Presentation from Research Collaborative Tracking Finance for Climate Action Workshop, 1-2 October 2019

1. 5. Aluminium industry perspective
– Hydro as an example
Head of Extra-Financial Reporting Kirsten Margrethe Hovi
OECD Paris 28 October, 2019

2. Norsk Hydro ASA
• BNOK 6.4 improvement ambition
• Restructuring of Rolled Products
• New capital allocation framework
• 10% RoaCE target over the cycle
• Cut CO2 emissions by 30% by 2030
2
Mobilizing for change
Lifting profitability,
driving sustainability

3. Hydro case study: Improving the aluminium footprint
3
6.0
2.6
2.0
1.8
1.4
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
1990 2000 2010 2015 Karmøy Pilot
Emissionsintensity[tCO2eq/tAl]
GHG emissions intensity from electrolysis
0
500
1000
1500
2000
2500
3000
1995 2000 2005 2010 2015
GHG emissions from electrolysis
GHG emissions [t CO2eq] Production [t Al]
Phasing out
Søderberg
technology
Phasing out Søderberg technology
3

4. Hydro’s value chain – and footprint
Bauxite Alumina Energy Primary
Recycling
Rolling
Extrusion
Casting Products
4
Renewable energy
Decent work & social impact
Greener products
CHALLENEGESOPPORTUNITIES
Decent work and social impact
CO2 & other emissionsBiodiversity
Biodiversity WasteWaste

5. All “recycled” metal is EU taxonomy compliant
Post-consumer scrap
5%of energy consumption
Process scrap
105%of energy consumption
Significant difference in footprint compared to primary aluminium:
Source

6. • Access to equity and debt from
the capital market
• Syndicated BUSD 1.7 revolving
credit facility
• Investments normally drawn from
means currently available
Relatively strong financial position
Sustaining capex significant part of total capex
1) Graph excludes (8.2) BNOK in capital employed in Other & Elimination
564MNOK
R&D Investments
35 MNOK
R&D funding received
Enova 1.6 BNOK
for Karmøy Pilot
28 %
31 %
12 %
24 %
3 %
2 % Bauxite & Alumina
Primary Metal
Extruded Solutions
Metal Markets
Rolled Products
Energy
2021-232019 2020
~100 BNOK
in 2018
Capital employed1)
7.6 BNOK
Total investments 2018
67% in EU and Norway
Growth and return-seeking
Sustaining
963
2,724
165
1,047
2,390
280
Bauxite & Alumina
Primary Metal
Extruded Solutions
Metal Markets
Rolled Products
Energy
Investments

7. 7