Norsk Hydro ASA

Investor Presentation • Nov 27, 2025

Hydro Investor Day 2025: Strategic discipline securing long-term value creation

Hydro Investor Day 2025: Strategic discipline securing long-term value creation

Hydro continues to execute on its 2030 strategy, delivering strong results over

the last twelve months amid uncertain markets. The ability to create value from

opportunities arising from the green transition is further strengthened by

investments in new wire rod capacity to support Europe's electric infrastructure

development. This is complemented by the Illvatn pumped storage plant

investment, which scales renewable power generation in Norway. Extrusions and

Recycling are ramping up new investments and progressing on operational

improvements, positioning themselves for profitable long-term growth amid green

and geopolitical shifts. These topics will be key for Hydro's Investor Day 2025.

Key highlights

* Hydro Extrusions propose to close five plants in Europe to consolidate the

footprint, improve capacity utilization and reduce the cost base. Total

restructuring cost is estimated to NOK 1.9 billion, with annual cost

improvements of NOK 0.5 billion per year.

* Strategic workforce adjustment ahead of target in 2025. The program is

expected to deliver annual net run-rate savings of approximately NOK 1

billion from 2026.

* Hydro's improvement program remains on track to deliver NOK 6.5 billion by

2030. NOK 1.2 billion is expected in 2025, far exceeding the annual target

of NOK 600 million.

* Capital allocation targets for 2025 and 2026 are reduced to NOK 13.5

billion, down from NOK 15 billion. Annual flexibility of the NOK 1-2 billion

is removed from both short and medium-term guidance. The medium-term annual

CAPEX guidance of NOK 15 billion is maintained.

* The 2030 EBITDA target for Extrusions has been reduced from NOK 10-12

billion to NOK 8-10 billion, due to delayed market recovery and near-term

reduced capital allocation.

* The recycling 2030 target lower range EBITDA of NOK 5 billion is confirmed,

but the potential range has been reduced to NOK 5-6 billion due to reduced

capital allocation.

* Shareholder distribution target aligned with dividend policy and capital

structure targets.

In 2023, Hydro launched its strategy towards 2030 to pioneer the green aluminium

transition, powered by renewable energy. This strategic direction remains

essential as Hydro navigates increasingly uncertain markets and a more complex

operating environment.

"Hydro has an excellent position to succeed in a more unpredictable environment.

Despite the macro environment becoming less predictable, aluminium's role in the

green transition gives support to our strategic direction. With an integrated

value chain and a broad geographical footprint, we can navigate short-term

challenges, while pushing forward with pioneering the green aluminium transition

and powering it with renewable energy," says President and CEO, Eivind Kallevik

Hydro has proposed to consolidate the Extrusions operations and close five of

its European plants. This move is made to optimize the extrusion footprint in

Europe to strengthen competitiveness. The total restructuring cost is estimated

to NOK 1.9 billion and the net cost savings are NOK 0.5 billion per year from

Amid heightened market uncertainty, Hydro is taking decisive actions to preserve

financial flexibility and reinforce long-term competitiveness. In June 2025, the

company launched a strategic workforce and cost reduction program, reducing the

organization by approximately 750 white collar positions, and reducing travel

and consultancy spend. Execution is ahead of plan, with annual net run-rate

savings of around NOK 1 billion expected from 2026.

In 2024, Hydro launched a new NOK 6.5 billion improvement program to strengthen

resilience and accelerate value creation toward 2030, targeting procurement,

commercial, and operational efficiencies. Execution is ahead of plan, with NOK

1.2 billion in improvements expected in 2025, surpassing the earlier NOK 600

million target, and the full NOK 6.5 billion remains on track for delivery by

Hydro's strategic agenda continues to drive capital allocation, with capital

discipline remaining a core priority toward 2030. For both 2025 and 2026,

capital allocation targets are set at NOK 13.5 billion, down from the previous

NOK 15 billion, and the additional annual flexibility of NOK 1-2 billion has

been removed. At the same time, Hydro reconfirms its medium-term annual CAPEX

guidance of NOK 15 billion in 2024 real terms.

"With a backdrop of challenging markets and geopolitical volatility,

strengthening Hydro's robustness is our best line of defense. Focusing on

safety, continuous improvement, and efficient operations, we are well equipped

to continue to navigate volatility in the short-term while positioning the

company for the long-term opportunities in low-carbon aluminium solutions," says

Kallevik.

Executing and positioning for growth in Recycling and Extrusions

Hydro continues to strengthen its position in Recycling, building on its

strategic role in delivering greener aluminium solutions. Despite short-term

headwinds from tighter scrap supply and softer downstream markets, the

fundamentals for Recycling remain strong. Leveraging Hydro's advanced

capabilities in sourcing and processing complex scrap, the business is well

positioned for profitable, sustainable growth. By the end of 2025, Hydro will

reach 850 kt of post-consumer scrap (PCS) capacity, marking an important

milestone on the path toward the 2030 target range of 850,000 - 1,100,000 tonnes

and underscoring steady progress toward Hydro's decarbonization ambitions.

Hydro has adjusted its Recycling 2030 earnings target from NOK 5-8 billion to

NOK 5-6 billion, reflecting current market conditions and its impact on the

near-term capital allocation. The company's growth ambitions extend well beyond

PCS capacity expansion, supported by solid operational execution. Aluminium

Metal has already achieved USD 5 per tonne in hot metal cost reductions in

2025, and both Aluminium Metal and Extrusions remain on track to deliver USD

20-30 per tonne by 2030. Additionally, approximately NOK 100 million in Alumetal

synergies have been realized in 2025, with full synergies expected by 2030.

Hydro Extrusions' 2030 adjusted EBITDA ambition has been revised downward to NOK

8 - 10 billion, in line with the updated capital allocation. Despite a

challenging market environment, the business continues to see strong potential

for profitable earnings uplift.

Targeted upgrades and automation initiatives are enhancing productivity, safety,

and efficiency, while generating full time equivalent (FTE) savings under a

tighter investment frame. Strategic investments in press replacements and

fabrication capabilities for customer solutions are further strengthening

competitiveness. These initiatives, together with a sharpened commercial focus,

are expected to deliver NOK 1.7-2.0 billion in operational and commercial

improvements by 2030.

Delivering on ambitions within renewable power generation

This year, Hydro approved its largest hydropower investment in more than two

decades, the Illvatn pumped storage project in Luster, Norway. The NOK 2.5

billion pumped storage project will add 48 MW of capacity and deliver 107 GWh of

annual renewable power dedicated to Hydro's aluminium production. Through

Norway's cash flow tax scheme for hydropower investments, Hydro's net investment

after tax is estimated at NOK 1.2 billion. Illvatn underpins Hydro's strategy to

secure long-term, competitive renewable energy for Norwegian aluminium

production, supporting industrial development, low-carbon operations and the

company's ambition to produce net-zero aluminium by 2050.

Hydro strengthened its long-term power portfolio this year by advancing key

renewable power agreements, including new long-term contracts with Hafslund and

NTE totaling approximately 4.16 TWh. In parallel, Hydro's joint venture smelter,

Alouette, achieved an important milestone by reaching an Agreement in Principle

with the Government of Québec and Hydro-Québec to secure renewable power for

2030-2045.

Progressing on decarbonization and technology roadmap

Hydro is accelerating progress towards its 2050 net-zero ambition by

decarbonizing operations from bauxite mining through to finished products and is

now expected to achieve a 15 percent CO2 reduction by year end 2025,

outperforming its 10 percent target.

This year the Corridor project in Brazil added three new partners, Belterra

Agroflorestas, Mitsui & Co., and the Mitsui Foundation, strengthening its

integrated climate, nature, and social impact agenda. Additionally, Hydro

remains on track to halve non-GHG emissions by 2030 and is enhancing

transparency through initiatives such as the World Economic Forum's Alliance for

Clean Air.

On the social side, Hydro remains focused on human rights, local development,

education and supply chain standards. More than 300 community projects were

supported in 2025, and progress toward the goal of educating 500,000 people by

2030 continues, with 250,000 already reached through programs such as Território

do Saber, improving quality education for children and youth in Paragominas.

Executing on greener earnings uplift

Hydro continues to make solid progress toward its NOK 2 billion greener earnings

uplift potential by 2030, with earnings of greener products increasing by more

than 50 percent year to date as of the third quarter. The strong momentum comes

despite ongoing weakness in European and North American markets, and reflects

Hydro's growing commercial capabilities and close collaboration with partners.

The company is accelerating the commercialization of its low-carbon and recycled

portfolio through strategic partnerships with forward thinking customers. A key

milestone this year was the long-term offtake agreement with NKT for up to

274,000 tonnes of Hydro REDUXA, an estimated EUR 1 billion contract. Broader

collaborations, including with Mercedes-Benz and Siemens Mobility, further

demonstrate growing demand for sustainable materials, and reinforce Hydro's

leadership in low-carbon solutions across the value chain.

Focused growth and strong performance drive

Hydro's adjusted EBITDA Q4 2024 to Q3 2025 was NOK 31 billion, compared with NOK

22.4 billion in 2024, with weaker downstream results offset by stronger upstream

results. Robust results and efficient capital structure support an adjusted

RoaCE of 13.5 percent over the past five years, well above the 10 percent

target. Hydro remains committed to delivering consistent shareholder

distributions, aligned with the dividend policy and capital structure targets.

Distributions will be proposed by the Board of Directors in the fourth quarter

release in February 2025 and subject to approval by the Annual General Meeting

in May 2025.

Hydro expects net operating capital to remain stable, with year-end 2025

guidance set at NOK 30 billion and the 2026 guidance at the same level.

Despite challenging market conditions, Hydro continues to deliver solid results.

Building on a strong improvement culture, the company is reinforcing earnings

resilience through the cycle with further cost reduction initiatives and tighter

capital discipline in the near term. These proactive measures will ensure

sustainable execution of the strategy and lay a solid foundation for attractive

shareholder returns.

Investor contact:

Baard Erik Haugen

+47 92497191

Erik.Haugen@hydro.com

Elitsa Blessi

+47 91775472

Elitsa.Blessi@hydro.com

Media contact:

Halvor Molland

Halvor.Molland@hydro.com

+47 92979797

___________________________________________________________

The information was submitted for publication from Hydro Investor Relations and

the contact persons set out above. Certain statements included in this

announcement contain forward-looking information, including, without limitation,

information relating to (a) forecasts, projections and estimates, (b) statements

of Hydro management concerning plans, objectives and strategies, such as planned

expansions, investments, divestments, curtailments or other projects, (c)

targeted production volumes and costs, capacities or rates, start-up 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, and (i) qualified statements such as "expected", "scheduled",

"targeted", "planned", "proposed", "intended" or similar. Although we believe

that the expectations reflected in such forward-looking statements are

reasonable, these forward-looking 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 forward-looking 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 businesses; 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. Except where required by law,

Hydro disclaims any obligation to update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act.