Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Day (January 2011)
18 slides from Norsk Hydro Asa's investor day presentation, Jan 13, 2011
Slide 1: Repositioning Primary Metal
Repositioning Primary Metal Hilde Merete Aasheim, Executive Vice President and Head of Primary Metal January 13, 2011 (1)
Slide 2: Continued focus on repositioning
Continued focus on repositioning Extended improvement program in Norwegian plants Finish ramp-up of Qatalum Successful integration of Albras Increased improvement ambition in Kurri Kurri • Cost repositioning of existing assets • Integration and ramp-up of new assets (2)
Slide 3: Improvement efforts give results
Improvement efforts give results Estimated primary aluminium production cash costs ● ~25% decrease in cash cost from USD/tonne1 2008 to 2009 2 175 ● Mainly reduction in input cost driven by market 1 750 and closure of high-cost capacity 1 675 ● Benefit of cost reduction program ● USD 50 decrease in
Slide 4: Operational excellence and fixed cost focus – delivering better than plan in 2010
Operational excellence and fixed cost focus – delivering better than plan in 2010 USD/tonne 50 ● Realized improvement USD 50/tonne vs. target USD 40/tonne by end-2010 40 ● Fixed cost and process improvements 30 contributing equally 20 ● Solid operational performance 10 0 Improvement target 2010 Real
Slide 5: Improvement program lifted to USD 300 per tonne
Improvement program lifted to USD 300 per tonne Operational improvements • Improved current efficiency 300 • Reduced power consumption • Reduced anode consumption Fixed cost reductions and lean operations 200 125 Further operational improvements Technology costs/spin-offs USD Investments 300/tonne 1
Slide 6: Roadmap to competitiveness
Roadmap to competitiveness Business operating cost 2010 Deliver USD Secure industry 1. USD/mt 300/tonne friendly energy 3000 Long-term improvements regime 2500 sustainability for 2000 smelter portfolio 1500 1000 2. 500 Align Cash generation for 0 kt Drive organization re-investment continuous 0 5000
Slide 7: Attractive Qatalum fundamentals
Attractive Qatalum fundamentals ● Integrated power plant with long- term and low-cost gas sourcing ● Low cash cost smelter ● Potential for future expansion ● Serving markets on 3 continents (7)
Slide 8: Successful handling of Qatalum outage
Successful handling of Qatalum outage ● Power outage and mitigating actions ● Black-out following short circuit in external transformer on August 9, 2010 ● Studies, review of routines, tests and training part of mitigating actions ● Qatalum has taken necessary steps to minimize future risk ● Market
Slide 9: Status of Qatalum ramp-up
Status of Qatalum ramp-up ● Restart after power outage commenced on September 15, 2010 with ambition to finish ramp-up by end-Q1 2011 ● By January 13 ~50% of ramp-up has been completed ● Ramp-up is currently being hampered by technical challenges related to the cooling water system for the steam tur
Slide 10: From ramp-up to stable operations in 2011
From ramp-up to stable operations in 2011 Qatalum primary aluminium production, 1 000 tonnes ● Current focus on further ramp-up 600 ● 2011 estimated production ~100 000 tonnes below capacity, dependent on 500 timing of final ramp-up ● 2012 production ~600 000 tonnes 400 ● Following ramp-up: Transiti
Slide 11: New presence in Brazil with Albras
New presence in Brazil with Albras ● Among the largest smelters in the Americas and established in 1985-86 ● Hydro is a majority owner ● Owned 51% by Hydro and 49% by Nippon Amazon Aluminium Company ● Long-term energy coverage with hydropower based LME-indexed contract until end-2024 ● Alumina sourc
Slide 12: Integration planning well under way
Integration planning well under way ● Work program defined to assess improvement opportunities ● Hydro has had a technical service agreement with Albras over several years ● Hydro has had a long-term metal purchase contract with Vale for ~1 million tonnes primary aluminium (12)
Slide 13: Ambition to remain leader in primary technology
Ambition to remain leader in primary technology Next- generation smelter HAL 300 HAL4e R&D portfolio In operation Pilot plant Future vision (13)
Slide 14: HAL 300 – current top standard
HAL 300 – current top standard Next- generation smelter HAL 300 ● Operating for several years in Sunndal ● Ramping up in Qatar HAL ● Qatalum 300 power outage verified the robustness of the cells HAL4e R&D portfolio In operation Pilot plant Future vision ● Operating at: ● 13.3 kWh/kg ● 313 kA ● 1.6 t
Slide 15: HAL4e – delivering impressive results
HAL4e – delivering impressive results Next- generation smelter HAL4e ● Benchmark technology – process parameters and environment ● 30 months of operations in Årdal HAL 300 HAL4e ● First verification period delivered better result than target R&D portfolio In operation Pilot plant Future vision ● Cur
Slide 16: R&D portfolio – preparing for future projects
R&D portfolio – preparing for future projects Next- Next- generation generation smelter smelter R&D portfolio ● HAL4e optimization – to be ready for next project ● HAL Ultra – future vision HAL 300 HAL4e R&D portfolio ● Significantly lower kWh/kg In operation Pilot plant Future vision ● Carbon captu
Slide 17: Primary Metal priorities
Primary Metal priorities ● Deliver improvements according to extended program to enhance competitiveness ● Complete ramp-up of Qatalum and realize full potential of low-cost smelter ● Successful integration of Albras – providing smelting capacity in fast- growing region ● Leader in primary technolog
Slide 18: www.hydro.com
www.hydro.com