Norsk Hydro : Bank of America ML Conference, 19 May 2021.pdf (pdf, 1.67MB)

Hilde Merete Aasheim 19 May 2021

• Green transition in major regions requires more aluminium, e.g., higher aluminium content in EVs
• Higher end-product adaption of aluminium due to recyclability
• Focus on ESG could phase significant upside for green products
• Primary aluminum based on renewable power will qualify under the EU taxonomy criteria
• • No thresholds have been included for recycling. All secondary aluminium is taxonomy compliant.
• Increasing cost of supply towards next decade due to new projects with higher capex based on hydropower
• Restrictions on supply growth, especially in China, reduce risk of sustained over-capacity next decade

2

Seizing opportunities where our capabilities match megatrends

1

1 Strengthen position in low-carbon aluminium

2 Diversify and grow in new energy

	Renewable energy		Batteries		Hydrogen

3

New improvement target of NOK 7.4 billion by 2025 and commercial ambition of NOK 1.5 billion adjusted for Rolling1)

Improvement program

2020 accumulated improvement

NOK billion

Corporate Energy

AM	0.1
0.6	0.0

NOK 3.7
billion	2.0 B&A

1.0

Extrusions

2025 accumulated improvement potential by year

NOK billion

													7.4
2021 target of 5.1 BNOK				0.6		0.2
accumulated improvements
	0.6					2.7
						1.0
					0.9
					0.5
				1.0
				1.4									4.8
								B&A ramp-up2)
		0.8							Improvements
		0.5
	2019A	2020A	2021	2022	2023	2024	2025	Total

Commercial ambition

Additional NOK 1.5 billion in market and customer growth opportunities by 2025

1.5
	•	New products including
20%
	greener brands, HyForgeTM

• Market share gains in dedicated segments

• Margin expansion in new

80%		customer projects
			Aluminium Metal
			Extrusions
Ambition

1)	Achieved NOK 0.5 biliion of 1.1 billion 2025 target by 2020, and represented a commercial ambition of NOK 0.5 billion	4
2)	Alunorte and Paragominas ramp-up to full nameplate capacity

Google Hudson Square in Hydro REDUXA facade…

• 450 tonnes of Hydro REDUXA
• 1.3 million square feet office space

• produced at Hydro's Sunndal plant in Norway

• Hydro REDUXA capacity of ~415 kt, ~20% of Hydro total

Strong Q1 sales for Hydro REDUXA

Hydro REDUXA sales1) k tons

~75

~45

7

FY 2019

FY 2020

Q1 2021

• Increased Hydro REDUXA demand in Q1

Photo: Field Condition	5
1) Excluding Rolling