Board of Directors' Report

Back from left to right: Jørn B. Lilleby, Eva Persson, Inge K. Hansen, Sten Roar Martinsen, Liv Monica Bargem Stubholt and Billy Fredagsvik.Front from left to right: Bente Rathe, Terje Vareberg and Finn Jebsen.

2010 marks a significant improvement in underlying operating results for Hydro. Having weathered the financial storm, the company has emerged stronger, with leaner operations, and is ready to embark on a new era as a resource-rich and fully integrated aluminium company.

Transforming transaction

Following a decade of restructuring and consolidation, last year marked another turning point in Hydro's industrial development. On February 28, we concluded an agreement to take over the majority of Vale's aluminium business in Brazil. Combining Vale's aluminium assets with Hydro has resulted in a stronger company, fully integrated into bauxite, with a long alumina position and a preferred standing in a more consolidated market. We have acquired premier assets, including substantial ownership interests in one of the largest bauxite mines in the world, the largest alumina refinery in the world and significant expansion opportunities in this critical part of the value chain. We have also acquired a majority interest in one of the largest aluminium smelters in South America. The acquisition is expected to lower the operating break-even point for Hydro and improve our overall cash-cost position.

To partly finance the transaction, support the company's investment-grade credit rating and improve our capacity to implement future projects, Hydro completed a rights offering strengthening its equity by NOK 10 billion in July 2010. The transaction and the rights issue are expected to enhance our growth potential through new expansion projects and a stronger balance sheet.

The Vale aluminium acquisition represents a transforming transaction that will significantly reshape Hydro in 2011 and the years to come. We see exciting opportunities and potential in the new business portfolio. Hydro's long-standing strategic partnership with Vale, the world's second-largest metals and mining company, will be extended through Vale's 22 percent equity holding in Hydro.

About Hydro's Board of Directors

Terje Vareberg (Chairperson)
Terje Vareberg

• Position: Independent businessman.
• Education: Master of Science in business, Norwegian School of 
  Economics and Business Administration (NHH).
• Current directorships: Chairperson of Bergli Rådgivning AS. Board member of Bank1 Oslo and Nets Holding AS.

• No. of Hydro shares: 13,391.

Bente Rathe (Deputy chairperson)
Bente Rathe

• Position: Independent businesswoman.
• Education: Master of Science in business, Trondheim Økonomiske Høgskole (HIST); MBA from the University of Denver.
• Current directorships: Chairperson of Ecohz AS and Cenium AS. Board member of Powel AS, Choice Hotel Scandinavia AS, Home Invest AS, Svenska Handelsbanken AB, and Innovation Norway. 

• No. of Hydro shares: 6,521.

Jørn B. Lilleby (Employee representative)
Jørn B. Lilleby

Position: Maintenance supervisor / full-time union official representing the Central Cooperative Council (Sentralt Samarbeidsråd).
• Education: Master of Science in mechanical engineering, Norwegian Institute of Technology.
• Current directorships: Chairperson of the board of the community of interest ENGN Grimsmoen airfield, Ottem Transport and Ottem Resirk. 

• No. of Hydro shares: 1,857.

Eva Persson
Eva Persson

• Position: General counsel for the Volvo Group.
• Education: Master of Law from the University of Lund, Sweden.
• Current directorships: Board member of Handelsbanken region Western Sweden

• No. of Hydro shares: None.

Liv Monica Stubholt
Liv Monica Stubholt

 Position: CEO and member of the board of Aker Clean Carbon AS
• Education: Master's degree in law (cand. jur.), University of Oslo.
• Current directorships: Board member of Aker Clean Carbon AS and the Norwegian-German Chamber of Commerce. Deputy chair of the Norwegian Review Committee for the European Economic Area.

• No. of Hydro shares: None.


See CV

Sten Roar Martinsen (Employee representative)
Sten Roar Martinsen

• Position: Process operator / full-time union official representing the Norwegian Confederation of Trade Unions (LO)
• Education: Certificate of apprenticeship in electrochemistry.
  Work supervisor training.
• Current directorships: None

• No. of Hydro shares: 2,998

See CV

Billy Fredagsvik (Employee representative)
Billy Fredagsvik

• Position: Process operator / full-time union official. Represents the Norwegian Confederation of Trade Unions (LO)
• Education: Trade school (mechanics)
• Current directorships: None

• No. of Hydro shares: 1,942

See CV

Inge K. Hansen
Inge K. Hansen

• Position: Independent adviser.
• Education: Master of Science in business, Norwegian School of Economics and Business Administration (NHH).
• Current directorships: Chairperson of Bertel O. Steen AS, Norsun AS, Gjensidige Forsikring BA, Hotell og Restauranthuset Continental and Leonard Nilsen & Sønner AS. Board member of Jiffy International AS, Master Marine AS, Norwind AS and Sissener AS.

• No. of Hydro shares: 12,000.

Finn Jebsen
Finn Jebsen

• Position: Independent businessman.
• Education: Master of Science in business from the Norwegian School of Economics and Business Administration (NHH); MBA from the University of California, Los Angeles.
• Current directorships: Chairperson of Kongsberg Gruppen ASA and Kavli Holding AS; deputy chair of KLP Forsikring; board member of A. Wilhelmsen Management AS, Berner Group AS and Fateburet AS.

• No. of Hydro shares: 53,406.

See CV


Updated: October 11, 2016