Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Q4 2003 Earnings Presentation
80 slides from Norsk Hydro Asa's earnings presentation, Feb 16, 2004
Slide 1: Preliminary results 2003
Norsk Hydro ASA 16th February, 2004 Preliminary results 2003
Slide 2: Highlights
Norsk Hydro ASA – Preliminary results 2003 2 Highlights A strong quarter and a very good year for Hydro Record high oil and gas production Strong prices for oil and fertilizers Important improvements in Aluminium, signs of improving markets, challenging competitive position for European smelters Pro
Slide 3: Safety
Norsk Hydro ASA – Preliminary results 2003 3 Safety Reported injuries per million hours, Hydro employees 25 20 15 10 5 0 1997 1998 1999 2000 2001 2002 2003 LTI - Lost time injuries RWC - Restricted work cases MTC - Medical treatment cases VAW included from August 2002 46860_E • Hydro Media • 02.2004
Slide 4: Net income
Norsk Hydro ASA – Preliminary results 2003 4 Net income* Per quarter NOK million Gains from divestments 6 000 4 859 5 000 3 896 3 765 4 000 3 235 3 280 2 775 2 840 3 000 2 451 2 482 2 324 2 397 2 180 2 132 2 000 1 333 1 144 1 000 513 0 2000 2001 2002 2003* Accumulated 13 981 7 892 8 765 10 968 * Inc
Slide 5: Earnings before interest, tax, depreciation and amortization (EBITDA)
Norsk Hydro ASA – Preliminary results 2003 5 Earnings before interest, tax, depreciation and amortization (EBITDA) Per quarter NOK million 14 000 12 877 12 387 12 398 12 000 11 359 11 164 10 996 10 349 10 455 10 414 9 970 10 000 9 131 9 277 9 125 8 588 8 000 7 297 7 490 6 000 4 000 2 000 0 2000 2001
Slide 6: Consolidated income statements
Norsk Hydro ASA – Preliminary results 2003 6 Consolidated income statements 4th quarter 4th quarter NOK million 2003 2002 Operating revenues 44 533 44 007 Operating income 7 137 5 996 Equity in net income of non-consolidated investees 379 484 Interest income and other financial income 349 334 Other
Slide 7: Consolidated income statements
Norsk Hydro ASA – Preliminary results 2003 7 Consolidated income statements NOK million 2003 2002 Operating revenues 171 782 167 040 Operating income 24 258 19 841 Equity in net income of non-consolidated investees 1 229 33 Interest income and other financial income 1 467 1 418 Other income (1 212)
Slide 8: Variance analysis Hydro group
Norsk Hydro ASA – Preliminary results 2003 8 Variance analysis Hydro group NOK million Year to year 4th quarter 2003 43 253 12 398 2002 35 658 10 455 Variance EBITDA 7 595 1 943 - Prices and currency, Exploration & Production 1 870 740 - Margin incl. currency effects ¹) (695) 80 - Volume 3 580 1 110
Slide 9: Operating income
Norsk Hydro ASA – Preliminary results 2003 9 Operating income Individual operating segment 4th quarter 4th quarter NOK million 2003 2002 Exploration and Production 5 332 4 477 Energy and Oil Marketing 667 881 Eliminations (5) 26 Hydro Oil & Energy 5 994 5 384 Metals 608 425 Rolled Products 61 (187)
Slide 10: Financial solidity
Norsk Hydro ASA – Preliminary results 2003 10 Financial solidity 0.7 0.60 0.6 0.5 0.44 0.38 0.4 0.34 0.3 0.2 0.1 0 2000 2001 2002 2003 Interest-bearing debt + Net pension liability (tax adjusted) + Operating lease commitments (discounted) - cash and cash equivalents – Other liquid assets divided by
Slide 11: Earnings per share
Norsk Hydro ASA – Preliminary results 2003 11 Earnings per share* NOK 20 Gains from divestments 18.6 18 16 14.9 14.7 14 12.7 12.4 12 10.6 11.0 10 9.4 9.0 9.3 8.4 8.3 8.5 8 6 5.2 4.4 4 2.0 2 0 2000 2001 2002 2003 Accumulated 53.4 30.5 34.0 41.5 * Before effect of change in accounting principles 46860
Slide 12: Proposed dividend
Norsk Hydro ASA – Preliminary results 2003 12 Proposed dividend NOK per share 11.00 10.50 10.00 9.50 8.00 7.50 7.50 7.00 1996 1997 1998 1999 2000 2001 2002 2003 46860_E • Hydro Media • 02.2004 • 12
Slide 13: CROGI – actual
Norsk Hydro ASA – Preliminary results 2003 13 CROGI – actual Percent 9.8 Cash Return On Gross 9.4 Investment: 8.5 EBITDA – Tax Gross investments 2001 2002 2003 46860_E • Hydro Media • 02.2004 • 13
Slide 14: CROGI – normalized
Norsk Hydro ASA – Preliminary results 2003 14 CROGI – normalized Percent Normalized assumptions: 9.0 9.0 NOK/USD 8.00 8.5 NOK/EUR 7.60 Oil price/bbl $18 CAN27/tonne $113 LME3M/tonne $1 500 Restructuring charges and gain/loss on divestments excluded in normalized CROGI Volumes and margins are not nor
Slide 15: ROACE development ex Agri
Norsk Hydro ASA – Preliminary results 2003 15 ROACE development ex Agri Percent Return On Average Capital Employed: 8.3 7.4 7.1 Earnings after tax excluding financial items, divided by average capital employed 2001 2002 2003 46860_E • Hydro Media • 02.2004 • 15
Slide 16: Significant profitability improvements targeted
Norsk Hydro ASA – Preliminary results 2003 16 Significant profitability improvements targeted Normalized ROACE ex Agri, percent 8.5 7.5 5.9 5.5 Higher volumes Improvements 4.0 Capital discipline 2001 2002 2003 2006 46860_E • Hydro Media • 02.2004 • 16
Slide 17: Oil & Energy – highlights
Norsk Hydro ASA – Preliminary results 2003 17 Oil & Energy – highlights Record high production, 596 000 boe/day for Q4, 530 000 boe/day for 2003 New fields on stream: Grane, Vigdis Extension, Mikkel, Fram Vest, Murzuq A-Field (Libya) and Jasmim (Angola) High oil and gas prices 7-8% NOK increase in Q
Slide 18: Oil & Energy – 2003 targets achieved
Norsk Hydro ASA – Preliminary results 2003 18 Oil & Energy – 2003 targets achieved 2003 target 2003 estimate 2003 actual CMD Dec 2002 CMD Dec 2003 Production 510 000 boe/d 525 000 boe/d 530 000 boe/d Operating cost NOK 82/boe NOK 76/boe (excl. exploration) F&D costs USD 5/boe On track USD 5.1/boe (3
Slide 19: Oil & Energy
Norsk Hydro ASA – Preliminary results 2003 19 Oil & Energy EBITDA Eliminations Energy and Oil Marketing NOK million Exploration and Production 8 668 9 139 9 000 7 976 7 986 7 894 7 887 7 745 8 000 7 697 7 425 6 982 7 000 6 757 6 155 6 274 5 847 6 000 5 528 5 451 5 000 4 000 3 000 2 000 1 000 0 2000
Slide 20: Petroleum production
Norsk Hydro ASA – Preliminary results 2003 20 Petroleum production Per quarter 1 000 boe/day Oil Gas 700 596 600 540 552 166 482 143 156 484 489 500 442 443 451 448 452 427 419 104 112 116 411 104 110 385 115 110 88 400 86 371 93 91 430 74 397 396 57 378 364 372 373 300 337 325 333 334 328 336 338 3
Slide 21: Operating costs per barrel
Norsk Hydro ASA – Preliminary results 2003 21 Operating costs per barrel NOK/boe 99.7 100 91.5 90.1 83.8 80 60 40 20 0 2000 2001 2002 2003 Exploration 11.2 9.1 20.3 8.1 Net transportation * 7.3 8.5 9.0 6.8 Other cost/income 1.5 2.0 1.4 1.7 Deprec. & aband. 49.0 46.4 46.4 46.4 Field/Prod. cost 22.5 2
Slide 22: Reserve replacement
Norsk Hydro ASA – Preliminary results 2003 22 Reserve replacement Proven reserves (SEC’s definition), million boe Reserves 31.12.2002 2 225 Reserve revisions 39 New reserves 380 Sales, purchase and swaps (1) Production 2003 (194) Reserves 31.12.2003 2 449 Reserve replacement* – 2003 216% – 3 years a
Slide 23: Finding and development costs
Norsk Hydro ASA – Preliminary results 2003 23 Finding and development costs F&D cost USD/boe Reserve replacement 20 150% 15 100% 10 50% 5 0 0% 1998 1999 2000 2001 2002 2003 Res.replacement (3 years avg.) F&D (3 years avg.) F&D target 46860_E • Hydro Media • 02.2004 • 23
Slide 24: Oil & Energy – prospects
Norsk Hydro ASA – Preliminary results 2003 24 Oil & Energy – prospects 2004 production target 560 000 boe/day Ormen Lange PDO approval expected March/April 2004 Limited exploration activity in 2004 2 wells in Q1 – Libya and NCS Asset sales Gjøa – NOK 280 million gain in Q1 Snøhvit – gain of NOK 100
Slide 25: Aluminium – highlights
Norsk Hydro ASA – Preliminary results 2003 25 Aluminium – highlights Markets Improved upstream market fundamentals Weak downstream markets, margins under pressure Good results in challenging market Improvement program completed Implemented new capacity in Metals and Automotive Higher capacity utiliz
Slide 26: Aluminium
Norsk Hydro ASA – Preliminary results 2003 26 Aluminium EBITDA Other and Eliminations NOK million Extrusion and Automotive 2 000 Rolled Products 1 809 1 803 1 430 1 750 1 659 Metals 1 619 1 566 1 572 1 498 1 500 1 316 1 292 1 250 1 000 889 899 827 526 750 473 500 250 (302) 0 - 250 - 500 2000 2001 20
Slide 27: Aluminium – business comments
Norsk Hydro ASA – Preliminary results 2003 27 Aluminium – business comments Metals – improved results Production increase from new capacity Good trading results Rolled Products – performance improvements Improved product mix Good progress in restructuring of mills in Norway and Spain Extrusion & Aut
Slide 28: Aluminium – improvement program delivered
Norsk Hydro ASA – Preliminary results 2003 28 Aluminium – improvement program delivered Workforce reduction Cost reductions 2 000 3 000 Magnesium Aluminium Magnesium Aluminium 2 500 1 500 2 000 1 000 1 500 1 000 500 500 0 0 Q4- Q1- Q2- Q3- Q4- Target Q4- Q1- Q2- Q3- Q4- Target Run Target 2002 2003 2
Slide 29: Aluminium – prospects
Norsk Hydro ASA – Preliminary results 2003 29 Aluminium – prospects First quarter outlook Improved global market balance upstream Positive signs of improved downstream markets in USA Accelerating self-help measures Improve competitiveness of European smelters Turnaround of under-performing units 468
Slide 30: Agri – highlights
Norsk Hydro ASA – Preliminary results 2003 30 Agri – highlights Strong results for the quarter and the year in total Strong increase in nitrogen prices High European sales early in 2003/04 season Position gains on ammonia and urea High energy and freight costs High productivity Record volumes Very g
Slide 31: Agri
Norsk Hydro ASA – Preliminary results 2003 31 Agri EBITDA NOK million 1 800 1 570 1 600 1 484 1 383 1 400 1 198 1 202 1 200 1 078 1 099 1 073 1 008 989 1 000 951 819 800 705 725 719 645 600 400 200 0 2000 2001 2002 2003 Accumulated 3 553 4 402 3 945 4 748 46860_E • Hydro Media • 02.2004 • 31
Slide 32: Agri – prospects
Norsk Hydro ASA – Preliminary results 2003 32 Agri – prospects Favourable global market balance Limited new fertilizer capacity expected in 2004 Nitrogen fertilizer prices at high levels Ammonia and urea prices decreased in January Continued negative currency effects from strong Euro vs US dollar 46
Slide 33: Hydro – priorities
Norsk Hydro ASA – Preliminary results 2003 33 Hydro – priorities Continued growth in oil and gas production Strengthen competitive advantages in Aluminium, more improvement measures Successful listing of Yara Profitability improvements and profitable growth 46860_E • Hydro Media • 02.2004 • 33
Slide 34: Additional information
Additional information
Slide 35: Operating income
Norsk Hydro ASA – Preliminary results 2003 35 Operating income Individual operating segment NOK million 2003 2002 Exploration and Production 18 500 13 137 Energy and Oil Marketing 2 668 2 784 Eliminations (25) 26 Hydro Oil & Energy 21 143 15 947 Metals 2 293 1 690 Rolled Products 132 (295) Extrusion
Slide 36: EBITDA
Norsk Hydro ASA – Preliminary results 2003 36 EBITDA Individual operating segment NOK million 4th quarter 2003 4th quarter 2002 Exploration and Production 7 812 6 729 Energy and Oil Marketing 1 331 1 132 Eliminations (4) 26 Hydro Oil & Energy 9 139 7 887 Metals 1 136 964 Rolled Products 268 47 Extru
Slide 37: EBITDA
Norsk Hydro ASA – Preliminary results 2003 37 EBITDA Individual operating segment NOK million 2003 2002 Exploration and Production 27 624 21 593 Energy and Oil Marketing 4 226 3 721 Eliminations (24) 26 Hydro Oil & Energy 31 826 25 340 Metals 4 298 2 703 Rolled Products 835 258 Extrusion and Automot
Slide 38: Net financial income (expense)
Norsk Hydro ASA – Preliminary results 2003 38 Net financial income (expense) 4th quarter 4th quarter NOK million 2003 2002 Interest income 285 328 Dividends and net gain (loss) on securities 64 6 Interest income and other financial income 349 334 Interest expense (812) (767) Capitalized interest 146
Slide 39: Net financial income (expense)
Norsk Hydro ASA – Preliminary results 2003 39 Net financial income (expense) NOK million 2003 2002 Interest income 1 189 1 548 Dividends and net gain (loss) on securities 278 (130) Interest income and other financial income 1 467 1 418 Interest expense (2 912) (3 189) Capitalized interest 715 607 Ne
Slide 40: Depreciation
Norsk Hydro ASA – Preliminary results 2003 40 Depreciation Individual operating segment 4th quarter 4th quarter NOK million 2003 2002 Exploration and Production 2 458 2 174 Energy and Oil Marketing 152 194 Hydro Oil & Energy 2 610 2 368 Metals 427 284 Rolled Products 201 228 Extrusion and Automotive
Slide 41: Depreciation
Norsk Hydro ASA – Preliminary results 2003 41 Depreciation Individual operating segment NOK million 2003 2002 Exploration and Production 9 052 8 242 Energy and Oil Marketing 591 764 Hydro Oil & Energy 9 643 9 006 Metals 1 517 1 117 Rolled Products 650 496 Extrusion and Automotive 1 247 1 010 Hydro A
Slide 42: Equity in net income of non-consolidated investees
Norsk Hydro ASA – Preliminary results 2003 42 Equity in net income of non-consolidated investees Individual operating segment NOK million 2003 2002 Exploration and Production 29 31 Energy and Oil Marketing 81 148 Eliminations (3) - Hydro Oil & Energy 107 179 Metals 379 (275) Rolled Products (14) 7 E
Slide 43: Statement of Cash Flow
Norsk Hydro ASA – Preliminary results 2003 43 Statement of Cash Flow NOK million 2003 2002 Operating activities: Net income 10 968 8 765 Depreciation, depletion and amortization 15 093 13 912 Other adjustments (1 483) (892) Net cash provided by operating activities 24 578 21 785 Investing activities
Slide 44: Operating income – EBIT – EBITDA
Norsk Hydro ASA – Preliminary results 2003 44 Operating income – EBIT – EBITDA Fourth quarter 2003 Depr. Operating Non-cons Interest Selected Other NOK million EBIT and EBITDA income investees income fin. items income Amort. Exploration and Production 5 332 13 9 (1) - 5 353 2 459 7 812 Energy and Oi
Slide 45: Adjusted income fourth quarter 2003
Norsk Hydro ASA – Preliminary results 2003 45 Adjusted income fourth quarter 2003 NOK million 4th quarter 2003 Adjustments Adj. Income Exploration and Production 5 332 - 5 332 Energy and Oil Marketing 667 - 667 Eliminations (5) - (5) Hydro Oil & Energy 5 994 - 5 994 Metals 608 - 608 Rolled Products
Slide 46: Infrequent and other items impacting fourth quarter 2003 earnings
Norsk Hydro ASA – Preliminary results 2003 46 Infrequent and other items impacting fourth quarter 2003 earnings NOK Item Segment Reporting line million Reversal of provisions regarding claims Aluminium Operating income (77) Other infrequent items, net Aluminium Operating income 46 Provision for bad
Slide 47: Adjusted income 2003
Norsk Hydro ASA – Preliminary results 2003 47 Adjusted income 2003 Millioner kroner 2003 Justeringer Justert resultat Exploration and Production 18 500 - 18 500 Energy and Oil Marketing 2 668 - 2 668 Eliminations (25) - (25) Hydro Oil & Energy 21 143 - 21 143 Metals 2 293 (19) 2 274 Rolled Products
Slide 48: Infrequent and other items impacting 2003 earnings
Norsk Hydro ASA – Preliminary results 2003 48 Infrequent and other items impacting 2003 earnings NOK Item Segment Reporting line million Infrequent items Aluminium Operating income 94 Corporate and Expenses regarding Agri-demerger Operating income 130 eliminations Provision for bad debt and impairme
Slide 49: CROGI per business area
Norsk Hydro ASA – Preliminary results 2003 49 CROGI per business area Percent Normalized 13.2 13.0 12.1 11.2 11.3 10.6 9.6 9.9 10.0 11.7 9.4 9.1 9.6 9.4 8.6 6.2 7.1 5.7 2001 2002 2003 2001 2002 2003 2001 2002 2003 Oil & Energy Aluminium Agri 46860_E • Hydro Media • 02.2004 • 49
Slide 50: ROACE development
Norsk Hydro ASA – Preliminary results 2003 50 ROACE development Percent Normalized Actual 9.4 7.1 6.9 7.7 7.6 5.3 2001 2002 2003 46860_E • Hydro Media • 02.2004 • 50
Slide 51: ROACE development per business area
Norsk Hydro ASA – Preliminary results 2003 51 ROACE development per business area Percent Normalized 16.2 13.1 11.6 7.5 6.8 5.6 5.7 5.7 4.7 2.3 2.7 0.9 2001 2002 2003 2001 2002 2003 Oil & Energy Aluminium 46860_E • Hydro Media • 02.2004 • 51
Slide 52: Consolidated balance sheet
Norsk Hydro ASA – Preliminary results 2003 52 Consolidated balance sheet NOK million 31.12.2003 31.12.2002 Cash and cash equivalents 15 249 5 965 Other liquid assets 1 581 2 647 Receivables 41 503 40 553 Inventories 17 350 17 232 Non-current assets 142 946 140 814 Total assets 218 629 207 211 Short-
Slide 53: Financial solidity – calculation
Norsk Hydro ASA – Preliminary results 2003 53 Financial solidity – calculation 31 December 31 December 31 December 31 December 31 December 31 December Amounts in NOK Million 1998 1999 2000 2001 2002 2003 [A] Cash and cash equivalents 1 936 7 435 21 766 27 148 5 965 15 249 [B] Other liquid assets 2 4
Slide 54: Pensions
Norsk Hydro ASA – Preliminary results 2003 54 Pensions Hydro Hydro Hydro ex. Agri NOK million 2003 2002 Agri 2003 2003 Total pension obligations (29 233) (23 714) (23 457) (5 776) Pension Plan Assets 18 720 15 122 14 671 4 049 Funded status of the plans (10 513) (8 592) (8 786) (1 727) Net accrued p
Slide 55: Pension cont.
Norsk Hydro ASA – Preliminary results 2003 55 Pension cont. Development in 2003 Pension cost NOK 2 480 million in line with forecast Increase in obligation Reduction in long term interest rates Inclusion of certain pension plans with pension obligations of NOK 2.1 billion Increase in plan assets Act
Slide 56: Divestment target achieved
Norsk Hydro ASA – Preliminary results 2003 56 Divestment target achieved NOK billion 16.0 Enterprise value VAW Flexible Packaging 3.2 Scanraff 1.7 Various E&P assets 0.9 9.8 Treka assets 2.6 Pronova businesses 0.8 VAW IMCO 0.2 Other 0.4 Total 9.8 1999-2001 2002-2003 46860_E • Hydro Media • 02.2004 •
Slide 57: Indicative price and currency sensitivities 2004
Norsk Hydro ASA – Preliminary results 2003 57 Indicative price and currency sensitivities 2004 NOK million Price sensitivity 1) Pre tax After tax Oil price (bbl) 1 450 390 USD 1 increase Aluminium price (tonne) 875 615 USD 100 increase USD sensitivity 1) 2) Pre tax After tax USD Oil & Energy 2 900 7
Slide 58: Variance Analysis Oil & Energy
Norsk Hydro ASA – Preliminary results 2003 58 Variance Analysis Oil & Energy NOK million Year to year 4th quarter 2003 31 826 9 139 2002 25 340 7 887 Variance EBITDA 6 486 1 252 - Prices and currency - Oil 4 110 965 - Gas 485 165 - Currency (2 835) (395) - Put options 110 5 ___________________ _____
Slide 59: Variance Analysis Exploration and Production
Norsk Hydro ASA – Preliminary results 2003 59 Variance Analysis Exploration and Production NOK million Year to year 4th quarter 2003 27 624 7 812 2002 21 593 6 729 Variance EBITDA 6 031 1 083 - Prices and currency - Oil 4 110 965 - Gas 485 165 - Currency (2 835) (395) - Put options 110 5 ___________
Slide 60: Variance Analysis Energy and Oil Marketing
Norsk Hydro ASA – Preliminary results 2003 60 Variance Analysis Energy and Oil Marketing NOK million Year to year 4th quarter 2003 4 226 1 331 2002 3 721 1 132 Variance EBITDA 505 199 - Margin 205 (155) - Volume (545) (25) - Fixed costs 60 (60) - Depreciation 170 40 - Other (5) (15) Variance operati
Slide 61: Production per field
Norsk Hydro ASA – Preliminary results 2003 61 Production per field Boe/day Q4 2002 Q4 2003 Hydro Share Hydro Production (oil including NGL and condensate) Percent Oseberg 188 000 185 000 34.00 63 065 Snorre 270 000 254 000 17.65 44 761 Oseberg South 73 000 90 000 34.00 30 430 Ekofisk 364 000 362 000
Slide 62: Exploration activity and costs
Norsk Hydro ASA – Preliminary results 2003 62 Exploration activity and costs NOK million 1 400 1 200 1 000 800 Expensed 600 share 400 200 0 - 200 - 400 Capitalized 1/00 2/00 3/00 4/00 1/01 2/01 3/01 4/01 1/02 2/02 3/02 4/02 1/03 2/03 3/03 4/03 share Activity Expensed old wells Cost reduction repayme
Slide 63: Price development – crude oil
Norsk Hydro ASA – Preliminary results 2003 63 Price development – crude oil Average Brent Blend dated per quarter USD/bbl NOK/bbl 35 280 USD/bbl NOK/bbl 30 240 25 200 20 160 15 120 10 80 5 40 0 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 4th quarter 2003: 203.10 NOK/bbl 29.40 USD/bbl 46860_E
Slide 64: Strong production growth
Norsk Hydro ASA – Preliminary results 2003 64 Strong production growth 1 000 boe/day 8% average annual growth 700 600 500 400 300 200 100 0 1998 1999 2000 2001 2002 2003 2004E 2005E 2006E 2007E Norwegian Fields Oil, international Gas 8% CAGR* * Compound Annual Growth Rate, 2001 baseline 46860_E • Hy
Slide 65: New fields on stream 2004 – 2007
Norsk Hydro ASA – Preliminary results 2003 65 New fields on stream 2004 – 2007 Hydro share boe/day Dalia 22 000 International Kharyaga 2+3 15 000 (phase 1-3) Murzuq 6 000 (A + D field) Rosa 13 000 M NCS operator Ormen Lange 70 000 Oseberg M 14 000 Vestflanken M Oseberg Sør J 7 000 NCS non-operator V
Slide 66: Ormen Lange – one of the world's most technologically challenging gas projects
Norsk Hydro ASA – Preliminary results 2003 66 Ormen Lange – one of the world’s most technologically challenging gas projects Development plan delivered Nyhamna plant Total investments Multiphase (field + pipeline): NOK 66 billion transport Gas export Production start October 2007 Seabed development
Slide 67: Variance analysis Aluminium
Norsk Hydro ASA – Preliminary results 2003 67 Variance analysis Aluminium NOK million Year to year 4th quarter 2003 6 498 1 809 2002 4 334 1 316 Variance EBITDA 2 164 493 - Margin (560) 400 - Volume 860 310 - Fixed costs (345) (125) - Depreciation (515) (160) - Infrequent items and restructuring cos
Slide 68: Variance analysis Metals
Norsk Hydro ASA – Preliminary results 2003 68 Variance analysis Metals NOK million Year to year 4th quarter 2003 4 298 1 136 2002 2 703 964 Variance EBITDA 1 595 172 - Margin (760) 115 - Volume 415 160 - Fixed costs (160) (70) - Depreciation (295) (145) - Infrequent items and restructuring costs 365
Slide 69: Variance analysis Rolled Products
Norsk Hydro ASA – Preliminary results 2003 69 Variance analysis Rolled Products NOK million Year to year 4th quarter 2003 835 268 2002 258 47 Variance EBITDA 577 221 - Margin 235 275 - Volume 195 30 - Fixed costs (55) (5) - Depreciation (45) 30 - Infrequent items 155 (45) - New/disposed business (10
Slide 70: Variance analysis Extrusion and Automotive
Norsk Hydro ASA – Preliminary results 2003 70 Variance analysis Extrusion and Automotive NOK million Year to year 4th quarter 2003 1 432 426 2002 1 084 285 Variance EBITDA 348 141 - Margin 15 - - Volume 250 120 - Fixed costs (130) (50) - Depreciation (175) (45) - Infrequent items 95 45 - New/dispose
Slide 71: Aluminium – Key figures by segment
Norsk Hydro ASA – Preliminary results 2003 71 Aluminium – Key figures by segment Volumes and prices Q4 2003 Q3 2003 Q4 2002 Primary production (Kmt) 388 381 349 Total metal sales (Kmt) *) 483 506 480 LME, realized (USD/t) **) 1 488 1 445 1 343 USD/NOK, realized ***) 7.10 7.33 7.49 Rolled Products, e
Slide 72: Aluminium price
Norsk Hydro ASA – Preliminary results 2003 72 Aluminium price 3 months LME price, average per quarter USD/tonne 2 000 1 800 1 600 1 400 1 200 1 000 90 91 92 93 94 95 96 97 98 99 00 01 02 03 46860_E • Hydro Media • 02.2004 • 72
Slide 73: Inventories – primary aluminium
Norsk Hydro ASA – Preliminary results 2003 73 Inventories – primary aluminium 1 000 tonnes 5 000 LME (London Metal Exchange) IAI (Producers' inventories) 4 000 3 000 2 000 1 000 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Sources: IAI and LME
Slide 74: Variance analysis Agri
Norsk Hydro ASA – Preliminary results 2003 74 Variance analysis Agri NOK million Year to year 4th quarter 2003 4 748 1 484 2002 3 945 645 Variance EBITDA 803 839 - Margin 645 595 - Volume 150 135 - Fixed costs (190) 5 - Depreciation 40 - - Other (50) (35) Variance operating income 593 698 - Non-cons
Slide 75: Variance analysis Agri (cont.)
Norsk Hydro ASA – Preliminary results 2003 75 Variance analysis Agri (cont.) NOK million Year to year 4th quarter 2003 4 748 1 484 2002 3 945 645 Variance EBITDA 803 839 Currency effect (transaction and translation) 1) 850 130 Total change in EBITDA calculated with stable currency 1 653 969 rates Vo
Slide 76: Fertilizer prices
Norsk Hydro ASA – Preliminary results 2003 76 Fertilizer prices CAN Germany Ammonia USD/tonne Bulk delivered warehouse USD/tonne Fob Caribbean 250 300 200 250 200 150 150 100 100 50 50 0 0 93 94 95 96 97 98 99 00 01 02 03 Q4 93 94 95 96 97 98 99 00 01 02 03 Q4 DAP Urea Bulk fob US Gulf Bulk fob Midd
Slide 77: Nitrate premium above urea price
Norsk Hydro ASA – Preliminary results 2003 77 Nitrate premium above urea price USD/tonne nitrogen 600 CAN Germany Urea fob Middle East 500 400 300 200 100 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 46860_E • Hydro Media • 02.2004 • 77
Slide 78: Variance analysis Petrochemicals
Norsk Hydro ASA – Preliminary results 2003 78 Variance analysis Petrochemicals NOK million Year to year 4th quarter 2003 401 148 2002 320 35 Variance EBITDA 81 113 - Margin - 90 - Volume 50 15 - Fixed costs (15) 5 - Depreciation (5) (5) - Other (5) (15) Variance operating income 27 92 - Non-consolid
Slide 79: Forward-Looking Statements/ Use of Non-GAAP Financial Measures
Norsk Hydro ASA – Preliminary results 2003 79 Forward-Looking Statements/ Use of Non-GAAP Financial Measures In order to utilize the “safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995, Hydro is providing the following cautionary statement: This presentati
Slide 80: Cautionary Note
Norsk Hydro ASA – Preliminary results 2003 80 Cautionary Note The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be e