EX-99.2 3 dex992.htm SLIDES PRESENTED DURING ALCOA INC. THIRD QUARTER 2010 EARNINGS CALL

3 Quarter 2010 Earnings Conference October 7, 2010 Alcoa Logo Exhibit 99.2 rd

Alcoa Logo 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, 2009, Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and other reports filed with the Securities and Exchange Commission. 2

Chuck McLane Executive Vice President and Chief Financial Officer Alcoa Logo

Alcoa Logo 3 Quarter 2010 Financial Overview Income from Continuing Operations of $61 million, or $0.06 per share. Restructuring and other special items totaled $35 million, or $0.03 per share. Revenue up 2% sequentially, 15% versus 3Q’09 Adjusted EBITDA of $602 million, 11% Margin Free Cash Flow of $176 million Cash Sustainability targets on track Debt balance reduced by $491 million, extended debt maturity profile Debt to Capital of 35.7%, 270 basis points lower sequentially 4 rd

Alcoa Logo Revenue Change by Market 3% (14%) 10% 10% (2%) 5% 11% (7%) 2% (1%) 6% 24% 9% 49% 18% (24%) (10%) 27% 35% 24% 3Q’10 Third Party Revenue Sequential Change Year-Over-Year Change 5 14% 3% 7% 5% 4% 2% 14% 5% 14% 32% Aerospace Automotive B&C Comm. Transport Industrial Products IGT Packaging Distribution/Other Alumina Primary Metals

Alcoa Logo Sequential Income Statement Summary $ Millions 2Q’10 3Q’10 Change Sales $5,187 $5,287 $100 Cost of Goods Sold $4,210 $4,413 $203 COGS % Sales 81.2% 83.5% 2.3 % pts. Selling, General Administrative, Other $208 $232 $24 SGA % Sales 4.0% 4.4% 0.4 % pts. Restructuring and Other Charges $30 $2 ($28) Effective Tax Rate 25.0% (81.7%) NA Income from Continuing Operations $137 $61 ($76) Income Per Diluted Share $0.13 $0.06 ($0.07) 6

Alcoa Logo $ Millions After-Tax & Non- Controlling Interests Earnings Per Share Income Statement Classification Segment Restructuring $1 Restructuring Corporate Discrete Tax Items $38 Taxes Corporate Special Items: ($74) Sao Luis Recovery Costs ($23) Cost of Goods Sold Alumina Aviles Flood Impact ($13) Revenue, COGS & Other Income/Expense Primary Metals & Corporate Debt Tender Offer ($9) Interest Expense Corporate Mark-to-Market Derivatives ($29) Other Income/Expense Corporate Total ($35) ($0.03) 3 Quarter Restructuring and Special Items 7 rd

Alcoa Logo 3 Quarter 2010 vs. 2 Quarter 2010 Earnings Bridge Income from Continuing Operations excluding Restructuring & Special Items ($ millions) 8 See appendix for reconciliation $139 ($54) $35 ($28) $13 ($9) $96 rd nd

Alcoa Logo Alumina 3 Quarter Highlights 4 Quarter Outlook 3 Quarter Business Conditions 9 3Q 09 2Q 10 3Q 10 Production (kmt) 3,614 3,890 4,047 3 Party Shipments (kmt) 2,191 2,264 2,423 3 Party Revenue ($MM) 530 701 717 ATOI ($MM) 65 94 70 - Realized third-party alumina price down 5% - Negative currency impact of $26 million resulting from weaker USD against Australian dollar - Higher production and equipment costs at Sao Luis adversely impacted results by $25 million - Impact of tax rate change in Brazil of $42 million - Pricing to follow two-month lag on LME - Continued benefits from cash sustainability initiatives - Production projected to increase 150 KMT 3 Quarter Performance Bridge $ Millions $94 $70 ($24) $15 ($26) $13 ($19) ($25) $42 rd rd rd rd rd th

Alcoa Logo Primary Metals 3 Quarter Highlights 3 Quarter Business Conditions 4 Quarter Outlook 10 3Q 09 2Q 10 3Q 10 Production (kmt) 881 893 891 3 Party Shipments (kmt) 698 699 708 3 Party Revenue ($MM) 1,362 1,710 1,688 3 Party Price ($/MT) 1,972 2,309 2,261 ATOI ($MM) (8) 109 78 - Realized pricing down 2% sequentially - Lower alumina and LME-linked power costs based on quarter lag - Negative currency impact of $5 million - Cash sustainability initiatives offset increases in raw material costs - Higher non-LME linked energy costs of $3 million - Pricing to follow 15-day lag to LME - Production expected to increase 25 KMT as Aviles ramps-up - Continued productivity benefits from cash sustainability initiatives - Expect higher carbon product costs 3 Quarter Performance Bridge $ Millions $109 ($5) ($8) $78 ($31) $5 ($3) $2 $9 rd rd rd th rd rd rd

Alcoa Logo Flat Rolled Products 11 4 Quarter Outlook 3 Quarter Business Conditions 3 Quarter Highlights ATOI $ Millions 3Q 09 2Q 10 3Q 10 Flat Rolled Products, excl Russia, China & Other 37 71 61 Russia, China & Other (27) 0 5 Total ATOI 10 71 66 - Higher volumes in Russia, North America, and China - Tennessee fire negatively impacted quarter by $3 million - Russia profitable for second consecutive quarter - Continued strong demand in most regions offset by normal seasonal declines in the North American packaging business - Pricing and mix remain strong - Higher energy costs expected - Minimal impact expected from the Tennessee fire 3 Quarter Performance Bridge $ Millions $71 ($1) $18 $3 $1 ($19) ($7) $66 rd rd rd th

Alcoa Logo Engineered Products and Solutions 3 Quarter Business Conditions 4 Quarter Outlook 3 Quarter Highlights 12 - Seasonal impact from customer year-end shutdowns - Continued benefits from cash sustainability initiatives $ Millions 3Q 09 2Q 10 3Q 10 3 Party Revenue 1,128 1,122 1,173 ATOI 75 107 114 Adjusted EBITDA % of Revenue 13% 17% 18% 3 Quarter Performance Bridge $ Millions $107 ($7) $8 $1 $9 ($4) $114 rd rd rd th rd

Alcoa Logo 3 Quarter 2010 Cash Flow Overview 13 See appendix for free cash flow reconciliation 3Q’10 FCF $176 million $843 million of cash ($ Millions) 3Q'09 2Q'10 3Q'10 Net Income $124 $170 $109 DD&A 342 364 358 Change in Working Capital 100 (422) 213 Pension Contributions (33) (22) (26) Taxes / Other Adjustments (349) 210 (262) Cash From Operations $184 $300 $392 Dividends to Shareholders (30) (31) (31) Change in Debt (284) 35 (555) Distributions to Noncontrolling Interest (14) (41) (41) Contributions from Noncontrolling Interest 74 37 57 Other Financing Activities 0 3 (4) Cash From Financing Activities ($254) $3 ($574) Capital Expenditures (370) (213) (216) Other Investing Activities 646 (33) (128) Cash From Investing Activities $276 ($246) ($344) Debt-to-Cap at 35.7% rd

Alcoa Logo We Are Focused on Driving Shareholder Value 14 *Procurement reduction of $2.5 billion Overhead reduction of $500 million Capital expenditures of $1.25 billion Days Working Capital reduction of 2 days *Procurement and other productivity Responding Rapidly Tennessee hot mill operational Aviles ramping-up to 93kmt run-rate by year- end Sao Luis at 2.9 MMT run rate; going to 3.5 MMT run rate by year-end Meeting Targets New baseline performance levels in Flat Rolled and EPS groups Strengthened balance sheet FCF Positive Driving Results

Klaus Kleinfeld Chairman and Chief Executive Officer Alcoa Logo

Alcoa Logo Market Conditions in 2010 Alcoa End Markets: Current Assessment of 2010 vs. 2009 Conditions Source: Alcoa analysis 16

Alcoa Logo 1.6 0.9 10% 2010 Projected Primary Aluminum Consumption by Region (in mmt) 2010 Demand Growth Forecast at 13% Versus 2009 Russia Brazil Asia w/o China North America Europe China 2009 vs. 2010 Projected Growth Rates 2010 Estimated Consumption -15% -15% -5% 16.5 4% -5% 1.0 16% *Other 7% -2% *Other consists of: Middle East, Latin America ex Brazil and Rest of World 39.6 2009 Actual 2010 Forecast 21% 17 Source: Alcoa Analysis 6% 2009 Global Demand Growth Rate: -6% 2010 Global Demand Growth Rate 13% (2010 ex China: 8%) 4% 6% India 2.9 -15% 14% 0%

Alcoa Logo 0% 100% 200% 300% 400% 500% 600% 700% 800% 900% Midwest Japan Europe Consumption Driving Inventory Decline & High Premiums LME at 40 days Non-LME at 19days 59 days of consumption 18 Global Inventories 4 Days Lower vs. 2Q’10 $119 / MT $192 / MT $141 / MT Regional Premiums Near All-Time Highs Global Inventories Falling

Alcoa Logo 2010 Annualized Production (thru Aug) 24,090 Demand (23,070) Net Surplus 1,020 Exports to China, Net (200) Net Surplus 820 China Western World 2010 Primary Aluminum Surplus Reduced By 180 KMT 2010 Annualized Production (thru July) 16,500 Demand (16,500) Imports from West, Net 200 Net Surplus 200 Surplus Source: Alcoa estimates, Brook Hunt, CRU, CNIA, IAI 19 Surplus 2010E Aluminum Supply / Demand Balance (in kmt)

Alcoa Logo 2010E Alumina Supply / Demand Balance (in kmt) Source: Alcoa estimates, CRU, CNIA, IAI Balanced 2010 Global Alumina in Balance China Western World 20 2010 Annualized Production 28,250 Imports from Western World 4,200 Supply 32,450 Demand (32,000) (Deficit) / Surplus 450 2010 Annualized Production 50,500 Exports to China (4,200) Supply 46,300 Demand (46,500) (Deficit) / Surplus (200)

Alcoa Logo Continued Value Creation From The Alumina Leader Alumina financial and strategic overview Adjusted EBITDA per Metric Ton 21 LME Adjusted EBITDA/MT 100% 110% 95% 105% Alcoa 3 Party Alumina Sales Price % LME – Sao Luis to reach full capacity by year-end – Record production in 2010 – Unparalleled growth potential – Ma’aden, lowest cost refinery online in 2014 – Current capacity of 18.1 MMT Alcoa: The Alumina Leader 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 72 62 44 48 68 75 110 104 81 20 48 1,549 1,447 1,350 1,433 1,719 1,900 2,570 2,641 2,572 1,664 2,116 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD Average = ~$70/MT rd

Alcoa Logo 487 460 321 336 418 398 784 626 392 (159) 280 1,549 1,447 1,350 1,433 1,719 1,900 2,570 2,641 2,572 1,664 2,116 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD Driving Primary Metal To A New Profitability Level Primary Metals financial and strategic overview Adjusted EBITDA per Metric Ton LME Adjusted EBITDA/MT 22 – Optimizing smelter portfolio; reducing costs – Ma’aden, lowest cost smelter online in 2013 – Improving cost curve position Alcoa: Poised For Profitable Growth Average = ~$410/MT Global Leader Power To Grow Lowering Cost 4.5 MMT of Capacity 85% of Power Secured Until 2025 Ma’aden +185KMT

Alcoa Logo Rolled Products Positioned to Substantially Improve Returns Flat Rolled Products financial and strategic overview Adjusted EBITDA & Adjusted EBITDA % Sales 23 573 541 495 479 531 620 536 498 254 224 413 Adjusted EBITDA $Millions Adjusted EBITDA % Sales YTD 2010 3 Party Sales by Market 80% Utilization 11% 11% 11% 10% 9% 9% 6% 5% 3% 4% 9% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD Distribution 15% Automotive 7% B&C 5% Commercial Transport 5% Industrial /Other 14% Packaging 43% Aerospace 11% rd

Alcoa Logo Aerospace 47% IGT 11% B&C 19% Commercial Transport 13% Automotive 4% Other 6% EPS Strong Platform for Profitable Growth Engineered Products & Solutions financial and strategic overview Adjusted EBITDA & Adjusted EBITDA % Sales 24 368 436 287 356 495 536 676 783 922 630 559 Adjusted EBITDA $Millions Adjusted EBITDA % Sales YTD 2010 3 Party Sales by Market 70% Utilization 65% Utilization 11% 11% 8% 9% 12% 11% 12% 13% 15% 13% 17% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD rd

Alcoa Logo Aggressively Pursuing 2010 Operational Targets Procurement Overhead $500 Total Capex $1,250 Working Capital 35 2010 Cash Sustainability Operational Targets and Actual Performance $ Millions $431 $785 42 $ Millions $ Millions Days Working Capital $2,500 $2,154 2010 YTD 2010 Target 2010 YTD 2010 Target 2010 YTD 2010 Target 3Q’10 2010 Target Procurement and other productivity Total Capex includes investments in Ma’aden project 25 1 2 2 1

Alcoa Logo Alcoa Lives Its Values Every Day 26 Total Recordable Incident Rate Lost Workday Incident Rate Sustainability Leadership 9 th Consecutive Year Safety Incident Rate History and Significant Accreditations in 2010 Best Ever Safety Performance Ranked Third of 339 Companies Named to World & North American Indexes Alcoa Primary Aluminum Certified 3.86 3.57 2.26 2.03 1.85 1.48 1.40 1.50 1.42 1.32 1.30 0.29 0.31 0.19 0.19 0.13 0.13 0.11 0.15 0.14 0.15 0.09 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Alcoa Logo Alcoa Is Driving Value Today And Over The Long-Term 27 – Repositioned Alcoa driving growth and profitability – Lean lessons learned in downturn now sustainable practices – Disciplined execution underlies all Alcoa activities – Focus on driving shareholder returns Alcoa: Driving Value Alcoa Performance Strengthening (Adjusted EBITDA Margin) 20% 17% 15% 14% 15% 14% 19% 16% 12% 2% 13% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD

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Alcoa Logo Annual Sensitivity Summary 29 Currency Annual Net Income Sensitivity +/- 10% versus USD Australian $ +/- $75 million Brazilian $ +/- $50 million Euro € +/- $40 million Canadian $ +/- $35 million +/- $100/MT = +/- $200 million LME Aluminum Annual Net Income Sensitivity

Alcoa Logo Effective Tax Rate Effective tax rate, excluding discrete tax items is a non-GAAP financial measure. Management believes that the Effective tax rate, excluding discrete tax items is meaningful to investors because it provides a view of Alcoa’s operational tax rate. 30 $ Millions 1Q’10 2Q’10 3Q’10 YTD’10 (Loss) income from continuing operations before income taxes ($88) $228 $60 $200 Provision for income taxes $84 $57 ($49) $92 Effective tax rate as reported (95.5%) 25.0% (81.7%) 46.0% Discrete tax provisions: Medicare Part-D $79 -- $79 Transaction-related and other items $33 ($16) ($38) ($21) Discrete tax items attributable to Noncontrolling Interest ($30) ($30) Subtotal - Discrete tax (benefits) provisions $112 ($16) ($68) $28 (Benefit) Provision for income taxes excluding discrete tax (benefits) provisions ($28) $73 $19 $64 Effective tax rate excluding discrete tax (benefits) provisions 31.8% 32.0% 31.7% 32.0%

Alcoa Logo Reconciliation of ATOI to Consolidated Net (Loss) Income Attributable to Alcoa 31 (in millions) 1Q09 2Q09 3Q09 4Q09 2009 1Q10 2Q10 3Q10 Total segment ATOI $ (143) $ (132) $ 142 $ (101) $ (234) $ 306 $ 381 $ 328 Unallocated amounts (net of tax): Impact of LIFO 29 39 80 87 235 (14) (3) (2) Interest income 1 8 (1) 4 12 3 3 3 Interest expense (74) (75) (78) (79) (306) (77) (77) (91) Noncontrolling interests (10) 5 (47) (9) (61) (22) (34) (48) Corporate expense (71) (70) (71) (92) (304) (67) (59) (71) Restructuring and other charges (46) (56) (3) (50) (155) (122) (21) 1 Discontinued operations (17) (142) 4 (11) (166) (7) (1) – Other (166) (31) 51 (26) (172) (201) (53) (59) Consolidated net (loss) income attributable to Alcoa $ (497) $ (454) $ 77 $ (277) $ (1,151) $ (201) $ 136 $ 61

Alcoa Logo Reconciliation of Adjusted Income 32 (in millions) Quarter ended June 30, 2010 September 30, 2010 Net income attributable to Alcoa $ 136 $ 61 Loss from discontinued operations (1) – Income from continuing operations attributable to Alcoa 137 61 Restructuring and other charges 20 (1) Discrete tax items* (16) (38) Special items** (2) 74 Income from continuing operations attributable to Alcoa – as adjusted $ 139 $ 96 Income from continuing operations attributable to Alcoa – as adjusted is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of Alcoa excluding the impacts of restructuring and other charges, discrete tax items, and special items. There can be no assurances that additional restructuring and other charges, discrete tax items, and special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Income from continuing operations attributable to Alcoa determined under GAAP as well as Income from continuing operations attributable to Alcoa – as adjusted. * Discrete tax items include the following: for the quarter ended September 30, 2010, a benefit for the reversal of a valuation allowance related to net operating losses of an international subsidiary that are now realizable due to a settlement with a tax authority ($41); a charge for a tax rate change in Brazil ($11); and a benefit for the recovery of a portion of the unfavorable impact included in the quarter ended March 31, 2010 related to unbenefitted losses in Russia, China, and Italy ($8); and, for the quarter ended June 30, 2010, a benefit for a change in a Canadian provincial tax law permitting tax returns to be filed in U.S. dollars ($24), a charge based on settlement discussions of several matters with international taxing authorities ($18), and a benefit for the recovery of a portion of the unfavorable impact included in the quarter ended March 31, 2010 related to unbenefitted losses in Russia, China, and Italy ($10). ** Special items include the following: for the quarter ended September 30, 2010, unfavorable mark-to-market changes in derivative contracts ($29), recovery costs associated with the São Luís, Brazil facility due to a power outage and failure of a ship unloader in the first half of 2010 ($23), restart costs and lost volumes related to a June 2010 flood at the Avilés smelter in Spain ($13), and a net charge for the early repayment of Notes set to mature in 2011 through 2013 due to the premiums paid under the tender offers and call option (partially offset by gains from the termination of related in-the-money interest rate swaps) ($9); and, for the quarter ended June 30, 2010, favorable mark-to-market changes in derivative contracts ($22), a charge for costs associated with the potential strike and successful execution of a new agreement with the USW ($13), and a charge related to an unfavorable decision in Alcoa’s lawsuit against Luminant related to the Rockdale, TX facility ($7).

Alcoa Logo Reconciliation of Free Cash Flow 33 Quarter ended Nine months ended (in millions) September 30, 2010 Cash provided from operations $ 392 $ 891 Capital expenditures (216) (650) Free cash flow $ 176 $ 241 Free Cash Flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered necessary to maintain and expand Alcoa’s asset base and are expected to generate future cash flows from operations. It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.

Alcoa Logo Reconciliation of Alcoa Adjusted EBITDA 34 ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 3Q10 2010 YTD Net income (loss) attributable to Alcoa $ 1,484 $ 908 $ 420 $ 938 $ 1,310 $ 1,233 $ 2,248 $ 2,564 $ (74) $ (1,151) $ 61 $ (4) Add: Net income attributable to noncontrolling interests 306 205 181 212 233 259 436 365 221 61 48 104 Cumulative effect of accounting changes 5 – (34) 47 – 2 – – – – – – (Income) loss from discontinued operations (73) 5 101 – 27 50 (22) 250 303 166 – 8 Provision (benefit) for income taxes 859 524 307 367 546 464 853 1,623 342 (574) (49) 92 Other (income) expenses, net (136) (295) (175) (278) (266) (478) (236) (1,920) (59) (161) 43 48 Interest expense 427 371 350 314 271 339 384 401 407 470 139 376 Restructuring and other charges (1) 530 398 (28) (29) 266 507 268 939 237 2 219 Provision for depreciation, depletion, and amortization 1,123 1,144 1,037 1,110 1,142 1,227 1,252 1,244 1,234 1,311 358 1,079 Adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 3,994 $ 3,392 $ 2,585 $ 2,682 $ 3,234 $ 3,362 $ 5,422 $ 4,795 $ 3,313 $ 359 $ 602 $ 1,922 Sales $19,947 $19,906 $17,691 $18,879 $21,370 $24,149 $28,950 $29,280 $26,901 $18,439 $ 5,287 $15,361 Adjusted EBITDA/Sales (Adjusted EBITDA Margin) 20% 17% 15% 14% 15% 14% 19% 16% 12% 2% 11% 13% Alcoa’s definition of Adjusted EBITDA is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.

Alcoa Logo Reconciliation of Alumina Adjusted EBITDA 35 ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD After-tax operating income (ATOI) $ 585 $ 471 $ 315 $ 415 $ 632 $ 682 $ 1,050 $ 956 $ 727 $ 112 $ 236 Add: Depreciation, depletion, and amortization 163 144 139 147 153 172 192 267 268 292 299 Equity (income) loss (3) (1) (1) – (1) – 2 (1) (7) (8) (7) Income taxes 279 184 130 161 240 246 428 340 277 (22) 46 Other (12) (17) (14) (55) (46) (8) (6) 2 (26) (92) (2) Adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 1,012 $ 781 $ 569 $ 668 $ 978 $ 1,092 $ 1,666 $ 1,564 $ 1,239 $ 282 $ 572 Production (thousand metric tons) (kmt) 13,968 12,527 13,027 13,841 14,343 14,598 15,128 15,084 15,256 14,265 11,803 Adjusted EBITDA/Production ($ per metric ton) 72 62 44 48 68 75 110 104 81 20 48 Alcoa’s definition of Adjusted EBITDA is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other nonoperating items. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.

Alcoa Logo Reconciliation of Primary Metals Adjusted EBITDA 36 ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD After-tax operating income (ATOI) $ 1,000 $ 905 $ 650 $ 657 $ 808 $ 822 $ 1,760 $ 1,445 $ 931 $ (612) $ 310 Add: Depreciation, depletion, and amortization 311 327 300 310 326 368 395 410 503 560 431 Equity (income) loss (50) (52) (44) (55) (58) 12 (82) (57) (2) 26 (1) Income taxes 505 434 266 256 314 307 726 542 172 (365) 15 Other (41) (8) (47) 12 20 (96) (13) (27) (32) (176) (6) Adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 1,725 $ 1,606 $ 1,125 $ 1,180 $ 1,410 $ 1,413 $ 2,786 $ 2,313 $ 1,572 $ (567) $ 749 Production (thousand metric tons) (kmt) 3,539 3,488 3,500 3,508 3,376 3,554 3,552 3,693 4,007 3,564 2,673 Adjusted EBITDA/Production ($ per metric ton) 487 460 321 336 418 398 784 626 392 (159) 280 Alcoa’s definition of Adjusted EBITDA is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other nonoperating items. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.

Alcoa Logo Reconciliation of Flat-Rolled Products Adjusted EBITDA 37 ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD After-tax operating income (ATOI) $ 296 $ 253 $ 225 $ 222 $ 254 $ 278 $ 233 $ 178 $ (3) $ (49) $ 167 Add: Depreciation, depletion, and amortization 153 167 184 190 200 220 223 227 216 227 173 Equity (income) loss (3) 2 4 1 1 – 2 – – – – Income taxes 126 124 90 71 75 121 58 92 35 48 72 Other 1 (5) (8) (5) 1 1 20 1 6 (2) 1 Adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 573 $ 541 $ 495 $ 479 $ 531 $ 620 $ 536 $ 498 $ 254 $ 224 $ 413 Total sales $ 5,167 $ 4,868 $ 4,571 $ 4,768 $ 6,042 $ 7,081 $ 8,610 $ 9,597 $ 9,184 $ 6,182 $ 4,786 Adjusted EBITDA/Total sales 11% 11% 11% 10% 9% 9% 6% 5% 3% 4% 9% Alcoa’s definition of Adjusted EBITDA is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other nonoperating items. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.

Alcoa Logo Reconciliation of Engineered Products and Solutions Adjusted EBITDA 38 ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 3Q09 2Q10 3Q10 2010 YTD After-tax operating income (ATOI) $ 125 $ 189 $ 63 $ 124 $ 156 $ 271 $ 365 $ 435 $ 533 $ 315 $ 75 $ 107 $ 114 $ 302 Add: Depreciation, depletion, and amortization 165 186 150 166 168 160 152 163 165 177 41 38 37 116 Equity (income) loss (1) – – – – – 6 – – (2) (1) – (1) (2) Income taxes 79 61 39 55 65 116 155 192 222 139 33 48 63 142 Other – – 35 11 106 (11) (2) (7) 2 1 2 – 1 1 Adjusted Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 368 $ 436 $ 287 $ 356 $ 495 $ 536 $ 676 $ 783 $ 922 $ 630 $ 150 $ 193 $ 214 $ 559 Total sales $ 3,386 $ 4,141 $ 3,492 $ 3,905 $ 4,283 $ 4,773 $ 5,428 $ 5,834 $ 6,199 $ 4,689 $ 1,128 $ 1,122 $ 1,173 $ 3,369 Adjusted EBITDA/Total sales 11% 11% 8% 9% 12% 11% 12% 13% 15% 13% 13% 17% 18% 17% Alcoa’s definition of Adjusted EBITDA is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other nonoperating items. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.