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Norsk Hydro 2016 annual report: making the world lighter

“After years of efforts aimed at continuous improvement, motivated by the need to adapt to external challenges, we can finally begin to take advantage of new opportunities”, writes President and CEO Svein Richard Brandtzæg in Hydro's Annual Report for 2016.

“For years, we have preached that we are part of the solution and, now, we see that our words are turning into action. In its daily operations, Hydro is an aluminum producer, but in a broader sense, I see that Hydro is in the business of making the world lighter - making people's daily lives lighter and easing the burden of change by reducing greenhouse gases and improving energy efficiency, ”said Hydro President and CEO Svein Richard Brandtzæg in his letter to shareholders.

“More and more people discover the specific properties of aluminum and, through innovation and product development, we create innovative aluminum solutions for new applications. Due to its lightness, malleability, durability and endless possibility of recycling, the growth in demand for aluminum is widespread, covering sectors such as transport, packaging, construction and even electrical applications. Unlike some common metals that, it seems, have reached their saturation point in some markets, aluminum still has significant growth potential for use. In 2017, for example, the expectation of increased demand for aluminum is three to five percent, ”he added.

“Last year, we invested in projects for the future and we hope that these will be a strategic, financial and climatic success. This year, three important symbols of this new era begin operations: the technology pilot project in Karmoy, Norway, and the Automotive Line 3 and the UBC Recycling Line, in Germany, ”added Brandtzæg

“Searching for new opportunities does not mean leaving aside our work of continuous improvement, as it is part of the company's DNA to always improve and renew and, still, do better tomorrow than we did today - in terms of security, operations and finances. It is also a great satisfaction to see how our work of continuous improvement has given tangible results in the area of security. Our greatest duty is to ensure that our colleagues return to their homes as safely as when they left. A year without fatalities and a recordable TRI accident rate of 2.6 (occupational accidents per million hours worked) - both for our own employees and for contractors, made 2016 the best year ever in the area of safety. Yet, we can never underestimate the importance of security. We have to be permanently aware and work to achieve it every day, if we are to achieve our goal of zero fatality and a TRI rate below 2.0 by 2020.

The improvements also represent greater profitability. Having achieved NOK 1.4 billion in improvements in 2016, we exceeded our target of NOK 1.1 billion. This only makes me conclude that our employees know how to make the “Best” program even better and allow us to offer solid and reliable dividends to our shareholders, ”said Brandtzæg.

“I am very satisfied, not only with the results achieved, but also with the way we achieved them. As a 360 degree aluminum company, that is, an aluminum company with a fully integrated value chain, we have a unique opportunity to control every step of production and to take responsibility for the lands, waters, forests, employees and communities in we operate, the energy we use and the emissions we cause in our processes and the return of final products to the production cycle, to be used infinitely. As we are part of the solution for some of the megatrends of our era, with light solutions being one of them, and supported by the constant and determined implementation of new steps in our aspiration “Better, Greater, More Green”, we are prepared for another 100 years of activities. It is a fundamental virtue of Hydro: having the patience to bet on the long-term perspective and the willingness to take every opportunity, every day, to make things happen ”, said the president.

The report, which, to satisfy the legal requirements for annual reports in Norway, is called “Financial Statements and Board Report - 2016”, is available in English and Norwegian.

In addition, the “2016 Annual Report”, a more extensive report with detailed information about Hydro's business, operational, financial and feasibility performance, including corporate governance and financial statements, is available in English.

In ww w.hydro.com/reporting2016 , parts of the content of the two reports are presented with additional information. All parts of both reports can be downloaded from the website and printed in PDF, if desired.

Hydro's main report on feasibility performance is included in the “2016 Annual Report”, with additional details, and is also available at www.hydro.com/ reporting2016 .

This text is machine translated. To view the original Portuguese text, click on PT on the top right of this window

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