Slide 1: Responsible conduct – an integrated part of business
Responsible conduct – an integrated part of business André Fey, head of HSE and CSR Kirsten M. Hovi, head of Viability Reporting Pål Kildemo, IR officer
Slide 2: Agenda
Agenda 1. Company overview Pål Kildemo and Kirsten M. Hovi 2. Aluminium – part of the solution André Fey 3. Reducing our energy consumption 4. Helping our customers reduce their energy consumption 5. Reforestation in Brazil – our licence to operate 6. And … 7. Summing up
Slide 3: Company overview
Company overview 1
Slide 4: Resourceful and integrated
Resourceful and integrated • Global provider of aluminium and aluminium Bauxite & products Alumina • Leading businesses along the value chain: energy, raw materials, primary metal products, Energy aluminium components and solutions, recycling • 22,000 employees in 40 countries. 40,000 customers in 1
Slide 5: Attractively positioned, global reach
Attractively positioned, global reach Norway Continental Europe • 900,000 tpy hydro-powered aluminium capacity • Leading upstream, midstream and Rolled • Technology center, R&D for next-generation smelter Products positions • Hydropower developments • Recycling network • Recycling/remelting North Am
Slide 6: Hydro – a first tier aluminium company
Hydro – a first tier aluminium company Production in 2012 in aluminium equivalents excluding China, thousand mt 9 000 Alumina Aluminium 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Alcoa UC Rusal Rio Tinto Norsk BHP Pacific Hindalco Glencore Vedanta Dubal Aluminium Century Alcan Hydro Billiton
Slide 7: We are strengthening our asset base
We are strengthening our asset base Curtailing 26% of Launching USD 300 Climb Climb 1010 From B to A primary metal capacity program 2009 2010 2011 2012 Announcing SAPA JV Acquiring bauxite and Starting up Qatalum alumina assets Announcing SAPA JV
Slide 8: Innovations in R&D and technology
Innovations in R&D and technology Bringing Hydro to technology and industry leadership Casting technology Alloy development HAL300 implementation Bauxite pipeline Electrolysis cells • GC (Gas Cushion) casting • High-speed alloys for building • Sunndal Su4 (2003) • World’s first • Årdal pilot technol
Slide 9: Ambitious improvement programs delivering results
Ambitious improvement programs delivering results Underlying EBITDA per mt in USD for respective primary metal divisions 1H 2011 2H 2011 1H 2012 2H 2012 750 750 750 750 550 550 550 550 350 350 350 350 150 150 150 150 -50 -50 -50 -50 Hydro Peers All figures based on public accounting data, not verifi
Slide 10: Governance structure following Norwegian corporate law
Governance structure following Norwegian corporate law General meeting Corporate Board of Corporate CEO of shareholders assembly directors management board Nomination Compensation Audit committee committee committee Internal audit (10)
Slide 11: Corporate governance
Corporate governance • All corporate directives are based on • Hydro follows the Norwegian code of The Hydro Way corporate governance of October 2012 − Hydro’s Code of Conduct − Two deviations related to section 6, − Valid to all employees and board members General meeting of shareholders: − Extensi
Slide 12: An early mover
An early mover Inclusion in DJSI Integrated Environmental since the beginning Global reporting reporting Report initiative - GRI Public target setting -89 -90 -91 -92 -93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 Carbon Disclosure Project ICMM’s 10 Principles GRI Mining
Slide 13: Aluminium – part of the solution
Aluminium – part of the solution 2
Slide 14: Aluminium – part of the solution
Aluminium – part of the solution We reduce energy consumption and emissions in our own processes We develop products and solutions that help our customers reduce energy consumption and emissions We recycle aluminium using only 5% of the initial energy consumption
Slide 15: Transforming the way we use energy
Transforming the way we use energy Energy efficient, Lighter Zero emission/ Enhance solar Packaging that Recycling and low-emission vehicles Energy surplus energy growth reduces food reusing electrolysis buildings waste aluminium Reduce energy Reduce fossil Reduce energy Reduce Reduce GHG Reduce was
Slide 16: The world demands more and more aluminium
The world demands more and more aluminium Half of Hydro’s production contributes to net GHG reductions Norwegian aluminium in the forefront Ton CO2 equivalents per ton aluminium Kasakhstan China Australia Russia USA EU27 Canada Norway Iceland Source: Institut für angewendte Ökologie (Öko-institut e.
Slide 17: HSE, CSR and compliance are key components in a performance culture
HSE, CSR and compliance are key components in a performance culture TRI rate (1 million hours worked) 10,3 2012 performance HSE 7,0 3.4 6,0 5,4 Performance 4,0 4,1 3,9 3,8 3,7 CSR 3,4 2,9 Compliance 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 People (17)
Slide 18: Reducing our energy consumption
Reducing our energy consumption 3
Slide 19: Significant improvements in Hydro's emissions
Significant improvements in Hydro’s emissions Lower GHG emissions Lower energy consumption Kg CO2e / kg aluminium KWh / kg aluminium 16 7 15 6 -75% 14 5 13 4 3 EU benchmark 12 2013 2 11 1 10 0 9 1990 1995 2000 2005 2012 2012 1993 1998 Sundal 2012 2012 2016 HAL HAL4e 2003 HAL4e HAL4e Ultra Specific e
Slide 20: Helping the customers reduce their energy consumption
Helping the customers reduce their energy consumption 3
Slide 21: Illustrasjon: SNØHETTA / MIR
Illustrasjon: SNØHETTA / MIR
Slide 22: Buildings account for 40% of the world's energy consumption
40% Buildings account for 40 % of the world’s energy consumption
Slide 23: EU: All new buildings shall be near energy-neutral in 2020
EU: All new buildings shall be near energy-neutral in 2020 A great opportunity for companies developing solutions
Slide 24: The Powerhouse founders
The Powerhouse founders: ZERO, environmental organization Skanska, developers Entra, property developers Snøhetta, architects Hydro, aluminium company
Slide 25: Powerhouse is a collaboration on energy-positive buildings
Powerhouse is a collaboration on energy-positive buildings We want to change how we cooperate in the building industry All key competence in a project should be available from the beginning
Slide 26: An energy-positive building definition
An energy-positive building is a building which during its operational phase generates more renewable energy than what was used for the production of building materials, its construction, operation and disposal
Slide 27: Energy self-sufficient
Energy self-sufficient To be completed February 2014 Two office buildings of approx 5200 m2 Before the renovation started the buildings consumed approx 250 kWh per m2 annually Energy ground-wells provide natural heat and cooling Efficient heat recovery reduces energy demand Good insulation 230 000 k
Slide 28: Norway's largest solar cell plant
Norway’s largest solar cell plant, to produce 230 000 kWh annualy
Slide 29: The Powerhouse alliance is planning the northernmost energy positive building
The Powerhouse alliance is planning for the world's northernmost energy positive building in Trondheim, Norway The Powerhouse alliance is currently rehabilitating an ordinary office building to an energy positive building outside Oslo – maybe the first of its kind
Slide 30: Reforestation in Brazil – our licence to operate
Reforestation in Brazil – our licence to operate 4
Slide 31: Reforestation is key to long term viability
Reforestation is key to long term viability
Slide 32: Closing the reforestation gap
Closing the reforestation gap Reforestation gap to be closed by 2020 3000 2500 Reforestation gap 2000 Area cleared for future 1500 mining processes Infrastructure 1000 Reforestation 500 0 2006 2007 2008 2009 2010 2011 2012
Slide 33: We use best available technology
We use best available technology • Reforestation picture Paragominas • Preserving natural biodiversity • Exchanging best practice − Juruti, MRN and Paragominas on the nucleation method − University of Oslo to create a research pro- gram connected to our mining operations − Supporting Green Municipal
Slide 34: Leaving something behind – Investing in education
Leaving something behind Investing in education • Pictures from − Yrkesskolen i Paragominas − Caseca − Casa Familiar Rural − HIV-klinikken − Vannverket −…
Slide 35: And …
And … 5
Slide 36: Aiming to lift hydropower production to 10 TWh
Aiming to lift hydropower production to 10 TWh Power production capacity (TWh), per region and reversion year Telemark • Power producing assets and ongoing projects Normal − Maintain cost control in operations and projects production 3.0 0.5 − Holsbru and Vasstøl power plants into operation 9.5 2044
Slide 37: Recycling – a pure bonus
Recycling – a pure bonus Aluminium – the energy bank 5% of initial energy use to recycle 75% still in use
Slide 38: Summing up
• Summing up • Reducing our footprint • Helping to reduce the customer’s footprint • Giving used aluminium a new life
Slide 39: INFINITE
Z INFINITE ALUMINIUM Jf HYDRO