Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — SEB Nordic Seminar Copenhagen 2024
12 slides from Norsk Hydro Asa's conference presentation, Jan 10, 2024
Slide 1: Norsk Hydro – SEB Nordic Seminar
Norsk Hydro – SEB Nordic Seminar Pål Kildemo Chief Financial Officer January 10, 2024
Slide 2: The unique Hydro offering
The unique Hydro offering Strategic partnerships Integrated value with chain offering industry front runners Broad low-carbon Decarbonization product roadmap to portfolio with 2030, and spearhead net-zero products 2
Slide 3: Aluminium is a key enabler for the entire 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 4: Shifting gear to capture opportunities from the green transition towards 2030
Shifting gear to capture opportunities from the green 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 greener aluminium in to take lead in the market generati
Slide 5: Step up growth investments in Extrusions and Recycling
Step up growth investments in Extrusions and Recycling Extrusions Recycling Increase market share in high-growth, non-commoditized segments Strengthen scrap sorting capabilities; secure feedstock leveraging innovation and solution offerings Develop and grow capacity and capabilities through investme
Slide 6: We have a roadmap to net-zero aluminium products
We have a roadmap to net-zero aluminium products The technology roadmap aims for industrial pilot volumes by 2030 Energy transition in Carbon Capture and HalZero Recycling Brazil Storage Transitioning from heavy fuel Decarbonizing existing Next generation primary Technologies for increasing oil to n
Slide 7: Greener earnings uplift potential 2030
Greener earnings uplift potential 2030 NOK 2 billion1) Greener product capability from total aluminium portfolio1) Hydro is Million tonnes capacity potential Tonnes CO2e per tonne Al. in High-potential Hydro pioneering the 5 product pending capital allocation CIRCAL <2.3t/t product potential green a
Slide 8: Strong profitability in strategic growth areas; capital allocation increases earnings resilience
Strong profitability in strategic Capital allocation increases growth areas earnings resilience Indicative profitability in current return-seeking and EBITDA growth portfolio NOK billion Greener premiums Recycling 5% Extrusions CoC: ~7% 15% IRR 15-30% Energy Upstream Other 24% 13% IRR 20-35% 17% 9%
Slide 9: Our financial framework guides the short and long-term
Our financial framework guides the short and long-term Solid framework for lifting returns and cash flow and managing uncertainty NOK NOK 6.1 Strengthening improvement Total shareholder distribution since 2019 30.7 billion and commercial ambition 2024 - 2030 amounting to 30.7 BNOK billion Improvemen
Slide 10: Market uncertainty continues into 2024
Market uncertainty AEBITDA sensitivity 2024 NOK billion continues into 2024 25.7 26.4 0.9 0.6 0.2 1.1 1.0 0.7 Revenue and cost drivers (indexed) El Billet premium Petroleum coke FOB USG 5 3.0 4 2.5 3 2.0 AEBITDA Market External Fuel switch CO2 Curtailment, Improvement AEBITDA 1.5 Q3-2023 sensitivity
Slide 11: Why invest?
Why invest? Portfolio of profitable growth projects Pathway to net-zero aluminium Greener earnings uplift potential 2030 products supported by partnerships as key enablers for the green transition 2030: NOK 2 billion Refurbishment of buildings Electrical vehicle transition Renewable Copper substitut
Slide 12: Hydro – Industries that matter
Hydro Industries that matter