EX-99.1 2 dex991.htm ALERIS PRESENTATION DATED MAY 18,2006 Aleris Presentation dated May 18,2006
Annual Stockholders Meeting
May 18, 2006
Exhibit 99.1

2
Aleris
Safe Harbor
Aleris
Statements
contained
in
this
presentation
that
state
the
company’s
or
its
management’s
expectations
or
predictions
of
the
future
are
forward-looking
statements
intended
to
be
covered
by
the
safe
harbor
provisions
of
the
Securities
Act
of
1933
and
the
Securities
Exchange
Act
of
1934.
The
words
“believe,”
“expect,”
“should,”
“estimates,”
and
other
similar
expressions
identify
forward-looking
statements.
It
is
important
to
note
that
the
company’s
actual
results
could
differ
materially
from
those
projected
in
its
forward-looking
statements.
For
more
information
concerning
factors
that
could
cause
actual
results
to
differ
from
those
expressed
or
forecast,
see
its
annual
report
on
Form
10-K
and
its
quarterly
reports
on
Form
10-Q
filed
with
the
Securities
and
Exchange
Commission.

3
Aleris
Financial Goals
Double-digit EBITDA margins
ROCE levels in excess of WACC
Pursue accretive and strategic acquisitions
Generate strong cash flow
Deleverage
Consistent financial performance with cyclicality muted by ongoing
productivity improvements

4
Aleris
Safety Performance
Step-Change Improvement Continues
Step-Change Improvement Continues
6.4
5.6
1.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2004
2005
1Q06

5
Aleris
2005 Key Accomplishments
Achieved record earnings
Exceeded merger synergy and productivity expectations
Completed four acquisitions at very attractive multiples
S&P corporate credit rating upgraded
Surpassed $1B in market cap
Initiated massive cultural change
Great Progress; More to Do
Great Progress; More to Do

6
Aleris
2005 Financial Summary
(1) (2)
($M –
except EPS)
Outstanding Year!
Outstanding Year!
Pro Forma
2005
Sales
$2,245
$2,429
EBITDA
$84.4
$170.4
EBITDA excluding special items
$131.2
$230.8
Net Income
($22.7)
$74.3
EPS
($0.80)
$2.38
Adjusted EPS
(3)
$0.97
$3.94
2004
(3)
8.75% effective tax rate
(1)
See text on Slide 26 for information regarding our calculations, which are pro forma for the Commonwealth/IMCO merger.
(2)
See text on Slide 27 for information concerning our calculations excluding special items.

7
Aleris
2005 Key Accomplishments
Achieved record earnings
Exceeded merger synergy and productivity expectations
Completed four acquisitions at very attractive multiples
S&P corporate credit rating upgraded
Surpassed $1B in market cap
Initiated massive cultural change
Great Progress; More to Do
Great Progress; More to Do

8
Aleris
Merger Synergies/Productivity
(1)
($M)
Exceeding Expectations
Exceeding Expectations
$25
$35
$39
$50
$0
$10
$20
$30
$40
$50
$60
Original Target
    Revised Target: 
May '05
4Q05
Current Target
(1)
Annualized figures.

9
Aleris
2005 Key Accomplishments
Achieved record earnings
Exceeded merger synergy and productivity expectations
Completed four acquisitions at very attractive multiples
S&P corporate credit rating upgraded
Surpassed $1B in market cap
Initiated massive cultural change
Great Progress; More to Do
Great Progress; More to Do

10
Aleris
Acquisition Summary
($M)
Tomra
ALSCO
Ormet
Alumitech
Total
Base EBITDA
(1)
$5
$23
$30
$5
$63
Synergy Targets
2
14
0
3
19
Total
$7
$37
$30
$8
$82
Purchase Price
$19
$145
$100
(2)
$29
$293
Purchase Multiple
2.7X
3.9X
3.3X
3.7X
3.6X
Estimated Annual Impact
3.6X Net purchase multiple
Acquisitions highly accretive to EPS
Base EBITDA is not a GAAP measure and is not reconcilable to any
GAAP measure.  It is management’s
current estimate of the annual impact of these acquisitions to our EBITDA.
(1)
(2) 
Includes preliminary working capital adjustment
Attractive Purchase Multiples
Attractive Purchase Multiples

11
Aleris
2005 Key Accomplishments
Achieved record earnings
Exceeded merger synergy and productivity expectations
Completed four acquisitions at very attractive multiples
S&P corporate credit rating upgraded
Surpassed $1B in market cap
Initiated massive cultural change
Great Progress; More to Do
Great Progress; More to Do

12
Aleris
Net Debt to EBITDA Summary
(1) (2)
3.0
2.3
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2004
2005 (3)
(3)
Pro-forma for 2005 Acquisitions (Tomra, ALSCO, Ormet
and Alumitech)
(1)
See text on Slide 26 for information regarding our calculations, which are pro forma for the Commonwealth/IMCO merger.
(2)
See text on Slide 27 for information concerning our calculations excluding special items.

13
Aleris
2005 Key Accomplishments
Achieved record earnings
Exceeded merger synergy and productivity expectations
Completed four acquisitions at very attractive multiples
S&P corporate credit rating upgraded
Surpassed $1B in market cap
Initiated massive cultural change
Great Progress; More to Do
Great Progress; More to Do

14
Aleris
Historical Stock Price
(1)
ARS Stock Price
Symbol:
ARS
Exchange:
NYSE
52 Wk Range:
$17.76 - $52.50
Market Cap:
$1.5B
(1)
As of May 17, 2006
$-
$10
$20
$30
$40
$50
$60

15
Aleris
2005 Key Accomplishments
Achieved record earnings
Exceeded merger synergy and productivity expectations
Completed four acquisitions at very attractive multiples
S&P corporate credit rating upgraded
Surpassed $1B in market cap
Initiated massive cultural change
Great Progress; More to Do
Great Progress; More to Do

16
Aleris
Culture and Key Values
Sense of urgency/solve today’s problems today
Data driven; clearly defined measures
No bureaucracy
Relentless drive to be more productive in all we do
Unquestionable integrity
Global/International
Recognize great performance
Growth will not Change Aleris’s
Growth will not Change Aleris’s
Culture/Values
Culture/Values

17
Aleris
2006 Key Goals
Improve safety performance
Improve working capital efficiency
Achieve productivity and merger synergy targets
Successfully integrate 2005 acquisitions
Complete proposed Corus
transaction and begin integration
Evaluate additional strategic acquisitions
Numerous Opportunities to Excel
Numerous Opportunities to Excel

18
Aleris
Proposed Corus
Transaction Summary
Executed
non-binding
Letter
of
Intent
to
acquire
Corus’s
Aluminum
Rolled
Products
and
Extrusions
businesses
Revenues of approximately US $1.8 billion
Net cash purchase price of €700 million, excluding the assumption of
debt and certain other liabilities
Committed financing from Citigroup and Deutsche Bank
Intended closing in 3rd quarter 2006

19
Aleris
Corus
Strategic Rationale
Expands product breadth into high margin, value-added product lines
Significant research and development organization and intellectual property
Increases Aleris’s
end-use diversity
Unique production capabilities
Increases scope and scale of Aleris
Well regarded management team
Strong relationships with blue chip OEMs
Initial synergy opportunities estimated at $25 million
Expected to be accretive to EPS and cash flow in first full year

20
Aleris
Estimated Sales Mix
Aleris
Aleris With Corus
Aluminum and 2005
Acquisitions
Rolled
Products
Zinc
Aluminum
Recycling
North America
Rest of World
Europe
Rolled
Products
Zinc
Extrusions
Aluminum
Recycling
North America
Rest of World
Europe
Extend Global Reach, Expands Product Breadth
Extend Global Reach, Expands Product Breadth

21
Aleris
Sapulpa, OK
Bedford, IN
Wabash, IN
Chicago Hts, Il
Coldwater, MI
Saginaw, MI
Post Falls, ID
Goodyear, AZ
Rolled Products
Bedford, OH
Uhrichsville, OH
Ashville, OH
Richmond, VA
Lewisport, KY
Roxboro, NC
Terre Haute, IN
Beloit, WI
Raleigh, NC
Zinc
-
Coldwater, MI
-
Clarksville, TN
-
Millington, TN
-
Houston, TX (2)
-
Spokane, WA
Aleris
Following Proposed Corus
Acquisition
Magnesium
Delfzijl, The Netherlands
Töging, Germany
Corus
Sites
Toronto, Canada
Toronto, Canada
Cap-de-la-Madeleine,
Canada
Duffel, Belgium
Duffel, Belgium
Koblenz
Koblenz
Germany
Germany
Vogt, Germany
Vogt, Germany
Bitterfield, Germany,
Bonn, Germany
Bonn, Germany
Tianjin, China
Tianjin, China
, China
Aluminum Recycling
Cleveland, OH
Elyria, OH
Macedonia, OH
Rock Creek, OH
Uhrichsville, OH
Friendly, WV (2)
Morgantown, KY
Loudon, TN
Shelbyville, TN
Monterrey, Mexico
Pindamonhangaba, Brazil (2)
Swansea, UK
Delfzijl, The Netherlands
Grevenbroich, Germany
Töging, Germany
Deizisau, Germany

22
Aleris
1Q 2006 Financial Summary
(1) (2)
($M)
(3)
36.8% effective tax rate
Exceeded Unusually Strong 1Q 2005
Exceeded Unusually Strong 1Q 2005
2005
2006
Sales
$645.0
$847.5
EBITDA
$56.5
$74.7
EBITDA excluding special items
$68.5
$76.7
Net Income
$29.1
$28.2
EPS
$0.94
$0.89
Adjusted EPS
(3)
$1.29
$0.93
(1)
See text on Slide 26 for information regarding our calculations, which are pro forma for the Commonwealth/IMCO merger.
(2)
See text on Slide 27 for information concerning our calculations excluding special items.

23
Aleris
Adjusted Quarterly EPS
(1) (2)
Trend
$0.92
$0.65
$0.58
$0.58
$0.93
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
Est.
Range
(2)
36.8% effective tax rate
Gaining Momentum
Gaining Momentum
(1)
See text on Slide 27 for information concerning our calculations excluding special items.
$1.20 -
$1.25

24
Aleris
2006 Outlook
Sales
EBITDA
Continued favorable scrap spreads in Rolled Products
Moderate growth economic environment
Continue improvements in recycling operations
Initiated Six Sigma effort
Acquisitions add to bottom line
Complete Corus
acquisition
Expect Another Solid Year
Expect Another Solid Year

25
Aleris
Exciting Future
Strong Board of Directors
Acquisitions diversifying product offering/geographic presence
Exploring China opportunities
Strong cash flow providing new-found financial strength
Expanding recycling at several US sites
New Stuttgart, Germany recycling startup in 1Q06
Continued to grow via acquisitions

26
Aleris
The “Pro Forma”
results combine the operations of IMCO Recycling Inc. and Commonwealth
Industries, Inc. as of the beginning of each period presented, adjusted to exclude the results of
Commonwealth’s
discontinued
Alflex
division
and
inter-company
sales
and
to
include
the
change
to
the average cost method of accounting for inventory for the rolled products segment (formerly
Commonwealth), the incremental depreciation expense related to the write-up of the acquired fixed
assets
of
rolled
products
to
their
estimated
fair
value,
as
well
as
incremental
interest
expense
associated with the financing of the merger.
In this presentation, we refer to various non-GAAP financial measures including (i) EBITDA, (ii)
EBITDA excluding special items and (iii) adjusted earnings per share.  The methods used to
compute these measures are likely to differ from the methods used by other companies. These non-
GAAP
measures
have
limitations
as
analytical
tools
and
should
be
considered
in
addition
to,
not
in
isolation
or
as
a
substitute
for,
or
superior
to,
Aleris’s
measures
of
financial
performance
prepared
in accordance with GAAP. Investors are encouraged to review the tables reconciling the non-GAAP
financial measures to comparable GAAP amounts in our Press Releases announcing full-year 2005
results and our first quarter 2006 results dated March 16, and May 9 respectively.
Financial Information Reconciliation

27
Aleris
“EBITDA,”
as
used
in
this
presentation,
and
unless
otherwise
stated,
is
defined
as
net
income
before interest income and expense, taxes, depreciation and amortization and minority interests.
“EBITDA
excluding
special
items,”
as
used
in
this
presentation,
is
defined
as
EBITDA
excluding
restructuring
and
impairment
charges,
executive
severance
costs,
mark-to-market
FAS
133
metal
hedge unrealized gains and losses, and the non-cash cost of sales impact of the write-up of
inventory
and
other
items
through
purchase
accounting.
“Adjusted
earnings
per
share”
excludes
the
per-share impact of these items.
Management
uses
EBITDA
as
a
performance
metric
and
believes
this
measure
provides
additional
information
commonly
used
by
our
stockholders,
noteholders
and
lenders
with
respect
to
the
performance of our fundamental business activities, as well as our ability to meet our future debt
service, capital expenditures and working capital needs.  Management believes EBITDA excluding
special items and
adjusted earnings per share is useful to our stakeholders in understanding our
operating results and the ongoing performance of our underlying businesses without the impact of
these special items. Additionally, management uses EBITDA because the Company’s revolving
credit
agreement
and
indentures
for
its
outstanding
senior
notes
use
EBITDA
with
additional
adjustments to measure its compliance with covenants such as fixed charge coverage and debt
incurrence.
Financial Information Reconciliation cont.