Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Day (November 2012)
13 slides from Norsk Hydro Asa's investor day presentation, Nov 29, 2012
Slide 1: Primary Metal: Improving robustness
Primary Metal Improving robustness Hilde M. Aasheim Capital Markets Day 2012 (1)
Slide 2: Primary Metal's smelter portfolio
Primary Metal’s smelter portfolio Norway Canada Slovakia Qatar Brazil Australia Consolidated capacity: 2.2 million mt - Slovalco and Albras are fully consolidated, Qatalum and Søral are equity accounted. 300.000 tons of capacity currently curtailed in Kurri-Kurri, Sunndal and Søral (2)
Slide 3: Primary Metal main agenda – repositioning
Primary Metal main agenda – repositioning Estimated primary aluminium cash cost and margin • Curtailed high-cost capacity USD per mt 1) 475 475 425 • Qatalum first-quartile cost position confirmed 300 • Improvement efforts progressing within all 2 000 1 800 existing assets 1 375 1 250 • Securing com
Slide 4: Robust power coverage
Robust power coverage Power coverage (%), based on consolidated production in 2012, year-end level • Alouette power contract extended for current capacity, power for potential expansion secured 100% • EU CO2 compensation framework in place − Norway committed to implement compensation 75% • Søral pow
Slide 5: Primary Metal delivers on improvement program
Primary Metal delivers on improvement program USD 300 to be delivered by end-2013 Operational improvements 300 •Improved current efficiency •Reduced power consumption •Reduced anode consumption Fixed cost reductions and lean operations 200 Further operational improvements Technology costs/spin-offs
Slide 6: Improvement focus will continue
Improvement focus will continue • Continuing USD 300 improvement program in all areas based on Primary Metal production system (AMPS) • New areas will be explored − Commercial optimization after Primary Metal and Metal Markets combined under one management − Black raw materials – Using new coke qual
Slide 7: Estimated USD 300 improvement program achievements end-2013
Estimated USD 300 improvement program achievements end-2013 Total annual effects in real terms NOK ~1.4 billion Fixed cost at plant Sustaining capex and above and relining Amperage, current efficiency and energy consumption NOK ~150 million NOK ~250 Logistics NOK ~650 million Casthouse margins* mill
Slide 8: Working with partners for improvements in the six joint venture smelters
Working with partners for improvements in the six joint venture smelters Søral 176kt (49.9%) Slovalco 163 kt (55.3%) Alouette 570 kt (20%) Albras 460 kt (51%) Qatalum 600 kt (50%) Tomago 585 kt (12.4%) (8)
Slide 9: Qatalum – world-class smelter
Qatalum – world-class smelter Smelter • Full electrolysis capacity from 21 September, 2011 • Estimate above 600 000 tonnes liquid metal in 2012 • High-quality anode operation • Casthouse production >90% value-added products • Technology verified Power Plant • Seawater cooling tower in full operation
Slide 10: Qatalum – first quartile cost position confirmed
Qatalum – first quartile cost position confirmed • Business operating cost ~USD 1 450 - 1 500 at current market conditions • Further operational streamlining and cost optimization • Further creep potential beyond 2012 level (10)
Slide 11: Albras – promising changes in energy framework
Albras – promising changes in energy framework • Business environment improved • Focus on operational improvements − Exchange rates significantly improved − Positive governmental announcements on power framework – Actual impact and implementation needs further clarification (11)
Slide 12: Primary Metal priorities
Primary Metal priorities • Continued drive to reposition portfolio • Deliver on USD 300 program by end-2013 • Intensified improvement focus in JVs • Power sourcing • Optimizing casthouse operations after combining Primary Metal and Metal Markets (12)
Slide 13: Infinite Aluminium Hydro
INFINITE ALUMINIUM HYDRO