Transcript of Conference Call between Novelis Inc Management and Analysts on Q4FY20 and Full Year performance. Listen to the full earnings transcript.
Steve Fisher, President and CEO
We saw record adjusted EBITDA performance for the fourth consecutive year $1.5 bn in EBITDA in FY2020. Driven by our consistent strategy and operation and broadly favorable demand for aluminum solutions across our market. We were also further improving fiscal fundamentals and efficient operations.
We ended the year with good liquidity, including a successful $400 million fundraise in january. We have also focused on sustainability by focusing on growth and becoming the leading producer of flat rolled aluminum product and the largest recycler.
In FY20 the proportion of recycled content in our product is 60%, a significant increase from 40% in previous years. We are also optimizing our product portfolio, entering higher value segments. In FY20 cans represented 66% of our shipments, providing a resilient backstop for us. Cans are more recessionary-resistant compared to other products and a strong cash generators. We have also diversified into high value aerospace and expanded specialty capabilities.
We have added new automative finishing lines in US and China, adding 300 kilotons of additional automotive finishing capacity as well as the rolling and recycling expansion underway in our plants and Brazil. Commissioning in Brazil expected to start in FY22, we will slow the commissioning of adding capacity in China. Many new launches have been delayed due to COVID related shutdowns. We are prepared to ramp up in case customer demand accelerates.
We have partly shutdown some plants across regions due to customer demand slowing or government mandated lockdowns. We are actively controlling costs in the meantime. We are targeting approximately $250 million in cost reductions in operating costs and R&D and are ready to take more action as needed, depending on demand. We have reduced capex spend by $100 million compared to last year. We are in good shape in terms of liquidity, ending the fiscal year with $2.6 billion.
We are working closely with customers to adjust production based on their forecasts. Beverage cans: this is relatively a recession-resistant product, and we expect this to be the case in North America and Europe. Trade restrictions are limiting our ability to export our products from South Korea and Asia to other markets.
The automative industry took a significant hit from the pandemic related slowdown. Unemployment rising and lockdowns mean automative players are not selling vehicles at expected levels. We expect these players to restart production this month. In China we followed lockdown orders in February with some production resuming in March. We see some resumption in demand now happening in Europe and elsewhere. It is unclear however how a global recession will impact near-term demand recovery.
In aerospace we are seeing significant reduced production as consumer travel is expected to be lower into the next year. Our long term outlook, strong financial profile and product mix will help us weather the storm.
Novelis acquisition of Aleris was completed in April 14, 2020. It's an exciting strategic acquisition that will drive many long term benefits for our customers and industry. We have acquired a strategic set of assets and workforce. It has helped us be competitive in the aerospace industry, one of the most technically demanding, and will enhance our existing operations in Asia.
