EX-99.2 3 d754442dex992.htm EX-99.2

2 nd Quarter Earnings Conference 1 July 8, 2014 [[Alcoa logo] Exhibit 99.2

[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,” “sees,” “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; targeted financial results or operating performance; statements about Alcoa’s strategies, outlook, and business and financial prospects; and statements regarding Alcoa’s portfolio transformation and the proposed acquisition of the Firth Rixson business, including the expected benefits of the transaction and Firth Rixson’s expected sales growth and contribution to revenues and EBITDA. These statements reflect beliefs and assumptions that are based on Alcoa’s perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Forward-looking statements are subject to a number of known and unknown risks and uncertainties and are not guarantees of future performance. Important factors that could cause actual results to differ materially from those expressed or implied 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 and premiums, as applicable, 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 aerospace, automotive, commercial transportation, building and construction, packaging, 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 or the unavailability or interruption of energy supplies; (f) increases in the costs of other raw materials; (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 and improving margins in its Global Rolled Products and Engineered Products and Solutions segments) anticipated from its restructuring programs and productivity improvement, cash sustainability, technology, 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, or from newly constructed, expanded, or acquired facilities, 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, imposition of sanctions, expropriation of assets, or other events beyond Alcoa’s control; (j) the outcome of contingencies, including legal proceedings, government investigations, and environmental remediation; (k) the impact of cyber attacks and potential information technology or data security breaches; (l) failure to receive, delays in the receipt of, or unacceptable or burdensome conditions imposed in connection with, all required regulatory approvals, or the inability to satisfy the other closing conditions to the proposed Firth Rixson acquisition; (m) the risk that the Firth Rixson business will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (n) Alcoa’s inability to complete financing for the Firth Rixson acquisition as contemplated or otherwise secure favorable terms for such financing; (o) the possibility that certain assumptions with respect to Firth Rixson or the proposed transaction could prove to be inaccurate; (p) the loss of customers, suppliers and other business relationships of Alcoa or Firth Rixson as a result of the proposed acquisition; and (q) the other risk factors summarized in Alcoa’s Form 10-K for the year ended December 31, 2013, Form 10-Q for the quarter ended March 31, 2014, and other reports filed with the Securities and Exchange Commission (SEC). Alcoa disclaims any obligation to update publicly any forward- looking statements, whether in response to new information, future events or otherwise, except asrequired by applicable law. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities. The common shares of Alcoa will only be issued pursuant to the terms of the definitive agreement for the acquisition of Firth Rixson. 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 accounting principles generally accepted in the United States of America. 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 to historical EBITDA means adjusted EBITDA, for which we have provided calculations and reconciliations in the Appendix and on our website. Alcoa has not provided a reconciliation of any forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure, due primarily to variability and difficulty in making accurate forecasts and projections, as not all of the information necessary for a quantitative reconciliation is available to Alcoa without unreasonable effort.

3 Transformation Accelerates - All Groups Improve QoQ and YoY 1) $8.1 billion debt and $518 million cash from operations 2) Alcoa Minerals of Jamaica bauxite mine and alumina refinery Any reference in our presentation to historical EBITDA means adjusted EBITDA, for which we have provided calculations and reconciliations in the appendix [[Alcoa logo] Delivering Strong Operational Performance Strong Earnings Increase: – Downstream: Highest Ever quarterly ATOI and EBITDA Margin; $204 million and 23.1% – Midstream: ATOI up 34% – Upstream: Improved Performance – 11 Consecutive Quarters Productivity: $302 million Across All Segments YoY Net Debt 1 : $6.9 billion; Lowest Level since September 2007 Positive Free Cash Flow 1 : $260 million 2Q 2014 Overview Accelerating Portfolio Transformation $2.85 billion Firth Rixson acquisition announcement Global Leader in Jet Engine Components; strengthens robust aerospace portfolio $100 million Investment Expands Structural Engine Component Reach $25 million Investment further Enhances Jet Engine Blade Performance Safely Executed Brazil Curtailments of 147 kmt Letter of Intent signed to Pursue Sale of Jamalco 2 Ownership Interest

William Oplinger Executive Vice President and Chief Financial Officer 4 July 8, 2014 [[Alcoa logo]

Income Statement Summary 5 Any reference in our presentation to EBITDA means adjusted EBITDA, for which we have provided calculations and reconciliations in the appendix. See appendix for Adjusted Income reconciliation. $ Millions, except aluminum prices and per-share amounts 2Q13 1Q14 2Q14 Prior Year Change Sequential Change Realized Aluminum Price ($/MT) $2,237 $2,205 $2,291 $54 $86 Revenue $5,849 $5,454 $5,836 ($13) $382 Cost of Goods Sold $4,933 $4,495 $4,765 ($168) $270 COGS % Revenue 84.3% 82.4% 81.6% (2.7 % pts.) (0.8 % pts.) Selling, General Administrative, Other $254 $236 $245 ($9) $9 SGA % Revenue 4.3% 4.3% 4.2% (0.1 % pts.) (0.1 % pts.) Other Expense, Net $19 $25 $5 ($14) ($20) Restructuring and Other Charges $244 $461 $110 ($134) ($351) Effective Tax Rate (16.5%) 28.1% 37.7% 54.2 % pts. 9.6 % pts. EBITDA $616 $672 $776 $160 $104 Net Income (Loss) ($119) ($178) $138 $257 $316 Net Income (Loss) Per Diluted Share ($0.11) ($0.16) $0.12 $0.23 $0.28 Income per Diluted Share excl Special Items $0.07 $0.09 $0.18 $0.11 $0.09 [[Alcoa logo]

Special Items 1) Total restructuring-related charges in 2Q14 of $54 million (83 percent non-cash, 17 percent cash) See appendix for Adjusted Income reconciliation 6 $ Millions, except per-share amounts 1Q14 2Q14 Income Statement Classification Segment Net Income (Loss) ($178) $138 Net Income (Loss) Per Diluted Share ($0.16) $0.12 Restructuring-Related¹ ($296) ($54) Restructuring/COGS/ Other Expenses, Net Corporate / Primary Metals/ GRP Tax Items $22 ($2) Income Taxes Corporate Master U.S. Labor Agreement $0 ($11) COGS Corporate / All Firth Rixson Acquisition Costs $0 ($11) SG&A Corporate Saudi Arabia Smelter Potline ($13) ($6) COGS Other Expenses, Net Primary Metals Mark-to-Market Energy Contracts $0 $6 Other Expenses, Net Corporate Surgold Gain $11 $0 Other Expenses, Net Alumina Special Items ($276) ($78) Net Income excl Special Items $98 $216 Net Income per Diluted Share excl Special Items $0.09 $0.18 [[Alcoa logo]

Volume, productivity and price drives sequential improvement 7 See appendix for Adjusted Income reconciliation Net Income excluding Special Items ($ Millions) Market +$33 Performance +$81 Cost Headwinds/Other +$4 26 6 24 22 21 38 13 46 216 98 2Q 14 Price / Mix Cost Increases / Other Raw Materials Energy Productivity LME Currency Volume 1Q 14 [[Alcoa logo]

Earnings nearly triple year-over-year on productivity and pricing 8 See appendix for Adjusted Income reconciliation Net Income excluding Special Items ($ Millions) Market -$10 Performance +$263 Cost Headwinds/Other -$113 131 8 10 188 63 12 18 28 216 76 2Q 14 Cost Increases / Other Raw Materials Energy Productivity Price / Mix Volume Currency LME 2Q 13 [[Alcoa logo]

Any reference in our presentation to EBITDA means adjusted EBITDA, for which we have provided calculations and reconciliations in the appendix. Record results for Engineered Products and Solutions 9 [[Alcoa logo] $ Millions 2Q 13 1Q 14 2Q 14 3 rd Party Revenue ($ Millions) 1,468 1,443 1,502 ATOI ($ Millions) 193 189 204 EBITDA Margin 22.2% 22.2% 23.1% 2 nd Quarter Results 2 nd Quarter Business Highlights 3 rd Quarter Outlook 2 nd Quarter Performance Bridge 2Q 14 $204 Labor negotiation costs -$1 Cost Increase -$1 Prod - uctivity $8 Price / Mix -$2 Volume $11 1Q 14 $189 2Q14 Actual and 3Q14 Outlook – Engineered Products and Solutions Revenue up 4% sequentially driven by share gains across all sectors Best ever quarterly EBITDA margin at 23.1% Best ever quarterly ATOI of $204M Quarterly ATOI up 6% year-over-year driven by productivity and strong Aerospace, Commercial Transportation and Building and Construction demand Aerospace market remains strong, but impacted by lower U.S. Defense spare parts demand Continued recovery in N.A. Non-Residential Construction; European market remains weak European summer slowdown across all sectors Stronger N.A. Heavy Duty Truck build rates partially offset by Europe Share gains through innovation & productivity continue across all sectors ATOI is expected to increase 5%-10% year- over-year

GRP improves on higher seasonal volume and productivity 10 Any reference in our presentation to EBITDA means adjusted EBITDA, for which we have provided calculations and reconciliations in the appendix. AIVs = Aluminum intensive vehicles. [[Alcoa logo] $ Millions 2Q14 Actual and 3Q14 Outlook – Global Rolled Products 2 nd Quarter Results 2 nd Quarter Business Highlights 2 nd Quarter Performance Bridge 2Q 14 $79 Labor Negotiation Costs -$4 Portfolio Actions $11 Cost Increases -$4 Prod- uctivity $6 Price / Mix -$8 Volume $21 Currency -$5 Metal $3 1Q 14 $59 Auto demand staying strong; AIVs ramping up Volume and cost absorption impacts due to seasonal summer shutdowns Continued pricing pressure in packaging and industrial 2Q 13 1Q 14 2Q 14 3 rd Party Revenue ($ Millions) 1,877 1,677 1,860 ATOI ($ Millions) 79 59 79 EBITDA/MT 322 315 313 3 rd Quarter Outlook Higher volume from seasonal Packaging and stronger demand for Industrial, Commercial Transportation Pricing pressures continue in Packaging and Industrial Costs associated with renewing the U.S. labor contract Absence of costs associated with portfolio actions in Australia ATOI is expected to be down ~ 15% sequentially; mainly seasonal impacts

Alumina earnings reflect portfolio actions, lower volumes, cost increases 11 [[Alcoa logo]

Strong Primary earnings reflect portfolio actions, power sales, premiums 12 [[Alcoa logo]

Four day year-over-year increase in average DWC See appendix for days working capital reconciliation 13 [[Alcoa logo] 5 days lower Average Days Working Capital since Second Quarter 2009 3 days lower 8 days lower 6 days lower 4 days higher 18 day reduction since 2Q09 4 day increase since 2Q2013 Driver Horizon Labor negotiations Near-term Future sales expectations Near-term Curtailments Near-term Automotive growth Mid-term

2 nd Quarter Cash Flow Overview 14 See appendix for Free Cash Flow reconciliation ($ Millions) 2Q13 1Q14 2Q14 Net Income before Noncontrolling Interests ($148) ($197) $129 DD&A $363 $340 $350 Change in Working Capital $72 ($687) $1 Pension Contributions ($98) ($91) ($191) Other Adjustments $325 $84 $229 Cash from Operations $514 ($551) $518 Dividends to Shareholders ($33) ($33) ($36) Change in Debt ($531) ($14) $296 (Distributions to)/Contributions from Noncontrolling Interests ($5) ($15) $4 Other Financing Activities $1 $72 $17 Cash from Financing Activities ($568) $10 $281 Capital Expenditures ($286) ($209) ($258) Other Investing Activities $10 ($31) ($28) Cash from Investing Activities ($276) ($240) ($286) 2Q13, 1Q14 & 2Q14 Cash Flow [[Alcoa logo]

15 See appendix for Net Debt reconciliation Lowest Net Debt since September 2007 7,082 6,872 1,481 1,543 1,939 1,861 1,437 665 1,183 6,882 8,338 9,816 762 2Q14 8,055 1Q14 7,747 2013 8,319 2012 8,829 6,968 2011 9,371 7,432 2010 9,165 7,622 2009 9,819 2008 10,578 (Millions) Debt to Cap Cash Net Debt 38.1% 42.5% 38.7% 34.9% 35.3% 34.8% 35.0% Debt, Net Debt, and Debt-to-Capital % 35.4% [[Alcoa logo]

16 On track to meet our 2014 targets On track to meet our 2014 targets [[Alcoa logo] Attain 30%-35% Debt-to-Capital Build Value-Add with Growth Capital of $500M Drive Productivity Gains of $850M Invest in Saudi JV $125M Overarching 2014 Financial Target Taking the right actions Manage Sustaining Capital of $750M $556M YTD: $206M $261M $64M 35.4% 2014 annual financial targets and year-to-date results

[Alcoa logo] 17 Market fundamentals remain positive See appendix for full scale charts

Klaus Kleinfeld Chairman and Chief Executive Officer July 8, 2014 [Alcoa logo]

Aerospace and Automotive markets remain strong; forecast unchanged 19 Source: Alcoa analysis 1) International Air Transport Association 2014 Expectations [[Alcoa logo]

Global HDT market steady, stronger N.A.; Packaging +2% to 3% globally 20 Source: Alcoa analysis HDT = Heavy duty truck and trailer [[Alcoa logo]

Solid commercial B&C growth; Global airfoil market down YoY 21 Source: Alcoa analysis B&C = Building and construction [[Alcoa logo] End Market Growth Global and Regional Commentary Industrial Gas Turbines Building and Construction -8% to -12% Global airfoil market decline • • • N.A.: Natural gas prices increased driven by harsh winter; coal gains share • Europe: Gas-fired power squeezed by low - priced coal and subsidized renewables NA 3-4% EU -2 - - 3% China 7-9% Positive Early Indicators: • • • • Growth as fundamentals stabilize 4% to 6% Global sales growth Alcoa End Markets: Current Assessment of 2014 vs. 2013 Non-Residential Contracts Awarded: +11% in May (12-month rolling average) Architectural Billing Index: Positive at 52.6 in May, up from 49.6 in April Spares demand: Negative Impact from shift in energy mix/usage in key regions • Case-Shiller Home Price Index: +10% in 1Q, growth; ~ +10% for 5 consecutive qtrs. Orders: Globally flat to 2012 and down significantly from 2011 levels Decline as weakness continues , outlook varies across markets

Executing our Strategy - Alcoa’s Transformation Continues 22 Invented Aluminum Process Aluminum Applications & Globalization Multi-Material Solutions Lightweight Multi-Material Innovation Powerhouse Highly Competitive Commodity Business [[Alcoa logo]

Lightweight Solutions: Fuel Efficiency + High Performance 1) Versus conventional aluminum 2) Based on conversion from Standard Steel to Wide-Base Aluminum 3) EDAG April 2013 AIV = Aluminum intensive vehicle 23 [[Alcoa logo] Alcoa’s innovative lightweighting solutions Ultra ONE™: World’s Lightest Wheel at 40 lbs AIVs: Better Fuel Economy , Superior Performance Al-Li: $100M Already contracted in 2017 Alcoa Wheels: $1B Revenue in 2016 Auto Sheet: $1.3B Revenue in 2018 Al-Li: Better Efficiency, Lower Maintenance Up to 10% lower weight vs. composite for single aisle fuselage applications Lower density ¹ (5-7%), Higher stiffness¹ (7%); contributes to 20% better fuel efficiency Better corrosion 47% lighter than steel; helps save up to 1,400 pounds per rig² 3% more payload; 5% lower fuel cost Replacing 18 Steel wheels offsets annual carbon footprint of average family of four Will enable OEMs to meet 54.5 MPG target by 2025 Can reduce weight of a midsize sedan by 28% and improve fuel efficiency by 18%³ 2015 F-150 up to 700 lbs lighter; accelerates, brakes, tows and resists corrosion like never before resistance¹; 2Xlonger inspection intervals, contributes to 30% lower costs

24 Expertise provides solutions in a Multi-Material Environment 1) The graphics represent a sample metallic and composite wing ; not attributed to a specific aircraft platform 2) Spars on composite wings are primarily CFRP (Carbon Fiber Reinforced Polymer), with some Al and Ti applications Note: Revenue per platform excludes ~$700k 2013 Firth Rixson revenue on B787

[Alcoa logo] Alcoa innovations Advanced Coatings: High Temp Protection Dura-Bright ® EVO™: Low Maintenance Reynobond ® : Unique Building Panels Alcoa 951: Breakthrough Durable Bonding Reynobond® Composite Material Coil coated outer sheet Coil coated inner sheet Polyethylene core +$1.8B value-add organic revenue 1 in 2016 Key enabler for AIVs; +1 mmt of Al by 2025 Chemically bonds aluminum to adhesive Bond 9x More Durable than competition Allows 20-25% fewer rivets Licensed to suppliers Alcoa’s Innovation Expertise Shines in our product offerings 25 1) $900M each from Engineered Products and Solutions and Global Rolled Products innovation and share gains 10x Corrosion Resistance No Mechanical or Chemical Cleaning Looks New Longer; 6x Brighter Increased environmental sustainability Protects Airfoils from Effects of High Temperature environments Coating Life 3.0x to 3.5x with Less high-cost Platinum Polyethylene core between sheets of Al, Zn, Cu or Stainless steel Multiple design options Up to 50% lighter, 20% less costly than solid metal Easier installation and fabrication

26 Capturing Growth in Advanced Jet Engine Components via Investments APP = Alcoa Power and Propulsion

Firth Rixson Acquisition: Strengthening Alcoa’s Value-Add Suite 27 [[Alcoa logo] Firth Rixson portfolio overview Largest seamless Rings (Ni-based alloys, TI) 200” in diameter Full Range of forged closed -die aero Engine Disks (12” to 53” diameter) Doubles Alcoa’s Engine Content on key programs Multi-Material mix; 60% Ni , 25% Ti , 15% Steel and Al Critical rotating Disks forged from Metal Powder Integrated Nickel Supply of cast stick and billet Specialized Isothermal process; State-of-the-Art Equipment , Automation , Controls Disks enable Higher Operating Temperatures (+70°F over legacy engines) 40% Improvement in Combustion Efficiency Strong Aerospace Offering Array of Material Composition Leading Edge Technology $1.6B Revenue $350M EBITDA in 2016

Remaining Cost Focused; Improving a Strong Alumina Position 1) All figures are pretax and pre-minority interest. 2009/2010 represent net productivity; 2011-2014 represent gross productivity 2) Alcoa Minerals of Jamaica bauxite mine and alumina refinery 28 [[Alcoa logo] Cost curve reduction levers and global alumina cost curve Capturing Cost Improvements 1 Optimizing Refining Capacity Pulling Additional Levers to Lower Cost $113M $246M $286M $298M $735M $1,678M 1H2014 2013 Total 2012 2011 2009/2010 1 2 3 Targeting 21 st Percentile by 2016 500 450 400 350 300 250 200 150 100 50 0 100 90 80 70 60 50 40 30 20 10 0 2013: 27 th Percentile 2010: 30 th Percentile 2016: 21 st Percentile $/MT Production (MMT) ALUMINA Source: CRU Cost Model, Alcoa Analysis -9% points by 2016 Record 1H production by Low Cost Australian System 1.7 mm t currently Curtailed LOI to pursue Sale of Jamalco 2 interest Continued Productivity Gains San Ciprian Natural Gas solution; complete in 4Q14; ~$20 per metric ton cost improvement First Saudi Arabia Bauxite in 2Q14; Refinery online 4Q14

Building a Highly Competitive Smelting Business 1) All figures are pretax and pre-minority interest. 2009/2010 represent net productivity; 2011-2014 represent gross productivity 2) Pt. Henry closure of 190 kmt will occur in 3Q 2014 Operating capacity = Alcoa total base capacity less idled capacity 29 [[Alcoa logo] Cost curve reduction levers and global aluminum cost curve $137M $235M $345M $340M $865M $1,922M 2009/2010 Total 1H2014 2013 2012 2011 Capturing Cost Improvements 1 Restructuring the Portfolio Pulling Additional Levers to Lower Cost Productivity Gains continue Secured Long Term Energy Agreement in Quebec Completed Saudi Arabia Smelter Start Up -28% 2,964 -253 2013 - 418 2012 -198 2010 2009 +234 2008 2011 1H2014 -239 +61 -344 2007 4,121 After executing announcements 1 2 3 2 Targeting 38 th Percentile by 2016 30 15 10 5 0 3,000 2,500 2,000 1,500 1,000 500 0 55 50 45 40 35 25 20 2013: 43 rd Percentile 2016: 38 th Percentile 2010: 51st Percentile Production (MMT) $/MT ALUMINUM Source:CRU Cost Model, AlcoaAnalysis -13% points by 2016 Total Smelting Operating Capacity (kmt)

Transforming Alcoa – Creating Compelling Sustainable Value 30 [[Alcoa logo] Value-Add and Upstream transformation strategy

[Alcoa logo]

Kelly Pasterick Vice President, 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 33 Currency Annual Net Income Sensitivity +/- $100/MT = +/- $240 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 34 1% 5% 9% 11% 7% 15% 14% 5% (10%) 17% (1%) 4% 4% 17% (5%) (9%) (5%) 27% (7%) 2% 17% 4% 7% 7% 8% 2% 13% 1% 13% 28% Aerospace Automotive B&C Comm. Transport Industrial Products IGT Packaging Distribution/Other Alumina Primary Metals 2Q’14 Third-Party Revenue Sequential Change Year-Over-Year Change [[Alcoa logo]

Special Items See appendix for Adjusted Income reconciliation. 35 Pre-tax, Before NCI After-tax, After NCI $ Millions, except per-share amounts 1Q14 2Q14 1Q14 2Q14 Income Statement Classification Segment Net Income (Loss) ($274) $207 ($178) $138 Net Income (Loss) Per Diluted Share ($0.25) $0.17 ($0.16) $0.12 Restructuring-Related ($499) ($110) ($296) ($54) Restructuring/COGS/ Other Expenses, Net Corporate / Primary Metals/ GRP Tax Items $0 $0 $22 ($2) Income Taxes Corporate Master U.S. Labor Agreement $0 ($17) $0 ($11) COGS Corporate / All Firth Rixson Acquisition Costs $0 ($13) $0 ($11) SG&A Corporate Saudi Arabia Smelter Potline ($13) ($6) ($13) ($6) COGS/ Other Expenses, Net Primary Metals Mark-to-Market Energy Contracts $0 $11 $0 $6 Other Expenses, Net Corporate Surgold Gain $28 $0 $11 $0 Other Expenses, Net Alumina Special Items ($484) ($135) ($276) ($78) Net Income excl Special Items $210 $342 $98 $216 Net Income per Diluted Share excl Special Items $0.19 $0.29 $0.09 $0.18 [[Alcoa logo]

Composition of Regional Premium Pricing Convention 36 2014E Shipments Regional Premiums Estimated Pricing Convention 55% Midwest – Platts 15-day lag 30% Rotterdam DDP – Metal Bulletin 45-day lag 10% CIF Japan – Platts Month prior to Quarter start 5% Negotiated Annual [[Alcoa logo]

Alcoa smelting closures and curtailments when announced actions are complete (1) Announced, but not executed 37 Location Year kmt Baie Comeau 2008 53 Eastalco 2010 195 Badin 2010 60 Warrick 2010 40 Tennessee 2011 215 Rockdale 2011 76 Baie Comeau 2013 105 Fusina 2013 44 Massena East 2013 41 Massena East 2014 84 Point Henry (1) 2014 190 Total 1,103 Alcoa smelting capacity closures, since Dec 2007 Location kmt Rockdale 191 Sao Luis 182 Portovesme 150 Pocos 96 Intalco 49 Wenatchee 41 Aviles 35 Portland 30 La Coruna 28 Total 803 Alcoa smelting capacity curtailments [[Alcoa logo]

All-in prices down despite increase in regional premiums 38 [[Alcoa logo]

Composition of Upstream Production Costs 1 Natural gas information corresponds to Point Comfort, as Australia is priced on a rolling 16 quarter average 39 [[Alcoa logo] Fuel Oil 13% Natural gas 11% Caustic 10% Bauxite 24% Conversion 42% Input Cost Inventory flow Pricing convention Annual ATOI Sensitivity Fuel oil 1 – 2 months Prior month $3m per $1/bbl Natural gas N/A Spot 1 $16m per $1/GJ 1 Caustic soda 3 - 6 months Spot & semi- annual $8m per $10/DMT Refining Cost Structure Alumina 33% Carbon 13% Power 24% Materials 7% Conversion 23% Smelting Cost Structure Input Cost Inventory flow Pricing convention Annual ATOI Sensitivity Coke 1 - 2 months Spot, quarterly & semi-annual $8m per $10/MT Pitch 1 - 2 months Spot, quarterly & semi-annual $2m per $10/MT

Reaffirm 7% global demand growth 40 Source: Alcoa estimates, Brook Hunt, CRU, Harbor [[Alcoa logo] 25.4 6.6 6.4 4.2 1.0 2.1 2.0 2.0 1.1 3% 10% 4% 2% 5% 5% 8% 8% 4% 5% 2014E 52.8 mmt * Other includes Africa, E.Europe , Latin America ex Brazil, and Oceania 2014 Primary Aluminum Consumption (mmt), Annualized Growth (%) China Europe North America North Asia India SE Asia MENA Russia Brazil Other * 2.0 2014 demand +7% World ex China +4%

Source: Alcoa analysis, Brook Hunt, CRU, CNIA, NBS, Chinese Customs Metal deficit rising, alumina surplus shrinking 41 [[Alcoa logo]

Source: Alcoa estimates, IAI, LME, Marubeni, Shanghai Metal Exchange Inventories declined 5 days in 2Q 42 [[Alcoa logo]

Premiums move to record highs Source: Monthly average of daily prices - Platts Metals Week 43 [[Alcoa logo]

Reconciliation of ATOI to Consolidated Net Income (Loss) Attributable to Alcoa 44 (in millions) 1Q13 2Q13 3Q13 4Q13 2013 1Q14 2Q14 Total segment ATOI $351 $304 $338 $224 $1,217 $325 $418 Unallocated amounts (net of tax): Impact of LIFO (2) 5 9 40 52 (7) (8) Interest expense (75) (76) (70) (73) (294) (78) (69) Noncontrolling interests (21) 29 (20) (29) (41) 19 9 Corporate expense (67) (71) (74) (72) (284) (67) (70) Impairment of goodwill – – – (1,731) (1,731) - - Restructuring and other charges (5) (211) (108) (283) (607) (321) (77) Other (32) (99) (51) (415) (597) (49) (65) Consolidated net income (loss) attributable to Alcoa $149 $(119) $24 $(2,339) $(2,285) $(178) $138 [[Alcoa logo]

Reconciliation of Adjusted Income 45 [[Alcoa logo] (in millions, except per - share amounts) (Loss) Income Diluted EPS Quarter ended Quarter ended June 30, March 31, June 30, June 30, March 31, June 30, 2013 2014 2014 2013 2014 2014 Net (loss) income attributable to Alcoa $(119) $(178) $138 $(0.11) $(0.16) $0.12 Restructuring and other charges 170 274 54 Discrete tax items* 11 (6) (2) Other special items** 14 8 26 Net income attributable to Alcoa – as adjusted $76 $98 $216 0.07 0.09 0.18 * Discrete tax items include the following: · for the quarter ended March 31, 2014, a net benefit for a number of small items; and ** Other special items include the following: · for the quarter ended June 30, 2013, a net unfavorable change in certain mark-to-market energy derivative contracts ($9) and the write off of inventory related to the permanent closure of two potlines at a smelter in Canada and a smelter in Italy ($5). · for the quarter ended June 30, 2013, a charge related to prior year taxes in Spain and Australia ($10), a benefit for a taxrate change in Jamaica ($2), and a net charge for other miscellaneous items ($3). · for the quarter ended June 30, 2014, a favorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit is recognized ($20), an unfavorable tax impact resulting from the difference between Alcoa’s consolidated estimated annual effective tax rate and the statutory rates applicable to restructuring and other charges ($24), costs associated with (i) a planned acquisition of an aerospace business ($11) and (ii) the successful execution of a new labor agreement with the United Steelworkers ($11), a netfavorable change in certain mark-to-market energy derivative contracts ($6), and an unfavorable impact related to the restart of one potline at the joint venture in Saudi Arabia that was previously shut down due to a period of pot instability ($6); · for the quarter ended March 31, 2014, a favorable tax impact resulting from the difference between Alcoa’s consolidated estimated annual effective tax rate and the statutory rates applied to restructuring and other charges ($72) (impact is expected to reverse by the end of 2014), an unfavorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($56) (impact is expected to reverse by the end of 2014), the write-off of inventory related to the permanent closure of a smelter and two rolling mills in Australia and a smelter in the United States ($20), an unfavorable impact related to the restart of one potline at the joint venture in Saudi Arabia that was previously shut down due to a period of pot instability ($13), a gain on the sale of a mining interest in Suriname ($11), and a loss on the writedownof an asset to fair value ($2); and Net income 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 Net (loss) income attributable to Alcoa determined under GAAP as well as Net income attributable to Alcoa –as adjusted. for the quarter ended June 30, 2014, a net benefit for a number of small items;

Reconciliation of Alcoa Adjusted EBITDA 46 [[Alcoa logo] ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2Q13 1Q14 2Q14 Net income (loss) attributable to Alcoa $938 $1,310 $1,233 $2,248 $2,564 $(74) $(1,151) $254 $611 $191 $(2,285) $(119) $(178) $138 Add: Net income (loss) attributable to noncontrolling interests 212 233 259 436 365 221 61 138 194 (29) 41 (29) (19) (9) Cumulative effect of accounting changes 47 – 2 – – – – – – – – – – – Loss (income) from discontinued operations – 27 50 (22) 250 303 166 8 3 – – – – – Provision (benefit) for income taxes 367 546 464 853 1,623 342 (574) 148 255 162 428 21 (77) 78 Other (income) expenses, net (278) (266) (478) (236) (1,920) (59) (161) 5 (87) (341) (25) 19 25 5 Interest expense 314 271 339 384 401 407 470 494 524 490 453 118 120 105 Restructuring and other charges (28) (29) 266 507 268 939 237 207 281 172 782 244 461 110 Impairment of goodwill – – – – – – – – – – 1,731 – – – Provision for depreciation, depletion, and amortization 1,110 1,142 1,227 1,252 1,244 1,234 1,311 1,450 1,479 1,460 1,421 362 340 349 Adjusted EBITDA $2,682 $3,234 $3,362 $5,422 $4,795 $3,313 $359 $2,704 $3,260 $2,105 $2,546 $616 $672 $776 Sales $18,879 $21,370 $24,149 $28,950 $29,280 $26,901 $18,439 $21,013 $24,951 $23,700 $23,032 $5,849 $5,454 $5,836 Adjusted EBITDA Margin 14.2% 15.1% 13.9% 18.7% 16.4% 12.3% 1.9% 12.9% 13.1% 8.9% 11.1% 10.5% 12.3% 13.3% 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.

Reconciliation of Alumina Adjusted EBITDA 47 [[Alcoa logo] ($ in millions, except per metric ton amounts) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2Q13 1Q14 2Q14 After-tax operating income (ATOI) $415 $632 $682 $1,050 $956 $727 $112 $301 $607 $90 $259 $64 $92 $38 Add: Depreciation, depletion, and amortization 147 153 172 192 267 268 292 406 444 455 426 115 97 100 Equity (income) loss – (1) – 2 (1) (7) (8) (10) (25) (5) 4 1 5 7 Income taxes 161 240 246 428 340 277 (22) 60 179 (27) 66 14 40 12 Other (55) (46) (8) (6) 2 (26) (92) (5) (44) (8) (6) – (28) – Adjusted EBITDA $668 $978 $1,092 $1,666 $1,564 $1,239 $282 $752 $1,161 $505 $749 $194 $206 $157 Production (thousand metric tons) ( kmt ) 13,841 14,343 14,598 15,128 15,084 15,256 14,265 15,922 16,486 16,342 16,618 4,161 4,172 4,077 Adjusted EBITDA / Production ($ per metric ton) $48 $68 $75 $110 $104 $81 $20 $47 $70 $31 $45 $47 $49 $39 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 non-operating 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.

Reconciliation of Primary Metals Adjusted EBITDA 48 [[Alcoa logo] ($ in millions, except per metric ton amounts) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2Q13 1Q14 2Q14 After-tax operating income (ATOI) $657 $808 $822 $1,760 $1,445 $931 $(612) $488 $481 $309 $(20) $(32) $(15) $97 Add: Depreciation, depletion, and amortization 310 326 368 395 410 503 560 571 556 532 526 132 124 129 Equity (income) loss (55) (58) 12 (82) (57) (2) 26 (1) 7 27 51 7 28 17 Income taxes 256 314 307 726 542 172 (365) 96 92 106 (74) (25) (11) 30 Other 12 20 (96) (13) (27) (32) (176) (7) 2 (422) (8) (3) – (5) Adjusted EBITDA $1,180 $1,410 $1,413 $2,786 $2,313 $1,572 $(567) $1,147 $1,138 $552 $475 $79 $126 $268 Production (thousand metric tons) ( kmt ) 3,508 3,376 3,554 3,552 3,693 4,007 3,564 3,586 3,775 3,742 3,550 896 839 795 Adjusted EBITDA / Production ($ per metric ton) $336 $418 $398 $784 $626 $392 $(159) $320 $301 $148 $134 $88 $150 $337 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 non-operating 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.

Reconciliation of Global Rolled Products Adjusted EBITDA 49 [[Alcoa logo] ($ in millions, except per metric ton amounts) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2Q13 1Q14 2Q14 After-tax operating income (ATOI) $232 $223 $232 $290 $300 $317 $151 $(41) $(106) $241 $260 $346 $252 $79 $59 $79 Add: Depreciation, depletion, and amortization 167 184 190 200 220 223 227 216 227 238 237 229 226 55 58 58 Equity loss 2 4 1 1 – 2 – – – – 3 6 13 2 5 6 Income taxes 112 90 77 97 135 113 77 14 12 103 98 159 108 32 34 23 Other (5) (8) (5) 1 1 20 1 6 (2) 1 1 (2) – – (2) 1 Adjusted EBITDA $508 $493 $495 $589 $656 $675 $456 $195 $131 $583 $599 $738 $599 $168 $154 $167 Total shipments (thousand metric tons) (kmt ) 1,863 1,814 1,893 2,136 2,250 2,376 2,482 2,361 1,888 1,755 1,866 1,943 1,989 521 489 533 Adjusted EBITDA / Total shipments ($ per metric ton ) $273 $272 $261 $276 $292 $284 $184 $83 $69 $332 $321 $380 $301 $322 $315 $313 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 non-operating 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.

Reconciliation of Engineered Products and Solutions Adjusted EBITDA 50 [[Alcoa logo] ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2Q13 1Q14 2Q14 After-tax operating income (ATOI) $126 $161 $276 $382 $423 $522 $311 $419 $537 $612 $726 $193 $189 $204 Add: Depreciation, depletion, and amortization 166 168 160 152 163 165 177 154 158 158 159 39 40 41 Equity loss (income) – – – 6 – – (2) (2) (1) – – – – – Income taxes 57 70 120 164 184 215 138 198 258 297 348 94 91 102 Other 11 106 (11) (2) (7) 2 1 – (1) (9) (2) – – – Adjusted EBITDA $360 $505 $545 $702 $763 $904 $625 $769 $951 $1,058 $1,231 $326 $320 $347 Third -party sales $3,905 $4,283 $4,773 $5,428 $5,834 $6,199 $4,689 $4,584 $5,345 $5,525 $5,733 $1,468 $1,443 $1,502 Adjusted EBITDA Margin 9.2% 11.8% 11.4% 12.9% 13.1% 14.6% 13.3% 16.8% 17.8% 19.1% 21.5% 22.2% 22.2% 23.1% 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 non-operating 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.

Reconciliation of Free Cash Flow 51 [[Alcoa logo] (in millions) Quarter ended 30-Sep-11 31-Dec-11 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14 Cash from operations $489 $1,142 $(236) $537 $263 $933 $(70) $514 $214 $920 $(551) $518 Capital expenditures (325) (486) (270) (291) (302) (398) (235) (286) (250) (422) (209) (258) Free cash flow $164 $656 $(506) $246 $(39) $535 $(305) $228 $(36) $498 $(760) $260 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.

Reconciliation of Free Cash Flow, continued 52 [[Alcoa logo] (in millions) Quarter ended 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09 31-Mar-10 30-Jun-10 30-Sep-10 31-Dec-10 31-Mar-11 30-Jun-11 Cash from operations $608 $(271) $328 $184 $1,124 $199 $300 $392 $1,370 $(236) $798 Capital expenditures (1,017) (471) (418) (370) (363) (221) (213) (216) (365) (204) (272) Free cash flow $(409) $(742) $(90) $(186) $761 $(22) $87 $176 $1,005 $(440) $526 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.

Days Working Capital 53 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 several financial institutions on a recurring basis. Alcoa is adding back this receivable for the purposes of the Days Working Capital calculation. ** Beginning January 1, 2014, management changed the manner in which Working Capital is measured by moving from an end of quarter Working Capital to an average quarter Working Capital. This change will now reflect the capital tied up during a given quarter. As such, the components of Working Capital for each period presented represent the average of the ending balances in each of the three months during the respective quarter. ($ in millions) Quarter ended 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14 Receivables from customers, less allowances $1,709 $1,650 $1,600 $1,573 $1,704 $1,483 $1,427 $1,383 $1,391 $1,401 Add: Deferred purchase price receivable* 85 144 104 53 50 223 347 339 238 371 Receivables from customers, less allowances, as adjusted 1,794 1,794 1,704 1,626 1,754 1,706 1,774 1,722 1,629 1,772 Add: Inventories 3,079 3,097 3,051 2,894 2,961 2,949 2,932 2,783 2,974 3,201 Less: Accounts payable, trade 2,660 2,594 2,496 2,587 2,656 2,820 2,746 2,816 2,813 2,880 Working Capital** $2,213 $2,297 $2,259 $1,933 $2,059 $1,835 $1,960 $1,689 $1,790 $2,093 Sales $6,006 $5,963 $5,833 $5,898 $5,833 $5,849 $5,765 $5,585 $5,454 $5,836 Days Working Capital 34 35 36 30 32 29 31 28 30 33 [[Alcoa logo]

Reconciliation of Net Debt 54 Net debt 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. (in millions) December 31, March 31, June 30, 2008 2009 2010 2011 2012 2013 2014 2014 Short-term borrowings $478 $176 $92 $62 $53 $57 $53 $133 Commercial paper 1,535 – – 224 – – – 223 Long-term debt due within one year 56 669 231 445 465 655 85 87 Long-term debt, less amount due within one year 8,509 8,974 8,842 8,640 8,311 7,607 7,609 7,612 Total debt 10,578 9,819 9,165 9,371 8,829 8,319 7,747 8,055 Less: Cash and cash equivalents 762 1,481 1,543 1,939 1,861 1,437 665 1,183 Net debt $9,816 $8,338 $7,622 $7,432 $6,968 $6,882 $7,082 $6,872 [[Alcoa logo]

Reconciliation of Net Debt-to-Capital 55 ($ in millions) March 31, 2014 June 30, 2014 Debt-to-Capital Cash and Cash Equivalents Net Debt-to-Capital Debt-to-Capital Cash and Cash Equivalents Net Debt-to-Capital Total Debt Short-term borrowings $53 $133 Commercial paper – 223 Long-term debt due within one year 85 87 Long-term debt, less amount due within one year 7,609 7,612 Numerator $7,747 $665 $7,082 $8,055 $1,183 $6,872 Total Capital Total debt $7,747 $8,055 Total equity 14,374 14,706 Denominator $22,121 $665 $21,456 $22,761 $1,183 $21,578 Ratio 35.0% 33.0% 35.4% 31.8% 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. [[Alcoa logo]