Company Overview Financial Highlights MD s Message Business Progress Financial Analysis Operational overview Capacity overview Annexure

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2 Disclaimer Certain statements in this cmmunicatin may be frward lking statements within the meaning f applicable laws and regulatins. These frward-lking statements invlve a number f risks, uncertainties and ther factrs that culd cause actual results t differ materially frm thse suggested by the frwardlking statements. Imprtant develpments that culd affect the Cmpany s peratins include changes in the industry structure, significant changes in plitical and ecnmic envirnment in India and verseas, tax laws, imprt duties, litigatin and labur relatins. Hindusthan Natinal Glass & Industries Limited will nt be in any way respnsible fr any actin taken based n such statements and undertakes n bligatin t publicly update these frward-lking statements t reflect subsequent events r circumstances. 2

3 Table f Cntents Cmpany Overview Financial Highlights MD s Message Business Prgress Financial Analysis Operatinal verview Capacity verview Annexure 3

4 Cmpany verview Dminant psitin Cnsumptin Ancillary Market leader in the cntainer glass segment Installed TPD capacity in India (2,925 MT) and Germany (320 MT); Planned capacity expansin t ~6,765 TPD at Glbal level by FY17 Diversified end user segment including Liqur, Beer, Beverages, Fd, Pharmaceuticals and thers Pan India Presence Manufacturing facilities in 6 lcatins acrss India, 7 th facility will start by March/April, 2012 Additinally, internatinal manufacturing ftprint thrugh its 100% subsidiary HNG Glbal GmbH, Germany Cmpetent management Strng management with vast experience and dmain knwledge Successful histry f acquiring lss-making units and turning them arund Well established custmer relatins Six decades f presence in the industry has enabled the Cmpany t develp lng standing custmer relatins Strng Balance Sheet In a capital intensive industry, the Cmpany has been able t maintain a cmfrtable lng term debt/ equity rati 4

5 Financial Highlights Q3 FY2012 Highlights Vs Q3 FY2011 Ttal Incme up 27% t Rs. 5,118.3 millin (Rs. 4,042.6 millin in Q3 FY2011) EBIDTA std at Rs millin (Rs millin in Q3 FY2011) PBT at Rs millin (Rs millin in Q3 FY2011) PAT std at Rs millin (Rs millin in Q3 FY2011) Diluted EPS at Rs. 2 (Rs in Q3 FY2011) 9 Mnths FY2012 Highlights Vs 9 Mnths FY2011 Ttal Incme up 20% t Rs. 13,712.3 millin (Rs. 11,429.9 millin in 9 Mnths FY2011) EBIDTA at Rs. 2,274.6 millin (Rs. 2,262.6 millin in 9 Mnths FY2011) PBT std at Rs millin (Rs. 1,153.1 millin in 9 Mnths FY2011) PAT at Rs. 603 millin (Rs millin in 9 Mnths FY2011) Diluted EPS at Rs (Rs in 9 Mnths FY2011) 5

6 Financial Highlights (cntinued) Q3 FY2012 Highlights Vs Q2 FY2012 Ttal Incme up 20% t Rs. 5,118.3 millin (Rs. 4,247.6 millin in Q2 FY2012) EBIDTA std at Rs millin (Rs millin in Q2 FY2012) PBT at Rs millin (Rs millin in Q2 FY2012) PAT std at Rs millin (Rs millin in Q2 FY2012) Diluted EPS at Rs. 2 (Rs in Q2 FY2012) 6

7 MD s Message Cmments n the perfrmance fr Q3 & 9M FY frm Mr. Mukul Smany, Vice Chairman & Managing Directr f the Cmpany : I am happy t share with yu the wrking results f the Cmpany fr the Quarter and Nine mnths ended 31 st December, The Sales Vlumes are up by ~7% in the 9 mnths perid. The market fr Glass Cntainers is shwing encuraging grwth. All ur user segments (Liqur, Fd, Sft Drinks etc.) are grwing handsmely and shw large prmise. The ttal csts per MT f prductin have increased by ~Rs. 2,100 in the 9M perid and that warranted a price increase. I am glad t share with yu that we have taken the price increase f abut 8% wef n 30% f ur sales vlumes, while n the remaining 70%, the price increase has been taken wef Our Greenfield and brwnfield New Furnaces are n stream. The 650 TPD Nashik brwnfield furnace is expected t be peratinal in February/March, Anther 650 TPD Naidupeta greenfield furnace is expected t be peratinal in March/April, This capacity increase f mre than 40% f ur present capacities ffers a large pprtunity t the Cmpany t gain further market-share. This vlume grwth withut any further Equity dilutin gives sharehlders f the Cmpany, share in the larger pie. 7

8 MD s Message (cntinued) The cmmdity prices have started sftening and we d nt see any large pressure f further priceincrease n cmmdity frnt (and in any way, the Cmpany has demnstrated the capability f passing n the increased csts in ur sales prices). Ging frward, the interest rates are als expected t sften, as they seem t have peaked ut and it shuld nly have a dwnward mvement ging frward, in rder t create further grwth in the ecnmy. The present levels f INR-USD rates have increased the lucrativeness f ur exprts, which is a psitive factr and yur Cmpany is taking steps t increase the exprt vlumes. Our German plant (100% Subsidiary) shws cntinuus signs f imprvement and is expected t break-even in the FY As we cntinue t build n ur slid fundatin, we are cnfident f delivering rbust financial and perating perfrmance in the years t cme. 8

9 Business Prgress Capacity expansin f 650 (TPD) at the existing Nasik facility is n schedule and is expected t be cmmissined by February / March 2012 Capex f Rs. 725 crre is budgeted fr this facility Greenfield capacity expansin at Naidupeta in Nellre district f Andhra Pradesh is prgressing well and is expected t be cmmissined by March / April 2012 Capex f Rs. 800 crre is budgeted fr this facility This manufacturing cmplex will huse India s largest single furnace with a capacity f 650 TPD and the wrld's largest cntainer glass end prt fired furnace f 175 sq. mt. Strategically lcated facility: T substantially strengthen peratins in Suth key market in India; and in-clse prximity t all key raw materials Integrating state-f-the-art-technlgy in facilities thrugh the latest capacity expansins T meaningfully lwer csts by incrprating further efficiency and imprving prductivity expected t reflect in perating perfrmance frm Q2 FY2013 9

10 Business Prgress (cntinued) HNG established its presence in Germany, ne f the largest markets fr fd and alc-bev industries in the wrld, thrugh the acquisitin f peratins f Agenda Glas (AG)**, Germany, in May 2011 Aligned with the Cmpany s plans t achieve glbal scale Sustained effrts have facilitated imprved capacity utilizatin and efficiency Technlgical synergies are expected t accrue acrss the existing spread f manufacturing units in India With the implementatin f cst ratinalizatin initiatives acrss manufacturing units and additin f capacities with higher efficiencies, perating and financial perfrmance is expected t witness significant imprvement ** Nw knwn as HNG Glbal GmbH 100 % Subsidiary f HNG 10

11 Financial Highlights Prfit & Lss Statement Snapsht Particulars Q3 FY12 Q3 FY11 Q2 FY12 Shift (%) Q3 FY12 Vs Q3 FY11 Shift (%) Q3 FY12 Vs Q2 FY12 9M FY12 9M FY11 (Rs. millins) Shift (%) Ttal Incme 5, , , % 20% 13, , % EBIDTA (1%) 5% 2, , % Margins 15% 19% 17% 17% 20% Depreciatin % 4% % Interest % 9% % PBT (45%) 2% ,153.2 (34%) Margins 4% 10% 5% 6% 10% Tax expense (46%) (7%) (38%) PAT (44%) 4% (33%) Margins 3% 8% 4% 4% 8% EPS (44%) 4% (33%) 11

12 Financial Highlights Balance Sheet Snapsht (Rs. millins) Particulars (Rs. mn) December 31, 2011 March 31, 2011 Net Blck / CWIP 23, ,845.4 Net wrth 12, ,661.5 Ttal Debt 16, , Lng term debt 14, , Shrt term debt 1, ,122.4 Cash & Cash equivalents Lng term Debt t Equity ROCE (%) * 6.47% 7.22% Return n Net wrth (%) 6.72% 7.82% Current Rati Net wrking capital cycle (days) * ROCE is calculated n pst-tax basis. 12

13 Perfrmance Analysis (Q3 FY12 Vs Q3 FY11) Ttal Incme Q3 FY2012 revenues at Rs. 5,118.3 millin marked a grwth f 27% ver Q3 FY2011 EBIDTA Prductin vlumes during the quarter increased by 20% as cmpared t Q3 FY2011 n accunt f increased capacities frm rebuilt furnaces Q3 FY2012 sales vlumes enhanced by 15.1% ver the crrespnding quarter f FY2011 Realizatins imprved by 10.7% wing t the price hikes taken in Q4 FY11 Operating prfits witnessed a mderatin during the quarter In Q3 FY2012, cst f prductin per tn escalated by 16.9% as cmpared t Q3 FY2011. This resulted in subdued perfrmance at the perating level despite imprved realizatins Pwer and Fuel cst, which cnstitute arund 40% f the ttal cst f prductin, increased by ~38% in cmparisn t Q3 FY2011 Raw material csts increased by ~10% during the quarter, as cmpared t Q3 FY2011 T pass n the effect f increase in csts, the Cmpany has taken a price hike f 8% in Q4 FY2012 EBIDTA perfrmance lags in a rising cst envirnment and is expected t imprve fllwing the price increase Expects imprvement in margins as new capacities that have higher perating efficiencies will demnstrate ptimal utilizatin in the future 13

14 Perfrmance Analysis (Q3 FY12 Vs Q3 FY11) Interest and Finance Csts Interest & Finance csts have increased in Q3 FY2012 t Rs millin as cmpared t Rs. 128 millin in Q3 FY2011 Net Prfit Increase in base rates annunced by banks resulted in an increase in the average cst f brrwed funds During the quarter, PAT at Rs millin was lwer resultant t higher depreciatin and interest & finance charges Price hikes implemented by the Cmpany is expected t translate int imprved perfrmance Balance Sheet Net wrth higher n accunt f sustained internal accruals Acquisitin f Agenda Glas, Germany and capacity expansin have partly been funded thrugh lng term debt Fixed asset base expanded n accunt f capacity enhancement 14

15 Operatinal Overview Prductin (MT) Sales (MT) 2,50,000 2,50,000 2,00,000 1,50,000 2,41,839 2,01,421 2,00,000 1,50,000 2,46,309 2,13,946 1,00,000 1,00,000 50,000 50,000 0 Q3 FY2012 Q3 FY2011 Net Realizatin (Rs. / MT) 0 Q3 FY2012 Key Perspectives Q3 FY ,000 18,000 15,000 12,000 9,000 6,000 3,000-20,682 18,680 Realizatins imprved n the back price hikes executed during Q4 FY11. Price hike in FY12 has been taken wef frm Q4 FY12. As HNG s additinal capacities g n stream, prductin and sales vlumes are expected t imprve significantly Q3 FY2012 Q3 FY

16 Vlume Mix 9 Mnths FY2012 End user segment Gegraphy 14% 10% 4% 5% 20% 21% Fd Sft Drink Beer Liqur Others 45% 13% East West Suth Nrth Exprts 50% 18% 1 Others include Pharmaceuticals 16

17 Pan India Presence Bahadurgarh Neemrana Delhi Rishikesh HNG, the largest cntainer glass manufacturer in India has a manufacturing capacity f 2,925 tnnes per day Multi-lcatinal prductin facilities enable the Cmpany t: Vaddara Klkata Rishra Lwer landed cst t custmers Nashik Prvide JIT supplies Mumbai Hyderabad GEIL Cater t key custmers acrss Bengaluru Naidupeta Chennai Flat Glass Unit Cntainer Glass Plant Lcatins Marketing Offices India Puducherry Upcming Greenfield Mega Prject Upcming Brwnfield Mega Prject (Nashik) Nte : Further, the Cmpany is setting up greenfield manufacturing facilities in new lcatins in West Bengal and Rajasthan. The ttal capacity is expected t grw t ~6,445 TPD by FY17 thrugh Greenfield and Brwnfield expansins in India. 17

18 Develpments at German Operatins Plant has achieved efficiency f 76% in December, 2011, which is the best mnthly figure since cmmissining f the plant December 2011 has had the best mnthly sales at 2.3m Sales in FY 2013 shall further imprve thrugh higher quantity and better prices The Cmpany has negtiated better prices with the tw distributrs, wh presently sell 100% f ur prducts, and increased it by 8% Technicians deplyed frm India fr training German team yielding gd results Further Capex, f 12m, shall imprve prductivity and prfitability, warehuse cst f 7m (apprx.) expected t save 1.5m f rent p.a. Overall peratins expected t breakeven in FY

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20 Strng custmer relatinships LIQUOR BEER FOOD SOFT DRINKS PHARMACEUTICALS Caters t custmers acrss segments 20

21 HNG s Share f Tp 10 Custmers HNG's Share in the Ttal Requirement f Tp 10 Custmers in (%) United Spirits Limited United Breweries Limited Pernd Ricard India SAB Miller India Allied Blenders & Distillers Cca Cla India Pepsic India Bajaj Crp Limited Shiva Distilleries Jhn Distilleries Limited 21

22 Hindusthan Natinal Glass & Industries Ltd. (HNG) Fr further infrmatin please lg n t r cntact: Laxmi Narayan Mandhana (CFO) Pankaj Shrff (Senir Manager Crprate Finance) HNG Tel: investr.relatins@hngil.cm Dipti Yadava / Anp Pjari Citigate Dewe Rgersn Tel: / dipti@cdr-india.cm / anp@cdr-india.cm