We confirm to the best of our knowledge that the consolidated financial statements for 2008 have been prepared in accord- ance with IFRS as adopted by the European Union, as well as additional information requirements in accordance with the Norwegian Accounting Act, that the financial statements for the parent company for 2008 have been prepared in accord- ance with the Norwegian Accounting Act and generally accepted accounting practice in Norway, and that the informa-
tion presented in the financial statements gives a true and fair view of the assets, liabilities, financial position and result of Norsk Hydro ASA and the Hydro Group for the period. We also confirm to the best of our knowledge that the Board of Directors’ Report includes a true and fair review of the devel- opment, performance and financial position of Norsk Hydro ASA and the Hydro Group, together with a description of the principal risks and uncertainties that they face.
terje vareberg Chair finn Jebsen Board member Heidi M. petersen Board member Oslo, 18 March 2008 grete faremo Deputy chair Bente rathe Board member inge K. Hansen Board member Billy fredagsvik Board member Jørn B. lilleby Board member
sten roar Martinsen
Board member
eivind reiten
Auditor’s report for 2008
We have audited the annual financial statements of Norsk Hydro ASA as of 31 December 2008, showing a profit of NOK 9,216 million for the parent company and a loss of NOK 3,514 million for the group. We have also audited the information in the Board of Directors’ report concerning the financial statements, the going concern assumption and the proposal for the allocation of the profit. The annual financial statements comprise the parent company’s financial statements and the group accounts. The parent company’s financial state- ments comprise the balance sheet, the statements of income and cash flows, and the accompanying notes. The rules of the Norwegian Accounting Act and generally accepted accounting practice in Norway have been applied to prepare the parent company’s financial statements. The group accounts comprise the balance sheet, the statements of income and cash flows, the statement of changes in equity and the accompanying notes. International Financial Reporting Standards as adopted by the EU have been applied to prepare the group accounts. These financial statements are the responsibility of the Company’s Board of Directors and President & CEO. Our responsibility is to express an opinion on these financial statements and on other information according to the requirements of the Nor- wegian Act on Auditing and Auditors.
We have conducted our audit in accordance with the Nor- wegian Act on Auditing and Auditors and generally accepted auditing practice in Norway, including standards on auditing adopted by Den norske Revisorforening. These auditing stand- ards require that we plan and perform the audit to obtain rea- sonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial state- ment presentation. To the extent required by law and generally
accepted auditing practice, an audit also comprises a review of the management of the Company’s financial affairs and its accounting and internal control systems. We believe that our audit provides a reasonable basis for our opinion.
In our opinion,
• the parent company’s financial statements are prepared in accordance with law and regulations and give a true and fair view of the financial position of the Company as of 31 December 2008, and the results of its operations and its cash flows for the year then ended, in accordance with gener- ally accepted accounting practice in Norway
• the group accounts are prepared in accordance with law and regulations and give a true and fair view of the financial posi- tion of the Group as of 31 December 2008, and the results of its operations, its cash flows and the changes in equity for the year then ended, in accordance with International Finan- cial Reporting Standards as adopted by the EU
• the Company’s management has fulfilled its duty to see to proper and well arranged recording and documentation of accounting information in accordance with law and gener- ally accepted bookkeeping practice in Norway
• the information in the Board of Directors’ report concerning the financial statements, the going concern assumption and the proposal for the allocation of the profit, is consistent with the financial statements and complies with law and regulations.
Oslo, 18 March 2009 Deloitte AS
Aase Aa. lundgaard (signed)
State Authorised Public Accountant (Norway) To the Annual Shareholders’ Meeting of Norsk Hydro ASA
statement of the corporate assembly to the Annual general meeting of norsk Hydro AsA
The board of directors’ proposal for the financial statements for the financial year 2008 and the Auditors’ report have been sub- mitted to the corporate assembly.
The corporate assembly recommends that the directors’ pro- posal regarding the financial statements for 2008 for the parent company, Norsk Hydro ASA, and for Norsk Hydro ASA and
its subsidiaries be approved by the annual general meeting, and that the net income for 2008 of Norsk Hydro ASA be appro- priated as recommended by the directors.
Oslo, 18 March 2009 Siri Teigum
Terms and definitions
Term Definition
ADRs American Depositary Receipts, evidencing a specified number of ADSs
ADSs American Depositary Shares, each ADS representing one deposited ordinary share AluNorf Aluminium Norf GmbH
Articles of Association The articles of association of the Company, as amended and currently in effect Audit Committee The audit committee of the Company’s Board of Directors
BAT “Best Available Techniques” for pollution prevention and control Code The U.S. Internal Revenue Code of 1986, as amended
Company Norsk Hydro ASA, a Norwegian public company limited by shares, or Norsk Hydro ASA and its consolidated subsidiaries, as the context requires
Compensation Committee The compensation committee of the Company’s Board of Directors
Consolidated Financial Statements The consolidated financial statements and notes included in the Company’s annual report to shareholders
Corporate Assembly The corporate assembly, a body contemplated by Norwegian companies’ law, with responsibility, among other things, for the election of the members of the Company’s Board of Directors and nomination of the external auditor
Corporate Management Board The corporate management board established by the Company’s President and Chief Executive Officer to assist him in discharging his responsibilities
CRU CRU International Limited
Disclosure Committee The disclosure committee of the Company, comprised of members of senior management, which is responsible for reviewing financial and related information before it is made public
EEA European Economic Area
EEA Agreement The European Economic Area Agreement EFTA European Free Trade Association
EU European Union
HSE Health, safety and environment
Hydro Norsk Hydro ASA and its consolidated subsidiaries
Hydro Aluminium The aluminium business of Hydro, comprising the sub-segments Metals, Rolled Products, and Extrusion and Automotive
kWh Kilowatt hour
LME London Metal Exchange
mm Millimeter
NOK Norwegian kroner
Nomination Committee The nomination committee provided for in the Company’s Articles of Association and operating under a charter established by the shareholders’ representatives in the Corporate Assembly
Terms and definitions
Term Definition
OSE Oslo Stock Exchange
tonne One metric tonne (approximately 1,000 kilograms or 2,205 pounds) TWh Terawatt hour (one billion kilowatt hours)
US GAAP Generally accepted accounting principles in the United States VAW VAW Aluminium AG
VPS or VPS System The Norwegian Central Securities Depository, Verdipapirsentralen WTO World Trade Organization
tions about future developments in Hydro’s markets, particularly prices, supply and demand and competition, (c) statements of management’s plans, objectives and strategies for Hydro, such as planned expansions, investments, financing or other projects, (d) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, as well as (i) statements preceded by “expected”, “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar statements.
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: the global sup- ply and demand for aluminium and aluminium products, including as a result of changes in the economic climate; our continued ability to reposition and restructure our upstream and downstream aluminium business; changes in availability and cost of energy and raw materials; the ability of our counterparties to contracts to meet their contractual obligations; rates of inflation and indus- trial 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. For a description of factors that could cause our results to differ materially from those expressed or implied by such statements, please refer to the risk factors specified under “Risk review – Risk factors”earlier in this Annual Report.
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.