Slide 1: Recycling: Capturing market opportunities emerging from the green transition
Recycling Capturing market opportunities emerging from the green transition 12-13th of September 2025 Investor Relations site visit – St Peter and Clervaux
Slide 2: Content / Cautionary note
Content Cautionary note Section Page Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and 1. Why Recycling? 3 estimates, (b) statements of Hydro management concerning plans, objecti
Slide 3: Why Recycling?
01 Why Recycling? Martine Rambøl Hagen, Head of Investor Relations
Slide 4: Starting from a leading position providing products with low emissions
Starting from a leading product Providing products with low emissions position Primary aluminium produced on renewable energy Recycled aluminium from Hydro Less than ~25 percent ~13 percent for 75R, and of the world global primary average ~4 percent for 100R of the world global primary average Full
Slide 5: All signs point to recycling
All signs point to recycling 1. Clear trends in Hydro’s 2. Recycling is becoming 3. Global markets lacking 4. Recycling the fastest of main markets more important as the low-carbon capacity three paths to net-zero generation of post consumer by 2050 scrap gains momentum • Low-carbon and recycled alu
Slide 6: Clear trends in Hydro's main markets
1. Clear trends in Hydro’s main markets Low-carbon and recycled aluminium a majority of EU and North America markets by 2030 Estimated low-carbon and recycled aluminium demand Megatrends supporting growth Greener demand growth is (based on currently stated ambitions) outpacing the rest of the market
Slide 7: Recycling is becoming more important as post-consumer scrap generation gains momentum
2. Recycling is becoming more important as the generation of post consumer scrap gains momentum Global estimated recovery of post-consumer scrap Global estimated aluminium consumption Million tonnes Million tonnes 70 140 60 Forecast 120 Forecast 50 100 40 80 30 60 20 40 10 20 0 0 2000 2010 2020 2030
Slide 8: Global markets lacking low-carbon capacity
3. Global markets lacking low-carbon capacity Emerging potential for green market tightness and premium pricing Cradle-to-gate emissions curve 2023 Tonnes CO2e per tonne Aluminium 24 Other Scope 3 emissions1) 22 Bauxite & Alumina emissions (NHY wholly owned) 20 Bauxite & Alumina emissions (Russia) B
Slide 9: Recycling the fastest of the three paths to net-zero by 2050
4. Recycling the fastest of the three paths to net-zero by 2050 Primary aluminium Recycling Technologies for more PCS-use HalZero process Parallel technology development New process technology for decarbonizing new • HalZero - Hydro’s proprietary technology suited capacity for greenfield smelters -
Slide 10: Hydro recycling strategy
02 Hydro recycling strategy Martine Rambøl Hagen, Head of Investor Relations
Slide 11: 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 12: Step up growth investments in Recycling
Step up growth investments in Recycling 1 2 3 4 Strengthen scrap sorting capabilities; secure feedstock PCS capacity1) Recycling EBITDA Tonnes (‘000) NOK billion 850-1,200 5-8 Expand global asset base across the value chain 80-430 1.5-4.5 770 520-670 560 Diversify product portfolio, develop innovati
Slide 13: Hydro with competitive advantages in recycling
Recycling 2030 ambitions: Hydro with competitive 850-1,200 advantages in recycling 770 540 Full value chain with multiple product outlets 2023 2027 2030 • Large recycling asset base in Europe and North America • Broad range of products – extrusion ingot, sheet ingot, foundry alloys, HyForge, Master
Slide 14: Aiming to harvest green premiums
Aiming to harvest green premiums Earnings uplift potential 2030 of NOK 2 billion1) Greener product capability from total aluminium portfolio1) Million tonnes capacity potential Tonnes CO2e High-potential 5 per tonne Al. in pending capital allocation Hydro product CIRCAL Recycled aluminium <2.3t/t po
Slide 15: Recycling in Hydro
03 Recycling in Hydro Martine Rambøl Hagen, Head of Investor Relations
Slide 16: 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 tones • ~0.7 mill tons Extrusion billet production and HyForge • ~1.4 million tons Extrusion billet
Slide 17: Strong European recycling network
Strong European recycling network Good basis for delivering on Hydro’s recycling strategy Sunndalsøra • Network of dedicated recycling plants across Europe producing billets Høyanger Årdal • Total capacity of approx. 800 ktpy (~50%/50% split between AM and Extrusion) Husnes • Prior to Székesfehérvár
Slide 18: Hydro has remelters in North America
Hydro has 12 remelters in North America Installed capacity (kt) 1) Hydro Aluminium Metal (AM) Total installed Hydro Extrusion North America (ENA) capacity ~1.1 Mt 250 The Dalles 200 Toronto Yankton Cressona Spanish Cassopolis 150 Fork Monett Henderson 100 Phoenix Commerce 50 Delhi St. Augustine 0 Mo
Slide 19: Aluminium Metal Recycling
04 Aluminium Metal Recycling Olena Gevoll, Head of Finance AM Recycling
Slide 20: Expanding AM Recycling asset base across geographies and products
Expanding AM Recycling asset base across geographies and products EI Recycler Sorting Plant RFA Casthouse AluSort Cassopolis, MI HyForge Casthouse Wrexham Henderson, KY NowaSol St. Peter Gorzyce Rackwitz Kety Commerce, TX Clervaux Luce Komarom Facts and figures, 2024 • 8 Extrusion ingot recycling pl
Slide 21: We are aiming for industry leadership in recycling
We are aiming for industry leadership in recycling Our recycling strategy in three ‘easy’ steps to lift profitability and drive sustainability across the recycling value-chain 1 2 3 Digging deeper Aiming higher Going greener Establishing strong positions in the scrap High-grading scrap through sorti
Slide 22: Hydro has a proven track record developing recycling capabilities
Hydro has a proven track record developing recycling capabilities Increasing use of PCS and Diversifying asset and product portfolio2) Expanding specialty and greener product offerings3) sorting capacity 1) Recycling product portfolio mix Increasing CIRCAL 75R capacity 100% Tonnes (‘000) +40% ~250-3
Slide 23: Continuing to strengthen our recycling position
Continuing to strengthen our recycling position Widening margins and positioning Developing and executing projects supporting our strategy for long-term growth • Digging deeper into the scrap pile and Secure access to scrap Wrexham sorting securing access to scrap and develop Alusort JV • Diversifyi
Slide 24: It's all about scrap
05 It’s all about scrap Olena Gevoll, Head of Finance AM Recycling
Slide 25: Primary and recycling value chains are distinctly different
Primary and recycling value chains are distinctly different – impossible to own scrap source in recycling Primary value chain Possible to own the source Bauxite mining Alumina Primary Source ~100% directed smelting refining towards aluminium products Recycling value chain % of total scrap metal1): S
Slide 26: Scrap value chain: many steps from scrap source to melting
Scrap value chain: many steps from scrap source to melting Scrap market value chain Scrap Shredding or Sorting Scrap generation Scrap yard Melting collection shearing Traditional (conventional) Sensor based LIBS Technology varies with companies ▪ Scrap generation, ▪ Collection of aluminium ▪ Scrap y
Slide 27: EI recycling exposed to a small share of scrap volumes
EI recycling exposed to a small share of scrap volumes. Accessing lower-grade scrap through Alumetal and sorting can unlock further potential Current extrusion scrap Scrap volumes - Illustrative sourcing: mostly sorted, shredded and furnace ready Old extrusions profiles Wheels Aluminium Cast scrap O
Slide 28: Key to success is multi sources + multi market positions, where RFA is key
Key to success in recycling is "multi sources +multi market” positions, where RFA is key Scrap types and matching market positions Cars or buildings Old auto Old building EI old profiles Aluminium Required market positions share 5-10% 70-75% 75-80% ~100% Sorted profiles (extruded) ~100% aluminium “6
Slide 29: Mixed scrap types require sorting capabilities and ability to convert to various products
Mixed scrap types require sorting capabilities and ability to convert to various products There is a large range of different scrap qualities differing among others from mix of aluminium qualities and share of other metals in the mix High Low Need for sorting High Old building scrap Non-ferrous Auto
Slide 30: Large scrap volumes leaving Europe and NA, predominantly low-grade mixed scrap
Large scrap volumes leaving Europe and NA, predominantly low-grade mixed scrap types ~30% of PCS generated in Europe and US is currently exported Net export Net import EU1) is net exporter to China, India and rest of Asia. Some imports from Middle East, Middle East Australia and New Zealand. Also, s
Slide 31: Currently tight scrap markets on low scrap generation and high exports
Currently tight scrap markets on low scrap generation combined with continued high exports Long-term fundamentals remain intact Narrow scrap spreads Scrap generation subject to cyclicality, but growing longer-term Premium/ discount to LME, USD/t European extrusions market growth, kmt European PCS re
Slide 32: Summary – key success factors in securing competitive access to scrap
Summary – key success factors in securing competitive access to scrap Scrap procurement excellence Advanced scrap sorting capabilities Multiple product outlets 32
Slide 33: Recycling value creation
06 Recycling value creation Olena Gevoll, Head of Finance AM Recycling
Slide 34: Aluminium recycling – a schematic overview
Aluminium recycling – a schematic overview Energy, carbon etc. Primary Casting and Alumina Bauxite smelting Manufacturing of processing of Products finished products semis Remelting Products in Fabricator use (stocks) Internal scrap - from customers & Remelter scrap Recycler Varying lifetimes: trade
Slide 35: Bringing it all together – what can we optimize?
Bringing it all together – what can we optimize? Within each plant and across the portfolio • Promoting sale of Recycling Friendly Alloys Commercial excellence Customers • Portfolio high-grading – advanced speciality and Scrap and • greener products with premiums sourcing Procuring a broad range of
Slide 36: What is RFA? – Recycling-friendly alloys
What is RFA? – Recycling-friendly alloys Moving product mix and customer mix towards lower HMC and higher 'recyclability' Billets look the same, but have different chemical composition 36
Slide 37: What is hot metal cost?
Burn off What is hot metal cost? HMC= cold metal purchase price – net metal loss Net metal loss = burn-off + net dross generation Cold metal Melting Output for casting PCS Process scrap Primary ingot Dross • Primary ingot has low melt loss, but is the most expensive material • More mixed scrap types
Slide 38: Hydro's competitive advantages in recycling are difficult to replicate
Hydro’s competitive advantages in recycling are difficult to replicate Complex value-chain optimization from A to Z Scrap sourcing Scrap shredding Large Recycling Technical and Multiple product Customer focus - and partnering and sorting asset base metallurgical segments advanced products competence
Slide 39: Material management
07 Material management Helene Bøe, Material Manager AM Recycling
Slide 40: What is Material Management
What is Material Management Scrap Management and Optimization 40
Slide 41: What is Material Management
What is Material Management Scrap Management and Optimization Raw material costs represent ~80% of the annual spend in recyclers 41
Slide 42: What is Material Management
What is Material Management Target state Establish “fit for future” organization with robust operating procedures and communication lines to relevant stakeholders, enabling reduced Material Management HMC and increased use of PCS by developing our capabilities in scrap Core Team Plant Manager receiv
Slide 43: What can we impact
What can we impact Scrap Purchase Quality Control Segregation and Storage Consumption Mix Production Sequence Dross Handling RFA Share 43
Slide 44: Scrap Purchase: Need, Availability, Cost, Quality
Scrap Purchase Need Availability Cost Quality HalOpt NP High level optimisation for guidance to scrap procurement and production. 44
Slide 45: Value of aluminium metal - HMC
Value of aluminium metal - HMC Hot Metal Cost Market Price Dross Burn-Off Sorting Value from Dross Master Alloy 45
Slide 46: What can we impact
What can we impact Scrap Purchase Quality Control Segregation and Storage Consumption Mix Production Sequence Dross Handling RFA Share 46
Slide 47: What can we impact
What can we impact Scrap Purchase Quality Control Segregation and Storage Consumption Mix Production Sequence Dross Handling RFA Share 47
Slide 48: How do we mix raw materials to achieve desired quality at lowest cost?
Consumption Mix How do we mix raw materials so that we achieve desired quality at lowest possible cost? APICS Optimizer Day to day optimizer for in-house stock blending. Data input is critical and will feed into HALOpt program. 48
Slide 49: What can we impact
What can we impact Scrap Purchase Quality Control Segregation and Storage Consumption Mix Production Sequence Dross Handling RFA Share 49
Slide 50: What can we impact
What can we impact Scrap Purchase Quality Control Segregation and Storage Consumption Mix Production Sequence Dross Handling RFA Share 50
Slide 51: What can we impact
What can we impact Scrap Purchase Quality Control Segregation and Storage Consumption Mix Production Sequence Dross Handling RFA Share 51
Slide 52: Introduction: Recycling in a historic perspective
Introduction Recycling in a historic perspective Background Today: Recycling with accelerated growth • In the past most alloys were defined based on what make sense from a smelter perspective. 606035 becomes the “solution” for • Limits for trace elements (impurities) are Filiform Corrosion therefore
Slide 53: HalOpt & HMC
HalOpt & HMC The impact of trace element changes is not intuitive and varies with IMS and plant Small steps must be done to unlock big step A long way to the goal 6060 Non-RFA 6060 light-RFA Optimization Zn Mn Cu Mn Zn HMC Starting Step 1: Step 2: Step 3: Step 4: Step 5: New HMC point Zn Mn Mn Zn Cu
Slide 54: Hydro CIRCAL
Hydro CIRCAL Recycled post-consumer aluminium with a low carbon footprint
Slide 55: Hydro provides products with low emissions
Hydro provides products with low emissions Kilos of CO2e emissions per kilo aluminium 20.3 Primary aluminium produced on renewable energy 15.1 ~25 percent of the world global primary average 8.6 Recycled aluminium from Hydro 6.7 Less than 5.7 ~13 percent for 75R, and 3.0 3.0 4.0 4.0 ~4 percent for 1
Slide 56: Hydro CIRCAL: Setting a new standard in recycled content
Hydro CIRCAL Setting a new standard in recycled content 1. At least 75% post-consumed recycled aluminium* 2. VERIFIED by DNV based on traceability and quality principles developed by Hydro 3. Max 1.9 kg CO e/kg Aluminium 2 4. CONFIRMED by an Environment Product Declaration *Post Consumer Scrap: Scra
Slide 57: There are two sources of aluminium for recycling
There are two sources of aluminium for recycling They might look the same, but their CO2 footprint is different Process scrap & fabrication scrap Post-consumer scrap Has never become Had a previous a product useful life
Slide 58: Pre-consumer scrap vs post-consumer scrap
6.7 kg CO2e* / kg aluminium Pre-consumer scrap Post-consumer scrap is aluminium material that has has been used by consumers and has already had never been used in a product a useful life as a product
Slide 59: Where does the carbon footprint of Hydro CIRCAL come from?
Where does the carbon footprint of Hydro CIRCAL come from? 25 % primary aluminium and process scrap • Hydro CIRCAL is made from minimum 75% recycled post-consumer scrap • When a material has been in use in a product, reaches the end of its life and gets recycled, it starts a second life. This materi
Slide 60: On the doorstep to implement HySort
On the doorstep to implement HySortTM HySort LIBS Sorting Technology ✓ Can separate different aluminium alloys ✓ Enabler to avoid downgrading of mixed scrap ✓ Enabler for Hydro CIRCAL 75R and 100R ✓ Performance targets reached for LIBS technology pilot in Dormagen ✓ Evaluating scrap sources and deve
Slide 61: The leading low-carbon aluminium company with a clear path to zero
Aluminium Metal 2030: The leading low-carbon aluminium company with a clear path to zero 1 Preferred provider. The preferred provider of high-quality and low-carbon aluminium to customers who value transparency 2 World-class producer. A good neighbour with world-class safe, efficient, reliable and c
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