Hydros investor presentation for the first quarter in 2011. The presentation is based on the latest capital markets day presentation with subsequent updates.

1. Investor presentation
May/June 2011

2. Table of contents Cautionary note
Certain statements included within this announcement contain forward-
looking information, including, without limitation, those relating to (a)
forecasts, projections and estimates, (b) statements of management’s
plans, objectives and strategies for Hydro, such as planned expansions,
Company overview 3 investments or other projects, (c) targeted production volumes and
costs, capacities or rates, start-up costs, cost reductions and profit
objectives,
Market outlook 11 (d) various expectations about future developments in Hydro’s markets,
particularly prices, supply and demand and competition, (e) results of
operations, (f) margins, (g) growth rates, (h) risk management, as well
as (i) statements preceded by “expected”, “scheduled”, “targeted”,
First quarter results 2011 29 “planned”, “proposed”, “intended” or similar statements.
Although we believe that the expectations reflected in such forward-
Business overview 51 looking statements are reasonable, these forward-looking statements
are based on a number of assumptions and forecasts that, by their
nature, involve risk and uncertainty. Various factors could cause our
– Bauxite & Alumina 52 actual results to differ materially from those projected in a forward-
looking statement or affect the extent to which a particular projection is
realized. Factors that could cause these differences include, but are not
– Primary Metal 69 limited to: our continued ability to reposition and restructure our
upstream and downstream aluminium business; changes in availability
and cost of energy and raw materials; global supply and demand for
– Metal Markets 78 aluminium and aluminium products; world economic growth, including
rates of inflation and industrial production; changes in the relative value
of currencies and the value of commodity contracts; trends in Hydro’s
– Rolled Products 82 key markets and competition;
and legislative, regulatory and political factors.
– Extruded Products 89 No assurance can be given that such expectations will prove to have
been correct. Hydro disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
– Energy 96 future events or otherwise.
Additional information 102
(2)

3. Company
overview
(3)

4. Hydro: resource rich and fully integrated
Hydro underlying EBIT quarterly, NOK million
9 930 6 009 (2 555) 3 551 1 448
• Based in Norway with 3 200
operations in 40 countries 2 800
• 23 000 employees 2 400
2 000
• Operating revenues 1 600
• 2007: NOK 94 billion 1 200
• 2008: NOK 89 billion
800
• 2009: NOK 67 billion
400
• 2010: NOK 76 billion
0
• Current market capitalization (400)
• NOK 100 billion/USD 18 billion (800)
2007 2008 2009 2010 2011
(4)

5. Hydro’s value proposition
• Transforming bauxite and alumina
acquisition enhances earnings robustness
and provides long alumina position for
decades to come
• Repositioning of Primary Metal on track
for USD 300 per tonne cost improvement
by end-2013
• World-class Qatalum smelter in full
production from June 2011
• Increasing value of Energy business and
competence
• Exciting prospects for high-end
downstream business in mature and
emerging markets
• Proactive portfolio, performance and
margin management
(5)

6. Strong positions across aluminium value chain
Raw materials processing Primary aluminium production,
Aluminium in products
and energy marketing and recycling
Bauxite Primary Metal Rolled Extruded
& Alumina Energy Metal Markets Products Products
• Bauxite capacity • Long-term power • 2.4 million tonnes • 3.8 million tonnes • 1 million tonnes • 0.6 million tonnes
12.2 million tonnes supply secured primary capacity (primary, remelt, • Margin business • Margin business
• Expansion potential • 9.4 TWh of renewable • High LME and USD recycling and cold • Regional business • Local business
to 17.2 million tonnes energy production sensitivity metal)
• Close to customers • Close to customers
• Alumina capacity in Norway • Improving cost • Expertise in materials
• Innovation • Innovation
6.9 million tonnes position • Flexible system
• Market leading in • Market leading in
• Expansion potential • Leading in technology • Strong marketing litho and foil Building Systems
to 14.5 million tonnes organization
• Long-term sourcing • Risk management
contracts for bauxite
and alumina
Pro forma capacity for end-2010 after Vale transaction. 100% of volumes for assets that are fully consolidated and pro rata volumes for other assets.
(6)

7. Aluminium is the metal of the future
• Lightweight • Formability
• 1/3 density of steel • Extrusion, rolling, casting
• Low melting point vs. steel
• Recyclability
• 5% of original energy consumption • Excellent conductivity
• 75% of all aluminium produced still in use • Thermal – electrical
• Corrosion resistant • Alloying technology
• Gives wide range of physical properties
• Oxide layer
Properties lead • Aluminium intensive urbanization and infrastructure
to increased • Climate challenge – aluminium as part of the solution
market share • Recyclability more important with high energy prices
(7)

8. Hydro becomes first tier aluminium company
Production capacity for 2010 in aluminium equivalents, million tonnes
9 000
Alumina Aluminium
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
Alcoa Chalco Rusal Rio Tinto Hydro pro Chiping Weiqiao BHP Vale Hydro East Hope China Dubal Xinf a Yichuan Aluminium Cent ury Vedant a
forma Xinf a Billit on Group Power Group Power Bahrain
Source: CRU
(8)

9. Responsible business is our license to operate
Safety remains a top priority Commitment to sustainable operations
TRI rate
• Reducing specific energy consumption and
climate gas emissions
10.3
• Helping our customers reduce their climate
footprint
• Responsible restructuring
7.0 • Welcoming new colleagues from Vale
6.0
– drawing on their competence
5.4
• Hydro is recognized on key indexes
4.0 4.1 3.9
3.7
2.9
2002 2003 2004 2005 2006 2007 2008 2009 2010
(9)

10. Strategy for further value creation
Bauxite & Alumina
• Integrate
• Expand
• Commercialize
Primary Metal
• Reposition
• Keep solid cash flow in current assets
• Expand in high-class assets
Energy • Increase value of business and competence
• Focus on operations and commercialization
of current assets
• Implement global approach to power
sourcing
Mid- and downstream • Continue proven high-end product strategy
• Pursue profitable life-cycle investments:
recycling, energy-efficient building systems,
aluminum in transport
• Expand selectively in emerging markets
(10)

11. Market
outlook
(11)

12. Significant aluminium demand growth expected
Demand for primary aluminium
World outside China China
Million tonnes
90
80
+80%
70 37
60
28
50
40
17
37
30
31
20 24
10
0
2010 2015 2020
Fight for raw materials to continue
Resource-constrained world
(12)

13. Aluminium price increase, strong premiums
Aluminium price USD per tonne Ingot premiums USD per tonne
3 400 200
175
3 000
150
2 600 125
100
2 200
75
1 800 50
1 400 25
0
1 000
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
2001 2003 2005 2007 2009 2011 2013 2015
LME (3-month avg.) LME forward April 21, 2011 US Mid West Japan Europe*
Primary aluminium LME USD/tonne NOK/tonne Ingot premiums, USD/tonne US Mid West Japan Europe
Q1 2010 average 2 527 14 437 Q1 2011 average 140 113 193
Q1 2010 end 2 632 14 502
Q4 2010 average 138 116 189
Q4 2010 average 2 368 14 036
Q4 2010 end 2 468 14 368
Average 2010 138 120 159
Average 2010 2 199 13 257
Average 2009 105 95 58
Average 2009 1 702 10 575
Average 2008 2 620 14 453 Average 2008 93 79 83
* Duty-paid
Source: Reuters Ecowin Source: Metal Bulletin, MW/MJP: Platts
(13)

14. Volumes seasonally higher
Hydro’s downstream sales Q1 2011 vs Q4 2010 Total downstream
sales*
Rolled Products: +5% Extruded Products: +8%
Foil Litho Can Packaging Auto & General Extrusion Building Extrusion Extrusion Precision
beverage & building heat engineering Eurasia Systems North South Tubing
exchanger America America Q1 11 vs Q1 11 vs
16% 17% 17% Q4 10 Q1 10
14%
10%
6% 6%
3% 4% 3%
1%
-6%
-13%
Hydro’s upstream sales Q1 2011 vs Q4 2010 Total upstream sales
Extrusion ingot Sheet ingot Foundry alloys Q1 11 vs Q1 11 vs
Q4 10 Q1 10
19%
15%
12%
4%
2%
Albras included from March 1, 2011
(14)

15. Mid-term development scenario thinking
World outside China
1 000 tonnes
28 000
Supply Demand
27 000
26 000
25 000 3%–6%
24 000 5%–9%
23 000
22 000
Supply influences Demand influences
21 000 • New projects 19% • GDP growth
• Potential restart • Further restocking
• Supply disruptions • Emerging markets
20 000
19 000
18 000
2006 2007 2008 2009 2010 2011 2012
Source: CRU/Hydro
(15)

16. Global inventory days trending down
World reported primary aluminium inventories • Inventory days reduction driven by
1 000 tonnes Days increased consumption
7 000 80
6 000 70 • Q1 LME stocks increase believed to partly
reflect unreported metal moved into
60
5 000 reported warehouses
50
4 000 • High inventories well known in market
40
• Different views on unreported inventories
3 000
30
2 000
• Estimated total reported and unreported
20 inventories ~11 million tonnes
1 000 10
• Represents ~3 months of consumption
0 0 • Financial deals locking up metal
Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11
• Profitable on a 3-6 month horizon
IAI Other
LME SHFE
Global inventory days
Source: CRU
(16)

17. China balanced in primary aluminium
1 000 tonnes
600
• Reduced production due to
500 Chinese New Year celebration
400
in February
Net import
300
• Production resumed after
200
Chinese New Year
100 • China expected to be broadly
0
balanced in 2011
(100)
• New capacity to be built in
Net export
(200)
north and west China
(300) • Partly replacing high-cost
(400)
production in south and east
2007 2008 2009 2010
Primary / alloyed Semis Fabricated Scrap Total
Source: Hydro / Antaike, April 2011
(17)

18. Positive 2011 market outlook maintained
World outside China (quarterly annualized) • World outside China
1 000 tonnes
• Annualized demand at 25.3 million tonnes in Q1
30 000
• Up 1% vs Q4 2010
28 000
26 000 • 7% demand growth expected in 2011
24 000 • Capacity development
22 000
• 1.2 million tonnes curtailed capacity restarted
20 000
or in process of being restarted
18 000
• 1.2 million tonnes curtailed capacity may
16 000
14 000
restart if current market conditions continue
12 000
10 000
8 000
• China
6 000 • Annualized demand at 16.7 million tonnes in Q1
4 000 • Down 3% vs Q4 2010
2 000
0
• 10% demand growth expected in 2011
• Broadly balanced in primary aluminium
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Demand Production
Source: CRU
(18)

19. Downstream demand development
Demand, million tonnes
Share of semis consumption
27 2010 – 54 million tonnes
Western Europe North America China
& Mexico
22
Consumer
Electrical durables
10% 7%
Packaging
17 Machinery 9%
& equipment
10%
Foil stock 8%
12
Other 6%
Transport
26%
7
Construction
24%
2
2008
2009
2010
2011
2012
2008
2009
2010
2011
2012
2008
2009
2010
2011
2012
-3
Transport C onstruction Packaging
Foil Electrical C onsumer durables
Machinery & equipment Other
Source: CRU Source: CRU LT October 2010
(19)

20. 66% of bauxite reserves in 3 countries
Billion tonnes
Guinea
14.9 China
2.1
Mali 0.9
1.2
0.0
4.0 India Vietnam
Jamaica Venezuela
1.6 2.3
1.1 0.5 1.8 0.4
0.3 0.0
Indonesia
Cameroon 1.0
0.1
1.2
0.0
Brazil
Australia
8.2
9.5
5.9
2.0
Big-league (Top- 3) Total bauxite, billion tonnes: reserves, mine site resources *, and undeveloped resources **
Mid-league (Top- 11; each > 2% of world total) Potential reserves, billion tonnes: associated with currently operating mines ***
*) Mine site resources are known bauxite resources that do not currently qualify as reserves for various reasons
**) Undeveloped resources might or might not became feasible for new mines (quality, size, access, etc)
***) Potential reserves = current reserves (economically extractible) + 70% of mine site resources. Undeveloped resources are excluded.
(20)
Source: Roskill and Hydro analysis

21. China dependent on bauxite imports
Chinese bauxite sourcing • Domestic bauxite reserves estimated
Million tonnes
at 1.3-2.0 billion tonnes
115
Import
42
Domestic source
• Quality of domestic bauxite resources
67
73 deteriorating
30
21 37
• Indonesia supplies ~75% of imported
19
bauxite
2005 2010 2015
• The balance mainly from Australia
Chinese alumina sourcing
Million tonnes
54
• China to be relatively balanced in alumina
Import 5
49
• Minor imports
Domestic source
35
4
29
• New alumina capacity mainly based on
16 domestic bauxite
7
9
2005 2010 2015
Source: Antaike / Hydro
(21)

22. Significant alumina demand growth expected
Million tonnes
160 +80%
Alumina demand
140 135
Production China
55
Production world outside China 118
120
48
100
81
80
29 80
70
60
52
40
20
0
2010 2015 2020
*2020 production world outside China includes 10 million tonnes of highly probable projects
Source: Hydro analysis/ Antaike
(22)

23. Alumina market expected to remain balanced
Alumina balance world outside China, million tonnes
90
Alumina demand + export to China
6-10
80
Highly probable new capacity million
Alumina production tonnes
70
60
50
40
30
20
10
0
2011 2012 2013 2014 2015 2020
Export to
3.5 3.5 4.0 4.5 4.5 5.0
China
Idled
5.1 4.2 4.2 3.5 3.5 3.5
capacity
Source: Hydro analysis / CRU
(23)

24. Alumina market is consolidating
Net long alumina position, million tonnes
Alcoa 4.3 Alcoa 8.0
Vale 3.0 Chalco 2.8
Glencore 2.4 BHP Billiton 2.1
Chalco 2.0 Hydro 1.5
BHP Billiton 1.9 Glencore 1.5
Kaiser 1.0 Rio Tinto 0.7
Alcan 0.8 Klesch -0.5
Sual 0.7 Rusal -0.6
Rio Tinto 0.5 Tajik -0.8
Pechiney 0.4 2000 Aluar -0.9 2011
VAW -0.5 Century -1.1
Hydro -0.6 Vimetco -1.1
Alba -0.9 Alba -1.7
Dubal -1.0 Dubal -2.2
Rusal -1.2 Source: CRU and Hydro analysis
(24)

25. Attractive cost position
Global business operating cost curve 2010
USD per tonne
Alunorte stand-alone
450
400
350
300
Average - USD 243
250
200
150
100
50
0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90
Million tonnes
Source: CRU
(25)

26. Alumina price development
Historical alumina price Platts index in USD*
Alumina price Alumina price
USD per tonne % LME USD per tonne % LME
% of LME % of LME
700 32 450 20
600 28 425
24 400 18
500
20 375
400
16 350 16
300
12 325
200
8 300 14
100 4 275
0 0 12
250
1998 2000 2002 2004 2006 2008 2010 09.10 10.10 11.10 12.10 01.11 02.11 03.11 04.11
Source: Reuters/CRU/Platts. *Platts started spot notifications in August 2010
(26)

27. Commodity prices drive industry costs
Crude oil – Brent (USD/bbl) Coal – CIF ARA (USD/mt) Petroleum coke FOB USG (USD/tonne)
160 245 550
140 210 500
120 175 450
100 140 400
80 105 350
60 70 300
40 35 250
0 200
20
2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011
2005 2006 2007 2008 2009 2010 2011
Power – EEX Germany (EUR/MWh) Freight – Baltic Dry Index Caustic soda (USD/tonne)
90 11 900 1 200
80 10 200 1 050
70 8 500 900
60 6 800 750
50 5 100 600
40 3 400 450
30 1 700 300
20 0 150
2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011
Source: Reuters Ecowin / PACE / CMAI
(27)

28. Strong power prices, low reservoir levels
Hydro’s snow and water reservoir levels assumed better than market average
Market price Southwestern Norway (NO2) Water reservoir levels Southwestern Norway (NO2)
NOK/MWh Percent
700 100
2010 2011 2010 2011
90
600
80
500 70
60
400
50
300
40
200 30
20
100
10
0 0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
Week Week
Price NOK/MWh Q4 2010 Q1 2011 Reservoir levels Dec 31, 2010 Mar 31, 2011
System 498 518 Norway 45.3 % 18.1 %
Southwestern Norway (NO2) 469 520 Southwestern Norway (NO2) 42.8 % 15.4 %
Source: Nordpool and NVE
(28)

29. First quarter
results 2011
(29)

30. • Vale transaction completed
• Qatalum ramp-up on track
• Positive market outlook
(30)

31. Q1 highlights
• Underlying EBIT NOK 1 448 million
• Stronger sales supported by seasonally improved markets
• Stable Bauxite & Alumina result, weak production performance
• Primary Metal up on higher prices, partly offset by increased raw material costs
• Down- and midstream lifted by higher sales and lower costs
• Solid Energy result
(31)

32. Ambitious cost improvement program on target
Estimated primary aluminium cash cost and margin • USD 300 per tonne cost improvement
USD/tonne 1)
• USD 50 per tonne realized in 2010
475
475 • Further USD 125 per tonne targeted in 2011
425
475
375
375
2 175 25 • Cash cost up ~USD 125 from 2010
1 750
1 875
due to increased raw material costs
1 675
• Energy
1 475 • LME-linked alumina prices
1 275
1 275
1 225 • Petroleum coke
• Weaker USD
• Program assumptions
2008 2009 2010 Q1 2011
3) • Higher energy and petroleum coke costs may
offset some improvements
Estimated cash cost excluding LME-linked alumina cost 2)
Estimated LME-linked alumina cost 2) • Improvements may be influenced by fluct-
Estimated EBITDA margin uations in raw material prices and currencies
1) Realized aluminium price minus EBITDA margin per tonne primary • Applies to ~1 000 000 tonnes annual capacity
aluminium. Excludes Qatalum earnings and volumes, but includes net
earnings from primary casthouses.
2) 13% of LME 3 month price with 2.5 months delay
3) Albras included from March 1, 2011
(32)

33. Historic Vale transaction completed
• Platform for further growth as fully
integrated resource-rich aluminium
company
• Positions Hydro as a leading global
bauxite and alumina player
• Integration process well under way
• Key priority: increase production
towards nameplate capacity
• Weak production performance in Q1
• Promising growth prospects
• Vale has become key shareholder
in Hydro with 22% ownership
(33)

34. Underlying EBIT
1 448
1 110
965
688
588
-493
-618 -651
-793
NOK million Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
Bauxite & Alumina 1) (228) (73) 21 (117) 162 288 71 113 155
Primary Metal 1) 3 (815) (780) (623) (169) 382 318 86 583
Metal Markets (245) 196 (15) (20) 65 31 163 62 143
Rolled Products (53) (28) 51 57 223 309 227 105 232
Extruded Products (204) (26) 95 68 117 201 102 24 105
Energy 447 281 217 295 588 177 169 482 573
Other and eliminations 1) (213) (153) (382) (311) (297) (278) (85) (284) (344)
Total (493) (618) (793) (651) 688 1 110 965 588 1 448
1) Bauxite & Alumina, Primary Metal and Other and eliminations are reclassified from 2009.
(34)

35. Underlying EBIT development
NOK billion
0.2 (0.2)
0.1 1.4
0.3
0.4
0.6
Q4 2010 LME price and Volume Equity accounted C ost smelters Other Q1 2011
currency investments
(35)

36. Key financials
NOK million Q1 2011 Q4 2010 Q1 2010 Year 2010
Revenue 21 138 19 406 18 145 75 754
Underlying EBIT 1 448 588 688 3 351
Items excluded from underlying EBIT 4 408 180 297 (167)
Reported EBIT 5 855 768 985 3 184
Financial income (expense) (93) 292 545 522
Income (loss) before tax 5 762 1 060 1 530 3 706
Income tax expense (608) (401) (605) (1 588)
Net income (loss) 5 154 658 924 2 118
Underlying net income (loss) 1 244 376 401 1 852
Reported EPS, NOK 2.89 0.39 0.68 1.33
Underlying EPS, NOK 0.65 0.21 0.27 1.14
(36)

37. Tax and financial expense
Tax Finance
NOK million Q1 2011 Q4 2010 NOK million Q1 2011 Q4 2010
Income before tax 5 762 1 060 Interest income 51 84
Dividends received and net gain on securities (10) 22
Equity accounted investments (19) 17
Financial income 41 107
Revaluation gain Alunorte and CAP 4 222 -
Adjusted income before tax 1 559 1 043
Interest expense (80) (30)
Net foreign exchange gain (loss) (30) 232
Income tax expense (608) (401)
Other (25) (16)
Financial expense (134) 185
Effective tax rate 11% 38%
Adjusted effective tax rate 39% 38% Net financials (93) 292
• Low tax rate for Q1 due to tax-free revaluation • Lower interest income due to reduced cash
gain on previous stakes in Alunorte and CAP balance in Q1
• Adjusted effective tax rate influenced by high • Net foreign exchange loss due to weaker USD
share of earnings from Energy subject to power largely offset by gains on intercompany balances
sur tax in EUR
(37)

38. Items excluded from underlying EBIT
NOK million Q1 2011 Q4 2010 Q1 2010 Year 2010
Underlying EBIT 1 448 588 688 3 351
Unrealized effects power contracts 40 (151) (272) (609)
Unrealized LME and other derivative effects (136) 283 230 (117)
Metal effect, Rolled Products 176 92 314 560
Rationalization charges and closure costs - (131) 19 (130)
Impairment charges - (12) (61) (187)
Gains (losses) on divestments - 7 67 74
Vale transaction related effects 4 328 - - -
Other - 91 - 242
Reported EBIT 5 855 768 985 3 184
(38)

39. Pro forma underlying EBIT & EBITDA
Underlying EBIT before transaction and contribution from acquired Vale assets
NOK million
3 351 + 790 = 4 141
1 538
1 369 91
1 231
259 1 448
266
1 110 841
698 965
253
688 588
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
Underlying EBITDA before transaction and contribution from acquired Vale assets
NOK million
6 420 + 3 030 = 9 450
2 881
2 702
2 555 467
825
835 2 213
2 415
1 979
830
539
1 877
1 720
1 440
1 383
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011
(39)

40. Preliminary purchase price allocation
NOK billion
Property, plant and equipment 44.8
Goodwill 2.7
Net other assets 9.2
Deferred tax liabilities (6.2)
Net interest-bearing debt (6.4)
Net assets acquired 44.1
Net assets acquired by Hydro 37.0
Minority interests 7.1
Net assets acquired 44.1
Consideration shares issued to Vale 20.0
Cash consideration paid 6.3
Deferred cash payment Paragominas 1.5
Fair value of previously held shares in Alunorte and CAP 9.2
Net assets acquired by Hydro 37.0
Revaluation gain on Alunorte and CAP recognized in Q1 2011 reported result ~4.2
Estimated annual excess value depreciation (exposed to NOK/BRL exchange rate) ~1.0
(40)

41. Pro forma income statement Q1 2011
Vale Pro forma
Aluminium Pro forma Hydro after
NOK million Hydro actual combined adjustments transaction
Revenue 21 138 2 121 (444) 22 815
Share of the profit (loss) in equity accounted investments (19) - (27) (45)
Other income, net 4 553 - (4 421) 132
Total revenue and income 25 672 2 121 (4 891) 22 902
Depreciation, amortization and impairment 940 214 162 1 316
Other expenses 18 877 1 656 (551) 19 981
Earnings before financial items and tax (EBIT) 5 855 251 (4 502) 1 604
Financial income (expense), net (93) (22) (21) (137)
Income (loss) before tax 5 762 229 (4 523) 1 468
Income taxes (608) (79) 144 (543)
Tax rate 11% 37%
Net income (loss) 5 154 150 (4 379) 925
Net income (loss) attributable to minority interest 112 21 11 144
Net income (loss) attributable to Hydro shareholders 5 043 129 (4 390) 782
Earnings per share attributable to Hydro shareholders 2.89 0.38
(41)

42. Bauxite & Alumina
Pro forma
Q1 Q4 Q1
Key figures 2011 2010 2010
Alumina production, kmt 1 336 1 448 1 394
Total alumina sales, kmt 1 762 2 018 1 843
Realized alumina price, USD/mt 329 311 293
Apparent alumina cash cost, USD/mt 266 251 231
Bauxite production, kmt 1 720 2 017 1 745
Underlying EBITDA, NOK million 725 693 643
Underlying EBIT, NOK million 237 223 205
Q1 operating results
• Weak production performance in Alunorte and Paragominas
Underlying EBIT • Higher realized alumina price driven by LME link
NOK million • Lower sales volumes in Alunorte
1 225 237 • Increased caustic and energy costs
448 • Higher bauxite costs due to scheduled maintenance of
348 Paragominas bauxite pipeline and increased operating costs
• Lower contribution from commercial activities
223 237
205
Outlook
• Higher LME-linked alumina prices
2010 2011 • Improved production at Alunorte and Paragominas
• Reduced unit costs due to higher utilization
(42)

43. Primary Metal
Pro forma
Q1 Q4 Q1
Key figures 2011 2010 2010
Primary aluminium production, kmt 490 475 447
Total sales, kmt 627 624 601
Realized LME price, USD/mt 2 366 2 131 2 039
Realized LME price, NOK/mt 13 664 12 739 11 826
Underlying EBITDA, NOK million 1 137 808 320
Underlying EBIT, NOK million 592 230 (203)
Q1 operating results
Underlying EBIT • Prices and premiums lift result by NOK 480 million
NOK million
• Increased raw material costs, partly offset by lower fixed
816 592 costs, reduce result by NOK 170 million
592 • Insurance compensation of NOK 145 million included in
481
positive NOK 20 million Qatalum result
306
230 • Albras contributing NOK 50 million vs NOK 144 million in Q4
Outlook
(203) • Close to 100% of primary production affecting Q2 results
2010 2011 priced at ~USD 2 450 mt, excluding Qatalum
• Increased alumina and petroleum coke cost
• Restart of 15 000 mt at Sunndal 3 line in June
(43)

44. Metal Markets
Q1 Q4 Q1
Key figures 2011 2010 2010
Remelt production, kmt 150 147 143
Total metal products sales, kmt 772 688 670
Underlying EBITDA, NOK million 168 88 91
Underlying EBIT excl currency and
95 73 144
inventory valuation effects, NOK million
Underlying EBIT, NOK million 143 62 65
Q1 operating results
Underlying EBIT
NOK million • Increased sales volumes for third-party products
321 143 • Improved margins for remelters
• Lower contribution from metal sourcing and trading
• Positive currency and inventory valuation effects of
163 NOK 50 million
143
65 62 Outlook
31 • Slightly increased volumes
• Volatile trading and currency effects
2010 2011
(44)

45. Rolled Products
Q1 Q4 Q1
Key figures 2011 2010 2010
External sales volumes, kmt 245 234 231
Underlying EBITDA, NOK million 342 226 335
Underlying EBIT, NOK million 232 105 223
Underlying EBIT
NOK million
864 232
Q1 operating results
309 • Seasonally higher sales improve result
227 232 by NOK 80 million
223
• Improved margins driven by general
105 engineering applications
• Higher energy costs offset by lower
maintenance costs
2010 2011
Outlook
• Solid order book for 2011
• Stable sales volumes in Q2
(45)

46. Extruded Products
Q1 Q4 Q1
Key figures 2011 2010 2010
External sales volumes, kmt 136 127 128
Underlying EBITDA, NOK million 237 162 252
Underlying EBIT, NOK million 105 24 117
Underlying EBIT
NOK million
444 105
Q1 operating results
• Weak European construction market
201 • Seasonally higher volumes
• Lower costs
117
102 105 • Solid results in Precision Tubing and
Extrusion South America
24
Outlook
• Current market conditions expected to continue,
2010 2011
but increased volatility in demand
• Seasonally higher sales
(46)

47. Energy
Q1 Q4 Q1
Key figures 2011 2010 2010
Power production, GWh 2 308 2 263 2 781
Net spot sales, GWh 955 827 1 323
Southwest Norway spot price (NO2),
520 469 430
NOK/MWh
Underlying EBITDA, NOK million 600 502 623
Underlying EBIT, NOK million 573 482 588
Underlying EBIT Q1 operating results
NOK million • High and stable production
1 416 573
• Strong spot prices
• Lower transmission costs
588
573
482 Outlook
• Significantly lower production and spot sales
• Lower prices
177 169
2010 2011
(47)

48. Net cash development Q1
NOK billion Net cash flow from Net cash flow from
operations NOK (0.6 billion) investing NOK (6.4 billion)
2.4 (1.9)
(1.2)
11.0
(0.6)
(5.7)
(5.7)
(2.0)
(0.2)
End-Q4 2010 Underlying Operating Other Investments / Net cash Debt increase Other End-Q1 2011
EBITDA capital adjustments divestments payment Vale
(48)

49. Robust financial position
Net cash/(debt), NOK billion
Dec 31, Dec 31, Mar 31,
11.0 NOK billion 2009 2010 2011
Cash and cash equivalents 2.6 10.9 3.7
Short-term investments 1.5 1.3 1.3
Short-term debt (2.0) (0.9) (2.5)
Long-term debt (0.1) (0.3) (4.5)
Net cash/(debt) 2.0 11.0 (2.0)
Net int.-bearing debt in equity
(8.0) (7.8) (7.3)
accounted invest.
Net pension liability at fair value,
(5.6) (5.6) (5.5)
2.0 net of expected tax benefit
Other adjustments* (4.0) (4.0) (5.6)
Adjusted net debt (15.6) (6.4) (20.5)
Dec 31, 2009 Dec 31, 2010 Mar 31, 2011 * Operating lease commitments and other
(2.0)
(49)

50. Priorities 2011
• Successful integration and improved
performance in Bauxite & Alumina
• Primary Metal repositioning through
USD 300 program and Qatalum ramp-up
• Solid operations with firm cost control
and strong market focus
(50)

51. Business
overview
(51)

52. Bauxite & Alumina
(52)

53. High-quality asset portfolio
MRN Paragominas Alunorte alumina CAP alumina Alpart alumina
bauxite mine bauxite mine refinery refinery project refinery
• 5% ownership • 60% ownership, 100% • 91% ownership • 81% ownership • 35% ownership
• Volume off-take by 2015 • World’s largest alumina • CAP refinery (Phase I) • Capacity 1.65
agreement for • One of the world’s refinery is planned to be million tonnes
Vale’s 40% stake largest bauxite mines • 2010 production in operation in 2015 of alumina
• Capacity 18 • 2010 production 5.8 million tonnes • Paragominas expansion • Fully integrated
million tonnes 7.5 million tonnes • Nameplate capacity of to be developed with bauxite
• Nameplate capacity of 6.3 million tonnes in parallel • 100% curtailed
9.9 million tonnes • Bauxite supplied from • Investment estimates since mid-2009
• Possible expansion to Paragominas and MRN and expansion concepts
15 million tonnes under evaluation
• World-class conversion
• Long-life resource cost position • Full utilization of the
existing bauxite pipeline
Refining and mining External supply Sales contract
Bauxite licenses
competencies contracts portfolio
(53)

54. Integration process well underway
• Solid management team
• Global organization
Successful • Headquarters, Rio de Janeiro, Brazil
start • Operations, Para State, Brazil
• Marketing, Lausanne, Switzerland
• Workforce of 6 500 people in Brazil
• Stakeholder relations well established
• Authorities
• Customers
• Social dialogue developing positively
• Expansion projects maturing
(54)

55. Paragominas – production process
• Production process
• Strip mining allows for quick environmental
recovery
• Bauxite found in 0.5-2.5 meter layers 4-18
meters below ground
• 244 km pipeline from Paragominas to
Alunorte
• Only bauxite slurry pipeline in the world
• 15 million tonnes annual capacity
• Low environmental impact
• High-quality bauxite
• Gibbsite bauxite with 48-49% available
alumina and 4.5-5% of reactive silica
• Absence of organics reduces investments
and cash cost at Alunorte
(55)

56. Paragominas – production process
Reclaimer Silo SAG mill
Pumping station Classification
to pipeline
Tailings
dam/recovered Classification
water
Ball mill Recrusher Vibrating
screen
(56)

57. Paragominas bauxite mining costs
• Labor largest cost factor Paragominas bauxite mining costs 2010
• Influenced by Brazilian wage level
• Productivity improvements
Sustaining
capital; 9 %
Other costs; 19
• Maintenance/consumables %
• Influenced by Brazilian inflation
Labor; 25 %
• Energy cost – power and fuel
Maintenance/
consumables,
19%
Support & Energy; 16 %
infrastructure; 12
%
(57)

58. Paragominas priorities
Bauxite production, million tonnes • Operational improvements
10
• Housekeeping and safety
9 • Improve performance stability
8
• Beneficiation plant
• Dewatering filters in Alunorte
7
• Stripping ratio
6
• Recovery rate
5 • Improved production system
4
3 • Target significant production increase
2
• Nameplate capacity of 9.9 million tonnes
1
0
2007 2008 2009 2010 Target
(58)

59. Alunorte - production process
Bauxite dewatering
Steam
Alumina
Al2O3
Powerhouse Bauxite Caustic soda
Evaporation Test tank
Calcination
Digestion
Hydrate
Classification
(Al(OH)3)
Precipitation Decanters Mud residue
(59)

60. Alunorte priorities
Alumina production, million tonnes • Operational improvements
7
• Housekeeping and safety
• Improve plant efficiency
6
• Performance in older lines
5 • Availability of coal boilers
• Dewatering filters
4 • Port costs
• Improved production system
3
2 • Targeting stable production above
6 million tonnes
1
• Nameplate capacity of 6.3 million tonnes
0
1995 1997 1999 2001 2003 2005 2007 2009
(60)

61. Favorable integrated alumina cash cost position
• Integrated alumina cash cost position 2010 Integrated alumina cash cost position 2010
• USD 238 per tonne
• Alunorte, Paragominas and sourced alumina
Sourced alumina;
• Bauxite
8%
• Cash cost to be improved as Paragominas increase
production and pipeline is fully utilized
• Energy Other costs; 15 %
• First-quartile energy consumption – 8 MJ/t Bauxite; 36 %
• Energy mix of heavy fuel oil and coal
• Caustic soda
• Competitive caustic soda consumption due to bauxite
with low level of reactive silica
Energy; 31 %
• Other costs Caustic soda,
• Maintenance, labor and other 10%
• Sourced alumina
• Alumina purchased for resale
(61)

62. Expansion projects - CAP and Paragominas III
• Capacity
• CAP alumina refinery I
• 1.9 million tonnes
• Paragominas bauxite mine expansion III
• Up to 15 million tonnes
• Time schedule
• CAP refinery I planned to produce in 2015
• Paragominas expansion developed in
parallel
• Investment estimates and expansion
concepts under evaluation
• Competitive cost position
• Full utilization of existing bauxite pipeline
• Technology and project execution for
CAP built on Alunorte experience
(62)

63. Business model – volume flows
1 000 tonnes, pro forma 2010
External
sourcing 2 100
alumina External 1)
2 100 4 500 alumina sales
Paragominas 7 500 Commercial
Prod (100%) 7 500 operations
Alunorte Internal 2)
Hydro availability Prod (100%) 5 300 Hydro 2 900 alumina sales
100% 5 800 availability
Alumina 7 400
Hydro Bauxite 900
availability
Equity 91%
MRN 6 700
Prod (100%) 17 000
900
External
Hydro availability bauxite sales
Equity 5%
900
Contract 40%
1) Third party customers and non-consolidated joint ventures
2) Fully owned smelters and consolidated joint ventures
(63)

64. Attractive alumina position
1 000 tonnes
9 000
Open position not committed to sales contracts
8 000
Sourcing contracts
7 000
CAP equity
6 000
Alunorte equity
5 000
4 000
3 000 Smelter demand*
2 000
1 000
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
*Sunndal 3 line assumed back in operation, Neuss and Søral at 2010 production level
(64)

65. Shift towards shorter contract durations
% of LME per tonne alumina for Contract durations
long-term contracts
<2000 2011
13.00-14.00% 13.25-15.25%
12.00-13.00%
20% 20%
25%
45%
35%
55%
Long-term contracts (>6 years)
Medium-term contracts (3-5 years)
1990-2000 2000-2005 2005-2010 Spot (< 2 years)
Source: Hydro estimates
(65)

66. Alumina pricing shifting from LME-link to
alumina market fundamentals
• Future pricing should reflect the
fundamentals of the bauxite and
alumina value chain
• Bauxite, a fight for cost efficient
resources going forward
• Index pricing and shorter term
contracts
(66)

67. Hydro’s commercial strategy
• Move towards index pricing
• Currently not offering medium/long-term LME
linked contracts
• Actively promote index pricing
• Focus on contracts with 1-4 year duration
• Focus on selling to end-users
• Hydro’s existing combined sales portfolio
• Average alumina price ~13-14% of LME
• Similar percentage expected for 2011-2015
• Minor volumes available for sale before 2016
• Majority of sales contracts expire in 2016-2018
(67)

68. Strong social and environmental commitment
• Strategic partnerships to establish
basis for multi-party dialogue
• Social program/community investments
based on input from stakeholders
• Reforestation
• World-leading experts to review
rehabilitation program
• Health and safety top priority
• Ambition to be industry benchmark
• Hydro’s values and culture important
for further improvements
(68)

69. Primary Metal
(69)

70. World-wide production network
Primary aluminium annual production capacity Norway, 880 000 tonnes
• Sunndal (100%) : 375 000 tonnes
• Årdal (100%): 190 000 tonnes
Canada, 115 000 tonnes • Karmøy (100%): 170 000 tonnes
• Alouette (20%): 115 000 tonnes 42% • Høyanger (100%): 60 000 tonnes
• Expansion potential • Søral (50%): 85 000 tonnes
6%
Germany, 230 000 tonnes
11% • Neuss (100%): 230 000 tonnes
2.1
Slovakia, 90 000 tonnes
4%
• Slovalco (55%): 90 000 tonnes
million tonnes
Qatar, 300 000 tonnes
14% • Qatalum (50%): 300 000 tonnes
• Ramping up during first half 2011
• Expansion potential
11% Australia, 240 000 tonnes
Brazil , 235 000 tonnes 12%
• Kurri Kurri (100%): 175 000 tonnes
• Albras: (51%): 235 000 tonnes • Tomago (20%): 65 000 tonnes
Attributable capacity: 2.1 million mt. Consolidated capacity: 2.4 million tonnes, Slovalco and Albras are consolidated) The smelters have an additional
remelt capacity: 0.6 million tonnes. Consolidated casthouse capacity: 3.0 million tonnes. Qatalum and Søral are equity accounted in Hydro’s results.
(70)

71. Strong focus to further improve cost position
Estimated primary aluminium production Estimated business operating cost 2014 by CRU
cash costs USD/tonne
Full year 2010, USD/tonne
2 800 2 800
Hydro
Peer companies
2 400 2 400
2 000 2 000
1 600 1 600
Hydro
1 200 1 200
Accumulated world capacity, 1 000 tonnes
800 800
Rusal Rio Tinto Hydro Alcoa C entury 0 10 000 20 000 30 000 40 000 50 000 60 000
Estimated primary aluminium production cash costs including casthouse margin based on company reports. Assumptions: Hydro cash costs increased by USD
50/tonne for relining cost in order to compare with Alcoa. Pricing: Century 1 month LME cash lag, Hydro 3 months and 20 days LME forward lag, Alcoa, Rio
Tinto and Rusal 15 days LME cash lag.
Source: CRU, BOC
2014: LME 2 145 USD/tonne (real 2010)
(71)

72. Improvement program: USD 300 per tonne
Cost reduction target from 2009 level for ~1 000 000 tonnes annual capacity
300
Operational improvements
• Improved current efficiency
• Reduced power consumption
• Reduced anode consumption
Fixed cost reductions
and lean operations 200
125
Further operational improvements
Technology costs/spin-offs USD
300/tonne
Investments 100
Maintenance and relining 50
Procurement
Logistics 0
Realized 2011 2012 2013
2010 onwards
Organization and manning
Casthouse product margin
(72)

73. Attractive Qatalum fundamentals
Joint venture (50/50) between World-class smelter
Qatar Petroleum and Hydro • Cash costs estimated around
1 400-1 500 USD per tonne at 2010
• Capacity: 585 000 tonnes market conditions when in full production
2011 focus
Ideally located to serve all major
• Ramp-up to be completed by June 2011
markets in Asia, US and Europe
• Stabilize production and cost optimization
(73)

74. Qatalum in full production from June 2011
• 440 of 704 cells producing by end-Q1
• 80 000 tonnes produced in Q1 (100%)
• Ramp-up is continuing towards full
production from June
• Final ramp-up dependent on commissioning
of power plant steam turbines
• Insurance expected to cover a majority
of loss related to August power outage
• NOK 145 million recognized in Q1 result
• NOK 300 million recognized in Q4 result
• Remaining insurance coverage expected to
be recognized at final insurance settlement
• World-class cost position
• Cash costs estimated around USD
1 400-1 500 per tonne at 2010 market
conditions when in full production
(74)

75. Qatalum facts
• Capacity
• Smelter: 585 000 tonnes per year
• 704 cells in 2 double-lined potrooms
• Anode plant, casthouse and 1 350 MW power plant
• Possible expansion to 1 200 000 tonnes per year
• Hydro’s proprietary smelting technology
• Investment
• ~USD 5.7 billion (100%)
• 46% equity, 54% project financed
• Satisfactory project economics at LME 1 900 USD/tonne
• Engineering Procurement Construction (EPC) contract
philosophy
• Maximize competition by involving resources and
experience of several principal aluminium contractors
for 11 EPC packages
• Compensation formats mainly lump-sum
• Financials
• Depreciated over ~20 years
• Marginal tax implications
• First quartile cash cost based on very competitive gas
contract
(75)