Fjerde kvartal februar 2009 (1)

Transkript

1 Fjerde kvartal februar 2009 (1)

2 Hovedpunkter Underliggende EBIT, millioner kroner Resultatet på nivå med tredje kvartal Solid drift Høyere realisert aluminiumpris, men vedvarende kostnadspress Dramatisk nedgang i markedspris for aluminium og ordreinngang Korrigerende tiltak iverksatt Qatalum 60 % ferdig ved utgangen av i rute for oppstart i 2009/2010 Lagernedskrivinger inkludert i underliggende EBIT i Primæraluminium og omsmeltevirksomheten (2)

3 (3) Marked og utsikter

4 Historisk fall i aluminiumprisen USdollar per tonn Primæraluminium LME 4. kvartal gjennomsnitt 4. kvartal slutt USdollar/ tonn Kroner/ tonn kvartal gjennomsnitt 3. kvartal slutt Gjennomsnitt året Gjennomsnitt året Gjennomsnitt året LME (3 måneders snitt) LME terminpris 13. februar 2009 LME terminpris 1. jan LME terminpris 1. juli Kilde: Reuters Ecowin / Bloomberg, terminkurve per 13. februar (4)

5 Fall i salgsvolumer oppstrøms 4. kvartal sammenliknet med 3. kvartal Pressbolt Valseblokk Støpelegeringer Tråd Standard bolt 11% 17% 19% 21% 29% (5)

6 Fall i salgsvolumer nedstrøms 4. kvartal sammenliknet med 3. kvartal * Valsede Produkter Ekstruderte Produkter Eurasia Byggsystemer Ekstruderte Produkter Americas Automotive Structures Precision Tubing 0% 11% 18% 20% 24% 33% *Eksklusive Alumafel og Expral (6)

7 Kraftig økning i lagerhold USdollar per tonn Dager Aluminium varelagre (forbruk i dager)* LME 3måneders snitt *Rapporterte lager fra IAI og LME, forbruk i den vestlige verden beregnet på årsbasis. CIS og China er ikke inkludert. (7)

8 Betydelig nedstenging av kapasitet Annonsert nedstenging, angitt i prosent av produksjon i 35% 30% 31% 25% 23% 21% 20% 19% 15% 10% 11% 10% 5% 0% Chalco Hydro Century Alcoa UC Rusal Rio Tinto (8)

9 Kina fortsatt i balanse tonn Netto import (50) Primær Semi Bearbeidet Skrap Total Eksportavgift på metall og produkter med lav foredling 15 % eksportavgift på rent og legert primæraluminium Hoveddel av eksport til Asia Hovedsakelig halvfabrikkerte og bearbeidede produkter Netto eksport (100) (150) (200) (250) (300) (350) Rask respons fra Kina på redusert forbruk Redusert kapasitet og utsatt oppstart av nye smelteverk Kilde: Hydro/Antaike (9)

10 Annonsert nedstenging av kapasitet 11% 3% 6% Alcoa Century Hydro Kina ~3.2 millioner tonn Resten av verden ~3.5 millioner tonn 52% 6% 8% Rio Tinto UC Rusal Other Kina Totalt ~6.7 millioner tonn 14% Produksjon og forbruk i verden (eksklusive Kina), beregnet på årsbasis Produksjon Forbruk ~1 million tonn, nedstenging påbegynt Jan 2009 (10)

11 Fallende råvarepriser Råolje Brent (USdollar/fat) Kull CIF ARA (USdollar/tonn) Petroleumskoks FOB (USdollar/tonn) Kraft EEX Tyskland (Euro/MWh) Frakt Baltic Dry Index (USdollar) Kaustisk soda (USdollar/tonn) Kilde: Reuters Ecowin/PACE/CMAI (11)

12 Hydros driftskostnader vil gå ned Kostnad* i USdollar per tonn indeksert, =100 Nedstenging av smelteverk med høye driftskostnader ~(30)% Kostnader på innsatsfaktorer vil gå ned i 2009 Alumina 23 måneders forsinkelse Karbonkostnader på høyt nivå i første halvdel, fallende i andre halvdel Nivå andre halvår 2009 Alumina Kraft Anoder Annet *Inkluderer kun heleide smelteverk, 2009nivå er eksklusive Karmøy Søderberg og Neuss LMEbasis for aluminakostnad: ~USdollar 2 750, 2009nivå ~USdollar (12)

13 Hydro forbedrer kostnadsposisjonen gjennom nedstenginger og Qatalum Driftskostnader i USdollar per tonn Dynamisk kostnadskurve Fallende kostnader på innsatsfaktorer Produksjonsnedstenginger Akkumulert tonnasje (1 000 tonn) Driftskostnader 1. kv 2009 Driftskostnader Gjennomsnitt Gjennomsnitt 1. kvartal 2009 Qatalum Hydro justert for nedstenginger og inkl. Qatalum Neuss Karmøy Søderberg Hydro (C RU) *Kilde: CRU, Business Operating Cost, LME forutsetning : USdollar per tonn, 1. kv 2009: USdollar per tonn. Qatalum estimert av Hydro. (13)

14 Utsikter for 2009 Begrenset visibilitet Fortsatt svak etterspørsel Ytterligere nedstenginger er ventet Fortsatt fallende kostnader på innsatsfaktorer (14)

15 (15) Korrigerende tiltak

16 Aluminium Metall Primæraluminium Alumina Omsmelting (11) % tonn (23) % tonn tonn ~ ~ ~ (18) % ~ Framover * Framover Redusert produksjon av primæraluminium Permanent nedstenging av Karmøy Søderberg: tonn Foreløpig nedstenging av Søral (50 %), Slovalco (10 %) og Neuss (100 %): tonn Ytterligere nedstenginger vurderes Aluminaproduksjon ved Alpart kuttet 50 % Ytterligere kutt vurderes *Produksjonskapasitet ved slutten av Omsmelting vesentlig redusert ~ tonn på årlig basis tatt ut av produksjon Framtidig utvikling avhengig av markedet Tiltak på innkjøp av viktigste innsatsfaktorer Petroleumskoks størst virkning Brenselsolje, kaustisk soda, kull, frakt og legeringer Programmer for kostnadsreduksjon Betydelige kutt i investeringer (16)

17 Aluminium Produkter Gjennomsnittlig antall heltidsansatte (~2 200) / (14 %) kvartal 4. kvartal Videre framover* Ekstruderte Produkter Valsede Produkter Automotive Reduksjon i bemanning Innkjøpstiltak Utnytte fallende råvarepriser Reforhandling av transportkontrakter Utsette forbruk som ikke er tidsavhengig Reduksjon av varelager Investeringskostnader redusert med 50 % fra til 2009 *Markedsavhengig (17)

18 (18) Resultater og drift

19 Underliggende EBIT Millioner kroner Lagernedskrivinger inkludert i underliggende EBIT i Primæraluminium og omsmeltevirksomheten (19)

20 Rapportert mot underliggende EBIT Millioner kroner 4. kvartal 3. kvartal 4. kvartal Året Året Underliggende EBIT Urealiserte effekter kraftkontrakter Urealiserte LME og andre derivateffekter Metalleffekt, Valsede Produkter Vesentlige rasjonaliserings og nedstengingskostnader Nedskrivinger Tapsavsetninger (kraftkontrakter) (Gevinst)/tap på avhendelser og annet (2 249) (407) (109) (2 464) (257) (185) (664) (96) (300) (55) (244) (768) (1 434) (235) (109) (2 464) (257) 453 (928) 6 (235) (224) (144) 397 Rapportert EBIT (3 106) (20)

21 Nøkkeltall Millioner kroner Driftsinntekter Året Året Underliggende EBIT Poster ekskludert fra underliggende EBIT (4 815) (1 128) Rapportert EBIT Finansinntekter (kostnader) netto (5 026) Resultat fra videreført virksomhet før skatt (3 832) Skattekostnad 565 (3 075) Rapportert resultat fra videreført virksomhet (3 267) Rapportert resultat per aksje fra videreført virksomhet kroner (3.04) 7.16 Underliggende resultat per aksje fra videreført virksomhet kroner (21)

22 Bauksitt og Alumina Nøkkeltall Resultat 4. kvartal Aluminaproduksjon, tusen tonn Alunorte, millioner kroner 1) Annet, millioner kroner Underliggende EBIT, millioner kroner 4. kv (65) kv (31) kv (25) 27 Alunorte 3 produserer ved full kapasitet Lavere aluminapriser Lavere energikostnader Positiv effekt fra sikring av aluminapris 1) Underliggende andel av periodens resultat Underliggende EBIT Millioner kroner Utsikter Vesentlig lavere aluminapris Økte kostnader for kaustisk soda Forsinkelse i prising av bauksitt har negativ effekt på resultatet Produksjon ved Alpart kuttet med 50 % (22)

23 Primæraluminium Nøkkeltall Resultat 4. kvartal Primærproduksjon, tusen tonn Total støperiproduksjon, tusen tonn Totalt salgsvolum, tusen tonn 4. kv kv kv Høyere realiserte priser i kroner Økte karbonkostnader Reduksjon i støperivolum Lagernedskrivinger på 538 millioner kroner Realisert LMEpris, USdollar/tonn Realisert LMEpris, kroner/tonn Underliggende EBIT, millioner kroner Underliggende EBIT Millioner kroner Utsikter Alumina og karbonkostnader vil synke ~10 % lavere primærproduksjon i 1. kvartal på grunn av nedstenginger ~85 % av produksjonen som påvirker resultat i 1. kvartal er priset til USdollar per tonn ved utgangen av (23)

24 Metall og råvarehandel Nøkkeltall Resultat 4. kvartal Produksjon av omsmeltet metall, tusen tonn Totalt salg av metallprodukter, tusen tonn Underliggende EBIT, millioner kroner 4. kv (79) 3. kv (147) 4. kv Kraftig fall i salgsvolumer fører til kutt i omsmelteproduksjonen Lagernedskriving på 156 millioner kroner Positivt bidrag fra handels og sikringsvirksomheten og sikringsstrategi Underliggende EBIT Millioner kroner (147) (79) Utsikter Svakere markeder Ytterligere fall i salg forventet for alle produktkategorier Volatile resultater i handels og sikringsvirksomheten (24)

25 Valsede Produkter Nøkkeltall Resultat 4. kvartal Eksternt salg, tusen tonn Underliggende EBIT, millioner kroner 4. kv kv kv 246 (31) Salgsvolum kraftig ned, unntatt litografiske produkter Fortsatt solide marginer Underliggende EBIT Millioner kroner Utsikter Vedvarende fall i markedet, spesielt innenfor transport og bildeler Økt kostnadspress og press på marginer på grunn av lavere utnyttelsesgrad (31) (25)

26 Ekstruderte Produkter Nøkkeltall Resultat 4. kvartal Eksternt salg, tusen tonn Underliggende EBIT, millioner kroner 4. kv 103 (88) 3. kv kv Kraftig volumnedgang, mer enn sesongmessig nedgang Fortsatt solide resultater fra Byggsystemer Virksomheten i USA påvirket av lagernedskrivinger Underliggende EBIT Millioner kroner Utsikter Vesentlig lavere etterspørsel i Europa Fortsatt svakt marked i USA 88 (26)

27 Automotive Nøkkeltall Resultater 4. kvartal External sales volumes, kmt 4. kv kv kv 29 Salgsvolum ned mer enn 30 % Samlet resultat fortsatt utilfredsstillende Underlying EBIT, NOK million (235) (92) (75) Underliggende EBIT Millioner kroner (67) (326) 57 (2) 2 (49) (75) (92) Utsikter Ingen tegn til bedring i markedet for bildeler Ytterligere nedbemanning og kostnadskutt (235) (27)

28 Energi Nøkkeltall Resultat 4. kvartal Kraftproduksjon, GWh 4. kv kv kv Høye spotpriser Høy produksjon og høyt netto spotsalg Netto spotsalg, GWh Spotpris for elektrisitet i SørNorge (NO1), kroner/mwh Underliggende EBIT, millioner kroner Underliggende EBIT Millioner kroner Utsikter Magasinfylling under normalnivå Høy sesongmessig produksjon i 1. kvartal Lavere spotpriser (28)

29 (29) Kapitalallokering

30 Kapitalavkastning Underliggende RoaCE Hydro Aluminium Metall Aluminium Produkter Energi 21.2% 22.3% 23.1% 20.2% 14.5% 16.2% 16.3% 6.8% 7.4% 4.6% 5.8% 4.5% Sysselsatt kapital 31. desember (milliarder kroner) 50,6 36,8 16,1 3,5 (30)

31 Utvikling i kontantstrøm Milliarder kroner Drift Investeringer* Avhendelser Utbytte og tilbakekjøp av aksjer Finansiering inkl. termininnskudd i banker Netto kontantstrøm 2,9 (8,8) 5,8 (6,5) 0,5 (6,0) Driften er negativt påvirket av realiserte tap på sikringsvirksomhet i USdollar Viktigste vekstinvesteringer i Qatalum 3,1 milliarder kroner Alunorte 0,5 milliarder kroner Alumafel 0,5 milliarder kroner Avhendelser i Polymers 5,1 milliarder kroner Produksjonspartner & Produksjonstjenester 0,5 milliarder kroner *Eksklusive prosjektfinansiering (31)

32 Pensjoner Millioner kroner Beregnet pensjonsforpliktelse Pensjonsmidler til markedsverdi Førtidspensjoner og øvrige Netto pensjonsforpliktelse 31. desember (23 440) (764) (11 818) 31. desember (20 584) (780) (5 785) Forutsetninger ved slutten av året (veid gjennomsnitt) Diskonteringsrente Forventet avkastning Forventet lønns og pensjonsregulering 31. desember 4,7 % 5,7 % 3,8 % 31. desember 5,0 % 6,3 % 3,7 % Ikke resultatført netto (gevinst) tap Netto balanseført pensjonsforpliktelse (8 496) (1 888) (7 675) Økte pensjonsforpliktelser, hovedsakelig grunnet redusert diskonteringsrente Millioner kroner Årlig pensjonsopptjening Rentekostnader Reduksjon i pensjonsmidler grunnet generell nedgang i det finansielle markedet Forventet avkastning (911) (872) Amortisering Redusert opptjeningstid/frikjøp Tilskuddsplaner Førtidspensjoner og øvrige (27) (3) (8) Netto periodisert pensjonskostnad estimert til å øke med ~500 millioner kroner i 2009 Netto periodisert pensjonskostnad (32)

33 Finansiell stilling Ingen rentebærende gjeld ved utgangen av Kredittfasiliteter ~12 milliarder kroner (1,7 milliarder USdollar) i flervaluta fasilitet med løpetid til 2014 ~1,3 milliarder kroner kortsiktig Ubenyttet per i dag Qatalum: 5,6 milliarder USdollar (100 %) 2,6 milliarder USdollar prosjektfinansiering ~1,2 milliarder USdollar utestående ved slutten av 3,0 milliarder USdollar i egenkapital fra eiere ~1,6 milliarder USdollar gjenværende ved slutten av Ytterligere finansiering vil bli tatt opp i 2009 Sertifikatlån på 1 milliard kroner utstedt i februar Netto kontanter/(gjeld) i milliarder kroner kvartal Milliarder kroner kvartal Netto kontanter/(gjeld) Rentebærende gjeld i tilknyttede selskaper Andre justeringer * Netto justert kontanter/(gjeld) kvartal 4. kv 10,8 (3,2) (8,4) (0,8) 1. kv 12,8 (2,3) (9,2) 1, kvartal 2. kv 8,7 (3,0) (7,8) (2,1) 3. kv (3,3) (8,9) (5,5) kvartal *Netto pensjonsforpliktelser, operasjonelle leieforpliktelser og annet 6,7 4. kv 3,5 (4,9) (14,0) (15,4) (33)

34 Beholde finansiell fleksibilitet Redusere investeringer 2009 (ekskl. Qatalum): redusert med 40 % (ekskl. Qatalum): redusert med 15 % Korrigerende tiltak iverksatt fokus på kontantstrøm Kostnadskutt Produksjonsnedstenginger Reduserte innkjøpskostnader Redusere arbeidskapital Proaktiv oppfølging av motpartsrisiko Investeringer, milliarder kroner 12,3 ~11,5 6,0 ~4,5 Opprettholde investment grade kredittvurdering BBB (S&P), Baa1 (Moody s) (under vurdering) 2009E 2010E Styret foreslår ikke utbytte for Investeringer Qatalum prosjektfinansiering Qatalum finansiert av Hydro (34)

35 Qatalum i rute 60 % ferdigstilt ved utgangen av anleggsarbeidere ved utgangen av Hovedaktiviteter Konstruksjon av bygninger, lagersiloer og havnefasiliteter Installering av utstyr og maskineri Investering Estimat (100 %) ~5,6 milliarder USdollar I rute for oppstart i 2009/2010 Posisjonert blant de 10 % beste på kostnadskurven (35)

36 Prioriteringer i 2009 Proaktive korrigerende tiltak Produksjonskutt Kostnadsreduksjoner og marginstyring Arbeidskapital og motpartsrisiko Kontantstrømfokus opprettholde finansiell fleksibilitet Solid drift Gjennomføring av Qatalum (36)

37 Cautionary note in relation to certain forwardlooking statements Certain statements included within this announcement contain forwardlooking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management s plans, objectives and strategies for Hydro, such as planned expansions, investments or other projects, (c) targeted production volumes and costs, capacities or rates, startup 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, as well as (i) statements preceded by expected, scheduled, targeted, planned, proposed, intended or similar statements. Although we believe that the expectations reflected in such forwardlooking statements are reasonable, these forwardlooking 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 forwardlooking 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 aluminium business; 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. Hydro disclaims any obligation to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. (37)

38 (38) Additional information

39 Underlying income NOK million Reported income Adjustments Underlying income Aluminium Metal Aluminium Products Energy Corporate and other Total EBIT Financial income (expense), net Income (loss) continuing operations before tax Income taxes 1) Income (loss) from continuing operations Income (loss) from discontinued operations Net income (loss) Net income attributable to minority interest Net income (loss) attributable to equity holders of the parent Earnings per share from continuing operations NOK 2) (1 725) (2 946) (3 106) (4 487) (7 593) (5 845) (1) (5 846) 170 (6 016) (4.99) (1 207) (2 943) (239) (1 195) (184) (1) (185) (0.29) 1 To present underlying income from continuing operations we have calculated the income tax effect of currency gains/losses with 28% and of items excluded from underlying EBIT based on Hydro's effective tax rate excluding financial items. In previous quarters, this calculation has been based on Hydro's overall effective tax rate 2 Calculated using income from continuing operations less net income attributable to minority interests (39)

40 Underlying income NOK million Reported income Adjustments Underlying income Aluminium Metal Aluminium Products Energy Corporate and other Total EBIT Financial income (expense), net Income continuing operations before tax Income taxes 1) Income from continuing operations Income from discontinued operations Net income Net income attributable to minority interest Net income attributable to equity holders of the parent Earnings per share from continuing operations NOK 2) (288) (1 980) 434 (201) (760) 610 (39) (734) (924) (248) (239) (449) To present underlying income from continuing operations we have calculated the income tax effect of currency gains/losses with 28% and of items excluded from underlying EBIT based on Hydro's effective tax rate excluding financial items. In previous quarters, this calculation has been based on Hydro's overall effective tax rate 2 Calculated using income from continuing operations less net income attributable to minority interests (40)

41 Underlying income NOK million Reported income Adjustments Underlying income Aluminium Metal Aluminium Products Energy Corporate and other Total EBIT Financial income (expense), net Income continuing operations before tax Income taxes 1) Change in tax rate Germany Income from continuing operations Income from discontinued operations Net income Net income attributable to minority interest Net income attributable to equity holders of the parent (326) 376 (907) (35) (74) (353) (50) (50) (295) (50) Earnings per share from continuing operations NOK 2) To present underlying income from continuing operations we have calculated the income tax effect of currency gains/losses with 28% and of items excluded from underlying EBIT based on Hydro's effective tax rate excluding financial items. In previous quarters, this calculation has been based on Hydro's overall effective tax rate 2 Calculated using income from continuing operations less net income attributable to minority interests (41)

42 Reported and underlying results Hydro NOK million Year Year Year Reported EBIT Underlying EBIT (664) (3 106) Income (loss) from continuing operations (5 845) (3 267) Underlying income (loss) from continuing operations (184) Earnings per share from continuing operations 1) (4.99) (3.04) Underlying earnings per share from continuing operations 1) (0.29) Calculated using income from continuing operations less net income attributable to minority interests (42)

43 Items excluded from underlying results NOK million Unrealized derivative effects on currency contracts (Alunorte) Unrealized derivative effects on LME related contracts (Alunorte) Impairment charges (PP&E) 1) Rationalization charges and closure costs Unrealized derivative effects on power contracts Unrealized derivative effects on power contracts (Søral) Unrealized derivative effects on currency contracts (Qatalum) Bauxite and Alumina Bauxite and Alumina Bauxite and Alumina Primary Aluminium Primary Aluminium Primary Aluminium Primary Aluminium Impairment charges (PP&E) 1) Primary Aluminium Loss provision (power contracts) Primary Aluminium Impairment charges (PP&E) 1) Commercial Unrealized derivative effects on LME related contracts Other and eliminations 79 (317) (485) 497 (225) Total impact Aluminium Metal 539 (515) (760) Metal effect Rolled Products 113 (247) (38) Impairment charges (PP&E) 1) Rolled Products Impairment charges (PP&E) 1) Extrusion Impairment charges (PP&E) 1) Automotive Rationalization charges and closure costs Automotive Unrealized derivative effects on LME related contracts Other and Elim. (738) (7) Total impact Aluminium Products (625) (253) Unrealized derivative effects on power contracts Energy (5) (6) (6) (5) (22) Impairment charges (PP&E) 1) Energy (Gains)/losses on divestments Energy (34) (34) Unrealized derivative effects on power contracts Energy (5) (6) (39) Unrealized derivative effects on power contracts Corporate, other & elim (740) (1 183) Unrealized derivative effects on LME related contracts Corporate, other & elim. 16 (8) (Gains)/losses on divestments Corporate, other & elim. (389) (29) (419) Total impact Corporate, other & elim (734) (1 207) 688 Total EBIT Hydro (924) Net foreign exchange (gain)/loss Hydro (854) (298) Income (loss) from continuing operations before tax Hydro (1) Calculated income tax effect Hydro (66) (204) (248) (2 943) (3 460) Income (loss) from continuing operations Hydro (67) (16) (106) (8) 10 (91) (4) 203 (134) (342) 50 (53) 271 (37) (442) 150 (6) 352 (96) (426) 129 (37) 1 Not included in EBITDA (43)

44 Items excluded from underlying results NOK million Equity accounted units Monetary adjustments Alunorte Equity accounted units unrealized (gains)/losses on LME contracts Alunorte Closure costs Unrealized (gains)/losses on power contracts Equity accounted units unrealized (gains)/losses power contracts Søral Embedded currency derivatives Qatar Impairment Ellenville 1) Unrealized (gains)/losses on LME contracts Correction of elimination of gain on inventory Total impact Metal effect Rationalization costs Equity accounted units Change in tax rate Germany Rationalization costs US and UK (Gains)/losses on divestments (Gains)/losses on divestments Rationalization costs Unrealized (gains)/losses on LME contracts Total impact Unrealized (gains)/losses on power contracts Unrealized (gains)/losses on power contracts Correction of elimination of gain on inventory Total EBIT Net foreign exchange (gain)/loss Income (loss) from continuing operations before tax Estimated income tax effect Germany, change in tax rate Income (loss) from continuing operations Bauxite & Alumina Bauxite & Alumina Primary Aluminium Primary Aluminium Primary Aluminium Primary Aluminium Commercial Other and eliminations Other and eliminations Aluminium Metal Rolled Products Rolled Products Rolled Products Extrusion Extrusion Automotive Automotive Other and Elim. Aluminium Products Energy Corporate and other Corporate and other Hydro Hydro Hydro Hydro Hydro Hydro (33) (13) (303) (158) (149) (691) 23 (817) (22) 207 (790) (464) (1 254) 359 (859) (64) (175) (25) 144 (80) (91) (27) (135) (116) (517) (633) 204 (429) (35) (108) (1) (35) 221 (58) 673 (1 199) (526) 115 (250) (661) (35) (82) 8 76 (2) (47) (17) (35) (74) (353) (50) 884 (167) (163) (303) 118 (100) (47) 63 (17) (624) (119) (2 254) (1 126) 325 (300) (1 101) 1 Not included in EBITDA (44)

45 Operating segment information Underlying EBIT NOK million Year Year Year Bauxite & Alumina Primary Aluminium Commercial (147) (79) Other and eliminations (9) 18 (13) (60) (37) (36) (65) Aluminium Metal Rolled Products (31) Extrusion (88) Automotive (72) (66) 57 1 (49) (75) (2) 2 (92) (235) (51) (67) (326) Other and eliminations (0) (6) 8 5 (6) Aluminium Products (239) Energy Corporate and other (301) (129) (216) (75) (257) (349) 9 (50) 8 (140) (239) 81 (721) (647) (290) Total (45)

46 Operating segment information Underlying EBITDA NOK million Year Year Year Bauxite & Alumina Primary Aluminium Commercial (121) (47) Other and eliminations (9) 18 (13) (60) (37) (36) (65) Aluminium Metal Rolled Products Extrusion Automotive (10) (38) (171) (97) Other and eliminations (6) 8 5 (6) Aluminium Products Energy Corporate and other (289) (127) (205) (70) (241) (333) 24 (34) 21 (128) (228) 111 (692) (585) (224) Total (46)

47 Operating segment information EBIT NOK million Year Year Year Bauxite & Alumina (57) (585) (433) Primary Aluminium (625) Commercial (147) (114) Other and eliminations 430 (87) 22 (341) (85) (115) (401) Aluminium Metal (1 725) Rolled Products (156) (313) (446) Extrusion (156) (341) Automotive 20 (49) (367) (487) 748 (15) (89) (105) (2) 2 (92) (635) (884) 539 (726) Other and eliminations 153 (12) (286) 50 (21) (28) (440) (104) (648) (1 524) (94) (592) (1 427) Aluminium Products (435) (481) (247) (326) (288) (2 946) (104) (1 450) Energy Corporate and other 479 (239) (198) (1 498) (465) (214) (154) (907) (936) (1 825) (1 456) (1 741) (978) Total (664) (3 106) (47)

48 Operating segment information EBITDA NOK million Year Year Year Bauxite & Alumina (53) (68) Primary Aluminium Commercial (121) (47) Other and eliminations 430 (87) 22 (341) (85) (115) (401) Aluminium Metal Rolled Products (183) (163) Extrusion (23) Automotive (187) (25) (38) (38) (201) (127) Other and eliminations 153 (12) (286) 50 (21) (28) (440) (104) (648) (1 524) (94) (592) (1 427) Aluminium Products (22) (1 859) Energy Corporate and other 491 (237) (187) (1 493) (449) (198) (139) (892) (923) (1 813) (1 427) (1 678) (912) Total (48)

49 Operating segment information Total revenue NOK million Year Year Year Bauxite & Alumina Primary Aluminium Commercial Other and eliminations (11 868) (12 136) (10 715) (11 976) (12 433) (12 199) (10 550) (9 464) (10 264) (11 862) (11 029) (9 040) (46 695) (44 646) (42 195) Aluminium Metal Rolled Products Extrusion Automotive Other and eliminations (228) (194) (202) 361 (209) (226) (236) (184) (133) (191) (189) (280) (263) (855) (793) Aluminium Products Energy Corporate and other (6 858) (7 198) (7 363) (8 985) (7 294) (5 996) (5 667) (6 185) (6 226) (7 695) (4 690) (3 537) (30 404) (25 143) (22 149) Total (49)

50 Operating segment information External revenue NOK million Year Year Year Bauxite & Alumina Primary Aluminium Commercial Other and eliminations 356 (141) 36 (332) (182) (82) Aluminium Metal Rolled Products Extrusion Automotive Other and eliminations (25) 17 2 (62) (14) 55 (55) 51 (56) Aluminium Products Energy (27) 737 (823) (83) Corporate and other (165) Total (50)

51 Operating segment information Internal revenue NOK million Year Year Year Bauxite & Alumina Primary Aluminium Commercial Other and eliminations (12 224) (11 995) (10 750) (11 643) (12 470) (12 236) (10 658) (9 282) (10 264) (11 862) (11 029) (9 040) (46 613) (44 646) (42 195) Aluminium Metal Rolled Products Extrusion (363) Automotive Other and eliminations (294) (204) (177) 361 (226) (228) (174) (170) (189) (136) (189) (280) (314) (798) (793) Aluminium Products (45) Energy Corporate and other (7 276) (7 569) (7 551) (8 820) (7 550) (6 250) (5 897) (6 822) (6 732) (7 820) (4 825) (3 709) (31 216) (26 519) (23 087) Total (51)

52 (52) (168) (183) 17 (2) 854 (2) Year (24) Year (915) 2 (391) (35) (2) 19 (52) (491) (1) (170) (320) Year (1 154) 6 (350) (29) (1) 9 (37) (782) (1) (261) (520) 77 (3) (12) (3) 3 (6) (3) (16) 3 (1) 5 (2) (94) 1 (13) (6) 1 (7) (77) (40) (37) Extrusion (1) 4 10 (235) Automotive 42 (6) (7) 7 (6) 7 1 (4) Rolled Products Bauxite & Alumina (28) (3) (90) Primary Aluminium (1) Commercial (8) (3) (25) (1) (224) (12) 248 (1) (8) Aluminium Products 326 Total 10 Energy 1 Corporate and other 323 Aluminium Metal NOK million Operating segment information Share of profit /(loss) in equity accounted investments

53 Operating segment information Depreciation, amortization and impairment NOK million Year Year Year Bauxite & Alumina Primary Aluminium Commercial Aluminium Metal Rolled Products Extrusion Automotive Aluminium Products Energy Corporate and other Total (53)

54 Income statement NOK million Year Year Revenue Share of the profit (loss) in equity accounted investments Other income, net (1 154) (915) Total revenue and income Depreciation, amortization and impairment Other expenses Earnings before financial items and tax (EBIT) (3 106) Financial income (expense), net Income (loss) from continuing operations before tax Income taxes Tax rate (4 487) (7 593) % (1 980) 434 (201) 46% (12)% (5 026) (3 832) % (3 075) 25% Income (loss) from continuing operations (5 845) (3 267) Income (loss) from discontinued operations (1) (247) Net income (loss) Net income attributable to minority interest Net income (loss) attributable to equity holders of the parent (5 846) 170 (6 016) (3 514) 411 (3 925) Earnings per share from continuing operations NOK 1) (4.99) (3.04) ) Calculated using income from continuing operations less net income attributable to minority interests (54)

55 Balance sheets NOK million December 30, September 30, June 30, March 31, December 31, Cash and cash equivalents Shortterm investments Receivables and other current assets Inventories Assets held for sale / Discontinued operations Property, plant and equipment Other noncurrent assets Total assets Bankloans and other shortterm interestbearing debt Other current liabilities Liabilities in disposal group / Discontinued operations Longterm interestbearing debt Other longterm liabilities Deferred tax liabilities Equity attr. to equity holders of the parent Minority interest Total liabilities and equity (55)

56 Financial policy Maintain investmentgrade rating Currently: BBB (S&P), Baa1 (Moody s) Competitive access to capital and important for Hydro s business model Financial ratios over the business cycle Funds from operations to net adjusted debt > 40% Net adjusted debt to equity < 0.55 Dividend policy 30% of net income over time Share buyback and extraordinary dividends as supplement in periods with strong financials NOK billion Dec 31, Dec 31, Cash and cash equivalents Shortterm investments Shortterm debt Longterm debt Net cash/(debt) Cash and shortterm investments in captive insurance company Net pension liability at fair value, net of expected tax benefit Operating lease commitments, net of expected tax benefit Net interestbearing debt in equity accounted investments Other financial obligations, net of expected tax benefit Net adjusted cash/(debt) (1.2) (0.3) 3.5 (1.7) (9.6) (1.9) (4.9) (0.9) (15.4) (1.0) (0.3) 10.8 (2.0) (5.1) (1.5) (2.1) (0.7) (0.8) (56)

57 Capital employed upstream focus Rolled Products 17% Extrusion 11% Automotive 2% Energy 6% Bauxite & Alumina 11% NOK million Bauxite & Alumina Primary Aluminium Commercial Other and eliminations Aluminium Metal Rolled Products Extrusion Automotive Other and eliminations Aluminium Products Energy Corporate and other Total Dec 31, (1 382) (5 791) Commercial 9% Primary Aluminium 44% Graph excludes NOK 5.8 billion in negative capital employed in Corporate and Other and NOK 1.4 billion in negative capital employed in Aluminium Products (57)

58 Price and currency sensitivities Aluminium price sensitivity +/ 100 USD per tonne NOK/USD sensitivity +/ 0.1 NOK EBIT Net income EBIT Net income 0 Financial items Net income Annual sensitivities Aluminium price sensitivity is net of aluminium price indexed costs NOK/USD sensitivity includes USD revenues and costs (100) (200) 0 (180) Income before tax 40 (130) Net income 30 Based on expected business volumes for 2009 and the following prices: Aluminium USD/tonne NOK/USD 7.00 LME sensitivity excludes unrealized effects related to operational hedging USD sensitivity on financial items is based on financial positions end (58)

59 Primary aluminium production tonnes Slovalco consolidated from 2004 (59)

60 Nordic power market forward curves NOK/MWh Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 End End End End End End (60)

61 Power price and volume Nordic System Price NOK/MWh 600 Hydropower production TWh (61)

62 Aluminium Metal operational data Volumes and prices Realized premium above LME (USD/mt) Realized premium above LME (NOK/mt) Bauxite & Alumina: Alumina production (1 000 mt) Primary Aluminium: Primary production (1 000 mt) Total casthouse production LME realized (USD/mt) including hedges 1) NOK/USD realized including hedges LME realized (NOK/mt) including hedges 1) LME realized (USD/mt) excluding hedges 1) NOK/USD realized excluding hedges LME realized (NOK/mt) excluding hedges 1) , , )In the fourth quarter of, Hydro changed its definition of realized prices to be determined when products are shipped and invoiced to customers. Previously, realized prices were determined as liquid metal is transferred from electrolysis to casthouses for further processing. This price mainly reflected the prevailing three month forward LME aluminium price three months prior to production. The casting process results in about an additional three week time lag before metal is finally shipped and invoiced to customers. Prior periods have been restated to reflect the change in definition. (62)

63 Aluminium Metal operational data Volumes and prices Commercial: Remelt production (1 000 mt) Sale of metal products from own production (1 000 mt) Sale of thirdparty metal products (1 000 mt) Total metal products sales excluding ingot trading (1 000 mt) Hereof external sales (1 000 mt) External sales revenue (NOK million) (63)

64 Aluminium Products operational data Rolled Products external shipments (1 000 tonnes) Extrusion external shipments (1 000 tonnes) Automotive external shipments (1 000 tonnes) Rolled Products EBIT per tonne, NOK 1) Extrusion EBIT per tonne, NOK 1) (122) (851) 1) Underlying EBIT Energy operational data Volumes and prices Power production, GWh Net spot sales, GWh Nordic spot electricity price, NOK/MWh South Norway spot electricity price (NO1), NOK/MWh (64)

65 Investor Relations in Hydro Stefan Solberg Head of Investor Relations t: m: e: Stian Hasle Investor Relations Officer t: m: e: Irene Raposo Investor Relations Assistant t: m: e: Next investor event: First quarter results, April 29, 2009 For more information see: (65) 02/

66 (66)