Financial Performance and Targets - Hydro achieved an adjusted RoaCE of 13.5% over the last 5 years [13, 183] - The company aims to deliver NOK 6.5 billion in annual improvements by 2030 through its improvement program [188, 246] - Hydro's capital allocation targets for 2025 and 2026 are reduced to NOK 13.5 billion [249] - The company targets an adjusted net debt to adjusted EBITDA ratio well below 2.0x over the cycle, with the LTM Q3-2025 ratio at 0.7x [186] - Total shareholder distributions since 2021 amount to NOK 41.0 billion [186] Extrusion Business - Hydro Extrusions is targeting an EBITDA uplift of NOK 8.0 - 10.0 billion by 2030 [68] - The company intends to reduce extrusion capacity by approximately 80 kt annually in Europe [134] - Hydro Building Systems experienced a 54% increase in EBITDA YTD 2025 in the Middle East [159] Recycling Business - The company estimates EUR 9 million out of EUR 10-15 million of Alumetal synergies will be delivered in 2025 [80] - Hydro is targeting an extrusion ingot recycling EBITDA margin of approximately USD 95/tonne in Q3 2025 [72] - Recycling adjusted EBITDA roadmap 2030 potential is NOK ~ 5 - 6 billion [83] Low-Carbon Transition and Sustainability - Hydro is projecting to deliver a CO2 reduction of 15% by year-end 2025 [14] - The company has a target to reduce CO2 emissions by 30% by 2030 [92] - Hydro has secured a new long-term power contract with Hafslund Kraft AS for 3.5 TWh of renewable energy supply from 2031 to 2040 [90]

Core Insights - Hydro is executing its 2030 strategy effectively, achieving strong results despite market uncertainties, with a focus on green transition opportunities and investments in electric infrastructure [1][3][4] Strategic Direction - In 2023, Hydro launched its strategy to lead the green aluminium transition, emphasizing renewable energy as a critical component in navigating complex market conditions [3][4] - The company aims to consolidate its Extrusions operations by closing five European plants to enhance competitiveness, with a restructuring cost of NOK 1.9 billion and expected annual savings of NOK 0.5 billion from 2027 [4][8] Financial Flexibility and Cost Management - Hydro is implementing a strategic workforce and cost reduction program, targeting a reduction of approximately 750 white-collar positions, with expected annual savings of around NOK 1 billion from 2026 [5][8] - A new NOK 6.5 billion improvement program was launched in 2024 to enhance resilience and accelerate value creation, with NOK 1.2 billion in improvements anticipated for 2025, exceeding the initial target [6][8] Capital Allocation - Capital allocation targets for 2025 and 2026 have been reduced to NOK 13.5 billion from NOK 15 billion, with the removal of additional annual flexibility of NOK 1–2 billion [7][8] - The 2030 EBITDA target for Extrusions has been revised down from NOK 10-12 billion to NOK 8-10 billion due to market conditions and reduced capital allocation [8] Recycling and Extrusions Growth - Hydro is strengthening its position in Recycling, with a target of reaching 850 kt of post-consumer scrap capacity by the end of 2025, contributing to its decarbonization goals [10][11] - The adjusted 2030 earnings target for Recycling has been lowered to NOK 5–6 billion, reflecting current market conditions [11][12] Renewable Power Investments - Hydro approved its largest hydropower investment in over two decades, the Illvatn pumped storage project, costing NOK 2.5 billion and expected to add 48 MW of capacity [14] - The company has secured long-term renewable power agreements totaling approximately 4.16 TWh, enhancing its power portfolio [15] Decarbonization Efforts - Hydro is on track to achieve a 15 percent CO2 reduction by the end of 2025, surpassing its initial 10 percent target [16] - The company aims to halve non-GHG emissions by 2030 and is enhancing transparency through various initiatives [17] Community Engagement and Education - Hydro supports over 300 community projects and is progressing towards its goal of educating 500,000 people by 2030, having already reached 250,000 [18][19] Financial Performance - Hydro's adjusted EBITDA for Q4 2024 to Q3 2025 was NOK 31 billion, an increase from NOK 22.4 billion in 2024, with a robust adjusted RoaCE of 13.5 percent over the past five years [22] - The company expects stable net operating capital, with guidance set at NOK 30 billion for year-end 2025 and 2026 [23]