Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Day (January 2011)
28 slides from Norsk Hydro Asa's investor day presentation, Jan 13, 2011
Slide 1: Rolled Products
Rolled Products Oliver Bell, Executive Vice President and Head of Rolled Products January 13, 2011 (1)
Slide 2: Strong portfolio
Strong portfolio (2)
Slide 3: Hydro's Rolled Products operations
Hydro’s Rolled Products operations ● 1 million tonnes of flat rolled products annually Holmestrand Karmøy ● Turnover of ~NOK 20 billion ● Hydro operates 7 rolling assets Hamburg in 4 countries Norf/ Grevenbroich ● We employ ~4 000 Cisterna Malaysia Rolling Mill Sales Office (3)
Slide 4: We focus on these applications
We focus on these applications Foil Generell Can Engineering Litho Auto Construction (4)
Slide 5: Strengthened business through the downturn
Strengthened business through the downturn Decoupling cost from volume development Portfolio Managing Releasing Handling Managing adjustment cash operating risks costs capital Capex NOC -50% -110 million euro ● Inasa plant ● Focus capex on ● ”Move it out” ● Strict ● Procurement divested per minimum
Slide 6: Decoupling cost from volume development
Decoupling cost from volume development 1) Jan-Sep 2010 vs Jan-Sep 2009 ● “Climb” program to increasingly 25 % decouple volume from cost development 15 % ● 37% of volume gain retained on bottom line 37% ● Product focus initiated – with full run-rate in 2012 C ost development Increase in shipments So
Slide 7: Strong performance and result improvement
Strong performance and result improvement Systematic for success Underlying EBITDA 6-months moving average NOK million 900 800 ● Solid cash-generation 700 600 ● Initiated measures 500 leading to new record 400 result in 2010 300 200 100 0 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-0
Slide 8: Well positioned in attractive market
Well positioned in attractive market (8)
Slide 9: Market: NOK 300 billion and 18 million tonnes
Market: NOK 300 billion and 18 million tonnes Consumption per continent 2010 and CAGR 2010 - 2015 Europe 4.5 million tonnes North America 4% 4.4 million tonnes China 4% 4.9 million tonnes 10% Rest of world 3.7 million Latin World tonnes America 5% 0.8 million 18.2 million tonnes 5% tonnes 6% Source:
Slide 10: Hydro a key player in flat rolled products
Hydro a key player in flat rolled products ● No. 1 flat-rolled products producer in Europe ● No. 3 worldwide ● Operating world-class benchmark assets ● Alunorf (JV 50%) - World’s largest rolling mill ● Grevenbroich plant - World’s largest finishing mill ● Technology leadership and innovation (10)
Slide 11: Attractive customers and market position
Attractive customers and market position More than 50% of products with global reach Our products Our customers Our position Litho World market leader Global reach Foil Can Leading position in Europe Auto Regional reach Leading position in Europe GE/ Building (11)
Slide 12: Hydro European producer with global reach
Hydro European producer with global reach 25% export share for high-end markets serving key global customers & markets Tonnes North America Asia-Pacific 79 000, 8% 56 000, 6% Middle East 76 000, 8% World Latin 943 000 Lamerica 100% 27 000, 3% Source: Hydro analysis; based on export sales by region 2
Slide 13: Leadership through differentiation
Leadership through differentiation (13)
Slide 14: Aluminum foil – protects what's good
Aluminum foil – protects what´s good Minimum thickness for maximum protection Human hair Aluminum foil ~ 55 µm ~6.3 µm 600:1 10µm 600:1 10µm (14)
Slide 15: Product example aseptic foil
Product example aseptic foil Contact with fill good PE 40 µm Al Foil 6 µm PE 20 µm Carton 250g/m² PE 20 µm With one ... we produce ... and protect 5% of packaging slab ... 740 km of foil 12 000 000 liters weight 80% Source: HARP analysis of juice of protection (15)
Slide 16: Hydro world market leader in aseptic foil
Hydro world market leader in aseptic foil Customer satisfaction key to success Development of supplier ranking Tetra Pak 2007 - 2010 % 85 Hydro 80 Competitor 1 75 Competitor 2 70 65 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 Source: Tetra Pak analysis
Slide 17: World market leader in lithographic sheet
World market leader in lithographic sheet Development litho sales in metric tonnes 1962-2010 180000 160000 • Hydro world market leader 140000 • Hydro technology leader 120000 100000 • Setting the standard 80000 60000 40000 20000 0 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001
Slide 18: Lifting the bar every year
Lifting the bar every year Example litho: Differentiation through one step change per year Introduce automated Reduce surface Introduce flatness tolerance Inspection new patented with 50 % Improved alloy for larger Reduction surface for high printing plates of leadtime quality Litho by 50 % plates 2
Slide 19: Aluminum growth potentials
Aluminum growth potentials (19)
Slide 20: Megatrends drive aluminium demand
Megatrends drive aluminium demand New Environmental Urbanization middle class sustainability Source: Hydro analysis (20)
Slide 21: Can market providing solid base for growth
Can market providing solid base for growth Beverage can stock consumption (2010E) and CAGR (2010-2013 estimation) Tonnes World Europe 3 930 000, 650 000, +5% North +4% China America 1 730 000 320 000 +0% +17% Latin Rest of world America 770 000, +2% 460 000 +9% Source: Hydro analysis (21)
Slide 22: Mega trends and substitution drive demand
Mega trends and substitution drive demand Automotive market with impressive growth prospects Megatrends + Substitution = Aluminium demand Alu vs. Copper/Steel Demand BIW (Body-in-white) price ratio ´07-´10 European passenger cars (1 000 tons) Urbanization (3-month-moving-average) 400 0.6 6.0 0.6 5.5
Slide 23: Aluminum – metal of choice for weight reduction
Aluminum – metal of choice for weight reduction Moving from luxury cars to volume models Weight reduction of car body SLC project kg body weight 300 Aluminium sheet • Super-light car-project (SLC) Aluminium study showed clear preference for 250 cast+extrusion aluminum for light-weighting (35%) Magne
Slide 24: Green aluminum packaging
Green aluminum packaging ● 20% of greenhouse gas emissions from food production and consumption ● We contribute with optimised packaging to preserve food ● Example Produce coffee CO2 emission of a cup of coffee: Transport Brew hot water Packaging Source: EAFA study (24)
Slide 25: Green aluminum – potential for future growth
Green aluminum – potential for future growth Aluminum part of the solution for the climate change New reflector HyBridAl strip Lighter constructions foil from 3M from Hydro from Hydro Hydro’s target: “The most efficient mirror of the world” ● Highly reflecting, but cost efficient & light ● Robust, l
Slide 26: Summary
Summary (26)
Slide 27: Positioned for new levels of profitability
Positioned for new levels of profitability ● Strengthened position in the downturn ● Emerged as a leaner and more profitable business ● “Climb” program decoupling volume from costs ● Profitable growth by leadership in quality, technology & innovation (27)
Slide 28: www.hydro.com
www.hydro.com