Norsk Hydro Asa · OSL:NHY

Norsk Hydro Asa — Metal Bulletin Conference, Miami 2012

14 slides from Norsk Hydro Asa's conference presentation, Mar 7, 2012

  1. Slide 1: The future of the bauxite and alumina industry

    The future of the bauxite and alumina industry Presented by Executive Vice President Johnny Undeli, Hydro Miami March 7, 2012 Page 1 © Hydro 27/0607

  2. Slide 2: The world economy is uncertain again ...

    The world economy is uncertain again ... Page 1 © Hydro 27/0607

  3. Slide 3: Page 1 © Hydro 27/0607

    REUTERS UPDATE 2-Norsk Hydro cuts Australia output; may not be enough politics Rio Tinto Alcan announces intention to close Lynemouth aluminium smelter FINANCIAL TIMES Last updated: Ocober 17, Rio Tinto to divest $8bn of aluminium assets By Saran Mishkin ip Tinto is to divest an estimated $8bn of al

  4. Slide 4: 2011: Reflecting a new Hydro

    2011: Reflecting a new Hydro • Improved earnings in 2011 Underlying EBIT NOK million (2 555) 3 351 6 133 • Established fully-integrated aluminium company 2 100 1 800 • Achieved strong operational 1 500 improvements in Bauxite & Alumina 1 200 • Completed Qatalum ramp-up 900 600 • Strengthened focus o

  5. Slide 5: Global structure

    Global structure Bauxite Production for 2011 in aluminium equivalents Alumina production for 2011 in aluminium equivalents, million tonnes 10 000 10 000 8 000 8 000 6 000 6 000 4 000 4 000 2 000 2 000 0 Alcoa Rio Tinto Chalco Hydro pro BHP Rusal Pacif ic Noranda 0 Alcoa Chalco Rusal Rio Tint oHydro

  6. Slide 6: Further improved production in Brazil

    Further improved production in Brazil Annualized production million tonnes 10 • Paragominas H2 bauxite 9 production up 23% from H1, 2011 8 7 • Alunorte H2 alumina production 6 up 9% from H1, 2011 5 4 • Stabilizing production at higher level 3 • Paragominas above 9 mtpy 2 • Alunorte above 6 mtpy 1 0

  7. Slide 7: Softening alumina price

    Softening alumina price Platts index in USD USD per mt Percent 500 18.0 Alumina price % of LME 17.5 450 17.0 16.5 400 16.0 15.5 350 15.0 14.5 300 14.0 13.5 250 13.0 12.5 200 12.0 sep-10 nov-10 jan-11 mar-11 mai-11 jul-11 sep-11 nov-11 jan-12 mar-12 Source: Platts Page 1 © Hydro 27/0607

  8. Slide 8: China’s import of bauxite and alumina

    China’s import of bauxite and alumina 2000 – 2020 Million tonnes Bauxite import aluminium equivalents Alumina import 20 15 10 5 0 2000 2005 2010 2015 2020 Source: Hydro analysis, Antaike Page 1 © Hydro 27/0607

  9. Slide 9: China may become increasingly short upstream

    China may become increasingly short upstream Annualized aluminium equivalents (million tonnes) 15 2006 2007 2008 2009 2010 2011 Illustrative Import 10 development to China 5 Increased net imports for China 0 upstream in the aluminium value chain Export from China -5 Alumina Bauxite Scrap Primary alu

  10. Slide 10: Alumina balance ROW + net import China

    Alumina balance ROW + net import China 2011 – 2020 Figures in million tonnes 90 Alumina demand Alumina demand inc export 80 New alumina projects 70 Alumina production 60 50 40 30 20 10 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Capacity utilization rate 90% 93% 93% 94% 94% 95% New capacity

  11. Slide 11: We may postpone the CAP project

    We may postpone the CAP project Page 1 © Hydro 27/0607

  12. Slide 12: Long-term outlook remains encouraging

    Long-term outlook remains encouraging Shift from LME to alumina fundamentals gains ground Demand for semis World outside China China Million mt 120 ~75% 100 49 80 36 60 23 53 40 45 35 20 0 2010 2015 2020 Source: CRU Page 1 © Hydro 27/0607

  13. Slide 13: Innovation drives aluminium demand

    Innovation drives aluminium demand Consumer electronics Lithographic plates Automotive Heat exchangers Heat Building & construction exchangers Foil packaging Beverage cans Page 1 © Hydro 27/0607

  14. Slide 14: www.hydro.com

    www.hydro.com

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