Financial Overview

(in NOK million)	FY2007	FY2006	Rate of change	Factors
Overall
Operating revenues	94,316	98,752	(4.5%)	-
EBIT	9,930	10,165	(2.3%)	-
-Revenue for Automotive	6,506	10,317	(37%)	(1)
-EBIT for Automotive	(67)	(51)	-	(2)

Factors
(1) Decreased revenues were impacted by the divestment of its magnesium and castings businesses. Increased volumes from its remaining businesses had a positive effect on the revenues for 2007. Total shipments increased by about 15% compared to 2006. Shipments for Precision Tubing were up approximately 10%, while volumes for its Structure business improved around 20%.
(2)Results improved for its Precision Tubing operations but the effects of the positive developments were offset by increased losses within its structures business. Negative results from its structures operations amounted to around NOK 100 million for the year. Results were impacted by costs related to starting up new production lines and costs relating to new contracts.


Automotive sales volumes (1,000 tons to market)

-	FY2007	FY2006	FY2005
Precision tubing	73	66	59
Structures	44	36	41
Total	117	102	100

Divestitures
-During the first quarter of 2007, the Company completed the divestment of its automotive castings business and finalized the closure of the magnesium plant in Becancour, Canada. An agreement for the sale of its magnesium remelters in Germany and China was concluded in July 2007 and minor operations were disposed of during the remainder of the year. A decision was taken to focus their automotive business field on the precision tubing and structures.

Capital Expenditure

(in NOK million)	FY2007	FY2006
Aluminum Metal	3,541	2,515
Aluminum Products	866	1,252
Energy	233	140
Corporate and eliminations	566	619

-The Company created an additional 100 jobs in its precision tubing organization in Denmark in 2007. One reason is the significant increase in sales volume for aluminum tubes that customers use in air-conditioning systems. The Company is investing DKK 50 million (竄ｬ6.7 million) in high-tech equipment at its precision tubing units in Logumkloster and Bedsted, near Tﾃｸnder. In addition, the Company is expanding by more than 1,000 square meters the production areas in Bedsted, where manning is expected to increase from 60 to 140 by the middle of 2008. The Company has around 500 employees working for its Precision Tubing sector in Tonder. (From a press release on Nov. 23, 2007)