Hydro AluminiumAluminium

Creating Innovative and Sustainable Solutions for Today’s Challenges and Tomorrow’s Opportunities

Jon-Harald NilsenExecutive Vice President

Metal Bulletin’s 19th International Aluminium Conference19–21 September 2004

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Welcome to Norway Welcome to Norway

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Well developed aluminium industry cluster in Norway

Metal plant

Recycling plant

Extrusion plant

Rolling mill

R&D Centre

Large aluminium processing plantUniversities & Research Institutes

Sunndal

Raufoss

Trondheim

OsloKarmøy

Mosjøen

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A fully integrated global aluminium companyBauxite/alumina

Virgin metal

Fabrication& Systems

Automotive

Casthouse products

Rolling Extru-sion

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8000 8600 9500 10700

50005600

60005600 58006200

660048005100

55005900

24002500

27003000

24002500

2700

2900

5200

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

2001 2003 2005 2007

Other

Durables

Electrical &engineering 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: Brook Hunt; Hydro Aluminium

1 000 tonnes

% growth per segment

5.6

3.2

3.6

5.1

4.0

3.8

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US24 %

Europe25 %

Japan9 %

China19 %

Other Asia13 %

Other10 %

US18 %

Europe21 %

Japan6 %

China28 %

Other Asia14 %

CIS5 %

Other8 %

Global primary demand 200327.3 million tonnes

Global primary demand 2012E42 million tonnes

Sources: CRU; Hydro Aluminium

China emerging as a major aluminium market

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-5 000

-4 000

-3 000

-2 000

-1 000

0

1 000

2 000

3 000

4 000

Asia* Europe USA China Canada SouthAmerica

Australia &NZ

CIS Rest ofworld

20002005E2012E

Net exports, primary aluminium1 000 tonnes

Metal deficits in Europe andthe USA will continue to grow

Source: CRU, Hydro Aluminium * Excluding China

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Customer responsiveness

Agile organization

Unique portfolio

Creating value through innovative solutions

Technology

Business concepts Applications

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Properties of aluminium utilized in advanced application areas

Properties of aluminium:! Strong and light! Highly corrosive resistant! Good conductivity! Good reflective qualities

Aluminium is the ideal material for the building, automotive and packaging industries

! Easy to form and process! Impermeable and odourless! Non-flammable! Good recyclability! Good energy absorption qualities

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Light-weighting the front end in automotive

aluminium29.4

steel17.4

since 7/2003(aluminium

+ steel)

0.8 kg glue

steel67.5 kg

�= 19.9 kg

before 7/2003(steel)

47.6 kg

Comparison of weight

BMW 5-Series:

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Innovative solutions in buildingAluminium in windows and facades contribute to sustainable buildings:

! Reduced energy consumption in construction and use ! Maximized user comfort on thermal aspects and daylight utilization ! End-of-life recycling and high architectural flexibility

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HYBRAZ™ simplifies the production process and improves environmental aspects

New HYBRAZ™ PF Old technology

! Elimination of fluxing and degreasing operations! Improved cosmetic appearance of brazed radiator core ! Increased productivity with up to 80% ! Possible first time yield increase from 93% to almost 100%

The new coating presents clear benefits:

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Superior packaging solutions

! Protection of food quality to withstand influences from:! Oxygen! Water and light! Microorganisms

! Neutral smell and taste ! Non-toxic! Wide range of decorative

aspects

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Innovative smelter technology –reduced emissions

! HAL 250 technology with forced suction

! Best available technology in fume treatment

! Cooling boxes for butts and bath material

! Pneumatic ship-unloading and fully automatic closed handling of alumina

Strong focus to improve external and internal working environment:

Sunndal metal plant

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Advanced filtration and casting systems – one quality to customers

Technology that ensures top quality casthouse products with metal input from different sources, also giving flexibility in the optimization of supply mix and logistics

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Common efforts needed to strengthen the position of aluminium Common efforts needed to strengthen the Common efforts needed to strengthen the position of aluminium position of aluminium

International Aluminium Institute

" Global sustainable developmentinitiative (global targets)

" Global aluminium Life Cycle Inventory

" European aluminium industrySustainable Development Report

" Life Cycle Inventory" Stakeholders workshop" Aluminium for Future Generations

European Aluminium Association

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Enjoy your trip!

HA SunndalHA Sunndal HA RaufossHA Raufoss