Aluminium Products. Svein Richard Brandtzæg, Executive Vice President and Head of Aluminium Products September 25, 2008 (1)

Transcription

1 Aluminium Products Svein Richard Brandtzæg, Executive Vice President and Head of Aluminium Products September 25, 2008 (1)

2 Key messages Major restructuring completed Improvements despite weaker markets Growth based on competitive advantage Leading through technology (2)

3 Underlying RoaCE last 12 months 5.3% Underlying RoaCE 16 July 2007-June Extrusion Rolled Products Automotive -8 Capital employed June 30, 2008: NOK 17.0 billion (3)

4 Aluminium Products seasonality Underlying EBIT (NOK million)* H H H H H Volume (1 000 mt)* H H H H H *Including EBIT and volumes from divested activities (4)

5 (5) Extrusion

6 Solid market position in Europe Market share % 24 % 20 % 20 % 16 % 16 % 12 % 12 % 8 % 8 % 4 % 4 % 0 % Hydro APA* Alcoa Sapa 0 % Sapa Hydro** Alcan Aleris Best estimates shown for competitor market share. * Alcan/ Pechiney/ Alusuisse ** Market share Hydro ~15% included extruded products from Automotive. Hydro ~13% for EE/HBS (6)

7 Industry leadership in safety Comparison with Extrusion Alcan, Alcoa and SAPA in TRI* Sapa (old) Alcan Alcoa Extrusion Eurasia * Total recordable injuries per million hours worked (7)

8 Safety focus helps operational performance Correlation between HSE and manufacturing performance Efficiency Tonnes/man-year Safety TRI* * Total recordable injury - recorded per million hours worked (8)

9 Excellent productivity development Extrusion Eurasia Jan-Jun Tonnes/man-year Cost/kg (9)

10 Efficiency improvement Extrusion Americas Q2 08 Q1 08 Q4 07 Q3 07 Q2 07 Q1 07 Q4 06 Q3 06 Q2 06 Q1 06 FTEs* * FTE= full-time employees (10)

11 Business development Expral, Spain Spanish market share increased from 6% to 9%* Strong growth potential in industrial segment Successful integration ongoing * internal estimates (11)

12 Growth opportunities Extrusion Eurasia Extrusion Americas (12)

13 Building Systems CHELSEA Customer INTERCOM, NY CHELSEA Customer INTERCOM, NY DIQUE IV Puerto Madero Larnaka Airport, Cyprus Foch 94, Beirut Q-Tower, Manila (13)

14 Three strong brands (14)

15 Business development Alumafel, Spain Spanish market share from 7% to 12%* Lift to leading position in Spain Alumetal, Italy Efficient logistics and commercial network Strengthen Italian market position Closer to the customer * internal estimates (15)

16 Encouraging new opportunities (16)

17 Development in energy efficiency InventSkin multiple layer façade concept Several energy-efficiency functions Reduces primary energy and CO 2 emissions Our next step is (17)

18 Great outlook (18)

19 (19) Rolled Products

20 Four strong business units Foil Litho Flexible packaging and technical applications Offset plates for the printing industry Packaging & Building Cans, packaging and architecture Automotive, Heat Exchanger & General Engineering Transport, heat exchangers and special industry (20)

21 Competitive performance 2007 RoaCE* 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0% Alcoa* Hydro Rolled Products Elval Novelis *Source: Annual Reports and Hydro analysis; Internal calculation for the rolled segments (21)

22 Upgrading product portfolio Continuous annealing line Start-up: November 2008 (22)

23 (23) Automotive

24 Global player and advanced technology Precision Tubing Structures Global leadership in Precision Tubing Structures in a leading position within crash management systems (24)

25 (25) Leading through technology

26 Meeting the climate challenge Significant reduction in emissions since 1999 Increased recycling competence Kg CO 2 e / Kg aluminium* ** * Average specific emissions from Hydro s Norwegian smelters ** Qatalum (26)

27 Focus Nevada Solar 1 64 MW solar field Now being duplicated at La Risca, Spain (27)

28 R&D focus and integration Energy Rolled Products Extrusion Automotive R&D Solar R&D Rolling R&D Extrusion R&D Precision Tubing (28)

29 (29) Summing up

30 Key messages Executing further growth potentials in Extrusion Eurasia and Building Systems Achieving margin leadership in European Rolled Product industry Taking advantage of fast-growing market for energy-efficient buildings (30)

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