Seizing profitable Flat Rolled growth opportunities in Europe – Feb 3rd 2011 Bernd Schaefer – Alcoa European Mill Products Alcoa Logo Exhibit 99 |
Cautionary Statement Forward-Looking Statements This presentation contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “outlook,” “plans,” “projects,” “should,” “targets,” “will,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions, or projections about the future other than statements of historical fact are forward-looking statements, including, without limitation, forecasts concerning global demand for aluminum, aluminum end-market growth, aluminum consumption rates, or other trend projections, targeted financial results or operating performance, and statements about Alcoa’s strategies, objectives, goals, targets, outlook, and business and financial prospects. Forward-looking statements are subject to a number of known and unknown risks, uncertainties, and other factors and are not guarantees of future performance. Actual results, performance, or outcomes may differ materially from those expressed in or implied by those forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward- looking statements include: (a) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices for primary aluminum, alumina, and other products, or the effect of the move toward index-based pricing for alumina; (b) unfavorable changes in general business and economic conditions, in the global financial markets, or in the markets served by Alcoa, including automotive and commercial transportation, aerospace, building and construction, distribution, packaging, oil and gas, defense, and industrial gas turbines; (c) the impact of changes in foreign currency exchange rates on costs and results, particularly the Australian dollar, Brazilian real, Canadian dollar, and Euro; (d) increases in energy costs, including electricity, natural gas, and fuel oil, or the unavailability or interruption of energy supplies; (e) increases in the costs of other raw materials, including caustic soda or carbon products; (f) Alcoa’s inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of operations (including improving the position of its bauxite, refining and smelter system on the world cost curve), anticipated from its productivity improvement, cash sustainability and other initiatives; (g) Alcoa's inability to realize expected benefits from newly constructed, expanded or acquired facilities or from international joint ventures as planned and by targeted completion dates, including the joint venture in Saudi Arabia or the upstream operations in Brazil; (h) political, economic, and regulatory risks in the countries in which Alcoa operates or sells products, including unfavorable changes in laws and governmental policies; (i) the outcome of contingencies, including legal proceedings, government investigations, and environmental remediation; (j) the outcome of negotiations with, and the business or financial condition of, key customers, suppliers, and business partners; (k) changes in tax rates or benefits; and (l) the other risk factors summarized in Alcoa's Form 10-K for the year ended December 31, 2009, Forms 10-Q for the quarters ended March 31, 2010, June 30, 2010, and September 30, 2010, and other reports filed with the Securities and Exchange Commission (SEC). Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. 2 Alcoa Logo |
3 Content The Alcoa footprint Strategic objectives and markets Renewable energies Consumer electronics Substitution Transportation Leading to results Alcoa Logo |
4 The Alcoa footprint Alcoa Logo |
5 Alcoa at a Glance Number of Employees U.S. 23,000 Europe 19,000 Other Americas 10,000 Pacific 7,000 59,000 Founded in 1888 200+ locations 31 countries $21.0 billion revenue in 2010 59,000 employees Award-winning sustainability leadership 120 years of patents, including the original Aluminium process Alcoa Logo |
Alcoa Global Rolled Products: 18 Facilities on 5 Continents 6 North America Davenport Lancaster Tennessee Texarkana (idled) Warrick Europe Kitts Green (UK) Kofem (HU) Fusina (IT) Castelsarrasin (FR) Amorebieta (SP) Alicante (SP) Russia Samara Belaya Kalitva China Bohai Kunshan Australia Yennora Point Henry Latin America Itapissuma (BR) Global Rolled Products (GRP) Location Map and Summary Data Middle East Raz Az Zawr (SA) Ma’aden project location. First production in 2013 2010 Full Year Data 1.7m metric tons shipments $6.3B total revenue 18 locations on 5 continents 14,000 employees Alcoa Logo |
Alcoa Rolled Products European Footprint Overview Approx. 2,500 Employees 6 Locations 5 Countries 7 European Rolled Products Location Map and Summary Data Europe Amorebieta (SP) Fusina (I) Kitts Green (UK) Alicante (SP) Castelserrasin (F) Köfém (HU) Alcoa Logo |
8 North America 4.3mMT South America 0.8mMT Western Europe 3.5mMT China 4.6mMT Middle East 0.6mMT Rest of Asia 2.7mMT Source: Aug. 2010 CRU and Alcoa analysis Geographically positioned to capture Growth Rolled Products Consumption (2010E) and CAGR (2010E-2013E) +5% +3% +11% E. Europe, Russia & CIS 0.9mMT +8% +7% +5% +6% World 17.6mMT +7% Alcoa Logo |
9 Strategic objectives and markets Alcoa Logo |
Market Conditions in 2011 – All Aluminium Source: Alcoa analysis of 10 January 2011 10 Alcoa End Markets: Current Assessment of 2011 vs. 2010 Conditions Alcoa Logo th |
11 11 Alcoa European Mill Products serves a Variety of Markets European Mill Products Portfolio Regional Commodities Mould plates Marine Lithographic Sheet Commercial Transportation Brazing HVAC Defense Consumer Electronics Industrial Products Building & Construction Common Alloys Regional Specialties Industrial Consumers Renewable Energy Aerospace Alcoa Logo |
12 The Alcoa aluminium Proposition Renewable Energies: Increasing Efficiency through Innovations Solar thermal collectors, Aluminium used in absorbers, casings and frames. Between 3.1 kg/m² to 4.3 kg/m² (flat-plate). Today (2010) 210 million m² have been installed yearly. Photovoltaic systems, Aluminium used in construction/mounting structure (72%), followed by input to panel frames (22%), and Aluminium use in inverters (6%). Between 23 kg/kW and 59 kg/kW. Concentrated solar panels (CSP), 33 ktons of Aluminium are installed in CSP technologies. Market sales potential of Aluminium could be increased replacing glass and steel. Wind turbines, Aluminium usage from 0.01% up to about 2.5 % of the total material input. Increase thanks to offshore installations and replacing the coverings of the wind turbine nacelle and rotors with Aluminium. Source: EAA, ifeu -Institut für Energie und Umweltforschung Heidelberg GmbH Alcoa Logo |
13 Renewable Energies: Adding Value for the Customer Our Innovations add Value Strategy 2030E 2010E 2030E 2010E Aluminium Content in PV Aluminium Content in CSP Joint development initiatives with major stake holders Europe's market share of 12% in thermal collectors, 48% in windmills, 65% in photovoltaic Capture major opportunities for industry growth Grow revenue and profitability globally by targeting more differentiated offerings - products, surfaces, materials Leverage Alcoa solutions globally +400% +1300% Source: EAA, ifeu -Institut für Energieund Umweltforschung Heidelberg GmbH 13 Alcoa Logo |
Consumer Electronics: Making it “Cool” 14 Samsung 9 Series Notebook (anodized / brushed cover) Samsung 8000 Series LED TV (coated / brushed bezel) Advantages of Aluminum Aluminum-Intensive Devices CES 2011 Nokia N Series Smartphone (color anodized case) Panasonic Viera TV (brushed bezel) Alcoa Logo |
15 Consumer Electronics: Adding Value for the Customer Our innovations add value Strategy +30% 2013E 2010E +465% 2013E 2010E Aluminium Content in Laptops LCD TV Aluminium Back- Panel Growth World-class customer base Market is moving to Aluminium Alcoa differentiated solutions Targeting revenue growth of approx. 40% CAGR 2010-2013 Grow revenue and profitability globally by targeting more differentiated offerings—products, surfaces, materials Leverage Alcoa solutions globally Closer to our customers in Asia 15 Alcoa Logo |
Opportunities to replace Copper: Aluminium wins 16 Copper Prices Moving Up Low Voltage Electrical wiring & cable Transportation Cladding Other Sources: Bank of America / Merrill Lynch, International Copper Study Group and Alcoa Analysis 320% 19 mmt Refined Cu Aluminium Is The Natural Substitute •Heat sinks for electronics, PCB’s •Building façades •Bussed electrical center components •Wire harnesses •High Voltage Cables •Utility buss bars •Low voltage installations in cities, industrial or commercial buildings •Battery cables Aluminium Replacement Examples High Voltage $2,321 $9,740 12/31/03 12/31/10 •Alcoa is best positioned to supply differentiated products and proprietary alloys •Alcoa EMP is aiming to supply customized solutions for FRPs Alcoa Logo |
Automotive Aluminium: European cars best in class thanks to Aluminium FRPs Source: Alcoa Analysis, EAA Ducker research, KGP Leverage on our cooperation with automakers (NA, Europe, Japan) and supply differentiated product offering to Tier 1 and 2 customers Drive Aluminium conversion Aluminum provides 3x the fuel economy benefit of high strength steel European cars have more aluminium in the body, closures, chassis and suspension compared to North America and Japan Aluminium penetration per car in Europe: 135Kg in 2010 150Kg in 2015 +55% 2016E 2010 Europe Auto Sheet Volume 17 Drivers of the opportunity for increased Aluminium Strategy 2010 2016E 1,6million tons 2,2million tons Aluminium intensive design Components and Heatshields Chassis and Structures Source : EAA Drucker research Alcoa Logo |
Commercial Transportation: Aluminium use could more than double by 2020 Leverage our distinctive relationships and differentiated product offering Work with multiple customers proposing conversion to Aluminium components Drivers of Aluminium opportunity in Europe Strategy 2010 vs 2011 + > 12% Transport of 1 t additional payload is worth 4800 € per year Introduction of Euro VI (2012) will increase weigh of road tractors by 300Kg Trailers 18 Western Europe Tractor Application Al- penetration Average weight per part [kg] Fuel Tank 80% 45 HVAC 90% 40 Pressure Vessels 35% 8 Transmission Housing 40% 50 Bracket / Tread Plate 60% 10 Underrunning Protection 80% 30 Western Europe Trailer Type % of fleet Cube vs weigh out Average Al-content per trailer [kg] Tanker 5 W 1.800 Dumper/Tipper 15 W 2.000 Reefer 12 C 500 Box/Dry Van 6 C 350 Curtain Sider 38 C 300 Flatbed 18 C 250 Special/Others 7 C 300 Tractor 280 Tractors Components Source: EAA Aluminium consumption growth in CT Alcoa Logo |
Commercial Transportation: Success created through brand intimacy - Endur-Al Endur-Al is an advanced 5456 alloy in H34 temper Shate material for tipper bottoms and sides of exceptional hardness and abrasion resistance. 20-30% less weight compared to steel offer bigger payloads, fuel savings and lower operating costs. High yield strength offers good welding and cold bending performance. 19 Alcoa Logo |
Marine: Success created through brand intimacy - Nautic-Al Alcoa is a market leader for marine applications. Nautic-Al provides the exceptional strength, workability and corrosion resistance Can be welded by TIG, MIG, FSW and Laser Welding. Meets or exceeds the ASTM B928-04a standard for high magnesium Aluminium- alloy for marine environments. 20 Alcoa Logo |
21 Leading to results Alcoa Logo |
22 Alcoa European Mill Products Strategic Objectives Growing faster than the market Driving profitable and sustainable growth through innovation and product development Aluminize the market by substituting competitive materials Setting a new level of profitability for the business Alcoa Logo |
23 Alcoa: Great Past, Present & Future 2010 We reshaped the industry We innovated markets We invented the industry 1888 1900 Alcoa can’t wait Alcoa can’t wait for tomorrow for tomorrow Alcoa Logo |
24 Thank you! Alcoa Europe SA European Mill Products Avenue Giuseppe Motta 31-33 CH-1202 Geneva Switzerland T: +41 22 919 60 00 F: +41 22 919 61 00 W: www.alcoa.com/emp Alcoa Logo |