EX-99 2 dex99.htm ALCOA INC. PRESENTATION DATED MARCH 2009

Presentation March 2009 Exhibit 99

2 Forward Looking Statements Today’s discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. Alcoa’s actual results or actions may differ materially from those projected in the forward-looking statements. For a summary of the specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, please refer to Alcoa’s Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission.

3 Highlights Comprehensive plan to optimize cost structure Proposed actions strengthen world class market positions – Bauxite mining #1 – Alumina refining #1 – Smelting capacity #1 – Downstream businesses #1 / #2 Broad-based management commitment to plan execution Complementary offerings and reduced dividend further enhance financial flexibility Attractive long-term aluminum fundamentals Businesses with #1 / #2 market share will account for 90% of Alcoa's overall revenue

4 Accelerated portfolio actions Curtailments Headcount reduction Managing Along the Three Strategic Priorities Strategic Priority “Downturn Actions” Profitable Growth Value Creation Disciplined Execution Leverage technology Market share growth Procurement savings Corporate overhead reduction Line-item quantification Clear accountability Cash and profitability focus Capital spend reduction Ongoing business improvement Attractive asset values globally Longer-Term Opportunities Portfolio optimization Return focused Competitive cost structure Balance sheet strength

5 Getting Ahead of the Curve Since July 2008, Alcoa has implemented a number of actions to reduce cost and preserve/strengthen financial flexibility 7/11/08 Downsized Electrical and Electronic Solutions Honduran & Mexican operations through headcount reduction of 1,240 9/30/08 Curtailed 150,000 mt at Rockdale smelter and further reduced headcount by 660 in addition to 160 in June 10/7/08 Announced halt of all non-critical capital spend 10/23/08 Reduced production at Point Comfort refinery by 25% (550,000 mt) 11/10/08 Curtailed additional 350,000 mt aluminum production over global smelting system 1/6/09 Announced initial actions to address economic downturn 9/17/08 Suspended share repurchase program 10/6/08 Downsized Power & Propulsion through headcount reduction of 250 12/22/08 Cash-free swap of soft alloy extrusion share for Elkem smelter share Today Taking decisive action to reposition Alcoa

6 Managing for Value Creation – Repositioning Alcoa Procurement Efficiencies Capex Reductions Working Capital Initiatives Completing existing growth capex in 2009 Reducing to maintenance levels in 2010 Metrics to maintain and control at the business unit level Improvement levers for Inventory, A/R and A/P Leverage market environment Joint business / procurement effort BENEFITS Expanded Action Plans Initiatives Total Financial Impact >$2,000M cost savings by 2010 $850M of capex in 2010 $800M cash improvement in 2009 Overhead Rationalizations Phase I: 20% Reduction Phase II: Zero Based Budgeting Match to footprint $400M cost savings by 2010 Improved cash generation Lower, more competitive cost structure Increased operating leverage

7 Over $2 billion of Procurement Savings Reduction Targets by Spend Category 2009E 2010E 5% 29% 34% 8% 21% 6% 7% 15% 6% 4% 5% 18% 2% 2% 1% 4% Business Unit Metals Transportation Non Smelter Energy Corporate Services & IT Indirect – Maintenance Repair & Overhaul Indirect – Services Strategic Raw Material – Flat Rolled Products Strategic Raw Material – Alumina and Primary Metals

8 Procurement Success in Key Inputs Average 2H’08 Target Year-End 2009 Lowest Price Achieved -48% -58% Target Year-End 2009 Lowest Price Achieved -23% -37% Average 2H’08 Alcoa Global Caustic Price ($ / dry mt) ($ / mt) ~$100M targeted cost savings in 2010 ~$300M targeted cost savings in 2010 ~10% of refining costs ~13% of smelting costs Alcoa Global Coke Price

9 100% 80% 2008A 2010E $400M of Savings in Overhead Rationalizations Streamlined Footprint Headcount reductions Consolidation of workflow Benefit reductions Renegotiation of 3 rd party contracts Reduction in travel Elimination of consulting ~$400M

10 Total Capex $850 $1,800 $3,438 2008A 2009E 2010E 2010 Capital Expenditures of $850M -48% ($ in millions) Completion of growth initiatives enables capex reductions — Juruti bauxite mine — São Luís refining Investments in 1 quartile facilities from 2004-2009 better position Alcoa for the upturn — Juruti bauxite mine — 1,700 kmt additional refining capacity (1) — 407 kmt additional smelting capacity (2) — China, Russia, Engineered Products & Solutions -53% (1) 600 kmtpa at Pinjarra and 1,100 kmt at São Luís (2) 63 kmtpa at São Luís and 344 kmt at Fjarðaál Key Opportunities st

11 Working Capital Reduction of $800M ~$800M increase in cash in 2009 Targeting Reduction Through Benchmarking -28% Total working capital (Days) Days Reduction Inventory (Days) Accounts Receivable (Days) Accounts Payable (Days) 100% 72% Dec '08A Dec '09E

12 Improving global cost positions Negotiating power contracts Headcount reductions Lowering raw material costs Operational Initiatives Strengthen Core Businesses Alumina and Primary Metals Flat Rolled Products Engineered Products and Solutions Leading franchises in challenged end-markets Poised to leverage market positions Rationalization of capacity World-class technologies with leading market positions Significant incremental value creation opportunities Portfolio optimization

13 62% 68% 75% 100% 3Q '08A Target 1Q '09E 1Q '09E 4Q '09E 60% 71% 75% 100% 3Q '08A Target 1Q '09E 1Q '09E 4Q '09E ~30th ~50th Improving Global Cost Positions Cost of Aluminum Produced Cost of Alumina Produced -32% -38% (Cash Cost $ / mt) (Cash Cost $ / mt) Current global cost curve position (percentile) Note: Decrease in each chart represents the average cost point for that quarter -29% -40%

14 Historically Consistent Refining EBITDA / MT Margins Refining EBITDA / MT Note: Refining EBITDA is the sum of after-tax operating income, income taxes and depreciation, depletion and amortization less equity income for Alumina. Please refer to reconciliation in appendix -49% 8 months $50 $47 $73 $64 $45 $52 $71 $75 $111 $104 $83 $1,362 $1,365 $1,549 $1,447 $1,350 $1,433 $1,719 $1,900 $2,570 $2,572 $2,638 $1,312 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Refining EBITDA / mt Average LME aluminum price / mt

15 Historically Consistent Smelting EBITDA / MT Margins Smelting EBITDA / MT Note: Smelting EBITDA is the sum of after-tax operating income, income taxes and depreciation, depletion and amortization less equity income for Primary Metals. Please refer to reconciliation in appendix $290 $324 $499 $463 $335 $333 $412 $425 $788 $634 $400 $1,362 $1,365 $1,549 $1,447 $1,350 $1,433 $1,719 $1,900 $2,570 $2,572 $1,312 $2,638 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Smelting EBITDA / mt Average LME aluminum price / mt -49% 8 months

16 Rolled Products: Strength in Attractive Mid-Stream Sectors Packaging/Can Sheet Aerospace Sheet, Plate & Hard Alloy Lithographic Sheet Marine Plate Automotive Brazing Hard Alloy, Oil & Gas

17 Alcoa Power and Propulsion #1 in Turbine Airfoils for Aerospace #1 in Airfoils for Industrial Gas Turbines #1 producer of Aluminum Structural Forgings #1 producer in Aluminum Truck Wheels #1 in Aerospace Fastening Systems Successful acquisition integration Broadest range of patented & proprietary products Share gain through superior products, customer engagement and regional expansion Continuous operational productivity improvement Annual Growth (04-08) Sales 14% p.a. Net Margin 27% p.a. Note: Financial results indexed – 2004 = 100 Annual Growth (04-08) Sales 14% p.a. Net Margin 44% p.a. Engineered Products and Solutions Poised for Further Value Creation Alcoa Fastening Systems Sales Net Margin 2004A 2008A Sales Net Margin 2004A 2008A

18 Long Term Outlook Remains Positive (1) Source: Alcoa analysis Environment • Total energy consumption to increase by 54% until 2025 – >60% from developing countries • Person Transport rates +40% by 2030 • Greenhouse gas regulation Light Weight High Strength Durable Highly Conductive Non- Corrosive Malleable Recyclable Relative Price 37 70 2008 2018 Demographics Urbanization Aluminum Benefits Aluminum Demand (million mt) (1) Mega Trends (1) Global population • 2006: 6.6 billion • 2025: 7.9 billion • 2050: 9.1 billion Aluminum Outlook Population living in cities • 2006: > 50% • 2030: > 60% 6% CAGR

19 Financial Plan Enhances Flexibility Capital markets transactions 150 million shares of common equity ($860 million at 3/13/09 closing price) $250 million convertible notes Quarterly dividend cut to $0.03 per share – conserves over $400 million of cash annually Shining Prospect joint venture unwind to generate over $1 billion in net proceeds Strengthens Balance Sheet and Positions Alcoa to Capitalize on Strategic Opportunities

20 Pro Forma Balance Sheet / Liquidity Overview Capitalization Summary Liquidity Snapshot (1) Per Alcoa 10-K for the period ended December 31, 2008 (2) Pro forma for the financing plan, including $855 million of remaining net proceeds from the unwind of the Shining Prospect JV and additional debt incurred of $565 million as of March 13, 2009 Up to $5.2 billion of liquidity $1.9 billion 364-day facility $3.3 billion 5-year facility Manageable near-term debt maturities $56 million maturing in 2009 $511 million maturing in 2010 Pro Forma 12/31/2008 (1) 12/31/2008 (2) Short-term debt $2,013 $650 Long-term debt 8,565 8,565 Convertible debt – 250 Total debt $10,578 $9,465 Minority interest $2,597 $2,597 Shareholders' equity 11,735 12,564 Total capitalization $24,910 $24,626 Debt to capitalization 42.5% 38.4%

21 Cash Flow and Balance Sheet Impacts Reposition Alcoa Operational Financial Procurement Efficiencies >$2,000M cost savings by 2010 Overhead Rationalizations $400M cost savings by 2010 Capex Reductions $850M annual capex post 2009 Working Capital Initiatives $800M improvement in cash in 2009 Equity and Equity-Linked Financings >$1,100M gross proceeds Dividend Reduction >$400M annual cash savings Asset Dispositions $1,100M net proceeds

22 Highlights Comprehensive plan to optimize cost structure Proposed actions strengthen world class market positions – Bauxite mining #1 – Alumina refining #1 – Smelting capacity #1 – Downstream businesses #1 / #2 Broad-based management commitment to plan execution Complementary offerings and reduced dividend further enhance financial flexibility Attractive long-term aluminum fundamentals Businesses with #1 / #2 market share will account for 90% of Alcoa's overall revenue

24 Reconciliation of Refining EBITDA / MT ($ in millions) Alumina 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 After-tax operating income (ATOI) $318 $307 $585 $471 $315 $415 $632 $682 $1,050 $956 $727 Add: Depreciation, depletion, and amortization 159 161 163 144 139 147 153 172 192 267 268 Equity (income) loss (1) – (3) (1) (1) – (1) – 2 (1) (7) Income taxes 174 159 279 184 130 161 240 246 428 340 277 EBITDA $650 $627 $1,024 $798 $583 $723 $1,024 $1,100 $1,672 $1,562 $1,265 Production (thousand metric tons) (kmt) 12,938 13,273 13,968 12,527 13,027 13,841 14,343 14,598 15,128 15,084 15,256 EBITDA/Production $50 $47 $73 $64 $45 $52 $71 $75 $111 $104 $83 EBITDA is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net earnings (loss), operating earnings (loss), ATOI, cash flow provided by operating activities or other income or cash flow data prepared in accordance with GAAP. However, Alcoa’s management believes that EBITDA may provide additional information with respect to the Company’s performance or ability to meet its financial obligations. The ratio of EBITDA to production is an additional measure of financial performance. Because EBITDA excludes some, but not all, items that affect net earnings and may vary among companies, the EBITDA presented by Alcoa may not be comparable to similarly titled measures of other companies.

25 Reconciliation of Smelting EBITDA / MT ($ in millions) Primary Metals 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 After-tax operating income (ATOI) $372 $535 $1,000 $905 $650 $657 $808 $822 $1,760 $1,445 $931 Add: Depreciation, depletion, and amortization 176 216 311 327 300 310 326 368 395 410 503 Equity (income) loss (27) (42) (50) (52) (44) (55) (58) 12 (82) (57) (2) Income taxes 196 214 505 434 266 256 314 307 726 542 172 EBITDA $717 $923 $1,766 $1,614 $1,172 $1,168 $1,390 $1,509 $2,799 $2,340 $1,604 Production (thousand metric tons) (kmt) 2,471 2,851 3,539 3,488 3,500 3,508 3,376 3,554 3,552 3,693 4,007 EBITDA/Production $290 $324 $499 $463 $335 $333 $412 $425 $788 $634 $400 EBITDA is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net earnings (loss), operating earnings (loss), ATOI, cash flow provided by operating activities or other income or cash flow data prepared in accordance with GAAP. However, Alcoa’s management believes that EBITDA may provide additional information with respect to the Company’s performance or ability to meet its financial obligations. The ratio of EBITDA to production is an additional measure of financial performance. Because EBITDA excludes some, but not all, items that affect net earnings and may vary among companies, the EBITDA presented by Alcoa may not be comparable to similarly titled measures of other companies.