Hydro Aluminium Rolled Products

Wolfgang Rempe, Head of Business Unit Special Products

Wolfgang.Rempe@hydro.com

Hamburg – October 20, 2017

IFBS & European Association for Panels and Profiles

Congress “Advancements for Metal Buildings”

Flat-rolled aluminium market & outlook

Hydro: Engaged in the entire aluminium value chain

Bauxite Alumina Energy Primary Casting Products

Rolling

Extrusion

Recycling

Recycling

Bauxite Alumina Energy Primary metal Casthouse Rolled products Extrusion Solutions Recycling

We are fully integratedPresent throughout the entire aluminium value chain and across all markets

Bauxite

Alumina

Energy

Primary Metal

Rolled Products

Extrusion

Recycling

Machinery &

equipment

Transport &

automotive

Building &

constructionPackaging

Electronics &

electrical

Consumer

durables

Aluminium versus other metals2016 production in mio. tons

Source: CRU, RP Hydro analysis

59

1.726

14 17 -

400

800

1.200

1.600

2.000

Aluminium Steel Zinc Copper

59

14 17

-

10

20

30

40

50

60

70

Aluminium Zinc Copper

Strong demand drivers in key aluminium segments

The world needs more and more aluminium

Source: CRU, Hydro Analysis

Urbanization

Copper substitution

Urbanization

Housing market recovery in mature regions

Energy neutral buildings

Improving industrial sentiment in mature regions

Manufacturing activity and industrial growth in emerging countries

Urbanization

Environmentally-friendly solutions

Transport

Construction

Electrical

Machinery &

equipment

Packaging

Growth in automotive vehicle production

Aluminium content in cars increasing

Growth in other transport modes, e.g. railway Global semis

demand:

4-5 %

Short-term macroeconomic volatility, long term fundamentals still in place

5-6 %

3-4 %

5-6 %

4-5 %

3-4 %

Semis demand CAGR 2015 – 2025

Aluminium is a key enabler for sustainable buildings

Growth supported by energy-efficiency legislation

Energy-efficiency legislation supports aluminium

European Union

2012 Energy Efficiency Directive

US

Building Energy Use laws

• Light weight contributes to efficient use of materials

• Design flexibility and formability enable optimized building shapes

• High light reflectivity, electrical and thermal conductivity support

overall energy-efficiency

• Recyclability reduces energy consumption from a lifecycle

perspective

• Suitable for indoor and outdoor use: corrosion resistant, durable,

low maintenance, safe and non-toxic

Benefits of aluminium in buildings

Buildings account for ~ 40% of energy consumption worldwide,

triggering response from the legislators

6

Making aluminium a part of the solution

7

Primary production Aluminium in use Recycling

Reducing waste in a world of limited

resources, recovering energy and value

from used products through recycling

Reducing energy consumption and

emissions in our own processes

Developing products and solutions that

help our customers reduce energy

consumption and emissions

Global Aluminium Flow: most is “on the job” more metal neededMillion tonnes, for year 2015

8

Source: International Aluminium Institute Source: GARC, CRU/Hydro analysis

75%of all aluminium

ever produced

still in use

Green energy base gives Hydro low carbon footprint

Trend: use more renewable power to produce aluminium

0

2

4

6

8

10

12

14

16

18

Source: CRU 2012

* Hydro’s consolidated share

Indirect emissions, in tonne CO2/t al

Hydro

9

World average

Peers

Greener: Aluminium with the world´s least-energy use electrolysisTrend: Reduce of energy consumption of aluminium production

10

Inauguration

24 August 2017

Hydro leads in aluminium sorting technology

Hydro operates state-of-art shredding facilities for aluminium scrap from used

• Building elements (Dormagen, serving recyclers in D and LUX)

• Beverage Cans (Neuss, 50,000 tpy recycling)

• Automotive Process Scrap (Bonn, pilot line)

11

Trend: Improve recovery by optimal sorting of materials and alloys

Aluminium recycling in Holmestrand: ideal for coated sheet

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Founded in 1917 Norway´s largest aluminium recycler Rolling mill and coating line mainly

for building & construction market

Aluminium on top: since 1898 in Rome … and on the Empire State

Empire State Building in New York City

Constructed in 1930-1932

First prominent building to make major use

of aluminium components &

fabricated structures*

San Gioacchino church in Rome

Aluminium cupola installed in 1897/98

First, legendary application of aluminium

as roofing material

*http://www.aluminum.org/product-markets/building-construction

Surface treatment boosts aluminium beyond its even shineAnodising, lacquering etc. offer a wide range of options and looks

Aluminium alloys allow a wide range of propertiesUltimate 3D-forming ability with specialty alloys

Photos:

left: Holger Weinandt https://commons.wikimedia.org/wiki/File:Forum_Mittelrhein_01_Koblenz_2013.jpg

right: Onnola https://www.flickr.com/photos/30845644@N04/8435134180

On or by the sea: Durable, low on maintenance … and cool

Photos: Kalzip

Beach Club Bloemendaal, NL

Offshore aluminium: a safe, longterm jobAfter 35 years in the North Sea, this aluminium buoy got its first cleaning – Fully functional

Aluminium is the metal for the future

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Lightweight

Recyclable

Formable

Conductive

Corrosion resistant

Versatile by alloying

Properties lead

to increased

market share1/3 density of steel means lighter vehicles,

lower energy need and reduced emissions

At 5% of primary energy consumption

Enables to integrate different technologies into one solution

e.g. in buildings

A superconductor for heat and electricity, enabling energy-efficient

systems for electrical transmission, such as transfer components

Natural oxide layer protects the metal against

corrosion and makes it virtually maintenance free

We can make aluminium hard, soft, stiff, bendable, smooth etc.

depending on actual needs, by developing tailor-made alloys

Aluminium – the energy storage bank

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Recycling – a pure bonus

75%of all aluminium

ever produced

still in use

5%of original energy use

to recycle

Hydro’s climate strategy is to be carbon-neutral from a life-cycle perspective by 2020

20

• Integrated into business strategy

in all business areas

• Turn leading HSE/CSR position

into competitive advantage

• Deliver on fast-developing

customer demands

• Capitalize on strong climate

position over time

Hydro aims to be climate

neutral by 2020

21