EX-99.2 3 d334347dex992.htm SLIDES PRESENTED DURING ALCOA INC. FIRST QUARTER 2012 EARNINGS CALL

[Alcoa logo] 1 st Quarter Earnings Conference April 10 th , 2012 Exhibit 99.2

[Alcoa logo] Cautionary Statement This presentation contains statements that relate to future events and expectations and as such constitute forward-looking statements. Forward-looking statements include those containing such words as “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “outlook,” “plans,” “projects,” “should,” “targets,” “will,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions, or projections about the future other than statements of historical fact are forward-looking statements, including, without limitation, forecasts concerning global demand growth for aluminum, end-market conditions, supply/demand balances, and growth opportunities for aluminum in automotive, aerospace and other applications, trend projections, targeted financial results or operating performance, and statements about Alcoa’s strategies, outlook, and business and financial prospects. Forward- looking statements are subject to a number of known and unknown risks, uncertainties, and other factors and are not guarantees of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: (a) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices for primary aluminum, alumina, and other products, and fluctuations in indexed-based and spot prices for alumina; (b) deterioration in global economic and financial market conditions generally; (c) unfavorable changes in the markets served by Alcoa, including automotive and commercial transportation, aerospace, building and construction, distribution, packaging, defense, and industrial gas turbine; (d) the impact of changes in foreign currency exchange rates on costs and results, particularly the Australian dollar, Brazilian real, Canadian dollar, euro, and Norwegian kroner; (e) increases in energy costs, including electricity, natural gas, and fuel oil, or the unavailability or interruption of energy supplies; (f) increases in the costs of other raw materials, including calcined petroleum coke, caustic soda, and liquid pitch; (g) Alcoa’s inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations (including moving its alumina refining and aluminum smelting businesses down on the industry cost curves and increasing revenues in its Global Rolled Products and Engineered Products and Solutions segments) anticipated from its restructuring programs and productivity improvement, cash sustainability, and other initiatives; (h) Alcoa's inability to realize expected benefits from newly constructed, expanded, or acquired facilities or from international joint ventures as planned and by targeted completion dates, including the joint venture in Saudi Arabia, the upstream operations in Brazil, and the investments in hydropower projects in Brazil; (i) political, economic, and regulatory risks in the countries in which Alcoa operates or sells products, including unfavorable changes in laws and governmental policies, civil unrest, or other events beyond Alcoa’s control; (j) the outcome of contingencies, including legal proceedings, government investigations, and environmental remediation; (k) the business or financial condition of key customers, suppliers, and business partners; (l) adverse changes in tax rates or benefits; (m) adverse changes in discount rates or investment returns on pension assets; and (n) the other risk factors summarized in Alcoa's Form 10-K for the year ended December 31, 2011 and other reports filed with the Securities and Exchange Commission. Alcoa disclaims any obligation to update publicly any forward- looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Some of the information included in this presentation is derived from Alcoa’s consolidated financial information but is not presented in Alcoa’s financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most directly comparable GAAP financial measures and management’s rationale for the use of the non-GAAP financial measures can be found in the Appendix to this presentation and on our website at www.alcoa.com under the “Invest” section. Any reference during the discussion today to EBITDA means adjusted EBITDA, for which we have provided calculations and reconciliations in the Appendix and on our website. 2 Forward-Looking Statements Non-GAAP Financial Measures

[Alcoa logo] Chuck McLane Executive Vice President and Chief Financial Officer

[Alcoa logo] 1 st Quarter 2012 Financial Overview Income from Continuing Operations of $94 million, or $0.09 per share; Excluding impact of restructuring and other special items: Income from continuing operations of $105 million, or $0.10 per share Revenue at $6.0 billion Cash Sustainability actions continue to deliver Adjusted EBITDA of $624 million, up 40% sequentially Free Cash Flow of negative $506 million Days Working Capital at 32 days, a record low first quarter Debt-to-Capital of 35.6% Cash on hand of $1.7 billion Record results in Midstream and Downstream businesses 4 See appendix for reconciliations to GAAP and additional information

[Alcoa logo] Income Statement Summary $ Millions, except per-share amounts 1Q’11 4Q’11 1Q’12 Year Change Sequential Change Sales $5,958 $5,989 $6,006 $48 $17 Cost of Goods Sold $4,715 $5,228 $5,098 $383 ($130) COGS % Sales 79.1% 87.3% 84.9% 5.8 % pts. (2.4 % pts.) Selling, General Administrative, Other $245 $268 $241 ($4) ($27) SGA % Sales 4.1% 4.5% 4.0% (0.1 % pts.) (0.5 % pts.) Restructuring and Other Charges $6 $232 $10 $4 ($222) Effective Tax Rate 27.3% 31.0% 28.3% 1.0 % pts. (2.7 % pts.) Income (Loss) from Continuing Operations $309 ($193) $94 ($215) $287 Income (Loss) Per Diluted Share $0.27 ($0.18) $0.09 ($0.18) $0.27 5

[Alcoa logo] Restructuring and Other Special Items $ Millions, except per-share amounts 1Q’11 4Q’11 1Q’12 Income (Loss) from Continuing Operations $309 ($193) $94 Income (Loss) Per Diluted Share $0.27 ($0.18) $0.09 Restructuring Related ($5) ($159) ($7) Discrete Tax Items - ($12) - Mark-to-Market Energy Contracts $5 $8 ($4) Australia Asset Sale - $18 - Uninsured Losses - ($14) - Acquisition Costs ($8) - - Special Items ($8) ($159) ($11) Income (Loss) from Continuing Ops excl Special Items $317 ($34) $105 Income (Loss) per Diluted Share excl Special Items $0.28 ($0.03) $0.10 6 See appendix for Adjusted Income (Loss) reconciliation

[Alcoa logo] 1 st Quarter 2012 vs. 4 th Quarter 2011 Earnings Bridge 7 See appendix for Adjusted Income (Loss) reconciliation Income (Loss) from Continuing Operations Excluding Restructuring & Other Special Items ($ millions) $17m +$171m -$49m 105 LME 18 4Q 2011 (34) (20) Cost Increases / Other 1Q 2012 Pension (1) (2) Raw Materials (12) Energy (15) Productivity 108 Price / Mix 34 Volume 29 Currency

[Alcoa logo] 1Q 11 4Q 11 1Q 12 Production (kmt) 4,024 4,178 4,153 3 rd Party Shipments (kmt) 2,206 2,378 2,293 3 rd Party Revenue ($ Millions) 810 847 775 ATOI ($ Millions) 142 125 35 Alumina 1 st Quarter Results 2 nd Quarter Outlook 1 st Quarter Business Highlights 8 Revenue down 8.5% sequentially Alumina index pricing lagging LME linked prices Maintenance planning activities in Australia limited Q1 maintenance and production impact Strong productivity improvements offset nearly all volume and cost headwinds Land sale in Australia in 4Q 2011 1 st Quarter Performance Bridge 34% of 3rd party shipments on spot or alumina price index; other pricing to follow two-month lag to LME Alumina surplus due to smelter curtailments continuing to negatively impact alumina price index Curtailments to reduce production by 100k tons Maintenance timing shifted to Q2, with $10m ATOI impact Productivity gains to continue

[Alcoa logo] Primary Metals 1 st Quarter Results 1 st Quarter Business Highlights 2 nd Quarter Outlook 9 Improving business conditions created positive pressure on regional premiums and product mix Favorable pricing limited seasonal energy increases, but reduced energy sales income Days working capital down 7 days from Q1 2011 Productivity gains and mix improvements more than offset headwinds 1 st Quarter Performance Bridge Pricing to follow 15-day lag to LME Production to decline by 25k metric tons as Spanish curtailments begin Raw materials pricing to improve, with favorable $10m ATOI impact Outage at Rockdale and Warrick power facilities, with negative $10m ATOI impact Massena fire impact expected at between $9m and $11m in ATOI Productivity gains to continue 1Q 11 4Q 11 1Q 12 Production (kmt) 904 962 951 3 rd Party Shipments (kmt) 698 805 771 3 rd Party Revenue ($ Millions) 1,980 1,991 1,944 3 rd Party Price ($/MT) 2,682 2,374 2,433 ATOI ($ Millions) 202 (32) 10

[Alcoa logo] Record Q1 ATOI and highest ever EBITDA/mt Aerospace and NA automotive demand remains strong European markets stabilizing but less than year ago levels Days working capital down 3 days from Q1 2011 Favorable productivity impacts results 10 2 nd Quarter Outlook 1 st Quarter Business Highlights 1 st Quarter Results 1 st Quarter Performance Bridge Global Rolled Products See appendix for reconciliations to GAAP and additional information Seasonal demand increases in can stock Improvement in Russia and China as shipments expected to increase European markets remain uncertain; pricing pressures persist Productivity gains to continue ATOI $ Millions 1Q 11 4Q 11 1Q 12 Global Rolled Products, excl Russia, China & Other 84 32 100 Russia, China & Other (3) (6) (4) Total ATOI 81 26 96 Adjusted EBITDA/mt 368 225 430

[Alcoa logo] $ Millions 1Q 11 4Q 11 1Q 12 3 rd Party Revenue 1,247 1,355 1,390 ATOI 130 122 155 Adjusted EBITDA Margin 18% 16% 19% Engineered Products and Solutions 1 st Quarter Performance Bridge 1 st Quarter Business Highlights 1 st Quarter Results 11% revenue growth from Q1 2011 27% sequential improvement in ATOI Record quarterly adjusted EBITDA margin at 19.2% Days working capital down 4 days from Q1 2011 Favorable productivity driven by process improvements and procurement savings 2 nd Quarter Outlook See appendix for reconciliations to GAAP and additional information Unfavorable impact of Massena fire estimated in $8m to $12m ATOI range European Building & Construction market down versus 1 st quarter 2012 Share gains through innovation continues across all market sectors Productivity gains to continue 11

[Alcoa logo] ($ Millions) 1Q’11 4Q’11 1Q’12 Net Income (Loss) $366 ($163) $99 DD&A $361 $368 $369 Change in Working Capital ($651) $797 ($289) Pension Contributions ($31) ($119) ($213) Taxes / Other Adjustments ($281) $259 ($202) Cash from Operations ($236) $1,142 ($236) Dividends to Shareholders ($33) ($33) ($33) Change in Debt $101 $52 $357 Distributions to Noncontrolling Interest ($97) ($4) ($26) Contributions from Noncontrolling Interest $121 $33 $90 Other Financing Activities $33 $1 $6 Cash from Financing Activities $125 $49 $394 Capital Expenditures ($204) ($486) ($270) Other Investing Activities ($348) ($97) ($80) Cash from Investing Activities ($552) ($583) ($350) 12 1Q’12 FCF ($506) million $1.7 billion of cash Debt-to-Cap at 35.6% DWC 7 Day reduction vs 1Q 2011 See appendix for Free Cash Flow and Days Working Capital reconciliations First Quarter 2012 Cash Flow Overview

[Alcoa logo] Record Low Days for First Quarter Sustainable Reductions Maintained in Days Working Capital 13 Days Working Capital since Fourth Quarter 2008 32 38 38 39 43 44 41 48 55 20 25 30 35 40 45 50 55 33 50 43 -7 days 27 30 10 days lower 3 days lower 3 days lower

[Alcoa logo] Proactive Cash Sustainability Actions… Strong Start To 2012 14

[Alcoa logo] Klaus Kleinfeld Chairman and Chief Executive Officer

[Alcoa logo] 2012 Market Conditions 16 Alcoa End Markets: Current Assessment of 2012 vs. 2011 Source: Alcoa analysis

[Alcoa logo] 11% 15% 2012 2011 1% -0.3% 6% 3% 10% 8% 15% 6% 10% 10% 3% 5% 4% 4% 1.9 1.0 0.9 China Europe North America Asia ex. China Other India Brazil Russia 21.1 6.7 5.9 5.8 3.5 2011 Actual 2012 Forecast 2011 Global Demand Growth Rate: 10 % 2012 Global Demand Growth Rate 7% vs. 2011 (World ex China 4%) *Other consists of: Middle East, Latin America ex Brazil and ROW 2012 Projected Primary Aluminum Consumption Growth Rates (%) by Region (in mmt) End Market Conditions Support Continued Demand Growth 46.8 2012 Estimated Consumption 17 Source: Alcoa analysis

[Alcoa logo] Metal Deficit Remains, Alumina Moves To Moderate Surplus Primary Aluminum Source: Alcoa estimates, Brook Hunt, CRU, CNIA, IAI (000 mt) China Rest of World Feb 2012 Annualized Rate 19,400 25,200 2012 Production Added 2,500 550 2012 Capacity Curtailed (1,100) (250) Total Supply 20,800 25,600 Demand (21,150) (25,685) Net Balance (350) (85) 18 Alumina (000 mt) China Rest of World 2011 Ending Rate 38,700 57,500 2012 Production Curtailed 0 0 Imports/(Exports) 2,500 (2,500) Total Supply 41,200 55,000 Demand (41,200) (54,000) Net Balance 0 1,000 2012E Supply/Demand Balance (in kmt)

[Alcoa logo] Rapid Expansion To The West - East Also Growing 19 Chinese Primary Aluminum Production by Region, 2011 and 2015, in 000 mt 48% 52% 37% 63% CAGR in Production 11.7% Source: CRU, CRU, Brook Hunt and SMM 6,640 7,485 2,350 4,250 6,710 Northwest Central East South 2015 27,500 13,000 +54% 17,800 2,100 2011 2,765

[Alcoa logo] Move to the West - No Significant Improvement 20 Source: CNIA, CRU, IAI, NDRC, Rhodium Group, Ministry of Water, Alcoa estimates

[Alcoa logo] China Inventory Rises, ROW Stable Physical Premiums Move Sharply Higher Strong Rise In Premiums, Inventory Ex China Is Stable $122 /MT $205 /MT $194 /MT Source: Alcoa estimates, LME, SHFE, IAI, Marubeni, Platt’s Metals Week and Metal Bulletin Regional Premiums and Aluminum Inventories 21 Indexed to January 2009 Q1 2012 10.3 3.5 1.6 1.4 0.2. 1.3 2.3 Q4 2011 9.8 4.3 .7 1.5 0.2 0.8 2.3 Producer-held Japan Port Off Exchange LME On Warrant LME Canceled Warrant China

[Alcoa logo] Macro Indicators Showing Signs of Stabilization Sources: Bloomberg, *Confidence figures set at 100 in January 2011 for comparability ; 1 EC Commission EU Confidence, 2 National Bureau of Statistics China Consumer Confidence, 3 University of Michigan Consumer Sentiment . PMI: Institute for Supply Management , Markit, China Federation of Logistics & Purchasing 22

[Alcoa logo] Executing the Alcoa Strategy: The Three Strategic Priorities 23

[Alcoa logo] Driving Profitable Growth To Accelerate Shareholder Value 24 Upstream 2015 Cost Curve Changes Refining Cost Curve Position Smelting Cost Curve Position Midstream 2013 Revenue Targets Downstream 2013 Revenue Targets 2010 Strategy Executed 30th 25th 2010 Strategy Executed 50th 45th 40th 30th 23rd 51st 41st

[Alcoa logo] Alumina: Improve Performance Through Cost and Price Focus Source: CRU Spot and Australia export - ABARE, Baltic Exchange, CRU, Metal Bulletin, PACE, Alcoa estimate 25

[Alcoa logo] Aluminum: Achieve Low Cost Position and Optimize Margins Driving Down the Cost Curve – 10 points Optimizing Cast House Profitability – Restructure smelting portfolio (3-5 pts) – Modernize operations (2-3 pts) – Saudi Arabia JV, lowest cost smelter (2 pts) – Productivity improvements (1-2 pts) Restructuring High Cost Assets Profiting Through Modernization Billet Slab T-Bar Foundry Rod $262M Margin* in 2011 Portovesme Dependent on business conditions La Coruña Avilés Smelting: Utilize inventory to reline, but do not restart pots Targeted smaller curtailments based upon cost & strategic situation Full curtailment of selected plants Permanent shutdowns of selected plants Baie Comeau, Canada Massena East, USA 2-3 points down cost curve Repowers Quebec smelters until 2040 Agreement provides 30-40 years of competitive cost power 26 Tennessee Rockdale (2 lines) * Margin refers to incremental valued added product margin over P1020 primary aluminum

[Alcoa logo] Saudi Investments Drive Profitable Growth Carbon Plant Area Port – Liquid Pitch Tanks Potline Hot Reversing Mill Coolant Pit On Time AND On Budget 27

[Alcoa logo] GRP Targets for 2013 Global Rolled Products: Well On Track To Meet 2013 Targets 28 Achieved 55% of 2013 Revenue Growth Target In Year One *~ $1.5B Revenue Growth From the Market and ~ $1.0B Revenue Growth From New Products and Share Gains 55% of Growth Target * $1.4 $ Billions

[Alcoa logo] B737 A320 B777 B747 A380 Total (Including others not shown) +27.0% +15.4% +177.8% +30.1% +12.8% +20.6% 1,480 1,165 2013 2011 Build Rates GRP Aerospace Portfolio: Significant Growth by 2013 GRP Aero Strategy Capture strong market growth with robust build rates for aircraft and our superior reliability Deliver value through our differentiated capabilities and our unique and globally positioned facilities Focus on product and demand development for Al- Li alloy Maintain market leadership with high performance products and innovations Revenues +22% by 2013 Source for build rates: Airline Monitor 29

[Alcoa logo] 30 Packaging GRP Profitable Growth: Expanding in Key Markets Differentiated capabilities Globally positioned facilities Product development for Al-Li alloy Leading position in core regions Capacity expansion, e.g. Saudi Arabia JV Innovation, e.g. Al bottle, shaped can Light weighting drives Al penetration Capacity expansion, e.g. Davenport Process innovation, e.g. bonding technology Global foot print Innovation Aerospace Automotive NA Consumer Electronics % Market CAGR ‘11-’13 34% 18% 13% Build rates Source: Airline Monitor, CRU, Aluminum Association, Ducker Forecast, Alcoa analysis 4 up to 20% (China)

[Alcoa logo] Driving Profitable Growth in Emerging Markets Russia – Growing Profitably China – Positioning For Growth Establishing as key domestic supplier in growing consumer electronics and automotive markets Positive EBITDA in 2011, focusing on differentiation CPI JV signed: Platform for growth Growing can sheet volumes faster than the market End & Tab Line, Samara Bohai Flat Rolled Products Key domestic supplier regionally in growing Packaging, Aero and Commercial Transportation markets 2011 record EBITDA and ATOI 39% YOY revenue growth in 2011 Developing new applications and markets for growth 31

[Alcoa logo] Achieved 44% of 2013 Revenue Growth Target in Year One EPS Targets for 2013 32 EPS: Strong Markets and Innovation Drive Profitable Growth * *~ $600M Revenue Growth From the Market and ~ $1.0B Revenue Growth From New Products and Share Gains 44% of Growth Target $0.7 $ Billions

[Alcoa logo] Fasteners #1 Airfoils #1 Forgings #1 Extrusions #2 2012 vs. 2011* Markets and Competitive Position Airfoils #1 Aluminum Wheels #1 NA Fasteners #1 1 - 2% Global Aerospace Heavy Duty Truck Industrial Gas Turbine Non-Residential Construction 13-14% Global 7-12% NA (3-8%) W. Eur. (5%) NA (8%) Europe *Current assessment of 2012 vs. 2011 market conditions NA Systems #1 European Systems #4 % EPS 2011 Revenue 33 EPS: Grow Through Leading Position in Strong End Markets 47% 16% 10% 19%

[Alcoa logo] Targeting ~$1 billion of increased revenue by 2013 versus 2010 through new products and share gains Industrial Gas Turbines Advanced Cooling Systems High Gradient Single Crystal Airfoils Commercial Transportation Wheel Torque Solutions LvL ONE® Wheels Fastening Systems Medium Duty Truck driveshafts and wheels Oil and Gas Riser Systems Drill Pipe Systems Commercial Aerospace New Programs: Fasteners and Extrusions Next Generation Engine Airfoils Defense Joint Strike Fighter Forged Bulkheads Tactical Vehicles Fasteners, Forgings & Extrusions Building and Construction Advanced Surface Coatings Ultra Thermal Doors and Windows Active Façade Systems Impact Resistant EPS: Add Share Gain Through Product Innovation 34

[Alcoa logo] Bolt On Acquisitions EPS: Strategic Focus on Acquisitions in Targeted Segments Demicron Fairchild Republic & Van Petty 2002 2008 2009 Traco 2010 Transdigm Fasteners 2011 35

[Alcoa logo] Strong Start into 2012 – Delivering on our Promises 36

[Alcoa logo] 37 [Alcoa logo]

[Alcoa logo] Kelly Pasterick Director, Investor Relations Alcoa 390 Park Avenue New York, NY 10022-4608 Telephone: (212) 836-2674 www.alcoa.com Additional Information 38

[Alcoa logo] Annual Sensitivity Summary 39 Currency Annual Net Income Sensitivity +/- $100/MT = +/- $220 million LME Aluminum Annual Net Income Sensitivity Australian $ +/- $11 million per 0.01 change in USD / AUD Brazilian $ +/- $ 3 million per 0.01 change in BRL / USD Euro € +/- $ 2 million per 0.01 change in USD / EUR Canadian $ +/- $ 5 million per 0.01 change in CAD / USD Norwegian Kroner +/- $ 5 million per 0.10 change in NOK / USD

[Alcoa logo] Revenue Change by Market 1Q’12 Third-Party Revenue Sequential Change Year-Over-Year Change 40 *GRP restated all Distribution revenue from the Distribution/othe r market to the various end user markets. *With GRP restating Distribution revenue the Distribution/other market now shows negative revenue. Mainly consists of the Corporate SAB 104 revenue recognition adjustment which is negative.

[Alcoa logo] 41 Reconciliation of ATOI to Consolidated Net Income (Loss) Attributable to Alcoa (in millions) 1Q11 2Q11 3Q11 4Q11 2011 1Q12 Total segment ATOI $ 555 $ 635 $ 462 $ 241 $ 1,893 $ 296 Unallocated amounts (net of tax): Impact of LIFO (24) (27) 2 11 (38) – Interest expense (72) (106) (81) (81) (340) (80) Noncontrolling interests (58) (55) (53) (28) (194) (5) Corporate expense (67) (76) (76) (71) (290) (64) Restructuring and other charges (6) (22) (7) (161) (196) (7) Discontinued operations (1) (4) – 2 (3) – Other (19) (23) (75) (104) (221) (46) Consolidated net income (loss) attributable to Alcoa $ 308 $ 322 $ 172 $ (191) $ 611 $ 94

[Alcoa logo] 42 Reconciliation of Adjusted Income

[Alcoa logo] 43 Reconciliation of Free Cash Flow (in millions) Quarter ended Year ended March 31, 2011 December 31, 2011 March 31, 2012 December 31, 2011 Cash from operations $ (236) $ 1,142 $ (236) $ 2,193 Capital expenditures (204) (486) (270) (1,287) Free cash flow $ (440) $ 656 $ (506) $ 906 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] 44 Reconciliation of Alcoa Adjusted EBITDA ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q11 4Q11 1Q12 Net income (loss) attributable to Alcoa $ 420 $ 938 $ 1,310 $ 1,233 $ 2,248 $ 2,564 $ (74) $ (1,151) $ 254 $ 611 $ 308 $ (191) $ 94 Add: Net income attributable to noncontrolling interests 181 212 233 259 436 365 221 61 138 194 58 28 5 Cumulative effect of accounting changes (34) 47 – 2 – – – – – – – – – Loss (income) from discontinued operations 101 – 27 50 (22) 250 303 166 8 3 1 (2) – Provision (benefit) for income taxes 307 367 546 464 853 1,623 342 (574) 148 255 138 (74) 39 Other (income) expenses, net (175) (278) (266) (478) (236) (1,920) (59) (161) 5 (87) (28) (40) (16) Interest expense 350 314 271 339 384 401 407 470 494 524 111 125 123 Restructuring and other charges 398 (28) (29) 266 507 268 939 237 207 281 6 232 10 Provision for depreciation, depletion, and amortization 1,037 1,110 1,142 1,227 1,252 1,244 1,234 1,311 1,450 1,479 361 367 369 Adjusted EBITDA $ 2,585 $ 2,682 $ 3,234 $ 3,362 $ 5,422 $ 4,795 $ 3,313 $ 359 $ 2,704 $ 3,260 $ 955 $ 445 $ 624 Sales $17,691 $18,879 $21,370 $24,149 $28,950 $29,280 $26,901 $18,439 $21,013 $24,951 $ 5,958 $ 5,989 $ 6,006 Adjusted EBITDA Margin 15% 14% 15% 14% 19% 16% 12% 2% 13% 13% 16% 7% 10% Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) 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] 45 Reconciliation of Alumina Adjusted EBITDA

[Alcoa logo] 46 Reconciliation of Primary Metals Adjusted EBITDA ($ in millions, except per metric ton amounts) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q11 4Q11 1Q12 After-tax operating income (ATOI) $ 650 $ 657 $ 808 $ 822 $ 1,760 $ 1,445 $ 931 $ (612) $ 488 $ 481 $ 202 $ (32) $ 10 Add: Depreciation, depletion, and amortization 300 310 326 368 395 410 503 560 571 556 141 136 135 Equity (income) loss (44) (55) (58) 12 (82) (57) (2) 26 (1) 7 (1) 3 2 Income taxes 266 256 314 307 726 542 172 (365) 96 92 53 (37) (13) Other (47) 12 20 (96) (13) (27) (32) (176) (7) 2 1 1 – Adjusted EBITDA $ 1,125 $ 1,180 $ 1,410 $ 1,413 $ 2,786 $ 2,313 $ 1,572 $ (567) $ 1,147 $ 1,138 $ 396 $ 71 $ 134 Production (thousand metric tons) (kmt) 3,500 3,508 3,376 3,554 3,552 3,693 4,007 3,564 3,586 3,775 904 962 951 Adjusted EBITDA/Production ($ per metric ton) $ 321 $ 336 $ 418 $ 398 $ 784 $ 626 $ 392 $ (159) $ 320 $ 301 $ 438 $ 74 $ 141 Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) 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] 47 Reconciliation of Global Rolled Products Adjusted EBITDA ($ in millions, except per metric ton amounts) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q11 4Q11 1Q12 After-tax operating income (ATOI) $ 225 $ 222 $ 254 $ 278 $ 233 $ 178 $ (3) $ (49) $ 220 $ 266 $ 81 $ 26 $ 96 Add: Depreciation, depletion, and amortization 184 190 200 220 223 227 216 227 238 237 58 58 57 Equity loss 4 1 1 – 2 – – – – 3 – 3 1 Income taxes 90 71 75 121 58 92 35 48 92 104 33 10 49 Other (8) (5) 1 1 20 1 6 (2) 1 1 1 1 – Adjusted EBITDA $ 495 $ 479 $ 531 $ 620 $ 536 $ 498 $ 254 $ 224 $ 551 $ 611 $ 173 $ 98 $ 203 Total shipments (thousand metric tons) (kmt) 1,814 1,893 2,136 2,250 2,376 2,482 2,361 1,888 1,755 1,866 470 436 472 Adjusted EBITDA/Total shipments ($ per metric ton) $ 273 $ 253 $ 249 $ 276 $ 226 $ 201 $ 108 $ 119 $ 314 $ 327 $ 368 $ 225 $ 430 Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) 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] 48 Reconciliation of Engineered Products and Solutions Adjusted EBITDA ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q11 4Q11 1Q12 After-tax operating income (ATOI) $ 63 $ 124 $ 156 $ 271 $ 365 $ 435 $ 533 $ 315 $ 415 $ 539 $ 130 $ 122 $ 155 Add: Depreciation, depletion, and amortization 150 166 168 160 152 163 165 177 154 158 38 39 40 Equity loss (income) – – – – 6 – – (2) (2) (1) (1) – – Income taxes 39 55 65 116 155 192 222 139 195 260 62 59 72 Other 35 11 106 (11) (2) (7) 2 1 – (1) – – – Adjusted EBITDA $ 287 $ 356 $ 495 $ 536 $ 676 $ 783 $ 922 $ 630 $ 762 $ 955 $ 229 $ 220 $ 267 Total sales $ 3,492 $ 3,905 $ 4,283 $ 4,773 $ 5,428 $ 5,834 $ 6,199 $ 4,689 $ 4,584 $ 5,345 $ 1,247 $ 1,355 $ 1,390 Adjusted EBITDA Margin 8% 9% 12% 11% 12% 13% 15% 13% 17% 18% 18% 16% 19% Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) 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] 49 Days Working Capital ($ in millions) Quarter ended March 31, 2011 December 31, 2011 March 31, 2012 Receivables from customers, less allowances $ 2,030 $ 1,571 $ 1,526 Add: Deferred purchase price receivable * – – 254 Receivables from customers, less allowances, as adjusted 2,030 1,571 1,780 Add: Inventories 3,018 2,899 3,097 Less: Accounts payable, trade 2,495 2,692 2,734 Working Capital $ 2,553 $ 1,778 $ 2,143 Sales $ 5,958 $ 5,989 $ 6,006 Days Working Capital 39 27 32 Days Working Capital = Working Capital divided by (Sales/number of days in the quarter). * On March 30, 2012, Alcoa finalized an arrangement with a financial institution to sell certain customer receivables on a recurring basis in exchange for cash and a deferred purchase price receivable. Under this arrangement, Alcoa sold $304 million of customer receivables in exchange for $50 million in cash and a $254 million deferred purchase price receivable. As a result, customer receivables as of March 31, 2012 were reduced by $304 million. Alcoa is adding back the $254 million for the purposes of the Days Working Capital calculation.