Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Day (December 2015)
164 slides from Norsk Hydro Asa's investor day presentation, Dec 3, 2015
Slide 1: Capital Markets Day
Capital Markets Day December 3, 2015
Slide 2: Table of contents
Table of contents Hydro 6 Financial update 37 Market outlook 60 Bauxite & Alumina 90 Energy 107 Primary Metal 132 Rolled Products 149 2
Slide 3: Cautionary note in relation to certain forward-looking statements
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 and
Slide 4: Well-positioned in challenging markets
Well-positioned in challenging markets Svein Richard Brandtzæg Capital Markets Day 2015
Slide 5: Building competitiveness through HSE, CSR and compliance
Building competitiveness through HSE, CSR and compliance Corporate culture Idealist Leading Immature Formalized Safety performance Carbon-neutral from a (TRI) at industry benchmark life-cycle perspective Internal control system 3.1* On track Hydro highly ranked in global compliance comparison study*
Slide 6: Hydro's aspiration for higher value creation
Hydro’s aspiration for higher value creation 6
Slide 7: 2015: Optimizing and high-grading in challenging markets
2015: Optimizing and high-grading in challenging markets New Corporate BNOK 1 ‘From B to A’ Investment decision on MNOK 800 ‘Climb’ Long-term power sourcing Management Board improvement Karmøy technology improvement contracts in Norway and in place program* pilot program* abroad CMD CMD 2014 2015 Lo
Slide 8: Ambitious aspiration on track
Ambitious aspiration on track Ambitions from CMD 2014 Timeframe Progress¹ Status • Improve safety performance, reduce TRI < 2 2020 3.1 • Realize BNOK 1.5 from ongoing improvement efforts 2016 0.8 BNOK • Replace expiring power contracts for Norwegian smelters 2020 4.1 TWh • Lift Paragominas productio
Slide 9: Strong demand growth, near-term supply overhang
Strong demand growth, near-term supply overhang 9
Slide 10: Primary demand growth of 4-5% expected in 2016
Primary demand growth of 4-5% expected in 2016 Mixed developments in mature regions, softening in emerging markets Europe Mixed demand development, solid uptake within the China automotive industry Softer demand, strong supply North America ~2% growth creating Emerging markets surplus Strong demand
Slide 11: Aluminium's many qualities support robust long-term demand growth
Aluminium’s many qualities support robust long-term demand growth Highly versatile material with wide range of applications and end-user benefits Aluminium demand Copper demand Steel demand per segment per segment per segment Global primary aluminium demand growth 2015-2025 3-4 % Transport Electrica
Slide 12: Aluminium continues to win ground in automotive
Aluminium continues to win ground in automotive Hydro continues developing solutions to accelerate substitution trend 13 % CAGR* ~75% growth last year Global BIW demand 2015 - 2023 Source: Ducker Europe, Hydro analysis 12
Slide 13: Aluminium also gaining market share from copper
Aluminium also gaining market share from copper Price competitive with copper on a volume conductivity equivalent basis Further potential to substitute copper Aluminium shows clear advantages Strong potential within long-distance with aluminium in automotive cables within HVAC & R vs copper transmis
Slide 14: Aluminium is a key enabler for sustainable buildings
Aluminium is a key enabler for sustainable buildings Growth supported by energy-efficiency legislation Energy-efficiency legislation supports aluminium Buildings account for ~ 40% of energy consumption worldwide, triggering response from the legislators European Union US 2012 Energy Efficiency Direc
Slide 15: Aluminium price falls on global oversupply and lower cost curve
Aluminium price falls on global oversupply and lower cost curve Disrupting the strong correlation between LME and 90th percentile smelters World ex-China China Market balance in thousand tonnes* Nominal USD/t Market balance in thousand tonnes* Nominal USD/t 10,000 Current LME 2800 10,000 2800 (~1475
Slide 16: Chinese semis exports close the supply gap in the rest of the world
Chinese semis exports close the supply gap in the rest of the world Driven by arbitrage opportunities and domestic oversupply Exports Competitive advantage (USD/t)* Thousand tonnes 500 800 • Growth in net semis exports over the last year 450 amid relatively higher all-in prices outside China 400 600
Slide 17: 2016 to remain oversupplied due to capacity additions
2016 to remain oversupplied due to capacity additions But expected to moderate as a result of curtailments and slower supply growth of 2-4% globally Supply development 2016* Market balance 2016** Million tonnes Million tonnes 2 – 2.5 Mill t ~3.4 World Oversupply China ex-China 4-6 % supply 0-2 % sup
Slide 18: Potential return to global undersupply expected in 2017
Potential return to global undersupply expected in 2017 External analysts expect rebalancing in around a year CRU estimates of global primary metal balances at different points in time* Thousand tonnes 2000 1500 1000 500 0 -500 -1000 -1500 2014 2015 2016 2017 2018 2019 nov.12 dec. 14 oct.15 Source:
Slide 19: Our path towards realizing the aspiration
Our path towards realizing the aspiration 19
Slide 20: Attractively positioned world-class assets with global reach
Attractively positioned world-class assets with global reach Now in a first-quartile position on the industry cost curve Norway’s North America Norway 2nd largest • 1,015,000 tpy hydro-powered • Alouette aluminium smelter in hydropower Europe’s Canada, expansion potential aluminium capacity producer
Slide 21: Harvesting the benefits of integration
Harvesting the benefits of integration Combining dedicated business models in each area within an overall company framework Risk and opportunity Customers and market Bauxite Primary aluminium management intelligence mining production • Diversification and multi-cycle exposure • Local partnerships an
Slide 22: Continuing to shape the industry's strongest improvement culture
Continuing to shape the industry’s strongest improvement culture Bauxite & Alumina Primary Aluminium Rolled Products Energy • ‘From B to A’ delivered¹ BNOK 1 in • USD 300/t improvements • ‘Climb’ improved efficiency by • Secured long-term sourcing of 4.1 cost and efficiency gains completed in 2013 i
Slide 23: Making continuous improvements a Hydro trademark
Making continuous improvements a Hydro trademark Proven track-record of productivity gains Hydro’s improvement drive until 2014 Hydro’s mid-term improvement target Hydro’s new improvement ambition Total improvements 2011-2014: BNOK 3.7¹ Launched at Hydro’s CMD 2014 Total improvements of BNOK 2.9 fro
Slide 24: Stepping up improvements throughout the value chain
Stepping up improvements throughout the value chain Better Better Better Bauxite & Primary Rolled Alumina Metal Products BNOK 1.0 BNOK 1.0 BNOK 0.9 * Includes some larger investments of 3.2 billion NOK in 2015-2019: AL3 and UBC in Rolled Products, 100+100kt capacity creep in Primary Metal, Alunorte
Slide 25: Extending the technology and innovation lead
Extending the technology and innovation lead Key to maintain and further improve Hydro’s competitive position Step-change Instability Stability Bauxite & Alumina Primary Metal Rolled Products Technology approach • Debottlenecking to go beyond • Testing aluminium production • Automotive line 3 to lif
Slide 26: Establishing a new efficiency standard with the Karmøy technology pilot
Establishing a new efficiency standard with the Karmøy technology pilot With spin-off effects for the entire portfolio Next-generation technology R&D as the next step in cost optimization Testing the world’s most energy-efficient and climate-friendly smelter technology Significant spin-off effects t
Slide 27: Attractive commercial positions throughout the value chain
Attractive commercial positions throughout the value chain Building on strong in-house commercial competence Alumina Primary & casting Recycling • 2-3 million tonnes long • ~ 85% value-added sales* • Sourcing advantage due to in alumina • Aiming to increase sales higher utilization of cost- • Increa
Slide 28: Utilizing moderate power prices to improve on cost and predictability
Utilizing moderate power prices to improve on cost and predictability Recent long-term sourcing contracts in Norway, Germany and Canada New power contracts in Norway 2014 Agder Energi 1,0 TWh/yr 2021-2030 Lyse 0,7 TWh/yr 2021-2030 Axpo 0,5 TWh/yr 2021-2030 Agder Energi 0,5 TWh/yr 2021-2030 New power
Slide 29: Strong improvement trend in Sapa
Strong improvement trend in Sapa More applications and quality-focused customers Sapa results (100 % basis), MNOK Q4’13-Q3’14 Q4’14-Q3’15 1 224 725 367 161 Underlying EBIT Underlying Net income • Strong demand in North America, stable in Europe • BNOK 1 in synergy gains to be delivered ahead of plan
Slide 30: Strengthening relative industry position with ambitious targets
Strengthening relative industry position with ambitious targets 30
Slide 31: Managing industry cyclicality through a prudent financial framework
Managing industry cyclicality through a prudent financial framework Reliable Operating and Financial Disciplined shareholder Effective risk commercial strength capital remuneration management excellence and flexibility allocation policy Cost improvements: Investment grade • Long-term sustaining Revi
Slide 32: Leading performance compared to aluminium peers
Leading performance compared to aluminium peers Strong relative position drives value-creation in challenging markets First-quartile aluminium producer Strongest balance sheet, USD/t Total Debt/Total Equity, 2010-2014 2,000 251 % 181 % 1,500 1,000 71 % 25 % 11 % 500 0 10,000 20,000 30,000 40,000 50,
Slide 33: Hydro's roadmap towards sustainable profitability
Hydro’s roadmap towards sustainable profitability Solid contribution from improvement efforts and currency tailwinds compensate for lower prices RoaCE (%) 12 9 6 3 0 Hydro excluding Delivered Remaining RoaCE improvement programs improvement efforts improvement efforts scenario LME USD/t 1 500, 2011-
Slide 34: Ambitious mid-term strategic goals within the Hydro aspiration
Ambitious mid-term strategic goals within the Hydro aspiration Ambitions Target Timeframe • Improve safety performance, strive for injury free environment TRI<2 2020 • Deliver on Better improvement ambition BNOK 2.9 2019 • Secure new competitive sourcing contracts in Norway post 2020 4-6 TWh 2020 •
Slide 35: Finance
Finance Financial strength through relative positioning and balanced capital allocation Eivind Kallevik Capital Markets Day 2015
Slide 36: Financial highlights
Financial highlights ~3x¹ - 6 %¹ ~ 10x¹ Implied all-in Underlying EBIT FCF primary cost 11.0 BNOK2 ~ 10 BNOK6 ~1 750 USD/mt4 ~ (7)7 + 28 %¹ - 12 %¹ NOK Realized Implied per share all-in price TSR alumina cost ~17 700 ~ (18) %7 ~ 225 USD/mt5 NOK/mt3 1) Q4 2014 – Q3 2015 compared to Q4 2013 – Q3 2014
Slide 37: Robust free cash flow generation and net cash position
Robust free cash flow generation and net cash position At realized all-in price of ~2 400 USD/mt NOK billion Consolidated FCF 10.3 BNOK (0.7) (0.8) (4.1) (2.0) 15.9 (3.0) 3.3 (2.1) Net debt Q3-2014 Underlying EBITDA Operating capital Tax and other* Investments Dividends Currency and End Q3-2015 mino
Slide 38: Prudent financial framework
Prudent financial framework Relative positioning and reliable dividend in cyclical industry Reliable Operating and Financial Disciplined shareholder Effective risk commercial strength capital remuneration management excellence and flexibility allocation policy Improving efficiency, Investment grade
Slide 39: Lifting earnings potential with industry-leading improvement ambitions
OPERATING AND COMMERCIAL EXCELLENCE – IMPROVING EFFICIENCY Lifting earnings potential with industry-leading improvement ambitions NOK billion 2.9 13.2 4.5 10.3 6.0 5.8 UEBIT 2011 Currency Product price Raw materials Less USD 300 UEBIT 2015 ex. Improvements UEBIT 2015 New UEBIT 2019E and inflation 20
Slide 40: Structurally improved cost position
OPERATING AND COMMERCIAL EXCELLENCE – STRENGTHENING MARGINS Structurally improved cost position Productivity gains supported by currency All-in implied primary cost and margin, USD/mt 1) Implied alumina cost and margin, USD/mt 1) 300 475 26 2,500 2300 2175 600 300 66 2,000 2,175 1 875 250 1,500 1,75
Slide 41: Optimizing working capital remains key priority
OPERATING AND COMMERCIAL EXCELLENCE – MANAGING WORKING CAPITAL Optimizing working capital remains key priority Release in Q3 following the above-average build-up earlier in the year NOK billion* USD/t 20 78 78 • Net operating capital generally moves with 76 76 76 76 76 74 LME development 72 72 70 70
Slide 42: Driving long-term shareholder value
Driving long-term shareholder value Balancing capital allocation and financial strength Essential capex Solid balance Sustaining capex ensures operational excellence Long-term shareholder value sheet and Investments to keep market share, reduce costs, Share strengthen margins • Reinvest in liquidity
Slide 43: Maintain investment-grade credit rating
FINANCIAL STRENGTH AND FLEXIBILITY Maintain investment-grade credit rating Funds from operations determine the balance sheet structure • Maintain investment-grade rating Net adjusted debt / Equity 60 % − At least BBB Stable 50 % 55 % − Currently: BBB (S&P), Baa2 (Moody’s), both with stable 40 % 32 %
Slide 44: Maintain a solid balance sheet
FINANCIAL STRENGTH AND FLEXIBILITY Maintain a solid balance sheet Net adjusted debt reduced on higher cash position NOK billion • Increase in Qatalum and Sapa net debt mainly driven by weaker NOK Sep 30, 2014 (2.1) (5.4) (6.4) (6.6) (20.5) MNOK* Sep. 2015 Sep. 2014 -16% Sapa (50%) 1 250 860 Qatalum
Slide 45: Pension obligations increase with falling discount rates
FINANCIAL STRENGTH AND FLEXIBILITY Pension obligations increase with falling discount rates Discount rates development vs Defined benefit obligation (DBO)** Defined benefit obligation sensitivity to 0.5 pp change in % DBO, BNOK discount rates* 4.5 (22) BNOK Norway (21) 4.0 (20) % 2.00 2.50 3.00 3.50
Slide 46: Long-term sustaining capex NOK 3.5 - 4 billion
DISCIPLINED CAPITAL ALLOCATION Long-term sustaining capex NOK 3.5 - 4 billion Higher than average sustaining capex driven by long-life investments in Brazil NOK billion 6.0 5.7 5.7 5.5 (0.2) 5.0 (0.8) 4.7 4.5 4.4 4.0 4.0 3.5 3.5 3.5 3.3 3.1 3.0 2.7 2.6 2.5 2.0 1.5 1.0 0.5 0 2009 2010 2011 2012 2013
Slide 47: Majority of sustaining capex allocated upstream
DISCIPLINED CAPITAL ALLOCATION Majority of sustaining capex allocated upstream High-grading and technology growth investments NOK billion 10.2 • Sustaining projects for 2014-2016: 10 − Red mud disposal area 9 8.6 − Bauxite tailing dam − Smelter relining 8 − Energy rehabilitation 6.7 7 6.2 • Ongoing
Slide 48: Aiming for stable and competitive cash return to shareholders
RELIABLE SHAREHOLDER REMUNERATION POLICY Aiming for stable and competitive cash return to shareholders • Revised dividend policy at the start of 2015 Payout ratio NOK/Share − 40% of net income over the cycle 22 % ~100% − Average 2010-2014 payout ratio of ~100% reflects weak Payout ratio earnings in
Slide 49: Significant exposure to commodity and currency fluctuations
EFFECTIVE RISK MANAGEMENT Significant exposure to commodity and currency fluctuations Aluminium price sensitivity +10%* UEPS Currency sensitivities +10%* NOK million +1.06 Sustainable effect: 3,100 NOK/share NOK million USD BRL EUR 2,400 UEBIT 2 830 (930) (270) UEPS 0.92 (0.29) (0.09) One-off reeval
Slide 50: Primary Metal sensitivities
Primary Metal sensitivities Annual sensitivities on underlying EBIT if +10% in price Revenue impact NOK million • Realized price lags LME spot by ~1-2 months 2,370 • Realized premium lags market premium by ~1-2 months Cost impact Alumina • ~1.9 tonnes per tonne aluminium • ~14.5% of 3-month LME pric
Slide 51: Bauxite & Alumina sensitivities
Bauxite & Alumina sensitivities Annual sensitivities on underlying EBIT if +10% in price Revenue impact NOK million • ~14.5% of 3-month LME price per tonne alumina 780 − ~One month lag • Realized alumina price lags PAX by one month 540 Cost impact Bauxite • ~2.45 tonnes bauxite per tonne alumina • P
Slide 52: Limited financial hedging, flexible business model
EFFECTIVE RISK MANAGEMENT Limited financial hedging, flexible business model • Volatility mitigated by strong balance sheet • Improving relative position to ensure competitiveness • Diversified business: - Upstream cyclicality balanced with more stable earnings downstream - Exposed to different mark
Slide 53: Improvement efforts lift EBITDA potential
Improvement efforts lift EBITDA potential Scenarios are not forecasts, but represent earnings potential based on sensitivities Indicative EBITDA-range in 3 scenarios NOK billion 25 Excl. realized improvement programs 2011-2015* 20 Incl. 4,5 BNOK in realized improvement programs (as is) 15 Incl. 3,0
Slide 54: Improvement efforts and capital discipline contribute to FCF growth
Improvement efforts and capital discipline contribute to FCF growth… Scenarios are not forecasts, but represent earnings potential based on sensitivities Indicative Free cash flow (FCF) range in 3 scenarios NOK billion 15 Excl. realized improvement programs 2011-2015* Incl. 4,5 BNOK in realized impr
Slide 55: ...and lift potential for competitive returns
…and lift potential for competitive returns Scenarios are not forecasts, but represent earnings potential based on sensitivities Indicative RoaCE range in 3 scenarios 15% Excl. realized improvement programs 2011-2015* 12% Incl. 4,5 BNOK in realized 9% improvement programs (as is) 6% Incl. 2.9 BNOK**
Slide 56: Hydro's aspiration underpinned by firm financial targets
Hydro’s aspiration underpinned by firm financial targets Medium and long-term Ambition Timeframe CMD 2015 update Improvement programs 2.9 BNOK 2016-2019 4.5 BNOK 2009 - 2015E Sustaining capex 3.5 - 4.0 BNOK Over the cycle 4.7 BNOK 2015E Average capex incl. growth 6.6 BNOK* 2016-2018 5.8 BNOK 2015E D
Slide 57: Financial strength through relative positioning and balanced capital allocation
Financial strength through relative positioning and balanced capital allocation • Continuous cost and margin improvements • Working capital management • Financial strength and flexibility • Disciplined capital allocation • Reliable shareholder remuneration policy • Effective risk management
Slide 58: Market outlook
Market outlook Kathrine Fog Capital Markets Day 2015
Slide 59: Agenda market outlook
Agenda market outlook • 1 Macroeconomic and downstream outlook • 2 Primary metal market • 3 Bauxite and alumina market • 4 Long-term outlook 59
Slide 60: Macroeconomic and downstream outlook
Macroeconomic and downstream outlook 01 60
Slide 61: Macro outlook affected by emerging markets slowdown
Macro outlook affected by emerging markets slowdown Improving global economic growth medium term Real GDP, annual growth Manufacturing Purchasing Manager Indexes (%) Forecast 10 60 8 6 55 4 2 50 0 -2 45 -4 -6 40 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Jan-14 May-14 Sep-14 Jan-15 May-1
Slide 62: Aluminium demand holding firm despite macro economic volatility
Aluminium demand holding firm despite macro economic volatility Both macro and substitution effects driving demand growth Demand for selected base metals, China 2015 Semis demand, North America Annual growth Annual growth 6% 7% 4% 6% 5% 2% 4% 0% Aluminium semis Zinc Copper Tin Steel 3% -2% 2% -4% 1%
Slide 63: Increased Chinese semis exports over the last year driven by arbitrage
Increased Chinese semis exports over the last year driven by arbitrage Largely stable development as share of total semis production Quarterly net semis exports Net semis exports as share of Comments total semis production Thousand tonnes Million tonnes Share • Moderating export levels during last 5
Slide 64: Asia key region for Chinese semis exports
Asia key region for Chinese semis exports Trade regulations and duties impacting trade flows Chinese semis exports by destination 3% 7% (2014) 10% • 15 % export tax on primary Europe • VAT-rebates on semis exports US • 7.5 % import duties on semis 47% • 3 – 6 % import duties • Turkey introducing 11%
Slide 65: Transport segment continues to drive demand for rolled products
Transport segment continues to drive demand for rolled products Transport increasing its share of total rolled products demand General rolled products demand, Expected market development selected regions • Strong demand contribution from increased YoY-growth aluminium usage in transport segment 10%
Slide 66: Solid uptake in the US extrusion market
Solid uptake in the US extrusion market Gradual improvement expected in Europe Extrusion demand, Expected market development selected regions • US housing market sustaining positive momentum YoY-growth • Construction activity in peripheral Europe showing 10% recovery signs, although from low levels
Slide 67: Primary metal market
Primary metal market HYDRO
Slide 68: Recap Capital Markets Day 2014: Expectations for modest inventory decline also in 2015
Recap Capital Markets Day 2014: Expectations for modest inventory decline also in 2015 Tight market balance continuing World ex-China Supply Demand Demand growth Thousand tonnes base case: 3-4 % 28,000 26,000 24,000 22,000 Demand Supply influences 20,000 influences Transport segment Few new projects
Slide 69: Market balance progressing largely in line with expectations
Market balance progressing largely in line with expectations Weaker demand in some emerging markets, semis for remelt exports from China limiting market deficit World ex-China Supply Demand Happened to a limited extent Happened to a large extent Demand growth: Thousand tonnes 1-2 % 28,000 26,000 24,
Slide 70: Global surplus expected to moderate in 2016
Global surplus expected to moderate in 2016 Surplus moderating from ~1 million tonnes to 0-1 million tonnes Global Thousand tonnes Global growth expectations 2016: Demand: 4-5 % Supply: 2-4 % 60,000 Supply Demand 55,000 Demand influences 50,000 Supply Chinese construction sector influences Continued
Slide 71: Aluminium costs affected by lower energy cost and FX developments
Aluminium costs affected by lower energy cost and FX developments Oil and coal prices trending lower, large movements in currencies vs USD Oil price Currencies Indexed vs USD, Aug 1st 2014=100 USD/barrel 200 Historical Price Brent 90 NOK Blend 150 Current fwd curve BRL RMB 100 Fwd curve 1 year ago 1
Slide 72: Currency movements influencing relative positions on global cost curve
Currency movements influencing relative positions on global cost curve Global Business operating cost, 2015 USD/tonne 2,400 Lower costs • USD denominated 2,000 smelters losing relative competitiveness 1,600 • Chinese smelters to a larger extent benefitting 1,200 from lower coal prices Lower premiums
Slide 73: Most Chinese smelters in the 3rd and 4th quartile on the global cost curve
Most Chinese smelters in the 3rd and 4th quartile on the global cost curve 2 400 USD/t 2 000 China • Roughly half of global smelter Rest of World capacity currently cash Current LME 3m ~1475 USD/t negative, most of this located 1 600 in China 1 200 800 400 0 (‘000 ktpy) 0 5 000 10 000 15 000 20 000
Slide 74: Market balance in China remains uncertain
Market balance in China remains uncertain Uncertain • Large capacity increases of past years unlikely to be repeated SHFE 3 month prices at all-time low supply growth • Focus shifting from top-line growth to bottom-line profitability RMB/tonne • Slower demand growth not yet impacting investments 250
Slide 75: Global reported stocks decreasing, uncertain unreported volumes
Global reported stocks decreasing, uncertain unreported volumes Global reported stocks and inventory days Total global stocks and inventory days Inventory days Thousand tonnes Inventory days Thousand tonnes 120 120 • Reported stocks decreasing over last 14,000 14,000 year 100 100 12,000 12,000 • LME
Slide 76: Regional standard ingot premiums falling back to historical levels
Regional standard ingot premiums falling back to historical levels, all-in price fall in NOK moderated by currency effect Regional standard ingot premiums All-in price USD/tonne USD/tonne NOK/mt 600 3,000 18,000 2,800 17,000 500 2,600 2,400 16,000 400 2,200 15,000 300 2,000 14,000 1,800 200 1,600 13
Slide 77: Bauxite and alumina market
Bauxite and alumina market 03 77
Slide 78: Chinese primary production dependent on imported resources
Chinese primary production dependent on imported resources Around 40% based on imported raw material in 2012-2014 % of Primary Production 100 ~10 % Imported 90 80 30 -40 % Imported 70 60 50 100 % 40 ~90 % Domestic 60-70 % Domestic 30 20 10 0 Primary production Alumina Bauxite Source: CRU, China cust
Slide 79: Chinese bauxite import dependency expected to increase
Chinese bauxite import dependency expected to increase Domestic bauxite production not keeping pace with demand Million tonnes Chinese bauxite import requirements remain high 200 • New domestic resources not sufficient to meet demand 180 longer term 160 • Domestic bauxite resources with lower qualit
Slide 80: Malaysia emerging as largest bauxite exporter to China in 15
Malaysia emerging as largest bauxite exporter to China in 2015 Brazilian bauxite traded at a premium on the back of higher freight, but also higher value in use China bauxite imports, volume and price by country Bauxite price CIF China USD/tonne CIF USD/tonne 100 70 90 Indonesia ban Malaysia entranc
Slide 81: Alumina prices falling on the back of oversupply and lower costs
Alumina prices falling on the back of oversupply and lower costs Lower Chinese alumina imports Cost curves shifting down Alumina price falling creating oversupply ex. China USD/tonne Share of LME Chinese alumina imports World ex. China 450 20% quarterly, thousand tonnes USD/tonne 450 19% 1800 400 16
Slide 82: Alumina prices falling on the back of oversupply and lower costs
Alumina prices falling on the back of oversupply and lower costs Lower Chinese alumina imports Cost curves shifting down …but falling less in BRL creating oversupply ex. China USD/tonne BRL/tonne Chinese alumina imports World ex. China 450 1 200 quarterly, thousand tonnes USD/tonne 450 1800 1 000 16
Slide 83: Few new alumina projects seen world ex-China in the coming years
Few new alumina projects seen world ex-China in the coming years Further curtailments probable World ex. China Million tonnes per year Bauxite/Alumina Price* (%) 80 Atlantic 17% Pacific ex. China 16% 15% 14% 70 13% 12% 11% 10% 60 Oct-14 Oct-15 Apr-12 Jul-12 Oct-12 Apr-13 Jul-13 Oct-13 Apr-14 Jul-14
Slide 84: Long-term outlook
Long-term outlook HYDRO
Slide 85: Strong growth drivers across segments providing solid demand outlook
Strong growth drivers across segments providing solid demand outlook Short-term macroeconomic volatility, long term fundamentals still in place Strong demand drivers in key aluminium segments Semis demand CAGR 2015 – 2025 Growth in automotive vehicle production Transport Aluminium content in cars in
Slide 86: Growth in global semis demand creates opportunities for primary and recycled material
Growth in global semis demand creates opportunities for both primary and recycled material Recycling share increasing, primary demand growth remains firm Global demand outlook CAGR 2015 – 2025 Million tonnes 120 Semis Primary Recycling 100 4–5% 3–4% 5–6% 80 60 40 20 0 2015 2016 2017 2018 2019 2020 2
Slide 87: Market outlook key takeaways
• Demand in mature regions boosted by transport segment, short-term softness in emerging markets • Lower aluminium prices amid lower input costs, FX developments & market surplus • Roughly half of global smelter capacity currently cash-negative; most of this located in China • Chinese bauxite import
Slide 88: Bauxite & Alumina
Bauxite & Alumina Alberto Fabrini Capital Markets Day 2015
Slide 89: Safety performance improves with operational stability
Safety performance improves with operational stability More than 60% TRI reduction compared to 2012, almost 40% down since 2014 Total recordable injuries (TRI) per million hours worked 5 4.3 4.1 4 3 2.6 2 1.6 1 0 2012 2013 2014 2015 YTD 89
Slide 90: Bauxite & Alumina strategic priorities
Bauxite & Alumina strategic priorities Aiming for operational and commercial leadership • Strive for an injury free • Secure and develop bauxite • Further improve organizational environment resources for future decades capabilities and environmental performance • Continue with operational • Further
Slide 91: Bauxite & Alumina: Lifting performance, securing bauxite supply
Bauxite & Alumina: Lifting performance, securing bauxite supply Ball mill issue resolved Long-term ICMS tax framework Record bauxite production Contributing to local “From B to A” improvement established in Brazil at Paragominas communities in Para program 1 BNOK completed* CMD Mar/ CMD Jul Oct Oct
Slide 92: World-class quality assets
World-class quality assets First quartile alumina cost position and bauxite quality advantage USD/tonne Bauxite quality comparison 400 Alumina content Available Al2O3 % Energy Usage ReactiveSiO2 Reactive silica% 2014 weighted average cash cost USD288/t 300 2015 weighted average cash cost USD263/t Re
Slide 93: Ambitious "From B to A" improvement program delivered
Ambitious “From B to A” improvement program delivered Currency development offsets price effects In NOK billion 3.0 Market effects Actions 2.0 taken 1.0 0.0 -1.0 -2.0 1 Billion NOK -3.0 Improvements delivered* -4.0 2011 Price effect Inflation Raw Other Currency From B to A YTD Q315 Underlying Materi
Slide 94: Paragominas delivering beyond planned cost improvements
Paragominas delivering beyond planned cost improvements From B to A program Production, annualized million tonnes 10.9 11.3 10.2 9.1 9.5 9.1 9.0 8.7 9.0 8.3 7.1 6.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 3Q15 1Q15* 2Q15* Oct/Nov 2011 2012 2013 2014 2015E 15 Actual Target • Production above nameplat
Slide 95: Alunorte improvement efforts continue
Alunorte improvement efforts continue Stabilized operations – first step towards lifting production From B to A program Reducing production rate variability 6.2 million tonnes through BABS annualized alumina Million tonnes** production Hydrate production boxplot Oct/Nov 7,3 6,6 2011 2012 2013 2014 2
Slide 96: Pricing alumina and bauxite towards own market fundamentals
Pricing alumina and bauxite towards own market fundamentals From B to A program China bauxite imports, volume and price by country USD/tonne CIF 100 80 60 40 20 0 2011 2012 2013 2014 2015E 2009 2010 2011 2012 2013 2014 2015 Actual Target Indonesia Australia India Brazil Guinea Malaysia Bubble size r
Slide 97: Long-term sustaining projects on track
Long-term sustaining projects on track Investments for the next 10-20 years Paragominas tailing dam Alunorte red mud deposit • Investment into further heightening of tailing dam and new tailings • Dry disposal of bauxite residue using press filtration disposal area • Reduces total cost of bauxite re
Slide 98: Paragominas – new mining technologies support future improvements
Paragominas – new mining technologies support future improvements • Debottlenecking to ~11.0 million tonnes/year by 2018 − Minor capex requirement • Use of residual bauxite − Potential to increase Paragominas lifetime by another 4 to 5 years − Improved long-term mine planning and mining accuracy sup
Slide 99: Alunorte – new production technologies and advanced process control
Alunorte – new production technologies and advanced process control to lift production • Enhanced precipitation process control – improving quality and output • Differential extraction of alumina from bauxite − Potential to achieve a significant reduction in caustic soda usage − Allows for economic
Slide 100: New improvement ambition launched
New improvement ambition launched Further strengthening the competitiveness of first quartile operations Alunorte BNOK 1.0 improvements 2016 – 2019 • Increase production • Improve energy consumption • Reduce fixed costs 500 Paragominas 500 • Support production above nameplate capacity • Improve prod
Slide 101: Shift of alumina sales to index-based pricing continues at full speed
Shift of alumina sales to index-based pricing continues at full speed B&A gain of ~1.1 BNOK if all volume was sold on index at current prices* Sales exposure to index and short term pricing** 35% index 50% index 65% index 75% index 75% index 85% index ~1 mmt net ~2.7 mmt net ~4 mmt net ~5 mmt net ~5
Slide 102: Strengthening aluminium cluster in Pará by lifting equity bauxite production
Strenghtening aluminium cluster in Parã by lifting equity bauxite production Ensuring optimal long-term development of Hydro Alunorte’s second source of high-quality bauxite Alunorte Capacity: 6.6 million tonnes 92% Hydro ownership Hydro entered LoI Albras* with Vale to raise MRN Capacity: 460 000 t
Slide 103: Making progress on ambitious environmental goals
Making progress on ambitious environmental goals Research partnership on biodiversity creates the basis for state-of-the-art approach to mining rehabilitation Rehabilitation gap and schedule Hectares 1200 1000 800 600 • 4 projects: reforestation, big mammals, entomology and fungi • More than 45 rese
Slide 104: Bauxite & Alumina mid-term goals
Bauxite & Alumina mid-term goals Creating shareholder value through efficient and commercial use of raw materials Ambitions Target Timeframe • Improve safety performance, strive for injury free environment TRI <2 2020 • Deliver on new improvement ambition BNOK 1.0 2019 • Lift alumina production at A
Slide 105: Energy
Energy Arvid Moss Capital Markets Day 2015
Slide 106: Aiming for an injury-free working environment
Aiming for an injury-free working environment Total recordable injuries (TRI) per million hours worked 24 20 16 12 8 4 0 2008 2009 2010 2011 2012 2013 2014 2015 YTD Hydro Energi Energi Norge H2** TRI rate YTD end-Nov (own employees) – cases per 1 million hours worked ** Source: Energi Norge, Own emp
Slide 107: Energy strategic priorities
Energy strategic priorities • Realize full potential of strong • Mature captive growth • Capitalize on strong climate asset base and competencies opportunities position over time • Further improve operational and • Raise income potential from • Capture value of the green commercial performance marke
Slide 108: Energy has a dual mission in Hydro
Energy has a dual mission in Hydro Strong, sustainable value creator and energy provider throughout the value chain To own, operate and maximize To provide competitive power sourcing value of Hydro’s energy assets and global energy competence 108
Slide 109: Energy: Securing power supply, maximizing asset value
Energy: Securing power supply, maximizing asset value Signed a power contract with Signed a power contract Signed power contracts Signed a power Alouette agreed on terms Signed 2016 power Lyse, Norway with Axpo, Norway with Eidsiva and BKK, contract for Neuss for new power contract, contracts for B&
Slide 110: Power Markets
Power Markets 01 110
Slide 111: Nordic power prices decline over the last years
Nordic power prices decline over the last years Downward trend also reflected in forward curve EUR / MWh 60 50 40 30 20 10 0 2000 2001 2002 2003 2004 2005 2005 2006 2007 2008 2009 2010 2010 2011 2012 2013 2014 2015 2015 2016 2017 2018 2019 2020 2020 2021 2022 2023 Historical systemprice Nordpool For
Slide 112: Nordic power prices halved from 2008 to 2015
Nordic power prices halved from 2008 to 2015 Mainly driven by lower CO2 and coal prices, as well as lower demand and higher inflow Nordic system price and the most important price drivers • More inflow in 2015 compared to 2008 2015 €/MWh 55 • Total Nordic nuclear is relatively similar in both 50 yea
Slide 113: German power prices drop 60% from 2008 to 2015
German power prices drop 60% from 2008 to 2015 Mainly driven by lower CO2 and coal prices German power price and the most important price drivers • Growth in renewable power offsets reduction in 2015 €/MWh nuclear capacity 75 70 • Other drivers not included here e.g. changes in 65 60 thermal generat
Slide 114: Interconnected Brazilian hydropower-based system
Interconnected Brazilian hydropower-based system Thermal power has increased in importance during recent dry years Brazilian power balance and price development Interconnected power system, Brazil TWh BRL/MWh 600 700 600 500 500 400 N Belo Monte 400 300 Rio Madeira Teles Pires NE 300 200 200 SE 100
Slide 115: Energy in Hydro
Energy in Hydro 02 115
Slide 116: Value creation in Energy dependent on wide array of factors
Value creation in Energy dependent on wide array of factors Volume Expiring Power and new Price contracts Commercial Drivers Sustaining and operational CAPEX competence CAPEX and OPEX & Earnings for taxes new GWh 116
Slide 117: Competitive production costs driven by economies of scale and operational improvements
Competitive production costs driven by economies of scale and operational improvements Taxes and fees account for a large share of costs, making sustainable framework conditions crucial Average operating cost, incl. tax/fees, by category Total operating costs for Norwegian power producers* 2007-2014
Slide 118: Maximizing value from commercial optimization
Maximizing value from commercial optimization Leveraging benefits of flexible hydropower in an environment of increasing balancing needs Hydro has one of the strongest commercial competence centers Physical assets optimized in spot markets and balancing markets in the Nordic power market • Increasin
Slide 119: Delivering value from growth
Delivering value from growth Driven by capacity additions, debottlenecking and operating competence • The normal production in Hydro’s power plants raised from 9.4 in 2008 to 10 TWh in 2013 − New power plants since 2008 Normal production 2008 9,4 TWh − Holsbru, Vasstøl, and Vigeland acquisition − Im
Slide 120: Providing competitive global energy sourcing and competence
Providing competitive global energy sourcing and competence Commercial competence, analytical capability and market insight B&A Primary Metal Rolled Products Assist with updating of energy sourcing strategies Analyze energy markets and provide insight Optimize electric power portfolio Lead power sou
Slide 121: Improving smelter cost position with competitive power sourcing
Improving smelter cost position with competitive power sourcing Utilizing moderate pricing environment in Norway and abroad Sourcing platform for fully-owned smelters, Norway* Sourcing platform for JVs and Rheinwerk smelter** TWh TWh 20 25 18 16 20 14 12 15 10 8 10 6 4 5 2 0 0 2015 2016 2017 2018 20
Slide 122: Industrial ownership framework for RSK assets
Industrial ownership framework for RSK assets 03 122
Slide 123: Norwegian reversion regime
Norwegian reversion regime Private ownership not to exceed 1/3 in Norwegian waterfalls Regional hydropower producers in Norway Hydro’s hydropower assets NTE Trønder Sogn Energi 2051-2057 Tafjord Sunndal 3.2 SFE Sogn Telemark Årdal Høyanger 2044-2049 Østfold Energi Eidsiva Røldal-Suldal BKK E-co 2022
Slide 124: Broad optionality to maintain asset value within the reversion regime
Broad optionality to maintain asset value within the reversion regime Sell to a publicly-owned entity Merge into a larger publicly-owned asset with one or several owners TWh 10* 2 1 3 Sell 2/3 7 NewCo >= 9 TWh or 7 3 Sell 100% 7 >= 6 TWh RSK ~3 TWh Energy Energy production production with RSK w/o RS
Slide 125: Maintaining industrial ownership of RSK volumes is Hydro's preferred alternative
Maintaining industrial ownership of RSK volumes is Hydro’s preferred alternative Government proposal to allow private entities physical hydropower offtake from minority stakes • Law proposal from government on industrial ownership Proposed model for industrial ownership (ANS/DA) published 9 November
Slide 126: Sustainability and climate agenda
Sustainability and climate agenda 04 126
Slide 127: Hydro's climate strategy is to be carbon-neutral from a life-cycle perspective by 2020
Hydro’s climate strategy is to be carbon-neutral from a life-cycle perspective by 2020 Integrated into business strategy in all business areas • Increasing energy-efficiency and reducing emissions in production processes in aluminium plants, rolling mills, and alumina refinery • Increasing productio
Slide 128: Gradual reduction in life-cycle carbon balance towards 2020
Gradual reduction in life-cycle carbon balance towards 2020 Use-phase benefits of aluminium products have the largest effect Hydro’s carbon balance 2014 - 2020 Million tonnes CO2 3 2.5 2 1.5 1 0.5 0 Life-cycle carbon-neutral ambition -0.5 On track -1 Balance 2014 Emissions Net emissions/user Increas
Slide 129: Energy mid-term goals
Energy mid-term goals Creating shareholder value by maximizing value of own hydropower assets and ensuring reliable and competitive energy supply for Hydro Ambitions Target Timeframe • Improve safety performance – injury free environment TRI <2 2020 • Robust industrial ownership for RSK – maintain p
Slide 130: Primary Metal
Primary Metal Hilde M Aasheim Hans Erik Vatne Capital Markets Day 2015
Slide 131: Primary Metal and Metal Markets production portfolio
Primary Metal and Metal Markets production portfolio Norway UK Canada Germany Luxembourg France Slovakia Spain US Qatar Brazil Primary JV 100% Remelt/ Recycling 2.1 1.0 million tonnes million tonnes Australia 2.1 million mt is consolidated capacity. Slovalco and Albras are fully consolidated, Tomago
Slide 132: Striving for an injury-free environment
Striving for an injury-free environment Among the best in the industry Total recordable injuries (TRI) per million hours worked 5 4 3 2 1 0 2011 2012 2013 2014 YTD 2015 132
Slide 133: Primary Metal strategic priorities
Primary Metal strategic priorities World-leading aluminium producer • Strive for an injury-free • Realize 200,000 mt creep • Grow recycling business to environment improve margins and • Extend technology lead with environmental footprint • Deliver on improvement the Karmøy technology pilot programs
Slide 134: Primary Metal: Extending the technology lead and driving improvements
Primary Metal: Extending the technology lead and driving improvements ENOVA support for Karmøy Record quarterly result Hydro Karmøy invests Alouette agreed on terms NOK 1.0 bn 2016-2019 technology pilot approved by ESA in Q1 to high-grade product portfolio for new power contract improvement ambition
Slide 135: Strengthened relative position
Strengthened relative position Improvement programs and currency tailwinds are main contributors Underlying EBITDA per mt in USD for respective 2015 CRU global business operating cost curve3, in USD per mt aluminium divisions12 800 2,400 1st 2nd 3rd 4th 700 quartile quartile quartile quartile 2,000
Slide 136: Improvement culture is a part of Hydro's DNA
Improvement culture is a part of Hydro’s DNA New NOK 1 billion technology driven improvement ambition Fully-owned smelters improvements Joint venture improvement program New BNOK 1.0 improvement ambition continue beyond USD 300 on track Improvements 2009-2015, corresponding to USD 180 per mt improve
Slide 137: Improvement culture and technology go hand in hand
Improvement culture and technology go «hand in hand» Technology-driven capacity increases of ~200 000 mt over the next decade Production fully-owned¹ smelter portfolio 2014-2025, in mt Production joint venture2 portfolio 2014-2025, in mt 100 100 75 75 50 50 25 25 0 0 2014 2015 2016 2017 2018 2019 20
Slide 138: Continuous technology development
Continuous technology development R&D vision HAL 300 HAL4e R&D vision • Operating for several years in • To be used in Karmøy technology pilot • 10 kWh/kg Sunndal and Qatalum • Benchmark on energy-efficiency • Carbon capture-ready cell − 13.5 kWh/kg and environment − 314 kA • Higher degree of automa
Slide 139: Electrolysis technology – challenging the laws of nature
Electrolysis technology – challenging the laws of nature Hydro with benchmark combination of energy consumption and productivity 14 Energy consumption (kWh/kg) HAL300 13 HAL4e 12 HAL4eUltra Competitor technology Ambition Hydro tested technology Hydro technology under development Low energy 11 Curren
Slide 140: Technology innovations in HAL4e
Technology innovations in HAL4e Key enablers for improved performance • Milli-Volt chasing: reduce Ohm’s resistance • Anode-cathode distance • Heat balance • Control of magnetic fields • Reduce operational variations with improved control system Examples of innovations behind HAL4e performance • Cop
Slide 141: Karmøy technology pilot concept
Karmøy technology pilot concept • Karmøy technology pilot with annual production of 75 000 mt − 48 cells HAL4e technology,12 cells HAL4e Ultra • Pilot also responding to need for improved performance of existing smelters in challenging market conditions − New spin-off technology elements and improve
Slide 142: Hydro in the forefront of casthouse and recycling technology
Hydro in the forefront of casthouse and recycling technology AFM (adjustable flexible mould) – sheet ingot casting Adjustable technology flexible mould (AFM) • Improved capabilities towards advanced automotive segment • Automated start up giving improved safety • Reduced cost (e.g. scrap rate, chang
Slide 143: Taking advantage of the growing post-consumed scrap stream
Taking advantage of the growing post-consumed scrap stream • Expect increasing amount of post-consumed scrap Primary vs. scrap-based metal usage globally, in million mt • WMR acquisition allows Hydro to “dig deeper” into 120 scrap pile 100 • Benefit from increased margins through utilizing lower-gra
Slide 144: Targeting the high-growth automotive segments
Targeting the high-growth automotive segments Strong commitment to quality Sheet ingot • AFM¹ implementation in both Årdal and Høyanger – rapidly increasing automotive volumes • Large shift in portfolio - entry into new product segments/ alloys, in particular automotive body sheets Extrusion ingot •
Slide 145: Green energy base gives Hydro low carbon footprint
Green energy base gives Hydro low carbon footprint Indirect emissions, in tonne CO2/t al 18 • Primary Metal consumes ~31 TWh of energy per year 16 in primary smelters* 14 • ~2/3 of current aluminium capacity covered with 12 long-term hydro power supply 10 • ~1/3 of current aluminium production cover
Slide 146: Primary Metal mid-term goals
Primary Metal mid-term goals Creating shareholder value by strengthening relative cost position through lean operations and technology Ambitions Target Timeframe • Improve safety performance – strive for injury-free environment TRI <2 2020 • Deliver BNOK 1 bn under new improvement ambition BNOK 1.0
Slide 147: Rolled Products
Rolled Products Kjetil Ebbesberg Capital Markets Day 2015
Slide 148: Hydro Rolled Products
Hydro Rolled Products Aiming to be No. 1 in Europe and world benchmark • Strong European production base and global sales force Karmøy Holmestrand • 1 million tonnes of flat rolled products per year • Unique integrated aluminium cluster: Hamburg − smelter − world’s largest rolling mill Neuss Norf Gr
Slide 149: Improving weak safety performance is our number one priority
Improving weak safety performance is our number one priority Increasing awareness and fostering safety culture • Continue with risk management, which has Total recordable injuries (TRI) per million hours worked reduced the severity of accidents 25 • Strengthening continuous improvement and learning
Slide 150: Rolled Products strategic priorities
Rolled Products strategic priorities Building on solid foundation, pursuing attractive opportunities • Improve safety performance • Enhance market positions • Fulfill customer and and drive for operational and portfolio high-grading environmental needs excellence • Strengthen relative industry • Key
Slide 151: Rolled products: High-grading portfolio and improving cost position
Rolled products: High-grading portfolio and improving cost position Began installation of the Achieved all-time high quarterly Achieved all-time high quarterly Completed Climb improvement new UBC recycling line result in Q2 result in Q3 program 800 MNOK CMD CMD Jan Apr July Oct 2014 2015 Started con
Slide 152: Strong positions in market segments with high focus on quality and innovation
Strong positions in market segments with high focus on quality and innovation Automotive Foil Beverage can Lithography Special products Ambition Gain No.2 position Defend global No. 1 Maintain No.3 Defend global Maintain No.1 in European BiW in high-end plain foil position in Europe No.1 position po
Slide 153: Optimizing product portfolio by expanding in higher-margin segments
Optimizing product portfolio by expanding in higher-margin segments Pursuing attractive automotive growth opportunity Sales by segment 2010 2015 2020 12% 14% 20% Auto Foil Bev Can Litho Special Products 153
Slide 154: Climb improvement program delivered one year ahead of time
«Climb» improvement program delivered one year ahead of time* Target Time period 800 MNOK 2012-2016 NOK Million 1200 Climb 1000 Contributions driven by 800 • High-grading product portfolio • Margin and portfolio mix 600 • Productivity improvement • Reducing net cost level 400 200 0 Underlying Market
Slide 155: New improvement ambition launched
New improvement ambition launched Significant contribution from recycling, operational improvements and portfolio high-grading Target Time period 900 MNOK 2016-2019 NOK Million 900 Recycling Operational Improvement driven by improvements High-grading, • Recycling • Product high-grading margin & 800
Slide 156: Step change in efficiency and quality of foil products
Step change in efficiency and quality of foil products High-grading our leading high-end foil by further enhancing foil strength and elongation • Next generation converting foil: sophisticated alloy Tensile strength combined with shorter production routing • Significant customer advantages − Faster
Slide 157: Step change in automotive surface quality
Step change in automotive surface quality Automotive skin pass mill offers increased design flexibility for OEMs¹ • EDT2 surfaces are required by OEMs. Today Recoiler Uncoiler rolled with standard cold mills • Dedicated process at new AL3 line will generate significantly improved EDT surface Skin-pa
Slide 158: Automotive line 3 moves Hydro towards No. 2 position in European BIW
Automotive line 3 moves Hydro towards No. 2 position in European BIW Realizing an attractive growth opportunity • Lifting nominal capacity to 200,000 mt/year • Includes dedicated skin pass mill for EDT surfaces • On time and on budget, start of production Q4 2016 • Sales contracting ahead of plan 15
Slide 159: Used beverage can recycling facility ready for start-up in end-2015
Used beverage can recycling facility ready for start-up in end-2015 Lowering the metal cost and contributing to Hydro’s carbon neutrality target • Strengthening unique aluminium cluster • >40 kt/year of liquid aluminium from recycled beverage cans • State-of-the-art sorting technology for full contr
Slide 160: Fulfilling customer and environmental needs
Fulfilling customer and environmental needs User phase benefits of aluminium products - the biggest contributor to Hydro’s carbon-neutral ambition Packaging Aluminium packaging reduces food waste and keeps Optimizing plant efficiency food fresh without cooling Emission reduction through state-of-the
Slide 161: Rolled Products mid-term goals
Rolled Products mid-term goals Creating shareholder value with technology, product innovation and customer relations Ambitions Target Timeframe • Improve safety performance – injury free environment TRI <2 2020 • Deliver on new improvement ambition 900 MNOK 2019 • Differentiate through product innov
Slide 162: Hydro 2016
Hydro 2016 Well-positioned to create value in challenging markets • Strengthening relative industry position through improvement ambitions and R&D lead • Securing resources for future decades • Re-positioning portfolio towards high-margin markets and advanced customers • Financial strength through r
Slide 163: Infinite Aluminium Hydro
INFINITE ALUMINIUM HYDRO
Slide 164: Investor Relations in Hydro
Investor Relations in Hydro Pål Kildemo Head of Investor Relations t: +47 970 96 711 Next events e: pal.kildemo@hydro.com Fourth Quarter Results February 17, 2016 Olena Lepikhina Investor Relations Officer t: +47 96853035 e: olena.lepikhina@hydro.com For more information see www.hydro.com/ir (167)