Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Presentation (August 2004)
25 slides from Norsk Hydro Asa's investor presentation, August 2004
Slide 1: Global extrusion activities
Hydro Aluminium Jean-Claude Raimondi Sector President, Extrusion Global extrusion activities
Slide 2: Extrusion and Automotive segment: EBITDA
Extrusion and Automotive segment: EBITDA EBIT and EBITDA 2002 – 2004 2003 NOK million Operating revenues 24 500 (NOK million) 1 600 CROGI % 7,9% 1 400 Gross investment * 18 700 1 200 (NOK million) 1 000 800 1252 675 600 1013 400 Depreciation and 200 393 amortization 180 0 71 EBIT - 200 2002 2003 1H
Slide 3: Who we are - Industry attributes and trends; How do we perform?
Who we are - Industry attributes and trends How do we perform? Why do we perform? The way forward 51145_4 08 2004 • 3 • H ydro Media
Slide 4: Who we are
Who we are Respect Foresight Courage Cooperation Determination 49027 • H 08 51145_4 ydro2004 M edia • 4 •• 03.2004 • *4 H ydro Media
Slide 5: General Extrusions and Building Systems 2003
General Extrusions and Building Systems 2003 Main products General extrusions and Building Systems Production 464 000 tonnes - Extrucion Europe 267KT - Extrucion North America 103KT - Extrucion South America 20KT - Building Systems 74KT Employees 10 000 Extrusion North America Extrusion Europe, Sout
Slide 6: Product portfolio and main markets – 2003
Global extrusion activities Product portfolio and main markets – 2003 Shipments : 464 000 tonnes Markets (% of revenue) South Building America Other North Systems 3% 2% America 16% 18% Europe General 77% extrusions 84% Revenues : NOK 15 015 million General Building extrusions Systems 69% 31% 51145_4
Slide 7: We are leading in Europe and second globally
We are leading in Europe and second globally 1 000 tonnes 800 700 Other Asia 600 Latin America 500 North America Europe 400 300 200 100 0 Alcoa Hydro Alcan Extrusion shipments including automotive 51145_4 08 2004 • 7 • H ydro Media
Slide 8: Our general extrusions business philosophy – service value proposition
Our general extrusions business philosophy – service value proposition Painting Safety Anodising Thermal break Product development Our customers Extrusion Quality control Tehnical support Surface coating Respect of environment ‘One stop shop’ Logistics Machines 51145_4 08 2004 • 8 • H ydro Media
Slide 9: Our Building Systems business philosophy – product and solution value proposition
Our Building Systems business philosophy – product and solution value proposition Accesories & Fittings Extrusions Machines Methods Tests Technical & Commercial Hydro Documentation Building Systems Project Support Training Guaranteed performance and Software for Planning and satisfaction Calculation
Slide 10: Average 2002-2008 GDP growth per region
Average 2002-2008 GDP growth per region Russia 4.9 Canada 2.9 Eastern US 3.1 Western Europe 4.6 Europe 1.7 Japan 1.4 China 8.2 Me xico 2.7 South Korea 4.8 India 7.0 Middle East and North Africa 3.7 Taiwan 4.5 Latin ASEAN 4.5 America 2.5 Australia 3.4 Source: Economist Intelligence Unit 51145_4 08 20
Slide 11: Industry attributes and trends
Industry attributes and trends Industry trends Business profile z Growth: z Unsophisticated Slow in Western Europe, faster z Proven, available, low in Eastern Europe and Latin America, cost technology very fast in China z Low barriers to entry z Small customers z Globalization: z Mostly local busine
Slide 12: Who we are - Industry attributes and trends; How do we perform?
Who we are - Industry attributes and trends How do we perform? Why do we perform? The way forward 51145_4 08 2004 • 12 • H ydro M edia
Slide 13: We have been able to grow even in soft business conditions
We have been able to grow even in soft business conditions 1 000 tonnes 600 500 North America 400 Building Systems General extrusion 300 200 100 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 1H2004 51145_4 08 2004 • 13 • H ydro M edia
Slide 14: Higher return than competition
Higher return than competition SAPA - better margins Hydro Aluminium Extrusion - higher profit returns - better efficiency - higher capital turnover % EBITDA / Sales % Capital Turnover* 14 250 12 200 10 8 150 6 100 4 50 2 0 0 1998 1999 2000 2001 2002 2003 2004 2004 1998 1999 2000 2001 2002 2003 2004
Slide 15: Who we are - Industry attributes and trends; How do we perform?
Who we are - Industry attributes and trends How do we perform? Why do we perform? The way forward 51145_4 08 2004 • 15 • H ydro M edia
Slide 16: Why do we perform?
Why do we perform? Profitable growth Customer Innovation Manufacturing Performance focus Excellence culture 51145_4 08 2004 • 16 • H ydro M edia
Slide 17: Customer focus
Customer focus Extrusion customers Building system customers z 15 000 active customers z 25 000 active customers z Average order size: 700 kg z Small company, 5 to 10 employees z 4 000 orders per working day z Average order size: 40 kg z 10 000 orders per working day We produce to order with competi
Slide 18: Innovation
Innovation 100 new products per day The Photo Receptor Major Challenge z Develop a process where machinability and cleanliness are optimized 51145_4 08 2004 • 18 • H ydro M edia
Slide 19: Continuous improvements
Continuous improvements HAEX press productivity HALNA press productivity kg/hr lb/hr 1700 3000 1650 2500 1600 2000 1550 1500 AEC level 2003** 1500 1000 1450 500 1400 0 2001 2002 2003 2004* 2002 2003 2004* * 2004 year to July **Sources: Aluminum extruders council; Hydro Aluminium 51145_4 08 2004 • 19
Slide 20: Continuous improvements
Continuous improvements HAEX on-time delivery HALNA on-time delivery - extrusion % % 95 95 90 90 85 85 80 80 75 75 Per day Per week 70 Per week 70 2000 2001 2002 2003 2004* 2002 2003 2004* *2004 year to July 51145_4 08 2004 • 20 • H ydro M edia
Slide 21: Continuous improvements
Continuous improvements HAEX safety – TRI-rate** HALNA safety – TRI-rate** 25 25 49 20 20 15 15 10 10 18 5 12 11 5 7.6 5.2 8 8 0 0 2001 2002 2003 YTD 2004* 2001 2002 2003 YTD 2004* * 2004 year to July ** TRI – Total recordable injuries per million worked hours 51145_4 08 2004 • 21 • H ydro M edia
Slide 22: Performance culture
Performance culture z Entrepreneurship z Fast decisions, decentralisation z Learning from each other, benchmarking 51145_4 08 2004 • 22 • H ydro M edia
Slide 23: Who we are - Industry attributes and trends; How do we perform?
Who we are - Industry attributes and trends How do we perform? Why do we perform? The way forward 51145_4 08 2004 • 23 • H ydro M edia
Slide 24: Priorities going forward
Priorities going forward Operations: z Further improve lead time and reliability in deliveries to customers customers z Continue on performance improvements and reduce further performance gap between US & Europe z Grow added value operations Direction: z Consolidate leadership in Europe z Strengthen
Slide 25: Forward-looking statements/ use of non-GAAP financial measures
25 Forward-looking statements/ use of non-GAAP financial measures In order to utilize the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, Hydro is providing the following cautionary statement: This presentation contains certain forward-looking statemen