Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Q2 2025 Earnings Presentation
184 slides from Norsk Hydro Asa's earnings presentation, Jul 22, 2025
Slide 1: Second quarter 2025 Investor presentation
Second quarter 2025 Investor presentation July 22, 2025
Slide 2: Table of contents / Cautionary note
Table of contents Cautionary noteresults 2025 Second quarter 3 Cautionary note Certain statements included in this announcement contain forward-looking information, Certain statements included in this announcement contain forward-looking information, Additional including, slides without 23 limitatio
Slide 3: Performance and capital discipline supporting strong results
Performance and capital discipline supporting strong results Eivind Kallevik, President & CEO July 22, 2025
Slide 4: Safety our key priority
Safety our key priority TRI1) per million hours worked HRI2) per million hours worked 12 months rolling average 12 months rolling average 5 3 4 2 3 2.57 average since Q2’20 1.08 average since Q2’20 2 1.96 per 1 end-Q2’253) 1 0.61 per end-Q2’253) 0 0 Q1’20 Q1’21 Q1’22 Q1’23 Q1’24 Q1’25 Q1’20 Q1’21 Q1
Slide 5: Q2 2025 highlights
Q2 2025 highlights Adjusted EBITDA NOK 7.8 billion Free cash flow NOK 5 billion, adjusted RoaCE1) 12% Strong results amid uncertain markets Reducing 2025 capital expenditure target by NOK 1.5 billion, to NOK 13.5 billion Introducing external hiring freeze and structured review of white collar workfo
Slide 6: Increased uncertainty and unpredictability
Increased uncertainty and unpredictability Geopolitics and conflicts U.S. tariffs and trade war Russia/Ukraine Israel/Gaza Israel/U.S./Iran 6
Slide 7: Addressing market uncertainty with decisive measures
Addressing market uncertainty with decisive measures Reducing CAPEX guidance for 2025 External hiring freeze and structured review • Current market and regulatory uncertainty challenges • Current market and regulatory uncertainty make it demand forecasting, capacity planning, and long-term even more
Slide 8: Robust sourcing portfolio amid challenging wind and solar markets
Robust sourcing portfolio amid Norway: Power sourcing for Hydro smelters1) Consumption, TWh challenging wind and solar markets 18 Total consumption 16 Gap to fill 14 12 10 External PPAs Termination of Nordic Impairments from updating 8 6 power purchase agreement return requirements in Brazil 4 Curre
Slide 9: Strong improvement drive
Strong improvement drive Hydro improvement program ahead of target for 2025 NOK billion, 2024 baseline • Improvements achieved through Commercial commercial activities and growth Expanding greener sales and customer outreach excellence program projects • Key drivers include new aluminium • About 50
Slide 10: Financial update
Financial update Trond Olaf Christophersen Executive Vice President & CFO
Slide 11: Easing global alumina balance, Guinea bauxite position
Easing global alumina balance, Guinea continues to strengthen global bauxite position Easing global alumina balance due to Pax prices stabilized in Q2 2025 after China increasingly dependent on capacity expansion in 2025 year long run Guinean bauxite imports Estimated global balance Platts alumina i
Slide 12: Tariffs and volatility reshaping the global aluminium markets
Tariffs and volatility reshaping the global aluminium markets Estimated global balance LME aluminium price Regional premiums Primary production, million tonnes1) (‘000) NOK per tonne USD per tonne (`000) NOK per tonne 2.2 40,000 4,000 1 400 1.9 3,800 1 300 3,600 1 200 35,000 3,400 1 100 3,200 1 000
Slide 13: Extrusion sales volumes bottoming out
Extrusion sales volumes bottoming out B&C and industrial segments improving from low levels, headwinds in automotive and transport moderating External market forecasts1) Extrusion sales volumes Year over Year Q2 2025 vs Q2 2024 Extrusion market growth per quarter and annually Hydro Extrusions segmen
Slide 14: Adj. EBITDA down on lower upstream prices
Adj. EBITDA down on lower upstream prices, partly offset by lower raw material cost and higher upstream volumes Q2 2025 vs Q1 2025 NOK billion 9.5 1.4 7.8 3.7 0.0 0.3 0.0 1.7 1.0 1.0 0.9 0.2 0.1 CO2 compensation Other Eliminations Adj. EBITDA Realized aluminium Upstream volumes Raw material cost Ext
Slide 15: Key financials
Key financials NOK million Q2 2025 Q2 2024 Q1 2025 Year 2024 Revenue 53 116 50 944 57 094 203 636 Reported EBITDA 6 889 6 044 10 815 26 543 Adjusting items to EBITDA 902 (205) (1 299) (225) Adjusted EBITDA 7 790 5 839 9 516 26 318 Reported EBIT 4 375 3 557 8 016 16 487 Adjusted EBIT 5 302 3 353 6 99
Slide 16: Hydro Bauxite & Alumina
Hydro Bauxite & Alumina Implied alumina cost and margin USD/mt Lower results, mainly driven by lower alumina price and higher costs, partly offset by currency effects 587 397 400 181 54 55 Key figures Q2 2025 Q2 2024 Q1 2025 342 345 406 Alumina production, kmt 1 516 1 492 1 465 Total alumina sales,
Slide 17: Hydro Aluminium Metal
Hydro Aluminium Metal All-in implied primary cost and margin USD/mt1,4) 525 450 475 Results down driven by higher alumina prices and negative currency effects, partly offset by higher all-in metal prices. 2 275 9) 9) 2 400 2 450 2 250 9) 9) 2 500 2 3009) 2 000 1 850 2 050 Key figures Q2 2025 Q2 2024
Slide 18: Metal Markets
Metal Markets Results down due to lower results from sourcing and trading activities, partly offset by increased results from recyclers Key figures Q2 2025 Q2 2024 Q1 2025 Recycling production, kmt 209 202 192 Metal products sales, kmt 1) 659 682 612 Adjusted EBITDA Recycling (NOK million) 136 41 63
Slide 19: Hydro Extrusions
Update on Friday, 4th Hydro Extrusions Results down on lower margins, partly offset by higher sales volumes and strong cost measures Key figures Q2 2025 Q2 2024 Q1 2025 External sales volumes, kmt 264 262 255 Adjusted EBITDA, NOK million 1 260 1 377 1 174 Adjusted EBIT, NOK million 489 609 350 Adjus
Slide 20: Hydro Energy
Hydro Energy Results up on higher production volumes and higher price area gains Key figures Q2 2025 Q2 2024 Q1 2025 Power production, GWh 2136 1929 2 743 Net spot sales, GWh 47 (146) 641 Southwest Norway spot price (NO2), NOK/MWh 682 519 776 Adjusted EBITDA, NOK million 1069 611 1 180 Adjusted EBIT
Slide 21: Net debt increase of NOK 0.4 billion during Q2
Net debt increase of NOK 0.4 billion during Q2 Increase in net debt due to shareholder distributions which offsets a positive free cash flow NOK billion Free cash flow: Excludes hedging collateral (LT/ST restricted cash) and net purchases of money market funds Collateral: Includes collateral for sho
Slide 22: Our priorities
Our priorities 1. 2. 3. 4. 5. Health and safety Maintain Deliver on Execute Seize first robustness while Recycling, Extrusions, on decarbonization opportunities maneuvering and renewable growth and technology in greener aluminium uncertain markets ambitions road map at premium pricing Accelerating g
Slide 23: Additional slides
») Hydro Additional slides
Slide 24: Position, Strategy and Ambitions
Position, Strategy and Ambitions
Slide 25: Our value chain is a unique opportunity
Our value chain is a unique opportunity Traceability in own value chain ensures certified, traceable and low-carbon aluminium Certified, Responsible Reduced Protect Social Common Circular transparent mining emissions biodiversity impact standards solutions value chain Controlling the upstream gives
Slide 26: Strong global presence
Strong global presence The complete aluminium and renewable energy company Key features Americas Europe Aluminium Metal Energy 5 countries 26 countries • Market leader in low-carbon aluminium Bauxite & Alumina with clear roadmap to net-zero Extrusions • High-quality bauxite and alumina #1 position 9
Slide 27: Hydro has a unique value proposition in aluminium
Hydro has a unique value Providing products with low emissions proposition in aluminium Primary aluminium produced on renewable energy Recycled aluminium from Hydro One stop shop for high-quality, low-carbon aluminium, primary Less than ~25% 13 % for 75R, and and recycled, and transparency in the va
Slide 28: Long-term renewable power contracts ensure robustness
Long-term renewable power Power sourcing for smelters in Europe Power sourcing for Hydro smelters in Norway1) TWh Total consumption contracts ensure robustness 18 16 14 12 Smelter business operating cost 10 curve 2024 8 USD/tonne 6 4 2 800 2 2 600 0 2 400 2024 2026 2028 2030 2032 2034 2036 2038 2040
Slide 29: Aluminium is a key enabler for the entire green transition
Aluminium is a key enabler for the entire green transition 2030 energy transition will require 15-22 million tonnes aluminium, increasing to 25-42 million tonnes by 2050 Additional aluminium demand from green transition enablers1) E-mobility transition Circular building & Heating & cooling Million t
Slide 30: Shifting gear to capture opportunities in a new reality
Shifting gear to capture opportunities in a new reality Key steps for Hydro to lead the green aluminium transition towards 2030 1 2 3 4 Step up growth investments Step up ambitions within Execute on ambitious Shape the market for in Recycling and Extrusions renewable power decarbonization and greene
Slide 31: Positioning for growth in Extrusions
VELUX Group Positioning for growth in Extrusions Hydro Extrusions EBITDA ambitions • Stepping up improvement efforts through NOK billion automation, operational improvements, 10-12 procurement, recycling and commercial CRU extrusion Market growth vs demand forecast 2025: ~30% NA, YoY: 3% NA, 1% EU ~
Slide 32: Executing on Recycling growth ambitions
Executing on Recycling growth ambitions Bridges to be verified PCS capacity Recycling EBITDA potential • Improving hot metal cost by USD 20-30 per tonne1) Tonnes (‘000) NOK billion • Delivering Alumetal synergies of EUR 10-15 PCS consumption 2030 PCS Current portfolio 2030 EBITDA million2) Installed
Slide 33: Executing on renewable power generation ambitions
Executing on renewable power generation ambitions Hydro Energy Hydro Rein Secure access to renewable power through hydropower, Pursue profitable projects through JV owned by Hydro and MAM1) solar and wind • Upgrading and expanding hydropower assets • 1.7 GW of renewable projects in operations by 202
Slide 34: Execute on ambitious decarbonization and technology road map
Execute on ambitious decarbonization and technology road map, step up to contribute to nature positive and a just transition Climate Nature Social Forcefully deliver on net-zero roadmap, Contribute to a nature positive future through Improve lives and livelihoods wherever Hydro decarbonizing value c
Slide 35: Partnerships are advancing to the next stage
Partnerships are advancing to the next stage Some of the world's most ambitious companies rely on Hydro to future-proof their businesses Hydro + VELUX Hydro + Mercedes-Benz Hydro + Porsche Hydro + Brompton Hydro + Volvo Group The VELUX Group partnership Mercedes-Benz expands the The industry’s first
Slide 36: Contribution to greener earnings uplift potential
Contribution to greener earnings uplift Greener product capability from total aluminium portfolio1) potential of NOK 2 billion1) by 2030 Million tonnes capacity potential progressing Executing in 2024 Building capabilities for future contributions Recycled aluminium (high potential) Hydro CIRCAL Sal
Slide 37: Launching new improvement program
Launching new improvement program Drive profitability towards 2030 Strong track record of delivering improvements NEW: 2030 improvement program NOK billion NOK billion, 2024 baseline 6.5 17.6 Commercial Some key changes excellence program Today’s program Procurement improvement program More focused
Slide 38: Business Areas at the forefront
Business Areas at the forefront Bauxite &Alumina Energy Aluminium Metal Extrusions • Execute on 2030 decarbonization targets • Pursue profitable captive hydropower • Step up growth and be an industry leader • Step up growth investments aiming to and position as sustainability leader growth options w
Slide 39: 2024 | Delivering on our key strategic priorities
2024 | Delivering on our Improvement program 2024 Commercial initiatives 2024 RoaCE over the cycle key strategic priorities NOK 9.9 billion vs 2024 target NOK 3.0 billion vs 2025 target 11.8 percent Last 5 year avg. NOK 9.5 billion NOK 3.9 billion per Q3 2024 Delivering on improvement program and co
Slide 40: Market and trends
») Hydro Market and trends
Slide 41: Revenue drivers through Q2 2025
Revenue drivers through Q2 2025 LME aluminium price Regional standard ingot premiums Platts alumina index (PAX) NOK/mt USD/mt USD/mt USD/mt % of LME 1 400 35,000 4,000 900 35% 1 300 3,800 1 200 800 3,600 1 100 30% 30,000 3,400 1 000 700 3,200 3,000 900 600 25,000 2,800 800 25% 2,600 700 500 2,400 60
Slide 42: Market raw material costs in Q2 2025
0.0 0.5 1.0 2.0 2.5 0.0 0.2 0.4 0.6 0.8 1.2 1.4 1.6 1.8 1.5 1.0 Q2-21 Q2-21 Q3-21 Q3-21 Q4-21 Q4-21 Q1-22 Q1-22 Q2-22 Q2-22 Q3-22 Q3-22 Q4-22 Q4-22 Q1-23 Q1-23 Q2-23 Q2-23 Q3-23 Q3-23 Q4-23 Q4-23 Q1-24 Q1-24 Q2-24 Q2-24 Caustic soda (indexed) Q3-24 Q3-24 Source: Thomson Reuters, PACE, IHS Markit, Pl
Slide 43: Green transition sectors balance fall in Chinese B&C demand
Green transition sectors balance fall in Chinese B&C demand Electrical and transport sector nearly as large as B&C Chinese semis demand development 2021-2025 (‘000t) Share of total semis demand in China (%) 53 486 2 817 Others 42% 41% 2 213 Electrical 12% 18% Transport 18% 46 104 4 293 19% 1 941 B&C
Slide 44: Alumina refineries profitable in 2024, market tightness to persist
Alumina refineries profitable in 2024, market tightness to persist into 2025 Alumina business operating cost Q4 2024 Alumina raw material prices World alumina balance USD per tonne USD per tonne Tonnes (‘000) 600 2013-2019 average 1,600 -35% 2021-2023 average 1,400 550 2024 1,200 +68% 500 1,000 PAX
Slide 45: Aluminium - A critical raw material for the green transition
Aluminium - A critical raw material for the green transition Energy transition related Challenging end markets impacting CBAM challenges and solutions demand key driver of growth short-term, but long-term remains to secure level playing field Global aluminium demand outlook - BNEF European extrusion
Slide 46: It's time to accelerate
It’s time to accelerate The world needs more low-carbon aluminium 2030 material decarbonization targets There is limited aluminium below Hydro’s low-carbon product suite growing in number across industries 4 tonne CO2e per tonne Al available as the preferred solution Annual By 2030 primary productio
Slide 47: Long-term outlook remains strong
Long-term outlook remains strong Solid growth in demand for low-carbon recycled and primary aluminium expected towards 2030 and beyond Global aluminium consumption Greener demand growth outpacing rest of the market In million tonnes CAGR 2024-30 ~3% 140 CAGR CAGR Total EU / North 2011-24 2024-30 Ame
Slide 48: Largely balanced markets towards 2030
Largely balanced markets towards 2030 Healthy demand outlook driven by transport and electrical Global semis demand 2024-2030 121 Largely balanced market with recycling playing important role1) In million tonnes In million tonnes 123 4 2 7 Transport 3 4 0 1 0 1 Construction 6 +20 2 Packaging 2 Foil
Slide 49: Transport and construction key semis demand segments
Transport and construction key semis demand segments Source: CRU, Hydro Analysis Global semis demand 2024: ~101 million tonnes Per segment Per product form Per region 6% 24% 2% 1% 2% 10% 13% 26% 10% 6% 1% 1% 13% 51% 16% 34% 30% 20% 19% 8% Extrusions 8% per segment Transport Construction 15% China Pa
Slide 50: Global renewable investments have surged
Global renewable investments have Solar and wind power development in China 5,000 GW surged, driven by China, U.S. and EU 4,000 3,000 2,000 1,000 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 IEA: The world invests almost twice as much in Solar and wind power development in the
Slide 51: Low-carbon aluminium expected to be in limited supply
Low-carbon aluminium expected to be in limited supply – Hydro well positioned Total supply of aluminium with mine to metal emissions below 4 kg CO2e / kg Al is ~8 million tonnes Cradle-to-gate emissions curve 2023 (tonnes CO2e per tonne Al) 24 Other Scope 3 emissions 22 Alumina emissions Scope 1 + 2
Slide 52: EU agenda supporting Hydro's strategy
EU agenda supporting Hydro’s strategy Regulatory framework supporting strategic direction Critical Raw Material Act • Aluminium defined as a critical and strategic raw material • Important recognition of aluminium’s role for EU strategic autonomy and the green transition Sustainability legislation •
Slide 53: Securing a level playing field
Securing a level playing field Three key challenges and solutions for CBAM to 2040 1. Scrap loophole must be closed • Imports based on remelted industrial scrap are assigned zero emissions, creating a giant loophole • CBAM must recognize the emissions from imported, re-melted industrial scrap 2. Pro
Slide 54: Macro trends and favorable properties drive aluminium demand
Macro trends and favorable properties drive aluminium demand Hydro’s strategic direction aims to realize full potential of Importance of aluminium within key green aluminium’s strong qualities and versatility transition technologies PV Electric vehicles Wind power Aluminium Steel Copper Composites P
Slide 55: Sustainable Operations
») Hydro Sustainable Operations
Slide 56: Execute on ambitious decarbonization and technology road map
Execute on ambitious decarbonization and technology road map, step up to contribute to nature positive and a just transition Climate Nature Social Forcefully deliver on net-zero roadmap, Contribute to a nature positive future through Improve lives and livelihoods wherever we decarbonizing our value
Slide 57: Decarbonizing across the value chain
Decarbonizing across the value chain Forcefully addressing all sources of GHG emissions in the value chain 2018 2025 2030 2050 (or earlier) 10% carbon emission 30% carbon emission Zero carbon reduction reduction emissions Initatives to reach zero Brazil energy Carbon capture Casthouse Energy efficie
Slide 58: Progressing on the roadmap towards net-zero
Progressing on the roadmap towards net-zero GHG emissions – ownership equity1) Million tonnes CO2e (% of 2018 baseline emissions2)) 10 Achieved reductions Reduction targets since 2018 10% by 2025 30% by 2030 100% by 2050 Status • Fuel switch from heavy fuel oil to natural gas at Alunorte (~434,000 t
Slide 59: Decarbonization ambition: Three paths to net-zero
Decarbonization ambition: Three paths to net-zero Clear technology roadmap to deliver industrial volumes of zero carbon aluminium by 2030 Phase out of fossil fuels Removal of process emissions Recycling Technologies for more PCS use • Alunorte fuel switch • Carbon capture and storage (CCS) • Increas
Slide 60: Contributing to the global Nature Positive goal
Contributing to the global Nature Positive goal Ambition for No Net Loss (NNL) Partnering to contribute Value chain of biodiversity to nature positive outcomes emissions Paragominas bauxite mine: Teaming up with Mercedes-Benz: Direct emissions • Developing KPIs for NNL target, review, and • Mercede
Slide 61: Improving lives and livelihoods, supporting a Just Transition
Improving lives and livelihoods wherever we operate, supporting a Just Transition Respect and promote human rights Fundament Strengthening of the human rights’ due diligence processes for own operations, value chain and affected communities Areas of impact Support positive Invest in Responsible loca
Slide 62: Safe and responsible operations is a top priority
Safe and responsible operations Continuing efforts within ESG performance is a top priority • Transparent and consistent reporting approach for more than three decades Leadership in health and safety, social responsibility, • Sustainability is fully integrated in Hydro’s strategy and compliance as a
Slide 63: Many vying to take sustainable aluminium leading positions
Many vying to take sustainable aluminium leading positions Only Hydro with integrated advantage Customer Share of Global Primary and recycling Decarbonization co-innovation “One roof” mine to renewables presence capabilites technology roadmap on end products component traceability Peer 1 Peer 2 Clos
Slide 64: Sustainable financing initiatives increase access to capital
Sustainable financing initiatives increase access to capital and provide cost of capital advantage Linked to Hydro sustainability ambitions Green and Sustainability-Linked Financing Framework • Framework facilitates issuance of green and sustainability linked bonds 10% • Linked to Hydro’s sustainabi
Slide 65: Greener investments drive value creation
Greener investments drive value creation Hydro’s largest prioritized investment areas combine sustainability and profitability Recycling (PCS) B&A (El-Boilers) Electrolysis abatement Other Greener investments / Several large recycling Substantial decarbonization Technology roadmaps in • Energy savin
Slide 66: Financial Framework
») Hydro Financial Framework
Slide 67: Key performance metrics Q2 2025
Key performance metrics Q2 2025 Adjusted EBITDA Free cash flow1) Adjusted RoaCE2) NOK million NOK billion 12-month rolling % 9,516 5,0 12.0% 10.7% 7,790 5,839 2,8 4.4% 1,3 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 Upstream costs3,4) Extrusion volumes Improvement program status USD per tonne Thous
Slide 68: Resilient financial framework driving LT shareholder value
Resilient financial framework driving LT shareholder value Solid framework for lifting returns and cash flow, and managing uncertainty Baa2 ibili ty Rob ust NOK lf ex 39.1 (Moody’s) Strong balance sheet and investment sh Total shareholder distribution since 2020 d ofitable grow wtthh aand ar grade c
Slide 69: Capital allocation reflecting strategic modes
Capital allocation reflecting strategic modes Strategic modes reflect global megatrends and high-return opportunities Safe, compliant and efficient operations The Hydro Way Businesses Bauxite & Alumina Aluminium Metal Recycling Energy Extrusions Strategic mode Sustain and improve Sustain and improve
Slide 70: Capital discipline and focused growth
Capital discipline and focused growth Growth & Return seeking investments 3) Sustaining capex has peaked and will start to normalize Recycling • Increase proportion of post consumer scrap (PCS), lowering metal cost • Improved economies of scale in brownfield expansions • Sorting technology and equip
Slide 71: Net Operating Capital development
Net Operating Capital (NOC) development impacted by high upstream prices and weak downstream markets Markets impacting NOC and NOC performance Net Operating Capital1) Continued focus on Net Operating Capital across the group. NOK 2,0 billion, days Segments experiences very different market condition
Slide 72: New improvement program
New improvement program Drive profitability towards 2030 Hydro has a strong track record of delivering improvements 2009-2015 2016-2018 2019-2024 2025-2030 2030 improvement program Key changes More focused scope – Targeting the key value buckets, will no longer track the tail of smaller NOK 4.5 bill
Slide 73: Redesigned 2030 improvement programs
Redesigned 2030 improvement programs Three main programs to drive improvements - measurement methodology tailored to each program Operational Procurement Commercial improvement program improvement program excellence program • Improvement in operational metrics through • Improvements through procurem
Slide 74: New operational improvement program
New operational improvement program Hydro ambition of NOK ~2.5 billion Mitigate structural cost pressure, Improve operational Reduce hot metal cost Improve efficiency of drive efficiency for refinery & mining efficiency in recycling support functions • • • Main drivers Increased mine plant and refin
Slide 75: Procurement program to deliver NOK~1 billion by 2030
Procurement program to deliver NOK~1 billion by 2030 Measures procurement efforts to fight inflation, Bauxite & Alumina procurement reduce the spend baseline and create value Potential enabled by implementation of new digital procurement solutions. Main projects addressing logistics and raw material
Slide 76: Commercial excellence program
Commercial excellence program NOK ~3 billion commercial potential across Market Increase market share in key segments through portfolio, including remaining potential from share solution offerings and high service level the greener uplift ambition Commercial Increasing commercial impact from alumina
Slide 77: Aiming for competitive returns to shareholders
Aiming for competitive Solid dividend track record returns to shareholders Dividend, 1.25 1.25 1.25 6.85 5.65 2.5 2.25 NOK/share • Aiming for competitive shareholder returns compared to Dividend yield1) 3.2% 3.8% 3.1% 9.9% 7.7% 3.7% 3.6% alternative investments in comparable companies Share of Adj.
Slide 78: Hedging policy
Hedging policy • Overall risk policy • Remain exposed to the inherent cash flow volatility related to Hydro’s business • Fluctuating with the market - volatility mitigated by strong balance sheet • Diversified business • Vertical integrated value chain reducing risk and volatility • Strengthening re
Slide 79: Hedging status
Hedging status Aluminium hedges in place for 2025-2027 Strategic hedging status1) NOK Billions • 2025: 225 kt remaining at a price of ~2500 USD/t • 2026: 460 kt hedged at a price of ~2750 USD/t • 2027: 100 kt hedged at a price of ~2600 USD/t Settlements • Pricing mainly in NOK. Net USD exposure hedg
Slide 80: Significant exposure to commodity and currency fluctuations
Significant exposure to commodity and currency fluctuations Aluminium price sensitivity +10 USD/mt1) Currency sensitivities NOK million USD BRL EUR 160 Sustainable effect (NOK million) +1.00 NOK/USD +0.10 NOK/BRL +1.00 NOK/EUR 110 AEBITDA 4,730 (510) (130) AEBITDA Adjusted net income One-off reevalu
Slide 81: 2025: Capitalizing on improvements
2025: Capitalizing on improvements Market volatility persists into 2025 AEBITDA sensitivity 2025 per November 2024 Market scenarios AEBITDA 2025 NOK billion NOK billion ~34 25-26 ~27 22.4 0.0-1.0 0.3-0.5 0.6 1.6 ~20 AEBITDA Fuel switch Extrusion and Ramp-up of curtailed Improvement AEBITDA 2025 AEBI
Slide 82: Hydro profitability growth roadmap
Hydro profitability growth roadmap Main drivers: Improvement efforts, growth and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main upside drivers Profitability target of >10% NOK billion sustaining CAPEX1) 2030 • Sustainability differentiation and Commerc
Slide 83: Resilience and optionality through full value chain presence
Resilience and optionality through full value chain presence Integration brings resilient financial results, broader access to attractive growth and superior customer offering Hydro quarterly AEBITDA per BA (indexed per BA – Q1 2018 = 100)1) Enabling financial resilience…… 700 Resilience in financia
Slide 84: Capital return dashboard 2024
Capital return dashboard 2024 Capital employed1) 8% Bauxite & Alumina Capital returns Balance sheet Free cash flow 27 % 21 22 % % Aluminium Metal adj. RoaCE adj. ND/EBITDA 2024 Metal Markets 25 % Extrusions 4) ~123 BNOK Energy 8.5% 2) 0.93) 2.8 BNOK 13 % 9% 37 % 36 % 12% last 5 years vs adj. ND/EBIT
Slide 85: Appendix: Business Areas
») Hydro Appendix: Business Areas
Slide 86: The aluminium value chain
The aluminium value chain World class assets, high end products and leading market positions Raw materials processing and energy Primary aluminium production, marketing and recycling Aluminium in products Bauxite & Alumina Energy Aluminium Metal Metal Markets Extrusions • High-quality Gibbsite bauxi
Slide 87: Bauxite & Alumina
Bauxite & Alumina
Slide 88: B&A is an important enabler for low-carbon aluminium
B&A is an important enabler for low-carbon aluminium Controlling the top of the We can produce among the lowest carbon Enabling greener premiums for our primary aluminium and value chain aluminium in the world extrusion products Bauxite More than 75% Hydro has the highest quality, lowest carbon and
Slide 89: Large and concentrated bauxite reserves
Large and concentrated bauxite reserves Guinea stands out as a long-term source Bauxite reserves billion mt Guinea China 0,7 7,4 Vietnam Jamaica 5,8 2.0 India Big-league (Top 4) 0,7 Indonesia Mid-league (each > 1 Bt) 1,0 Less significant bauxite resources Total bauxite resources Brazil 2.7 Australia
Slide 90: Bauxite and alumina cluster in Para, Brazil
Bauxite and alumina cluster in Para, Brazil Paragominas bauxite mine Alunorte alumina refinery Bauxite production, mt Alumina production, mt (100% ownership, nameplate capacity 9.9mt) • Long life resource (62% ownership, nameplate capacity 6.3mt) • World’s largest alumina refinery outside China • Ba
Slide 91: Bauxite operational mining costs in Paragominas
Bauxite operational mining costs in Paragominas Indicative Paragominas bauxite mining costs • Labor cost 15% • Influenced by Brazilian wage level 23% • Energy cost • Refers to power and fuel cost • Maintenance and consumables 26% 18% • Mainly influenced by Brazilian inflation 19% Labor Energy Suppor
Slide 92: Favorable integrated alumina cost position
Favorable integrated alumina cost position Indicative implied alumina cost composition • Implied alumina cost 2024 - USD 370 per mt1) • Alunorte, Paragominas and external alumina sourcing for resale 4% • Bauxite • Internal bauxite from Paragominas at cost, sourced bauxite from MRN 17% 34% • Energy •
Slide 93: Strong commercial organization maximizing the value of B&A assets
Strong commercial organization maximizing the value of B&A assets External alumina sourcing Long positions in alumina • Pricing should reflect alumina market fundamentals • 4.0-4.5 1) million tonnes of external alumina sourced • Selling 4.0 – 4.5 million tonnes per year of alumina annually externall
Slide 94: Significant position enhancement since last year
Significant position enhancement since last year Several initiatives executed to boost robustness and stability, enabling full market advantage Strong financial results Energy transition Tailing safety • USD 25 per tonne lower cost on track In 2024, Hydro will complete a 3rd from fuel switching, inc
Slide 95: Improvements and commercial initiatives at the core
Improvements and commercial initiatives at the core Hydro Bauxite & Alumina successfully improved its operations through the entire value chain in 2024 Paragominas Alunorte Commercial • Bauxite trucking to refinery: 17 • Fuel switching from heavy fuel oil to • By actively executing third party perce
Slide 96: Strengthening robustness
Strengthening robustness Competitive cost position Improvement initiatives 2030 improvement program – a solid starting point USD per tonne Alumina world ex China (CRU 2024) NOK billion, Bauxite silica control program targets vs 2024 1 000 baseline 90th percentile Hydro position Commercial 800 Hydro
Slide 97: Executing on greener alumina roadmap
Executing on greener alumina roadmap Alunorte will reduce emissions by 70 percent by 2030 Decarbonization roadmap for Bauxite & Alumina Tonnes CO2e per tonne Alumina Lowering the position on the emission curve from the first quartile to the first decile Alunorte is currently Two additional el-boiler
Slide 98: Sustainability is more than low-carbon
Sustainability is more than low-carbon Contributing to Nature Positive and supporting a Just Transition in Brazil Social: Nature: Effectively supporting Ensuring optimal footprint communities • Hydro is a world leader in: • In 2022, Hydro delivered three TerPaz • Reforestation through its deforestat
Slide 99: Bauxite & Alumina sensitivities
Bauxite & Alumina sensitivities Annual sensitivities on adjusted EBITDA Revenue impact • Realized alumina price lags PAX by one month +10 USD/mt1) +10 USD/mt1) +10 USD/mt1) +10 USD/mt1) +0.1 USD/MMBtu1) Cost impact NOK million Bauxite 550 • ~2.45 tonnes bauxite per tonne alumina • Pricing partly LME
Slide 100: Bauxite & Alumina profitability growth roadmap
Bauxite & Alumina profitability growth roadmap Main drivers: Fuel switch, commercial differentiation and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main upside drivers Profitability target of >10% NOK billion sustaining CAPEX1) 2030 • Positive market an
Slide 101: Capital return dashboard for Bauxite & Alumina
Capital return dashboard for Bauxite & Alumina Returns above the cost of capital in 2024 reflecting increased alumina prices Capital employed in B&A 21 % 12 % 21 % 10.8 BNOK 10-11% 6% 2% ~27 BNOK (31 Dec ‘24) -2 % 2020 2021 2022 2023 2024 Adjusted EBITDA FY 2024 Return requirement ~8% Last 5 years a
Slide 102: Energy
Energy
Slide 103: Pioneering the green aluminium transition, powered by renewable energy
Pioneering the green aluminium transition, powered by renewable energy Hydro’s energy consumption1) 17.6 Hydropower Europe Onshore Wind2) 1.8 Electricity 17.6 TWh Natural gas 1.8 TWh Solar PV2) North America Electricity 2.2 TWh 2.2 1.6 Energy Solutions3) Natural gas 1.6 TWh 10,1 Green hydrogen3) Mid
Slide 104: Position and capabilities across entire value chain
Position and capabilities across entire value chain Major renewable energy producer, market player and offtaker In Operation Offtake Aluminium Metal Hydropower in Norway (equity): 9.4 TWh Norwegian smelters: 17 TWh Hydropower in Norway (operator): 13 TWh Wind power in Norway (operator): 0.7 TWh Offt
Slide 105: Energy is a key differentiator in the aluminium industry
Energy is a key differentiator in the aluminium industry Center of energy excellence in Hydro Bauxite Alumina Primary Extrusion ~25% ~35% ~35% Energy cost 1) ~8% ~50% Energy business area’s • Power sourcing • Power sourcing • Power sourcing and • Power sourcing contribution to Hydro production • Fue
Slide 106: Market pricing principle applied to internal contracts
Market pricing principle applied to internal contracts Based on external price references Sourcing side Revenue side TWh TWh Spot price 0-2 3) • Long-term contract 1 9.4 (7-11) 1) • Market pricing • Fixed annual Regulated pricing price adjustments • Market pricing 16-182) • Duration varies • Differe
Slide 107: Energy EBITDA development
Energy EBITDA development • Production and market prices strongly linked to hydrological Adjusted EBITDA and NO2 spot price NOK million conditions 4.926 NOK/MWh 5.000 2.500 • Seasonal market variations in demand and supply. Gains or losses 3.791 4.000 3.540 2.000 may occur from delink between area p
Slide 108: Focus on core business and key strategic priorities towards 2030
Focus on core business and key strategic priorities towards 2030, building on strong production platform Resource spend Norwegian hydropower Shaping portfolio and Commercial ambition Energy players 2023 organization markets towards 2030 NOK per MWh Cost of labour Other opex MNOK 60 600 NOK 200 milli
Slide 109: Active sourcing agenda
Active sourcing agenda Portfolio of equity power and PPAs Norway: Power sourcing for Hydro smelters 1) Brazil: Power sourcing for B&A and Albras 2)3) TWh Potential consumption – further TWh Potential consumption decarbonization through technology – further decarbonization roadmap through electrifica
Slide 110: Lower Norwegian power surplus
Lower Norwegian power surplus Wind and hydropower interplay is key in the future energy system Norwegian Power Balance Hourly power production by source in price area NO2, Week 6 2024 TWh MWh/h 250 12 000 1 400 10 000 1 200 200 1 000 8 000 800 Wind power production Hydro power production 6 000 150 6
Slide 111: Volatility increases the need and value of flexibility
Volatility increases the need Norwegian hydropower adds flexibility at lower costs and value of flexibility than alternatives, with lower degree of cannibalization Pumped storage hydropower: Opportunity to shift energy production between hours and seasons Daily spot prices NO2 EUR/MWh, nominal 750 C
Slide 112: Several routes to secure power at competitive prices
Several routes to secure power at competitive prices Upgrading and expanding Developing wind and solar Sourcing from external hydropower assets projects including JVs suppliers Røldal-Suldal Wind power projects close to smelters 10 TWh long-term contract portfolio Illvatn Hydro Rein JV Signficant pl
Slide 113: Hydro Rein: Building the preferred supplier of renewable energy solutions
Hydro Rein: Building the preferred supplier of renewable energy solutions for industrials 2.6 GW Above 8 GW Europe in operations gross capacity in portfolio Mendubim Ventos de ~15 GWh p.a. >60 São Zacarias Stor-Skälsjön potential of power savings or total # of renewable Vista Alegre production behin
Slide 114: Hydro Rein: Renewable energy projects in the Nordics and Brazil
Hydro Rein: Renewable energy projects in the Nordics and Brazil1 Gross capacity3 Production Project Country Price area Technology # Projects Ownership (%) Partner(s) Status (MW) (GWh) Ventos de São Zacarias Northeast 1 44.9% 456 2,154 Operating Mendubim Northeast 1 30% 531 1,200 Operating Boa Sorte
Slide 115: Hydro Rein status after 4 years: 2.6 GW in operations
Hydro Rein status after 4 years: 2.6 GW of renewables in operations Projects in operations by end of 2024 Stor-Skälsjön Ventos de São Zacarias Mendubim Boa Sorte Vista Alegre Sweden Brazil Brazil Brazil Brazil Location: SE2 area Location: Northeast Location: Northeast Location: Southeast Location: S
Slide 116: Supporting industries on the road to net-zero
Supporting industries on the road to net-zero Partnership with Fritzøe to Decarbonizing Hydro’s alumina Enabling energy efficiency at develop renewables in Norway production in Brazil Norwegian aluminium plants • Renewable energy development in • PPAs between Alunorte refinery and • Supporting Hydro
Slide 117: Pioneering the green aluminium transition, powered by renewable energy
Pioneering the green aluminium transition, powered by renewable energy Snøheia & Høyanger Mendubim & Alunorte Renewable electricity to supply the smelter and fuel Renewable electricity to support new switch from natural gas to green hydrogen in recycler electric boilers at the alumina refinery Matur
Slide 118: Pursuing value creation opportunities towards 2030
Pursuing value creation opportunities towards 2030 An industry leader on HSE, performance and sustainability 1 High performance and profitability ambitions: 2 Energy Classic ROACE > 15% average Hydro Rein JV platform eIRR 10 – 20 % Commercial ambition NOK 550 million Active sourcing agenda and robus
Slide 119: Energy profitability growth roadmap
Energy profitability growth roadmap Main drivers: Net spot sales volume and market development Energy excl. REIN JV – Energy excl. REIN JV – Cash flow potential Main further upside drivers AEBITDA potential 2030 after sustaining CAPEX1) 2030 • Additional growth opportunities NOK billion NOK billion
Slide 120: Capital return dashboard for Energy
Capital return dashboard for Energy Returns above the cost of capital reflecting the depreciated asset base Capital employed in Energy 30 % 25 % 8% 3.5 BNOK 12 % 13 % ~10 BNOK 9% 6-7% (31 Dec ‘24) 2020 2021 2022 2023 2024 Adjusted EBITDA FY 2024 Return requirement Last 5 years ~18% average ARoaCE Ca
Slide 121: Aluminium Metal
Aluminium Metal
Slide 122: Global production network
Global production network Primary production and recycling 8 stand alone extrusion ingot recyclers • 3 in the U.S. Norway, 1 155 000 tonnes 50% • 5 in Europe (UK, Luxembourg, • Sunndal (100%): 430,000 tonnes France, Spain and Germany) • Årdal (100%): 205,000 tonnes • St Peter & Alusort scrap sorting
Slide 123: Competitive primary aluminium cash cost
Competitive primary aluminium cash cost Liquid aluminium cash cost 20244) • Primary aluminium cash cost 2024 • All-in implied primary aluminium cash cost1,2) USD 2 300 per mt • LME implied primary aluminium cash cost1,3) USD 1 875 per mt 8% • Alumina • Purchases based on alumina index ~93% 11% • Pur
Slide 124: Hydro has a unique value proposition in aluminium
Hydro has a unique value proposition in aluminium One stop shop for high-quality, low-carbon aluminium: Going to market with a combined offering of primary and recycled aluminium, and transparency in the value chain High-quality aluminium products Transparency in full World class R&D supporting and
Slide 125: Low-carbon footprint due to renewable energy base
Low-carbon footprint due to renewable energy base and industry lowest energy consumption Total emissions, in tonne CO2/t al Energy consumption in Hydro smelters1), kwh/kg al 18 17,5 18 16 16 15,0 14,8 14,4 13.9 14,1 14 13,1 14 12,5 12,3 11.8 12 12 10 10 8 8 6 6 4 4 2 2 0 0 Hydro Karmøy Hydro Hydro H
Slide 126: Strengthen competitiveness through cutting edge technology
Strengthen competitiveness through cutting edge technology, debottlenecking, digitalization and robotization Category Description Improvement Program NOK billion • Maximizing asset utilization at competitive capex levels Creep • Track record of ~100kt since 2014 – up to ~80kt further Commercial Orga
Slide 127: Roadmap to net-zero – Milestones in 2024
Roadmap to net-zero – Milestones in 2024 Pursuing sustainability strategy to differentiate Hydro on climate, nature and social aspects to capitalize on low-carbon market growth Post consumer scrap (PCS) Fuel switch Decarbonized processes in primary production • Alunorte fuel switch to reduce carbon
Slide 128: Leveraging our competitive advantage to further strengthen our position
Leveraging our competitive advantage to further strengthen our position Strategic priorities to protect and develop the unique position of Hydro’s Primary portfolio Safeguard strong cash flow Improvement • Long-term renewable power and raw material diversification – Albras power secured, active in t
Slide 129: Aluminium Metal sensitivities
Aluminium Metal sensitivities Annual sensitivities on adjusted EBITDA Revenue impact • Realized price lags LME spot by ~1-2 months +10 USD/mt1) +10 USD/mt1) +10 USD/mt1) +10 USD/mt1) +10 EUR/mt2) • Realized premium lags market premium by ~2-3 months NOK million Cost impact 220 160 Alumina • ~1.9 ton
Slide 130: Aluminium Metal profitability growth roadmap
Aluminium Metal profitability growth roadmap Main drivers: Improvement efforts, commercial differentiation and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main further upside drivers Profitability target of >10% NOK billion sustaining CAPEX1) 2030 • Posi
Slide 131: Hydro Recycling and Metal Markets
Hydro Recycling and Metal Markets
Slide 132: Hydro Recycling
») Hydro Hydro Recycling
Slide 133: Hydro recycling operations
Hydro recycling operations Metal Markets Recycling Extrusions Recycling Europe North America Europe North America South America 5 + Alumetal 3 10 9 2 Combined Hydro recycling capacity of ~2.4 million tonnes • ~0.7 million tonnes Extrusion billet production and HyForge • ~1.4 million tonnes Extrusion
Slide 134: Roadmap to 2030 ambitions
Roadmap to 2030 ambitions Strengthening margin robustness and growing through the cycle Improving recycling margins 1 in weak markets Realizing full value potential from 2 completed investments Driving profitable growth, 3 positioning for the future
Slide 135: Accelerating hot-metal cost improvements
1 Improving margins Accelerating hot-metal cost improvements as key competitive advantage in Aluminium Metal Recycling Controlling the controllables – exercising discipline and pushing the boundaries in weak markets The Azuqueca case Raw material mix 100 % 100 % 100% 100% Improving relative cost pos
Slide 136: Executing on strategic growth projects in recycling
2 Driving growth Executing on strategic growth projects in recycling Progressing on key strategic priorities, positioning for the future Customer centric Scrap-sorting Portfolio RFA2) integration approach and sourcing diversification and synergies Partnership with HySort operations Cassopolis advanc
Slide 137: Approved projects delivering on the 2030 PCS target
Approved projects delivering Approved creep / growth projects on the 2030 PCS target Torija greenfield Kety upgrade, Alumetal HyForge Henderson Atessa Recycling post-consumer scrap (PCS) capacity roadmap Million tonnes PCS Luce upgrade Wrexham HySort NowaSol HySort 2030 PCS target Current portfolio
Slide 138: Alumetal becoming an integral part of the Aluminium Metal network
3 Realizing value Alumetal becoming an integral part of the Aluminium Metal metal network On track to realize EUR 10-15 million1) in annual EBITDA uplift by 2027 RFA2) – Critical contributor to realizing Enabling synergies in the AM portfolio Progress made on multiple initiatives the recycling strat
Slide 139: Hydro meeting customer needs with unique capabilities within recycling
Hydro meeting customer Proven track record in realizing value from scrap needs with unique capabilities Increasing post-consumer scrap (PCS) share in production Extrusion ingot recycling + recycled foundry alloy, (‘000) tonnes and percentage share1) within recycling 850-1200 450 310 320 370 280 ~30
Slide 140: Approved projects to deliver on the 2030 EBITDA target
Approved projects to deliver on the 2030 EBITDA target in normalized market Recycling adjusted EBITDA roadmap NOK billion Current portfolio • Historical margins 2013-2021 ~ USD • Installed growth • Improving hot metal • Approved growth Installed capacity 100 per tonne for existing capacity1) project
Slide 141: Current cyclical downturn, strong long-term fundamentals
Current cyclical downturn, Global megatrends support recycling strong long-term fundamentals Increasing focus on circular economy and decarbonization from key stakeholders Average EBITDA margin improving over time, high volatility post-covid tracking building & construction demand Society Customers
Slide 142: Scrap exports expected to decrease from ~2030
Scrap exports expected to decrease from ~2030 as China is becoming more scrap self-sufficient Critical to keep low-grade scrap in Europe/U.S. through regulation, sorting and domestic applications Scrap generation increasing at higher rates in China vs Europe/ U.S. in line EU1) is net exporter to Chi
Slide 143: Keeping more low-grade scrap in Europe/U.S. through sorting and upcycling
Hydro aiming to keep more low-grade scrap in Europe/ U.S. through sorting and upcycling Mixed scrap exported to Asia either due to push (limited local use) or pull (higher value) drivers Low Export to Asia High Old building scrap Non-ferrous Auto EC wire chops Clean profiles Painted profiles Shredde
Slide 144: Metal Markets
») Hydro Metal Markets
Slide 145: Metal Markets earnings drivers
Metal Markets earnings drivers • Recyclers Adjusted EBITDA MM • Revenue impact – volume, LME and product premiums NOK million1) • Cost impact • Scrap and standard ingot premiums above LME 750 700 • Raw material mix 650 • Freight cost – proximity to market 600 • Energy consumption and prices 550 500
Slide 146: Strong position in value added casthouse products
Strong position in value added casthouse products • Capitalizing on value added casthouse Leading global position products portfolio Extrusion ingot Unique primary and • Extensive multi-sourcing system 1.4 million mt recycling capacity network including fully and part-owned primary casthouses and st
Slide 147: Pricing of value added products
Pricing of value added products Smelter Intermediate product Casthouse Aluminium Standard ingot Value added products Extrusion ingot Foundry alloy Sheet ingot Wire rod Traded on LME • U.S. Midwest - 1020 • Extrusion Ingot – Priced above standard ingot • Foundry Alloy – Priced above standard ingot US
Slide 148: Metal Markets profitability growth roadmap
Metal Markets profitability growth roadmap Main drivers: Recycling growth, commercial differentiation and market development ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main further upside drivers Profitability target of >8% NOK billion sustaining CAPEX1) 2030 • Positive m
Slide 149: Capital return dashboard for Aluminium Metal & Metal Markets
Capital return dashboard for Aluminium Metal & Metal Markets Investments in recycling capacity to support growth Capital employed in AM (MM) 35 % 31 % 28 % 24 % 10%-11% 22 % 14 % 11 % 12 % ~47 (11) BNOK 3% 2020 2021 2022 2023 3% 2024 9.7 (1.2) BNOK (7-8%) (31 Dec ‘24) Adjusted EBITDA FY 2024 9% 37 %
Slide 150: Extrusions
Extrusions
Slide 151: Extrusions – #1 in the global aluminium extrusion industry
Extrusions – #1 in the global aluminium extrusion industry Present in ~40 countries ~ 19 900 people 1) 1.0 Million mt sales2) 1) Permanent employees as of end-2024 151 2) Total sales in 2024
Slide 152: Hydro Extrusions has more than 100 locations in more than 30 countries
Hydro Extrusions has more than 100 locations in more than 30 countries Extrusion Europe Nenzing, Austria Lichtervelde, Belgium Raeren, Belgium Ghlin, Belgium Tønder, Denmark Albi, France Chatearoux, France Extrusion Luce, France Puget, France Precision North America Lüdenscheid, Germany Mississauga,
Slide 153: Extrusions earnings drivers
Extrusions earnings drivers Adjusted EBITDA per tonne1), NOK • Contract structure 7,500 • Margin business based on conversion price 7,000 • LME element passed on to customers 6,500 • Mostly short-term contract, typically ranging from spot to 12 months, 6,000 few longer-term contracts with floating p
Slide 154: Leveraging opportunities from greener transition and substitution towards aluminium
Hydro Extrusions leveraging opportunities from greener transition and substitution towards aluminium Greener transition 2018 2020 2021 2023 2024 in buildings First project All main >500 projects First projects Project for production Building Systems with Hydro products in Hydro done in Hydro in Hydr
Slide 155: Growing automotive exposure through long-term contracts
Growing automotive exposure through long-term contracts Slower transition to EV growth short-term – long-term potential remains attractive BEV sales facing headwinds short-term, Leveraging global footprint, Record levels of OEM sole supply contracts long-term trend supportive serving OEMs across con
Slide 156: Delivering on growth projects, reshaping investment agenda
Delivering on growth projects, reshaping investment agenda towards press replacements and automation Hydro Extrusions CAPEX agenda – short and long-term Complete Ramping up Under execution Project pipeline Hueck M&A The Dalles cast (U.S.) Hungary automotive press Press replacements (Albi & Gainesvil
Slide 157: Future-proofing customers
Future-proofing customers Greener sourcing and production Hydro Extrusions sustainability targets 2030 Sourcing Production Product -27% -24% CO2 emissions on CO2 direct/indirect extrusion billets1) emissions1) Help customers realize their sustainability Reduce own emissions ambitions and positions 1
Slide 158: Customers from all industries collaborating with Hydro Extrusions
Customers from all industries collaborating with Hydro Extrusions to make greener products Serving global customers Partnerships Not only automotive • Global customer, served on two continents, Extrusions Europe Partnership supporting VELUX decarbonization also in the program creating value by U.S.
Slide 159: Extrusions demand significantly down, long-term growth prospects attractive
Extrusions demand significantly down over last years, long-term growth prospects remain attractive Lower demand compared to base case for NOK 8 billion target Extrusion demand estimates (CRU) Extrusion demand CAGR 2024 - 30 (‘000 tonnes) 4,000 4.3% 5.5% EU April 2021 Forecast Total EU October 2024 e
Slide 160: Solid EBITDA per tonne generation despite weak markets
Solid EBITDA per tonne generation despite weak markets Segment position and margin management as key drivers HE sales volumes split per segment HE EBITDA HE EBITDA per tonne Million tonnes NOK million NOK per tonne 7.020 1.4 6.480 Distribution 15% 1.0 5.696 5,945 5,612 Automotive 10% 10% Transport 1
Slide 161: Extrusions stepping up ambitions on operational and commercial improvements
Extrusions stepping up ambitions on operational and commercial improvements Ambitious improvement targets 2030 supported by dedicated value streams Category Description Improvement ambition towards 2030 (2024 baseline, real terms) • Increase market share in key, dedicated segments Commercial through
Slide 162: Press consolidations giving new capabilities and cost savings
Press consolidations giving new capabilities and cost savings, automation project providing strong returns Press consolidation example: Cressona (U.S.) Automated Fabrication cells Two old presses One new press Manning 2x7 FTEs per shift 4 FTEs per shift Maintenance cost p.a. USD 3-4 million USD ~2 m
Slide 163: Roadmap to 2030 target underpinned by improvement agenda
Roadmap to 2030 target underpinned by stronger improvement agenda and structural demand recovery Cyclical improvement in extrusions demand and improvement program supporting long-term targets Hydro Extrusions EBITDA ambitions Hydro Extrusions 2030 NOK billion (real 2023) 1.5 – 2.5 10.0-12.0 10.0 –12
Slide 164: NOK 8 billion target in 2025 challenged by weak short-term demand
NOK 8 billion target in 2025 challenged by weak short- term demand – Strengthened improvement agenda Underlying extrusion demand in key regions and segments not sufficient to deliver NOK 8 billion Hydro Extrusions EBITDA ambitions NOK billion • Lower recycling and extrusion volumes • Lower recycling
Slide 165: Extrusions profitability growth roadmap
Extrusions profitability growth roadmap Main drivers: Improvement program and commercial ambition ARoaCE potential 2030 AEBITDA potential 2030 Cash flow potential after Main further upside drivers Profitability target of >8% NOK billion sustaining CAPEX1) 2030 • Selective profitable growth Commercia
Slide 166: Capital return dashboard for Extrusions
Capital return dashboard for Extrusions Returns below cost of capital reflecting market headwinds and lower demand Capital employed in Extrusions 11 % 10 % 9% 6% 25 % ~31 BNOK 2% 4.1 BNOK 7-8% 2020 2021 2022 2023 2024 (31 Dec ‘24) Adjusted EBITDA FY 2024 Return requirement ~8% Last 5 years average A
Slide 167: Additional information
») Hydro Additional information
Slide 168: Key figures – Outlook Q3 2025
Key figures – Outlook Q3 2025 Note that the information on this page is based on forward looking information from current point in time and changes might occur during the coming quarter Bauxite & Alumina Aluminium Metal Metal Markets • Seasonally lower recycling volumes • Alunorte production at name
Slide 169: Adj. EBITDA up on higher aluminium and energy prices
Adj. EBITDA up on higher aluminium and energy prices and eliminations, partly offset by FX and raw material cost Q2 2025 vs Q2 2024 NOK billion 1.8 7.8 0.1 0.3 1.7 0.4 0.5 0.3 1.1 0.0 0.4 5.8 0.0 CO2 compensation Other Eliminations Adj. EBITDA Realized Upstream Raw material cost Extrusion and Energy
Slide 170: Income statements
Income statements NOK million Second quarter Second quarter First quarter First half First half Year 2025 2024 2025 2025 2024 2024 Revenue 53 116 50 944 57 094 110 210 98 490 203 636 Share of the profit (loss) in equity accounted investments (197) 113 58 (139) 158 (516) Other income, net 1 042 1 392
Slide 171: Balance sheet
Balance sheet NOK million June 30 March 31 December 31 September 30 June 30 March 31 December 31 September 30 2025 2025 2024 2024 2024 2024 2023 2023 Cash and cash equivalents 18 809 18 945 15 049 18 875 18 886 19 622 24 618 19 105 Short-term investments 3 051 2 943 3 467 3 928 3 760 4 968 2 641 2 1
Slide 172: Adjusting items to EBITDA, EBIT and net income
Adjusting items to EBITDA, EBIT and net income NOK million (+=loss/()=gain) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Year 2024 Unrealized derivative effects on LME related contracts Hydro Bauxite & Alumina 3 8 (7) (18) 4 14 (15) Unrealized derivative effects on raw material contracts Hydro Ba
Slide 173: Operating segment information: Adjusted EBIT
Operating segment information Adjusted EBIT NOK million Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Year 2023 Year 2024 Hydro Bauxite & Alumina (221) 88 (610) (269) 43 841 2 761 4 216 4 404 772 (1 013) 7 861 Hydro Energy 677 805 712 755 1 103 545 575 1 085 1 119 1
Slide 174: Operating segment information: EBIT
Operating segment information EBIT NOK million Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Year 2023 Year 2024 Hydro Bauxite & Alumina (399) (30) (570) (4 223) 81 844 2 834 4 153 4 464 726 (5 222) 7 911 Hydro Energy 466 628 677 634 1 047 1 180 22 637 891 818 2 406
Slide 175: Operating segment information: Total revenue
Operating segment information Total revenue NOK million Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Year 2023 Year 2024 Hydro Bauxite & Alumina 8 320 8 830 8 423 9 948 10 200 11 905 14 306 17 808 16 634 11 152 35 521 54 219 Hydro Energy 3 452 2 162 3 299 2 644 2 8
Slide 176: Operating segment information: Internal revenue
Operating segment information Internal revenue NOK million Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Year 2023 Year 2024 Hydro Bauxite & Alumina 3 031 3 260 3 019 3 141 3 238 3 597 4 599 5 174 5 785 2 977 12 542 16 608 Hydro Energy 1 818 1 905 1 683 1 586 1 665
Slide 177: Operating segment information: Return on average capital employed
Operating segment information Return on average capital employed 1) (RoaCE) Reported RoaCE Adjusted RoaCE 2024 2023 2022 2021 2020 2019 2018 2024 2023 2022 2021 2020 2019 2018 Hydro Bauxite & Alumina 21.5% (12.7%) 1.3% 11.9% 5.4% 1.9% 4.6% 21.4% (2.5%) 1.8% 12.0% 5.9% 2.5% 6.0% 2) Hydro Energy 6.7%
Slide 178: Operating segment information: Depreciation, amortization and impairment
Operating segment information Depreciation, amortization and impairment NOK million Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Year 2023 Year 2024 Hydro Bauxite & Alumina 659 729 703 4 523 761 775 649 753 731 748 6 614 2 938 Hydro Energy 48 49 49 50 49 66 51 66 6
Slide 179: Operational data
Operational data Hydro Bauxite & Alumina Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Year 2023 Year 2024 Alumina production (kmt) 1 550 1 542 1 522 1 571 1 503 1 492 1 463 1 516 1 465 1 516 6 185 5 973 Sourced alumina (kmt) 686 553 692 909 1 080 1 231 1 247 1 164
Slide 180: Operational data
Operational data Hydro Aluminium Metal 1) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Year 2023 Year 2024 Realized aluminium price LME, USD/mt 2 291 2 273 2 146 2 129 2 248 2 377 2 429 2 450 2 547 2 548 2 218 2 374 Realized aluminium price LME, NOK/mt 2) 23 566 24
Slide 181: Hydro Extrusions, information by business area
Hydro Extrusions, information by business area Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q2 Precision Tubing 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 2025 2025 Extrusion Europe 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 2025 2025 Volume (kmt) 31 32
Slide 182: Scenario assumptions
Scenario assumptions Scenarios are not forecasts, but illustrative earnings, cash flow and return potential based on sensitivities • Starting point – AEBITDA Q3 2024 LTM 2025 2030 • Cash flow calculated as AEBITDA less EBIT tax and Assumptions used in CRU / S&P CRU / S&P long-term sustaining CAPEX,
Slide 183: Investor Relations in Hydro
Investor Relations in Hydro Martine Rambøl Hagen Head of Investor Relations Next event t: +47 91708918 e: martine.rambol.hagen@hydro.com Q3 2025 Elitsa Blessi Investor Relations Officer October 24, 2025 t: +47 91775472 e: elitsa.blessi@hydro.com Mathias Gautier Investor Relations Officer For more in
Slide 184: Hydro
Hydro Industries that matter