Slide 1: Sapa Investor Call
1 SAPA SVEIN TORE HOLSETHER, PRESIDENT & CEO 18 MAY 2015 SAPA INVESTOR CALL
Slide 2: The Sapa Story
2 THE SAPA STORY DELIVERING THE NOK 1 CREATION OF BILLION A GLOBAL SYNERGY LEADER PROGRAM LEVERAGING ATTRACTIVE, ON VALUE GROWING PROPOSITION MARKETS
Slide 3: EHS, CSR, and Compliance – Integral Parts of Our Business
3 EHS, CSR, AND COMPLIANCE – INTEGRAL PARTS OF OUR BUSINESS TOTAL RECORDABLE RATE (YTD)
Slide 4: The Creation of a Global Leader
4 DELIVERING THE NOK 1 CREATION OF BILLION A GLOBAL SYNERGY LEADER PROGRAM LEVERAGING ATTRACTIVE, ON VALUE GROWING PROPOSITION MARKETS
Slide 5: Sapa Today - A Truly Global Player
5 SAPA TODAY - A TRULY GLOBAL PLAYER With presence in more than 40 countries With more than 100 production units 46 BNOK Sales 23,500 employees
Slide 6: Sapa – Developed a Unique Market Position Through Market Consolidation
6 SAPA – DEVELOPED A UNIQUE MARKET POSITION THROUGH MARKET CONSOLIDATION Acquires plants in Builds a tubing plant JV between Europe from Alcan in Suzhou, China Sapa/Hydro Extruded Builds first Products Enters South created Hydro builds its first extrusion America, aluminium operation in plant outsid
Slide 7: Today We Have Three Main Lines of Business
7 TODAY WE HAVE THREE MAIN LINES OF BUSINESS EXTRUSION BUILDING SYSTEMS PRECISION TUBING
Slide 8: Clear Market Leading Positions
8 CLEAR MARKET LEADING POSITIONS Sapa Europe Sapa North America 25% 30% Extrusion North Extrusion North America America Extrusion Europe* Building Systems* Precision Tubing* 22% 19% 28% 42% * SOURCE: SAPA ANALYSIS. DEFINITIONS; SBS MARKET SHARE FOR EUROPE. EXTRUSION EUROPE MARKET SHARE INCLUDING INT
Slide 9: The Sapa Story
9 THE SAPA STORY DELIVERING THE NOK 1 CREATION OF BILLION A GLOBAL SYNERGY LEADER PROGRAM LEVERAGING ATTRACTIVE, ON VALUE GROWING PROPOSITION MARKETS
Slide 10: Synergy Realisation Ahead of Plan - Leveraging Business Model as One Company
10 SYNERGY REALISATION AHEAD OF PLAN - LEVERAGING BUSINESS MODEL AS ONE COMPANY One Company THE CREATION OF A DELIVERING ON NOK 1 LEVERAGING ON GLOBAL LEADER BILLION SYNERGY PROGRAM VALUE PROPOSITION •Deep roots in aluminium •Synergy realisation •Leverage scale •Consolidation of market •Position for
Slide 11: European Restructuring Driving Synergy Program with Learning from North America
11 EUROPEAN RESTRUCTURING DRIVING SYNERGY PROGRAM WITH LEARNING FROM NORTH AMERICA Salko 9 Finspång full plant Raufoss Magnor Vetlanda closures Birtley Sjunnen Workington Tønder Cheltenham Tibshelf Hoogezand Uphusen Hardewijk Drunen Hannover Trzcianca 1,450 Bedwas Seneffe Harderwijk Lichtervelde Rae
Slide 12: Continued Improvement Trend – Delivering on NOK Billion Synergy Program
12 CONTINUED IMPROVEMENT TREND – DELIVERING ON NOK 1 BILLION SYNERGY PROGRAM UNDERLYING RESULTS (ROLLING 12 MONTHS) 2500 Synergy realization ahead 2181 2000 of plan 1916 NOK Million Approximately 1500 1530 NOK 0.5 billion included in 1366 1230 2014 result 1000 1092 889 Savings mainly from plant 652
Slide 13: Strong Markets Support Performance in Extrusion Americas and Precision Tubing
13 STRONG MARKETS SUPPORT PERFORMANCE IN EXTRUSION AMERICAS AND PRECISION TUBING NORTH AMERICA: EXTRUSION SHIPMENTS ROLLING TWELVE MONTHS PERFORMANCE 3 000 Thousand metric tons 2 500 EXTRUSION AMERICAS Q1 2015 2 000 Sales (BNOK) EBITDA % 1 500 1 000 19.1 6.1% 500 0 2004 2001 2002 2003 2005 2006 2007
Slide 14: Slower Recovery in Europe and Building & Construction Weighs on Performance
14 SLOWER RECOVERY IN EUROPE AND BUILDING & CONSTRUCTION WEIGHS ON PERFORMANCE EUROPE: EXTRUSION SHIPMENTS ROLLING TWELVE MONTHS PERFORMANCE 4 000 Thousand metric tons 3 500 3 000 EXTRUSION EUROPE Q1 2015 2 500 Sales (BNOK) EBITDA % 2 000 1 500 1 000 19.3 4.5% 500 0 2004 2001 2002 2003 2005 2006 200
Slide 15: The Sapa Story
15 THE SAPA STORY DELIVERING THE NOK 1 CREATION OF BILLION A GLOBAL SYNERGY LEADER PROGRAM LEVERAGING ATTRACTIVE, ON VALUE GROWING PROPOSITION MARKETS
Slide 16: Macro Trends Drive Demand for Aluminium
16 MACRO TRENDS DRIVE DEMAND FOR ALUMINIUM CLIMATE CHANGE DEMOGRAPHIC CHANGE URBANIZATION By 2030 the temperature will increase By 2050 the population will reach 9.8 By 2050 70% of the population will be with 0.5 to 1.5 ℃ billion people living in cities
Slide 17: The Future of Aluminium Will Be Driven by Demand for Its Unique Properties
17 THE FUTURE OF ALUMINIUM WILL BE DRIVEN BY DEMAND FOR ITS UNIQUE PROPERTIES Low weight Superior Corrosion High strength malleability resistance Recyclable with low energy input
Slide 18: You Will Find Our Products All Around You
18 YOU WILL FIND OUR PRODUCTS ALL AROUND YOU * AT HOME IN YOUR OFFICE IN YOUR CAR TRAVELLING Front doors Building construction Selected components Train carriage bodies Windows Windows Accessories Handrails Stepladders Partition walls Side impact bars Luggage racks Designer furniture Computers Airba
Slide 19: Broad End-Market Exposure
19 BROAD END-MARKET EXPOSURE Sapa Group (100%) Precision Tubing Extrusion Building Systems (8%) (78%) (14%) 11% 15% 11% 29% 74% 22% 100% 19% 19% Distribution HVAC&R Automotive Industrial Transport B&C /Other 1% 15% 18% 15% 15% 36% ESTIMATED SHARE OF REVENUES FROM EACH MARKET SEGMENT IN 2014 INDUSTRI
Slide 20: Long-Term Correlation Between Extrusion Demand and General Economic Growth
20 LONG-TERM CORRELATION BETWEEN EXTRUSION DEMAND AND GENERAL ECONOMIC GROWTH ALUMINIUM EXTRUSION CONSUMPTION EUROPE NORTH AMERICA 4 000 4 000 3 500 3 500 3 000 3 000 2 500 2 500 2 000 2 000 1 500 1 500 2 793 2 444 1 000 1 000 500 500 0 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 01 0
Slide 21: Legislation Is Key Driver for Aluminium Growth in Auto Segment
21 LEGISLATION IS KEY DRIVER FOR ALUMINIUM GROWTH IN AUTO SEGMENT US: CAFE TARGET EUROPEAN UNION: EMISSIONS TARGET SOURCE: CRU, HYDRO ANALYSIS * CORPORATE AVERAGE FUEL ECONOMY (CAFE)
Slide 22: Aluminium Offers Drastic Reductions in Size, Weight, and Refrigerant Charge in HVAC&R
22 ALUMINIUM OFFERS DRASTIC REDUCTIONS IN SIZE, WEIGHT, AND REFRIGERANT CHARGE IN HVAC&R All-aluminium solutions make recycling far easier and more efficient than its copper based counterpart Copper is approximately 3 x the price of aluminium Sapa is the technology and market leader Estimated potent
Slide 23: Drivers of the Development in Building and Construction
23 DRIVERS OF THE DEVELOPMENT IN BUILDING AND CONSTRUCTION Aluminium in buildings Regional European Union US Regional/country-specific 2012 Energy Efficiency Building Energy Use legislation legislation Directive laws Global trends
Slide 24: The Sapa Story
24 THE SAPA STORY DELIVERING THE NOK 1 CREATION OF BILLION A GLOBAL SYNERGY LEADER PROGRAM LEVERAGING ATTRACTIVE, ON VALUE GROWING PROPOSITION MARKETS
Slide 25: Leveraging Our Competitive Advantages
25 LEVERAGING OUR COMPETITIVE ADVANTAGES We utilize scale and competence across markets Global customer insights and R&D collaboration Global sourcing Flexible production across 100 plants We have strong positions in growing niche markets Precision Tubing Building Systems Automotive and Transportati
Slide 26: Unmatched Global Innovation and Service Network
26 UNMATCHED GLOBAL INNOVATION AND SERVICE NETWORK 1,000 Engineers Application Development ACADEMIC PARTNERS Norwegian University of Science & Sapa Technology SINTEF Technology University of Oxford ~150 annual Brunel University customer ~100,000 annual The Royal Institute of Technology academies and
Slide 27: Extrusion Americas - Plant-Network Providing Customer Flexibility
27 EXTRUSION AMERICAS - PLANT-NETWORK PROVIDING CUSTOMER FLEXIBILITY Network of plants increases flexibility and reliability More than 75% of volume serviced by more than one plant
Slide 28: Extrusion Americas – Cost Competitive Solutions to Utility Trailers
28 EXTRUSION AMERICAS – COST COMPETITIVE SOLUTIONS TO UTILITY TRAILERS Sapa’s largest customer globally Five trailer manufacturing plants in the US Signed new three year contract post JV, 100% supply to Sapa Sapa and Utility developing new trailer alloy (HSTT, High Strength Truck Trailer). The first
Slide 29: High-End Solutions and Complete Service Offering in Building Systems
29 HIGH-END SOLUTIONS AND COMPLETE SERVICE OFFERING IN BUILDING SYSTEMS CHELSEA MODERN, MANHATTAN NYC THE CRYSTAL, LONDON UK
Slide 30: Partnering with Tesla on Innovative Aluminium Solutions
30 PARTNERING WITH TESLA ON INNOVATIVE ALUMINIUM SOLUTIONS 100% committed to aluminium Process development, alloy development and complex extrusion & fabrication between 5 states and 3 countries
Slide 31: Sapa and Ford F-150, a Multi-Plant Delivery to America's Most Selling Vehicle
31 SAPA AND FORD F-150, A MULTI-PLANT DELIVERY TO THE AMERICA’S MOST SELLING VEHICLE PICTURE WITH COURTESY OF FORD MOTORS
Slide 32: The Sapa Story
32 THE SAPA STORY DELIVERING THE NOK 1 CREATION OF BILLION A GLOBAL SYNERGY LEADER PROGRAM LEVERAGING ATTRACTIVE, ON VALUE GROWING PROPOSITION MARKETS
Slide 33: Back-up
sapa: x BACK-UP
Slide 34: Cautionary Note in Relation to Certain Forward-Looking Statements
34 CAUTIONARY NOTE IN RELATION TO CERTAIN FORWARD- LOOKING STATEMENTS Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management’s plans, objectives
Slide 35: Sapa Is the Leader in Extruded Aluminium
35 SAPA IS THE LEADER IN EXTRUDED ALUMINIUM
Slide 36: Sapa's Business Is Diverse
36 SAPA’S BUSINESS IS DIVERSE BY BUSINESS BY GEOGRAPHY BY MARKET 4% 2% 8% 15% 15% 14% 15% 38% 56% 18% 78% 1% 36% Extrusion Europe Automotive Transportation Building System Precision Tubing North & Central America B&C HVAC&R South America Industrial Distribution/other Asia incl ME ”2014 REVENUES BY B
Slide 37: Reported Quarterly Financials
37 REPORTED QUARTERLY FINANCIALS Key figures Q4 -13 Q1 -14 Q2 -14 Q3 -14 Q4 -14 Q1 -15 Volumes 314 359 368 350 322 353 Revenues 10 133 11 347 11 544 11 603 11 890 14 134 Underlying - 43 440 641 492 343 705 EBITDA Underlying - 339 155 350 201 - 55 392 EBIT Reported - 787 -3 168 198 - 679 201 EBIT