EX-99.2 3 d424171dex992.htm SLIDES PRESENTED DURING ALCOA INC. THIRD QUARTER 2012 EARNINGS CALL

0 [Alcoa logo] 3 rd Quarter Earnings Conference October 9, 2012 Exhibit 99.2

1 [Alcoa logo] Cautionary Statement 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; (n) the impact of cyber attacks and potential information technology or data security breaches; and (o) 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.

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

3 [Alcoa logo] 3 rd Quarter 2012 Financial Overview See appendix for reconciliations to GAAP and additional information Loss from Continuing Operations $0.13 per share; Excluding restructuring other special items: • Income from continuing operations $32 million, or $0.03 per share Revenue Adjusted EBITDA Upstream sequential performance improvement Midstream and Downstream record third quarter Days Working Capital record low third quarter Debt-to-Capital Net Debt-to-Capital Cash on hand of $1.4 billion at $5.8 billion of $143 million, or impact of of $282 million delivers significant achieved at 33 days, a of 36.1%, of 32.4% and of results

4 [Alcoa logo] Income Statement Summary $ Millions, except per-share amounts 3Q11 Actual 2Q12 Actual 3Q12 Actual Sequential Change Sales $6,419 $5,963 $5,833 ($130) Cost of Goods Sold $5,290 $5,154 $5,266 $112 82.4% 86.4% 90.3% 3.9 % pts. Selling, General Administrative, Other $261 $245 $234 ($11) 4.1% 4.1% 4.0% (0.1 % pts.) Other Expenses (Income), Net $31 $22 ($2) ($24) Restructuring and Other Charges $9 $15 $2 ($13) Effective Tax Rate 19.6% (216.7%) 15.9% 232.6 % pts. Income (Loss) from Continuing Operations $172 ($2) ($143) ($141) Income (Loss) Per Diluted Share $0.15 $0.00 ($0.13) ($0.13) Income Statement Summary COGS % Sales SGA % Sales

5 [Alcoa logo] Restructuring and Other Special Items $ Millions, except per-share amounts 2Q12 3Q12 Income Statement Classification Segment Loss from Continuing Ops ($2) ($143) Loss Per Diluted Share $0.00 ($0.13) Environmental Reserve ($13) ($120) COGS Corporate Litigation Reserve ($18) ($15) COGS Corporate Massena Fire ($12) ($9) Revenue, COGS and Other Income/Expense Primary Metals/EPS Discrete Tax Items ($10) ($26) Income Taxes Corporate Mark-to-Market Energy Contracts - ($3) Other Income/Expense Corporate Restructuring-Related ($10) ($2) Restructuring and Other Charges Corporate Special Items ($63) ($175) Income from Continuing Ops excl Special Items $61 $32 Income per Diluted Share excl Special Items $0.06 $0.03 See appendix for Adjusted income reconciliation

6 [Alcoa logo] Income from Continuing Operations Excluding Restructuring & Other Special Items ($ millions) -$94m +$86m -$21m 32 61 3Q 2012 Cost Increases / Other 24 Raw Materials 3 Productivity 55 34 Volume 3 Currency 3 LME 2Q 2012 3 Quarter 2012 vs. 2 Quarter 2012 Earnings Bridge See appendix for Adjusted income reconciliation 91 Price /Mix rd nd

7 [Alcoa logo] Alumina Higher shipments stemming from prior quarter shipping delays Price/mix driven by stable API pricing despite LME decline Continued productivity improvements Energy improvements driven by lower fuel oil prices Working capital improved 1 day vs. prior year quarter 3 Quarter Results 3 Quarter Business Highlights 3 Quarter Performance Bridge 4 Quarter Outlook Alumina Q3 Results and Q4 Outlook 3Q 11 2Q 12 3Q 12 Production (kmt) 4,140 4,033 4,077 3 Party Shipments (kmt) 2,256 2,194 2,368 3 Party Revenue ($ Millions) 879 750 764 ATOI ($ Millions) 154 23 (9) $16 Currency -$11 LME 3Q 2012 -$9 Raw Materials -$4 Energy $3 Productivity $23 Price / Mix $32 Volume -$91 2Q 2012 Market Performance +$70m -$102m 40% of 3 party shipments on spot or alumina price index with 30 day lag Other pricing to follow two-month lag to LME 34% of LME sensitivity driven by alumina segment Caustic pricing expected to remain level API pricing has remained flat as LME has increased since early September Productivity gains to continue rd rd rd th rd rd rd $23

8 [Alcoa logo] 3 Quarter Performance Bridge Production decreased due to curtailments in Spain and Italy Price/Mix driven by improving regional premiums Continued productivity improvements Raw materials driven by higher API related alumina costs, partially offset by improving coke and pitch prices 3 Quarter Results 3 Quarter Business Highlights 4 Quarter Outlook Pricing to follow 15 day lag to LME Curtailments continue with expected negative $15m ATOI impact Expected to close US hydropower asset sale by the end of the quarter Productivity gains to continue Market Performance Primary Metals Primary Metals Q3 Results and Q4 Outlook 3Q 11 2Q 12 3Q 12 Production (kmt) 964 941 938 3 Party Shipments (kmt) 754 749 768 3 Party Revenue ($ Millions) 2,124 1,804 1,794 3 Party Price ($/MT) 2,689 2,329 2,222 ATOI ($ Millions) 110 (3) (14) Market -$3 +$27m -$38m 2Q 2012 -$19 Energy Cost Decrease $8 Raw Materials 3Q 2012 -$14 -$1 Prod- uctivity $27 Price / Mix $13 Volume -$1 Currency -$2 LME -$36 rd th rd rd rd rd rd Working capital improved 4 days vs. prior year quarter

9 [Alcoa logo] See appendix for Adjusted EBITDA reconciliation 3Q Record ATOI and adjusted EBITDA per metric ton ATOI up 63% YOY quarter Demand increases in can stock, mainly in NA Continued strong demand in Aero and Auto Europe seasonal summer plant shutdowns and weaker demand in NA Industrial Working capital improved 5 days vs. prior year quarter Aerospace and automotive demand remain strong Seasonal demand decrease in packaging European and NA Industrial markets weakening; increasing pricing pressure and demand reduction Slower growth rates in China and Russia Continuing to deliver improving days working capital Global Rolled Products Global Rolled Products Q3 Results and Q4 Outlook ATOI ($ Millions) 3Q 11 2Q 12 3Q 12 Global Rolled Products, excl Russia, China & Other 56 89 89 Russia, China & Other 4 6 9 Total ATOI 60 95 98 Adjusted EBITDA/mt 313 390 395 3 Quarter Results 3 Quarter Business Highlights 4 Quarter Outlook $98 $95 $19 3Q 2012 2Q 2012 -$2 Currency -$10 -$4 Volume 3 Quarter Performance Bridge rd rd th Price/ Mix Cost Increase rd

10 [Alcoa logo] Engineered Products and Solutions Engineered Products and Solutions Q3 Results and Q4 Outlook Record 3Q ATOI driven by productivity offsetting seasonal declines in building & construction and weakness in commercial transportation Record quarterly adjusted EBITDA margin at 20.3% $13 million of favorable productivity Continued weaker Building & Construction market in Europe Weaker Heavy Duty truck build rates in NA and Europe Weaker global industrial market Share gains through innovation continue across all market sectors Productivity gains to continue See appendix for Adjusted EBITDA reconciliation ($ Millions) 3Q 11 2Q 12 3Q 12 3 Party Revenue 1,373 1,420 1,367 ATOI 138 160 160 Adjusted EBITDA Margin 17.8% 19.4% 20.3% 3 Quarter Results 3 Quarter Business Highlights 4 Quarter Outlook 3 Quarter Performance Bridge $7 $13 $160 -$11 -$8 -$1 $160 rd rd rd th rd

11 [Alcoa logo] ($ Millions) 3Q11 2Q12 3Q12 Net Income (Loss) $225 ($19) ($175) DD&A $377 $364 $366 Change in Working Capital ($93) ($147) $88 Pension Contributions ($114) ($139) ($163) Taxes / Other Adjustments $94 $478 $147 Cash from Operations $489 $537 $263 Dividends to Shareholders ($33) ($33) ($32) Change in Debt $72 ($143) ($273) Distributions to Noncontrolling Interest ($66) ($44) ($1) Contributions from Noncontrolling Interest $8 $20 $22 Other Financing Activities ($8) $2 $2 Cash from Financing Activities ($27) ($198) ($282) Capital Expenditures ($325) ($291) ($302) Other Investing Activities ($42) ($63) $40 Cash from Investing Activities ($367) ($354) ($262) 3Q12 FCF ($39) million $1.4 billion of cash DWC 5 Day reduction vs. 3Q 2011 3 rd Quarter 2012 Cash Flow Overview 3 Quarter 2012 Cash Flow See appendix for Free Cash Flow and Net Debt-to-Capital reconciliations Debt-to-Cap at 36.1%; Net Debt-to- Cap at 32.4% Overview rd

12 [Alcoa logo] Continued Sustainable Reductions in DWC Days Working Capital since Fourth Quarter 2008 33 33 32 38 38 39 43 44 41 48 50 55 20 25 30 35 40 45 50 55 -5 days 27 30 33 43 3 days lower 10 days lower 3 days lower Record Low 3 rd Quarter

13 [Alcoa logo] (Loss) Income from Continuing Operations excl. restructuring and other special items Free Cash Flow Cash on Hand Debt ($ Millions) and Debt-to-Capital (%) Proven Cash Sustainability Efforts Enhance Liquidity ($ Millions) See appendix for reconciliations to GAAP and additional information Income and Liquidity Performance Overview 32 61 105 -34 165 364 317 223 96 139 101 9 39 -256 -477 -221 -39 246 -506 656 164 526 -440 1,005 176 87 -22 761 -186 -90 -742 -409 1,432 1,712 1,749 1,939 1,332 1,260 887 1,543 843 1,344 1,292 1,481 1,066 851 1,131 762 9,524 9,542 9,743 9,371 9,311 9,348 9,294 9,800 9,757 9,819 10,073 10,265 10,205 10,578 9,309 9,165 42.5% 38.7% 34.9% 35.3% 36.1% Debt to Cap Gross Debt ($ Millions) ($ Millions) 3Q 12 2Q 12 1Q 12 4Q 11 3Q 11 2Q 11 1Q 11 4Q 10 3Q 10 2Q 10 1Q 10 4Q 09 3Q 09 2Q 09 1Q 09 4Q 08 3Q 12 2Q 12 1Q 12 4Q 11 3Q 11 2Q 11 1Q 11 4Q 10 3Q 10 2Q 10 1Q 10 4Q 09 3Q 09 2Q 09 1Q 09 4Q 08 3Q 12 2Q 12 1Q 12 4Q 11 3Q 11 2Q 11 1Q 11 4Q 10 3Q 10 2Q 10 1Q 10 4Q 09 3Q 09 2Q 09 1Q 09 4Q 08 3Q 12 2Q 12 1Q 12 4Q 11 3Q 11 2Q 11 1Q 11 4Q 10 3Q 10 2Q 10 1Q 10 4Q 09 3Q 09 2Q 09 1Q 09 4Q 08

14 [Alcoa logo] Continuing to Execute in a Challenging Environment Achieving Targets Executing Our Strategy Significant sequential performance improvement in the upstream Restructuring through executed curtailments Record 3Q ATOI and adjusted EBITDA/mt in the midstream Record 3Q adjusted EBITDA margins in the downstream Productivity continues Record 3Q Days Working Capital 30-35% $1.7B $800M $50M 1.5 days Positive Free Cash Flow Delivering Results Productivity Overhead Working Capital Capital Spend and Investments Maintain Debt-to-Capital

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

16 [Alcoa logo] Source: Alcoa analysis Alcoa End Markets: Current Assessment of 2012 vs. 2011 North America China Global Europe 4%-8% prod growth 13%-14% sales growth 2%-3% sales growth 2.5%-3.5% sales growth 3%-5% airfoil market growth rate 4%-7% prod growth 5%-8% sales growth 7%-8% sales growth 18%-21% prod decline 4%-5% sales growth 8% sales decline 4%-9% prod decline 8%-11% prod decline 11%-15% prod growth 2%-4% prod growth 5% sales decline -1%-0% sales flat Aerospace Automotive Heavy Truck & Trailer Beverage Can Packaging Commercial Building and Construction Industrial Gas Turbine 2012 Market Conditions 7%-9% prod decline

17 [Alcoa logo] 9% -2% 4% 5% 6% 6% 1% 5% 20.7 6.5 5.9 5.6 3.5 1.9 1.0 0.9 2012 Primary Aluminum Consumption (mmt), Annualized Growth (%) and Change (% pts) by Region 2012 Consumption (3Q12 estimate) Source: Alcoa analysis Global Aluminum Demand Grows 6% Amid Volatile Environment Russia Brazil India Other (1) Asia ex.China North America Europe China 46.1 mmt 2012 Growth (vs. 2011) (3Q12 estimate) Change in Growth (H1 to H2 in % pts.) Average: 6% 0% 6% 2% 2% 2% 0% 2% Russia Brazil India Asia ex.China North America Europe China 4% Other (1) Notes: (1) ‘Other’ consists of: Middle East, Latin America ex Brazil and Rest of the World (ROW)

18 [Alcoa logo] 2012E Alumina Supply/Demand Balance (kmt) Source: Alcoa estimates, Brook Hunt, CRU, CNIA, IAI (000 mt) China Rest of World Aug 2012 Annualized Rate 37,400 54,300 2012 Production to be added 300 300 2012 Capacity to be curtailed (1,000) (50) Imports/(Exports) 4,100 (4,100) Total Supply 40,800 50,450 Demand (40,200) (50,650) Net Balance 600 (200) Alumina and Aluminum Markets Essentially Balanced Supply and Demand Analysis (000 mt) China Rest of World Aug 2012 Annualized Rate 19,824 24,763 2012 Production to be added 1,296 295 2012 Capacity to be curtailed (320) (55) Total Supply 20,800 25,003 Demand (20,700) (25,365) Net Balance 100 (362) Surplus 400 Supply Demand Supply Demand Deficit (262) 2012E Aluminum Supply/Demand Balance (kmt)

19 [Alcoa logo] Tight Physical Market Drives Record Premiums Source: Alcoa estimates, LME, SHFE, IAI, Marubeni, Platt’s Metals Week and Metal Bulletin Regional Premiums over time $ per metric ton $ per metric ton

20 [Alcoa logo] Currently Inventory Levels Are Not Driving the Price Global Inventories Decline 27 days from ‘09 peak Flat from 2Q’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 $2,112/MT Global Inventories vs. LME Price over time Days of Consumption LME Price Source: Alcoa estimates, LME, SHFE, IAI, Marubeni, Platt’s Metals Week and Metal Bulletin

21 [Alcoa logo] LME Price Remains Decoupled From Market Fundamentals LME Cash versus Quarterly Supply/Demand Balance Price SYNCHRONIZED with fundamentals DECOUPLED LME Price Supply/ Demand Sources: Alcoa estimates, Brook Hunt, CRU, Harbor

22 [Alcoa logo] Broad Market Sentiment Continues to Dominate Price Source: Bloomberg Sept 12 th German court ruling LME $2,075 Sept 7 th China stimulus plan LME $1,988 Sept 6 th ECB bond buying program LME $1,963 Sept 13 th QE3 LME $2,082 10-Sep-12 17-Sep-12 24-Sep-12 Movement in LME Cash Prices After Economic Announcements [Alcoa logo]

23 [Alcoa logo] Market Fundamentals Intact; Macro Factors Influence Price Movement in LME Cash Prices After Economic Announcements Supply and Demand Analysis Global Inventories vs. LME Price over time Regional Premiums Over Time Market Effectively Balanced Premiums Remain At Record High Inventories Down Market Sentiment Dominates Price 0 10 20 30 40 50 60 70 80 90 100 Days of Consumption $1,250 $1,450 $1,650 $1,850 $2,050 $2,250 $2,450 $2,650 $2,850 $3,050 $3,250 LME Price Days of Consumption 102 days LME Price $2,214/MT Days of Consumption 80 days LME Price $2,686/MT Days of Consumption 75 days LME Price $2,112/MT Global Inventories Decline 27 days from ‘09 peak Flat from 2Q’12 Off Exchange Producer Japan Port China ex SRB LME On Warrant Cancelled Warrants LME 3 Mon

24 [Alcoa logo] ~40% of customers on API or spot basis by YE Alumina: Improving Performance Through Margin Focus Notes: See appendix for Adjusted EBITDA reconciliations Adjusted EBITDA per MT Aligning Prices With Market Fundamentals Five Year Plan To Improve Cost Competitiveness Executing on the Strategy Alumina Performance Overview 2010 Strategy Executed 30 th 25 th 20 th 23 rd 30 th Projecting 1-3% points by end 2013 Refining Cost Curve Avg. Adj. EBITDA/MT LME 1,433 1,350 YTD 2012 1,664 1,900 Source: API estimate: Alcoa analysis, ABARE, Baltic Exchange, CRU, Metal Bulletin, PACE Curtailments complete: 390kmt curtailed Productivity gains : $320m since 2010 Driving to API Pricing : ~40% tied to spot or index-based pricing by the end of 2012 -8 days DWC from Q3 2010: ~$115m in cash Saudi Arabia project: on schedule and budget 10-YR Average ~ $67/MT

25 [Alcoa logo] 2010 Strategy Executed 50 th 45 th 40 th 41 st 51 st Projecting 3-6% points by end 2013 Adjusted EBITDA per MT Optimizing Cast House Profitability Taking Action to Move Down the Cost Curve Executing Our Strategy Smelting Cost Curve Primary Metals: Driving Long-Term Improvements Notes: See appendix for Adjusted EBITDA reconciliations Primary Metals Performance Overview 10-YR Average ~ $374/MT Billet Slab T-Bar Foundry Rod $375M Margin* 2011 through YTD Sept 2012 Avg. Adj. EBITDA/MT LME YTD 2012 2011 2010 2009 -159 1,664 2008 2007 2006 784 2,570 2005 1,900 2004 2003 1,433 2002 1,350 Curtailments: Italy more than 70% curtailed Productivity gains : $385m since 2010 Improving our cost of power: USA (Intalco and Mt. Holly), Australia and Brazil -9 days DWC from Q3 2010: ~$240m in cash Saudi Arabia project: on schedule and budget * Margin refers to incremental valued added product margin over P1020 primary aluminum

26 [Alcoa logo] Generating Record Adjusted EBITDA per MT 2012 YTD 3 rd Party Sales by Market Davenport auto expansion on time & on budget Delivering Results Global Rolled Products: Leveraging Our Strategic Asset Base See appendix for Adjusted EBITDA reconciliations Avg. Adj. EBITDA/MT 405 327 314 119 108 226 276 249 253 273 2010 2011 YTD 2012 2002 2009 2008 2007 201 2006 2005 2004 2003 10-YR Average ~ $235/MT Global Rolled Products Performance Overview Record YTD adjusted EBITDA/ton: $405/MT Aero and Auto driving profitable growth Productivity gains: $218m since 2010 -3 days DWC from Q3 2010: ~$60m in cash 85% Utilization Other 2% B&C 4% Commercial Transport 5% Automotive 8% Aerospace 14% Industrial Products 24% Packaging 43% 1 st coils to be shipped Dec 2013

27 [Alcoa logo] Engineered Products & Solutions: Continuing to Grow Profitably * Alcoa 10/10/2012 Edit: Substituted generic photo which focuses on the blade section of the engine Setting Record Adjusted EBITDA Margins Al Solutions meet Commercial Aerospace Goals Strong Platform for Profitable Growth Record YTD adjusted EBITDA margins Productivity gains: $350 million since 2010 Continued strength in global aerospace market driving profitable growth Share gains through innovation accelerate growth across all markets 78% Aerospace Utilization 65% Other Utilization Engineered Products and Solutions Performance Overview Adj. EBITDA Margin 20% 18% 17% 13% 15% 13% 12% 11% 12% 9% 8% 2008 2007 2006 2005 2004 2003 2002 YTD 2012 2011 2010 2009 6% Other Automotive 3% IGT 7% Commercial Transport 17% B&C 18% Aerospace 49% $4.6 Al 2026 Stringers ~3.5% Sharklet Al 2060 Fan Blade ~15% * Notes: See appendix for Adjusted EBITDA reconciliations 2012 YTD 3 rd Party Sales by Market 3.7% Higher strength to weight ratio Ultra efficient, light weight, low speed blade Fuel burn reduction Fuel burn reduction

28 [Alcoa logo] Regulation and Market Preference Drives Aluminum Demand Source: Consumer Reports, The Aluminum Association, Ducker Research, Alcoa Analysis Changing Regulations… US Corporate Average Fuel Economy (MPG) Percentage of consumers willing to pay more for fuel-efficiency 2011 83% 2008 54% 54.5 35.5 27.2 +100% 2025 2016 2011 …Shifting Buying Behavior… +31% 37% of consumers rank fuel economy as the #1 factor in buying decision …Drive Substitution 7.5X increase Global Auto Body Sheet Consumption (KMT) 800 200 2020 1,500 2016 2011

29 [Alcoa logo] Macro Trumps Ali Fundamentals Controlling Our Own Destiny in a Challenging Environment Sentiment Drives Price Demand Solid; Markets Effectively Balanced Delivering Results Capturing Future Growth Upstream delivers $98M in performance improvement quarter over quarter Restructuring high cost assets through executed curtailments Global Rolled Products: Record YTD ATOI and adjusted EBITDA of $405 per metric ton Engineered Products and Solutions: Highest quarterly adjusted EBITDA Margin ever of 20.3% Record low third quarter Days Working Capital Lightweighting With Aluminum Necessary to Meet Market Demands 37% of consumers rank fuel economy as the #1 factor in buying decision

[Alcoa logo] [Alcoa logo] 30

31 [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

32 [Alcoa logo] Annual Sensitivity Summary 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

33 [Alcoa logo] Revenue Change by Market (2%) (5%) (1%) (13%) (8%) 2% (1%) (10%) 2% (1%) 9% 2% (8%) (10%) (16%) (1%) (6%) (19%) (13%) (16%) 3Q’12 Third-Party Revenue Sequential Change Year-Over-Year Change 16% 3% 6% 5% 8% 2% 14% 2% 13% 31% Aerospace Automotive B&C Comm. Transport Industrial Products IGT Packaging Distribution/Other* Alumina Primary Metals

34 [Alcoa logo] Reconciliation of ATOI to Consolidated Net Income (Loss) Attributable to Alcoa (in millions) 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12 3Q12 Total segment ATOI $ 555 $ 635 $ 462 $ 241 $ 1,893 $ 296 $ 275 $ 235 Unallocated amounts (net of tax): Impact of LIFO (24) (27) 2 11 (38) – 19 (7) Interest expense (72) (106) (81) (81) (340) (80) (80) (81) Noncontrolling interests (58) (55) (53) (28) (194) (5) 17 32 Corporate expense (67) (76) (76) (71) (290) (64) (69) (62) Restructuring and other charges (6) (22) (7) (161) (196) (7) (10) (2) Discontinued operations (1) (4) – 2 (3) – – – Other (19) (23) (75) (104) (221) (46) (154) (258) Consolidated net income (loss) attributable to Alcoa $ 308 $ 322 $ 172 $ (191) $ 611 $ 94 $ (2) $ (143)

35 [Alcoa logo] Reconciliation of Adjusted Income (in millions, except per- share amounts) Income (Loss) Diluted EPS Quarter ended Quarter ended 2011 June 30, 2012 2012 2011 June 30, 2012 2012 Net income (loss) attributable to Alcoa $ 172 $ (2) $ (143) $ 0.15 $ – $ (0.13) Loss from discontinued operations – – – Income (loss) from continuing operations attributable to Alcoa 172 (2) (143) 0.15 – (0.13) Restructuring and other charges 5 10 2 Discrete tax items* (10) 10 26 Other special items** (2) 43 147 Income from continuing operations attributable to Alcoa – as adjusted $ 165 $ 61 $ 32 0.15 0.06 0.03 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 include the following: • for the quarter ended September 30, 2012, unbenefitted losses in Italy, China, and Suriname ($35), a benefit as a result of including the anticipated gain from the sale of the Tapoco Hydroelectric Project in the calculation of the estimated annual effective tax rate ($12), and a net charge for other miscellaneous items ($3); • for the quarter ended June 30, 2012, a charge related to prior year U.S. taxes on certain depletable assets ($8) and a net charge for other miscellaneous items ($2); 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 September 30, 2012, an increase in the environmental reserve mostly related to the Grasse River remediation in Massena, NY and two new remediation projects at the smelter sites in Baie Comeau, Canada and Mosjøen, Norway ($120), a litigation reserve ($15), uninsured losses related to fire damage to the cast house at the Massena, NY location ($9), and a net unfavorable change in certain mark-to-market energy derivative contracts ($3); • 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); and • 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). September 30, September 30, September 30, September 30,

36 [Alcoa logo] Reconciliation of Adjusted Income, continued 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. (in millions) March 31, 2011 June 30, 2011 September 30, 2011 December 31, 2011 March 31, 2012 Net income (loss) attributable to Alcoa $ 308 $ 322 $ 172 $ (191) $ 94 (Loss) income from discontinued operations (1) (4) – 2 – Income (loss) from continuing operations attributable to Alcoa 309 326 172 (193) 94 Restructuring and other charges 5 16 5 155 7 Discrete tax items* – – (10 ) 12 – Other special items** 3 22 (2) (8) 4 Income (loss) from continuing operations attributable to Alcoa – as adjusted $ 317 $ 364 $ 165 $ (34) $ 105 * 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 March 31, 2012, a net unfavorable change in certain mark-to-market energy derivative contracts; 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).

37 [Alcoa logo] Reconciliation of Adjusted Income, continued (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 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).

38 [Alcoa logo] Reconciliation of Alcoa Adjusted EBITDA ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 20 10 2011 3Q11 2Q12 3Q12 Net income (loss) attributable to Alcoa $ 420 $ 938 $ 1,310 $ 1,233 $ 2,248 $ 2,564 $ (74) $ (1,151) $ 254 $ 611 $ 172 $ (2) $ (143) Add: Net income (loss) attributable to noncontrolling interests 181 212 233 259 436 365 221 61 138 194 53 (17) (32) Cumulative effect of accounting changes (34) 47 – 2 – – – – – – – – – Loss (income) from discontinued operations 101 – 27 50 (22) 250 303 166 8 3 – – – Provision (benefit) for income taxes 307 367 546 464 853 1,623 342 (574) 148 255 55 13 (33) Other (income) expenses , net (175) (278) (266) (478) (236) (1,920) (59) (161) 5 (87) 31 22 (2) Interest expense 350 314 271 339 384 401 407 470 494 524 125 123 124 Restructuring and other charges 398 (28) (29) 266 507 268 939 237 207 281 9 15 2 Provision for depreciation, depletion, and amortization 1,037 1,110 1,142 1,227 1,252 1,244 1,234 1,311 1,450 1,479 376 363 366 Adjusted EBITDA $ 2,585 $ 2,682 $ 3,234 $ 3,362 $ 5,422 $ 4,795 $ 3,313 $ 359 $ 2,704 $ 3,260 $ 821 $ 517 $ 282 Sales $17,691 $18,879 $21,370 $24,149 $28,950 $29 ,280 $26,901 $18 ,439 $21,013 $24,951 $ 6,419 $ 5,963 $ 5,833 Adjusted EBITDA Margin 15% 14% 15% 14% 19% 16% 12% 2% 13% 13% 13% 9% 5% 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.

39 [Alcoa logo] Reconciliation of Alumina Adjusted EBITDA ($ in millions, except per metric ton amounts) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q11 2Q12 3Q12 3Q12 YTD After-tax operating income (ATOI) $ 315 $ 415 $ 632 $ 682 $ 1,050 $ 956 $ 727 $ 112 $ 301 $ 607 $ 154 $ 23 $ (9) $ 49 Add: Depreciation, depletion, and amortization 139 147 153 172 192 267 268 292 406 444 117 114 120 348 Equity (income) loss (1) – (1) – 2 (1) (7) (8) (10) (25) (2) (1) (2) (4) Income taxes 130 161 240 246 428 340 277 (22) 60 179 42 (6) (22) (29) Other (14) (55) (46) (8) (6) 2 (26) (92) (5) (44) – (3) (1) (4) Adjusted EBITDA $ 569 $ 668 $ 978 $ 1,092 $ 1,666 $ 1,564 $ 1,239 $ 282 $ 752 $ 1,161 $ 311 $ 127 $ 86 $ 360 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 4,140 4,033 4,077 12,263 Adjusted EBITDA/Production ($ per metric ton) $ 44 $ 48 $ 68 $ 75 $ 110 $ 104 $ 81 $ 20 $ 47 $ 70 $ 75 $ 31 $ 21 $ 29 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.

40 [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 3Q11 2Q 12 3Q12 3Q12 YTD After-tax operating income (ATOI) $ 650 $ 657 $ 808 $ 822 $ 1,760 $ 1,445 $ 931 $ (612) $ 488 $ 481 $ 110 $ (3) $ (14) $ (7) Add: Depreciation, depletion, and amortization 300 310 326 368 395 410 503 560 571 556 137 133 130 398 Equity (income) loss (44) (55) (58) 12 (82) (57) (2) 26 (1) 7 4 9 5 16 Income taxes 266 256 314 307 726 542 172 (365) 96 92 21 (19) (19) (51) Other (47) 12 20 (96) (13) (27) (32) (176) (7) 2 – (1) 2 1 Adjusted EBITDA $ 1,125 $ 1,180 $ 1,410 $ 1,413 $ 2,786 $ 2,313 $ 1,572 $ (567) $ 1,147 $ 1,138 $ 272 $ 119 $ 104 $ 357 Production (thousand metric tons) (kmt) 3,500 3,508 3,376 3,554 3,552 3,693 4,007 3,564 3,586 3,775 964 941 938 2,830 Adjusted EBITDA/Production ($ per metric ton) $ 321 $ 336 $ 418 $ 398 $ 784 $ 626 $ 392 $ (159) $ 320 $ 301 $ 282 $ 126 $ 111 $ 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.

41 [Alcoa logo] Reconciliation of Global Rolled Products Adjusted EBITDA ($ in millions, except per metric ton amounts) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q11 2Q12 3Q12 3Q11 YTD 3Q12 YTD After-tax operating income (ATOI) $ 225 $ 222 $ 254 $ 278 $ 233 $ 178 $ (3) $ (49) $ 220 $ 266 $ 60 $ 95 $ 98 $ 240 $ 289 Add: Depreciation, depletion, and amortization 184 190 200 220 223 227 216 227 238 237 61 57 57 179 171 Equity loss 4 1 1 – 2 – – – – 3 – 2 1 – 4 Income taxes 90 71 75 121 58 92 35 48 92 104 26 43 44 94 136 Other (8) (5) 1 1 20 1 6 (2) 1 1 – – (2) – (2) Adjusted EBITDA $ 495 $ 479 $ 531 $ 620 $ 536 $ 498 $ 254 $ 224 $ 551 $ 611 $ 147 $ 197 $ 198 $ 513 $ 598 Total shipments (thousand metric tons) (kmt) 1,814 1,893 2,136 2,250 2,376 2,482 2,361 1,888 1,755 1,866 469 505 501 1,430 1,478 Adjusted EBITDA/Total shipments ($ per metric ton) $ 273 $ 253 $ 249 $ 276 $ 226 $ 201 $ 108 $ 119 $ 314 $ 327 $ 313 $ 390 $ 395 $ 359 $ 405 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 Engineered Products and Solutions Adjusted EBITDA 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. ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q11 2Q12 3Q12 3Q11 YTD 3Q12 YTD After-tax operating income (ATOI) $ 63 $ 124 $ 156 $ 271 $ 365 $ 435 $ 533 $ 315 $ 415 $ 539 $ 138 $ 160 $ 160 $ 417 $ 475 Add: Depreciation, depletion, and amortization 150 166 168 160 152 163 165 177 154 158 40 39 39 119 118 Equity loss (income) – – – – 6 – – (2) (2) (1) – – – 1 – Income taxes 39 55 65 116 155 192 222 139 195 260 67 77 79 201 228 Other 35 11 106 (11) (2) (7) 2 1 – (1) – – (1) (3) (1) Adjusted EBITDA $ 287 $ 356 $ 495 $ 536 $ 676 $ 783 $ 922 $ 630 $ 762 $ 955 $ 245 $ 276 $ 277 $ 735 $ 820 Total sales $ 3,492 $ 3,905 $ 4,283 $ 4,773 $ 5,428 $ 5,834 $ 6,199 $ 4,689 $ 4,584 $ 5,345 $ 1,373 $ 1,420 $ 1,367 $ 3,990 $ 4,177 Adjusted EBITDA Margin 8% 9% 12% 11% 12% 13% 15% 13% 17% 18% 18% 19% 20% 18% 20%

43 [Alcoa logo] Reconciliation of Free Cash Flow (in millions) Quarter ended March 31, 2011 June 30, 2011 September 30, 2011 December 31, 2011 March 31, 2012 June 30, 2012 September 30, 2012 Cash from operations $ (236) $ 798 $ 489 $ 1,142 $ (236) $ 537 $ 263 Capital expenditures (204) (272) (325) (486) (270) (291) (302) Free cash flow $ 164 $ 656 $ (506) 6 $ (39) 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. $ (440) $ 526 $ 24

44 [Alcoa logo] Reconciliation of Free Cash Flow, continued (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.

45 [Alcoa logo] Days Working Capital ($ in millions) Quarter ended September 30, 2011 June 30, 2012 September 30, 2012 Receivables from customers, less allowances $ 1,943 $ 1,575 $ 1,619 Add: Deferred purchase price receivable * – 141 81 Receivables from customers, less allowances, as adjusted 1,943 1,716 1,700 Add: Inventories 3,194 3,051 2,973 Less: Accounts payable, trade 2,488 2,633 2,590 Working Capital $ 2,649 $ 2,134 $ 2,083 Sales $ 6,419 $ 5,963 $ 5,833 Days Working Capital 38 33 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.

46 [Alcoa logo] Reconciliation of Net Debt-to-Capital ($ in millions) Quarter ended September 30, 2012 Debt-to-Capital Cash and Cash Equivalents Net Debt-to- Capital Total Debt Short-term borrowings $ 591 Commercial paper 43 Long-term debt due within one year 540 Long-term debt, less amount due within one year 8,350 Numerator $ 9,524 $ 1,432 $ 8,092 Total Capital Total debt $ 9,524 Total equity 16,854 Denominator $ 26,378 $ 1,432 $ 24,946 Ratio 36.1% 32.4% 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.