Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Q3 2009 Earnings Presentation
94 slides from Norsk Hydro Asa's earnings presentation, October 2009
Slide 1: Investor presentation Q3 October 2009
Investor presentation Q3 October 2009 (1)
Slide 2: Table of contents
Table of contents Company overview 3 Forward-looking statements Certain statements included within this announcement contain forward- Industry & market outlook 10 looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of managem
Slide 3: Company overview
Company overview (3)
Slide 4: Hydro
Hydro A focused aluminium and energy company Primary • 21 000 employees Metal • Operations in 40 countries Metal Metal • Turnover Markets • 2006: NOK 99 billion • 2007: NOK 94 billion • 2008: NOK 89 billion Rolled Products • Underlying EBIT • 2006: NOK 10.2 billion • 2007: NOK 9.9 billion Extruded •
Slide 5: Hydro's value proposition
Hydro’s value proposition • Solid long-term fundamentals for aluminium • Industry-leading captive power position • World-class upstream growth projects • Leading positions in attractive extrusion segments • Competence in metallurgy and project execution – basis for solar growth • Strong operational
Slide 6: Strong aluminium industry position
Strong aluminium industry position Integrated Emerging Market Mining & Metal Manufacturing 7,946 Alumina Primary Rolled 5,878 Extrusions Production in 1 000 tonnes* Other 4,692 4698 4,494 4,062 4,007 3,250 3,151 2,372 2,296 1,750 1,489 1,298 1,192 970 985 958 910 639 598 593 353 328 182 230 114 163
Slide 7: Hydro in the aluminium value chain
Hydro in the aluminium value chain Primary aluminium production Aluminium in products, recycling Bauxite/ Primary Metal Semi alumina Energy aluminium products fabrication Remelt 65% equity in Solid long-term 1.75 mill. mt/year 2.9 mill. mt/year 1.6 mill. mt/year 502 000 ton alumina coverage of power
Slide 8: Hydro improves cost position
Hydro improves cost position Business operating cash cost USD/tonne 3 400 Dynamic cost curve • Falling input costs 3 000 • Production curtailments and capacity closures 2 600 2 200 1 800 1 400 Accumulated tonnage (1 000 tonnes) 1 000 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 BOC Q1 20
Slide 9: Capital employed – upstream focus
Capital employed – upstream focus NOK million September 30, 2009 Primary Metal 29 555 Energy, 7% Metal Markets 4 050 Rolled Products 7 801 Extruded Extrusion 5 000 Products, 13% Automotive 1 542 Other and eliminations 191 Extruded Products 6 733 Energy 3 653 Rolled Products, 15% Primary Metal, 57% O
Slide 10: Industry & market outlook
Industry & market outlook (10)
Slide 11: Healthy long term demand for aluminium
Healthy long term demand for aluminium • Properties lead to increased market share • Aluminium intensive urbanisation and infrastructure • Climate challenge – aluminium as part of the solution • Recyclability more important with high energy price • Beyond current downturn • Return to trend growth of
Slide 12: Aluminium price rebounds, USD weakens
Aluminium price rebounds, USD weakens USD per tonne 3 400 Primary aluminium LME USD/tonne NOK/tonne 3 200 Q3 2009 average 1 837 11 209 3 000 Q3 2009 end 1 890 10 886 2 800 2 600 Q2 2009 average 1 524 9 883 Q2 2009 end 1 651 10 611 2 400 2 200 Average 2008 2 620 14 453 2 000 Average 2007 2 662 15 638
Slide 13: Volumes improved – still at low level
Volumes improved – still at low level Hydro’s downstream sales Q3 2009 vs Q2 2009 Total downstream sales Rolled Extrusion Building Extrusion Automotive Precision Q3 09 vs Q2 09 Acc 09 vs Acc 08 Products Eurasia Systems Americas Structures Tubing 14% 13% 10% 8% 5% 0% -4% -23% Hydro’s upstream sales Q
Slide 14: Inventory days at high level
Inventory days at high level USD per tonne Days 3 300 130 120 2 800 110 100 2 300 90 80 1 800 70 60 1 300 50 40 800 30 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Aluminium inventories (days of consumption)* LME 3-month average *IAI and LME reported stoc
Slide 15: China expected to reduce imports
China expected to reduce imports 1 000 tonnes 600 550 • Swift response to drop in demand 500 • Production curtailments 450 400 • Strategic government purchases Net import 350 • Demand increasing incentives 300 250 200 150 • Production increase in 2009 100 • Restart of curtailed capacity 50 0 • New c
Slide 16: Significant curtailments announced
Significant curtailments announced Unchanged from Q1 Announced capacity curtailments Announced capacity curtailments in percent of 2008 production 30% 28% 26% 12% 25% 3% Alcoa 22% C entury 21% 7% Hydro 20% Rio Tinto 51% 6% UC Rusal 15% Other 7% C hina 11% 10% 10% 14% 5% China ~3.5 million tonnes* 0%
Slide 17: Supply/demand imbalance continues
Supply/demand imbalance continues World production and consumption of primary aluminium outside China in 1 000 tonnes 30 000 • Apparent annualized imbalance of Production C onsumption 2.5-3.0 million tonnes in Q3 25 000 • Partly mitigated by China importing 1.3 20 000 million tonnes January – August
Slide 18: Share of semis consumption
Share of semis consumption 2008 - 50 million tonnes 2009 - 46 million tonnes C onsumer C onsumer durables durables Electrical Electrical 6% 7% 12 % 13% Packaging Packaging 10 % 10% Machinery Machinery & equipment & equipment 10% Foil stock 10% Foil stock 8% 8% Other Other 7% 7% Transport Transport 2
Slide 19: Commodity prices stabilizing
Commodity prices stabilizing Industry input costs stabilizing Crude oil – Brent (USD/bbl) Coal – CIF ARA (USD/mt) Petroleum coke FOB USG (USD/tonne) 160 245 550 140 210 500 120 175 450 100 140 400 80 105 350 60 70 300 40 35 250 20 0 200 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2005 2006 200
Slide 20: Power spot prices stabilize
Power spot prices stabilize South Norway price (NO1) Water reservoir levels in South Norway (NO1) NOK/MWh Percent 600 100 2008 2009 2008 2009 90 500 80 70 400 60 300 50 40 200 30 20 100 10 0 0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Price
Slide 21: Climate policies – effects on aluminium
Climate policies – effects on aluminium Demand-effect • Changed semi’s and end-product prices • Aluminium vs. steel and plastics when CO2 emissions get a price tag • Regulatory measures Supply – effects on production cost and long-term prices • Cost per tonne CO2 increases over time • Direct carbon
Slide 22: Outlook
Outlook Q4 • Stabilized production outside China • Stable demand for primary aluminium 2009 vs. 2008 • Primary aluminium consumption outside China to decline 18-20% • Slight increase in Chinese consumption (22)
Slide 23: Third quarter results 2009
Third quarter results 2009 (23)
Slide 24: Highlights
Highlights • Stable demand at low level, positively influenced by restocking • Capacity adjustments and cost reduction programs delivered as planned • Upstream result remains weak due to low aluminium prices and weakening USD • Improved downstream result supported by higher volumes and cost savings
Slide 25: Capacity and cost reductions delivered on plan
Capacity and cost reductions delivered on plan Production curtailments Capital expenditure cuts 2) 1000 tonnes NOK billion Aluminium Alumina 1) 5.9 1 750 1 300 1 350 3.5 1 050 3.0 2008 Q3 2009 2008 Q3 2009 2008 2009 2010 Operating capital reductions Manning reductions 3) NOK billion 0.7 5.8 1 450 4
Slide 26: Targeted cash cost improvements achieved
Targeted cash cost improvements achieved Cost* in USD per tonne indexed, 2008=100 • Production curtailments at high-cost smelters • Reduced input costs in 2009 • Alumina ~(30)% • Petroleum coke • Fuel oil, caustic soda, coal, freight and alloys • Outlook • Weakening USD will have negative impact • A
Slide 27: Curtailments executed in flexible system
Curtailments executed in flexible system Primary aluminium Remelt 1 000 tonnes, production rate per year 1 000 tonnes, production rate per year 2 000 2 000 1 930 340 1 750 1 588 1 600 1 600 290 1 352 1 300 1 200 1 300 1 200 1 050 1 000 1 000 1 000 1 000 100 496 264 900 800 800 736 504 400 400 0 0 20
Slide 28: Price and currency sensitivities
Price and currency sensitivities Net annual NOK/USD sensitivity Net annual aluminium price sensitivity +/- 1 NOK +/- 100 USD per tonne 1 800 800 1 600 700 1 500 630 600 1 200 500 900 400 300 600 200 300 100 0 0 EBIT EBIT Based on expected business volumes for 2009, aluminium price of 1 900 USD/tonne
Slide 29: Automotive Structures divestment signed
Automotive Structures divestment signed Underlying EBITDA • Deal with Benteler Group represents NOK million solid and long-term industrial solution 45 (198) (14) for automotive structures activities 48 45 15 14 24 (8) (6) • In line with Hydro’s strategy to focus (40) (32) (69) extruded activities on
Slide 30: Underlying EBIT
Underlying EBIT 2 032 1 619 1 490 868 -493 -618 -793 NOK million Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Primary Metal 938 795 906 93 (185) (895) (760) Metal Markets 363 139 (41) 242 (245) 196 (15) Rolled Products 147 240 170 93 (53) (28) 51 Extruded Products 223 296 152 (332) (204)
Slide 31: Key financials
Key financials First First 9 months 9 months NOK million Q3 2009 Q2 2009 Q3 2008 2009 2008 Revenue 16 337 17 123 21 765 50 313 67 275 Underlying EBIT (793) (618) 1 490 (1 904) 5 141 Items excluded from underlying EBIT 1 512 1 029 924 1 435 (840) Reported EBIT 719 410 2 414 (469) 4 300 Financial inco
Slide 32: Items excluded from underlying EBIT
Items excluded from underlying EBIT First First 9 months 9 months NOK million Q3 2009 Q2 2009 Q3 2008 2009 2008 Underlying EBIT (793) (618) 1 490 (1 904) 5 141 Unrealized effects power contracts 54 (118) (185) 2 227 814 Unrealized LME and other derivative effects 1 508 1 427 1 038 516 (2 249) Metal
Slide 33: Primary Metal
Primary Metal Q3 Q2 Q3 Key figures 2009 2009 2008 Alumina production, kmt 514 494 589 Primary aluminium production, kmt 330 338 439 Total sales volumes, kmt 486 477 544 Realized LME price, USD/mt 1 523 1 468 2 848 Realized LME price, NOK/mt 9 480 9 598 15 114 Underlying EBIT, NOK million (760) (895)
Slide 34: Metal Markets
Metal Markets Q3 Q2 Q3 Key figures 2009 2009 2008 Remelt production, kmt 123 111 121 Total metal products sales, kmt 624 614 723 Underlying EBIT, NOK million (15) 196 (41) Underlying EBIT Q3 operating results NOK million • Negative currency effect of NOK 150 million 703 (63) compared to neutral curr
Slide 35: Rolled Products
Rolled Products Q3 Q2 Q3 Key figures 2009 2009 2008 External sales volumes, kmt 205 187 240 Underlying EBIT, NOK million 51 (28) 170 Underlying EBIT Q3 operating results NOK million • Increased volumes in litho, automotive and foil 651 (31) • Further contribution from cost savings 240 • Stable margi
Slide 36: Extruded Products
Extruded Products Q3 Q2 Q3 Key figures 2009 2009 2008 External sales volumes, kmt 127 120 148 Underlying EBIT Extrusion, 89 5 239 NOK million Underlying EBIT Automotive, 9 (37) (92) NOK million Underlying EBIT, NOK million 95 (26) 152 Underlying EBIT Q3 operating results NOK million • Expected seaso
Slide 37: Energy
Energy Q3 Q2 Q3 Key figures 2009 2009 2008 Power production, GWh 1 682 1 809 2 677 Net spot sales, GWh 480 413 1 233 Southern Norway spot price (NO1), 249 297 403 NOK/MWh Underlying EBIT, NOK million 217 281 493 Underlying EBIT Q3 operating results NOK million • Low spot prices 1 865 945 • Seasonall
Slide 38: Reduced operating capital supports cash flow
Reduced operating capital supports cash flow • Continued reduction in operating capital Q3 Q2 Q1 NOK million 2009 2009 2009 • ~NOK 5.8 billion realized in 2009 Net income (loss)* 1 001 282 (280) • Capital discipline – investments at Depreciation 1 076 805 827 Operating capital 657 2 907 2 199 low le
Slide 39: Financial position
Financial position Net cash / (debt) in NOK billion • Net cash of NOK 2.4 billion end-Q3 6.7 • Qatalum investments USD 5.7 billion (100%) • 46% project financed and 54% equity financed • Project financing: USD 0.1 billion unutilized end-Q3 • Equity: USD 1.2 billion remaining end-Q3 3.5 3.0 Sep 30, D
Slide 40: Priorities in 2009
Priorities in 2009 • Solid operations • Qatalum execution • Stay close to markets • Financial flexibility • Proactive corrective measures Capital Markets Day – December 2, 2009 (40)
Slide 41: Primary Metal
Primary Metal (41)
Slide 42: Strong growth in alumina production
Strong growth in alumina production Alunorte, Brazil Hydro’s equity alumina production • World’s largest alumina refinery • Third expansion completed in 1 000 tonnes 2008 3 500 • Capacity: 6.3 million tonnes of alumina (100%) • 34% owned by Hydro 3 000 2 500 Alpart, Jamaica • Capacity: 1.65 million
Slide 43: Well covered with alumina
Well covered with alumina CAP positions Hydro for further growth in metal Alumina coverage Percent 140% 120% LME-linked contracts 100% 80% Equity from CAP* 60% 40% Equity 20% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 *CAP is illustrated with the first stage plus two expansi
Slide 44: Aluminium Metal Production System
Aluminium Metal Production System AMPS is not a project – it’s a way of operating! Standardized work processes Defined customer and supplier relationships Optimized flow A systemized method for development of operational excellence and continuous improvements • Product quality • Cost Dedicated teams
Slide 45: Strong performance culture
Strong performance culture TRI per million hours work1) Kg CO2e / kg aluminium2) 10 6 8 5 4 6 3 4 2 2 1 0 0 2005 2006 2007 2008 1990 2005 2006 2007 2008 2010E kwh / Kg aluminium3) Specific emissions kg fluorine / tonne aluminium4) 16.0 1.2 15.0 1.0 0.8 14.0 0.6 13.0 0.4 12.0 0.2 11.0 0.0 1993 1998 2
Slide 46: Primary Metal production facilities
Primary Metal production facilities North America Europe: • 115 000 mt smelting capacity in 1 smelter • 1 270 000 mt primary smelting capacity in 8 smelters • 540 000 mt remelt capacity in 8 smelters Middle East: • Qatalum 1 smelter under construction (Hydro share: ~300 000 mt) Australia: • 238 000
Slide 47: Develop technology to fulfill ambitions
Develop technology to fulfill ambitions 2007 2009 2020 HAL300 technology HAL4e technology Beyond HAL4e • Low diffuse emissions • Improved energy efficiency • Zero PFC concept • Good working environment • Benchmark GHG • Simpler CO2 capture • SU4, Qatalum • Prepared for CO2 concentration • New materi
Slide 48: Qatalum nearing completion
Qatalum nearing completion • 90% complete by end-Q3 2009 • Main ongoing activities • 19 100 workers by end-Q3 2009 • Construction of buildings • On target for scheduled start-up 2009/2010 • Installation of equipment • Development of operating organization • First decile position on cash cost curve (
Slide 49: Qatalum facts
Qatalum facts Anode baking furnaces Capacity • Smelter: 585 000 tonnes per year • 704 cells in 2 double-lined potrooms • Anode plant and cast houses • 1 250 MW power plant • Possible expansion to 1 200 000 tonnes per year • Hydro technology, designed for Paste plant • Low specific energy consumption
Slide 50: Metal Markets
Metal Markets (50)
Slide 51: Casthouse products add value
Casthouse products add value Leading supplier in Europe – growing globally Own production Primary foundry alloys Extrusion ingot Remelting & recycling Wire rod Sheet ingot Commercial agreements Casthouse (51)
Slide 52: Metal Markets production facilities
Metal Markets production facilities Qatalum: well positioned to serve all major markets North America Europe • 114 000 mt remelt capacity in 2 remelters • 368 000 mt remelt capacity in 6 remelters Qatar Hydro off-take agreement for 100% of Qatalum products • First metal by end of 2009 • Building up
Slide 53: Rolled Products
Rolled Products (53)
Slide 54: Main products and applications
Main products and applications Focus on margin management and cash generation Foil • Flexible packaging and technical applications Litho • Offset plates for the printing industry Packaging & Building • Cans, packaging and architecture Automotive, Heat Exchanger & General Engineering • Transport, hea
Slide 55: Rolled products consumption
Rolled products consumption Falling demand in main markets1) Western Europe North America Asia Pacific Million tonnes Million tonnes Million tonnes 7 15% 7 15% 7 15% 6 12% 12% 6 12% 6 9% 9% 9% 5 6% 5 6% 5 6% 4 3% 4 3% 4 3% 0% 0% 0% 3 3 3 -3% -3% -3% 2 -6% 2 -6% 2 -6% -9% -9% -9% 1 1 1 -12% -12% -12%
Slide 56: Extruded Products
Extruded Products (56)
Slide 57: Distinct businesses with leading positions
Distinct businesses with leading positions Diverse markets – each with strong Hydro presence Extrusion Automotive (81% of revenues) (19% of revenues) Extruded Products strategy Extrusion Eurasia Precision Tubing Build on proven business concept, selective growth in Europe, Middle-East Extrusion Amer
Slide 58: Extruded products consumption
Extruded products consumption 1) Falling demand in Europe, American demand still depressed Europe North America Million tonnes % growth (RHS) Million tonnes Million tonnes 3.5 3.5 8% 8% 3.0 4% 3.0 4% 2.5 0% 2.5 0% 2.0 -4% -4% -8% 2.0 -8% 1.5 -12% 1.5 -12% 1.0 -16% 1.0 -16% -20% -20% 0.5 -24% 0.5 -24
Slide 59: Main products and applications
Main products and applications Innovative solutions Creative Technology TRIANGEL Germany The new stairway system SANITEC OTIS (59)
Slide 60: Building Systems
Building Systems Hydro the market leader in Europe, worldwide presence CHELSEA Customer INTERCOM, NY CHELSEA Customer INTERCOM, NY DIQUE IV – Puerto Madero Larnaka Airport, Cyprus Foch 94, Beirut Q-Tower, Manila (60)
Slide 61: Development in energy efficiency
Development in energy efficiency Reducing energy use in buildings InventSkin® multiple layer façade concept • Several energy-efficiency functions • Reduces primary energy and CO2 emissions • Cooperation between Hydro building Systems and Ascent Solar (61)
Slide 62: Automotive applications
Automotive applications Global leadership in Structures in a leading position Precision Tubing in crash management systems • Bumper beams • Crash boxes • Longitudinals • Windshield frames • Sub frame components • Add-on frames/solutions (62)
Slide 63: Energy
Energy (63)
Slide 64: Strong power position
Strong power position – self-generated and renewable energy sources Share of self-generated power *) Share of renewable energy origin Percent Percent 50% 80% 45% 70% 40% 60% 35% 50% 30% 25% Industry avg 40% 2007 **) 20% 30% 15% 20% 10% 10% 5% 0% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 65: Long-term power sourcing at competitive prices
Long-term power sourcing at competitive prices Indexation of power supplies • Power consumption ~26 TWh in Metal Percent in 2008 100% 90% • Self-generation and long-term contracts 80% ensures predictability 70% 60% • Limited commodity exposure 50% 40% • Indexation to LME and coal with time-lag 30% 2
Slide 66: Developing Norwegian hydropower assets
Developing Norwegian hydropower assets Development potential Normal production capacity per region and terms • 0.5 – 1 TWh • Utilizing existing concession areas 3.0 0.5 and infrastructure Telemark • Investment NOK 1.2 – 2.5 billion 2044- from 2011 onwards No reversion 2049 • Normal production today
Slide 67: Power portfolio management
Power portfolio management – significant volatility in price and volume Quarterly production and spot price • Norwegian power portfolio TWh optimized versus market NOK/MWh 3.5 550 500 • Production and market prices strongly impacted by hydrological conditions 3.0 450 • ”Dry” versus ”wet” years 400 2
Slide 68: Nordic power market – forward curves
Nordic power market – forward curves NOK/MWh 750 700 650 600 550 500 450 400 350 300 250 200 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11 End Q1 2008 End Q2 2008 End Q3 2008 End Q4 2008 End Q1 2009 End Q2 2009 (68)
Slide 69: Solar
Solar Industrial ambitions within Solar NorSun (18%) – mono-crystalline wafers • Total investments NOK 500 million • Hydro largest industrial owner • 155 MW production on Årdal, started 2008 • Seeking polysilicon production opportunities Ascent Solar (35%) – thin-film • Total investments NOK 260 mil
Slide 70: Secured opportunities across the value chain
Secured opportunities across the value chain Investments of around NOK 800 million Polysilicon Ingot Wafer Cell Module System/ Installation HyCore (49%) NorSun (18%) Hydro Building Ascent (35%) Systems Metallurgy Industrialization Internal synergies / building systems (70)
Slide 71: Additional information
Additional information (71)
Slide 72: Financial policy
Financial policy Maintain investment-grade rating Dec 31, Dec 31, Sep 30, NOK billion 2007 2008 2009 • Currently: BBB- (S&P), Baa2 (Moody’s), Cash and cash equivalents 9.3 3.3 2.9 both with negative outlook Short-term investments 2.7 1.6 1.5 • Competitive access to capital and important Short-term d
Slide 73: Hedging policy
Hedging policy Hydro to remain exposed to LME prices • Partly natural hedge through alumina contracts and power contracts Operational LME hedging • Three months forward • Managing customers’ pricing • Marked-to-market valuations of positions result in unrealized gain/losses Currency exposure, mainly
Slide 74: Underlying income
Underlying income Q3 2009 NOK million Reported income Adjustments Underlying income Primary Metal (153) (607) (760) Metal Markets 207 (222) (15) Rolled Products 484 (433) 51 Extruded Products 108 (14) 95 Energy 318 (101) 217 Other and eliminations (246) (135) (381) Total EBIT 719 (1 512) (793) Finan
Slide 75: Underlying income
Underlying income Q2 2009 NOK million Reported income Adjustments Underlying income Primary Metal (537) (357) (895) Metal Markets 472 (275) 196 Rolled Products 438 (466) (28) Extruded Products 87 (114) (26) Energy 321 (40) 281 Other and eliminations (370) 224 (146) Total EBIT 410 (1 029) (618) Finan
Slide 76: Underlying income
Underlying income Q3 2008 NOK million Reported income Adjustments Underlying income Primary Metal 1 768 (861) 906 Metal Markets (142) 101 (41) Rolled Products (341) 511 170 Extruded Products 53 99 152 Energy 499 (6) 493 Other and eliminations 577 (768) (191) Total EBIT 2 414 (924) 1 490 Financial in
Slide 77: Reported and underlying results
Reported and underlying results Hydro Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2007 2008 Reported EBIT 3 672 3 001 2 013 338 1 179 708 2 414 (3 106) (1 598) 410 719 9 025 1 194 Underlying EBIT 2 883 2 886 2 686 1 699 2 032 1 619 1
Slide 78: Items excluded from underlying results - 2009
Items excluded from underlying results - 2009 NOK million (+=loss/()=gain) Q1 2009 Q2 2009 Q3 2009 Unrealized derivative effects on LME related contracts (alunorte) Primary metal - - (16) Unrealized derivative effects on currency contracts (alunorte) Primary metal (11) (222) (105) Rationalization ch
Slide 79: Items excluded from underlying results - 2008
Items excluded from underlying results - 2008 NOK million Q1 2008 Q2 2008 Q3 2008 Q4 2008 2008 Unrealized derivative effects on LME related contracts (Alunorte) Primary Metal 83 (8) (134) (37) (96) Unrealized derivative effects on LME related contracts Primary Metal 263 (350) (586) 112 (561) Unreali
Slide 80: Items excluded from underlying results - 2007
Items excluded from underlying results - 2007 NOK million Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007 Unrealized derivative effects on LME related contracts (Alunorte) Primary Metal (13) 40 (108) (82) (163) Unrealized derivative effects on LME related contracts Primary Metal (263) (110) (100) 49 (425) Unre
Slide 81: Operating segment information
Operating segment information Underlying EBIT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2007 2008 Primary Metal 2,289 2,172 1,941 1,245 938 795 906 93 (185) (895) (760) 7,646 2,732 Metal Markets 135 186 252 65 363 139 (41) 242 (245)
Slide 82: Operating segment information
Operating segment information Underlying EBITDA Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2007 2008 Primary Metal 2 789 2 652 2 416 1 735 1 398 1 285 1 399 638 290 (372) (285) 9 591 4,720 Metal Markets 175 221 285 101 388 162 (15) 2
Slide 83: Operating segment information
Operating segment information EBIT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2007 2008 Primary Metal 2 407 2 437 2 033 1 136 215 1 343 1 768 (1 647) (1 837) (537) (153) 8 012 1 679 Metal Markets 176 12 150 35 546 106 (142) (178) (31
Slide 84: Operating segment information
Operating segment information Total revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2007 2008 Primary Metal 11 321 10 766 9 894 8 780 8 858 9 837 9 256 8 478 6 471 6 365 6 361 40 761 36 428 Metal Markets 15 700 14 712 12 576 12 53
Slide 85: Operating segment information
Operating segment information Internal revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2007 2008 Primary Metal 9 862 9 269 8 388 7 384 7 988 8 680 8 111 7 278 5 640 5 290 5 273 34 904 32 057 Metal Markets 5 864 5 595 4 417 4 743 4
Slide 86: Operating segment information
Operating segment information Depreciation, amortization and impairment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2007 2008 Primary Metal 490 471 465 473 452 481 484 1 295 464 461 451 1 899 2 711 Metal Markets 40 179 33 36 24 23 26
Slide 87: Income statement
Income statement First First Q3 Q2 Q3 9 months 9 months NOK million 2009 2009 2008 2009 2008 Revenue 16 337 17 123 21 765 50 313 67 275 Share of the profit (loss) in equity accounted investments (14) (42) 77 (468) 239 Other income, net 238 223 123 595 704 Total revenue and income 16 561 17 305 21 96
Slide 88: Balance sheets
Balance sheets September 30, June 30, March 31, December 31, September 30, NOK million 2009 2009 2009 2008 2008 Cash and cash equivalents 2 986 4 860 3 128 3 333 3 583 Short-term investments 1 477 1 439 1 652 1 648 4 454 Receivables and other current assets 14 776 14 988 16 077 18 833 19 744 Invento
Slide 89: Pensions
Pensions December 31, December 31, Weighted average assumptions December 31, December 31, NOK million 2008 2007 at end of year 2008 2007 Projected benefit obligation (23 440) (20 584) Discount rate 4.7% 5.0% Fair value of plan assets 12 386 15 579 Expected return on plan assets 5.7% 6.3% Termination
Slide 90: Primary Metal – operational data
Primary Metal – operational data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Volumes and prices 1) 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 Realized premium above LME (USD/mt) 1) 326 338 331 330 350 353 328 268 230 230 260 Realized premium above LME (NOK/mt) 1) 2 035 2 056 1 928 1 843 1 905 1 832
Slide 91: Metal Markets – operational data Rolled Products – operational data
Metal Markets – operational data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Volumes and prices 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 Remelt production (1 000 mt) 190 179 163 153 141 145 121 97 89 111 123 Sale of metal products from own production (1 000 mt) 771 772 699 680 724 753 667 571 548
Slide 92: Extruded Products – operational data Energy – operational data
Extruded Products – operational data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Volumes and prices 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 Extrusion external shipments (1 000 mt) 134 135 123 117 130 133 122 103 96 99 104 Automotive external shipments (1 000 mt) 43 30 29 28 31 31 26 18 17 21 23
Slide 93: Investor Relations in Hydro
Investor Relations in Hydro t: +47 22 53 92 80 Stefan Solberg Head of Investor Relations m: +47 917 27 528 e: stefan.solberg@hydro.com t: +47 22 53 25 22 Stian Hasle Investor Relations Officer m: +47 977 36 022 e: stian.hasle@hydro.com t: +47 22 53 92 24 Irene Raposo Investor Relations Assistant m:
Slide 94: www.hydro.com
www.hydro.com