EX-99.2 3 d47305dex992.htm EX-99.2

3rd Quarter Earnings Conference

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October 8, 2015

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Exhibit 99.2

Forward-Looking Statements This presentation contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “intends,” “may,” “outlook,” “plans,” “projects,” “seeks,” “sees,” “should,” “targets,” “will,” “would,” 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, supply/demand balances, and growth of the aerospace, automotive, and other end markets; statements regarding targeted financial results or operating performance; statements about Alcoa’s strategies, outlook, business and financial prospects, and the acceleration of Alcoa’s portfolio transformation; and statements regarding the separation transaction, including the future performance of Value-Add Company and Upstream Company if the separation is completed, the expected benefits of the separation, the expected timing of completion of the separation, and the expected qualification of the separation as a tax-free transaction. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained and it is possible that actual resultsmay differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Such risks and uncertainties include, but are not limited to: (a) uncertainties as to the timing of the separation and whether it will be completed; (b) the possibility that various closing conditions for the separation may not be satisfied; (c) failure of the separation to qualify for the expected tax treatment; (d) the possibility that any third-party consents required in connection with the separation will not be received; (e) the impact of the separation on the businesses of Alcoa; (f) the risk that the businesses will not be separated successfully or such separation may be more difficult, time-consuming or costly than expected, which could result in additional demands on Alcoa’s resources, systems, procedures and controls, disruption of its ongoing business and diversion of management’s attention from other business concerns; (g) material adverse changes in aluminum industry conditions; (h) deterioration in global economic and financial market conditions generally; (i) unfavorable changes in the markets served by Alcoa; (j) the impact of changes in foreign currency exchange rates on costs and results; (k) increases in energy costs; (l) the 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 the Upstream Company’s alumina refining and aluminum smelting businesses down on the industry cost curves and increasing revenues and improving margins in the Value-Add Company’s businesses) anticipated from restructuring programs and productivity improvement, cash sustainability, technology advancements (including, without limitation, advanced aluminum alloys, Alcoa Micromill, and other materials and processes), and other initiatives; (m) Alcoa’s inability to realize expected benefits, in each case as planned and by targeted completion dates, from acquisitions, divestitures, facility closures, curtailments, or expansions, or international joint ventures; (n) political, economic, and regulatory risks in the countries in which Alcoa operates or sells products; (o) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; (p) the impact of cyber attacks and potential information technology or data security breaches; (q) the potential failure to retain key employees while the separation transaction is pending or after it is completed; (r) the risk that increased debt levels, deterioration in debt protection metrics, contraction in liquidity, or other factors could adversely affect the targeted credit ratings for Value-Add Company or Upstream Company; and (s) the other risk factors discussed in Alcoa’s Form 10-K for the year ended December 31, 2014, and other reports filed with the U.S. 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 as required by applicable law.Market projections are subject to the risks discussedabove and other risks in the market. Important Information 2

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3 Important Information (continued) Non-GAAP FinancialMeasures 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 (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. Alcoa has not provided a reconciliation of any forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures, 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 withoutunreasonable effort.Any referenceto historical EBITDAmeans adjustedEBITDA, for which we haveprovided calculations and reconciliations in the Appendix.

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Klaus Kleinfeld

Chairman and Chief Executive Officer

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October 8, 2015

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Strengthening Businesses Against Market Headwinds $5.6B revenue: 21% decline YoY f rom divestitures, closures and market headwinds, partially of fset by 10% increase f rom aerospace and automotive growth, acquisitions and Alumina sales $109 million1 adjusted net income and $698 million1 EBITDA: Strong productivity, solid value-add profitability, and Alumina strength – Value-add: $3.4B revenue, $257 million ATOI and $508 million adjusted EBITDA Engineered Products and Solutions: Record revenue of $1.4B; YoY aerospace revenue up 39% Global Rolled Products: YoY auto sheet revenue up 133% – Upstream: $2.2B revenue, $153 million ATOI and $379 million adjusted EBITDA Best Alumina profitability 3Q YTD ATOI result since 2007, offset by Primary Metals as Midwest transaction price declined 27% YTD Productivity Gains: $287 million YoY and YTD of $849 million across all segments Free Cash Flow: $152 million; Cash f rom Operations of $420 million; Cash on Hand: $1.7B 3Q 2015 Overview Successful Transformation – Launching Two Companies Culminating multi-year transformation: Creates two distinct industry leaders – Value-Add Co: Premier Provider of high performance multi-material products in growth markets – Upstream Co: Attractive Portfolio in bauxite, alumina, energy, aluminum, casting Completed RTI acquisition, growing titanium offerings and advanced manufacturing technologies – On track for f inancial targets and driving contract wins Signed two signif icant multi-year aero contracts – ~$1.1B Multi-year agreement with Lockheed to provide 100% of titanium milled products for F-35 – ~$1B Multi-year agreement with Airbus for multi-material superalloy fastening systems Advanced commercialization of MicromillTM revolutionary technology – Reached joint development agreement with Ford; shipments for 2016 F-150 starting in Q415 – Executed Letter of Intent with Danieli Group to license technology worldwide 5 1) Reported earnings of $44 million in 3Q15. EBITDA includes $52 million of special items. See appendix for adjusted earnings and EBITDA reconciliations. Strong Value Creation Focus—Managing through Headwinds

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William Oplinger

Executive Vice President and Chief Financial Officer

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October 8, 2015

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Income Statement Summary

See appendix for EBITDA and Adjusted Income reconciliations $ Millions, except aluminum prices and per-share amounts 3Q14 2Q15 3Q15 Prior Year Change Sequential Change Realized Aluminum Price ($/MT) $2,538 $2,180 $1,901 ($637) ($279) Revenue $6,239 $5,897 $5,573 ($666) ($324) Cost of Goods Sold $4,904 $4,663 $4,559 ($345) ($104) COGS % Revenue 78.6% 79.1% 81.8% 3.2 % pts. 2.7 % pts. Selling,General Administrative, Other $243 $224 $261 $18 $37 SGA % Revenue 3.9% 3.8% 4.7% 0.8 % pts. 0.9 % pts. Other Expenses (Income), Net $23—($15) ($38) ($15) Restructuring and Other Charges $209 $217 $66 ($143) ($151) Effective Tax Rate 60.3% 26.6% 48.6% (11.7 % pts.) 22.0 % pts. EBITDA $1,035 $942 $698 ($337) ($244) Net Income $149 $140 $44 ($105) ($96) Net Income per Diluted Share $0.12 $0.10 $0.02 ($0.10) ($0.08) Income excl. Special Items $370 $250 $109 ($261) ($141) Income per Diluted Share excl.Special Items $0.31 $0.19 $0.07 ($0.24) ($0.12)

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Special Items

1) See appendix for Adjusted Income reconciliation

8 $ Millions, except per-share amounts 3Q14 2Q15 3Q15 Income Statement Classification Segment Net Income $149 $140 $44 Net Income per Diluted Share $0.12 $0.10 $0.02 Restructuring-Related ($202) ($143) ($43) Restructuring and Other Charges/COGS Corporate/ Primary Metals Tax Items—$22 ($15) Income Taxes Corporate/GRP Gain on Asset Sale $9 $19 $25 Other Income, Net Corporate Portfolio Transaction Costs ($14) ($5) ($22) SG&A/Interest Expense Corporate Mark-to-Market Energy Contracts ($14) ($3) ($10) Other Expenses, Net Corporate Special Items ($221) ($110) ($65) Net Income excl. Special Items $370 $250 $109 Net Income per Diluted Share excl. Special Items $0.31 $0.19 $0.07

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Adjusted Earnings Down on Pricing Partly Offset by Productivity

See appendix for Adjusted Income reconciliation

9 Net Income excluding Special Items ($ Millions) Market -$139 Performance +$61 Cost Headwinds -$183 $0 $186 $19 $99 $109 $370 3Q 15 -$9 RTI Acquisition -$102 -$72 Cost Increases / Other Energy Raw Materials Price / Mix -$144 Productivity Volume Currency API -$19 LME -$219 3Q 14

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1The 3Q14 amount has been updated to remove the impact of metal price lag, consistent with the 2Q15 and 3Q15 presentation.

See appendix for additional information and EBITDA reconciliation.

EPS: Record Revenue up 35% Year-Over-Year; Aerospace up 39% $ Millions 3Q 14 2Q 15 3Q 15 3rd Party Revenue ($ Millions) 1,034 1,279 1,397 ATOI1 ($ Millions) 155 165 151 EBITDA Margin1 25.7% 23.5% 20.3% 4th Quarter Year-over-Year Outlook 3rd Quarter ATOI Performance Bridge 3Q15 Actual and 4Q15 Outlook – Engineered Products and Solutions Aerospace market remains strong Oil & Gas and European Industrial Gas Turbine markets remain soft Pricing pressure across all markets Share gains through innovation and productivity continue across all sectors ATOI is expected to increase 2%-5% year over year including unfavorable RTI purchase accounting of $10M and currency pressures of $3M Record 3Q Revenue, up 35% year-over-year; Aerospace up 39% Revenue growth driven mainly by acquisitions and supported by share gains, partially offset by currency Unfavorable currency ATOI impact of $6M RTI integration ATOI impact of $7M including $16M of unfavorable purchase accounting and one-time charges 3rd Quarter ATOI Results 3rd Quarter Business Highlights $53 $18 $151 $155 3Q15 RTI Acquisition -$7 Cost Increase -$29 Productivity Price / Mix -$20 Volume Currency -$6 3Q14 -$13 Growth Projects

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TCS: Strong Productivity Offset by Currency and Cost Headwinds

1The 3Q14 amount has been updated to remove the impact of metal price lag, consistent with the 2Q15 and 3Q15 presentation.

See appendix for additional information and EBITDA reconciliation. $ Millions 3Q 14 2Q 15 3Q 15 3rd Party Revenue ($ Millions) 523 492 475 ATOI1 ($ Millions) 50 44 44 EBITDA Margin1 15.5% 14.4% 15.2% 4th Quarter Year-over-Year Outlook 3rd Quarter ATOI Performance Bridge 3Q15 Actual and 4Q15 Outlook – Transportation and Construction Solutions $44 $20 $50 Cost Increase 3Q15 -$17 Productivity Price / Mix -$1 Volume -$3 Currency -$5 3Q14 Continued recovery in N.A. Non-Residential Construction; weakness in Europe N.A. Heavy Duty Truck build rates expected to decline slightly; Europe will continue its gradual improvement Productivity gains to continue ATOI is expected to increase 15%-20% year-over-year, including unfavorable currency pressures of $5M Revenue down 9% year-over-year; up 1% excluding currency Non-Residential Construction: uneven recovery in N.A., European weakness continues Improved N.A. Heavy Duty Truck build rates; gradual recovery in Europe Brazil market weakness impacting Latin American extrusions Unfavorable currency ATOI impact of $5M, due to stronger U.S. dollar 3rd Quarter ATOI Results 3rd Quarter Business Highlights

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2 |  | GRP: Auto Sheet Sales +133%; Capacity and Innovation Investments

1The 3Q14 amount has been updated to remove the impact of metal price lag, consistent with the 2Q15 and 3Q15 presentation.

See appendix for additional information and EBITDA reconciliation. 3Q 14 2Q 15 3Q 15 3rd Party Revenue ($ Millions) 1,926 1,668 1,527 ATOI1 ($ Millions) 69 76 62 EBITDA/MT1 ($) 312 342 330 3Q15 Actual and 4Q15 Outlook – Global Rolled Products $ Millions Auto sheet sales up 133% year over year Unfavorable currency impacts of $7M Volume and pricing pressures f rom weak/slowing economies in Brazil, Russia, China and packaging Strong productivity partially of fset by cost increases Continued investments of $13M in Growth projects including MicromillTM R&D and throughput/capacity increases at key plants Auto sheet shipments expected to be up 25% Expect continued volume and pricing pressure f rom weaker developing economies as well as packaging Tennessee Auto and Texarkana casthouse ramp-up costs ATOI is expected to be flat year-over-year, including $6M of Auto related start-up costs, and current currency rates 4th Quarter Year-over-Year Outlook 3rd Quarter ATOI Performance Bridge 3rd Quarter Business Highlights 3rd Quarter ATOI Results $62 $34 $13 $69 -$21 -$6 -$7 -$13 -$7 3Q15 Portfolio Actions Cost Incr./ Other Prod-uctivity Price / Mix Volume Currency 3Q14 Growth Projects

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Alumina: Best YTD Profitability Since 2007

13 $ Millions 3Q15 Actual and 4Q15 Outlook – Alumina $16 $2 $9 $13 $7 $28 Energy Cost Incr. / Other 3Q15 $212 Prod-uctivity Price / Mix Volume Currency API -$67 -$11 LME 2Q15 $215 Shipments up versus Q2’15 Lower pricing partially offset by favorable currency Benefit from increasing mix of API shipments, volume increases and productivity improvements Saudi Arabia refinery continuing to ramp-up ~75% of 3rd party alumina shipments on API or spot pricing for 2015 API pricing follows 30-day lag; LME pricing follows 60-day lag Production down 120KMT due to Suriname curtailment ATOI expected to be up $10M excluding the impacts of pricing and currency 3Q 14 2Q 15 3Q 15 Production (kmt) 4,196 3,977 3,954 3rd Party Shipments (kmt) 2,714 2,706 2,798 3rd Party Revenue ($ Millions) 886 924 912 3rd Party Price ($/MT) 320 337 323 ATOI ($ Millions) 62 215 212 3rd Quarter ATOI Results 3rd Quarter Business Highlights 3rd Quarter ATOI Performance Bridge 4th Quarter Sequential Outlook

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Primary Metals: Pricing Pressures Drive Loss

14 $ Millions 3Q15 Actual and 4Q15 Outlook – Primary Metals -$21 -$65 -$4 -$59 $67 3Q15 Cost Incr. / Other $31 Energy Prod- uctivity $11 Price / Mix Volume Currency $10 API $5 LME -$93 2Q15 Realized price declines ~13% sequentially Productivity and cost control more than offset unfavorable energy costs in Spain and the United States Energy sales down due to lower prices and currency in Brazil Pricing follows a 15-day lag to LME Production level similar to 3rd quarter Lower energy costs and favorable energy sales ATOI expected to be up $15M excluding impacts of pricing and currency 3Q 14 2Q 15 3Q 15 Production (kmt) 760 701 700 3rd Party Shipments (kmt) 642 630 615 3rd Party Revenue ($ Millions) 1,865 1,534 1,249 3rd Party Price ($/MT) 2,538 2,180 1,901 ATOI ($ Millions) 245 67 (59) 3rd Quarter ATOI Results 3rd Quarter Business Highlights 3rd Quarter ATOI Performance Bridge 4th Quarter Sequential Outlook

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Base Business DWC Improves Year-over-Year, Acquisitions Add 9 days

See appendix for days working capital reconciliation

15 4 days lower Average Days Working Capital since Third Quarter 2010 4 days lower 40 34 33 28 32 33 30 28 31 29 32 30 36 35 34 36 40 40 40 37 44 3Q12 2Q12 1Q12 4Q11 3Q11 2Q11 3Q15 2Q15 1Q15 4Q14 3Q14 2Q14 1Q14 4Q13 3Q13 2Q13 1Q13 4Q12 1Q11 4Q10 3Q10 5 days lower 8 days higher Acquisitions (9 days) Alcoa ex-Acquisitions (31 days) 31 13 days Lower from base business >$800M Cash 1 day lower from base business 1 day higher

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Strong Cash Generation; Cash Balance at $1.7 Billion

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See appendix for Free Cash Flow reconciliation ($ Millions) 3Q14 2Q15 3Q15 Net Income before Noncontrolling Interests $131 $207 $106 Depreciation, Depletion and Amoritization $346 $320 $318 Change in Working Capital ($411) $44 $38 Pension Expense in Excess of Contributions ($61) $37 ($72) Australian Gas Prepayment—($300)—Other Adjustments $244 $164 $30 Cash from Operations $249 $472 $420 Dividends to Shareholders ($36) ($55) ($40) Issuance of Preferred Stock $1,213 — Change in Debt $981 ($38) ($9) Net (Distributions)/Contributions from Noncontrolling Interests ($20) ($42) ($1) Other Financing Activities $2 $2 ($2) Cash from Financing Activities $2,140 ($133) ($52) Capital Expenditures ($283) ($267) ($268) Acquisitions/Divestitures/Asset Sales $5 $67 $354 Other Investing Activities ($3) ($20) ($4) Cash from Investing Activities ($281) ($220) $82 Free Cash Flow ($34) $205 $152 Cash on Hand $3,272 $1,311 $1,739 3Q14, 2Q15 and 3Q15 Cash Flow [Alcoa logo]

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LTM = last twelve months; See appendix for Net Debt and LTM EBITDA reconciliations.

Leverage within target range of 2.25 to 2.75 1,543 1,939 1,861 1,437 1,877 1,191 1,311 1,739 3Q15 9,277 7,538 1Q15 8,817 7,626 2014 8,852 6,975 2013 8,319 6,882 2012 8,829 6,968 2011 9,371 7,432 2010 9,165 7,622 7,478 8,789 2Q15 ($ Millions) Net Debt Cash Debt-to-LTM EBITDA 3.27 3.39 2.87 Debt, Net Debt, and Debt-to-LTM EBITDA 2.49 4.20 2.22 2.12 2.44

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Maintaining Our 2015 Financial Targets

See appendix for EBITDA reconciliation. Attain 2.25 to 2.75 Debt-to-EBITDA Manage Return-Seeking Capital of $750M Drive Productivity Gains of $900M Overarching 2015 Financial Target Taking the Right Actions Control Sustaining Capital of $725M Target $500M Free Cash Flow $849M YTD: $408M $389M 2.44 2015 Annual Financial Targets and Year-to-Date Results

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6.5% 2015E Demand Growth

Market Fundamentals Remain Mixed

Aluminum and Alumina Surplus Tightening

Global Inventories at 62 days; -2 days YoY

Continued Weakness in Regional Premiums

See appendix for full scale charts

19 $0 $100 $200 $300 $400 $500 $600 $0 $100 $200 $300 $400 $500 $600 Regional Premiums over time $ per metric ton $ per metric ton Region 3Q15Average Europe $156/MT Japan $96/MT Midwest USA $175/MT Average 3Q15 vs. 3Q14 Europe -66% Japan -76% Midwest USA -62% $1,000 $1,500 $2,000 $2,500 $3,000 07 14 21 28 35 42 49 56 63 70 77 84 91 98 105 China Incl SRB Producer Japan Port LME On Warrant Cancelled Warrants Off Exchange LME Cash Days of Consumption 108 days LME Cash Price $2,180/MT Days of Consumption 83 days LME Cash Price $2,663/MT Global Inventories -46 days from the ’09 peak; -2 days YoY Days of Consumption Days of Consumption 62 days LME Cash Price $1,601/MT $ per metric ton Global inventories vs. LME price over time $Days of Consumption 64 days LME Cash Price $1,992/MT 29.1 6.7 6.7 4.3 2.3 2.1 2.1 1.0 0.9 9.3% 1.5% 5% 1% 10% 7% 4% 5% -3% -3% 57.4 mmt 1 Other includes Af rica, E. Europe, Latin America ex Brazil, and Oceania 2015E Primary Aluminum Consumption (mmt), Annualized Growth (%) China Europe North America North Asia India SE Asia MENA Russia Brazil Other ¹ 2.1 2015 demand +6.5% World ex China +3.5% 2015E Aluminum Supply/Demand Balance 2015E Alumina Supply/Demand Balance Supply/Demand Analysis 0.0 0.5 1.0 1.5 2.0 2.5 2.7 2.4 2.2 2.0% 2.5% 2.2% Surplus Deficit Expect 2016 Balance 1Q Estimate 2Q Estimate 3Q Estimate 551 1.0% 0.6% 1.3% 762 326 Expect 2016 Deficit 1Q Estimate 2Q Estimate 3Q Estimate Surplus/ deficit as % of market / mmt Surplus Deficit Surplus/ deficit as % of market / kmt [Alcoa logo]

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Klaus Kleinfeld

Chairman and Chief Executive Officer

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October 8, 2015

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Aerospace Remains Strong; Steady Growth in Automotive Source: Alcoa analysis 1) International Air Transport Association 2015 Expectations. 2) IHS annual study (July 29th 2015). N.A. Auto production as of Aug 2015; U.S. sales, inventory and incentives as of Sept 2015. Europe and China Auto data as of Aug 2015. End Market 2015 Growth Global and Regional Commentary Aerospace 8% to 9% Global sales growth • Large Commercial Aircraft segment Growth of 8.3% • Strong Commercial Jet Engine Order Book: ~23,800 Engines on firm order • Strong demand continues after Paris Air Show including Boeing’s $38B in orders and commitments from China (a new record) and Airbus’ $26.5B from IndiGo • Strong Commercial Jet Order Book: >9 Years of Production at 2014 delivery rates • Solid Airline Fundamentals1: +6.7% Passenger and +5.5% Cargo Demand, Dramatic Improvement in Airline Profitability ($29B in 2015E) Alcoa End Markets: Current Assessment of 2015 vs. 2014 jdagu Automotive 1% to 3% Global production growth N.A. 2% to 4% E.U. 1% to 3% China 1% to 2% • Strong Sales: U.S. sales +5.1% YTD; Light Truck penetration at all-time high of 58.3% • Sustained Pent Up Demand: Average vehicle age 11.5 years2 vs. prior recording of 11.4 • Production Up: +2.8% YTD (11.6M vehicles) • Inventory Down: 59 days, -5 YoY (industry target is 60-65 days) • Incentives Up: +5.7% YoY ($3,144/unit), driven by Passenger Cars +12.5% YoY • Production Up: +2.1% YTD; W. Eur continues to improve, offsetting decline in Russia • Registrations: +8.6% YTD; Exports +3.0% vs. prior year (2015 forecast) • Production Slowing: +1.3% YTD and -7.8% YoY Aug • Sales +1.5% YTD and -2.1% YoY Aug on softening Consumer Confidence • Moderated growth driven by increasing middle class, affordability, and Clean Air Act

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Heavy Duty Truck – U.S.: Strong, China: Weak; Packaging Stable

Source: Alcoa analysis. Heavy Duty Truck: YTD and YoY data for production and orders as of Aug 2015; Freight ton miles as of Sept 2015.

W. Eur Registrations as of Aug 2015. Packaging: YTD figures as of Aug 2015. End Market 2015 Growth Global and Regional Commentary Packaging 2% to 3% Global sales growth N.A. -1% to -2% E.U. 1% to 2% China 8% to 12% • Demand decline: Weakness (-2.0% YTD) in Carbonated Soft Drinks (CSD) • Moderate growth in Beer Segment (+1.5% YTD) to partially offset CSD • Growth led by Steel to Aluminum conversion in Western Europe, partially offset by declines in Eastern Europe • Growth driven by continued penetration of Aluminum in Beer segment Alcoa End Markets: Current Assessment of 2015 vs. 2014 Heavy Duty Truck and Trailer N.A. 9% to 11% E.U. 1% to 3% China -22% to -24% -7% to -9% Global production decline • Production Up: Western Europe +1.0% YoY in Aug and +5.2% YTD • Improving conditions in W.Eur: Orders +10.4% YTD, Registrations +20.7% YTD • Production Down: -32.2% YTD; Strong pull-ahead demand in 2014 due to stage IV regulations; 4Q15 forecasted to normalize from regulatory conditions • Peaked Production: +15.8% YTD though decelerating, 4Q15F down -8.8% from 3Q15 • Decreasing Orders: -10.9% YTD, after record 4Q14 orders • Diminishing Order Book: +20.3% YoY at 147k trucks, yet down -15% from end 2014 • Solid Fundamentals: +1.7% freight tonmiles (YTD); +9.0% Fleet profitability (2Q15 YoY)

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Solid Commercial B&C Growth; Global Airfoil Market Improves

Source: Alcoa analysis

B&C = Building and construction. End Market 2015 Growth Global and Regional Commentary Industrial Gas Turbines Building and Construction 3% to 4% Global airfoil market growth N.A. 4% to 5% E.U. -2% to -3% China 4% to 6% 4% to 6% Global sales growth Alcoa End Markets: Current Assessment of 2015 vs. 2014 Positive Early Indicators: • Non-Residential Contracts Awarded: +12.1% in Aug (mean of 12-month rolling average) • Architectural Billings Index Mixed in 2015: Growth punctuated by temporary decline; positive for 5 months and negative for 3 months (Jan, Apr and Aug) • Case-Shiller Home Price Index: +4.7% YoY Jul; Growth moderated since 1Q14 (10%+) • Decline as weakness continues, outlook varies across markets • Market drivers—industrial and manufacturing sectors—softening in recent months • Slower industrial production growthat +6.1% Aug and +6% Jul (vs.+6.8% in Jun) • Market moving towards higher value-add product as customers develop new, high efficiency turbines with advanced technology • U.S. (60 Hz) gas-fired generation +19.7% YTD Jul driving strong demand for spares and component upgrades on existing turbines • Tempered by EU (50 Hz) demand which remains soft due to subsidized renewables

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Completing Transformation – Creating Two Industry Leaders

SEC: Securities and Exchange Commission Premier Provider of High-Performance Multi-Material Solutions Offers Two Top-Tier Investment Choices Creates Two Distinct Global Leaders StrongUpstream Leader Built for Success Throughout the Cycle Timing: • Target completion in the second half of 2016 Critical Closing Conditions: • Final approval from Alcoa Board of Directors • Receipt of opinion of counsel with respect to the tax-free nature of the transaction • Effectiveness of a Form 10 filing with the U.S. SEC Target Prudent Capital Structures: • Value-Add Co. target of investment grade rating Current intent: Debt of Alcoa would be retained by the Value-Add Company • Upstream Co. target of strong non-investment grade rating Expect customary one-time charges driven by the transaction Separation into Two Industry-Leading Companies Our Path to Successful Completion Will provide Progress Updates Separation Rationale and Path to Completion

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1) CRU analysis. 2) Mined in 2014, including equity interests. 3) CRU and Alcoa analysis.

BDMT = Bone Dry Metric Ton

Launching Two Strong Companies—Driving Value Separating into Value-Add Co. and Upstream Co. Alcoa Value-Add Co. Lightweight Multi-Material Innovation Powerhouse Upstream Co. Globally Competitive Upstream Business Premier provider of high-performance advanced multi-material products and solutions Positioned to grow in growth markets with significant customer synergies e.g., aerospace, automotive, commercial transportation, building and construction Expanded multi-material technology and process expertise Innovation leader with full pipeline of products & solutions Successfully shifting productmix to higher value-add Robust margins and investment opportunities above cost of capital Robust projected aluminum demand growth of 6.5% in 2015 and double between 2010 and 2020 Attractive Portfolio of five businesses: World’s largest, low cost bauxite miner at the 19th percentile1 on cost curve (46M BDMT2) World’s largest, most attractive alumina business in the 1st quartile3 of the cost curve (17.3M MT) Substantial energy assets with operational flexibility Optimized smelting capacity (3.4M MT) continuing to improve its 2nd quartile3 cost curve position 17 casthouses providing value-add products Diverse sites – close proximity to major markets Committed to disciplined capital allocation and prudent return of capital to shareholders

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Value-Add Co: Premier Provider of Innovative Solutions to Growing Markets GRP = Global Rolled Products, EPS = Engineered Products and Solutions, TCS = Transportation and Construction Solutions , MENA = Middle East and North Africa Value-Add Co. Business Operations and Key Attributes Premier provider of high-performance advanced multi-material products and solutions Positioned to grow in growth markets with signif icant customer synergies e.g., aerospace, automotive, commercial transportation, building and construction Expanded multi-material technology and process expertise Innovation leader with full pipeline of products and solutions Successfully shifting product mix to higher value-add Robust margins and investment opportunities above cost of capital Key Attributes GRP Aerospace and Automotive Products Global Leader in the automotive & aerospace markets Brazing, Commercial Transportation and Industrial Global Leader for heat exchanger, commercial transportation and industrial products Micromill Products and Services Bringing breakthrough products and technology to customers around the world Global Packaging Market Leader in N.A., Russia, MENA, China EPS TCS Power and Propulsion Global Leader in jet engine and industrial gas turbine airfoils Fastening Systems and Rings Global Leader in aerospace fasteners and jet engine rings Forgings and Extrusions Global Leader in aero, defense structures & jet engine disks Titanium and Engineered Products Vertically integrated player in the Ti value chain Building and Construction Systems N.A. Market Leader in commercial architectural systems Wheels and Transportation Products Global Leader in forged aluminum commercial vehicle wheels

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Alcoa + RTI = Integrated Supply Solutions . Benefiting our Customers

27 1) Represents mid and downstream capabilities, not market position. 2) Estimated value for projected build rates. 3) 2016 – 2024. 4) Figure reflects net synergies after $9M merger integration costs ($44M process productivity, $20M procurement savings, $20M overhead cost reduction, $25M growth). Source: IHS Janes RTI Investment and Lockheed Contract Capabilities: None Limited Moderate Significant Full MidstreamDownstream Melting (Ingot, Cast Slab) Billetizing, Rolling (Mill Products) Conversion (Closed-Die Forging, Extruding, Investment Casting) Machining, Subassembly INGOT PLATE FORGING MACHINING + Ti Ingot Ti Forging Ti Machining F-35 Ti Structural Components Supply Chain RTI Complements Titanium Supply Chain1 ~$1.1B2 Ti Multi-Year3 Contract with Lockheed Martin Exclusive Ti supplier of milled products for airframe structures on F-35 variants Full production rate of 13 aircraft/month by mid 2020s, up from 3 aircraft/month in 2014 Adds to current multi-material (Al, Ti, Ni) contracts from engine to aircraft body Alcoa now provides 100% of titanium milled products (i.e., ingot, billet, plate) for the structures of the Joint Strike Fighter RTI Financial Benefits: 2019 Targets $1.2B revenue, 25% EBITDA margin Net Synergies4: $100M 30% in Year 2, 100% in Year 4 Ti Billet & Plate

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Aero Fasteners: High Tech—Multi Material—Customer Solutions

VTP: vertical tail plane Multi-material Fastener Solutions, Market Position and Airbus Contract Threaded Pins and Collars Ti, Al, Stainless Steel 12-Point Fasteners Inconel®, Stainless Steel, Ti LGP® Lockbolts Ti, Al Leader in Innovation Broadest fastener solutions offering Expertise in Multi-Material environments ~$1B Multi-Year Largest Airbus Fastener Contract Alcoa’s largest-ever fastener deal with Airbus Positioned on new, high-growth (e.g., A350, A320neo) and longer running (e.g., A330) platforms Titanium, stainless steel and nickel-based superalloy fastening systems Improved fatigue life, enabling lightning strike protection Enhanced performance in multi-material applications 20% Fuel Efficiency Improvement 2-5% lower wing aerodynamic drag 30% Maintenance cost reduction Up to 3% weight reduction 15% Engine fuel burn reduction 10% Assembly cost reduction #1 Global Leader in Aerospace Fastening Systems Alcoa Fasteners on Every Airbus Aircraft VTP Junction Bolt Inconel® Custom Panel Fasteners Stainless Steel XPL® Lockbolts Ti Broad application designs Custom solutions 20 lb weight savings on A320 165 lb weight savings on A350

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Automotive Growth shifts Rolling Business to Higher Value

1) Indexed to 3Q2014 YTD shipments.

FCA = Fiat Chrysler Automobiles GM = General Motors Automotive Capacity Investments, Alcoa Auto Shipment Indexed Growth and 2014-2018E Revenue Automotive Investments On Track Davenport Fully Operational Tennessee Online Fully ramped up At capacity Meeting Auto growth needs for customers Four months ahead of plan to meet customer demand Shipping to customers in 3Q 2015 Allows flex production with changing market demands Revenues ($M) YTD 2015 YTD 2014 Auto Sheet Brazing 2018E 1,800 2016E 1,530 2015E 1,040 2014 750 ~2.4x Profitable Growth in Automotive Indexed1 Auto Sheet Shipments 100% Up ~60% ~1.4x Growing auto business supplies customers such as Ford, GM, FCA, Tesla, Nissan, Subaru, and Honda

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Micromill: Disruptive … Material – Process – Business Model

HSS = High Strength Steel. Al=Aluminum Moving Forward Completed In Process Exploring Full Scale Capacity Expansion Options Completed successful customer trials First commercial application on 2016 F-150 in Q4 2015 Qualification agreements in place with 9major OEMs on 3 continents Signed Joint Development Agreement with Ford Micromill’s Innovation in Automotive Alloys, Value Proposition, Ford JDA, and Development Progress Letter of Intent with Danieli for Commercial Licensing Agreement The World’s Most Advanced Rolling Mill Breakthrough Materials 40% more formable, 30% stronger vs. incumbentAl 2x more formable and 30% lighter vs. HSS Equivalent HSS crash resistance Revolutionary Process 20 minutes vs. 20 days; 1/4 the footprint of conventional mill; 50% less energy use Ford & Alcoa Collaborate on Next-Gen Alloys Micromillmaterial to debut on 2016 Ford F-150 starting in Q4 2015 Collaborate to produce next-gen automotive aluminum alloys Micromill alloy validated by Ford engineers for high quality parts, complex structures for F-150 Use of Micromillmaterial on Ford vehicles to grow 2x from 2016 to 2017

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Upstream Co: Cost Competitive Industry Leader

31 1) CRU analysis. 2) Mined in 2014, including equity interests. 3) CRU and Alcoa analysis. 4) Announced March 6, 2015 BDMT = Bone Dry Metric Ton MINING REFINING CASTING SMELTING ENERGY World’s largest bauxite miner1 Flexibility to profit from market cycles 1st quartile3 cost curve refiner Strategic global footprint Value-add products in key markets Key Attributes and Global Business Unit 3Q15 Updates ALUMINA ALUMINUM Key Attributes Robust projected aluminum demand growth of 6.5% in 2015 and double between 2010 and 2020 Attractive Portfolio of five businesses: World’s largest, low cost bauxite miner at the 19th percentile1 on cost curve (46M BDMT2) World’s largest, most attractive alumina business in the 1st quartile3 of the cost curve (17.3M MT) Substantial energy assets with operational flexibility Optimized smelting capacity (3.4M MT) continuing to improve its 2nd quartile3 cost curve position 17 casthouses providing value-add products Diverse sites – close proximity to major markets Committed to disciplined capital allocation and prudent return of capital to shareholders 12-month Capacity Review4 2.8 MMT Refining and 500 kmt Smelting

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World’s Most Attractive Bauxite and Alumina Portfolio

1) CRU and Alcoa analysis, including equity interests, and not adjusted for AWAC interest. 2) Bauxite Production based on average 10% moisture. 3) CRU analysis. 4) CRU and Alcoa Analysis. 5) In 2015E. Mining and Refining Overview and Business Updates World’s Largest & Low cost Bauxite Miner. Jurutimine hits 5M mtpy run rate Saudi mine 100% complete Received approval from Government of Western Australia to export trial bauxite shipments from Willowdale and Huntly mines; targeted for early 2016 Strong presence in Atlantic and Pacific markets Proximity to owned refinery operations 2014 Bauxite Production1,2 (M BDMT) China imports 40%-60% of total Chinese and 70%-90% of global 3rd party demand Cost curve position3 (percentile) 2015 19th 4 10 16 40 46 Norsk Hydro Rio Tinto Alcan Alcoa UC Rusal Noranda .and Largest & First Quartile Alumina Refiner Announced full curtailment of Suralco refinery Expect 1.0 mmt Saudi JV 2015 production New gas supply agreement secures a low cost position for Western Australia refineries through 2032 San Ciprian nat. gas solution; ~$20/MT improvement in 2015E Expect ~75%5 of 3rd party smelter-grade shipments on API/Spot Cost curve progression4 (percentile) 2010 30th 2014 25th 2016E 21st Target -9% points cost position14 6 6 8 9 10 13 16 2015E alumina production from top 10 producers4 (mmt) Alcoa1 Chalco Xinfa Hongqiao RTA Rusal Hydro Others 10% of global prod.

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32

Energy and Casting—Profitability Through the Cycle

1) Alcoa has an equity interest in the majority of facilities. 2) The Consolidated Capacity of the Brazilian energy facilities is the assured energy that is approximately 55% of hydropower plant nominal capacity. Energy and Casting Overview and Business Updates Maximize Energy Assets1 Profitability ~65% of production is hydroelectric generation Provides optionality between market sales and metal production (~30% currently used for metal production) Sell remaining ~70%of capacity into the power grid, depending on the power requirements of other assets Capturing significant earnings from power sales globally Power production capacity of ~1,550 MW Casthouses shifting to high value-add products 17 casthouses provide ~70% value-add products in 2015E Qualified new foundry alloys with top tier OEM; 8 customer trials ongoing Value-add products as % of total shipments 65% 57% 2010 ~70% 2015E 2014 Country Consolidated Capacity (MW)2 Brazil 492 Canada 132 Suriname 189 United States 739 $1.3B Incremental Margin 2010 through 2014 Value-Add portfolio provides profits throughout the cycle:

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Primary Metals: $110—$130M Improvement Plan Underway

1) Includes energy assets, smelting, and casting. 2009-2014 Productivity figures, pretax and pre-minority interest. 2009/2010 represent net productivity. 2011- 2014 represent gross productivity. 2) ATOI was $488M in 2010 and $462M in LTM 2015 3) Last Twelve Months ended September 30, 2015. 4) Includes 56 kmt of idle capacity. 5) Includes 49kmt of idle capacity. BPA = Bonneville Power Administration Optimizing Portfolio Building Financial Resilience Year to Date Actions: Curtailed Sao Luis: 74 kmt Closed Pocos: 96 kmt Closed Anglesea power station Secured 2016 interruptibility sales for Spain (408 kmt4) Revised Intalco BPA power contract (279 kmt5) Optimized pot restarts across locations Continuous Execution on Portfolio Improvements $35—$40M Operations Reduce spend usage and demand Accelerate productivity, labor cost reduction $40—$45M Procurement Raw material price reductions Energy contract renegotiations $10—$15M Overhead Overhead labor and spend reductions $25—$30M Value-Add Volume Casting throughput optimization Casting technology upgrades Launched Aggressive Primary Metals Improvement Program Strategic Review Ongoing through 1Q16 Track Record, Historical Performance and Improvement Plan $110—$130M Improvement in 2016 33% operating capacity closed/curtailed/divested since 2007 $2.1B in productivity1 gains Moved 8 points down the cost curve in 4 years, down $50/MT relative to industry Flex energy assets Primary Metals 353 320 2010 LTM 20153 All-in Metal Price ($/mt) EBITDA/MT: +10% 2,142 2,311 Price: -7% EBITDA2 / MT

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Managing Headwinds; Portfolio ResilientUpstream Portfolio Less Vulnerable to Downswings Managing Headwinds; Portfolio Resilient

Transformation on Course

Transformation Continues on Path to Separation

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Nahla Azmy

Vice President, Investor Relations

Alcoa

390 Park Avenue

New York, NY 10022-4608

Telephone: (212) 836-2674

Email: nahla.azmy@alcoa.com

www.alcoa.com

Additional Information

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Annual Sensitivity Summary

Currency Annual Net Income Sensitivity +/- $100/MT = +/- $190 million LME Aluminum Annual Net Income Sensitivity Australian $ +/- $11 million per 0.01 change in USD / AUD Brazilian $ +/- $ 1 million per 0.01 change in BRL / USD Euro € +/- $ 2 million per 0.01 change in USD / EUR Canadian $ +/- $ 4 million per 0.01 change in CAD / USD Norwegian Kroner +/- $ 4 million per 0.10 change in NOK / USD +/- $10/MT = +/- $20 million API/Spot Alumina Annual Net Income Sensitivity

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Composition of Regional Premium Pricing Convention 2015E Shipments Regional Premiums Estimated Pricing Convention

50% Midwest – Platts 15-day lag

35% Rotterdam DDP – Metal Bulletin 45-day lag

10% CIF Japan – Platts Month prior to Quarter start

5% Negotiated Annual

38

Value-Add Co. Segment Bridges – 3Q 2015 EPS = Engineered Products and Solutions GRP = Global Rolled Products TCS = Transportation and Construction Solutions $ Millions $ Millions EPS Sequential Quarter Bridge GRP Sequential Quarter Bridge 3Q15 $151 RTI -$7 Cost Increases/ Other -$9 Productivity $9 Price / Mix -$9 Volume $2 Currency $0 2Q15 $165 3Q15 $62 Cost Increases / Other -$8 Productivity $4 Price / Mix -$4 Volume -$11 Currency $5 2Q15 $76 $ Millions TCS Sequential Quarter Bridge Cost Increases/ Other $44 3Q15 $0 Productivity $0 Price / Mix $2 Volume -$2 Currency $0 2Q15 $44

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Upstream Co. Segment Bridges – 3Q 2015 $ Millions $ Millions -$3 Currency $115 API $-15 LME -$13 3Q14 $62 3Q15 $212 Cost Increases / Other -$19 Energy $20 Prod-uctivity $39 Price / Mix $26 Volume Portfolio actions $30 -$59 Cost Increases / Other 3Q15 -$10 Energy -$82 Prod-uctivity $46 Price / Mix -$134 Volume -$7 FX $40 API -$10 LME -$177 3Q14 $245 Alumina Year-over-Year Bridge Primary Metals Year-over-Year Bridge

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Revenue Change by Market—3Q 2015 3% (11%) 0% (5%) (12%) 13% (2%) 21% (1%) (19%) 27% 32% (21%) 0% (38%) 24% (26%) 24% 3% (33%) 23% 5% 6% 7% 5% 2% 11% 2% 16% 23% Aerospace Automotive B&C Comm. Transport Industrial Products IGT Packaging Distribution/Other Alumina Primary Metals 3Q15 Third-Party Revenue Sequential Change Year-Over-Year Change

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Revenue Change by Market – YTD 2015

Year-Over-Year Change 25% 44% (20%) 6% (33%) 2% (17%) 27% 9% (12%) 22% 5% 5% 7% 5% 2% 11% 2% 16%25% Aerospace Automotive B&C Comm. Transport Industrial Products IGT Packaging Distribution/Other Alumina Primary Metals 3Q YTD Third-Party Revenue

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Composition of Upstream Production Costs Fuel Oil 6% Natural gas 13% Caustic 9% Bauxite 30% Conversion 42% Input Cost Inventory flow Pricing convention Annual ATOI Sensitivity Fuel oil 1 – 2 months Prior month $2m per $1/bbl Natural gas N/A Spot1 $13m per $1/GJ1 Caustic soda 3—6 months Spot & semi-annual $8m per $10/DMT Refining Cost StructureAlumina 34% Carbon 12% Power 25% Materials 7%Conversion 22%Smelting Cost Structure Input Cost Inventory flow Pricing convention Annual ATOI Sensitivity Coke 1—2 months Spot, quarterly & semi-annual $7m per $10/MT Pitch 1—2 months Spot, quarterly & semi-annual $2m per $10/MT 1Natural gas information corresponds to Point Comfort, as Australia is priced on a rolling 16 quarter average

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43

Alcoa Upstream capacity closed, sold and idled

Includes 887 kmt announced Sept 14th, 2015; expected to be executed by end of November 2015 Facility 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 2014 190 Portovesme 2014 150 Mt. Holly (sale of 50.33% interest) 2014 115 Pocos 2015 96 Total 1,464 Closed/sold since December 2007 Facility kmt Rockdale 191 Sao Luis 268 Intalco 49 Wenatchee 41 Aviles 32 Portland 30 La Coruna 24 Total 635 Smelting Capacity Idled Refining Capacity Facility Year kmt Jamalco (sale of 55% interest) 2014 779 Total 779 Closed/sold since December 2007 Facility kmt Suriname1 2,207 Point Comfort 295 Total 2,502 Idled [Alcoa logo]

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Source: Alcoa estimates, CRU, Harbor, Wood Mackenzie

6.5% 2015E Demand Growth

29.1 6.7 6.7 4.3 2.3 2.1 2.1 1.0 0.9 9.3% 1.5% 5% 1% 10% 7% 4% 5% -3% -3% 57.4 mmt 1 Other includes Af rica, E. Europe, Latin America ex Brazil, and Oceania 2015E Primary Aluminum Consumption (mmt), Annualized Growth (%) China Europe North America North Asia India SE Asia MENA Russia Brazil Other ¹ 2.1 2015 demand +6.5% World ex China +3.5%

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Source: Alcoa estimates, IAI, LME, Marubeni, Shanghai Metal Exchange

Global Inventories at 62 days; Down 2 days YoY

$1,000 $1,500 $2,000 $2,500 $3,000 07 14 21 28 35 42 49 56 63 70 77 84 91 98 105 China Incl SRB Producer Japan Port LME On Warrant Cancelled Warrants Off Exchange LME Cash Days of Consumption 108 days LME Cash Price $2,180/MT Days of Consumption 83 days LME Cash Price $2,663/MT Global Inventories -46 days from the ’09 peak; -2 days YoY Days of Consumption Days of Consumption 62 days LME Cash Price $1,601/MT $ per metric ton Global inventories vs. LME price over time $Days of Consumption 64 days LME Cash Price $1,992/MT

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Continued Weakness in Regional Premiums

Source: Graph shows monthly average of daily prices—Platts Metals Week

3Q15 and 3Q14 bubble/table data shows quarterly average of daily prices $0 $100 $200 $300 $400 $500 $600 $0 $100 $200 $300 $400 $500 $600 Regional Premiums over time $ per metric ton $ per metric ton Region 3Q15Average Europe $156/MT Japan $96/MT Midwest USA $175/MT Average 3Q15 vs. 3Q14 Europe -66% Japan -76% Midwest USA -62%

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Source: Alcoa analysis, CRU, CNIA, NBS, SMM

2015 Alumina and Aluminum Surplus Tightening 2015E Aluminum Supply/Demand Balance 2015E Alumina Supply/Demand Balance Supply/Demand Analysis 0.0 0.5 1.0 1.5 2.0 2.5 2.7 2.4 2.2 2.0% 2.5% 2.2% Surplus Deficit Expect 2016 Balance 1Q Estimate 2Q Estimate 3Q Estimate 0.0 0.5 1.0 1.5 2.0 2.5 551 1.0% 0.6% 1.3% 762 326 Expect 2016 Deficit 1Q Estimate 2Q Estimate 3Q Estimate % of market / ‘000 kmt % of market / mmt Surplus Deficit [Alcoa logo]

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Source: Alcoa analysis, CRU, CNIA, NBS, SMM

2015 Alumina and Aluminum Surplus Tightening 2015E Aluminum Supply/Demand Balance 2015E Alumina Supply/Demand Balance ’000 mt China Rest of World 2015 Production 55,354 55,314 2015 Production to be added 1,453 1,752 2015 Capacity curtailed or restarted 0 (166) Imports/(exports) 3,900 (3,900) Total supply 60,707 53,000 Demand (60,050) (51,412) Net Balance 657 1,588 Supply/Demand Analysis 1,996 2Q15 Surplus 2,428 2Q15 Surplus 762 ’000 mt China Rest of World 2015 Production 31,512 26,526 2015 Production to be added 650 293 2015 Capacity curtailed (1,048) 0 Total Supply 31,114 26,819 Demand (29,100) (28,282) Net Balance 2,014 (1,463) Surplus 551 Surplus 2,245

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Special Items

NCI: Non-controlling interest

See appendix for Adjusted Income reconciliation

Pre-tax, Before NCI After-tax, After NCI $ Millions, except per-share amounts 2Q15 3Q15 2Q15 3Q15 Income Statement Classification Segment Income from Continuing Operations $282 $206 $140 $44 Income per Diluted Share — $0.10 $0.02 Restructuring-Related ($221) ($94) ($143) ($43) Restructuring and Other Charges/COGS Corporate/ Primary Metals Tax Items — $22 ($15) Income Taxes Corporate/GRP Gain on Land Sale $28 $38 $19 $25 Other Income, Net Corporate Portfolio Transaction Costs ($6) ($25) ($5) ($22) SG&A/Interest Expense Corporate Mark-to-Market Energy Contracts ($4) ($17) ($3) ($10) Other Expenses, Net Corporate Special Items ($203) ($98) ($110) ($65) Income from Continuing Ops excl. Special Items $485 $304 $250 $109 Income per Diluted Share excl. Special Items — $0.19 $0.07

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RECONCILIATIONS

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Reconciliation of ATOI to Consolidated Net (Loss) Income Attributable to Alcoa(1)

(in millions) 1Q14 2Q14 3Q14 4Q14 2014 1Q15 2Q15 3Q15 Total segment ATOI(2) $320 $408 $581 $659 $1,968 $656 $567 $410 Unallocated amounts (net of tax): Impact of LIFO (7) (8) (18) (21) (54) 7 36 50 Metal price lag(2) 7 11 38 22 78 (23) (39) (48) Interest expense (78) (69) (81) (80) (308) (80) (80) (80) Noncontrolling interests 19 9 18 45 91 (60) (67) (62) Corporate expense (65) (67) (72) (80) (284) (62) (65) (72) Restructuring and other charges (321) (77) (189) (307) (894) (161) (159) (48) Other (53) (69) (128) (79) (329) (82) (53) (106) Consolidated net (loss) income attributable to Alcoa $(178) $138 $149 $159 $268 $195 $140 $44 (1) In th e th ird q uarter o f 2015, man ag ement ap proved a realignment o f Alcoa’s En g ineered Pro ducts an d So lutions segment d ue to the expansion o f th is p art o f Alcoa’s business p ortfolio through both organic and inorganic growth. A portion of this realignment consisted of moving the Latin American extrusions business from Corporate into a new Transportation and Construction Solutions segment (see the Reconciliation of Transportation and Construction Solutions Adjusted EBITDA for additional information). Segment information for all prior periods presented was revised to reflect the new segment structure (2) Effective in the second quarter of 2015, management removed the impact of metal price lag from the results of the Global Rolled Products and Engineered Products and Solutions (now Engineered Products and Solutions and Transportation and Construction Solutions – see footnote 1 above) segments in order to enhance the visibility of the underlying operating performance of these businesses. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by the respective segment. The imp act o f metal p rice lag is n ow reported as a sep arate line item in Alcoa’s reconciliation o f to tal segment ATOI to consolidated net (loss) income attributable to Alcoa. As a result, this change does not impact the consolidated results of Alcoa. Segment information for all prior periods presented was updated to reflect this change.

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Reconciliation of ATOI to Consolidated Net (Loss) Income Attributable to Alcoa(1) – Supplemental View

(in millions) 1Q14 2Q14 3Q14 4Q14 2014 1Q15 2Q15 3Q15 Total segment ATOI(2) $320 $408 $581 $659 $1,968 $656 $567 $410 Unallocated amounts (net of tax): Impact of LIFO (7) (8) (18) (21) (54) 7 36 50 Metal price lag(2) 7 11 38 22 78 (23) (39) (48) Interest expense (78) (69) (72) (80) (299) (80) (80) (80) Noncontrolling interests (20) (13) (29) (72) (134) (95) (87) (92) Corporate expense (66) (58) (68) (60) (252) (56) (60) (55) Other (58) (55) (62) (16) (191) (46) (87) (76) Income excluding special items 98 216 370 432 1,116 363 250 109 Special items(3) (276) (78) (221) (273) (848) (168) (110) (65) Consolidated net (loss) income attributable to Alcoa $(178) $138 $149 $159 $268 $195 $140 $44 (1) In the third quarter of 2015, management approved a realignment of Alcoa’s Engineered Products and Solutions segment due to the expansion of this part of Alcoa’s business portfolio through both organic and inorganic growth. A portion of this realignment consisted of moving the Latin American extrusions business from Corporate into a new Transportation and Construction Solutions segment (see the Reconciliation of Transportation and Construction Solutions Adjusted EBITDA for additional information). Segment information for all prior periods presented was revised to reflect the new segment structure (2) Effective in the second quarter of 2015, management removed the impact of metal price lag from the results of the Global Rolled Products and Engineered Products and Solutions (now Engineered Products and Solutions and Transportation and Construction Solutions – see footnote 1 above) segments in order to enhance the visibility of the underlying operating performance of these businesses. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by the respective segment. The impact of metal price lag is now reported as a separate line item in Alcoa’s reconciliation of total segment ATOI to consolidated net (loss) income attributable to Alcoa. As a result, this change does not impact the consolidated results of Alcoa. Segment information for all prior periods presented was updated to reflect this change. (3) Special items are defined as restructuring and other charges, discrete tax items, and other special items. See the Reconciliation of Adjusted Income for additional information. NOTES FOR CORPORATE AMOUNTS: LIFO and Metal price lag – these items tend to offset each other over time as the same underlying market conditions typically drive both amounts. Noncontrolling interests – primarily represents Alumina Limited’s 40% share of the operating results of the Alcoa World Alumina and Chemicals joint venture, which principally comprises Alcoa’s Alumina segment. Corporate expense – represents general and administrative expenses attributable to Alcoa’s corporate and business support locations, as well as costs associated with Alcoa’s corporate research and development center. Other – includes all other income and expenses not included in the segments, primarily: postretirement benefits and environmental remediation costs associated with certain closed or divested businesses; various corporate eliminations of inter-segment transactions; certain corporate foreign currency gains and losses; and the impact of the difference between the income tax rates applicable to the segments and the consolidated effective tax rate of the Company. [Alcoa logo]

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Reconciliation of Adjusted Income

(in millions, except per-share amounts) Income Diluted EPS Quarter ended Quarter ended September 30, June 30, September 30, September 30, June 30, September 30, 2014 2015 2015 2014 2015 2015 Net income attributable to Alcoa $149 $140 $44 $0.12 $0.10 $0.02 Restructuring and other charges 175 141 30 Discrete tax items(1) 25 (5) 4 Other special items(2) 21 (26) 31 Net income attributable to Alcoa – as adjusted $370 $250 $109 0.31 0.19 0.07 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 income attributable to Alcoa determined under GAAP as well as Net income attributable to Alcoa – as adjusted. (1) Discrete tax items include the following: • for the quarter ended September 30, 2015, a net charge for a number of small items; • for the quarter ended June 30, 2015, a net benefit for a number of small items; and • for the quarter ended September 30, 2014, a charge for the remeasurement of certain deferred tax assets of a subsidiary in Br azil due to a tax rate change ($34) and a net benefit for a number of small items ($9). (2) Other special items include the following: • for the quarter ended September 30, 2015, an unfavorable tax impact resulting from the difference between Alcoa’s consolidated estimated annual effective tax rate and the statutory rates applicable to special items ($27), a gain on the sale of both land and an equity investment in a China rolling mill ($25), costs associated with the planned separation of Alcoa and the acquisition of RTI International Metals ($22), a favorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($16), a write-down of inventory related to a refinery in Suriname ($13), and a net unfavorable change in certain mark-to-market energy derivative contracts ($10); • for the quarter ended June 30, 2015, a favorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($21), a gain on the sale of land ($19), costs associated with the then-planned acquisition of RTI International Metals ($5), an unfavorable tax impact resulting from the difference between Alcoa’s consolidated estimated annual effective tax rate and the statutory rates applicable to special items ($4), a net unfavorable change in certain mark-to-market energy derivative contracts ($3), and a write-down of inventory related to the permanent closures of a smelter in Brazil and a power station in Australia ($2); and • for the quarter ended September 30, 2014, a favorable tax impact resulting from the difference between Alcoa’s consolidated estimated annual effective tax rate and the statutory rates applicable to special items ($33), a write-down of inventory related to the permanent closure of smelters in Italy and Australia ($27), costs associated with the then-planned acquisition of Firth Rixson ($14), a net unfavorable change in certain mark-to-market energy derivative contracts ($14), a gain on the sale of an equity investment in a China rolling mill ($9), and an unfavorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($8).

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Reconciliation of Alcoa Adjusted EBITDA

($ in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3Q14 2Q15 3Q15 Net income (loss) attributable to Alcoa $1,310 $1,233 $2,248 $2,564 $(74) $(1,151) $254 $611 $191 $(2,285) $268 $149 $140 $44 Add: Net income (loss) attributable to noncontrolling interests 233 259 436 365 221 61 138 194 (29) 41 (91) (18) 67 62 Cumulative effect of accounting changes – 2 – – – – – – – – – – – – Loss (income) from discontinued operations 27 50 (22) 250 303 166 8 3 – – – – – – Provision (benefit) for income taxes 546 464 853 1,623 342 (574) 148 255 162 428 320 199 75 100 Other (income) expenses, net (266) (478) (236) (1,920) (59) (161) 5 (87) (341) (25) 47 23 – (15) Interest expense 271 339 384 401 407 470 494 524 490 453 473 126 124 123 Restructuring and other charges (29) 266 507 268 939 237 207 281 172 782 1,168 209 217 66 Impairment of goodwill – – – – – – – – – 1,731 – – – – Provision for depreciation, depletion, and amortization 1,142 1,227 1,252 1,244 1,234 1,311 1,450 1,479 1,460 1,421 1,371 347 319 318 Adjusted EBITDA $3,234 $3,362 $5,422 $4,795 $3,313 $359 $2,704 $3,260 $2,105 $2,546 $3,556 $1,035 $942 $698 Sales $21,370 $24,149 $28,950 $29,280 $26,901 $18,439 $21,013 $24,951 $23,700 $23,032 $23,906 $6,239 $5,897 $5,573 Adjusted EBITDA Margin 15.1% 13.9% 18.7% 16.4% 12.3% 1.9% 12.9% 13.1% 8.9% 11.1% 14.9% 16.6% 16.0% 12.5% Alco a’s d efinition o f Ad justed EBITDA (Earn ings befo re in terest, taxes, d epreciation, an d amortization) is n et margin p lus 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.

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Reconciliation of Alumina Adjusted EBITDA

($ in millions, except per metric ton amounts) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3Q14 2Q15 3Q15 After-tax operating income (ATOI) $632 $682 $1,050 $956 $727 $112 $301 $607 $90 $259 $370 $62 $215 $212 Add: Depreciation, depletion, and amortization 153 172 192 267 268 292 406 444 455 426 387 100 77 71 Equity (income) loss (1) – 2 (1) (7) (8) (10) (25) (5) 4 29 7 11 9 Income taxes 240 246 428 340 277 (22) 60 179 (27) 66 153 26 87 85 Other (46) (8) (6) 2 (26) (92) (5) (44) (8) (6) (28) (2) – (1) Adjusted EBITDA $978 $1,092 $1,666 $1,564 $1,239 $282 $752 $1,161 $505 $749 $911 $193 $390 $376 Production (thousand metric tons) (kmt) 14,343 14,598 15,128 15,084 15,256 14,265 15,922 16,486 16,342 16,618 16,606 4,196 3,977 3,954 Adjusted EBITDA / Production ($ per metric ton) $68 $75 $110 $104 $81 $20 $47 $70 $31 $45 $55 $46 $98 $95 Alco a’s d efinition o f Ad justed EBITDA (Earn ings befo re in terest, taxes, d epreciation, an d amortization) is n et margin p lus 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.

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Reconciliation of Primary Metals Adjusted EBITDA

($ in millions, except per metric ton amounts) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3Q14 2Q15 3Q15 LTM 2015* After-tax operating income (ATOI) $808 $822 $1,760 $1,445 $931 $(612) $488 $481 $309 $(20) $594 $245 $67 $(59) $462 Add: Depreciation, depletion, and amortization 326 368 395 410 503 560 571 556 532 526 494 124 109 106 441 Equity (income) loss (58) 12 (82) (57) (2) 26 (1) 7 27 51 34 – 5 7 4 Income taxes 314 307 726 542 172 (365) 96 92 106 (74) 203 95 6 (49) 103 Other 20 (96) (13) (27) (32) (176) (7) 2 (422) (8) (6) 1 – (2) (5) Adjusted EBITDA $1,410 $1,413 $2,786 $2,313 $1,572 $(567) $1,147 $1,138 $552 $475 $1,319 $465 $187 $3 $1,005 Production (thousand metric tons) (kmt) 3,376 3,554 3,552 3,693 4,007 3,564 3,586 3,775 3,742 3,550 3,125 760 701 700 2,843 Adjusted EBITDA / Production ($ per metric ton) $418 $398 $784 $626 $392 $(159) $320 $301 $148 $134 $422 $612 $267 $4 $353 Alco a’s d efinition o f Ad justed EBITDA (Earn ings befo re in terest, taxes, d epreciation, an d amortization) is n et margin p lus anadd-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 withrespect to Alcoa’s o perating p erformance an d th e Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. * LTM 2015 refers to the twelve-month period ended September 30, 2015.

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Reconciliation of Global Rolled Products Adjusted EBITDA(1)

($ in millions, except per metric ton amounts) 2004 2005 2006 2007 2008 2009 2010(2) 2011(2) 2012(2) 2013 2014 3Q14 2Q15 3Q15 After-tax operating income (ATOI) $254 $278 $233 $178 $(3) $(49) $220 $266 $358 $292 $245 $69 $76 $62 Add: Depreciation, depletion, and amortization 200 220 223 227 216 227 238 237 229 226 235 62 56 56 Equity loss 1 – 2 – – – – 3 6 13 27 8 7 8 Income taxes 75 121 58 92 35 48 92 104 167 123 89 26 25 28 Other 1 1 20 1 6 (2) 1 1 (2) – (1) (1) – (1) Adjusted EBITDA $531 $620 $536 $498 $254 $224 $551 $611 $758 $654 $595 $164 $164 $153 Total shipments (thousand metric tons) (kmt) 2,136 2,250 2,376 2,482 2,361 1,888 1,755 1,866 1,943 1,989 2,056 526 479 464 Adjusted EBITDA / Total shipments ($ per metric ton) $249 $276 $226 $201 $108 $119 $314 $327 $390 $329 $289 $312 $342 $330 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 expens es; 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. (1) Effective in the second quarter of 2015, management removed the impact of metal price lag from the results of the Global Rolled Products segment in order to enhance the visibility of the underlying operating performance of this business. Metal price lag describes the timing difference created when the average price of metal sold diff ers from the average cost of the metal when purchased by this segment. The impact of metal price lag is now reported as a separate line item in Alcoa’s reconciliation of total segment ATOI to consolidated net (loss) income attributable to Alcoa. As a result, this change does not impact the consolidated results of Alcoa. Segment information for all prior periods presented was updated to reflect this change. (2) The average Adjusted EBITDA per metric ton of these three years equals $344 and represents the average historical high for the Global Rolled Products segment. Alcoa has a 2016 target to meet or exceed this average historical high.

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Reconciliation of Engineered Products and Solutions(1) Adjusted EBITDA(2)

($ in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3Q14 2Q15 3Q15 After-tax operating income (ATOI) $144 $183 $237 $351 $465 $321 $355 $436 $484 $569 $579 $155 $165 $151 Add: Depreciation, depletion, and amortization 118 114 111 114 118 118 114 120 122 124 137 32 54 61 Income taxes 81 86 128 186 225 159 182 224 248 286 298 78 81 71 Other (9) (12) 2 2 2 2 – – – – – 1 1 – Adjusted EBITDA $334 $371 $478 $653 $810 $600 $651 $780 $854 $979 $1,014 $266 $301 $283 Third-party sales $2,643 $2,966 $3,406 $3,821 $4,215 $3,355 $3,225 $3,716 $3,863 $4,054 $4,217 $1,034 $1,279 $1,397 Adjusted EBITDA Margin 12.6% 12.5% 14.0% 17.1% 19.2% 17.9% 20.2% 21.0% 22.1% 24.1% 24.0% 25.7% 23.5% 20.3% 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. 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. (1) In the third quarter of 2015, management approved a realignment of Alcoa’s Engineered Products and Solutions segment due to the expansion of this part of Alcoa’s business portfolio through both organic and inorganic growth. This realignment consisted of moving both the Alcoa Wheels and Transportation Products and Building and Constructions Systems business units to a new reportable segment named Transportation and Construction Solutions. Additionally, the Latin American extrusions business previously included in Corporate was moved into the new Transportation and Construction Solutions segment. The remaining Eng ineered Products and Solutions segment consists of the Alcoa Fastening Systems and Rings (renamed to include portions of the Firth Rixson business acquired in November 2014), Alcoa Power and Propulsion (includes the TITAL business acquired in Mar ch 2015), Alcoa Forgings and Extrusions (includes the other portions of Firth Rixson), and Alcoa Titanium and Engineered Products (a new business unit that represents the RTI International Metals business acquired in July 2015) business units. Segment information for all prior periods presented was revised to reflect the new segment structure. (2) Effective in the second quarter of 2015, management removed the impact of metal price lag from the results of the Engineered Products and Solutions (now Engineered Products and Solutions and Transportation and Construction Solutions – see footnote 1 above) segment in order to enhance the visibility of the underlying operating performance of this business. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by this segment. The impact of metal price lag is now reported as a separate line item in Alcoa’s reconciliation of total segment ATOI to consolidated net (loss) income attributable to Alcoa. As a result, this change does not impact the consolidated results of Alcoa. Segment information for all prior periods presented was updated to reflect this change.

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Reconciliation of Transportation and Construction Solutions(1) Adjusted EBITDA(2)

($ in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3Q14 2Q15 3Q15 After-tax operating income (ATOI) $15 $94 $129 $94 $82 $5 $73 $109 $126 $167 $180 $50 $44 $44 Add: Depreciation, depletion, and amortization 52 50 45 55 53 65 48 45 42 42 42 10 11 11 Equity loss (income) – – 6 – – (2) (2) (1) – – – – – – Income taxes (15) 30 27 7 – (21) 18 38 49 67 69 20 17 18 Other 116 1 (4) (10) – – – (1) (9) (2) – 1 (1) (1) Adjusted EBITDA $168 $175 $203 $146 $135 $47 $137 $190 $208 $274 $291 $81 $71 $72 Third-party sales $1,754 $1,954 $2,204 $2,249 $2,270 $1,537 $1,656 $1,936 $1,914 $1,951 $2,021 $523 $492 $475 Adjusted EBITDA Margin 9.6% 9.0% 9.2% 6.5% 5.9% 3.1% 8.3% 9.8% 10.9% 14.0% 14.4% 15.5% 14.4% 15.2% 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. (1) In the third quarter of 2015, management approved a realignment of Alcoa’s Engineered Products and Solutions segment due to the expansion of this part of Alcoa’s business portfolio through both organic and inorganic growth. This realignment consisted of moving both the Alcoa Wheels and Transportation Products and Building and Constructions Systems business units to a new reportable segment named Transportation and Construction Solutions. Additionally, the Latin American extrusions business previously included in Corporate was moved into the new Transportation and Construction Solutions segment. The remaining Eng ineered Products and Solutions segment consists of the Alcoa Fastening Systems and Rings (renamed to include portions of the Firth Rixson business acquired in November 2014), Alcoa Power and Propulsion (includes the TITAL business acquired in Mar ch 2015), Alcoa Forgings and Extrusions (includes the other portions of Firth Rixson), and Alcoa Titanium and Engineered Products (a new business unit that represents the RTI International Metals business acquired in July 2015) business units. Segment information for all prior periods presented was revised to reflect the new segment structure. (2) Effective in the second quarter of 2015, management removed the impact of metal price lag from the results of the Engineered Products and Solutions (now Engineered Products and Solutions and Transportation and Construction Solutions – see footnote 1 above) segment in order to enhance the visibility of the underlying operating performance of this business. Metal price lag describes the timing difference created when the average price of metal sold differs from the average cost of the metal when purchased by this segment. The impact of metal price lag is now reported as a separate line item in Alcoa’s reconciliation of total segment ATOI to consolidated net (loss) income attributable to Alcoa. As a result, this change does not impact the consolidated results of Alcoa. Segment information for all prior periods presented was updated to reflect this change.

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Reconciliation of Free Cash Flow

(in millions) Year ended Quarter ended December 31, 2010 December 31, 2011 December 31, 2012 December 31, 2013 December 31, 2014 September 30, 2014 June 30, 2015 September 30, 2015 Cash from operations $2,261 $2,193 $1,497 $1,578 $1,674 $249 $472 $420 Capital expenditures (1,015) (1,287) (1,261) (1,193) (1,219) (283) (267) (268) Free cash flow $1,246 $906 $236 $385 $455 $(34) $205 $152 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.

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Days Working Capital

Days Working Capital = Working Capital divided by (Sales/number of days in the quarter). (1) 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. (2) The Working Capital for each period presented represents an average quarter Working Capital, which reflects 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. (3) In the quarters ended March 31, 2015, June 30, 2015, and September 30, 2015, Working Capital and Sales include $279 and $233, respectively, $315 and 268 respectively, and $708 and $387, respectively, related to three acquisitions, Firth Rixson (November 2014), TITAL (March 2015), and RTI International Metals (July 2015). Excluding these amounts, Days Working Capital was 30, 31, and 31 for the quarters ended March 31, 2015, June 30, 2015, and September 30, 2015, respectively. ($ 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 30-Sep-14 31-Dec-14 31-Mar-15(3) 30-Jun-15(3) 30-Sep-15(3) 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 $1,526 $1,513 $1,487 $1,548 $1,489 Add: Deferred purchase price receivable(1) 85 144 104 53 50 223 347 339 238 371 438 395 389 421 382 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 1,964 1,908 1,876 1,969 1,871 Add: Inventories 3,079 3,097 3,051 2,894 2,961 2,949 2,932 2,783 2,974 3,201 3,194 3,064 3,189 3,230 3,443 Less: Accounts payable, trade 2,660 2,594 2,496 2,587 2,656 2,820 2,746 2,816 2,813 2,880 3,016 3,021 2,936 2,978 2,871 Working Capital(2) $2,213 $2,297 $2,259 $1,933 $2,059 $1,835 $1,960 $1,689 $1,790 $2,093 $2,142 $1,951 $2,129 $2,221 $2,443 Sales $6,006 $5,963 $5,833 $5,898 $5,833 $5,849 $5,765 $5,585 $5,454 $5,836 $6,239 $6,377 $5,819 $5,897 $5,573 Days Working Capital 34 35 36 30 32 29 31 28 30 33 32 28 33 34 40

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Reconciliation of Net Debt

Net debt is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Alcoa’s leverage p osition after factoring in available cash that could be used to repay outstanding debt. (in millions) December 31, March 31, June 30, September 30, 2010 2011 2012 2013 2014 2015 2015 2015 Short-term borrowings $92 $62 $53 $57 $54 $80 $50 $50 Commercial paper – 224 – – – – – – Long-term debt due within one year 231 445 465 655 29 26 26 136 Long-term debt, less amount due within one year 8,842 8,640 8,311 7,607 8,769 8,711 8,713 9,091 Total debt 9,165 9,371 8,829 8,319 8,852 8,817 8,789 9,277 Less: Cash and cash equivalents 1,543 1,939 1,861 1,437 1,877 1,191 1,311 1,739 Net debt $7,622 $7,432 $6,968 $6,882 $6,975 $7,626 $7,478 $7,538

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Reconciliation of Debt-to-Adjusted EBITDA Ratio

($ in millions) 2010 2011 2012 2013 2014 1Q15* 2Q15* 3Q15* Net income (loss) attributable to Alcoa $254 $611 $191 $(2,285) $268 $641 $643 $538 Add: Net income (loss) attributable to noncontrolling interests 138 194 (29) 41 (91) (12) 64 144 Loss from discontinued operations 8 3 – – – – – – Provision for income taxes 148 255 162 428 320 623 620 521 Other expenses (income), net 5 (87) (341) (25) 47 10 5 (33) Interest expense 494 524 490 453 473 475 494 491 Restructuring and other charges 207 281 172 782 1,168 884 991 848 Impairment of goodwill – – – 1,731 – – – – Provision for depreciation, depletion, and amortization 1,450 1,479 1,460 1,421 1,371 1,352 1,322 1,293 Adjusted EBITDA $2,704 $3,260 $2,105 $2,546 $3,556 $3,973 $4,139 $3,802 Total Debt $9,165 $9,371 $8,829 $8,319 $8,852 $8,817 $8,789 $9,277 Debt-to-Adjusted EBITDA Ratio 3.39 2.87 4.20 3.27 2.49 2.22 2.12 2.44 Alco a’s d efinition o f Ad justed EBITDA (Earn ings befo re in terest, taxes, d epreciation, an d amortization) is n et margin p lus 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. * The calculation of Adjusted EBITDA for the quarters ended March 31, 2015, June 30, 2015, and September 30, 2015 is based on the respective trailing twelve months.

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