EX-99.7 8 christel1.htm Prepared by E-Services - www.edgar2.com

 

 

Exhibit 99.7 Slides of Presentation by Christel Bories, Senior Vice President, Alcan Inc., President and Chief Executive Officer, Alcan Packaging.

 

 

 



 

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.

 

References to "markets" or "market shares" as used in this document do not necessarily reflect regulatory market definitions.

 

© 2005 ALCAN INC.

Slide 2

 



Agenda

 
 

Group and business overview

Market trends

Strategy summary

Operating priorities

Financial metrics

Summary

Appendices

 

© 2005 ALCAN INC.

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Alcan Packaging

 

A global leader

 

 

© 2005 ALCAN INC.

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Sales by Region

 

                 Global reach in all our segments

© 2005 ALCAN INC.

                       Slide 5



Competitive Landscape

 
 

N°8 overall, but N°2 in high value-added specialty packaging

The World’s Largest Packaging Companies (2004 figures)

 

Country

Packaging
Sales $bn

Principle Products
 1 Tetrapak Swe 9.2 Liquid Packaging & Packaging Machinery
 2  Smurfit Stone Container USA  8.3 Containerboard & Corrugated
 3  Amcor     Aus 8.1 PET Containers, Closures, Flexibles, Corrugated, Cartons, Metal Cans
 4  International Paper USA 7.4 Paperboard, Cartonboard, Folding Cartons
 5  Crown Cork & Seal USA 7.2 Metal Cans
 6  Toyo Seikan Jap 6.6 Metal Cans, and Plastics & Glass Containers
 7  Owens Illinois USA 6.3 Glass and Plastic Containers
 8  Alcan Packaging Can 6.1 Flexible Packaging, Rigid Plastics, Cartons, Glass Tubing
 9  Rexam UK 5.6 Metal Cans, Rigid Plastics
10 Ball USA 5.4 Metal Cans
11 Avery Dennison USA 5.3 Flexible Packaging and Labels
12 St Gobain Fra 4.6 Glass Containers
13 Weyerhaeuser USA 4.5 Containerboard, Packaging and Recycling
14 Sealed Air USA 3.8 Flexible Packaging and Protective Packaging
15 Jefferson Smurfit Ire 3.8 Containerboard, Packaging and Recycling
16 Pactiv USA 3.4 Flexible and Protective Packaging, Food Service
17 Alcoa USA 3.2 Consumer Products, Food Service, Closures, Flexible Packaging
18 Sonoco USA 3.2 Paper and Plastic Flexibles, Paperboard
19 Bemis USA 2.8 Flexible Packaging and Labels
20 Huhtamaki Fin
2.6
Rigid Thin-Walled Plastic & Paper, Molded Fiber and  Flexible Packaging
   

107.6                    

 

The world’s top 20 packaging companies represent less than 25% of the total supply

© 2005 ALCAN INC.

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Milestones

 

Leadership through major acquisitions

 

© 2005 ALCAN INC.

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Market Position

 

Leading Positions in Key Segments

 

© 2005 ALCAN INC.

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Market Participation

 

Focused on attractive markets where we can differentiate

© 2005 ALCAN INC.

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Market Participation

 

Trends have not changed but …are accelerating

 

The footprints of our largest customers are changing, as they are investing heavily
  in
emerging countries.

Globalization and consolidation of our customer base create pressure on both price
  and performance but also favor high quality suppliers.  

Consumer needs are changing with life cycles and demographics (aging population) in
  developed economies, leading to
more functionalities and enhancing packaging
  usefulness.

More demand for service innovation and supply chain integration

Regulatory requirements are increasing.

…and two new trends may continue

Softness in Western Europe consumer demand is creating a highly competitive
  environment,

Oil prices are likely to remain high, which will continue to drive higher resin prices

© 2005 ALCAN INC.

                       Slide 10



Market Growth

 

Our customers are growing fast in new geographies  



 Market Trends - Illustration

 

Consolidation … both on the customer and supplier side

© 2005 ALCAN INC.

Slide 12



Raw Material Impact

 

Plastic-based products impacted by increased oil prices

 

© 2005 ALCAN INC.

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Integration and Synergies

 

 

Integration

Full alignment on AIMS throughout the organization

High degree of integration in all functional areas

Synergy Realization

VAW Flexpak integration complete, with target synergies of $45M
  captured

Pechiney synergies on track,with savings expected to reach or 
  exceed target of $115M

4 Plants Closed

© 2005 ALCAN INC.

Slide 14



Strategy Summary

 
 

Operating Excellence as a foundation of our success
 

Rationalization of our portfolio
 

Focus on growing and attractive market segments


 

© 2005 ALCAN INC.

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Operating Excellence

 

Laying the foundation for future success

Deploying Alcan Integrated Management System

Best-in-class in EHS

Aggressive deployment of CI

VBM

Implementing World Class Purchasing

Changing Manufacturing Footprint

Fewer and larger operations, and more specialized by
  product and technology = Centers of Excellence

Part of the business in low cost areas

Aligning new operating models in line with customer needs

© 2005 ALCAN INC.

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 Operating Excellence - EHS

 

Significant improvement over the last 3 years

 

© 2005 ALCAN INC.

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 Operating Excellence - CI

 

Lean 6 sigma supported by manufacturing excellence basics to accelerate deployment and exchange of best practices

© 2005 ALCAN INC.

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Operating Excellence -  Procurement

 

                             Leveraging our scale and global reach

 

We develop strategic initiatives, such as:

Global sourcing

Low cost countries sourcing

Total value of ownership (TVO)

E-procurement

 

© 2005 ALCAN INC.

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Manufacturing Footprint

 

 

A strong base for low-cost export

 

© 2005 ALCAN INC.

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Manufacturing Footprint

 

Reinforcing our Western businesses

 

Moving some of them to low-cost countries, and growing our
  Eastern European and Mexico platforms.

Accelerating automation.

Reducing our number of plants.

Reinforcing service models and creating Centres of Excellence:

Food Flexible customer and market focused sites

Tobacco customer dedicated factories

Focused Pharma Centers:  USA, UK, Spain, Germany,  China

© 2005 ALCAN INC.

Slide 21

 



Manufacturing Footprint

 

Simplifying our business to be stronger and faster

 

© 2005 ALCAN INC.

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Portfolio Rationalization

 

Exiting Mature and Unprofitable Segments …  

 

© 2005 ALCAN INC.

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Growth

 

                     Focusing on growing, attractive market segments

© 2005 ALCAN INC.

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Growth – Portfolio Realignment

 

Extending our footprint in attractive segments and geographies

© 2005 ALCAN INC.

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Innovation Process

 

Driving profitable, sustainable organic growth

 

© 2005 ALCAN INC.

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    BGP Margin

 

Target 15% in 2009

 

 

© 2005 ALCAN INC.

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Summary

 

Winning in our markets through …

■  Excellent management systems providing a strong foundation:
    AIMS: EHS FIRST, CI, Maximizing Value & Procurement Excellence

  Optimized platforms capturing future growth:

  Balanced geographical footprint

  Excellent, top-tier portfolio of technology and know-how

  Customized service models

  Strong innovation process  

  Empowered people, working in flexible organizations, focused on
    delivering profitable growth

  Working in a sustainable way

  Focusing on what is most important:  our customers

© 2005 ALCAN INC.

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APPENDIX

 

 

 

 

 

 

 

© 2005 ALCAN INC.

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Alcan Packaging Locations

 

© 2005 ALCAN INC.

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Alcan Packaging Organization  

 

© 2005 ALCAN INC.

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Food Flexible
Worldwide No. 1

 

© 2005 ALCAN INC.

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Pharmaceutical
Worldwide No. 1

 

© 2005 ALCAN INC.

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Cosmetics & Personal Care
Worldwide No. 1

 

© 2005 ALCAN INC.

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Tobacco
Worldwide No. 2 –
Soon No. 1

 

© 2005 ALCAN INC.

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© 2005 ALCAN INC.

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