Result down on lower aluminium prices and power production

Transcription

1 Result down on lower aluminium prices and power production Second quarter presentation (1)

2 Cautionary note Certain statements included within this announcement contain forward-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 costs, capacities or rates, startup costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro s markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by expected, scheduled, targeted, planned, proposed, intended or similar statements. Although we believe that the expectations reflected in such forward-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. 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. (2)

3 Svein Richard Brandtzæg President and CEO (3)

4 Q2 highlights Underlying EBIT NOK 518 million Lower alumina and aluminium prices Lower result in Energy, mainly from seasonally lower production Production in Bauxite & Alumina affected by power outages Increased volumes lift result in Rolled Products (4)

5 Solid aluminium demand growth, despite challenging global macroeconomy Europe United States China Macro Continued weak markets High unemployment rates Improving PMI-levels Modest 2013 growth expected Business and consumer sentiment resilient to federal budget cuts Improving housing market data Growth slowing down from high levels Economic rebalancing, as consumption emerges as growth driver Aluminium Overall stable demand expected for 2013, with regional differences Continued robust demand in transport sector Signs of building and construction market contributing to demand growth in 2013 Semis demand up 8 % in 2012 Slightly higher growth expected in 2013, driven by construction and transport, as well as consumer durables (5)

6 Increased demand in seasonally stronger quarter World outside China (quarterly annualized) mt aluminium demand growth expected at 2-4 % in world outside China New and potential curtailments announced Expect balanced market in Jan-08Jul-08Jan-09Jul-09Jan-10Jul-10Jan-11Jul-11Jan-12Jul-12Jan-13 Demand Production Source: CRU/Hydro (6)

7 Aluminium prices reach lowest levels since 2009 USD per tonne Aluminium prices trading in range of USD per mt during Q % decrease, quarter-on-quarter, in average USD prices LME decrease partly offset by weaker NOK and BRL vs. USD Primary aluminium LME USD/mt NOK/mt Q average Q end average 2013 end LME (3-month avg.) LME forward July 11, 2013 Source: Reuters Ecowin (7)

8 Ingot premiums stable at historically high levels Regional ingot premiums USD per mt Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 US Mid West Japan Europe (duty-paid) Source: Metal Bulletin, MW/MJP: Platts (8)

9 Inventories remain at high levels World reported primary aluminium inventories mt Days Total inventories stable Due to balanced global primary metal market in first half Reported inventories increased, offset by apparent decrease in unreported inventories IAI Other LME SHFE Global inventory days Source: CRU/Hydro (9)

10 Alumina price strengthening relative to LME Platts alumina index (PAX) * USD per mt Percent Average Platts alumina index (PAX) declined during second quarter Down to USD 326 per mt from USD 340 per mt in 2013 PAX decreased less than LME, increasing alumina price compared to LME to 18% Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Feb Alumina price % of LME (10)

11 China bauxite imports at all-time-high Annualized aluminium equivalents*, million mt China import ** Bauxite and alumina Increased bauxite imports, preparing for Indonesia export restrictions Declining alumina imports Primary aluminium No significant import or export expected in 2013 China export 0 ( 5) ( 10) Semis and fabricated Seasonally stronger exports of semis and fabricated products Bauxite Alumina Scrap Primary aluminium Source: CRU/Antaike/Hydro * Bauxite/alumina to aluminium conversion factor: 5.0/1.925 **April and May annualized, except for Alumina where June data is included. Fabricated Semis (11)

12 Declining raw material prices, still high relative to LME Indexed ( 2010=100) 3-month LME Caustic price Coal price Fuel oil price * Pet coke price +127% +120% +112% +87% +87% +84% +67% +50% +44% +44% +15% +30% +18% +17% +10% +9% +4% +1% -7% -15% Q Q Q Q Q2 13 Source: EcoWin (LME), CMAI/Harriman (Caustic soda), Platts Bolivar Index (Coal), ANP (Fuel oil) * ICMS effect not included in graph for 2012 (12)

13 Top priority: stabilizing and lifting Alunorte production Sequential power outages disrupt alumina production, driven by external factors Resulting in reduced production levels in Paragominas Mitigating actions Strengthening existing and installing additional backup power systems Increased maintenance efforts to improve production stability Ambition to deliver NOK 1 billion in From B to A improvement program unchanged Production challenges impact speed Production disruptions expected to weigh on Q3 results (13)

14 Strong Qatalum performance Continued strong production performance Consistently above nameplate capacity Cash cost position improved Reduced fixed cost level Further improvement efforts being executed Supported by higher premiums Attractive geographic position verified Sales to US, Asia, Turkey and GCC 99% value-added casthouse products (14)

15 Primary Metal delivers on improvement efforts Estimated primary aluminium cash cost and margin USD/mt 1) USD 300 program to be concluded according to plan by end-2013 Improvement efforts in joint ventures contributing to improved cost level Decreasing cash cost Improved casthouse margins Increased contribution from Qatalum H 2013 Estimated cash cost excluding LME-linked alumina cost 2) Estimated LME-linked alumina cost 2) Estimated EBITDA margin Slovalco signed Letter of Intent for long-term power supply beyond ) Realized aluminium price minus EBITDA margin per mt primary aluminium. Includes net earnings from primary casthouses, Qatalum included from ) ~ % of LME 3 month price with 2.5 months delay (15)

16 Foil and Can lift Rolled Products shipments Rolled Products sales by segment Q vs 2013 Rolled Products total sales Foil & Can Litho & Auto General engineering & Other 13% Q vs 2013 Q vs Q YTD 2013 vs YTD % 6% 4% 1% -3% (16)

17 High precipitation lifts reservoirs, energy prices decline Market price Southwestern Norway (NO2) NOK/MWh Week Water reservoir levels Southwestern Norway (NO2) Percent year average Week Energy price NOK/MWh Q Southwestern Norway (NO2) Reservoir levels (%Points) above/-below 10 year average June 30, 2013 Mar 31, 2013 Southwestern Norway (NO2) System Norway 1.2 (3.9) Source: Nordpool and NVE (17)

18 Acquisition of high-purity asset and hydropower plant Integrated high-purity metal and power production Hydro is the sole offtaker of metal from the metal refinery Transaction closed 9 July Vigeland Metal Refinery Annual capacity of tonnes of high-purity aluminium Vigelands Brug 180 GWh hydropower station (18)

19 Eivind Kallevik Executive Vice President and CFO (19)

20 Underlying EBIT NOK million 2011 Q Q Q Q Q Q Q Bauxite & Alumina Primary Metal Metal Markets Rolled Products Energy Other and eliminations (344) (65) (73) (39) (144) (108) (188) (136) (386) (4) (35) (73) (275) (63) (38) (244) (70) Total 1) 2) ) Extruded Products classified as discontinued operations and excluded from underlying EBIT for all periods. 2) Figures for 2012 are adjusted reflecting IAS 19R. (20)

21 High-level quarterly result development NOK billion Underlying EBIT 2013 Energy volume and price Alumina and aluminium price Other Underlying EBIT Q (21)

22 Key financials NOK million Q Q First Half 2013 First Half 2012 Revenue Underlying EBIT Items excluded from underlying EBIT Reported EBIT (610) Financial income (expense) Income (loss) before tax (1 367) (992) (171) 535 (1 033) (1 643) (1 537) (457) (658) (558) Income tax es 279 (281) (6) (2) (504) Income (loss) from continuing operations Income (loss) from discontinued operations (713) (1 649) (88) (460) 57 (1 062) (99) Net income (loss) (665) 263 (1 737) (402) (1 162) Underlying net income (loss) Reported EPS, NOK (0.31) 0.14 (0.80) (0.17) (0.56) Underlying EPS, NOK (22)

23 Financial income (expense) Finance NOK million Q Interest income Dividends received and net gain (loss) on securities Financial income Interest expense (103) (93) Net foreign exchange gain (loss) (1 291) (115) Net interest on pension liability (41) (32) Other (28) (32) Financial expense (1 462) (272) Net financials (1 367) (171) The net currency loss for the second quarter related to external US dollar debt and inter-company balances denominated in US dollar and Euro (23)

24 Items excluded from underlying EBIT NOK million Q Q First half 2013 First half 2012 Underlying EBIT Unrealized effects on power and raw material contracts 155 (269) 335 (114) 588 Unrealized derivative effects on LME related contracts (129) (30) (13) (159) 30 Metal effect, Rolled Products (100) 5 9 (95) (51) Rationalization charges and closure costs (86) (78) (322) (164) (434) Impairment charges - - (1 155) - (1 184) Gains (losses) on divestments Reported EBIT (610) (24)

25 Bauxite & Alumina Key figures Q Q 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 (244) (63) (188) Underlying EBIT NOK million (791) (308) Q2 results Decreased realized alumina price Lower Paragominas production due to production disruptions at Alunorte caused by externally induced power outages Lower energy costs Outlook Stable production volumes (144) (188) (386) (73) (63) (244) Increased cost of sourced alumina Alumina priced with approximately one-month lag to LME (25)

26 Primary Metal Key figures Q Q 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 Q2 results Price and volume lowered result by approximately NOK 80 million Raw material costs increased, partly driven by currency Lower fixed costs (4) Outlook About 50 % of primary production affecting Q3 results priced at ~USD per mt, excluding Qatalum Expecting stable sales volumes (26)

27 Lower result for Qatalum, mainly due to lower prices Key figures Qatalum (50%) Q Q Revenue, NOK million Underlying EBITDA, NOK million Underlying EBIT, NOK million Underlying net income (loss), NOK million High and stable production volumes Underlying net income down NOK 21 million from 2013 Lower sales price, somewhat offset by higher premiums Improved underlying cash cost Primary aluminium production, kmt Casthouse sales, kmt All numbers on 50% basis. (27)

28 Metal Markets Key figures Q Q Remelt production, kmt 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 Q2 results Stable remelt volumes and higher margins Reduced contribution from sourcing and trading activities Stable currency and ingot valuation effects Outlook Seasonally lower remelt volumes Volatile trading and currency effects (28)

29 Rolled Products Key figures Q Q External sales volumes, kmt Underlying EBITDA, NOK million Underlying EBIT, NOK million Underlying EBIT NOK million Q2 results Seasonally higher shipments Somewhat lower margins, partly driven by product mix Operating costs per tonne decreased Outlook Margins remain under pressure Seasonally lower volumes (29)

30 Energy Key figures Q Q 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 Q2 results Results down on seasonally lower production and prices Spot prices almost halved from start to end of the second quarter, due to precipitation levels 60 % higher than normal Outlook Expect increased production on improved hydrological balance Volume and price uncertainty (30)

31 Discontinued operations Extruded Products Underlying income from discontinued operations NOK 112 million Pro-forma underlying EBIT NOK 50 million 1) Higher volumes compared to 2013, although below Q levels Weak European extrusion markets Stand-alone financing secured for new company Conditional on closing of transaction 5-year revolving multi-currency credit facility EUR 700 million 1) Pro-forma underlying EBIT includes full depreciation charges as if Extruded Products would have been continuing operations (31)

32 Net cash/(debt) development Q NOK billion Net cash flow from operations NOK 1.0 billion 0.5 (1.0) 1.6 (0.5) (1.7) 0.4 (1.3) (0.5) Net cash 2013 Underlying EBITDA Operating capital Other adjustments Investments Dividends Other Net debt Q (32)

33 Net USD/BRL exposure partly hedged Share of Alunorte and Albras USD/BRL currency exposure hedged for second half 2013 and in 2014 Securing cost position Mitigates risk of stronger BRL vs USD Creates stability and ensures focus on improving operational performance Hedged amount ~800MUSD Forward sale of USD 2013: ~200 MUSD / USD/BRL ~ : ~600 MUSD / USD/BRL ~2.37 Hedge accounting applied USD/BRL USD/BRL (spot) USD/BRL Forward sale 2013 USD/BRL Forward sale 2014 Source: Ecowin (33)

34 Stabilize and increase Alunorte production Deliver on improvement efforts Continued tight capital discipline Macroeconomic uncertainty, regional differences Balanced primary market (34)

35 Additional information (35)

36 Items excluded from underlying results NOK million (+=loss/()=gain) 2013 Q Unrealized derivative effects on LME related contracts Bauxite & Alumina 13 (3) Total impact Bauxite & Alumina 13 (3) Unrealized derivative effects on LME related contracts Primary Metal Unrealized derivative effects on power contracts (Søral) Primary Metal Unrealized derivative effects on power contracts Primary Metal 251 (42) Unrealized derivative effects on raw material contracts Primary Metal 6 8 Rationalization charges and closure costs Primary Metal - 7 Total impact Primary Metal Unrealized derivative effects on LME related contracts Metal Markets (82) 26 Total impact Metal Markets (82) 26 Unrealized derivative effects on LME related contracts Rolled Products Metal effect Rolled Products (5) 100 Rationalization charges and closure costs Rolled Products - 45 Total impact Rolled Products Unrealized derivative effects on power contracts Energy 4 (3) Total impact Energy 4 (3) Unrealized derivative effects on power contracts Other and eliminations (9) (205) Unrealized derivative effects on LME related contracts Other and eliminations (19) (6) (Gains)/Losses on divestments Other and eliminations - (16) Rationalization charges and closure costs Other and eliminations Total impact Other and eliminations 51 (193) Total EBIT Hydro Net foreign exchange (gain)/loss Hydro Income (loss) before tax Hydro Calculated income tax effect Hydro (141) (406) Items excluded from discontinued operations Hydro Net income (loss) Hydro (36)

37 Items excluded from underlying results NOK million (+=loss/()=gain) 2012 Q Q Q Unrealized derivative effects on LME related contracts Bauxite & Alumina (8) 11 1 (11) (8) Total impact Bauxite & Alumina (8) 11 1 (11) (8) Unrealized derivative effects on LME related contracts Primary Metal 113 (84) 220 (151) 98 Unrealized derivative effects on power contracts (Søral) Primary Metal 11 3 (1) 2 15 Unrealized derivative effects on power contracts Primary Metal (152) 72 (221) 61 (240) Unrealized derivative effects on raw material contracts Primary Metal Impairment charges Primary Metal (110) Impairment charges Qatalum Primary Metal Rationalization charges and closure costs Primary Metal Total impact Primary Metal (54) Unrealized derivative effects on LME related contracts Metal Markets (68) (126) 11 Impairment charges Metal Markets (Gains)/losses on divestments Metal Markets (15) (15) Total impact Metal Markets (68) (141) 73 Unrealized derivative effects on LME related contracts Rolled Products (78) 52 (179) (27) (232) Metal effect Rolled Products 60 (9) 53 (41) 64 Rationalization charges and closure costs Rolled Products Total impact Rolled Products (18) 43 (126) (51) (151) Unrealized derivative effects on power contracts Energy (1) 11 Total impact Energy (1) 11 Unrealized derivative effects on power contracts Other and eliminations (126) (424) 24 (239) (764) Unrealized derivative effects on LME related contracts Other and eliminations (1) 6 48 (32) 22 Impairment charges Other and eliminations (Gains)/losses on divestments Other and eliminations (40) (4) 6 (4) (42) Pension Other and eliminations - - (68) - (68) Total impact Other and eliminations (166) (422) 74 (274) (788) Total EBIT Hydro (132) (532) 725 Net foreign exchange (gain)/loss Hydro (419) 880 (282) Income (loss) before tax Hydro (551) (34) (430) Calculated income tax effect Hydro 199 (164) Items excluded from discontinued operations Hydro Net income (loss) Hydro (345) (112) (37)

38 Operating segment information Underlying EBIT NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Bauxite & Alumina (144) (188) (386) (73) (63) (244) 969 (791) Primary Metal (4) Metal Markets (39) Rolled Products Energy Other and eliminations (344) (65) (73) 92 (108) (136) (35) (275) (38) (70) (389) (553) Total Underlying EBITDA NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Bauxite & Alumina Primary Metal Metal Markets (13) Rolled Products Energy Other and eliminations (328) (62) (57) 106 (92) (120) 19 (258) (24) (55) (341) (452) Total and Year 2011 are pro forma numbers after Vale transaction, for Bauxite & Alumina and Primary Metal 2012 are adjusted to reflect IAS19R (38)

39 Operating segment information EBIT NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Bauxite & Alumina (136) (199) (387) (62) (76) (241) (783) Primary Metal (760) (91) (1 227) (48) (1 254) Metal Markets (187) (246) Rolled Products 349 (12) (223) (49) (21) Energy Other and eliminations (405) (25) (108) (1) (89) 122 (116) 235 Total (610) (232) EBITDA NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Bauxite & Alumina Primary Metal Metal Markets (161) (145) Rolled Products (113) Energy Other and eliminations (389) (55) 16 (74) Total and Year 2011 are pro forma numbers after Vale transaction, for Bauxite & Alumina and Primary Metal 2012 are adjusted to reflect IAS19R (39)

40 Operating segment information Total revenue NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Bauxite & Alumina Primary Metal Metal Markets Rolled Products Energy Other and eliminations (14 135) (14 964) (13 728) (11 279) (11 668) (10 997) (9 653) (8 157) (9 770) (9 322) (54 106) (40 476) Total External revenue NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Bauxite & Alumina Primary Metal Metal Markets Rolled Products Energy Other and eliminations Total (40)

41 Operating segment information Internal revenue NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Bauxite & Alumina Primary Metal Metal Markets Rolled Products 118 (34) (189) (97) (17) (80) (95) 80 Energy Other and eliminations (14 208) (15 040) (13 791) (11 331) (11 712) (11 049) (9 677) (8 225) (9 797) (9 345) (54 369) (40 663) Total Share of profit /(loss) in equity accounted investments NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Bauxite & Alumina 13 (3) (5) Primary Metal (6) (7) 43 (17) (105) (5) (137) (73) 35 (70) ) Metal Markets - 1 (1) 1 - (1) Rolled Products (22) (14) (22) (19) (14) (16) (16) (21) (14) (19) (76) (67) Energy (2) Other and eliminations (15) (74) (14) (132) 2 2 (63) (2) - (1) (235) (61) Total (23) (92) 5 (166) (117) (20) (218) (95) 19 (90) (276) (450) (41)

42 Operating segment information Depreciation, amortization and impairment NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Bauxite & Alumina Primary Metal Metal Markets Rolled Products Energy Other and eliminations Total Capital employed upstream focus Extruded Products, 7% Energy, 4% NOK million Jun 30, 2013 Bauxite & Alumina Primary Metal Metal Markets Rolled Products Extruded Products (discontinued operations) Energy Other and eliminations (5 950) Total Graph excludes NOK 6.0 billion in negative capital employed in Other and eliminations Rolled Products, 10% Metal Markets, 3% Primary Metal, 33% Bauxite & Alumina, 42% (42)

43 Income statements NOK million Q Q First half 2013 First half 2012 Year 2012 Revenue Share of the profit (loss) in equity accounted investments Other income, net (90) (20) (70) (137) (450) 853 Total revenue and income Raw material and energy expense Employee benefit expense Depreciation, amortization and impairment Other expenses Earnings before financial items and tax (EBIT) (610) Financial income Financial expense 96 (1 462) 102 (272) 50 (1 083) 198 (1 735) 173 (831) 418 (1 047) Income (loss) from continuing operations before tax Income taxes Tax rate (992) % 535 (281) 53% (1 643) (6) N/A (457) (2) N/A (558) (504) N/A (58) (759) N/A Income (loss) from continuing operations Income (loss) from discontinued operations (713) (1 649) (88) (460) 57 (1 062) (99) (817) (514) Net income (loss) (665) 263 (1 737) (402) (1 162) (1 331) Net income (loss) attributable to minority interest Net income (loss) attributable to Hydro shareholders (28) (637) (24) 287 (113) (1 624) (53) (349) (28) (1 134) (13) (1 318) Earnings per share attributable to Hydro shareholders (0.31) 0.14 (0.80) (0.17) (0.56) (0.65) NOK million 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Net income (loss) (749) 575 (1 737) (256) (665) (1 331) Underlying net income (loss) (44) (24) Earnings per share (0.36) 0.24 (0.80) (0.15) (0.31) 3.41 (0.65) Underlying earnings per share (0.01) (0.01) are adjusted to reflect IAS19R (43)

44 Balance sheets NOK million Jun Mar Dec Sep Jun Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets Assets held for sale Property, plant and equipment Intangible assets Investments accounted for using the equity method Prepaid pension Other non-current assets Total assets Bank-loans and other interest-bearing short-term debt Trade and other payables Other current liabilities Liabilities included in disposal group Long-term debt Provisions Pension obligation Deferred tax liabilities Other non-current long-term liabilities Equity attributable to Hydro shareholders Minority interest Total liabilities and equity (44)

45 Operational data Pro forma Bauxite & Alumina 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Alumina production (kmt) Sourced alumina (kmt) Total alumina sales (kmt) Realized alumina price (USD) 1) Apparent alumina cash cost (USD) 2) Bauxite production (kmt) 3) Sourced bauxite (kmt) 4) Pro forma Primary Metal 5) 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Realized aluminium price LME, USD/mt Realized aluminium price LME, NOK/mt Realized premium above LME, USD/mt 6) Realized premium above LME, NOK/mt 6) Realized NOK/USD exchange rate Primary aluminium production, kmt Casthouse production, kmt Casthouse sales, kmt ) Weighted average of own production and third party contracts, excluding hedge results. The majority of the alumina is sold linked to the LME prices with a one month delay. 2) 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. 3) Paragominas on wet basis. 4) 40 percent MRN offtake from Vale and 5 percent Hydro share on wet basis.. 5) Operating and financial information includes Hydro's proportionate share of production and sales volumes in equity accounted investments. Realized prices, premiums and exchange rates exclude equity accounted investments. 6) Average realized premium above LME for casthouse sales from Primary Metal. (45)

46 Operational data Metal Markets 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Remelt production (1 000 mt) Third-party metal products sales (1 000 mt) Metal products sales excl. ingot trading (1 000 mt) 1) Hereof external sales excl. ingot trading (1 000 mt) External revenue (NOK million) Rolled Products 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Rolled Products external shipments (1 000 mt) Rolled Products Underlying EBIT per mt, NOK Extruded Products Discontinued operations 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Extruded external shipments (1 000 mt) Extruded underlying EBIT per mt, NOK 2) (743) (670) (187) Energy 2011 Q Q Q Q Q Q Q Year 2011 Year 2012 Power production, GWh Net spot sales, GWh Nordic spot electricity price, NOK/MWh , Southern Norway spot electricity price (NO2), NOK/MWh ) Includes external and internal sales from primary casthouse operations, remelters and third party metal sources. Volumes from Albras casthouse (51 percent) as of March 1, ) EBIT used for calculations in Q4 2012, Year 2012 and 2013, are pro forma 2012 are adjusted to reflect IAS19R (46)

47 Price and currency sensitivities Commodity price sensitivity +10%* Currency sensitivities +10%* NOK million EBIT NOK million EBIT Financial items Income before tax Net income** Aluminium USD (890) Oil (180) BRL (760) 700 (60) (20) Pet coke (210) EUR (140) (1 100) (1 240) (880) Caustic soda (130) Coal (40) Annual sensitivities based on expected business volumes for 2013, LME USD per mt, Oil USD 500 per mt, petroleum coke USD 450 per mt, caustic soda USD 400 per mt, coal USD 80 per mt, NOK/USD 5.80, NOK/BRL 2.75, NOK/EUR Aluminium price sensitivity is net of aluminium price indexed costs and excluding unrealized effects related to operational hedging Currency sensitivity on financial items includes effects from intercompany positions * Excluding Extruded Products * Net Income attributable to majority shareholders (47)

48 Investor Relations in Hydro Rikard Lindqvist Head of Investor Relations t: e: Pål Kildemo Investor Relations Officer t: e: Next event Third Quarter Results October 23, 2013 For more information see (48)

49 (49)