Economic Performance Metrics
Alcan's principal measurement tools, in addition to traditional business ratios, are EVA (Economic Value Added) and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization).

EVA measures the difference between the return on capital and the cost of using that capital over a period of time. We use EVA as a means of measuring progress in terms of increasing shareholder value and also to consistently assess and prioritize investment and operating decisions.

Both EVA and EBITDA results are incorporated into each business unit's annual compensation formula.

Economic Value Added (EVA)*
Years ended 2000 and 2001 excluding purchase accounting adjustments

Although there have been significant EVA improvements in Alcan business groups, the EVA for 2001 illustrated in the adjacent chart is a result of several non-recurring charges. These include merger integration and restructuring costs, reserves related to the pending sale of our Burntisland facility in Scotland, and a new orientation for our Dubuc plant in Quebec, as well as environmental reserves set aside for spent potlining treatment and bauxite residue site remediation.

*EVA is a registered trademark of Stern Stewart & Co.

Our pursuit of Maximizing Value has two primary thrusts. First we scrutinize Alcan's businesses to identify high value-at-stake opportunities and establish priorities on the basis of value impact. Reviewing our value-at-stake opportunities and updating our agenda to resolve them is a regular activity. The second thrust is to develop, throughout Alcan, enhanced capabilities and an increased understanding of Maximizing Value. To this end, we launched a comprehensive training and capability-enhancement program - the most significant investment in Alcan's people that we have ever made. This program will continue through 2002.

Improved financial performance enhances corporate value while sustainability is considered to have both short-term and long-term benefits that will materially improve our financial performance.

Consolidated Balance Sheet Items Year ended December 31 (in millions of US$)
		2001
Operating working capital		$ 1,370
Capital assetsand goodwill (net)		12,925
Total assets		17,479
Total debt		4,091
Preference shares		160
Common shareholders' equity		8,631
EBITDA by Operating Segment* Year ended December 31 (in millions of US$)
		2001
Primary Metal		$ 1,117
Aluminum Fabrication, Americas & Asia		325
Aluminum Fabrication, Europe		159
Packaging		352
EBITDA from Operating Segments		$ 1,953

*Business groups at start of 2001