Excellence in Aluminum Helmut Wieser, Alcoa

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Excellence in AluminumHelmut Wieser, Alcoa
Austrian Science Talk 2006New York23 September
2006
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Agenda

• Overview of Alcoa
• Excellence Key to Alcoas Growth
• Operational Excellence
• Innovation
• Sustainability

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Alcoa Overview
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Safety
Lost Work Date incident rate Best ever safety
performance in 2005
99
In 2005 it was 10 times safer to work for Alcoa
than it was in 1991
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Broad Market Presence
26.2 Billion in Revenues in 2005
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Projected World Aluminum Consumption (M Tons)
SOURCE McKinsey Includes Middle east and Africa
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Flat-Rolled Products Global Footprint

• 2005 Overview
• 21,000 Employees
• 2.2 mmt of Shipments
• 21 Plants
• 10 Countries
• 6.8 Billion in 3rd Party Revenue

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Leader in Value Added Products
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2
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1
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Growing with our Strategic Customers
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Technology Leadership

• Unique Capabilities
• 32 meter long plate for 747 A380 wing-skins
• 3.4 meter wide fuselage skin sheet for A380
• Proprietary Alloys
• Highest Number of patented alloys in the
  industry Approximately 95 of all aerospace
  alloys in use today were developed by Alcoa.
• 90 of A380 new alloys developed by Alcoa more
  to come

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The World Fleet Will More Than Double
Regional jets Single-aisle Twin-aisle 747 and
larger
35,300 airplanes
18,500GrowthAirplanes
16,800 airplanes
7,200 Replacements
9,600Retained Fleet
2004
2024
Source Boeing 2005 Current Market Outlook
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How We Attain Excellence

• Operational Excellence
• Innovation
• Sustainability

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Operational ExcellencePeople Involvement
Flat Rolled Products Group
67,000 Suggestions
Amorebieta (Spain) Suggestions per Employee
2001
2006 Forecast
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Operational ExcellenceTotal Productive
Maintenance (TPM)
300 Alcoans at Tennessee Event
800 Alcoans at Samara, Russian Event
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Operational ExcellenceFlat Rolled Products
Productivity
Productivity Index Evolution
Excluding 2005 acquisitions
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Innovation Alcoa Technical Center

• Hub of Alcoas global innovation network
• 600 staff
• 100 PhDs, 200 MS
• 127 acre campus
• 270 labs in 7 buildings
• 6 satellite facilities worldwide

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Innovation Portfolio
S H A R E H O L D E R V A L U E
Impact on Operating Earnings
RevenueEnhancement
AssetEfficiency
Fundamentals
OperatingMargin
Strategic RD Initiatives
Power Production
Fabrication Process

• Product Development

Customer and market
drivers Corporate/BU goals/strategies Strate
gic Analyses External/Internal innovations

• Scrap Reuse

Fabrication Process
Refining
Casting
Smelting
Fabrication Process
EHS Sustainability Initiatives
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Innovation Corvette Z06 Spaceframe

• Released at 2005 Detroit Auto Show
• Designed by Alcoa
• Frame Mass 126.4 Kg, reduced by 56 Kg
• Seamless Integration for Bowling Green assembly
• All performance targets met

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Sustainability and Living Our Values

• People
• Environment
• Customer Connection

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Sustainability Excellence Energy Specific
Electricity Requirements Down
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Environment

• Climate Change
• Greenhouse gases reduced 25 over 1990 levels
• On track for further reductions by 2020
• Clean Power
• 100 years of hydropower leadership
• New plants to use hydro, natural gas, possibly
  geothermal
• Pioneer and leader in renewable energy market
• Land conservation/restoration
• Award winning projects in Australia, Brazil, US
• Ten Million Trees

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How We Attain Excellence

• Operational Excellence
• Innovation
• Sustainability

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