Investor presentation - Hydro.com

Investor presentation
May/June 2011

Table of contents Cautionary note
(2)
Company overview
Market outlook
First quarter results 2011
Business overview
–Bauxite & Alumina
– Primary Metal
– Metal Markets
– Rolled Products
– Extruded Products
–Energy
Additional information
3
11
29
51
52
69
78
82
89
96
102
Certain statements included within this announcement contain forwardlooking
information, including, without limitation, those relating to (a)
forecasts, projections and estimates, (b) statements of management’s
plans, objectives and strategies for Hydro, such as planned expansions,
investments or other projects, (c) targeted production volumes and
costs, capacities or rates, 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”, “scheduled”, “targeted”,
“planned”, “proposed”, “intended” or similar statements.
Although we believe that the expectations reflected in such forwardlooking
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 forwardlooking
statement or affect the extent to which a particular projection is
realized. Factors that could cause these differences include, but are not
limited to: our continued ability to reposition and restructure our
upstream and downstream aluminium business; changes in availability
and cost of energy and raw materials; global supply and demand for
aluminium and aluminium products; world economic growth, including
rates of inflation and industrial production; changes in the relative value
of currencies and the value of commodity contracts; trends in Hydro’s
key markets and competition;
and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have
been correct. Hydro disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

(3)
Company
overview

Hydro: resource rich and fully integrated
(4)
• Based in Norway with
operations in 40 countries
• 23 000 employees
• Operating revenues
• 2007: NOK 94 billion
• 2008: NOK 89 billion
• 2009: NOK 67 billion
• 2010: NOK 76 billion
• Current market capitalization
• NOK 100 billion/USD 18 billion
Hydro underlying EBIT quarterly, NOK million
3 200
2 800
2 400
2 000
1 600
1 200
800
400
0
(400)
(800)
9 930
2007
6 009 (2 555) 3 551
1 448
2008 2009 2010
2011

Hydro’s value proposition
(5)
• Transforming bauxite and alumina
acquisition enhances earnings robustness
and provides long alumina position for
decades to come
• Repositioning of Primary Metal on track
for USD 300 per tonne cost improvement
by end-2013
• World-class Qatalum smelter in full
production from June 2011
• Increasing value of Energy business and
competence
• Exciting prospects for high-end
downstream business in mature and
emerging markets
• Proactive portfolio, performance and
margin management

Strong positions across aluminium value chain
Raw materials processing
and energy
(6)
Bauxite
& Alumina
• Bauxite capacity
12.2 million tonnes
• Expansion potential
to 17.2 million tonnes
• Alumina capacity
6.9 million tonnes
• Expansion potential
to 14.5 million tonnes
• Long-term sourcing
contracts for bauxite
and alumina
Energy
• Long-term power
supply secured
• 9.4 TWh of renewable
energy production
in Norway
Primary aluminium production,
marketing and recycling
Primary
Metal
• 2.4 million tonnes
primary capacity
• High LME and USD
sensitivity
• Improving cost
position
• Leading in technology
Metal
Markets
• 3.8 million tonnes
(primary, remelt,
recycling and cold
metal)
• Expertise in materials
• Flexible system
• Strong marketing
organization
• Risk management
Aluminium in products
Rolled
Products
• 1 million tonnes
• Margin business
• Regional business
• Close to customers
• Innovation
• Market leading in
litho and foil
Extruded
Products
• 0.6 million tonnes
• Margin business
• Local business
• Close to customers
• Innovation
• Market leading in
Building Systems
Pro forma capacity for end-2010 after Vale transaction. 100% of volumes for assets that are fully consolidated and pro rata volumes for other assets.

Aluminium is the metal of the future
(7)
• Lightweight
• 1/3 density of steel
• Recyclability
• 5% of original energy consumption
• 75% of all aluminium produced still in use
• Corrosion resistant
• Oxide layer
Properties lead
to increased
market share
• Formability
• Extrusion, rolling, casting
• Low melting point vs. steel
• Excellent conductivity
• Thermal – electrical
• Alloying technology
• Gives wide range of physical properties
• Aluminium intensive urbanization and infrastructure
• Climate challenge – aluminium as part of the solution
• Recyclability more important with high energy prices

Hydro becomes first tier aluminium company
Production capacity for 2010 in aluminium equivalents, million tonnes
9 000
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
(8)
0
Source: CRU
Alcoa Chalco Rusal Rio Tinto Hydro pro
forma
Chiping
Xinfa
Weiqiao BHP
Billiton
Vale Hydro East Hope
Group
China
Power
Dubal Xinfa
Group
Alumina Aluminium
Yichuan
Power
Aluminium
Bahrain
Cent ury Vedant a

Responsible business is our license to operate
Safety remains a top priority Commitment to sustainable operations
TRI rate
(9)
10.3
7.0
6.0
5.4
4.0
2002 2003 2004 2005 2006 2007 2008 2009 2010
4.1
3.9
2.9
3.7
• Reducing specific energy consumption and
climate gas emissions
• Helping our customers reduce their climate
footprint
• Responsible restructuring
• Welcoming new colleagues from Vale
– drawing on their competence
• Hydro is recognized on key indexes

Strategy for further value creation
Bauxite & Alumina
Primary Metal
Energy
Mid- and downstream
(10)
•Integrate
•Expand
•Commercialize
• Reposition
• Keep solid cash flow in current assets
• Expand in high-class assets
• Increase value of business and competence
• Focus on operations and commercialization
of current assets
• Implement global approach to power
sourcing
• Continue proven high-end product strategy
• Pursue profitable life-cycle investments:
recycling, energy-efficient building systems,
aluminum in transport
• Expand selectively in emerging markets

(11)
Market
outlook

Significant aluminium demand growth expected
Demand for primary aluminium
Million tonnes
90
80
70
60
50
40
30
20
10
0
(12)
17
24
+80%
28
31
2010 2015 2020
Fight for raw materials to continue
Resource-constrained world
World outside China China
37
37

Aluminium price increase, strong premiums
Aluminium price USD per tonne
3 400
3 000
2 600
2 200
1 800
1 400
1 000
2001 2003 2005 2007 2009 2011 2013 2015
(13)
LME (3-month avg.) LME forward April 21, 2011
Primary aluminium LME USD/tonne NOK/tonne
Q1 2010 average
Q1 2010 end
Q4 2010 average
Q4 2010 end
Average 2010
Average 2009
Average 2008
Source: Reuters Ecowin
2 527
2 632
2 368
2 468
2 199
1 702
2 620
14 437
14 502
14 036
14 368
13 257
10 575
14 453
Ingot premiums USD per tonne
200
175
150
125
100
75
50
25
0
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
US Mid West Japan Europe*
Ingot premiums, USD/tonne US Mid West
Japan Europe
Q1 2011 average
Q4 2010 average
Average 2010
Average 2009
Average 2008
* Duty-paid
Source: Metal Bulletin, MW/MJP: Platts
140
138
138
105
93
113
116
120
95
79
Oct-10
Jan-11
193
189
159
58
83

Volumes seasonally higher
(14)
Hydro’s downstream sales Q1 2011 vs Q4 2010 Total downstream
3%
Rolled Products: +5%
1%
Extruded Products: +8%
Foil Litho Can Packaging Auto & General
Extrusion Building Extrusion
beverage & building heat engineering Eurasia Systems North
exchanger
America
sales *
Hydro’s upstream sales Q1 2011 vs Q4 2010 Total upstream sales
Extrusion ingot Sheet ingot Foundry alloys
4%
4%
14%
16%
3%
2%
10%
-13%
17%
19%
Extrusion
South
America
-6%
Precision
Tubing
17%
Q1 11 vs
Q4 10
6% 6%
Q1 11 vs
Q4 10
12%
Q1 11 vs
Q1 10
Q1 11 vs
Q1 10
15%
Albras included from March 1, 2011

Mid-term development scenario thinking
World outside China
1 000 tonnes
28 000
27 000
26 000
25 000
24 000
23 000
22 000
21 000
20 000
19 000
18 000
2006 2007 2008 2009 2010 2011 2012
Source: CRU/Hydro
(15)
Supply influences
•New projects
•Potential restart
• Supply disruptions
Supply Demand
19%
5%–9%
Demand influences
•GDP growth
•Further restocking
• Emerging markets
3%–6%

Global inventory days trending down
World reported primary aluminium inventories
1 000 tonnes Days
7 000
6 000
5 000
4 000
3 000
2 000
1 000
(16)
0
0
Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11
IAI Other
LME SHFE
Global inventory days
Source: CRU
80
70
60
50
40
30
20
10
• Inventory days reduction driven by
increased consumption
• Q1 LME stocks increase believed to partly
reflect unreported metal moved into
reported warehouses
• High inventories well known in market
• Different views on unreported inventories
• Estimated total reported and unreported
inventories ~11 million tonnes
• Represents ~3 months of consumption
• Financial deals locking up metal
• Profitable on a 3-6 month horizon

China balanced in primary aluminium
1 000 tonnes
Net import
Net export
(17)
600
500
400
300
200
100
0
(100)
(200)
(300)
(400)
Primary / alloyed Semis Fabricated Scrap Total
Source: Hydro / Antaike, April 2011
2007 2008 2009 2010
• Reduced production due to
Chinese New Year celebration
in February
• Production resumed after
Chinese New Year
• China expected to be broadly
balanced in 2011
• New capacity to be built in
north and west China
• Partly replacing high-cost
production in south and east

Positive 2011 market outlook maintained
World outside China (quarterly annualized)
1 000 tonnes
30 000
28 000
26 000
24 000
22 000
20 000
18 000
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
(18)
0
Dec-07
Source: CRU
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Demand Production
Sep-10
Dec-10
Mar-11
• World outside China
• Annualized demand at 25.3 million tonnes in Q1
• Up 1% vs Q4 2010
• 7% demand growth expected in 2011
• Capacity development
• 1.2 million tonnes curtailed capacity restarted
or in process of being restarted
• 1.2 million tonnes curtailed capacity may
restart if current market conditions continue
• China
• Annualized demand at 16.7 million tonnes in Q1
• Down 3% vs Q4 2010
• 10% demand growth expected in 2011
• Broadly balanced in primary aluminium

Downstream demand development
Demand, million tonnes
27
22
17
12
7
2
-3
(19)
Western Europe
2008
2009
2010
2011
2012
2008
2009
Transport C onstruction Packaging
Foil Electrical Consumer durables
Machinery & equipment Other
Source: CRU
North America
& Mexico
2010
2011
2012
2008
China
2009
2010
2011
2012
Share of semis consumption
2010 – 54 million tonnes
Electrical
10%
Machinery
& equipment
10%
Transport
26%
Consumer
durables
7%
Packaging
9%
Construction
24%
Foil stock 8%
Other 6%
Source: CRU LT October 2010

66% of bauxite reserves in 3 countries
Billion tonnes
Jamaica
1.1 0.5
Big-league (Top- 3)
Venezuela
1.8
0.3
Mid-league (Top- 11; each > 2% of world total)
Guinea
14.9
4.0
Brazil
8.2
2.0
Mali
1.2
0.0
Cameroon
1.2
0.0
India
1.6
0.4
Total bauxite, billion tonnes: reserves, mine site resources *, and undeveloped resources **
Potential reserves, billion tonnes: associated with currently operating mines ***
*) Mine site resources are known bauxite resources that do not currently qualify as reserves for various reasons
**) Undeveloped resources might or might not became feasible for new mines (quality, size, access, etc)
***) Potential reserves = current reserves (economically extractible) + 70% of mine site resources. Undeveloped resources are excluded.
(20) Source: Roskill and Hydro analysis
China
2.1
0.9
Australia
9.5
Vietnam
2.3
0.0
Indonesia
1.0
0.1
5.9

China dependent on bauxite imports
Chinese bauxite sourcing
Million tonnes
Import
Domestic source
(21)
21
19
7
9
30
37
2005 2010 2015
Chinese alumina sourcing
Million tonnes
Import
Domestic source
16
67
35
4
29
115
2005 2010 2015
42
73
54
5
49
• Domestic bauxite reserves estimated
at 1.3-2.0 billion tonnes
• Quality of domestic bauxite resources
deteriorating
• Indonesia supplies ~75% of imported
bauxite
• The balance mainly from Australia
• China to be relatively balanced in alumina
• Minor imports
• New alumina capacity mainly based on
domestic bauxite
Source: Antaike / Hydro

Significant alumina demand growth expected
Million tonnes
160
140
120
100
80
60
40
20
0
(22)
Alumina demand
Production China
Production world outside China
81
29
52
2010
+80%
48
70
2015
*2020 production world outside China includes 10 million tonnes of highly probable projects
Source: Hydro analysis/ Antaike
118
135
55
80
2020

Alumina market expected to remain balanced
(23)
90
80
70
60
50
40
30
20
10
0
Export to
China
Idled
capacity
Alumina balance world outside China, million tonnes
2011
3.5
5.1
Source: Hydro analysis / CRU
Alumina demand + export to China
Highly probable new capacity
Alumina production
2012
3.5
4.2
2013
4.0
4.2
2014
4.5
3.5
2015
4.5
3.5
2020
5.0
3.5
6-10
million
tonnes

Alumina market is consolidating
Net long alumina position, million tonnes
Alcoa 4.3
Vale 3.0
Glencore 2.4
Chalco 2.0
BHP Billiton 1.9
Kaiser 1.0
Alcan 0.8
Sual
Rio Tinto 0.5
Pechiney 0.4
VAW -0.5
Hydro -0.6
Alba -0.9
Dubal
(24)
-1.0
Rusal -1.2
0.7
Alcoa 8.0
Chalco 2.8
BHP Billiton 2.1
Hydro 1.5
Glencore
Rio Tinto 0.7
Klesch
Rusal -0.6
Tajik -0.8
2000 Aluar -0.9
2011
Source: CRU and Hydro analysis
Century
Vimetco
Alba -1.7
Dubal -2.2
-1.1
-1.1
-0.5
1.5

Attractive cost position
Global business operating cost curve 2010
USD per tonne
450
400
350
300
250
200
150
100
50
0
(25)
0
Source: CRU
Average - USD 243
Alunorte stand-alone
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90
Million tonnes

Alumina price development
Historical alumina price
USD per tonne
700
600
500
400
300
200
100
0
(26)
1998
2000
2002
2004
Alumina price
% of LME
2006
2008
% LME
2010
Source: Reuters/CRU/Platts. *Platts started spot notifications in August 2010
32
28
24
20
16
12
8
4
0
Platts index in USD *
USD per tonne
450
425
400
375
350
325
300
275
250
09.10
10.10
11.10
12.10
Alumina price
% of LME
01.11
02.11
03.11
% LME
04.11
20
18
16
14
12

Commodity prices drive industry costs
Crude oil – Brent (USD/bbl)
160
140
120
100
80
60
40
20
2005 2006 2007 2008 2009 2010 2011
Power – EEX Germany (EUR/MWh)
90
80
70
60
50
40
30
20
2005 2006 2007 2008 2009 2010 2011
Source: Reuters Ecowin / PACE / CMAI
(27)
Coal – CIF ARA (USD/mt)
245
210
175
140
105
70
35
0
2005 2006 2007 2008 2009 2010 2011
Freight – Baltic Dry Index
11 900
10 200
8 500
6 800
5 100
3 400
1 700
0
2005 2006 2007 2008 2009 2010 2011
Petroleum coke FOB USG (USD/tonne)
550
500
450
400
350
300
250
200
2005 2006 2007 2008 2009 2010 2011
Caustic soda (USD/tonne)
1 200
1 050
900
750
600
450
300
150
2005 2006 2007 2008 2009 2010 2011

Strong power prices, low reservoir levels
Hydro’s snow and water reservoir levels assumed better than market average
Market price Southwestern Norway (NO2)
NOK/MWh
700
600
500
400
300
200
100
0
Price NOK/MWh
System
Southwestern Norway (NO2)
Source: Nordpool and NVE
(28)
2010 2011
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
Q4 2010
498
469
Q1 2011
518
520
Water reservoir levels Southwestern Norway (NO2)
Percent
100
90
80
70
60
50
40
30
20
10
0
Reservoir levels
Norway
Southwestern Norway (NO2)
2010 2011
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
Week Week
Dec 31, 2010
45.3 %
42.8 %
Mar 31, 2011
18.1 %
15.4 %

(29)
First quarter
results 2011

(30)
• Vale transaction completed
• Qatalum ramp-up on track
• Positive market outlook

Q1 highlights
• Underlying EBIT NOK 1 448 million
• Stronger sales supported by seasonally improved markets
• Stable Bauxite & Alumina result, weak production performance
• Primary Metal up on higher prices, partly offset by increased raw material costs
• Down- and midstream lifted by higher sales and lower costs
• Solid Energy result
(31)

Ambitious cost improvement program on target
Estimated primary aluminium cash cost and margin
USD/tonne 1)
(32)
475
475
2 175
1 475
25
1 675
1 275
375
1 750
2008 2009 2010 Q1 2011
Estimated cash cost excluding LME-linked alumina cost 2)
Estimated LME-linked alumina cost 2)
Estimated EBITDA margin
375
1 225
425
475
1 875
1 275
1) Realized aluminium price minus EBITDA margin per tonne primary
aluminium. Excludes Qatalum earnings and volumes, but includes net
earnings from primary casthouses.
2) 13% of LME 3 month price with 2.5 months delay
3) Albras included from March 1, 2011
3)
• USD 300 per tonne cost improvement
• USD 50 per tonne realized in 2010
• Further USD 125 per tonne targeted in 2011
• Cash cost up ~USD 125 from 2010
due to increased raw material costs
• Energy
• LME-linked alumina prices
• Petroleum coke
• Weaker USD
• Program assumptions
• Higher energy and petroleum coke costs may
offset some improvements
• Improvements may be influenced by fluctuations
in raw material prices and currencies
• Applies to ~1 000 000 tonnes annual capacity

Historic Vale transaction completed
• Platform for further growth as fully
integrated resource-rich aluminium
company
• Positions Hydro as a leading global
bauxite and alumina player
• Integration process well under way
• Key priority: increase production
towards nameplate capacity
• Weak production performance in Q1
• Promising growth prospects
• Vale has become key shareholder
in Hydro with 22% ownership
(33)

Underlying EBIT
NOK million
Bauxite & Alumina 1)
Primary Metal 1)
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations 1)
Total
(34)
-493
Q1 2009
(228)
3
(245)
(53)
(204)
447
(213)
(493)
-618 -651
-793
Q2 2009
(73)
(815)
196
(28)
(26)
281
(153)
(618)
Q3 2009
21
(780)
(15)
51
95
217
(382)
(793)
Q4 2009
(117)
(623)
(20)
57
68
295
(311)
(651)
1) Bauxite & Alumina, Primary Metal and Other and eliminations are reclassified from 2009.
688
Q1 2010
162
(169)
65
223
117
588
(297)
688
1 110
Q2 2010
288
382
31
309
201
177
(278)
1 110
965
Q3 2010
71
318
163
227
102
169
(85)
965
588
Q4 2010
113
86
62
105
24
482
(284)
588
1 448
Q1 2011
155
583
143
232
105
573
(344)
1 448

Underlying EBIT development
NOK billion
(35)
0.6
0.4
Q4 2010 LME price and
currency
0.3
0.2
Volume Equity accounted
investments
(0.2)
0.1
1.4
Cost smelters Other Q1 2011

Key financials
NOK million
Revenue
Underlying EBIT
Items excluded from underlying EBIT
Reported EBIT
Financial income (expense)
Income (loss) before tax
Income tax expense
Net income (loss)
Underlying net income (loss)
Reported EPS, NOK
Underlying EPS, NOK
(36)
Q1 2011
21 138
1 448
4 408
5 855
(93)
5 762
(608)
5 154
1 244
2.89
0.65
Q4 2010
19 406
588
180
768
292
1 060
(401)
658
376
0.39
0.21
Q1 2010
18 145
688
297
985
545
1 530
(605)
924
401
0.68
0.27
Year 2010
75 754
3 351
(167)
3 184
522
3 706
(1 588)
2 118
1 852
1.33
1.14

Tax and financial expense
Tax Finance
NOK million
Income before tax
Equity accounted investments
Revaluation gain Alunorte and CAP
Adjusted income before tax
Income tax expense
Effective tax rate
Adjusted effective tax rate
(37)
Q1 2011 Q4 2010
5 762
(19)
4 222
1 559
(608)
11%
39%
• Low tax rate for Q1 due to tax-free revaluation
gain on previous stakes in Alunorte and CAP
• Adjusted effective tax rate influenced by high
share of earnings from Energy subject to power
sur tax
1 060
17
-
1 043
(401)
38%
38%
NOK million
Interest income
Dividends received and net gain on securities
Financial income
Interest expense
Net foreign exchange gain (loss)
Other
Financial expense
Net financials
(10)
41
(80)
(30)
(25)
(134)
(93)
• Lower interest income due to reduced cash
balance in Q1
Q1 2011 Q4 2010
• Net foreign exchange loss due to weaker USD
largely offset by gains on intercompany balances
in EUR
51
84
22
107
(30)
232
(16)
185
292

Items excluded from underlying EBIT
NOK million
Underlying EBIT
Unrealized effects power contracts
Unrealized LME and other derivative effects
Metal effect, Rolled Products
Rationalization charges and closure costs
Impairment charges
Gains (losses) on divestments
Vale transaction related effects
Other
Reported EBIT
(38)
Q1 2011
1 448
40
(136)
176
-
-
-
4 328
-
5 855
Q4 2010
588
(151)
283
92
(131)
(12)
7
-
91
768
Q1 2010
688
(272)
230
314
19
(61)
67
-
-
985
Year 2010
3 351
(609)
(117)
560
(130)
(187)
74
-
242
3 184

Pro forma underlying EBIT & EBITDA
Underlying EBIT before transaction and contribution from acquired Vale assets
NOK million
(39)
698
688
259
1 110
1 231
266
965
253
588
1 538
91
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
Underlying EBITDA before transaction and contribution from acquired Vale assets
NOK million
1 979
539
1 440
1 369
2 702
825
1 877
3 351 + 790 = 4 141
6 420 + 3 030 = 9 450
2 555
835
1 720
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
841
2 213
830
1 383
1 448
2 881
467
2 415

Preliminary purchase price allocation
Property, plant and equipment
Goodwill
Net other assets
Deferred tax liabilities
Net interest-bearing debt
Net assets acquired
Net assets acquired by Hydro
Minority interests
Net assets acquired
Consideration shares issued to Vale
Cash consideration paid
Deferred cash payment Paragominas
Fair value of previously held shares in Alunorte and CAP
Net assets acquired by Hydro
Revaluation gain on Alunorte and CAP recognized in Q1 2011 reported result
Estimated annual excess value depreciation (exposed to NOK/BRL exchange rate)
(40)
NOK billion
44.8
2.7
9.2
(6.2)
(6.4)
44.1
37.0
7.1
44.1
20.0
6.3
1.5
9.2
37.0
~4.2
~1.0

Pro forma income statement Q1 2011
NOK million
Revenue
Share of the profit (loss) in equity accounted investments
Other income, net
Total revenue and income
Depreciation, amortization and impairment
Other expenses
Earnings before financial items and tax (EBIT)
Financial income (expense), net
Income (loss) before tax
Income taxes
Tax rate
Net income (loss)
Net income (loss) attributable to minority interest
Net income (loss) attributable to Hydro shareholders
Earnings per share attributable to Hydro shareholders
(41)
Hydro actual
21 138
(19)
4 553
25 672
940
18 877
5 855
(93)
5 762
(608)
11%
5 154
112
5 043
2.89
Vale
Aluminium
combined
2 121
-
-
2 121
214
1 656
251
(22)
229
(79)
150
21
129
Pro forma
adjustments
(444)
(27)
(4 421)
(4 891)
162
(551)
(4 502)
(21)
(4 523)
144
(4 379)
11
(4 390)
Pro forma
Hydro after
transaction
22 815
(45)
132
22 902
1 316
19 981
1 604
(137)
1 468
(543)
37%
925
144
782
0.38

Bauxite & Alumina
Pro forma
Key figures
Alumina production, kmt
Total alumina sales, kmt
Realized alumina price, USD/mt
Apparent alumina cash cost, USD/mt
Bauxite production, kmt
Underlying EBITDA, NOK million
Underlying EBIT, NOK million
Underlying EBIT
NOK million
205
(42)
448
348
223
237
Q1
2011
1 336
1 762
329
266
1 720
725
237
Q4
2010
1 448
2 018
311
251
2 017
1 225 237
2010 2011
693
223
Q1
2010
1 394
1 843
293
231
1 745
643
205
Q1 operating results
• Weak production performance in Alunorte and Paragominas
• Higher realized alumina price driven by LME link
• Lower sales volumes in Alunorte
• Increased caustic and energy costs
• Higher bauxite costs due to scheduled maintenance of
Paragominas bauxite pipeline and increased operating costs
• Lower contribution from commercial activities
Outlook
• Higher LME-linked alumina prices
• Improved production at Alunorte and Paragominas
• Reduced unit costs due to higher utilization

Primary Metal
Pro forma
Key figures
Primary aluminium production, kmt
Total sales, kmt
Realized LME price, USD/mt
Realized LME price, NOK/mt
Underlying EBITDA, NOK million
Underlying EBIT, NOK million
Underlying EBIT
NOK million
(203)
(43)
481
306
230
592
Q1
2011
490
627
2 366
13 664
1 137
592
Q4
2010
475
624
2 131
12 739
816 592
2010 2011
808
230
Q1
2010
447
601
2 039
11 826
320
(203)
Q1 operating results
• Prices and premiums lift result by NOK 480 million
• Increased raw material costs, partly offset by lower fixed
costs, reduce result by NOK 170 million
• Insurance compensation of NOK 145 million included in
positive NOK 20 million Qatalum result
• Albras contributing NOK 50 million vs NOK 144 million in Q4
Outlook
• Close to 100% of primary production affecting Q2 results
priced at ~USD 2 450 mt, excluding Qatalum
• Increased alumina and petroleum coke cost
• Restart of 15 000 mt at Sunndal 3 line in June

Metal Markets
Key figures
Remelt production, kmt
Total metal products sales, kmt
Underlying EBITDA, NOK million
Underlying EBIT excl currency and
inventory valuation effects, NOK million
Underlying EBIT, NOK million
Underlying EBIT
NOK million
65
(44)
31
163
62
143
Q1
2011
150
772
168
95
143
Q4
2010
321 143
2010 2011
147
688
88
73
62
Q1
2010
143
670
91
144
65
Q1 operating results
• Increased sales volumes for third-party products
• Improved margins for remelters
• Lower contribution from metal sourcing and trading
• Positive currency and inventory valuation effects of
NOK 50 million
Outlook
• Slightly increased volumes
• Volatile trading and currency effects

Rolled Products
Key figures
External sales volumes, kmt
Underlying EBITDA, NOK million
Underlying EBIT, NOK million
Underlying EBIT
NOK million
223
(45)
309
227
105
Q1
2011
232
245
342
232
Q4
2010
234
226
105
864 232
2010 2011
Q1
2010
231
335
223
Q1 operating results
• Seasonally higher sales improve result
by NOK 80 million
• Improved margins driven by general
engineering applications
• Higher energy costs offset by lower
maintenance costs
Outlook
• Solid order book for 2011
• Stable sales volumes in Q2

Extruded Products
Key figures
External sales volumes, kmt
Underlying EBITDA, NOK million
Underlying EBIT, NOK million
Underlying EBIT
NOK million
117
(46)
201
102
24
Q1
2011
105
136
237
105
Q4
2010
444 105
127
162
2010 2011
24
Q1
2010
128
252
117
Q1 operating results
• Weak European construction market
• Seasonally higher volumes
• Lower costs
• Solid results in Precision Tubing and
Extrusion South America
Outlook
• Current market conditions expected to continue,
but increased volatility in demand
• Seasonally higher sales

Energy
Key figures
Power production, GWh
Net spot sales, GWh
Southwest Norway spot price (NO2),
NOK/MWh
Underlying EBITDA, NOK million
Underlying EBIT, NOK million
Underlying EBIT
NOK million
588
(47)
177
169
482
Q1
2011
2 308
573
955
520
600
573
Q4
2010
2 263
1 416 573
827
469
502
482
2010 2011
Q1
2010
2 781
1 323
430
623
588
Q1 operating results
• High and stable production
• Strong spot prices
• Lower transmission costs
Outlook
• Significantly lower production and spot sales
• Lower prices

Net cash development Q1
NOK billion
(48)
11.0
2.4
End-Q4 2010 Underlying
EBITDA
Net cash flow from
operations NOK (0.6 billion)
(1.9)
Operating
capital
(1.2)
Other
adjustments
Net cash flow from
investing NOK (6.4 billion)
(0.6)
Investments /
divestments
(5.7)
Net cash
payment Vale
(5.7)
(0.2)
(2.0)
Debt increase Other End-Q1 2011

Robust financial position
Net cash/(debt), NOK billion
(49)
2.0
11.0
Dec 31, 2009 Dec 31, 2010 Mar 31, 2011
(2.0)
NOK billion
Cash and cash equivalents
Short-term investments
Short-term debt
Long-term debt
Net cash/(debt)
Net int.-bearing debt in equity
accounted invest.
Net pension liability at fair value,
net of expected tax benefit
Other adjustments *
Adjusted net debt
* Operating lease commitments and other
Dec 31,
2009
2.6
1.5
(2.0)
(0.1)
2.0
(8.0)
(5.6)
(4.0)
(15.6)
Dec 31,
2010
10.9
1.3
(0.9)
(0.3)
11.0
(7.8)
(5.6)
(4.0)
(6.4)
Mar 31,
2011
3.7
1.3
(2.5)
(4.5)
(2.0)
(7.3)
(5.5)
(5.6)
(20.5)

(50)
Priorities 2011
• Successful integration and improved
performance in Bauxite & Alumina
• Primary Metal repositioning through
USD 300 program and Qatalum ramp-up
• Solid operations with firm cost control
and strong market focus

(51)
Business
overview

(52)
Bauxite & Alumina

High-quality asset portfolio
MRN
bauxite mine
• 5% ownership
• Volume off-take
agreement for
Vale’s 40% stake
• Capacity 18
million tonnes
(53)
Bauxite licenses
Paragominas
bauxite mine
• 60% ownership, 100%
by 2015
• One of the world’s
largest bauxite mines
• 2010 production
7.5 million tonnes
• Nameplate capacity of
9.9 million tonnes
• Possible expansion to
15 million tonnes
• Long-life resource
Refining and mining
competencies
Alunorte alumina
refinery
• 91% ownership
• World’s largest alumina
refinery
• 2010 production
5.8 million tonnes
• Nameplate capacity of
6.3 million tonnes
• Bauxite supplied from
Paragominas and MRN
• World-class conversion
cost position
External supply
contracts
CAP alumina
refinery project
• 81% ownership
• CAP refinery (Phase I)
is planned to be
in operation in 2015
• Paragominas expansion
to be developed
in parallel
• Investment estimates
and expansion concepts
under evaluation
• Full utilization of the
existing bauxite pipeline
Alpart alumina
refinery
• 35% ownership
• Capacity 1.65
million tonnes
of alumina
• Fully integrated
with bauxite
• 100% curtailed
since mid-2009
Sales contract
portfolio

Integration process well underway
(54)
Successful
start
• Solid management team
• Global organization
• Headquarters, Rio de Janeiro, Brazil
• Operations, Para State, Brazil
• Marketing, Lausanne, Switzerland
• Workforce of 6 500 people in Brazil
• Stakeholder relations well established
• Authorities
• Customers
• Social dialogue developing positively
• Expansion projects maturing

Paragominas – production process
• Production process
• Strip mining allows for quick environmental
recovery
• Bauxite found in 0.5-2.5 meter layers 4-18
meters below ground
• 244 km pipeline from Paragominas to
Alunorte
• Only bauxite slurry pipeline in the world
• 15 million tonnes annual capacity
• Low environmental impact
• High-quality bauxite
• Gibbsite bauxite with 48-49% available
alumina and 4.5-5% of reactive silica
• Absence of organics reduces investments
and cash cost at Alunorte
(55)

Paragominas – production process
(56)
Pumping station
to pipeline
Tailings
dam/recovered
water
Reclaimer Silo SAG mill
Classification
Classification
Ball mill Recrusher
Vibrating
screen

Paragominas bauxite mining costs
• Labor largest cost factor
• Influenced by Brazilian wage level
• Productivity improvements
• Maintenance/consumables
• Influenced by Brazilian inflation
• Energy cost – power and fuel
(57)
Paragominas bauxite mining costs 2010
Other costs; 19
%
Maintenance/
consumables,
19%
Support &
infrastructure; 12
%
Sustaining
capital; 9 %
Energy; 16 %
Labor; 25 %

Paragominas priorities
Bauxite production, million tonnes
10
9
8
7
6
5
4
3
2
1
0
(58)
2007 2008 2009 2010 Target
• Operational improvements
• Housekeeping and safety
• Improve performance stability
• Beneficiation plant
• Dewatering filters in Alunorte
• Stripping ratio
• Recovery rate
• Improved production system
• Target significant production increase
• Nameplate capacity of 9.9 million tonnes

Alunorte - production process
(59)
Alumina
Al 2O 3
Calcination
Hydrate
(Al(OH) 3)
Classification
Powerhouse
Evaporation Test tank
Precipitation
Steam
Digestion
Decanters
Bauxite dewatering
Bauxite
Mud residue
Caustic soda

Alunorte priorities
Alumina production, million tonnes • Operational improvements
7
6
5
4
3
2
1
0
1995 1997 1999 2001 2003 2005 2007 2009
(60)
• Housekeeping and safety
• Improve plant efficiency
• Performance in older lines
• Availability of coal boilers
• Dewatering filters
• Port costs
• Improved production system
• Targeting stable production above
6 million tonnes
• Nameplate capacity of 6.3 million tonnes

Favorable integrated alumina cash cost position
• Integrated alumina cash cost position 2010
• USD 238 per tonne
• Alunorte, Paragominas and sourced alumina
• Bauxite
• Cash cost to be improved as Paragominas increase
production and pipeline is fully utilized
• Energy
• First-quartile energy consumption – 8 MJ/t
• Energy mix of heavy fuel oil and coal
• Caustic soda
• Competitive caustic soda consumption due to bauxite
with low level of reactive silica
• Other costs
• Maintenance, labor and other
• Sourced alumina
• Alumina purchased for resale
(61)
Integrated alumina cash cost position 2010
Other costs; 15 %
Sourced alumina;
8 %
Energy; 31 %
Bauxite; 36 %
Caustic soda,
10%

Expansion projects - CAP and Paragominas III
(62)
• Capacity
• CAP alumina refinery I
• 1.9 million tonnes
• Paragominas bauxite mine expansion III
• Up to 15 million tonnes
• Time schedule
• CAP refinery I planned to produce in 2015
• Paragominas expansion developed in
parallel
• Investment estimates and expansion
concepts under evaluation
• Competitive cost position
• Full utilization of existing bauxite pipeline
• Technology and project execution for
CAP built on Alunorte experience

Business model – volume flows
1 000 tonnes, pro forma 2010
1) Third party customers and non-consolidated joint ventures
2) Fully owned smelters and consolidated joint ventures
(63)
Paragominas
Prod (100%) 7 500
Hydro availability
100%
MRN
Prod (100%) 17 000
Hydro availability
Equity 5%
Contract 40%
7 500
6 700
900
External
sourcing
alumina
2 100
Alunorte
Prod (100%)
5 800
Hydro
availability
Equity 91%
2 100
5 300
Commercial
operations
Hydro
availability
Alumina 7 400
Bauxite 900
4 500
2 900
900
External 1)
alumina sales
Internal 2)
alumina sales
External
bauxite sales

Attractive alumina position
1 000 tonnes
9 000
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
(64)
Open position not committed to sales contracts
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*Sunndal 3 line assumed back in operation, Neuss and Søral at 2010 production level
Sourcing contracts
CAP equity
Alunorte equity
Smelter demand *

Shift towards shorter contract durations
(65)
12.00-13.00%
13.00-14.00%
13.25-15.25%
1990-2000 2000-2005 2005-2010
Source: Hydro estimates
% of LME per tonne alumina for
long-term contracts
20%
35%
Contract durations
6 years)
Medium-term contracts (3-5 years)
Spot (< 2 years)
25%

Alumina pricing shifting from LME-link to
alumina market fundamentals
(66)
• Future pricing should reflect the
fundamentals of the bauxite and
alumina value chain
• Bauxite, a fight for cost efficient
resources going forward
• Index pricing and shorter term
contracts

Hydro’s commercial strategy
(67)
• Move towards index pricing
• Currently not offering medium/long-term LME
linked contracts
• Actively promote index pricing
• Focus on contracts with 1-4 year duration
• Focus on selling to end-users
• Hydro’s existing combined sales portfolio
• Average alumina price ~13-14% of LME
• Similar percentage expected for 2011-2015
• Minor volumes available for sale before 2016
• Majority of sales contracts expire in 2016-2018

Strong social and environmental commitment
• Strategic partnerships to establish
basis for multi-party dialogue
(68)
• Social program/community investments
based on input from stakeholders
• Reforestation
• World-leading experts to review
rehabilitation program
• Health and safety top priority
• Ambition to be industry benchmark
• Hydro’s values and culture important
for further improvements

(69)
Primary Metal

World-wide production network
Primary aluminium annual production capacity
Canada, 115 000 tonnes
• Alouette (20%): 115 000 tonnes
• Expansion potential
(70)
2.1
million tonnes
Brazil , 235 000 tonnes
• Albras: (51%): 235 000 tonnes
6%
11%
Australia, 240 000 tonnes
• Kurri Kurri (100%): 175 000 tonnes
• Tomago (20%): 65 000 tonnes
Norway, 880 000 tonnes
• Sunndal (100%) : 375 000 tonnes
• Årdal (100%): 190 000 tonnes
• Karmøy (100%): 170 000 tonnes
• Høyanger (100%): 60 000 tonnes
• Søral (50%): 85 000 tonnes
Germany, 230 000 tonnes
• Neuss (100%): 230 000 tonnes
Slovakia, 90 000 tonnes
• Slovalco (55%): 90 000 tonnes
Qatar, 300 000 tonnes
• Qatalum (50%): 300 000 tonnes
• Ramping up during first half 2011
• Expansion potential
Attributable capacity: 2.1 million mt. Consolidated capacity: 2.4 million tonnes, Slovalco and Albras are consolidated) The smelters have an additional
remelt capacity: 0.6 million tonnes. Consolidated casthouse capacity: 3.0 million tonnes. Qatalum and Søral are equity accounted in Hydro’s results.
42%
11%
4%
14%
12%

Strong focus to further improve cost position
Estimated primary aluminium production
cash costs
Full year 2010, USD/tonne
2 800
2 400
2 000
1 600
1 200
800
(71)
Rusal Rio Tinto Hydro Alcoa Century
Estimated business operating cost 2014 by CRU
USD/tonne
2 800
2 400
2 000
1 600
1 200
Hydro
Peer companies
Hydro
Accumulated world capacity, 1 000 tonnes
800
0 10 000 20 000 30 000 40 000 50 000 60 000
Estimated primary aluminium production cash costs including casthouse margin based on company reports. Assumptions: Hydro cash costs increased by USD
50/tonne for relining cost in order to compare with Alcoa. Pricing: Century 1 month LME cash lag, Hydro 3 months and 20 days LME forward lag, Alcoa, Rio
Tinto and Rusal 15 days LME cash lag.
Source: CRU, BOC
2014: LME 2 145 USD/tonne (real 2010)

Improvement program: USD 300 per tonne
Cost reduction target from 2009 level for ~1 000 000 tonnes annual capacity
(72)
Operational improvements
• Improved current efficiency
• Reduced power consumption
• Reduced anode consumption
Fixed cost reductions
and lean operations
Further operational improvements
Technology costs/spin-offs
Investments
Maintenance and relining
Procurement
Logistics
Organization and manning
Casthouse product margin
300
200
100
0
50
Realized
2010
125
2011 2012 2013
onwards
USD
300/tonne

(73)
Attractive Qatalum fundamentals
Joint venture (50/50) between
Qatar Petroleum and Hydro
• Capacity: 585 000 tonnes
Ideally located to serve all major
markets in Asia, US and Europe
World-class smelter
• Cash costs estimated around
1 400-1 500 USD per tonne at 2010
market conditions when in full production
2011 focus
• Ramp-up to be completed by June 2011
• Stabilize production and cost optimization

Qatalum in full production from June 2011
(74)
• 440 of 704 cells producing by end-Q1
• 80 000 tonnes produced in Q1 (100%)
• Ramp-up is continuing towards full
production from June
• Final ramp-up dependent on commissioning
of power plant steam turbines
• Insurance expected to cover a majority
of loss related to August power outage
• NOK 145 million recognized in Q1 result
• NOK 300 million recognized in Q4 result
• Remaining insurance coverage expected to
be recognized at final insurance settlement
• World-class cost position
• Cash costs estimated around USD
1 400-1 500 per tonne at 2010 market
conditions when in full production

Qatalum facts
(75)
• Capacity
• Smelter: 585 000 tonnes per year
• 704 cells in 2 double-lined potrooms
• Anode plant, casthouse and 1 350 MW power plant
• Possible expansion to 1 200 000 tonnes per year
• Hydro’s proprietary smelting technology
• Investment
• ~USD 5.7 billion (100%)
• 46% equity, 54% project financed
• 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
• Financials
• Depreciated over ~20 years
• Marginal tax implications
• First quartile cash cost based on very competitive gas
contract

Albras – world-scale smelter in key region
(76)
• Hydro is a majority owner
• Owned 51% by Hydro and 49% by Nippon
Amazon Aluminium Company
• Industry average cash cost position
• Long-term energy coverage with hydropower
based LME-indexed contract until end-2024
• Alumina sourced from Alunorte located next to
Albras
• Among the largest smelters in the
Americas and established in 1985-86
• Key operational facts
• Capacity 100%: 460 000 tonnes
• Production 2010: 450 000 tonnes
• Technology: AP 13
• Product mix: Standard ingot

Develop technology to fulfill ambitions
(77)
HAL 300
• Operating for several years
in Sunndal
• Ramping up in Qatar
• Qatalum power outage
verified the robustness of
HAL 300
In operation
the cells
• Operating at:
• 13.3 kWh/kg
• 313 kA
• 1.6 tonne CO2/tonne
aluminium
HAL4e
• Benchmark technology –
process parameters and
environment
• 30 months of operations
in Årdal, Norway
• First verification period
surpassed targets
• Currently operating at:
• 12.5 kWh/kg
• 424 kA
• 1.5 tonne CO2/tonne
aluminium
Nextgeneration
smelter
R&D portfolio
• HAL4e optimization – to
be ready for next project
• HAL Ultra – future vision
• Significantly lower kWh/kg
• Carbon capture-ready cell
• New materials and cell
design
• Reduced investment costs

(78)
Metal Markets

Leading metal products supplier in Europe
Casthouse production
Primary production
Remelting & recycling
Commercial agreements
(79)
The preferred
partner in
casthouse
products and
services
Extrusion ingot
1 550 000 tonnes
Foundry alloys
450 000 tonnes
Sheet ingot
525 000 tonnes
• Growing marketing position in U.S. and
Asia through Qatalum volumes
• Enhance value of market system and
optimize value on top of LME price
• Strengthen margin management and
contribute to improved earnings in
primary casthouses
• Capitalize on strong market position
through sourcing and trading strategies
• Firm operational LME risk management

Flexible and extensive supply network Europe
• Capacity in Europe
• 1.3 mill tonnes of primary metal 1)
• 1.0 mill tonnes of remelting and recycling 2)
• 0.6 mill tonnes Qatalum (100%) 3)
• 0.2 mill tonnes of third party metal products
• Capacity outside Europe
• 0.6 mill tonnes of primary metal
• 0.2 mill tonnes of remelting and recycling
• Stand-alone remelters close to customers
• Business concept
• Increased business volume with low investments
• Optimized system costs for sourcing, casthouse
operations and marketing of metal products
• Maximize casthouse capacity utilization
• Basis for strategic alliances
• Gain leading position in scrap conversion
(80)
Product customer (illustration)
Primary casthouse
Remelters
Third-party & part-owned
primary source
Deeside
Azuqueca
Høyanger
Karmøy
Luce
Sunndal
Årdal
Hannover
Rackwitz
Rheinwerk
Clervaux
Slovalco
1) Including ~320 000 tonnes presently curtailed
2) Excluding downstream capacities in Rolled Products and Extruded Products
3) Ramp-up to 600 000 tonnes by June 2011

Metal Markets earnings drivers
• Remelters
• Revenue impact – volume and product
premiums above LME
• Cost impact
• Scrap and standard ingot premiums
above LME
• Raw material mix
• Freight cost – proximity to market
• Gas and electricity consumption and prices
• Other main businesses
• Physical and LME trading
• Third-party products
• High purity aluminium
• Results influenced by currency
fluctuations
(81)
Underlying EBIT excluding currency effects and
ingot stock valuation effect, NOK million
300
250
200
150
100
50
0
-50
-100
-150
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2008 2009 2010 2011

(82)
Rolled Products

No. 1 flat rolled products producer in Europe
(83)
Packaging
& building
Revenues:
NOK 11.3 billion
Automotive,
heat
exchangers
& general
engineering
Revenues:
NOK 6.8 billion
Litho
Revenues:
NOK 3.7 billion
• World leading positions in high-end
products: foil, litho and automotive
• Solid cash generation
• Record results in 2010
• Technology leadership and innovation
• Strategy
• Margin management and cash generation
• Focus production system on core assets
• High-grading product portfolio

Flat rolled products consumption
Western Europe
Million tonnes
8
7
6
5
4
3
2
1
0
2004 2006 2008 2010
Source: CRU February 2011
1) Source: EAA
(84)
23%
20%
17%
14%
11%
8%
5%
2%
-1%
-4%
-7%
-10%
-13%
-16%
North America
Million tonnes
8
7
6
5
4
3
2
1
0
2004 2006 2008 2010
Solid market share for Rolled Products 1)
Other
81 %
Hydro
19 %
European market
4.3 million tonnes
23%
20%
17%
14%
11%
8%
5%
2%
-1%
-4%
-7%
-10%
-13%
-16%
Asia Pacific
Million tonnes
8
7
6
5
4
3
2
1
0
2004 2006 2008 2010
Million tonnes
% growth (RHS)
• 75% of shipments in Europe
• 6% of business in North America
• 19% of business in Asia/rest of the world
23%
20%
17%
14%
11%
8%
5%
2%
-1%
-4%
-7%
-10%
-13%
-16%

Hydro’s Rolled Products operations
(85)
Malaysia
Holmestrand
Karmøy
Hamburg
Norf/
Grevenbroich
Cisterna
Rolling Mill Sales Office
• 1 million tonnes flat rolled products
annually
• Operating revenues ~NOK 21.2 billion
• Hydro operates 7 rolling assets
in 4 countries
• Operating world-class benchmark assets
• Alunorf (JV 50%)
• World’s largest rolling mill
• Grevenbroich plant
• World’s largest finishing mill
• ~4 000 employees

Attractive market position and customers
More than 50% of products with global reach
Global
reach
Regional
reach
(86)
Our products
Litho
Foil
Can
Auto
GE/
Building
Our customers
Our position
World market leader
Leading position in Europe
Leading position in Europe

European producer with global reach
25% export share for high-end markets serving key global customers & markets
Tonnes
Source: Hydro analysis;
based on export sales by region
2010 (YTD Nov annualized);
(87)
North
America
56 000, 6%
Latin
Lamerica
27 000, 3%
Middle East
76 000, 8%
Asia-Pacific
79 000, 8%
World
943 000
100%

Rolled Products earnings drivers
Underlying EBIT per tonne, NOK
1 400
1 200
1 000
800
600
400
200
-200
(88)
0
2006 2007 2008 2009 2010 2011
• Contract structure
• Margin business based on conversion price
• LME element passed on to customers
• Medium-term contracts
• Range from spot contracts to multi-year
contracts
• High share of fixed costs - volume sensitive
• Preferred supplier market position in
high-end products
• Hydro’s market position key advantage in
cost and volume driven industry

(89)
Extruded Products

Strong position in Europe, U.S. and Brazil
(90)
Extrusion Eurasia
Revenues: NOK 8.8 billion
Precision Tubing
Revenues NOK 2.4 billion
Extrusion
South America
Revenues: NOK 0.8 billion
Building Systems
Revenues: NOK 5.6 billion
Extrusion
North America
Revenues: NOK 2.5 billion
Strong
entrepreneur
-ship,
management
culture and
competence
Product
innovation
through
strong
customer
relations
• Leading position in Europe in Extrusion
and Building Systems
• Strong position in the U.S. and Brazil
• Global leader in precision tubing
• Strategy
• Reinforce European extrusion base
• Specialist in energy-neutral building
solutions, including solar
• Selective acquisitions
• Entry into emerging markets
• Operating revenues ~NOK 19.4 billion
• ~9 500 employees

A true entrepreneurial driven enterprise
Extrusion Eurasia, Extrusion North America and Extrusion South America
(91)
Location
• “Mastering” Europe/gaining
market share in the US
• Close to customers with
strong regional presence
• More then 40 locations
in 19 countries
• Top innovation and design
• Main segments
• Building and construction
• Automotive
• Transport
• Solar
• 2010 sales volume
• 388 000 tonnes

Winning in a demanding market
Precision Tubing
• Competence - our proven resource
• Strike a new path
• Strong global presence
• 2010 sales volume: 67 000 tonnes
(92)

Building the future with aluminum
Building Systems
(93)
Aluminium
used for
construction
to double by
2020
The future
is energyneutral
buildings
Energy saving
• Reduce materials
• High insulation
Energy
gaining
• Active
• Passive
100%
recyclable
• Design
• Limited types of,
and non-harming
materials
2010 sales volume: 73 000 tonnes

Extruded products consumption
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
(94)
Europe
Million tonnes
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011e
16%
12%
8%
4%
0%
-4%
-8%
-12%
-16%
-20%
-24%
North America
Million tonnes
Solid market share for Extrusion in Europe 1)
Other
56 %
Hydro
17 %
Sapa
16 %
Alcan
Aleris8
%
3 %
European market
2.4 million tonnes
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Million tonnes
% growth (RHS)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011e
• 74% of shipments in Europe
• 14% of business in North America
• 12% of business in Asia/rest of the world
Source: European and North American consumption figures from CRU February 2011.
1) Best estimates shown for competitor 2009 market share. Market share Hydro ~17% excluded divested Automotive Structures.Hydro ~15% for EE/HBS
16%
12%
8%
4%
0%
-4%
-8%
-12%
-16%
-20%
-24%

Extruded Products earnings drivers
• Contract structure
• Mainly short-term contracts
• Large number of small orders to
small/medium-sized customers
• Produce to order - limited share of
commodity type products
• Strong cost focus
• Margin management is key
• Volume sensitive - but flexible
production system
• Support customers in product
development
• Value creation in excess of metal price
* Excluding divested businesses (Structures, Castings, Magnesium)
(95)
Underlying EBIT per tonne * , NOK
2 000
1 750
1 500
1 250
1 000
750
500
250
0
-250
-500
2006 2007 2008 2009 2010 2011

(96)
Energy

Solid long-term power coverage
for Primary Metal
35 000
30 000
25 000
20 000
15 000
10 000
5 000
(97)
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Self-generated Long-term
Medium-term Consumption
• 90% of power needs secured until 2020
• High share of renewable energy
• More than 2/3 of power needs from
renewable sources
• Albras smelter in Brazil has hydropower
based contracts through 2024
• High share of general inflation linked and
fixed price contracts
• Limited commodity price exposure
• Securing acceptable power sourcing in
Europe requires CO 2 compensation

Hydro is a global energy player
Energy consumption in smelters, rolling mills and alumina refineries
(98)
North America
Power 1.6 TWh
South America
Power 4.2 TWh
Coal 5.6 TWh
Fuel oil 7.4 TWh
Europe
Power 14.8 TWh
Natural gas 2.4 TWh
Middle East
Power 4.6 TWh
Australia/Asia
Power 3.8 TWh
Natural gas 0.1 TWh
2011 estimate for Hydro’s equity production including Vale assets acquisition. Sunndal 3 line and Alpart curtailed, Neuss and Søral at current production level.

Substantial values in long-term
assets in Norway
• Stable and solid cash generation
(99)
• Indicative annual EBITDA NOK 1.6 – 1.8 billion
• Hydro’s power balance, normal year
• Normal production ~9.4 TW
• Sourcing on long-term contracts ~7.0 TWh
• Consumption in Primary Metal* ~12.5 TWh
• Contract sales and concession power ~1.0 TWh
• Spot sales ~3.0 TWh
• Value enhancement potential
• Growth opportunities in Norway
• Holsbru project to add 84 GWh from 2012
• Vasstøl project to add 26 GWh from 2012
• Rjukan system and Herva upgrades
• Represents NOK 1.2 billion in investments during
2011-2015
• Optimization of power value in market, and in
cooperation with smelters
* Including Sunndal 3 line currently curtailed
Power production capacity (TWh)
per region and reversion year
Normal
production
9.4
Telemark
No reversion
Sogn
2051-2057
Røldal-Suldal
2023
2.8
3.0 0.5
3.1
2044-
2049

Reversion regime secures Hydro’s values
(100)
• Pursue value enhancement strategy
• Develop and enhance value of power assets
• Power assets remain an integrated part of
aluminium production in Norway
• Power and smelter portfolio will be reviewed
concurrently
• Participate in restructuring of power sector
• Actively working on framework conditions
(CO2 and grid)
• Value of assets protected by several
possible types of transaction
• Sell or merge into state or municipality
owned entity (minimum 2/3 of asset)
• Maintaining ownership to Røldal-Suldal
assets means owning an option

Energy earnings drivers
Underlying EBIT * and spot price
NOK million
2 000
1 500
1 000
800
600
400
200
500
0
0
(101)
2003 2004 2005 2006 2007 2008 2009 2010
Underlying EBIT and spot price
NOK million
0
2006 2007 2008 2009 2010 2011
Underlying EBIT Spot price
NOK/MWh
500
400
300
200
100
0
NOK/MWh
500
400
300
200
100
• Production and market prices strongly
linked to hydrological conditions
• Relatively stable annual EBIT contribution
• Large quarterly variations due to volatile spot
sales and spot prices
• Seasonal market variations in demand
and supply
• Occasional delink between area prices
• Power portfolio optimized versus market
• Stable cost base
* Underlying EBIT 2003–2006 based on USGAAP

(102)
Additional
information

Shareholder and financial policy
• Hydro aims to give its shareholders competitive
returns compared to alternative investments in
peers
• Maintained dividend policy
• Ordinary dividend: 30% of net income over the cycle
• Average ordinary pay-out ratio 2007-2010: 57%
• NOK 0.75 per share proposed for 2010
• Share buybacks and extraordinary dividends as
supplement in periods with strong financials
Maintain investment-grade rating
• Currently: BBB (S&P) & Baa2 (Moody’s) stable outlook
• Competitive access to capital and important for Hydro’s
business model (counterparty risk and partnerships)
Financial ratios over the business cycle
• Funds from operations to net adjusted debt > 40%
• Net adjusted debt to equity < 0.55
• USD 1.7 billion in multi-currency revolving credit
facility maturing in 2014
(103)
NOK billion
Cash and cash equivalents
Short-term investments
Short-term debt
Long-term debt
Net cash/(debt)
Cash and short-term investments
in captive insurance company
Net pension liability at fair value,
net of expected tax benefit
Operating lease commitments,
net of expected tax benefit
Net interest-bearing debt in
equity accounted investments
Other financial obligations, net of
expected tax benefit
Net adjusted cash/(debt)
Dec 31,
2008
3.3
1.6
(1.2)
(0.3)
3.5
(1.7)
(9.6)
(1.9)
(4.9)
(0.9)
(15.4)
Dec 31,
2009
2.5
1.5
(1.9)
(0.1)
2.0
(1.5)
(5.6)
(1.7)
(8.0)
(0.9)
(15.5)
Dec 31,
2010
10.9
1.3
(0.9)
(0.3)
11.0
(1.4)
(5.6)
(1.7)
(7.8)
(0.9)
(6.4)
Mar 31,
2011
3.7
1.3
(2.5)
(4.5)
(2.0)
(1.4)
(5.5)
(1.7)
(7.3)
(2.4)
(20.5)

Hedging policy
(104)
Upstream
• Primarily remain exposed to LME prices
• Partly off-setting effects through raw material prices and
negative currency correlations with LME
• Majority of 2011 LME exposure in Vale transaction hedged
• Operational LME hedging
• Three months forward sales to manage customers’ pricing
• Currency exposure, mainly USD and BRL
• Policy of maintaining long-term debt in USD
• Partly natural hedge through negative correlation between
LME and major exposed currencies
Mid- and downstream
• Operational LME and currency hedging to
secure margin
Volatility mitigated by strong balance sheet

Capital allocation mainly upstream
NOK billion
(105)
10.2
~6.2 1
2009 2010E 2011E
Capex Vale
Debt-financed investments Qatalum
Investments Qatalum
New growth projects
Sustaining capex
1) Including net operating capital in Qatalum
2) Excluding Vale assets acquisition
~5.0 2
• Qatalum capital expenditure completed
in 2010
• Equity contribution ~NOK 3.5 billion
• Sustaining capex NOK 3.5 billion annually
from 2011 including Vale assets
• Growth projects in 2011
• Holsbru hydro power development
• Recycling center Karmøy
• Extruded Products expansion China
• Paragominas and CAP development under
evaluation

Price and currency sensitivities
Commodity price sensitivity +/- 10%
NOK million
Aluminium
Oil
Pet coke
Caustic soda
Coal
(106)
EBIT
2 900
(280)
(230)
(100)
(50)
Currency sensitivities +/- 10%
NOK
million
USD
BRL
EUR
EBIT
2 450
(700)
(50)
Financial
items
Income
before tax
(450) 2 000 1 300
700
(1 100)
(1 150)
• Annual sensitivities based on expected business volumes for
2011 (including Vale assets for the full year), LME USD 2 500,
Oil USD 880 per tonne, petroleum coke USD 550 per tonne,
caustic soda USD 300 per tonne, coal USD 90 per tonne,
NOK/USD 5.50, NOK/BRL 3.42, NOK/EUR 7.70.
• Aluminium price sensitivity is net of aluminium price indexed
costs and exclusive of Vale-hedge and unrealized effects
related to operational hedging
-
Net
income
100
(850)

Items excluded from underlying results - 2011
NOK million (+=loss/()=gain)
Unrealized derivative effects on currency contracts (Alunorte)
Derivative effects on LME related contracts (Vale Aluminium)
Transaction related effects (Vale Aluminium)
Total impact
Derivative effects on LME related contracts (Vale Aluminium)
Unrealized derivative effects on LME related contracts
Unrealized derivative effects on power contracts (Søral)
Unrealized derivative effects on power contracts
Unrealized derivative effects on raw material contracts
Transaction related effects (Vale Aluminium)
Total impact
Unrealized derivative effects on LME related contracts
Total impact
Unrealized derivative effects on LME related contracts
Metal effect
Total impact
Unrealized derivative effects on LME related contracts
Total impact
Unrealized derivative effects on power contracts
Total impact
Unrealized derivative effects on power contracts
Unrealized derivative effects on LME related contracts
Total impact
Total EBIT
Net foreign exchange (gain)/loss
Income (loss) before tax
Calculated income tax effect
Net income (loss)
(107)
Bauxite & alumina
Bauxite & alumina
Bauxite & alumina
Bauxite & alumina
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Metal markets
Metal markets
Rolled products
Rolled products
Rolled products
Extruded products
Extruded products
Energy
Energy
Other and eliminations
Other and eliminations
Other and eliminations
Hydro
Hydro
Hydro
Hydro
Hydro
Q1 2011
(1)
16
(4 421)
(4 406)
27
(23)
30
(84)
16
93
59
(8)
(8)
59
(176)
(117)
(3)
(3)
7
7
8
54
61
(4 408)
30
(4 378)
467
(3 911)

Items excluded from underlying results - 2010
NOK million (+=loss/()=gain)
Unrealized derivative effects on currency contracts (Alunorte)
Derivative effects on LME related contracts (Vale Aluminium)
Total impact
Derivative effects on LME related contracts (Vale Aluminium)
Rationalization charges and closure costs
Unrealized derivative effects on power contracts
Unrealized derivative effects on power contracts (Søral)
Unrealized derivative effects on LME related contracts
Impairment charge (Qatalum)
Insurance compensation (Qatalum)
Unrealized derivative effects on raw material contracts
Total impact
Unrealized derivative effects on LME related contracts
Pension – curtailment and settlement
Total impact
Unrealized derivative effects on LME related contracts
Pension – curtailment and settlement
Metal effect
Total impact
Unrealized derivative effects on LME related contracts
Pension – curtailment and settlement
Rationalization charges and closure costs
Impairment charges
(Gains)/Loss on divestments
Total impact
Unrealized derivative effects on power contracts
Total impact
Unrealized derivative effects on power contracts
Unrealized derivative effects on LME related contracts
Pension – curtailment and settlement
Impairment charges
(Gains)/Loss on divestments
Total impact
Total EBIT
Net foreign exchange (gain)/loss
Income (loss) before tax
Calculated income tax effect
Net income (loss)
(108)
Bauxite & alumina
Bauxite & alumina
Bauxite & alumina
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Metal markets
Metal Markets
Metal markets
Rolled products
Rolled products
Rolled products
Rolled products
Extruded products
Extruded products
Extruded products
Extruded products
Extruded products
Extruded products
Energy
Energy
Other and eliminations
Other and eliminations
Other and eliminations
Other and eliminations
Other and eliminations
Other and eliminations
Hydro
Hydro
Hydro
Hydro
Hydro
Q1 2010
23
-
23
-
(19)
64
5
(212)
-
-
-
(161)
97
-
97
(147)
-
(314)
(461)
12
-
-
-
(67)
(55)
(16)
(16)
220
(3)
-
61
-
277
(297)
(468)
(764)
241
(523)
Q2 2010
12
(298)
(286)
(22)
18
(186)
(18)
(56)
-
-
-
(264)
(26)
(2)
(28)
476
(12)
(206)
259
24
(25)
-
-
-
(1)
1
1
413
(30)
(112)
-
-
271
(47)
(59)
(106)
38
(68)
Q3 2010
(65)
93
28
7
-
150
2
424
114
-
-
696
145
-
145
(86)
-
52
(34)
(18)
-
-
-
-
(18)
1
1
(178)
50
-
-
-
(127)
690
246
936
(328)
608
Q4 2010
(20)
41
22
14
66
21
(46)
(61)
(16)
(91)
(156)
(269)
(53)
-
(53)
(22)
-
(92)
(114)
-
-
64
28
-
92
(7)
(7)
182
(26)
-
-
(7)
149
(180)
(232)
(412)
129
(282)
Year 2010
(50)
(164)
(214)
(2)
66
49
(56)
95
98
(91)
(156)
2
164
(2)
162
222
(12)
(560)
(350)
18
(25)
64
28
(67)
18
(21)
(21)
637
(9)
(112)
61
(7)
569
167
(513)
(346)
80
(266)

Items excluded from underlying results - 2009
NOK million (+=loss/( )=gain)
Unrealized derivative effects on LME related contracts (Alunorte)
Unrealized derivative effects on currency contracts (Alunorte)
Rationalization charges and closure costs
Unrealized derivative effects on power contracts
Unrealized derivative effects on power contracts (Søral)
Defined pension plan (Søral)
Unrealized derivative effects on currency contracts (Qatalum)
Unrealized derivative effects on LME related contracts
Total impact
Unrealized derivative effects on LME related contracts
Total impact
Unrealized derivative effects on LME related contracts
Metal effect
Impairment charges
(Gains)/Loss on divestments
Total impact
Impairment charges
Rationalization charges and closure costs
Rationalization charges and closure costs
(Gains)/Loss on divestments
Unrealized derivative effects on LME related contracts
Total impact
Unrealized derivative effects on power contracts
Rationalization charges and closure costs
Insurance compensation
Total impact
Unrealized derivative effects on power contracts
Unrealized derivative effects on LME related contracts
Rationalization charges and closure costs
Impairment charges
(Gains)/Loss on divestments
Total impact
Total EBIT
Net foreign exchange (gain)/loss
Income (loss) before tax
Calculated income tax effect
Net income (loss)
(109)
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Primary metal
Metal markets
Metal markets
Rolled products
Rolled products
Rolled products
Rolled products
Rolled products
Automotive
Extrusion
Automotive
Extrusion
Other and eliminations
Extruded products
Energy
Energy
Energy
Energy
Other and eliminations
Other and eliminations
Other and eliminations
Other and eliminations
Other and eliminations
Other and eliminations
Hydro
Hydro
Hydro
Hydro
Hydro
Q1 2009
-
(11)
305
338
1
-
(8)
1 027
1 652
70
70
(337)
662
-
-
325
10
-
-
-
(27)
(17)
(4)
-
-
(4)
(915)
(7)
-
-
-
(922)
1 105
(1 478)
(373)
174
(199)
Q2 2009
-
(222)
62
57
(41)
-
18
(231)
(357)
(275)
(275)
(692)
225
-
-
(466)
4
-
7
-
(125)
(114)
12
14
(66)
(40)
90
100
34
-
-
224
(1 029)
(88)
(1 117)
262
(854)
Q3 2009
(16)
(105)
(4)
81
6
(52)
3
(519)
(607)
(222)
(222)
(578)
(141)
286
-
(433)
-
-
34
-
(48)
(14)
(28)
-
(73)
(101)
(112)
(23)
-
-
-
(135)
(1 512)
(992)
(2 504)
280
(2 224)
Q4 2009
16
(18)
-
196
(42)
-
(2)
8
158
(59)
(59)
(659)
(157)
-
231
(585)
-
63
2
472
(47)
490
11
-
(13)
(2)
153
13
-
138
(19)
286
287
(216)
71
(275)
(204)
Year 2009
-
(357)
363
671
(77)
(52)
12
285
846
(487)
(487)
(2 265)
588
286
231
(1 160)
14
63
44
472
(247)
346
(9)
14
(152)
(146)
(784)
83
34
138
(19)
(548)
(1 148)
(2 774)
(3 922)
441
(3 481)

Operating segment information
Underlying EBIT
NOK million
Bauxite & Alumina
Primary Metal
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations
Total
Underlying EBITDA
NOK million
Bauxite & Alumina
Primary Metal
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations
Total
(110)
Q1
2009
(228)
3
(245)
(53)
(204)
447
(213)
(493)
Q1
2009
(222)
472
(212)
79
(32)
471
(203)
352
Q2
2009
(73)
(815)
196
(28)
(26)
281
(153)
(618)
Q2
2009
(17)
(349)
226
100
139
305
(137)
266
Q3
2009
21
(780)
(15)
51
95
217
(382)
(793)
Q3
2009
39
(324)
14
175
246
254
(367)
38
Q4
2009
(117)
(623)
(20)
57
68
295
(311)
(651)
Q4
2009
(83)
(174)
8
179
232
325
(297)
189
Q1
2010
162
(169)
65
223
117
588
(297)
688
Q1
2010
172
252
91
335
252
623
(284)
1 440
Q2
2010
288
382
31
309
201
177
(278)
1 110
Q2
2010
295
817
59
419
337
214
(265)
1 877
Q3
2010
71
318
163
227
102
169
(85)
965
Q3
2010
76
752
189
338
236
201
(72)
1 720
Q4
2010
113
86
62
105
24
482
(284)
588
Q4
2010
118
553
88
226
162
502
(266)
1 383
Q1
2011
155
583
143
232
105
573
(344)
1 448
Q1
2011
340
1 055
168
342
237
600
(328)
2 415
Year
2009
(397)
(2 215)
(83)
26
(67)
1 240
(1 059)
(2 555)
Year
2009
(283)
(375)
36
532
585
1 355
(1 004)
845
Year
2010
633
617
321
864
444
1 416
(945)
3 351
Year
2010
661
2 374
428
1 318
987
1 540
(887)
6 420

Operating segment information
Pro forma underlying EBIT
NOK million
Bauxite & Alumina
Primary Metal
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations
Total
Pro forma underlying EBITDA
NOK million
Bauxite & Alumina
Primary Metal
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations
Total
(111)
Q1
2010
205
(203)
65
223
117
588
(297)
698
Q1
2010
643
320
91
335
252
623
(285)
1 979
Q2
2010
448
481
31
309
201
177
(278)
1 369
Q2
2010
912
1 026
59
419
337
214
(265)
2 702
Q3
2010
348
306
163
227
102
169
(84)
1 231
Q3
2010
813
850
189
338
236
201
(72)
2 555
Q4
2010
223
230
62
105
24
482
(285)
841
Q4
2010
693
808
88
226
162
502
(266)
2 213
Q1
2011
237
592
143
232
105
573
(344)
1 538
Q1
2011
725
1 137
168
342
237
600
(328)
2 881
Year
2010
1 225
816
321
864
444
1 416
(945)
4 141
Year
2010
3 061
3 006
428
1 318
987
1 540
(889)
9 450

Operating segment information
EBIT
NOK million
Bauxite & Alumina*
Primary Metal*
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations*
Total
EBITDA
NOK million
Bauxite & Alumina*
Primary Metal*
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations*
Total
(112)
Q1
2009
(426)
(1 451)
(315)
(379)
(187)
451
709
(1 598)
Q1
2009
(421)
(982)
(283)
(247)
(5)
475
719
(743)
Q2
2009
117
(649)
472
438
87
321
(377)
410
Q2
2009
173
(182)
(361)
1 299
Q3
2009
142
(294)
207
484
108
318
(247)
719
Q3
2009
160
(232)
1 836
Q4
2009
(115)
(783)
39
642
(422)
297
(597)
(938)
Q4
2009
(81)
(334)
(258)
(445)
* Bauxite & Alumina, Primary Metal and Other and eliminations reclassified in 2009 and 2010.
502
566
256
345
162
237
894
260
355
67
764
327
41
Q1
2010
139
(8)
(32)
684
172
605
(574)
Q1
2010
149
413
(6)
796
307
639
(500)
1 798
985
Q2
2010
574
645
59
50
202
176
(549)
1 157
Q2
2010
581
1 081
87
160
338
213
(536)
1 924
Q3
2010
43
(378)
18
261
120
167
42
274
Q3
2010
49
56
44
372
254
200
55
1 029
Q4
2010
91
355
115
219
(68)
489
(433)
768
Q4
2010
97
822
140
340
98
509
(414)
1 592
Q1
2011
4 561
525
151
349
108
566
(405)
5 855
Q1
2011
4 746
997
176
459
240
593
(389)
6 822
Year
2009
(282)
(3 177)
403
1 186
(413)
1 386
(511)
(1 407)
Year
2009
(168)
(1 336)
523
1 977
253
1 501
(318)
2 432
Year
2010
847
615
160
1 214
426
1 438
(1 514)
3 184
Year
2010
875
2 372
266
1 668
997
1 561
(1 395)
6 343

Operating segment information
Pro forma reported EBIT
NOK million
Bauxite & Alumina
Primary Metal
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations
Total
Pro forma reported EBITDA
NOK million
Bauxite & Alumina
Primary Metal
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations
Total
(113)
Q1
2010
(41)
(574)
1 018
Q1
2010
643
482
(6)
796
307
639
(500)
2 361
205
(32)
684
172
605
Q2
2010
768
723
59
50
202
176
(549)
1 429
Q2
2010
1 232
1 268
87
160
338
213
(536)
2 762
Q3
2010
47
(368)
Q3
2010
512
176
44
372
254
200
55
1 613
18
261
120
167
42
289
Q4
2010
140
499
115
219
(68)
489
(433)
960
Q4
2010
610
1 077
140
340
98
509
(414)
2 360
Q1
2011
213
622
151
349
108
566
(405)
1 604
Q1
2011
701
1 167
176
459
240
593
(389)
2 947
Year
2010
1 161
813
160
1 214
426
1 438
(1 514)
3 696
Year
2010
2 997
3 003
266
1 668
997
1 561
(1 395)
9 095

Operating segment information
Total revenue
NOK million
Bauxite & Alumina*
Primary Metal*
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations*
Total
External revenue
NOK million
Bauxite & Alumina*
Primary Metal*
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations*
Total
(114)
Q1
2009
1 526
5 700
7 945
4 443
5 070
1 515
( 9 630)
16 569
Q1
2009
483
355
5 329
4 629
5 107
499
165
16 569
Q2
2009
1 495
5 699
8 921
4 449
5 119
1 330
(9 397)
17 617
Q2
2009
750
6 730
4 232
5 055
17 617
Q3
2009
1 525
5 938
8 851
4 610
4 967
1 079
(10 174)
16 795
Q3
2009
551
5 953
4 317
4 922
16 795
Q4
2009
1 588
5 640
8 480
4 909
4 909
1 362
(10 461)
16 427
Q4
2009
720
5 638
4 308
4 821
16 427
* Bauxite & Alumina, Primary Metal and Other and eliminations reclassified in 2009 and 2010.
334
361
155
559
354
140
380
467
94
Q1
2010
1 631
6 607
9 950
5 222
4 540
1 985
(11 790)
18 145
Q1
2010
628
397
6 536
4 893
4 523
1 043
124
18 145
Q2
2010
2 426
7 448
11 419
5 019
5 097
1 838
(13 468)
19 779
Q2
2010
1 186
456
7 040
5 206
5 066
697
128
19 779
Q3
2010
1 735
6 558
10 498
5 447
4 901
1 255
(11 971)
18 424
Q3
2010
659
392
6 511
5 237
4 831
683
112
18 424
Q4
2010
2 090
6 979
11 134
5 492
4 867
1 976
(13 131)
19 406
Q4
2010
891
358
7 003
5 275
4 804
1 025
50
19 406
Q1
2011
2 183
8 234
12 005
5 703
5 102
2 080
(14 168)
21 138
Q1
2011
1 014
651
7 520
5 585
5 068
1 226
73
21 138
Year
2009
6 134
22 976
34 197
18 411
20 065
5 286
(39 661)
67 409
Year
2009
2 504
1 628
23 650
17 486
19 906
1 682
554
67 409
Year
2010
7 882
27 592
43 001
21 180
19 405
7 055
(50 360)
75 754
Year
2010
3 364
1 603
27 090
20 611
19 225
3 448
414
75 754

Operating segment information
Internal revenue
NOK million
Bauxite & Alumina*
Primary Metal*
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations*
Total
(115)
Q1
2009
1 042
5 344
2 616
(186)
(37)
1 016
(9 795)
-
Q2
2009
746
5 365
2 191
(9 552)
Q3
2009
974
(10 313)
Q4
2009
869
(10 555)
Q1
2010
1 003
(11 915)
1 241
(13 596)
Share of profit /(loss) in equity accounted investments
NOK million
Bauxite & Alumina*
Primary Metal*
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations*
Total
Q1
2009
(266)
(109)
(1)
(33)
4
8
(16)
(413)
217
64
969
-
Q2
2009
121
(120)
5 379
2 898
293
44
725
-
Q3
2009
128
(102)
5 260
2 843
601
88
895
-
Q4
2009
12
(151)
(191)
(341)
* Bauxite & Alumina, Primary Metal and Other and eliminations reclassified in 2009 and 2010.
(1)
(19)
3
(3)
(22)
(42)
(6)
(12)
2
(1)
(23)
(14)
(7)
(27)
3
20
6 210
3 414
329
17
942
-
Q1
2010
15
(159)
(4)
(17)
5
14
(91)
(236)
Q2
2010
6 992
4 379
(187)
31
1 141
-
Q2
2010
94
(112)
-
(13)
2
1
(54)
(83)
Q3
2010
1 076
6 166
3 988
210
70
573
(12 082)
-
Q3
2010
46
(335)
(1)
(10)
2
4
(9)
(303)
Q4
2010
1 199
6 620
4 131
217
63
951
(13 181)
-
Q4
2010
22
33
1
(23)
4
9
(29)
17
Q1
2011
1 168
7 582
4 485
118
34
855
(14 241)
-
Q1
2011
13
(6)
-
(22)
4
7
(15)
(19)
Year
2009
3 631
21 348
10 548
925
159
3 605
(40 215)
-
Year
2009
(5)
(482)
(14)
(91)
12
24
(253)
(809)
Year
2010
4 518
25 988
15 911
569
180
3 607
(50 774)
-
Year
2010
177
(574)
(4)
(64)
13
29
(182)
(606)

Operating segment information
Depreciation, amortization and impairment
NOK million
Bauxite & Alumina*
Primary Metal*
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations*
Total
* Bauxite & Alumina, Primary Metal and Other and eliminations reclassified in 2009 and 2010.
(116)
Q1
2009
-
463
32
116
182
23
10
827
Q2
2009
-
805
Q3
2009
-
1 077
Capital employed – upstream focus
NOK million
Bauxite & Alumina
Primary Metal
Metal Markets
Rolled Products
Extruded Products
Energy
Other and eliminations
Total
461
30
112
169
23
11
451
29
395
151
35
15
Q4
2009
-
444
27
107
164
29
15
786
Mar 31, 2011
35 503
39 242
2 674
8 903
6 022
3 345
(5 719)
89 971
Graph excludes NOK 5.7 billion in negative capital employed in Other and eliminations
Q1
2010
-
416
26
98
135
33
13
721
Q2
2010
1
430
28
96
136
35
13
740
Rolled Products
9%
Metal Markets
3%
Q3
2010
1
428
26
97
133
31
13
730
Extruded
Products
6%
Q4
2010
1
462
26
107
166
18
14
794
Energy
4%
Primary Metal
41%
Q1
2011
178
467
25
96
132
26
16
940
Bauxite &
Alumina
37%
Year
2009
1
1 819
118
730
666
109
50
3 494
Year
2010
2
1 737
106
398
571
118
52
2 985

Income statements
NOK million
Revenue
Share of the profit (loss) in equity accounted investments
Other income, net
Total revenue and income
Depreciation, amortization and impairment
Other expenses
Earnings before financial items and tax (EBIT)
Financial income (expense), net
Income (loss) before tax
Income taxes
Tax rate
Net income (loss)
Net income (loss) attributable to minority interest
Net income (loss) attributable to Hydro shareholders
Earnings per share attributable to Hydro shareholders
NOK million
Reported EBIT
Underlying EBIT
Net income (loss)
Underlying net income (loss)
Earnings per share
Underlying earnings per share
(117)
Q1
2009
(1 598)
(493)
(280)
(480)
(0.27)
(0.43)
Q2
2009
410
(618)
282
(572)
0.17
(0.51)
Q3
2009
719
(793)
1 001
(1 222)
0.79
(0.96)
Q4
2009
(938)
(651)
(587)
(791)
(0.45)
(0.61)
Q1
2010
Q1
2011
21 138
(19)
4 553
25 672
940
18 877
985
688
924
401
0.68
0.27
5 855
(93)
5 762
(608)
11%
5 154
112
5 043
2.89
Q2
2010
1 157
1 110
598
530
0.40
0.34
Q4
2010
19 406
17
112
19 535
794
17 973
Q3
2010
(0.07)
768
292
1 060
(401)
38%
274
965
(63)
545
0.33
658
38
620
0.39
Q4
2010
768
588
658
376
0.39
0.21
Q1
2010
18 145
(236)
183
18 091
721
16 385
985
545
1 530
(605)
40%
924
55
869
0.68
Q1
2011
5 855
1 448
5 154
1 244
2.89
0.65
Year
2009
(1 407)
(2 555)
416
(3 066)
0.24
(2.50)
Year
2010
75 754
(606)
568
75 717
2 985
69 548
3 184
522
3 706
(1 588)
43%
2 118
230
1 888
1.33
Year
2010
3 184
3 351
2 118
1 852
1.33
1.14

Balance sheets
NOK million
Cash and cash equivalents
Short-term investments
Receivables and other current assets
Inventories
Property, plant and equipment
Other non-current assets
Total assets
Bank-loans and other interest-bearing short-term debt
Other current liabilities
Long-term debt
Other long-term liabilities
Deferred tax liabilities
Equity attributable to Hydro shareholders
Minority interest
Total liabilities and equity
(118)
March 31;
2011
3 698
1 319
20 440
13 827
69 042
26 732
135 060
2 482
17 058
4 539
16 321
6 692
79 719
8 250
135 060
December 30,
2010
10 929
1 321
13 597
10 971
24 849
27 122
88 788
940
14 970
328
13 925
1 183
56 418
1 025
88 788
September 30,
2010
8 658
1 316
15 939
10 431
24 842
26 036
87 222
974
14 077
123
14 280
804
55 973
991
87 222
June 30,
2010
2 192
1 311
17 338
10 273
25 758
26 566
83 439
1 480
14 909
2 142
14 429
803
48 624
1 053
83 439
March 31,
2010
2 502
1 554
15 576
9 678
25 499
25 109
79 919
972
13 551
2 574
14 430
816
46 458
1 118
79 919

Operational data
Pro forma Bauxite & Alumina
Alumina production (kmt) 1)
Sourced alumina (kmt)
Total alumina sales (kmt) 2)
Realized alumina price (USD) 3)
Apparent alumina cash cost (USD) 4)
Bauxite production (kmt) 5)
Sourced bauxite (kmt) 6)
Bauxite sales (kmt) 7)
Bauxite & Alumina
Alumina production (1 000 mt)
(119)
Q1
2009
578
Q2
2009
494
Q3
2009
514
Q4
2009
1) Including Alunorte on a 100 percent basis.
2) Including own production and third party contracts.
3) Weighted average of own production and third party contracts.
4) Apparent integrated alumina cash production cost based on cost of produced alumina and cost of alumina sourced on contracts. Paragominas bauxite included at cost and MRN bauxite included at contract price.
5) Paragominas on wet basis(100 percent).
6) 40 percent MRN offtake from Vale and 5 percent Hydro share on wet basis.
7) Dry basis.
504
Q1
2010
1 394
539
1 843
293
231
1 745
1 544
Q1
2010
474
Q2
2010
1 521
557
2 056
299
223
1 845
2 081
Q2
2010
518
Q3
2010
1 442
488
2 023
277
247
1 918
2 064
Q3
2010
491
Q4
2010
1 448
556
2 018
311
251
2 017
2 143
Q4
2010
493
Q1
2011
1 336
453
1 762
329
266
1 720
1 711
Q1
2011
773
Year
2009
2 091
Year
2010
5 805
2 141
7 941
295
238
7 524
7 832
885
Year
2010
1 976

Operational data
Pro forma Primary Metal
Realized aluminium price LME, USD/mt
Realized aluminium price LME, NOK/mt
Realized premium above LME, USD/mt
Realized premium above LME, NOK/mt
Realized NOK/USD exchange rate
Primary aluminium production, kmt
Casthouse production, kmt
Casthouse sales, kmt
Primary Metal
Realized premium above LME (USD/mt) 1)
Realized premium above LME (NOK/mt) 1)
Primary aluminium production (1 000 mt)
Casthouse production (1 000 mt)
Casthouse sales (1 000 mt)
LME realized (USD/mt) including hedges
NOK/USD realized including hedges 2)
LME realized (NOK/mt) including hedges
LME realized (USD/mt) excluding hedges
NOK/USD realized excluding hedges 2)
LME realized (NOK/mt) excluding hedges
(120)
Q1
2009
230
1 545
397
433
440
1 996
6.71
13 393
1 996
6.71
13 393
Q2
2009
230
1 505
338
411
461
1 468
6.54
9 598
1 457
6.54
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).
Q3
2009
260
1 618
330
466
476
1 523
6.22
9 480
1 511
6.22
9 405
Q4
2009
272
1 576
332
473
450
1 804
5.80
10 452
1 797
5.80
10 411
Q1
2010
2 039
11 826
255
1 474
5.80
447
591
601
Q1
2010
294
1 699
339
484
495
1 997
5.78
11 542
1 986
5.78
11 483
Q2
2010
2 200
13 192
266
1 605
5.85
475
625
631
Q2
2010
307
1 856
362
512
521
2 200
6.05
13 302
2 194
6.05
13 265
Q3
2010
2 137
13 226
287
1 781
6.19
469
627
596
Q3
2010
329
2 041
355
513
499
2 179
6.20
13 503
2 171
6.20
13 453
Q4
2010
2 131
12 739
284
1 705
5.98
475
627
624
Q4
2010
340
2 040
360
512
494
2 074
6.00
12 436
2 065
6.00
12 381
Q1
2011
2 366
13 664
347
2 004
5.77
490
634
627
Q1
2011
376
2 169
415
560
568
2 358
5.77
13 607
2 351
5.77
13 568
Year
2009
246
1 559
1 396
1 782
1 822
1 698
6.34
10 764
1 691
6.34
10 717
Year
2010
2 128
12 758
273
1 641
5.96
1 867
2 470
2 453
Year
2010
317
1 906
1 415
2 022
2008
2 113
6.00
12 674
2 104
6.00
12 623

Operational data
Metal Markets
Remelt production (1 000 mt) 1)
Metal products sales, own production (1 000 mt)
Third-party metal products sales (1 000 mt)
Total metal products sales excl. ingot trading (1 000 mt)
Hereof external sales excl. ingot trading (1 000 mt)
External revenue (NOK million)
Rolled Products
Rolled Products external shipments (1 000 mt)
Rolled Products – Underlying EBIT per tonne, NOK
Extruded Products
Extruded external shipments (1 000 mt) 2)
Extruded – underlying EBIT per tonne, NOK
Energy
Power production, GWh
Net spot sales, GWh
Nordic spot electricity price, NOK/MWh
Southern Norway spot electricity price (NO2) 3) , NOK/MWh
(121)
Q1
2009
89
550
24
575
323
5 329
Q1
2009
191
(279)
Q1
2009
113
(1 805)
Q1
2009
2 477
838
344.0
341.0
Q2
2009
6 730
Q2
2009
187
(152)
Q2
2009
120
(217)
Q2
2009
1 809
301.0
297.0
1) Production in Metal Markets' soft alloy remelt casthouses. Hannover casthouse production excluded from Q1 2011 (2010 production volumes are restated).
2) Including Structures until divested end 2009
3) Southern Norway spot price NO2 for 2010 and 2011 figures and NO1 for 2009 figures due to the establishment of new price areas
111
594
20
614
375
413
Q3
2009
123
608
10
618
395
5 953
Q3
2009
205
248
Q3
2009
128
742
Q3
2009
1 682
480
274.0
249.0
Q4
2009
133
596
9
605
375
5 638
Q4
2009
211
270
Q4
2009
126
540
Q4
2009
1 929
486
307.0
296.0
Q1
2010
143
651
19
670
414
6 536
Q1
2010
231
966
Q1
2010
128
914
Q1
2010
2 781
1 323
485.0
430.0
Q2
2010
156
702
31
733
457
7 040
Q2
2010
242
1 275
Q2
2010
141
1 430
Q2
2010
1 621
144
355.0
368.0
Q3
2010
141
656
38
695
429
6 511
Q3
2010
239
952
Q3
2010
134
764
Q3
2010
1 479
86
365.0
363.0
Q4
2010
147
657
32
688
417
7 003
Q4
2010
234
450
Q4
2010
127
188
Q4
2010
2 263
827
498.0
469.0
Q1
2011
150
734
38
772
467
7 520
Q1
2011
245
946
Q1
2011
136
772
Q1
2011
2 308
955
518.0
520.0
Year
2009
455
2 351
63
2 414
1 468
23 650
Year
2009
794
33
Year
2009
487
(138)
Year
2009
7 897
2 217
306.0
295.0
Year
2010
586
2 666
121
2 787
1 717
27 090
Year
2010
945
914
Year
2010
529
839
Year
2010
8 144
2 380
426.0
407.0

Investor Relations in Hydro
Next investor event: Q2 results, July 26, 2011
For more information see: www.hydro.com/ir
(122)
Stefan Solberg
Stian Hasle
Irène A. Kristiansen
Head of Investor Relations
Investor Relations Officer
Investor Relations Assistant
t: +47 22 53 80 99
m: +47 917 27 528
e: stefan.solberg@hydro.com
t: +47 977 36 022
e: stian.hasle@hydro.com
t: +47 414 02 174
e: irene.alyanakian.kristiansen@hydro.com

www.hydro.com