Exhibit 99.5 Slides of Presentation by Cynthia Carroll, Senior Vice President, Alcan Inc., President and Chief Executive Officer, Alcan Primary Metal.
Forward Looking Statements | |||
Statements made in the course of this presentation which describe the Company's intentions, expectations or predictions may be "forward-looking statements" within the meaning of securities laws. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty, and actual actions or results could differ materially. Reference should be made to the most recent Form 10-Q and Form 10-K for a summary of major risk factors. In addition, certain non-GAAP measures are used which are reconciled to the comparable GAAP measures herein or on the Company’s website at www.alcan.com in the “Investors” section.
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© 2005 ALCAN INC. | Slide 2 |
Agenda | |||
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Primary Aluminum Growth Evolution | |||
Growth occurring in regions with available energy at competitive costs and mass market consumers | |||
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World Primary Aluminum Balance | |||
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World Primary Aluminum Balance | |||
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Primary Aluminum Growth | |||
China has been responsible for almost 50% of the growth in world primary | |||
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2004 Total Consumption by End-use China vs. Western World | |||
China’s aluminum consumption has been driven by growth in its overall economic activity and by higher penetration ratios in its main end-use markets | |||
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© 2005 ALCAN INC. | Slide 8 |
China Primary Production Growth | |||
Growth rate of primary metal production in China is slowing down | |||
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© 2005 ALCAN INC. | Slide 9 |
China Unwrought Aluminum Imports and Exports | |||
China imports are relatively stable but exports are dropping | |||
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© 2005 ALCAN INC. | Slide 10 |
Alcan Primary Metal | |||
Close to 50% of Alcan’s primary production is based on self-generated power | |||
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EHS Performance -Safety | |||
Safety results improving continuously | |||
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EHS Performance - Environment | |||
Successfully addressing GHG emissions while increasing production | |||
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Value-Added Products | |||
In 2005, APMG will have records sales in billet, small form and remeltingot | |||
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Cost Drivers and Key Challenges | |||
Primary aluminiumindustry must address several challenges | |||
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© 2005 ALCAN INC. | Slide 15 |
Competitive Position | |||
Close to 90% of Alcan’sproduction is based on self-generated power and long | |||
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© 2005 ALCAN INC. | Slide 16 |
Drivers for Value Creation | |||
Moving simultaneously on all value drivers, through our asset optimization initiatives | |||
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© 2005 ALCAN INC. | Slide 17 |
Continuous Improvement System | |||
CI deployment delivered substantial value across all Primary Metal Group sectors | |||
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Alcan’sSmelting Technology Unsurpassed Offer | |||
Alcan’sglobal leading edge smelting technology package is an unparalleled competitive advantage | |||
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© 2005 ALCAN INC. | Slide 19 |
Growth Through Strategic Initiatives | ||
New Strategic Model for Maximizing Value |
InitiativesCompleted AlouetteExpansion ■Smelting Technology: AP30 OthersInitiatives ■Closure of ArvidaSoderberg Ningxia JVInvestment ■Smelting Technology: GAMI -Prebake | Sohar JVProject, Oman ■Smelting Technology: AP35 ■Capacity: 330 kt/line ■Start-up year: Line 1-2008 and Line 2-2010 ■Alcan ownership: 20% of Line 1 and 60% of Line2 ■Power: Long-term dedicated gas-fired power plant CoegaJV Project, South Africa ■Smelting Technology: AP35
Actively pursuing brownfield expansion |
© 2005 ALCAN INC. | Slide 20 |
Competitive Position | |||
2009 target: 55% of production in first quartile; 80% in lower half | |||
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© 2005 ALCAN INC. | Slide 21 |
Summary | ||
Competitive Strengths | Key Priorities |
■APMG’s distinctive position due to significant self generated power | ■EHS - meet / exceed requirements |
■APMG’smarket leading position with its AP technology | ■Continuous Improvement full deployment |
■APMG’s world-class low-cost smelting operations with further AOS opportunities | ■Achievement of AOS and other operating initiatives |
■APMG’s diversified operational position both from a geographic and market standpoint | ■Full Economic Cost Reduction to improve APMG’s returns on major projects and maintain global leadership in technology sales |
■APMG’s growth through low-cost capital initiatives | ■Strong customer focus in line with VAP strategy |
■A balanced portfolio of R&D activities supporting current assets and developing future options | ■Growth through selective capital deployment |
■Technology leverage by selling technology licenses, equipment, and services | ■Business model in major projects that is aimed at maximizing value |
■Synergy and business opportunities resulting from Pechiney integration | |
■Discipline to apply Alcan Integrated Management Systems | |
© 2005 ALCAN INC. | Slide 22 |
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Primary Metal Group Global Presence | |||
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Innovation and Growth Platform | |||
APMG leads the most innovative strategic R&D program in the industry | |||
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APMG on the Cost Curve | |||
Alcan’scompetitive cost position is driven by favourable power contract and self-generated energy supply as well as efficient low-cost facilities | |||
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World Primary Aluminum Market | |||
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World Primary Aluminum Operating Rate | |||
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AlcanPrimary Metal Organization | ||
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