Novelis (Novelis) investor relations material

Executive summary

• Adjusted EBITDA rose 24% year-over-year to $516 million, with per ton EBITDA up 30% to $563, reflecting strong operational performance, insurance recoveries from the Oswego fire, and a high-recycled-content business model.

• Net sales increased 23% year-over-year to $5.8 billion, driven by higher aluminum prices, despite a 5% decline in total rolled product shipments due to Oswego-related disruptions.

• Oswego hot mill restarted in June after two major fires, with full production expected this quarter; $300 million in insurance recoveries received, and cumulative negative free cash flow impact from the fires peaked at $1.4 billion in Q1.

• Bay Minette commissioning is on track, with commercial shipments expected in Q1 FY 2028 and full ramp-up targeted within 18-24 months.

• Amendment No. 16 to the Credit Agreement increased the revolving credit facility from $2.5 billion to $3.0 billion and extended maturity to June 16, 2031, enhancing liquidity and flexibility.

Financial highlights

• Adjusted EBITDA: $516 million, up 24% year-over-year; adjusted EBITDA per ton: $563, up 30%.

• Net income attributable to common shareholder: $164 million, up 71% year-over-year; excluding special items: $265 million, up 128%.

• Net sales: $5.8 billion, up 23% year-over-year; total rolled product shipments: 916 kt, down 5%.

• Adjusted free cash flow outflow: $1.1 billion, mainly due to Bay Minette CapEx and Oswego fire impacts.

• Net leverage increased to 4.5x, with liquidity at $2.1 billion and a new $500 million term loan secured.

Outlook and guidance

• Expect to return to free cash flow positive by end of FY 2027 as Oswego normalizes and Bay Minette CapEx winds down.

• Full-year CapEx guidance: $2.1-$2.4 billion, including $350 million maintenance.

• Net leverage expected to fall below 4x by year-end as working capital releases and insurance recoveries continue.

• Bay Minette ramp-up to full capacity expected in 18-24 months; commercial shipments begin Q1 FY 2028.

• Ongoing cost discipline and insurance recoveries expected to support financial performance.