Hindusthan National Glass & Industries Ltd.

Hindusthan National Glass & Industries Ltd.

2 Disclaimer Certain statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forwardlooking statements. Important developments that could affect the Company s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations. Hindusthan National Glass & Industries Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

3 Table of Contents Industry Snapshot Company Overview Business Overview Operating and Financial Performance Annexures

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5 Global Packaging Industry As per World Packaging Organization, the global packaging industry is expected to be USD 597 billion by 2014 with ten year historical growth at ~ 3.1% CAGR Projected to grow at ~ 3.5% CAGR in the medium term mainly driven by growth in emerging markets (Asia Pacific region) Geography End-User 5% 13% 27% 34% Europe Asia, Oceana, Africa & ME North America South & Central America 9% 11% 15% 52% Liquor Beer Food Pharma Others 34% Source: Owens-Illinois, Inc. - Investor presentation, March 2010

6 Packaging Industry in India At USD14 bn, Indian packaging industry has been growing at ~ 15% over the last few years Expected to accelerate further with increasing urbanization, growing middle class and expansion of modern retail Indian glass container market is estimated to be around USD 1.1 bn and is growing at the rate of ~10% p.a. Indonesia India Brazil China World glass container per capita consumption 1.2 1.5 4.8 5.9 Entry barriers in Indian Glass industry is owing to capital intensive nature Top 3 players are HNG, HSIL and Piramal Glass Low per capita glass container consumption of 1.5 kg in India as compared to other countries (refer chart alongside). Strong economic drivers for end-user segments (liquor, beer, pharmaceuticals, food, cosmetics etc.) Japan Mexico USA UK Spain France 10.2 19.5 27.5 27.5 50.3 63.9 South Korea (Kg) 89 0 50 100

Cases in Millions Cases in Millions 7 End-User Industry Overview 300 250 200 150 100 50 49 Liquor 190 65 265 Soft Drinks 19,731 58,788 66,040 Food 93,703 0 2007-2008 2010-2011 2007-2008 2010-2011 2007-2008 2010-2011 HNG Supply IMFL Industry Volumes Figures in MT HNG Figures in MT HNG Beer Liquor and beer industries are the main users 250 214 of glass containers with 65% share, followed Pharmaceuticals 200 150 157 by food 12%, pharmaceuticals 10%, carbonated drinks 8% and cosmetics & others 95,009 100 50 19 26 account for the remaining 79,450 0 2007-2008 2010-2011 HNG Supply IMFL Industry Volumes Favourable demographics and rising disposable incomes driving consumption across end-user industries in India 2007-2008 2010-2011 * Figures in MT HNG

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9 Company overview Dominant position Consumption Ancillary Leader in the container glass segment Current Installed capacity in India is 4,395 TPD (including Naidupeta) and Germany 320 TPD; Planned capacity expansion to ~4,820 TPD in India by FY14 Diversified end-user segment including Liquor, Beer, Beverages, Food, Pharmaceuticals and others Pan-India Presence Manufacturing facilities in 6 locations across India, Facility at Naidupeta shall start by June 12 Additionally, International manufacturing footprint through 100% subsidiary HNG Global GmbH, Germany Competent Management Strong Management with vast experience and huge domain knowledge Successful history of acquiring loss-making units and turning them around Well established customer relations Six decades of presence in the industry has enabled the Company to develop long standing customer relationships Strong Financials In a capital intensive industry, the Company has been able to maintain a robust Financials

10 Corporate Milestones First 30 TPD plant commissioned in 1952 Second 90 TPD plant commissioned in 1964 Acquired 2 plants (Rishikesh & Pondicherry with total capacity 700 TPD) from Owens Brockway India Ltd, a subsidiary of Owens Illinois, USA. Renamed the company as Ace Glass Containers Ltd. Ace Glass Containers Ltd. merged with HNG Acquired assets of Agenda Glas AG in May 2011; 320 TPD facility at Gardelegen, Germany 1952 2001 2002 2005 2006 2007 2011 2012 Capacities expanded to 1,100 TPD Acquired 320 TPD loss making glass division from Larsen & Toubro at Nashik Established float glass plant in Halol under HNG Float Glass Ltd. Acquired 180 TPD Neemrana unit of Haryana Sheet Glass Commissioned 650 TPD furnace at Nashik on 28 th February 2012. Our 7 th plant at Naidupeta (650 TPD) shall begin commercial production from June 2012

11 Corporate Structure Hindusthan National Glass & Industries Ltd. - Consolidated net revenues: Rs. 15,678 millions. - Standalone net revenues: Rs. 15,525 millions. Glass Equipment (India) Ltd. 100% 100% Quality Minerals Ltd. 100% HNG Global GmbH 47.4% HNG Float Glass Ltd. (HNGFL) Net revenues: Rs. 299 millions. Capital Goods & Spares Supplier to Glass Industry Net revenues: Rs. 10 millions. Mineral Supplier to Glass Industry Acquisition of assets of Agenda Glas AG Net revenues: Rs. 2,948 millions. Manufacturer of Float & Processed Glass Note: 1. All revenue figures are for FY 2011. HNG Global GmbH was acquired after March 31, 2011.

12 Pan India Presence HNG, the largest container glass manufacturer in India has a manufacturing Bahadurgarh Rishikesh capacity of 4,395 TPD (including 650 TPD Neemrana Delhi of Naidupeta) Multi-locational production facilities Vadodara Kolkata Rishra enable the Company to: Lower landed cost to customers Mumbai Nashik Hyderabad GEIL Provide JIT supplies Cater to key customers across Bengaluru Naidupeta Chennai Float Glass Unit Container Glass Plant Locations Marketing Offices India Puducherry Upcoming Greenfield Mega Project Commenced Brownfield Mega Project (Nashik) Note: The total capacity is expected to grow to ~4,820 TPD by FY14 in India.

13 Strong customer relationships LIQUOR BEER FOOD SOFT DRINKS PHARMACEUTICALS Caters to customers across segments

14 HNG s Share of Top 10 Customers HNG's Share in the Total Requirement of Top 10 Customers in 2010-11 (%) 100 95 90 80 70 60 50 40 60 65 55 60 80 40 70 80 50 30 20 10 0 United Spirits Limited United Breweries Limited Pernod Ricard India SAB Miller India Allied Blenders & Distillers Coca Cola India Pepsico India Bajaj Corp Limited Shiva Distilleries John Distilleries Limited

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16 Expanding Scale Location Capacity as at March 2012 Expected Capacity as at March 2014 To be Commissioned in Present capacity of c. 4,000 TPD with proposed expansion to c. 5,100 TPD by FY14 New Furnace(N) / Rebuild (R) RSR Furnace 1 280 280 - - RSR Furnace 2 250 250 - - RSR Furnace 6 360 475 2012-13 R BGR Furnace 3 330 330 - - BGR Furnace 4 320 320 - - BGR Furnace 5 195 195 - - NMR Furnace 180 300 2012-13 R RSK Furnace 1 310 310 - - RSK Furnace 2 150 150 - - PDY Furnace 1 360 360 - - NSK Furnace 1 360 550 2013-14 R NSK Furnace 2 650 650 Started on 28 th February, 12 N Naidupeta - 650 2012-13 N Gardelegen 320 320 Acquired in May 2011 - TOTAL 4,065 5,140

17 HNG Global GmbH, Gardelegen, Germany One of the most modern production facilities in Europe, with 320 tpd capacity. HNG Global GmbH, is located closed to the regional raw material suppliers with easy and economic access to all key raw materials. The Plant is ideally located for deliveries throughout Germany and to adjacent European Countries. Germany is the largest market for Container Glass in Europe, with a share of ~ 20%. Company s technological edge is planned to be back pedaled in HNG s Indian operations, as Germany is always considered ahead in terms of technology. The Finished-ware quality in Germany is of superior standards than in India and it will help us embark the upward quality journey in India.

18 Business Strategy Capacity Expansion Acquired and turned around four loss making units over the last nine years Planned expansions to take total capacity to ~ 4,820 TPD at Indian level by FY14 Expanding product portfolio Presence across key user industries liquor, beer, pharmaceuticals and food Capitalizing on opportunities in the high growth float glass industry Adapting new technology Backward integration Introduced Narrow Neck Press and Blow (NNPB) technology, first in India Sustained competitive advantage through product optimization and continuous innovation Increasing production of light weighted bottles to enhance margins Captive power plant to improve cost efficiencies (at Bahadurgarh plant) Silica mining to support raw material supply chain (Proposed) Manufacturing of glass machines & spares in 100% subsidiary GEIL International Footprint Gained European presence, one of the largest markets for food and alco-bev industries Access to technological strength and production processes

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20 Operational Overview 800000 Production volume (MT) 7,85,300 7,67,258 8,29,374 800000 7,65,459 Sales Volume (MT) 7,82,584 8,42,246 700000 6,92,161 700000 6,64,794 600000 600000 500000 500000 400000 FY 2009 FY 2010 FY 2011 9-M FY 2012 400000 FY 2009 FY 2010 FY 2011 9-M FY 2012 21000 Realization (Rs. / MT) 20,482 Key Highlights 20000 19000 18000 17000 16000 15000 18,332 17,151 17,344 FY 2009 FY 2010 FY 2011 9-M FY 2012 Firm domestic demand driven by growth in end-user industries - liquor, beer, pharmaceuticals, foods and carbonated drinks Manufacturing facilities located across India provide an edge over peers who have only regional presence Pan-India distribution network Implementation of advanced technology enables improved cost efficiencies

21 Volume Mix -FY11 End-user segment Geographical distribution of Sales Volume 13% 9% 11% 15% 52% Liquor Beer Food Pharma 19% 42% 4% 22% 13% East West North South Others Export Geographical distribution of capacities (Post commissioning of Naidupeta) 20% 34% 23% North West 23% South East 1 Others include soft drinks

22 Financial Performance (All figures stated in Rs. millions on a standalone basis) 16000 15000 Net Turnover 15,434 4000 3163 EBIDTA 25% 14000 13000 12000 13,110 13,599 13,616 3000 2000 2359 18.0% 23.3% 2705 17.5% 2275 20% 11000 10000 1000 16.7% 15% 9000 8000 FY2009 FY2010 FY2011 9-M FY 2012 0 FY2009 FY2010 FY2011 9-M FY 2012 EBITDA Margins 10% 2000 1500 1552 PAT 17% 20 17.77 EPS (Rs. / share) 1000 500 0 1077 11.4% 864 8.2% 603 5.6% 4.4% FY2009 FY2010 FY2011 9-M FY 2012 PAT Margins 12% 7% 2% 15 10 5 0 12.34 9.9 6.9 FY2009 FY2010 FY2011 9-M FY 2012

23 Balance Sheet (All figures stated in Rs. millions on a standalone basis) Particulars (Rs. million) Nine months ended December, 2011 Year ended March, 2011 Year ended March, 2010 Share Holders Funds 12,275 11,661 10,428 Loan Funds 16,302 6,395 5,657 Deferred Tax Liabilities 712 712 697 TOTAL LIABILITIES 29,289 18,769 16,782 Net Block + Capital Work-inprogress 23,233 13,845 11,438 Investments 2,281 1,775 1,471 Net Current Assets 3,775 3,149 3,873 TOTAL ASSETS 29,289 18,769 16,782

24 9 Months FY 2012 - Financial Highlights (All figures stated in Rs. millions on a standalone basis) Profit & Loss Statement Snapshot Particulars (Rs. million) 9-M FY2012 9-M FY2011 Shift (%) Total Income 13,670 11,389 20.0% EBIDTA 2,275 2,263 0.5% Margins 16.6% 19.9% Depreciation 852 740 15.1% Interest 664 370 79.5% Profit Before Tax 758 1153 (34.3%) Margins 5.5% 10.1% Tax expense 155 252 (38.5%) Profit After Tax 603 901 (33.1%) Margins 4.4% 7.9% EPS (in Rs.) 6.90 10.31 (33.1%)

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26 Shareholding Pattern Particulars % Shareholding (as on December, 2011) Promoters 69.98 Public Shareholding 30.02 Insurance Companies 0.31 Bodies Corporate 3.93 Financial Institutional Investors 7.28 Individuals & Others* 18.50 Total 100.00 * Includes 16.76% held as Treasury Shares in the Company Total 87.3 million shares Listed at: National Stock Exchange (NSE) - HINDNATGLS Bombay Stock Exchange (BSE) - 515145 Calcutta Stock Exchange (CSE)

27 Ratings, Rankings & Accreditations Business Today Ranking (Out of 500 top listed corporates, as of October, 2011) In terms of Average Market Capitalization 368 th Rating by CARE (Credit Analysis & Research Ltd.) Long Term credit rating of AA+(implying high safety for timely servicing of debt obligations and carrying very low credit risk). Short Term credit rating of PR1(+), being the highest grade (implying the lowest credit risk). Rated as the best Indian Company in the Glass & Ceramics category by Dun & Bradstreet in years 2009 and 2010 Accredited with ISO 9001:2008 certification, ensuring stringent quality standards and ISO 22000 for food and safety Rated at No.35, out of the best 500 companies by Inc.India (Comprehensive ranking of India s best performing mid-sized companies) in their Sep-Oct, 2010 issue.

Hindusthan National Glass & Industries Ltd. (HNG) For further information please log on to www.hngindia.com or contact: Laxmi Narayan Mandhana (CFO) HNG Tel: 033-2254-3100 Email: investor.relations@hngil.com 28 Anoop Poojari / Dipti Yadava Citigate Dewe Rogerson Tel: +91 22 6645 1211 / 1218 Email: anoop@cdr-india.com / dipti@cdr-india.com