Tredje kvartal 1 3 2 4 21. oktober (1)
Hovedpunkter Solid drift Høyere realiserte aluminiumpriser, men vedvarende kostnadspress Generelt svakere markeder og lavere sesongmessig etterspørsel Sterkt resultat i Energi Qatalum 41 % ferdig ved utgangen av tredje kvartal i rute for oppstart i 2009/2010 (2)
(3) Marked og utsikter
Kostnadspress på innsatsfaktorer Råolje Brent (USdollar/fat) 160 140 120 100 80 60 40 20 2005 Kull CIF ARA (USdollar/tonn) 200 160 120 80 40 2005 Petroleumskoks FOB (USdollar/tonn) 600 500 400 300 200 2005 Kraft EEX Tyskland (Euro/MWh) 90 80 70 60 50 40 30 2005 Frakt Baltic Dry Index (USdollar) 11 000 9 000 7 000 5 000 3 000 1 000 2005 Kaustisk soda (USdollar/tonn) 1 100 1 000 900 800 700 600 500 400 300 200 2005 Source: Reuters Ecowin/PACE/CMAI (4)
Volatil aluminiumpris USdollar per tonn 3 400 LME (3 måneders snitt) Primæraluminium LME USdollar/ tonn Kroner/ tonn 3 200 LME terminpris 3. kvartal gjennomsnitt 3. kvartal slutt 2 845 2 425 15 202 14 210 3 000 2 800 2. kvartal gjennomsnitt 2. kvartal slutt 2 989 3 122 15 197 15 882 2 600 Gjennomsnitt første ni måneder 2 869 15 038 2 400 Gjennomsnitt året 2 662 15 638 2 200 Gjennomsnitt året 2 594 16 616 2 000 1 800 1 600 2005 2009 2011 2013 Kilde: Reuters Ecowin / Bloomberg, terminkurve per 17. oktober (5)
Terminkurve fortsatt på høyt nivå LMEterminpris, USdollar per tonn 3 000 2 600 2 200 1 800 1 400 2005 2009 2011 2013 1Jan05 1Jan06 1Jan07 1Jan08 17Oct08 (6)
Kina 1 000 tonn 250 Primær Semi Netto import Fabrikert Skrap 200 Netto 150 100 50 0 (50) Eksportavgift på metall og produkter med lav foredlingsgrad Primæraluminium fra midten av og legert primæraluminium fra august Hoveddel av eksport til Asia Netto eksport (100) (150) (200) (250) (300) (350) Energiprisen har økt to ganger i, opp ~100 USdollar per tonn aluminium Nedstenginger er annonsert Kilde: Hydro / Antaike (7)
Utsikter for og 2009 Etterspørselen etter primæraluminium forventes å vokse med 5 % i, lavere vekst forventet i 2009 Fortsatt drevet av Kina Fortsatt svak i Amerika, synkende i Europa Fallende forbruk og økende varelagre Europeisk forbruk av halvfabrikerte produkter forventes lavere i 2009 enn i (8)
Beredskap for svakere markeder Proaktive kostnadskutt og volumreduksjoner Aluminium Metall reduserte omsmeltervolumer Ekstruderte Profiler Eurasia skiftreduksjon med 20 % siden andre kvartal Ekstruderte Profiler Americas Heltidsansatte redusert med 35 % siden tredje kvartal Precision Tubing North America Antall ansatte redusert med 17 % siden fjerde kvartal Automotive Structures Heltidsansatte redusert med 11 % siden fjerde kvartal Restrukturering av virksomheter som leverer utilfredsstillende resultater Opprettholde den solide finansielle stillingen Nøye oppfølging av motpartsrisiko (9)
(10) Resultater og drift
Nøkkeltall Millioner kroner 3. kv 2. kv 3. kv Første ni måneder Første ni måneder Driftsinntekter 21 765 23 980 21 966 67 275 72 665 Underliggende EBIT 1 490 1 619 2 686 5 141 8 454 Poster ekskludert fra underliggende EBIT 924 (911) (673) (840) 233 Rapportert EBIT 2 414 708 2 013 4 300 8 687 Finansinntekter (kostnader) netto (1 980) 443 1 544 (539) 3 078 Skattekostnad (201) (248) (765) (1 183) (3 134) Rapportert resultat fra videreført virksomhet 233 902 2 792 2 578 8 631 Rapportert resultat per aksje fra videreført virksomhet kroner 0,10 0,70 2,20 1,90 6,80 Underliggende resultat per aksje fra videreført virksomhet kroner 0,70 1,00 1,60 2,90 5,10 (11)
Rapportert mot underliggende resultat Millioner kroner 3. kv 2. kv 3. kv Første ni måneder Første ni måneder Rapportert EBIT 2 414 708 2 013 4 300 8 687 Urealiserte effekter kraftkontrakter Urealiserte LME og andre derivateffekter Metalleffekt, Valsede Produkter Vesentlige rasjonaliserings og nedstengingskostnader Nedskrivinger (Gevinst)/tap på avhendelser og annet (1 038) 185 (38) (34) 1 997 (450) (247) (389) 265 298 55 20 35 2 249 (814) (171) (423) 262 (101) (65) 169 144 (641) Underliggende EBIT 1 490 1 619 2 686 5 141 8 454 Valutagevinst (tap) netto (2 015) 298 1 199 (862) 2 180 (12)
Underliggende EBIT per segment Millioner kroner 2 883 2 886 266 369 498 493 2 686 207 2 375 2 374 288 2 182 1 699 2 032 399 1 619 1 490 341 1 333 370 1 255 270 475 535 322 953 932 (257) (349) (50) (140) (239) Aluminium Metall Aluminium Produkter Energi Konsernaktiviteter og elimineringer (13)
Bauksitt og Alumina Nøkkeltall Resultat tredje kvartal Aluminaproduksjon, tusen tonn Alunorte, millioner kroner 1) Annet, millioner kroner 3. kv 589 126 (31) 2. kv 507 66 4 3. kv 512 76 24 Høyere volum fra Alunorte 3oppstart Økt aluminapris Vesentlig økning i energikostnader Underliggende EBIT, millioner kroner 93 70 100 1) Underliggende andel av periodens resultat Underliggende EBIT Millioner kroner 681 174 298 257 100 93 70 27 10 Utsikter Alunorte 3 produksjonsøkning Lavere aluminapris Kostnadspress på innsatsfaktorer (energi og kaustisk soda) Avtale med Vale om CAP aluminaraffineri (14)
Primæraluminium Nøkkeltall Resultat tredje kvartal Primærproduksjon, tusen tonn Total støperiproduksjon, tonn 3. kv 439 563 2. kv 437 553 3. kv 435 525 Høyere aluminiumpris Vesentlig økning i karbonkostnader Økte energikostnader Realisert LMEpris, USdollar/tonn 1) 2 846 2 699 2 597 Realisert LMEpris, kroner/tonn 1) 15 112 14 008 15 512 Underliggende EBIT, millioner kroner 909 628 1 720 Underliggende EBIT Millioner kroner 6 552 2 409 1 901 1 790 1 720 1 140 872 909 628 Utsikter Vedvarende kostnadspress på innsatsfaktorer, forsterket av sterkere USdollar ~80 % av produksjonen som påvirker resultat i fjerde kvartal er priset til ~2 770 USdollar per tonn 1) Realisert pris på flytende metallproduksjon. Prisen som er reflektert i resultatene ligger ytterligere en måned etter prisen på den flytende metallproduksjonen på grunn av omløpshastigheten i varelageret. (15)
Metall og råvarehandel Nøkkeltall Resultat tredje kvartal Produksjon av omsmeltet metall, tusen tonn Totalt salg av metallprodukter, tusen tonn Underliggende EBIT, millioner kroner 3. kv 121 723 (147) 2. kv 145 801 251 3. kv 163 779 309 Lavere produktpremier og sesongmessig lavere volumer Vesentlige tap på sikringsstrategi og i handels og sikringsvirksomheten på grunn av volatile markeder Underliggende EBIT Millioner kroner 946 513 409 278 308 254 251 105 Utsikter Svakere markeder Volatile resultater i handels og sikringsvirksomheten (147) (16)
Valsede Produkter Nøkkeltall Resultat tredje kvartal Eksternt salg, tusen tonn 3. kv 240 2. kv 259 3. kv 254 Sesongmessig lavere volumer Vedvarende stabile marginer Underliggende EBIT, millioner kroner 175 241 136 Underliggende EBIT Millioner kroner 562 563 262 241 194 175 136 147 Utsikter Etterspørsel vil falle mer enn normale sesongmessige svingninger Vedvarende kostnadspress på innsatsfaktorer (31) (17)
Ekstruderte Profiler Nøkkeltall Resultat tredje kvartal Eksternt salg, tusen tonn Underliggende EBIT, millioner kroner 3. kv 122 239 2. kv 133 292 3. kv 123 201 Sesongmessig lavere volumer Vedvarende solide resultater i Europa Positivt bidrag fra oppkjøp Underliggende EBIT Millioner kroner 852 756 292 245 227 225 239 201 179 Utsikter Dempede europeiske markeder, spesielt i SørEuropa Fortsatt svakt amerikansk marked (18)
Automotive Nøkkeltall Resultat tredje kvartal Eksternt salg, tusen tonn Underliggende EBIT, millioner kroner 3. kv 26 (92) 2. kv 31 2 3. kv 29 (49) Sesongmessig volumnedgang fra allerede lavt nivå Samlet resultat fortsatt utilfredsstillende Underliggende EBIT Millioner kroner (67) (92) 57 (2) 2 Utsikter Økonomisk nedgang har drastisk markedsinnvirkning for Automotive Ytterligere nedbemanning (49) (75) (92) (19)
Energi Nøkkeltall Resultat tredje kvartal Kraftproduksjon, GWh 3. kv 2 677 2. kv 3 021 3. kv 3 294 Høye spotpriser Høy produksjon og netto spotsalg Netto spotsalg, GWh 1 233 1 331 1 997 Spotpris for elektrisitet i SørNorge (NO1), kroner/mwh 403 171 96 Underliggende EBIT, millioner kroner 475 270 207 Underliggende EBIT Millioner kroner 1 184 1 144 475 399 369 341 266 270 207 Utsikter Magasinfylling under normalnivå Betydelig lavere kraftproduksjon (20)
(21) Kapitalallokering
Solid finansiell stilling Kontantstrøm 2. kvartal (Milliarder kroner) Drift 0,1 Investeringer (2,6) Avhendelser 0,7 ~Netto endring i netto kontanter/(gjeld) (1,8) Planlagte investeringer : ~12 milliarder kroner 2009: ~13 milliarder kroner Milliarder kroner Kontanter og bankinnskudd Markedsbaserte verdipapirer Kortsiktige lån Langsiktige lån Netto kontanter/(gjeld) Kontanter og bankinnskudd i eget forsikringsselskap Netto pensjonsforpliktelse, etter forventet skattefordel Operasjonelle leieforpliktelser, etter forventet skattefordel Rentebærende gjeld i tilknyttede selskaper Andre finansielle forpliktelser, etter forventet skattefordel 30. sept. 3,6 4,5 (1,0) (0,3) 6,7 (1,6) (5.1) (1,5) (3,3) (0,7) 30. juni 8,0 2,1 (1,2) (0,2) 8,7 (1,7) (4,9) (1,5) (2,0) (0,7) Netto justert kontanter/(gjeld) (5,5) (2,1) (22)
Qatalum i rute 41 % ferdigstilt ved utgangen av tredje kvartal 12 800 anleggsarbeidere Konstruksjon på alle større deler Ovnshaller Kraftverk Havnefasiliteter Bygninger for støttefunksjoner Krevende miljø for gjennomføring av store prosjekter Investering Estimat (100 %) ~5,6 milliarder USdollar I rute for oppstart i 2009/2010 (23)
Prioriteringer i og 2009 Solid drift Kostkontroll Marginstyring Gjennomføring av Qatalum Vekstmuligheter (24)
Cautionary note in relation to certain forwardlooking statements Certain statements included within this announcement contain forwardlooking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management s plans, objectives and strategies for Hydro, such as planned expansions, investments or other projects, (c) targeted production volumes and costs, capacities or rates, startup costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro s markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by expected, scheduled, targeted, planned, proposed, intended or similar statements. Although we believe that the expectations reflected in such forwardlooking statements are reasonable, these forwardlooking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forwardlooking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream aluminium business; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro s key markets and competition; and legislative, regulatory and political factors. No assurance can be given that such expectations will prove to have been correct. Hydro disclaims any obligation to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. (25)
(26) Additional information
Underlying income NOK million Reported income Adjustments Underlying income Aluminium Metal Aluminium Products Energy Corporate and other 1 692 (288) 515 495 (760) 610 (39) (734) 932 322 475 (239) Total EBIT 2 414 (924) 1 490 Financial income (expense), net (1 980) 2 015 35 Income continuing operations before tax Income tax expense 1) 434 (201) 1 091 (355) 1 525 (556) Income from continuing operations 233 736 968 Income from discontinued operations 131 131 Net income 364 736 1 099 Net income attributable to minority interest Net income attributable to equity holders of the parent 162 202 Earnings per share from continuing operations NOK 2) 0.10 0.70 1) Estimated tax effect on items excluded is calculated using actual tax rate yeartodate, less estimated tax effect yeartodate previous quarter 2) Calculated using income from continuing operations less net income attributable to minority interests (27)
Underlying income NOK million Reported income Adjustments Underlying income Aluminium Metal Aluminium Products Energy Corporate and other 1 468 789 276 (1 825) (515) (253) (6) 1 685 953 535 270 (140) Total EBIT 708 911 1 619 Financial income (expense), net 443 (298) 145 Income continuing operations before tax Income tax expense 1) 1 150 (248) 613 (181) 1 763 (429) Income from continuing operations 902 432 1 335 Income from discontinued operations (20) (20) Net income 882 432 1 315 Net income attributable to minority interest Net income attributable to equity holders of the parent 96 786 Earnings per share from continuing operations NOK 2) 0.70 1.00 1) Estimated tax effect on items excluded is calculated using actual tax rate yeartodate, less estimated tax effect yeartodate previous quarter 2) Calculated using income from continuing operations less net income attributable to minority interests (28)
Underlying income NOK million Reported income Adjustments Underlying income Aluminium Metal Aluminium Products Energy Corporate and other 2 172 (247) 242 (154) 11 535 (35) 163 2 182 288 207 9 Total EBIT 2 013 673 2 686 Financial income (expense), net 1 544 (1 199) 345 Income continuing operations before tax Income tax expense 1) 3 557 (765) (526) (152) 3 031 (917) Income from continuing operations 2 792 (678) 2 114 Income from discontinued operations 3 629 3 629 Net income 6 421 (678) 5 743 Net income attributable to minority interest Net income attributable to equity holders of the parent 106 6 314 Earnings per share from continuing operations NOK 2) 2.20 1.60 1) Estimated tax effect on items excluded is calculated using actual tax rate yeartodate, less estimated tax effect yeartodate previous quarter 2) Calculated using income from continuing operations less net income attributable to minority interests (29)
Reported and underlying results Hydro NOK million Year Year Reported EBIT 3 111 2 697 2 056 (664) 3 672 3 001 2 013 338 1 179 708 2 414 7 200 9 025 Underlying EBIT 2 455 2 937 2 538 2 235 2 883 2 886 2 686 1 697 2 032 1 619 1 490 10 165 10 153 Income from continuing operations 2 306 1 938 1 398 324 3 258 2 581 2 792 527 1 443 902 233 5 966 9 158 Underlying income from continuing operations 1 864 2 085 1 903 1 960 2 345 2 152 2 114 1 402 1 442 1 335 968 7 811 8 015 Earnings per share from continuing operations 1) 1.90 1.50 0.90 0.30 2.60 2.00 2.20 0.40 1.20 0.70 0.10 4.60 7.20 Underlying earnings per share from continuing operations 1) 1.60 1.60 1.30 1.60 1.80 1.70 1.60 1.10 1.20 1.00 0.70 6.10 6.20 1) Calculated using income from continuing operations less net income attributable to minority interests (30)
Items excluded from underlying results NOK million Unrealized derivative effects on currency contracts (Alunorte) Alumina & Bauxite (16) (106) 203 Unrealized derivative effects on LME related contracts (Alunorte) Alumina & Bauxite 83 (8) (134) Unrealized derivative effects on power contracts Primary Aluminium 348 10 (342) Unrealized derivative effects on power contracts (Søral) Primary Aluminium 20 (91) 50 Unrealized derivative effects on currency contracts (Qatalum) Primary Aluminium 25 (4) (53) Unrealized derivative effects on LME related contracts Other and eliminations 79 (317) (485) Total impact Aluminium Metal 539 (515) (760) Metal effect Rolled Products 113 (247) (38) Unrealized derivative effects on LME related contracts Other and Elim. (738) (7) 648 Total impact Aluminium Products (625) (253) 610 Unrealized derivative effects on power contracts Energy (5) (6) (6) (Gains)/losses on divestments Energy (34) Unrealized derivative effects on power contracts Energy (5) (6) (39) Unrealized derivative effects on power contracts Corporate, other & elim. 928 2 083 (740) Unrealized derivative effects on LME related contracts Corporate, other & elim. 16 (8) 6 (Gains)/losses on divestments Corporate, other & elim. (389) Total impact Corporate, other & elim. 944 1 685 (734) Total EBIT Hydro 853 911 (924) Net foreign exchange (gain)/loss Hydro (854) (298) 2 015 Income from continuing operations before tax Hydro (1) 613 1 091 Calculated income tax effect Hydro 0 (181) (355) Income from continuing operations Hydro (1) 432 735 (31)
Items excluded from underlying results NOK million Equity accounted units Monetary adjustments Alunorte Equity accounted units unrealized (gains)/losses on LME contracts Alunorte Closure costs Unrealized (gains)/losses on power contracts Equity accounted units unrealized (gains)/losses power contracts Søral Embedded currency derivatives Qatar Impairment Ellenville 1) Unrealized (gains)/losses on LME contracts Correction of elimination of gain on inventory Total impact Metal effect Rationalization costs Equity accounted units Change in tax rate Germany Rationalization costs US and UK (Gains)/losses on divestments (Gains)/losses on divestments Rationalization costs Unrealized (gains)/losses on LME contracts Total impact Unrealized (gains)/losses on power contracts Unrealized (gains)/losses on power contracts Correction of elimination of gain on inventory Total EBIT Net foreign exchange (gain)/loss Income from continuing operations before tax Estimated income tax effect Germany, change in tax rate Income from continuing operations Bauxite & Alumina Bauxite & Alumina Primary Aluminium Primary Aluminium Primary Aluminium Primary Aluminium Commercial Other and eliminations Other and eliminations Aluminium Metal Rolled Products Rolled Products Rolled Products Extrusion Extrusion Automotive Automotive Other and Elim. Aluminium Products Energy Corporate and other Corporate and other Hydro Hydro Hydro Hydro Hydro Hydro (33) (13) 17 127 47 (303) (158) (149) (691) 23 (817) (22) 207 (790) (464) (1 254) 341 (64) 40 66 (175) (25) 144 (80) (91) 28 63 15 31 137 (27) (135) (116) (517) (633) 204 98 (35) (108) 20 80 (1) 2 53 11 55 40 440 535 (35) 221 (58) 675 (1 199) (524) 98 (250) (678) (35) (82) 8 76 (2) 30 79 65 137 301 29 (47) (17) 12 18 104 400 (35) 627 231 1 359 (74) 1 285 (359) (50) 876 (167) (163) 114 108 19 30 144 (303) 118 (100) 235 29 (47) 63 (17) (624) 18 597 255 (119) 920 173 1 128 (2 254) (1 126) 283 (300) (1 143) 1) Not included in EBITDA (32)
Operating segment information Underlying EBIT NOK million Year Year Bauxite & Alumina 92 274 288 244 257 298 100 27 10 70 93 898 681 Primary Aluminium 1 621 1 966 1 714 1 351 1 901 1 790 1 720 1 142 872 628 909 6 651 6 552 Commercial 128 183 112 221 254 278 309 105 409 251 (147) 643 946 Other and eliminations (9) 18 (13) (60) (37) 8 54 60 (36) 3 76 (65) 84 Aluminium Metal 1 831 2 440 2 102 1 755 2 375 2 374 2 182 1 333 1 255 953 932 8 127 8 265 Rolled Products 135 82 144 158 194 262 136 (31) 147 241 175 520 562 Extrusion 184 272 197 165 245 227 201 179 225 292 239 818 852 Automotive 45 43 (72) (66) 57 1 (49) (75) (2) 2 (92) (51) (67) Other and eliminations 1 3 2 3 0 0 (0) 8 5 Aluminium Products 367 398 269 260 498 493 288 74 370 535 322 1 294 1 352 Energy 558 229 383 294 266 369 207 341 399 270 475 1 464 1 184 Corporate and other (301) (129) (216) (75) (257) (349) 9 (50) 8 (140) (239) (721) (647) Total 2 455 2 938 2 538 2 235 2 883 2 886 2 686 1 699 2 032 1 619 1 490 10 165 10 153 (33)
Operating segment information Underlying EBITDA NOK million Year Year Bauxite & Alumina 97 278 293 249 262 302 104 31 14 74 98 917 699 Primary Aluminium 2 072 2 407 2 161 1 913 2 396 2 266 2 190 1 628 1 328 1 114 1 398 8 553 8 479 Commercial 188 244 165 291 294 313 341 141 434 274 (121) 888 1 090 Other and eliminations (9) 18 (13) (60) (37) 8 54 60 (36) 3 76 (65) 84 Aluminium Metal 2 348 2 948 2 605 2 392 2 915 2 889 2 690 1 859 1 740 1 465 1 450 10 294 10 353 Rolled Products 278 216 283 300 339 393 266 100 272 365 304 1 077 1 099 Extrusion 317 399 320 296 366 344 304 286 336 409 350 1 332 1 300 Automotive 221 206 95 148 137 68 14 (10) 54 58 (38) 673 209 Other and eliminations 3 1 3 2 3 0 0 8 5 Aluminium Products 819 822 699 747 844 809 584 375 662 829 616 3 090 2 613 Energy 594 265 419 311 294 392 236 390 428 291 503 1 589 1 313 Corporate and other (289) (127) (205) (70) (241) (333) 24 (34) 21 (128) (228) (692) (585) Total 3 472 3 908 3 518 3 381 3 812 3 756 3 534 2 591 2 851 2 457 2 342 14 278 13 693 (34)
Operating segment information EBIT NOK million Year Year Bauxite & Alumina 134 263 315 119 303 322 243 144 (57) 184 24 831 1 011 Primary Aluminium 1 015 1 975 1 915 968 1 710 1 921 1 621 1 030 479 712 1 254 5 872 6 281 Commercial 128 183 112 154 254 134 309 105 409 251 (147) 576 802 Other and eliminations 430 (87) 22 (341) 267 88 (85) (115) 320 561 23 269 Aluminium Metal 1 706 2 333 2 365 899 2 534 2 465 2 172 1 194 716 1 468 1 692 7 302 8 365 Rolled Products 469 231 71 (156) 343 234 81 (313) 34 488 213 616 345 Extrusion (156) 156 147 112 245 164 201 196 225 292 239 259 806 Automotive 20 (49) (367) (487) 748 (15) (89) (105) (2) 2 (92) (884) 539 Other and eliminations 153 (12) (286) 50 (21) (28) (440) (104) 738 7 (648) (94) (592) Aluminium Products 486 326 (435) (481) 1 315 355 (247) (326) 995 789 (288) (104) 1 098 Energy 440 278 324 415 288 396 242 376 404 276 515 1 457 1 303 Corporate and other 479 (239) (198) (1 498) (465) (214) (154) (907) (936) (1 825) 495 (1 456) (1 741) Total 3 111 2 697 2 056 (664) 3 672 3 001 2 013 338 1 179 708 2 414 7 200 9 025 (35)
Operating segment information EBITDA NOK million Year Year Bauxite & Alumina 139 267 320 124 308 326 247 148 (53) 188 29 850 1 029 Primary Aluminium 1 466 2 416 2 362 1 530 2 205 2 397 2 091 1 516 935 1 198 1 743 7 774 8 208 Commercial 188 244 165 291 294 313 341 141 434 274 (121) 888 1 090 Other and eliminations 430 (87) 22 (341) 267 88 (85) (115) 320 561 23 269 Aluminium Metal 2 223 2 841 2 868 1 603 3 074 3 124 2 679 1 720 1 201 1 980 2 211 9 536 10 597 Rolled Products 612 365 210 136 488 365 211 (183) 158 612 342 1 323 882 Extrusion (23) 399 270 243 366 281 304 303 336 406 350 889 1 254 Automotive 196 140 86 (187) 828 53 (25) (38) 54 58 (38) 235 818 Other and eliminations 153 (12) (286) 50 (21) (28) (440) (104) 738 7 (648) (94) (592) Aluminium Products 938 892 281 242 1 661 671 50 (22) 1 287 1 082 6 2 353 2 361 Energy 476 314 360 432 316 419 271 425 433 297 543 1 582 1 432 Corporate and other 491 (237) (187) (1 493) (449) (198) (139) (892) (923) (1 813) 506 (1 427) (1 678) Total 4 128 3 810 3 322 785 4 602 4 016 2 861 1 232 1 998 1 546 3 266 12 044 12 711 (36)
Operating segment information Total revenue NOK million Year Year Bauxite & Alumina 952 1 062 1 167 1 300 1 108 1 192 929 948 698 931 1 281 4 481 4 176 Primary Aluminium 9 620 9 545 8 927 8 815 10 377 9 876 8 920 7 991 8 562 9 263 8 657 36 907 37 164 Commercial 19 229 19 435 16 802 18 100 18 232 17 114 14 926 14 625 14 440 16 686 14 606 73 566 64 898 Other and eliminations (11 868) (12 136) (10 715) (11 976) (12 433) (12 199) (10 550) (9 464) (10 264) (11 862) (11 029) (46 695) (44 646) Aluminium Metal 17 933 17 906 16 182 16 239 17 284 15 983 14 226 14 099 13 435 15 018 13 515 68 259 61 592 Rolled Products 5 535 5 669 5 875 6 053 6 630 6 835 6 021 5 841 5 808 6 204 5 896 23 132 25 327 Extrusion 5 095 5 377 5 207 4 722 5 497 5 470 4 821 4 633 5 044 5 309 5 031 20 402 20 421 Automotive 2 566 2 686 2 382 2 683 2 328 1 605 1 386 1 186 1 263 1 338 1 188 10 317 6 506 Other and eliminations (228) (194) (202) 361 (209) (226) (236) (184) (133) (191) (189) (263) (855) Aluminium Products 12 967 13 538 13 263 13 819 14 246 13 685 11 991 11 477 11 982 12 659 11 926 53 588 51 399 Energy 2 006 1 181 1 961 2 161 1 421 1 370 1 416 2 261 2 338 3 998 1 013 7 309 6 468 Corporate and other (6 858) (7 198) (7 363) (8 985) (7 294) (5 996) (5 667) (6 185) (6 226) (7 695) (4 690) (30 404) (25 143) Total 26 048 25 427 24 043 23 234 25 657 25 042 21 966 21 651 21 529 23 980 21 765 98 752 94 316 (37)
Operating segment information External revenue NOK million Year Year Bauxite & Alumina 1 3 1 3 Primary Aluminium 827 735 347 435 594 684 602 670 574 582 546 2 344 2 551 Commercial 10 419 11 012 9 530 10 379 10 663 9 893 8 954 8 441 8 200 9 854 8 579 41 340 37 952 Other and eliminations 356 (141) 36 (332) 37 37 108 (182) (82) Aluminium Metal 11 602 11 606 9 912 10 482 11 294 10 614 9 665 8 933 8 775 10 437 9 125 43 603 40 506 Rolled Products 5 498 5 618 5 842 5 993 6 506 6 699 5 919 5 729 5 731 6 108 5 814 22 951 24 853 Extrusion 4 879 5 193 5 042 5 086 5 379 5 347 4 728 4 540 4 904 5 168 4 933 20 200 19 994 Automotive 2 467 2 654 2 346 2 661 2 287 1 565 1 361 1 163 1 232 1 313 1 159 10 128 6 375 Other and eliminations 66 10 (25) 17 2 (62) (14) 55 (55) 51 (56) Aluminium Products 12 910 13 476 13 205 13 740 14 190 13 612 11 946 11 418 11 922 12 534 11 905 53 331 51 166 Energy 1 119 (27) 737 (823) (83) 562 125 664 327 884 600 1 007 1 268 Corporate and other 417 371 188 (165) 256 253 230 636 506 125 136 811 1 376 Total 26 048 25 427 24 043 23 234 25 657 25 042 21 966 21 651 21 529 23 980 21 765 98 752 94 316 (38)
Operating segment information Internal revenue NOK million Year Year Bauxite & Alumina 951 1 062 1 167 1 300 1 108 1 192 929 944 698 931 1 281 4 480 4 173 Primary Aluminium 8 793 8 810 8 581 8 380 9 782 9 192 8 318 7 321 7 988 8 680 8 111 34 564 34 613 Commercial 8 811 8 423 7 272 7 720 7 569 7 221 5 972 6 184 6 239 6 832 6 027 32 226 26 946 Other and eliminations (12 224) (11 995) (10 750) (11 643) (12 470) (12 236) (10 658) (9 282) (10 264) (11 862) (11 029) (46 613) (44 646) Aluminium Metal 6 331 6 299 6 270 5 757 5 990 5 369 4 561 5 166 4 661 4 581 4 391 24 657 21 086 Rolled Products 37 50 33 60 123 137 101 112 77 96 83 180 474 Extrusion 215 184 166 (363) 118 124 93 93 141 140 98 202 427 Automotive 99 32 36 22 41 40 26 24 32 25 29 189 131 Other and eliminations (294) (204) (177) 361 (226) (228) (174) (170) (189) (136) (189) (314) (798) Aluminium Products 58 62 58 80 57 73 45 59 61 125 21 257 233 Energy 887 1 208 1 224 2 983 1 504 808 1 291 1 597 2 011 3 114 413 6 302 5 200 Corporate and other (7 276) (7 569) (7 551) (8 820) (7 550) (6 250) (5 897) (6 822) (6 732) (7 820) (4 825) (31 216) (26 519) Total (39)
(40) 77 (3) (12) (3) 3 (6) 95 39 57 256 (3) (16) 3 (1) 5 (2) 273 92 180 (94) 1 (13) (6) 1 (7) (77) (40) (37) 7 17 2 3 2 4 4 5 4 Extrusion 2 (183) (1) 4 10 (235) 24 18 Automotive 36 (2) 42 (6) (7) 7 (6) 7 1 (4) Rolled Products 854 624 169 219 228 238 78 258 195 93 Bauxite & Alumina 121 232 (28) 56 96 (3) (90) 126 56 140 Primary Aluminium (2) (1) Commercial 265 2 (8) (3) 275 160 1 (25) 43 141 260 5 5 18 233 285 5 2 30 249 163 3 (1) (224) 385 27 15 16 9 (12) 248 (1) 14 236 46 (168) (8) Aluminium Products 1 000 736 326 Total (24) 22 10 Energy 3 27 1 Corporate and other 975 854 323 Aluminium Metal Year Year NOK million Operating segment information Share of profit in equity accounted investments
Operating segment information Depreciation NOK million Year Year Bauxite & Alumina Primary Aluminium 447 437 441 557 490 471 465 473 452 481 484 1 882 1 899 Commercial 60 60 52 138 40 179 33 36 25 23 26 311 287 Aluminium Metal 507 497 494 694 530 649 498 508 476 504 510 2 192 2 186 Rolled Products 129 120 125 277 131 117 116 117 111 110 115 651 481 Extrusion 133 243 123 131 121 118 103 106 111 114 111 630 448 Automotive 175 188 213 301 80 68 64 67 56 55 54 878 279 Aluminium Products 437 552 462 709 332 302 283 290 278 279 280 2 159 1 207 Energy 35 35 34 16 28 20 24 24 24 25 24 120 97 Corporate and other 12 8 13 12 16 16 15 16 13 12 11 45 62 Total 991 1 092 1 002 1 431 906 988 820 839 791 819 825 4 516 3 552 (41)
Income statement NOK million First nine months First nine months Revenue Share of the profit in equity accounted investments Other income, net 21 765 77 123 23 980 256 470 21 966 265 8 67 275 239 704 72 665 840 919 Total revenue and income 21 965 24 706 22 239 68 218 74 424 Depreciation, amortization and impairment Other expenses 825 18 726 819 23 179 820 19 406 2 435 61 482 2 713 63 023 Earnings before financial items and tax (EBIT) 2 414 708 2 013 4 300 8 687 Financial income (expense), net (1 980) 443 1 544 (539) 3 078 Income from continuing operations before tax Income tax expense Tax rate 434 (201) 46% 1 150 (248) 22% 3 557 (765) 22% 3 761 (1 183) 31% 11 765 (3 134) 27% Income from continuing operations 233 902 2 792 2 578 8 631 Income from discontinued operations 131 (20) 3 629 (246) 9 444 Net income 363 882 6 421 2 332 18 075 Net income attributable to minority interest Net income attributable to equity holders of the parent 162 202 96 786 106 6 315 241 2 091 317 17 758 Earnings per share from continuing operations NOK 1) 0.10 0.70 2.20 1.90 6.80 1) Calculated using income from continuing operations less net income attributable to minority interests (42)
Balance sheets NOK million September 30, June 30, March 31, December 31, September 30, Cash and cash equivalents Shortterm investments Receivables and other current assets Inventories 3 583 4 454 19 744 15 654 7 985 2 112 19 967 13 495 11 735 2 444 19 871 13 417 9 330 2 742 16 531 12 227 33 948 2 197 18 906 12 579 Assets held for sale / Discontinued operations 514 514 6 741 124 579 Property, plant and equipment Other noncurrent assets 27 609 22 827 26 067 20 820 26 148 19 227 26 750 17 724 26 513 17 379 Total assets 93 871 90 960 93 356 92 046 236 100 Bankloans and other shortterm interestbearing debt Other current liabilities 1 041 19 834 1 152 19 105 1 162 18 498 1 045 17 310 2 153 18 890 Liabilities in disposal group / Discontinued operations 2 021 98 098 Longterm interestbearing debt Other longterm liabilities Deferred tax liabilities 308 17 494 1 809 215 18 990 1 314 233 16 038 1 829 263 14 152 2 246 270 13 735 2 630 Minority interest Equity attr. to equity holders of the parent 938 52 446 634 49 550 873 54 723 959 54 049 872 99 452 Total liabilities and equity 93 871 90 960 93 356 92 046 236 100 (43)
Capital employed upstream focus Automotive, 4% Extrusion, 10% Energy, 7% Bauxite & Alumina, 13% NOK million Bauxite & Alumina Primary Aluminium Commercial Other and eliminations Aluminium Metal Sept 30, 7 167 24 442 3 606 480 35 696 Rolled Products Extrusion Automotive Other and eliminations 9 684 5 889 2 098 (100) Aluminium Products 17 570 Rolled Products, 19% Energy Corporate and other Total 3 933 (10 498) 46 697 Commercial, 6% Primary Aluminium, 43% Graph excludes NOK 10.5 billion in negative capital employed in Corporate and Other (44)
Price and currency sensitivities NOK million Income before tax Net income Change Aluminium price per tonne 750 570 100 USD NOK million Income before tax Net income Change USD before financial items 380 270 0.1 NOK USD financial items 1 (260) (190) 0.1 NOK USD Net income 120 80 0.1 NOK Based on expected business volumes for 2009 and the following prices: Aluminium 2 700 USD/tonne NOK/USD 5.50 LME sensitivity excludes unrealized effects related to operational hedging USD sensitivity on financial items is based on financial positions 30 June Total USD sensitivity for financial items is based on actual financial positions June 30, 1Mainly USD derivatives positions according to current currency risk mitigation policy (45)
Primary aluminium production 1 000 tonnes 1 472 1 720 1 826 1 799 1 742 1 309 415 418 441 446 444 457 461 464 449 451 449 450 433 435 435 439 433 437 439 343 360 381 388 2003 2004 2005 Slovalco consolidated from 2004 (46)
Primary aluminium market USD per tonne days 3 500 Aluminium inventories (days of consumption)* Al price (LME 3 month) Average inventories 60 3 000 2 500 50 2 000 40 1 500 1 000 1997 1998 1999 2000 2001 2002 2003 2004 2005 30 *IAI and LME reported stocks, annualized Western World consumption. CIS and China not included. (47)
Nordic power market forward curves NOK/MWh 650 600 550 500 450 400 350 300 250 200 150 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 End End End End End End (48)
Power price and volume Nordic System Price NOK/MWh Hydro s hydropower production TWh 600 12 500 10 9.4 10.3 10.7 11.0 400 8 7.5 8.0 8.3 8.5 300 6 200 4 100 2 0 2001 2002 2003 2004 2005 0 2001 2002 2003 2004 2005 (49)
Aluminium Metal operational data Volumes and prices 1) Realized premium above LME (USD/mt) 264 273 278 292 329 353 344 346 362 360 340 Realized premium above LME (NOK/mt) 1 758 1 725 1 760 1 887 2 056 2 143 2 001 1 934 1 973 1 868 1 822 Bauxite & Alumina: Alumina production (1 000 mt) 387 490 492 522 474 480 512 541 509 507 589 Primary Aluminium: Primary production (1 000 mt) 449 451 449 450 433 435 435 439 433 437 439 Total casthouse production 541 543 544 535 535 542 546 539 556 553 563 LME realized (USD/mt) including hedges 2 146 2 368 2 462 2 430 2 588 2 606 2 597 2 447 2 442 2 699 2 846 NOK/USD realized including hedges 1) 6.85 6.47 6.36 6.50 6.37 6.21 5.97 5.69 5.45 5.19 5.31 LME realized (NOK/mt) including hedges 14 697 15 331 15 662 15 793 16 480 16 174 15 512 13 921 13 309 14 008 15 112 LME realized (USD/mt) excluding hedges 2 192 2 476 2 614 2 560 2 734 2 762 2 755 2 564 2 493 2 781 2 955 NOK/USD realized excluding hedges 1) 6.66 6.32 6.33 6.46 6.25 6.07 5.82 5.59 5.45 5.19 5.36 LME realized (NOK/mt) excluding hedges 14 591 15 638 16 537 16 536 17 082 16 780 16 038 14 330 13 587 14 433 15 845 1) Difference between realized exchange rate and spot rate at the transaction date is reported as currency gain/loss and not included in EBITDA (except currency hedges where hedge accounting is applied) (50)
Aluminium Metal operational data Volumes and prices Commercial: Remelt production (1 000 mt) 186 191 177 165 190 179 163 153 141 145 121 Sale of metal products from own production (1 000 mt) 764 756 714 682 771 738 699 680 724 753 667 Sale of thirdparty metal products (1 000 mt) 72 76 81 78 77 85 80 73 64 48 56 Total metal products sales excluding ingot trading (1 000 mt) 836 832 795 760 848 823 779 753 788 801 723 Hereof external sales (1 000 mt) 483 463 416 422 479 471 459 449 471 486 452 External sales revenue (NOK million) 10 419 11 012 9 530 10 379 10 664 9 893 8 954 8 441 8 200 9 854 8 579 Strategic hedges, Primary Aluminium 2009 2010 Volume, mt LME price USD/mt 47 000 2 230 15 000 2 400 10 000 2 300 (51)
Aluminium Products operational data Rolled Products external shipments (1 000 tonnes) 253 251 249 246 264 262 253 246 253 259 240 Extrusion external shipments (1 000 tonnes) 136 138 129 124 134 135 123 117 130 133 122 Automotive external shipments (1 000 tonnes) 45 47 39 43 43 30 29 28 31 31 26 Rolled Products EBIT per tonne, NOK 1) 534 327 580 642 735 1 000 538 (122) 581 932 728 Extrusion EBIT per tonne, NOK 1) 1 354 1 978 1 525 1 335 1 860 1 686 1 633 1 560 1 735 2 202 1 963 1) Underlying EBIT Energy operational data Volumes and prices Power production, GWh 2 749 1 832 1 922 1 823 2 654 2 749 3 294 2 321 2 850 3 021 2 677 Net spot sales, GWh 1 311 345 675 367 815 1 070 1 996 748 969 1 331 1 233 Nordic spot electricity price, NOK/MWh 364.0 348.0 482.8 370.0 218.3 182.2 156.1 337.0 303.1 275.0 446.0 South Norway spot electricity price (NO1), NOK/MWh 357.8 358.7 489.1 380.2 215.4 176.4 95.5 338.0 288.9 171.0 403.0 (52)
Investor Relations in Hydro Stefan Solberg Head of Investor Relations t: +47 22 53 92 80 m: +47 917 27 528 e: stefan.solberg@hydro.com Stian Hasle Investor Relations Officer t: +47 22 53 25 22 m: +47 977 36 022 e: stian.hasle@hydro.com Irene Raposo Investor Relations Assistant t: +47 22 53 92 24 m: +47 414 02 174 e: irene.raposo@hydro.com Next investor event: Fourth quarter results, February 18, 2009 For more information see: www.hydro.com/ir (53) 02/
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