Orkla Aluminium ExtrusionThe Sapa/Alcoa Joint Venture

Ole EngerPresident and CEO of Sapa

Capital Markets Day31 May, 2007

2 Creating a global market leader in extruded products Opportunity to shape the industry Good geographical complementarities Broad product range

Improving financial performance Customer intimacy Production improvements

Explore further growth potentials

Enthusiasm in both parts of the new organization

The Sapa/Alcoa joint venture- A setup to realize profitable growth opportunities

3Heat Transfer

100 %

Sapa JV

Sapa HoldingEmployees: 14,900

Orkla

Building System

Alcoa

100 % 100 % > 50 %

1,000

NOK 3.1 billion NOK 26.0 billion*

Products: Aluminium strip used invarious types of heat exchangers in the automotive industry

Building solutions based on aluminium profiles for the European construction industry

Extruded aluminium profiles for a number of industries; e.g. automotive, construction and telecom

< 50 %

NOK 3.4 billion

1,500 12,400

Net sales 2006:

Employees:

The new Sapa structure

*Pro forma estimates 2006

4 Net sales NOK 3.4 billion

Main competitors: Aleris, Alcan/Novelis, Hydro

Aluminium, Alcoa and Furukawa

Customers: Producers of heat exchangers for

the automotive industry

Global market share: 16 %

Presence: Top 3 positions in Europe and

Asia

Heat Transfer

5 Net sales NOK 3.1 billion Main competitors:

Schco, Hydro, Alcoa, Reynaers

Customers are found in the construction industry

Presence: First in Sweden Among the top three in Portugal, Belgium, France and UK

Building System

613 %

6 %

3 %

19 %Sapa JV

Hydro

Alcan

Aleris

27 %

16 %

10 %

8 %

Sapa JV

Indalex

Hydro

Kaiser

Europe North America

Market leader in important markets, e.g. France, UK, Benelux, Poland, France, Portugal, Sweden, Spain

Strongest position on the East Coast

Sapa JV-the global leader in soft alloy extrusions

7A global market leader strong positions in Europe and North America

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China

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Note: Sapa indicative estimates

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Western market growth at GDP Eastern Europe and Asia well above

Global consumption of extruded aluminium2004 estimates

Sapa JV presence:Key marketsInsignificant/none

8Sapa JV market presence Production and sales locations

9Manufacturing Surface treatment and fabrication Customers end products

Profile operations

10

Alcoa Sapa Sapa JV

Plants 22 18 40Countries 8 13 18Employees 6,400 6,000 12,400Deliveries, tons* 569,000 320,000 889,000Sales, USD billion* 2.5 1.7 4.2

Key figures Sapa JV

Sapa JV to be consolidated in Orkla Final ownership based on adjusted last 12 months EBITDA

*2006

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Sapa

9 Decentralised9 Entrepreneurship9 Local ownership

Customer oriented

Alcoa

9 EHS performance9 Global footprint 9 Rapid implementation

Cost and production oriented

Combining the strengths

12

Growth: above GDP growth

Profitability in the industry generally too low

Sapa is the best performer of the larger companies

Small producers perform surprisingly well

Negligible scale effect demonstrated

Industry characteristics

How to create scale effects and

differentiation

1. Customer intimacy: Sapainfluence customers solutions, either by new design or by reducing costs

1. Costs improvement including: Plant restructuring,

procurementGenesis, Redesign,

Benchmarking The Toyota Way

3. Improved EHS performance(especially at Sapa)

Main challenge Sources of value creation

Sources of value creation

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Product:

Introduction of the green metal Weight reduction of 40% Creation of a more flexible chassis, with integrated functions

Reduced time for assembly

Impact for customer:

Creation of multifunctional design that uses the simplicity that profiles offer

Profile design to minimize fabrication

How Sapaclosed the deal:

The customer used a steel chassis in its adjustable beds

The customer was looking for a more flexible, environmentally friendly, lighter and easy-assembly chassis

Customer case- Hstens

The case The product

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All supplies from one source and all deadlines met

3million of additional business Working with Sapa engineers gave the customer new ideas for a second generation product

Impact for customer:

Product is relevant to all countries Trax exports its products

Sapasroll-out potential:

Trax provide "hire" equipment (track panels) to major sporting and leisure events

Opportunity for substitution In Europe companies are still using traditional

materials - wood in Scandinavia and steel in Central Europe

Product:

Customer case- Trax Portable Roadways

The case The product

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Delivery capacity Excellent quality Reliable supplier A global supplier for a global customer

Impact for customer:

Overall supplier Competitive and long-term cooperation Participation from the design phase

How Sapa closed the PAX deal:

Aluminium profiles for wardrobe system; PAX (Sapas largest product with Ikea)

Wardrobe systems is Ikeas largest product line

Product:

Customer case- Ikea Sapas largest customer

The case The product

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Information inInstructions out

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Genesis

Traditional/Hierarchical

Is the activity done correctly?

Is the customer satisfied?

What do we do when we dont meet the expectations or the needs change?

Is the flow path as planned?

Empowering the value chain and the operators

From management to help chains

Focus on culture, transfer of knowledge and benchmarking

Genesis transforms the organisation-The Toyota Way

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Challenge:

40 % reduction in downtime 8 % increase in extrusion productivity

Impact:

Multifunctional teams established Operator involvement in development of standards and training

Visualisation of standards and results Continuous improvement

Introduction of Genesis:

12 % extrusion downtime Unpredictable volumes Frustrated customers

Genesis case- Downtime reduction P4 Tibshelf

The case The way we work

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Alcoa

Sapa

Country Manager

Sales and marketing reporting to the Country Manager

Pan-European customers served through segment organisations or by key account managers

Sapa JV Decentralized organisation- Example Europe

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IR & CommunicationsGabriella Ekelund

Human ResourcesPaul Hogg

TechnologyKarl Forster

Corporate StrategyHenrik stberg

Corporate BusinessMarius Grnningster

CFOSvein-Tore Holsether

North EuropePaul Warton

South EuropeVacant

North AmericaJack Miller

Central EuropeArne Rengstedt

CEOOle Enger

The Sapa JV organisation

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Next steps

Finalizing negotiations and closing

Ownership

IPO

21

Creating a global market leader in extruded products Opportunity to shape the industry Good geographical complementarities Broad product range

Improving financial performance Customer intimacy Production improvements

Explore further growth potentials

Enthusiasm in both parts of the new organization

Major opportunities