THE ALUMINIUM BEVERAGE CAN

GOING FULL CIRCLE

Canadean Beverage Packaging

Congress 2015

Brussels, October 28, 2015

Catherine Athènes,

Constellium Sustainability Council

Leader

Agenda

2

Constellium and sustainability

Life Cycle Assessment

Recycling is more than a driver for sustainability

What matters is End-of-life Recycling

Improving sorting and recycling by working together

Constellium: a long and rich experience in aluminium

3

1855Pechiney

1888Alusuisse

1902Alcan

2000Alcan Aluminium Limited

merges with Algroup/

Alusuisse

2003Alcan Inc. acquires

Pechiney

2007Rio Tinto

acquires Alcan

More than a century of growth

May 2013Constellium commences

trading on the New York Stock

Exchange and NYSE Euronext

Paris

May 2011Alcan Engineered

Products is renamed

to Constellium

January 2011Rio Tinto sells 51%

of Alcan Engineered

Products to Apollo,

10% to FSI and keeps the

remaining 39% stake

January 2015Constellium acquires Wise

Metals

Constellium is a leader in innovative aluminium-based solutions

4

Over 10,000 employees*

€4.7 billion in sales (incl. €997 million from Wise

Metals)*

22 manufacturing sites*

C-TEC, our world-class Technology Center

Headquartered in Amsterdam, The Netherlands.

Corporate offices in Paris, France, Zurich, Switzerland and

New York, USA *The

com

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and

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Const

ellium

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the

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2014 pro forma figures including Wise Metals acquisition

Structured into 3 Business Units

5

Aerospace and Transportation

€ 1.197 billion in revenues

#1 worldwide for aerospace plates

#1 in the USA for large coils

Packaging and Automotive Rolled Products

€ 2.573* billion in revenues

#1 worldwide in closure stock

#2 in Europe for can body stock and #3 in North America

Major player in auto body sheet: #4 worldwide

Automotive Structures and Industry

€ 921 million in revenues

#1 in Europe for large profiles

#1 in Europe for hard alloy extrusions

#2 worldwide in crash management systems

* The combined unaudited pro forma revenue information for the year ended December 31, 2014 presented above gives effect to the acquisition of Wise as if it had occurred on January 1, 2014. This

information is presented for information purposes only and does not purport to represent what Constellium actual revenues would have been had the acquisition occurred on the date indicated, nor is it

necessarily indicative of future results.

C-TEC: a world-class technology center

fully dedicated to innovation

6

Uniquerapid prototyping

capabilities, simulation tools

and advanced joining

technologies such as

friction stir welding

Over150 patent families and trademarks

22Nationalities

223Employees

58PhDs

93Engineers

including

Our sustainability program: Altogether more sustainable,

4 objectives, 12 targets

OBJECTIVES

PRODUCTS

TARGETS PROGRESS

PEOPLE

OPERATIONS

GOVERNANCE

■ 75% beverage can recycling rate in Europe by 2015

■ All major new innovation projects through LCA by 2015

■ 10% of sales from innovative products by 2015

■ 60% improvement in recordable cases by 2014

■ No serious injuries in 2015

■ 50% improvement in employee contributions by 2014

■ 75% participation rate in the employee survey in 2014

■ 10% decrease in energy consumption per processed unit by 2015

■ Major European sites reaching ISO 50001 certification by 2015

■ 75% total landfill reduction by 2020

■ 100% of key suppliers joining the UNGC by 2015

■ 6-point improvement in the employee satisfaction rate in 2014

Developing, producing and selling

sustainable products: meeting

needs and reducing the environ-

mental impact of our customers

now and in the future.

Ensuring our employees are safe,

skilled and motivated, with ethical

practices, and that they comply

with regulations.

minimizing the environmental

impact of all our operations

in the following key areas:

energy, water and waste.

Subscribing to the highest levels

of transparency and ensuring a

responsible supply chain.

7

Needs improvement On trackMissedAchieved

Agenda

8

Constellium and sustainability

Life Cycle Assessment

Recycling is more than a driver for sustainability

What matters is End-of-life Recycling

Improving sorting and recycling by working together

Life-Cycle Assessment (LCA) is key to evaluating the

environmental impact of aluminium products

Life-Cycle Assesment (LCA) is a

technique to assess the

environmental impacts of a given

product throughout its life, from

raw material extraction for the

original manufacturing process

through to its usage and end-of-

life.

It is a key tool for aluminium

which has impacts upstream and

brings benefits downstream.

9

We performed third-party-

verified LCA-done by Quantis-

on an aluminium beverage can.

Focus on Greenhouse Gas Emissions

How does it work for a beverage can? (per T)

CO2 emissions

0.6 t

CO2 emissions

2-4 t

CO2 emissions

0 t

CO2 emissions

0.5 t

8,5 t Gap

10

CO2 emissions / t of primary alu produced

9 t

0

20

40

60

80

100

120

140

0% 20% 40% 60% 80% 100%

Climate change [g CO2 eq. / can]

Verified LCA for an aluminium beverage can: Recycling

is key!

Life Cycle Assessments 28/10/2015 11

European Aluminium

average primary

Even better with

higher recycling rates

Actual result for

2012 recycling rate-

69,5%

1. 69.5% is the EU+EFTA average recycling rate for 2012 (most recently published).

2. Germany, Belgium, Luxembourg, Sweden, Norway, Finland and Switzerland all perform at 90% or

higher recycling rates, according to the most recent data currently available (2012) – press release from

European Aluminium,March 16, 2015.

Aluminium Beverage Can Recycling rate

gC

O2eq

/ca

n

Target MPE

reycling rate

80% in 2020

Agenda

12

Constellium and sustainability

Life Cycle Assessment

Recycling is more than a driver for sustainability

What matters is End-of-life Recycling

Improving scrap collection and sorting by working together

Recycling aluminium makes economic and

environmental sense

Recycling is a business imperative due to aluminium’s intrinsic economic

value as scrap.

Aluminium can be endlessly melted down and recast with no loss of its

inherent properties or downgrade in material integrity.

=>No difference between aluminium made of scrap or virgin material!

Creating new metal from recycled aluminium only requires 5% of the

energy needed to produce primary aluminium from bauxite ore.

=> Unique position of aluminium for primary versus secondary source

Once collected and sorted, aluminium can be recycled and reused, avoiding

the use of primary metal and thus saving CO2 emissions.

13

Aluminium, a permanent material

Permanent materials are not consumed, they are merely used.

Permanent materials are moved from the ground or manufactured and used

in a range of applications and then “lent” to other applications after their

previous use.

They can be recycled, over and over again, without loss of properties.

14

Comparison with other materials

■ Plastic and paper recycling damages

molecules / fibres

Hence lowering properties

These materials cannot be

infinitely recycled.

■ Glass can also be infinitely recycled, even

though it can also lose some properties

(colour, transparency).

Constellium is part of Metal

Packaging Europe which has

developed the permanent

material concept.

Agenda

15

Constellium and sustainability

Life Cycle Assessment

Recycling is more than a driver for sustainability

What matters is End-of-life Recycling

Improving scrap collection and sorting by working together

Recycling takes place at all three stages of the

aluminium life-cycle. End-of-life recycling is key

Internal process scrap

created during transformation.

Customer scrap produced

during stamping, milling and

other processes

Recycling the scrap produced

during all production stages is

essential due to its cleanliness

and value. As it goes throughout

the complete production flow, this

runaround scrap does not replace

primary metal and therefore its

usage does not avoid CO2

emissions.

16

The end-of-life scrap from products

containing aluminium such as Used

Beverage Cans is a clear substitute for

primary metal, especially when recycling

it requires only 5% of the energy

otherwise used to produce primary

metal.

End-of-life recycling therefore delivers

clear CO2 savings.

End-of-life recycling is the most

efficient way to significantly

improve the CO2 footprint of

aluminium beverage cans.

Process scrap End-of-life scrap

The recycled content in a given product does not

reflect its environmental performance. Here is why.

1 2 3Recycled content

includes industry

process scrap and

the part of end of life

scrap versus process

scrap is rarely or never

mentioned!

Recycled content can

only work if there is

enough available

scrap, which is

essentially dependent

on scrap produced

many years ago

Increasing recycled

content of a product is

highly likely to happen

by decreasing the

recycled content of

another one!

17

Is increasing process scrap intake good for the planet?

NO! What matters is end of life scrap!

Metal

sourcing

Rolling/

RemeltingCan Mfg

Reference

Recycled

Content20% process

scrap

recycled

content

1.0 1.0

Metal

sourcing

Rolling/

RemeltingCan Mfg

Higher

Recycled

Content40% process

scrap

recycled

content

1.0 1.67 1.0

0.67

Sa

me

ou

tpu

t

More scrap generated more

material to be remelted more

energy used –

more recycled content

0.25

1.25

When Recycled Content includes process scrap, it can be

seen as a metrics for industrial inefficiencies with no

environmental value.

1

18

End-of-life scrap intake is limited by its availability

19

75% of the aluminium

ever produced is still

in use

Due to the long lifespan of most (especially

larger) aluminium applications such as

buildings and transport vehicles, the available

quantity of end-of-life aluminium scrap

today is limited to what was put on the

market many years ago.

Calling for higher recycled

content will not change

scrap availability

Alu

min

ium

in t

per

ye

ar

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013

Average product life ≈ 20 years

Available for

recycling now

20 years ago

production

2

Producer 1

Increasing the recycled content of one product may

happen by decreasing the recycled content of another

20

Producer 2VS.

Products 1 Products 2

3

In which case higher recycled content brings no

environmental benefit.

VS.Average recycled content for every

product

Limited availability: one product getting

more doesn’t change the overall

environmental impacts, as others get

less

Can 1 Can 2 Can 3 Can 1 Can 2 Can 3

21

3

Recycled content may be a good marketing incentive to

recycle paper or plastic but is not suited for metal.

Keeps same properties after recycling

Cannot be distinguished from virgin metal

Infinitely recyclable!

Has value which pays for recycling

■ Loses its properties after recycling

■ Low value of scrap/high cost of recycling

Recycled content provides an incentive to

recycle and is not limited by unsorted

scrap availability

Recycled content is not the right incentive

22

Paper & Plastic Metal

For packaging, good progress has

been made, but still more is needed:

23

What really matters is END-OF-LIFE RECYCLING

69,5%Beverage can

recycling rate

End of life recyling of aluminium

products is already very good: But more

needs to be done in terms of quality.

95%Recycling in building

95%recycling in

automotive

and transportation

25%Beverage can

recycling rate

1992

2012

Agenda

24

Constellium and sustainability

Life Cycle Assessment

Recycling is more than a driver for sustainability

What matters is End-of-life Recycling

Improving scrap collection and sorting by working together

Constellium aims to boost the overall sustainability

of our industry through end-of-life recycling

We make sure that as much aluminium as possible is re-used

at the end of the life of a product

25

Why improving collection and sorting?

To improve recycling practices, the focus must shift to improving the

recycled scrap collection and sorting process as a whole.

Once collected and sorted, scrap can be easily used in one product or

another.

Good sorting enables an alloy to be recycled in the same alloy category,

thus avoiding dilution or down-cycling.

This would increase the overall volume and quality of the available

content, rather than concentrating on the content of individual products.

At Constellium, we believe that we can only achieve this through

collaboration and partnership with all relevant stakeholders, within and

outside the aluminium industry.

26

Constellium recycling priorities

27

Joint recycling programs

Sustainability training-ON 28

The ONLY way to improve the CO2 footprint of

aluminium products through recycling is to increase

end-of-life recycling through industry-led programs

and cooperation with adequate organizations.

Every Can Counts

MPE

CR3/ IRT M2P

EA/IAI

Aluminium Stewardship

Initiative

Canibal

(Collection Machine)

Thank you!

29

We are

Constellium.

We are a global leader

in aluminium solutions whose

business is to materialize today’s

and tomorrow’s ideas.

For us, aluminium is more

than a metal.

it is part of the solution for

tomorrow’s lighter, faster

economy. Abundant, endlessly

recyclable and reusable,

aluminium’s unique properties

mean that, together with our

partners, we can shape a future

of infinite possibilities