Norsk Hydro: Accelerating the green aluminium transition

14 Feb 2025 08:00 CET

2024 was characterized by increasing geopolitical tensions and unpredictability.
Despite challenging market conditions, Hydro is strengthening its position in
the market. Hydro is on a solid path executing on its 2030 ambition of
pioneering the green aluminium transition, powered by renewable energy.

The green transition is progressing and aluminium demand from sectors supporting
it remains robust. Realizing the low-carbon circular economy requires bold moves
and Hydro is determined to accelerate the green aluminium transition.

"We are committed to execute on our strategy. Important milestones driving the
green aluminium transition have been reached in all parts of the company in
2024 and we are well positioned to reach our ambitions for 2030," says Eivind
Kallevik, President and CEO of Hydro, in his Letter to Stakeholders in the
Integrated Annual Report 2024.

Adjusted EBITDA for the full year of 2024 amounted to NOK 26,318 million,
compared with NOK 22,258 million in 2023. Higher alumina price, lower raw
material costs, and positive currency effects were partly offset by lower
extrusions and recycling volumes, and higher fixed costs.

Hydro had an adjusted RoaCE of 12 percent over the last five years, above the
target of 10 percent over the cycle. Reflecting the current volatile market
environment, and a year with high growth and return-seeking investments, the
adjusted RoaCE for 2024 ended at 8.5 percent.

Hydro has delivered NOK 10.1 billion from improvement programs since 2018,
surpassing the NOK 9.5 billion target set last year. Commercial initiatives have
generated NOK 2.6 billion in value. These initiatives and improvement programs
enhance Hydro's competitive edge and support earnings resilience across economic
cycles.

Improved earnings allow for competitive shareholder returns. Since 2019, Hydro
has distributed NOK 35.7 billion to shareholders, with a proposal to pay out
another NOK 4.5 billion for 2024, representing 50 percent of adjusted net
income.

Positioned to succeed towards 2030

Hydro has already reached the 2025 decarbonization targets and in 2024 key
milestones were achieved on the path to the 2030 and 2050 targets. Multiple
initiatives are being pursued to reduce greenhouse gas emissions within
smelting, casting and recycling. There is a growing demand of sustainable
materials, and partnerships help to position and accelerate greener earnings
uplift. Hydro continues to be robust while improving efficiency and
sustainability through technology and innovation.

Aluminium demand is set to increase significantly towards 2050, driven by the
green transition. This creates opportunities for Hydro's low-carbon and recycled
products. Hydro continues to thrive in a decarbonizing world with certified,
traceable and low-carbon solutions. Hydro is well positioned for its journey
towards the 2030 strategy, and constantly adapts to an evolving geopolitical and
macro-economic landscape. Going forward Hydro will continue to push on executing
growth, value creation and sustainability.


Investor contact:
Martine Rambøl Hagen
+47 91708918
Martine.Rambol.Hagen@hydro.com

Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

More information:
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638757_NHY Integrated Annual Report 2024_ENG.pdf
638757_NHY Remuneration report 2024_ENG.pdf