Exhibit 99.6 Slides of Presentation by Jacynthe Côté, Senior Vice President, Alcan Inc., President and Chief Executive Officer, Alcan Bauxite and Alumina.
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 |
Discussion Topics | |||
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© 2005 ALCAN INC. | Slide 3 |
Bauxite and Alumina Group Operations | |||
Global leader in bauxite mining, alumina refining, technology & trading | |||
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© 2005 ALCAN INC. | Slide 4 |
Operations | |||
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Strengths | |||
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Key Operational and Financial Data | |||
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© 2005 ALCAN INC. | Slide 7 |
EHS Performance | |||
Improving trend on environment, health and safety performance | |||
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© 2005 ALCAN INC. | Slide 8 |
CI and Operational Excellence | |||
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© 2005 ALCAN INC. | Slide 9 |
VBM –Asset Management Capabilities | |||
Strategic thrust: profitable growth through focus on advantaged assets | |||
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© 2005 ALCAN INC. | Slide 10 |
Bauxite | |||
10% of world bauxite production | |||
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© 2005 ALCAN INC. | Slide 11 |
Alumina | |||
9% of world alumina production | |||
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© 2005 ALCAN INC. | Slide 12 |
Alumina Market | |||
Spot market is a very small component of the total market | |||
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© 2005 ALCAN INC. | Slide 13 |
Alumina Balance | |||
Market balance still tight until 2006 with notable surplus starting in 2007 | |||
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© 2005 ALCAN INC. | Slide 14 |
AlcanBauxite and Alumina Balance |
Before G3 | After G3 | |
Balance of Bauxite Portfolio (Kt) | ||
Internal Production | 16,500 | 19,900 |
Internal Demand | 13,500 | 16,900 |
Internal Balance | 3,000 | 3,000 |
Balance of Alumina Portfolio (Kt) | ||
Internal Production | 5,200 | 7,000 |
Internal Demand | 6,700 | 6,700 |
Internal Balance | (1,500) | 300 |
© 2005 ALCAN INC. | Slide 15 |
Raw Material Price Volatility | |||
The alumina industry has been impacted by unprecedented price increases | |||
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© 2005 ALCAN INC. | Slide 16 |
Raw Material Price Volatility | |||
The alumina industry has been impacted by unprecedented price increases | |||
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© 2005 ALCAN INC. | Slide 17 |
Gove Expansion | |||
Expansion and gasification will reduce cash costs by 36 $/t | |||
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Gove Expansion | |||
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Gove Expansion | |||
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© 2005 ALCAN INC. | Slide 20 |
Gas to Gove | |||
PNG constitutes the best option for Goveto access natural gas | |||
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Cost Optimization | |||
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© 2005 ALCAN INC. | Slide 22 |
Long Term Market Balance | |||
Long-term demand will justify numerous greenfieldprojects | |||
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© 2005 ALCAN INC. | Slide 23 |
Other Growth Opportunities |
Project | Description and Benefits |
Alumar | > Expansion of 2.1 Mt from existing capacity of 1.4 Mt. |
> Expected investment decision by Q4 2005 | |
Utkal | > Greenfield project of 1.5Mt in province of Orissa, India |
> Alcan owns 45% with Hindalco holding the other 55% | |
> Investment decision expected by mid-2006 | |
Guinea | > Greenfield project of 1.5Mt in Guinea > |
> Alcan owns 50% with Alcoa holding the other 50% | |
> Expect to be in a position to make a decision on DFS by the end of 2005 |
© 2005 ALCAN INC. | Slide 24 |
Technology Value | |||
World leader in all Bayer process technology areas | |||
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© 2005 ALCAN INC. | Slide 25 |
Technical and Operational Support | ||
All but five greenfieldprojects (larger than 300 Kt) since 1980 |
With Alcan Technology | With Other Technology | |
San Ciprian, Spain | 1980 | Alumar, Brazil |
Nikolaïev, Ukraine | 1982 | Worsley, Australia |
Bauxilum, Venezuela | 1983 | Wagerup, Australia |
Aughinish, Ireland | 1983 | CAR, Australia |
Damadjodi, India | 1987 | Zhengzhou, China |
Pingguo, China | 1994 | |
Shanxi, China | 1994 | |
Alunorte, Brazil | 1995 |
© 2005 ALCAN INC. | Slide 26 |
Sustainability | |||
Committed to sustainable economic, environmental and social value creation | |||
■Strong governance and corporate responsibility embedded in our strategy and culture ■Sustainable development for all stakeholders part of our culture
■In daily management, sustainability is the integration of environmental | |||
© 2005 ALCAN INC. | Slide 27 |
Operating and Strategic Agenda | |||
2009 target: 50% of production in first quartile; 75% lower half | |||
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Summary and Key Priorities | |||
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