Primary insiders purchase shares under Long Term Incentive program and shares to employees

Norsk Hydro ASA has a share-based Long Term Incentive (LTI) in the form of a remuneration of 30 percent and 25 percent of annual base salary for the President and CEO and the other members of the Corporate Management Board respectively.

April 3, 2017

The LTI payment requires that Hydro had a positive underlying EBIT in the previous year. The participants will be required to invest the net amount after tax in Hydro shares and such shares must be held for at least three years.

The terms of the LTI-plan are changing in 2017, to a potential of 30% remuneration for all members of the CMB and payments will hereafter be based partly on achieved return on capital employed, and partly on return on capital employed measured against a weighted average of return on capital employed from comparable companies.

The following primary insiders have on April 3rd 2017, acquired Hydro shares under the above-mentioned program at NOK 48.83 per share.

Name

Acquired shares

Holding after LTI purchase

President and CEO Svein Richard Brandtzæg 

20 351

230 964

Executive Vice President and CFO Eivind Kallevik

8 222

50 024

Executive Vice President Arvid Moss

8 222

146 692

Executive Vice President Hilde Merete Aasheim   

8 833

81 776

Executive Vice President Kjetil Ebbesberg 

8 715

47 346

Executive Vice President Anne-Lene Midseim

6 571

20 710

Executive Vice President Inger Sethov 

6 012

18 673

Executive Vice President Hanne Karine Simensen 

6 571

19 135

 

A total of 73 497 shares have been sold by Hydro to the participants in the Long Term Incentive program. Hydro holds 26 030 663 own shares after this transaction and the number of outstanding shares are 2 042 967 613.

In addition, all employees employed by Norsk Hydro in Norway have been offered to purchase shares valued at NOK 25 000, with a 50 percent discount, under a general arrangement offered each year. For employees taking part in this arrangement, the share price is NOK 24.41 per share, for 511 shares, which will be sold from Hydro's position of treasury shares by the start of May 2017.

The following primary insiders have under the scheme each agreed to purchase 511 shares:

- President and CEO Svein Richard Brandtzæg

- Executive Vice President and CFO Eivind Kallevik

- Executive Vice President Arvid Moss

- Executive Vice President Hilde Merete Aasheim

- Executive Vice President Kjetil Ebbesberg

- Executive Vice President Anne-Lene Midseim

- Executive Vice President Inger Sethov

- Executive Vice President Hanne Simensen

- Employee representative to the Board of Directors Billy Fredagsvik

- Employee representative to the Board of Directors Ove Ellefsen

- Employee representative to the Board of Directors Sten Roar Martinsen

- Company Secretary Ingeborg Margrethe Liahjell

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.

Norsk Hydro ASA has a share-based long-term incentive plan for the CEO and the other members of the Corporate Management Board of 30 percent of annual base salary. The LTI payment requires that Hydro had a positive underlying EBIT in the previous year. The terms of this plan are changing in 2017, and payments will hereafter be based partly on achieved return on capital employed, and partly on return on capital employed measured against a weighted average of return on capital employed from comparable companies. The participants will be required to invest the net amount after tax in Hydro shares and such shares must be held for at least three years.


Updated: April 3, 2017