Norsk Hydro ASA — Earnings Release 2018

Jul 24, 2018

Results down on volumes and costs, higher realized prices

Q2 2018

Cautionary note

Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (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, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar.

Although we believe that the expectations reflected in such forward-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 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 limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for 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 key markets and competition; and legislative, regulatory and political factors.

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, future events or otherwise.

Svein Richard Brandtzæg

President and CEO

• •Underlying EBIT of NOK 2 713 million
• • Alunorte, Paragominas and Albras producing at 50%, affecting results negatively
• • Increased costs, mostly offset by higher realized all-in aluminium and alumina prices
• •Downstream results up on volume and margin

• •Higher prices and volume increases result from Energy

• • Better improvement program hit by Brazil situation, not expected to reach 2018 target

• •Karmøy Technology Pilot at full production
• • 2018 global primary market expected in deficit – continued market uncertainty on US tariffs, Rusal sanctions and Brazil situation

All result explanations versus same quarter previous year

Current status Brazil-situation

• • Alunorte producing at 50% following orders from environmental authorities and court
• Paragominas and Albras producing at 50%, due to reduced Alunorte production
• • Continued dialogue with Government of Pará, including state environmental agency SEMAS, and Ministèrio Pùblico
• • Other legal and political processes ongoing at state and federal level – Hydro cooperating with all relevant authorities to find solutions

Current status Alunorte

No overflows from bauxite residue deposits, measures implemented at Alunorte

• • Report from third-party environmental consultancy SGW Services and report from internal task force confirm:
• No overflows from bauxite residue deposits
• No indication of contamination of local communities
• No indication of any significant or lasting environmental impact to nearby rivers
• • Environmental authorities have stated there has not been any overflow from the bauxite residue area
• • Measures implemented to ensure continued safe and sound operations at Alunorte
• Short-term improvements of the water management and treatment systems mostly concluded
• Investment of NOK 500 million in increasing water treatment capacity by 50% - contracting and fabricating in progress, to be operational early 2019
• •Timing for resuming 100% production remains uncertain

Alunorte and Paragominas operations

Paragominas

• Temporarily suspended work contracts for 80 employees and terminated 175 contractors

Alunorte

• • Currently operating 5 lines, 2 in standby – short ramp-up period
• • Assessing to curtail 3 out of 7 lines – increasing operational robustness
• Will increase ramp-up period
• Will lead to temporary suspension of work contracts for ~150 employees and termination of ~250 contractors

Global aluminium market in deficit in Q2 2018

Continued deficit in world outside China, Q2 deficit also in China

Quarterly market balances, world ex. China and China 1000 mt primary aluminium

Production less demand*)

• • ~5.0% demand growth Q2-18 vs Q2-17
• ~6.0% China
• ~3.7% World ex. China
• •2018 demand growth expected at 4-5%

Source: CRU/Hydro

* Yearly rolling average of quarterly annualized production less demand

Primary aluminium market expected in deficit in 2018, continued uncertainty

Source: CRU, Hydro analysis

Average aluminium prices higher in Q2

• •High LME volatility during Q2, following announced US sanctions towards Rusal
• • Wide price differential between LME and SHFE in Q1, increasing further into Q2
• •Gross trade data indicates increased semis export from China in Q2

Regional standard ingot premiums

• •Significant strengthening US premiums, mainly driven by section 232
• • Increasing premiums early in the quarter, following announced Rusal sanctions, coming down towards the end of the quarter

Source: Metal Bulletin, Platts, Thomson Reuters, Hydro analysis * Shanghai Futures Exchange

Average alumina prices retreat from peak in April, remain high

Market remains tight outside China due to continued Alunorte 50% supply disruption

Platts alumina index (PAX)

• • High price volatility following uncertainty on alumina availability on Rusal sanctions and Alunorte curtailment
• • Moderating alumina prices following extended Rusal wind-down period
• •Limited alumina capacity available for restarts outside China
• • Alumina exports from China during Q2 on price arbitrage, despite challenging logistics
• • Hydro active in 3rd party market sourcing alumina, primary plants mostly covered through 2018

Source: Platts, Bloomberg, CRU, Metal Bulletin

Solid demand growth expected in key downstream segments

Extrusions – estimated market growth 2018 vs 2017 (%)

Source: CRU / Hydro analysis

* Industrial includes consumer durables, electrical and machinery

Europe excluding Russia/Turkey

Imposed trade tariffs and sanctions increase market uncertainty

Section 232

• • US administration imposed tariffs of 10 percent on aluminium imports to the US
• For EU, Canada and other preliminary exempted countries, the tariff was effective June 1st
• Permanent exemptions only for Argentina (accepted quota) and Australia
• • Strong premium in US reflecting tariff increase, long term market effects uncertain
• •Hydro expects limited financial and operational impact short-term

US sanctions impacting Rusal

• • US Department of the Treasury's Office of Foreign Assets Control has issued a sanctions list, which includes Rusal
• US persons/entities prohibited from transacting with Rusal
• Non-US persons/entities could face exposure if engaging in "significant transaction" with Rusal
• Wind down period for doing business with Rusal for both US as well as non-US entities, was extended on April 23 to October 23
• • Alumina and metal flows have to a large extent resumed, but there is still uncertainty how the sanctions may be resolved
• • Multiple business relations with Rusal throughout value chain - initiating mitigating actions to address the situation
• • Hydro does not expect any significant negative short-term impact on its operational and financial performance.

Continued cost increase for the aluminium industry

Alumina PAX index (indexed)

Source: Thomson Reuters, PACE, IHS Markit, Platts, ANP, CRU

Indication of current market prices

Rising upstream costs on raw material costs and reduced production

Additional costs in Bauxite & Alumina following Alunorte production cut

• Increased external alumina sourcing costs
• Increased raw material prices
• Fixed cost ineffencies

Implied EBITDA cost per mt

EBITDA margin per mt

• • Implied primary cost in Q2 affected by increased raw material costs:
• Alumina
• Power
• Carbon

All-in Implied EBITDA cost per mt LME Implied EBITDA cost per mt All-in EBITDA margin per mt

1) Realized alumina price minus underlying EBITDA for B&A, per mt alumina sales

2) Realized alumina price

3) Realized alumina price as % of three-month LME price with one month lag

4) Realized all-in aluminium price less underlying EBITDA margin, incl Qatalum, per mt aluminium sold. Implied primary cost and margin rounded to nearest USD 25

5) Realized LME aluminium price less underlying EBITDA margin, incl Qatalum, per mt primary aluminium produced 6) Realized LME plus realized premiums, including Qatalum 7) Realized LME, including Qatalum

Rolled Products: Increased sales volumes YTD 2018 vs YTD 2017

Mainly driven by automotive and can

* Include Body-in-White sales growth of 27% YTD 2018 vs YTD 2017, 33% Q2 2018 vs Q2 2017, 17% Q2 2018 vs Q1 2018

Extruded Solutions: Continued improvements in net added value

* Net Added Value: calculated as operating revenues less cost of material, including freight costs out

** Translated to NOK based on Q2 2018 currency rates

Rising power prices on increasing fuel prices and dry weather

Negative hydrological balance lifts Nordic prices above German

Source Nordic Hydrological Balance: Wattsight, Hydrological normal based on historical data from 1967-2011 and covers Norway and Sweden (the Nordic countries with significant hydrology resources) Source Prices: NordPool (Nordic system price), Phelix (German price) The system price is the Nordic reference price for trading and clearing of most financial contracts.

Securing long-term competitive power sourcing for smelter portfolio

Wind power good fit with flexible Nordic hydropower

• • ~8 TWh/year hydro and wind power contracts signed to source aluminium production in Norway beyond 2021
• • ~4.5 TWh/year wind power contracts signed from 2021 and onwards
• Utilizing wind power to strengthen Hydro's renewables base in Norway
• Wind power costs has fallen in the Nordics, mainly on technology development and low interest rates

• • Wind power supply will be optimized as part of the integrated power portfolio

• • Karmøy Technology Pilot at full production, producing the world's most climate andenergy-efficient aluminium

• • Spin-off effects for the existing smelter portfolio

20

Eivind Kallevik

Executive VicePresident and CFO

Results down on volumes and costs, higher realized prices

Key financials

Underlying EPS of 1.02 NOK/share

N O K i l l i m o n	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8	F i h l f 2 0 1 8 t r s a	F i h l f 2 0 1 7 t r s a
Re ve nu e	4 1 2 5 4	2 4 5 9 1	3 9 9 7 1	8 1 2 2 5	4 7 6 1 7
i U d ly E B I T n e r n g	2 7 1 3	2 9 3 0	3 1 4 7	5 8 5 9	5 2 1 4
I te lu d d fro d ly ing E B I T ms ex c e m u n e r	( 2 7 4 )	( 1 6 )	( 1 5 5 )	( 4 2 8 )	( 1 4 1 )
R d E B I T t e p o r e	2 9 8 6	2 9 4 6	3 3 0 1	6 2 8 7	5 5 3 6
F ina ia l inc ( ) nc o me ex p e ns e	( 4 4 1 )	( 9 9 ) 5	( 4 ) 7 5	( 9 1 6 )	( 8 2 3 )
( ) f I l b t n c o m e o s s e o r e a x	2 5 4 5	1 9 8 7	2 8 2 6	5 3 7 1	4 5 3 3
Inc tax o me e s	( 4 7 3 )	( 4 2 4 )	( 7 4 9 )	( 1 2 2 2 )	( 1 1 3 2 )
N i ( l ) t e n c o m e o s s	2 0 7 3	5 1 6 2	2 0 7 6	4 1 4 9	3 4 0 1
U d ly i i ( l ) t n e r n g n e n c o m e o s s	2 0 9 6	2 2 1 4	2 2 0 1	4 2 9 8	3 9 5 7
S, O Re te d E P N K p o r	1. 0 3	0. 7 3	1. 0 2	2. 0 5	1. 5 9
U d ly ing E P S, N O K n e r	1. 0 2	1. 0 4	1. 0 6	2. 0 7	1. 7 9

Items excluded from underlying EBIT

Excluded MNOK ~270 in timing effects from underlying EBIT

N O K i l l i m o n	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8	F i h l f 2 0 1 8 t r s a	F i h l f 2 0 1 7 t r s a
U d ly i E B I T n e r n g	2 7 1 3	2 9 3 0	3 1 4 7	5 8 5 9	5 2 1 4
U l ize d d iva t ive f fe ts L M E r la te d tra ts nre a e r e c o n e c o n c	3 0 6	( 9 2 )	1 1 4	4 1 9	( 1 1 0 )
U l ize d f fe d ia l c ts te tra ts nre a e c o n p ow e r a n raw m a r o n c	( 9 2 )	2 5	8 7	( ) 5	( 1 4 8 )
f fe Me ta l e t, Ro l le d Pro du ts c c	6 0	1 3 8	( ) 4 7	1 4	4 2 4
I te lu d d in i ty te d inv tm ts ( S ) ms ex c e e q u a c c ou n e s e n a p a	-	( 5 6 )	-	-	( 2 5 )
R d E B I T t e p o r e	2 9 8 6	2 9 4 6	3 3 0 1	6 2 8 7	5 5 3 6

Bauxite & Alumina

Increased raw material costs and reduced output, partly offset by higher alumina prices

f ig Ke y ure s	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8
A lum ina du t ion km t p ro c ,	8 2 9	1 6 5 7	1 2 7 7
To ta l a lum ina les km t sa ,	1 8 4 2	2 1 9 6	2 0 1 7
Re l ize d a lum ina ice U S D /m t a p r ,	4 3 0	2 9 5	3 7 1
S /m Im l ie d a lum ina t, U D t p co s	3 6 7	2 2 8	2 8 7
Ba i du ion km te t t ux p ro c ,	1 3 4 8	2 9 4 3	2 3 2 6
Un de ly ing E B I T D A, N O K m i l l ion r	9 3 7	1 2 4 8	1 3 7 0
Un de ly ing E B I T, N O K m i l l ion r	3 6 4	6 6 2	7 4 1

Underlying EBIT

Results Q2 18 vs Q2 17

• Results negatively impacted by production restrictions at Alunorte and Paragominas
• •Higher raw material costs
• •Higher realized alumina prices

Outlook Q3 18

• •Alunorte and Paragominas production 50% curtailed
• •Increased raw material costs

Impact on cost due to Alunorte and Paragominas 50% curtailed

Alunorte

Paragominas

Alunorte cost split Paragominas cost split

Primary Metal

Results down on increased costs, partly offset by increased realized aluminum prices

Ke f ig ure s y	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8
Pr ima lum in ium du t ion km t ry a p ro c ,	4 9 2	5 2 3	5 1 4
To ta l sa les km t ,	5 4 9	5 7 9	5 7 8
S /m Re l ize d L M E p ice U D t a r ,	2 1 8 3	1 9 0 2	2 1 4 0
Re l ize d L M E p ice N O K /m t a r ,	1 2 9 2 7	1 6 2 6 5	1 6 9 2 9
Re l ize d p ium U S D /m t a rem ,	3 6 4	2 7 3	2 9 5
S /m * Im l ie d a l l- in p ima t, U D t p r ry cos	2 1 7 5	1 0 0 7	2 0 7 5
Un de ly ing E B I T D A, N O K m i l l ion r	1 3 0 9	1 9 9 1	1 3 4 9
Un de ly ing E B I T, N O K m i l l ion r	7 5 5	1 4 8 6	8 2 3

Underlying EBIT

Results Q2 18 vs Q2 17

• Higher realized aluminium prices
• •Increased alumina, energy, carbon and fixed costs
• •Negative impact from strengthening NOK vs USD
• Reduced volumes on Albras curtailment

Outlook Q3 18

•

• •~ 60% of primary production for Q3 priced at USD ~2 275 per mt**
• ~ 65% of premiums affecting Q2 booked at USD ~410 per mt **
• Q3 realized premium expected in the range of 350-400 USD/mt
• Alumina costs realized with a 2-3 months lag
• •Albras curtailed 50%

* Realized all-in aluminium price minus underlying EBITDA margin, including Qatalum, per mt aluminium sold. ** Including Qatalum volumes

Metal Markets

Increased results from remelters and commercial activities

Ke f ig y ure s	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8
Re l du ion km t p t t me ro c ,	1 5 3	1 5 2	1 5 0
* Me ta l p du ts les km t ro c sa ,	7 4 6	7 5 9	7 4 5
Un de ly ing E B I T D A, N O K m i l l ion r	2 6 2	2 6 8	2 0 1
Un de ly ing E B I T e l cu d inv tor lua t ion r xc rre ncy an en y va f fec O ts, N K m i l l ion e	2 2 4	1 5 2	1 3 9
Un de ly ing E B I T, N O K m i l l ion r	2 3 7	2 4 4	1 7 8

Underlying EBIT

Results Q2 18 vs Q2 17

• Increased sales volumes and margins from remelters
• •Higher results from sourcing and trading activities
• • NOK 14 million positive currency and inventory valuation effects vs positive NOK 92 million in Q2 17

Outlook Q3 18

Volatile trading and currency effects

* Includes external and internal sales from primary casthouse operations, remelters and third-party metal sources.

Rolled Products

Higher margins and sales volumes, improved Neuss result

Ke f ig y ure s	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8
Ex l sa les lum km ter t na vo es ,	2 5 1	2 3 9	2 4 5
Un de ly ing E B I T D A, N O K m i l l ion r	4 3 8	2 9 7	4 5 6
Un de ly ing E B I T, N O K m i l l ion r	2 1 2	8 4	2 3 2

Results Q2 18 vs Q2 17

• Improved operational performance leading to improved volumes and margins
• • Improved Neuss result on aluminium prices and improved power contract, partly offset by raw material prices

Outlook Q3 18

• •Positive market conditions to continue into Q3
• Neuss results driven by all-in metal and raw material price development

Underlying EBIT

NOK million

Extruded Solutions

Results up on improved volumes and margins

f ig Ke y ure s	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8
Ex ter l sa les lum km t na vo es ,	3 3 7	3 9 5	3 6 2
Un de ly ing E B I T D A, N O K m i l l ion r	1 3 8 3	1 2 5 2	1 1 5 5
Un de ly ing E B I T, N O K m i l l ion r	9 5 7	8 3 6	7 3 4

Results Q2 18 vs Q2 17

• Improved margins
• •Increased sales volumes
• •Positive impact from increasing Midwest premium
• Depreciation in Extruded Solutions up ~MNOK 300 per year compared to "old Sapa" due to transactional effects, mainly excess value depreciation

Outlook Q3 18

•Positive market conditions to continue into Q3

Underlying EBIT*

NOK million

* Pro-forma figures for Q1-Q3 2017

Energy

Results up on higher power production and prices

Ke f ig ure s y	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8
Po du t ion G W h we r p ro c ,	2 5 5 0	2 3 6 9	2 4 3 3
G Ne t s t s les W h p o a ,	9 6 1	9 9 6	7 6 3
So hw No ice ( N O 2 ), N O K / M W h t t t p u es rwa y sp o r	3 6 9	2 5 2	3 6 1
Un de ly ing E B I T D A, N O K m i l l ion r	4 7 9	3 3 7	3 3 9
Un de ly ing E B I T, N O K m i l l ion r	4 1 7	2 8 4	2 7 8

Results Q2 18 vs Q2 17

• Significantly higher power prices
• •Higher power production
• •Improved commercial results
• Negative effects from repricing of internal power contract with Rolled Products

Outlook Q3 18

•Price and volume uncertainty

Underlying EBIT

NOK million

Other and Eliminations

O h d E l i i i t t e r a n m n a o n s, U d ly i E B I T, N O K i l l i n e r n g m o n	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8
S J V a p a		3 2 9
O he t r	( 1 5 6 )	( 7 1 )	( 2 0 7 )
E l im ina t io ns	( 7 4 )	( 8 8 )	3 6 8
O h d E l i i i t t e r a n m n a o n s	( ) 2 2 9	1 7 0	1 6 1

Net debt development Q2 2018

•Net cash provided by operating activities from cash flow statement, less change in restricted cash of ~(0.1) BNOK

Adjusted net debt up in Q2

N O K b i l l i o n	J 3 0 n u 2 0 1 8	M 3 1 a r 2 0 1 8	D 3 1 e c 2 0 1 7
C h a d h e iva le ts a s n c a s q n u S ho t- te inv tm ts r rm e s e n S ho t- te d b t r rm e Lo d b -te t ng rm e	5. 7 1. 1 ( 5. 0 ) ( 9. 4 )	9. 4 1. 0 ( 5. 3 ) ( 8. 7 )	1 1. 8 1. 3 ( 8. 2 ) ( 9. 0 )
/ ( ) N h d b t t e c a s e	( ) 7. 5	( ) 3. 6	( ) 4. 1
Ne io l ia b i l i fa ir v lu f e d t p ty t t o te e ns n a a e, ne xp e c f tax b i t e ne 1) O t he d j tm ts r a u s e n	( 7. 0 ) ( 5. 7 )	( 7. 5 ) ( 5. 8 )	( 7. 9 ) ( 6. 0 )
A d j d d b E A I t t t u s e n e e e x.	( 2 0. 2 )	( 1 6. 9 )	( 1 8. 0 )
Ne t d b t in E A I e	( ) 5. 7	( ) 5. 7	( ) 5. 8
A d j d d b i l. E A I t t t u s e n e e n c	( 2 5. 9 )	( 2 2. 6 )	( 2 3. 8 )

1) Operating lease commitments and other obligations

2018 priorities

• •Safety first
• • Resuming production at Alunorte, Paragominas and Albras
• •Value-creating integration
• •Project execution

Additional information

Prudent financial framework

Managing industry cyclicality, driving long-term shareholder value

1) Real 2015 terms

2) Funds from operations / adjusted net debt

3) Adjusted net debt / Equity

4) With Karmøy Technology Pilot net investment, after ENOVA support and including Extruded Solution for the full year

Hydro's aspiration underpinned by firm financial targets

Ambition Timeframe Q4 2017 status Medium and long-term Better improvement ambition 3.0 BNOK 2016-2019 1.8 BNOK 2017Long-term sustaining capex ~ 5.5 - 6.0 BNOK Over the cycle 5.7 BNOK 2017Dividend payout ratio 40% of net income Over the cycle ~70% 1) 2013-2017FFO/adjusted net debt 2) > 40% Over the cycle 68% 2017 3) Adjusted net debt/Equity < 55% Over the cycle 26% 2017 ROaCE Competitive 4) Over the cycle 9.6% 3,5) 2017

1) Payout ratio 5 year average – dividend per share divided by earnings per share from continuing operations for the last 5 years

2) FFO – funds from operations

3) Extruded Solutions reflected as 50% equity accounted investment Q1-Q3 2017 and fully consolidated in Q4 2017

4) Measured against a relevant peer group

5) Underlying return on average capital employed after tax (ROaCE)

Shareholder and financial policy

• • Hydro aims to give its shareholders competitive returns compared to alternative investments in comparable companies
• • Dividend policy
• Average ordinary payout ratio: 40% of reported net income over the cycle
• 1.25 NOK/share to be considered as a floor, as communicated since Q4 2016
• Share buybacks and extraordinary dividends as supplement in periods with strong financials and outlook
• 2017 dividend 1.75 NOK/share, up from1.25 NOK/share 2016
• Five-year average ordinary pay-out ratio 2013-2017 of ~70%
• • Maintain investment-grade credit rating
• Currently: BBB stable (S&P) & Baa2 stable (Moody's)
• Competitive access to capital is important for Hydro's business model (counterparty risk and partnerships)
• • Financial ratios over the business cycle
• Funds from operations to adjusted net debt > 40%
• Adjusted net debt to equity < 55%
• • Strong liquidity
• NOK 5.7 billion in cash and cash equivalents, end-Q2 2018
• USD 1.7 billion in multi-currency revolving credit facility maturing in 2020

Hedging policy

• • Hedging strategy
• Fluctuating with the market: primarily exposed to LME and USD
• Volatility mitigated by strong balance sheet
• Strengthening relative position to ensure competitiveness
• • Diversified business
• Upstream cyclicality balanced with more stable earnings downstream
• Exposed to different markets and cycles
• • Bauxite & Alumina
• Currency exposure, mainly USD and BRL
• Exposed to LME and Platts alumina index prices
• • Primary Metal
• Operational LME hedging one-month forward sales
• Currency exposure, mainly USD, NOK and BRL
• • Metal Markets, Rolled Products
• Operational LME and currency hedging to secure margin
• •Flexibility to hedge LME or currency in certain cases

Maintaining a solid balance sheet and investment-grade credit rating

Funds from operations determine the balance sheet structure

(4.1) (3.6) (6.0) (5.8) (5.8) (5.7) (7.9) (7.5) (7.5) (5.7) (5.7) (7.0) (25.9) (22.6) (23.8) Net debt Debt in EAIOperating leases and other Net pension liability NOK billionMar 31, 2018 Dec 31, 2017 Jun 30, 2018

1) 2015 FFO/aND ratio has been restated due to change of definition

2) Extruded Solutions reflected as 50% equity accounted investment Q1-Q3 2017 and fully consolidated in Q4 2017

Adjusted net debt

Growth capex focused on high-grading, recycling and technology

Majority of sustaining capex allocated upstream

^•Sustaining projects for 2018-2020:

• Bauxite residue disposal area
• Opening of new bauxite mining area
• Pipeline replacement
• Primary rectifiers and asset integrity Albras
• Smelter relining
• • Ongoing organic growth projects:
• Productivity improvements across the portfolio
• • Karmøy technology pilot 2015-2018:
• Gross investment 4.3 BNOK
• Of which Enova support 1.6 BNOK
• Net investment 2.7 BNOK
• • Capex related to specific growth projects will be announced when decision is made**

* Includes Extruded Solutions

** Capex estimates 2018-2020 does not include NOK 1.3 billion related to the announced Husnes restart, NOK ~2.7 billion Isal acquisition and NOK 0.5 billion upgrade of Alunorte water treatment plant

Significant exposure to commodity and currency fluctuations

Other commodity prices, sensitivity +10%*

NOK million

Sustainable effect:

N O K i l l i m o n	U S D	B R L	E U R
U E B I T	3 9 4 0	( 1 0 6 0 )	( 2 5 0 )

One-off reevaluation effect:

( ) F ina ia l i te 4 0 nc ms	6 0 0	( ) 2 3 9 0
----------------------------------------------------------------	-------------	----------------------------

• • Annual sensitivities based on normal annual business volumes, LME USD 2 180 per mt, fuel oil USD 520 per mt, petroleum coke USD 470 per mt, caustic soda USD 630 per mt, coal USD 80 per mt, USD/NOK 7.90, BRL/NOK 2.20, EUR/NOK 9.60
• Aluminium price sensitivity is net of aluminium price indexed costs and excluding unrealized effects related to operational hedging
• • BRL sensitivity calculated on a long-term basis with fuel oil assumed in USD. In the short-term, fuel oil is BRL-denominated
• Excludes effects of priced contracts in currencies different from underlying currency exposure (transaction exposure)
• •Currency sensitivity on financial items includes effects from intercompany positions
• •2018 Platts alumina index (PAX) exposure used

* 2018 Platts alumina index exposure

** Europe duty paid

Bauxite & Alumina sensitivities

Annual sensitivities on underlying EBIT if +10% in price NOK million

Currency sensitivities +10%

N O K m i l l io n	U S D	B R L	E U R
U E B I T	1 6 3 0	( 7 2 0 )	-

Revenue impact

• ~14% of 3-month LME price per tonne alumina
• ~One month lag
• •Realized alumina price lags PAX by one month

Cost impact

Bauxite

• ~2.45 tonnes bauxite per tonne alumina
• Pricing partly LME-linked

Caustic soda

• ~0.1 tonnes per tonne alumina
• Prices based on IHS Chemical, pricing mainly monthly per shipment

Energy

• ~0.12 tonnes coal per tonne alumina, Platts prices, one year volume contracts, weekly per shipment pricing
• ~0.11 tonnes heavy fuel oil per tonne alumina, prices set by ANP/Petrobras in Brazil, weekly pricing (ANP) or anytime (Petrobras)
• •Increased use of coal as energy source in Alunorte

* 2018 Platts alumina index exposure Currency rates used: USD/NOK 7.90, BRL/NOK 2.20, EUR/NOK 9.60

Primary Metal sensitivities

Annual sensitivities on underlying EBIT if +10% in price

NOK million

Currency sensitivities +10%

O N K m i l l io n	S U D	B R L	E U R
U E B I T	1 9 0 0	( ) 2 6 0	( ) 2 6 0

Revenue impact

• Realized price lags LME spot by ~1-2 months
• •Realized premium lags market premium by ~2-3 months

Cost impact

Alumina

• ~1.9 tonnes per tonne aluminium
• ~14.5% of 3-month LME price per tonne alumina, increasing volumes priced on Platts index
• •~ 2-3 months lag

Carbon

• ~0.40 tonnes petroleum coke per tonne aluminium,
• Pace Jacobs Consultancy, 2-3 year volume contracts, quarterly or half yearly pricing
• • ~0.08 tonnes pitch per tonne aluminium, CRU, 2-3 year volume contracts, quarterly pricing

Power

•

• 13.9 MWh per tonne aluminium
• •Long-term power contracts with indexations

* Europe duty paid **2018 Platts alumina index exposure Currency rates used: USD/NOK 7.90, BRL/NOK 2.20, EUR/NOK 9.60

Items excluded from underlying results - 2018

illio n (+ ss/ ( )=g ain ) NO K m =lo		Q2 201 8	Q1 201 8
Tot al i act mp	Bau xite & a lum ina	-	-
Unr eali zed de riva tive eff ects LM E re late d co ntra cts on	Prim met al ary	( 41)	( 114 )
eff Unr eali zed ects ntra cts on po wer co	Prim met al ary	20	20
Sig nific ratio nali ion cha nd c losu ant zat osts rge s a re c	Prim al met ary	-	-
Tot al i act mp	Prim tal ary me	( 21)	( 94)
Unr eali zed de riva tive eff ects LM E re late d co ntra cts on	Me tal rket ma s	( 32)	( 128 )
Tot al i act mp	Met al m ark ets	( 32)	( ) 128
Unr eali zed de riva tive eff LM E re late d co ects ntra cts on	Rol led duc ts pro	( 82)	108
Met al e ffec t	Rol led duc ts pro	( 60)	47
( Gai ns) /los dive stm ent ses on s	Rol led duc ts pro	-	-
Tot al i act mp	Rol led duc ts pro	( ) 142	154
Unr eali zed de riva tive eff LM E re late d co ects ntra cts on	Ext rud ed Sol utio ns	( 151 )	47
Tot al i act mp	Ext rud ed Sol utio ns	( 151 )	47
Tot al i act mp	Ene rgy	-	-
Unr eali zed de riva tive eff ects ntra cts on po wer co	Oth nd e limi nat ions er a	72	( 107 )
eff Unr eali zed de riva tive ects LM E re late d co ntra cts on	Oth nd e limi nat ions er a	1	( 26)
Imp airm cha ent rge s	Oth nd e limi ions nat er a	-	-
( Gai ns) /los div estm ent ses on s	Oth nd e limi nat ions er a	-	-
Oth ffec ts er e	Oth nd e limi nat ions er a	-	-
al i Tot act mp	elim ina tion Oth nd er a s	73	( ) 134
Item xcl ude d fr der ly ing EB IT s e om un	Hy dro	( ) 274	( ) 155
Net for eign han (ga in) /los exc ge s	Hy dro	306	333
Item xcl ude d fr der ly ing inc e ( los s) bef tax s e om un om ore	Hy dro	32	178
Cal cula ted inc e ta x ef fect om	Hy dro	( 8)	( 54)
Oth djus et i tme nts to n er a nco me	Hy dro	-	-
Item xcl ude d fr der ly ing t in e ( los s) s e om un ne com	Hy dro	24	125

Underlying EBIT

NO K m illio n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Bau xite & A lum ina	189	174	153	711	756	662	413	1 8 72	741	364	1 2 27	3 7 04
Prim Met al ary	318	702	637	601	900	1 4 86	1 2 98	1 3 77	823	755	2 2 58	5 0 61
Met al M ark ets	167	75	117	152	24	244	91	185	178	237	510	544
Rol led Pro duc ts	248	242	211	6	106	84	95	95	232	212	708	380
Ext rud ed Sol utio ns	183	270	157	167	281	329	209	284	734	957	777	1 1 03
Ene rgy	398	301	285	359	423	284	368	457	278	417	1 3 43	1 5 31
Oth nd Elim inat ions er a	( 2)	( 145 )	( 83)	( 167 )	( 207 )	( 159 )	( 28)	( 715 )	161	( 229 )	( 397 )	( 1 10 8)
Tot al	1 5 01	1 6 18	1 4 77	1 8 29	2 2 84	2 9 30	2 4 46	3 5 55	3 1 47	2 7 13	6 4 25	11 215

Underlying EBITDA

NO K m illio n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
& A Bau xite lum ina	640	659	664	1 2 58	1 3 34	1 2 48	1 0 57	2 5 51	1 3 70	937	3 2 21	6 1 90
Prim Met al ary	792	1 1 86	1 1 25	1 0 68	1 3 92	1 9 91	1 7 95	1 9 00	1 3 49	1 3 09	4 1 72	7 0 78
Met al M ark ets	191	98	141	175	47	268	114	209	201	262	604	638
Rol led Pro duc ts	446	432	407	222	307	297	312	325	456	438	1 5 07	1 2 40
Sol Ext rud ed utio ns	183	270	157	167	281	329	209	728	1 1 55	1 3 83	777	1 5 47
Ene rgy	453	352	336	412	476	337	424	519	339	479	1 5 53	1 7 57
Oth nd Elim inat ions er a	12	( 134 )	( 76)	( 160 )	( 200 )	( 151 )	( 21)	( 708 )	169	( 223 )	( 359 )	( 1 08 1)
Tot al	2 7 16	2 8 62	2 7 53	3 1 43	3 6 37	4 3 19	3 8 89	5 5 24	5 0 38	4 5 86	11 474	17 369

Extruded Solutions reflected as 50% equity accounted investment Q1 2016-Q3 2017 and fully consolidated in Q4 2017

EBIT

NO K m illio n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Bau xite & A lum ina	189	174	153	680	756	662	413	1 8 72	741	364	1 1 96	3 7 04
Prim Met al ary	408	668	591	619	797	1 5 38	1 2 82	1 1 12	917	776	2 2 85	4 7 29
Met al M ark ets	235	91	131	172	( 13)	282	59	158	305	270	629	485
Rol led Pro duc ts	179	428	255	91	450	84	( 22)	-	78	353	953	512
Ext rud ed Sol utio ns	209	319	172	190	313	273	215	1 7 22	687	1 1 09	889	2 5 22
Ene rgy	394	291	295	364	423	284	368	457	278	417	1 3 43	1 5 31
Oth nd Elim inat ions er a	79	8	( 220 )	( 151 )	( 316 )	( 176 )	7	( 810 )	295	( 303 )	( 285 )	( 1 29 5)
Tot al	1 6 93	1 9 78	1 3 76	1 9 64	2 4 10	2 9 46	2 3 23	4 5 11	3 3 01	2 9 86	7 0 11	12 189

EBITDA

NO K m illio n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Bau xite & A lum ina	640	659	664	1 5 13	1 3 34	1 2 48	1 0 57	2 5 51	1 3 70	937	3 4 75	6 1 90
Prim Met al ary	882	1 1 52	1 0 79	1 0 86	1 2 89	2 0 43	1 7 79	1 6 35	1 4 43	1 3 30	4 1 99	6 7 47
Met al M ark ets	259	114	154	195	9	306	82	182	329	295	723	579
Rol led Pro duc ts	376	618	451	307	651	296	196	230	302	580	1 7 52	1 3 72
Ext rud ed Sol utio ns	209	319	172	190	313	273	215	2 1 66	1 1 08	1 5 34	889	2 9 66
Ene rgy	450	341	346	416	476	337	424	519	339	479	1 5 53	1 7 57
Oth nd Elim inat ions er a	92	19	( 74)	( 143 )	( 310 )	( 168 )	13	( 803 )	302	( 296 )	( 107 )	( 1 26 8)
Tot al	2 9 08	3 2 22	2 7 92	3 5 63	3 7 62	4 3 35	3 7 66	6 4 81	5 1 93	4 8 60	12 485	18 344

Total revenue

NO K m illio n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Bau xite & A lum ina	4 2 12	4 5 72	4 9 25	5 8 34	5 9 11	5 8 58	5 6 12	8 0 40	6 3 09	6 8 77	19 543	25 421
Prim Met al ary	7 6 94	8 0 06	7 9 00	7 2 62	8 6 41	9 5 75	8 9 58	9 2 91	10 170	10 083	30 862	36 466
Met al M ark ets	11 248	11 239	10 649	10 117	12 149	13 604	11 862	12 991	13 898	14 205	43 254	50 606
Rol led Pro duc ts	5 7 37	5 9 85	5 6 48	5 2 62	6 2 77	6 5 69	6 4 35	6 4 34	6 7 97	7 1 45	22 632	25 715
Ext rud ed Sol utio ns	-	-	-	-	-	-	-	14 153	15 911	16 980	-	14 153
Ene rgy	1 6 20	1 6 70	1 5 76	2 3 14	1 9 55	1 7 50	1 8 31	2 1 69	1 7 62	2 1 63	7 1 80	7 7 05
Oth nd Elim inat ions er a	( 10 3 73)	( 11 0 80)	( 10 5 25)	( 9 5 39)	( 11 9 06)	( 12 7 65)	( 11 9 00)	( 14 2 76)	( 14 8 77)	( 16 198 )	( 41 517 )	( 50 847 )
Tot al	20 138	20 391	20 174	21 250	23 026	24 591	22 799	38 803	39 971	41 254	81 953	109 22 0

External revenue

illio NO K m n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
& A Bau xite lum ina	2 4 43	2 6 99	2 9 97	3 9 21	3 3 82	3 4 17	3 2 93	5 0 95	3 5 09	3 6 40	12 059	15 188
Prim Met al ary	1 1 75	1 3 12	1 4 59	1 5 82	1 7 00	1 9 44	1 8 65	2 0 68	2 0 18	1 9 93	5 5 29	7 5 78
Met al M ark ets	10 133	10 169	9 6 78	9 4 40	11 094	12 080	10 675	10 414	10 901	10 905	39 420	44 264
Rol led Pro duc ts	5 7 95	5 8 31	5 6 37	5 2 05	6 1 53	6 6 29	6 3 80	6 3 75	6 8 70	7 0 11	22 469	25 538
Ext rud ed Sol utio ns	-	-	-	-	-	-	-	14 083	15 932	16 877	-	14 083
Ene rgy	575	364	394	1 0 93	687	514	582	767	738	823	2 4 26	2 5 50
Oth nd Elim inat ions er a	17	15	8	10	9	6	3	-	4	6	50	18
Tot al	20 138	20 391	20 174	21 250	23 026	24 591	22 799	38 803	39 971	41 254	81 953	109 22 0

Internal revenue

NO K m illio n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Bau xite & A lum ina	1 7 69	1 8 73	1 9 29	1 9 14	2 5 28	2 4 41	2 3 20	2 9 44	2 8 00	3 2 37	7 4 84	10 234
Prim Met al ary	6 5 19	6 6 93	6 4 41	5 6 80	6 9 41	7 6 31	7 0 93	7 2 23	8 1 52	8 0 90	25 333	28 888
Met al M ark ets	1 1 16	1 0 70	971	677	1 0 54	1 5 23	1 1 87	2 5 77	2 9 97	3 3 01	3 8 34	6 3 41
Rol led Pro duc ts	( 58)	153	11	57	124	( 61)	55	59	( 72)	134	163	178
Ext rud ed Sol utio ns	-	-	-	-	-	-	-	70	( 21)	103	-	70
Ene rgy	1 0 44	1 3 06	1 1 82	1 2 21	1 2 67	1 2 36	1 2 49	1 4 03	1 0 24	1 3 40	4 7 53	5 1 55
Oth nd Elim inat ions er a	( 10 3 90)	( 11 0 95)	( 10 5 33)	( 9 5 49)	( 11 9 15)	( 12 7 72)	( 11 9 03)	( 14 2 76)	( 14 8 81)	( 16 2 04)	( 41 567 )	( 50 865 )
Tot al	-	-	-	-	-	-	-	-	-	-	-	-

Share of profit /(loss) in equity accounted investments

NO K m illio n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Bau xite & A lum ina	-	-	-	-	-	-	-	-	-	-	-	-
Prim Met al ary	( 37)	10	74	48	98	231	159	258	210	280	96	745
Met al M ark ets	-	-	-	-	-	-	-	-	-	-	-	-
Rol led Pro duc ts	-	-	-	-	-	-	-	-	-	-	-	-
Ext rud ed Sol utio ns	209	319	172	190	313	273	215	12	17	11	889	812
Ene rgy	-	-	-	-	-	-	-	( 7)	( 10)	( 11)	-	( 7)
Oth nd Elim inat ions er a	( 3)	( 6)	10	( 1)	( 1)	( 13)	( 3)	( 7)	3	5	-	( 24)
Tot al	170	323	256	236	409	491	371	256	221	286	985	1 5 27

Return on average capital employed* (ROaCE)

			Rep orte	d R OaC E					Und erly ing	RO aCE
	201 7	201 6	201 5	201 4	201 3	201 2	201 7	201 6	201 5	201 4	201 3	201 2
& A Bau xite lum ina	8.5 %	2.7 %	5.3 %	( 0.1 ) %	( 2.5 ) %	( 1.5) %	8.5 %	2.8 %	5.3 %	( 0.1 ) %	( 2.2 ) %	( 1.6) %
Prim Met al ary	11.8 %	5.2 %	10.7 %	10.4 %	2.3 %	( 3.1 ) %	12.6 %	5.2 %	11.0 %	10.4 %	3.9 %	0.4 %
Met al M ark ets	18.6 %	19.6 %	5.4 %	21. 9 %	22. 3 %	4.3 %	20. 8%	15.9 %	11.4 %	19.4 %	19.9 %	6.6 %
Rol led Pro duc ts	3.2 %	6.2 %	1.1 %	8.6 %	0.7 %	6.7 %	2.4 %	4.6 %	7.8 %	5.3 %	5.2 %	5.3 %
Sol ns Ext rud ed utio	13.4 %						6.6 %
Ene rgy	17.5 %	18. 1 %	17.2 %	17.4 %	36. 1 %	23. 0 %	17.5 %	18. 1 %	17.3 %	17.4 %	36. 1 %	23. 2 %
Hy dro Gr oup	11.2 %	6.5 %	7.5 %	4.9 %	1.1 %	( 0.5 ) %	9.6 %	5.1 %	9.2 %	5.2 %	2.3 %	0.9 %

Capital employed – upstream focus

NO K m illio n	Jun 30 201 8 ,
Bau xite & A lum ina	27 538
Prim Met al ary	31 4 95
Met al M ark ets	2 6 21
Rol led Pro duc ts	12 9 95
Ext rud ed Sol utio ns	24 748
Ene rgy	3 0 73
Oth nd Elim inat ions er a	( 7 7 80)
Tot al	94 689

Energy 3%

Graph excludes BNOK (7.8) in capital employed in Other and Eliminations

* ROaCE at business area level is calculated using 25% tax rate for 2017 (30% tax rate applied for prior years). For Energy, 65% tax rate is used for 2017, 60% for 2016 and 55% for prior years ** Extruded Solutions reflected as 50% equity accounted investment Q1-Q3 2017 and fully consolidated in Q4 2017

NO K m illio n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Bau xite & A lum ina	451	485	511	833	577	586	644	679	630	573	2 2 79	2 4 86
Prim Met al ary	474	484	488	467	492	505	504	526	546	575	1 9 13	2 0 26
Met al M ark ets	24	24	24	23	23	24	24	24	24	25	94	95
Rol led Pro duc ts	197	189	196	216	201	212	217	230	223	227	799	860
Ext rud ed Sol utio ns								444	421	425		444
Ene rgy	55	51	51	53	53	54	56	60	58	59	210	223
Oth nd Elim inat ions er a	13	11	146	8	6	7	7	7	7	7	178	28
Tot al	1 2 15	1 2 44	1 4 16	1 5 99	1 3 52	1 3 89	1 4 50	1 9 70	1 9 09	1 8 91	5 4 74	6 1 62

Depreciation, amortization and impairment

Indicative depreciation currency exposure by business area Depreciation by business area 2017, 6.2 BNOK

Per t cen	US D	EU R	BR L	NO K & Ot her
Bau xite & A lum ina			100 %
Prim Me tal ary	20%		25%	55%
Met al M ark ets	30%	50%		20%
Rol led Pro duc ts		90%		10%
Ext rud ed Sol utio ns	30%	40%		30%
Ene rgy				100 %
Oth er & Eli min atio ns				100 %

Income statements

NO K m illio n	Q2 201 8	Q2 201 7	Q1 201 8	Firs t ha lf 2 018	Firs t ha lf 2 017
Rev enu e Sha f th rofit ( ) loss in e ity a unte d in tme nts re o e p qu cco ves Oth er i t nco me , ne	41 254 286 184	24 591 491 184	39 971 221 155	81 225 506 339	47 617 900 348
Tot al r d in eve nue an com e	41 724	25 266	40 346	82 070	865 48
Raw teri al a nd e ma ner gy e xpe nse Em loye e b fit e p ene xpe nse Dep iatio rtiza tion d im irme nt rec n, a mo an pa Oth er e xpe nse s	26 496 5 8 28 1 89 1 4 5 24	15 8 48 2 6 77 1 38 9 2 4 06	25 196 5 7 72 1 90 9 4 1 68	51 692 11 6 00 3 7 99 8 6 92	30 669 5 2 91 2 7 41 4 8 08
Ear nin bef fin ial item nd ( EB IT) tax gs ore anc s a	2 9 86	2 9 46	3 3 01	6 2 87	5 3 56
Fina ncia l inc om e Fina ncia l ex pen se	89 ( 530 )	134 ( 1 09 3)	58 ( 533 )	147 ( 1 06 3)	238 ( 1 06 1)
Inco ( loss ) befo re t me ax Inco taxe me s	2 5 45 ( 473 )	1 98 7 ( 424 )	2 8 26 ( 749 )	5 3 71 ( 1 22 2)	4 5 33 ( 1 13 2)
Net inc e ( los s) om	2 0 73	1 5 62	2 0 76	4 1 49	3 4 01
Net inc e ( loss ) a ttrib uta ble to n trol ling inte rest om on- con s Net inc e ( loss ) a ttrib uta ble to H dro sh hold om y are ers	( 35) 2 1 08	78 1 48 4	( 14) 2 0 91	( 49) 4 1 99	154 3 24 7
Ear nin sh ribu tab le t o H dro sh hol der att gs per are are s y	1.03	0.7 3	1.0 2	2.0 5	1.5 9

illio NO K m n	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
e ( ) Net inc loss om	2 3 82	2 0 77	1 1 19	1 0 08	1 8 38	1 5 62	2 1 84	3 6 00	2 0 76	2 0 73	6 5 86	9 1 84
ing t in e ( s) Und erly los ne com	822	1 1 26	958	968	1 5 80	2 2 14	1 7 85	2 8 16	2 2 01	2 0 96	3 8 75	8 3 96
Ear ning r sh s pe are	1.1 2	0.9 5	0.5 3	0.5 2	0.8 6	0.7 3	1.0 0	1.7 1	1.0 2	1.0 3	3.1 3	4.3 0
ing rnin Und erly sh ea gs per are	0.3 9	0.5 2	0.4 6	0.4 8	0.7 5	1.0 4	0.8 2	1.3 3	1.0 6	1.0 2	1.8 4	3.9 5

Balance sheets

NO K m illio n	Jun 30 20 18	Ma r 31 20 18	Dec 17* 31 20	Sep 30 20 17	Jun 30 20 17	Ma r 31 20 17
Cas h a nd c ash uiva lent eq s Sho rt-te inve stm ent rm s Acc ts r ivab le oun ece Inve nto ries Oth nt a ts er c urre sse	5 6 82 1 13 6 23 442 22 337 978	9 3 71 1 03 1 22 785 20 626 818	11 8 28 1 3 11 19 9 83 20 711 798	17 8 53 1 98 5 13 156 13 5 85 255	7 9 93 4 8 96 13 4 65 12 9 40 290	8 3 33 4 4 03 12 8 51 12 5 57 301
Pro ty, lant d e ipm ent per p an qu Inta ible sets ng as for Inve stm ent nted ing the uity tho d s ac cou us eq me Pre id p ion pa ens Oth t as sets er n on- cur ren Tot al a ts sse	66 683 11 6 60 11 140 6 3 22 80 5 7 155 15 9	69 945 12 133 10 5 51 5 9 33 88 5 5 158 78 1	72 933 12 7 12 11 2 21 5 7 50 6 0 28 163 27 3	56 500 5 4 27 18 178 5 2 96 5 3 22 137 55 7	57 610 5 5 77 18 8 00 5 0 18 5 2 52 131 84 0	59 627 5 9 19 19 9 37 4 7 18 5 6 30 134 27 6
Ban k-lo d o the r int st-b ing sho deb rt-te t ans an ere ear rm Tra de and oth bles er p aya Oth nt li abil ities er c urre	4 9 69 21 351 4 9 76	5 2 69 20 621 4 8 52	8 24 5 19 5 71 5 5 21	9 0 65 10 3 47 3 54 2	3 74 1 10 4 72 2 9 11	3 4 81 10 2 24 3 3 37
Lon term de bt g- Pro visi ons Pen sion liab ilitie s Def d ta x lia bilit ies erre Oth t lia bilit ies er n on- cur ren	9 3 77 5 5 32 14 6 65 3 4 56 3 6 73	8 74 6 5 6 52 14 9 11 3 5 22 4 0 84	9 0 12 5 8 28 15 118 3 5 01 4 2 69	3 0 77 4 5 07 12 8 08 2 6 21 3 6 91	3 1 83 4 4 52 12 9 97 2 5 66 3 9 55	3 3 73 4 5 26 12 8 04 2 5 67 3 1 74
Equ ity a ttrib uta ble to H dro sh hold y are ers Non ntro lling inte rest -co s	82 676 4 4 86	86 233 4 8 91	87 032 5 1 78	82 685 5 2 16	82 343 5 2 19	84 952 5 8 38
Tot al l iab iliti and uity es eq	155 15 9	158 78 1	163 27 3	137 55 7	131 84 0	134 27 6

* Restated

Operational data

xite ina Bau & A lum	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
( ) Alu min rod ucti kmt a p on	1 5 17	1 5 54	1 6 35	1 6 35	1 5 23	1 5 76	1 6 05	1 6 93	1 2 77	829	6 3 41	6 3 97
Sou a ( ) rced alu min kmt	531	615	512	883	600	645	667	610	900	985	2 5 41	2 5 22
s ( ) Tot al a lum ina sale kmt	2 0 73	2 0 78	2 2 21	2 4 72	2 1 29	2 1 96	2 2 51	2 3 44	2 0 71	1 8 42	8 8 43	8 9 20
( US D) 1) Rea lize d a lum ina ice pr	219	240	240	257	309	295	297	398	371	430	240	326
st ( US D) 2) Imp lied alu min a co	183	201	204	197	235	228	237	265	287	367	197	242
3) Bau xite duc tion ( kmt ) pro	2 6 82	2 6 09	2 7 77	3 0 63	2 4 00	2 9 43	3 0 43	3 0 49	2 3 26	1 3 48	11 132	11 435
Sou e ( ) 4) rced ba uxit kmt	1 92 4	2 2 33	2 1 08	2 2 35	1 6 75	1 8 09	2 0 13	2 1 03	1 3 17	1 2 50	8 4 99	7 6 01
11) Und erly ing EBI TDA in ma rg	15.2 %	14. 4%	13. 5%	21. 6%	22. 6%	21. 3%	18. 8%	31. 7%	21. 7%	13. 6%	16. 5%	24. 3%
5) Prim Me tal ary	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Rea lize d a lum iniu rice LM E, US D/m t m p	1 4 97	1 5 46	1 6 12	1 6 47	1 7 57	1 9 02	1 9 21	2 0 92	2 1 40	2 1 83	1 5 74	1 9 15
7) Rea lize d a lum iniu rice LM E, NO K/m t m p	12 9 50	12 826	13 375	13 659	14 798	16 265	15 496	17 0 66	16 9 29	17 2 92	13 193	15 8 88
6) Rea lize d p ium ab LM E, US D/m t rem ove	288	270	251	240	266	273	261	259	295	364	263	265
6)7) Rea lize d p ium ab LM E, NO K/m t rem ove	2 4 88	2 2 43	2 0 82	1 9 93	2 2 36	2 3 30	2 1 06	2 1 16	2 3 35	2 8 81	2 2 01	2 1 97
7) Rea lize d N OK /US D e xch te ang e ra	8.6 5	8.3 0	8.3 0	8.2 9	8.4 2	8.5 5	8.0 7	8.1 6	7.9 1	7.9 2	8.3 8	8.3 0
8) Imp lied ima ost ( US D) pr ry c	1 22 5	1 1 75	1 2 75	1 3 25	1 3 50	1 3 75	1 4 25	1 5 75	1 7 25	1 7 75	1 2 50	1 4 25
9) Imp lied all- in p rima ost ( US D) ry c	1 55 0	1 5 00	1 5 50	1 5 50	1 6 75	1 7 00	1 7 25	1 8 50	2 0 75	2 1 75	1 5 50	1 7 25
Prim alum iniu rod ucti kmt ary m p on,	514	518	526	526	516	523	527	528	514	492	2 0 85	2 0 94
Cas tho duc tion kmt use pro ,	534	547	541	523	521	551	548	550	531	523	2 1 46	2 1 69
10) Tot al s ales kmt ,	552	596	573	528	577	579	568	554	578	549	2 2 48	2 2 78
11) Und erly ing EBI TDA in ma rg	10.3 %	14. 8%	14. 2%	14. 7%	16. 1%	20. 8%	20. 0%	4% 20.	3% 13.	13.0 %	13. 5%	% 19.4

1) Weighted average of own production and third party contracts, excluding hedge results. The majority of the alumina is sold linked to either the LME prices or alumina index with a one month delay. Sourced alumina volumes have been re-calculated, with Q1 2018 being adjusted accordingly.

2) Implied alumina cost (based on EBITDA and sales volume) replaces previous apparent alumina cash cost

3) Paragominas production, on wet basis

4) 40 percent MRN offtake from Vale and 5 percent Hydro share on wet basis

5) Operating and financial information includes Hydro's proportionate share of production and sales volumes in equity accounted investments. Realized prices, premiums and exchange rates exclude equity accounted investments

6) Average realized premium above LME for casthouse sales from Primary Metal.

7) Including strategic hedges /hedge accounting applied

8) Realized LME price minus Underlying EBITDA margin (incl. Qatalum) per mt primary aluminium produced. Includes net earnings from primary casthouses

9) Realized all-in price minus Underlying EBITDA margin (incl. Qatalum) per mt primary aluminium sold. Includes net earnings from primary casthouses

10) Total sales replaces previous casthouse sales due to change of definition

11) Underlying EBITDA divided by total revenues

Operational data

Met al M ark ets	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Rem elt p rod ucti ( 1 00 0 m t) on	144	146	125	133	143	152	136	137	150	153	548	568
Thi rd-p arty Me tal Pro duc ts s ales ( 1 00 0 m t)	72	74	78	80	79	80	74	86	70	77	304	319
1) Met al P rod les l. in ding ( 1 00 0 m t) ucts t tra sa exc go	736	777	720	660	735	759	707	720	745	746	2 8 93	2 9 21
Her eof exte l sa les l. in t tra ding ( 1 00 0 m t) rna exc go	664	694	652	616	672	675	639	589	580	563	2 6 27	2 5 75
( NO n) Ext al r K m illio ern eve nue	10 133	10 169	9 6 78	9 4 40	11 094	12 080	10 675	10 4 14	10 9 01	10 905	39 420	44 264
Rol led Pr odu cts	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Rol led Pro duc l sh ipm s ( 1 00 0 m t) ts e xte ent rna	229	238	231	213	241	239	236	224	245	251	911	940
Rol led Pro duc ts – Und erly ing EBI T p t, NO K er m	1 08 6	1 0 17	914	29	442	351	400	424	949	844	777	404
2) Und erly ing EBI TDA in ma rg	% 7.8	% 7.2	% 7.2	% 4.2	% 4.9	% 4.5	% 4.8	5.0 %	6.7 %	% 6.1	% 6.7	4.8 %
3) Ext rud ed Sol utio ns	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Ext rud ed Sol utio xte l sh ipm ent s ( 1 00 0 m t) ns e rna				310	355	359	339	318	362	373	1 3 65	1 3 72
Ext rud ed Sol utio Pro -for und erly ing EBI T p NO K t, ns – ma er m				829	1 9 73	2 3 28	1 5 05	893	2 0 28	2 5 66	1 3 81	1 6 99
2) Und erly ing EBI TDA in ma rg				5.3 %	7.7 %	8.2 %	6.5 %	5.2 %	7.3 %	8.1 %	6.6 %	6.9 %
Ene rgy	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Q4 201 7	Q1 201 8	Q2 201 8	Yea r 20 16	Yea r 20 17
Pow rod ucti GW h er p on,	3 1 60	2 6 74	2 9 46	2 5 51	2 8 69	2 3 69	2 5 09	3 0 89	2 4 33	2 5 50	11 332	10 8 35
Net ot s ales GW h sp ,	1 79 5	1 3 93	1 6 99	1 1 76	1 4 09	996	1 1 68	1 63 3	763	961	6 0 63	5 2 06
NO K/M Nor dic t ele ctric ity p rice Wh spo ,	229	223	235	311	280	257	266	294	372	373	250	274
Sou the rn N t ele ctric ity p rice ( NO 2), NO K/M Wh orw ay s po	212	213	212	296	278	252	258	287	361	369	233	269
2) Und erly ing EBI TDA in ma rg	28. 0%	21. 1%	21. 3%	17. 8%	24. 4%	19. 3%	23. 1%	23. 9 %	19. 2%	22. 2%	21. 6%	22. 8%

1) Includes external and internal sales from primary casthouse operations, remelters and third party Metal sources 2) Underlying EBITDA divided by total revenues 3) Q4 2016, FY 2017 and historical operational data based on pro forma figures

Pro forma information

Summary consolidated underlying financial and operating results

N O K m i l l ion	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8	2 0 1 7	2 0 1 6
Re ven ue	4 1 2 5 4	3 8 5 3 4	3 9 9 7 1	1 4 8 9 2 0	1 3 0 6 3 0
E B I T	2 9 8 6	3 3 7 2	3 3 0 1	1 1 9 2 7	8 2 2 9
fro I tem lu de d der ly ing E B I T s e xc m u n	( ) 2 7 4	5 2	( ) 1 5 5	5 1 0	( ) 6 9 8
Un der ly ing E B I T	2 7 1 3	3 4 2 4	3 1 4 7	1 2 4 3 7	7 5 3 1
E B I T D A	4 8 6 0	1 6 5 7	1 9 3 5	1 9 2 9 4	1 3 3 1 5
Un der ly ing E B I T D A	4 5 8 6	5 2 2 8	5 0 3 8	1 9 7 8 6	1 4 6 3 3

Extruded Solutions

N O K m i l l ion	Q 2 2 0 1 8	Q 2 2 0 1 7	Q 1 2 0 1 8	2 0 1 7	2 0 1 6
Re ven ue	1 6 9 8 0	1 5 3 1 0	1 5 9 1 1	5 7 7 6 9	5 3 3 2 7
E B I T	1 1 0 9	7 0 3	6 8 7	2 2 6 5	2 1 0 9
I tem lu de d fro der ly ing E B I T s e xc m u n	( 1 5 1 )	1 3 3	4 7	6 5	( 2 2 4 )
* Un der ly ing E B I T	9 5 7	8 3 6	7 3 4	2 3 3 0	1 8 8 5
E B I T D A	1 3 4 5	1 1 1 9	1 1 0 8	3 9 1 7	3 3 9 7
Un der ly ing E B I T D A	1 3 8 3	1 2 5 2	1 1 5 5	3 9 8 2	3 5 1 6
Sa ( ) les lum to e ter l m ke t km t vo es x na ar	3 7 3	3 5 9	3 6 2	1 3 7 2	1 3 6 5

* Underlying EBIT includes certain effects of the acquisition such as increased depreciation and amortization following fair value adjustment related to long-lived assets.

Extruded Solutions, information by business area

Historical Sapa information (100% basis) Q1 2016 – Q3 2017 and FY 2015-16 Extruded Solutions, fully consolidated in Hydro in 2018 and Q4 2017*

Prec isio n Tu bing	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	201 6	Q4 201 7	Q1 201 8	Q2 201 8	Extr usio n Eu rope	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	201 6	Q4 201 7	Q1 201 8	Q2 201 8
Volu ( kmt ) me	37	40	37	35	36	38	36	150	35	37	41	Volu ( kmt ) me	148	157	142	130	154	155	142	577	134	159	160
Ope ratin ( NOK m) g re ven ues	1 62 0	1 66 4	1 54 9	1 54 3	1 65 1	1 73 4	1 60 1	6 37 6	1 64 5	1 70 0	1 91 0	Ope ratin ( NOK m) g re ven ues	5 36 6	5 46 8	4 93 2	4 56 5	5 55 3	5 99 9	5 46	0 2 0 33 1	5 54 1	6 60 0	6 66 4
Und erly ing EBIT DA ( NOK m)	144	169	135	161	180	193	157	608	138	168	120	Und erly ing EBIT DA ( NOK m)	349	425	276	221	390	416	290	1 27 1	240	417	504
Und erly ing EBIT ( NOK m)	86	112	76	103	123	136	97	376	66	103	55	Und erly ing EBIT ( NOK m)	223	304	154	97	274	292	164	778	59	246	333
Bui ldin Sys tem g s	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	201 6	Q4 201 7	Q1 201 8	Q2 201 8	Extr usio n No rth A ica mer	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	201 6	Q4 201 7	Q1 201 8	Q2 201 8
Volu ( kmt ) me	19	21	18	19	20	21	19	77	19	20	21	Volu ( kmt ) me	150	155	149	131	150	151	148	585	134	152	157
Ope ratin ( NOK m) g re ven ues	1 86 9	1 93 9	1 68 0	1 68 5	1 83 0	2 04 4	1 76 5	7 17 3	1 96 0	2 05 7	2 12 4	Ope ratin ( NOK m) g re ven ues	5 26 5	5 23 4	5 18 3	4 61 7	5 51 4	5 75 3	5 36 9	20 2 99	5 21 1	5 88 2	6 51 9
Und erly ing EBIT DA ( NOK m)	110	210	104	109	155	219	118	533	137	167	198	Und erly ing EBIT DA ( NOK m)	414	362	361	199	437	466	390	1 33 5	248	448	606
( NOK m) Und erly ing EBIT	75	166	67	74	119	183	85	381	85	116	146	Und erly ing EBIT ( NOK m)	315	263	260	89	330	353	284	927	119	325	481
Oth nd e limi nati er a ons	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	201 6	Q4 201 7	Q1 201 8	Q2 201 8
Und erly ing EBIT DA ( NOK m)	( 116 )	( 33)	( 64)	( 37)	( 63)	( 43)	( 41)	( 249 )	( 35)	( 45)	( 46)
NOK Und erly ing EBIT ( m)	( 127 )	( 41)	( 69)	( 28)	( 69)	( 49)	( 42)	( 266 )	( 45)	( 55)	( 58)

* Includes certain effects of the acquisition such as increased depreciation and amortization following fair value adjustments related to long-lived assets. Estimate increased depreciation of around MNOK 300 per annum for Extruded Solutions vs "old Sapa".

Historical information for Sapa

Sapa JV (100 % basis), underlying (unaudited)

NO K m illio ale olu t s n, e xce p s v me s	Q1 201 4	Q2 201 4	Q3 201 4	Q4 201 4	Q1 201 5	Q2 201 5	Q3 201 5	Q4 201 5	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Yea r 20 15	Yea r 20 16
Sal e ( t) olum 100 0 m es v	359	367	350	322	353	358	341	312	349	366	340	310	355	359	339	1 3 63	1 3 65
Rev es* enu	11 3 11	11 496	11 561	11 842	14 051	14 484	13 895	12 821	13 905	14 071	13 140	12 210	14 323	15 309	13 983	55 252	53 327
Und erly ing EBI TDA	440	641	492	343	705	799	734	491	901	1 1 32	812	653	1 1 00	1 2 52	912	2 7 29	3 4 98
Und erly ing EBI T	155	350	201	( 55)	392	483	404	128	571	804	487	335	778	914	588	1 4 07	2 1 97
Und erly ing net inco ( loss ) me	69	263	110	( 44)	238	291	240	139	365	540	315	334	562	658	419	907	1 5 53

Sapa JV (100 % basis), reported (unaudited)

NO K m illio n	Q1 201 4	Q2 201 4	Q3 201 4	Q4 201 4	Q1 201 5	Q2 201 5	Q3 201 5	Q4 201 5	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Yea r 20 15	Yea r 20 16
Rep orte d E BIT	( 3)	168	198	( 679 )	201	65	174	88	655	920	497	350	856	781	604	528	2 4 20
Rep d n et in e ( loss ) orte com	( 103 )	89	107	( 719 )	89	14	109	34	418	639	344	379	625	545	430	246	1 7 79

Sapa JV (100 % basis), reconciliation between reported and underlying EBIT (unaudited)

NO K m illio ale olu t s n, e xce p s v me s	Q1 201 4	Q2 201 4	Q3 201 4	Q4 201 4	Q1 201 5	Q2 201 5	Q3 201 5	Q4 201 5	Q1 201 6	Q2 201 6	Q3 201 6	Q4 201 6	Q1 201 7	Q2 201 7	Q3 201 7	Yea r 20 15	Yea r 20 16
Rep orte d E BIT	( 3)	168	198	( 679 )	201	65	174	88	655	920	497	350	856	781	604	528	2 4 20
Item clud ed f EB IT: s ex rom
Unr eali zed der ivat ive effe cts	73	36	66	( 79)	( 145 )	( 158 )	( 95)	208	83	116	51	82	78	( 133 )	15	( 189 )	333
Res truc turi ost and oth er i tem ng c s	( 231 )	( 218 )	( 70)	( 546 )	( 47)	( 260 )	( 135 )	( 249 )	-	-	( 42)	( 67)	-	-	-	( 690 )	( 109 )
Tot al it clud ed f EB IT** em s ex rom	( 159 )	( 182 )	( 4)	( 624 )	( 191 )	( 418 )	( 230 )	( 41)	83	116	9	15	78	( 133 )	15	( 879 )	223
Und erly ing EB IT	155	350	201	( 55)	392	483	404	128	571	804	487	335	778	914	588	1 4 07	2 1 97

* Historical revenues have been reclassified

** Negative figures represent a net cost to be added to get from reported EBIT to Underlying EBIT

Investor Relations in Hydro

Stian Hasle

Head of Investor Relationst: +47 97736022

Olena Lepikhina Investor Relations Officert: +47 96853035e: olena.lepikhina@hydro.com

Aud Helen HalvorsenInvestor Relations Assistant t: +47 95182741e: aud.helen.halvorsen@hydro.com

e: stian.hasle@hydro.com Next event Third quarter results October 24, 2018

For more information seewww.hydro.com/ir