Innovation, Agility and Precision-- A Formula for Success in Aluminum RollingInnovation, Agility and Precision-- A Formula for Success in Aluminum Rolling

Martha BrooksChief Operating OfficerNovelis Inc.

Martha BrooksChief Operating OfficerNovelis Inc.

December 8, 2005

2

Innovation + Agility + Precision = SuccessInnovation + Agility + Precision = Success

Formula tailored for the NovelisFormula tailored for the NovelisFOCUSED BUSINESS MODELFOCUSED BUSINESS MODEL

Helps us leverage our strengthsHelps us leverage our strengthsand achieve operational excellenceand achieve operational excellence

Formula for SuccessFormula for Success

3

The real challenge The real challenge ––getting your people and assets performing getting your people and assets performing

up to potentialup to potential

Innovation + Agility + Precision = SuccessInnovation + Agility + Precision = Success

Formula for Success

4

Global Leader in Rolled AluminumGlobal Leader in Rolled Aluminum

Novelis is:

#1 in Asia-Pacific#1 in Europe#1 in South America#2 in North America

4%6%

16%

20%

54%

2004 Global Aluminum Rolled Products Production(1)

Novelis

Alcan

Others Alcoa

Norsk Hydro

100% = 14,977 ktTop 4 = 46%

Note: (1) Includes aerospace products production.Source :CRU, based on production data.

5

Novelis Worldwide FootprintNovelis Worldwide Footprint

North AmericaRevenues: $3.0Bn

Novelis Total

Employees 13,000+Revenues $7.8 BnShipments 2,785 kt

36 Plants11 Countries

4 Continents

Note: Rolled products shipments only.Financial and shipment figures based upon 2004.

Revenues: $0.5BnSouth America

Revenues: $1.2BnAsia

EuropeRevenues: $3.1Bn

6

15%

21%

24%

36%

4% BeverageTransportation

Foil /Packaging

Construction/Industrial

Other

2004 Sales by Market

High-end Diversified Product PortfolioHigh-end Diversified Product Portfolio

Formula for Success: InnovationFormula for Success: Innovation

8

Innovation at Novelis

• Begins with our new business model

• Focused on core competencies to create added value

• Similar to successful computer industry model

• Bring new solutions to market

IBM Intel / Microsoft / Dell

9

• New shapes and sizes of cans• Re-closable aluminum bottle• Sparking new interest with producers & consumers

Innovation…in a can

10

InnovationInnovation

The new Jaguar XK

11

InnovationInnovation

Mercedes Benz S-Class

12

Technology TransferTechnology Transfer

Bringing better solutions to market

Formula for Success: AgilityFormula for Success: Agility

14

Agility: Supply ChainAgility: Supply Chain

• Shorten lead and cycle times • Eliminate delays• Customer focused

15

Leading Recycling PositionLeading Recycling Position

60 days

sell Produce consume recover Recycle

16

Aluminum‘s Recycling AdvantagesAluminum‘s Recycling Advantages

0%

20%

40%

60%

80%

100%

New Aluminum Recycled Aluminum

% o

f New

Met

al E

nerg

y R

equi

rem

ent 100%

5%

• Recycling only needs 5% of the energy

• Recycling emits 95% less greenhouse gas emissions

... “an Energy Bank”

17

Maintaining High Quality Metal Supply Maintaining High Quality Metal Supply

Closed loop recycling model

Provides added value, agility & flexibility to supply metal

Formula for Success: PrecisionFormula for Success: Precision

19

Precision: Excellence in OperationsPrecision: Excellence in Operations

• Aiming for world class hot mill performance

20

Precision: Excellence in OperationsPrecision: Excellence in Operations

• Capacity utilization• Recovery rates• Productivity

21

World-Class Hot Mill Performance*

• Capacity utilization – 70% plus

• Recovery rates – 85% plus

• Productivity – 110-130 tonnes per hour (four-stand tandem mill with standard size ingot)

*Actual performance will vary according to loading, product mix,*Actual performance will vary according to loading, product mix, ingot size and equipment at a particular mill.ingot size and equipment at a particular mill.

22

Case Study – Novelis KoreaCase Study – Novelis Korea

• Transfer of knowledge and experience

• Best practices in-operations-maintenance-automation

• Continuous improvement

23

Yeongju Hot Mill - Year-Over-Year Output Increases

0%

10%

20%

30%

40%

50%

2002 2003 2004 2005 ytd

% In

crea

se

Continuous Improvement

47.2%

30.3%

20.9%

9.2%

24

Innovation + Agility + Precision = SuccessInnovation + Agility + Precision = Success

Formula for Success