Exhibit 99.2 Presentation by Richard B. Evans, President and Chief Executive Officer of Alcan Inc.
April 27, 2006
Over the next 30 minutes, I would like to address three key subjects – and then conclude with a summary of "Why Alcan?"
Alcan was able to capitalize on these strong metal prices and growing end-use markets to meet or exceed all of our key financial targets – and to generate record earnings and operating cash flow in 2006.
Operating cash generation from continuing operations approximately doubled to a record of over $3 billion in 2006 – the best in Company history by a substantial margin, and well ahead of our targeted minimum of $2 billion.
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We believe that one key reason for this consistent strong performance has been the Alcan Integrated Management System – or AIMS – as we know it within Alcan.
- Alcan's overall score placed us within the top 10 of all 1,000 companies that participated
- We were ranked second overall out of the 1,000 companies for our community/environmental efforts
- and sixth for globalness out of the 1,000 companies, recognizing our international presence and capability.
In a follow-up issue of Fortune, Alcan also was among 10 "green giants" of the international business world, showcased in Fortune's first-ever "green issue".
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- Primary Metal is now led by Michel Jacques from Montreal;
Engineered Products is now led by Christel Bories from Paris;
Packaging is now led by Ilene Gordon – the newest Business Group President on our team from Paris;
And,
Jacynthe Côté continues to lead Bauxite and Alumina from Montreal.
As well – in the leadership of our corporate functions – we recently welcomed Corey Copeland, Senior Vice President, Investor and Corporate Relations, to the Executive Committee.
Two other members of the Committee, David McAusland, Executive Vice President, Corporate Development and Chief Legal Officer, and Jean-Christophe Deslarzes, Senior Vice President, Human Resources, have recently taken on additional responsibilities for Government Relations and EHS FIRST as well as Sustainability and Corporate Security, respectively.
Michael Hanley, Executive Vice President and Chief Financial Officer, rounds out the Executive Committee with me.
I am proud of this dynamic young leadership team - with an average age in their 40s - who have the experience, energy and capabilities required to drive the Alcan's vision forward in 2007 and well into the future.
Please join me in recognizing these members of our Executive Committee.
I would also like to take this opportunity to acknowledge the contributions of two of our former Executive Committee members who retired in the first quarter of 2007: Gaston Ouellet and Daniel Gagnier.
Gaston's distinguished 40-year career at Alcan centered on the
Human Resources function.
Appointed Vice President, HR, of Alcan Inc. in 1993, he subsequently worked with four different Chief Executive Officers and four chairmen of the Board of Directors' HR Committee.
He also was an active member of the executive team responsible for the successful integration of algroup and Pechiney.
Prior to retirement, Gaston served as President of Alcan France and as a Senior Vice President of Alcan Inc.
Dan Gagnier joined Alcan in 1994 as V ice President, Corporate Affairs.
His responsibilities were soon expanded to include environment, occupational health and safety issues on a worldwide basis.
Dan was named Senior Vice President, Corporate and External Affairs, in 2000.
He provided dynamic leadership to our communications, government relations, corporate security and EHS FIRST teams and was instrumental in positioning Alcan as a world leader in sustainability and stakeholder relations.
I am sure everyone here joins me in saluting these two exceptional individuals and wishing them the very best for the future.
Part II
I would now like to give you a brief update on emerging global market trends - in particular, the growing strength of the developing economies – and how Alcan is responding to the challenges and opportunities that they create.
The emerging economies of the so-called BRICS nations - Brazil, Russia, India, China, and South Africa - are the main drivers behind today's global growth and competitiveness.
Over the past quarter century, there has been a marked shift toward developing regions in terms of both aluminum supply and demand.
And by far, the key driver of that shift has been - at least up to now - China.
As you can see here, China's share of global aluminum production has increased from 2 percent back in 1980 to more than 28 percent in 2006 - a dramatic 14-fold increase - whereas the U.S. has declined from 30 percent to 7 percent and Europe from 22 percent to 12 percent over the same period.
A similar shift is evident on the demand side, where Chinese aluminum consumption has also grown dramatically.
Back in 1980, China accounted for only 4 percent of global aluminum consumption. Today, with 25 percent of the world consumption, China has recently surpassed the U.S. as the biggest consumer of aluminum.
While still significant at 22 percent, the U.S. is no longer the world's largest consumer of aluminum; China is. Moreover, global consumption is now much more equally balanced between China, the rest of Asia, Europe, and North America.
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- Building aggressively on Alcan's strength in Primary Metal by leveraging the competitive cost advantages of our technology and power position;
- Achieving physical balance and lower costs in Bauxite and Alumina; and
- Growing our Engineered Products and Packaging businesses profitably.
Construction of a 350-kt/y joint-venture smelter with dedicated power supply in Sohar, Oman, is on track and proceeding smoothly.
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Experts are now predicting that the next generation will face severe – even catastrophic – consequences from only a 2-degree centigrade increase in temperature.
This chart from the McKinsey Consulting Group shows the projected impacts if the planet's temperature were to increase between one and three degrees by 2080.
You may be surprised that the mortality impact of the often talked-about risk of coastal flooding may be minor compared to the much greater mortality impacts of disease and fresh water shortages.Thank you.
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