Third quarter 2003 - Norsk Hydro 482 452 540 552 484 489 0 100 200 300 400 500 600 Oil Gas Norsk Hydro – Third quarter 2003 15 Operating costs per barrel 45554E - 10.2003 - *15 -

Third quarter 2003Third quarter 2003Third quarter 2003

Norsk Hydro ASA20 October, 2003

Norsk Hydro ASANorsk Hydro ASA20 October, 200320 October, 2003

45554E - 10.2003 - *2 - Hydro Media

Norsk Hydro – Third quarter 2003 2

Highlights third quarter 2003Highlights third quarter 2003

� A satisfactory quarter� Strong Oil & Energy results� Aluminium – good progress in internal

improvements, challenging markets � Solid Agri performance

� On track for Agri listing first half 2004

� Divestment program close to completion

45554E - 10.2003 - *3 - Hydro Media

Norsk Hydro – Third quarter 2003

Net income*Net income*

3

0

1 000

2 000

3 000

4 000

5 000

6 000

2000 2001 2002 2003*Accumulated

13 981 7 892 8 765 7 203

Per quarterPer quarter

2 4512 775

3 896

4 859

3 235

2 180

1 333 1 144

Gains from divestments

2 132

NOK million

2 840

513

3 280

2 482

* Including the effect of change in accounting principles for 1st quarter 2003 amounting to a positive effect of NOK 281 million

2 324 2 397

45554E - 10.2003 - *4 - Hydro Media


Earnings per share*Earnings per share*

4

0 2 4 6 8

10 12 14 16 18 20 Gains from divestments

NOK

2000 2001 2002 2003

53.4 30.5 34.0 26.8

9.410.6

14.9

18.6

12.4

8.4

5.24.4

8.3

11.0

2.0

12.7

* Before effect of change in accounting principles

Accumulated

8.5 9.0 9.3

45554E - 10.2003 - *5 - Hydro Media


Consolidated income statements Consolidated income statements

5

2.00513

3 171(2 701)

43

(628)3 799

(356)210

-

3 94540 813

3rd quarter2002

9.30Earnings per share* - NOK2 397Net income

6 363(4 039)

73

Income before tax and minority interestIncome tax expense Minority interest

(2)Interest expense and foreign currency gain (loss)6 365Earnings before interest expense and taxes (EBIT)

181315139

Equity in net income of non-consolidated investeesInterest income and other financial incomeOther income

5 730Operating income41 857Operating revenues

3rd quarter2003NOK million

* For calculation of EPS, 3rd quarter 2003: 257 269 550 shares,3rd quarter 2002: 257 960 532 shares

45554E - 10.2003 - *6 - Hydro Media


Net financial income (expense)Net financial income (expense)

6

(418)313Net financial income (expense)

(628)(2)Interest expense and foreign exchange gain (loss)

(761)162

30(59)

(652)207475(32)

Interest expenseCapitalized interestNet foreign exchange gain (loss)Other

210315Interest income and other financial income

305(95)

27837

Interest income Dividends and net gain (loss) on securities

3rd quarter 2002

3rd quarter 2003NOK million

45554E - 10.2003 - *7 - Hydro Media


Operating incomeOperating income

7

Individual operating segmentIndividual operating segment

3 9455 730Total

19(92)

(318)(268)

Other ActivitiesCorporate and eliminations

412530Hydro Aluminium436464Hydro Agri

441(18)

12(23)

57118(4)

(55)

MetalsRolled ProductsExtrusion and AutomotiveOther and eliminations

3 1705 322Hydro Oil and Energy

2 583587

-

4 579739

4

Exploration and ProductionEnergy and Oil MarketingEliminations

3rd quarter2002


45554E - 10.2003 - *8 - Hydro Media


Variance analysis Hydro groupVariance analysis Hydro group

8

5 652

1 30435

286751

3 276

1 130(775)2 470(295)(725)1 770

180445190

(1 114)

5 652

30 85525 203

Year to date

1 785Variance operating income

2 924Variance EBITDA

540107139353

- Non-consolidated investees- Interest income and other- Other income- Depreciation and amortization

435335920

(595)(425)1 080

(65)420(10)

(310)

- Prices and currency, E&P *- Margin incl. currency effects- Volume- Fixed costs- Depreciation- Production and exploration costs, E&P *- Infrequent items and restructuring costs - Trading and unrealized LME effects, Aluminium - New / disposed business- Other


10 4147 490

20032002

3rd quarterNOK million

* Exploration and Production

45554E - 10.2003 - *9 - Hydro Media


Earnings before interest, tax, Earnings before interest, tax, depreciation and amortization (EBITDA)depreciation and amortization (EBITDA)

11 359 11 16410 996

12 387

7 297

10 455

8 588

10 349

9 125 9 2779 970

7 490

10 414

9 131

12 877

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

2000 2001 2002 2003

9

Accumulated46 609 37 757 35 658 30 855

Per quarterPer quarterNOK million

45554E - 10.2003 - *10 - Hydro Media


Net interestNet interest--bearing debt/ bearing debt/ shareholders’ equity*shareholders’ equity*

0.41

0.28

0.44

0.24

0

0.1

0.2

0.3

0.4

0.5

0.6

2000 2001 2002 30.09.2003

10

Ratio

* Net interest-bearing debt divided by shareholders' equity plus minority interest

45554E - 10.2003 - *11 - Hydro Media


DivestmentsDivestments –– status status

11

9.0 Total0.4 CompletedOther0.2 SignedGjøa 0.2 CompletedCarmeda

0.6 CompletedVarious E&P assets1.8 SignedScanraff2.6 CompletedTreka assets3.2 CompletedFlexible Packaging

Enterprise valueNOK billion

StatusBusiness unit

Oil and Energy Oil and Energy –– highlights third quarterhighlights third quarter

12

45554E - 10.2003 - *12 - Hydro Media

� Strong results for oil and gas activities� Good production performance – high regularity, cost discipline� High oil and gas prices

� Projects� Ormen Lange – principles for Norway-UK treaty in place� Grane and Fram Vest in production

� Exploration� Discoveries on NCS (Ringhorne Øst and Klegg)� Anaran farm-out in Iran approved

� Energy� Agreement to sell Hydro’s interest in Scanraff signed


30 641 22 687

Oil and EnergyOil and EnergyEBITDAEBITDA

13

45554E - 10.2003 - *13 - Hydro Media

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

EliminationsEnergy and Oil MarketingExploration and Production

EBITDAEBITDA

27 604 25 340

6 982

7 6977 976 7 986 7 894

7 425

6 757

5 528

NOK million

2000 2001 2002 2003

5 8476 155

5 451

7 887

Accumulated

8 668

6 274

7 745


421

Petroleum productionPetroleum production

14 14

Per quarterPer quarter1 000 boe/day

45554E - 10.2003 - *14 - Hydro Media

Average per year:480 416 508

2000 2001 2002 2003

337 325 313333 334

311 328 336 338378 364

397 396372 373

10486

57

110 9374

115 110104

88

143 156

112 116

91

442411

371

443 427385

419451 448

482452

540 552

484 489

0

100

200

300

400

500

600 Oil Gas


15

Operating costs per barrelOperating costs per barrel

45554E - 10.2003 - *15 - Hydro Media

NOK/boe

Mill boe produced 139175154151

* Hydro’s net cost as an owner and user of transportation and processing

99.7

86.691.5 90.1

0

20

40

60

80

100

Exploration 11.2 9.1 20.3 7.8Net transportation * 7.3 8.5 9.0 7.1Other cost/income 1.7 2.3 2.0 2.5Deprec.& aband. 49.0 46.4 46.4 47.1Field/Prod. cost 22.3 23.8 22.0 22.1Total 91.5 90.1 99.7 86.6

2000 2001 2002 Jan-Sep 2003


16

Exploration activities third quarterExploration activities third quarter

45554E - 10.2003 - *16 - Hydro Media

Dry10%Norway – Isac (PL 189)

Discovery28.5%Norway – Klegg (PL036)

Dry13.5%Norway – Gråspett (PL128)

Ongoing - Q475%Iran – Anaran (Azar well) Dry15%Canada – Terra Nova Far EastDiscovery13.5%Norway – Ringhorne Øst (PL169)

StatusHydro shareLocation


Oil and Energy Oil and Energy –– prospectsprospects

17

45554E - 10.2003 - *17 - Hydro Media

� Production target 2003 increased to 520 000 boe/day� Fourth quarter target is 560 000 boe/day

� Ormen Lange PDO expected fourth quarter

� Exploration activities in Iran, Libya and Angola

� Asset sales pending approval� Scanraff – gain of NOK 600 million (net of tax)� Gjøa – gain of NOK 250 million (net of tax)


Aluminium Aluminium –– highlights third quarterhighlights third quarter

18

45554E - 10.2003 - *18 - Hydro Media

� Earnings influenced by weak markets� Higher aluminium prices offset by weaker USD� Continued pressure on downstream margins� Contributions from hedging and trading

� Improvement programs ahead of plan

� Important strategic decisions� Alunorte alumina expansion approved� Söderberg capacity in Årdal and Høyanger

not to be replaced


4 689

AluminiumAluminium

19

45554E - 10.2003 - *19 - Hydro Media

- 500- 250

0 250 500 750

1 0001 2501 5001 7502 000

Other and EliminationsExtrusion and AutomotiveRolled ProductsMetals

NOK million

20012000 2002 2003

5 501

1 8031 659

1 566

473

1 430

889526

(302)

899

1 292

EBITDAEBITDA

827

1 316

Accumulated

1 5721 619

1 498

2 543 4 334


Aluminium Aluminium –– Business commentsBusiness comments

20

45554E - 10.2003 - *20 - Hydro Media

� Metals – satisfactory operational performance� Volume increases as capacity comes on stream� Strong performance by casthouse operations

� Rolled Products – improved results, still not satisfactory

� Extrusion & Automotive – challenging markets� Extrusion – satisfactory performance� Automotive – new products add volumes � North America – operational improvements


Aluminium Aluminium ––improvement program on trackimprovement program on track

21

45554E - 10.2003 - *21 - Hydro Media

50010991300*-Aluminium714240-10700Magnesium

TotalEstimateYTD 2003 20022001

RemainingRealizedRestructuring 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

Q3-2002

Q4-2002

Q1-2003

Q2-2003

Q3-2003

Target2003

Magnesium Aluminium

Cost reductions

0

500

1 000

1 500

2 000

2 500

3 000

Q3-2002

Q4-2002

Q1-2003

Q2-2003

Q3-2003

Target2003

Target2004

Magnesium Aluminium


Aluminium Aluminium –– prospectsprospects

22

45554E - 10.2003 - *22 - Hydro Media

� Fourth quarter outlook� Uncertainty on aluminium price development� No imminent downstream market recovery,

demand seasonally lower� Downstream margins remain under pressure� Lower contributions expected from hedging and trading

� Strengthen performance through internal measures� Complete current improvement program � Turnaround under-performing units

� Investments to improve cost position� Sunndal, Alouette, Alunorte


AgriAgri –– highlights highlights third quarterthird quarter

23

45554E - 10.2003 - *23 - Hydro Media

� Solid results � Fertilizer prices further improved� Negative impact from currency and energy costs

� Positive start of European fertilizer season� Satisfactory demand for early deliveries� Low imports to Europe

� Good results outside Europe and for industrial products


AgriAgri

9511 078

705 819

1 570

1 008

725

1 099

1 383

1 198

719 645

1 2021 073

989

0 200 400 600 800

1 0001 2001 4001 6001 800

EBITDAEBITDA

24

3 553 4 402 3 945 3 264

NOK million

Accumulated

45554E - 10.2003 - *24 - Hydro Media

20012000 2002 2003


AgriAgri –– prospectsprospects

25

45554E - 10.2003 - *25 - Hydro Media

� Favorable global market balance

� Positive market situation for nitrogen fertilizers in Europe

� High energy costs

� Negative currency effects also next quarter


45554E - 10.2003 - *26 - Hydro Media


Norsk Hydro Norsk Hydro –– priorities aheadpriorities ahead

26

� Successful Agri separation and listing

� Internal improvement measures� Complete Aluminium improvement program� Streamline support functions

� First class project execution

� Capital discipline

Additional informationAdditional informationAdditional information

45554E - 10.2003 - *28 - Hydro Media


Adjusted income third quarter 2003Adjusted income third quarter 2003

28

-280

462*(182)

-

-462

18--

444-

Adjust-ments

10.402 677

6 825(4 221)

73

(2)6 827

199315139

6 17441 857

AdjustedIncome

9.30Earnings per share** - NOK2 397Net income

6 363(4 039)

73

Income before tax and minority interestIncome tax expense Minority interest

(2)Interest expense and foreign currency gain (loss)6 365Earnings before interest expense and taxes (EBIT)

181315139

Equity in net income of non-consolidated investeesInterest income and other financial incomeOther income

5 730Operating income41 857Operating revenues


* Positive one-time effect regarding tax ruling in Norway (NOK 139 million) and estimated tax effect on other adjustments (NOK 43 million), in total NOK 182 million

** For calculation of EPS, 3rd quarter 2003: 257 269 550 shares

45554E - 10.2003 - *29 - Hydro Media


Adjusted income third quarter 2003Adjusted income third quarter 2003

29

6 8274626 365Earnings before interest expense and taxes (EBIT)(2)-(2)Interest expense and foreign currency gain (loss)

--

280

462**(182)

-

18--

444

310(12)

8066

-29

*37-

-

---

Adjustments

5 3225 322Hydro Oil and Energy5714733

(55)

57118(4)

(55)


596530Hydro Aluminium544464Hydro Agri(8)

(280)(318)(268)


6 1745 730Total operating income

10.409.30Earnings per share – NOK2 6772 397Net income

62%63%Tax %

6 825(4 221)

73

6 363(4 039)

73

Income before tax and minority interestIncome tax expenseMinority interest

199315139

181315139

Equity in net income in non-consolidated investeesInterest income and other financial income Other income

4 579739

4

4 579739

4


Adj. Income3rd quarter 2003NOK million

* Impairment charges of NOK 63 million (no impact on EBITDA) and infrequent items of NOK 26 million.**Positive one-time effect regarding tax ruling in Norway (NOK 139 million) and

estimated tax effect on other adjustments (NOK 43 million), in total NOK 182 million.

45554E - 10.2003 - *30 - Hydro Media


Infrequent and other items impacting Infrequent and other items impacting third quarter 2003 earningsthird quarter 2003 earnings

80Operating incomeAgriProvision for bad debt

Income tax

Income before tax

Equity in net income in non-consolidatedinvestees

Operating income

Operating income

Operating income

Operating incomeOperating income

Reporting line

462Net impact on income before tax

(139)Hydro GroupPositive one-time effect on income tax due to tax ruling

18AluminiumUnrealized currency loss relating to revaluation of Alunorte (Brazil) USD-debt

444Net impact on operating income

(12)Corporate and eliminations

Elimination of unrealized loss on internal power contracts

310Other activitiesProvision for bad debt and impairmentcharges in Biomar A.S.

633

AluminiumAluminium

Impairment chargesOther infrequent items, net

NOK millionSegmentItem

45554E - 10.2003 - *31 - Hydro Media


EBITDAEBITDA

31


365128

258(76)


719989Hydro Agri8271 498Hydro Aluminium

7 49010 414Total

474101274(22)

991184377(54)



4 624 827

-

6 814927

4


3rd quarter 20023rd quarter 2003NOK million

45554E - 10.2003 - *32 - Hydro Media


Operating income Operating income –– EBIT EBIT –– EBITDAEBITDAThird quarter 2003Third quarter 2003

37

39

7

(3)

5

61

(2)-

(11)

2(12)(1)

Selected fin. items

139

139

-

-

-

--

--

-

---

Other income

6 365

(102)

(78)

651

569

59116

17(55)

5 325

4 596726

3

EBIT

4 049

360

2

338

929

400168

3601

2 420

2 218201

1

Depr.and

Amort.

5 730

(318)

(268)

464

530

57118

(4)(55)

5 322

4 579739

4

Operating income

181

25

-

126

32

15(1)

18-

(2)

7(9)

-

Non-cons investees

258

(76)

13

183


98964Hydro Agri

1 4982Hydro Aluminium

10 414278Total

991184

377(54)

(1)(2)

5-


7 74516Hydro Oil and Energy

6 814927

4

88-


EBITDAInterest incomeNOK million

32

45554E - 10.2003 - *33 - Hydro Media


DepreciationDepreciation


33

3 5693 933Total

4022

3593


688901Hydro Aluminium269305Hydro Agri

316116256

388154359

MetalsRolled ProductsExtrusion and Automotive


2 021187

2 217148

Exploration and ProductionEnergy and Oil Marketing

3rd quarter2002


45554E - 10.2003 - *34 - Hydro Media


Equity in net income of Equity in net income of nonnon--consolidated consolidated investeesinvestees


34

(356)181Total

10-

25-


(370)32Hydro Aluminium(50)126Hydro Agri

(329)(18)(23)

15(1)18

MetalsRolled ProductsExtrusion and Automotive

54(2)Hydro Oil and Energy

648

7(9)

Exploration and ProductionEnergy and Oil Marketing

3rd quarter2002


45554E - 10.2003 - *35 - Hydro Media


Consolidated balance sheetConsolidated balance sheet

35 35

294.10207 211

7 3061 958

38 59330 90214 63336 809

1 14375 867

207 211

5 9652 647

40 55317 232

140 814

31.12.2002

288.10209 046

8 0482 062

40 60433 24714 32535 254

1 17574 331

209 046

10 5711 956

39 64317 238

139 638

30.09.2002

220 223Total liabilities and shareholders' equity329.70Shareholders' equity per share, NOK

5 9941 192

46 66329 42317 33334 299

66984 650

Short-term interest-bearing debtCurrent portion of long-term debtOther short-term liabilitiesLong-term interest-bearing debtOther long-term liabilitiesDeferred tax liabilitiesMinority interestShareholders' equity

220 223Total assets

16 4611 742

41 29916 876

143 845

Cash and cash equivalentsOther liquid assetsReceivablesInventoriesNon-current assets

30.09.2003NOK million

45554E - 10.2003 - *36 - Hydro Media


Net interest bearing debt*Net interest bearing debt*

36

29.7

21.1

34.2

20.1

0

5

10

15

20

25

30

35

40

2000 2001 2002 30.09.2003

NOK billion

* Interest bearing debt less cash and cash equivalents

45554E - 10.2003 - *37 - Hydro Media


Statement of Cash FlowStatement of Cash Flow

37

(490)572Foreign currency effect on cash flows(16 577)10 496Net increase (decrease) in cash and cash equivalents

(5 716)(7 626)Net cash used by financing activities

(30 155)(5 674)Net cash used in investing activities

592(3 785)

-53

(2 576)

181(4 605)

(555)64

(2 711)

Financing activities:Loan proceedsPrincipal repaymentsOrdinary shares purchasedOrdinary shares issuedDividends paid

(14 193)(17 171)

(531)698

1 042

(10 945)(826)

968739

4 390

Investing activities:Purchases of property, plant and equipmentPurchases of other long-term investmentsNet sales (purchases) of short-term investmentsProceeds from sales of property, plant and equipmentProceeds from sales of other long-term investments

19 78423 224Net cash provided by operating activities

5 48510 2064 093

7 20311 0794 942

Operating activities: Net incomeDepreciation, depletion and amortizationOther adjustments

Year to date 2002

Year to date 2003NOK million

Variance analysis Oil and EnergyVariance analysis Oil and Energy

38

45554E - 10.2003 - *38 - Hydro Media

5 234

(41)(14)249454

4 586

3 145320

(2 440)105

___________________1 130

3391 820

120(395)(115)1 885(195)

5 234

22 68717 453

Year to date

2 152Variance Operating income


(56)(13)

-211


360240(180)

15___________________

435(16)72015

(155)40

1 04075

- Prices and currency- Oil- Gas- Currency- Put options

- Margin - Volume- Fixed costs- Depreciation- Production costs- Exploration costs- Other


7 7455 451

20032002



Variance analysis Variance analysis Exploration and ProductionExploration and Production

39

45554E - 10.2003 - *39 - Hydro Media

4 948

(8)(4)

(77)529

4 508

3 145320

(2 440)105

___________________

1 130

2 340(525)(115)1 885(205)

4 948

19 81214 864

Year to date

1 996Variance operating income


1(3)(1)

197


360240

(180)15

___________________

435

605(195)

401 040

75

- Prices and currency- Oil- Gas- Currency- Put options

- Volume- Depreciation- Production costs- Exploration costs- Other


6 8144 624

20032002



Variance analysis Variance analysis Energy and Oil Marketing Energy and Oil Marketing

40

45554E - 10.2003 - *40 - Hydro Media

306

(33)(10)326(75)

98

359(520)

120130

10

306

2 8952 589

Year to date

152Variance operating income

100Variance EBITDA

(57)(10)

114


4115(10)

405

- Margin- Volume- Fixed costs- Depreciation- Other

100Variance EBITDA

927827

20032002



Price development Price development –– crude oilcrude oil

41

Average Brent Blend dated per quarterAverage Brent Blend dated per quarter

45554E - 10.2003 - *41 - Hydro Media

USD/bbl NOK/bbl

USD/bbl NOK/bbl

0

5

10

15

20

25

30

35

1994 1995 1996 1997 1998 1999 2000 2001 2002 20030

40

80

120

160

200

240

280

3rd quarter 2003: 208.70 NOK/bbl28.43 USD/bbl


New fields on stream 2003New fields on stream 2003––20062006

42

Hydro share boe/dayDevelopmentPDO SubmittalPDO Approval/SanctioningStart Production

NC

S no

n-op

erat

orIn

tern

atio

nal

NC

S O

pera

tor

Jasmim 4 000

Dalia 22 000

Kharyaga 2+3 15 000 (phase 1-3)

Murzuq 6 000 (A+D field)

Grane 77 000

Fram Vest 14 000

Visund gas phase 17 900

Snøhvit 12 000

Kvitebjørn 25 000

Mikkel 5 000

Kristin 28 000

2000 2001 2002 2003 2004 2005 200645554E - 10.2003 - *42 - Hydro Media


Hydro productionHydro shareQ3 2003Q3 2002Boe/day

20 11010.00201 000179 000Girassol

5 88013.2844 00051 000Vigdis6 38522.5028 00032 000Njord7 11524.4429 00037 000Brage8 25020.3041 00040 000Visund

8 9838.85/9.40/10.0097 000100 000Sleipner Area

11 2908.10139 000187 000Norne

23 2389.65349 000381 000Ekofisk

17 48715.00117 00086 000Terra Nova

5 72040.0014 0000Tune

8 69413.2865 00082 000Tordis

22 0359.60230 000232 000Åsgard

17 599Other Fields372 787TOTAL OIL116 167GAS488 954Total Production

10 73734.0032 00049 000Oseberg East

18 8359.78193 000201 000Troll B19 1489.78196 000195 000Troll C21 3719.00237 000192 000Gullfaks

29 76934.0088 00076 000Oseberg South

57 12534.00168 000191 000Oseberg 42 61917.65241 000197 000Snorre

10 3975.00208 000166 000Hibernia

BOE/DayPercent

Production per fieldProduction per field

43

45554E - 10.2003 - *43 - Hydro Media


Exploration activity and costsExploration activity and costs

44

45554E - 10.2003 - *44 - Hydro Media

NOK million

Expensedshare

Capitalizedshare

- 400

- 200

0

200

400

600

800

1 000

1 200

1 400

1/00 2/00 3/00 4/00 1/01 2/01 3/01 4/01 1/02 2/02 3/02 4/02 1/03 2/03 3/03 4/03

Activity Expensed old wells Cost reduction repayment Angola


Variance analysis AluminiumVariance analysis Aluminium

45

45554E - 10.2003 - *45 - Hydro Media

1 671

918(45)519

279

(960)550

(220)(355)

540700

(255)285(5)

1 671

4 6893 018

Year to date


671Variance EBITDA

4027

144

- Non-consolidated investees- Interest income and other- Depreciation and amortization

(15)180

(240)(215)

110435(15)

-(120)

- Margin- Volume- Fixed costs- Depreciation- Infrequent items and restructuring costs- Trading and hedging- Unrealized LME-effects- New/disposed business- Other

671Variance EBITDA

1 498827

20032002



Variance analysis MetalsVariance analysis Metals

46

45554E - 10.2003 - *46 - Hydro Media

1 423

838(49)214

420

(875)255(90)

(150)290700305(15)

1 423

3 1621 739

Year to date


517Variance EBITDA

344(11)

54


(110)115

(175)(70)

-435

-(65)

- Margin- Volume- Fixed costs- Depreciation- Infrequent items and restructuring costs- Trading & price hedging- New/disposed business- Other

517Variance EBITDA

991474

20032002



Variance analysis Rolled ProductsVariance analysis Rolled Products

47

45554E - 10.2003 - *47 - Hydro Media

356

40-

137

179

(40)165(50)(75)(10)200(10)

356

567211

Year to date


83Variance EBITDA

181415


654515

(40)(5)

-(45)

- Margin- Volume- Fixed costs- Depreciation- Infrequent items- New/disposed business- Other

83Variance EBITDA

184101

20032002



Variance analysis Variance analysis Extrusion and AutomotiveExtrusion and Automotive

48

45554E - 10.2003 - *48 - Hydro Media

207

404

168

(5)

15130(80)

(130)50

(10)20

207

1 006799

Year to date

(16)Variance operating income

103Variance EBITDA

404

75


5020

(80)(105)

115-

(15)

- Margin- Volume- Fixed costs- Depreciation- Infrequent items- New/disposed business- Other

103Variance EBITDA

377274

20032002



Aluminium Aluminium –– Key figures by segmentKey figures by segment

49

45554E - 10.2003 - *49 - Hydro Media

*) excluding trading**) including LME hedges (hedge accounting) and LME forward contracts***)difference between realized exchange rate and spot rate at the transaction date

is reported as currency gain/loss and not included in EBITDA

6 0016 2615 914Extrusion and Automotive, external revenues (NOK million)

213230225Rolled Products external shipment (Kmt)7.817.337.33USD/NOK, realized ***)

1 3771 4171 445LME, realized (USD/t) **)521558651Total metal sales (Kmt) *) 348360381Primary production (Kmt)

Q3 2002Q2 2003Q3 2003Volumes and prices

274300377Extrusion and Automotive

101215184Rolled Products

4741 124991MetalsQ3 2002Q2 2003Q3 2003EBITDA


Aluminium priceAluminium price

50

USD/tonne

3 months LME price, average per quarter3 months LME price, average per quarter

45554E - 10.2003 - *50 - Hydro Media

1 000

1 200

1 400

1 600

1 800

2 000

90 91 92 93 94 95 96 97 98 99 00 01 02 03


Inventories Inventories –– primary aluminiumprimary aluminium

51

1 000 tonnes

45554E - 10.2003 - *51 - Hydro Media

Sources: IAI and LME2003: IAI figures per May, LME figures per June

0

1 000

2 000

3 000

4 000

5 00019

84

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

LME (London Metal Exchange)IAI (Producers' inventories)


Variance analysis Variance analysis AgriAgri

52

45554E - 10.2003 - *52 - Hydro Media

(36)

380(43)

(166)(102)

(105)

5015

(195)40

-(15)

(36)

3 2643 300

Year to date


270Variance EBITDA

17619

-47


455(10)

(375)(35)

-(5)

- Margin- Volume- Fixed costs- Depreciation- Infrequent items - Other

270Variance EBITDA

989719

20032002



Fertilizer pricesFertilizer prices

53

45554E - 10.2003 - *53 - Hydro Media

0

50

100

150

200

250

93 94 95 96 97 98 99 00 01 02 03

USD/tonne

0

50

100

150

200

250

93 94 95 96 97 98 99 00 01 02 03

USD/tonne

0

50

100

150

200

250

93 94 95 96 97 98 99 00 01 02 03

USD/tonne

0

50

100

150

200

250

93 94 95 96 97 98 99 00 01 02 03

USD/tonne

CAN GermanyBulk delivered warehouse

Ammonia Fob Caribbean

DAPBulk fob US Gulf

UreaBulk fob Middle East

Source: International publications

Q3

Q3

Q3

Q3


100

200

300

400

500

600

Jul-98

Oct-98

Jan-99

Apr-99

Jul-99

Oct-99

Jan-00

Apr-00

Jul-00

Oct-00

Jan-01

Apr-01

Jul-01

Oct-01

Jan-02

Apr-02

Jul-02

Oct-02

Jan-03

Apr-03

Jul-03

Oct-03

CAN Germany

Urea fob Middle East

Nitrate premium above urea priceNitrate premium above urea price

54

USD/mt Nitrogen

45554E - 10.2003 - *54 - Hydro Media


Variance analysis PetrochemicalsVariance analysis Petrochemicals

55

45554E - 10.2003 - *55 - Hydro Media

(32)

42(9)

-

(65)

(90)35

(20)--

10

(32)

253285

Year to date

(135)Variance operating income

(126)Variance EBITDA

15(9)

3


(135)30

(40)(5)

-15

- Margin- Volume- Fixed costs- Depreciation- Infrequent items- Other

(126)Variance EBITDA

28154

20032002



45554E - 10.2003 - *56 - Hydro Media


ForwardForward--Looking Statements/Looking Statements/Use of NonUse of Non--GAAP Financial MeasuresGAAP Financial Measures

In order to utilize the “safe harbour" 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 2002 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).

Documents

Third quarter 2003 - Norsk Hydro 482 452 540 552 484 489 0 100 200 300 400 500 600 Oil Gas Norsk Hydro – Third quarter 2003 15 Operating costs per barrel 45554E - 10.2003 - *15 -