EXHIBIT 12.1
NOVELIS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN MILLIONS OF US$)
YEARS ENDED DECEMBER 31, SIX MONTHS
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2004 2003 2002 2001 2000 JUNE 30, 2005
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EARNINGS BEFORE FIXED CHARGES
Net income (loss) from continuing operations
before cumulative effect of accounting change
and extraordinary items $ 55 $ 157 $ 75 $(137) $ 82 $ 11
Less: Equity income of less than 50%
owned companies (6) (6) (8) (5) (6) (4)
Plus: Dividends received from less than
50% owned companies 2 -- -- -- -- 1
Plus: Minority interest of subsidiaries that
have fixed charges 10 3 (8) (17) (10) 11
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EARNINGS BEFORE FIXED CHARGES $ 61 $ 154 $ 59 $(159) $ 66 $ 19
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FIXED CHARGES
Amount representative of interest factor in
rentals $ 6 $ 5 $ 5 $ 5 $ 5 $ 2
Interest expense - net 74 40 42 64 62 94
Interest expense, 50% owned companies 2 1 5 7 7 1
Capitalized interest 1 1 1 -- 1 --
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TOTAL FIXED CHARGES $ 83 $ 47 $ 53 $ 76 $ 75 $ 97
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Less: Capitalized interest (1) (1) (1) -- (1) --
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FIXED CHARGES ADDED TO INCOME/(LOSS) $ 82 $ 46 $ 52 $ 76 $ 74 $ 97
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Plus: Amortization of capitalized interest 6 8 7 9 8 3
Income taxes 166 50 77 6 60 44
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EARNINGS BEFORE FIXED CHARGES AND INCOME TAXES $ 315 $ 258 $ 195 $ (68) $ 208 $ 163
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RATIO OF EARNINGS TO FIXED CHARGES 3.8x 5.5x 3.7x (A) 2.8x 1.7x
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(A) Due to our net loss in 2001, the ratio coverage was less than 1:1. We
would have needed to generate additional earnings of $68 million to
achieve coverage of 1:1.