Trends in Major Markets Aerospace Automotive Packaging  and Consumer  22 Alcoa supplies aluminum sheet used to make 100 billion cans  each year. Large Commercial Aircraft Deliveries Rebounding – 2004 marked the end of a downturn in deliveries of large commercial aircraft, increasing 3% over 2003, and forecast to increase an additional 20% for 2005, driven by strong growth for air travel. The packaged food industry continues conversion from glass to plastic bottles, with packages that integrate the closure into the overall bottle design. Alcoa participates with dispensing  closures for the dairy, food, and beverage industries. Alcoa is  also a premier supplier of popu- lar printed shrink sleeve labels, designed to fit the new packages’ contours and provide a 360- degree billboard for product and brand graphics.  A 6% to 8% fuel savings can be realized for every 10% reduction in weight from substituting  aluminum for steel. Aluminum absorbs nearly twice as much crash energy as steel, and during a crash, aluminum folds like an accordion, letting the vehicle – not its passengers – absorb more of the crash forces. Lighter vehi- cles generally accelerate quicker and require shorter stopping  distances than heavier vehicles.  The Aluminum Association World Revenue Passenger  Miles grew 11.4% in 2004 – a dramatic increase from 2003 negative 1.4% growth and nearly a 4% increase over 2000 levels. The long-term growth trend is expected to average  5%, driving the requirement  for over 15,000 new aircraft in the next 20 years. Reynolds brand products are well-positioned as their primary benefit is in ease of food prepa- ration, as underscored by Reynolds Wrap achieving  the #1 brand equity rating in  the U.S.  Harris Spring 2004  EquiTrend Brand Study . Convenience continues to be  a major trend in home food  management with nearly half  of U.S. homemakers saying  that convenience is most impor- tant in the foods they eat. NPD Group Alcoa revenues in this market come from a range of products for automotive applications: from chassis, suspension, and drivetrain components to crash management systems to body structures, forged and cast wheels, as well as wiring har- nesses and other electrical  distribution systems. Alcoa aerospace products are widely used in the manufactur- ing of aircraft and aircraft engines, including high-technol- ogy airfoils for jet engines, fastening systems, and advanced alloys for the fuselage, wings, landing gear, and wheels. Aero- space products are also serving defense and space applications. More than 60% of Alcoa aerospace revenues come from propulsion and fastening  systems. 25.5% $6.0 billion 11.5% $2.7 billion 9.4% $2.2 billion Alcoa Total Revenues: $23.5 billion 100+ passengers Source: Various market contributors  0 200 400 600 800 1,000 05 10 95 00 lbs. per vehicle Source: Ducker 0 50 100 150 200 250 300 03 04 00 02 01 Total imports  billions of lbs. Source: CRU Alcoa 0 2 4 6 8 10 03 04 00 02 01 Middle East  & Africa Europe Latin America  & Mexico U.S. & Canada Pacific millions of dollars Source: A.C. Nielsen – FDM with Wal*Mart Scanning 3,000 3,100 3,200 3,300 3,400 3,500 3,600 03 04 00 02 01 Source: CRU Alcoa Smelter-grade  alumina millions Source: Global Insight (formerly DRI) 0 5 10 15 20 03 04 00 02 01 Source: CRU Alcoa Smelter-grade  alumina percent Source: Various market contributors –5 0 5 10 15 08 99 00 01 02 03 04 05 06 07 Regional Air Travel Growth North American Light Vehicle and Auto Sales Latin America  & Mexico U.S. Market – Foil, Wraps  and Bags Latin America  Aluminum Consumption  for Beverage Cans North American Light Vehicle Aluminum Content Large Commercial Aircraft  Demand Alcoa segments that sell products to this market:  Flat-Rolled Products,  Engineered Products, Other Alcoa segments that sell products to this market:  Flat-Rolled Products,  Engineered Products, Other  Alcoa segments that sell products to this market:  Flat-Rolled Products,  Packaging and Consumer