Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Presentation (July 2006)
155 slides from Norsk Hydro Asa's investor presentation, July 2006
Slide 1: Investor Presentation – July 2006
Investor Presentation – July 2006 www.hydro.com
Slide 2: Table of contents
Table of contents Second quarter results 2006 5 – 18 Investor Presentation – July 2006 19 - Oil & Energy - General 40 – 65 - Oil & Energy - Commercializing a superior gas position 66 – 71 - Aluminium - General 72 – 93 - Additional information Hydro 94 – 98 Additional information 99 - Finance 99 – 11
Slide 3: 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 4: Use of non-GAAP financial measures/ Cautionary note in relation to 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 5: Second quarter results 2006
Second quarter results 2006 www.hydro.com
Slide 6: Highlights – second quarter
Highlights – second quarter z Continued strong earnings z Record-high oil and aluminium prices z Solid earnings for aluminium upstream and Extrusion z Good cost control in a challenging market z Strong financial position 6
Slide 7: Consolidated income statements
Consolidated income statements NOK million Q2 2006 Q1 2006 Q2 2005 Operating revenues 51 435 55 416 42 119 Operating income 14 640 17 867 11 255 Non-consolidated investees 372 316 246 Financial income (expense), net 919 759 (558) Other income (loss), net - - 233 Income before tax and minority intere
Slide 8: Operating income
Operating income NOK million Q2 2006 Q1 2006 Q2 2005 Exploration and Production 11 654 13 102 9 049 Energy and Oil Marketing 1 170 967 660 Eliminations 344 57 (262) Oil & Energy 13 168 14 126 9 447 Aluminium Metal 1 620 2 040 1 166 Aluminium Products 301 452 210 Other Activities 221 114 109 Corporat
Slide 9: Oil & Energy – highlights
Oil & Energy – highlights z Record oil price realized – USD 67.9 per boe z Oil and gas production – 537 000 boed z 8 new discoveries z Additional rig capacity secured z Ormen Lange/Langeled on track – 75 percent complete* * 30 June 2006 9
Slide 10: Oil & Energy – key figures
Oil & Energy – key figures Operational data Q2 2006 Q1 2006 Q2 2005 Oil and gas production (1 000 boe/day) 537 610 539 Realized oil price, USD/bbl 67.90 60.60 49.80 Realized oil price, NOK/bbl 422.20 403.50 317.90 Realized gas price, NOK/Sm³ 1.79 2.16 1.31 Exploration expense, NOK million 618 1 407
Slide 11: Aluminium activities – key figures
Aluminium activities – key figures Operational data Q2 2006 Q1 2006 Q2 2005 Realized aluminium price, USD/mt 2 368 2 146 1 842 Realized NOK/USD 6.38 6.87 6.61 Realized aluminium price, NOK/mt 15 107 14 743 12 176 Primary aluminium production, 1 000 mt 451 449 457 Operating income, NOK million Q2 200
Slide 12: Aluminium Metal – highlights
Aluminium Metal – highlights z Strong financial performance z Realized aluminium price USD 2 368 per mt z Production maintained despite closures at Hamburg and Høyanger z Alunorte 2 alumina expansion completed z Agreement to divest industrial site in Stade 12
Slide 13: Aluminium Metal – operating income
Aluminium Metal – operating income NOK million Sourcing & Trading (S&T) 2 040 z Primary production 451 000 mt Unrealized LME effects 203 1 620 Aluminium Metal (excl. unrealized LME effects and S&T) 480 181 z High aluminium prices 1 588 1 166 1 068 12 1 357 458 174 z Increased raw material and 341 1
Slide 14: Aluminium Products – highlights
Aluminium Products – highlights z Extensive portfolio review z Improved earnings but returns remain unsatisfactory z Impressive results and good order intake for Extrusion z Increased sales volumes, but weak margins for Rolled Products and Automotive z Magnesium casthouse in Porsgrunn closed 14
Slide 15: Aluminium Products – operating income
Aluminium Products – operating income NOK million Rolled Products Extrusion z Rolled Products NOK 225 million Automotive Other and eliminations - Increased volumes - Metal effect NOK 149 million in Q2 452 (NOK 349 million in Q1 2006) 279 371 210 301 z Extrusion NOK 148 million - Increased volumes -
Slide 16: Adjusted income
Adjusted income Second quarter 2006 NOK million Reported income Adjustments Adjusted income Exploration and Production 11 654 39 11 693 Energy and Oil Marketing 1 170 (252) 918 Eliminations 344 (344) - Oil & Energy 13 168 (557) 12 611 Aluminium Metal 1 620 213 1 833 Aluminium Products 301 49 350 Oth
Slide 17: Infrequent and other special items
Infrequent and other special items Second quarter 2006 NOK million Unrealized (gains)/losses oil and gas derivatives, Spinnaker Exploration and Production 163 Unrealized (gains)/losses on gas contracts Exploration and Production (124) Unrealized (gains)/losses on gas contracts Energy and Oil marketi
Slide 18: Hydro – priorities
Hydro – priorities z Capture value from strengthened international portfolio z Repositioning Aluminium Metal z Restructuring and portfolio adjustments Aluminium Products z Further strengthening of oil and gas resource base z Firm cost control and first-class project execution in a resource constrain
Slide 19: Investor Presentation – July 2006
Investor Presentation – July 2006
Slide 20: Energy and aluminium - two strategic industries
Energy and aluminium - two strategic industries z Global industries z Increasing demand for energy z Positive growth outlook for aluminium 20
Slide 21: Consistently delivering profitable growth
Consistently delivering profitable growth Oil and gas production Aluminium production 1 000 boe/day 1 000 tonnes 800 2 000 600 1 500 400 1 000 200 500 0 0 2001 2005 2010E 2001 2005 2010E 21
Slide 22: Key messages
Key messages z High earnings and strong financial position z Strong growth in Oil & Energy 2005-2010: 6% annual growth - Production target 2006 585 000 boed - Exploration - 14 discoveries in 2005* – 65% success rate - 14 discoveries in 1H’06 – 56% success rate - 60 wells planned in 2006 - 20-25 in N
Slide 23: High oil prices – improved aluminium prices
High oil prices – improved aluminium prices High oil price driven by strong demand and supply concerns Increased demand – Low inventories OPEC spare capacity at low levels Higher costs support increased prices million bbl/day $/boe $/tonne days 6 80 2 600 80 60 2 200 4 60 40 1 800 2 40 20 1 400 0 0
Slide 24: Financial overview 2005
Financial overview 2005 Operating revenues – NOK 175 billion Earnings after tax – NOK 16 billion Other 5% Other 13% Aluminium Products Aluminium 26% Oil & Metal Energy 12% 49% Oil & Aluminium Energy Metal 75% 20% Adjusted EBITDA – NOK 65 billion Capital employed – NOK 109 billion Aluminium Other Oth
Slide 25: Consolidated income statements
Consolidated income statements NOK million 2005 2004 Operating revenues 174 201 153 891 Operating income 46 432 31 847 Non-consolidated investees 619 629 Financial income (expense), net (1 890) 137 Other income, net 990 169 Income from continuing operations before tax and minority interest 46 152 32
Slide 26: Income from continuing operations
Income from continuing operations* By quarter 5 869 NOK million Gains from divestments 5 394 4 183 4 186 3 638 3 693 3 577 3 135 2 991 2 481 2 224 2 005 1 851 1 809 2003 2004 2005 2006 Accumulated 8 656 11 477 15 638 11 263 * Changes in accounting principles for fourth quarter 2005 resulted in a neg
Slide 27: Adjusted EBITDA
Adjusted EBITDA NOK million 22 769 19 337 17 108 17 000 15 852 15 533 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 65 493 42 106 27
Slide 28: Return on capital significantly improved
Return on capital significantly improved Return on average Capital Employed – RoaCE Adjustment for special events * 19.9% Actual 16.8% 13.6% 13.0% 8.4% 7.2% 2002 2003 2004 2005 * Special events include, 2004: write-downs in Aluminium and changes in tax regulation, 2005: write-downs in Aluminium and
Slide 29: Return on capital by business area
Return on capital by business area Return on average Capital Employed – RoaCE Oil & Energy Aluminium 32.7% Adjustment for Spinnaker Adjustment for write-downs Actual Actual 26,2% 23,4% 16,2% 11,6% 7.0% 6.0% * 4,7% 2,7% 3,5% 3,4% 2002 2003 2004 2005 2002 2003 2004 2005 * Includes unrealized losses on
Slide 30: Return on capital competitive with peers
Return on capital competitive with peers RoaCE RoaCE 35%% 35 12% Peer range * Peer range ** Hydro Oil & Energy Hydro Aluminium 30%% 30 10% 25%% 25 8% 20%% 20 6% 15%% 15 4% 10%% 10 2% 55%% 00%% 0% 2000 2001 2002 2003 2004 2005 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Peer range * Hydro Oil &
Slide 31: Improved capital efficiency at constant prices
Improved capital efficiency at constant prices Normalized RoaCE* 9.2% 7.5-8.5% z Assumptions: 8.2% - Oil price USD 25/boe - Aluminium price USD 1 500/mt - NOK/USD 7.0 6,3% - NOK/EUR 8.0 - Unrealized gain/loss on derivatives, gain/loss on divestments and restructuring charges are eliminated from norm
Slide 32: Strong financial position
Strong financial position Adjusted net debt/equity ratio * 0.67 0.60 0.44 0.50 0.38 0.34 0.31 0.21 0.11 1999 2000 2001 2002 2003 2004 2005 30 June 2006 * Interest-bearing debt + net pension liability (tax adjusted) + operating lease commitments (discounted) – cash and cash equivalents – short-term i
Slide 33: Capital allocation – upstream focus
Capital allocation – upstream focus NOK billion 41 * 2005 z Spinnaker transaction 30 z Other investments lower than NOK 25-30 planned 24 billion annually 2006 - 2010 z Oil & Energy - Projects on track - Increased exploration activity z Aluminium 2005 plan 2005 2006 plan - Scale down overall investme
Slide 34: Capital allocation 2006 - 2010
Capital allocation 2006 - 2010 40 E&P: Committed investments Aluminium investments E&P: Uncommitted investments 30 30 Annual investments NOK 25–30 billion 25 NOK 55-80 bn: Unncommitted/ 20 non-sanctioned E&P investments and Exploration expenditure* 10 NOK 25 bn: Aluminium NOK 45 bn: Committed E&P 0
Slide 35: Sanctioned projects 2005 – robust profitability
Sanctioned projects 2005 – robust profitability Oil price gives 10% real rate of return post tax* Troll West Operator IOR NCS Operator NCS Delta International Oseberg Sør Partner-operated NCS Tune Phase 3 Fram Øst Libya, H-field GoM, Lorien Tordis IOR Tyrihans Volve Norne K Templ. Ringhorne Øst 0 10
Slide 36: 2005 dividend NOK 4.40 per share
2005 dividend NOK 4.40 per share Dividend in NOK/share 4.00 4.40 2.20 2.00 2.10 1.90 2000 2001 2002 2003 2004 2005 Recalculated to reflect 5 for 1 share split effective 10 May 2006 36
Slide 37: Dividend policy
Dividend policy 30% payout ratio over time 61% z Dividend policy maintained 46% 44% z Planned payout per share in 2005 is in line with policy 35% 33% 33% 31% z Continued high commodity 26% prices support current 26% payout per share level 18% z Challenging to maintain a stable increase in dividend w
Slide 38: Competitive shareholder returns
Competitive shareholder returns Total shareholder return (TSR) 1 Jan 2000 - 2 Dec 2005 Hydro ENI BG Group Total ExxonMobil Chevron Shell BP Alcan Alcoa -50 % 0% 50 % 100 % 150 % 200 % 250 % Source: Datastream 2 Dec 2005, NYSE, USD 38
Slide 39: Competitive shareholder returns
Competitive shareholder returns Share price development 1 Jan 2006 - 20 July 2006 BG Group 32% Hydro 28% Statoil 24% Chevron 15% ExxonMobil 14% ConocoPhillips 11% Alcan 9% Shell 7% BP 7% ENI 3% Alcoa 1% Total 1% -6% RepsolYPF -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% Source: Yahoo Finance, NYSE, USD 39
Slide 40: Oil & Energy
Oil & Energy
Slide 41: The Oil & Energy portfolio 2005
The Oil & Energy portfolio 2005 Oil Gas Power Production Oil & gas 563 000 boed 398 000 boed 165 000 boed 10.7 TWh* ~ 9.4 bcm * Normal range of annual production: 7-11 TWh 41
Slide 42: Oil & Energy adjusted EBITDA
Oil & Energy Adjusted EBITDA NOK million 17 398 16 325 15 191 14 766 Eliminations Energy and Oil Marketing 12 416 Exploration and Production 11 967 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 33 722 42
Slide 43: Oil & Energy outlook and strategy
Oil & Energy outlook and strategy z Profitable production growth z Realize potential of strong portfolio z Strengthen resource base z Technological and operational leadership 43
Slide 44: Profitable production growth
Profitable production growth 1 000 boe/day 1 000 Historical performance Target Expected z 2006 target: 585 000 boed 8% CAGR* 6% CAGR** z 2010 expected: 750 000 boed 750 750 z Compound annual growth rate 563 585 - 2001-2008E: 8% - 2005-2010E: 6% 500 z Increased production outside Norway 250 0 2006E 2
Slide 45: New fields on stream 2006 - 2008
New fields on stream 2006 - 2008 Field Hydro peak production (boe/day) Peak year 2004 2005 2006 2007 2008 International Lorien 4 000 2006 Dalia 24 000 2007 Rosa 13 000 2008 Eastern Gulf development* 12 500 2008 Oseberg Vestflanken 12 000 2007 Oseberg South J Sentral 2 000 2009 Operato
Slide 46: Strong production growth based on attractive project portfolio
Strong production growth based on attractive project portfolio Oil price giving 10% real rate of return post tax* Oseberg S Operator IOR NCS Njord Operator Development Phase Oseberg Operator NCS Oseberg E International Troll Partner operated NCS Ormen Lange Tune Phase 2 Oseberg S J C Vilje Oseberg S
Slide 47: First-class project execution
First-class project execution Offshore projects last five years* Average project size** Total cost change % NOK billion Hydro: NOK 15 billion/project Hydro: 0% Hydro operator Other operators 0 5 10 15 20 -10 % 0% 10 % 20 % 30 % 40 % * 1998-2005: Hydro operated projects totalling USD 15bn delivered o
Slide 48: Ormen Lange / Langeled 75 percent complete
Ormen Lange / Langeled 75 percent complete z Norway’s largest industrial project. Largest gas development in Europe z Total investments: NOK 66 billion (2003 NOK) z Hydro 18 percent equity z Supply 20 percent of UK gas demand - Langeled South pipeline completed z Start production 1 October 2007 48
Slide 49: 2005: International breakthrough
2005: International breakthrough Russia Denmark Canada Iran Libya US Gulf of Mexico Nigeria Brazil Angola 49
Slide 50: Capturing US Gulf of Mexico potential
Capturing US Gulf of Mexico potential z Production Q2: 20 000 boed - Lorien on stream late April – 4 000 boed*, a deepwater field z 15-20 exploration wells in 2006 - First half: 7 exploration wells completed, 5 discoveries – 71% success rate z 443 leases – 60% deepwater z Seismic data – covering mos
Slide 51: Field development in US Gulf of Mexico
Field development in US Gulf of Mexico Shelf - Several gas fields - Short lead times Deepwater z Lorien - 30% interest Lorien - Start production - April 2006 - Annual peak production - 4 000 boed in 2006 Eastern Gulf z Eastern Gulf - Spiderman 18.33% Louisiana - San Jacinto 26.67% - Q 50% San Jacint
Slide 52: Petroleum production per quarter
Petroleum production per quarter 1 000 boe/day Oil Gas 615 610 596 591 584 589 569 552 539 541 537 514 484 489 166 173 147 176 156 178 142 184 208 430 442 123 154 112 116 422 415 169 396 406 399 405 402 391 385 372 373 368 2003 2004 2005 2006 Average 530 572 563 573 52
Slide 53: Production costs per barrel
Production costs per barrel NOK/boe Gas injection cost Production cost excluding gas injection 29.7 25.3 7.1 20.7 20.7 5.4 0.7 2.8 22.6 20.0 17.9 19.9 2003 2004 2005 2006 YTD Production in million boe 194 209 206 104 53
Slide 54: Strong exploration performance
Strong exploration performance 14 discoveries in 2005* – 7 in Norway Norway Denmark Iran Libya US Gulf of Mexico Angola 7 Spinnaker Exploration discoveries in 2005 * Excluding Spinnaker Exploration discoveries 54
Slide 55: Exploration competence developed on NCS
Exploration competence developed on NCS Discoveries on NCS 1985-2005 – Hydro has discovered 9 billion boe as operator Hydro discovered Ormen Lange in 1997 Million boe Hydro operator Other NCS operators Troll Oil Saga Petroleum 0 2 000 4 000 6 000 8 000 10 000 Reserves including 49 producing fields,
Slide 56: Increased exploration activity
Increased exploration activity Exploration spending in NOK billion 5.0 z Following up on strategic moves NOK 4-5 billion z About 60 wells planned in 2006 z Attractive exploration portfolio - Balanced risk 2.1 - Geography 1.4 2004 2005 2006 56
Slide 57: Oil & Energy – discoveries 2006
Oil & Energy – discoveries 2006 Exploration Q2 2006 Q1 2006 1H 2006 Exploration wells completed 14 11 25 Discoveries 8 6 14 Success rate – percent 57% 55% 56% Discoveries by area - Norway 1) 3 0 3 - US Gulf of Mexico 2) 2 3 5 - Libya 3) 3 3 6 z 6 wells drilling by end of second quarter 1) Norway – 3
Slide 58: Rig coverage provides flexibility
Rig coverage provides flexibility z Norway: - Exploration rig capacity secured to 2009 - Additional production drilling rig capacity secured - 2008 to 2011 – 3 rig years - Bideford Dolphin semisubmersible z Gulf of Mexico - Deepwater exploration drilling rig capacity secured - Mid-2007 to 2013 – 6 r
Slide 59: Positive outlook for Norwegian shelf
Positive outlook for Norwegian shelf z Strong production growth 2005-2010 - 20% higher production, increased share of gas z High near-term activity level - 15 new fields under development - About 40 exploration wells planned 2006-2007 z Interesting opportunities in northern areas 59
Slide 60: Exploring for new resources in all regions
Exploring for new resources in all regions z Participating in 40 exploration Barents wells in 2006-2007 Sea z Add profitable resources to producing fields Norwegian Sea z Still growth prospects in mature areas z Exciting frontier drilling in the Barents Sea and Norwegian Sea North Sea Exploration we
Slide 61: Exploration effort paying off
Exploration effort paying off z Discoveries - Norway – 7 in 2005 - Peon, Astero, Troll Brent Barents - Oseberg Sør B and J Sea - Stetind, Vigdis M5 - Denmark – 1 in 2005 - Hejre - Norway – 3 first half 2006 Norwegian Sea - PL 050 Apollo - PL 134 Morvin Stetind - PL 193 Valemon z New acreage secured
Slide 62: Technological and operational leadership
Technological and operational leadership z Cost-efficient, safe and smart operations z Driving innovation - Subsea technology - Advanced drilling - Increased oil recovery - Environmental technology 62
Slide 63: Drilling excellence drives value creation
Drilling excellence drives value creation z Early mover in drilling technology z 47 multilateral wells drilled with 76 branches z 50% of the world’s advanced multilateral wells z 88% of the world’s advanced offshore multilateral wells z First well with 6 horizontal branches drilled in Norway in 2006
Slide 64: Oil and gas reserves and resources
Oil and gas reserves and resources* Additional expected reserves and Million boe resources in existing portfolio 4 000 Expected reserves in fields in production and fields under development 3 000 2 000 1 000 0 Proven reserves year- Additional expected 2005E Production Added expected Additional expec
Slide 65: Additional expected resources in portfolio
Additional expected resources in portfolio Million boe Hydro share in fields and discoveries* International: Murzuq NC190 – Block 17 750 Under Operated Norway: Peon – Astero – Troll Brent – Osberg/Troll/Grane IOR evaluation Partner-op Norway: Snorre IOR – Lavrans – Eldfisk – Ekofisk International: H
Slide 66: Commercializing a superior gas position
Commercializing a superior gas position
Slide 67: Strong short-term ramp-up in gas production
Strong short-term ramp-up in gas production Maximum lifting and secure best value Gas production 1 000 boe/day 12% CAGR* 300 z 12% annual growth rate (2000-2010) 250 z Increasing from 9.4 to 16 bcm (2005-2010) 200 z Market development facilitates further growth 150 z Large gas reserves in the middle
Slide 68: Strong long-term demand for gas
Strong long-term demand for gas Bcm/year Europe* - Gas supply and demand UK - Gas production and demand 1000 140 Assumed prolongations from outside Europe Gas production - bcm annually Contracted from outside Europe Gas demand - bcm annually Production Europe ex. Norway 120 800 Production Norway Gas
Slide 69: Gas – an increasingly valuable commodity
Gas – an increasingly valuable commodity Hydro well positioned to capture this value USD per Boe 100 Brent NBP (National Balancing Point) - UK z Significant increase in 80 gas prices z Infrastructure in place 60 z High value “per barrel” 40 for the long term 20 Ormen Lange break even 0 2002 2003 200
Slide 70: Flexibility - increased value of gas portfolio
Flexibility - increased value of gas portfolio Norwegian Continental Shelf Strong reserve base Excellent Operator Basin Master St.Fergus Access to Infrastructure NBP* Easington*** Emden Bacton TTF** Zeebrugge/Hub Dunkerque PEG Gas Market Presence Long-term sales Spot sales Downstream marketing Swap
Slide 71: Ormen Lange
Ormen Lange Securing gas to an undersupplied UK z Langeled – Hydro a driving force to Ormen Lange route Ormen Lange Gas to the UK Langeled - Short lead times - Hydro links up NCS to UK supply gap - Increased flow from Hydro fields Frigg Heimdal - Increased profiling from Hydro fields Vesterled - Low
Slide 72: Aluminium
Aluminium
Slide 73: Aluminium outlook and strategy
Aluminium outlook and strategy z Growing demand for aluminium products z Increased costs – an industry challenge z Strategy shift for Hydro - Prioritize upstream investment and repositioning - Reduce downstream exposure – focus on cash generation z Roadmap to increased profitability 73
Slide 74: China is leading the demand growth
China is leading the demand growth Metal products consumption (primary and recycled based) Million tonnes 70 67 CAGR 2005-15 R CAG 4. 5% Rest of the World 4.6% 4 .0 – 60 CIS and E. Europe 6.4% 55 50 Other Asia 3.3% 44 40 Western Europe 2.3% 36 30 North America 2.5% 20 10 China 7.6% 0 2000 2005E 2010
Slide 75: Aluminium price
Aluminium price USD per metric tonne LME (3 month avg.) 3 000 Primary aluminium USD per LME forward London Metal Exchange metric tonne 2 800 Q2 2006 average 2 681 Q2 2006 end 2 630 2 600 2 400 Q1 2006 average 2 444 Q1 2006 end 2 471 2 200 Average 2005 1 900 2 000 1 800 1 600 1 400 1 200 2000 2002 20
Slide 76: Alumina spot price
Alumina spot price Percentage of aluminium LME 3 months price* $/tonne Percent 800 Spot alumina price % of LME 3 months aluminium price 30 600 20 400 10 200 0 0 1999 2000 2001 2002 2003 2004 2005 2006 * 21 July 2006: Aluminium LME 3m close 2505 USD/tonne, Alumina spot approximately 400 USD/tonne Sou
Slide 77: Alumina net balance
Alumina net balance 4.4 % average annual growth in demand Net Alumina balance (million tonnes) Required utilization Capacity increase 2005-2010 10 Committed Alumina projects Greenfield Excess smelter capacity China (Alumina eqv.) Required utilization rate Major decided projects (million t) 100% Chin
Slide 78: Aluminium portfolio
Aluminium portfolio 2005 1 000 tonnes Equity Medium/long term contracts Alumina * 744 1 082 Equity ** Electrolysis metal 1 826 Equity ** 3rd party Remelt Metal products 1 826 240 1 755 Extrusion & Rolled Automotive Downstream 953 694 * Aluminium equivalents (2 tonnes alumina per tonne aluminium) **
Slide 79: Capital allocation toward upstream
Capital allocation toward upstream Capital employed Capital expenditure 2005 2006-2010E Primary Metal Downstream Downstream 30% Primary 41% 36 % Metal 60% Metal Metal Products Products 10% 23% 79
Slide 80: Aluminium Metal and Aluminium Products adjusted EBITDA
Aluminium Metal Aluminium Products Adjusted EBITDA Adjusted EBITDA NOK million NOK million 3 000 3 000 2 775 Rolled Products Extrusion Automotive Other and eliminations 2 500 2 500 2 301 2 000 2 000 1 736 1 636 1 500 1 500 1 053 926 1 000 756 872 879 1 000 806 797 * 500 396 500 0 2005 2006 2005 2006
Slide 81: Increased costs – an industry challenge
Increased costs – an industry challenge Significant shift in industry cost curve* Cash cost (USD/t) z Energy - Oil and gas prices 2250 - Coal prices 2000 - CO2 emission trading 1750 2005 - Supply/demand for electricity 1500 2003 z Alumina 1250 2005 avg. 1375 1000 2003 avg. 1120 z Other raw materials
Slide 82: Aluminium power supply
Aluminium power supply z 2006 primary smelter power requirement 27 TWh - Long-term contracts: 23 TWh, Short-term supply: 4 TWh z 2006 estimated power cost increase of NOK 1.5 billion* - NOK 1.2 billion increase for upstream of which NOK 0.85 billion for Germany - 2007-2010: only limited price change
Slide 83: Hydro power costs on world average
Hydro power costs on world average German prices not competitive Power prices German electricity prices World smelter production 2005 €/MWh Million tonnes World average 6 26 USD/MWh Spot prices 70 Forward 31.12.05 5 60 4 50 3 40 30 2 20 1 10 0 0 0-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 40+ 2000
Slide 84: New projects strengthen primary production
New projects strengthen primary production Smelter project in Qatar z JV 50/50 signed - Hydro/Qatar Petroleum - 23 March 2006 z Hydro to market all metal - 585 000 tonnes per year z Expansion potential up to 1 200 000 tonnes per year z Attractive profitability z Expected start-up Q4 2009 Expansion 2
Slide 85: Increased alumina equity coverage at lower cost
Increased alumina equity coverage at lower cost Equity alumina production (bars) Alumina equity coverage 1 000 tonnes Percent 4 500 100 % 4 000 90 % 80 % 3 500 70 % 3 000 2 700 60 % 2 500 50 % 2 000 1 850 40 % 1 500 1 160 30 % 1 000 20 % 500 500 10 % 0 0% Est. weighted avg. 1998 2002 2006E 2010E cas
Slide 86: Improved relative smelter cost position
Improved relative smelter cost position World production 2005, 1 000 tonnes Cash cost 2005 (USD/t*) 2 250 2 000 1 750 Hydro 1 500 2005* Average: 1 375 USD per tonne 1 250 1 000 New capacity 2005-2010 Closures 2005-2010: 750 Alouette expansion 2005-2006 Hamburg closed end 2005 Qatalum greenfield expa
Slide 87: More competitive smelter portfolio
More competitive smelter portfolio Primary production, 1 000 tonnes 290 2 000 1 826 180 (110) (190) 2005 Closures Germany Søderberg closures Optimization Qatalum 2010E 2006* 2006 and 2009** 2006-2009 2009 * German closures: Hamburg (HAW) 40 000mt Q4’05, Stade 70 000mt end of December 2006 ** Søderbe
Slide 88: Repositioning enhances smelter portfolio
Repositioning enhances smelter portfolio Smelter geography Smelter size Europe Below 300 ktpy Outside Europe Above 300 ktpy 2 000 2 000 1 820 1 820 17% 33% 29% 43% 780 780 100% 83% 67% 100% 71% 57% 2000 2005 2010E 2000 2005 2010E All figures in 1 000 tonnes per year 88
Slide 89: Aluminium downstream activities
Aluminium downstream activities Total revenues 2005: NOK 46 billion Revenue split: Europe 74%, North America 16%, Others 10% Rolled Products Extrusion Automotive 43% 37% 20% 89
Slide 90: Downstream – focus on cash generation
Downstream – focus on cash generation Capital employed per business area 2005 - NOK 109 billion z Significant capital employed in Aluminium Other 5% z Unsatisfactory returns Aluminium Products 18% z Urgent measures downstream Oil & Energy - Reduce investments 52% - Focus on cash generation Aluminium
Slide 91: Roadmap to increased profitability
Roadmap to increased profitability Return on average capital employed – RoaCE 2010 target: 9% RoaCE* ~0.6% 9% ~1.4% Approx. 7% ~1.7% ~1.8% ~0.1% 2005E level Energy prices Other, net Downstream Metals Qatalum and 2010 contribution contribution Alunorte 3 Roadmap excludes price, market and one-time ef
Slide 92: Summary
Summary z Oil & Energy - 2005-2010: 6% annual production growth - 2006 target: 585 000 boed - Increased potential on Norwegian Continental Shelf - Strong international growth - Step up exploration further z Aluminium - Improve profitability – roadmap to profitability target - Reduced total investmen
Slide 93: Hydro – priorities
Hydro – priorities z Capture value from strengthened international portfolio z Repositioning Aluminium Metal z Restructuring and portfolio adjustments Aluminium Products z Further strengthening of oil and gas resource base z Firm cost control and first-class project execution in a resource constrain
Slide 94: Additional information Hydro
Additional information Hydro
Slide 95: The Hydro share
The Hydro share z 1 250 million shares Others 13% z 50 000 shareholders UK 8% The Norwegian State z Listed in 5 countries 43.8 % z Followed by 30 sell-side analysts Norway 17% z Market value NOK 210 billion USA 18% 95
Slide 96: A large international organization
A large international organization 33 000 professionals, 36 countries, 5 continents* Geography Business Area Other 15 % Other 26 % Norway Oil & Energy Brazil 35 % 10 % 1% China 1% Australia Aluminium 2% France 75 % Hungary 6 % USA Germany 2% 11 % 16 % 96
Slide 97: Building a stronger Hydro
Building a stronger Hydro z The Hydro Way is our platform z Leadership and competence development z International organization – diversity is key z Encouraging innovation and sense of urgency z Attracting new talents z Skills and experiences shared across Hydro 97
Slide 98: Safety
Safety Total reported injuries per million working hours (TRI) Rate 15 10 5 0 2000 2001 2002 2003 2004 2005 98
Slide 99: Additional information - Finance
Additional information - Finance
Slide 100: Indicative price and currency sensitivities 2006
Indicative price and currency sensitivities 2006 Income NOK million Net income Change before tax Oil price per barrel 1 100 325 1 USD Aluminium price per tonne 950 665 100 USD Income NOK million Net income Change before tax USD Oil & Energy 7 500 2 250 1 NOK USD Aluminium 2 800 1 900 1 NOK USD befor
Slide 101: Capital allocation
Capital allocation z Investments focused upstream z Reduced engagement downstream Aluminium - Minimum investment level - Cash positive z Business areas to demonstrate ability to fund capital projects with own cash flow 101
Slide 102: New investment criteria
New investment criteria z Oil & Energy USD 30-35 per barrel z Aluminium USD 1 600 - 1 700 per tonne z NOK/USD 6.50 102
Slide 103: Investment criteria – Oil & Energy
Investment criteria – Oil & Energy Maintaining capital discipline in volatile markets Oil price in USD 80 Brent Brent forward z Oil price 70 - Long-term: USD 30-35 per barrel 60 z Currency - NOK/USD 6.5 50 - NOK/EUR 8.0 40 z Hurdle rate - 10% IRR real after tax - IRR after tax above Hydro’s cost 30
Slide 104: Investment criteria – Aluminium
Investment criteria – Aluminium Maintaining capital discipline in volatile markets Aluminium price in USD 2 900 LME (3 month) LME forward z Aluminium price 2 700 - USD 1 600 - 1 700 per tonne 2 500 z Currency 2 300 - NOK/USD 6.5 - NOK/EUR 8.0 2 100 1 900 z Hurdle rate - 10% IRR real after tax 1 700
Slide 105: Secured prices for Spinnaker production
Secured prices for Spinnaker production 80 Oil - WTI (USD/bbl) 16 Gas - Henry Hub (USD/mmbtu) 70 14 Secured price 12 60 45.00 - 71.45 Secured minimum 10 50 price 7.5 8 40 6 30 4 20 2 10 0 2000 2002 2004 2006 2008 2000 2002 2004 2006 2008 Source: Ecowin Oil, WTI Crude Oil, Spot, USD, (Nominal) Source
Slide 106: Statement of cash flow
Statement of cash flow NOK million 2005 2004 Operating activities: Net income 15 638 12 560 Depreciation, depletion and amortization 16 086 16 898 Other adjustments (4 339) (1 734) Net cash provided by operating activities 27 385 27 724 Investing activities: Purchases of property, plant and equipmen
Slide 107: Positive cash-flow generation
Positive cash-flow generation 2003 - 2005 Oil & Energy Aluminium 127.9 63.1 59.5 23.2 2.4 14.3 2.4 0.2 5.5 9.0 EBITDA Tax Invest- Other Net cash EBITDA Tax Invest- Other Net cash ments 1) flow ments flow 1) of which acquisition of Spinnaker NOK 16.4 billion 107
Slide 108: Normalized RoaCE by business area
Normalized RoaCE by business area 2003 - 2005 Oil & Energy Aluminium Normalized Adjustment for Spinnaker Normalized Adjustment for write-downs 12.3% 12.6% 11.3% 10.0% 4.8% 4.2% 4.2% 1.7% 1.3% 2003 2004 2005 2003 2004 2005 108
Slide 109: Increasing payout to shareholders
Increasing payout to shareholders NOK million Dividend Buyback 1 589 1 684 5 500 5 021 1 599 1 155 763 555 2 711 2 811 2 470 2 576 2 094 1 718 1 718 1 818* 1 604 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Dividend allocated to the year for which the dividend was paid. The (actual) paymen
Slide 110: Earnings per share 2001 - 2005
Earnings per share 2001 - 2005 NOK* 12.54 9.02 6.50 5.50 4.56 2001 2002 2003 2004 2005 * Continuing operations. Recalculated to reflect 5:1 share split 10 May 2006 110
Slide 111: 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 44 837 Aluminium Metal 2 694 1 210 3 904 Aluminum Products (175) 1 033 858 Other acti
Slide 112: Infrequent and other special items 2005
Infrequent and other special items 2005 NOK million Unrealized (gains)/losses on oil and gas derivatives, Spinnaker Exploration and Production 440 Unrealized (gains)/losses on gas contracts Exploration and Production 187 Unrealized (gains)/losses on gas contracts Energy and Oil marketing 41 Unrealiz
Slide 113: Variance analysis Hydro
Variance analysis Hydro NOK million 1H 2006 2005 2006 42 106 65 493 2005 31 385 51 116 Variance adjusted EBITDA 10 721 14 377 - Prices and currency, Exploration and Production (E&P) 9 575 15 555 - Margin incl. currency effects ¹) 2 470 250 - Volume 1 940 85 - Fixed costs (445) 860 - Depreciation (1
Slide 114: Investments
Investments 1) NOK million 2005 2004 Exploration and Production 2) 33 846 10 606 Energy and Oil Marketing 2 333 1 460 Oil & Energy 36 179 12 067 Metals 1 792 4 244 Rolled Products 545 553 Extrusion and Automotive 1 425 1 398 Aluminium 3 762 6 194 Other activities 1 097 1 058 Corporate and eliminatio
Slide 115: Consolidated balance sheets
Consolidated balance sheets NOK million 30 June, 2006 31 March, 2006 31 December, 2005 Cash and cash equivalents 7 725 20 762 14 366 Short-term investments 12 669 3 850 10 970 Receivables and other current assets 46 165 47 292 32 220 Inventories 15 985 15 230 12 851 Non-current assets 155 487 156 58
Slide 116: Additional information - Oil & Energy
Additional information - Oil & Energy
Slide 117: Operating costs per boe
Operating costs per boe 120.5 NOK/boe 100.4 94.9 83.8 82.1 2006 YTD excl. 2003 2004 2005 2006 YTD Hydro GoM Exploration 8,1 6,0 8,9 19,5 10,2 Net transportation 6,8 8,3 9,4 12,2 12,4 Other cost/income 1,7 0,7 3,0 3,0 2,7 Deprec.& aband. 46,4 46,4 48,2 56,1 45,7 Gas for injection 0,7 2,8 5,4 7,1 7,3
Slide 118: Extending production growth through 2010
Extending production growth through 2010 Oil and gas production 1 000 boe/day 800 z Top-quartile growth continues - In oil - In gas - On NCS 600 - Internationally z Robust growth 400 - 85% sanctioned projects - Low break-even prices 200 z Growing international share - Higher after-tax value per barr
Slide 119: Average realized gas prices
Average realized gas prices NOK/Sm3 1.03 1.09 1.52 1.99 2.16 1.85 1.79 1.47 1.36 1.31 1.20 1.06 1.10 1.07 0.99 1.03 1.01 0.98 2003 2004 2005 2006 119
Slide 120: Average prices and exchange rates
Average prices and exchange rates Oil Oil Gas 500 75 USD/boe NOK/boe NOK/USD NOK/Sm3 NOK/boe USD/boe 2004 37.3 251.3 6.74 1.09 400 Q1 2005 46.4 291.7 6.29 1.47 50 Q2 2005 49.8 317.9 6.39 1.31 Q3 2005 60.4 390.6 6.47 1.36 300 Q4 2005 55.6 368.8 6.63 1.85 2005 53.1 342.2 6.44 1.52 200 Q1 2006 60.6 403
Slide 121: Exploration activity
Exploration activity Expensed and capitalized costs NOK million 1 500 1 250 1 000 750 500 250 Expensed 0 Capitalized - 250 - 500 2003 2004 2005 2006 Expensed Expensed old wells Refund insurance Iran Seismic Spinnaker 121
Slide 122: Oil production per field
Oil production per field Boe/day Share Q2 '06 Q1 '06 Q2 '05 Hydro Q2 '06 Hydro Q1 '06 Hydro Q2 '05 Oil and NGL/Condensate Grane 38.00% 222 215 151 84 82 57 Oseberg incl C 34.00% 129 137 134 44 47 46 Ekofisk 6.65% 358 342 363 24 23 24 Oseberg South 34.00% 68 70 59 23 24 20 Snorre 17.65% 106 159 170 1
Slide 123: Gas production per field
Gas production per field Boe/day Share Q2 '06 Q1 '06 Q2 '05 Hydro Q2 '06 Hydro Q1 '06 Hydro Q2 '05 Gas Troll A 9.78% 495 546 427 48 53 42 Sleipner Area 9.42% 193 260 261 18 25 25 Tune 40.00% 46 50 45 18 20 18 Åsgard 9.60% 162 179 177 16 17 17 Kvitebjørn 15.00% 107 113 60 16 17 9 US Gulf of Mexico 1)
Slide 124: Oil production per field 2005
Oil production per field 2005 Boe/day Oil and NGL/Condensate Share 2004 Hydro 2004 2005 Hydro 2005 Grane 38.00% 118 45 178 67 Oseberg incl C 34.00% 170 58 149 51 Snorre 17.65% 201 36 157 28 Troll B&C 9.78% 312 30 245 24 Oseberg South 34.00% 80 27 71 24 Ekofisk 6.65% 363 24 354 24 Gullfaks inclu. Sat
Slide 125: Gas production per field 2005
Gas production per field 2005 Boe/day Share 2004 Hydro 2004 2005 Hydro 2005 Troll A 9.78% 444 43 469 46 Sleipner Area 9.42% 225 21 248 23 Tune 40.00% 68 27 54 21 Oseberg incl C 34.00% 44 15 51 17 Åsgard 9.60% 173 17 176 17 Kvitebjørn 15.00% 10 2 73 11 Gullfaks inclu. Sat 9.00% 62 6 72 6 Ekofisk 6.65
Slide 126: Proved reserves of oil and gas
Proved reserves of oil and gas SEC definition Reserves 31.12.2004 – million boe 2 076 Reserve revisions 64 New reserves 59 Sales, purchases and swaps 52 Production 2005 (206) Reserves 31.12.2005 – million boe 2 046 Reserve replacement ratio and reserve life Reserve replacement ratio 2005 85% Reserve
Slide 127: International E&P activities
International E&P activities
Slide 128: Hydro US GoM: Attractive portfolio and a platform for growth
Hydro US GoM: Attractive portfolio and a platform for growth Key information z US GoM: 443 leases – 60% deepwater z Seismic data (2D,3D, PSDM) covering most of US GoM z 7 discoveries 2005 z 15-20 exploration wells to be spudded in 2006 z 42 producing leases: 4 deepwater and 38 on the Shelf z Field d
Slide 129: Internationalization focus
Internationalization focus Hydro is capitalizing on deep water competence Reserves (mm boe) Mexico representation office opened 4Q 2005 50 000 40 000 Hydro presence Yet-to-find reserves 30 000 Remaining reserves 20 000 10 000 0 US GoM Mexico Mauritania Brazil Nigeria Norway Indonesia India Canada Eq
Slide 130: US GoM – Hydro seismic data coverage
US GoM – Hydro seismic data coverage 3D seismic - 25,000 Blocks 2D seismic - 164,000 line Km 130
Slide 131: New opportunities in the GoM
New opportunities in the GoM Hydro blocks in yellow 2005 2006 Lease Expiration by Year 2007 Thunder Hawk & Eastern Gulf areas Front Runner area Lorien area 131
Slide 132: Canada
Canada Mature area opportunities in highly profitable portfolio z Existing portfolio - Hibernia and Terra Nova optimization - Hebron development solution z Exploration - Near infrastructure led exploration - Mature current licence portfolio z Assess risk/volume in immature basins z Acquiring resourc
Slide 133: Angola
Angola Diversified opportunities in profitable growth portfolio z Existing portfolio 17 4 - Moving ahead with Gimboa – Block 4 - Girassol and Jasmim optimizations - Dalia/Rosa development projects - 3rd production hub selection 18 z Exploration - Commercialize Block 4 discovery - Alternative potenti
Slide 134: Russia
Russia Legacy asset opportunities through long-term commitment z Existing portfolio - Further development of Kharyaga z Exploration - Pursuing business opportunities z Acquiring resources - Shtokman bid submitted - Cooperation with Gazprom on the development concept 134
Slide 135: Libya
Libya Existing exploration potential in long-term core area z Existing portfolio - Mabruk developments - Murzuq developments - Secured operatorship: NC-146 z Exploration - Exploration drilling - Co-operation with Wintershall - EPSA exploration round V z Acquiring resources - Actively pursuing additi
Slide 136: Iran
Iran Exploring for oil in key petroleum province z Exisiting portfolio Anaran - Anaran exploration acreage z Exploration - Well test Azar 2 – very positive results 2005 in Anaran field - Drilling Changuleh West well z Basis for long term development - Anaran field: Commerciality declared Q2 136
Slide 137: Brazil
Brazil Agreement to acquire 50% of Chinook field* z Chinook field - Shallow water - Heavy oil – 14 degrees API - 1.8 billion boe in place – STOIIP** - Expected recovery factor +20% z Leverage Troll and Grane world-class competence - Multilateral well technology * Awaiting government approval ** STOI
Slide 138: Exploration acreage secured worldwide
Exploration acreage secured worldwide NCS Barents Sea/ Russia Americas Middle East Africa Current E&P activity Frontier E&P activity 138
Slide 139: Additional information - Aluminium
Additional information - Aluminium
Slide 140: Alumina and power main smelter cost elements
Alumina and power main smelter cost elements World average cost structure* Hydro average cost structure* Other Other 13% 13% Casthouse Alumina 4% Casthouse 33% Alumina 7% Carbon 40% 10% Carbon 9% Labor 7% Labor 10% Power Power 26% 28% * CRU 2005, Site Operating Cost definition 140
Slide 141: Smelter site operating cost position
Smelter site operating cost position Weighted average, percent 7 13 10 28 100 9 Technology Regulatory Economy of scale 33 Contracts & Efficient work Tax frames processes Local cost level Alumina Carbon *) Power Labor **) Other ***) Cast-house Site operating costs cost Global market National/ Input f
Slide 142: Alumina business operating cost position
Alumina business operating cost position Weighted average, percent 4 11 12 Sustaining Costs 30 100 4 9 30 Bauxite Caustic Power Energy Labor Equipment Other Alumina * Business Soda operating cost * Alumina business operating cost USD 178/tonne in 2005 Source: 2005 CRU, Nominal US$. Note: By-products
Slide 143: Aluminium production 2005
Aluminium production 2005 32 million tonnes* Geography Company Other Alcoa North America 18% 12% 17% Alcan 10% Latin America 7% Western Europe Rusal Middle East 15% Other 9% 6% 56% Hydro CIS 6% 13% China BHP Billiton 4 24% % Chalco 3 % Source: CRU, HAM 143
Slide 144: Alumina production 2005
Alumina production 2005 61 million tonnes* Geography Company Africa Eastern Europe 1 % 3% Others Other Asia 27% 6% Western Alcoa/WMC Australia 23% Europe 27% 10% CIS 10% Chalco Hydro 2 % 11% North America Brazil Alcan 20% CVG 3 % 9% 11% China Sual 3 % 12% Glencore Rusal 5 % 7% Comalco 5 % BHP Billit
Slide 145: Industry increasingly exposed to market power prices
Industry increasingly exposed to market power prices Aluminium production* – power sourcing 1 000 tonnes 24 124 20 000 To be renewed Russia 15 000 10 000 Contract Unknown contract expiry 5 000 Captive 0 000 2005 2009 2013 2017 2021 2025 * Excluding China Source: CRU / Hydro 145
Slide 146: Aluminium Metal hedge programs
Aluminium Metal hedge programs 1) 2006 2007 2008 2006-2008 program – volume mt 2) 130 000 163 800 167 100 2006-2008 program – LME price USD/mt 2 140 2 300 2 200 2003-2007 program (Sunndal) – volume mt 3) 96 900 108 900 - 2003-2007 program (Sunndal) – LME price USD/mt 1 500 1 500 - 2003-2007 program
Slide 147: Aluminium – operational data
Aluminium – operational data Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Volumes and prices 2006 2006 2005 2005 2005 2005 2004 2004 2004 Primary production (1 000 mt) * 451 449 464 461 457 444 446 441 418 Total metal products sales excluding trading 856 869 736 741 835 802 735 752 776 (1 000 mt) LME realized (USD/mt
Slide 148: Primary aluminium production
Primary aluminium production 1 000 metric tonnes Plant Country Interest 2005 2004 2003 Sunndal Norway 100.0% 362 306 210 Karmøy Norway 100.0% 277 278 271 Årdal Norway 100.0% 233 222 215 Neuss Germany 100.0% 225 223 221 Slovalco* Slovakia 20.0% 159 157 27 Kurri-Kurri Australia 100.0% 152 155 156 Alou
Slide 149: Primary aluminium production per quarter
Primary aluminium production per quarter 1 000 mt 1472 1720 1826 900 457 461 464 441 446 444 449 451 415 418 381 388 360 343 2003 2004 2005 2006 Slovalco consolidated from Q1 2004 149
Slide 150: Germany 2006-2008
Germany 2006-2008 z Closures: HAW closed (40 000 mt), Stade to be closed end of 2006 (60 000 mt) z Neuss represents 12% of Hydro primary production. Positive margin locked in z Volumes and prices: USD 2 220/mt average price for 460 000 mt - 2006: USD 2 140/mt – 130 000 mt - 2007-2008: USD 2 250/mt –
Slide 151: Current Position – Power Market
Current Position – Power Market EEX Power market development. Baseload contract one year ahead. Avg. spot prices for the year Eur/Mwh 70 z Forward prices come down from all 60 time high above 60€/Mwh 50 45.98 z Forward power 51.50 prices dropped due 40 to adjustment in CO2 prices 29.49 30 28.52 20 2
Slide 152: Inventories – primary aluminium
Inventories – primary aluminium IAI and LME 1 000 tonnes LME (London Metal Exchange) 5 000 IAI (Producers' inventories) 4 000 3 000 2 000 1 000 0 1990 1995 2000 2005 Q1’06 Q2’06 Sources: IAI and LME 152
Slide 153: Investor Relations in Hydro
Investor Relations in Hydro
Slide 154: Investor Relations in Hydro
Investor Relations in Hydro t +47 22 53 32 73 Idar Eikrem Senior Vice President idar.eikrem@hydro.com m +47 950 28 363 t +47 22 53 24 55 Gudmund Isfeldt Investor Relations Officer gudmund.isfeldt@hydro.com m +47 480 01 180 t +47 22 53 35 39 Stefan Solberg Investor Relations Officer stefan.solberg@hy
Slide 155: Hydro is a Fortune energy and aluminium supplier
Hydro is a Fortune 500 energy and aluminium supplier with 33,000 employees in 40 countries. We are a leading offshore producer of oil and gas, the world's third largest aluminium supplier and a leader in the development of renewable energy sources. Our mission is to strengthen the viability of the c