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| 8-K - FORM 8-K - Howmet Aerospace Inc. | d8k.htm |
 Seizing profitable Flat Rolled growth
opportunities in Europe –
Feb 3rd 2011
Bernd Schaefer –
Alcoa European Mill Products
Alcoa Logo
Exhibit 99 |
 Cautionary Statement
Forward-Looking Statements
This
presentation
contains
statements
that
relate
to
future
events
and
expectations
and
as
such
constitute
forward-looking
statements
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995.
Forward-looking
statements
include
those
containing
such
words as “anticipates,”
“estimates,”
“expects,”
“forecasts,”
“intends,”
“outlook,”
“plans,”
“projects,”
“should,”
“targets,”
“will,”
or other
words
of
similar
meaning.
All
statements
that
reflect
Alcoa’s
expectations,
assumptions,
or
projections
about
the
future
other
than
statements
of
historical
fact
are
forward-looking
statements,
including,
without
limitation,
forecasts
concerning
global
demand
for
aluminum,
aluminum
end-market
growth,
aluminum
consumption
rates,
or
other
trend
projections,
targeted
financial
results
or
operating
performance,
and
statements
about
Alcoa’s
strategies,
objectives,
goals,
targets,
outlook,
and
business
and
financial
prospects.
Forward-looking
statements
are
subject
to
a
number
of
known
and
unknown
risks,
uncertainties,
and
other
factors
and
are
not
guarantees
of
future
performance.
Actual
results,
performance,
or
outcomes
may
differ
materially
from
those
expressed
in
or
implied
by
those
forward-looking
statements.
Important
factors
that
could
cause
actual
results
to
differ
materially
from
those
in
the
forward-
looking
statements
include:
(a)
material
adverse
changes
in
aluminum
industry
conditions,
including
global
supply
and
demand
conditions
and
fluctuations
in
London
Metal
Exchange-based
prices
for
primary
aluminum,
alumina,
and
other
products,
or
the
effect
of
the
move
toward
index-based
pricing
for
alumina;
(b)
unfavorable
changes
in
general
business
and
economic
conditions,
in
the
global
financial
markets,
or
in
the
markets
served
by
Alcoa,
including
automotive
and
commercial
transportation,
aerospace,
building
and
construction,
distribution,
packaging,
oil
and
gas,
defense,
and
industrial
gas
turbines;
(c)
the
impact
of
changes
in
foreign
currency
exchange
rates
on
costs
and
results,
particularly
the
Australian
dollar,
Brazilian
real,
Canadian
dollar,
and
Euro;
(d)
increases
in
energy
costs,
including
electricity,
natural
gas,
and
fuel
oil,
or
the
unavailability
or
interruption
of
energy
supplies;
(e)
increases
in
the
costs
of
other
raw
materials,
including
caustic
soda
or
carbon
products;
(f)
Alcoa’s
inability
to
achieve
the
level
of
revenue
growth,
cash
generation,
cost
savings,
improvement
in
profitability
and
margins,
fiscal
discipline,
or
strengthening
of
operations
(including
improving
the
position
of
its
bauxite,
refining
and
smelter
system
on
the
world
cost
curve),
anticipated
from
its
productivity
improvement,
cash
sustainability
and
other
initiatives;
(g)
Alcoa's
inability
to
realize
expected
benefits
from
newly
constructed,
expanded
or
acquired
facilities
or
from
international
joint
ventures
as
planned
and
by
targeted
completion
dates,
including
the
joint
venture
in
Saudi
Arabia
or
the
upstream
operations
in
Brazil;
(h)
political,
economic,
and
regulatory
risks
in
the
countries
in
which
Alcoa
operates
or
sells
products,
including
unfavorable
changes
in
laws
and
governmental
policies;
(i)
the
outcome
of
contingencies,
including
legal
proceedings,
government
investigations,
and
environmental
remediation;
(j)
the
outcome
of
negotiations
with,
and
the
business
or
financial
condition
of,
key
customers,
suppliers,
and
business
partners;
(k)
changes
in
tax
rates
or
benefits;
and
(l)
the
other
risk
factors
summarized
in
Alcoa's
Form
10-K
for
the
year
ended
December
31,
2009,
Forms
10-Q
for
the
quarters
ended
March
31,
2010,
June
30,
2010,
and
September
30,
2010,
and
other
reports
filed
with
the
Securities
and
Exchange
Commission
(SEC).
Alcoa
disclaims
any
obligation
to
update
publicly
any
forward-looking
statements,
whether
in
response
to
new
information,
future
events
or
otherwise,
except
as
required
by
applicable
law.
2
Alcoa
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 3
Content
The Alcoa footprint
Strategic objectives and markets
Renewable energies
Consumer electronics
Substitution
Transportation
Leading to results
Alcoa
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 4
The Alcoa footprint
Alcoa
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 5
Alcoa at a Glance
Number of Employees
U.S.
23,000
Europe
19,000
Other Americas
10,000
Pacific
7,000
59,000
Founded in 1888
200+ locations
31 countries
$21.0 billion revenue in 2010
59,000 employees
Award-winning sustainability
leadership
120 years of patents, including the
original Aluminium
process
Alcoa
Logo |
 Alcoa
Global Rolled Products: 18 Facilities on 5 Continents 6
North America
Davenport
Lancaster
Tennessee
Texarkana (idled)
Warrick
Europe
Kitts Green (UK)
Kofem (HU)
Fusina (IT)
Castelsarrasin (FR)
Amorebieta (SP)
Alicante (SP)
Russia
Samara
Belaya Kalitva
China
Bohai
Kunshan
Australia
Yennora
Point Henry
Latin America
Itapissuma (BR)
Global Rolled Products (GRP) Location Map and Summary Data
Middle East
Raz Az Zawr (SA)
Ma’aden project location.
First production in 2013
2010 Full Year Data
1.7m metric tons shipments
$6.3B total revenue
18 locations
on 5 continents
14,000 employees
Alcoa
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 Alcoa
Rolled Products European Footprint Overview
Approx. 2,500
Employees
6 Locations
5 Countries
7
European Rolled Products Location Map and Summary Data
Europe
Amorebieta (SP)
Fusina (I)
Kitts Green (UK)
Alicante (SP)
Castelserrasin (F)
Köfém (HU)
Alcoa
Logo |
 8
North
America
4.3mMT
South
America
0.8mMT
Western
Europe
3.5mMT
China
4.6mMT
Middle
East
0.6mMT
Rest of Asia
2.7mMT
Source: Aug. 2010 CRU and Alcoa analysis
Geographically positioned to capture Growth
Rolled Products Consumption (2010E) and CAGR (2010E-2013E)
+5%
+3%
+11%
E. Europe,
Russia
& CIS
0.9mMT
+8%
+7%
+5%
+6%
World
17.6mMT
+7%
Alcoa
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 9
Strategic objectives and markets
Alcoa
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 Market Conditions in 2011 –
All Aluminium
Source:
Alcoa
analysis
of
10
January
2011
10
Alcoa End Markets: Current Assessment of 2011 vs. 2010 Conditions
Alcoa
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th |
                          11
11
Alcoa European Mill Products serves a Variety of Markets
European Mill Products Portfolio
Regional
Commodities
Mould plates
Marine
Lithographic
Sheet
Commercial
Transportation
Brazing
HVAC
Defense
Consumer
Electronics
Industrial
Products
Building &
Construction
Common
Alloys
Regional Specialties
Industrial
Consumers
Renewable
Energy
Aerospace
Alcoa
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 12
The Alcoa aluminium
Proposition
Renewable Energies: Increasing Efficiency through
Innovations
Solar thermal collectors,
Aluminium
used in absorbers,
casings and frames. Between 3.1
kg/m²
to 4.3 kg/m²
(flat-plate).
Today (2010) 210 million m²
have
been installed yearly.
Photovoltaic systems,
Aluminium
used in
construction/mounting
structure (72%), followed
by input to panel frames
(22%), and Aluminium
use in inverters (6%).
Between 23 kg/kW and
59 kg/kW.
Concentrated solar
panels (CSP), 33 ktons
of
Aluminium
are installed in
CSP technologies.
Market sales potential of
Aluminium
could be
increased replacing glass
and steel.
Wind turbines, Aluminium
usage from 0.01% up to
about 2.5 % of the total
material input. Increase
thanks to offshore
installations and replacing
the coverings of the wind
turbine nacelle and rotors
with Aluminium.
Source: EAA, ifeu
-Institut
für
Energie
und Umweltforschung
Heidelberg GmbH
Alcoa
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 13
Renewable Energies: Adding Value for the Customer
Our Innovations add Value
Strategy
2030E
2010E
2030E
2010E
Aluminium
Content
in PV
Aluminium
Content
in CSP
Joint development initiatives with
major stake holders
Europe's market share of 12% in
thermal collectors, 48% in
windmills, 65% in photovoltaic
Capture
major
opportunities
for
industry growth
Grow revenue and profitability
globally
by
targeting
more
differentiated offerings -
products,
surfaces, materials
Leverage Alcoa solutions globally
+400%
+1300%
Source: EAA, ifeu
-Institut
für
Energieund
Umweltforschung
Heidelberg GmbH
13
Alcoa
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 Consumer Electronics: Making it “Cool”
14
Samsung 9 Series Notebook
(anodized / brushed cover)
Samsung 8000 Series LED TV
(coated / brushed bezel)
Advantages of Aluminum
Aluminum-Intensive Devices
CES 2011
Nokia N Series Smartphone
(color anodized case)
Panasonic Viera
TV
(brushed bezel)
Alcoa
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 15
Consumer Electronics: Adding Value for the Customer
Our innovations add value
Strategy
+30%
2013E
2010E
+465%
2013E
2010E
Aluminium
Content
in Laptops
LCD TV Aluminium
Back-
Panel Growth
World-class customer base
Market is moving to Aluminium
Alcoa differentiated solutions
Targeting revenue growth of
approx. 40% CAGR 2010-2013
Grow revenue and profitability
globally
by
targeting
more
differentiated offerings—products,
surfaces, materials
Leverage Alcoa solutions globally
Closer to our customers in Asia
15
Alcoa
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 Opportunities to replace Copper: Aluminium
wins
16
Copper Prices Moving Up
Low Voltage
Electrical wiring
& cable
Transportation
Cladding
Other
Sources: Bank of America / Merrill Lynch, International Copper Study Group and Alcoa
Analysis 320%
19 mmt
Refined Cu
Aluminium
Is The Natural Substitute
•Heat sinks for electronics, PCB’s
•Building façades
•Bussed electrical center components
•Wire harnesses
•High Voltage Cables
•Utility buss bars
•Low voltage installations in cities, industrial
or commercial buildings
•Battery cables
Aluminium
Replacement Examples
High Voltage
$2,321
$9,740
12/31/03
12/31/10
•Alcoa is best positioned to supply
differentiated products and proprietary
alloys
•Alcoa EMP is aiming to supply customized
solutions for FRPs
Alcoa
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 Automotive Aluminium: European cars best in class
thanks to Aluminium
FRPs
Source: Alcoa Analysis, EAA Ducker research, KGP
Leverage on our
cooperation with
automakers (NA, Europe,
Japan) and supply
differentiated product
offering
to Tier 1 and 2
customers
Drive Aluminium
conversion
Aluminum
provides
3x
the
fuel
economy
benefit
of
high
strength
steel
European cars have more aluminium in the body, closures, chassis
and
suspension
compared
to
North
America
and
Japan
Aluminium
penetration
per
car
in
Europe:
135Kg
in
2010
150Kg
in
2015
+55%
2016E
2010
Europe
Auto Sheet Volume
17
Drivers of the opportunity for increased Aluminium
Strategy
2010
2016E
1,6million tons
2,2million tons
Aluminium
intensive design
Components and
Heatshields
Chassis and Structures
Source : EAA Drucker
research
Alcoa
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 Commercial Transportation: Aluminium
use could more
than double by 2020
Leverage our distinctive
relationships and
differentiated product
offering
Work with multiple
customers proposing
conversion to Aluminium
components
Drivers of Aluminium
opportunity in Europe
Strategy
2010 vs
2011
+ > 12%
Transport
of
1
t
additional
payload
is
worth
4800
€
per
year
Introduction
of
Euro
VI
(2012)
will
increase
weigh
of
road
tractors
by
300Kg
Trailers
18
Western Europe Tractor
Application
Al-
penetration
Average weight per
part [kg]
Fuel Tank
80%
45
HVAC
90%
40
Pressure Vessels
35%
8
Transmission Housing
40%
50
Bracket / Tread Plate
60%
10
Underrunning Protection
80%
30
Western Europe
Trailer Type
% of fleet
Cube vs
weigh out
Average Al-content
per trailer [kg]
Tanker
5
W
1.800
Dumper/Tipper
15
W
2.000
Reefer
12
C
500
Box/Dry Van
6
C
350
Curtain Sider
38
C
300
Flatbed
18
C
250
Special/Others
7
C
300
Tractor
280
Tractors Components
Source: EAA
Aluminium
consumption
growth in CT
Alcoa
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 Commercial Transportation: Success created through
brand intimacy -
Endur-Al
Endur-Al
is an advanced 5456 alloy in H34
temper
Shate material for tipper bottoms and sides of
exceptional hardness and abrasion
resistance.
20-30% less weight compared to steel offer
bigger payloads, fuel savings and lower
operating costs.
High yield strength offers good welding and
cold bending performance.
19
Alcoa
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 Marine: Success created through brand intimacy -
Nautic-Al
Alcoa is a market leader
for marine
applications.
Nautic-Al
provides the exceptional
strength, workability and corrosion
resistance
Can be welded by TIG, MIG, FSW and Laser
Welding.
Meets or exceeds the ASTM B928-04a
standard
for high magnesium Aluminium-
alloy for marine environments.
20
Alcoa
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 21
Leading to results
Alcoa
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 22
Alcoa European Mill Products Strategic Objectives
Growing faster than the market
Driving profitable and sustainable growth through
innovation and product development
Aluminize the market by substituting competitive
materials
Setting a new level
of
profitability
for
the
business
Alcoa
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 23
Alcoa: Great Past, Present & Future
2010
We reshaped
the industry
We innovated
markets
We invented
the industry
1888
1900
Alcoa can’t wait
Alcoa can’t wait
for tomorrow
for tomorrow
Alcoa
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 24
Thank you!
Alcoa Europe SA
European Mill Products
Avenue Giuseppe Motta 31-33
CH-1202 Geneva
Switzerland
T: +41 22 919 60 00
F: +41 22 919 61 00
W: www.alcoa.com/emp
Alcoa Logo |