Aluminium Products - Norsk Hydro · Aluminium Products seasonality 905 765 529 991 361 0 200 400...

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Svein Richard Brandtzæg, Executive Vice President and Head of Aluminium ProductsSeptember 25, 2008

Aluminium Products

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● Major restructuring completed

● Improvements despite weaker markets

● Growth based on competitive advantage

● Leading through technology

Key messages

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Underlying RoaCE last 12 months 5.3%

Underlying RoaCE

-8

-4

0

4

8

12

16 July 2007-June 2008

Extrusion Rolled Products

Capital employed June 30, 2008: NOK 17.0 billion

Automotive

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Aluminium Products seasonality

905765

529

991

361

0 200 400 600 800

1 000

H1 2006 H2 2006 H1 2007 H2 2007 H1 2008

837798

872

833871

700

750

800

850

900

H1 2006 H2 2006 H1 2007 H2 2007 H1 2008

Underlying EBIT (NOK million)*

*Including EBIT and volumes from divested activities

Volume (1 000 mt)*

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Extrusion

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Solid market position in Europe

0 %

4 %

8 %

12 %

16 %

20 %

24 %

Hydro APA* Alcoa Sapa

Best estimates shown for competitor market share.

* Alcan/ Pechiney/ Alusuisse

** Market share Hydro ~15% included extruded products from Automotive. Hydro ~13% for EE/HBS

0 %

4 %

8 %

12 %

16 %

20 %

24 %

Sapa Hydro** Alcan Aleris

Market share

1997 2007

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2007 TRI*

Industry leadership in safety

16.0

5.9

4.53.3

0

2

4

6

8

10

12

14

16

18

Sapa (old) Alcan Alcoa Extrusion Eurasia

* Total recordable injuries per million hours worked

Comparison with Extrusion Alcan, Alcoa and SAPA in 2007

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Safety focus helps operational performance

EfficiencyTonnes/man-year

* Total recordable injury - recorded per million hours worked

SafetyTRI*

Correlation between HSE and manufacturing performance

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Excellent productivity development

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Jan-Jun

Tonnes/man-year Cost/kg

Extrusion Eurasia

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Efficiency improvement

1 500

1 700

1 900

2 100

2 300

2 500

2 700

2 900

Q1 0

6

Q2 0

6

Q3 0

6

Q4 0

6

Q1 0

7

Q2 0

7

Q3 0

7

Q4 0

7

Q1 0

8

Q2 0

8

FTEs*

Extrusion Americas

* FTE= full-time employees

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Business development

Expral, Spain

● Spanish market share increased from 6% to 9%*

● Strong growth potential in industrial segment

● Successful integration ongoing

* internal estimates

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Growth opportunities

Extrusion Eurasia

Extrusion Americas

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CHELSEA Customer INTERCOM, NY CHELSEA Customer INTERCOM, NY

Building Systems

Foch 94, BeirutLarnaka Airport, Cyprus Q-Tower, Manila

DIQUE IV – Puerto Madero

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Three strong brands

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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

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Encouraging new opportunities

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Development in energy efficiency

InventSkin® multiple layer façade concept

● Several energy-efficiency functions●Reduces primary energy and CO2

emissions ●Our next step is …

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Great outlook

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Rolled Products

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● Flexible packaging and technical applications

Packaging & Building

Foil

Litho

Automotive, Heat Exchanger

& General Engineering

Four strong business units

● Transport, heat exchangers and special industry

●Offset plates for the printing industry

●Cans, packaging and architecture

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0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Alcoa* Hydro Rolled Products Elval Novelis

Competitive performance

*Source: Annual Reports and Hydro analysis; Internal calculation for the rolled segments

2007 RoaCE*

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Upgrading product portfolio

Continuous annealing lineStart-up: November 2008

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Automotive

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●Global leadership in Precision Tubing

● Structures in a leading position within crash management systems

Precision Tubing

Global player and advanced technology

Structures

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Leading throughtechnology

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Meeting the climate challenge

0

1

2

3

4

5

6

7

1990 1995 2000 2005 2010**

Kg CO2e / Kg aluminium*

* Average specific emissions from Hydro’s Norwegian smelters

Significant reduction in emissions since 1999 Increased recycling competence

** Qatalum

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Focus – Nevada Solar 1● 64 MW solar field●Now being duplicated at La Risca, Spain

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AutomotiveRolled

Products Extrusion

R&D – focus and integration

Energy

R&DRolling

R&DExtrusion

R&DPrecision Tubing

R&DSolar

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Summing up

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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

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