inv_pres_july_2009

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					Investor presentation




            Q2

July 2009




(1)
Table of contents


Company overview              3
                                   Forward-looking statements
                                   Certain statements included within this announcement contain forward-
Industry & market outlook     10   looking 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
Second quarter results 2009   24   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, as well as (i) statements preceded by “expected”,
Primary Metal                 42   “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar
                                   statements.

                                   Although we believe that the expectations reflected in such forward-
Metal Markets                 52   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.
Rolled Products               55   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
Extruded Products             58   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.

Energy                        65   No assurance can be given that such expectations will prove to have
                                   been correct. Hydro disclaims any obligation to update or revise any
                                   forward-looking statements, whether as a result of new information,
                                   future events or otherwise.
Additional information        73



(2)
      Company
      overview




(3)
Hydro
A focused aluminium and energy company


  Primary                          • 21 000 employees
  Metal
                                   • Operations in 40 countries

  Metal
  Metal                            • Turnover
  Markets                            • 2006: NOK 99 billion
                                     • 2007: NOK 94 billion
                                     • 2008: NOK 89 billion
  Rolled
  Products                         • Underlying EBIT
                                     • 2006: NOK 10.2 billion
                                     • 2007: NOK 9.9 billion
  Extruded                           • 2008: NOK 6.0 billion
  Extruded
  Products
  Products                         • Market capitalization NOK 37 billion1)

  Energy



1) Close July 17, 2009




(4)
Hydro’s value proposition

• Solid long-term fundamentals for
      aluminium

• Industry-leading captive power position

• World-class upstream growth projects

• Leading positions in attractive
      extrusion segments

• Competence in metallurgy and project
      execution – basis for solar growth

• Strong operational performance
      and cost focus

• Financial robustness




(5)
Strong aluminium industry position

                                 Integrated                     Emerging Market              Mining & Metal                                Manufacturing
                              7,946




                                                                                                                                                                  Alumina
                                                                                                                                                                  Primary
                                                                                                                                                                  Rolled


                                                                 5,878
                                                                                                                                                                  Extrusions
Production in 1 000 tonnes*




                                                                                                                                                                  Other




                                                                                                            4,692
                                                                             4698
                                                                     4,494




                                                                                                         4,062
                                  4,007




                                                                                3,250




                                                                                                                                           3,151
                                                                                          2,372
                                      2,296



                                                        1,750




                                                                                                                          1,489
                                                                                              1,298
                                                    1,192

                                                   970




                                                                                                                                                                            985
                                                                                                                                                          958
                                                                                                               910




                                                                                                                                         639
                                                                                                                                         598
                                                593




                                                                                    353




                                                                                                                                  328
                                          182




                                                                                                                    230




                                                                                                                                                            114
                                                                                                                                                   163
                                  Alcoa            Hydro          UC Rusal      C halco        BHP        RioTinto                Vale     Birla         Aleris        Sapa
                                                                                              Billiton      Alcan                         Group




    *Source: Hydro estimates / CRU / company reports, alumina measured in aluminium equivalents




     (6)
Hydro in the aluminium value chain


      Primary aluminium production                               Aluminium in products, recycling


      Bauxite/                              Primary                Metal                 Semi
      alumina               Energy         aluminium              products            fabrication           Remelt




      65% equity in     Solid long-term    1.75 mill. mt/year   2.9 mill. mt/year    1.6 mill. mt/year     502 000 ton
        alumina        coverage of power                        (primary+remelt                            remelt/year
                                           10 metal plants in                       Operations in more
                         towards 2020                             +cold metal)
                                             5 countries on                          than 30 countries    11 remelters in
                       100% hydro-power       3 continents       Special alloys                           5 countries on
                                                                                    16 000 employees
                          in Norway                                                                        2 continents
                                            5 250 employees                         (1 800 in Norway)
                           Solar energy    (2 900 in Norway)


                                           •Cost position        • Expertise in     •Close to customers
                           •Long-term                              materials                              •Expertise in
        •Equity
                          power supply      •Technology                                •Innovation          materials
                                                                 •Technology

Production figures are from 2008


(7)
Hydro improves cost position

Business operating cash cost USD/tonne

3 400
            Dynamic cost curve
               • Falling input costs
3 000
               • Production curtailments
                  and capacity closures
2 600


2 200


1 800


1 400

                                                                                                         Accumulated tonnage (1 000 tonnes)
1 000
        0             5 000           10 000          15 000          20 000          25 000          30 000           35 000         40 000

             BOC Q1 2009                                                  BOC 2008
             Average 2008                                                 Average Q1 2009
             Qatalum                                                      Hydro adjusted for production curtailments, incl. Qatalum
             Neuss                                                        Karmøy Søderberg
             Hydro (C RU)

*     Source: CRU, Business Operating Cost, assumptions 2008: LME 2 833 USD/tonne, NOK/USD 5.16, Q1 2009: LME 1 600 USD/tonne,
      NOK/USD 6.42. Qatalum estimated by Hydro




(8)
Capital employed – upstream focus

                                                        NOK million                                               June 30, 2009

                         Energy,                        Primary Metal                                                     28 683
                           7%                           Metal Markets                                                          5 384

                                                        Rolled Products                                                        7 915
           Extruded
                                                          Extrusion                                                            5 594
        Products, 14%
                                                          Automotive                                                           1 617
                                                          Other and eliminations                                                 158

                                                        Extruded Products                                                      7 369

                                                        Energy                                                                 3 419
      Rolled Products,             Primary Metal, 54%
            15%                                         Other and eliminations                                            (4 918)

                                                        Total                                                             47 852



                  Metal
                 Markets,
                  10%

                                                        Graph excludes NOK 4.9 billion in negative capital employed in Other
                                                        and eliminations




(9)
       Industry &
       market outlook




(10)
Healthy long term demand for aluminium


• Properties lead to increased
  market share
  • Aluminium intensive urbanisation
    and infrastructure
  • Climate challenge – aluminium as
    part of the solution
  • Recyclability more important with
    high energy price

• Beyond current downturn
  • Return to trend growth
       of 4-5% annually




(11)
Unprecedented fall in aluminium price

USD per tonne


 3 400
                                                                 Primary aluminium LME   USD/tonne   NOK/tonne
 3 200

 3 000                                                           Q2 2009 average             1 524       9 883
                                                                 Q2 2009 end                 1 651      10 611
 2 800

 2 600                                                           Q1 2009 average             1 397       9 593
                                                                 Q1 2009 end                 1 405       9 555
 2 400

 2 200
                                                                 Average 2008                2 620      14 453
 2 000

 1 800                                                           Average 2007                2 662      15 638

 1 600
                                                                 Average 2006                2 594      16 616
 1 400

 1 200

 1 000
     2001       2003   2005    2007      2009      2011   2013

             LME (3-month avg.)
             LME forward July 17, 2009
             LME forward January 1, 2007
             LME forward July 1, 2008


Source: Reuters Ecowin / Bloomberg July 17, 2009




(12)
Sales volumes at low level

Hydro’s downstream sales Q2 2009 vs Q1 2009                                         Total downstream sales
   Rolled        Extrusion      Building    Extrusion   Automotive      Precision
  Products        Eurasia       Systems     Americas    Structures       Tubing       Q2 09 vs Q1 09   H1 09 vs H1 08

                                                             29%
                                                                          19%
                                              9%
                     1%            3%
                                                                                           1%

       -2%



                                                                                                           -27%


Hydro’s upstream sales Q2 2009 vs Q1 2009                                           Total upstream sales
       Sheet ingot        Extrusion ingot   Foundry alloys         Standard ingot     Q2 09 vs Q1 09   H1 09 vs H1 08


                                                 20%
                                                                       16%
                              11%
                                                                                           7%




         -16%
                                                                                                           -24%




(13)
Inventories still increasing

USD per tonne                                                                                                                               Days

3 500
                                                                                                                                            120

                                                                                                                                            110
3 000
                                                                                                                                            100

                                                                                                                                            90
2 500
                                                                                                                                            80

                                                                                                                                            70
2 000

                                                                                                                                            60


1 500                                                                                                                                       50

                                                                                                                                            40

1 000                                                                                                                                       30
    1992    1993    1994   1995    1996    1997   1998    1999    2000   2001    2002    2003     2004   2005   2006   2007   2008   2009


                             Aluminium inventories (days of consumption)*                 LME 3-month average




*IAI and LME reported stocks. Annualized Western World consumption. CIS and China not included.




(14)
 China currently net importer

 1 000 tonnes


                     Primary / alloyed   Semis      Fabricated     Scrap   Total   • Swift response to drop in demand
                                                                                     in Q4/Q1
             600
                                                                                     • Production curtailments
             550
             500                                                                     • Strategic government purchases
Net import




             450
             400
              350
                                                                                   • 1-2 million tonnes of capacity being
              300                                                                    restarted due to increased demand
              250
              200
              150                                                                  • Shanghai price significantly higher
              100                                                                    than LME
               50
                                                                                     • Encourages primary aluminium imports
                0
Net export




              (50)
             (100)                                                                 • China expected to be balanced in
             (150)
                                                                                     primary aluminium in the long term
             (200)
             (250)
             (300)
             (350)
                           2006              2007                2008      2009


  Source: Hydro / Antaike July 2009




  (15)
Significant curtailments announced

Announced capacity curtailments in percent of 2008 production
30 %
               28 %

                                      26 %

25 %

                                                  22 %
                                                            21 %

20 %




15 %


                                                                     11 %
                                                                                10 %
10 %




5%




0%
        C entury Aluminium            Hydro       C halco   Alcoa   UC Rusal   Rio Tinto

Source: CRU / company reports / Hydro estimates




(16)
Announced capacity curtailments
Unchanged from Q1



                                        12%


                                                     3%

                                                                     Alcoa
                                                          7%         C entury
                                                                     Hydro                        China                  ~3.5 million tonnes*
                                                                     Rio Tinto
                                                            6%                                    Rest of world          ~3.4 million tonnes
51%                                                                  UC Rusal
                                                                     Other                        Total                  ~6.9 million tonnes
                                                                     C hina
                                                          7%




                                              14%




Source: CRU / company reports / Hydro estimates. *Not adjusted for reports of restarts in China, in the range of 1-2 million tonnes




(17)
Substantial supply/demand imbalance
World production and consumption (excl. China)

Annualized                                                                     • Majority of curtailments executed end-Q2
30 000
                          Production               C onsumption
                                                                               • Imports to China of 750 000 tonnes of
25 000
                                                                                 primary aluminium during 2009

                                                                               • Increased demand end-Q2
20 000




15 000




10 000




 5 000



       0
              2007              2008            Q1 2009            Q2 2009
                                               annualized         annualized


Source: CRU / company reports / Hydro estimates.




(18)
Transport and construction related areas
are hit hard by the economic downturn
Share of semis consumption                                                • Transportation, construction and housing
                                                                           is weak
                                  C onsumer
                     Electrical
                                   durables
                                      6%
                                                                          • Engineering markets follow construction
                       11%
                                         Packaging
                                                                           and transport into collapse
        Machinery                           9%
       & equipment
           10%
                                                Foil stock                • European demand follows US demand and
                                                   8%                      continues to slide with worsening
                                                                           industrial production, while China to a
                                                      Other
                                                       8%                  large degree is influenced by reduced
            Transport
                                                                           finished products to the west
              28%
                                      C onstruction
                                          20%




                                                      Total semis
                                                      consumption 2008:
Source: CRU LT October 2008                           50 million tonnes




(19)
Commodity prices weakening
Industry input costs declining

Crude oil – Brent         (USD/bbl)           Coal – CIF ARA        (USD/mt)             Petroleum coke FOB USG             (USD/tonne)

160                                           245                                        550
140                                           210                                        500
120                                           175                                        450
100                                           140                                        400
 80                                           105                                        350
 60                                            70                                        300
 40                                            35                                        250

 20                                             0                                        200
  2005     2006    2007      2008      2009     2005       2006    2007    2008   2009     2005    2006     2007    2008     2009




Power – EEX Germany              (EUR/MWh)    Freight – Baltic Dry Index                 Caustic soda      (USD/tonne)

 90                                           11 900                                     1 200
 80                                           10 200                                     1 050
 70                                            8 500                                      900
 60                                            6 800                                      750
 50                                            5 100                                      600
 40                                            3 400                                      450
 30                                            1 700                                      300
 20                                                 0                                     150
  2005    2006     2007      2008      2009         2005    2006    2007   2008   2009      2005    2006     2007    2008     2009


Source: Reuters Ecowin / PACE / CMAI




(20)
Power spot prices stabilize

South Norway price (NO1)                                        Water reservoir levels in South Norway (NO1)
NOK/MWh                                                         Percent
600                                                             100
                                                                                               2008     2009
                             2008      2009                      90
500
                                                                 80

                                                                 70
400
                                                                 60

300                                                              50

                                                                 40
200
                                                                 30

                                                                 20
100
                                                                 10

  0                                                               0
       1   4   7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52         1   4   7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52




 Price NOK/MWh                      Q1 2009           Q2 2009    Reservoir levels           March 31, 2009       June 30, 2009
 System                                 344               301    Norway                               39.5%             67.5%
 South Norway (NO1)                     341               297    South Norway (NO1)                   26.1%             61.2%

Source: Reuters Ecowin




(21)
Climate policies – effects on aluminium


                       Demand-effect
                       • Changed semi’s and end-product prices
                         • Aluminium vs. steel and plastics when CO2
                           emissions get a price tag
                       • Regulatory measures

                       Supply – effects on production cost
                       and long-term prices
                       • Cost per tonne CO2 increases over time
                         • Direct carbon emissions in electrolysis process
                         • Power cost (indirect effects)
                         • Regional differences
                       • Effect on location of new capacity




(22)
2009 outlook

               • Aluminium prices to remain low
                • Limited forward visibility
                • Still increasing LME inventory

               • No substantial pick-up in demand
                • Primary aluminium consumption ex-China
                  could decline up to 15-20% from 2008
                • Chinese consumption in line with 2008

               • Input costs further down




(23)
       Second quarter
       results 2009




(24)
Highlights
•   Firm execution of corrective measures – significant cost-savings achieved
•   Strong cash flow from operations
•   Demand apparently flattening out at low level
•   Underlying EBIT down 25% from Q1
    • Weak upstream result - 28% drop in realized aluminium price vs Q1
    • Improved downstream result
    • Solid contribution from Energy
• Qatalum 84% complete, on schedule for 2009/2010 start-up




(25)
Firm corrective measures taken

Initiative                                             Result/target

                                                       2008-2009: 40% reduction, NOK 2.5 billion
Capital expenditure cuts     1)
                                                       2009-2010: 15% reduction, NOK 0.5 billion


Operating capital reduction                            NOK 5 billion during first half 2009


Production curtailments
   Primary aluminium                                   26% reduction from 2008 level
   Alumina                                             22% reduction from 2008 level

                                                       Dimensioning and structure concluded. Reduced external cost.
Staff and support functions
                                                       Exceeding target of NOK 750 million in reduced costs from 2010   2)




Demanning                                              Manning reduced by 4 500 from end-Q2 2008 to end-2009



                                                       Significant savings achieved for alumina, petroleum coke, caustic
Input cost savings
                                                       soda, freight, alloys and maintenance

1) Excluding Qatalum
2) Including effect of reduced manning
3) Permanent and temporary employees and contractors




(26)
Upstream capacity curtailments completed

Primary aluminium

                            Closed production      Curtailment    Curtailment
Smelter                     capacity in tonnes      announced      completed Comment
Karmøy (Søderberg line)                 120 000         Q4 2008        Q1 2009 Permanent closure
                                                                                 Temporary closure, currently operating
Neuss                                   180 000         Q1 2009        Q2 2009
                                                                                 50 000 out of 230 000 tonnes capacity
Sunndal                                 100 000         Q1 2009        Q2 2009 Temporary closure of one production line
Søral                                    43 000         Q4 2008        Q1 2009 Temporarily reduced production
Slovalco                                 17 000         Q4 2008        Q1 2009 Temporarily reduced production
Total                                  460 000


Alumina

                            Closed production      Curtailment    Curtailment
Refinery                    capacity in tonnes      announced      completed Comment
Alpart                                  578 000         Q1 2009        Q2 2009 Temporary closure



NOK 450 million in charges for curtailments taken in period Q4 2008-Q2 2009, excluded from underlying results




(27)
Significant cash cost improvements achieved

Cost* in USD per tonne indexed, 2008=100
                                                                        • Production curtailments at
                                                                          high-cost smelters

                                                                        • Reduced input costs in first half 2009
                                                 ~(25)%                   • Alumina 2-3 months lag
                                                                          • Petroleum coke
                                                                          • Fuel oil, caustic soda, coal, freight and alloys

                                                                        • Further cost improvements targeted in
                                                                          second half




            Year 2008                         First half 2009

              Alumina     Power      Anodes       Other


* Includes only 100% owned smelters. Year 2008 cash cost based on LME
 for alumina cost of ~USD 2 750, and NOK/USD ~5.6. First half 2009
 cash cost based on actual costs.




(28)
Curtailments executed in flexible system

Primary aluminium                                                         Remelt
1 000 tonnes, production rate per year                                    1 000 tonnes, production rate per year

2 000                                                                     2 000
                                                                1 920

             1 750
                                                                 330
                          1 588
1 600                                                                     1 600
                                                                 290
                                        1 352

1 200                                                           1 300     1 200
                                                                                    1 000       1 000         1 000      1 040
                                                                                      100         496          264
                                                                                     900
  800                                                                      800
                                                                                                                736

                                                                                                  504
  400                                                                      400




       0                                                                      0
             2008        Q1 2009      Q2 2009                  End 2010              2008       Q1 2009       Q2 2009   End 2010

           C urtailed primary capacity available for restart                      Available remelt capacity
           Qatalum                                                                Remelt production
           Primary production




(29)
Innovation and improvements downstream
Hydro opens energy-neutral building


                                        Avg. German energy
                                           consumption:
                                       180 kWh/m²a (primary)

                                       Energy consumption:
                                       50 kWh/m²a (primary)

                                      Solar energy production:
                                            30 000 kWh/a




(30)
Underlying EBIT


                         2 032

                                        1 619
                                                      1 490



                                                                     868




                                                                                   -493
                                                                                                 -618


NOK million               Q1 2008        Q2 2008       Q3 2008       Q4 2008       Q1 2009        Q2 2009
Primary Metal                    938            795           906            93       (185)             (895)
Metal Markets                    363            139           (41)          242       (245)              196
Rolled Products                  147            240           170            93           (53)           (28)
Extruded Products                223            296           152          (332)      (204)              (26)
Energy                           421            302           460           683           447            281
Other and eliminations           (60)       (153)         (157)              90       (253)             (146)
Total                        2 032          1 619         1 490             868       (493)         (618)




(31)
Key financials

                                                                                  First half   First half
 NOK million                                      Q2 2009    Q1 2009    Q2 2008       2009         2008
 Revenue                                           17 123     16 854     23 980     33 976       45 510
 Underlying EBIT                                    (618)      (493)      1 619    (1 111)        3 651
 Items excluded from underlying EBIT                1 029     (1 105)     (911)        (77)      (1 764)
 Reported EBIT                                       410     (1 598)       708     (1 188)        1 887


 Financial income / (expense)                         145      1 473        443       1 617        1 441
 Income from continuing operations before tax        555       (126)      1 150        429        3 328

 Income tax expense                                 (273)      (155)      (248)       (428)        (982)

 Reported income from continuing operations          282       (280)       902            2       2 345
 Underlying Income from continuing operations       (572)      (480)      1 311    (1 052)        2 687


 Reported EPS from continuing operations, NOK        0.17      (0.29)      0.67      (0.11)         1.87
 Underlying EPS from continuing operations, NOK     (0.53)     (0.45)      1.00      (0.99)         2.16




(32)
Items excluded from underlying EBIT

                                                                              First half   First half
 NOK million                                   Q2 2009   Q1 2009   Q2 2008        2009         2008

 Underlying EBIT                                 (618)     (493)     1 619     (1 111)        3 651
 Unrealized effects power contracts              (118)       580    (1 997)         463      (3 287)
 Unrealized LME and other derivative effects     1 427     (708)       450          719        1 000
 Metal effect, Rolled Products                   (225)     (662)       247        (887)          133
 Rationalization charges and closure costs       (117)     (305)          -       (423)             -
 Impairment charges                                (4)      (10)          -        (14)             -
 Insurance compensation                             66         -          -          66             -
 Gains / (losses) on divestments                     -         -       389             -         389
 Reported EBIT                                    410    (1 598)       708     (1 188)        1 887




(33)
Primary Metal

                                        Q2          Q1        Q2
 Key figures                          2009        2009      2008
 Alumina production, kmt                494        578       506
 Primary aluminium production, kmt      338        397       437
 Total sales volumes, kmt               447        440       584
 Realized LME price, USD/mt           1 468       1 996     2 610
 Realized LME price, NOK/mt           9 598      13 393    13 553
 Underlying EBIT, NOK million         (895)       (185)      795


Underlying EBIT, NOK million                                        Q2 operating results
               2 732                             (1 079)
                  906
                                                                    •   Lower realized LME price
 938
        795                                                         •   Lower variable costs
                            93                                      •   Production volumes down 15%
                                                                    •   Sales volume stable vs Q1
                                     (185)


                                              (895)
                                                                    Outlook
               2008                               2009
                                                                    •   Declining carbon cost
                                                                    •   Declining fixed costs
                                                                    •   Primary production further reduced in Q3
                                                                    •   More than 90% of primary production affecting Q3
                                                                        results priced at USD 1 475 mt per end Q2




(34)
Metal Markets

                                      Q2            Q1      Q2
 Key figures                        2009          2009    2008
 Remelt production, kmt               111           89     145
 Total metal products sales, kmt      602          573     801
 Underlying EBIT, NOK million         196         (245)    139




Underlying EBIT, NOK million                                     Q2 operating results
               703                                (48)
                                                                 • Neutral currency effects vs significant negative
 363                                                               effects in Q1
                          242               196
         139                                                     • Weak sales volumes and low production, but slight
                                                                   improvement from Q1
                                                                 • Satisfactory trading results
                  (41)


               2008
                                   (245)
                                                  2009
                                                                 Outlook
                                                                 • Continued weak demand
                                                                 • Increased remelt production
                                                                 • Volatile trading and hedging results




(35)
Rolled Products

                                   Q2             Q1      Q2
 Key figures                     2009           2009    2008
 External sales volumes, kmt       187           191     259
 Underlying EBIT, NOK million     (28)           (53)    240




Underlying EBIT, NOK million                                   Q2 operating results
               651                              (82)
                                                               • Positive contribution from cost savings
         240
                                                               • Stable volumes in a weak market
                  170
 147
                          93                                   Outlook
                                                               • Uncertain effect of restocking
                                         (28)                  • Stable demand
                                (53)
               2008                             2009           • Continued strong cost focus




(36)
Extruded Products

                                    Q2                Q1      Q2
 Key figures                      2009              2009    2008
 External sales volumes, kmt        120              113     164
 Underlying EBIT Extrusion,
                                         5           (88)    292
 NOK million
 Underlying EBIT Automotive,
                                   (37)             (115)      2
 NOK million
 Underlying EBIT, NOK million      (26)             (204)    296




Underlying EBIT, NOK million                                       Q2 operating results
             338                                (230)
         296
                                                                   • Seasonal increase in volumes, but significantly
 223                                                                 below 2008
                  152
                                                                   • Positive contribution from cost savings
                                                                   • Continued positive Building Systems results
                                             (26)
                                                                   Outlook
                                 (204)
               2008                             2009               • Signs of stabilizing markets
                         (332)
                                                                   • Seasonally lower volumes in second half
                                                                   • Continued strong cost focus




(37)
Energy

                                       Q2            Q1      Q2
 Key figures                         2009          2009    2008
 Power production, GWh               1 809         2 477   3 021
 Net spot sales, GWh                   413          838    1 331
 Southern Norway spot price (NO1),
                                       297          341     171
 NOK/MWh
 Underlying EBIT, NOK million          281          447     302




Underlying EBIT, NOK million                                       Q2 operating results
               1 865                               728
                                                                   • Low production
                         683
                                                                   • Lower spot prices than in Q1
 421               460               447

         302                                 281
                                                                   Outlook
                                                                   • Reservoir levels below normal
                                                                   • Suldal 1 power plant out of production until the
               2008                            2009                  beginning of 2010 due to repairs
                                                                   • Higher spot prices




(38)
Strong cash flow from operations

• Significant reductions in operating                                                            Q2         Q1        Q2
                                                         NOK million                           2009       2009      2008
   capital
                                                         Net income (loss)*                      282      (280)      902
                                                         Depreciation                            805       827       819
• Capital discipline – investments at                    Operating capital                     2 907      2 199     (449)
   low level                                             Other adjustments                    (1 984)   (3 857)     1 634
                                                         Net cash flow from operations         2 010    (1 111)    2 907

• No dividend payment in 2009                            Investments                           (724)      (730)   (1 428)
                                                         Divestments                              42        49       580
                                                         Net cash flow from investing          (682)     (681)     (848)
• Qatalum investments                                    Change in debt                          242      1 726     (276)
   • Fully project financed in first half 2009           Dividends and share repurchases          13        13    (6 331)
   • Equity contribution from partners in second half    Net cash flow from financing            255     1 739    (6 607)
       2009 and 2010
                                                         Foreign currency effects                 70       (74)      (22)
                                                         Cash flow from discont. operations         -         -      626


                                                         Change in cash                        1 653     (127)    (3 944)


                                                         Qatalum investments project
                                                                                              (1 667)   (2 247)   (1 379)
                                                         financed directly in joint venture

                                                        * Excluding discontinued operations




(39)
Financial position

Net cash / (debt) in NOK billion                                                      Secured financing: ~NOK 20 billion
       8.7                                                                            • EUR 750 million in 3-year bank facility
                                                                                      • NOK 1 billion in commercial paper
                                                                                      • USD 1.7 billion in a multi-currency revolving
                           3.5
                                                  1.7
                                                                       3.0              facility maturing in 2014
                                                                                      • NOK 1.3 billion short-term
  June 30, 2008        Dec 31, 2008           Mar 31, 2009      June 30, 2009
                                                                                      • Currently ~NOK 18 billion undrawn



                                 Jun 30,        Dec 31,      Mar 31,    Jun 30,
                                                                                      Qatalum financing: USD 5.7 billion (100%)
  NOK billion                      2008           2008         2009       2009        • USD 2.6 billion project financed
  Net cash / (debt)                    8.7          3.5          1.7           3.0      • USD 0.1 billion outstanding end-Q2
  Net int.-bearing debt in                                                            • USD 3.1 billion in equity from owners
                                      (3.0)        (4.9)       (6.8)          (8.4)
  equity accounted invest.                                                              • USD 1.7 billion remaining end-Q2
  Other adjustments*                  (8.8)       (14.0)      (13.7)         (13.8)

  Adj. net interest-
                                   (3.1)         (15.4)       (18.8)     (19.2)
  bearing debt

* Net pension liability, operating lease commitments and other




(40)
Priorities in 2009

Proactive corrective measures
  • Cost reductions and margin management
  • Working capital and counterparty risk
Cash focus
  • Maintain financial flexibility
Solid operations
Qatalum execution
Stay close to markets




(41)
       Primary
       Metal




(42)
Strong growth in alumina production

Hydro’s equity alumina production                                             Alunorte, Brazil
1 000 tonnes                                                                                     • World’s largest alumina refinery
                                                                                                 • Third expansion completed in 2008
3 500                                                                                            • Capacity: 6.3 million tonnes of
                                                                                                   alumina (100%)
                                                                                                 • 34% owned by Hydro
3 000


2 500

                                                                              Alpart, Jamaica
2 000                                                                                            • Capacity: 1.65 million tonnes of
                                                                                                    alumina (100%)
                                                                     2 125
1 500
                                                                                                 • Currently 100% curtailed
                                                             1 711                               • 35% owned by Hydro
                                              1 339 1 447
1 000                    790    849    874
           417    431
  500
           524    505    538    551    526    551     559    578     595      CAP, Brazil
       0                                                                                         • Joint venture agreement with Vale
                                                                                                 • First stage 1.86 million tonnes of
           2001


                  2002


                         2003


                                2004


                                       2005


                                               2006


                                                      2007


                                                              2008




                                                                      2012E




                                                                                                   alumina, potential for expansions
                                                                                                   up to 7.4 million tonnes of alumina
           C AP                                                                                  • First stage investment estimate
           Alunorte                                                                                USD 2.2 billion (100%)
           Alpart                                                                                • Production start-up in 2012
                                                                                                 • 20% owned by Hydro




(43)
Well covered with alumina
CAP positions Hydro for further growth in metal

Alumina coverage
Percent


140%


120%
                                                   LME-linked contracts
100%


 80%                                                                                                          Equity from CAP*


 60%


 40%                                                                       Equity


 20%


  0%
    2008         2009         2010        2011         2012        2013         2014        2015       2016   2017    2018       2019   2020




*CAP is illustrated with the first stage plus two expansions. Only the first stage has been decided.
Graph includes full production at Alpart and excludes Karmøy Søderberg




(44)
Aluminium Metal Production System
AMPS is not a project – it’s a way of operating!


       Standardized work processes




       Defined customer and supplier
       relationships




       Optimized flow
                                        A systemized method for development of operational
                                        excellence and continuous improvements
                                        • Product quality
                                        • Cost
       Dedicated teams
                                        • Safety

                                        Positive results
                                        • Process stability in operations
       Visible leadership               • Product quality towards customers
                                        • Increased output




(45)
Strong performance culture

TRI per million hours work1)                                                   Kg CO2e / kg aluminium2)

10                                                                             6

 8                                                                             5

                                                                               4
 6
                                                                               3
 4
                                                                               2
 2
                                                                               1
 0                                                                             0
          2005            2006        2007          2008                              1990     2005       2006      2007    2008    2010E

kwh / Kg aluminium3)                                                           Specific emissions kg fluorine / tonne aluminium4)

16.0                                                                           1.2

15.0                                                                           1.0
                                                                               0.8
14.0
                                                                               0.6
13.0
                                                                               0.4
12.0                                                                           0.2
11.0                                                                           0.0
          1993     1998      2003    2008    Qatalum HAL4e                             Hydro       Alcoa         Alcan     EAA       IAI
1   Primary Metal
2   Average specific emissions from wholly owned smelters (incl. Slovalco)
3   Average specific energy consumption from wholly owned smelters (incl. Slovalco)
4   Hydro majority-owned smelters




(46)
Primary Metal production facilities


 North America                                                        Europe:
       • 115 000 mt smelting capacity in 1 smelter                       • 1 270 000 mt primary smelting capacity in 8 smelters
                                                                         • 540 000 mt remelt capacity in 8 smelters




                                                                                     Middle East:
                                                                                        • Qatalum 1 smelter under construction (Hydro
                                                                                           share: ~300 000 mt)


                                                                                                    Australia:
                                                                                                    • 238 000 mt primary smelting
                                                                                                     capacity in 2 smelters


   Bauxite/alumina
   Smelters                        Caribbean / South America:
                                   • 2 700 000 mt alumina production in 2 alumina refineries
                                   • 2 130 000 mt bauxite production in 2 bauxite mines
                                   • 1 MoU new alumina JV project (Hydro share: 20%)




(47)
Develop technology to fulfill ambitions




           2007                          2009                               2020

HAL300 technology            HAL4e technology                   Beyond HAL4e
• Low diffuse emissions      • Improved energy efficiency       • Zero PFC concept
• Good working environment   • Benchmark GHG                    • Simpler CO2 capture
• SU4, Qatalum               • Prepared for CO2 concentration   • New materials and
                                                                  cell design
                                                                • Smelter layouts




(48)
Qatalum nearing completion
•   84% complete by end-Q2 2009                  • Main ongoing activities
•   21 500 workers by end-Q2 2009                  • Construction of buildings
•   On target for scheduled start-up 2009/2010     • Installation of equipment
                                                   • Development of operating organization
•   First decile position on cash cost curve




(49)
Qatalum nearing completion


  Power plant                Heat recovery units




 Paste plant                 Casthouse building




(50)
Qatalum facts

                Capacity
                 •   Smelter: 585 000 tonnes per year
                 •   704 cells in 2 double-lined potrooms
                 •   Anode plant and cast houses
                 •   1 250 MW power plant
                 •   Possible expansion to 1 200 000 tonnes per year
                 •   Hydro technology, designed for
                     • Low specific energy consumption
                     • High-labour productivity
                     • Low emissions

                Investment
                  • Updated estimate ~USD 5.7 billion (100%)
                  • Satisfactory project economics at LME 1 900
                     USD/tonne
                  • Engineering Procurement Construction (EPC) contract
                     philosophy
                  • Maximize competition by involving resources and
                     experience of several principal aluminium contractors
                     for 11 EPC packages
                  • Compensation formats mainly lump-sum




(51)
       Metal
       Markets




(52)
Casthouse products add value
Leading supplier in Europe – growing globally




       Own production                           Primary foundry alloys   Extrusion ingot




   Remelting & recycling                              Wire rod             Sheet ingot




 Commercial agreements        Casthouse




(53)
Metal Markets production facilities
Qatalum: well positioned to serve all major markets


  North America                                                    Europe
        • 114 000 mt remelt capacity in 2 remelters                   • 368 000 mt remelt capacity in 6 remelters




                                                                             Qatar




 Hydro off-take agreement for 100% of Qatalum products
 •     First metal by end of 2009
 •     Building up to a sales volume to ~600 000 tonners per year through 2010
 •     Targeting markets in Asia, Europe and the U.S.
 •     Product focus: extrusion ingot, primary foundry alloys and standard ingot




(54)
       Rolled
       Products




(55)
Main products and applications
Focus on margin management and cash generation

Foil
• Flexible packaging and technical applications


Litho
• Offset plates for the printing industry


Packaging & Building
• Cans, packaging and architecture


Automotive, Heat Exchanger
& General Engineering
• Transport, heat exchangers and
  special industry




(56)
Rolled products consumption
Falling demand in main markets1)

Western Europe                                   North America                            Asia Pacific
Million tonnes                                    Million tonnes                          Million tonnes
7                                                 7                                 15%   7
                                       15%                                                                                      15%
                                       13%                                          13%                                         13%
6                                                 6                                       6
                                       11%                                          11%                                         11%
5                                      9%         5                                 9%    5                                     9%
                                       7%                                           7%                                          7%
4                                                 4                                 5%    4
                                       5%                                                                                       5%
3                                      3%         3                                 3%    3                                     3%
                                       1%                                           1%                                          1%
2                                                 2                                 -1%   2                                     -1%
                                       -1%
                                       -3%                                          -3%   1                                     -3%
1                                                 1                                                                             -5%
                                       -5%                                          -5%
0                                      -7%        0                                 -7%   0                                     -7%
    2003       2005      2007   2009(e)               2003     2005   2007   2009(e)          2003         2005   2007   2009(e)


                                                                                                Million tonnes      % growth (RHS)
Solid market               share2)     for Rolled Products

    Novelis
                 Hydro                                                • 79% of shipments in Europe
     24%
                  17%
                                   European           market3)           • 6% of business in North America
                                        4.5 million tonnes               • 15% of business in Asia/rest of the
              Other                                                          world
              59%



1 Source: CRU November 2008. North America includes Mexico
2 Best estimates shown for competitor market share, 2007
3 2008




(57)
       Extruded
       Products




(58)
Distinct businesses with leading positions
Diverse markets – each with strong Hydro presence

       Extrusion           Automotive
       (81% of revenues)   (19% of revenues)


  Extrusion Eurasia        Precision Tubing


                                                Extruded Products strategy

                                                  Build on proven business
  Extrusion Americas                             concept, selective growth in
                                                Europe, Middle-East and Asia


                             Automotive
                             Structures

   Building Systems




(59)
Extruded products consumption                                                                           1)

Falling demand in Europe, American demand still depressed

Europe                                                                      North America                      Million tonnes          % growth (RHS)
Million tonnes                                                              Million tonnes

3.5                                                                         3.5
                                                                     8%                                                                         8%
3.0                                                                  4%     3.0                                                                 4%
2.5                                                                  0%     2.5                                                                 0%
2.0                                                                  -4%                                                                        -4%
                                                                     -8%    2.0
                                                                                                                                                -8%
1.5                                                                  -12%   1.5                                                                 -12%
1.0                                                                  -16%   1.0                                                                 -16%
                                                                     -20%                                                                       -20%
0.5                                                                  -24%   0.5                                                                 -24%
0.0                                                                  -28%   0.0                                                                 -28%
       2002    2003      2004   2005   2006    2007   2008   09(e)                 2002   2003   2004   2005   2006   2007      2008    09(e)



                                         2)
Solid market share                             for Extrusion in Europe

                 Hydro
                  16%                                                       • 76% of shipments in Europe
                      Sapa
                                   European market                     3)
                                                                                  • 19% of business in North America
 Other
                                              2.6 million tonnes
 52%                  20%
                                                                                  • 5% of business in Asia/rest
                    Alcan
                                                                                    of the world
              Aleris 8%
               4%

1)European consumption figures from CRU April 2009 and Hydro estimates; North American consumption from CRU April 2009 and Hydro estimates
2)Best estimates shown for competitor market share, 2008. Market share Hydro ~15% included extruded products from Automotive. Hydro ~13% for EE/HBS
3)2008




(60)
Main products and applications
Innovative solutions




                       Creative
                       Technology
                                    TRIANGEL
                       Germany      The new stairway
                                    system




                                    SANITEC



                                    OTIS




(61)
Building Systems
Hydro the market leader in Europe, worldwide presence




CHELSEA Customer INTERCOM, NY   CHELSEA Customer INTERCOM, NY   DIQUE IV – Puerto Madero




Larnaka Airport, Cyprus         Foch 94, Beirut                 Q-Tower, Manila




(62)
Development in energy efficiency
Reducing energy use in buildings

                                   InventSkin® multiple
                                   layer façade concept


                                   • Several energy-efficiency functions
                                   • Reduces primary energy and CO2 emissions
                                   • Cooperation between Hydro building
                                    Systems and Ascent Solar




(63)
Automotive applications


Global leadership in Precision Tubing   Structures in a leading position in
                                        crash management systems
                                         • Bumper beams
                                         • Crash boxes
                                         • Longitudinals
                                         • Windshield frames
                                         • Sub frame components
                                         • Add-on frames/solutions




(64)
       Energy




(65)
Strong power position
– self-generated and renewable energy sources

Share of self-generated power *)                                        Share of renewable energy origin
Percent                                                                 Percent

50%                                                                     80%

45%
                                                                        70%
40%
                                                                        60%
35%
                                                                        50%
30%

25%    Industry avg                                                     40%
         2007 **)
20%                                                                     30%
15%
                                                                        20%
10%
                                                                        10%
 5%

 0%                                                                      0%
       2008 2009 2010 2011 2012 2013 2014 2015 2016 2017                            2009                   2012

                                                                                  Hydro *       World average **




*Including normal production equity power less concession power sales
**Source: CRU




(66)
Long-term power sourcing at competitive prices

Indexation of power supplies                                  • Power consumption ~26 TWh in Metal in
Percent                                                        2008
100%

 90%                                                          • Self-generation and long-term contracts
 80%                                                           ensures predictability
 70%

 60%
 50%
                                                              • Limited commodity exposure
 40%                                                           • Indexation to LME and coal with time-lag
 30%

 20%
                                                              • NOK and USD the dominant currency
 10%
                                                               exposure
  0%
          2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

          Self generated   Inflation   Fixed   LME   C oal




(67)
Developing Norwegian hydropower assets

Development potential                                                     Normal production capacity per region and terms
• 0.5 – 1 TWh
• Utilizing existing concession areas                                                                      3.0          0.5
  and infrastructure
                                                                             Telemark
• Investment NOK 1.2 – 2.5 billion                                                                                     2044-
  from 2011 onwards                                                                       No reversion                 2049

• Normal production today 9.4 Twh

                                                                                 Sogn                            3.1
Reversion                                                                                 2051-2057
• Effects for private companies
• No renewal or new concessions
   • Can own up to 1/3 of publicly owned plants
                                                                          Røldal Suldal                    2.8
   • Everlasting concessions if sold to public companies
• Implications for Hydro                                                                  2022
                                                                                                                               TWh
   • First large system to revert in 2022
   • Financial impact muted by:
       • Public everlasting concession possibility
       • Hydro can maintain 1/3 indefinitely


Note: public ownership implies ownership by the state or municipalities




(68)
Power portfolio management
– significant volatility in price and volume

Quarterly production and spot price                                    • Norwegian power portfolio
TWh                                                                      optimized versus market
                                                          NOK/MWh
3.5                                                              550
                                                                       • Production and market prices strongly
                                                                 500
                                                                         impacted by hydrological conditions
3.0                                                              450
                                                                         • ”Dry” versus ”wet” years
                                                                 400

2.5                                                              350   • Historical inverse relationship between
                                                                         volume and price
                                                                 300

2.0                                                              250
                                                                       • Seasonal variations in demand/supply
                                                                 200

1.5                                                              150
                                                                       • Occasional delinkage between
                                                                 100     area prices
1.0                                                              50
   2001   2002   2003 2004    2005   2006   2007   2008   2009
                                                                       • Weak economic conditions and low
                 Power production (LH-scale)
                                                                         industrial demand with negative impact on
                 South-Norway (NO1) spot price (RH-scale)
                                                                         power prices, mitigated by the low
                                                                         reservoir levels for the Nordic region



(69)
Nordic power market – estimated based
on forward curves
NOK/MWh


650


600


550


500


450


400


350


300


250


200
      Apr 08                 Oct 08            Apr 09          Oct 09          Apr 10          Oct 10

               End Q1 2008       End Q2 2008     End Q3 2008   End Q4 2008   End Q1 2009   End Q2 2009




(70)
Solar
Industrial ambitions within Solar

                                    NorSun (18%) – mono-crystalline wafers
                                    •   Total investments NOK 500 million
                                    •   Hydro largest industrial owner
                                    •   155 MW production on Årdal, started 2008
                                    •   Seeking polysilicon production opportunities


                                    Ascent Solar (35%) – thin-film
                                    • Total investments NOK 260 million
                                    • Hydro largest owner
                                    • Produces thin-film solar cells for integration into
                                      buildings
                                    • Commercial scale plant operational 2010


                                    HyCore (49%) – solar-grade silicon
                                    • JV with Umicore
                                    • R&D project
                                    • Pilot plant with commercial products in 2010




(71)
Secured opportunities across the value chain
Investments of around NOK 800 million




       Polysilicon   Ingot          Wafer           Cell            Module           System/
                                                                                    Installation




HyCore (49%)             NorSun (18%)

                                                                              Hydro Building
                                                    Ascent (35%)
                                                                                Systems



 Metallurgy

 Industrialization
                                            Internal synergies / building systems




(72)
       Additional
       information




(73)
New reporting structure

                  Until Q1 2009                                                                            Q2 2009 and onwards

 Aluminium Metal
                                                                                                  Primary Metal
   Bauxite & Alumina

   Primary Aluminium
                                                                                                  Metal Markets
   Commercial     1)




 Aluminium Products                                                                               Rolled Products
   Rolled Products

   Extrusion
                                                                                                  Extruded Products
   Automotive


                                                                                                  Energy
   Energy    2)




   Other and eliminations                                                                         Other and eliminations


1) Alumina trading moved from Commercial to Primary Metal. 2) Solar activities moved from Energy to Other and eliminations.
In addition minor changes in allocation of certain overhead costs between the segments, and eliminations made at the Aluminium Metal and Aluminium
Products level moved to Other and eliminations.




(74)
Financial policy

Maintain investment-grade rating                   NOK billion
                                                                                              Dec 31,
                                                                                                2007
                                                                                                        Dec 31,
                                                                                                          2008
                                                                                                                  June 30,
                                                                                                                     2009

   • Currently: BBB- (S&P), Baa2 (Moody’s),        Cash and cash equivalents                      9.3       3.3        4.9
     both with negative outlook                    Short-term investments                         2.7       1.6        1.4
                                                   Short-term debt                              (1.0)     (1.2)      (2.2)
   • Competitive access to capital and important   Long-term debt                               (0.3)     (0.3)      (1.1)
     for Hydro’s business model
                                                   Net cash/(debt)                              10.8        3.5        3.0

                                                   Cash and short-term investments in
Financial ratios over the business cycle           captive insurance company
                                                                                                (2.0)     (1.7)      (1.4)

                                                   Net pension liability at fair value, net
                                                                                                (5.1)     (9.6)      (9.5)
   • Funds from operations to net adjusted         of expected tax benefit

     debt > 40%                                    Operating lease commitments, net of
                                                                                                (1.5)     (1.9)      (1.9)
                                                   expected tax benefit
   • Net adjusted debt to equity < 0.55            Net interest-bearing debt in equity
                                                                                                (2.1)     (6.8)      (8.4)
                                                   accounted investments
                                                   Other financial obligations, net of
• Dividend policy                                  expected tax benefit
                                                                                                (0.8)     (0.9)      (0.9)

   • 30% of net income over time                   Net adjusted cash/(debt)                     (0.8)    (18.8)     (19.2)
   • Share buyback and extraordinary dividends
     as supplement in periods with strong
     financials
   • No dividend paid for 2008




(75)
Hedging policy

Hydro to remain exposed to LME prices
  • Partly natural hedge through alumina
       contracts and power contracts

Operational LME hedging
  • Three months forward
  • Managing customers’ pricing
  • Marked-to-market valuations of positions
       result in unrealized gain/losses

Currency exposure, mainly USD
  • Policy of maintaining long-term debt in USD




(76)
Price and currency sensitivities

Aluminium price sensitivity +/- 100 USD per tonne                                NOK/USD sensitivity +/- 0.1 NOK
900                850                                                           200
800
700                                             650
                                                                                 150
600                                                                                          130

500
                                                                                 100                               90
400
300
200                                                                               50
100
  0                                                                                0
                  EBIT                       Net income                                     EBIT             Net income


• Annual sensitivities
• Aluminium price sensitivity is net of aluminium price indexed costs
• NOK/USD sensitivity includes USD revenues and costs



• Based on expected business volumes for 2009 and the following prices:
    • Aluminium 1 500 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 Q2 09




(77)
Underlying income
Q2 2009

 NOK million                                                                                            Reported income                 Adjustments         Underlying income

 Primary Metal                                                                                                        (537)                      (357)                      (895)
 Metal Markets                                                                                                          472                      (275)                        196
 Rolled Products                                                                                                        438                      (466)                       (28)
 Extruded Products                                                                                                       87                      (114)                       (26)
 Energy                                                                                                                 321                       (40)                        281
 Other and eliminations                                                                                               (370)                        224                      (146)

 Total EBIT                                                                                                             410                    (1 029)                      (618)

 Financial income (expense), net                                                                                        145                       (88)                         57

 Income continuing operations before tax                                                                                555                    (1 117)                      (561)
 Income tax expense 1)                                                                                                (273)                        262                       (11)

 Income from continuing operations                                                                                     282                      (854)                      (572)

 Income from discontinued operations                                                                                      -                          -                          -

 Net income                                                                                                            282                      (854)                      (572)

 Net income attributable to minority interest                                                                           71
 Net income attributable to equity holders of the parent                                                               211

 Earnings per share from continuing operations – NOK         2)                                                       0.17                                                (0.53)




1) Estimated tax effect on items excluded is calculated using 28% on currency gain/loss and Hydro’s effective tax rate for other items year-to-date, less estimated tax effect year-
   to-date previous quarter.
2) Calculated using income from continuing operations less net income attributable to minority interests




(78)
Underlying income
Q1 2009

 NOK million                                                                                             Reported income                Adjustments          Underlying income

 Primary Metal                                                                                                      (1 837)                      1 652                      (185)
 Metal Markets                                                                                                        (315)                          70                     (245)
 Rolled Products                                                                                                      (379)                        325                       (53)
 Extruded Products                                                                                                    (187)                       (17)                      (204)
 Energy                                                                                                                 451                         (4)                       447
 Other and eliminations                                                                                                 669                      (922)                      (253)

 Total EBIT                                                                                                         (1 598)                      1 105                      (493)

 Financial income (expense), net                                                                                      1 473                    (1 478)                        (5)

 Income continuing operations before tax                                                                              (126)                      (373)                      (498)
 Income tax expense 1)                                                                                                (155)                        174                         19

 Income from continuing operations                                                                                   (280)                      (199)                      (480)

 Income from discontinued operations                                                                                       -                          -                          -

 Net income                                                                                                          (280)                      (199)                      (480)

 Net income attributable to minority interest                                                                           67
 Net income attributable to equity holders of the parent                                                             (347)

 Earnings per share from continuing operations – NOK         2)                                                     (0.29)                                                (0.45)




1) Estimated tax effect on items excluded is calculated using 28% on currency gain/loss and Hydro’s effective tax rate for other items year-to-date, less estimated tax effect year-
   to-date previous quarter.
2) Calculated using income from continuing operations less net income attributable to minority interests




(79)
Underlying income
Q2 2008

 NOK million                                                                                            Reported income                 Adjustments         Underlying income

 Primary Metal                                                                                                        1 343                     (548)                         795
 Metal Markets                                                                                                          106                         33                        139
 Rolled Products                                                                                                        504                     (264)                         240
 Extruded Products                                                                                                      285                         10                        296
 Energy                                                                                                                 307                        (6)                        302
 Other and eliminations                                                                                             (1 838)                     1 685                       (153)

 Total EBIT                                                                                                            708                        911                      1 619

 Financial income (expense), net                                                                                       443                       (298)                       145

 Income continuing operations before tax                                                                             1 150                         613                     1 764
 Income tax expense 1)                                                                                               (248)                       (204)                     (452)

 Income from continuing operations                                                                                     902                        409                      1 311

 Income from discontinued operations                                                                                   (20)                          -                       (20)

 Net income                                                                                                            882                        409                      1 291

 Net income attributable to minority interest                                                                           96
 Net income attributable to equity holders of the parent                                                               786

 Earnings per share from continuing operations – NOK         2)                                                       0.67                                                  1.00




1) Estimated tax effect on items excluded is calculated using 28% on currency gain/loss and Hydro’s effective tax rate for other items year-to-date, less estimated tax effect year-
   to-date previous quarter.
2) Calculated using income from continuing operations less net income attributable to minority interests




(80)
Reported and underlying results
Hydro

                                        Q1          Q2          Q3          Q4          Q1          Q2       Q3       Q4        Q1        Q2     Year     Year
 NOK million                          2007        2007        2007        2007        2008        2008     2008     2008      2009      2009     2007     2008

 Reported EBIT                        3 672       3 001       2 013         338       1 179         708    2 414   (3 106)   (1 598)     410     9 025    1 194

 Underlying EBIT                     2 883       2 886       2 686       1 699       2 032       1 619     1 490      868     (493)    (618)    10 153    6 009



 Income (loss) from continuing
                                      3 258       2 581       2 792         527       1 443         902     233    (5 845)    (280)      282     9 158   (3 267)
 operations

 Underlying income (loss)
                                     2 363       2 152       2 381       1 461       1 376       1 311     1 075    (184)     (480)    (572)     8 357    3 579
 from continuing operations



 Earnings per share from
                                       2.57        2.02        2.20        0.36        1.21        0.67     0.06    (4.99)    (0.29)     0.17     7.16    (3.04)
 continuing operations 1)

 Underlying earnings per
 share from continuing                 1.84        1.67        1.86        1.13        1.15        1.00     0.75   (0.29)    (0.45)    (0.53)     6.51     2.62
 operations 1)




1) Calculated using income from continuing operations less net income attributable to minority interests




(81)
Items excluded from underlying results - 2009

NOK million                                                                               Q1 2009    Q2 2009

Unrealized derivative effects on currency contracts (Alunorte)   Primary Metal               (11)      (222)
Rationalization charges and closure costs                        Primary Metal                305         62
Unrealized derivative effects on power contracts                 Primary Metal                338         57
Unrealized derivative effects on power contracts (Søral)         Primary Metal                  1       (41)
Unrealized derivative effects on currency contracts (Qatalum)    Primary Metal                 (8)        18
Unrealized derivative effects on LME related contracts           Primary Metal              1 027      (231)
Total impact                                                     Primary Metal              1 652      (357)
Unrealized derivative effects on LME related contracts           Metal Markets                 70      (275)
Total impact                                                     Metal Markets                 70      (275)
Unrealized derivative effects on LME related contracts           Rolled Products            (337)      (692)
Metal effect                                                     Rolled Products              662        225
Total impact                                                     Rolled Products              325      (466)
Impairment charges                                               Automotive                    10          4
Rationalization charges and closure costs                        Automotive                      -         7
Unrealized derivative effects on LME related contracts           Other and eliminations      (27)      (125)
Total impact                                                     Extruded Products           (17)      (114)
Unrealized derivative effects on power contracts                 Energy                        (4)        12
Rationalization charges and closure costs                        Energy                          -        14
Insurance compensation                                           Energy                          -      (66)
Unrealized derivative effects on power contracts                 Energy                       (4)       (40)
Unrealized derivative effects on power contracts                 Other and eliminations     (915)         90
Unrealized derivative effects on LME related contracts           Other and eliminations        (7)       100
Rationalization charges and closure costs                        Other and eliminations          -        34
Total impact                                                     Other and eliminations     (922)       224
Total EBIT                                                       Hydro                      1 105    (1 029)
Net foreign exchange (gain)/loss                                 Hydro                     (1 478)      (88)
Income from continuing operations before tax                     Hydro                      (373)    (1 117)
Calculated income tax effect                                     Hydro                        174        262
Income from continuing operations                                Hydro                      (199)      (854)




(82)
Items excluded from underlying results - 2008

NOK million                                                                                  Q1 2008   Q2 2008   Q3 2008   Q4 2008     2008
Unrealized derivative effects on LME related contracts (Alunorte)   Primary Metal                 83       (8)     (134)      (37)      (96)
Unrealized derivative effects on LME related contracts              Primary Metal                263     (350)     (586)       112     (560)
Unrealized derivative effects on currency contracts (Alunorte)      Primary Metal               (16)     (106)       203       271       352
Unrealized derivative effects on currency contracts (Qatalum)       Primary Metal                 25       (4)      (53)        (6)     (37)
Unrealized derivative effects on power contracts                    Primary Metal                348        10     (342)     (442)     (426)
Unrealized derivative effects on power contracts (Søral)            Primary Metal                 20      (91)        50       150       129
Loss provision (power contracts)                                    Primary Metal                  -         -         -       257       257
Impairment charges (Alpart)                                         Primary Metal                  -         -         -       512       512
Impairment charges (PP&E)                                           Primary Metal                  -         -         -       845       845
Rationalization charges and closure costs                           Primary Metal                  -         -         -        79        79
Total impact                                                        Primary Metal               723      (548)     (861)     1 740     1 053
Unrealized derivative effects on LME related contracts              Metal Markets              (183)        33       101       385       336
Impairment charges (PP&E)                                           Metal Markets                  -         -         -        35        35
Total impact                                                        Metal Markets              (183)       33       101        420       371
Unrealized derivative effects on LME related contracts              Rolled Products            (648)      (17)       550     1 337     1 221
Metal effect                                                        Rolled Products              113     (247)      (38)       407       235
Impairment charges (PP&E)                                           Rolled Products                -         -         -       129       129
Total impact                                                        Rolled Products            (535)     (264)      511      1 872     1 585
Impairment charges (PP&E)                                           Extrusion                      -         -         -       253       253
Impairment charges (PP&E)                                           Automotive                     -         -         -       370       370
Rationalization charges and closure costs                           Automotive                     -         -         -        30        30
Unrealized derivative effects on LME related contracts              Other and eliminations      (90)        10        99       182       201
Total impact                                                        Extruded Products           (90)       10        99        834       853
Unrealized derivative effects on power contracts                    Energy                       (5)       (6)       (6)        (5)     (22)
Unrealized derivative effects on power contracts                    Energy                       (5)       (6)       (6)       (5)      (22)
Unrealized derivative effects on power contracts                    Other and eliminations       928     2 083     (740)    (1 183)    1 088
Unrealized derivative effects on LME related contracts              Other and eliminations        16       (8)         6         5        19
Impairment charges (PP&E)                                           Other and eliminations         -         -         -       321       321
(Gains)/Loss on divestments                                         Other and eliminations         -     (389)      (34)      (29)     (453)
Total impact                                                        Other and eliminations      944      1 685     (734)     (920)       975
Total EBIT                                                          Hydro                       853       911      (924)     3 975     4 815
Net foreign exchange (gain)/loss                                    Hydro                      (854)     (298)     2 015     4 629     5 491
Income from continuing operations before tax                        Hydro                        (1)      613      1 091     8 604    10 306
Calculated income tax effect                                        Hydro                       (66)     (204)     (248)    (2 943)   (3 460)
Income from continuing operations                                   Hydro                       (67)      409       843      5 661     6 846




(83)
Items excluded from underlying results - 2007

NOK million                                                                                  Q1 2007   Q2 2007   Q3 2007    Q4 2007     2007
Unrealized derivative effects on LME related contracts (Alunorte)   Primary Metal               (13)        40     (108)       (82)     (163)
Unrealized derivative effects on LME related contracts              Primary Metal              (263)     (110)     (100)       (49)     (425)
Unrealized derivative effects on currency contracts (Alunorte)      Primary Metal               (33)      (64)      (35)       (35)     (167)
Unrealized derivative effects on currency contracts (Qatalum)       Primary Metal                  -         -          -        30       30
Unrealized derivative effects on power contracts                    Primary Metal                127     (175)        80         76      108
Unrealized derivative effects on power contracts (Søral)            Primary Metal                 47      (25)        (1)       (2)       19
Rationalization charges and closure costs                           Primary Metal                 17        69        20          8      114
Correction of elimination of gain in inventory                      Primary Metal                  -         -        53         65      118
Total impact                                                        Primary Metal              (118)     (265)      (91)       109     (366)
Unrealized derivative effects on LME related contracts              Metal Markets               (40)        30       102         30      122
Impairment charges (Ellenville)                                     Metal Markets                  -       144          -         -      144
Total impact                                                        Metal Markets               (40)      174        102        30       266
Metal effect                                                        Rolled Products            (149)        28        55        301      235
Rationalization charges and closure costs                           Rolled Products                -         -          -        29       29
Germany, change in tax rate                                         Rolled Products                -         -          -      (47)      (47)
Unrealized derivative effects on LME related contracts              Rolled Products              101        18       398         99      616
Total impact                                                        Rolled Products             (49)       47        454       382       833
Rationalization charges and closure costs                           Extrusion                      -        63          -                 63
Rationalization charges and closure costs                           Automotive                     -         -          -        18       18
(Gains)/Loss on divestments                                         Extrusion                      -         -          -      (17)      (17)
(Gains)/Loss on divestments                                         Automotive                 (691)        15        40         12     (624)
Unrealized derivative effects on LME related contracts              Other and eliminations      (78)        13        41          4      (19)
Total impact                                                        Extruded Products          (769)       91         81        18     (579)
Unrealized derivative effects on power contracts                    Energy                      (22)      (27)      (35)       (35)     (119)
Total impact                                                        Energy                      (22)      (27)      (35)       (35)    (119)
Unrealized derivative effects on power contracts                    Other and eliminations       207     (135)       221        627      920
Correction of elimination of gain in inventory                      Other and eliminations         -         -      (58)        231      173
Total impact                                                        Other and eliminations      207      (135)       163       858     1 093
Total EBIT                                                          Hydro                      (790)     (116)       673      1 361    1 128
Net foreign exchange (gain)/loss                                    Hydro                      (464)     (517)    (1 199)      (74)   (2 254)
Income from continuing operations before tax                        Hydro                    (1 254)     (633)     (526)      1 287   (1 126)
Calculated income tax effect                                        Hydro                        359       204       115      (353)       325
Germany, change in tax rate                                         Hydro                          -         -     (250)       (50)     (300)
Income from continuing operations                                   Hydro                      (895)     (429)     (661)       884    (1 101)




(84)
Operating segment information
Underlying EBIT

                            Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2     Year    Year
NOK million               2007    2007    2007    2007    2008    2008    2008    2008    2009    2009     2007    2008

Primary Metal             2,289   2,172   1,941   1,245    938     795     906      93    (185)   (895)    7,646   2,732

Metal Markets              135     186     252      65     363     139     (41)    242    (245)     196      639    703

Rolled Products            195     254     140     (36)    147     240     170      93     (53)    (28)      552    651

 Extrusion                 245     227     201     179     225     292     239     (88)    (88)       5      852    668

 Automotive                 57        1    (49)    (75)     (2)       2    (92)   (235)   (115)    (37)     (67)   (326)

 Other and eliminations       1     11      (3)       5       -       1       4     (9)     (1)       6       15     (4)

Extruded Products          303     239     148     110     223     296     152    (332)   (204)    (26)      800    338

Energy                     271     381     213     400     421     302     493     649      447     281    1 266   1 865

Other and eliminations    (311)   (346)     (8)    (84)    (60)   (153)   (191)    124    (253)   (146)    (750)   (279)

Total                     2 883   2 886   2 686   1 699   2 032   1 619   1 490    868    (493)   (618)   10 153   6 009




(85)
Operating segment information
Underlying EBITDA

                            Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2     Year    Year
NOK million               2007    2007    2007    2007    2008    2008    2008    2008    2009    2009     2007    2008

Primary Metal             2,789   2,652   2,416   1,735   1,398   1,285   1,399    638     290    (372)    9,591   4,720

Metal Markets              175     221     285     101     388     162     (15)    274    (212)    226       782    808

Rolled Products            337     383     267      92     268     359     295     242      79     100     1,079   1 164

 Extrusion                 366     344     304     286     336     406     350      28      39     125     1,300   1,121

 Automotive                137      68      14     (10)     54      58     (38)   (171)    (76)      2       209    (97)

 Other and eliminations       4     14      (0)       8       4       6       9     (4)      4      11        25     15

Extruded Products          507     427     317     283     395     470     321    (147)    (32)    139     1,534   1 038

Energy                     299     404     242     421     446     327     519     680     471     305     1 367   1 973

Other and eliminations    (295)   (330)       6    (41)    (43)   (146)   (177)    157    (243)   (131     (660)   (209)

Total                     3 812   3 756   3 534   2 591   2 851   2 457   2 342   1 845    352     266    13 693   9 495




(86)
Operating segment information
EBIT
                           Q1      Q2      Q3      Q4       Q1        Q2       Q3        Q4         Q1      Q2      Year      Year
NOK million              2007    2007    2007    2007     2008      2008     2008      2008       2009    2009      2007      2008

Primary Metal            2 407   2 437   2 033   1 136      215     1 343    1 768   (1 647)    (1 837)   (537)     8 012     1 679

Metal Markets             176      12     150      35       546       106    (142)     (178)      (315)    472        373       332

Rolled Products           243     207    (314)   (418)      682       504    (341)   (1 779)      (379)    438      (281)     (934)

Extruded Products        1 072    148      67      92       313       285      53    (1 167)      (187)     87      1 379     (515)

Energy                    293     408     248     435       427       307     499        654       451     321      1 385     1 887

Other and eliminations   (519)   (211)   (171)   (942)   (1 004)   (1 838)    577      1 010       669    (370)   (1 843)    (1 255)

Total                    3 672   3 001   2 013    338     1 179       708    2 414   (3 106)    (1 598)    410     9 025      1 194




EBITDA
                            Q1      Q2      Q3     Q4        Q1        Q2      Q3        Q4         Q1      Q2      Year       Year
NOK million               2007    2007    2007   2007      2008      2008    2008      2008       2009    2009      2007       2008

Primary Metal            2 907   2 917   2 507   1 626      676      1 833   2 261       255    (1 363)    (15)     9 957     5 024

Metal Markets              216     191     183      71      571       129    (116)     (111)      (283)    502        660       473

Rolled Products            386     336   (187)   (290)      802       623    (216)    (1 501)     (247)    566        245      (292)

Extruded Products        1 276     335     236     268      485       459      223     (359)        (5)    256      2 116       808

Energy                     321     431     277     456      452       333      524       686        475    345      1 486     1 995

Other and eliminations   (503)   (195)   (156)   (899)     (987)   (1 831)     591     1 331        679   (355)   ( 1 753)     (896)

Total                    4 602   4 016   2 861   1 232    1 998     1 546    3 266       302     (743)    1 299   12 711      7 112




(87)
Operating segment information
Total revenue
                             Q1         Q2         Q3         Q4         Q1         Q2         Q3        Q4        Q1        Q2       Year       Year
NOK million                2007       2007       2007       2007       2008       2008       2008      2008      2009      2009       2007       2008

Primary Metal             11 321     10 766      9 894      8 780      8 858      9 837      9 256     8 478     6 471     6 365     40 761     36 428

Metal Markets             15 700     14 712     12 576     12 536     12 781     14 506     12 472    10 183     7 487     9 503     55 523     49 942

Rolled Products            6 621      6 810      5 894      5 790      5 837      6 174      5 837     5 796     4 727     4 221     25 116     23 644

Extruded Products          7 707      6 950      6 161      5 743      6 217      6 554      6 160     5 874     5 138     5 082     26 560     24 806

Energy                     1 421      1 370      1 416      2 261      2 338      3 997      1 012       565     1 515     1 330      6 468      7 913

Other and eliminations   (17 112)   (15 566)   (13 975)   (13 459)   (14 501)   (17 088)   (12 972)   (9 529)   (8 484)   (9 379)   (60 112)   (54 090)

Total                    25 657     25 042     21 966     21 651     21 529     23 980     21 765     21 368    16 854    17 123    94 316     88 643




External revenue
                              Q1         Q2         Q3         Q4         Q1         Q2         Q3        Q4        Q1        Q2       Year       Year
NOK million                 2007       2007       2007       2007       2008       2008       2008      2008      2009      2009       2007       2008

Primary Metal              1 458      1 497      1 505      1 396        870      1 156       1 145    1 200       831      1 076      5 857      4 371

Metal Markets              9 836      9 117      8 159      7 792      7 905      9 280       7 979    7 798      5 622     6 244     34 904     32 962

Rolled Products            6 521      6 700      5 815      5 699      5 771      6 037       5 798    5 860      4 629     4 232     24 736     23 466

Extruded Products          7 668      6 912      6 131      5 719      6 151      6 497       6 107    5 797      5 107     5 055     26 430     24 552

Energy                       (83)       562        125        664        327        883        599       541       499       361       1 268      2 350

Other and eliminations       256        253        230        381        506        126        137       172       165       155       1 120        941

Total                     25 657     25 042     21 966     21 651     21 529     23 980     21 765    21 368    16 854    17 123     94 316     88 643




(88)
Operating segment information
Internal revenue
                             Q1         Q2         Q3         Q4         Q1         Q2         Q3         Q4       Q1        Q2       Year       Year
NOK million                2007       2007       2007       2007       2008       2008       2008       2008     2009      2009       2007       2008

Primary Metal              9 862      9 269      8 388      7 384      7 988      8 680      8 111      7 278    5 640     5 290     34 904     32 057

Metal Markets              5 864      5 595      4 417      4 743      4 876      5 226      4 493      2 385    1 865     3 259     20 619     16 980

Rolled Products              100        110         79         91         66        136         39       (64)       97       (10)       380        177

Extruded Products             38         37         30         25         67         58         53        77        30        27        130        255

Energy                     1 504        808      1 291      1 597      2 011      3 114        413        25     1 016       969      5 200      5 563

Other and eliminations   (17 368)   (15 819)   (14 205)   (13 840)   (15 007)   (17 214)   (13 109)   (9 701)   (8 649)   (9 534)   (61 232)   (55 031)

Total                           -          -          -          -          -          -          -         -         -         -          -          -




Share of profit /(loss) in equity accounted investments
                              Q1         Q2         Q3         Q4         Q1         Q2         Q3        Q4       Q1        Q2        Year       Year
NOK million                 2007       2007       2007       2007       2008       2008       2008      2008     2009      2009        2007       2008

Primary Metal                236        323        275        141        (77)       273         95      (781)    (376)         3        975       (490)

Metal Markets                   -          -          -          -          -          -          -       (1)       (1)       (1)          -        (1)

Rolled Products                 7        (7)        (6)        42         (7)        (2)        (6)      (37)      (33)      (19)        36        (52)

Extruded Products               6        (1)          3          1          1          5          3         8        4         3         10         17

Energy                          -        10         (8)        25           3          8          -       16         8        (3)        26         26

Other and eliminations        (1)          1          2       (49)       (14)       (27)       (15)     (360)      (16)      (25)       (47)      (415)

Total                        248        326        265        160       (94)        256         77    (1 154)    (413)      (42)      1 000      (915)




(89)
Operating segment information
Depreciation, amortization and impairment

                           Q1     Q2     Q3     Q4     Q1     Q2     Q3     Q4      Q1     Q2   Year    Year
NOK million              2007   2007   2007   2007   2008   2008   2008   2008    2009   2009   2007    2008

Primary Metal             490    471    465    473    452    481    484   1 295    464    461   1 899   2 711

Metal Markets              40    179     33     36     24     23     26     67      32     30    287     140

Rolled Products           128    115    114    114    106    105    111    263     116    112    471     585

Extruded Products         204    188    169    176    172    174    169    808     182    169    736    1 324

Energy                     28     20     24     24     24     25     24     30      23     23     97     103

Other and eliminations     16     16     15     16     13     12     11     17      10     11     62      53

Total                     906    988    820    839    791    819    825   2 480    827    805   3 552   4 915




(90)
Income statement

                                                                                     Q2               Q1          Q2    First half   First half     Year
 NOK million                                                                       2009             2009        2008        2009         2008       2008

 Revenue                                                                         17 123            16 854      23 980     33 976       45 510      88 643
 Share of the profit (loss) in equity accounted investments                        (42)             (413)         256      (455)          162       (915)
 Other income, net                                                                  223               134         470        357          581         865

 Total revenue and income                                                        17 305           16 574       24 706     33 879       46 253     88 593

 Depreciation, amortization and impairment                                          805               827         819      1 632        1 610       4 915
 Other expenses                                                                  16 090            17 346      23 179     33 435       42 756      82 483

 Earnings before financial items and tax (EBIT)                                     410          (1 598)         708     (1 188)        1 887      1 194

 Financial income (expense), net                                                     145            1 473         443       1 617        1 441    (5 026)

 Income (loss) from continuing operations before tax                                 555            (126)       1 150         429        3 328    (3 832)
 Income taxes                                                                      (273)            (155)       (248)       (428)        (982)        565
 Tax rate                                                                           49%                 -        22%        100%          30%        15%

 Income (loss) from continuing operations                                           282            (280)         902            2       2 345     (3 267)

 Income (loss) from discontinued operations                                            -                   -     (20)            -       (377)      (247)

 Net income (loss)                                                                  282            (280)         882            2       1 969     (3 514)

 Net income (loss) attributable to minority interest                                  71               67          96         138           80        411
 Net income (loss) attributable to owners of the parent                              211            (347)         786       (137)        1 889    (3 925)

 Earnings per share from continuing operations – NOK          1)                   0.17            (0.29)        0.67     (0.11)          1.87     (3.04)




1) Calculated using income from continuing operations less net income attributable to minority interests




(91)
Balance sheets

                                                        June 30,     March 31,     December 31,     September 30,     June 30,
NOK million                                                2009          2009             2008              2008         2008

Cash and cash equivalents                                  4   860       3   128          3   333           3   583      7   985
Short-term investments                                     1   439       1   652          1   648           4   454      2   112
Receivables and other current assets                      14   988      16   077         18   833          19   744     19   967
Inventories                                               10   654      13   264         16   293          15   654     13   495

Assets held for sale / Discontinued operations                   -             -                -                 -          514

Property, plant and equipment                             27 621        28 038           29 338            27 609       26 067
Other non-current assets                                  24 843        24 798           25 711            22 827       20 820

Total assets                                             84 404        86 957           95 157            93 871       90 960

Bank-loans and other interest-bearing short-term debt      2 245         1 953            1 169             1 041        1 152
Other current liabilities                                 14 081        17 509           22 175            19 834       19 105

Long-term debt                                             1 094         1 106              279               308          215
Other long-term liabilities                               14 974        14 856           16 135            17 494       18 990
Deferred tax liabilities                                   1 199         1 143            1 258             1 809        1 314

Equity attr. to owners of the parent                      49 450        49 034           52 808            52 446       49 550
Minority interest                                          1 362         1 357            1 333               938          634

Total liabilities and equity                             84 404        86 957           95 157            93 871       90 960




(92)
Pensions

                                    December 31,    December 31,    Weighted average assumptions     December 31,   December 31,
 NOK million                               2008            2007     at end of year                          2008           2007

 Projected benefit obligation            (23 440)        (20 584)   Discount rate                           4.7%           5.0%

 Fair value of plan assets                12 386          15 579    Expected return on plan assets          5.7%           6.3%

 Termination benefits and other            (764)           (780)    Rate of compensation increase           3.8%           3.7%

 Net pension liability                  (11 818)         (5 785)

 Unrecognized amount                       3 322          (1 888)

 Net pension liability recognized        (8 496)         (7 675)
                                                                    • Increased benefit obligation mainly due
                                                                     to reduced discount rate

 NOK million                               2008            2007
                                                                    • Reduction in plan assets stems from
 Benefits earned                             483             560
                                                                     general decline in financial markets
 Interest cost                               987             945

 Expected return on assets                 (911)           (872)

 Amortizations                               (27)             33    • Net periodic pension cost estimated to
 Curtailments and settlements                 (3)             (8)
                                                                     increase by NOK ~500 million in 2009
 Contribution plans                           26              25

 Termination benefits and other              199             218

 Net periodic pension cost                   755             900




(93)
Primary Metal – operational data

                                                      Q1         Q2         Q3        Q4         Q1        Q2         Q3        Q4         Q1       Q2
Volumes and prices   1)                             2007       2007       2007      2007       2008      2008       2008      2008       2009     2009

Realized premium above LME (USD/mt)      1)           326        338       331        330       350        353       328        268        230     230

Realized premium above LME (NOK/mt)      1)         2 035      2 056     1 928      1 843      1 905     1 832      1 740     1 706      1 545    1 505



Alumina production (1 000 mt)                         474        480       512        541       509        506       589        684        578     494

Primary aluminium production (1 000 mt)               433        435       435        439       433        437       439        442        397     338

Casthouse production (1 000 mt)                       535        542       546        539       556        553       563        494        433     411

Casthouse sales (1 000 mt)                            566        542       533        506       568        584       534        451        440     447



LME realized (USD/mt) including hedges              2 557      2 606     2 592      2 485      2 450     2 610      2 848     2 654      1 996    1 468

NOK/USD realized including hedges   2)               6.37       6.21       5.97      5.69       5.45      5.19       5.31      6.37       6.71     6.54

LME realized (NOK/mt) including hedges             16 282     16 176    15 487     14 138    13 354     13 553     15 114    16 904     13 393    9 598

LME realized (USD/mt) excluding hedges              2 702      2 768     2 762      2 613      2 503     2 694      2 968     2 763      1 996    1 457

NOK/USD realized excluding hedges   2)               6,25       6.07       5.82      5.59       5.45      5.19       5.31      6.37       6.71     6.54

LME realized (NOK/mt) excluding hedges             16 883     16 815    16 080     14 603    13 632     13 985     15 754    17 601     13 393    9 526




1) Average realized premium above LME for total metal products sold from Primary Metal.
2) 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).




(94)
Metal Markets – operational data

                                                                  Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2
Volumes and prices                                              2007    2007    2007    2007    2008    2008    2008    2008    2009    2009

Remelt production (1 000 mt)                                     190     179     163     153     141     145     121      97      89     111

Sale of metal products from own production (1 000 mt)            771     772     699     680     724     753     667     571     548     577

Sale of third-party metal products (1 000 mt)                     77      76      80      73      64      48      56      39      24      25



Total metal products sales excluding ingot trading (1 000 mt)    848     823     779     753     788     801     723     610     573     602

Hereof external sales exclusive ingot trading (1 000 mt)         479     471     459     449     471     486     452     324     320     360



External revenue (NOK million)                                  9 836   9 117   8 159   7 792   7 905   9 280   7 979   7 798   5 622   6 244




Rolled Products – operational data
                                                                  Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2
Volumes and prices                                              2007    2007    2007    2007    2008    2008    2008    2008    2009    2009

Rolled Products external shipments (1 000 mt)                    266     264     254     246     253     259     240     213      191     187



Rolled Products – EBIT per tonne, NOK1)                          736     968     550    (149)    581     932     728     419    (279)   (152)




(95)
Extruded Products – operational data

                                                       Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2
Volumes and prices                                   2007    2007    2007    2007    2008    2008    2008    2008    2009    2009

Extrusion external shipments (1 000 mt)               134     135     123     117     130     133     122     103      96      99

Automotive external shipments (1 000 mt)               43      30      29      28      31      31      26      18      17      21



Extrusion – EBIT per tonne, NOK1)                    1 860   1 686   1 633   1 560   1 735   2 202   1 963   (851)   (917)     48




Energy – operational data

                                                       Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4      Q1      Q2
Volumes and prices                                   2007    2007    2007    2007    2008    2008    2008    2008    2009    2009

Power production, GWh                                2 654   2 749   3 294   2 321   2 850   3 021   2 677   2 813   2 477   1 809

Net spot sales, GWh                                   815    1 070   1 996    748     969    1 331   1 233   1 130    838     413

Nordic spot electricity price, NOK/MWh               218.3   182.2   156.1   337.0   303.1   275.0   446.0   452.0   344.0   301.0

South Norway spot electricity price (NO1), NOK/MWh   215.4   176.4    95.5   338.0   288.9   171.0   403.0   433.0   341.0   297.0




1) Underlying EBIT




(96)
Investor Relations in Hydro


                                                              t:   +47 22 53 92 80

       Stefan Solberg          Head of Investor Relations     m: +47 917 27 528
                                                              e:   stefan.solberg@hydro.com




                                                              t:   +47 22 53 25 22

       Stian Hasle             Investor Relations Officer     m: +47 977 36 022
                                                              e:   stian.hasle@hydro.com




                                                              t:   +47 22 53 92 24

       Irene Raposo            Investor Relations Assistant   m: +47 414 02 174
                                                              e:   irene.raposo@hydro.com




For more information see: www.hydro.com/ir




(97)                 07/2009
www.hydro.com

				
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