RELACIONES CON EMPRESAS, INSTITUCIONES Y PARTICULARES:

Credit risk arising from derivatives is generally limited to net exposures. Exposure limits are established for financial

institutions relating to current accounts, deposits and other obligations. Credit risk related to commodity derivatives is limited by settlement through commodity exchanges. Current counterparty risk related to the use of derivative instruments and financial operations is considered limited.

Liquidity risk

Volatile commodity prices and exchange rates as well as fluctuating business volumes and inventory levels can have a substantial effect on Hydro's cash positions and borrowing requirements.

To fund cash deficits of a more permanent nature Hydro will normally raise long-term bond or bank debt in available markets. Hydro has a revolving syndicated credit facility of USD 1.7 billion maturing in 2019, with one potential one-year extension remaining. The facility remained undrawn at year-end.

Repayments of long-term debt are disclosed in note 33 Long-term debt. Further, all other financial liabilities, such as trade payables, with the exception of derivatives, have a final maturity date within one year. An overview of estimated gross cash flows from derivatives accounted for as liabilities and assets is presented below. Many of these assets and liabilities are offset by cash flows from contracts not accounted for as derivatives.

Expected gross cash flows from derivatives accounted for as financial liabilities and financial assets, respectively, as of end of year:

Amounts in NOK million Liabilities Assets Liabilities Assets

2014 (5 685) 5 502

2015 (295) 562 (10) 9

2016 (28) 6 (6) 8

Total (323) 568 (5 701) 5 519

December 31, 2014 December 31, 2013

The cash flows above are to a large extent subject to enforceable netting agreements reducing Hydro's exposure substantially. For additional information on contracts accounted for at fair value, see note 44 Derivative instruments and hedge accounting.

The Hydro group consists of about 80 companies in about 20 countries. Most subsidiaries are 100 percent owned, directly or indirectly, by Norsk Hydro ASA. Restrictions in the ability to transfer dividend exist in most countries where we operate. In some countries there are also legal restrictions in our ability to integrate cash holdings in subsidiaries in the group’s cash pool. There are minority interests in some subsidiaries. The more significant ones are described below.

Note 7 - Significant subsidiaries and changes to the consolidated group

Hydro holds 51 percent of the shares in the Brazilian aluminium smelter Alumínio Brasileiro S.A. (Albras), which is part of Primary Metal. The minority owner has significant influence on certain decisions in the entity, including operational and investment budgets. The minority interests in Albras amounted to NOK 3,332 million as of December 31, 2014, and NOK 2,820 million as of December 31, 2013. Funds held by the entity are not available to the group through cash pool

arrangements. Dividends need to be approved by the shareholders jointly. The shareholder agreement supports transfer of dividend to the extent possible under statutory regulations. The smelter produces standard ingots, which are sold to its shareholders in proportion to ownership interest at a price based on prevailing aluminium prices at the London Metal Exchange and product premiums.

Albras

Hydro holds 55 percent of the total shares and 60 percent of the voting interest in the Slovac smelter Slovalco a.s, which is part of Primary Metal. The minority owner has significant influence on certain decisions in the entity, including operational and investment budgets. The minority interests in Slovalco amounted to NOK 1,064 million as of December 31, 2014, and NOK 952 million as of December 31, 2013. Funds held by the entity are not available to the group through cash pool arrangements. Dividends need to be approved by the shareholders jointly. The shareholder agreement supports transfer of dividend to the extent possible under statutory regulations. The smelter produces metal products, of which the majority is sold to Hydro at a price based on prevailing aluminium prices at the London Metal Exchange and product premiums.

Slovalco

Note 6 - Financial and commercial risk management

Alunorte

Hydro holds about 92 percent of the shares in the Brazilian alumina refinery Alumina do Norte do Brasil S.A. (Alunorte), which is part of Bauxite & Alumina. The minority owners have limited influence on the operational decisions. The minority interests in Alunorte amounted to NOK 1,326 million as of December 31, 2014, and NOK 1,319 million as of December 31, 2013. Funds held by the entity are not available to the group through cash pool arrangements. Dividends need to be approved by the shareholders jointly. The shareholder agreement supports transfer of dividend to the extent possible under statutory regulations. The refinery produces alumina, which is sold to its shareholders at a price based on prevailing aluminium prices at the London Metal Exchange, with a fixed minimum and maximum price introduced in June 2014.

The table below summarizes key figures for Albras, the only subsidiary with minority interests considered material, as included in the group financial statements. Fair value adjustments from Hydro’s acquisition of the subsidiary are included.

Intercompany transactions and balances are included, and any internal profit and loss in inventory and fixed assets purchased from group companies are not eliminated in the numbers below.

Amounts in NOK million 2014 2013

Internal revenue 3 440 2 560

External revenue 3 310 2 589

Earnings before financial items and tax 1 391 212

Net income 851 98

Other comprehensive income 479 (314)

Total comprehensive income 1 330 (216)

Net cash flows from operating activities 1 817 661

Net cash flows from investing activities (377) (295)

Net cash flows from financing activities (356) (472)

Cash and cash equivalents 743 63

Other current assets 1 617 1 378

Non-current assets 6 897 6 912

Current liabilities 1 545 1 493

Non-current liabilities 914 1 105

Equity attributable to Hydro 3 465 2 935

Equity attributable to minority interests 3 332 2 820

Share of net income attributable to minority interests 417 48

Dividends paid to minority interests 135 306

Albras

In October 2012 Hydro's Board of Directors decided to combine the Extruded Products activities with the Profiles and Building System, as well as extruded and welded tubes, of the Norwegian industrial group Orkla's fully-owned subsidiary Sapa. The new combined company named Sapa, was established on September 1, 2013 as a 50/50 jointly controlled entity owned by Orkla and Hydro. The units contributed included Hydro's Building systems activities, the Precision tubing activities and general extrusion activities, which comprised all of the Extruded Products segment. Extruded Products had production facilities in Europe, North and South America, and China and sold such products as aluminium extrusion and semi fabricated products for the building and construction, transportation and engineered products industrial sectors. Hydro delivers certain services to Sapa in a transition period, and will continue to deliver metal products to Sapa at market prices.