Norsk Hydro ASA · OSL:NHY
Norsk Hydro ASA — Hydro — Investor Presentation (May 2009)
102 slides from Norsk Hydro ASA's investor presentation, May 2009
Slide 1: Investor presentation May 2009
Investor presentation May 2009 (1)
Slide 2: Table of contents
Table of contents Company overview 3 Forward-looking statements Certain statements included within this announcement contain forward- Industry & market outlook 10 looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of managem
Slide 3: Company overview
Company overview (3)
Slide 4: Hydro
Hydro A focused aluminium and energy company Aluminium • 21 000 employees Metal • Operations in more than 40 countries • Turnover Aluminium • 2006: NOK 99 billion Products • 2007: NOK 94 billion • 2008: NOK 89 billion • Underlying EBIT • 2006: NOK 10.2 billion Energy • 2007: NOK 9.9 billion • 2008:
Slide 5: Hydro's value proposition
Hydro’s value proposition • Solid long-term fundamentals for aluminium • Industry-leading captive power position • World-class upstream growth projects • Leading positions in attractive extrusion segments • Competence in metallurgy and project execution – basis for solar growth • Strong operational
Slide 6: Strong aluminium industry position
Strong aluminium industry position Integrated Emerging Market Mining & Metal Manufacturing 7 946 Alumina Primary Rolled 5 878 Extrusions Production in 1 000 tonnes* Other 4 692 4698 4 494 4 062 4 007 3 250 3 151 2 372 2 296 1 750 1 489 1 298 1 192 970 985 958 910 639 598 593 353 328 182 230 114 163
Slide 7: Hydro in the aluminium value chain
Hydro in the aluminium value chain Primary aluminium production Aluminium in products, recycling Bauxite/ Primary Metal Semi alumina Energy aluminium products fabrication Remelt 65% equity in Solid long-term 1.75 mill. mt/year 2.9 mill. mt/year 1.6 mill. mt/year 502 000 ton alumina coverage of power
Slide 8: Hydro improves cost position
Hydro improves cost position Business operating cash cost USD/tonne 3,400 Dynamic cost curve 3,000 • Falling input costs 2,600 • Production curtailments and capacity closures 2,200 1,800 1,400 Accumulated tonnage (1 000 tonnes) 1,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 BOC Q1 20
Slide 9: Capital employed – upstream focus
Capital employed – upstream focus Energy 6% Bauxite & Alumina March 31, 2009 Automotive NOK million 10% 3% Bauxite & Alumina 5 597 Primary Aluminium 23 220 Commercial 6 319 Other and eliminations (1 105) Extrusion Aluminium Metal 34 031 11% Rolled Products 8 644 Extrusion 5 777 Automotive 1 781 Othe
Slide 10: Industry & market outlook
Industry & market outlook (10)
Slide 11: Healthy long term demand for aluminium
Healthy long term demand for aluminium • Properties lead to increased market share • Aluminium intensive urbanisation and infrastructure • Climate challenge – aluminium as part of the solution • Recyclability more important with high energy price • Beyond current downturn • Return to trend growth of
Slide 12: Unprecedented fall in aluminium price
Unprecedented fall in aluminium price USD per tonne Primary aluminium LME USD/tonne NOK/tonne 3 400 Q1 2009 average 1 397 9 593 3 200 Q1 2009 end 1 405 9 555 3 000 2 800 Q4 2008 average 1 882 12 690 2 600 Q4 2008 end 1 497 10 397 2 400 Average 2008 2 620 14 446 2 200 2 000 Average 2007 2 662 15 638
Slide 13: Declining upstream sales volumes
Declining upstream sales volumes Hydro’s sales Q1 2009 vs Q4 2008 Extrusion ingot Sheet ingot Foundry alloys Standard ingot Total 45% 0% -6% -15% -14% Hydro’s sales Q1 2009 vs Q1 2008 Extrusion ingot Sheet ingot Foundry alloys Standard ingot Total 65% -22% -27% -36% -45% (13)
Slide 14: Declining downstream sales volumes
Declining downstream sales volumes Hydro’s sales Q1 2009 vs Q4 2008 Automotive Rolled Products Extrusion Eurasia Building Systems Extrusion Americas Structures Precision Tubing Total 10% -6% -7% -9% -10% -10% -10% Hydro’s sales Q1 2009* vs Q1 2008 Automotive Rolled Products Extrusion Eurasia Buildin
Slide 15: Rapidly increasing inventories
Rapidly increasing inventories USD per tonne Days 3 500 110 100 3 000 90 2 500 80 70 2 000 60 50 1 500 40 1 000 30 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Aluminium inventories (days of consumption)* LME 3 month average *IAI and LME reported stocks,
Slide 16: China remains balanced
China remains balanced 1 000 tonnes Primary / alloyed Semis Fabricated Scrap Total • Swift response to drop in demand 250 • Production curtailments • Strategic government purchases 200 Net import 150 100 • Shanghai price currently significantly higher than LME 50 • Encourages primary aluminium impor
Slide 17: Significant curtailments announced
Significant curtailments announced Announced capacity curtailments in percent of 2008 production 35% 30% 29% 28% 25% 22% 21% 20% 15% 11% 10% 10% 5% 0% Hydro C entury Aluminium C halco Alcoa UC Rusal Rio Tinto Source: CRU / company reports / Hydro estimates (17)
Slide 18: Announced capacity curtailments
Announced capacity curtailments 12% China ~3.5* million tonnes 3% Alcoa C entury Rest of world ~3.4 million tonnes 7% Hydro Total ~6.9 million tonnes Rio Tinto 51% 6% UC Rusal Other C hina 7% 14% World production and consumption (excl. China), annualized Production C onsumption 27 000 26 000 25 000
Slide 19: Transport and construction hit hard by downturn
Transport and construction related areas are hit hard by the economic downturn Share of semis consumption • Transportation, construction and housing is weak “all over” C onsumer Electrical 11% durables 6% • Engineering markets follow Packaging 9% construction and transport into Machinery & equipment
Slide 20: Commodity prices weakening
Commodity prices weakening Crude oil – Brent (USD/bbl) Coal – CIF ARA (USD/mt) Petroleum coke FOB USG (USD/tonne) 160 245 550 140 210 500 120 175 450 100 140 400 80 105 350 60 70 300 40 35 250 20 0 200 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Power – EEX Germany (EU
Slide 21: Climate policies – effects on aluminium
Climate policies – effects on aluminium Demand-effect • Changed semi’s and end-product prices • Aluminium vs. steel and plastics when CO2 emissions get a price tag • Regulatory measures Supply – effects on production cost and long-term prices • Cost per tonne CO2 increases over time • Direct carbon
Slide 22: 2009 outlook
2009 outlook • Aluminium prices to remain low • Limited forward visibility • Indications of slowing LME inventory growth • No substantial pick-up in demand • Primary aluminium consumption excluding China could decline up to 15-20% from 2008 • Chinese consumption in line with 2008 • Industry input co
Slide 23: Aluminium Metal
Aluminium Metal (23)
Slide 24: Aluminium Metal
Aluminium Metal • Strong focus on operational performance and improvements • Maintain competitive cost position • Leverage strong market and customer position for metal products • Leading in technology – HAL4e development • Mature and realize growth projects in metal and alumina (24)
Slide 25: Strong growth in alumina production
Strong growth in alumina production Hydro’s equity alumina production Alunorte, Brazil 1 000 tonnes • World’s largest alumina refinery • Third expansion completed in 2008 • Capacity: 6.3 million tonnes of 3 500 alumina (100%) • 34% owned by Hydro 3 000 2 500 Alpart, Jamaica 2 000 • Capacity: 1.65 mi
Slide 26: Well covered with alumina
Well covered with alumina CAP positions Hydro for further growth in metal Alumina coverage Percent 140% 120% LME-linked contracts 100% 80% Equity from CAP* 60% 40% Equity 20% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 *CAP is illustrated with the first stage plus two expansi
Slide 27: Aluminium Metal Production System
Aluminium Metal Production System AMPS is not a project – it’s a way of operating! Standardized work processes Defined customer and supplier relationships Optimized flow A systemized method for development of operational excellence and continuous improvements • Product quality • Cost Dedicated teams
Slide 28: Strong performance culture
Strong performance culture TRI per million hours work1) Kg CO2e / kg aluminium2) 10 6 8 5 4 6 3 4 2 2 1 0 0 2005 2006 2007 2008 1990 2005 2006 2007 2008 2010E kwh / Kg aluminium3) Specific emissions kg fluorine / tonne aluminium4) 16.0 1.2 15.0 1.0 0.8 14.0 0.6 13.0 0.4 12.0 0.2 11.0 0.0 1993 1998 2
Slide 29: Aluminium Metal production facilities
Aluminium Metal production facilities North America Europe: • 115 000 mt smelting capacity in 1 smelter • 1 390 000 mt primary smelting capacity in 8 smelters • 316 000 mt remelt capacity in 5 remelters • 368 000 mt remelt capacity in 6 remelters Middle East: • Qatalum 1 smelter under construction (
Slide 30: Casthouse products add value
Casthouse products add value Leading supplier in Europe – growing globally Own production Primary foundry alloys Extrusion ingot Remelting & recycling Wire rod Sheet ingot Commercial agreements Casthouse (30)
Slide 31: Develop technology to fulfill ambitions
Develop technology to fulfill ambitions 2007 2009 2020 HAL300 technology HAL4e technology Beyond HAL4e • Low diffuse emissions • Improved energy efficiency • Zero PFC concept • Good working environment • Benchmark GHG • Simpler CO2 capture • SU4, Qatalum • Prepared for CO2 • New materials and concen
Slide 32: Qatalum on target
Qatalum on target • 73% complete by end-Q1 2009 • 19 000 workers by end-Q1 2009 • On target for scheduled start-up 2009/2010 • First decile position on cash cost curve (32)
Slide 33: Qatalum facts
Qatalum facts Capacity Investment • Smelter: 585 000 tonnes per year • Estimate ~USD 5.6 billion (100%) • 704 cells in 2 double-lined potrooms • Satisfactory project economics at LME 1 900 USD/tonne • Anode plant and cast houses • Engineering Procurement Construction (EPC) contract • 1 250 MW power
Slide 34: Qatalum: well positioned to serve all major markets
Qatalum: well positioned to serve all major markets Qatar Hydro off-take agreement for 100% of Qatalum products • First metal by end of 2009 • Building up to a sales volume to ~600 000 tonners per year through 2010 • Targeting markets in Asia, Europe and the U.S. • Product focus: extrusion ingot, pr
Slide 35: Aluminium Products
Aluminium Products (35)
Slide 36: Aluminium Products
Aluminium Products • Extrusion and Building Systems – build on proven business concept, selective growth in Europe, Middle-East and Asia • Rolled Products – focus on margin management and cash generation (36)
Slide 37: Distinct businesses with leading positions
Distinct businesses with leading positions Diverse markets – each with strong Hydro presence Rolled Products Extrusion Automotive (49% of revenues) (40% of revenues) (11% of revenues) Rolled Products Extrusion Eurasia Precision Tubing Extrusion Americas Automotive Structures Building Systems Reporti
Slide 38: Rolled products consumption
Rolled products consumption Falling demand in main markets1) Western Europe North America Asia Pacific Million tonnes Million tonnes Million tonnes 7 7 15% 7 15% 15% 13% 13% 13% 6 6 6 11% 11% 11% 5 9% 5 9% 5 9% 7% 7% 7% 4 4 5% 4 5% 5% 3 3% 3 3% 3 3% 1% 1% 1% 2 2 -1% 2 -1% -1% -3% -3% 1 -3% 1 1 -5% -
Slide 39: Main products and applications
Main products and applications Rolled Products, 4 strong business units Foil • Flexible packaging and technical applications Litho • Offset plates for the printing industry Packaging & Building • Cans, packaging and architecture Automotive, Heat Exchanger & General Engineering • Transport, heat exch
Slide 40: Extruded products consumption
Extruded products consumption1) Falling demand in Europe, American demand still depressed Europe North America Million tonnes % growth (RHS) Million tonnes Million tonnes 3.5 3.5 8% 8% 3.0 4% 3.0 4% 2.5 0% 2.5 0% 2.0 -4% -4% -8% 2.0 -8% 1.5 -12% 1.5 -12% 1.0 -16% 1.0 -16% -20% -20% 0.5 -24% 0.5 -24%
Slide 41: Main products and applications
Main products and applications Innovative solutions Creative Technology TRIANGEL Germany The new stairway system SANITEC OTIS (41)
Slide 42: Building Systems
Building Systems Hydro the market leader in Europe, worldwide presence CHELSEA Customer INTERCOM, NY CHELSEA Customer INTERCOM, NY DIQUE IV – Puerto Madero Larnaka Airport, Cyprus Foch 94, Beirut Q-Tower, Manila (42)
Slide 43: Development in energy efficiency
Development in energy efficiency Reducing energy use in buildings InventSkin® multiple layer façade concept • Several energy-efficiency functions • Reduces primary energy and CO2 emissions • Cooperation between Hydro building Systems and Ascent Solar (43)
Slide 44: Automotive applications
Automotive applications Global leadership in Precision Tubing Structures in a leading position in crash management systems • Bumper beams • Crash boxes • Longitudinals • Windshield frames • Sub frame components • Add-on frames/solutions (44)
Slide 45: Energy
Energy (45)
Slide 46: Energy
Energy • Expand solid captive power position • Long-term power sourcing at predictable costs • Solar growth based on competence in metallurgy and project execution (46)
Slide 47: Strong power position
Strong power position – self-generated and renewable energy sources Share of self-generated power *) Share of renewable energy origin Percent Percent 50% 80% 45% 70% 40% 60% 35% 50% 30% 25% Industry avg 40% 2007 **) 20% 30% 15% 20% 10% 10% 5% 0% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 48: Long-term power sourcing at competitive prices
Long-term power sourcing at competitive prices Indexation of power supplies • Power consumption ~26 TWh in Percent Metal in 2008 100% 90% • Self-generation and long-term 80% 70% contracts ensures predictability 60% 50% 40% • Limited commodity exposure 30% • Indexation to LME and coal with time- 20%
Slide 49: Developing Norwegian hydropower assets
Developing Norwegian hydropower assets Development potential Normal production capacity per region and terms • 0.5 – 1 TWh • Utilizing existing concession areas 3.0 0.5 and infrastructure Telemark • Investment NOK 1.2 – 2.5 billion 2044- from 2011 onwards No reversion 2049 • Normal production today
Slide 50: Power portfolio management
Power portfolio management – significant volatility in price and volume Quarterly production and spot price • Norwegian power portfolio TWh NOK/MWh optimized versus market 3.5 550 500 • Production and market prices 3.0 450 strongly impacted by hydrological 400 conditions 2.5 350 • ”Dry” versus ”wet”
Slide 51: Nordic power market – forward curves
Nordic power market – forward curves NOK/MWh 650 600 550 500 450 400 350 300 250 200 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 End Q4 2007 End Q1 2008 End Q2 2008 End Q3 2008 End Q4 2008 End Q1 2009 (51)
Slide 52: Solar
Solar Industrial ambitions within Solar NorSun (18%) – mono-crystalline wafers • Total investments NOK 500 million • Hydro largest industrial owner • 155 MW production on Årdal, started 2008 • Seeking polysilicon production opportunities Ascent Solar (35%) – thin-film • Total investments NOK 260 mil
Slide 53: Secured opportunities across the value chain
Secured opportunities across the value chain Investments of around NOK 800 million Polysilicon Ingot Wafer Cell Module System/ Installation HyCore (49%) NorSun (18%) Hydro Building Ascent (35%) Systems Metallurgy Industrialization Internal synergies / building systems (53)
Slide 54: First quarter results 2009
First quarter results 2009 (54)
Slide 55: Highlights
Highlights • 20% drop in realized aluminium price vs Q4 • Steep fall in demand • Firm corrective measures taken • Cut in primary aluminium production: 500 000 tonnes • Workforce reductions: 4 500 • Qatalum 73% complete, on schedule for 2009/2010 start-up Hydro well positioned in demanding environmen
Slide 56: Firm corrective measures
Firm corrective measures • Production curtailments and capacity adjustments • Manning reductions • Cost improvement programs • Capital expenditures and operating capital reductions • Additional measures will be implemented according to market development (56)
Slide 57: Upstream production curtailments
Upstream production curtailments 1 000 tonnes 2 000 1 750 1 500 29% ~1,750 1 250 22% ~1,350 1 000 ~1,250 750 ~1,050 50% ~1,000 500 250 ~ 500 0 Alumina (metal equivalents) Primary aluminium Remelt End-2008 capacity Run rate Q3 2009 (57)
Slide 58: Hydro's cash cost to decline
Hydro’s cash cost to decline Cost* in USD per tonne indexed, 2008=100 • Production curtailments at high-cost smelters • Input costs decreasing into 2009 ~(30)% • Alumina 2-3 months lag • Carbon costs at high level into first half, decreasing in second half • Fuel oil, caustic soda, coal, freight and
Slide 59: Flexible production system
Flexible production system Primary aluminium Remelt 1 000 tonnes 1 000 tonnes 2,000 2,000 1 920 380 1,750 1,600 420 1,600 290 1,200 1,250 1,250 1,200 1,040 1 000 100 500 900 800 800 500 400 400 0 0 2008 Q1 2009* 2011 2008 Q1 2009* 2011 C urtailed primary capacity available for restart Available reme
Slide 60: Significant manning reductions
Significant manning reductions 5,000 1,450 4,500 4,500 4,000 3,500 1,700 3,000 2,500 2,000 1,500 750 1,000 600 500 0 Q3 2008 Q4 2008 Q1 2009 Q2-Q4 2009E Total Reduction in number of permanent and temporary employees and contractors (60)
Slide 61: Focus on preserving cash
Focus on preserving cash Capital expenditures, NOK billion Capital expenditures reductions* 12.3 ~11.5 • 2008-2009: 40% • 2009-2010: 15% 6.0 CAP alumina project postponed, production ~4.5 start-up in 2012 subject to market conditions 2007 2008 2009E 2010E Investments Qatalum funded by Hydro Qatalum
Slide 62: Underlying EBIT per segment
Underlying EBIT per segment NOK million 2 032 399 1 619 1 490 270 475 370 535 868 1,255 322 81 592 953 932 (493) 435 416 -140 -239 -239 -476 -257 -176 2008 2009 Aluminium Metal Aluminium Products Energy C orporate and eliminations (62)
Slide 63: Key financials
Key financials Year NOK million Q1 2009 Q4 2008 Q1 2008 2008 Revenue 16 854 21 368 21 529 88 643 Underlying EBIT (493) 868 2 032 6 009 Items excluded from underlying EBIT (1 105) (3 975) (853) (4 815) Reported EBIT (1 598) (3 106) 1 179 1 194 Financial income / (expense) 1 473 (4 487) 998 (5 026) In
Slide 64: Items excluded from underlying EBIT
Items excluded from underlying EBIT Year NOK million Q1 2009 Q4 2008 Q1 2008 2008 Underlying EBIT (493) 868 2 032 6 009 Unrealized effects power contracts 580 1 481 551 (768) Unrealized LME and other derivative effects (708) (2 249) (1291) (1 434) Metal effect, Rolled Products (662) (407) (113) (235
Slide 65: Bauxite & Alumina
Bauxite & Alumina Key figures Q1 operating results Q1 Q4 Q1 • Significantly lower alumina price 2009 2008 2008 due to low LME Alumina production, kmt 578 684 509 • 50% of Alpart production curtailed Alunorte, NOK million 1) (68) 225 30 Other, NOK million (69) (65) (20) in January Underlying EBIT, NO
Slide 66: Primary Aluminium
Primary Aluminium Key figures Q1 operating results Q1 Q4 Q1 • Lower realized LME price 2009 2008 2008 • Curtailments starting to affect volumes Primary production, kmt 397 442 433 Total casthouse production, kmt 433 494 556 • Lower alumina and carbon costs Total sales volumes, kmt 440 460 568 • Redu
Slide 67: Commercial
Commercial Key figures Q1 operating results Q1 Q4 Q1 • Weak sales volumes and low production 2009 2008 2008 • Significant negative currency effects Remelted production, kmt 89 93 141 Total metal products sales, kmt 573 610 788 Underlying EBIT, NOK million (421) (79) 409 Underlying EBIT Outlook NOK m
Slide 68: Rolled Products
Rolled Products Key figures Q1 operating results Q1 Q4 Q1 • Volumes significantly down 2009 2008 2008 • Declining margins External sales volumes, kmt 191 213 253 • Positive contribution from cost savings Underlying EBIT, NOK million (53) 89 147 Underlying EBIT Outlook NOK million 652 (53) • Continue
Slide 69: Extrusion
Extrusion Key figures Q1 operating results Q1 Q4 Q1 • Volumes further down 2009 2008 2008 • Building Systems less affected by downturn External sales volumes, kmt 96 103 130 • Positive contribution from cost savings Underlying EBIT, NOK million (88) (88) 225 Underlying EBIT Outlook NOK million 668 (
Slide 70: Automotive
Automotive Key figures Q1 operating results Q1 Q4 Q1 • Low volumes 2009 2008 2008 • Considerable cost improvement External sales volumes, kmt 17 18 31 Underlying EBIT, NOK million (115) (235) (2) Underlying EBIT Outlook NOK million (326) (115) • No signs of market recovery • Additional demanning and
Slide 71: Energy
Energy Key figures Q1 operating results Q1 Q4 Q1 • Declining spot prices 2009 2008 2008 • High seasonal production Power production, GWh 2 477 2 813 2 850 Net spot sales, GWh 838 1 130 969 Southern Norway spot price (NO1), 341 433 289 NOK/MWh Underlying EBIT, NOK million 416 592 399 Underlying EBIT
Slide 72: Cash flow development
Cash flow development Q1 Year NOK billion 2009 2008 Operations (1.1) 2.9 Investments* (0.7) (8.8) Divestments - 5.8 Dividends and share buybacks - (6.5) Financing 1.7 0.5 Net cash flow (0.2) (6.0) * Excluding investments debt financed directly in Qatalum (72)
Slide 73: Financial position
Financial position Net cash / (debt) in NOK billion Secured financing: ~NOK 20 billion 10.8 • New EUR 750 million in 3-year bank facility 8.7 • New NOK 1 billion in commercial paper • USD 1.7 billion in a multi-currency revolving facility maturing in 2014 3.5 1.7 • NOK 1.3 billion short-term • Curre
Slide 74: Priorities in 2009
Priorities in 2009 • Proactive corrective measures • Cost reductions and margin management • Working capital and counterparty risk • Production curtailments • Cash focus – maintain financial flexibility • Operational excellence • Qatalum execution (74)
Slide 75: Additional information
Additional information (75)
Slide 76: Financial policy
Financial policy Maintain investment-grade rating March 31, Dec 31, NOK billion 2009 2008 • Currently: BBB- (S&P), Baa1 (Moody’s), both with negative outlook Cash and cash equivalents 3 .1 3.3 Short-term investments 1.7 1.6 • Competitive access to capital and important Short-term debt (2.0) (1.2) fo
Slide 77: Hedging policy
Hedging policy Hydro to remain exposed to LME prices • Partly natural hedge through alumina contracts and power contracts Operational LME hedging • Three months forward • Managing customers’ pricing • Marked-to-market valuations of positions result in unrealized gain/losses Currency exposure, mainly
Slide 78: Price and currency sensitivities
Price and currency sensitivities Aluminium price sensitivity +/- 100 USD per tonne NOK/USD sensitivity +/- 0.1 NOK 900 850 200 800 140 700 650 100 600 100 500 400 0 300 EBIT Net income 200 100 0 0 EBIT Net income Financial items Net income • Annual sensitivities -100 -70 • Aluminium price sensitivit
Slide 79: Revenue impact of aluminum price / Input commodities
Revenue impact of aluminum price Bauxite & Alumina Primary Aluminium Alumina price to Primary Aluminium Operational LME hedging • ~13% of 3-month LME price per tonne alumina • Realized price lags 3-month LME price by ~3-4 • ~One month lag months Input commodities Bauxite & Alumina Primary Aluminium
Slide 80: Underlying income Q1 2009
Underlying income Q1 2009 NOK million Reported income Adjustments Underlying income Aluminium Metal (2 198) 1 723 (476) Aluminium Products (566) 309 (257) Energy 420 (4) 416 Corporate and other 746 (922) (176) Total EBIT (1 598) 1 105 (493) Financial income (expense), net 1 473 (1 478) (5) Income (l
Slide 81: Underlying income Q4 2008
Underlying income Q4 2008 NOK million Reported income Adjustments Underlying income Aluminium Metal (1 725) 2 160 435 Aluminium Products (2 946) 2 706 (239) Energy 276 315 592 Corporate and other 1 288 (1 207) 81 Total EBIT (3 106) 3 975 868 Financial income (expense), net (4 487) 4 629 142 Income (
Slide 82: Underlying income Q1 2008
Underlying income Q1 2008 NOK million Reported income Adjustments Underlying income Aluminium Metal 716 539 1 255 Aluminium Products 995 (625) 370 Energy 404 (5) 399 Corporate and other (936) 944 8 Total EBIT 1 179 853 2 032 Financial income (expense), net 998 (854) 144 Income continuing operations
Slide 83: Reported and underlying results
Reported and underlying results Hydro Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Reported EBIT 3 672 3 001 2 013 338 1 179 708 2 414 (3 106) (1 598) 9 025 1 194 Underlying EBIT 2 883 2 886 2 686 1 697 2 032 1 619 1 490 868 (493) 10 153 6 0
Slide 84: Items excluded from underlying results 2009
Items excluded from underlying results 2009 Q1 NOK million 2009 Unrealized derivative effects on currency contracts (Alunorte) Bauxite and Alumina (11) Rationalization charges and closure costs Bauxite and Alumina 210 Rationalization charges and closure costs Primary Aluminium 96 Unrealized derivati
Slide 85: Items excluded from underlying results 2008
Items excluded from underlying results 2008 Q1 Q2 Q3 Q4 Year NOK million 2008 2008 2008 2008 2008 Unrealized derivative effects on currency contracts (Alunorte) Bauxite and Alumina (16) (106) 203 271 352 Unrealized derivative effects on LME related contracts (Alunorte) Bauxite and Alumina 83 (8) (13
Slide 86: Operating segment information – Underlying EBIT
Operating segment information Underlying EBIT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Bauxite & Alumina 257 298 100 27 10 70 93 160 (137) 681 334 Primary Aluminium 1 901 1 790 1 720 1 142 872 628 909 257 123 6 552 2 666 Commercial 254 2
Slide 87: Operating segment information – Underlying EBITDA
Operating segment information Underlying EBITDA Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Bauxite & Alumina 262 302 104 31 14 74 98 166 (131) 699 352 Primary Aluminium 2 396 2 266 2 190 1 628 1 328 1 114 1 398 797 592 8 479 4 637 Commerci
Slide 88: Operating segment information – EBIT
Operating segment information EBIT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Bauxite & Alumina 303 322 243 144 (57) 184 24 (585) (335) 1 011 (433) Primary Aluminium 1 710 1 921 1 621 1 030 479 712 1 254 (625) (304) 6 281 1 820 Commercial
Slide 89: Operating segment information – EBITDA
Operating segment information EBITDA Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Bauxite & Alumina 308 326 247 148 (53) 188 29 (68) (330) 1 029 96 Primary Aluminium 2 205 2 397 2 091 1 516 935 1 198 1 743 760 165 8 208 4 635 Commercial 294
Slide 90: Operating segment information – Total revenue
Operating segment information Total revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Bauxite & Alumina 1 108 1 192 929 948 698 931 1 281 1 500 785 4 176 4 411 Primary Aluminium 10 377 9 876 8 920 7 991 8 562 9 263 8 657 7 665 5 966 37 16
Slide 91: Operating segment information – External revenue
Operating segment information External revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Bauxite & Alumina - - - 3 - - - - - 3 - Primary Aluminium 594 684 602 670 574 582 546 387 328 2 551 2 090 Commercial 10 663 9 893 8 954 8 441 8 200 9
Slide 92: Operating segment information – Internal revenue
Operating segment information Internal revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Bauxite & Alumina 1 108 1 192 929 944 698 931 1 281 1 500 785 4 173 4 410 Primary Aluminium 9 782 9 192 8 318 7 321 7 988 8 680 8 111 7 278 5 637 34
Slide 93: Share of profit in equity accounted investments
Operating segment information Share of profit /(loss) in equity accounted investments Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Bauxite & Alumina 238 228 219 169 (37) 180 57 (520) (266) 854 (320) Primary Aluminium (3) 96 56 (28) (40) 92 3
Slide 94: Depreciation, amortization and impairment
Operating segment information Depreciation, amortization and impairment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2007 2008 Bauxite & Alumina - - - - - - - - - - - Primary Aluminium 490 471 465 473 452 481 484 1 295 463 1 899 2 711 Commercial 40 17
Slide 95: Income statement
Income statement Q1 Q4 Q1 Year NOK million 2009 2008 2008 2008 Revenue 16 854 21 368 21 529 88 643 Share of the profit (loss) in equity accounted investments (413) (1 154) (94) (915) Other income, net 134 161 112 865 Total revenue and income 16 574 20 375 21 547 88 593 Depreciation, amortization and
Slide 96: Balance sheets
Balance sheets March 31, December 31, September 30, June 30, March 31, NOK million 2009 2008 2008 2008 2008 Cash and cash equivalents 3 128 3 333 3 583 7 985 11 735 Short-term investments 1 652 1 648 4 454 2 112 2 444 Receivables and other current assets 16 077 18 833 19 744 19 967 19 871 Inventorie
Slide 97: Pensions
Pensions December 31, December 31, Weighted average December 31, December 31, NOK million 2008 2007 assumptions at end of year 2008 2007 Projected benefit obligation (23 440) (20 584) Discount rate 4.7% 5.0% Fair value of plan assets 12 386 15 579 Expected return on plan assets 5.7% 6.3% Termination
Slide 98: Aluminium Metal – operational data
Aluminium Metal – operational data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Volumes and prices 2007 2007 2007 2007 2008 2008 2008 2008 2009 Realized premium above LME (USD/mt) 329 353 344 346 362 360 340 289 255 Realized premium above LME (NOK/mt) 2 056 2 143 2 001 1 934 1 973 1 868 1 822 1 964 1 752 Bauxite & Al
Slide 99: Aluminium Metal – operational data
Aluminium Metal – operational data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Volumes and prices 2007 2007 2007 2007 2008 2008 2008 2008 2009 Commercial: Remelt production (1 000 mt) 190 179 163 153 141 145 121 93 89 Sale of metal products from 771 738 699 680 724 753 667 571 548 own production (1 000 mt) Sale of t
Slide 100: Aluminium Products and Energy – operational data
Aluminium Products – operational data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2007 2007 2007 2008 2008 2008 2008 2009 Rolled Products external shipments (1 000 tonnes) 264 262 253 246 253 259 240 213 191 Extrusion external shipments (1 000 tonnes) 134 135 123 117 130 133 122 103 96 Automotive external shipm
Slide 101: Investor Relations in Hydro
Investor Relations in Hydro t: +47 22 53 92 80 Stefan Solberg Head of Investor Relations m: +47 917 27 528 e: [email protected] t: +47 22 53 25 22 Stian Hasle Investor Relations Officer m: +47 977 36 022 e: [email protected] t: +47 22 53 92 24 Irene Raposo Investor Relations Assistant m:
Slide 102: www.hydro.com
www.hydro.com