The Aluminum Value Chain

The Aluminum Value Chain

Unlocking Aluminum’s value and building a sustainable future

Unlocking Aluminum’s value and building a sustainable future

Bernt

Reitan

Executive Vice President, Alcoa

President, Alcoa Primary Products

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Filed by Alcoa Inc.

Pursuant to Rule 425

Under the Securities Act of 1933

Registration Statement:

333-142669

Subject Company: Alcan Inc.

Commission File No.:

001-03677

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Forward-Looking Statements

Certain statements

and

assumptions

in

this

communication

contain

or

are

based

on

"forward-looking“

information

and

involve

risks

and

uncertainties.

Forward-looking statements may be identified by their use of words like "anticipates," "believes," "estimates," "expects," "hopes," "targets," "should,"

"will," "will likely result," "forecast," "outlook," "projects" or other words of similar meaning. Such forward-looking information includes, without limitation,

the statements as to the impact of the proposed acquisition on revenues, costs and earnings.  Such forward looking statements are subject to

numerous assumptions,

uncertainties

and

risks,

many

of

which

are

outside

of

Alcoa's

control.

Accordingly,

actual

results

and

developments

are

likely

to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this communication. These risks

and uncertainties include Alcoa's ability to successfully integrate the operations of Alcan; the outcome of contingencies including litigation,

environmental remediation, divestitures of businesses, and anticipated costs of capital investments; general business and economic conditions;

interest rates; the supply and demand for, deliveries of, and the prices and price volatility of primary aluminum, fabricated aluminum, and alumina

produced by Alcoa and Alcan; the timing of the receipt of regulatory and governmental approvals necessary to complete the acquisition of Alcan and

any undertakings agreed to in connection with the receipt of such regulatory and governmental approvals; the timing of receipt of regulatory and

governmental approvals for Alcoa's and Alcan's development projects and other operations; the availability of financing to refinance indebtedness

incurred in

connection

with

the

acquisition

of

Alcan

on

reasonable

terms;

the

availability

of

financing

for

Alcoa's

and

Alcan's

development

projects

on

reasonable terms;

Alcoa's

and

Alcan's

respective

costs

of

production

and

their

respective

production

and

productivity

levels,

as

well

as

those

of

their

competitors; energy

costs;

Alcoa's

and

Alcan's

ability

to

secure

adequate

transportation

for

their

respective

products,

to

procure

mining

equipment

and

operating supplies in sufficient quantities and on a timely basis, and to attract and retain skilled staff; the impact of changes in foreign currency

exchange rates on Alcoa's and Alcan's costs and results, particularly the Canadian dollar, Euro, and Australian dollar, may affect profitability as some

important raw

materials

are

purchased

in

other

currencies,

while

products

generally

are

sold

in

U.S.

dollars;

engineering

and

construction

timetables

and capital costs for Alcoa‘s and Alcan's development and expansion projects; market competition; tax benefits and tax rates; the outcome of

negotiations with

key

customers;

the

resolution

of

environmental

and

other

proceedings

or

disputes;

and

Alcoa's

and

Alcan's

ongoing

relations

with

their respective employees and with their respective business partners and joint venturers.

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Forward-Looking Statements

Additional risks, uncertainties and other factors affecting forward looking statements include, but are not limited to, the following:

•Alcoa is, and the combined company will be, subject to cyclical fluctuations in London Metal Exchange primary aluminum prices,

economic and business conditions generally, and aluminum end-use markets;

•Alcoa's operations consume, and the combined company's operations will consume, substantial amounts of energy, and profitability

may decline if energy costs rise or if energy supplies are interrupted;

•The profitability of Alcoa and/or the combined company could be adversely affected by increases in the cost of raw materials;

•Union disputes and other employee relations issues could adversely affect Alcoa's and/or the combined company's financial results;

•Alcoa and/or the combined company may not be able to successfully implement its growth strategy;

•Alcoa's operations are, and the combined company's operations will be, exposed to business and operational risks, changes in

conditions and events beyond its control in the countries in which it operates;

•Alcoa is, and the combined company will be, exposed to fluctuations in foreign currency exchange rates and interest rates, as well as

inflation and other economic factors in the countries in which it operates;

•Alcoa faces, and the combined company will face, significant price competition from other aluminum producers and end-use markets for

Alcoa products that are highly competitive;

•Alcoa and/or

the

combined

company

could

be

adversely

affected

by

changes

in

the

business

or

financial

condition

of

a

significant

customer or customers;

•Alcoa and/or the combined company may not be able to successfully implement its productivity and cost-reduction initiatives;

•Alcoa and/or the combined company may not be able to successfully develop and implement new technology initiatives;

•Alcoa is, and the combined company will be, subject to a broad range of environmental laws and regulations in the jurisdictions in which

it operates and may be exposed to substantial costs and liabilities associated with such laws;

•Alcoa’s smelting operations are expected to be affected by various regulations concerning greenhouse gas emissions;

•Alcoa and the combined company may be exposed to significant legal proceedings, investigations or changes in law; and

•Unexpected events may increase Alcoa's and/or the combined company's cost of doing business or disrupt Alcoa's and/or the combined

company's operations.

See also the risk factors disclosed in Alcoa's Annual Report on Form 10-K for the fiscal year ended December 31, 2006. Readers are

cautioned not to put undue reliance on forward-looking statements. Alcoa disclaims any intent or obligation to update these forward-

looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law.

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Additional information

WHERE TO FIND ADDITIONAL INFORMATION

•

In connection with the offer by Alcoa to purchase all of the issued and outstanding common

shares of Alcan (the “Offer”), Alcoa has filed with the Securities and Exchange Commission

(the “SEC”) a registration statement on Form S-4 (the “Registration Statement”), which

contains a prospectus relating to the Offer (the “Prospectus”), and a tender offer statement

on Schedule TO (the “Schedule TO”).  This communication is not a substitute for the

Prospectus, the Registration Statement and the Schedule TO.  ALCAN SHAREHOLDERS

AND OTHER INTERESTED PARTIES ARE URGED TO READ THESE DOCUMENTS, ALL

OTHER APPLICABLE DOCUMENTS AND ANY AMENDMENTS OR SUPPLEMENTS TO

ANY SUCH DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE EACH

CONTAINS OR WILL CONTAIN IMPORTANT INFORMATION ABOUT ALCOA, ALCAN

AND THE OFFER.  Materials filed with SEC are available electronically without charge at

the SEC’s

website, www.sec.gov. Materials filed with the Canadian securities regulatory

authorities ("CSRA") are available electronically without charge

at www.sedar.com. 

Materials filed with the SEC or the CSRA may also be obtained without charge at Alcoa’s

website, www.alcoa.com, or by directing a request to Alcoa’s investor relations department

at (212) 836-2674.  In addition, Alcan shareholders may obtain free copies of

such

materials filed with the SEC or the CSRA by directing a written or oral request to the

Information Agent for the Offer, MacKenzie

Partners, Inc., toll-free at (800) 322-2885

(English) or (888) 405-1217 (French).  While the Offer is being made to all holders of Alcan

Common Shares, this communication does not constitute an offer or a solicitation in any

jurisdiction in which such offer or solicitation is unlawful.  The Offer is not being made in, nor

will deposits be accepted in, any jurisdiction in which the making or acceptance thereof

would not be in compliance with the laws of such jurisdiction.  However, Alcoa may, in its

sole discretion, take such action as they may deem necessary to extend the Offer in any

such jurisdiction.

The Aluminum Value Chain

Unlocking

Unlocking

Aluminum’s value and

Aluminum’s value and

building a sustainable

building a sustainable

future

future

Alcoa at a glance

Alcoa on the leading

edge

Megatrends that

drive our business

Unlocking

aluminum’s value

Industry landscape

Agenda

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Alcoa at a glance

•

Leading aluminum products company

–

Primary aluminum and alumina

–

Flat-rolled aluminum and hard-alloy extrusions

•

Active in all major segments of the industry:

–

Technology

–

Smelting

–

Mining

–

Fabricating

–

Refining

–

Recycling

Products serving the aerospace, automotive, commercial

transportation, packaging, building and construction, and

industrial markets.

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Financial performance -

2006

9%

20%

27%

14%

18%

11%

Engineered

Solutions

Alumina

Primary Metals

Flat Rolled

Extruded & End

Packaging &

Consumer

2006 3

rd

Party Revenue by Segment

2006 ATOI by Segment

30%

50%

7%

2%

9%

3%

Engineered

Solutions

Alumina

Flat Rolled

Primary Metals

Packaging &

Consumer

Extruded & End

$30.4 Billion -

highest revenue and income in 

Alcoa history

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44 Countries

123,000 Employees

2006 Sales

by Geography

Pacific

ROW

57%

13%

Europe

24%

6%

U.S.

Global organization

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Alcoa Primary Operations

Refinery

Smelter

Stand-alone bauxite mine

Refinery

Smelter

Stand-alone bauxite mine

North America:

Smelting   2.8M tonnes

Refining    2.3M tonnes

Latin America:

Smelting   0.3M tonnes

Refining    2.6M tonnes

Europe:

Smelting   0.6M tonnes

Refining    1.3M tonnes

Australia:

Smelting   0.4M tonnes

Refining    7.8M tonnes

Refinery

Smelter

Stand-alone bauxite mine

Refinery

Smelter

Stand-alone bauxite mine

North America:

Smelting   2.8M tonnes

Refining    2.3M tonnes

Latin America:

Smelting   0.3M tonnes

Refining    2.6M tonnes

Europe:

Smelting   0.6M tonnes

Refining    1.3M tonnes

Australia:

Smelting   0.4M tonnes

Refining    7.8M tonnes

Iceland

Smelting 0.3M tonnes

Key Facts (2006)

•

25 Smelters on 5

continents

•

9 refineries on 4

continents

•

3.6 mmt

Aluminum

Production --

11% of

world output

•

15.1 mmt

Alumina

production –

23% of

world output

•

$8.9 billion in 3

rd

Party

Revenue

•

$15 billion total Revenue

incl intercompany sales

to down-streams

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A values-driven company

•

Integrity

•

Environment, Health and Safety

•

Customer

•

Excellence

•

People

•

Profitability

•

Accountability

Living the

Living the

Values

Values

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Committed to sustainability

2020

Strategic

framework

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Sustainability goals

•

From base year 2000:

–

60% reduction sulfur dioxide by 2010

–

50% reduction volatile organic compounds by 2008

–

30% reduction nitrogen oxides by 2007

–

80% reduction mercury emissions by 2008

–

50% reduction landfill waste by 2007

–

Reduce energy intensity 10% by 2010

–

60% reduction in process water use and discharge by 2009

•

From base year 1990:

–

25% reduction in greenhouse gas emissions by 2010.

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Land stewardship

•

Reclamation

•

Conservation/biodiversity

•

Management

Alcoa-sponsored

environmental parks,

Brazil

Award-winning forest

restoration, Australia

Great Smoky Mountains

conservation agreement,

USA

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Safety leader

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

U.S Industry Average

Alcoa

•

Alcoa facilities worldwide are 20 times safer than U.S average

•

More than 82% of Alcoa facilities had zero lost workdays in 2006

Lost workdays

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Community support

Commitment

to

Communities

-

2006

•

Alcoa and Alcoa Foundation

investments totaled $42.3 million

•

More than 500,000 volunteer work

hours, equivalent of 55 years of

work

•

Launched $8.6 million Conservation 

and Sustainability Fellowship

research program

Employee volunteers in Australia

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United States Climate Action

Partnership

•

Alcoa a founding member

•

10 US Corporations and 4 NGOs

•

Slow, stop and reverse climate change

•

A call for action to the US Government

•

Founding principles

–

Account for the global dimensions of climate change

–

Recognize the importance of technology

–

Be environmentally effective

–

Create economic opportunity and advantage

–

Be fair to sectors disproportionately impacted

–

Recognize and encourage early action

•

“I am convinced that we can build a global plan of action

on climate change in ways that create more economic

opportunities than risks.”

Alain Belda

NGO Members

•

Environmental Defense

•

Natural Resources Defense

Council

•

Pew Center on Global

Climate Change

•

World Resources Institute

Industry Members

•

Alcoa

•

BP America

•

Caterpillar

•

Duke Energy

•

DuPont

•

General Electric

•

PG&E

•

PNM Resources

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Recognition

•

Member Dow Jones Sustainability Indexes

•

Most Sustainable Corporation / World

Economic Forum in Davos

•

Top Green Company by BusinessWeek

magazine and the Climate Group for GHG

reductions

•

$8.6 million Conservation & Sustainability

Research Fellows Program

•

Named by CERES as a leader in climate

change and governance

•

UNEP Global 500 Role of Honour

•

World Environment Center Gold Medal

Creating value:

Creating value:

Alcoa at the leading

Alcoa at the leading

edge of sustainable

edge of sustainable

production

production

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Sustainable aluminum production

•

Recycled content

•

Sustainable energy sources

•

Energy conservation

•

GHG control achievements

•

Smelting Technology

–

Anode effect management

–

Breakthrough smelting

technologies

•

GHG Neutral by 2020

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Leader in recycled content

Scrap recycling center, Hungary

30% growth in recycled content  --

2004-2006

0

200

400

600

800

1000

2004

2005

2006

Currently Alcoa uses nearly 1 million

mt/year of recycled aluminum –

25%

of primary production

mt

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Anode effect management

•

Operational excellence in

smelting process

•

Consistent, stable reaction

•

26% reduction in CO

2

emissions 5 years ahead of

target

•

75% reduction in PFC

emissions since 1990

•

Concurrent energy savings

•

Best practices shared across

the Alcoa system

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Progress -

greenhouse gas

reductions

(Direct GHG Emissions from Managed Facilities)

0%

5%

10%

15%

20%

25%

30%

Alcoa primary aluminum

production nearly doubled from

1.9 mmt/y

to 3.6 mmt/y

during

this period.

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Leader in sustainable energy

•

More than a century of hydropower

expertise

–

new technology improving yield of

existing projects –

LIHI certification

•

Cogeneration at Wagerup

and Pinjarra

•

Biofuels

for plant equipment

•

Green Power –

renewable energy

contracts

•

Geothermal

–

Under consideration for proposed

second smelter in  Iceland

Calderwood

dam, Tennessee

Pinjarra

cogeneration plant

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Cogeneration in Australia

•

Pinjarra

and Wagerup

refineries, Western Australia

•

First of four 140 MW plants completed in 06 at Pinjarra

•

Potential 1.6 million tons/year GHG savings for both

plants

•

240 tonnes/hour of steam for refineries, electricity for

municipal grid

•

Energy efficiency is 75% compared to 30-35% for 

coal-fired generation; 50% for gas turbine

•

Electricity greenhouse gas saved: 450,000 tons/year

•

Steam greenhouse gas saved: 135,000 tons/year

•

Alcoa is Australia’s largest cogeneration customer

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Energy conservation

•

US DOE energy reduction program

•

Nitrogen oxide emissions reduced by 770 mtpy

•

Sulphur

Dioxide emissions reduced by 1600 mtpy

•

Carbon Dioxide emission reduced by 420,000 mtpy

•

Operating costs cut by $15 million

•

Best practices shared worldwide

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Carbon capture

•

Waste CO

2

from neighboring

facility used to reduce alkalinity of

bauxite residue

•

Captures 70,000 tonnes/year of

CO

2

•

Potential 300,000 tonnes/year in

Australia

•

Researching technology for

extracting CO

2

from Alcoa’s flue

gases

Carbon capture plant, Kwinana, Western Australia

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Breakthrough smelting

technologies

Post-Carbon technology

•

Possible next-generation

process

•

Replaces most CO

2

emissions

with O

2

emissions

•

Reduces operating costs

•

Eliminates all sulfur and carbon

emissions from anodes

Carbothermic

process

•

Electrolysis-free process

•

Significant reduction in energy

Alcoa Technical Center

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Sustainable growth in Iceland

Alcoa Fjardaal

•

344,000 mtpy

capacity

•

First metal April 2007

•

Compliant with

Iceland’s stringent

environmental

requirements

North Iceland

•

Possible second

smelter site in Bakki

•

Phase 2 feasibility

study

•

Geothermal power

under consideration

First shipment of alumina, Alcoa Fjardaal, Iceland –

28 March 2007

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Fjardaal

on line –

April 07

Bath transfer

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0

1

2

3

4

5

6

7

Iceland: a leader in

sustainable power

Hydro

Geothermal

Estimated per capita CO

2

emissions from electricity

production in selected countries

Source: Orkuveita Reykjavikur

Megatrends

Megatrends

that drive our

that drive our

business

business

•

Global urbanization

•

Climate change

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•

Rapid growth of cities presents significant opportunities for physical

infrastructure utilizing products that we currently make

•

New opportunities in areas like rail cars, lightweight bridge decks, non

corrosive signage, portable power sources, integrated B&C solutions

1

2

3

4

•

Lightweight a key enabler of rapid migration –

fast ferries, transport

planes, containers, payload increases of trucks

•

Lead the development of  technologies and solutions for

security products (e.g. lightweight armor, blast proof containers)

•

Flexible solar energy panels using aluminum substrates as integrated

building and construction products

•

Enhance grid efficiencies by supplying co-extruded, high conductivity

Al-Cu wire

•

Promote the use of aluminum in multi-fuel vehicles

•

Increased  aluminum content in thermal management

solutions driven by miniaturization

Demographics

Globalization

Natural Resources

& Environment

Science and

Technology Advances

Global Megatrends present

opportunities for Alcoa

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Building for the future

Aluminum consumption

World Aluminum Consumption (MT)

2005: 32M

2020E: 60.6M

+0.4

+1.1

+0.9

+0.5

+7.1

+0.5

Latin America

+4.1

Western Europe

+2.4

E. Europe, CIS & Other

+4.4

North America

+17.2

Asia

Source:  CRU; McKinsey & Co

1998: 22M

7.2

6.7

1.7

5.6

0.8

14.3

7.2

2.6

6.7

1.2

31.5

11.6

5.0

10.8

1.7

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Climate change

•

A Megatrend

and a global issue

–

The global dialog has moved

from debate to action

–

Global consumption growth is

raising the stakes

–

Aluminum has tremendous

value in addressing the

challenge

–

Aluminum is part of the

solution to climate change

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Climate change: beyond debate

•

10 years ago, UN’s

Kyoto Protocol moved the issue

to the global stage. It’s currently endorsed by 169

governments

•

In the US, industries and NGOs are working together

to provide proactive and effective voluntary

strategies

–

US Climate Action Partnership

•

Alcoa founding member

–

Global

Roundtable

on

Climate

Change

–

Columbia

University

•

EU’s

new 2020 Energy Policy will reduce CO2

emissions by 20% by 2020

•

Last year’s ASEM 6 Summit pledged

Asian/European collaboration on addressing climate

change

•

In Australia, Kyoto and climate change are a key

factor in the upcoming election

Alcoa began

addressing climate

change in the late

90s

Aluminum: part

Aluminum: part

of solution to

of solution to

climate change

climate change

•

Recyclabity

•

Lasting value

•

Automotive lightweighting

•

Aerospace growth

•

Greenhouse gas neutral

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Part of the solution: Recycling

•

One of the most recyclable, reusable

materials on earth

•

Less than 1% melt loss

•

Saves 95% of mine-to-ingot energy of

primary production

•

Saves 95% of mine-to-ingot GHG

emissions

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Part of the solution: Lasting value

•

73% of all aluminum

ever

produced is still in use today

•

Since 1888, about 800

million tonnes of aluminium

have been produced.

•

About 580 million tonnes of

this amount is still in

productive use.

•

Recycling the metal

currently stored in use

would equal 15 years’

primary aluminium output.

580

800

Global Metal Pool (Inventory) (tonnes)

Total Metal Produced (tonnes)

Source: IAI

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Part of the solution:

Aluminum lifecycle

Source: IAI

Total Products

Stored in Use

Since 1888

586.0

Finished

Products

40.4

Oxidized in

Applications

0.8

Fabricated and

Finished

Products

67.4

Traded

New

Scrap

8.6

Traded

New

Scrap

1.4

Ingots 68.8

Metal Losses 1.4

Not Recycled in 2006 3.5

Under Investigation 3.7

Old

Scrap

7.8

Primary

Aluminium used

34.0

Remelted / Recycled

34.8

Net Addition 2006

24.4

Fabricator

Scrap

18.4

Internal

Values in million of metric tons

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Part of the solution:

Automotive lightweighting

•

Aluminum is the most sustainable

automotive material in the world

•

Aluminum is infinitely recyclable.

•

95% of the aluminum from a

scrapped vehicle is recycled at the

end of the vehicle’s useful life

•

The amount of aluminum used in

automobiles has doubled over the

last decade

Audi spaceframe

Source: IAI

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Part of the solution:

Automotive lightweighting

•

Aluminum use in transportation

saves 250 million tons of CO

2

emissions per year

•

Using aluminum to replace

steel saves 22.9 kg of CO

2

per

kg of aluminum

•

Aluminum adds performance,

safety and style without adding

weight

Body and chassis

for GM/Chevrolet

Sequel hydrogen-

powered vehicle

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Part of the solution: Aerospace

•

The world fleet

will more than

double in the

next two

decades

•

Alcoa is the

leading supplier

and innovator in

aerospace

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CRU’s

12

th

World Aluminium

Conference --

2007

Part of the solution:

Growth in all areas

•

Next-generation aircraft will have

significant high-value aluminum

content

–

A380: 1000 tonnes

of plate

–

Boeing 787: composite design

uses advanced, high-value

aluminum alloys

•

Current generation will continue

to use aluminum through 2015

–

737, 777, A320, A330, A340

•

Growth in new aircraft categories

(VLJ/Very Light Jets) will be

strong

Boeing 747-8

Eclipse 500 4-passenger jet

Airbus A380

46

CRU’s

12

th

World Aluminium

Conference --

2007

Part of the solution:

Aerospace value drivers

•

Historic durability, inspectability

•

Alloy and product form flexibility

•

Aluminum’s weight/strength ratio

creates new opportunities for

sustainability:

–

Reducing engine noise

–

Reducing emissions

–

Reducing fuel consumption

GE

NX

engine

-

787

Forged bulkhead –

Joint

Strike Fighter

Fuselage –

Airbus A380

47

CRU’s

12

th

World Aluminium

Conference --

2007

Part of the solution:

Adding value to everything that moves

•

Aluminum lightweighting saves

energy and emissions in

automotive, truck, rail, aerospace

and other applications

•

Emissions saved by aluminum

lightweighting can offset the

climate impact of aluminum

manufacturing

•

Aluminum can be a greenhouse-

neutral material

in the foreseeable

future

48

CRU’s

12

th

World Aluminium

Conference --

2007

Part of the solution:

GHG neutral by 2020

•

Growing aluminum

lightweighting in road

and rail vehicles

•

Production and

energy improvements

•

Recycling

•

Aluminum’s value in

reducing greenhouse

gases can offset

emissions from

production

Alcoa and Alcan:

Alcoa and Alcan:

Response to an

Response to an

evolving industry

evolving industry

landscape

landscape

•

Creating an industry

leader

•

Evolving competitive

landscape and the need

for scale

•

Combined strengths

50

CRU’s

12

th

World Aluminium

Conference --

2007

Creating an industry leader

Bauxite & Refining

Access to

World-Class

Reserves

2

nd

Quartile

on Cost

Curve

Capacity:

21.5 MMT

Energy

Self

Generation:

34%

Long Term

Contracts:

54%

Smelting

Global Rank: 

#1

2

nd

Quartile

on Cost

Curve

Capacity:

7.8 MMT

End Markets

Renewable

Hydro:  

54%

Building &

Construction

Packaging

Commercial

Transportation

Automotive

Aerospace

Global Rank:

#1

51

CRU’s

12

th

World Aluminium

Conference --

2007

Evolving competitive landscape

Access to quality

bauxite and

alumina

•

Aluminum consumption

projected to double over 15

years

•

Emerging global competitors

in Russia, China, India and the

Middle East

•

Scale required to maintain

competitiveness

•

Evolving end markets

demanding product innovation

Industry Fundamentals

Access to long-term,

low cost energy

Innovation through

world-class

technology and

R&D

Proven commitment

to sustainability

Keys to Success

Alcoa / Alcan well positioned to compete with large global peers

and

deliver profitable growth

52

Industry landscape demands

large scale

Source: Factset and public filings. Market data as of May 4, 2007.

Note:

Alcoa

/

Alcan

represents

the

combined

enterprise

value

pro

forma

for

shares

and

new

debt

issued

for

transaction.

(1) United Company Rusal. Enterprise value estimate per Wall Street research.

$155

$121

$93

$91

$66

$55

$41

$41

$41

$38

$30

$29

$28

$27

$25

$74

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Top 15 Metals & Mining Companies

Combination creates

the

5

th

largest

metals

& mining company in the world

53

South America

6.5%

CIS/E. Europe

5.1%

BHP Billiton

5.6%

India

3.2%

Alcan

8.3%

Alcoa

19.8%

Transforming alumina

landscape

Alcoa

23.2%

Reynolds

5.7%

Pechiney

3.5%

India

2.8%

E. Europe

3.9%

South America

5.8%

Alcan

9.8%

Alusuisse

2.3%

Billiton

3.4%

Inespal

2.1%

1998

2006

Total Market: 53 MMT

Total Market: 79 MMT

Source: CRU

Note: Percentages may not add to 100%

Significant Growth in the East

Alumina Capacity

Rusal

13.2%

Chalco

12.1%

Other China

9.8%

Hydro

2%

RTZ Comalco

4%

Other W. World

10%

China

6.8%

CIS

10.8%

Hydro

1%

VAW

1%

Comalco

3%

Other W. World

15%

54

Alcan

9.4%

Alcoa

10.9%

Middle East

4.2%

BHP Billiton

3.5%

India

2.1%

CIS/E. Europe

2.8%

South America

3.9%

Transforming aluminum

landscape

Rusal

10.3%

Chalco

9.2%

Other China

21.0%

Alcoa

8.9%

Pechiney

3.3%

Reynolds

4.5%

E. Europe

1.9%

Middle East

3.6%

Alcan

6.7%

Alusuisse

1.1%

Billiton

4.2%

Inespal

1.4%

Alumax

2.8%

1998

2006

Significant Growth in the East

Aluminum Capacity

Total Market: 25 MMT

Total Market: 39 MMT

Source: CRU

Note: Percentages may not add to 100%

Hydro

3%

VAW

2%

Comalco

3%

Other W. World

29%

Hydro

4%

RTZ Comalco

2%

Other W. World

16%

China

10.4%

CIS

14.9%

55

CRU’s

12

th

World Aluminium

Conference --

2007

Access to quality bauxite &

alumina

Alcoa

Alcan

Shared

Alcoa

Alcan

Shared

Total Potential

Bauxite

Alumina

12 mines and 13 refineries on 6 continents

Note:  Includes ownership in JVs

56

CRU’s

12

th

World Aluminium

Conference --

2007

World class bauxite and

alumina franchise

9,564

2,269

2,930

4,448

5,907

10,443

15,617

21,524

6,926

16,490

0

5,000

10,000

15,000

20,000

25,000

Alumina Refinery Cash Costs ($/MT)

0

50

100

150

200

250

300

350

400

450

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Worldwide

Production

-

000

MT

2006 Cost Curve

Alcan Average

Alcoa Average

66

th

Percentile

38

th

Percentile

Bauxite & Alumina

2006 ($Millions)

2006 Refining Capacity (kMT)

Chalco

Other China

Source:  CRU full operating cost, Alcoa analysis; Company filings

Global supplier with premier facilities

Low cost production base -

majority of

production in bottom half of cost curve

Best in class operational expertise and

technology

Investing in high return growth projects

Combined

Total Revenue

4,929

3,845

8,774

EBITDA

1,670

609

2,279

57

CRU’s

12

th

World Aluminium

Conference --

2007

Attractive smelter portfolio

Alcoa

Alcan

Shared

46 smelters on 6 continents

Note:  Includes ownership in JVs

58

CRU’s

12

th

World Aluminium

Conference --

2007

Attractive smelter portfolio

7,788

855

1,364

1,683

3,418

3,985

4,370

3,534

853

771

8,096

11,630

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Primary Metals

Aluminum Smelter Cash Costs ($/MT)

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

3,000

0

5,000

10,000

15,000

20,000

25,000

30,000

Worldwide

Production

-

000

MT

2006 Cost Curve

Alcan Average

Alcoa Average

34

th

Percentile

51

st

Percentile

2006 Smelting Capacity (kMT)

Chalco

Other China

2006 ($Millions)

Global supplier with premier facilities

Low cost production base

Best in class operational expertise and

technology

88% of power requirement self-generated

or under long-term contracts

Investing in high return growth projects

Source:  CRU full operating cost, Alcoa analysis; Company filings

Combined

Total Revenue

12,379

11,147

23,526

EBITDA

2,881

2,962

5,843

Alcoa aspires to be

the best company in

the world.