Our performance

Aluminium Metal

2008 targets

• Successful advancement of Qatalum
• Alunorte phase 3 expansion complete
• Finalize agreement with Vale on new alumina refinery in Brazil
• Aluminium Metal Production System implemented in all Norwegian smelters

2008 results

• Qatalum on schedule for start-up and within budget frame
• Alunorte started successfully on time and within budget
• Agreement with Vale signed
• Completed implementation of Aluminium Metal Production System in all     Norwegian smelters

2009 targets

• Effectively adjust capacity to decreasing demand
• Further improve smelter average cost position
• Reduce cost in continuing operations by improved effectiveness and fixed    cost reductions
• Enhance market position
• Further develop next-generation smelter technology

Ambitions going forward

Our ambition is to strengthen our market position as we adjust to contracting demand. We aim to significantly improve our cost position by phasing out older and higher-cost capacity and replacing it with new capacity for a world-class cost position. Our next-generation cell technology, HAL4e, will be the technological basis for continued organic growth. We will pursue growth in equity alumina coverage, with increased focus on an integrated bauxite supply. We intend to focus on improving our relative cost position, building upon Hydro’s culture of continuous improvement, operational excellence and safety.

Aluminium Products

2008 targets

• Continued improvement in profitability for under-performing U.S. extrusion
   units and automotive structures
• Selected growth projects delivered in Extrusion Eurasia and Building Systems

2008 results

• Plant rationalizations and improvement programs executed
• Acquisition concluded for Extrusion and Building Systems in Southern Europe
• Upgrading portfolio in Rolled Products by start-up of continuous annealing line

2009 targets

• Decisive cost management and focus on cash flow
• Maintain high performance and margin focus in declining market environment
• Additional turnaround measures in Automotive and Extrusion U.S.
• Active portfolio management in Europe and Middle East
• Continuous improvement of our performance system

Ambitions going forward

Our goal is to be the clear performance leader in the European extrusion and building system industries, reinforcing our leadership position through selective growth and further development of new high-performing solutions. We aim to increase the returns of our rolled products business. We will focus on innovation and technology to sharpen our competitive edge. We are committed to safety and to eliminating serious accidents in our operations.

Energy

2008 targets

• Energy sourcing arrangements for aluminium growth
• Operational efficiency and improvement in safety of operations
• Technology development and start-up of commercial operations in solar    business

2008 results

• Strong operational performance, with best-ever financial results
• Record high power production
• Further investments in solar partnership companies
• NorSun’s wafering plant in Norway completed and commenced production

2009 targets

• Competitive energy sourcing arrangements for aluminium operations
• Operational excellence and safety of operations
• Technology development and ramp-up of commercial operations in solar business

Ambitions going forward

Our goal is to capitalize on our energy competence supporting the sourcing of power to our smelters on a global basis. We aim to develop our investments in solar power, building on our initial, promising investments in this emerging high-growth industry.

Viability performance

2008 targets

• No fatal accidents. Total recordable injuries per million hours down by
   20 percent
• Complete our new climate strategy, including setting specific targets
• Effective restructuring carried out with respect to employees and local communities

2008 results

• Three fatal accidents. Total recordable injuries per million hours down
   7 percent from 4.1 to 3.8
• Developed a thorough climate strategy with a revised set of priorities. The electrolysis process of aluminium production emitted 2.12 tonnes of CO 2 equivalents per tonne of produced aluminium
• Substantial restructuring processes initiated in cooperation with employees
   and local communities

2009 targets

• No fatal accidents. Total recordable injuries per million hours down by
   20 percent to 3.0
• Continue working towards our climate ambitions
• Responsible restructuring carried out with respect to employees and local communities

Ambitions going forward

Our ambition is to have no fatalities or other serious injuries. Our aluminium production should not exceed emissions of 1.71 tonnes of CO 2 equivalents per tonne of produced aluminium in 2012. We intend to be a preferred partner world-wide due to our responsible business operations.


Updated: October 11, 2016