Norsk Hydro ASA · OSL:NHY
Norsk Hydro ASA — Investor Day (December 2002)
15 slides from Norsk Hydro ASA's investor day presentation, Dec 9, 2002
Slide 1: Norsk Hydro ASA Capital Markets Day 2002
Norsk Hydro ASA Capital Markets Day 2002 President and CEO Eivind Reiten Oslo, December 9, 2002
Slide 2: Today's main messages
2 Today’s main messages ! We deliver on our commitments ! 2003 plans show performance improvements under unchanged market conditions ! Active portfolio management to continue ! Attractive potential in all three Business Areas 40338_1 - 12.2002 - *2 - Hydro Media
Slide 3: Key levers for value creation
3 Key levers for value creation Portfolio Value Performance creation People 40338_1 - 12.2002 - *3 - Hydro Media
Slide 4: We deliver: Active portfolio management
4 We deliver: Active portfolio management ! Strategic acquisitions " VAW Aluminium " Technal " SDFI ! Divestments – more than NOK 6 billion " KFK assets " Flexible Packaging " Oil and gas assets ! Major investment projects on track " Grane, Sunndal, Alunorte, Qafco 40338_1 - 12.2002 - *4 - Hydro Med
Slide 5: Strengthening the core businesses
5 Strengthening the core businesses DFFII D SSD Dyynno GGAA o BBi SSAA ioop poo llyy m me errs M s Go S Seeaaffo Oil Oil and and UK U Oiill KO oood Others d Others Energy nd aan Gaass dG Energy un Allu A orrttee no Aluminium Aluminium Agri Agri Trevo a ck l e xP K F yn oc KKFFKK W h W ll hnnaa VVAA
Slide 6: We deliver: Maintained financial strength
6 We deliver: Maintained financial strength Ratio 0.71 0.7 0.6 0.5 0.43 0.41 0.4 0.28 0.3 0.2 0.1 0 1999 2000 2001 30.09.02 Net interest-bearing debt divided by shareholders' equity plus minority interest 40338_1 - 12.2002 - *6 - Hydro Media
Slide 7: We deliver: 2002 CROGI target
7 We deliver: 2002 CROGI target Normalized CROGI 10% Target 9% 9% Normalized to reflect 8% 8% long-term commodity 7% prices and a stable 6% exchange rate – 5% not normalized for 4% volumes and margins 3% 2% 1% 0% 2000 2001 2002 * Cash Return on Gross Investments 40338_1 - 12.2002 - *7 - Hydro Media
Slide 8: We deliver: Safety performance
8 We deliver: Safety performance Reported injuries per million hours, Hydro employees 45 40 35 30 25 20 15 10 5 0 1996 1997 1998 1999 2000 2001 Q1 Q2 Q3 Oct Target end 2002 VAW 40338_1 - 12.2002 - *8 - Hydro Media
Slide 9: Share price performance
9 Share price performance 460 440 420 400 380 360 340 NHY 320 300 280 260 240 220 OSEBX 200 180 2001-01-09 2001-04-09 2001-07-08 2001-10-06 2002-01-04 2002-04-04 2002-07-03 2002-10-01 2002-12-30 Source: Reuters 40338_1 - 12.2002 - *9 - Hydro Media
Slide 10: Challenging market environment
10 Challenging market environment ! Delayed global economic recovery " Europe weak – particularly Germany " US recovery with doubtful strength " Political uncertainty may slow down recovery further ! High, but volatile oil prices, weak aluminium market, fertilizer prices below long-term trend ! Sign
Slide 11: Oil and Energy: Strong production growth
11 Oil and Energy: Strong production growth ! 2002 production target being met; new target for 2003 is 510 000 barrels per day ! Target of 8% average annual growth confirmed and extended one more year to 2006 ! On track to meet F&D cost target of 5 dollars per barrel in 2003 ! Rigorous examination o
Slide 12: Aluminium: Value creation through better performance
12 Aluminium: Value creation through better performance ! Creating a world class company by successfully integrating two strong organizations ! Extensive improvement efforts lead to higher cost reduction targets " End 2003 target up from EUR 200 to 250 million ! Major investment projects on track !
Slide 13: Agri: The industry leader
13 Agri: The industry leader ! Building on position as global leader in selected industry segments ! Continue productivity improvements ! Remain alert to opportunities created by industry consolidation 40338_1 - 12.2002 - *13 - Hydro Media
Slide 14: CROGI target for 2003
14 CROGI target for 2003 Normalized CROGI 10% Target 9% 9% ! Higher oil and gas 8% production 8% 7% ! Aluminium improvement 6% programme 5% 4% ! Agri leveraging strong 3% market positions 2% ! Divestment of under- 1% performing assets 0% 2000 2001 2002 2003 * Cash Return on Gross Investments 40338_1
Slide 15: Moving forward
15 Moving forward ! Delivering on 2002 return target; higher target set for 2003 ! Significant potential in all three Business Areas " Oil and Energy: Several years of high production growth " Aluminium: Improved performance as world class player " Agri: Leveraging strong market positions ! Continue