EX-99.2 3 d378146dex992.htm SLIDES PRESENTED DURING ALCOA INC. SECOND QUARTER 2012 EARNINGS CALL

July 9, 2012 2nd Quarter Earnings Conference nd Exhibit 99.2 [Alcoa logo]

[Alcoa logo] Cautionary Statement 2 Forward-Looking Statements 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, in each case as planned and by targeted completion dates, from sales of non- core assets, such as the announced sale of the Tapoco hydroelectric project, or from newly constructed, expanded, or acquired facilities, such as the upstream operations in Brazil and the investments in hydropower projects in Brazil, or from international joint ventures, including the joint venture in Saudi Arabia; (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. Non-GAAP Financial Measures 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.

[Alcoa logo] Chuck McLane Executive Vice President and Chief Financial Officer July 9, 2012

[Alcoa logo] Income Statement Summary 5 $ Millions, except per-share amounts 2Q’11 1Q’12 2Q’12 Sequential Change Sales $6,585 $6,006 $5,963 ($43) Cost of Goods Sold $5,247 $5,098 $5,154 $56 COGS % Sales 79.7% 84.9% 86.4% 1.5 % pts. Selling, General Administrative, Other $253 $241 $245 $4 SGA % Sales 3.8% 4.0% 4.1% 0.1 % pts. Other (Income) Expense, Net ($50) ($16) $22 $38 Restructuring and Other Charges $34 $10 $15 $5 Effective Tax Rate 26.3% 28.3% (216.7%) (245 % pts.) Income (Loss) from Continuing Operations $326 $94 ($2) ($96) Income (Loss) Per Diluted Share $0.28 $0.09 $0.00 ($0.09)

[Alcoa logo] Restructuring and Other Special Items 6 See appendix for Adjusted Income reconciliation $ Millions, except per-share amounts 1Q’12 2Q’12 Income Statement Classification Segment Income (Loss) from Continuing Ops $94 ($2) Income (Loss) Per Diluted Share $0.09 $0.00 Restructuring -Related ($7) ($10) Restructuring and Other Charges Corporate Discrete Tax Items - ($10) Income Taxes Corporate Mark -to-Market Energy Contracts ($4) - Other Income/Expense Corporate Environmental Reserve - ($13) COGS Corporate Litigation Reserve - ($18) COGS Corporate Massena Fire - ($12) Revenue, COGS and Other Income/Expense Primary Metals/EPS Special Items ($11) ($63) $105 $61 $0.10 $0.06 Income from Continuing Ops excl Special Items Income per Diluted Share excl Special Items

2nd Quarter 2012 vs. 1st Quarter 2012 Earnings Bridge 7 See appendix for Adjusted Income reconciliation Income from Continuing Operations Excluding Restructuring & Other Special Items ($ millions) -$30m +$17m -$31m 105 61 2Q 2012 Cost Increases / Other 5 53 Raw Materials Price / Mix Energy 17 Productivity Currency LME 41 31 Volume 7 31 61 1Q 2012 [Alcoa logo] [Alcoa logo] nd st

Alumina 8 2 Quarter Results 3 Quarter Outlook 2 Quarter Business Highlights Production and shipments decrease as curtailments take effect Currency benefit significant in both Australian dollar and Brazilian Real Increased caustic usage Energy prices increased, driven by fuel oil Maintenance overhauls performed as planned Quarter Performance Bridge 34% of party shipments on spot or alumina price index; other pricing to follow two-month lag to LME Caustic pricing expected to remain level Maintenance overhauls concluded, returning to normal levels and adding $9 million in ATOI sequentially Productivity gains to continue [Alcoa logo] nd nd nd 2 rd 3 rd

[Alcoa logo] 9 2nd Quarter Results 2nd Quarter Business Highlights 3rd Quarter Outlook 2 Quarter Performance Bridge 2Q 11 1Q 12 2Q 12 Production (kmt) 945 951 941 3 Party Shipments (kmt) 724 771 749 3 Party Revenue ($ Millions) 2,145 1,944 1,804 3 Party Price ($/MT) 2,830 2,433 2,329 ATOI ($ Millions) 201 10 (3) nd i rd [Alcoa logo] nd Primary Metals Pricing to follow 15 day lag to LME Energy with negative $20 million ATOI impact due to higher seasonal pricing Rockdale and Warrick outages complete, $11 million favorable for next quarter Productivity gains to continue; expected to offset net impact of energy and outages Carbon costs expected to remain level Massena fire impact flat sequentially nd ird ird LME price down 6% on a 15-day lagged basis, but favorable currencies partially offset impact Price/mix improvements driven by regional premiums Improved performance as productivity, raw materials and energy more than offset headwinds Impact of $7 million from Massena fire $ Millions [Alcoa logo] ird

[Alcoa logo] 10 Record ATOI and adjusted EBITDA/MT in first half 2012 Volume up 7% sequentially Compressed margins from decreasing LME prices Seasonal demand increases in can stock, mainly due to Russia and NA Days Working Capital improved 6 days from prior year Favorable productivity impacts results Aero and Auto continue to be strong European markets remain uncertain; pricing and demand pressures persist Slower growth rates in China and Russia Productivity gains to continue Global Rolled Products See appendix for Adjusted EBITDA reconciliation $96 $95 $18 $12 ($22) ($8) ($1) $ Millions Adjusted EBITDA/mt 393 430 390 ATOI ($ Millions) 2Q 11 1Q 12 2Q 12 Global Rolled Products, excl Russia, China & Other 86 100 89 13 (4) 6 Total ATOI 99 96 95 Russia, China & Other [Alcoa logo] 2nd Quarter Business Highlights nd 3 rd Quarter Outlook 2 Quarter Results nd 2 Quarter Performance Bridge nd

[Alcoa logo] Engineered Products and Solutions – Revenue, adjusted EBITDA and ATOI up sequentially and year-over-year – Record quarterly adjusted EBITDA margin at 19.4% – $15 million of favorable productivity – $5 million unfavorable impact of Massena fire – On track to achieve 3-year revenue & margin targets 11 See appendix for Adjusted EBITDA reconciliation $155 $160 ($1) $4 $15 ($8) ($5) 2nd Quarter Business Highlights nd 3 rd Quarter Outlook – European summer slowdown across all sectors – Deterioration in global Building & Construction market – Weaker Heavy Duty truck build rates in NA 2 nd half vs. 1 st half – Share gains through innovation continue across all market sectors – Productivity gains to continue – $5 million unfavorable impact of Massena fire, flat sequentially $ Millions 2 Quarter Results nd 2 Quarter Performance Bridge nd $ Millions 2Q 11 1Q 12 2Q 12 3 Party Revenue 1,370 1,390 1,420 ATOI 149 155 160 Adjusted EBITDA Margin 19.0% 19.2% 19.4% rd

[Alcoa logo] 12 See appendix for Free Cash Flow and Net Debt-to-Capital reconciliations 2 Quarter 2012 Cash Flow Overview ($ Millions) 2Q’11 1Q’12 2Q’12 Net Income (Loss) $377 $99 ($19) DD&A $375 $369 $364 Change in Working Capital ($113) ($289) ($147) Pension Contributions ($72) ($213) ($139) Taxes / Other Adjustments $231 ($202) $478 Cash from Operations $798 ($236) $537 Dividends to Shareholders ($32) ($33) ($33) Change in Debt $30 $357 ($143) Distributions to Noncontrolling Interest ($90) ($26) ($44) Contributions from Noncontrolling Interest $7 $90 $20 Other Financing Activities $0 $6 $2 Cash from Financing Activities ($85) $394 ($198) Capital Expenditures ($272) ($270) ($291) Other Investing Activities ($78) ($80) ($63) Cash from Investing Activities ($350) ($350) ($354) 2Q’12 FCF $246 million $1.7 billion of cash Debt-to-Cap at 36.1% DWC 5 Day reduction vs 2Q 2011 nd nd

Sustainable Reductions Maintained in Days Working Capital 13 See appendix for Days Working Capital reconciliation of periods 2Q 2012, 1Q 2012 and 2Q 2011 Record Low Days for Second Quarter Days Working Capital since Fourth Quarter 2008 33 32 38 38 39 43 44 41 48 55 20 25 30 35 40 45 50 55 - 5 days 27 30 33 50 43 10 days lower 3 days lower 3 days lower [Alcoa logo]

[Alcoa logo] Proven Cash Sustainability Efforts Enhance Liquidity 14 See appendix for reconciliations to GAAP and additional information Income from Continuing Operations excluding restructuring and specials Free Cash Flow Cash on Hand Debt ($ Millions) and Debt-to-Capital (%) ($ Millions) ($ Millions) ($ Millions) Gross Debt Debt to Cap

15 Achieving Targets Delivering Results n Executing curtailments n Record 1H ATOI and adjusted EBITDA/mt in the midstream n Record 2Q margins in the downstream n Productivity gains continue n Positive Free Cash Flow of $246 million n Record 2Q Days Working Capital Productivity Gains Overhead Working Capital Sustaining Capex Growth Capex Saudi Arabia JV Maintain Debt-to-Cap 30-35% $725M $625M $350M $800M $50M 1.5 days Positive Free Cash Flow Executing Our Strategy See appendix for reconciliations to GAAP and additional information Smelting Cost Curve Position Refining Cost Curve Position Continuing to Execute in a Challenging Environment [Alcoa logo] Record 1H ATOI and adjusted EBITDA/mt in the midstream Record 2Q margins in the downstream Productivity gains continue Positive Free Cash Flow of $246 million Record 2Q Days Working Capital

[Alcoa logo] Klaus Kleinfeld Chairman and Chief Executive Officer July 9, 2012

[Alcoa logo] 17 Source: Alcoa analysis Alcoa End Markets: Current Assessment of 2012 vs. 2011 2012 Market Conditions

[Alcoa logo] India 5.9 China Europe North America Asia ex. China Other (1) Brazil Russia 21.1 6.6 5.7 3.5 1.9 1.0 0.9 2012 Projected Primary Aluminum Consumption Growth Rates (%) by Region (in mmt) 46.6 2Q12 Estimated Consumption 18 Source: Alcoa analysis (1) ‘Other’ consists of: Middle East, Latin America ex Brazil and Rest of the World (ROW) Global Aluminum Demand Strong: 7% Growth Maintained 2011 2012 15% 11% 1% -1% 6% 4% 10% 6% 15% 6% 10% 7% 3% 5% 4% 5% 2011 Actual Q2’12 Forecast 2011 Global Demand Growth Rate: 10% 2012 Global Demand Growth Rate 7% vs. 2011 (World ex China 3%) Notes:

[Alcoa logo] Sources: Alcoa estimates, Brook Hunt, CRU, CNIA, IAI 19 Alumina: Balanced AND Indonesian Situation Uncertain Alumina and alumina-equivalent imports (1) Indonesia Imposes Bauxite Export Ban Curbed exports since May 1 (1) Export tax rate set at 20% = $5-$10/mt Import build ahead of ban (1-2 months) Chinese announce refinery cuts in reaction to uncertain bauxite supply Resumption of permitted exports uncertain (MT) Notes: (1) Imports are on a one month lag from exports out of Indonesia (exports in May will be reported as China imports in June) - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Alumina Bauxite in alumina equivalent 2012E Alumina Supply/Demand Balance (kmt) Demand (000 mt) China Rest of World May 2012 Annualized Rate 39,400 54,700 2012 Production to be added 300 550 2012 Capacity to be curtailed (3,000) (700) Imports/(Exports) 3,500 (3,500) Total Supply 40,200 51,050 Demand (40,200) (51,050) Net Balance 0 0 Supply

[Alcoa logo] Sources: Alcoa estimates, Brook Hunt, CRU, CNIA, IAI Aluminum in Deficit - Curtailments Occurring 20 Producer Executed Curtailments Pending Curtailments Henan Province (545) (350) Sichuan (201) - Shaanxi (190) - Shanxi (57) - Inner Mongolia (50) - Other (119) (350) Total China (1,162) (700) Alcoa (90) (150) Klesch (225) - RTA Lynemouth (178) - Hydro Kurri Kurri (175) - RTA-Tiwai Point (13) - Other (150) Total ROW (681) (300) Annualized Production 2012E Aluminum Supply/Demand (kmt) (000 mt) China Rest of World May 2012 Annualized Rate 19,400 24,925 2012 Production to be added 1,750 565 2012 Capacity to be curtailed (350) (150) Total Supply 20,800 25,340 Demand (21,150) (25,505) Net Balance (350) (165) Supply Demand Deficit (515)

[Alcoa logo] Physical Premiums Push Record Highs Sources: Alcoa estimates, LME, SHFE, IAI, Marubeni, Platt’s Metals Week and Metal Bulletin 21 Regional Premiums over time

[Alcoa logo] Inventories Down – “Days of Consumption / Pricing” Disrupted Sources: Alcoa estimates, LME, SHFE, IAI, Marubeni, Platt’s Metals Week and Metal Bulletin 22 Global Inventories vs. LME Price over time $1,250 $1,450 $1,650 $1,850 $2,050 $2,250 $2,450 $2,650 $2,850 $3,050 $3,250 0 10 20 30 40 50 60 70 80 90 100 Off Exchange Producer Japan Port China ex SRB LME On Warrant Cancelled Warrants LME 3 Mon Global Inventories Decline 27 days from ‘09 peak 3 days from 1Q’12 Days of Consumption 80 days LME Price $2,686/MT Days of Consumption 102 days LME Price $2,214/MT Days of Consumption 75 days LME Price $1,924/MT Days of Consumption LME Price

[Alcoa logo] LME Price Decoupled From Fundamentals 23 LME Cash versus Quarterly Supply/Demand Balance Sources: Alcoa estimates, Brook Hunt, CRU, Harbor (500) (300) (100) 100 300 500 700 900 1,100 1,300 1,500 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 $2,400 $2,600 $2,800 $3,000 LME Cash Price Price SYNCHRONIZED with fundamentals DECOUPLED LME Price Supply/ Demand S U R P L U S D E F I C I T Supply-Demand Balance

[Alcoa logo] Weak Macro Environment, Impacting Commodities 24 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 44 46 48 50 52 54 56 58 60 62 China US Eurozone 80 85 90 95 100 105 110 China Eurozone 1 US 3 …Price Declines in Second Quarter Consumer Confidence*; Mixed Signals Liquidity and Solvency Issues in Europe… Negative Signals in Manufacturing… Manufacturing Purchasing Managers’ Index Growth -10% -9% -6% -18% -6% -9% -9% -20% -18% -16% -14% -12% -10% -8% -6% -4% -2% 0% Aluminum Copper Nickel Tin Zinc Lead GSCI IM Index 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 19.0% 21.0% 23.0% 10-yr Sovereign Yields Portugal Ireland Spain Italy 2 Contraction

[Alcoa logo] Macro Environment Dominates Price 25 * Dow Jones UBS Commodity Index ** Correlation, r, of daily returns over prior year Correlation of LME 3-month & DJUBS* Index Correlation of LME 3-month & S&P 500 Index

[Alcoa logo] Market Fundamentals Sound – Historically Prevail 26 Alumina Balanced, Tightness In Aluminum 7% Global Demand Growth Inventories Declining Premiums at Record High Global Inventories vs. LME Price over time Regional Premiums over time 2011 2012 15% 11% 1% -1% 6% 4% 10% 6% 15% 6% 10% 7% 3% 5% 4% 5% India 5.9 China Europe North America Asia ex. China Other (1) Brazil Russia 21.1 6.6 5.7 3.5 1.9 1.0 0.9 2011 Actual Q2’12 Forecast 2011 Global Demand Growth Rate: 10% 2012 Global Demand Growth Rate 7% vs. 2011 (World ex China 3%) 2012 Projected Primary Aluminum Consumption Growth Rates (%) by Region (in mmt) 46.6 2Q12 Estimated Consumption $1,250 $1,450 $1,650 $1,850 $2,050 $2,250 $2,450 $2,650 $2,850 $3,050 $3,250 0 10 20 30 40 50 60 70 80 90 100 Off Exchange Producer Japan Port China ex SRB LME On Warrant Cancelled Warrants LME 3 Mon Global Inventories Decline 27 days from ’09 Peak 3 days from 1Q’12 Days of Consumption 80 days LME Price $2,686/MT Days of Consumption 102 days LME Price $2,214/MT Days of Consumption 75 days LME Price $1,924/MT Days of Consumption LME Price 0 50 100 150 200 250 300 USD per MT Region End of Q2’12 Europe $250/MT Japan $233/MT Midwest USA $226/MT Supply Demand Supply Demand

[Alcoa logo] Alumina: Improve Performance Through Cost & Price Focus 27 Notes: See appendix for Adjusted EBITDA reconciliations Adjusted EBITDA per MT Five Year Plan to Move Down the Cost Curve Executing Strategic Actions 2010 Strategy Executed 30 25 20 23 30 Refining Cost Curve Aligning Prices With Market Fundamentals Projecting 1-3 % points by end 2013 Sources: CRU Spot and Australia export - ABARE, Baltic Exchange, CRU, Metal Bulletin, PACE, Alcoa estimate ~40% of customers on API or spot basis by year end - 100 200 300 400 500 600 700 CRU Spot Australia Export 44 48 68 75 110 104 81 20 47 70 33 1,350 1,433 1,719 1,900 2,570 2,641 2,572 1,664 2,173 2,398 2,077 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 2012 10-YR Average ~ $67/MT LME Adjusted EBITDA/MT – Atlantic region – – $125m ATOI in Western Australia since end 2010 – to $110m in cash – schedule and ramping up towards full construction th th th rd th Curtailments complete: 390kmt curtailed in the Productivity gains of $270m since end 2010 Creeping production at lower cost facilities: added 7 Days reduction in DWC from Q2 2010, equivalent Saudi Arabian refinery and mine project: on

[Alcoa logo] Primary: Lower Cost Position and Optimize Margins 28 Adjusted EBITDA per MT Five Year Plan to Move Down the Cost Curve Executing Strategic Actions – Curtailments representing 14% of global capacity – Permanent closures of 290kmt underway – 85% smelter power secured through 2025 – Productivity gains of $310m since 2010 – Monetizing Tapoco facility as part of announced Tennessee smelter permanent closure – 8 days reduction in DWC from Q2 2010, equivalent to $235m in cash – Saudi Arabian investment on time and budget 2010 Strategy Executed 50 45 40 41 51 Smelting Cost Curve Optimizing Cast House Profitability Billet Slab T-Bar Foundry Rod $337M Margin* 2011 through 1H 2012 Projecting 3-6 % points by end 2013 LME Adjusted EBITDA/MT 321 336 418 398 784 626 392 (159) 320 301 134 1,350 1,433 1,719 1,900 2,570 2,641 2,572 1,664 2,173 2,398 2,077 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 2012 10-YR Average ~ $374/MT th th th st st Notes: (1) See appendix for Adjusted EBITDA reconciliations (2) Margin refers to incremental valued added product margin over P1020 primary aluminum

[Alcoa logo] Global Rolled Products: Strong Top- and Bottom-Line Growth 29 2012 YTD 3 Party Sales by Market Leveraging our strategic asset base Continuing To Make Progress on Revenue Targets Notes: See appendix for Adjusted EBITDA reconciliations Record Adjusted EBITDA per MT – Record adjusted EBITDA/MT in 1H 2012 – On track to deliver ~67% of 2013 revenue target by 2012 – Aero & auto driving profitable growth – Productivity gains of $218m since 2010 – Saudi Arabia project on time and budget – 7 days reduction in DWC from Q2 2010, equivalent to ~$140m in cash 273 253 249 276 226 201 108 119 314 327 409 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD Adjusted EBITDA/MT 10-YR Average ~ $235/MT $6.3 $6.3 $8.8 2010 2012 Normalized Estimate 2013 Target 67% of Growth Target $1.6 $ Billions Other 2% Automotive 7% B&C 4% Commercial Transport 7% Industrial Products 23% Packaging 43% Aerospace 14% 85% Utilization rd

[Alcoa logo] Engineered Products: Continued Growth in Our Margins On Track To Meet 2013 Revenue Targets 30 2012 YTD 3 Party Sales by Market Strong Platform for Profitable Growth Record Adjusted EBITDA Margins Notes: See appendix for Adjusted EBITDA reconciliations $4.6 $4.6 $6.2 2010 2012 Estimate 2013 Target $1.0 $ Billions 63% of Growth Target Adjusted EBITDA Margin 8% 9% 12% 11% 12% 13% 15% 13% 17% 18% 19% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD Aerospace 49% IGT 7% B&C 17% Commercial Transport 17% Automotive 3% Other 7% 78% Utilization 69% Utilization rd

[Alcoa logo] Miracle Metal Accelerating Growth in the Auto Market 31 50 years of uninterrupted growth Positioned to capture demand Future is bright for aluminum $300M in Davenport expansion supported by Saudi Arabia expansion to include auto body sheet Evaluating further expansions Market preference for better fuel economy NA demand to Aluminum sheet use will triple by 2015 The next frontier, body-in-white Sources: The Aluminum Association Inc and Ducker Worldwide 2011 Lbs per vehicle 0 100 200 300 400 500 600 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 550 lbs The Next Frontier for Aluminum 343 lbs Heat Exchangers Wheels Heads Hoods Blocks Doors & Body-in-white increase 60% by 2025 secured orders

[Alcoa logo] 32 Vibrant Aerospace Growth Projected Over Long & Near Term Sources: The Airline Monitor Jan/Feb 2012 forecast Notes: All figures include both Large Commercial Aircraft & Regional Jets; $ Value of deliveries expressed in then-year dollars

[Alcoa logo] Fasteners Solving Lightning Strike Issues Leadership In Product Innovation For a Fast-Growing Market Electrical Energy Management Enhanced joint fatigue properties Airfoils Increasing Next Generation Turbine Efficiencies Al-Li + Advanced Structural Concepts Enable Next-Generation Aircraft Breakthroughs 6% -10% lower aircraft weight (1) Double the time in between inspection intervals Increased passenger comfort Airframes Engines Working with Key OEMs Notes: (1) Where weight = Operating Empty Weight 33 Multi-Wall / 3D Airfoil Cooling Schemes Advanced Single Crystal Thin Airfoil Equiax Process Directs Air to Critical Areas Increased Melting Point 12% Reduced Blade Weight ~ -20%

[Alcoa logo] Solid Market Fundamentals Delivering Our Promises Today and Ready For Tomorrow Executing Our Strategy Positioning for the Future 34 Automotive Doors & Body-in-white Aerospace Fasteners Solving Lightning Strike Issues Electrical Energy Management Enhanced joint fatigue properties Airfoils Increasing Next Generation Turbine Efficiencies Multi -Wall / 3D Airfoil Cooling Schemes Advanced Single Crystal Thin Airfoil Equiax Process Al-Li + Advanced Structural Concepts Enable Next -Generation Aircraft Breakthroughs 6%-10% lower aircraft weight Double the time in between Increased passenger comfort inspection intervals The Next Frontier for Aluminum

[Alcoa logo] 35 [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 36

[Alcoa logo] Annual Sensitivity Summary 37 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 2Q’12 Third-Party Revenue Sequential Change Year-Over-Year Change 38 4% 1% (1%) 3% 0% 13% 5% 26% (3%) (7%) 13% 3% (12%) 10% (19%) 2% (9%) (14%) (19%) (16%) 16% 3% 6% 6% 8% 2% 14% 2% 13% 30% Aerospace Automotive B&C Comm. Transport Industrial Products IGT Packaging Distribution/Other Alumina Primary Metals

[Alcoa logo] Reconciliation of ATOI to Consolidated Net Income (Loss) Attributable to Alcoa (in millions) 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12 Total segment ATOI $ 555 $ 635 $ 462 $ 241 $ 1,893 $ 296 $ 275 Unallocated amounts (net of tax): Impact of LIFO (24) (27) 2 11 (38) – 19 Interest expense (72) (106) (81) (81) (340) (80) (80) Noncontrolling interests (58) (55) (53) (28) (194) (5) 17 Corporate expense (67) (76) (76) (71) (290) (64) (69) Restructuring and other charges (6) (22) (7) (161) (196) (7) (10) Discontinued operations (1) (4) – 2 (3) – – Other (19) (23) (75) (104) (221) (46) (154) Consolidated net income (loss) attributable to Alcoa $ 308 $ 322 $ 172 $ (191) $ 611 $ 94 $ (2) 39

[Alcoa logo] Reconciliation of Alcoa Adjusted EBITDA ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2Q11 1Q12 2Q12 Net income (loss) attributable to Alcoa $ 420 $ 938 $ 1,310 $ 1,233 $ 2,248 $ 2,564 $ (74) $ (1,151) $ 254 $ 611 $ 322 $ 94 $ (2) Add: Net income (loss) attributable to noncontrolling interests 181 212 233 259 436 365 221 61 138 194 55 5 (17) Cumulative effect of accounting changes (34) 47 – 2 – – – – – – – – – Loss (income) from discontinued operations 101 – 27 50 (22) 250 303 166 8 3 4 – – Provision (benefit) for income taxes 307 367 546 464 853 1,623 342 (574) 148 255 136 39 13 Other (income) expenses, net (175) (278) (266) (478) (236) (1,920) (59) (161) 5 (87) (50) (16) 22 Interest expense 350 314 271 339 384 401 407 470 494 524 163 123 123 Restructuring and other charges 398 (28) (29) 266 507 268 939 237 207 281 34 10 15 Provision for depreciation, depletion, and amortization 1,037 1,110 1,142 1,227 1,252 1,244 1,234 1,311 1,450 1,479 375 369 363 Adjusted EBITDA $ 2,585 $ 2,682 $ 3,234 $ 3,362 $ 5,422 $ 4,795 $ 3,313 $ 359 $ 2,704 $ 3,260 $ 1,039 $ 624 $ 517 Sales $17,691 $18,879 $21,370 $24,149 $28,950 $29,280 $26,901 $18,439 $21,013 $24,951 $ 6,585 $ 6,006 $ 5,963 Adjusted EBITDA Margin 15% 14% 15% 14% 19% 16% 12% 2% 13% 13% 16% 10% 9% 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. 40

[Alcoa logo] Reconciliation of Alumina Adjusted EBITDA ($ in millions, except per metric ton amounts) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2Q11 1Q12 2Q12 After-tax operating income (ATOI) $ 315 $ 415 $ 632 $ 682 $ 1,050 $ 956 $ 727 $ 112 $ 301 $ 607 $ 186 $ 35 $ 23 Add: Depreciation, depletion, and amortization 139 147 153 172 192 267 268 292 406 444 112 114 114 Equity (income) loss (1) – (1) – 2 (1) (7) (8) (10) (25) (22) (1) (1) Income taxes 130 161 240 246 428 340 277 (22) 60 179 60 (1) (6) Other (14) (55) (46) (8) (6) 2 (26) (92) (5) (44) (1) – (3) Adjusted EBITDA $ 569 $ 668 $ 978 $ 1,092 $ 1,666 $ 1,564 $ 1,239 $ 282 $ 752 $ 1,161 $ 335 $ 147 $ 127 Production (thousand metric tons) (kmt) 13,027 13,841 14,343 14,598 15,128 15,084 15,256 14,265 15,922 16,486 4,144 4,153 4,033 Adjusted EBITDA/Production ($ per metric ton) $ 44 $ 48 $ 68 $ 75 $ 110 $ 104 $ 81 $ 20 $ 47 $ 70 $ 81 $ 35 $ 31 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. 41

[Alcoa logo] Reconciliation of Primary Metals Adjusted EBITDA ($ in millions, except per metric ton amounts) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2Q11 1Q12 2Q12 After-tax operating income (ATOI) $ 650 $ 657 $ 808 $ 822 $ 1,760 $ 1,445 $ 931 $ (612) $ 488 $ 481 $ 201 $ 10 $ (3) Add: Depreciation, depletion, and amortization 300 310 326 368 395 410 503 560 571 556 142 135 133 Equity (income) loss (44) (55) (58) 12 (82) (57) (2) 26 (1) 7 1 2 9 Income taxes 266 256 314 307 726 542 172 (365) 96 92 55 (13) (19) Other (47) 12 20 (96) (13) (27) (32) (176) (7) 2 – – (1) Adjusted EBITDA $ 1,125 $ 1,180 $ 1,410 $ 1,413 $ 2,786 $ 2,313 $ 1,572 $ (567) $ 1,147 $ 1,138 $ 399 $ 134 $ 119 Production (thousand metric tons) (kmt) 3,500 3,508 3,376 3,554 3,552 3,693 4,007 3,564 3,586 3,775 945 951 941 Adjusted EBITDA/Production ($ per metric ton) $ 321 $ 336 $ 418 $ 398 $ 784 $ 626 $ 392 $ (159) $ 320 $ 301 $ 422 $ 141 $ 126 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. 42

[Alcoa logo] Reconciliation of Global Rolled Products Adjusted EBITDA 43 ($ in millions, except per metric ton amounts) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q11 2Q11 1Q12 2Q12 After-tax operating income (ATOI) $ 225 $ 222 $ 254 $ 278 $ 233 $ 178 $ (3) $ (49) $ 220 $ 266 $ 81 $ 99 $ 96 $ 95 Add: Depreciation, depletion, and amortization 184 190 200 220 223 227 216 227 238 237 58 60 57 57 Equity loss 4 1 1 – 2 – – – – 3 – – 1 2 Income taxes 90 71 75 121 58 92 35 48 92 104 33 35 49 43 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 $ 193 $ 203 $ 197 Total shipments (thousand metric tons) (kmt) 1,814 1,893 2,136 2,250 2,376 2,482 2,361 1,888 1,755 1,866 470 491 472 505 Adjusted EBITDA /Total shipments ($ per metric ton) $ 273 $ 253 $ 249 $ 276 $ 226 $ 201 $ 108 $ 119 $ 314 $ 327 $ 368 $ 393 $ 430 $ 390 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] Reconciliation of Engineered Products and Solutions Adjusted EBITDA 44 ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2Q11 1Q12 2Q12 After-tax operating income (ATOI) $ 63 $ 124 $ 156 $ 271 $ 365 $ 435 $ 533 $ 315 $ 415 $ 539 $ 149 $ 155 $ 160 Add: Depreciation, depletion, and amortization 150 166 168 160 152 163 165 177 154 158 41 40 39 Equity loss (income) – – – – 6 – – (2) (2) (1) – – – Income taxes 39 55 65 116 155 192 222 139 195 260 72 72 77 Other 35 11 106 (11) (2) (7) 2 1 – (1) (1) – – Adjusted EBITDA $ 287 $ 356 $ 495 $ 536 $ 676 $ 783 $ 922 $ 630 $ 762 $ 955 $ 261 $ 267 $ 276 Total sales $ 3,492 $ 3,905 $ 4,283 $ 4,773 $ 5,428 $ 5,834 $ 6,199 $ 4,689 $ 4,584 $ 5,345 $ 1,370 $ 1,390 $ 1,420 Adjusted EBITDA Margin 8% 9% 12% 11% 12% 13% 15% 13% 17% 18% 19% 19% 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] Reconciliation of Adjusted Income (in millions, except per- share amounts) Income (Loss) Diluted EPS Quarter ended Quarter ended June 30, 2011 March 31, 2012 June 30, 2012 June 30, 2011 March 31, 2012 June 30, 2012 Net income (loss) attributable to Alcoa $ 322 $ 94 $ (2) $ 0.28 $ 0.09 $ – Loss from discontinued operations (4) – – Income (loss) from continuing operations attributable to Alcoa 326 94 (2) 0.28 0.09 – Restructuring and other charges 16 7 10 Discrete tax items* – – 10 Other special items** 22 4 43 Income from continuing operations attributable to Alcoa – as adjusted $ 364 $ 105 $ 61 0.32 0.10 0.06 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 other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Income (loss) from continuing operations attributable to Alcoa determined under GAAP as well as Income from continuing operations attributable to Alcoa – as adjusted. * Discrete tax items for the quarter ended June 30, 2012 include a net charge for adjustments made related to the filing of 2011 tax returns in various jurisdictions ($8) and a net charge for other miscellaneous items ($2). ** Other special items include the following: for the quarter ended June 30, 2012, a litigation reserve ($18), uninsured losses related to fire damage to the cast house at the Massena, NY location ($12), and a net increase in the environmental reserve related to the Grasse River remediation in Massena, NY and remediation at two former locations, East St. Louis, IL and Sherwin, TX ($13); for the quarter ended March 31, 2012, a net unfavorable change in certain mark-to-market energy derivative contracts; and for the quarter ended June 30, 2011, a net charge comprised of expenses for the early repayment of Notes set to mature in 2013 due to the premiums paid under the tender offers and call option and gains from the termination of related “in-the-money” interest rate swaps ($32) and a net favorable change in certain mark-to-market energy derivative contracts ($10). 45

[Alcoa logo] Reconciliation of Adjusted Income, con’t (in millions) Quarter ended Year ended March 31, 2011 June 30, 2011 September 30, 2011 December 31, 2011 December 31, 2010 December 31, 2011 Net income (loss) attributable to Alcoa $ 308 $ 322 $ 172 $ (191) $ 254 $ 611 (Loss) income from discontinued operations (1) (4) – 2 (8) (3) Income (loss) from continuing operations attributable to Alcoa 309 326 172 (193) 262 614 Restructuring and other charges 5 16 5 155 130 181 Discrete tax items* – – (10) 12 40 2 Other special items** 3 22 (2) (8) 127 15 Income (loss) from continuing operations attributable to Alcoa – as adjusted $ 317 $ 364 $ 165 $ (34) $ 559 $ 812 Income (loss) 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 other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Income (loss) from continuing operations attributable to Alcoa determined under GAAP as well as Income (loss) from continuing operations attributable to Alcoa – as adjusted. * Discrete tax items include the following: for the quarter ended December 31, 2011, charges for a tax rate change in Hungary and a tax law change regarding the utilization of net operating losses in Italy ($8), a charge related to the 2010 change in the tax treatment of federal subsidies received related to prescription drug benefits provided under certain retiree health benefit plans ($7), and a net benefit for other miscellaneous items ($3); and, for the quarter ended September 30, 2011, a net benefit for adjustments made related to the filing of 2010 tax returns in various jurisdictions ($5) and a net benefit for other miscellaneous items ($5). ** Other special items include the following: for the quarter ended December 31, 2011, a gain on the sale of land in Australia ($18), uninsured losses, including costs related to flood damage to a plant in Pennsylvania caused by Hurricane Irene, ($14), a net favorable change in certain mark-to-market energy derivative contracts ($8), and the write off of inventory related to the permanent closure of a smelter in the U.S ($4); for the quarter ended September 30, 2011, a net favorable mark-to-market change in certain energy derivative contracts ($13) and uninsured losses, including costs related to flood damage to a plant in Pennsylvania caused by Hurricane Irene, ($11); for the quarter ended June 30, 2011, a net charge comprised of expenses for the early repayment of Notes set to mature in 2013 due to the premiums paid under the tender offers and call option and gains from the termination of related “in-the-money” interest rate swaps ($32) and a net favorable mark-to-market change in certain energy derivative contracts ($10); and, for the quarter ended March 31, 2011, costs related to acquisitions of the aerospace fastener business of TransDigm Group Inc. and full ownership of carbothermic smelting technology from ORKLA ASA ($8) and a net favorable mark-to-market change in certain energy derivative contracts ($5). 46

[Alcoa logo] Reconciliation of Adjusted Income, con’t 47 Income (loss) 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 other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Income (loss) from continuing operations attributable to Alcoa determined under GAAP as well as Income (loss) from continuing operations attributable to Alcoa – as adjusted. * Discrete tax items include the following: for the quarter ended December 31, 2010, a benefit for the reversal of the remaining valuation allowance related to net operating losses of an international subsidiary ($16) (a portion was initially reversed in the quarter ended September 30, 2010) and a net benefit for other small items ($2); 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); 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); for the quarter ended March 31, 2010, charges for a change in the tax treatment of federal subsidies received related to prescription drug benefits provided under certain retiree health benefit plans ($79), unbenefitted losses in Russia, China, and Italy ($22), interest due to the IRS related to a previously deferred gain associated with the 2007 formation of the former soft alloy extrusions joint venture ($6), and a change in the anticipated sale structure of the Transportation Products Europe business ($5); for the quarter ended December 31, 2009, a benefit for the reorganization of an equity investment in Canada ($71), a charge for the write-off of deferred tax assets related to operations in Italy ($41), a benefit for a tax rate change in Iceland ($31), and a benefit for the reversal of a valuation allowance on net operating losses in Norway ($21); for the quarter ended March 31, 2009, a benefit for a change in a Canadian national tax law permitting tax returns to be filed in U.S. dollars; and, for the quarter ended December 31, 2008, a charge for non-cash tax on repatriated earnings. ** Other special items include the following: for the quarter ended December 31, 2010, a net favorable mark-to-market change in certain energy derivative contracts; for the quarter ended September 30, 2010, a net unfavorable mark-to-market change in certain energy 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 comprised of expenses 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 and gains from the termination of related “in-the-money” interest rate swaps ($9); for the quarter ended June 30, 2010, a net favorable mark-to-market change in certain energy derivative contracts ($22), a charge for costs associated with the potential strike and successful execution of a new agreement with the United Steelworkers ($13), and a charge related to an unfavorable decision in Alcoa’s lawsuit against Luminant related to the Rockdale, TX facility ($7); for the quarter ended March 31, 2010, charges related to unfavorable mark-to-market changes in certain energy derivative contracts ($31), power outages at the Rockdale, TX and São Luís, Brazil facilities ($17), an additional environmental accrual for the Grasse River remediation in Massena, NY ($11), and the write off of inventory related to the permanent closures of certain U.S. facilities ($5); for the quarter ended December 31, 2009, charges related to the European Commission’s ruling on electricity pricing for smelters in Italy ($250), a tax settlement related to an equity investment in Brazil ($24), an estimated loss on excess power at the Intalco smelter ($19), and an environmental accrual for smelters in Italy ($15); for the quarter ended September 30, 2009, a gain on an acquisition in Suriname; for the quarter ended March 31, 2009, a gain on the Elkem/SAPA AB swap ($133) and a loss on the sale of Shining Prospect ($118); and, for the quarter ended December 31, 2008, charges for environmental reserve ($26), obsolete inventory ($16), and accounts receivable reserve ($11), and a refund of an indemnification payment ($24). (in millions) Quarter ended December 31, 2008 March 31, 2009 June 30, 2009 September 30, 2009 December 31, 2009 March 31, 2010 June 30, 2010 September 30, 2010 December 31, 2010 Net (loss) income attributable to Alcoa $ (1,191) $ (497) $ (454) $ 77 $ (277) $ (201) $ 136 $ 61 $ 258 (Loss) income from discontinued operations (262) (17) (142) 4 (11) (7) (1) – – (Loss) income from continuing operations attributable to Alcoa (929) (480) (312) 73 (266) (194) 137 61 258 Restructuring and other charges 614 46 56 1 49 119 20 (1) (8) Discrete tax items* 65 (28) – – (82) 112 (16) (38) (18) Other special items** 29 (15 ) – (35) 308 64 (2) 74 (9) (Loss) income from continuing operations attributable to Alcoa – as adjusted $ (221 ) $ (477 ) $ (256) $ 39 $ 9 $ 101 $ 139 $ 96 $ 223

[Alcoa logo] Reconciliation of Free Cash Flow (in millions) Quarter ended Year ended June 30, 2011 March 31, 2012 June 30, 2012 December 31, 2011 Cash from operations $ 798 $ (236) $ 537 $ 2,193 Capital expenditures (272) (270) (291) (1,287) Free cash flow $ 526 $ (506) $ 246 $ 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. 48

[Alcoa logo] Reconciliation of Free Cash Flow, con’t 49 (in millions) Quarter ended Year ended March 31, 2011 June 30, 2011 September 30, 2011 December 31, 2011 December 31, 2010 December 31, 2011 Cash from operations $ (236) $ 798 $ 489 $ 1,142 $ 2,261 $ 2,193 Capital expenditures (204) (272) (325) (486) (1,015) (1,287) Free cash flow $ (440) $ 526 $ 164 $ 656 $ 1,246 $ 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] Reconciliation of Free Cash Flow, con’t 50 (in millions) Quarter ended December 31, 2008 March 31, 2009 June 30, 2009 September 30, 2009 December 31, 2009 March 31, 2010 June 30, 2010 September 30, 2010 December 31, 2010 Cash from operations $ 608 $ (271) $ 328 $ 184 $ 1,124 $ 199 $ 300 $ 392 $ 1,370 Capital expenditures (1,017) (471) (418 (370) (363 (221) (213) (216 (365) Free cash flow $ (409) $ (742) $ (90 $ (186) $ 761 $ (22) $ 87 $ 176 $ 1,005 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] Days Working Capital ($ in millions) Quarter ended June 30, 2011 March 31, 2012 June 30, 2012 Receivables from customers, less allowances $ 2,114 $ 1,526 $ 1,575 Add: Deferred purchase price receivable * – 254 141 Receivables from customers, less allowances, as adjusted 2,114 1,780 1,716 Add: Inventories 3,227 3,097 3,051 Less: Accounts payable, trade 2,614 2,734 2,633 Working Capital $ 2,727 $ 2,143 $ 2,134 Sales $ 6,585 $ 6,006 $ 5,963 Days Working Capital 38 32 33 Days Working Capital = Working Capital divided by (Sales/number of days in the quarter). * The deferred purchase price receivable relates to an arrangement to sell certain customer receivables to a financial institution on a recurring basis. Alcoa is adding back this receivable for the purposes of the Days Working Capital calculation. 51

[Alcoa logo] Reconciliation of Net Debt-to-Capital ($ in millions) Quarter ended June 30, 2012 Debt-to-Capital Cash and Cash Equivalents Net Debt-to- Capital Total Debt Short-term borrowings $ 559 Commercial paper 318 Long-term debt due within one year 118 Long-term debt, less amount due within one year 8,547 Numerator $ 9,542 $ 1,712 $ 7,830 Total Capital Total debt $ 9,542 Total equity 16,914 Denominator $ 26,456 $ 1,712 $ 24,744 Ratio 36.1% 31.6% Net debt-to-capital is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Alcoa’s leverage position after factoring in available cash that could be used to repay outstanding debt. 52