Norsk Hydro: Sapa (joint venture) - Announcement of results for the second quarter 2017

Underlying EBIT for Sapa in the second quarter increased compared to the previous quarter, in line with general seasonality in the industry but also related to improved performance.

Sapa improved its underlying EBIT in the second quarter of 2017 compared to the same period last year, ending the quarter at NOK 914 million. The quarterly result is the best in Sapa's history. The increase was driven by a higher share of value-add business and internal improvements for all business areas.

Underlying EBIT for the first half of 2017 improved compared to the same period in 2016, influenced by the same factors as discussed above.

Net interest-bearing debt increased to NOK 3.1 billion at the end of the quarter, mainly reflecting dividend payments of NOK 3 billion to the owners.

Key Figures - Sapa (100%)	Q1 2016	Q2 2016	Q3 2016	Q4 2016	Q1 2017	Q2 2017
NOK million, except sales volumes
Volume (kmt)	349	366	340	310	355	359
Total operating revenues	13 905	14 071	13 140	12 210	14 323	15 309
Underlying EBITDA	901	1 132	812	653	1 100	1 252
Underlying EBIT	571	804	487	335	778	914
Underlying net income	365	540	315	334	562	658
Reported EBIT	655	920	497	350	856	781

Demand for extruded products in Europe and North America increased compared to the previous quarter by around 9 percent and 3 percent respectively, driven by seasonality.

In North America, total demand for extruded products increased by around 3 percent compared to the same quarter last year. The increase was driven by stronger automotive demand and higher building and construction activities whereas demand from commercial transportation was declining.

In Europe, total demand for extruded products increased by around 2 percent compared to the same quarter last year. Europe experienced stronger automotive and transportation demand, as well as an improved building and construction market.

Key figures per business area

Extrusion Europe	Q1 2016	Q2 2016	Q3 2016	Q4 2016	Q1 2017	Q2 2017
NOK million, except sales volumes
Volume (kmt)	148	157	142	130	154	155
Operating revenues	5 366	5 468	4 932	4 565	5 553	5 999
Underlying EBITDA	349	425	276	221	390	416
Underlying EBIT	223	304	154	97	274	292
Extrusion North America	Q1 2016	Q2 2016	Q3 2016	Q4 2016	Q1 2017	Q2 2017
NOK million, except sales volumes
Volume (kmt)	150	155	149	131	150	151
Operating revenues	5 265	5 234	5 183	4 617	5 514	5 753
Underlying EBITDA	414	362	361	199	437	466
Underlying EBIT	315	263	260	90	331	353
Building Systems	Q1 2016	Q2 2016	Q3 2016	Q4 2016	Q1 2017	Q2 2017
NOK million, except sales volumes
Volume (kmt)	19	21	18	19	20	21
Operating revenues	1 869	1 939	1 680	1 685	1 830	2 044
Underlying EBITDA	110	210	104	109	155	219
Underlying EBIT	75	166	67	74	119	183
Precision Tubing	Q1 2016	Q2 2016	Q3 2016	Q4 2016	Q1 2017	Q2 2017
NOK million, except sales volumes
Volume (kmt)	37	40	37	35	36	38
Operating revenues	1 620	1 664	1 549	1 543	1 651	1 734
Underlying EBITDA	144	169	135	161	180	193
Underlying EBIT	86	112	76	103	123	136
Other and eliminations	Q1 2016	Q2 2016	Q3 2016	Q4 2016	Q1 2017	Q2 2017
Underlying EBITDA	-116	-33	-64	-37	-63	-43
Underlying EBIT	-128	-41	-69	-28	-69	-49

Investor contact
Contact Stian Hasle
Cellular +47 97736022
E-mail Stian.Hasle@hydro.com

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 because of new information, future events or otherwise.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.