Alcan Investor Workshop

Risk Management Hedged and Fixed-Price Sales Sale type as % of primary production 2006-7 75% 10% C ©2006 ALCAN INC. 2008 LME 3-mnth + Premia Fixed Price Sales LME Hedged Sales 15% 85% 15% ALCAN Change in approach in late 2005 > Previous approach maintained a degree of LME hedged sales plus "natural" fixed price sales obtained through normal business. operations > Current approach maintains only "natural" fixed price sales as they are entered into during normal course of business LME hedged sales run out by 2008 Weighted average price of remaining LME hedged sales is around $1,750/t Average maturity of fixed price sales around 2-3 quarters Slide 14

View entire presentation