Takeshi Saito, Research Scientist Hydro Aluminium, Research and Technology Development (RTD) 7th September 2016, Japan Seminar in Trondheim Business and R&D activities in Japanese market

A resource-rich, global aluminium company Global provider of alumina, aluminium and aluminium products Leading businesses along the value chain; raw materials, energy, primary metal production, aluminium products and recycling 13,000 employees involved in activities in more than 50 countries Market cap ~NOK 70 billion/USD 8 billion Annual revenues ~NOK 87 billion (2015) Included in Dow Jones Sustainability Indices and FTSE4Good Primary Metal Rolled Products Energy Bauxite & Alumina Extrusion joint venture With robust positions across the value chain (2)

(3) Høyanger (159) Husnes (242) Røldal-Suldal 580MW/3,0TWh Telemark 500MW/3,5TWh Karmøy (420) Vigeland (30), 0,2TWh Holmestrand (407) Oslo (360) Årdal (545) Sunndal (712) Sogn (Tyin/Fortun) 682MW/3,3TWh Operations 5 primary aluminium plants in Sunndal, Karmøy, Årdal, Høyanger and Husnes Rolling mill and recycling plant in Holmestrand 20 hydropower plants in Telemark, Sogn, Røldal-Suldal and Agder 50% owner of SAPA, world’s largest provider of aluminium solutions Employees in Norway 3,650 Research and development Årdal, Sunndal, Karmøy, Porsgrunn, Oslo NTNU, SINTEF, UiO, IFE Annual R&D activity: NOK 350 millions Hydro in Norway Knowledge-based mainland industry with significant spin-off effects (Permanent employees)

Hydro in Asia Singapore − Hydro Aluminium Asia Pte Ltd (PM) − Hydro Aluminium Rolled Products Pte Ltd (RP) Japan − Norsk Hydro Tokyo Representative Office (PM) − Hydro Aluminium Japan KK (PM) Taiwan − Hydro Aluminium Asia Pte Ltd Taiwan Representative Office (PM) China − Norsk Hydro Beijing Representative Office (B&A) − Hydro Aluminium (Beijing) Co Ltd (B&A) Australia − Tomago JV (12.4%) (PM) 4 Sales and customer technical support in Asia Pacific Wholly-owned Partly-owned

Japanese market for Hydro Interest Huge and wide automotive and the other aluminium product market − Japanese domestic market is matured, automotive industries are shifting production in the other countries. − We believe to continue to grow the market No primary aluminium production in Japan − Primary aluminium supply is depending on import. Usually very reliable for e.g. payment, contract/deal (price, sales volume, terms etc) High levels of quality requirement, high knowledge of science and technology Challenge Hydro is relatively new market player in Japan (end-use customers are not familiar with Hydro activities/capability) Standard (JIS) is sometimes problematic to introduce new product into market. Cultural differences, language… one who knows Japanese cultures/language are important. Interesting points and challenge for our business 5

Current (and future) activities of Hydro in Japan Current activities Sales and customer technical support Joint R&D activities (“exposure” to the market is important!) − Joint research projects and publication (Toyama univ, Tokyo Institute of Technology and NTNU/SINTEF/Hydro) − Acceptance of internship students (3 students stayed in R&D centre in 2016) Future activities Continue joint R&D activities with universities (and with end-user customers if possible) 6

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