1 ALUMINIUM EXTRUSIONS A GLOBAL GROWTH OPPORTUNITY! JOHN G. THUESTAD BUSINESS AREA PRESIDENT SEPTEMBER 2013 SAPA EXTRUSION EUROPE
2 3 CORE BUSINESS PILLARS OF A HEAVYWEIGHT COMPANY IN A LIGHTWEIGHT INDUSTRY Value-added profiles Profile-based building systems Precision tubing
3 THE 50 YEAR JOURNEY FROM A LOCAL TO A GLOBAL ENTREPRENEUR 1963 2005 Hydro builds tubing plant in Suzhou, China its first wholly owned plant in Asia 2007 Aluminium profiles joint venture between Sapa and Alcoa: the world s largest aluminium profile company is created Sapa opens first production facility in Vetlanda, Sweden 1967 Sapa makes first sales of manufactured profiles 1971 Sapa opens first extrusion company outside Sweden, in the Netherlands 1974 Sapa opens sales office in Lillestrøm, Norway Hydro signs agreement with Harvey Aluminum to build its first aluminium operation in Karmøy, Norway 2000 Sapa gets its first foothold in America through the acquisition of Anodizing Hydro builds first extrusion plant outside Norway in Wales, UK 1986 Hydro doubles extrusion capacity with acquisition of five plants in Europe from Alcan 1997 Hydro moves into South America after acquiring extrusion company Acro Extrusaso de Metais in Itu, Brazil 2009 Sapa acquires Indalex plants in USA and Canada) 2010 Sapa acquires 65% of the extrusion company Vijalco and forms joint venture with Vietnamese Ben Thanh Group 2011 Strengthening in Asia after joint venture with Chalco and acquisition of extrusion plant outside Shanghai Net sales: NOK 43 billion 23,000 employees Today
4 NEW SAPA IN FIGURES Presence in more than 40countries World leader in aluminium solutions 100+ production units 5 business areas NOK ~43 billion sales 23,000employees
5 TOGETHER WE ARE A STRONGER GLOBAL EXTRUSION COMPANY $7B Revenue 20 casthouses 63 Surface Treatment units 1.5MT ALU Processed 188 presses
6 DRASTIC REDUCTION OF CONSUMPTION IN EUROPE SINCE 2007 Per Capita Consumption - Europe (Kilos) Extrusions Consumption Europe (ktons) 22,5-12% 19,9 3.439-18% 2.806 2007 2010 2007 2012 A further decline of 2% is expected for 2013
7 HOW BALANCED IS THE SUPPLY & DEMAND IN EUROPE? Europe Italy Spain 2x 4x 5x Demand 3 000 ktons Capacity 5 500kTons Demand 250 ktons Capacity 1 000 ktons Demand 150 ktons Capacity 750 ktons In Europe there is currently close to 2 times more extrusion capacity than consumption Italy has 4 times more capacity in relation to their local market consumption. Consumption in Italy has declined with 45% since 2007. Spain has 5 times more capacity in relation to their local market consumption. Consumption in Spain has declined with 60% since 2007 Source: European Aluminium Association, Sapa estimates
8 MEGATRENDS DRIVES NEW OPPORTUNITIES Demographic Change Urbanization Climate Change Resource Scarcity Increasing Mobility By 2050 the global population will reach 9.8 billion people. By 2050 70% of the global population will be living in cities. By 2030 the global temperature will increase with 0,5 to 1.5 C. Proven global oil reserves are expected to last for another 45 years. Global car production is expected to be 120 million cars by 2025. Housing Mobility aids & medical Renewable energies Housing Transportation Recycling Renewable energies Transportation Renewable energies Transportation Oil & Gas Transportation Electronics Renewable energies
9 FOR WHICH ALUMINIUM HAS THE BEST VALUE PROPOSITION 1 2 3 4 Light Strong Long Lasting Ductility 5 6 7 8 Conductivity Corrosion resistant Reflective 100% Recyclable
10 A BEHAVIOUR CHANGE IS NEEDED FROM THE INDUSTRY TO BETTER MONITIZE THE VALUE PROPOSITION Focus more on product and market development Better communication on the aluminium value proposition Educate our customers to use aluminium in a more cost effective way Act as one industry to capitalize on the opportunities
WE ARE UNIQUELY POSITIONED IN EUROPE WITH UNMATCHED CAPABILITIES... Magnor Finspång 25% Vetlanda Birtley Tønder Sjunnen Cheltenham Bedwas Tibshelf Hoogezand Harderwijk Drunen Uphusen Rackwitz Trzcianca Lichtervelde Raeren Chrzanow MARKET SHARE SAPA EXTRUSIONS EUROPE (VOLUME) Perfialsa Pinon Luce Chateauroux Albi Toulouse Puget Offenburg Bellenberg Nenzing Bolzano Feltre Ornago Ziar Kofem Chișineu-Criș Avintes Miranda Navarra La Roca Atessa Pinto La Selva Fossanova
PROVIDING TAYLOR MADE CUSTOMER SOLUTIONS AND PRODUCTS Lighting Heat sink for LED lights Wind Power Helihoist platform Marine Heli platform & Hangar Consumer Electronics Laptops & Notebooks Engineered Products Printer Stand