Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Q4 2006 Earnings Presentation
78 slides from Norsk Hydro Asa's earnings presentation, February 2007
Slide 1: Preliminary results 2006
Preliminary results 2006 www.hydro.com
Slide 2: Highlights 2006
Highlights 2006 z Strategic decision to merge oil and gas activities with Statoil z Record 2006 results z Q4 hit by US Gulf of Mexico write-downs and unrealized effects z Strong results in Aluminium z Significant restructuring and repositioning of Aluminium z Continued strong market conditions 2
Slide 3: Income from continuing operations
Income from continuing operations By quarter* 5 820 NOK million 5 344 4 798 US GoM impairment 4 176 4 183 Gains from divestments 3 638 3 661 3 522 3 135 2 991 2 481 2 224 2 005 1 851 1 809 1 261 2003 2004 2005 2006 Accumulated 8 656 11 477 15 542 17 224 * Automotive Casting only reported as disconti
Slide 4: Consolidated income statements
Consolidated income statements NOK million 2006 2005 Operating revenues 200 719 171 231 Operating income 52 224 46 237 Non-consolidated investees 962 593 Financial income (expense), net 1 785 (1 889) Other income, net 53 990 Income from continuing operations before tax and minority interest 55 024 4
Slide 5: Consolidated income statements
Consolidated income statements NOK million Q4 2006 Q3 2006 Q4 2005 Operating revenues 45 715 50 090 44 509 Operating income 4 573 15 278 10 360 Non-consolidated investees 54 231 (79) Financial income (expense), net 847 (741) (579) Other income (loss), net 53 - 758 Income continuing operations before
Slide 6: Operating income
Operating income NOK million Q4 2006 Q3 2006 Q4 2005 Exploration and Production 4 517 12 078 10 690 Energy and Oil Marketing 590 851 1 403 Eliminations 540 382 (556) Oil & Energy 5 647 13 311 11 537 Aluminium Metal 849 1 854 12 Aluminium Products (499) (202) (1 124) Other Activities 707 235 (98) Cor
Slide 7: Adjusted EBITDA
Adjusted EBITDA 22 610 NOK million 20 427 19 185 17 002 16 820 15 733 15 379 14 997 13 546 13 210 12 266 12 094 11 045 9 935 9 451 8 197 2003 2004 2005 2006 Accumulated 38 628 51 116 64 933 77 219 7
Slide 8: Return on capital employed – RoaCE
Return on capital employed – RoaCE 16.6% 14.9% 12.9% 8.4% 2003 2004 2005 2006 8
Slide 9: RoaCE by business area
RoaCE by business area Oil & Energy Aluminium Metal Aluminium Products 26.2% 23.4% 18.7% 17.4% 16.2% 7.7% 7.9% 3.3% 3.7% 1.7% -3.2% -1.3% 2003 2004 2005 2006 2003 2004 2005 2006 2003 2004 2005 2006 9
Slide 10: Adjusted net debt/equity ratio
Adjusted net debt/equity ratio 0.50 0.38 0.31 0.22 0.11 2003 2004 2005 2006 2006 Interest-bearing debt + net pension liability (tax adjusted) + operating lease commitments (discounted) – cash and cash equivalents – other liquid assets divided by shareholders’ equity + minority interest 10
Slide 11: Pensions
Pensions NOK million 2006 2005 Defined benefit plans: Benefits earned during year, net of participants’ contributions 1 118 830 Interest cost on prior period benefit obligation 1 289 1 292 Expected return on plan assets (1 080) (1 003) Recognized net loss 1) 439 283 Amortization of prior service cos
Slide 12: Oil & Energy – highlights
Oil & Energy – highlights z Realized oil price: USD 57.8 per bbl in Q4 z Oil and gas production: 595 000 boe in Q4, 573 000 boe in 2006 z 5 new discoveries in Q4 z Ormen Lange/Langeled on track – 91 percent complete end of 2006 z US Gulf of Mexico impairment of NOK 3.4 billion after tax 12
Slide 13: Oil & Energy – key figures
Oil & Energy – key figures Operational data 2006 Q4 2006 Q4 2005 Oil and gas production (1 000 boe/day) 573 595 589 Realized oil price, USD/boe 63.10 57.80 55.60 Realized oil price, NOK/boe 404.00 369.20 368.80 Realized gas price, NOK/Sm³ 1.93 1.97 1.85 Exploration expense, NOK million 4 986 2 093 1
Slide 14: Oil and gas production per quarter
Oil and gas production per quarter 1 000 boe/day Oil Gas 615 610 596 591 584 589 595 569 552 539 541 548 537 173 514 484 489 166 176 208 147 178 184 197 156 154 142 168 123 169 112 116 430 442 422 415 396 406 399 405 402 398 391 385 381 372 373 368 2003 2004 2005 2006 Average 530 572 563 573 14
Slide 15: Production costs per barrel
Production costs per barrel NOK/boe 32.2 7.9 25.3 20.7 20.7 5.4 24.3 20.0 2.8 19.9 17.9 2003 2004 2005 2006 Production in million boe 194 209 206 209 15
Slide 16: Proved reserves of oil and gas
Proved reserves of oil and gas SEC definition Reserves 31 December 2005 – million boe 2 046 Reserve revisions 45 New reserves 34 Production 2006 (209) Reserves 31 December 2006 – million boe 1 916 Reserve replacement ratio and reserve life Reserve replacement ratio 2006 38% Reserve replacement ratio
Slide 17: High exploration activity in 2006
High exploration activity in 2006 z 51 wells completed z 26 discoveries - Norway: 6, US GoM: 8, Libya: 7, Other:5 z 5 wells drilling by end of year z Activity of NOK 5.9 billion 17
Slide 18: Oil & Energy – prospects
Oil & Energy – prospects z 2007 production target of 605 000 boed z Ormen Lange start-up z Peregrino plan for development and operation first half 2007 z High exploration activity z Proposed merger of Hydro’s oil and gas activities with Statoil 18
Slide 19: Aluminium activities – key figures
Aluminium activities – key figures Operational data 2006 Q4 2006 Q4 2005 Realized aluminium price, USD/ton 2 352 2 430 1 851 Realized aluminium price, NOK/ton 15 371 15 793 12 145 Primary aluminium production, 1 000 tons 1 799 450 464 Operating income, NOK million 2006 Q4 2006 Q4 2005 Aluminium Meta
Slide 20: Aluminium Metal – highlights
Aluminium Metal – highlights z Financial performance at record level in 2006 - EBITDA NOK 9.1 billion - Operating income NOK 6.4 billion - RoaCE 18.7 percent z Increased raw material and energy costs z Realized aluminium price USD 2 430 per ton in Q4 z Q4 negatively impacted by unrealized effects on
Slide 21: Aluminium price remains historically high
Aluminium price remains historically high USD per ton Primary aluminium LME USD/ton 3 000 LME (3-month avg.) LME forward Q4 2006 average 2 725 2 500 Q4 2006 end 2 803 Q3 2006 average 2 528 2 000 Q3 2006 end 2 584 1 500 Q2 2006 average 2 682 Q2 2006 end 2 630 1 000 Q1 2006 average 2 444 Q1 2006 end 2
Slide 22: Aluminium Metal – operating income
Aluminium Metal – operating income Adjusted for special items 1 833 NOK million 1 701 1 585 1 476 1 241 1 132 822 708 2005 2006 Adjusted operating income 3 903 6 595 Reported operating income 2 694 6 362 22
Slide 23: Aluminium Metal – prospects
Aluminium Metal – prospects z Continued high aluminum prices z 80 percent of expected Q1 production sold at 2 540 USD/ton - Including full effect of strategic hedges z Qatalum progressing toward investment decision mid-2007 23
Slide 24: Aluminium Products – highlights
Aluminium Products – highlights z Weak results, restructuring continues z Exit of automotive business ongoing - Divestment of Castings and Meridian signed - Structures sales process continues - Magnesium closure costs NOK 384 million in Q4 z Improved volumes and margins in Rolled Products and Extrus
Slide 25: Aluminium Products – operating income
Aluminium Products – operating income Adjusted for special items NOK million 279 269 253 z Rolled Products 244 243 234 - Volumes improving, seasonal 197 reduction in Q4 compared to Q3 - Slight increase in margins z Extrusion - Margin and volume improvement z Automotive - Continued weak margins and v
Slide 26: Aluminium Products – prospects
Aluminium Products – prospects z Portfolio restructuring to be completed in 2007 z Strong margins in Extrusion continues z Improved margins in Rolled Products z European market for Rolled Products, Extrusion and Building Systems to remain strong 26
Slide 27: Strong results for “new” Hydro businesses in 2006
Strong results for “new” Hydro businesses in 2006 Operating Adjusted Operating NOK billion Depreciation Investments revenues EBITDA income Aluminium Metal 68.4 9.1 (1.7) 6.4 2.0 Aluminium Products 49.8 1.7 (1.7) (0.1) 1.3 Power 10.8 1.3 (0.1) 1.2 0.04 Polymers 6.9 1.5 (0.4) 1.0 0.5 27
Slide 28: Hydro – priorities
Hydro – priorities z Execute proposed demerger of oil and gas activities and ensure successful integration planning with Statoil z Launch “new” Hydro z Strong return on capital z Operational excellence z Qatalum investment decision mid-2007 z Solid financial position 28
Slide 29: Cautionary note in relation to certain forward-looking statements
Cautionary note in relation to certain forward-looking statements Certain statements contained in this announcement constitute “forward-looking information” within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as a
Slide 30: Use of non-GAAP financial measures / Cautionary note on oil and gas reserves
Use of non-GAAP financial measures/ Cautionary note in relation to oil and gas reserves With respect to each non-GAAP financial measure Hydro uses in connection with its financial reporting and other public communications, Hydro provides a presentation of what Hydro believes to be the most directly
Slide 31: Additional information
Additional information 31
Slide 32: Adjusted income Q4 2006
Adjusted income Q4 2006 NOK million Reported income Adjustments Adjusted income Exploration and Production 4 517 5 411 9 928 Energy and Oil Marketing 590 165 755 Eliminations 540 (540) - Oil & Energy 5 647 5 036 10 683 Aluminium Metal 849 627 1 476 Aluminium Products (499) 697 198 Other activities 7
Slide 33: Special items impacting income statement Q4 2006
Special items impacting income statement Q4 2006 NOK million Unrealized (gains)/losses on oil and gas derivatives, Spinnaker Exploration & Production 5 Impairment loss Gulf of Mexico Exploration & Production 5,240 Unrealized (gains)/losses on gas contracts Exploration & Production 166 Unrealized (ga
Slide 34: Special items impacting income statement Q4 2006
Special items impacting income statement Q4 2006 NOK million Net impact operating income Hydro 7 708 Non-cons. investees - unrealized currency (gains)/losses Alunorte Aluminium Metal (15) Non-cons. investees - unrealized (gains)/losses on LME contracts Alunorte Aluminium Metal 137 Non-cons. investee
Slide 35: Adjusted income Q4 2005
Adjusted income Q4 2005 NOK million Reported income Adjustments Adjusted income Exploration and Production 10 690 591 11 281 Energy and Oil Marketing 1 403 (377) 1 026 Eliminations (556) 556 - Oil & Energy 11 537 770 12 307 Aluminium Metal 12 1 120 1 132 Aluminium Products (1 124) 1 057 (67) Other a
Slide 36: Special items impacting income statement Q4 2005
Special items impacting income statement Q4 2005 NOK million Unrealized (gains)/losses on oil and gas derivatives, Spinnaker Exploration & Production 440 Unrealized (gains)/losses on gas contracts Exploration & Production 151 Unrealized (gains)/losses on gas contracts Energy and Oil Marketing (377)
Slide 37: Adjusted income 2006
Adjusted income 2006 NOK million Reported income Adjustments Adjusted income Exploration and Production 41 352 4 993 46 345 Energy and Oil Marketing 3 578 50 3 628 Eliminations 1 323 (1 323) - Oil & Energy 46 253 3 720 49 973 Aluminium Metal 6 362 232 6 594 Aluminium Products (83) 1 064 981 Other ac
Slide 38: Special items impacting income statement 2006
Special items impacting income statement 2006 NOK million Unrealized (gains)/losses on oil and gas derivatives, Spinnaker Exploration & Production (222) Impairment loss Gulf of Mexico Exploration & Production 5 240 Unrealized (gains)/losses on gas contracts Exploration & Production (25) Unrealized (
Slide 39: Special items impacting income statement 2006
Special items impacting income statement 2006 NOK million Net impact operating income Hydro 4 661 Non-cons. investees - unrealized currency (gains)/losses Alunorte Aluminium Metal (94) Non-cons. investees - unrealized (gains)/losses on LME contracts Alunorte Aluminium Metal 143 Non-cons. investees -
Slide 40: Adjusted income 2005
Adjusted income 2005 NOK million Reported income Adjustments Adjusted income Exploration and Production 40 594 627 41 221 Energy and Oil Marketing 3 575 41 3 616 Eliminations (719) 719 - Oil & Energy 43 451 1 387 44 838 Aluminium Metal 2 694 1 210 3 904 Aluminium Products (370) 1 043 673 Other activ
Slide 41: Special items impacting income statement 2005
Special items impacting income statement 2005 NOK million Unrealized (gains)/losses on oil and gas derivatives, Spinnaker Exploration & Production 440 Unrealized (gains)/losses on gas contracts Exploration & Production 187 Unrealized (gains)/losses on gas contracts Energy and Oil Marketing 41 Unreal
Slide 42: Special items impacting income statement 2005
Special items impacting income statement 2005 NOK million Net impact operating income Hydro 2 337 Non-cons. investees - unrealized currency (gains)/losses Alunorte Aluminium Metal (106) Non-cons. investees - unrealized (gains)/losses on LME contracts Alunorte Aluminium Metal 9 Non-cons. investees -
Slide 43: Adjusted EBITDA
Adjusted EBITDA Operating income – Adjusted EBIT – Adjusted EBITDA – Fourth quarter 2006 Non- Selecte Depr. Operating Interest Other Adjusted Adjusted NOK million income cons. income d fin. income EBIT and EBITDA investees items amort. Exploration and Production 4 517 1 2 (6) - 4 514 8 436 12 950 En
Slide 44: Variance analysis Hydro
Variance analysis Hydro NOK million 2006 Q4 2006 2006 77 219 14 997 2005 64 933 16 820 Variance adjusted EBITDA 12 286 (1 823) - Prices and currency, Exploration and Production (E&P) 12 515 490 - Margin incl. currency effects ¹) 4 650 (360) - Volume 1 485 30 - Fixed costs (1 300) (795) - Depreciatio
Slide 45: Consolidated balance sheets
Consolidated balance sheets NOK million 31 December 2006 30 September 2006 31 December 2005 Cash and cash equivalents 6 760 16 490 10 463 Short-term investments 15 020 12 699 3 865 Receivables and other current assets 42 731 46 490 41 411 Inventories 16 497 16 310 14 553 Current assets held for sale
Slide 46: Statement of cash flows
Statement of cash flows NOK million 2006 2005 Operating activities: Net income 17 391 15 638 Depreciation, depletion and amortization 22 164 15 752 Other adjustments (828) (4 382) Net cash provided by operating activities 38 727 27 008 Investing activities: Purchases of property, plant and equipment
Slide 47: High oil price driven by supply concerns
High oil price driven by supply concerns OPEC spare capacity at low levels, but increasing Million bbl/day USD per bbl 5 80 70 4 60 3 50 40 2 30 20 1 10 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 OPEC spare capacity Brent dated Brent forward Sources: Pira, Reuters, Platts 47
Slide 48: Oil & Energy – operating income
Oil & Energy – operating income NOK million 14 126 13 168 13 311 12 624 11 537 Eliminations Energy and Oil Marketing 9 842 Exploration and Production 9 447 8 621 7 818 7 521 7 184 6 175 5 994 5 647 5 322 3 652 2003 2004 2005 2006 Accumulated 21 143 31 144 43 451 46 253 48
Slide 49: Oil & Energy – adjusted EBITDA
Oil & Energy – adjusted EBITDA 17 398 16 702 NOK million 16 325 15 191 14 766 14 530 Eliminations Energy and Oil Marketing 12 416 11 967 Exploration and Production 11 583 10 503 9 928 9 764 9 139 8 668 7 745 6 274 2003 2004 2005 2006 Accumulated 31 826 41 777 54 339 64 954 49
Slide 50: Average realized gas prices
Average realized gas prices NOK/Sm3 1.03 1.09 1.52 1.93 1.97 1.85 1.79 1.73 1.47 1.36 1.31 1.20 1.10 1.07 1.03 1.06 0.99 1.01 0.98 2003 2004 2005 2006 50
Slide 51: Average prices and exchange rates
Average prices and exchange rates 450 NOK/boe USD/boe 80 Oil Oil Gas USD/boe NOK/boe NOK/USD NOK/Sm3 400 70 Q1 2005 46.4 291.7 6.29 1.47 350 60 Q2 2005 49.8 317.9 6.39 1.31 300 50 Q3 2005 60.4 390.6 6.47 1.36 250 Q4 2005 55.6 368.8 6.63 1.85 40 Ave. 2005 53.1 342.2 6.44 1.52 200 30 150 Q1 2006 60.6
Slide 52: Operating costs per boe
Operating costs per boe 154.1 160 NOK/boe 140 120 106.1 94.9 100 83.8 82.1 80 60 40 20 0 2003 2004 2005 2006 2006 excl HGoM Exploration 8.1 6.0 8.9 23.9 12.5 Net transportation 6.8 8.3 9.4 12.4 12.7 Other cost/income 1.7 0.7 3 2.7 2.6 Deprec.& aband. 46.4 46.4 48.2 83.1 46.7 Gas for injection 0.7 2.
Slide 53: Oil production per field – Q4
Oil production per field – Q4 Boed oil and NGL/condensate Share Q4 2005 Q4 2006 Grane 38.00 % 76 82 Oseberg incl C 34.00 % 49 44 Snorre 17.77 % 28 29 Ekofisk 5.81-6.65 % 23 23 Oseberg South 34.00 % 26 23 Troll 9.78 % 23 19 Åsgard 9.61 % 18 18 Gullfaks inclu. Sat 9.00 % 20 15 Kristin 14.00 % 4 14 Kvi
Slide 54: Gas production per field – Q4
Gas production per field – Q4 Boed Share Q4 2005 Q4 2006 Troll 9.78 % 54 60 Sleipner Area 8.85-10.00 % 23 21 Oseberg incl C 34.00 % 26 18 Tune 40.00 % 21 16 Åsgard 9.61 % 16 16 US Gulf of Mexico - 2 13 Kvitebjørn 15.00 % 11 13 Kristin 14.00 % 2 9 Visund 20.30 % 5 6 Gullfaks inclu. Sat 9.00 % 8 6 Ose
Slide 55: Oil production per field – 2006
Oil production per field – 2006 Boed oil and NGL/condensate Share 2005 2006 Grane 38.00 % 67 83 Oseberg incl C 34.00 % 50 44 Snorre 17.77 % 28 26 Oseberg South 34.00 % 24 23 Ekofisk 5.81-6.65 % 24 23 Troll 9.78 % 24 21 Åsgard 9.61 % 19 17 Gullfaks inclu. Sat 9.00 % 21 16 Girassol/Jasmim 10.00 % 20 1
Slide 56: Gas production per field – 2006
Gas production per field – 2006 Boed Share 2005 2006 Troll 9.78 % 46 50 Sleipner Area 8.85-10.00 % 23 22 Oseberg incl C 34.00 % 17 19 Tune 40.00 % 21 17 Åsgard 9.61 % 17 16 Kvitebjørn 15.00 % 11 15 US Gulf of Mexico - 1 11 Gullfaks inclu. Sat 9.00 % 6 6 Kristin 14.00 % 0 6 Oseberg South 34.00 % 4 4
Slide 57: New fields on stream 2007 - 2010
New fields on stream 2007 - 2010 Hydro share Start year Field name at peak rate Country Type Operator 2007 Ormen Lange 70,000 Norway Gas/Cond Hydro Rosa 14,000 Angola Oil Total Independence Hub Area 12,500 US GoM Gas Hydro, Dominion, Anadarko Vilje 10,000 Norway Oil Hydro Njord Gas 7,800 Norway Gas
Slide 58: Exploration activity and cost
Exploration activity and cost NOK million 2 400 2 200 2 000 1 800 1 600 1 400 1 200 1 000 Expensed share 800 600 400 200 0 - 200 - 400 - 600 - 800 Capitalized -1 000 2002 2003 2004 2005 2006 share Expensed Expensed old wells Refund insurance Iran Seismic Spinnaker Acquisition costs 58
Slide 59: UK gas prices – NBP forward curves
UK gas prices – NBP forward curves Pence/th 105 95 85 75 65 55 45 35 25 15 End Q4 2005 End Q1 2006 End Q2 2006 End Q3 2006 End Q4 2006 59
Slide 60: Nordic power market – forward curves
Nordic power market – forward curves NOK/MWh 650 600 550 500 450 400 350 300 250 200 150 End Q4 2005 End Q1 2006 End Q2 2006 End Q3 2006 End Q4 2006 60
Slide 61: Variance analysis Oil & Energy
Variance analysis Oil & Energy NOK million 2006 Q4 2006 2006 64 954 14 530 2005 54 339 14 766 Variance adjusted EBITDA 10 615 (236) Prices and currency 12 515 490 - Oil 8 560 365 - Gas 3 480 180 - Currency (415) (475) - Options 890 420 - Margin 3 135 820 - Volume (375) (540) - Fixed costs (335) (110
Slide 62: Variance analysis Exploration and Production
Variance analysis Exploration and Production NOK million 2006 Q4 2006 2006 58 804 12 950 2005 50 601 13 677 Variance adjusted EBITDA 8 203 (727) Prices and currency 12 515 490 - Oil 8 560 365 - Gas 3 480 180 - Currency (415) (475) - Options 890 420 - Volume 190 (270) - Depreciation (2 575) (600) - P
Slide 63: Variance analysis Energy and Oil Marketing
Variance analysis Energy and Oil Marketing NOK million 2006 Q4 2006 2006 4 827 1 040 2005 4 456 1 645 Variance adjusted EBITDA 371 (605) - Margin 1 095 (275) - Volume (565) (270) - Fixed costs (335) (110) - Depreciation (200) (155) - Other 10 - Variance operating income 3 (814) - Non-consolidated in
Slide 64: Primary aluminium production per quarter
Primary aluminium production per quarter 1 000 tons 1 472 1 720 1 826 1 799 457 461 464 446 444 449 451 449 450 441 415 418 381 388 360 343 2003 2004 2005 2006 Slovalco consolidated from Q1 2004 64
Slide 65: Primary aluminium market
Primary aluminium market USD per ton days Aluminium inventories (days of consumption) 3 000 80 Aluminium price (LME 3-month) 2 600 60 2 200 1 800 40 1 400 1 000 20 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 65
Slide 66: Current position German power market
Current position German power market EEX Power market development. Baseload contract one year ahead. Avg. spot prices for the year. Eur/Mwh 70 z Current prices slightly lower due to mild weather, low 60 consumption and falling fuel prices. 50 45.98 50.79 z Price might increase if consumption picks u
Slide 67: Aluminium Metal hedge programs
Aluminium Metal hedge programs 1) 2006 2007 2008 2009 2006-2008 program – volume ton 2) 130 000 163 800 167 100 - 2006-2008 program – LME price USD/ton 2 152 2 300 2 200 - 2003-2007 program (Sunndal) – volume ton 3) 96 900 108 900 - - 2003-2007 program (Sunndal) – LME price USD/ton 1 505 1 500 - - 2
Slide 68: Aluminium – operational data
Aluminium – operational data Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Volumes and prices * 2006 2006 2006 2006 2005 2005 2005 2005 Primary production (1 000 tons) 450 449 451 449 464 461 457 444 LME 3 month average 2 726 2 528 2 682 2 444 2 069 1 846 1 796 1 893 LME realized (USD/ton) including hedges 2 430 2 462 2
Slide 69: Aluminium Metal – operating income
Aluminium Metal – operating income NOK million Q4 comments: Sourcing & Trading (S&T) 2 040 1 854 z Primary production 450 000 tons 203 Unrealized LME effects 1 620 224 480 Alu Metal (excl. unrealized LME and S&T) 181 1,721 z High aluminium prices 1,588 1 166 1 068 458 12 1,357 849 z Increased raw ma
Slide 70: Aluminium Products – operating income
Aluminium Products – operating income NOK million Q4 comments: Rolled Products Extrusion Automotive Other and eliminations z Rolled Products NOK 36 million 388 - Volumes improving, seasonal reduction in Q4 compared to Q3 258 347 149 230 - Somewhat increased margins 201 - Negative metal effect NOK 16
Slide 71: Variance analysis Aluminium
Variance analysis Aluminium NOK million 2006 Q4 2006 2006 10 751 1 417 2005 7 483 1 027 Variance adjusted EBITDA 3 268 390 - Margin 3 445 640 - Volume 925 255 - Fixed costs (900) (640) - Depreciation 275 75 - Trading and hedging ¹) (1 175) (365) - Unrealized LME effects 1 530 770 - Infrequent items
Slide 72: Variance analysis Aluminium Metal
Variance analysis Aluminium Metal NOK million 2006 Q4 2006 2006 9 134 1 353 2005 4 821 396 Variance adjusted EBITDA 4 313 957 - Margin 3 665 720 - Volume 80 - - Fixed costs (270) (360) - Depreciation (40) (60) - Trading & price hedging ¹) (1 175) (365) - Unrealized LME effects 1 800 830 - Infrequent
Slide 73: Variance analysis Aluminium Products
Variance analysis Aluminium Products NOK million 2006 Q4 2006 2006 1 715 1 2005 2 670 617 Variance adjusted EBITDA (955) (616) - Margin (130) (130) - Volume 845 255 - Fixed costs (630) (280) - Depreciation 315 140 - Unrealized LME effects (270) (60) - Infrequent items 210 710 - Other (55) (10) Varia
Slide 74: Variance analysis Rolled Products
Variance analysis Rolled Products NOK million 2006 Q4 2006 2006 1 354 178 2005 1 565 363 Variance adjusted EBITDA (211) (185) - Margin 190 (120) - Volume 270 105 - Fixed costs (630) (180) - Depreciation 95 40 - Infrequent items 100 155 Variance operating income 27 1 - Non-consolidated investees 23 8
Slide 75: Variance analysis Extrusion
Variance analysis Extrusion NOK million 2006 Q4 2006 2006 887 211 2005 867 208 Variance adjusted EBITDA 20 3 - Margin 195 165 - Volume 455 85 - Fixed costs (195) (190) - Depreciation 70 45 - Infrequent items (535) (60) - Other (35) (10) Variance operating income (44) 36 - Non-consolidated investees
Slide 76: Variance analysis Automotive
Variance analysis Automotive NOK million 2006 Q4 2006 2006 (436) (442) 2005 67 (66) Variance adjusted EBITDA (503) (376) - Margin (520) (180) - Volume 120 65 - Fixed costs 190 90 - Depreciation 160 60 - Infrequent items 635 605 - Other (10) 10 Variance operating income 573 650 - Non-consolidated inv
Slide 77: Variance analysis Hydro Polymers
Variance analysis Hydro Polymers NOK million 2006 Q4 2006 2006 1 542 748 2005 564 1 Variance adjusted EBITDA 978 747 - Margin 145 440 - Volume 935 315 - Fixed costs (65) (45) - Depreciation (60) (45) - Other 5 5 Variance operating income 960 669 - Non-consolidated investees (84) (8) - Interest incom
Slide 78: Investor Relations in Hydro
Investor Relations in Hydro t: +47 22 53 84 83 Ada Christiane Rieker Vice President m: +47 951 82 718 e: ada.christiane.rieker@hydro.com t: +47 22 53 24 55 Gudmund Isfeldt Investor Relations Officer m: +47 480 01 180 e: gudmund.isfeldt@hydro.com t: +47 22 53 92 80 Stefan Solberg Investor Relations O