(1) 2009-04-23

A catalyst for growth

Presented by Thomas Knutzen

May 18, 2009

(2) 2009-04-23

Primary aluminium smelter

• Enhanced economic growth and added value creation

• Building community capacity through skills development and job opportunities for all groups

• Generating increased tax revenues

• Infrastructure development• Electrical power

• Transmission

• Harbor

• Industrial park

- an opportunity to create industrial activity

(3) 2009-04-23

Long term stable employment

• 600 direct employees• 170 will require university degrees

• Close to 400 skilled workers

• Direct services 300 – 350 jobs • Maintenance, transportation and

logistics, cleaning, catering and canteen services

• Multigenerational employment

• Investments ~ USD 3 billion• 2 year construction – ~ 3,600 man-

years

• Power development

(4) 2009-04-23

A resourceful aluminium company

• More than 100 years of innovation and industrial development

• 23,000 employees

• Operations in 40 countries

• Turnover 2008:• NOK 88.6 billion (Euro 10.7 billion)

• Underlying EBIT 2008:• NOK 6 billion (Euro 0.7 billion)

Aluminium Metal

Aluminium Products

Energy

(5) 2009-04-23

Hydro in the aluminium value chain

Bauxite/alumina Energy

Primary aluminium

Semi fabrication

Metal products Remelt

Aluminium in products, recycling Primary aluminium production

65% equity in alumina

Solid long-term

coverage of power towards 2020

100% hydro-power in Norway

Solar energy

1.75 mill. mt/year

10 metal plants in 5 countries on 3

continents

5 250 employees(2 900 in Norway)

2.9 mill. mt/year (primary+remelt

+cold metal)

Special alloys

1.6 mill. mt/year

Operations in more than 30 countries

16 000 employees (1 800 in Norway)

502 000 ton remelt/year

11 remelters in 5 countries on 2

continents

•Equity•Long-term

power supply

•Cost position

•Technology

• Expertise in materials

•Technology

•Close to customers

•Innovation•Expertise in

materials

Production figures are from 2008

(6) 2009-04-23

Site for 450,000 tons capacity: 1700 x 600 metersNorsk Hydro Aluminum Smelter Layout

(7) 2009-04-23

Aluminium products 475 000 tpy

Coke 160 700 tpyPitch 38 300 tpy

Alumina 862 300 tpy

Manning 900 - 950(direct and outsourced)

Other materials 45 000 tpy

Emissions:Fluorides 0.15 kg/t AlSO2 25 kg/t AlDust 0,6 kg/t AlCO2 1900 kg/t AlAnode Plant

Potline450 000 tpy

Casthouse

Harb

ou

r

Anodes225 000 tpy

Aluminium Smelter

Aluminium Smelter Flow chart– 450,000 tons per year

Thermal Power5,5 GJ/tAl

Residues 18 000 tpy

Electrical Power14,2 kWh/kg Al

6,4 TWh/year

(8) 2009-04-23

Roads

Rail

Harbor

Water

Sanitation

National and local administration

Vocational training

R&D

Graduate and post graduate education

Housing

Retail trade

Taxes

IS-IT

Mech. engineering

Laboratory

CateringMaintenance

Hot water

Gas

Industrialcleaning

Compressed air

Power supply

Transmission

Transportation

Industrialbricklaying

Aluminium Plant - Direct

Local suppliers and services – Indirect

Local and regional infrastructure and services –Induced

Total value creation

(9) 2009-04-23

Norsk Hydro smelter

• Share infrastructure with local businesses and communities• Services to outside companies: Port,

sanitation, water treatment, industrial water, compressed air, laboratory, medical, security services, etc.

• Provide green energy – heat – to the local community

• Additional local value creation from induced activity

• Large smelter investment will demonstrate ability to attract foreign investors

– a catalyst for growth

(10) 2009-04-23

Norsk Hydro

• Norsk Hydro involved in building communities since 1905 – demonstrating responsibility throughout the life cycle of our investment.

• Close cooperation with the local community is key to success

• Early involvement of local education and stakeholders in planning of relevant training for future employment

- Building local communities

(11) 2009-04-23

Merging two perspectives

Standard presentation (short) - June 2008 11

Development/societal perspective

E.g. Economic Growth/GDP

Poverty Alleviation

Education

Social Stability

Public Health

Human Rights

Governance

Capacity Building

Enterprise Development

Environmental Sustainability

Broader development contribution

Bu

sin

ess

per

spec

tive

Infrastructure

Products and Services

Jobs

Skills and Training

Procurement

Taxes

Corporate Governance

Environmental Management

Business activity

Direct impacts

Indirect impacts

(12) 2009-04-23

(13) 2009-04-23

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