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
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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
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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
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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.
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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
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15%
21%
24%
36%
4% BeverageTransportation
Foil /Packaging
Construction/Industrial
Other
2004 Sales by Market
High-end Diversified Product PortfolioHigh-end Diversified Product Portfolio
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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
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• New shapes and sizes of cans• Re-closable aluminum bottle• Sparking new interest with producers & consumers
Innovation…in a can
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Agility: Supply ChainAgility: Supply Chain
• Shorten lead and cycle times • Eliminate delays• Customer focused
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Leading Recycling PositionLeading Recycling Position
60 days
sell Produce consume recover Recycle
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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”
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Maintaining High Quality Metal Supply Maintaining High Quality Metal Supply
Closed loop recycling model
Provides added value, agility & flexibility to supply metal
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Precision: Excellence in OperationsPrecision: Excellence in Operations
• Aiming for world class hot mill performance
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Precision: Excellence in OperationsPrecision: Excellence in Operations
• Capacity utilization• Recovery rates• Productivity
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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.
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Case Study – Novelis KoreaCase Study – Novelis Korea
• Transfer of knowledge and experience
• Best practices in-operations-maintenance-automation
• Continuous improvement
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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%