Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Q1 2025 Earnings Presentation
52 slides from Norsk Hydro Asa's earnings presentation, Apr 29, 2025
Slide 1: First quarter 2025 Investor presentation
First quarter 2025 Investor presentation April 29, 2025
Slide 2: Table of contents / Cautionary note
Table of contents First quarter results 2025 3 Cautionary note Certain statements included in this announcement contain forward-looking information, Additional slides 25 including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro managemen
Slide 3: Strong upstream results, navigating global trade uncertainty
Strong upstream results, navigating global trade uncertainty Eivind Kallevik, President & CEO April 29, 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 2.62 average since Q1’20 1.13 average since Q1’20 2 1.89 per end-Q1’253) 1 1 0.69 per end-Q1’253) 0 0 Q1’20 Q1’21 Q1’22 Q1’23 Q1’24 Q1’25 Q1’20 Q1’21 Q1
Slide 5: Q1 2025 highlights Adjusted EBITDA NOK 9.5 billion
Q1 2025 highlights Adjusted EBITDA NOK 9.5 billion Free cash flow NOK 1.3 billion, adjusted RoaCE1) 10.7% Strong upstream results, Bauxite & Alumina record quarter Limited direct tariff exposure, navigating economic uncertainty and risk of lower demand 2025 Extrusions outlook down on uncertain marke
Slide 6: Limited direct tariff impact
Limited direct tariff impact Navigating economic uncertainty and risk of lower demand Background Limited direct tariff impact Risk monitoring and mitigation • Tariffs on aluminium and automotive: • Aluminium tariffs: • Rising concerns of economic uncertainty and • 232 tariffs of 25% on aluminium and
Slide 7: 2025 Extrusions outlook down on uncertain markets
2025 Extrusions outlook down Hydro Extrusions optimizing portfolio to cut costs on uncertain markets Continued restructuring • Luce anodizing closure decision, decommissioning by Q3 2025 • Birtley closure completed, decommissioning starting shortly, plant will be stopped end of Q2 Hydro Extrusions a
Slide 8: Addressing market tightness, accelerating margin improvements
Addressing market tightness, Aluminium Metal Recycling strengthening margins through hot metal cost (HMC) improvements 1) accelerating margin improvements Exercising discipline and pushing boundaries in weak Tight scrap availability on low scrap generation markets by controlling the controllables •
Slide 9: Hydro 2030: Pioneering the green aluminium transition
Hydro 2030: Pioneering the green aluminium transition, powered by renewable energy Key priorities towards 2030 Step up growth investments in Recycling and Step up ambitions within Extrusions to take lead in the market opportunities renewable power generation emerging from the green transition Execut
Slide 10: Shaping the low-carbon aluminium market
Shaping the low-carbon aluminium market Greener earnings uplift First mover customer in the U.S. and new automotive collaboration potential of NOK 2 billion1) Million tonnes capacity potential Recycled aluminium Vode Lighting first mover in the U.S Automotive collaboration with Nemak (high potential
Slide 11: Supplying Europe's power grid with low-carbon aluminium
Supplying Europe’s power grid with low-carbon aluminium • Investing NOK 1.65 billion in a new 110,000 tonnes annual capacity wire rod casthouse at Hydro Karmøy, Norway. Production start in 2028. • Signed offtake agreement with European cable producer NKT • Initial commitment of 274,000 tonnes of wir
Slide 12: Financial update
Financial update Trond Olaf Christophersen Executive Vice President & CFO
Slide 13: Falling alumina price pressuring fourth quartile refineries
Falling alumina price pressuring fourth quartile refineries Easing global alumina balance due to Record PAX prices declining below Pushing down the 90th percentile capacity expansion in 2025 H1 2024 levels threshold Estimated global balance Platts alumina index (PAX) Global alumina business cost cur
Slide 14: Geopolitics shaping the aluminium market
Geopolitics shaping the aluminium market Estimated global balance LME aluminium price Regional premiums Primary production, million tonnes1) USD per tonne (`000) NOK per tonne (`000) NOK per tonne 1.9 1.7 4,000 35 1,000 900 3,500 800 30 700 3,000 600 25 500 2,500 400 20 300 2,000 200 15 1,500 100 -1
Slide 15: B&C and industrial segments easing, automotive and transport still negative
B&C and industrial segments easing, automotive and transport still negative External market forecasts1) Extrusion sales volumes Year over Year Q1 2025 vs Q1 2024 Extrusion market growth per quarter and annually Hydro Extrusions segment sales volume Growth in % Growth in % 7 25 6 3 3 1 2 1 4 -1 2 -1
Slide 16: Adj. EBITDA up on Extrusions volumes and other effects
Adj. EBITDA up on Extrusions volumes and other effects, partly offset by lower alumina sales and higher raw material costs Q1 2025 vs Q4 2024 NOK billion 1.7 9.5 0.5 1.1 7.7 0.4 0.4 0.3 0.2 1.0 0.3 0.7 0.9 CO2 compensation Other Eliminations Adj. EBITDA Realized Upstream Raw material cost Extrusion
Slide 17: Key financials
Key financials NOK million Q1 2025 Q1 2024 Q4 2024 Year 2024 Revenue 57 094 47 545 55 057 203 636 Reported EBITDA 10 815 5 511 9 055 26 543 Adjusting items to EBITDA (1 299) (100) (1 354) (225) Adjusted EBITDA 9 516 5 411 7 701 26 318 Reported EBIT 8 016 3 066 6 375 16 487 Adjusted EBIT 6 998 2 966
Slide 18: Hydro Bauxite & Alumina
Hydro Bauxite & Alumina Implied alumina cost and margin USD/mt1) 587 584 Results up on higher alumina price and lower raw material 167 180 costs, partly offset by higher fixed costs and lower sales 366 16 volume 30 Key figures Q1 2025 Q1 2024 Q4 2024 407 401 337 Alumina production, kmt 1 465 1 503 1
Slide 19: Hydro Aluminium Metal
Hydro Aluminium Metal All-in price and volume USD per tonne1,4) (‘000) tonnes 1 500 3 000 2 800 Results up on higher all-in metal prices and reduced carbon 1 000 2 600 cost, partly offset by increased alumina cost 559 2 2759)577 539 2 450 540 541 584 2 2509) 531 536 539 2 400 500 0 0 Key figures Q1
Slide 20: Metal Markets
Metal Markets Results down on negative results from sourcing and trading activities and negative currency effects Key figures Q1 2025 Q1 2024 Q4 2024 Recycling production, kmt 192 179 172 Metal products sales, kmt 1) 612 622 621 Adjusted EBITDA Recycling (NOK million) 63 58 25 Adjusted EBITDA Commer
Slide 21: Hydro Extrusions
Hydro Extrusions Results down on lower sales volumes, lower recycling margins, partly offset by strong cost measures Key figures Q1 2025 Q1 2024 Q4 2024 External sales volumes, kmt 255 266 220 Adjusted EBITDA, NOK million 1,174 1,437 371 Adjusted EBIT, NOK million 350 690 (532) Adjusted RoaCE, % LTM
Slide 22: Hydro Energy
Hydro Energy Results up on higher prices and price area gain, partly offset by lower production and trading and hedging volumes Key figures Q1 2025 Q1 2024 Q4 2024 Power production, GWh 2 743 2 843 2 329 Net spot sales, GWh 641 844 254 Southwest Norway spot price (NO2), NOK/MWh 776 736 628 Adjusted
Slide 23: Net debt decrease of NOK 0.9 billion during Q1
Net debt decrease of NOK 0.9 billion during Q1 Decrease in net debt due to positive free cash flow which are partly offset by share buy-backs and other effects NOK billion Free cash flow NOK 1.3 billion (1.5) Hedging collateral and other Pension assets/(liabilities) (4.1) Other assets/(liabilities)
Slide 24: 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 25: Additional slides
») Hydro Additional slides
Slide 26: Key figures – Outlook Q2 2025
Key figures – Outlook Q2 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 • Lower alumina price • Seasonally higher volumes in recycling • ~
Slide 27: Revenue drivers through Q1 2025
Revenue drivers through Q1 2025 LME aluminium price Regional standard ingot premiums Platts alumina index (PAX) USD/mt USD/mt USD/mt % of LME 4,000 35,000 1,600 900 35% 1,500 1,400 800 3,500 1,300 30,000 30% 1,200 700 1,100 3,000 1,000 600 25,000 25% 900 800 500 2,500 700 600 20% 20,000 400 500 2,00
Slide 28: Market raw material costs in Q1 2025
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 0.0 0.5 1.0 1.5 2.0 2.5 Q1-21 Q1-21 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 Caustic soda (indexed) Q1-24 Q1-24 Q2-24 Q2-24 Source: Thomson Reuters, PACE, IHS Markit, Platts, AN
Slide 29: Key performance metrics Q1 2025
Key performance metrics Q1 2025 Adjusted EBITDA Free cash flow1) Adjusted RoaCE2) NOK million NOK billion 12-month rolling % 9,516 1,7 10.7% 1,3 7,701 8.5% 5,411 5.5% 1Q24 4Q24 1Q25 -3,5 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 Upstream costs3,4) Extrusion volumes Improvement program status USD per tonne Thous
Slide 30: Hedging status
Hedging status Aluminium hedges in place for 2025-2027 Strategic hedging status1) NOK Billions • 2025: 450 kt hedged at a price of ~2400 USD/t • 2026: 460 kt hedged at a price of ~2600 USD/t • 2027: 50 kt hedged at a price of ~2600 USD/t Settlements • Pricing mainly in NOK. Net USD exposure hedged v
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: Additional information
») Hydro Additional information
Slide 38: Adj. EBITDA up on higher upstream prices, partly offset by higher raw material cost
Adj. EBITDA up on higher upstream prices, partly offset by higher raw material cost Q1 2025 vs Q1 2024 NOK billion 0.2 1.3 0.3 9.5 0.4 0.1 0.3 0.3 0.3 0.0 -0.1 5.9 CO2 compensation Other 5.4 Eliminations Adj. EBITDA Realized Upstream Raw material cost Extrusion and Energy price Fixed cost FX CO2 Adj
Slide 39: Income statements
Income statements NOK million First quarter First quarter Fourth quarter Year 2025 2024 2024 2024 Revenue 57 094 47 545 55 057 203 636 Share of the profit (loss) in equity accounted investments 58 46 (311) (516) Other income, net 1 313 1 000 2 155 5 543 Total revenue and income 58 465 48 591 56 901
Slide 40: Balance sheet
Balance sheet NOK million March 31 December 31 September 30 June 30 March 31 December 31 September 30 June 30 2025 2024 2024 2024 2024 2023 2023 2023 Cash and cash equivalents 18 945 15 049 18 875 18 886 19 622 24 618 19 105 22 453 Short-term investments 2 943 3 467 3 928 3 760 4 968 2 641 2 101 1 1
Slide 41: 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 Year 2024 Unrealized derivative effects on LME related contracts Hydro Bauxite & Alumina 3 8 (7) (18) 4 (15) Unrealized derivative effects on raw material contracts Hydro Bauxite & Alu
Slide 42: Operating segment information
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 Year 2023 Year 2024 Hydro Bauxite & Alumina (221) 88 (610) (269) 43 841 2 761 4 216 4 404 (1 013) 7 861 Hydro Energy 677 805 712 755 1 103 545 575 1 085 1 119 2 950 3 308 H
Slide 43: Operating segment information
Operating segment information EBIT NOK million Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Year 2023 Year 2024 Hydro Bauxite & Alumina (399) (30) (570) (4 223) 81 844 2 834 4 153 4 464 (5 222) 7 911 Hydro Energy 466 628 677 634 1 047 1 180 22 637 891 2 406 2 886 Hydro Alu
Slide 44: Operating segment information
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 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 35 521 54 219 Hydro Energy 3 452 2 162 3 299 2 644 2 882 2 561 2 370
Slide 45: Operating segment information
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 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 12 542 16 608 Hydro Energy 1 818 1 905 1 683 1 586 1 665 1 704 1 764 1
Slide 46: Operating segment information
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 47: Operating segment information
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 Year 2023 Year 2024 Hydro Bauxite & Alumina 659 729 703 4 523 761 775 649 753 731 6 614 2 938 Hydro Energy 48 49 49 50 49 66 51 66 61 196 232 Hy
Slide 48: 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 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 6 185 5 973 Sourced alumina (kmt) 686 553 692 909 1 080 1 231 1 247 1 164 1 082 2 840 4
Slide 49: 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 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 2 218 2 374 Realized aluminium price LME, NOK/mt 2) 23 566 24 417 22 456 23
Slide 50: Hydro Extrusions, information by business area
Hydro Extrusions, information by business area Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year Q1 Precision Tubing 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 2025 Extrusion Europe 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 2025 Volume (kmt) 31 32 31 29 124 31 31
Slide 51: 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 Q2 2025 Elitsa Blessi Investor Relations Officer July 22, 2025 t: +47 91775472 e: elitsa.blessi@hydro.com Mathias Gautier Investor Relations Officer For more infor
Slide 52: Hydro
Hydro Industries that matter