Første kvartal 2005 John Ottestad, CFO 26.04.2005
Hovedpunkter første kvartal Høye råvarepriser God kostnadskontroll Rekordresultater 53948 04 2005 2 Hydro Media
Sterke råvarepriser svak dollar Aluminiumpris LME 3m Oljepris Brent USD/tonn USD/fat 2000 NOK indeks USD 45 NOK indeks USD 1800 40 35 1600 30 1400 25 20 1200 15 1000 1999 2000 2001 2002 2003 2004 2005 10 1999 2000 2001 2002 2003 2004 2005 53948 04 2005 3 Hydro Media
Resultat fra videreført virksomhet* Per kvartal Millioner kroner 3 100 Gevinster fra avhendelse 2 991 3 135 3 638 3 693 2 342 1 851 1 809 2 005 2 224 2 480 1 417 241 2002 2003 2004 2005 Akkumulert 7 100 8 656 11 477 3 693 * Etter endringer i regnskapsprinsipper i 1. kvartal 2003, som utgjorde en positiv effekt på 281 millioner kroner 53948 04 2005 4 Hydro Media
Resultatregnskap Millioner kroner Driftsinntekter Driftsresultat Tilknyttede selskaper Finansinntekter (kostnader), netto Andre poster Resultat fra videreført virksomhet før skatt og minoritetsinteresser Skattekostnad Minoritetsinteresser Resultat fra videreført virksomhet Resultat fra avhendet virksomhet Resultat etter skatt Resultat per aksje fra videreført virksomhet (i kroner) Resultat per aksje fra avhendet virksomhet (i kroner) Resultat per aksje (i kroner) 1. kvartal 2005 42 152 11 754 213 (910) 11 057 (7 283) (81) 3 693 3 693 14,70 14,70 1. kvartal 2004 39 082 9 276 131 (624) 110 8 893 (5 786) 28 3 135 1 083 4 218 12,30 4,20 16,50 * For beregning avresultat per aksje, 1. kvartal 2005: 250 839 230 aksjer, 1. kvartal 2004: 255 732 220 aksjer 53948 04 2005 5 Hydro Media
Rekordhøy kontantinntjening Resultat før rentekostnader, skatt og avskrivninger (justert EBITDA) Millioner kroner 15 852 13 546 12 266 12 094 13 211 11 045 9 820 9 935 9 451 7 199 7 955 8 197 6 775 2002 2003 2004 2005 Akkumulert 31 749 38 628 51 117 15 852 53948 04 2005 6 Hydro Media
Driftsresultat Per segment Millioner kroner Utforsking og Produksjon Energi og Oljemarkedsføring Elimineringer Olje & Energi Metall Valsede Produkter Extrusion og Automotive Annet og elimineringer Aluminium Øvrige virksomheter Konsernaktiviteter og elimineringer Totalt 1. kvartal 2005 9 057 1 046 (261) 9 842 1 239 230 (36) (92) 1 341 175 396 11 754 1. kvartal 2004 7 082 733 3 7 818 968 148 182 331 1 629 93 (264) 9 276 53948 04 2005 7 Hydro Media
Olje & Energi driftsresultat Driftsresultat, millioner kroner Utforsking og Produksjon Energi og Oljemarkedsføring Elimineringer Olje & Energi 1. kvartal 2005 9 057 1 046 (261) 9 842 1. kvartal 2004 7 082 733 3 7 818 Operasjonelle data Olje og gassproduksjon (1.000 foe/dag) Realisert oljepris, USD/fat Realisert oljepris, NOK/fat Realisert gasspris, NOK/Sm³ Utforsking kostnadsført, millioner kroner 1. kvartal 2005 584 46,4 291,7 1,47 308 1. kvartal 2004 615 31,6 218,3 1,10 249 53948 04 2005 8 Hydro Media
Aluminium driftsresultat Driftsresultat, millioner kroner Metall Valsede Produkter Extrusion og Automotive Annet og elimineringer Aluminium 1. kvartal 2005 1 239 230 (36) (92) 1 341 1. kvartal 2004 968 148 182 331 1 629 Operasjonelle data Realisert aluminiumpris, USD/tonn Produksjon primæraluminium (1.000 tonn) 1. kvartal 2005 1 793 444 1. kvartal 2004 1 528 415 53948 04 2005 9 Hydro Media
Gjeldsgrad 0,6 0,38 0,11 0,07 2002 2003 2004 2005 Rentebærende gjeld + netto pensjonsforpliktelse (skattejustert) + forpliktelser relatert til leie og leasingavtaler (diskontert) kontanter og bankinnskudd andre betalingsmidler dividert med egenkapital + minoritetsinteresser 53948 04 2005 10 Hydro Media
Olje &Energi hovedpunkter Rekordresultat Tre utbyggingsplaner godkjent, tre nye levert Fem utforskingsbrønner to funn Troll Olje kumulativ produksjon: 1 milliard fat 53948 04 2005 11 Hydro Media
Olje & Energi driftsresultat Millioner kroner Utforsking og Produksjon Elimineringer Energi og Oljemarkedsføring 8 621 7 818 7 521 7 184 9 842 5 384 6 175 5 994 5 322 3 707 3 686 3 170 3 652 2002 2003 2004 2005 Akkumulert 15 947 21 143 31 144 9 842 53948 04 2005 12 Hydro Media
Petroleumproduksjon per kvartal 1 000 foe/dag 615 Olje Gass 596 591 569 584 540 552 166 173 514 482 484 489 147 176 178 448 452 143 156 123 104 112 116 430 442 110 88 422 415 397 396 378 391 406 364 372 373 338 Snitt 2002 2003 2004 480 530 572 2005 584 53948 04 2005 13 Hydro Media
Produksjonskostnader per fat NOK/foe 23,2 22,9 23,9 20,1 19,8 25,6 21,1 21,0 24,0 22,3 19,6 17,4 17,1 Snitt vektet 2002 2003 2004 22,6 20,7 20,7 2005 19,6 53948 04 2005 14 Hydro Media
Oljepris drevet avtilbudssiden OPEC ledig kapasitet på lavt nivå USD/fat 60 50 40 30 20 10 millioner fat/dag 5 4 3 2 1 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 0 Kilder: Pira, Reuters, Platts OPEC ledig kapasitet Brent Brent forward 53948 04 2005 15 Hydro Media
Olje & Energi utsikter Fortsatt høy oljepris Volatile energimarkeder i Europa 2005 produksjonsmål opprettholdes 575 000 fat/dag 2005 maksimal produksjonskostnad opprettholdes NOK 24/fat Høy leteaktivitet Riggkapasitet sikret 53948 04 2005 16 Hydro Media
Aluminium hovedpunkter Økt aluminiumpris realisert USD 1 793/tonn Aluminiumsproduksjon opp 7 prosent Godt bidrag fra forbedringsprogrammene Svakere nedstrømsmarked 53948 04 2005 17 Hydro Media
Aluminium kommentarer Metaller Rekordproduksjon, Sunndal i full produksjon Aluimprover vellykket gjennomført Valsede Produkter Flatt marked i Europa Økt salg innen høymarginprodukter Reversering av tapsavsetninger, NOK 100 millioner Ekstrusion & Automotive Svakere salgsvolum Nedstengningskostnader i Leeds, NOK 174 millioner Oppstart av ny produksjonslinje for støping av motorblokker, Dillingen 53948 04 2005 18 Hydro Media
Aluminium driftsresultat Millioner kroner Metall Extrusion og Automotive Valsede produkter Annet og eliminering 1 629 1 341 1 269 858 711 653 564 530 709 345 412 230 (1 951) 2002 2003 2004 2005 Akkumulert 1 698 2 456 1 805 1 341 53948 04 2005 19 Hydro Media
Aluminiummarkedet Aluminiumlager (forbruk i dager) Aluminiumpris (LME 3m) USD/tonn 2 200 2 000 1 800 1 600 1 400 1 200 70 60 50 40 30 dager 1 000 1999 2000 2001 2002 2003 2004 2005 20 53948 04 2005 20 Hydro Media
Aluminium utsikter Aluminiumprisen støttes av Lave lagre Høy kostnad på innsatsfaktorene Primæraluminium Konkurransedyktig produksjonsvekst Ekstrudering Fortsatt svak ordreinngang Valsede produker Oppstart av ny litholinje i Tyskland 53948 04 2005 21 Hydro Media
Hydro prioriteringer Driftsmessige forbedringer Førsteklasses prosjektgjennomføring Bedre lønnsomhet i aluminium Styrke ressursgrunnlaget innen olje og gass 53948 04 2005 22 Hydro Media
Tilleggsinformasjon
Adjusted income first quarter 2005 NOK million Exploration and Production Energy and Oil Marketing Eliminations Oil & Energy Metals Rolled Products Extrusion and Automotive Other and eliminations Aluminium Other activities Corporate and eliminations Total operating income 1st quarter 2005 9 057 1 046 (261) 9 842 1 239 230 (36) (92) 1 341 175 396 11 754 Adjustments (250) 271 21 6 (91) 174 86 175 (689) (493) Adjusted income 9 057 796 10 9 863 1 245 139 138 (6) 1 516 175 (293) 11 261 Nonconsolidated investees Financial income (expense), net 213 (910) 10 951 223 41 Income from continuing operations before tax and minority interest 11 057 468 11 525 Income tax expense Minority interest Income from continuing operations (7 283) (81) 3 693 (150) 318 (7 433) (81) 4 011 53948 04 2005 24 Hydro Media
Infrequent and other special items impacting income statement first quarter 2005 Accounting imbalance gas portfolio Eliminations of unrealized loss on internal gas contract Rationalization cost due to Aluimprover Inventory losses Reversal contract provisions Rationalization costs Leeds closure Unrealized loss on LME contracts Marktomarket of additional power contract Elimination of unrealized gain on internal power contracts Elimination of demanning cost Net impact on operating income Nonconsolidated investees currency gain for Alunorte Financial income (expense) net net currency loss Net impact on operating income from continuing operations before tax and minority interest Energy and Oil Marketing Oil & Energy eliminations Metals Rolled Products Rolled Products Extrusion and Automotive Aluminium Other and Elimination Corporate and Eliminations Corporate and Eliminations Corporate and Eliminations Metals Hydro group NOK million (250) 271 6 9 (100) 174 86 (224) (311) (154) (493) 10 951 468 53948 04 2005 25 Hydro Media
Adjusted income first quarter 2004 NOK million Exploration and Production Energy and Oil Marketing Eliminations Oil & Energy 1st quarter 2004 7 082 733 3 7 818 Adjustments (285) (285) Adjusted income 6 797 733 3 7 533 Metals Rolled Products Extrusion and Automotive Other and eliminations 968 148 182 331 (350) 968 148 182 (19) Aluminium Other activities Corporate and eliminations Total operating income Nonconsolidated investees Financial income (expense), net Other income (loss), net Income from continuing operations before tax and minority interest Income tax expense Minority interest Income from continuing operations 1 629 93 (264) 9 276 131 (624) 110 8 893 (5 786) 28 3 135 (350) (154) (789) 8 (110) (891) 166 (725) 1 279 93 (418) 8 487 139 (624) 8 002 (5 620) 28 2 410 53948 04 2005 26 Hydro Media
Infrequent and other special items impacting income statement first quarter 2004 Item Gain regarding sale of Gjøa Unrealized gain on LME postitions Elimination of unrealized loss on internal power contracts Net impact on operating income Nonconsolidated investees currency gain for Alunorte Other Income Net impact on income from continuing operations before tax and minority interest Exploration and Production Aluminium, Other and Eliminations Corporate and eliminations Metals Hydro group NOK million (285) (350) (154) (789) 8 (110) (891) 53948 04 2005 27 Hydro Media
Adjusted EBITDA Individual operating segment NOK million Exploration and Production Energy and Oil Marketing Eliminations Oil & Energy Metals Rolled Products Extrusion and Automotive Other and eliminations Aluminium Other activities Corporate and eliminations Total 1st quarter 2005 11 456 1 220 (260) 12 416 1 789 395 343 (91) 2 436 422 578 15 852 1st quarter 2004 9 593 907 3 10 503 1 473 335 568 332 2 708 480 (145) 13 546 53948 04 2005 28 Hydro Media
Depreciation, depletion and amortization Individual operating segment NOK million Exploration and Production Energy and Oil Marketing Oil & Energy Metals Rolled Products Extrusion and Automotive Aluminium Other activities Corporate and eliminations Total 1st quarter 2005 2 397 139 2 536 380 151 348 879 125 7 3 547 1st quarter 2004 2 472 148 2 620 412 172 359 943 131 2 3 696 53948 04 2005 29 Hydro Media
Net financial income (expense) NOK million Interest income Dividends and net gain (loss) on securities Interest income and other financial income Interest expense Capitalized interest Net foreign exchange gain (loss) Other Interest expense and foreign exchange gain (loss) Net financial income (expense) 1st quarter 2005 207 105 312 (410) 165 (951) (26) (1 222) (910) 1st quarter 2004 184 118 302 (565) 132 (454) (39) (926) (624) 53948 04 2005 30 Hydro Media
Equity in net income of nonconsolidated investees Individual operating segment NOK million Exploration and Production Energy and Oil Marketing Oil & Energy Metals Rolled Products Extrusion and Automotive Aluminium Other activities Corporate and eliminations Total 1st quarter 2005 1 25 26 116 (5) 28 139 48 213 1st quarter 2004 1 16 17 32 25 57 58 (1) 131 53948 04 2005 31 Hydro Media
Variance analysis Hydro group NOK million 2005 2004 Variance adjusted EBITDA Prices and currency, Exploration and Production (E&P) Margin incl. currency effects ¹ ) Volume Fixed costs Depreciation Production and exploration costs, E&P Infrequent items Trading and unrealized LME effects, Aluminium Other Variance operating income Nonconsolidated investees Interest income and other Other income Depreciation and amortization Variance adjusted EBITDA 1st quarter 15 852 13 546 2 306 3 345 350 (815) 590 140 (285) (5) (485) (355) 2 478 82 10 (110) (154) 2 306 1) Including positive variance for elimination of unrealized gain/loss on electricity contracts of NOK 388 million and a negative variance for elimination of the gain/loss on gas contracts of NOK 271 million. 53948 04 2005 32 Hydro Media
Investments 1) Individual operating segment NOK million Exploration and Production Energy and Oil Marketing Oil & Energy Metals Rolled Products Extrusion and Automotive Other and eliminations Aluminium Other activities Corporate and eliminations Total 1st quarter 2005 2 279 384 2 663 317 47 177 541 232 28 3 464 1st quarter 2004 1 839 218 2 057 2) 2 002 111 374 (1) 2 486 170 63 4 776 1) Additions to property, plant and equipment (capital expenditures) plus longterm securities, intangibles, longterm advances and investments in nonconsolidated investees 2) Includes effect of change in accounting principle (FIN 46R). Noncash increase in investment of NOK 1 275 million 53948 04 2005 33 Hydro Media
Consolidated balance sheet NOK million Cash and cash equivalents Other liquid assets Receivables and other current assets Inventories Noncurrent assets Total assets Shortterm interestbearing debt Current portion of longterm debt Other current liabilities Longterm interestbearing debt Other longterm liabilities Deferred tax liabilities Minority interest Shareholders' equity Total liabilities and shareholders' equity Shareholders' equity per share, NOK 31.03.2005 15 467 15 392 38 539 13 824 130 567 213 789 4 547 746 48 780 20 396 18 476 29 448 1 513 89 883 213 789 358.30 31.12.2004 14 366 10 970 32 219 12 851 129 837 200 243 3 785 568 41 724 19 487 17 703 29 515 1 571 85 890 200 243 342.40 53948 04 2005 34 Hydro Media
Statement of cash flow NOK million Operating activities: Net income Depreciation, depletion and amortization Other adjustments Net cash provided by operating activities Investing activities: Purchases of property, plant and equipment Purchases of other longterm investments Purchases of shortterm investments Proceeds from sales of property, plant and equipment Proceeds from sales of other longterm investments Proceeds from sales of shortterm investments Net cash used in investing activities Financing activities: Loan proceeds Principal repayments Ordinary shares purchased Ordinary shares issued Net cash used in financing activities Foreign currency effect on cash Net cash provided by discontinued operations Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 1st quarter 2005 3 693 3 547 1 228 8 468 (3 531) (38) (4 412) 1 115 349 (6 517) 508 (441) (981) 15 (899) 49 1 101 14 366 15 467 1st quarter 2004 4 218 3 696 625 8 539 (3 297) (199) 339 309 3 (2 845) 10 (2 956) (445) 9 (3 382) 125 9 470 11 907 14 873 26 780 53948 04 2005 35 Hydro Media
Operating income Adjusted EBIT Adjusted EBITDA First quarter 2005 NOK million Operating income Noncons. investees Interest income Selected fin. items Other income Adj. EBIT Depr. and amort. Adj. EBITDA Exploration and Production Energy and Oil Marketing Eliminations 9 057 1 046 (261) 1 25 2 9 (1) (1) 9 059 1 079 (261) 2 397 141 1 11 456 1 220 (260) Oil & Energy 9 842 26 11 (2) 9 877 2 539 12 416 Metals Rolled Products Extrusion and Automotive Other and eliminations 1 239 230 (36) (92) 116 (5) 28 2 1 4 43 4 (2) 1 1 400 230 (6) (91) 389 165 349 1 789 395 343 (91) Aluminium 1 341 139 7 46 1 533 903 2 436 Other activities Corporate and eliminations 175 396 48 17 172 56 5 296 573 126 5 422 578 Total 11 754 213 207 105 12 279 3 573 15 852 53948 04 2005 36 Hydro Media
Financial solidity calculation Amounts in NOK million 31 December 2001 31 December 2002 31 December 2003 31 December 2004 31 March 2005 [A] Cash and cash equivalents 27 148 5 965 15 249 14 366 15 467 [B] Other liquid assets 2 421 2 647 1 581 10 970 15 392 [C] Bank loans and other interestbearing shortterm debt (8 458) (7 306) (5 569) (3 785) (4 547) [D] Current portion of longterm debt (1 966) (1 958) (1 242) (568) (746) [E] Longterm debt (37 853) (30 902) (28 568) (19 487) (20 396) [F]=[A]+[B] +[C]+[D]+[E] Net interestbearing debt (18 708) (31 554) (18 549) 1 496 5 169 [G] Net pension liabilities at fair value (2 133) (10 107) (11 973) (10 056) (10 404) [H] Expected income tax benefit 30% 640 3 032 3 592 3 017 3 121 [I]=[G]+[H] Net pension liabilities tax adjusted (1 493) (7 075) (8 381) (7 039) (7 283) [J] Operating lease commitments discounted at 4.8% (2004: 10%) (5 072) (4 924) (4 916) (3 500) (4 062) [K]=[F]+[I] +[J] Adjusted net interestbearing debt (25 272) (43 552) (31 846) (9 043) (6 176) [L] Net pension liabilities not recognized without equity effect (2 767) (6 994) (7 862) (6 341) (6 338) [M] Expected income tax benefit 30% 830 2 098 2 358 1 902 1 901 [N]=[L]+[M] Equity adjustment offbalance sheet pension liabilities (1 937) (4 896) (5 504) (4 439) (4 436) [O] Minority interest 1 051 1 143 660 1 571 1 513 [P] Shareholders' equity 74 793 75 867 88 080 85 890 89 883 [Q]=[N]+ [O]+[P] Adjusted shareholders equity and minority 73 907 72 114 83 236 83 022 86 960 [R]=[K]/[Q] Adjusted debt / equity ratio 0.34 0.60 0.38 0.11 0.07 53948 04 2005 37 Hydro Media
Net income* By quarter NOK million 4 218 3 280 3 765 3 638 3 693 2 840 2 132 2 482 2 324 2 397 2 224 2 480 513 2002 2003* 2004 2005 Accumulated 8 765 10 968 12 560 3 693 * Including the effect of change in accounting principles for 1st quarter 2003 amounting to a positive effect of NOK 281 million 53948 04 2005 38 Hydro Media
Oil & Energy Adjusted EBITDA NOK million Eliminations Energy and Oil Marketing Exploration and Production 11 583 12 416 7 887 8 668 7 745 9 139 10 503 9 764 9 928 5 847 6 155 5 451 6 274 2002 2003 2004 Accumulated 25 340 31 826 41 778 2005 12 416 53948 04 2005 39 Hydro Media
Variance analysis Oil & Energy NOK million 2005 2004 Variance adjusted EBITDA 1st quarter 12 416 10 503 1 913 Prices and currency Oil Gas Currency 3 175 885 (715) 3 345 Margin Volume Fixed costs Depreciation Production costs Exploration costs Other Variance operating income Nonconsolidated investees Interest income and other Other income Depreciation and amortization Variance adjusted EBITDA (75) (635) 45 80 (225) (60) (450) 2 024 10 (37) (84) 1 913 53948 04 2005 40 Hydro Media
Variance analysis Exploration and Production NOK million 2005 2004 Variance adjusted EBITDA 1st quarter 11 456 9 593 1 863 Prices and currency Oil Gas Currency Volume Depreciation Production costs Exploration costs Other Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA 3 175 885 (715) _ 3 345 (720) 75 (225) (60) (440) 1 975 (37) (75) 1 863 53948 04 2005 41 Hydro Media
Variance analysis Energy and Oil Marketing NOK million 1st quarter 2005 2004 Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Other Variance operating income 1 220 907 313 190 85 45 5 (10) 313 Nonconsolidated investees Interest income and other Depreciation and amortization 10 (10) Variance adjusted EBITDA 313 53948 04 2005 42 Hydro Media
Production per field Q1 2005 Boe/day (oil including NGL and condensate) Grane Oseberg Snorre Ekofisk Oseberg South Gullfaks inclu. Sat Åsgard Troll C Troll B Oseberg East Norne Visund Fram Sleipner Area Tordis Vigdis Brage Girasol Terra Nova Hibernia Kharyaga Other Oil Gas Total production Q1 2004 110 000 185 000 224 000 373 000 76 000 269 000 246 000 163 000 168 000 31 000 141 000 36 000 58 000 123 000 70 000 80 000 28 000 200 000 144 000 191 000 17 000 Q1 2005 164 000 165 000 130 000 366 000 69 000 252 000 210 000 144 000 124 000 23 000 104 000 35 000 37 000 80 000 52 000 56 000 26 000 194 000 108 000 206 000 16 000 Hydro share percent 38 34 17.65 6.65 34 9 9.6 9.78 9.78 34 8.1 20,3 25 8.85/9.4/10 13.28 13.28 20 10 15 5 40 Hydro production 62 254 56 008 22 974 24 365 23 420 22 717 20 198 14 122 12 088 7 653 8 390 7 044 9 224 7 625 6 844 7 437 5 258 19 432 16 232 10 278 6 220 35 964 405 747 178 301 584 048 53948 04 2005 43 Hydro Media
Operating costs per barrel NOK/boe 100 80 90.1 99.7 83.8 82.1 83.7 60 40 20 0 2001 2002 2003 2004 1Q 2005 Exploration 9.1 20.3 8.1 6.0 5.9 Net transportation * 8.5 9.0 6.8 8.3 9.7 Other cost/income 2.0 1.4 1.8 0.7 3.1 Deprec. and aband. 46.4 46.4 46.4 46.4 45.4 Production cost 24.1 22.6 20.7 20.7 19.6 Total 90.1 99.7 83.8 82.1 83.7 Million boe produced 154 175 194 209 53 * Hydro s net cost as owner and user of transportation and processing 53948 04 2005 44 Hydro Media
Exploration activity and costs NOK million 1 500 1 200 900 600 Expensed share 300 0 300 2002 2003 2004 2005 Activity Expensed old wells Cost reduction repayment Angola Capitalized share 53948 04 2005 45 Hydro Media
New fields on stream 2005 2007 Nonoperator NCS Operator NCS International Field Murzuq Kharyaga Dalia Rosa Oseberg South J Oseberg Vestflanken Oseberg East Drilling solution Fram Øst Vilje Njord gas phase Ormen Lange Kvitebjørn Visund gas phase Urd (Norne satellites) Kristin Rimfaks/Skinfaks IOR satellite project Volve 5000 10 000 22 000 13 000 6 000 14 000 6 500 11 000 9 000 7 500 70 000 25 000 18 000 7 000 32 000 3 000 6 000 Development PDO submittal Start production Hydro Plateau (boe/day) 2001 2002 2003 2004 2005 2006 2007 53948 04 2005 46 Hydro Media
UK gas prices NBP forward curves pence/th End of 2003 End of Q3 2004 End of 2004 End of Q1 2005 70 60 50 40 30 20 10 2004 2005 2006 2007 2008 2009 53948 04 2005 47 Hydro Media
Nordic power market forward curves NOK/MWh End of Q2 2004 End of Q3 2004 End of 2004 End of Q1 2005 350 300 250 200 150 2005 2006 2007 2008 53948 04 2005 48 Hydro Media
Average Realized Gas Prices NOK/Sm 3 1Q 2Q 3Q 4Q 1.50 1.47 1.00 1.07 0.89 0.86 0.98 0.99 1.03 1.01 1.06 1.10 0.98 1.07 1.20 0.50 0.00 2002 2003 2004 2005 53948 04 2005 49 Hydro Media
Aluminium Adjusted EBITDA NOK million Other and Eliminations Extrusion and Automotive Rolled Products Metals 1 809 2 708 2 335 2 096 2 436 1 572 1 619 1 498 1 517 1 292 1 316 899 827 2002 2003 Accumulated 4 334 6 498 2004 8 656 2005 2 436 53948 04 2005 50 Hydro Media
Variance analysis Aluminium NOK million 2005 2004 Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Infrequent items Trading and hedging Unrealized LME effects Other Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA 1st quarter 2 436 2 708 (272) (100) (150) 530 60 (155) (50) (435) 10 (288) 82 3 (69) (272) 53948 04 2005 51 Hydro Media
Variance analysis Metals NOK million 2005 2004 Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Infrequent items Trading & price hedging Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA 1st quarter 1 789 1 473 316 30 110 155 30 (5) (50) 271 84 (3) (36) 316 53948 04 2005 52 Hydro Media
Variance analysis Rolled Products NOK million 1st quarter 2005 2004 Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Infrequent items Other Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA 395 335 60 (125) (10) 185 20 5 5 82 (5) 5 (22) 60 53948 04 2005 53 Hydro Media
Variance analysis Extrusion and Automotive NOK million 2005 2004 Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Infrequent items Other Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA 1st quarter 343 568 (225) (20) (250) 190 10 (155) 5 (218) 3 1 (11) (225) 53948 04 2005 54 Hydro Media
Aluminium operational data Volumes and prices Q1 2005 Q4 2004 Q3 2004 Q2 2004 Q1 2004 Q4 2003 Q3 2003 Primary production (1 000 tonnes) * 444 446 441 418 415 388 381 Total metal products sales excluding trading (1 000 tonnes) 702 639 648 676 688 483 506 LME realized (USD/tonne) including hedges 1 793 1 691 1 677 1 657 1 528 1 488 1 445 USD/NOK realized including hedges ** 6.58 6.65 7.04 7.10 7.13 7.10 7.33 LME realized (USD/tonne) excluding hedges 1 812 1 707 1 691 1 669 1 530 1 452 1 405 USD/NOK realized excluding hedges ** 6.35 6.61 6.87 6.89 6.90 7.11 7.21 Rolled Products external shipment (1 000 tonnes) 239 231 234 235 240 211 225 Extrusion and Automotive external revenues (NOK million) 7 235 6 649 6 752 7 193 6 969 6 200 5 914 Extrusion order intake (indexed, 1996=100) 154 137 153 177 171 148 144 * Full consolidation of Slovalco from 2004 ** Difference between realized exchange rate and spot rate at the transaction date is reported as currency gain/loss and not included in EBITDA (except currency hedges where hedge accounting is applied) 53948 04 2005 55 Hydro Media
Inventories primary aluminium 1 000 tonnes 5 000 IAI (Producers' inventories) LME (London Metal Exchange) 4 000 3 000 2 000 1 000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Sources: IAI and LME. 53948 04 2005 56 Hydro Media
Variance analysis Polymers NOK million 1st quarter 2005 2004 Variance adjusted EBITDA Margin Volume Fixed costs Depreciation Variance operating income Nonconsolidated investees Interest income and other Depreciation and amortization Variance adjusted EBITDA 326 211 115 145 (40) 15 121 (10) 3 1 115 53948 04 2005 57 Hydro Media
Forwardlooking statements/ use of nongaap financial measures In order to utilize the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, Hydro is providing the following cautionary statement: This presentation contains certain forwardlooking statements with respect to the financial condition, results of operations and business of the Company and certain of the plans and objectives of the Company with respect to these items. By their nature, forwardlooking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. The actual results and developments may differ materially from those expressed or implied in the forwardlooking statements due to any number of different factors. These factors include, but are not limited to, changes in costs and prices, changes in economic conditions, and changes in demand for the Company's products. Additional information, including information on factors which may affect Hydro's business, is contained in the Company's 2004 Annual Report on Form 20F filed with the U.S. Securities and Exchange Commission. With respect to each nongaap financial measure Hydro uses in connection with its financial reporting and other public communications, Hydro provides a presentation of what Hydro believes to be the most directly comparable GAAP financial measure and a reconciliation between the nongaap and GAAP measures. This information can be found in Hydro s earnings press releases, quarterly reports and other written communications, all of which have been posted to Hydro s website (www.hydro.com). 53948 04 2005 58 Hydro Media
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