Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Merger or Acquisition (2012)
18 slides from Norsk Hydro Asa's merger presentation, 2012
Slide 1: Creating the world’s leading aluminium solutions provider
Creating the world’s leading aluminium solutions provider (1)
Slide 2: Cautionary note
Cautionary note This presentation and its appendices (collectively, the “Presentation”) has been prepared by Norsk Hydro ASA (“Hydro”) and Orkla ASA (“Orkla”) (jointly referred to as the “Companies”) solely for the use at the presentation held in connection with the announcement of the combination o
Slide 3: Åge Korsvold, President and CEO Orkla
Åge Korsvold, President and CEO Orkla (3)
Slide 4: Orkla and Hydro combine extruded aluminium assets
Orkla and Hydro combine extruded aluminium assets Orkla Hydro Sapa Profiles, Building 50%+ Profiles, 100% System and Extruded NOK 1.8 bn 50% Building Systems 100% and Welded Tubes and Precision Tubing receivable Joint Venture • Revenues (NOK million) ~47 000 • Underlying/adjusted EBITDA (NOK million
Slide 5: Creating a stronger company better positioned for value creation
Creating a stronger company better positioned for value creation • No. 1 position in North America and Europe • Broader competence base and more experienced management team • Positioned for restructuring and value creation • Strong foothold in emerging markets, including China, India and Brazil • Po
Slide 6: Transaction facts
Transaction facts • 50/50 joint venture between Orkla and Hydro • 2 Board of Directors representatives each from Orkla and Hydro • Svein Richard Brandtzæg to be chairman of the Board of Directors (no casting vote) • Svein Tore Holsether, current President and CEO of Sapa AB, to be President and CEO
Slide 7: Svein Richard Brandtzæg, President and CEO Hydro
Svein Richard Brandtzæg, President and CEO Hydro (7)
Slide 8: New company with flexibility and capability to meet challenging market conditions
New company with flexibility and capability to meet challenging market conditions Challenging markets Measures and capabilities • Continued European sovereign • Improvement efforts and realization debt crisis of annual synergies of NOK 1 billion • Slow recovery from low levels in • Rightsizing portf
Slide 9: Global megatrends
Global megatrends Preparing for a low-carbon economy Millions emerge from poverty Ever increasing demand for energy Climate change (9)
Slide 10: Aluminium – An everlasting product
Aluminium – An everlasting product 5% 75 % (10)
Slide 11: New company combining market-leading innovation
New company combining market-leading innovation (11)
Slide 12: Demand for aluminium products expected to rise sharply
Demand for aluminium products expected to rise sharply Share of semis consumption Demand for semis 2011 – 62 million mt Million mt 120 Consumer 5-7% annual growth durables 100 Electrical 6% 12% Packaging 9% 49 Machinery 80 & equipment 10% Foil stock 8% 36 60 Other 6% 23 Transport 25% 40 53 Construct
Slide 13: Svein Tore Holsether, President and CEO Sapa
Svein Tore Holsether, President and CEO Sapa (13)
Slide 14: Company to be named Sapa with headquarters in Oslo
Company to be named Sapa with headquarters in Oslo President and CEO Svein Tore Holsether (S) CFO HR & Organization Arnstein Sletmoe (H) Ingemar Wallin (S) Legal Business Development TBD Tolga Egrilmezer (S) Integration office Lene Trollnes (H) Profiles Europe Profiles America Profiles Asia Building
Slide 15: Agenda of the new company
Agenda of the new company Building on solid knowledge base, Europe rightsizing portfolio North Integrating and capitalizing America on strong positions Emerging Developing attractive positions markets in high-growth markets (15)
Slide 16: Creating the world’s leading aluminium solutions provider
Creating the world’s leading aluminium solutions provider (16)
Slide 17: Sapa – Contributed assets
Sapa – Contributed assets In MNOK 2011 2010 2009 YTD YTD Q2 Q2 June June 2012 2011 2012 2011 Operating revenue 26 927 24 140 18 558 13 570 14 094 6 857 7 317 EBITDA 1 303 1 053 146 606 726 326 424 EBITA 632 404 -534 262 390 149 255 EBIT -65 362 -722 232 -38 127 -150 Capital Employed 12 639 11 161 10
Slide 18: Hydro - Extruded Products
Hydro - Extruded Products In MNOK 2011 2010 2009 YTD YTD Q2 Q2 June June 2012 2011 2012 2011 Total revenue 20 085 19 405 20 065 9 478 10 402 4 761 5 300 Underlying EBITDA 655 987 585 290 459 165 222 Reported EBITDA 501 997 253 158 435 57 195 Underlying EBIT 151 444 -67 68 201 53 96 Reported EBIT -24