Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Carnegie Morning Meeting (December 2020)
9 slides from Norsk Hydro Asa's conference presentation, Dec 18, 2020
Slide 1: Pål Kildemo, CFO – December 18 2020
Pål Kildemo, CFO December 18 2020
Slide 2: Seizing opportunities where our capabilities match megatrends
Seizing opportunities where our capabilities match megatrends 1 Strengthen position in low-carbon aluminium Diversify and grow in recycling and new energy Recycling Renewables Batteries 2
Slide 3: BNOK 8.5 improvement program and growth initiatives
Growth and BNOK 2.0 strategic initiatives Commercial Larger changes in business BNOK 8.5 ambitions portfolio and/or strategic direction • Recycling: more than doubling post-consumer Improvement Pursuing market and customer- scrap utilization, creating EBITDA uplift of BNOK 1.0 to 1.5 by 2025 program
Slide 4: Improvement program and commercial ambition lifting cash flows towards 2025
Improvement New strategic program and growth commercial initiatives ambition Lifting cash flows towards 2025 Strengthen Capex working capital optimization management 6
Slide 5: Investments based on strategic priorities and capital allocation framework
• Investments based on strategic priorities and capital allocation framework Historical capex Updated capex Guidance capex LT, Sustaining projects BNOK guidance for 2020, BNOK • New mining area in BNOK Paragominas (from 2022) 11.0 • Pipeline replacement 9.6 • Upgrades to Alunorte 8.6 ~9.5-10 7.9 7.8
Slide 6: Hydro targets URoaCE above 10% over the cycle
• Hydro targets URoaCE above 10% over the cycle Capital employed1) 10 % LTM: 4% 9% 0% Bauxite & Alumina 7% 22 % Primary Metal 5% 27 % 25 27 % Metal Markets Rolled Products 1% ~96 BNOK Extruded Solutions (30 Sept.20) Energy 2015 2016 2017 2018 2019 URoaCE target Nominal long-term 11 13 % % over the c
Slide 7: Main drivers – improvement measures and market developments
• Main drivers – improvement measures and market developments URoaCE potential Market scenarios 2025 Main further upside drivers Main downside risks 14 % • Sustainability differentiation and • Negative market and macro 11 % 12 % premium developments, incl. trade restrictions >10% target 9% • Positiv
Slide 8: Strong market positions, attractive asset base, greener products leadership
Strong market positions Attractive asset base downstream Greener products leadership 1st and 2nd ~45% 2.3 and 4.0 quartile cost of total downstream tons CO2 per ton performance volumes in growth aluminium in upstream segments1) greener products Robust cash position and balance sheet Strong sharehold
Slide 9: Hydro – Industries that matter
Hydro Industries that matter
Norsk Hydro — Carnegie Morning Meeting (December 2020) on 6ix