korea nonferrous metal association seminar ( ) 세계알루미늄동향

Korea Nonferrous Metal Association Seminar( 세계알루미늄동향 )

Korea Nonferrous Metal Association Seminar( 세계알루미늄동향 )

Kyungmee ParkDirector, Business DevelopmentNovelis Korea Limited

November 29, 2005

November 29, 2005 Novelis Korea Limited

Global Leader in Rolled Aluminum

2004 Global Aluminum Rolled Products Production

6%6%

16%

20%

52%

Novelis

Alcan

Others Alcoa

Norsk Hydro

100% = 14,977 ktTop 4 = 48%

Source: CRU, based on production data.

#1 rolled products supplier worldwide

Leader in: • Chosen markets:

– Can, auto, Litho, foil • Rolling technology• Continuous casting

technology • Recycling• Quality


Technologically Sophisticated Assets Globally Positioned

BorgofrancoBressoPieve

Italy

AratuOuro PretoPetrocoque (1)

PindaSao PauloUtinga

Brazil

BridgnorthLatchfordRogerstone

United Kingdom

BerlinGöttingenLudenscheidNachterstedtNorf (1)

Ohle

Germany

Bukit Raja (1)

Malaysia

DudelangeLuxembourg

AnnecyRuglesVoreppe

France SeoulUlsan (1)

Yeongju (1)

Korea

Sierre (2)

ZurichNeuhausen

Switzerland

UNITED STATESAtlantaAuroraBereaClevelandFairmontGreensboroLogan (1)

LouisvilleOswegoTerre HauteWarren

BurnabyKingstonSaguenayToronto

Canada

South AmericaEmployees: 2,000

AsiaEmployees: 1,600

ManufacturingRecyclingBauxite/aluminaPrimaryPowerRefined Calcinated CokeResearch & DevelopmentRegional OfficesExecutive OfficesWorld Headquarters

EuropeEmployees: 6,500

Notes: (1) Jointly owned companies or facilities.(2) Long-term lease.

North AmericaEmployees: 3,000

36 Plants, 13,000+ Employees in 11 Countries


Novelis Worldwide

North America

Shipments: 1,115kt

Employees: 3,000Revenues: $3.0Bn

EuropeEmployees: 6,500Revenues: $3.1Bn

984ktShipments:

Novelis Total

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

36 Plants11 Countries

4 Continents

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

Employees: 2,000Revenues: $0.5BnShipments : 234kt

South America1,600Employees:

Revenues: $1.2BnShipments: 452kt

Asia


Formula for Success

FOCUSSED BUSINESS MODEL

Innovation + Agility + Precision=

Success

FOCUSSED BUSINESS MODEL

Innovation + Agility + Precision=

Success


High-end Diversified Product Portfolio

BeverageTransportation

Foil /Packaging

Construction/Industrial

2004 Novelis Revenue by End Market

15%

21%

24%

36%

4%


Novelis Supplies World Leaders

• High-end rolled aluminum products

• Long-term relationships with blue-chip customers

• Able to leverage our position as world’s largest purchaser of aluminum to supply our customers’ needs

Flexible & Semi-rigid Packaging

Printing & Lithographic

Building & Construction

Cans & Closures

Automotive and Transportation


Novelis Automotive Products

More than 4 millions vehicles, manufactured in 2004, were assembled with 1 or more Novelis

Aluminum sheet.


0

20

40

60

80

100

120

140

160

180

200

220

240

1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008

bn c

ans

N.A. & Mexico Europe, Africa and Middle East SA Asia

Asia: 2.0%

S.A: 5.2%

Europe: 7.1%

N.A. & Mexico(-0.1%)

CAGR 90-005.0%

Note: Asia Includes Oceania

Source: CRU

CAGR 04-09Total: 2.2%

CAGR 75-8018.0%

CAGR 80-909.0%

Aluminum Can History & Forecast

CAGR 00-041.0%


Our Commitment to Recycling

Novelis is a world leader in aluminum recycling:

• We recycled over 30 billion cans in 2004

• Recycling saves 95% of the energy it takes to make aluminum

• Each can recycled saves enough energy to power a television for three hours

Novelis is a world leader in aluminum recycling:

• We recycled over 30 billion cans in 2004

• Recycling saves 95% of the energy it takes to make aluminum

• Each can recycled saves enough energy to power a television for three hours


The Infinite Lifecycle

It takes less than 60 days to

sell Produce consume

an aluminum can

recover recycle reproduce


Novelis Korea

Production

Can• Body Stock, • End/Tab Stock

Light Gauge• Reroll Stock

Industrial Products• Building• Transportation• Durable• Machinery• Electric/Electronic• Others

Casting Alloy for Auto• Engine• Wheel• Control Arm

Overall Novelis Korea 2004Revenues : U$1,135 Million, Employees : 1,250 , Overseas offices : Hong Kong, Singapore,

Beijing, Tokyo


Global Primary Aluminum Supply/Demand

26.128.0

29.831.4

32.9

25.427.7

30.3 31.132.6

10

20

30

40

2002 2003 2004 2005 (e) 2006 (f)

Mm

t

Supply ConsumtionSource : CRU Report 2005, KOMIS


Global Primary Aluminum Consumption By Region

Total : 33Mmt

Year 2006 (f)

Europe24%

Pan-Asia45%

Other4%

LatinAmerica

4%

NorthAmerica

23%

Sources : CRU Report 2005, KOMIS

Total : 31Mmt

Year 2005 (e)

Europe25%

Pan-Asia43%

Other4%

LatinAmerica

4%

NorthAmerica

24%


Global Flat Rolled Products Consumption

0.0

3.0

6.0

9.0

12.0

15.0

18.0

Mm

t

Total 13.2 13.8 14.9 15.5 16.1

North America 4.7 4.8 5.2 5.3 5.3

Europe 3.9 4.0 4.2 4.3 4.5

Asia 3.6 4.0 4.3 4.6 4.9

Latin America 0.5 0.5 0.5 0.6 0.6

Others 0.5 0.5 0.5 0.6 0.7

2002 2003 2004 2005 (e) 2006 (f)

Sources : Novelis internal estimate, CRU Aug. 2005


Global Flat Rolled products Consumption By Product

Total : 16.1Mmt

Year 2006 (f)

Others54%

Foil Stock22%

Can Stock24%


Total : 15.4Mmt

Year 2005 (e)

Others53%

Foil stock22%

Can Stock25%


Pan-Asia Primary Aluminum Consumption

9.9

11.6

13.013.5

14.6

3.0

6.0

9.0

12.0

15.0

18.0

2002 2003 2004 2005 (e) 2006 (f)

Mm

t

Source : CRU Report 2005, KOMIS


Pan-Asia Primary Aluminum Consumption

Pan -Asia Total : 14Mmt

Year 2006 (f)

Japan18%

Oceania3%

Korea8%

Other25%

China46%

Sources : CRU report 2005, KOMIS

Pan -Asia Total : 13Mmt

Year 2005 (e)

Japan19%

Oceania3%

Korea8%

Other25%

China45%


Pan-Asia Flat Rolled Product Consumption

0.0

1.0

2.0

3.0

4.0

5.0M

mt

Total 3.6 3.9 4.4 4.7 5.0

China 1.3 1.5 1.7 1.9 2.2

Japan 1.1 1.2 1.3 1.3 1.3

Korea 0.3 0.4 0.4 0.4 0.4

Others 0.9 0.9 0.9 1.0 1.0

2002 2003 2004 2005 (e) 2006 (f)



Pan-Asia Flat Rolled products Consumption By Product

Total : 4.9 Mmt

Year 2006 (f)

Others55%

Foil Stock27%

Can Stock18%


Total : 4.6 Mmt

Year 2005 (e)

Others54%

Foil stock26%

Can Stock20%


China Flat Rolled Product Consumption

0

500

1,000

1,500

2,000

2,500K

mt

Total 1,265 1,528 1,715 1,936 2,188

Others 695 864 970 1,082 1,212

Foil Stock 409 500 577 671 775

Can Stock 161 164 168 183 201

2002 2003 2004 2005 (e) 2006 (f)



China Flat Rolled Product Supply

Southwest Aluminum Group

SWA started to operate New Tendem(1+4) at Q2,2005, SWA will increase the FRP to Domestic Market.

Nanshan Aluminum

It will launch to supply the Rolled Product at Q3/Q4 for 2006.

Other Supply ( Bohai, Asia AL, Yugang Longquan AL, etc)

They will increase and start to provide the FRP to China market.

Major Importer

Many other country’s mill will increase to China due to strong domestic demand in China.


0.91.0

1.11.2

1.3

0

0.3

0.6

0.9

1.2

1.5

2002 2003 2004 2005 (e) 2006 (f)

Mm

t

Korea Primary Aluminum Consumption

Sources : CRU report, KOMIS


Korea Flat Rolled products Consumption By Product

Total : 426 Kmt

Year 2006 (f)

Others52%

Foil Stock36%

Can Stock12%


Total : 410 Kmt

Year 2005 (e)

Others51%

Foil stock37%

Can Stock12%


Korean Rolled Product Demand &Supply


335

431

364383

415

564

410

610

426

618

0

100

200

300

400

500

600

700

kmt

2002 2003 2004 2005 (e) 2006 (f)

Demand Production

CAGR(%) - Demand : 4% , Production : 12% (2000~2005)


Korea Rolling Mill Capacity

Sources : CRU Aug. 2005, Capacity¹ : Cold Mill Capacity

645 635

705 705

765

0

100

200

300

400

500

600

700

800

kmt

2002 2003 2004 2005 (e) 2006 (f)

From 2003, Seoul Metal Co. excluded.


Korean Aluminum Trade BalanceKorea is the second largest aluminum net importer in Asia, purchasing raw materials

such as primary aluminum ingot and scrap.

0

200

400

600

800

1000

1200

1400

1600

1800

kmt

Total 1,089 1,109 1,114 1,266 1,383 1,565 1271

primary 777 735 759 840 907 1,042 798

Scrap&Waste 106 102 133 187 175 221 226

Rolled Product 71 83 70 72 91 107 83

Casting 67 99 97 97 104 102 101

Other 68 90 55 70 106 93 63

1999 2000 2001 2002 2003 2004 2005*

Import Export

0

100

200

300

400

500

600

kmt

Sub-Total 292 278 265 324 423 510 401

Rolled Product 132 134 134 169 226 275 233

Foil&Fin 47 47 42 48 54 70 54

Extrusion 16 19 17 18 16 24 12

Casting 4 6 5 11 14 13 11

Other 93 72 67 78 113 128 92

1999 2000 2001 2002 2003 2004 2005 *

Sources : Korea Customs Service

2005* : September Year-To-Date


0

200

400

600

800

1000

1200

1400

1600

kmt

Sub-Total 1,089 1,109 1,114 1,266 1,383 1565 1271

China 45 36 122 243 382 522 431

Australia 257 240 226 247 234 228 181

Russia 169 211 197 200 221 274 217

South Africa 161 160 148 140 94 72 60

Other 456 462 421 436 452 468 382

1999 2000 2001 2002 2003 2004 2005 *

Import by Country Import from PRC

Korean Aluminum Trade BalanceKorea aluminum import form PRC rapidly increased from 2001, so, the PRC is first in aluminum imports into Korea, as primary Aluminum Ingot being the main product.

0

100

200

300

400

500

600

kmt

Sub-Total 45 36 122 243 382 522 431

Primary 36 19 103 214 342 477 389

Scrap&Waste 1 1 1 5 8 6 3

Rolled Product 2 3 3 3 6 9 12

Casting 5 10 12 17 21 22 17

Other 1 2 2 3 5 7 10

1999 2000 2001 2002 2003 2004 2005 *




0

100

200

300

400

500

600

kmt

Sub-Total 292 278 265 325 423 510 402

China 68 66 73 101 170 209 167

Japan 52 59 52 50 66 85 62

Taiwan 17 21 20 26 35 46 34

USA 35 25 18 23 23 24 23

Other 121 107 103 125 129 145 115

1999 2000 2001 2002 2003 2004 2005 *0

50

100

150

200

250

kmt

Sub-Total 68 66 73 101 170 209 167

primary 9 0 1 5 14 12 4

Rolled Product 40 45 54 74 123 153 128

Foil&Fin 9 11 8 10 13 9 5

Casting 1 1 0 3 4 9 8

Other 8 9 10 10 17 27 23

1999 2000 2001 2002 2003 2004 2005 *

Export to Country Export to PRC

Korean Aluminum Trade BalanceThe PRC is the largest export Customer for Aluminum. As we look to the future , the dominance of Koreas export to China will be greater.




Shaping the Future. Precisely.

Novelis is committed to shaping the products of the future through a powerful combination of a an

innovative, customer-focused culture and unrivaled manufacturing technologies.

Welcome to NovelisWelcome to Novelis

korea nonferrous metal association seminar ( ) 세계알루미늄동향

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