Slide 1: Fourth quarter 2024 Investor presentation
Fourth quarter 2024 Investor presentation February 14, 2025
Slide 2: Table of contents and cautionary note
Table of contents Cautionary noteresults 2024 Fourth quarter 3 Cautionary note Certain statements included in this announcement contain forward-looking information, Certain statements included in this announcement contain forward-looking information, Additional including, slides without 30 limitatio
Slide 3: Record results, partnering for a green transition
Bauxite & Alumina record results, partnering for a green transition Eivind Kallevik President & CEO February 14, 2025
Slide 4: Safety our key priority
Safety our key priority TRI1) per million hours worked HRI2) per million hours worked 12 months rolling average 12 months rolling average 5 3 4 2 3 2.68 average since Q4’19 1.17 average since Q4’19 2 2.00 per end-Q4’243) 1 1 0.76 per end-Q4’243) 0 0 Q4’19 Q4’20 Q4’21 Q4’22 Q4’23 Q4’24 Q4’19 Q4’20 Q4
Slide 5: Q4 2024 highlights
Q4 2024 highlights Adjusted EBITDA NOK 7.7 billion Free cash flow NOK 1.7 billion, adjusted RoaCE1) 8.5% Bauxite & Alumina record results, driven by alumina price increase 2025 CO2 emission reduction target of 10 percent achieved, one year ahead of time Hydro Extrusions restructuring to manage conti
Slide 6: Return of tariffs: limited impact on Hydro
Return of 232 tariffs: Hydro Extrusions sales volumes Limited impact on Hydro (‘000) tonnes and share of sales, total and per segment, 2024 10% • February 10, President Trump signed proclamations imposing 25 ~985 kt 42% percent section 232 tariffs on all imported steel and aluminium, sales in 2024 w
Slide 7: Hydro 2030: Pioneering the green aluminium transition
Hydro 2030: Pioneering the green aluminium transition, powered by renewable energy Key priorities towards 2030 Step up growth investments in Recycling and Step up ambitions within Extrusions to take lead in the market opportunities renewable power generation emerging from the green transition Execut
Slide 8: Proactive measures in adverse extrusions markets
Proactive measures in adverse Positioning Extrusions for growth extrusions markets • Stepping up improvement efforts through automation, operational improvements, procurement, recycling and commercial NOK 350 million restructuring cost in 2024 to lift operational effectiveness • Investing in press a
Slide 9: Executing on an ambitious decarbonization roadmap
Executing on an ambitious decarbonization roadmap Achieving Hydro’s 2025 CO2 emission reduction target of 10 percent1) one year ahead of time 2018 2025 2030 2050 (or earlier) 10% carbon 30% carbon emission Net-zero carbon emission reduction reduction emissions Alunorte fuel switch Net-zero technolog
Slide 10: Executing on renewable power generation ambitions
Executing on renewable power generation ambitions Hydro Energy Hydro Rein Secure access to renewable power through hydropower, Pursue profitable projects through JV owned by Hydro and MAM1) solar and wind • Upgrading and expanding hydropower assets • 1.7 GW of renewable projects in operations by 202
Slide 11: Active sourcing agenda in challenging power markets
Active sourcing agenda in Norway: Power sourcing for Hydro smelters1) Consumption, TWh challenging power markets 18 Total consumption 16 Gap to fill 14 12 10 External PPAs Challenging markets for 8 Active sourcing agenda in Q4 6 wind and solar 4 Current captive • Securing PPAs for the Norwegian • Un
Slide 12: Partnering with Rio Tinto on carbon capture
Partnering with Rio Tinto on Hall-Héroult with CCS carbon capture • Hydro and Rio Tinto will join forces to identify and evaluate available carbon capture technologies for future implementation in the aluminium electrolysis process • The partnership agreement provides for the sharing of certain info
Slide 13: Partnering with Siemens Mobility
Partnering with Siemens Mobility Greener earnings uplift potential of NOK 2 billion1) Driving circularity in rail, turning old trains into new ones Million tonnes capacity potential Hydro + Siemens Recycled aluminium (high potential) Partnership is including a National railway company to Hydro CIRCA
Slide 14: Being a good neighbor is our license to operate
Being a good neighbor is our license to operate Hydro’s Just Transition framework Hydro Sustainability fund: Just Transition Contribute to a positive development • Launched in Brazil, 2019, to promote sustainable development and support community based in the societies where we operate projects in p
Slide 15: Financial update
Financial update Trond Olaf Christophersen Executive Vice President & CFO
Slide 16: Alumina market remains tight
Alumina market remains tight New capacity ramp-up to rebalance global alumina market in 2025 Alumina prices reaching record Tight alumina market to persist amid Bauxite prices increasing heights in December capacity ramp-up Increase in China's import dependency from Guinea Alumina prices correcting
Slide 17: Geopolitics shaping the aluminium market
Geopolitics shaping the aluminium market Expected further tightening global primary market balance in 2025 Rangebound LME price in Q4 China removes export refund Premium development Tightening global primary for aluminium aluminium balance USD per tonne NOK per tonne USD per tonne USD per tonne Prim
Slide 18: Weak extrusion demand in transport and automotive
Weak extrusion demand in transport and automotive Continued soft markets going into 2025, especially in Europe External market forecasts1) Extrusion sales volumes Year over Year Q4 2024 vs Q4 2023 Extrusion market growth per quarter and annually Hydro Extrusions segment sales volume Growth in % Grow
Slide 19: Adj. EBITDA 2024 vs 2023
Adj. EBITDA up on higher upstream prices, partly offset by lower downstream volumes and eliminations 2024 vs 2023 NOK billion 0.3 1.5 3.3 1.2 0.2 10.7 1.7 1.2 0.9 0.5 1.7 26.3 -2.8 22.3 CO2 compensation Power sales Other Eliminations Adj. EBITDA 2023 Realized aluminium Upstream volumes Raw material
Slide 20: Adj. EBITDA Q4 2024 vs Q3 2024
Adj. EBITDA up on higher upstream prices, partly offset by higher raw material cost Q4 2024 vs Q3 2024 NOK billion 0.5 1.1 0.3 0.3 0.1 0.9 0.6 2.7 1.5 7.7 7.4 -1.6 Other Eliminations Adj. EBITDA Realized aluminium Upstream volumes Raw material cost Extrusion and Energy price Fixed cost FX Other & Ad
Slide 21: Key financials
Key financials NOK million Q4 2024 Q4 2023 Q3 2024 Year 2023 Year 2024 Revenue 55 057 46 754 50 089 193 619 203 636 Reported EBITDA 9 055 4 673 5 934 23 291 26 543 Adjusting items to EBITDA (1 354) (936) 1 433 (1 033) (225) Adjusted EBITDA 7 701 3 737 7 367 22 258 26 318 Reported EBIT 6 375 (2 256)
Slide 22: Hydro Bauxite & Alumina
Hydro Bauxite & Alumina Implied alumina cost and margin USD/mt1) 167 18 116 Results up driven by higher alumina prices, lower raw materials costs, positive currency effects, partly offset by higher fixed costs and a provisions for future social projects 417 331 378 Key figures Q4 2024 Q4 2023 Q3 202
Slide 23: Hydro Aluminium Metal
Hydro Aluminium Metal All-in implied primary cost and margin USD/mt1,4) 500 350 650 Results up on higher all-in metal prices and reduced carbon 2 3759) 2 1259) 2 2009) cost offset by increased alumina cost and a tax settlement 2 2759) 2 450 2 2509) in Brazil 1 925 1 775 1 750 Key figures Q4 2024 Q4
Slide 24: Metal Markets
Metal Markets Results up on positive results from sourcing and trading activities, and positive currency and inventory valuation effects, partly offset by lower results from recyclers Key figures Q4 2024 Q4 2023 Q3 2024 Recycling production, kmt 172 166 170 Metal products sales, kmt 1) 621 645 630
Slide 25: Hydro Extrusions
Hydro Extrusions Results down due to lower sales volumes, lower recycling margins and higher costs, partly offset by strict cost measures Key figures Q4 2024 Q4 2023 Q3 2024 External sales volumes, kmt 220 236 240 Adjusted EBITDA, NOK million 371 923 879 Adjusted EBIT, NOK million (532) 90 15 Adjust
Slide 26: Hydro Energy
Hydro Energy Results up on insurance compensation and higher trading and hedging results Key figures Q4 2024 Q4 2023 Q3 2024 Power production, GWh 2 329 2 440 2 197 Net spot sales, GWh 254 101 104 Southwest Norway spot price (NO2), NOK/MWh 628 818 455 Adjusted EBITDA, NOK million 1 151 805 626 Adjus
Slide 27: Net debt increase of NOK 1.3 billion during Q4
Net debt increase of NOK 1.3 billion during Q4 Increase in net debt as positive free cash flow is more than offset by share buybacks and other effects, including FX effects on debt NOK billion Free cash flow: Excludes hedging collateral (LT/ST restricted cash) and net purchases of money market funds
Slide 28: Board proposes distribution of 50% of Adjusted Net Income
Board of Directors propose distribution of 50% of Adjusted Net Income Prioritizing shareholder distribution by utilizing over the cycle adjusted net debt flexibility 2024 shareholder distribution proposal Prioritizing shareholder distribution • NOK 2.25 cash dividend per share Dividend 3.2% 3.8% 3.1
Slide 29: Our priorities
Our priorities 1. 2. 3. 4. 5. Health and safety Maintain Deliver on Execute Seize first robustness while Recycling, Extrusions, on decarbonization opportunities maneuvering and renewable growth and technology in greener aluminium mixed markets ambitions road map at premium pricing Accelerating growt
Slide 30: Additional slides
») Hydro Additional slides
Slide 31: Position, Strategy and Ambitions
Position, Strategy and Ambitions
Slide 32: Our value chain is a unique opportunity
Our value chain is a unique opportunity Traceability in own value chain ensures certified, traceable and low-carbon aluminium Certified, Responsible Reduced Protect Social Common Circular transparent mining emissions biodiversity impact standards solutions value chain Controlling the upstream gives
Slide 33: Strong global presence
Strong global presence The complete aluminium and renewable energy company Key features Americas Europe Aluminium Metal Energy 5 countries 26 countries • Market leader in low-carbon aluminium Bauxite & Alumina with clear roadmap to net-zero Extrusions • High-quality bauxite and alumina #1 position 9
Slide 34: Hydro has a unique value proposition in aluminium
Hydro has a unique value Providing products with low emissions proposition in aluminium Primary aluminium produced on renewable energy Recycled aluminium from Hydro One stop shop for high-quality, low-carbon aluminium, primary Less than ~25% 13 % for 75R, and and recycled, and transparency in the va
Slide 35: Long-term renewable power contracts ensure robustness
Long-term renewable power Power sourcing for smelters in Europe Power sourcing for Hydro smelters in Norway1) TWh Total consumption contracts ensure robustness 18 16 14 12 Smelter business operating cost 10 curve 2024 8 USD/tonne 6 4 2 800 2 2 600 0 2 400 2024 2026 2028 2030 2032 2034 2036 2038 2040
Slide 36: Aluminium is a key enabler for the green transition
Aluminium is a key enabler for the entire green transition 2030 energy transition will require 15-22 million tonnes aluminium, increasing to 25-42 million tonnes by 2050 Additional aluminium demand from green transition enablers1) E-mobility transition Circular building & Heating & cooling Million t
Slide 37: Shifting gear to capture opportunities in a new reality
Shifting gear to capture opportunities in a new reality Key steps for Hydro to lead the green aluminium transition towards 2030 1 2 3 4 Step up growth investments Step up ambitions within Execute on ambitious Shape the market for in Recycling and Extrusions renewable power decarbonization and greene
Slide 38: Positioning for growth in Extrusions
VELUX Group Positioning for growth in Extrusions Hydro Extrusions EBITDA ambitions • Stepping up improvement efforts through NOK billion automation, operational improvements, 10-12 procurement, recycling and commercial CRU extrusion Market growth vs demand forecast 2025: 30% NA, YoY: 5% NA, 3% EU 20
Slide 39: Executing on Recycling growth ambitions
Executing on Recycling growth ambitions Bridges to be verified PCS capacity Recycling EBITDA potential • Improving hot metal cost by USD 20-30 per tonne1) Tonnes (‘000) NOK billion • Delivering Alumetal synergies of EUR 10-15 PCS consumption 2030 PCS Current portfolio 2030 EBITDA million2) Installed
Slide 40: Executing on renewable power generation ambitions
Executing on renewable power generation ambitions Hydro Energy Hydro Rein Secure access to renewable power through hydropower, Pursue profitable projects through JV owned by Hydro and MAM1) solar and wind • Upgrading and expanding hydropower assets • 1.7 GW of renewable projects in operations by 202
Slide 41: Execute on decarbonization and technology road map
Execute on ambitious decarbonization and technology road map, step up to contribute to nature positive and a just transition Climate Nature Social Forcefully deliver on net-zero roadmap, Contribute to a nature positive future through Improve lives and livelihoods wherever Hydro decarbonizing value c
Slide 42: Partnerships are advancing to the next stage
Partnerships are advancing to the next stage Some of the world's most ambitious companies rely on Hydro to future-proof their businesses Hydro + VELUX Hydro + Mercedes-Benz Hydro + Porsche Hydro + Brompton Hydro + Volvo Group The VELUX Group partnership Mercedes-Benz expands the The industry’s first
Slide 43: Greener earnings uplift potential progressing
Contribution to greener earnings uplift Greener product capability from total aluminium portfolio1) potential of NOK 2 billion1) by 2030 Million tonnes capacity potential progressing Executing in 2024 Building capabilities for future contributions Recycled aluminium (high potential) Hydro CIRCAL Sal
Slide 44: Launching new improvement program
Launching new improvement program Drive profitability towards 2030 Strong track record of delivering improvements NEW: 2030 improvement program NOK billion NOK billion, 2024 baseline 6.5 17.6 Commercial Some key changes excellence program Today’s program Procurement improvement program More focused
Slide 45: Business Areas at the forefront
Business Areas at the forefront Bauxite &Alumina Energy Aluminium Metal Extrusions • Execute on 2030 decarbonization targets • Pursue profitable captive hydropower • Step up growth and be an industry leader • Step up growth investments aiming to and position as sustainability leader growth options w
Slide 46: 2024 | Delivering on our key strategic priorities
2024 | Delivering on our Improvement program 2024 Commercial initiatives 2024 RoaCE over the cycle key strategic priorities NOK 9.9 billion vs 2024 target NOK 3.0 billion vs 2025 target 11.8 percent Last 5 year avg. NOK 9.5 billion NOK 3.9 billion per Q3 2024 Delivering on improvement program and co
Slide 47: Market and trends
») Hydro Market and trends
Slide 48: Revenue drivers through Q4 2024
Revenue drivers through Q4 2024 LME aluminium price Regional standard ingot premiums Platts alumina index (PAX) USD/mt USD/mt USD/mt % of LME 4,000 35,000 1,600 900 35% 1,500 1,400 800 3,500 1,300 30,000 30% 1,200 700 1,100 3,000 1,000 600 25,000 25% 900 800 500 2,500 700 600 20% 20,000 400 500 2,00
Slide 49: Market raw material costs in Q4 2024
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Q4-20 Q4-20 Q1-21 Q1-21 Q2-21 Q2-21 Q3-21 Q3-21 Q4-21 Q4-21 Q1-22 Q1-22 Q2-22 Q2-22 Q3-22 Q3-22 Q4-22 Q4-22 Q1-23 Q1-23 Q2-23 Q2-23 Q3-23 Q3-23 Caustic soda (indexed) Q4-23 Q4-23 Q1-24 Q1-24 Source: Thomson Reuters, PACE, IHS Markit, Pl
Slide 50: Alumina refineries profitable in 2024
Alumina refineries profitable in 2024, market tightness to persist into 2025 Alumina business operating cost Q4 2024 Alumina raw material prices World alumina balance USD per tonne USD per tonne Tonnes (‘000) 600 2013-2019 average 1,600 PAX current: USD 538 per tonne -35% 2021-2023 average 1,400 550
Slide 51: Aluminium - A critical raw material for the green transition
Aluminium - A critical raw material for the green transition Energy transition related Challenging end markets impacting CBAM challenges and solutions demand key driver of growth short-term, but long-term remains to secure level playing field Global aluminium demand outlook - BNEF European extrusion
Slide 52: It's time to accelerate
It’s time to accelerate The world needs more low-carbon aluminium 2030 material decarbonization targets There is limited aluminium below Hydro’s low-carbon product suite growing in number across industries 4 tonne CO2e per tonne Al available as the preferred solution Annual By 2030 primary productio
Slide 53: Long-term outlook remains strong
Long-term outlook remains strong Solid growth in demand for low-carbon recycled and primary aluminium expected towards 2030 and beyond Global aluminium consumption Greener demand growth outpacing rest of the market In million tonnes CAGR 2024-30 ~3% 140 CAGR CAGR Total EU / North 2011-24 2024-30 Ame
Slide 54: Largely balanced markets towards 2030
Largely balanced markets towards 2030 Healthy demand outlook driven by transport and electrical Global semis demand 2024-2030 121 Largely balanced market with recycling playing important role1) In million tonnes In million tonnes 123 4 2 7 Transport 3 4 0 1 0 1 Construction 6 +20 2 Packaging 2 Foil
Slide 55: Transport and construction key semis demand segments
Transport and construction key semis demand segments Source: CRU, Hydro Analysis Global semis demand 2024: ~101 million tonnes Per segment Per product form Per region 6% 24% 2% 1% 2% 10% 13% 26% 10% 6% 1% 1% 13% 51% 16% 34% 30% 20% 19% 8% Extrusions 8% per segment Transport Construction 15% China Pa
Slide 56: Global renewable investments have surged
Global renewable investments have Solar and wind power development in China 5,000 GW surged, driven by China, U.S. and EU 4,000 3,000 2,000 1,000 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 IEA: The world invests almost twice as much in Solar and wind power development in the
Slide 57: Low-carbon aluminium expected to be in limited supply
Low-carbon aluminium expected to be in limited supply – Hydro well positioned Total supply of aluminium with mine to metal emissions below 4 kg CO2e / kg Al is ~8 million tonnes Cradle-to-gate emissions curve 2023 (tonnes CO2e per tonne Al) 24 Other Scope 3 emissions 22 Alumina emissions Scope 1 + 2
Slide 58: EU agenda supporting Hydro's strategy
EU agenda supporting Hydro’s strategy Regulatory framework supporting strategic direction Critical Raw Material Act • Aluminium defined as a critical and strategic raw material • Important recognition of aluminium’s role for EU strategic autonomy and the green transition Sustainability legislation •
Slide 59: Securing a level playing field
Securing a level playing field Three key challenges and solutions for CBAM to 2040 1. Scrap loophole must be closed • Imports based on remelted industrial scrap are assigned zero emissions, creating a giant loophole • CBAM must recognize the emissions from imported, re-melted industrial scrap 2. Pro
Slide 60: Macro trends and favorable properties drive aluminium demand
Macro trends and favorable properties drive aluminium demand Hydro’s strategic direction aims to realize full potential of Importance of aluminium within key green aluminium’s strong qualities and versatility transition technologies PV Electric vehicles Wind power Aluminium Steel Copper Composites P
Slide 61: Sustainable Operations
») Hydro Sustainable Operations
Slide 62: Execute on decarbonization and technology road map
Execute on ambitious decarbonization and technology road map, step up to contribute to nature positive and a just transition Climate Nature Social Forcefully deliver on net-zero roadmap, Contribute to a nature positive future through Improve lives and livelihoods wherever we decarbonizing our value
Slide 63: Decarbonizing across the value chain
Decarbonizing across the value chain Forcefully addressing all sources of GHG emissions in the value chain 2018 2025 2030 2050 (or earlier) 10% carbon emission 30% carbon emission Zero carbon reduction reduction emissions Initatives to reach zero Brazil energy Carbon capture Casthouse Energy efficie
Slide 64: Progressing on the roadmap towards net-zero
Progressing on the roadmap towards net-zero GHG emissions – ownership equity1) Million tonnes CO2e (% of 2018 baseline emissions2)) 10 Achieved reductions Reduction targets since 2018 10% by 2025 30% by 2030 100% by 2050 Status • Fuel switch from heavy fuel oil to natural gas at Alunorte (~434,000 t
Slide 65: Decarbonization ambition: Three paths to net-zero
Decarbonization ambition: Three paths to net-zero Clear technology roadmap to deliver industrial volumes of zero carbon aluminium by 2030 Phase out of fossil fuels Removal of process emissions Recycling Technologies for more PCS use • Alunorte fuel switch • Carbon capture and storage (CCS) • Increas
Slide 66: Contributing to the global Nature Positive goal
Contributing to the global Nature Positive goal Ambition for No Net Loss (NNL) Partnering to contribute Value chain of biodiversity to nature positive outcomes emissions Paragominas bauxite mine: Teaming up with Mercedes-Benz: Direct emissions • Developing KPIs for NNL target, review, and • Mercede
Slide 67: Improving lives and livelihoods, supporting a Just Transition
Improving lives and livelihoods wherever we operate, supporting a Just Transition Respect and promote human rights Fundament Strengthening of the human rights’ due diligence processes for own operations, value chain and affected communities Areas of impact Support positive Invest in Responsible loca
Slide 68: Safe and responsible operations is a top priority
Safe and responsible operations Continuing efforts within ESG performance is a top priority • Transparent and consistent reporting approach for more than three decades Leadership in health and safety, social responsibility, • Sustainability is fully integrated in Hydro’s strategy and compliance as a
Slide 69: Many vying to take sustainable aluminium leading positions
Many vying to take sustainable aluminium leading positions Only Hydro with integrated advantage Customer Share of Global Primary and recycling Decarbonization co-innovation “One roof” mine to renewables presence capabilites technology roadmap on end products component traceability Peer 1 Peer 2 Clos
Slide 70: Sustainable financing initiatives increase access to capital
Sustainable financing initiatives increase access to capital and provide cost of capital advantage Linked to Hydro sustainability ambitions Green and Sustainability-Linked Financing Framework • Framework facilitates issuance of green and sustainability linked bonds 10% • Linked to Hydro’s sustainabi
Slide 71: Greener investments drive value creation
Greener investments drive value creation Hydro’s largest prioritized investment areas combine sustainability and profitability Recycling (PCS) B&A (El-Boilers) Electrolysis abatement Other Greener investments / Several large recycling Substantial decarbonization Technology roadmaps in • Energy savin
Slide 72: Financial Framework
») Hydro Financial Framework
Slide 73: Key performance metrics Q4 2024
Key performance metrics Q4 2024 Adjusted EBITDA Free cash flow1) Adjusted RoaCE2) NOK million NOK billion 12-month rolling % 7,701 1,731 1,747 8.5% 7,367 7.2% 7.2% 3,737 4Q23 3Q24 4Q24 -1,508 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 Upstream costs3,4) Extrusion volumes Improvement program status USD per tonne
Slide 74: Resilient financial framework driving LT shareholder value
Resilient financial framework driving LT shareholder value Solid framework for lifting returns and cash flow, and managing uncertainty Baa2 ibili ty Rob ust NOK lf ex 39.1 (Moody’s) Strong balance sheet and investment sh Total shareholder distribution since 2020 d ofitable grow wtthh aand ar grade c
Slide 75: Capital allocation reflecting strategic modes
Capital allocation reflecting strategic modes Strategic modes reflect global megatrends and high-return opportunities Safe, compliant and efficient operations The Hydro Way Businesses Bauxite & Alumina Aluminium Metal Recycling Energy Extrusions Strategic mode Sustain and improve Sustain and improve
Slide 76: Capital discipline and focused growth
Capital discipline and focused growth Growth & Return seeking investments 3) Sustaining capex has peaked and will start to normalize Recycling • Increase proportion of post consumer scrap (PCS), lowering metal cost • Improved economies of scale in brownfield expansions • Sorting technology and equip
Slide 77: Net Operating Capital development
Net Operating Capital (NOC) development impacted by high upstream prices and weak downstream markets Markets impacting NOC and NOC performance Net Operating Capital1) Continued focus on Net Operating Capital across the group. NOK 2,0 billion, days Segments experiences very different market condition
Slide 78: New improvement program
New improvement program Drive profitability towards 2030 Hydro has a strong track record of delivering improvements 2009-2015 2016-2018 2019-2024 2025-2030 2030 improvement program Key changes More focused scope – Targeting the key value buckets, will no longer track the tail of smaller NOK 4.5 bill
Slide 79: Redesigned 2030 improvement programs
Redesigned 2030 improvement programs Three main programs to drive improvements - measurement methodology tailored to each program Operational Procurement Commercial improvement program improvement program excellence program • Improvement in operational metrics through • Improvements through procurem
Slide 80: New operational improvement program
New operational improvement program Hydro ambition of NOK ~2.5 billion Mitigate structural cost pressure, Improve operational Reduce hot metal cost Improve efficiency of drive efficiency for refinery & mining efficiency in recycling support functions • • • Main drivers Increased mine plant and refin
Slide 81: Procurement program to deliver NOK ~1 billion by 2030
Procurement program to deliver NOK~1 billion by 2030 Measures procurement efforts to fight inflation, Bauxite & Alumina procurement reduce the spend baseline and create value Potential enabled by implementation of new digital procurement solutions. Main projects addressing logistics and raw material
Slide 82: Commercial excellence program
Commercial excellence program NOK ~3 billion commercial potential across Market Increase market share in key segments through portfolio, including remaining potential from share solution offerings and high service level the greener uplift ambition Commercial Increasing commercial impact from alumina
Slide 83: Aiming for competitive returns to shareholders
Aiming for competitive Solid dividend track record returns to shareholders Dividend, 1.25 1.25 1.25 6.85 5.65 2.5 2.25 NOK/share • Aiming for competitive shareholder returns compared to Dividend yield1) 3.2% 3.8% 3.1% 9.9% 7.7% 3.7% 3.6% alternative investments in comparable companies Share of Adj.
Slide 84: Hedging policy
Hedging policy • Overall risk policy • Remain exposed to the inherent cash flow volatility related to Hydro’s business • Fluctuating with the market - volatility mitigated by strong balance sheet • Diversified business • Vertical integrated value chain reducing risk and volatility • Strengthening re
Slide 85: Hedging status
Hedging status Aluminium hedges of 450-460 kt/yr 2025-2026 in place Strategic hedging status1) NOK Billions • 2025: 450 kt hedged at a price of ~2400 USD/t • 2026: 460 kt hedged at a price of ~2600 USD/t • Pricing mainly in NOK. Net USD exposure hedged via USD/NOK Settlements derivatives • Correspon
Slide 86: Significant exposure to commodity and currency fluctuations
Significant exposure to commodity and currency fluctuations Aluminium price sensitivity +250 USD/mt1) Currency sensitivities NOK million USD BRL EUR 4,000 Sustainable effect (NOK million) +1.00 NOK/USD +0.10 NOK/BRL +1.00 NOK/EUR 2,800 AEBITDA 4,730 (510) (130) AEBITDA Adjusted net income One-off re
Slide 87: 2025: Capitalizing on improvements
2025: Capitalizing on improvements Market volatility persists into 2025 AEBITDA sensitivity 2025 Market scenarios AEBITDA 2025 NOK billion NOK billion ~34 25-26 ~27 22.4 0.0-1.0 0.3-0.5 0.6 1.6 ~20 AEBITDA Fuel switch Extrusion and Ramp-up of curtailed Improvement AEBITDA 2025 AEBITDA @ AEBITDA @ la
Slide 88: Hydro profitability growth roadmap
Hydro profitability growth roadmap Main drivers: Improvement efforts, growth and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main upside drivers Profitability target of >10% NOK billion sustaining CAPEX1) 2030 • Sustainability differentiation and Commerc
Slide 89: Resilience and optionality through full value chain presence
Resilience and optionality through full value chain presence Integration brings resilient financial results, broader access to attractive growth and superior customer offering Hydro quarterly AEBITDA per BA (indexed per BA – Q1 2018 = 100)1) Enabling financial resilience…… 700 Resilience in financia
Slide 90: Capital return dashboard 2024
Capital return dashboard 2024 Capital employed1) 8% Bauxite & Alumina Capital returns Balance sheet Free cash flow 27 % 21 22 % % Aluminium Metal adj. RoaCE adj. ND/EBITDA 2024 Metal Markets 25 % Extrusions 4) ~123 BNOK Energy 8.5% 2) 0.93) 2.8 BNOK 13 % 9% 37 % 36 % 12% last 5 years vs adj. ND/EBIT
Slide 91: Appendix: Business Areas
») Hydro Appendix: Business Areas
Slide 92: The aluminium value chain
The aluminium value chain World class assets, high end products and leading market positions Raw materials processing and energy Primary aluminium production, marketing and recycling Aluminium in products Bauxite & Alumina Energy Aluminium Metal Metal Markets Extrusions • High-quality Gibbsite bauxi
Slide 93: Bauxite & Alumina
Bauxite & Alumina
Slide 94: B&A is an important enabler for low-carbon aluminium
B&A is an important enabler for low-carbon aluminium Controlling the top of the We can produce among the lowest carbon Enabling greener premiums for our primary aluminium and value chain aluminium in the world extrusion products Bauxite More than 75% Hydro has the highest quality, lowest carbon and
Slide 95: Large and concentrated bauxite reserves
Large and concentrated bauxite reserves Guinea stands out as a long-term source Bauxite reserves billion mt Guinea China 0,7 7,4 Vietnam Jamaica 5,8 2.0 India Big-league (Top 4) 0,7 Indonesia Mid-league (each > 1 Bt) 1,0 Less significant bauxite resources Total bauxite resources Brazil 2.7 Australia
Slide 96: Bauxite and alumina cluster in Para, Brazil
Bauxite and alumina cluster in Para, Brazil Paragominas bauxite mine Alunorte alumina refinery Bauxite production, mt Alumina production, mt (100% ownership, nameplate capacity 9.9mt) • Long life resource (62% ownership, nameplate capacity 6.3mt) • World’s largest alumina refinery outside China • Ba
Slide 97: Bauxite operational mining costs in Paragominas
Bauxite operational mining costs in Paragominas Indicative Paragominas bauxite mining costs • Labor cost 15% • Influenced by Brazilian wage level 23% • Energy cost • Refers to power and fuel cost • Maintenance and consumables 26% 18% • Mainly influenced by Brazilian inflation • Large fixed cost base
Slide 98: Favorable integrated alumina cost position
Favorable integrated alumina cost position Indicative implied alumina cost composition • Implied alumina cost 2024 - USD 370 per mt1) • Alunorte, Paragominas and external alumina sourcing for resale • Bauxite 17% • Internal bauxite from Paragominas at cost, sourced bauxite from MRN • Energy 34% 10%
Slide 99: Strong commercial organization maximizing value of B&A assets
Strong commercial organization maximizing the value of B&A assets External alumina sourcing Long positions in alumina • Pricing should reflect alumina market fundamentals • 4.0-4.5 1) million tonnes of external alumina sourced • Selling 4.0 – 4.5 million tonnes per year of alumina annually externall
Slide 100: Significant position enhancement since last year
Significant position enhancement since last year Several initiatives executed to boost robustness and stability, enabling full market advantage Strong financial results Energy transition Tailing safety • USD 25 per tonne lower cost on track In 2024, Hydro will complete a 3rd from fuel switching, inc
Slide 101: Improvements and commercial initiatives at the core
Improvements and commercial initiatives at the core Hydro Bauxite & Alumina successfully improved its operations through the entire value chain in 2024 Paragominas Alunorte Commercial • Bauxite trucking to refinery: 17 • Fuel switching from heavy fuel oil to • By actively executing third party perce
Slide 102: Strengthening robustness
Strengthening robustness Competitive cost position Improvement initiatives 2030 improvement program – a solid starting point USD per tonne Alumina world ex China (CRU 2024) NOK billion, Bauxite silica control program targets vs 2024 1 000 baseline 90th percentile Hydro position Commercial 800 Hydro
Slide 103: Executing on greener alumina roadmap
Executing on greener alumina roadmap Alunorte will reduce emissions by 70 percent by 2030 Decarbonization roadmap for Bauxite & Alumina Tonnes CO2e per tonne Alumina Lowering the position on the emission curve from the first quartile to the first decile Alunorte is currently Two additional el-boiler
Slide 104: Sustainability is more than low-carbon
Sustainability is more than low-carbon Contributing to Nature Positive and supporting a Just Transition in Brazil Social: Nature: Effectively supporting Ensuring optimal footprint communities • Hydro is a world leader in: • In 2022, Hydro delivered three TerPaz • Reforestation through its deforestat
Slide 105: Bauxite & Alumina sensitivities
Bauxite & Alumina sensitivities Annual sensitivities on adjusted EBITDA Revenue impact • Realized alumina price lags PAX by one month +250 USD/mt1) +50 USD/mt1) +50 USD/mt1) +10 USD/mt1) +0.1 USD/MMBtu1) Cost impact NOK million Bauxite 2,740 • ~2.45 tonnes bauxite per tonne alumina • Pricing partly
Slide 106: Bauxite & Alumina profitability growth roadmap
Bauxite & Alumina profitability growth roadmap Main drivers: Fuel switch, commercial differentiation and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main upside drivers Profitability target of >10% NOK billion sustaining CAPEX1) 2030 • Positive market an
Slide 107: Capital return dashboard for Bauxite & Alumina
Capital return dashboard for Bauxite & Alumina Returns above the cost of capital in 2024 reflecting increased alumina prices Capital employed in B&A 21 % 12 % 21 % 10.8 BNOK 10-11% 6% 2% ~27 BNOK (31 Dec ‘24) -2 % 2020 2021 2022 2023 2024 Adjusted EBITDA FY 2024 Return requirement ~8% Last 5 years a
Slide 108: Energy
Energy
Slide 109: Pioneering the green aluminium transition, powered by renewable energy
Pioneering the green aluminium transition, powered by renewable energy Hydro’s energy consumption1) 17.6 Hydropower Europe Onshore Wind2) 1.8 Electricity 17.6 TWh Natural gas 1.8 TWh Solar PV2) North America Electricity 2.2 TWh 2.2 1.6 Energy Solutions3) Natural gas 1.6 TWh 10,1 Green hydrogen3) Mid
Slide 110: Position and capabilities across entire value chain
Position and capabilities across entire value chain Major renewable energy producer, market player and offtaker In Operation Offtake Aluminium Metal Hydropower in Norway (equity): 9.4 TWh Norwegian smelters: 17 TWh Hydropower in Norway (operator): 13 TWh Wind power in Norway (operator): 0.7 TWh Offt
Slide 111: Energy is a key differentiator in the aluminium industry
Energy is a key differentiator in the aluminium industry Center of energy excellence in Hydro Bauxite Alumina Primary Extrusion ~25% ~35% ~35% Energy cost 1) ~8% ~50% Energy business area’s • Power sourcing • Power sourcing • Power sourcing and • Power sourcing contribution to Hydro production • Fue
Slide 112: Market pricing principle applied to internal contracts
Market pricing principle applied to internal contracts Based on external price references Sourcing side Revenue side TWh TWh Spot price 0-2 3) • Long-term contract 1 9.4 (7-11) 1) • Market pricing • Fixed annual Regulated pricing price adjustments • Market pricing 16-182) • Duration varies • Differe
Slide 113: Energy EBITDA development
Energy EBITDA development • Production and market prices strongly linked to hydrological Adjusted EBITDA and NO2 spot price NOK million conditions 4 926 NOK/MWh 5 000 3 791 2 500 • Seasonal market variations in demand and supply. Gains or losses 3540 4 000 3 146 2 000 may occur from delink between a
Slide 114: Focus on core business and key strategic priorities
Focus on core business and key strategic priorities towards 2030, building on strong production platform Resource spend Norwegian hydropower Shaping portfolio and Commercial ambition Energy players 2023 organization markets towards 2030 NOK per MWh Cost of labour Other opex MNOK 60 600 NOK 200 milli
Slide 115: Active sourcing agenda
Active sourcing agenda Portfolio of equity power and PPAs Norway: Power sourcing for Hydro smelters 1) Brazil: Power sourcing for B&A and Albras 2)3) TWh Potential consumption – further TWh Potential consumption decarbonization through technology – further decarbonization roadmap through electrifica
Slide 116: Lower Norwegian power surplus
Lower Norwegian power surplus Wind and hydropower interplay is key in the future energy system Norwegian Power Balance Hourly power production by source in price area NO2, Week 6 2024 TWh MWh/h 250 12 000 1 400 10 000 1 200 200 1 000 8 000 800 Wind power production Hydro power production 6 000 150 6
Slide 117: Volatility increases the need and value of flexibility
Volatility increases the need Norwegian hydropower adds flexibility at lower costs and value of flexibility than alternatives, with lower degree of cannibalization Pumped storage hydropower: Opportunity to shift energy production between hours and seasons Daily spot prices NO2 EUR/MWh, nominal 750 C
Slide 118: Several routes to secure power at competitive prices
Several routes to secure power at competitive prices Upgrading and expanding Developing wind and solar Sourcing from external hydropower assets projects including JVs suppliers Røldal-Suldal Wind power projects close to smelters 10 TWh long-term contract portfolio Illvatn Hydro Rein JV Signficant pl
Slide 119: Hydro Rein: Preferred supplier of renewable energy solutions
Hydro Rein: Building the preferred supplier of renewable energy solutions for industrials 2.6 GW 8.3 GW Europe in operations gross capacity in portfolio Mendubim Ventos de ~15 GWh p.a. >60 São Zacarias Stor-Skälsjön potential of power savings or total # of renewable Vista Alegre production behind th
Slide 120: Hydro Rein: Renewable energy projects in the Nordics and Brazil
Hydro Rein: Renewable energy projects in the Nordics and Brazil1 Gross capacity3 Production Project Country Price area Technology # Projects Ownership (%) Partner(s) Status (MW) (GWh) Ventos de São Zacarias Northeast 1 44.9% 456 2,154 Operating Mendubim Northeast 1 30% 531 1,200 Operating Boa Sorte
Slide 121: Hydro Rein: 2.6 GW of renewables in operations
Hydro Rein status after 4 years: 2.6 GW of renewables in operations Projects in operations by end of 2024 Stor-Skälsjön Ventos de São Zacarias Mendubim Boa Sorte Vista Alegre Sweden Brazil Brazil Brazil Brazil Location: SE2 area Location: Northeast Location: Northeast Location: Southeast Location: S
Slide 122: Supporting industries on the road to net-zero
Supporting industries on the road to net-zero Partnership with Fritzøe to Decarbonizing Hydro’s alumina Enabling energy efficiency at develop renewables in Norway production in Brazil Norwegian aluminium plants • Renewable energy development in • PPAs between Alunorte refinery and • Supporting Hydro
Slide 123: Snøheia & Høyanger, Mendubim & Alunorte
Pioneering the green aluminium transition, powered by renewable energy Snøheia & Høyanger Mendubim & Alunorte Renewable electricity to supply the smelter and fuel Renewable electricity to support new switch from natural gas to green hydrogen in recycler electric boilers at the alumina refinery Matur
Slide 124: Pursuing value creation opportunities towards 2030
Pursuing value creation opportunities towards 2030 An industry leader on HSE, performance and sustainability 1 High performance and profitability ambitions: 2 Energy Classic ROACE > 15% average Hydro Rein JV platform eIRR 10 – 20 % Commercial ambition NOK 550 million Active sourcing agenda and robus
Slide 125: Energy profitability growth roadmap
Energy profitability growth roadmap Main drivers: Net spot sales volume and market development Energy excl. REIN JV – Energy excl. REIN JV – Cash flow potential Main further upside drivers AEBITDA potential 2030 after sustaining CAPEX1) 2030 • Additional growth opportunities NOK billion NOK billion
Slide 126: Capital return dashboard for Energy
Capital return dashboard for Energy Returns above the cost of capital reflecting the depreciated asset base Capital employed in Energy 30 % 25 % 8% 3.5 BNOK 12 % 13 % ~10 BNOK 9% 6-7% (31 Dec ‘24) 2020 2021 2022 2023 2024 Adjusted EBITDA FY 2024 Return requirement Last 5 years ~18% average ARoaCE Ca
Slide 127: Aluminium Metal
Aluminium Metal
Slide 128: Global production network
Global production network Primary production and recycling 8 stand alone extrusion ingot recyclers • 3 in the U.S. Norway, 1 155 000 tonnes 50% • 5 in Europe (UK, Luxembourg, • Sunndal (100%): 430,000 tonnes France, Spain and Germany) • Årdal (100%): 205,000 tonnes • St Peter & Alusort scrap sorting
Slide 129: Competitive primary aluminium cash cost
Competitive primary aluminium cash cost Liquid aluminium cash cost 20244) • Primary aluminium cash cost 2024 • All-in implied primary aluminium cash cost1,2) USD 2 300 per mt • LME implied primary aluminium cash cost1,3) USD 1 875 per mt 8% • Alumina • Purchases based on alumina index ~93% 11% • Pur
Slide 130: Hydro has a unique value proposition in aluminium
Hydro has a unique value proposition in aluminium One stop shop for high-quality, low-carbon aluminium: Going to market with a combined offering of primary and recycled aluminium, and transparency in the value chain High-quality aluminium products Transparency in full World class R&D supporting and
Slide 131: Low-carbon footprint due to renewable energy base
Low-carbon footprint due to renewable energy base and industry lowest energy consumption Total emissions, in tonne CO2/t al Energy consumption in Hydro smelters1), kwh/kg al 18 17,5 18 16 16 15,0 14,8 14,4 13.9 14,1 14 13,1 14 12,5 12,3 11.8 12 12 10 10 8 8 6 6 4 4 2 2 0 0 Hydro Karmøy Hydro Hydro H
Slide 132: Strengthen competitiveness through cutting edge technology
Strengthen competitiveness through cutting edge technology, debottlenecking, digitalization and robotization Category Description Improvement Program NOK billion • Maximizing asset utilization at competitive capex levels Creep • Track record of ~100kt since 2014 – up to ~80kt further Commercial Orga
Slide 133: Roadmap to net-zero – Milestones in 2024
Roadmap to net-zero – Milestones in 2024 Pursuing sustainability strategy to differentiate Hydro on climate, nature and social aspects to capitalize on low-carbon market growth Post consumer scrap (PCS) Fuel switch Decarbonized processes in primary production • Alunorte fuel switch to reduce carbon
Slide 134: Leveraging our competitive advantage
Leveraging our competitive advantage to further strengthen our position Strategic priorities to protect and develop the unique position of Hydro’s Primary portfolio Safeguard strong cash flow Improvement • Long-term renewable power and raw material diversification – Albras power secured, active in t
Slide 135: Aluminium Metal sensitivities
Aluminium Metal sensitivities Annual sensitivities on adjusted EBITDA Revenue impact • Realized price lags LME spot by ~1-2 months +250 USD/mt1) +25 USD/mt1) +50 USD/mt1) +50 USD/mt1) +100 EUR/mt2) • Realized premium lags market premium by ~2-3 months NOK million Cost impact 4,040 Alumina 560 • ~1.9
Slide 136: Aluminium Metal profitability growth roadmap
Aluminium Metal profitability growth roadmap Main drivers: Improvement efforts, commercial differentiation and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main further upside drivers Profitability target of >10% NOK billion sustaining CAPEX1) 2030 • Posi
Slide 137: Hydro Recycling and Metal Markets
Hydro Recycling and Metal Markets
Slide 138: Hydro Recycling
») Hydro Hydro Recycling
Slide 139: Hydro recycling operations
Hydro recycling operations Metal Markets Recycling Extrusions Recycling Europe North America Europe North America South America 5 + Alumetal 3 10 9 2 Combined Hydro recycling capacity of ~2.4 million tonnes • ~0.7 million tonnes Extrusion billet production and HyForge • ~1.4 million tonnes Extrusion
Slide 140: Roadmap to 2030 ambitions
Roadmap to 2030 ambitions Strengthening margin robustness and growing through the cycle Improving recycling margins 1 in weak markets Realizing full value potential from 2 completed investments Driving profitable growth, 3 positioning for the future
Slide 141: Accelerating hot-metal cost improvements
1 Improving margins Accelerating hot-metal cost improvements as key competitive advantage in Aluminium Metal Recycling Controlling the controllables – exercising discipline and pushing the boundaries in weak markets The Azuqueca case Raw material mix 100 % 100 % 100% 100% Improving relative cost pos
Slide 142: Executing on strategic growth projects in recycling
2 Driving growth Executing on strategic growth projects in recycling Progressing on key strategic priorities, positioning for the future Customer centric Scrap-sorting Portfolio RFA2) integration approach and sourcing diversification and synergies Partnership with HySort operations Cassopolis advanc
Slide 143: Approved projects delivering on the 2030 PCS target
Approved projects delivering Approved creep / growth projects on the 2030 PCS target Torija greenfield Kety upgrade, Alumetal HyForge Henderson Atessa Recycling post-consumer scrap (PCS) capacity roadmap Million tonnes PCS Luce upgrade Wrexham HySort NowaSol HySort 2030 PCS target Current portfolio
Slide 144: Alumetal becoming an integral part of the metal network
3 Realizing value Alumetal becoming an integral part of the Aluminium Metal metal network On track to realize EUR 10-15 million1) in annual EBITDA uplift by 2027 RFA2) – Critical contributor to realizing Enabling synergies in the AM portfolio Progress made on multiple initiatives the recycling strat
Slide 145: Hydro meeting customer needs with unique recycling capabilities
Hydro meeting customer Proven track record in realizing value from scrap needs with unique capabilities Increasing post-consumer scrap (PCS) share in production Extrusion ingot recycling + recycled foundry alloy, (‘000) tonnes and percentage share1) within recycling 850-1200 450 310 320 370 280 ~30
Slide 146: Approved projects to deliver on the 2030 EBITDA target
Approved projects to deliver on the 2030 EBITDA target in normalized market Recycling adjusted EBITDA roadmap NOK billion Current portfolio • Historical margins 2013-2021 ~ USD • Installed growth • Improving hot metal • Approved growth Installed capacity 100 per tonne for existing capacity1) project
Slide 147: Current cyclical downturn, strong long-term fundamentals
Current cyclical downturn, Global megatrends support recycling strong long-term fundamentals Increasing focus on circular economy and decarbonization from key stakeholders Average EBITDA margin improving over time, high volatility post-covid tracking building & construction demand Society Customers
Slide 148: Scrap exports expected to decrease from ~2030
Scrap exports expected to decrease from ~2030 as China is becoming more scrap self-sufficient Critical to keep low-grade scrap in Europe/U.S. through regulation, sorting and domestic applications Scrap generation increasing at higher rates in China vs Europe/ U.S. in line EU1) is net exporter to Chi
Slide 149: Keeping more low-grade scrap in Europe/U.S.
Hydro aiming to keep more low-grade scrap in Europe/ U.S. through sorting and upcycling Mixed scrap exported to Asia either due to push (limited local use) or pull (higher value) drivers Low Export to Asia High Old building scrap Non-ferrous Auto EC wire chops Clean profiles Painted profiles Shredde
Slide 150: Metal Markets
») Hydro Metal Markets
Slide 151: Metal Markets earnings drivers
Metal Markets earnings drivers • Recyclers Adjusted EBITDA MM • Revenue impact – volume, LME and product premiums NOK million1) • Cost impact • Scrap and standard ingot premiums above LME 750 700 • Raw material mix 650 • Freight cost – proximity to market 600 • Energy consumption and prices 550 500
Slide 152: Strong position in value added casthouse products
Strong position in value added casthouse products • Capitalizing on value added casthouse Leading global position products portfolio Extrusion ingot Unique primary and • Extensive multi-sourcing system 1.4 million mt recycling capacity network including fully and part-owned primary casthouses and st
Slide 153: Pricing of value added products
Pricing of value added products Smelter Intermediate product Casthouse Aluminium Standard ingot Value added products Extrusion ingot Foundry alloy Sheet ingot Wire rod Traded on LME • U.S. Midwest - 1020 • Extrusion Ingot – Priced above standard ingot • Foundry Alloy – Priced above standard ingot US
Slide 154: Metal Markets profitability growth roadmap
Metal Markets profitability growth roadmap Main drivers: Recycling growth, commercial differentiation and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main further upside drivers Profitability target of >8% NOK billion sustaining CAPEX1) 2030 • Positive m
Slide 155: Capital return dashboard for Aluminium Metal & Metal Markets
Capital return dashboard for Aluminium Metal & Metal Markets Investments in recycling capacity to support growth Capital employed in AM (MM) 35 % 31 % 28 % 24 % 10%-11% 22 % 14 % 11 % 12 % ~47 (11) BNOK 3% 2020 2021 2022 2023 3% 2024 9.7 (1.2) BNOK (7-8%) (31 Dec ‘24) Adjusted EBITDA FY 2024 9% 37 %
Slide 156: Extrusions
Extrusions
Slide 157: Extrusions – #1 in the global aluminium extrusion industry
Extrusions – #1 in the global aluminium extrusion industry Present in ~40 countries ~ 19 900 people 1) 1.0 Million mt sales2) 1) Permanent employees as of end-2024 157 2) Total sales in 2024
Slide 158: Hydro Extrusions locations
Hydro Extrusions has more than 100 locations in more than 30 countries Extrusion Europe Nenzing, Austria Lichtervelde, Belgium Raeren, Belgium Ghlin, Belgium Tønder, Denmark Albi, France Chatearoux, France Extrusion Luce, France Puget, France Precision North America Lüdenscheid, Germany Mississauga,
Slide 159: Extrusions earnings drivers
Extrusions earnings drivers Adjusted EBITDA per tonne1), NOK • Contract structure 7,500 • Margin business based on conversion price 7,000 • LME element passed on to customers 6,500 • Mostly short-term contract, typically ranging from spot to 12 months, 6,000 few longer-term contracts with floating p
Slide 160: Leveraging opportunities from greener transition
Hydro Extrusions leveraging opportunities from greener transition and substitution towards aluminium Greener transition 2018 2020 2021 2023 2024 in buildings First project All main >500 projects First projects Project for production Building Systems with Hydro products in Hydro done in Hydro in Hydr
Slide 161: Growing automotive exposure through long-term contracts
Growing automotive exposure through long-term contracts Slower transition to EV growth short-term – long-term potential remains attractive BEV sales facing headwinds short-term, Leveraging global footprint, Record levels of OEM sole supply contracts long-term trend supportive serving OEMs across con
Slide 162: Delivering on growth projects, press replacements and automation
Delivering on growth projects, re-shaping investment agenda towards press replacements and automation Hydro Extrusions CAPEX agenda – short and long-term Complete Ramping up Under execution Project pipeline Hueck M&A The Dalles cast (U.S.) Hungary automotive press Press replacements (Albi & Gainesvi
Slide 163: Future-proofing customers
Future-proofing customers Greener sourcing and production Hydro Extrusions sustainability targets 2030 Sourcing Production Product -27% -24% CO2 emissions on CO2 direct/indirect extrusion billets1) emissions1) Help customers realize their sustainability Reduce own emissions ambitions and positions 1
Slide 164: Customers collaborating with Hydro Extrusions on greener products
Customers from all industries collaborating with Hydro Extrusions to make greener products Serving global customers Partnerships Not only automotive • Global customer, served on two continents, Extrusions Europe Partnership supporting VELUX decarbonization also in the program creating value by U.S.
Slide 165: Extrusions demand significantly down, long-term prospects attractive
Extrusions demand significantly down over last years, long-term growth prospects remain attractive Lower demand compared to base case for NOK 8 billion target Extrusion demand estimates (CRU) Extrusion demand CAGR 2024 - 30 (‘000 tonnes) 4,000 4.3% 5.5% EU April 2021 Forecast Total EU October 2024 e
Slide 166: Solid EBITDA per tonne generation despite weak markets
Solid EBITDA per tonne generation despite weak markets Segment position and margin management as key drivers HE sales volumes split per segment HE EBITDA HE EBITDA per tonne Million tonnes NOK million NOK per tonne 7.020 1.4 6.480 Distribution 15% 1.0 5.696 5,945 5,612 Automotive 10% 10% Transport 1
Slide 167: Extrusions stepping up operational and commercial improvements
Extrusions stepping up ambitions on operational and commercial improvements Ambitious improvement targets 2030 supported by dedicated value streams Category Description Improvement ambition towards 2030 (2024 baseline, real terms) • Increase market share in key, dedicated segments Commercial through
Slide 168: Press consolidations and automation
Press consolidations giving new capabilities and cost savings, automation project providing strong returns Press consolidation example: Cressona (U.S.) Automated Fabrication cells Two old presses One new press Manning 2x7 FTEs per shift 4 FTEs per shift Maintenance cost p.a. USD 3-4 million USD ~2 m
Slide 169: NOK 8 billion target in 2025 challenged
NOK 8 billion target in 2025 challenged by weak short- term demand – Strengthened improvement agenda Underlying extrusion demand in key regions and segments not sufficient to deliver NOK 8 billion Hydro Extrusions EBITDA ambitions NOK billion • Lower recycling and extrusion volumes • Lower recycling
Slide 170: Roadmap to 2030 target
Roadmap to 2030 target underpinned by stronger improvement agenda and structural demand recovery Cyclical improvement in extrusions demand and improvement program supporting long-term targets Hydro Extrusions EBITDA ambitions Hydro Extrusions 2030 NOK billion (real 2023) 1.5 – 2.5 10.0-12.0 10.0 –12
Slide 171: Extrusions profitability growth roadmap
Extrusions profitability growth roadmap Main drivers: Improvement program and commercial ambition ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main further upside drivers Profitability target of >8% NOK billion sustaining CAPEX1) 2030 • Selective profitable growth Commercia
Slide 172: Capital return dashboard for Extrusions
Capital return dashboard for Extrusions Returns below cost of capital reflecting market headwinds and lower demand Capital employed in Extrusions 11 % 10 % 9% 6% 25 % ~31 BNOK 2% 4.1 BNOK 7-8% 2020 2021 2022 2023 2024 (31 Dec ‘24) Adjusted EBITDA FY 2024 Return requirement ~8% Last 5 years average A
Slide 173: Additional information
») Hydro Additional information
Slide 174: Key figures – Outlook Q1 2025
Key figures – Outlook Q1 2025 Note that the information on this page is based on forward looking information from current point in time and changes might occur during the coming quarter Bauxite & Alumina Aluminium Metal Metal Markets • Production volume at nameplate capacity • Lower results from sou
Slide 175: Adj. EBITDA Q4 2024 vs Q4 2023
Adj. EBITDA up on higher upstream prices, partly offset by higher raw material cost and eliminations Q4 2024 vs Q4 2023 NOK billion 0.2 1.6 0.5 0.0 0.2 0.7 0.7 0.7 0.7 7.7 7.7 -1.6 CO2 compensation Other Eliminations 3.7 Adj. EBITDA Realized Upstream Raw material cost Extrusion and Energy price Fixe
Slide 176: Income statements
Income statements NOK million Fourth quarter Fourth quarter Third quarter Year Year 2024 2023 2024 2023 2024 Revenue 55 057 46 754 50 089 193 619 203 636 Share of the profit (loss) in equity accounted investments (311) 46 (363) 492 (516) Other income, net 2 155 1 272 996 4 152 5 543 Total revenue an
Slide 177: Balance sheet
Balance sheet NOK million December 31 September 30 June 30 March 31 December 31 September 30 June 30 March 31 2024 2024 2024 2024 2023 2023 2023 2023 Cash and cash equivalents 15 049 18 875 18 886 19 622 24 618 19 105 22 453 30 873 Short-term investments 3 467 3 928 3 760 4 968 2 641 2 101 1 158 2 6
Slide 178: Adjusting items to EBITDA, EBIT and net income - 2024
Adjusting items to EBITDA, EBIT and net income - 2024 NOK million (+=loss/()=gain) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Year 2024 Unrealized derivative effects on LME related contracts Hydro Bauxite & Alumina 3 8 (7) (18) (15) Unrealized derivative effects on raw material contracts Hydro Bauxite & Alumin
Slide 179: Adjusting items to EBITDA, EBIT and net income - 2023
Adjusting items to EBITDA, EBIT and net income - 2023 NOK million (+=loss/()=gain) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Year 2023 Unrealized derivative effects on raw material contracts Hydro Bauxite & Alumina 177 94 (41) 182 412 Community contributions Brazil Hydro Bauxite & Alumina - 25 - - 25 Total im
Slide 180: Operating segment information: Adjusted EBIT
Operating segment information Adjusted EBIT NOK million Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Year 2022 Year 2023 Year 2024 Hydro Bauxite & Alumina 718 484 10 (586) (221) 88 (610) (269) 43 841 2 761 4 216 626 (1 013) 7 861 Hydro Energy 2 192
Slide 181: Operating segment information: EBIT
Operating segment information EBIT NOK million Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Year 2022 Year 2023 Year 2024 Hydro Bauxite & Alumina 1 094 657 (147) (1 133) (399) (30) (570) (4 223) 81 844 2 834 4 153 471 (5 222) 7 911 Hydro Energy 2 42
Slide 182: Operating segment information: Total revenue
Operating segment information Total revenue NOK million Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Year 2022 Year 2023 Year 2024 Hydro Bauxite & Alumina 7 901 9 413 8 652 7 986 8 320 8 830 8 423 9 948 10 200 11 905 14 306 17 808 33 951 35 521 54 2
Slide 183: Operating segment information: Internal revenue
Operating segment information Internal revenue NOK million Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Year 2022 Year 2023 Year 2024 Hydro Bauxite & Alumina 2 848 3 549 3 011 2 895 3 031 3 260 3 019 3 141 3 238 3 597 4 599 5 174 12 303 12 542 16 60
Slide 184: Operating segment information: RoaCE
Operating segment information Return on average capital employed 1) (RoaCE) Reported RoaCE Adjusted RoaCE 2024 2023 2022 2021 2020 2019 2018 2024 2023 2022 2021 2020 2019 2018 Hydro Bauxite & Alumina 21.5% (12.7%) 1.3% 11.9% 5.4% 1.9% 4.6% 21.4% (2.5%) 1.8% 12.0% 5.9% 2.5% 6.0% 2) Hydro Energy 6.7%
Slide 185: Operating segment information: Depreciation, amortization and impairment
Operating segment information Depreciation, amortization and impairment NOK million Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Year 2022 Year 2023 Year 2024 Hydro Bauxite & Alumina 553 633 624 687 659 729 703 4 523 761 775 649 753 2 496 6 614 2 93
Slide 186: Operational data
Operational data Hydro Bauxite & Alumina Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Year 2022 Year 2023 Year 2024 Alumina production (kmt) 1 519 1 536 1 579 1 559 1 550 1 542 1 522 1 571 1 503 1 492 1 463 1 516 6 193 6 185 5 973 Sourced alumina (k
Slide 187: Operational data: Aluminium Metal
Operational data Hydro Aluminium Metal 1) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Year 2022 Year 2023 Year 2024 Realized aluminium price LME, USD/mt 2 662 3 031 2 497 2 246 2 291 2 273 2 146 2 129 2 248 2 377 2 429 2 450 2 599 2 218 2 374 Reali
Slide 188: Hydro Extrusions, information by business area
Hydro Extrusions, information by business area Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Precision Tubing 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 Extrusion Europe 2022 2022 2022 2022 2022 2023 2023 2023 20
Slide 189: Scenario assumptions
Scenario assumptions Scenarios are not forecasts, but illustrative earnings, cash flow and return potential based on sensitivities • Starting point – AEBITDA Q3 2024 LTM 2025 2030 • Cash flow calculated as AEBITDA less EBIT tax and Assumptions used in CRU / S&P CRU / S&P long-term sustaining CAPEX,
Slide 190: Investor Relations in Hydro
Investor Relations in Hydro Martine Rambøl Hagen Head of Investor Relations Next event t: +47 91708918 e: martine.rambol.hagen@hydro.com Q1 2025 Elitsa Blessi Investor Relations Officer April 29, 2025 t: +47 91775472 e: elitsa.blessi@hydro.com Mathias Gautier Investor Relations Officer For more info
Slide 191: Hydro – Industries that matter
Hydro Industries that matter