Our performance

aliumium ingots

Primary Metal


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
• Further develop next-generation smelter technology

2009 results
• Curtailed 26 percent of primary capacity and 22 percent of alumina capacity
• Cost per mt reduced by 30 percent due to reduced raw material costs and    improvement measures
• Achieved improved effectiveness and fixed cost reductions in
   continuing operations
• Verification program for HAL4e electrolysis cell technology successfully    completed with main target criteria met

2010 targets
• Reduce cost per mt by USD 100, realizing 90 percent by end 2011
• Effective ramp-up of Qatalum completed during fourth quarter 2010
• Achieve measurable benefits toward cost reduction from AMPS
• Enhance value from existing alumina assets
• Assertive approach in raw materials markets
• Strong capital discipline

Ambitions going forward
Going forward, Hydro has an ambition to expand its upstream activities while maintaining a strong emphasis on sustainable cost development. We will continue to focus on lean smelter operations, operational excellence and safety. Ongoing developments of next-generation technology, HAL4e will provide a strong technological basis for continued organic growth, increased efficiency and lower emissions.


Metal Markets

aluminium ingots

2009 targets
• Effectively adjust capacity to decreasing demand
• Reduce cost in continuing operations by improved effectiveness and
   fixed cost reductions
• Enhance market position

2009 results
• Utilized flexible remelt production system to adjust to sharp decline followed
   by strong recovery in second half of year
• Significant reduction in fixed and variable costs
• Strengthened position in key markets

2010 targets
• Successful market entry for Qatalum's value-added metal products
• Utilize flexibility in remelting and recycling production systems to
   capture opportunities
• Operational excellence and safety in plant operations
• Profitable metal sourcing and trading activities and efficient hedging operations

Ambitions going forward
Our ambition is to strengthen our relative market position as we adjust to changes in market demand, and to build new market positions outside Europe.


Rolled Products

alumimium rolls

2009 targets
• TRI improvement of 20 percent
• Decisive cost management and focus on cash flow
• Maintain high performance and margin focus in declining market environment

2009 results
• TRI improvement of 24 percent
• Positive cash flow achieved despite difficult business climate, effective cost    measures implemented
• Further progress in customer-oriented performance indicators, margin level    somewhat lower in difficult market environment

2010 targets
• Further TRI reduction of 20 percent
• Selective gain in market share and improvement in margins
• Improvement in operational performance with focus on customer service
• Maintain focus on cost level and benefits achieved in 2009, counterparty
   risk and net operating capital
• Implementation of Rolled Products Business System in all units

Ambitions going forward
We are committed to safety and to eliminating serious accidents in our operations. We aim to increase the returns of our rolled products business, concentrating on margins, cost efficiency and operational excellence - well supported by the roll out of the Rolled Products Business System. We will stay focused on innovation and technology to sharpen our competitive edge.


Extruded Products

aluminium profile

2009 targets
• TRI improvement of 20 percent on 2008
• 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 in US
• Active portfolio management in Europe and Middle East

2009 results
• TRI improvement of 26 percent
• Continued cost improvement, recovered about 80 percent of the market loss
• Automotive Structures divestment completed
• Strong rationalization accomplished in US extrusion operations
• Selected growth projects in Building Systems executed

2010 targets
• Further TRI reduction of 20 percent
• Decisive cost management and focus on cash flow
• Realize market, cost and growth ambitions in Extrusion Eurasia
• Prepare for additional growth and manage additional market challenges

Ambitions going forward
Our goal is to be the clear performance leader in Europe's extrusion and building system industries, reinforcing our leadership position through selective growth and further development of new high-performing solutions. 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

power mast

2009 targets
• Competitive energy sourcing arrangements for aluminium operations
• Operational excellence and safety of operations

2009 results
• Competitive equity energy, no new commercial agreements
• Successful power portfolio optimization and reliable power supply in spite
   of outage at Suldal 1
• A tragic accident in Svandalsflona caused two fatalities

2010 targets
• Competitive energy sourcing arrangements for aluminium operations
• Operational excellence and safety of operations
• Competitive framework conditions

Ambitions going forward
Our goal is to develop equity power position and capitalize on our energy competence, supporting the sourcing of power to our smelters on a global basis.



Viability performance

aluminium coils

2009 target
• Continue working toward our climate ambitions

2009 results
• Revised emission targets for the electrolysis process
• The electrolysis process of aluminium production emitted
   1.85 t CO2e/t aluminium

2010
• The electrolysis process of aluminium production emits
   1.73 t CO2e/t aluminium
• Develop a recycling strategy

Ambition
• Aluminium production emits 1.52 t CO2e/t aluminium in 2013
• Reduce specific climate gas emissions from rolling processes
   by 20 percent from 2007 to 2013
• Substantially increase recycling of contaminated and post-consumer scrap


Updated: October 11, 2016