Capital Markets Day 2004 - Hydro

Capital Markets Day 2004

Progress review and forward strategy

Tore Torvund, Executive Vice President2004-12-15

52358_12 2004 • 2 • Hydro Media

Status targets for 2004

CMD 2003 2004 Est.

z Production target 560 000 boe/day 570 000 boe/day

z Production cost NOK 24/boe NOK 22/boe

z F&D cost 1) USD 6/boe

z RRR 1) 120%

z CAPEX-level NOK 12 billion NOK 11 billion

z Exploration level NOK 1 billion NOK 1,3 billion

Under pressure

1) 3 year average, excluding purchase and sale

52358_12 2004 • 3 • Hydro Media

z Exploration and acquisition review

52358_12 2004 • 4 • Hydro Media

Increased predictability and performance

0

500

1000

1500

2000

2500

3000

1999 2000 2001 2002 2003 2004*Excluding license acquisition costs

Exploration expenditure*

0 %

20 %

40 %

60 %

80 %

100 %

1999-2003 2004**

Success rates

**Estimate as of 3rd quarter 2004

52358_12 2004 • 5 • Hydro Media

Value creation through acquisitions

z Technical resources added 04

z Angola: Block 4 z GoM: Champlainz GoM: Lorienz NCS: PL 248

z 50 000 boe/day production potential by 2008-10

z Robust profitability

52358_12 2004 • 6 • Hydro Media

z Exploration and acquisition reviewz Building on our competence

52358_12 2004 • 7 • Hydro Media

Strong expertise in the upstream business

E&P value chain

Explore Design Execute Operate

Commercial mindset

52358_12 2004 • 8 • Hydro Media

Revitalizing the benefits of long-term competence focusDiscovering oil-fields is increasingly difficult over time

-

10 000

20 000

30 000

40 000

50 000

60 000

0 50 100 150 200 250 300 350 400 450 500

No of discoveries

Mbo

e

NorwayAngola DeepwaterGoM Deepwater

Source: IHS

52358_12 2004 • 9 • Hydro Media

Revitalizing the benefits of long-term competence focusNCS: A solid competence basis for internationalization

Mboe recoverable reserves stand alone oil discoveries North Sea since 1990

Total discovered

Hydro participation

Hydro operated

>85%

0200

400600800

1 0001 2001 4001 600

1 8002 000

Total discovered

Hydro participation

Hydro operated

>70%

Source: Source: NPD – except Alvheim – Hydro estimate

52358_12 2004 • 10 • Hydro Media

Revitalizing the benefits of long-term competence focusAngola: Oil discovered in Block 4 - Sonangol P&P as operator

Block 17Block 4

Block 18

Block 34

Block 5

Block 16 Block 3

85 km

• Ambriz

• N´zeto

Luanda

Block 17Block 4

Block 18

Block 34

Block 5

Block 16 Block 3

85 km

• Ambriz

• N´zeto

Block 17 Block 4

Block 18

Block 34

Block 5

Block 16 Block 3

34

3

N

52358_12 2004 • 11 • Hydro Media

Revitalizing the benefits of long-term competence focusGoM: Commercializing valueable acreage acquired at low cost

Block 17

Interesting Hydro acreage

52358_12 2004 • 12 • Hydro Media

Revitalizing the benefits of long-term competence focusNew regions: High potential acreage with limited exposure

52358_12 2004 • 13 • Hydro Media

Transportation over long distances is key to future developments

Oseberg SS Distance: 7 km

52358_12 2004 • 14 • Hydro Media


TOGI Distance: 42 km

52358_12 2004 • 15 • Hydro Media


Ormen Lange Distance: 120 km

52358_12 2004 • 16 • Hydro Media


Штокмановского ГКМ Distance: 555 km

Ormen Lange – On track; a very good start!

File: I:\DATA1\HYDRO (OL)\PROGRESS REPORTING\[ORMEN TOTAL PROGRESS CURVE - REV 3.XLS]TOTAL ORMEN LANGE

WBS 37

Printed: 2004-11-10

Cut-off Date:31 Oct 2004

Oil & EnergyProjects

ORMEN LANGE / LANGELED PROJECTTOTAL ORMEN LANGE / LANGELED PROJECT

0

10

20

30

40

50

60

70

80

90

100

PRO

GR

ESS

% C

OM

PLET

E

PMS (at MCE)0,0 0,3 0,5 0,9 1,5 2,7 4,0 5,5 7,1 9,4 11,814,416,919,322,025,027,330,334,839,143,547,050,253,456,058,468,885,895,297,799,6100,

Original Sch. 0,0 0,3 0,5 0,9 1,5 2,7 4,0 5,6 7,1 9,5 12,114,717,319,822,525,627,830,935,240,244,247,751,054,256,859,269,486,095,397,999,6100,

Revised Sch. 0,0 0,3 0,5 0,9 1,5 2,7 4,0 5,6 7,3 9,1 12,014,918,020,823,726,529,332,537,542,345,749,653,557,060,062,574,087,795,598,099,6100,

Actual 0,0 0,3 0,5 1,1 2,0 2,8 4,0 5,6 7,0 9,2 11,915,0

Nov 03

Dec 03

Jan 04

Feb 04

Mar 04

Apr 04

May 04

Jun 04

Jul 04

Aug 04

Sep 04

Oct 04

Nov 04

Dec 04

Jan 05

Feb 05

Mar 05

Apr 05

May 05

Jun 05

Jul 05

Aug 05

Sep 05

Oct 05

Nov 05

Dec 05

Apr 06

Aug 06

Dec 06

Apr 07

Aug 07

Dec 07

Scale

change

Progress October

Planned Actual Delta

Well Delivery 10.9 % 11.1 % 0.2 %Offshore Project 17.5 % 17.4 % -0.1 %Onshore Project 8.5 % 8.4 % -0.1 %Total Ormen Lange 11.9 % 11.9 % 0.0 %

Northern Pipeline 8.0 % 8.4 % 0.4 %Sleipner Tie-in 19.4 % 19.8 % 0.4 %Southern Pipeline 33.4 % 34.0 % 0.6 %Landfall & Terminal UK 7.2 % 5.1 % -2.1 %Total Langeled 19.8 % 20.3 % 0.5 %

Total Project 14.9 % 15.0 % 0.1 %

This period

52358_12 2004 • 18 • Hydro Media

Long-term IOR focus and cost efficiency creates sustainable results

Early mover in gas injection

52358_12 2004 • 19 • Hydro Media


Global leader in multilateral wells

52358_12 2004 • 20 • Hydro Media


050

100150200250300350400450

1990-1997

1998 1999 2000 2001 2002 2003

Mboe accumulatedHydro share (Revision of previous estimates)

Robust bookings of proven reserves

52358_12 2004 • 21 • Hydro Media


Source: McKinsey 2003, operators in Norway and UK

2002

Hydro

0 10 20 30 40 50

Total TQ gap (%)

2002

Hydro

0 10 20 30 40 50

Total TQ gap (%)0 10 20 30 40 50 60

Top quartile (TQ)

2003

Total TQ gap (%)

Hydro

0 10 20 30 40 50 60

Top quartile (TQ)

2003

Total TQ gap (%)

Hydro

Hydro

0 10 20 30 40 50

2001

Total TQ gap (%)

Hydro

0 10 20 30 40 50

2001

Total TQ gap (%)

Combined with top quartile cost efficiency

52358_12 2004 • 22 • Hydro Media

Commercial mindset creating value in all parts of the value chain

Block 4 in AngolaOur co-operation with Sonangolyielding results through our jointefforts to commercialise the block 4 discovery

Explore

ShtokmanovskoyePotential role as key partner through long-term focus and technological edge

Design

OL contracts in placeHaving a clear and consistent contracting strategy is key to effective project execution

Execute

Grane – Oseberg blendBlending Grane oil into Oseberg oil increases the value of Granewithout reducing Oseberg

Operate

52358_12 2004 • 23 • Hydro Media

z Exploration and acquisition reviewz Building on our competencez Basis for future production growth

52358_12 2004 • 24 • Hydro Media

Continued strong production growth1 000 boe/day

0

100

200

300

400

500

600

700

800

1998 1999 2000 2001 2002 2003 2004** 2005E 2006E 2007E 2008E

Oil NCS Oil Int Gas 8% CAGR*

8% average annual growth*

*Compound Annual Growth Rate, 2001 baseline**2004 numbers as communicated on Capital Markets Day 2003

52358_12 2004 • 25 • Hydro Media

Hydro share boe/day

Development PDO submittal Start production�

�

Dalia 22 000

Njord gas phase 7 500Oseberg East drilling solutions 6 500

Norne Satellites 7 000

Kharyaga 10 000

Murzuq

Rosa

Ormen LangeOseberg VestflankenOseberg South J

Visund gas phase

Kvitebjørn

Kristin

5 000 (A+D

fields)13 000

70 00014 000

7 000

18 000

25 000

28 0002001

��

�

�

��

�

�

�

�

NC

S no

n-op

erat

orN

CS

oper

ator

Inte

rnat

iona

l

2002 2003 2004 2005 2006 2007

�

�

��

� �

�

New fields on stream 2004 – 2007

�

�

�

�

�

52358_12 2004 • 26 • Hydro Media

Strong production growth based on attractive project portfolioOil price giving 10% real rate of return post tax**

Brent USD/bbl

0 5 10 15 20 25

Skinfaks/RimfaksÅsgard Q-project

Norne SatellitesAngola - Rosa

Libya - Great MabrukLibya - B-field

Njord Gas ExportOseberg S J

Vilje*Oseberg S J C

Tune Phase 2Troll

Oseberg EOseberg

NjordOseberg S

*PDO not submitted** Calculations made based on USD/NOK exchange rate 8

Operator IOR NCSOperator NCSInternationalPartner operated NCS

52358_12 2004 • 27 • Hydro Media

z Exploration and acquisition reviewz Building on our competencez Basis for future production growthz Production growth beyond 2008

52358_12 2004 • 28 • Hydro Media

Sources of longer term production growth

Existing portfolio

Develop assets in portfolioIncrease oil/gas recovery

ExplorationImproved predictabilityIncreased focus

Acquiring resourcesResults emergingCapital discipline

Illustrative levels1000 boe/day

Short Medium Long

Existing

Exploration

Acquiringresources

52358_12 2004 • 29 • Hydro Media

NCS Existing portfolio:Main operated core area

Troll

Oseberg Sør

Brage

OsebergOseberg ØstVestflanken

Tune

Fram

Bergen

StureKollsnes

Haugesund

Grane

Heimdal

Vale

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

52358_12 2004 • 30 • Hydro Media


Troll

Oseberg Sør

Brage


Tune

Fram

Bergen

StureKollsnes

Haugesund

Grane

Heimdal

Vale

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

0

2

4

6

8

10

2000 2003 2006 2009 2012 2015 2018

Increased gas export Oseberg

BCM gas export from Oseberg

52358_12 2004 • 31 • Hydro Media


Troll

Oseberg Sør

Brage


Tune

Fram

Bergen

StureKollsnes

Haugesund

Grane

Heimdal

Vale

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

0

100

200

300

400

500

600

700

800

Significant IOR potential remaining

Oseberg EOseberg Oseberg S Brage

Remaining mobile hydrocarbons Mboe Hydro share in fields

52358_12 2004 • 32 • Hydro Media


Troll

Oseberg Sør

Brage


Tune

Fram

Bergen

StureKollsnes

Haugesund

Grane

Heimdal

Vale

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

Several development projects going forward

5 km5 km

Oseberg South

Oseberg

G-Central

West-flank

S1N1

J-Structure

Tune phase 2

Tune phase 3 Delta

52358_12 2004 • 33 • Hydro Media


Troll

Oseberg Sør

Brage


Tune

Fram

Bergen

StureKollsnes

Haugesund

Grane

Heimdal

Vale

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

Hild

Veslefrikk

Huldra

Friggområdet

Odin

Nordøst FriggFrigg

Øst Frigg

Frøy

ByggveSkirne

Peik

Jotun

Significant near infrastructure led exploration potential identified

Brage

Troll

Oseberg C

Oseberg Sør J Structure

K Structure

Tune

Oseberg Øst

Oseberg Field Centre

BrageBrage

Troll

Oseberg C

Oseberg Sør J Structure

K Structure

Tune

Oseberg Øst

Oseberg Field Centre

52358_12 2004 • 34 • Hydro Media

NCS Exploration:High risk/reward potential going forward

z Several high potential/high risk wells from north to south

z High equity

z Testing different plays and areas

z 5 to 10 wells in 2005-2007

52358_12 2004 • 35 • Hydro Media

Canada:Mature area opportunities in highly profitable portfolio

Existing portfolioHibernia and Terra Nova optimizationHebron development solution

ExplorationNear infrastructure led explorationMature current licence portfolioAssess risk/volume in immature basins

Acquiring resourcesIncrease technical resources in the Grand Banks area

52358_12 2004 • 36 • Hydro Media

Angola:Diversified opportunities in profitable growth portfolio

Existing portfolioGirassol and Jasmim optimizationsDalia/Rosa development projects 3rd production hub selection

ExplorationCommercialize Block 4 discoveryAlternative potential in Block 34New opportunities with Sonangol P&PSignificant mid-sized prospect potential

Acquiring resourcesAdditional opportunities based on proven reserves

Dalia FPSO

52358_12 2004 • 37 • Hydro Media

Russia:Legacy asset opportunities through long-term commitment

Existing portfolioFurther development of Kharyaga

ExplorationPursuing business opportunities

Acquiring resourcesCo-operation with Gazprom on thedevelopment concept for theShtokman field

52358_12 2004 • 38 • Hydro Media

Libya:Existing exploration potential in long-term core area

Existing portfolioMabruk developmentsMurzuq developments

ExplorationCo-operation with Wintershall Upcoming EPSA IV exploration rounds

Acquiring resourcesActively pursuing additional value creating growth opportunities

52358_12 2004 • 39 • Hydro Media

Iran:Exploring for oil in key petroleum province

Exisiting portfolioNo assets under development or in production as of yet

ExplorationAzar well with positive progress Khoramabad contract bid submitted

Acquiring resourcesYadavaran bid submitted

Azar Well

Anaran drilling rig

52358_12 2004 • 40 • Hydro Media

Gulf of Mexico:Commercial mindset and deep-water competence

Existing portfolioLorien developmentChamplain evaluations

ExplorationSuccessful lease salesOperator of 21 blocksHigh grade acreage for drilling

Acquiring resourcesActively pursing additional value creating growth opportunities

Champlain Lorien

52358_12 2004 • 41 • Hydro Media

z Exploration and acquisition reviewz Building on our competencez Basis for future production growthz Production growth beyond 2008z Downstream positioning for upstream growth

52358_12 2004 • 42 • Hydro Media

Becoming a key gas supplier for Europe

0

100

200

300

400

500

600

700

800

2002 2005 2008 2011 2014 2017 2020 2023

bcm

Norway Other ProductionContracted Assumed prolongationsDemand

Source: Global Insight Supply and Demand Report June 2004, MPE Facts 2004* Demand in 22 European countries. Excludes Turkey, FSU and Balkan.

Europe* -Gas supply and demand

0

20

40

60

80

100

120

1995 2000 2005 2010 2015 2020 2025bc

m

Production Demand

UK Gas production and demand

0

100

200

300

400

500

600

700

800

2002 2005 2008 2011 2014 2017 2020 2023

bcm

Norway Other ProductionContracted Assumed prolongationsDemand

Source: Global Insight Supply and Demand Report June 2004, MPE Facts 2004* Demand in 22 European countries. Excludes Turkey, FSU and Balkan.

Europe* -Gas supply and demand

0

20

40

60

80

100

120

1995 2000 2005 2010 2015 2020 2025bc

m

Production Demand

UK Gas production and demand Strong long term demand for gas

52358_12 2004 • 43 • Hydro Media


Market prices for equity gas are looking strong

0

1

2

3

4

5

6

7

2000 2001 2002 2003 2004 2005 2006 2007 20080

5

10

15

20

25

30

35

40

NBP German import**

USD/ MMbtu p/th

Note: German import price estimateSources: Argus 19 Nov 2004; GO and LSFO forwards 19 Nov 2004

Forward prices gas

Ormen Lange cost to UK

52358_12 2004 • 44 • Hydro Media


Piped gas to Europe is competitive in the future

0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50

Qatargas 2 (LNG)

West of Shetlands

Yamal-Nenets

Algeria LNG

Ormen Lange

Norway CNS*

$/mmbtu

Source: Wood Mackenzie (November 2002); Hydro

*New Norway Central North Sea

Cost of Gas delivered to NBP (UK)

52358_12 2004 • 45 • Hydro Media


0 5 10 15 20 25 30

Hydro

Statoil

BHPB

Repsol

Shell

BP

Eni

BG

Total

ChevronTexaco

Occidential

ConocoPhillips

ExxonMobil

Amerada Hess

PetroCanada

Marathon

Reserve life (years)

Source: Deutsche Bank, Major Oils 2004

Hydro’s gas position is the strongest among peers

52358_12 2004 • 46 • Hydro Media


0

2

4

6

8

10

12

14

16

2003 2004 2005 2006 2007 2008

bcm

Strong growth in equity gas production

Existing long term commitments(expected take) and uncommitted volumes

52358_12 2004 • 47 • Hydro Media


Strong positions in infrastructure gives high flexibility

NCS

Emden

Dunkirk

Bacton

St.Fergus

Zeebrügge

NCS

Emden

Dunkirk

Bacton

St.Fergus

Zeebrügge

NCS

Emden

Dunkirk

Bacton

St.Fergus

Zeebrügge

NCS

Emden

Dunkirk

Bacton

St.Fergus

Zeebrügge

52358_12 2004 • 48 • Hydro Media


Marketing system in place for sale of uncommitted volumes

50% 50%

35% 65%

52358_12 2004 • 49 • Hydro Media

z Exploration and acquisition reviewz Building on our competencez Basis for future production growthz Production growth beyond 2008z New energy focus

52358_12 2004 • 50 • Hydro Media

Drivers for the development of new energy

Global CO2 emissions

0

10,000

20,000

30,000

40,000

2002 2030

Oil Gas Coal

+ 62%

Source: IEA, World Energy Oulook 2004

Environment

MtOil production

0

20

40

60

80

100

120

2002 2030

OPEC M.-East OPEC OtherNON OECD OECDUnconventional oil Processing gains

Security of supply

+ 83%

Mbbl/d

52358_12 2004 • 51 • Hydro Media

Hydros focus on new sources of energy

52358_12 2004 • 52 • Hydro Media

Main messages

z Performing on key operational targets for 2004

z Delivering results from our revised exploration and acquisition strategy

z Extending our 8% growth target through 2008

z Maintaining capital discipline in positive but aggressive markets

z Setting ambitious targets for the future

52358_12 2004 • 53 • Hydro Media

Targets for 2005

z Production target 575 000 boe/day

z Production costs NOK 24/boe

z CAPEX-level NOK 16 billion

z Exploration level NOK 2 billion

52358_12 2004 • 54 • Hydro Media

Forward-looking statements/use of non-GAAP financial measures

In order to utilize the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, Hydro is providing the following cautionary statement: This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and certain of the plans and objectives of the Company with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. The actual results and developments may differ materially from those expressed or implied in the forward-looking statements due to any number of different factors. These factors include, but are not limited to, changes in costs and prices, changes in economic conditions, and changes in demand for the Company's products. Additional information, including information on factors which may affect Hydro'sbusiness, is contained in the Company's 2003 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission.

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 comparable GAAP financial measure and a reconciliation between the non-GAAP and GAAP measures. This information can be found in Hydro’s earnings press releases, quarterly reports and other written communications, all of which have been posted to Hydro’s website (www.hydro.com).

52358_12 2004 • 55 • Hydro Media

Hydro is a Fortune 500 energy and aluminium supplier founded in 1905, with 36,000 employees in nearly 40 countries. We are a leading offshore producer of oil and gas, the world's third-largest integrated aluminium supplier and a pioneer in renewable energy and energy-efficient solutions. As we look forward to our next 100 years, we celebrate a century of creating value by strengthening the viability of the customers and communities we serve

Eivind Reiten, President and CEO2004-12-15


52358_1 12 2004 • 2 • Hydro Media

Adapting to a volatile business climate

USD/tonne USD/bbl

Aluminium price Oil price

10

15

20

25

30

35

40

45

1993 1995 1997 1999 2001 2003 20051000

1200

1400

1600

1800

2000

1993 1995 1997 1999 2001 2003 2005

52358_1 12 2004 • 3 • Hydro Media

Adjusted hurdle rates

z Oil & Energy USD 25 per barrelz Aluminium USD 1500 per tonnez USD/NOK 7

z Robustness test USD 20 per barrel USD 1400 per tonne

52358_1 12 2004 • 4 • Hydro Media

Consistently delivering profitable growth

0

250

500

750

1998 2003 2008E0

500

1000

1500

2000

1998 2003 2009E

Oil and gas production Aluminium production1 000 boe/day 1 000 tonnes

52358_1 12 2004 • 5 • Hydro Media

Strong financial performance

31.7

38.6

23.4

29.3

37.9

33.4

33.8

2001 2002 2003 2004

Actual Normalized Actual Jan-Sep

Adjusted EBITDA from continuing operations

EBITDA – NOK billion

52358_1 12 2004 • 6 • Hydro Media

4.6%

6.3% 6.0%

7.5-8.5%

2001 2002 2003 2006

Normalized Target range (normalized)

Targeting improved returns

z Volumesz Fixed costsz Margins

Continuing operations

Normalized ROACE

52358_1 12 2004 • 7 • Hydro Media

0% 100% 200%

Royal DutchChevron Texaco

ExxonMobilBP

Shell

BGAlcoaAlcanTotal

Hydro

Delivering shareholder value

Source: Datastream Dec 8, 2004

Total shareholder return since Dec 31, 1998

New York Stock Exchange, USD

52358_1 12 2004 • 8 • Hydro Media

Energy and aluminium - two strategic industries

z Global industriesz Increasing demand for energyz Positive growth outlook for aluminium

52358_1 12 2004 • 9 • Hydro Media

Developing our oil and energy business

z Revised international strategy bearing fruitz Stepping up exploration activityz Increasing recovery from existing assetsz Leveraging our strong gas positionz Continuing cost-effective operationsz Preparing for the future in renewables and hydrogen

52358_1 12 2004 • 10 • Hydro Media

New international projects

z Lorienz Champlainz Angola Block 4

52358_1 12 2004 • 11 • Hydro Media

Leading the way in aluminium

z Developing next-generation primary capacity - location and sizez Attacking the existing cost basez Selective growth downstream

52358_1 12 2004 • 12 • Hydro Media

z Giant smelter with optimal locationz Leveraging Hydro’s core competencies

z Electricityz Large scale project executionz Technology and global market position

z Building on 35 years of cooperation in Qatar

World-class aluminium project agreed

52358_1 12 2004 • 13 • Hydro Media

Building on competitive strengths

52358_1 12 2004 • 14 • Hydro Media




52358_1 12 2004 • 15 • Hydro Media


John Ottestad, Executive Vice President and CFO2004-12-15


Financial perspective

52358_2 12 2004 • 2 Hydro Media


z Strong operational performance

z Strong financial position

z Robust and profitable investment portfolio

z Competitive shareholder returns

52358_2 12 2004 • 3 Hydro Media

Positive development in earnings

33.4 31.7

38.6 37.9

2001 2002 2003 2004

Actual Actual Jan-Sep

Adjusted EBITDA from continuing operationsJan-Sep


52358_2 12 2004 • 4 Hydro Media

Improvement driven by internal factors

33.4 31.7

38.6

23.4

29.3

33.8

37.9

2001 2002 2003 2004


z Normalization assumptions- Oil price $25- Aluminium price $1500- USD/NOK 7- EUR/NOK 8

z Restructuring charges and gain/loss on divestments are eliminated from normalized figures

z Volumes and margins are not normalized

Adjusted EBITDA from continuing operations


Jan-Sep

52358_2 12 2004 • 5 Hydro Media

Delivering volume growth

272

339

413 421480

530570

1998 1999 2000 2001 2002 2003 2004E

Petroleum production Primary aluminium production

Slovalco consolidated from 2004

736 746 762 785

1 253

1 4731 600

1998 1999 2000 2001 2002 2003 2004E

1000 boe/day 1000 tonnes

52358_2 12 2004 • 6 Hydro Media

1 000

1 600

2 350

2 800

4Q02 2Q03 4Q03 2004E

AluminiumMagnesium

Delivering cost reductions

24.122.6

20.7 20.0

2001 2002 2003 2004 Jan-Sep

Petroleum production cost Aluminium improvementsNOK/boe NOK million

52358_2 12 2004 • 7 Hydro Media

Delivering profitable projects

z Attractive project portfolio- Meeting high return requirements

z Excellent project execution - A key value driver- Basis for future profitability- Important for access

to new opportunities

z Strong track record- All recent projects completed

within time and capex frames

13.8 13.915.5 15.9 15.8

18-19

1999 2000 2001 2002 2003 2004E

Investments for continuing operations, excluding major acquisitions and effects of changes in accounting principles.

Capital expenditureNOK billion

52358_2 12 2004 • 8 Hydro Media

2.7%

0.9%

4.7%

2.8%4.1%

5.9%

2001 2002 2003 2004


13.1%

11.6%

16.2%

11.0%

8.9%8.1%

14.5%

2001 2002 2003 2004


Improving capital efficiencyReturn On Average Capital Employed – business areas

Oil & Energy Aluminium

Jan-Sep Jan-Sep

52358_2 12 2004 • 9 Hydro Media

Improving capital efficiency

8.4%

7.2%7.5%

4.6%

6.3% 6.0%

9.5%

2001 2002 2003 2004


Return On Average Capital Employed – group level

Continuing operationsJan-Sep

52358_2 12 2004 • 10 Hydro Media

4.6%

6.3% 6.0%

7.5-8.5%

2001 2002 2003 2006

Normalized Target range (normalized)

Targeting improved returns

z Volumesz Fixed costsz Margins


Normalized ROACE

52358_2 12 2004 • 11 Hydro Media

Strong EUR and NOK a challenge

z Relative cost position impaired for European smelters

- Main trigger for write-down of German smelters

z Negative margin impact for European downstream operations

z Not subject to normalization:- Downstream margins- Translation of USD based earnings

0.8

0.9

1.0

1.1

1.2

1.3

1.4

1999 2000 2001 2002 2003 2004

EUR/USD since 1999

Weakened competitiveness of European operations

52358_2 12 2004 • 12 Hydro Media

Indicative price and currency sensitivities 2005

1 NOK3,7109,750USD before financial items

1 NOK(1,705)(3,100)USD financial items 2)

2,005

1,9601,750

310560

After tax

1 NOK6,650USD Net income

1 NOK1 NOK

7,2502,500

USD Oil & EnergyUSD Aluminium

1 USD100 USD

1,150800

Oil price per barrelAluminium price per tonne

ChangeBefore taxNOK million

1)

Based on 2004 prices and currency

1) Based on average 2004 prices and expected business volumes for 2005: Oil 38 USD/bbl, Aluminium 1,700 USD/tonne and NOK/USD 6.52) USD sensitivity calculated based on long-term debt denominated in USD and net USD amounts sold forward on long-term forward currency

contracts. Cash positions denominated in USD, short-term debt denominated in USD and net USD amounts sold forward on short-term forward currency contracts are excluded.

52358_2 12 2004 • 13 Hydro Media






52358_2 12 2004 • 14 Hydro Media

Sources and uses of cash

NOK billion

2002 2004Jan-Sep

2003

* Net cash from discontinued operations (Agri) included

0

10

20

30

40

Sources Uses Sources Uses Sources Uses

DividendsBuybackDebt (net)AcquisitionsInvestmentsDisposals*Operations

52358_2 12 2004 • 15 Hydro Media

Strong financial position

0.67

0.44

0.34

0.60

0.38

0.12

1999 2000 2001 2002 2003 2004Q3

z Maintain current credit rating - S&P: A- Moodys: A2

z Secure financial preparedness for potential strategic opportunities

z Strong balance sheet allows for variance in earnings due to cyclicality

Î Target debt/equity ratio 0.5

Debt/equity ratio

52358_2 12 2004 • 16 Hydro Media






52358_2 12 2004 • 17 Hydro Media

Capital and exploration expenditure

20 20

24

2004 plan 2004 estimate 2005 plan

Oil & Energy Exploration Aluminium Other

NOK billion


52358_2 12 2004 • 18 Hydro Media

Oil & Energy growth from attractive projects

z Generating above 10% IRR after tax at USD 16/bbl- Grane- Kvitebjørn- Kristin- Dalia

z All Hydro-operated projects on time and costz Ormen Lange – the next step

52358_2 12 2004 • 19 Hydro Media

Aluminium growth from attractive projects

z Generating above 10% IRR after tax at USD 1400/tonne- Sunndal- Alouette- Alunorte

z All projects on time and costz Qatar – the next step

52358_2 12 2004 • 20 Hydro Media

Investment criteria

z Strategic fit

z Hurdle rate 10% real IRR after tax

z Mid-cycle price assumptions- Oil $25 per barrel- Aluminium $1500 per tonne- USD/NOK 7- Aligned with business

planning assumptions

z Testing robustness at $20 / $1400

10

15

20

25

30

35

40

45

1990 1995 2000 2005 2010 2015 2020

HurdleAverageForwardHistorical

Oil price

USD-04/bbl

Capital discipline – basis for future profits

52358_2 12 2004 • 21 Hydro Media

Investment criteria

z Strategic fit





1 200

1 400

1 600

1 800

2 000

2 200

1990 1995 2000 2005 2010 2015 2020

HurdleAverageForwardHistorical

Aluminium price

USD-04/tonne


52358_2 12 2004 • 22 Hydro Media

Investment criteria

z Strategic fit





5

6

7

8

9

10

1990 1994 1998 2002 2006 2010

HistoricalAverageHurdle

USD/NOK


52358_2 12 2004 • 23 Hydro Media






52358_2 12 2004 • 24 Hydro Media

NOK

7.07.5 7.5

8.0

9.510.0

10.511.0

1996 1997 1998 1999 2000 2001 2002 2003

Dividend policy

z A steady development in line with the growth in the company’s results

Dividend per share

52358_2 12 2004 • 25 Hydro Media

Dividend policy


z 30% payout ratio over time

26%33%

46%

58%

18%

33% 31%27%

1996 1997 1998 1999 2000 2001 2002 2003

1 year 5 years Target 30%

Payout ratio

52358_2 12 2004 • 26 Hydro Media

Dividend policy



z Buyback of shares – a supplement when high earnings

- New authorization of 10 million shares approved 1 December

NOK million

1604 1718 17182094

2470 2576 2711 2811

1599

763

1155555

1684

1997 1998 1999 2000 2001 2002 2003 2004

Dividend Buyback

Buyback and dividend

52358_2 12 2004 • 27 Hydro Media

Dividend policy

33%

46%

58%

18%

33% 31%27% 27%

43%

26%8%

6% 14%

1997 1998 1999 2000 2001 2002 2003 2004

Dividend Buyback 5 years



z Buyback of shares – a supplement when high earnings

- New authorization of 10 million shares approved 1 December

52358_2 12 2004 • 28 Hydro Media

-50% 0% 50% 100% 150%

Alcoa

RoyalDutch

BP

Shell

Alcan

ExxonMobil

ChevTex

BG

Total

Hydro

Competitive shareholder returns

-20% 0% 20% 40% 60%

AlcoaAlcan

RoyalDutchShell

ExxonMobil

TotalChevTex

BPBG

StatoilHydro

Source: Datastream 8 Dec 2004

TSR since December 31, 2003 TSR since December 31, 1999

New York Stock Exchange, USD

52358_2 12 2004 • 29 Hydro Media

z Relentless focus on performance

z Profitable growth

z Continued capital discipline


Financial prioritiesContinue delivering shareholder value

52358_2 12 2004 • 30 Hydro Media

Additional information

52358_2 12 2004 • 31 Hydro Media

Indicative price and currency sensitivities 2005

1 NOK2,9307,100USD before financial items

1 NOK(1,705)(3,100)USD financial items 3)

1,225

1,2851,645

380665

After tax

1 NOK4,000USD net income

1 NOK1 NOK

4,7502,350

USD Oil & EnergyUSD Aluminium 2)

1 USD100 USD

1,400950

Oil price per barrelAluminium price per tonne 2)

ChangeBefore taxNOK million

1) Based on normalized prices and expected business volumes for 2005: Oil 25 USD/bbl, Aluminium 1,500 USD/tonne and NOK/USD 7.02) Does not include effects of Aluminium’s strategic hedging program. For 2005 Aluminium has sold forward approx. 109,000 tonnes of

aluminium at an average LME price of approx. 1,510 USD/tonne. Additionally Aluminium has sold forward approx. USD 165,000 million at an average NOK/USD exchange rate of approx. 9.3

3) USD sensitivity calculated based on long-term debt denominated in USD and net USD amounts sold forward on long-term forward currency contracts. Cash positions denominated in USD, short-term debt denominated in USD and net USD amounts sold forward on short-term forward currency contracts are excluded.

1)

Based on normalized prices and currency

52358_2 12 2004 • 32 Hydro Media

Development of Capital EmployedPortfolio dramatically changed last 5 years

0

50

100

150

200

1998 Capex M&A Asset sales Yara Depreciation Other 2004 Q3

52358_2 12 2004 • 33 Hydro Media

Financial solidity – calculation

81 73483 23672 11473 90773 07262 735Adjusted shareholders’ equity and minority[Q]=[N]+ [O]+[P]

84 80088 08075 86774 79371 22659 497Shareholders' equity[P]

(4 858)(5 504) (4 896) (1 937) 4271 915Equity adjustment off-balance sheet pension liabilities[N]=[L]+[M]

1 7926601 1431 0511 4191 323Minority interest[O]

2 0822 3582 098830(183)(821)Expected income tax benefit 30%[M]

(6 940)(7 862) (6 994) (2 767) 6102 736Net pension liabilities not recognized without equity effect[L]

(3 617)(4 916)(4 924)(5 072)(6 469)(4 728)Operating lease commitments discounted at 10%[J]

(9 966)(31 846)(43 552)(25 272)(31 891)(41 914)Adjusted net interest-bearing debt[K]=[F]+[I]+[J]

[R]=[K]/[Q]

[I]=[G]+[H]

[H]

[G]

[F]=[A]+[B]+[C]+[D]+[E]

[E]

[D]

[C]

[B]

[A]

0.120.380.600.340.440.67Adjusted debt / equity ratio

(7 635)(8 381)(7 075)(1 493)1 7933 341Net pension liabilities tax adjusted

3 2723 5923 032640(768)(1 432)Expected income tax benefit 30%

(10 907)(11 973)(10 107)(2 133)2 5614 772Net pension liabilities at fair value

1 286(18 549)(31 554)(18 708)(27 215)(40 526)Net interest-bearing debt

(26 718)(28 568)(30 902)(37 853)(40 174)(42 228)Long-term debt

(549)(1 242)(1 958)(1 966)(2 209)(907)Current portion of long-term debt

(3 326)(5 569)(7 306)(8 458)(9 088)(7 361)Bank loans and other interest-bearing short-term debt

1 6321 5812 6472 4212 4902 535Other liquid assets

30 24615 2495 96527 14821 7667 435Cash and cash equivalents

30September

2004

31 December

2003

31 December

2002

31 December

2001

31 December

2000

31 December

1999Amounts in NOK million

52358_2 12 2004 • 34 Hydro Media




52358_2 12 2004 • 35 Hydro Media


Jon-Harald Nilsen, Executive Vice President2004-12-15


Progress in Aluminium

52358_3 12 2004 • 2 • Hydro Media

Progress in Aluminium

z Improved financial and operational performance

z Strong strategic progress upstream and improved cost positions

z Building competitive strengths downstream

52358_3 12 2004 • 3 • Hydro Media

We have delivered on our commitments

Date: 2004-01-16 • Page: 64

9,38,3

5,77,1

8,6

10,8

0

2

4

6

8

10

12

1998 1999 2000 2001 2002 2003

CROGI (normalised*)10 %

CROGI 1998 – 2003: Actual prices

* With normalised LME-price (1 500 USD/tonnes) and 8 NOK/USDMetal products margins and downstream margins are not normalised, neither metal part nor currency

Percent

Return on Capital target achievedone year ahead of plan

Date: 2004-01-16 • Page: 66

Improvement programs delivered

780476176300 *-Aluminium7436900-10700Magnesium

Original estimate

2003 20022001

TotalRealizedRestructuring and rationalization costs (NOK million)

Workforce and cost reductions relative to 2001* Of which NOK 89 million charged to VAW opening balance

Workforce reduction

0

500

1 000

1 500

2 000

Q4-2002

Q1-2003

Q2-2003

Q3-2003

Q4-2003

Target2003

Magnesium Aluminium

Cost reductions

0

500

1 000

1 500

2 000

2 500

3 000

Q4-2002

Q1-2003

Q2-2003

Q3-2003

Q4-2004

Target2003

Runrate

Target2004

Magnesium Aluminium

Date: 2004-01-16 • Page: 68

All projects as planned

Date: 2004-01-16 • Page: 14

Active portfolio development

z Divestments

z New capacity

z Specialised product lines

z Restructuring and closures

Date: 2004-01-16 • Page: 73

1,1

-2,4

4,62,8

-8,9

-12

-8

-4

0

4

8

Rolled products shipments in Europe

Extrusion shipments in Europe

6

-4.4

0.7 1.33.6

-24

-20

-16

-12

-8

-4

0

4

8

2001 2003200220002001 200320022000

Annual change in percent

Annual change in percent

Sources: CRU; AA, EAA.

Strengthened market positions

2004E 2004E

Date: 2004-09-02 • Page: 17

Delivering on strategic priorities

1. Improve global cost position upstream

3. Performance focus and selective growth outside Europe midstream and downstream

2. Strengthen leadership in Europe, midstream and downstream

4. Performance focus and selective growth in global automotive

52358_3 12 2004 • 4 • Hydro Media

Metals Rolled ProductsExtrusion and Automotive Other and Eliminations

Operating income improving

Accumulated

2001 2002 2003 2004Jan-Sep

833

495

(146) (997)

345

711

412 230653 564 530

709

1 629

1 269

3 7562 4561 698185

NOK million

858

52358_3 12 2004 • 5 • Hydro Media

Improving financial performance

0

1000

2000

3000

4000

5000

2002 2003 2004Jan-Sep

Non-consolidated investees and depreciation

Operating income

EBITDA Jan-Sep 2003

MetalsNOK million

52358_3 12 2004 • 6 • Hydro Media


-400

-200

0

200

400

600

800

1000

1200

2002 2003 2004Jan-Sep


Operating income/loss

EBITDA Jan-Sep 2003

Rolled ProductsNOK million

52358_3 12 2004 • 7 • Hydro Media


0

200

400

600

800

1000

2002 2003 2004Jan-Sep


Operating income

EBITDA Jan-Sep 2003

ExtrusionNOK million

52358_3 12 2004 • 8 • Hydro Media


-200

0

200

400

600

2002 2003 2004Jan-Sep


Operating income/loss

EBITDA Jan-Sep 2003

AutomotiveNOK million

52358_3 12 2004 • 9 • Hydro Media


-300

-200

-100

0

100

200

2002 2003 2004Jan-Sep


Operating income/ loss

EBITDA Jan-Sep 2003

North AmericaNOK million

52358_3 12 2004 • 10 • Hydro Media


0

1500

3000

4500

6000

7500

2002 2003 2004Jan-Sep


Operating income

EBITDA Jan-Sep 2003

Hydro AluminiumNOK million

52358_3 12 2004 • 11 • Hydro Media

Strengthening strategic positions

Improve alumina relative cost position Improve aluminium relative cost position

Strengthen leadership position in Europe: Metal Products, Extrusion, Rolled Products and Automotive

Selective growth outside Europe: Metal Products, Extrusion, Rolled Products and Automotive

52358_3 12 2004 • 12 • Hydro Media

A unique and differentiated portfolioEstimates 2004 and 2009**

2000E

2000E

4300-5000E

1800-2000E

* Aluminium equivalents (2 tonnes alumina per tonne aluminium) ** Including Qatar

1 000 tonnes

715

1600

1600

940

350 1720

686

885Alumina *

Electrolysis metal

Metal products

Downstream

Equity Medium/long term contracts

Equity

Equity

Rolled Extrusion & Automotive

3rd party Remelt

52358_3 12 2004 • 13 • Hydro Media

Revenues / gross investments

Source: Company reports. Hydro-estimates. Proxy figures where needed to get comparative figures. * Jan-Sep 2004 annualized

EBITDA / RevenuesPercent

HydroAluminium

Alcoa

AlcanAlcoa

Alcan

HydroAluminium

Factor

A unique portfolio: Higher capital turnover

Pechiney

Pechiney

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1998 1999 2000 2001 2002 2003 2004*0

5

10

15

20

25

1998 1999 2000 2001 2002 2003 2004*

52358_3 12 2004 • 14 • Hydro Media

8000 8400 9300 10100

50005400 5700

5600 59006300 6500

4800 50005300

56002400 25002800

30002400 2700

28003000

5100

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

2001 2003 2005E 2007E

Other

Durables

Electrical andengineering B&C

Packaging

Transportation

Western World* demand expected to grow in the coming years

* World excluding Central and Eastern Europe, China, Russia, Ukraine, North KoreaSources: BrookHunt; Hydro Aluminium

1 000 tonnes% growth per

segment

4.3

2.7

2.3

4.1

4.1

2.8

52358_3 12 2004 • 15 • Hydro Media

* Excluding China ** Rest of the world, including the Middle East

Net exports, 1 000 tonnes

Energy drives primary restructuring

Source: CRU, Hydro Aluminium

-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

4 000

2000 2005E 2012E

Asia* Europe

China Canada SouthAmerica

USA

Australia andNew Zeeland

CIS ROW**

52358_3 12 2004 • 16 • Hydro Media

2003 2007 2011 2015 2019 2023

Increasing industry exposure to market power prices

* Excluding ChinaSource:CRU, Hydro Aluminium

Aluminum production – power sourcing1 000 tonnes*

Unknown contract expiry

Russia

Contract

To be renewed

Captive

22 584

20 000

15 000

10 000

5 000

0

52358_3 12 2004 • 17 • Hydro Media

Norway

Australia

Canada

Slovakia

Germany

2005 2010 2015 2020

Self generation and long term contracts

Timeline

Attractive power contract portfolio for HydroGermany a challenge

52358_3 12 2004 • 18 • Hydro Media

Qatar – the future pattern

z Heads of agreement signed

z Annual capacity- 570 000 tonnes - Expansion potential up to 1 200 000 tonnes

z Investments- Smelter and casthouse: USD 2 – 2.5 billion - Power plant: USD 0.7-0.8 billion

z Hydro ownership- 49 % in smelter and power station- 51 % in casthouse- Hydro to market total tonnage

z Production start-up end 2008

z Exceed 10% IRR after tax at USD 1400/tonne HAL Technology

Excellent location

52358_3 12 2004 • 19 • Hydro Media

Ambitious primary production growth

1.0

1.5

2.0

2001 2005E 2009E

Million tonnes

20%24%Total world27%36%Hydro

2005-2009*1999-2004 Production growth, %

Source: Hydro Aluminium, Brook Hunt long -term outlook 2004. * incl. Qatar for Hydro

52358_3 12 2004 • 20 • Hydro Media

Improving relative cost position 2003-2009

0

500

1 000

1 500

2 000

0 20 40 60 80 100Cumulative production (%)

Hydro ’03

Cash cost USD/tonne

Total average USD 1 097/tonne

Assumptions: Aluminium price USD 1 500, USD/NOK 7.0, Cumulative production 27.8 million tonnesSource: CRU, Hydro Aluminium

To be closedz Høyanger SØ, 22 ktz Årdal SØ, 50 ktz Karmøy SØ,122 kt

New capacity

z Alouette, 60 kt

z Sunndal, 250 kt

z Qatar, 280 kt

Hydro ’09

52358_3 12 2004 • 21 • Hydro Media

* After sale of alumina plant in Germany. Bauxite to Alunorte at cost.Source: CRU 2003 : Major Western World Refineries (43 mill tons, i.e 80% of world production)Hydro Aluminium estimates

Increasing equity alumina at lower cost

Cumulative production, million tonnes per year

60

80

100

120

140

160

180

200

220

0 5 10 15 20 25 30 35 40 45

2000: Hydro average USD 165/tonne

Cash cost USD/tonne

2006*: Hydro averageUSD 120/tonne

World weighted average 2003:USD 134/tonne

52358_3 12 2004 • 22 • Hydro Media

Medium term price outlook favourable

z Strong market fundamentals

z Increased production costsz Energyz Aluminaz Carbon raw materialsz Freight

z Weakening USD

USD/tonne

500

1 000

1 500

2 000

2 500

1980 1984 1988 1992 1996 2000 2004

Nominal prices

52358_3 12 2004 • 23 • Hydro Media

Downstream activities

Extrusion

37%37%

Rolled Products

45%45%

Automotive

18%18%

Total revenue*: NOK 35 bnz Europe 80%z North America 12%z Others 8%

* Jan-Sep 2004, split on sectors based on revenue

52358_3 12 2004 • 24 • Hydro Media

Rolled Products:Building a stronger business

z Growth in high margin segments- New litho line in 2005- Foil mills upgraded- Increased heat exchanger volume

z Delivered on improvement programs- Cost reduction and demanning- Turnaround of

underperforming units- Modernization of Slim plant (Italy)

z Optimize plants’ product mix

z High capacity utilization through strong market position

52358_3 12 2004 • 25 • Hydro Media

Strip48%

Litho30%

Foil22%

Strip69%

Litho15%

Foil16%

Rolled Products:Increasing focus on higher margin segments

Annualized shipments* 950 000 tonnes

Operating income Jan-Sep 2004: NOK 593 million

*Jan-Sep 2004: 710 000 tonnes

52358_3 12 2004 • 26 • Hydro Media

Extrusion:Global growth from leading position in Europe

z Consolidating leadership in Europe

z Closing performance gap in USA

z Expanding in emerging and low cost markets

z Growing value added business

z Realizing system benefits

52358_3 12 2004 • 27 • Hydro Media

0

2

4

6

8

10

12

14

1998 1999 2000 2001 2002 2003 2004Jan-Sep

SAPA Hydro Extrusion

Extrusion:Strong financial performance

Percent

* Sales / Gross investment

0

50

100

150

200

250

1998 1999 2000 2001 2002 2003 2004Jan-Sep

SAPA Hydro ExtrusionPercent

EBITDA / Sales Capital Turnover *

52358_3 12 2004 • 28 • Hydro Media

Automotive:Leading market positions in focus areas

Market positions 2003% of total market incl. steel/cast iron solutions

65

17 146

35

4 5 10

20

40

60

80

Precisiontubing

Bumperbeams

Cylinderheads

Engineblocks

Europe

NAFTA

52358_3 12 2004 • 29 • Hydro Media

Automotive:Building on strengths and fixing underperformance

z Precision Tubing- Strong financial performance- New plants in China and Mexico 2005

z Structures- Improving financial performance

from low level- Focusing product portfolio- Restructuring ongoing

z Castings- Improved financial performance- New diesel engine line in Dillingen- Production shifting towards

low cost countries - Leeds closure to be finalized in 2005

52358_3 12 2004 • 30 • Hydro Media

Continued strong focus on bottom line growth

z Continue to strengthen European leadership and build global presence in selected segments and geographical areas

z Capitalize on a unique and differentiated portfolio profile andvalue chain integration in an environment of structural change

z Improve relative cost position upstream - Energy in Germany a particular challenge

z Sharing of best practice throughout the value chain

z Active portfolio development

52358_3 12 2004 • 31 • Hydro Media




52358_3 12 2004 • 32 • Hydro Media


Documents

Capital Markets Day 2004 - Hydro