Hydro Annual Report 2011b

Annual Report
– 2011
HyDRO’S REPORTING 2011
The enclosed Board of Directors report, together with the Financial
Statements and accompanying notes, fulfills Hydro’s Norwegian
statutory requirements for annual reporting. The remainder of the
Annual Report includes additional information about Hydro’s
business, viability performance, financial and operating performance,
risk, shareholder information and corporate governance.
The “Annual report - 2011” is available in PDF-format on our website
www.hydro.com/reporting2011 in English. The “Board of Directors’
report and Financial Statements - 2011” is also available in PDFformat
as a separate document in both English and Norwegian. All
parts of the reports can be downloaded and printed in PDF-format,
together with additional, supplementary information. Paper copies of
the reports can also be ordered on our website.
RESULTS IMPROvE
Higher prices and production volumes lift underlying operating results
Hydro’s underlying results improved in 2011, driven by higher alumina
and aluminum prices and increased production mainly due to the Vale
acquisition. Underlying EBIT increased to NOK 6,133 million from NOK
3,351 million in 2010.
Primary aluminium production amounted to 2 million mt and we
delivered 3.3 million mt of casthouse products to internal and external
customers. Downstream, we shipped roughly 930 kmt of rolled
products and 535 kmt of extruded products to the market. Our Energy
operations produced 9.6 TWh of renewable hydroelectric power.
AnnuAl report
Index
3
Board of Directors’ report p.10
Hydro’s Board of Directors’ report including
key developments.
01: Business description p.21
Detailed operating information is provided for each
of Hydro’s businesses including industry overview. Key
regulatory and taxation issues are also outlined.
02: viability performance p.49
The Hydro Way forms the basis for our viability
reporting which includes energy and climate change, resource
management, integrity and human rights, community impact,
organization and work environment and innovation.
03: financial and operating performance p.81
Financial and operating results are discussed per business segment and
sub-segment as well as financial income/expense and income tax for Hydro.
In addition disclosures about liquidity and capital resources and return on
capital are provided.
04: Risk review p.107
Hydro’s risks are described in relation to financial
and commercial risk, operational risk, strategic risk,
compliance risk and market risk.
05: Shareholder information p.115
Read about our share price development, dividend policy,
funding and credit rating policy, the Annual General Meeting
and the financial calendar for 2010.
06: Corporate governance p.121
Hydro’s corporate governance practice is described in
relation to regulatory compliance, corporate directives and
code of conduct and our governance bodies.
07: financial statements p.f1
Hydro prepares its financial statements according to
International Financial Reporting Standards (IFRS). Both
Hydros’s consolidated financial statements and the financial
statements for the parent company Norsk Hydro ASA
are provided.
08: Appendix p.A1
Terms and definitions.