Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Day (December 2011)
19 slides from Norsk Hydro Asa's investor day presentation, Dec 1, 2011
Slide 1: Continued repositioning Primary Metal
Continued repositioning Primary Metal Hilde Merete Aasheim, Executive Vice President and Head of Primary Metal December 1, 2011 (1)
Slide 2: Primary Metal's global smelter portfolio
Primary Metal’s global smelter portfolio Primary aluminium annual production capacity in mt Norway - 900 000 Germany - 230 000 Slovakia - 165 000 Canada - 120 000 Qatar - 300 000 JV 100% 2.4 Brazil - 460 000 million mt Australia - 255 000 Attributable capacity: 2.1 million mt. Consolidated capacity:
Slide 3: Qatalum – several large plants in one
Qatalum – several large plants in one (3)
Slide 4: (4)
(4)
Slide 5: Pape ee
Sn Pape ee
Slide 6: (6)
(6)
Slide 7: AEN
AEN Rode Q704 ¥ Sg CELEBRATION Jar. 4
Slide 8: (8)
(8)
Slide 9: Yea
Yea im hog: ae ik * & +e Bas. + i” ce ay RGt = se
Slide 10: Qatalum – 1st quartile cost position
Qatalum –1st quartile cost position Further creep potential beyond 2012 ● On track to exceed nameplate capacity 600 first year of full production ● 1st quartile cost position established ● Cash cost around USD 1400-1500 per mt at 400 2010 market conditions ● Operational excellence and cost optimizat
Slide 11: Albras – successful integration in challenging Brazilian environment
Albras – successful integration in challenging Brazilian environment ● Successful integration with ● Challenging power cost due to impact from focus on improvements in operational strong Brazilian currency and inflation performance ● Dialogue established between government and joint industry (11)
Slide 12: Roadmap to competitiveness
Roadmap to competitiveness Primary Metal’s improvement program Business operating cost Secure industry 1. USD/mt USD 300/ tonne 3000 friendly energy Long-term improvements sustainability for regime 2500 2000 the smelter portfolio 1500 1000 2. 500 Cash generation for 0 0 5000 10000 15000 20000 25000
Slide 13: Primary Metal delivers on improvement program
Primary Metal delivers on improvement program USD 200 per mt to be realized within 2011 Operational improvements 300 • Improved current efficiency • Reduced power consumption • Reduced anode consumption 100 Fixed cost reductions and lean operations 200 Further operational improvements Technology cos
Slide 14: All parts of Primary Metal have contributed
All parts of Primary Metal have contributed ● USD 200 per mt corresponds to >NOK 1 billion ● Main deliveries within: ● Plant process improvements ● Fixed costs ● Plant fixed costs ● PM overhead costs ● Technology costs ● Casthouse margin and logistics Expected 2010-2011 Process improvements Fixed co
Slide 15: USD 300 program achievements
USD 300 program achievements Amperage and current efficiency Sustaining CAPEX reduced by 35% ~50 million NOK per year Energy and anode consumption Overhead costs reduced by 35% ~100 million NOK per year Reduced scrap rates Plant fixed costs ~70 mill NOK per year reduced by 10% (15)
Slide 16: Raw material cost impact Primary Metal cash cost
Raw material cost impact Primary Metal cash cost USD per mt in fully owned smelters 800 Alumina ● Alumina cost per mt has followed LME ● Alumina as percentage of LME increasing ● Established long position in alumina 0 2009 2010 Jan-Sep 2011 ~400 USD 800 Power ● One power contract in Norway expired i
Slide 17: Robust power coverage
Robust power coverage Power coverage (%), based on consolidated production in 2011 ● 80% of current production has power 100% coverage until 2020 or beyond ● ~2/3 based on hydro-power 75% ● Renewal of power contracts ● Tomago – contract signed ● Alouette – MoU signed for expansion and 50% prolongati
Slide 18: Primary Metal priorities
Primary Metal priorities ● Continue to deliver improvements in fully owned and JV smelters ● Secure 1st quartile cost position for Qatalum ● Progress power sourcing agenda (18)
Slide 19: www.hydro.com
www.hydro.com