Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — 2017 Global Metals, Mining & Steel Conference
20 slides from Norsk Hydro Asa's conference presentation, May 17, 2017
Slide 1: Norsk Hydro
Norsk Hydro Svein Richard Brandtzæg 2017 Global Metals, Mining & Steel Conference (1)
Slide 2: A resource-rich and fully integrated global aluminium company
A resource-rich and fully integrated global aluminium company Hydro with strong market positions globally #1 position #1 Strong ~24% position presence in foil and litho market globally precision the Nordic share in tubing power extruded globally market products #3 position extrusion ingot ~27% marke
Slide 3: Volatile markets, solid demand growth
Volatile markets, solid demand growth 3
Slide 4: Aluminium's reach is growing in response to key long-term trends
Aluminium’s reach is growing in response to key long-term trends Substitution continues to be a key driver for aluminium Transport Packaging Building & construction Electrical Semis 3-4% Urbanization Lightweighting Urbanization Substitution China moderating Substitution Sustainability Urbanization E
Slide 5: Primary supply growth moderating
Primary supply growth moderating Chinese and Middle East primary production growth coming down Russia Western Europe 1% 2% North America China 2% 0% 1% -3% Middle East 17% 10% 4% 4% India South America 9% 9% Primary supply growth -3% 0% CAGR 2000-2016 CAGR 2016-2020 Source: CRU 5
Slide 6: Primary aluminium market expected to be largely balanced in 2017
Primary aluminium market expected to be largely balanced in 2017 2017 global demand growth outlook 4-6% World ex. China 2-4 % Primary market balance 2017 (mill t.) (‘000t) 2-3 % 2 000 ~29.1 Production ~27.6 Demand 1 000 World ex. China 0 China 10-12 % (mill t.) -1 000 6-8 % ~35.3 -2 000 Production ~
Slide 7: Increasing average all-in aluminium prices in 2017
Increasing average all-in aluminium prices in 2017 Widening arbitrage between LME and SHFE in Q1-17 compared to Q4-16 LME and SHFE aluminium prices All-in aluminium prices USD/mt USD/mt NOK/mt 2 200 3 000 18 000 2 000 2 600 16 000 1 800 2 200 14 000 1 600 1 800 12 000 1 400 1 200 1 400 10 000 Jan-15
Slide 8: Declining alumina prices, Atlantic bauxite exports to China rise
Declining alumina prices, Atlantic bauxite exports to China rise Platts alumina index (PAX) Monthly Chinese bauxite imports USD/mt Percent Million mt 400 21% 8 20% 7 350 19% 6 18% 300 5 17% 4 16% 250 3 15% 2 200 14% PAX % of LME (3 mo) 13% 1 150 12% 0 Jan July Jan July Dec June Dec June Dec Feb Apr
Slide 9: Further strengthening Hydro's solid position
Further strengthening Hydro’s solid position 9
Slide 10: Conducting business the Hydro Way
Conducting business the Hydro Way Safety and environment Corporate responsibility Safety performance Carbon-neutral from a (TRI) at industry benchmark life-cycle perspective On track 2.6* 2020 ambition of a TRI rate Close reforestation gap below 2.0 and zero fatalities by 2020 In progress On track *
Slide 11: Operational leadership among peers
Operational leadership among peers Solid cost positions in aluminium value chain Lowest CO2 emissions Smelter BOC curve by company (2017) Tonnes CO2/tonne aluminium, 2016 USD/mt 20 2,000 Direct Indirect Average 500 0 0 30,000 60,000 Among the best on safety performance Alumina BOC curve by company (
Slide 12: Proven track-record of productivity gains continues
Proven track-record of productivity gains continues Industry’s most ambitious improvement efforts on track, with NOK 1.4 billion delivered in 2016 Better Better Better Better Bauxite & Alumina Rolled Products Primary Metal BNOK BNOK 1.0 BNOK 0.9 BNOK 1.0 2.9* Target 2019 Target 2019 Target 2019 NOK
Slide 13: 2017: Inaugurating new automotive line & technology pilot
2017: Inaugurating new automotive line & technology pilot Quadrupling body-in-white capacity to 200,000 mt/year & verifying world’s most climate-efficient electrolysis 13
Slide 14: Hydro's strategic direction
Hydro’s strategic direction 14
Slide 15: Full value chain approach for higher value creation
Full value chain approach for higher value creation Dedicated business models in each area combined within an overall company framework Benefits of Hydro’s integrated model Bauxite Primary aluminium mining production Operations and technology Customers and markets Alumina Energy • Operational excell
Slide 16: Hydro's strategic direction
Hydro’s strategic direction Tailoring our competitive advantages to the key drivers and challenges in the world of tomorrow Better BNOK 2.91) Hydro improvement drive A solid platform for building Hydro aims to be climate continues at full pace an even stronger Hydro neutral by 2020 • Continue improv
Slide 17: Global aluminium's most ambitious climate strategy
Global aluminium’s most ambitious climate strategy Carbon-neutral by 2020 from a life-cycle perspective Hydro’s climate strategy Value-creating implementation examples Karmøy technology pilot Primary Metal, Norway Climate and energy- efficiency in production Alunorte Fuel Switch Project Bauxite & Al
Slide 18: Lifting performance, driving shareholder value
Lifting performance, driving shareholder value Managing cyclicality Strengthening competitiveness Differentiating through financial through improvements and through the integrated strength and flexibility high-grading value chain • Maintain financial strength • Strengthen leading positions in • Add
Slide 19: Hydro 2017
Hydro 2017 • Safety first • Deliver on Better improvement ambition • Strengthen competitive position • Maintain financial strength and flexibility
Slide 20: Infinite Aluminium Hydro
INFINITE ALUMINIUM HYDRO
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