Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Nordic Energy Summit 2010
18 slides from Norsk Hydro Asa's conference presentation, Jun 1, 2010
Slide 1: A solid platform for growth
A solid platform for growth Nordic Energy Summit 2010 Executive Vice President Hydro, Ola Sæter (1) 2010-06-01 Not for distribution in the United States, Australia, Canada or Japan
Slide 2: Cautionary note
Cautionary note Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management’s plans, objectives and strategies for Hydro, such as planned expansions,
Slide 3: Cautionary note
Cautionary note This announcement is not an offer for sale of securities in the United States or any other country. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be sold in the United States absen
Slide 4: Global megatrends intact
Global megatrends intact Growth must be sustainable Millions climb out of Increasing energy Climate change poverty demand (4) 2010-06-01 Not for distribution in the United States, Australia, Canada or Japan
Slide 5: Aluminium – a part of the solution
Aluminium – a part of the solution We can reduce energy consumption and emissions in primary production We can develop aluminium products that help customers improve energy efficiency and reduce their emissions We can bring aluminium back into the “loop” – and recycle it using only 5% of the initial
Slide 6: Healthy long-term demand for aluminium
Healthy long-term demand for aluminium Primary aluminium consumption in 1,000 tonnes 80 000 + 76% 70 000 60 000 Change in % per decade 50 000 + 54% 40 000 + 39% + 18% 30 000 20 000 10 000 0 1980 1990 2000 2010E 2020E Source: CRU (6) 2010-06-01 Not for distribution in the United States, Australia, Ca
Slide 7: Strong positions along aluminium value chain
Strong positions along aluminium value chain Raw materials processing Primary aluminium production, Aluminium in products and energy marketing and recycling Bauxite Energy Primary Metal Rolled Extruded & Alumina Metal Markets Products Products (7) 2010-06-01 Not for distribution in the United States
Slide 8: Qatalum: World-leading, integrated megasmelter
Qatalum: World-leading, integrated megasmelter (8) 2010-06-01 Not for distribution in the United States, Australia, Canada or Japan
Slide 9: World-class assets in resource-rich Brazil
World-class assets in resource-rich Brazil CAP alumina Alunorte refinery project alumina refinery Increasing stake from Increasing stake from 20% to 81% 34% to 91% • Bauxite licenses • Sales contract portfolio • Competence MRN bauxite mine Paragominas bauxite mine Albras aluminium smelter Current st
Slide 10: Energy decides competitiveness of aluminium
Energy decides competitiveness of aluminium 1 000 900 Average 800 Wages Power 700 11 % Carbon 32 % 600 USD/t 15 % 500 400 Other Alumina 13 % 300 29 % 200 100 0 Alumina Carbon Wages Power Other Source: CRU. . (10) 2010-06-01 Not for distribution in the United States, Australia, Canada or Japan
Slide 11: Solid Norwegian base
Solid Norwegian base • Norway’s second-largest hydropower producer Sogn (Tyin og Fortun) 3 TWh • Technology center • Hydro R&D Raufoss (210) • NTNU/SINTEF/IFE/UiO • Annual R&D activity: NOK 690 million • Platform for environmental technology Røldal-Suldal 2,7 TWh • Norwegian base vital for global gr
Slide 12: High-value hydropower assets
High-value hydropower assets Underlying EBITDA in NOK million 1 367 1 973 1 355 623 • 9.4 TWh normal production 680 623 • Further development potential • Leading O&M cost position 519 471 421 446 404 325 • Norwegian power portfolio optimized 327 305 299 242 254 versus market 2007 2008 2009 2010 • Pr
Slide 13: Increasing Sogn power production
Increasing Sogn power production Total hydropower production up 5–10 % • Holsbru construction start-up fall 2010 • 84 GWh • Utilizing existing infrastructure • License applications in Sogn • Pumping power station at Ilvatn 113 GWh • Power plant at Øyane 98 GWh • Increasing production by 300 GWh • Mi
Slide 14: Robust energy contract portfolio
Robust energy contract portfolio Competitive long-term energy in Norway a challenge Contract portfolio 14 TWh equity/contract sourcing Norway 4 TWh equity production Qatar 3.5 TWh contract sourcing Australia 1.6 TWh contract sourcing Canada 1.0 TWh contract sourcing Slovakia 3.3 TWh Germany 2010 201
Slide 15: CO2 accounts for 30% of Norwegian power prices
CO2 accounts for 30% of Norwegian power prices EU has opened up for compensation for trade exposed industries EUR/MWh 60 Historical price Forward 25.05.2010 Forward 25.05.2010 without CO2 CO2 40 20 0 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 • Historical wholesale prices
Slide 16: Renewable energy and sustainable industry - mutually dependent enablers
Renewable energy and sustainable industry - mutually dependent enablers • Exporting when continental prices are high - importing when prices are low • Power-intensive industry enables successful growth in renewable energy • Exporting the flexibility - utilizing the energy for domestic industry produ
Slide 17: A solid position for sustainable growth
A solid position for sustainable growth - in Norway and abroad • Aluminium – a part of the solution • Healty long-term demand for aluminium • Hydro is well positioned for growth • Hydro further develops hydropower in Norway • A global CO2 regime will strengthen the competetiveness of Norwegian indus
Slide 18: www.hydro.com
www.hydro.com