Norsk Hydro ASA · OSL:NHY
Norsk Hydro ASA — Q4 2009 Earnings Presentation
96 slides from Norsk Hydro ASA's earnings presentation, February 2010
Slide 1: Investor presentation Q4 February/March 2010
Investor presentation Q4 February/March 2010 (1)
Slide 2: Table of contents
Table of contents Company overview 3 Forward-looking statements Market outlook 10 Certain statements included within this announcement contain forward- looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management’s plans
Slide 3: Company overview
Company overview (3)
Slide 4: Hydro
Hydro A leading integrated aluminium and energy company • 19 000 employees Primary Metal • Operations in 40 countries Metal Metal • Turnover Markets Markets • 2007: NOK 94 billion • 2008: NOK 89 billion Rolled • 2009: NOK 67 billion Products • Underlying EBIT • 2007: NOK 9.9 billion Extruded Extrude
Slide 5: Hydro's value proposition
Hydro’s value proposition • Leading integrated aluminium and energy company with global reach and attractive positions across the value chain • Upstream cost position to be improved by the world-class Qatalum smelter • Strong operational performance and cost focus • Financial discipline • Long-term
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 Midstream, recycling Aluminium in products Primary Metal Rolled Extruded Energy Metal Markets Products Products • Revenue in NOK • Revenue in USD • EUR and USD • Margin business • Margin business • Cost in USD – alumina, business • Regi
Slide 8: Industry cash cost curve
Industry cash cost curve Business operating cash cost USD/tonne 3 600 3 200 2 800 2 400 2 000 1 600 1 200 800 Accumulated capacity World ex China (1 000 tonnes) 400 0 0 4 000 8 000 12 000 16 000 20 000 24 000 28 000 BOC 2008 BOC 2009 * Source: CRU, BOC 2008: LME 2 834 USD/tonne, USDNOK 5.16 BOC 2009
Slide 9: Capital employed – upstream focus
Capital employed – upstream focus NOK million December 31, 2009 Primary Metal 31 778 Energy, 7% Metal Markets 2 403 Rolled Products 7 575 Extruded Extrusion 4 940 Products, 11% Automotive 818 Other and eliminations 169 Extruded Products 5 927 Energy 3 405 Rolled Products, 15% Other and eliminations
Slide 10: Market outlook
Market outlook (10)
Slide 11: Indefinite ideas in aluminium
Indefinite ideas in aluminium Healthy long-term demand • Properties lead to increased market share • 1/3 the density of steel • Aluminium intensive urbanisation and infrastructure • Recyclability • Climate challenge – aluminium as part of the solution • 5% of original energy consumption • Recyclabil
Slide 12: High growth rates expected next 10 years
High growth rates expected next 10 years World semis consumption in important sectors: average annual growth rate 2009-2018 6.5% 1 000 tonnes / % annual growth 25 000 2009 8.1% 2018 20 000 6.9% 15 000 8.7% 10 000 7.2% 7.8% 2.4% 4.0% 5.6% 5 000 0 Transport C onstruction Packaging Foil Stock Electrica
Slide 13: Aluminium price rebounds, USD weakens
Aluminium price rebounds, USD weakens USD per tonne 3 400 Primary aluminium LME USD/tonne NOK/tonne 3 200 Q4 2009 average 2 035 11 567 3 000 Q4 2009 end 2 242 12 989 2 800 Q3 2009 average 1 837 11 209 2 600 Q3 2009 end 1 890 10 886 2 400 Average 2009 1 702 10 575 2 200 2 000 Average 2008 2 620 14 45
Slide 14: Stable volumes
Stable volumes Seasonal decline offset by restocking in Q4 2009 Hydro’s downstream sales Q3 2009 vs Q2 2009 Total downstream sales Rolled Extrusion Building Extrusion Automotive Precision Q4 09 vs Q3 09 Acc 09 vs Acc 08 Products Eurasia Systems Americas Structures Tubing 9% 4% 5% 3% 2% -2% -11% -18%
Slide 15: Inventory days at high level
Inventory days at high level USD per tonne Days 3 300 130 120 2 800 110 100 2 300 90 80 1 800 70 60 1 300 50 40 800 30 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Aluminium inventories (days of consumption)* LME 3-month average *IAI and LME reported
Slide 16: China returns to balance in primary aluminium
China returns to balance in primary aluminium 1 000 tonnes 600 550 • Swift response to drop in demand 500 • Production curtailments 450 400 • Strategic government purchases Net import 350 • Demand incentives 300 250 200 • Production up in 2009 150 100 • Restart of curtailed capacity 50 • New capacit
Slide 17: Market imbalance continues outside China
Market imbalance continues outside China World outside China (annualized), 1 000 tonnes 30 000 C onsumption Production • Demand down 18% in 2009 28 000 against 2008 26 000 24 000 • Annualized imbalance of 22 000 2.3 million tonnes end-2009 20 000 18 000 • Imbalance expected to continue in 2010, but
Slide 18: Share of semis consumption
Share of semis consumption 2008 – 50 million tonnes 2009 – 46 million tonnes C onsumer C onsumer durables durables Electrical 6% Electrical 7% 12% 13% Packaging Packaging 10% 10% Machinery Machinery & equipment & equipment 10% Foil stock 10% Foil stock 8% 8% Other 7% Other 7% Transport Transport 25%
Slide 19: Commodity prices stabilizing
Commodity prices stabilizing 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 2010 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Power
Slide 20: Strong power prices, reservoirs below normal
Strong power prices, reservoirs below normal South Norway price (NO1) Water reservoir levels in South Norway (NO1) NOK/MWh Percent 600 100 2008 2009 2008 2009 90 500 80 70 400 60 300 50 40 200 30 20 100 10 0 0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 1 4 7 10 13 16 19 22 25 28 31 34 37 40
Slide 21: Nordic power market – forward curves
Nordic power market – forward curves NOK/MWh 400 350 300 250 200 150 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 End Q4 2008 End Q2 2009 End Q3 2009 End Q4 2009 (21)
Slide 22: 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 23: 2010 market outlook
2010 market outlook • World outside China • Demand growth likely, but level uncertain • Supply/demand imbalance expected to continue • Curtailed capacity unlikely to restart • China • Balanced in primary aluminium • Increasing scrap imports • Limited new capacity • Partly offset by new curtailments
Slide 24: Fourth quarter results 2009
Fourth quarter results 2009 (24)
Slide 25: Highlights
Highlights • Stable demand, seasonal declines partly offset by restocking • Result slightly up • Upstream: Higher realized aluminium prices, but weak alumina and trading results • Downstream: Result improves for continued operations, boosted by Building Systems • Energy: Result up on higher producti
Slide 26: Solid measures executed in 2009
Solid measures executed in 2009 • Operating capital reduced by NOK 5.8 billion • Capital expenditure plans cut by 50% Hydro • Manning reduced by 4 500 • Redesigned and reduced staff and support functions • Cash costs reduced significantly Primary • Primary aluminium production curtailed by 26% Metal
Slide 27: Status curtailed upstream capacity
Status curtailed upstream capacity Curtailed capacity Curtailment Plant in 2009, tonnes completed Status • Restart unlikely due to current market Neuss balance and without long-term competitive Primary 180 000 of 230 000 Q2 2009 power prices aluminium • Outcome of German support scheme uncertain • T
Slide 28: Operational priorities going forward
Operational priorities going forward Primary Metal • Cost reductions • USD 100 per tonne reduction in primary aluminium conversion cost by end-2011 Metal Markets • Margin management Rolled Products and Extruded Products • Margin management • Capture possibilities • Cost control Hydro • Working capit
Slide 29: Underlying EBIT
Underlying EBIT 2 032 1 619 1 490 868 -493 -618 -651 -793 NOK million Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Primary Metal 938 795 906 93 (185) (895) (760) (717) Metal Markets 363 139 (41) 242 (245) 196 (15) (20) Rolled Products 147 240 170 93 (53) (28) 51 57 Extruded Produc
Slide 30: Key financials
Key financials NOK million Q4 2009 Q3 2009 Q4 2008 Year 2009 Year 2008 Revenue 16 427 16 795 20 665 67 409 88 455 Underlying EBIT (651) (793) 868 (2 555) 6 009 Items excluded from underlying EBIT (287) 1 512 (3 975) 1 148 (4 815) Reported EBIT (938) 719 (3 106) (1 407) 1 194 Financial income / (expe
Slide 31: Items excluded from underlying EBIT
Items excluded from underlying EBIT NOK million Q4 2009 Q3 2009 Q4 2008 Year 2009 Year 2008 Underlying EBIT (651) (793) 868 (2 555) 6 009 Unrealized effects power contracts (318) 54 1 481 198 (768) Unrealized LME and other derivative effects 747 1 508 (2 249) 2 975 (1 434) Metal effect, Rolled Produ
Slide 32: Primary Metal
Primary Metal Q4 Q3 Q4 Key figures 2009 2009 2008 Alumina production, kmt 504 514 685 Primary aluminium production, kmt 332 330 442 Total sales volumes, kmt 459 480 460 Realized LME price, USD/mt 1 804 1 523 2 654 Realized LME price, NOK/mt 10 452 9 480 16 905 Underlying EBIT, NOK million (717) (760
Slide 33: Bauxite, alumina and raw materials
Bauxite, alumina and raw materials Alunorte (34% ownership) Main effects on Q4 result • Alumina refinery, nameplate capacity • Alunorte of 6.3 million tonnes • Loss on hedges • Operational challenges Alpart (35% ownership) • Alumina refinery, nameplate capacity of 1.7 million tonnes - temporarily cu
Slide 34: Metal Markets
Metal Markets Q4 Q3 Q4 Key figures 2009 2009 2008 Remelt production, kmt 133 123 97 Total metal products sales, kmt 605 618 610 Underlying EBIT, NOK million (20) (15) 242 Underlying EBIT Q4 operating results NOK million • Neutral currency effects vs negative 703 (83) effects of NOK 150 million in Q3
Slide 35: Rolled Products
Rolled Products Q4 Q3 Q4 Key figures 2009 2009 2008 External sales volumes, kmt 211 205 213 Underlying EBIT, NOK million 57 51 93 Underlying EBIT Q4 operating results NOK million • Increased volumes in automotive and general engineering 651 26 • Positive impact from cost savings 240 • Seasonal maint
Slide 36: Extruded Products
Extruded Products Q4 Q3 Q4 Key figures 2009 2009 2008 External sales volumes, kmt 126 128 121 Underlying EBIT Extrusion, 122 89 (88) NOK million Underlying EBIT Automotive, (60) 9 (235) NOK million Underlying EBIT, NOK million 68 95 (332) Underlying EBIT Q4 operating results NOK million • Expected s
Slide 37: Energy
Energy Q4 Q3 Q4 Key figures 2009 2009 2008 Power production, GWh 1 929 1 682 2 813 Net spot sales, GWh 486 480 1 130 Southern Norway spot price (NO1), 296 249 433 NOK/MWh Underlying EBIT, NOK million 295 217 649 Underlying EBIT Q4 operating results NOK million • Higher spot prices 1 865 1 240 • High
Slide 38: Reduced operating capital supports cash flow
Reduced operating capital supports cash flow Q4 2009 NOK million Q4 2009 Year 2009 • Positively affected by realization Net income (loss) (587) 416 Depreciation 786 3 494 of LME-positions ~NOK 1 billion Operating capital 52 5 814 • Qatalum investments Other adjustments 1 780 (5 178) Net cash flow fr
Slide 39: Pensions
Pensions NOK million December 31, 2009 December 31, 2008 • Reduced benefit obligation Projected benefit obligation (17 922) (23 440) • Reduced rate of compensation Fair value of plan assets 12 234 12 386 • Divestment of businesses and settlements Termination benefits and other (626) (764) • Positive
Slide 40: Financial position
Financial position Net cash / (debt) in NOK billion • Net cash of NOK 2.0 billion end-2009 3.5 • Net pension liability after tax included in 3.0 adjusted debt reduced by NOK 4.0 billion due to updated actuarial assumptions 2.4 2.0 Dec 31, Jun 30, Sep 30, Dec 31, NOK billion 2008 2009 2009 2009 Net c
Slide 41: Proposed 2009 dividend NOK 0.50 per share
Proposed 2009 dividend NOK 0.50 per share • Strong commitment to cash return to shareholders • Increased market and earnings visibility compared to beginning of 2009 • Cash capacity • Average three year payout ratio is 46% • Dividend policy is 30% payout over the cycle • Represents payout of ~NOK 60
Slide 42: Priorities
Priorities • Solid operations • Stay close to markets • Reposition upstream • Financial flexibility business • Proactive corrective • Qatalum ramp-up measures (42)
Slide 43: Business overview
Business overview (43)
Slide 44: Primary Metal
Primary Metal (44)
Slide 45: Strong growth in alumina production
Strong growth in alumina production Alunorte, Brazil Hydro’s equity alumina production • World’s largest alumina refinery 1 000 tonnes • Third expansion completed in 2008 3 500 • Capacity: 6.3 million tonnes of Alpart Alunorte C AP alumina (100%) • 34% owned by Hydro 3 000 2 500 Alpart, Jamaica • Ca
Slide 46: Favorable alumina position
Favorable alumina position Alumina coverage 140% 120% 100% LME-linked contracts 80% Equity from CAP* 60% 40% Equity 20% 0% 2009 2011 2013 2015 2017 2019 Strategy Bauxite • Improve cost position Hydro’s share of Alunorte production covered by 17% • Grow with CAP project equity bauxite, remainder on l
Slide 47: Aluminium Metal Production System
Aluminium Metal Production System Standardized work processes Defined customer and supplier relationships Optimized flow A systemized method for development of operational excellence and continuous improvements • Product quality Dedicated teams • Cost • Safety Positive results • Process stability in
Slide 48: 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 2009 1990 2005 2006 2007 2008 2009 2010E kwh / Kg aluminium3) Specific emissions kg fluorine / tonne aluminium4) 15.0 1.2 1.0 14.0 0.8 13.0 0.6 0.4 12.0 0.2 11.0 0.0 1998 2
Slide 49: Ambitious plan to cut cost by 100 USD/tonne
Ambitious plan to cut cost by 100 USD/tonne 90% to be realized by end-2011 compared to 2009 100% • Accelerated operational performance 90% defined within Primary Metal’s 80% production management system: • Improved current efficiency 70% • Reduced power consumption 60% • Reduced anode consumption 50
Slide 50: Primary Metal production facilities
Primary Metal production facilities North America Europe: • 115 000 mt smelting capacity in 1 smelter • 1 270 000 mt primary smelting capacity in 8 smelters • 540 000 mt remelt capacity in 8 smelters Middle East: • Qatalum ramping up during 2010 • Hydro share: ~300 000 mt Australia: • 238 000 mt pri
Slide 51: Aiming for the next leap in primary technology
Aiming for the next leap in primary technology Next- generation smelter Future technology HAL 300 HAL4e vision • 13.3 kWh/kg • 12.8 kWh/kg • Significantly lower kWh/kg • 1.6 tonne CO2/tonne aluminium • 1.5 tonne CO2/tonne aluminium • 0 tonne CO2/tonne aluminium • Low diffuse emissions • Benchmark GH
Slide 52: Qatalum start-up on time
Qatalum start-up on time • Production started December 20, 2009 • Project 95% complete by end-2009 • On target for full production by Q4 2010 • First decile position on cash cost curve (52)
Slide 53: Qatalum start-up
Qatalum start-up Earnings Ramp-up schedule • Build-up costs in 2009 and into 2010 Production in 1 000 tonnes on 100% basis, • Depreciated over ~20 years annualized • Marginal tax implications 600 • At current forward prices - 500 • Earnings negative in 2010 • No dividend expected short term 400 Proj
Slide 54: Qatalum facts
Qatalum facts Capacity • Smelter: 585 000 tonnes per year • 704 cells in 2 double-lined potrooms • Anode plant and cast houses • 1 350 MW power plant • Possible expansion to 1 200 000 tonnes per year • Hydro’s proprietary technology, designed for • Low specific energy consumption • High labor produc
Slide 55: Metal Markets
Metal Markets HYDRO
Slide 56: Strong midstream position
Strong midstream position Leading supplier in Europe – growing globally Primary Extrusion production ingot Remelting Primary Casthouse foundry & recycling alloys Commercial Sheet agreements ingot (56)
Slide 57: Supply network Europe
Supply network Europe • Capacity in Europe • 1.3 mill tonnes of primary metal 1) Product customer (illustration) • 1.0 mill tonnes of remelting and recycling 2) • 0.6 mill tonnes Qatalum (100%) 3) Primary casthouse • 0.2 mill tonnes of third party metal products Remelters • Flexible multi-sourcing s
Slide 58: Global metal sales from Qatalum in 2010
Global metal sales from Qatalum in 2010 Total 340 000 tonnes: 75% products & 25% standard ingot Planned routes Norwegian System Hydro‘s metal sourcing system Qatalum target markets Southern Barcelona Europe/ Lisboa Mediterranean Livorno/ Istambul Gaeta Izmir Southern US Midwest Europe/ Mediterranean
Slide 59: Rolled Products
Rolled Pfoducts vA \ «aii (59) QQ) HYDRO
Slide 60: Main products and applications
Main products and applications Focus on margin management and cash generation 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, hea
Slide 61: Rolled products consumption
Rolled products consumption 1) Western Europe North America Asia Pacific Million tonnes Million tonnes Million tonnes 7 14% 7 14% 7 14% 6 11% 6 11% 6 11% 8% 8% 8% 5 5% 5 5% 5 5% 4 2% 4 2% 4 2% -1% -1% -1% 3 3 3 -4% -4% -4% 2 -7% 2 -7% 2 -7% -10% -10% -10% 1 1 1 -13% -13% -13% 0 -16% 0 -16% 0 -16% 20
Slide 62: Extruded Products
Extruded Products (62)
Slide 63: Distinct businesses with leading positions
Distinct businesses with leading positions • Leading positions in Extrusion Eurasia Extrusion Eurasia and Building Systems • Strong entrepreneurial spirit, management culture and competence • Product quality and service excellence • Product innovation through strong Extrusion Americas customer relat
Slide 64: Extruded products consumption
Extruded products consumption 1) 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% 0.0 -28% 0.0 -28% 2002 2003 2004 2005 2006 2007 2008 09(
Slide 65: Extrusion
Extrusion A true entrepreneurial driven enterprise • “Mastering” Europe/ gaining market share in the US • Close to customers due to strong regional presence • More then 40 locations in 19 countries • Top product innovation and design Location (65)
Slide 66: Precision Tubing
Precision Tubing Winning in a demanding market • Competence - our proven resource • Strike a new path • Strong global presence (66)
Slide 67: Building Systems
Building Systems Our way to energy neutral & surplus buildings • Strong multi-brand market penetration • World wide sales organization • High performing products • Selective acquisitions • Buildings of tomorrow • Energy saving • Energy gaining • 100% recyclable • Interactive with the user (67)
Slide 68: Buildings of tomorrow
Buildings of tomorrow Hydro the market leader in Europe, worldwide presence Norddeutsche Landesbank, Hannover (Germany) Der Spiegel headquarters, Hamburg (Germany) Vodafone, Lisboa (Portugal) Museum of Art, Stuttgart Havila, Spjelkavik (Norway) Monte Rosa Hut, Switzerland (68)
Slide 69: Energy
Energy (69)
Slide 70: Strong power position
Strong power position – self-generated and renewable energy sources Share of self-generated power* Share of renewable energy Percent Percent 60% 80% 70% 50% 60% 40% 50% 30% 40% 30% 20% 20% 10% 10% 0% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2009E 2012E * Including normal production of eq
Slide 71: Long-term power sourcing at competitive prices
Long-term power sourcing at competitive prices Indexation of power supplies Percent 100% • Self-generation and long-term contracts 90% ensures predictability and robustness 80% 70% • Limited commodity exposure 60% • Indexation to LME and coal with time-lag 50% 40% 30% • NOK and USD the dominant curr
Slide 72: Norwegian power assets represent solid values
Norwegian power assets represent solid values Normal production capacity per region and terms Power production is an integrated part of aluminium production in Norway 3.0 0.5 Normal production today 9.4 Twh Telemark No reversion • Development potential 0.5 – 1 TWh by utilizing 2044- 2049 existing co
Slide 73: Power portfolio management
Power portfolio management – significant volatility in price and volume Quarterly production and spot price TWh NOK/MWh 3.5 550 • Norwegian power portfolio 500 optimized versus market 3.0 450 400 • Production and market prices strongly impacted by hydrological conditions 2.5 350 • ”Dry” versus ”wet”
Slide 74: Solar
Solar NorSun (18%) – mono-crystalline wafers Ascent Solar (35%) – thin-film • Total investments NOK 500 million • Total investments NOK 260 million • Hydro largest industrial owner • Hydro largest owner • 155 MW production on Årdal, started 2008 • Produces thin-film solar cells for integration into
Slide 75: Additional information
Additional information (75)
Slide 76: Financial policy
Financial policy Maintain investment-grade rating Dec 31, Dec 31, Dec 31, NOK billion 2007 2008 2009 • Currently: BBB- (S&P), Baa2 (Moody’s), both with negative outlook Cash and cash equivalents 9.3 3.3 2.5 • Competitive access to capital and important for Short-term investments 2.7 1.6 1.5 Hydro’s
Slide 77: Hedging policy
Hedging policy Upstream • Primarily remain exposed to LME prices • Partly natural hedge through alumina contracts • Operational LME hedging • Three-months forward • Manage customers’ pricing • Currency exposure, mainly USD • Policy of maintaining long-term debt in USD • Partly natural hedge through
Slide 78: Underlying income Q4 2009
Underlying income Q4 2009 NOK million Reported income Adjustments Underlying income Primary Metal (875) 158 (717) Metal Markets 39 (59) (20) Rolled Products 642 (585) 57 Extruded Products (422) 490 68 Energy 297 (2) 295 Other and eliminations (619) 286 (334) Total EBIT (938) 287 (651) Financial inco
Slide 79: Underlying income Q3 2009
Underlying income Q3 2009 NOK million Reported income Adjustments Underlying income Primary Metal (153) (607) (760) Metal Markets 207 (222) (15) Rolled Products 484 (433) 51 Extruded Products 108 (14) 95 Energy 318 (101) 217 Other and eliminations (246) (135) (381) Total EBIT 719 (1 512) (793) Finan
Slide 80: Underlying income Q4 2008
Underlying income Q4 2008 NOK million Reported income Adjustments Underlying income Primary Metal (1 647) 1 740 93 Metal Markets (178) 420 242 Rolled Products (1 779) 1 872 93 Extruded Products (1 167) 834 (332) Energy 654 (5) 649 Other and eliminations 1 010 (886) 124 Total EBIT (3 106) 3 975 868 F
Slide 81: Reported and underlying results
Reported and underlying results Hydro Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2007 2008 2009 Reported EBIT 3 672 3 001 2 013 338 1 179 708 2 414 (3 106) (1 598) 410 719 (938) 9 025 1 194 (1 407) Underlying EBIT 2 883
Slide 82: Items excluded from underlying results - 2009
Items excluded from underlying results - 2009 NOK million (+=loss/()=gain) Q1 2009 Q2 2009 Q3 2009 Q4 2009 2009 Unrealized derivative effects on LME related contracts (alunorte) Primary metal - - (16) 16 - Unrealized derivative effects on currency contracts (alunorte) Primary metal (11) (222) (105)
Slide 83: Items excluded from underlying results - 2008
Items excluded from underlying results - 2008 NOK million Q1 2008 Q2 2008 Q3 2008 Q4 2008 2008 Unrealized derivative effects on LME related contracts (Alunorte) Primary Metal 83 (8) (134) (37) (96) Unrealized derivative effects on LME related contracts Primary Metal 263 (350) (586) 112 (561) Unreali
Slide 84: Items excluded from underlying results - 2007
Items excluded from underlying results - 2007 NOK million Q1 2007 Q2 2007 Q3 2007 Q4 2007 2007 Unrealized derivative effects on LME related contracts (Alunorte) Primary Metal (13) 40 (108) (82) (163) Unrealized derivative effects on LME related contracts Primary Metal (263) (110) (100) 49 (425) Unre
Slide 85: Operating segment information
Operating segment information Underlying EBIT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2007 2008 2009 Primary Metal 2 289 2 172 1 941 1 245 938 795 906 93 (185) (895) (760) (717) 7 646 2 732 (2 556) Metal Markets 135 1
Slide 86: Operating segment information
Operating segment information EBIT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2007 2008 2009 Primary Metal 2 407 2 437 2 033 1 136 215 1 343 1 768 (1 647) (1 837) (537) (153) (875) 8 012 1 679 (3 403) Metal Markets 176 1
Slide 87: Operating segment information
Operating segment information Total revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year Year Year NOK million 20071) 20071) 20071) 20071) 2008 2008 2008 2008 2009 2009 2009 2009 2007 2008 2009 Primary Metal 11 321 10 766 9 894 8 780 8 391 9 814 9 827 8 723 6 186 6 468 6 514 6 319 40 761 36 756 25 486 M
Slide 88: Operating segment information
Operating segment information Internal revenue Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year Year Year NOK million 20071) 20071) 20071) 20071) 2008 2008 2008 2008 2009 2009 2009 2009 2007 2008 2009 Primary Metal 9 862 9 269 8 388 7 384 7 490 8 643 8 750 7 514 5 347 5 384 5 404 5 219 34 904 32 397 21 354
Slide 89: Operating segment information
Operating segment information Depreciation, amortization and impairment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Year Year Year NOK million 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2007 2008 2009 Primary Metal 490 471 465 473 452 481 484 1 295 464 461 451 444 1 899 2 711 1 820 Metal Ma
Slide 90: Income statements
Income statements Q4 Q3 Q4 Year Year NOK million 2009 2009 2008 2009 2008 Revenue 16 427 16 795 20 665 67 409 88 455 Share of the profit (loss) in equity accounted investments (341) (14) (1 154) (809) (915) Other income, net (488) 238 161 107 865 Total revenue and income 15 598 17 019 19 672 66 706
Slide 91: Balance sheets
Balance sheets December 31, September 30, June 30, March 31, December 31, NOK million 2009 2009 2009 2009 2008 Cash and cash equivalents 2 573 2 986 4 860 3 128 3 333 Short-term investments 1 519 1 477 1 439 1 652 1 648 Receivables and other current assets 13 679 14 776 14 988 16 077 18 833 Inventor
Slide 92: Price and currency sensitivities
Price and currency sensitivities Aluminium price sensitivity +/- 100 USD per tonne NOK/USD sensitivity +/- 0.1 NOK 700 250 240 600 600 200 500 470 170 400 150 300 100 200 50 100 0 0 EBIT Net income EBIT Net income • Annual sensitivities • Aluminium price sensitivity is net of aluminium price indexed
Slide 93: Primary Metal – operational data
Primary Metal – operational data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Volumes and prices 1) 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 Realized premium above LME (USD/mt) 1) 326 338 331 330 350 353 328 268 230 230 260 272 Realized premium above LME (NOK/mt) 1) 2 035 2 056 1 928 1 843
Slide 94: Metal Markets – operational data Rolled Products – operational data
Metal Markets – operational data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Volumes and prices 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 Remelt production (1 000 mt) 190 179 163 153 141 145 121 97 89 111 123 133 Sale of metal products from own production (1 000 mt) 771 772 699 680 724 753
Slide 95: Extruded Products – operational data Energy – operational data
Extruded Products – operational data Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Volumes and prices 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 Extrusion external shipments (1 000 mt) 134 135 123 117 130 133 122 103 96 99 104 101 Automotive external shipments (1 000 mt) 43 30 29 28 31 31 26
Slide 96: Investor Relations in Hydro
Investor Relations in Hydro t: +47 22 53 80 99 Stefan Solberg Head of Investor Relations m: +47 917 27 528 e: [email protected] t: +47 977 36 022 Stian Hasle Investor Relations Officer e: [email protected] t: +47 414 02 174 Irene Raposo Investor Relations Assistant e: [email protected]