EX-99.6 7 jacynthe1.htm Prepared by E-Services - www.edgar2.com

 

 

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.

 

 

 
© 2005 ALCAN INC.

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Discussion Topics

 
 

■Profile

■AIMS

■Business Environment

■Strategic Agenda

■Summary

 

 
© 2005 ALCAN INC.

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Bauxite and Alumina Group Operations

 

Global leader in bauxite mining, alumina refining, technology & trading

 

 
© 2005 ALCAN INC.

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Operations

 
 
© 2005 ALCAN INC.

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Strengths

 
 

■  Market leader with global reach

■  Significant growth opportunities

■  Superior Technology

■  Excellent R&D capabilities

■  Trading capabilities

■  Commited to Sustainability  

■  AIMS –Proven Execution   

 

 
© 2005 ALCAN INC.

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Key Operational and Financial Data

 
 

 
© 2005 ALCAN INC.

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     EHS Performance

 

Improving trend on environment, health and safety performance
 

 
© 2005 ALCAN INC.

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CI and Operational Excellence

 
 

■  CI is an enabler to maintain and improve our competitive position

■  A series of measures lead to operational excellence

■  Our Lean Six Sigma framework

■  Cross-fertilization of best practices

■  Integration synergies

■  Procurement strategy

■  Combined, those measures create close to $50M in sustainable
    BGP in 2005

 
© 2005 ALCAN INC.

Slide 9


  VBM – Asset Management Capabilities

 

Strategic thrust: profitable growth through focus on advantaged assets

 

 
© 2005 ALCAN INC.

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Bauxite

 

10% of world bauxite production

 

 
© 2005 ALCAN INC.

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    Alumina

 

                                  9% of world alumina production

 

 
© 2005 ALCAN INC.

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     Alumina Market

 

Spot market is a very small component of the total market

 

 
© 2005 ALCAN INC.

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     Alumina Balance

 

Market balance still tight until 2006 with notable surplus starting in 2007

 
© 2005 ALCAN INC.

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Alcan Bauxite 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

 

 
© 2005 ALCAN INC.

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Raw Material Price Volatility

 

The alumina industry has been impacted by unprecedented price increases

 

 
© 2005 ALCAN INC.

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  Gove Expansion

 

Expansion and gasification will reduce cash costs by 36 $/t

 
© 2005 ALCAN INC.

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Gove Expansion

 
 

© 2005 ALCAN INC.

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Gove Expansion

 
 

 
© 2005 ALCAN INC.

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Gas to Gove

 

PNG constitutes the best option for Gove to access natural gas

 

 
© 2005 ALCAN INC.

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Cost Optimization

 
 

■Gardanne and Vaudreuil are two high-cost facilities

■Gardanne

■Gradually increased specialty alumina production    

■Value-added products can substantially improve profitability

■Vaudreuil

■Process changes and cost cutting measures are negotiated
  with the employees and union

■All options to improve value are being considered
© 2005 ALCAN INC.

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Long Term Market Balance

 

Long-term demand will justify numerous greenfield projects
 

 
© 2005 ALCAN INC.

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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

■Only Alcan offers complete technology package for all sectors of the
  Bayer circuit

■Testing of bauxite in pilot plant

■Technology to process every type of bauxite

■Specific technologies optimised for local conditions

■Complete basic engineering package

■Detailed engineering

■Training of client in Alcan’s plants

■Support during and after commissioning

■Essential to preserve and improve competitive position, this know-how
  also allows participation in capital projects as technical expert

© 2005 ALCAN INC.

Slide 25


Technical and Operational Support
Greenfield Refineries

 

 

All but five greenfield projects (larger than 300 Kt) since 1980
were built with Alcan technology 

 

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.

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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

■Community involvement

■Health programs (AIDS and malaria) in Ghana
■School and training center for aboriginals in Australia

■Emissions

■Conversion of Gove to gas

■Energy Efficiency

■Improvement of liquor productivity (enhancement of energy consumption)

■Environment

■Marine health monitoring program in conjunction with university searchers
■Commercial applications for residues

■In daily management, sustainability is the integration of environmental
  stewardship, economic performance and the well-being of  our communities
© 2005 ALCAN INC.

Slide 27


   Operating and Strategic Agenda

 

    2009 target: 50% of production in first quartile; 75% lower half
 

 
© 2005 ALCAN INC.

Slide 28

 


Summary and Key Priorities

 
 
 

■AIMS deployment, leading to operational excellence

■Successful construction and start-up of Gove expansion

■Convert Gove to natural  gas

■Eliminate value destruction in high-cost facilities

■Pursue commercial strategy based on a proprietary market perspective
  for our asset-based portfolio and well controlled trading operations

■Leverage our sustainability & technology know-how, and pursue growth  opportunities of large-scale cost advantaged assets
© 2005 ALCAN INC.

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© 2005 ALCAN INC.

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