Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Kepler Chevreux presentation (November 2020)
17 slides from Norsk Hydro Asa's conference presentation, Nov 25, 2020
Slide 1: Pål Kildemo, EVP and CFO, November 25 2020
Pål Kildemo, EVP and CFO November 25 2020
Slide 2: Agenda
Agenda Hydro in brief Q3 Update ESG Financial policy Strategic priorities
Slide 3: Hydro at a glance
Hydro at a glance A global aluminium producer with positions across the value chain Company statistics Key shareholders • Founded in 1905 A global supplier of aluminium • Listed on the Oslo 34% • Headquartered in Norway stock exchange • 40 countries Our purpose is to create a more • Market capitaliz
Slide 4: Agenda
Agenda Hydro in brief Q3 update ESG Financial policy Strategic priorities
Slide 5: Q3 2020 Underlying EBIT NOK 1 407 million, Free cash flow NOK 3.1 billion
Q3 2020 Underlying EBIT NOK 1 407 million Free cash flow NOK 3.1 billion Markets continuing recovery from Q2 lows Extruded Solutions uEBITDA up 28% vs Q3 2019 Paragominas pipeline maintenance finalized, Alunorte ramping up to nameplate capacity RSK value secured through Hydro-Lyse transaction Positi
Slide 6: Aluminium surplus lower than earlier forecasted
Aluminium surplus lower than earlier forecasted Global recovery reducing over-supply Quarterly market balances, world ex. China and China Estimates global balance 2020 Thousand tonnes, primary aluminium Million tonnes, primary aluminium 3.1 2 500 2.8 2 000 2.6 1 500 1 000 500 > 0 1.2 1.0 ( 500) (1 0
Slide 7: Cost initiatives well underway across all business areas and staffs
Cost initiatives well underway across all business areas and staffs Improvement program behind plan on pipeline maintenance and slower ramp up in Brazil, expect to catch up to run rate at year end Bauxite & Alumina Accumulated 2020 targeted • Extended pipeline maintenance negatively affecting produc
Slide 8: Agenda
Agenda Hydro in brief Q3 update ESG Financial policy Strategic priorities
Slide 9: Sustainability dashboard 2020
Sustainability dashboard 2020 Safety Social responsibility Community response Biodiversity TRI rate 2.68 to Covid-19 On track YTD October 2020 Collaboration with local authorities 2019 2018 2030 Empowering 500,000 people Information and awareness Ambition: Zero fatalities and with education and skil
Slide 10: EU regulatory developments paving the way for low-carbon aluminium
EU regulatory developments paving the way for low-carbon aluminium Aluminium a strategic CO2 compensation Trade measures material for the EU • European Commission has announced provisional anti-dumping duties on Chinese extrusion imports • EU imports from China rose from 600 thousand tonnes in 2011
Slide 11: Agenda
Hydro in brief Q3 update ESG Financial policy Strategic priorities
Slide 12: Ambitions and targets
Ambitions and targets Shareholder, financial and hedging policy Overall risk Investment grade Dividend policy Hedging policy Funding policy management strategy credit rating Volatility managed by strong Committed to investment Dividend policy Fluctuating with the market; Centralized funding, aiming
Slide 13: Capital return dashboard YTD 2020
Capital return dashboard YTD 2020 Measures to preserve cash and financial strength during the Covid-19 situation Capital employed1) 0% Bauxite & Alumina Capital returns Balance sheet Free cash flow 22 % Primary Metal 27 % Metal Markets URoaCE FFO/aND YTD 2020 Rolled Products ~87 BNOK Extruded Soluti
Slide 14: Agenda
Hydro in brief Q3 update ESG Financial policy Strategic priorities
Slide 15: Hydro's strategic direction towards 2025
Hydro’s strategic direction towards 2025 Seizing opportunities where our capabilities match megatrends 1 1 Strengthen position in low-carbon aluminium 2 Diversify and grow in recycling and new energy Profitability & Sustainability Recycling Renewables Batteries
Slide 16: Lifting profitability, driving sustainability
Key priorities • Targeted capital allocation • Deliver on improvement programs • Cash focus through strict capital discipline • Proactive measures in challenging markets • Maintain investment grade credit rating • 10% return target over the cycle Lifting profitability, • Safe and efficient operation
Slide 17: Slide 17
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