied, the Company may terminate the tender offer and return tendered Notes, may waive unsatisfied conditions and accept for payment and purchase all validly tendered Notes, may extend the tender offer or may otherwise amend the tender offer. The Total Consideration for each $1,000 principal amount of Notes validly tendered and not validly withdrawn and accepted for purchase pursuant to the tender offer will be an amount equal to $1,021.25, payable in cash to holders that validly tender their Notes prior to the Early Tender Deadline, plus accrued and unpaid interest. The Total Consideration includes an Early Tender Payment" of $30 per $1,000 principal amount of Notes, payable only to holders that validly tender and do not validly withdraw their Notes prior to the Early Tender Deadline. Holders of Notes validly tendered after the Early Tender Deadline will not receive an Early Tender Payment. Notes validly tendered prior to the Early Tender Deadline may be validly withdrawn at any time prior to the Early Tender Deadline. Notes validly tendered prior to the Early Tender Deadline may not be validly withdrawn after the Early Tender Deadline.

Novelis Inc. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended June 30, 2016; Provides Capital Expenditure Guidance for the Year 2016

Novelis Inc. reported unaudited consolidated earnings results for the first quarter ended June 30, 2016. For the quarter, net sales were $2,296 million against $2,634 million a year ago. Income before income taxes was $60 million against loss of $45 million a year ago. Net income attributable to common shareholder was $24 million against loss of $60 million a year ago. Net cash used in operating activities was $107 million against $288 million a year ago. Capital expenditures were $44 million against $129 million a year ago. EBITDA was $229 million against $120 million a year ago. Adjusted EBITDA was $255 million against $127 million a year ago. Excluding certain tax-effected special items, the company reported earnings of $33 million up from $24 million a year before. Adjusted EBITDA, excluding the impact of metal price lag, increased 26.4% to $268 million, and adjusted EBITDA for South America was $73 million compared with $60 million. The increase in consolidated adjusted EBITDA was driven by higher productivity and lower costs associated with the start-up of new automotive finishing and recycling capacity in the prior year. The company continues to expect to spend approximately $250 million on capital expenditures with the vast majority planned as maintenance spend. Given the strong first quarter results, the company is confident that it will be able to achieve or exceed $250 million in free cash flow at current metal prices.

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