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EXHIBIT 12.1
NOVELIS INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN MILLIONS OF US$)
NINE MONTHS
ENDED
SEPTEMBER
30, YEARS ENDED DECEMBER 31,
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2006 2005 2004 2003 2002 2001
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EARNINGS BEFORE FIXED CHARGES
Net income (loss) from continuing operations
before cumulative effect of accounting change ........................ $(170) $ 96 $ 55 $ 157 $ 75 $(137)
Less: Equity income of less than 50% owned companies ..................... (12) (6) (6) (6) (8) (5)
Plus: Dividends received from less than 50% owned companies .............. 3 2 2 -- -- --
Plus: Minority interest of subsidiaries that have fixed charges .......... 2 21 10 3 (8) (17)
Plus: Income taxes ....................................................... 30 107 166 50 77 6
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EARNINGS BEFORE FIXED CHARGES AND INCOME TAXES ............................ (147) 220 227 204 136 (153)
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PLUS FIXED CHARGES:
Amount representative of interest factor in rentals ....................... 3 5 6 5 5 5
Interest expense and amortization of debt issuance costs .................. 161 203 74 40 42 64
Interest expense, less than 50% owned companies ........................... 1 1 2 1 5 7
Capitalized interest ...................................................... -- -- 1 1 1 --
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TOTAL FIXED CHARGES ................................................ 165 209 83 47 53 76
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Less: Capitalized interest ............................................... -- -- (1) (1) (1) --
Plus: Amortization of capitalized interest ............................... 6 7 6 8 7 9
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EARNINGS ........................................................... $ 24 $ 436 $ 315 $ 258 $ 195 $ (68)
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RATIO OF EARNINGS TO FIXED CHARGES ........................................ (1) 2.1X 3.8X 5.5X 3.7X (2)
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(1) Due to our net loss in the nine months ended September 30, 2006, the ratio
coverage was less than 1:1. We would have needed to generate additional
earnings of $141 million to achieve coverage of 1:1.
(2) Due to our net loss in the year ended December 31, 2001, the ratio coverage
was less than 1:1. We would have needed to generate additional earnings of
$144 million to achieve coverage of 1:1.