[Alcoa logo]

Exhibit 99.2

January 9, 2007

4

th

Quarter 2006 Analyst Conference

2

[Alcoa logo]

Forward Looking Statements

Today’s discussion may include “forward-looking statements”

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995. 

Such statements relate to future events and expectations and

involve known and unknown risks and uncertainties.  Alcoa’s actual

results

or

actions

may

differ

materially

from

those

projected

in

the

forward-looking statements.  For a summary of the specific risk

factors that could cause results to differ materially from those

expressed in the forward-looking statements, please refer to

Alcoa’s Form 10-K for the year ended December 31, 2005 and

Forms 10-Q for the quarters ended March 31, 2006, June 30, 2006

and September 30, 2006 filed with the Securities and Exchange

Commission.

[Alcoa logo]

Vice President and Chief Financial Officer

Chuck McLane

*

4

[Alcoa logo]

4

th

Quarter 2006 Financial Overview

–

Income from continuing operations of $644m or

$0.74 per share -

$258m or $0.29 per share

including the impact of restructurings

–

Revenues of $7.84b

–

Cash from operations of $1.33b

–

Debt-to-cap at 30.6%

–

Trailing four quarters ROC of 13.2%

5

[Alcoa logo]

4

th

Quarter 2006 Restructuring Impact

$M

EPS

Net Income

$359

$0.41

Less: Income from Discontinued Operations

101

Income From Continuing Operations

258

0.29

Plus: Restructuring and other charges

386

Income From Continuing Operations,

excluding restructuring and other charges

$644

$0.74

6

[Alcoa logo]

4

th

Quarter 2006 Financial Overview

In Millions

3Q'06

4Q'06

Change

Sales

$7,631

$7,840

$209

Cost of Goods Sold

$6,015

$6,132

$117

   % of Sales

78.8%

78.2%

(0.6) pts.

SG&A

$326

$367

$41

   % of Sales

4.3%

4.7%

0.4 pts.

Restructuring and Other Charges

($3)

$554

$557

Interest Expense

$101

$93

($8)

Other Income, Net

($48)

($49)

($1)

Effective Tax Rate

24.7%

-0.3%

(25.0) pts.

Minority Interests

$109

$98

($11)

GAAP Net Income

$537

$359

($178)

(Loss) Income from Discontinued Operations

($3)

$101

$104

GAAP Income From Continuing Operations

$540

$258

($282)

7

[Alcoa logo]

Income from Continuing Operations

3

rd

Quarter vs. 4

th

Quarter Comparison

8

[Alcoa logo]

4Q vs 4Q

4Q vs 3Q

4Q’06

6%

(5%)

2,084

3

rd

Party Shipments (kmt)

2%

(3%)

3,790

Production (kmt)

27%

(3%)

711

3

rd

Party Revenue ($MM)

42%

(4%)

259

ATOI ($MM)

Pinjarra

production ramp-up offset by

Point Comfort decrease

Impact of Pinjarra power outage

Impact of stronger Australian Dollar

Alumina

4

th

Quarter Highlights

ATOI Performance

1

st

Quarter Outlook

Pinjarra

restored to 100% production in

February following power outage

Pt. Comfort at approximately 85% rate

Higher alumina price

4

th

Quarter Business Conditions

$100

$120

$140

$160

$180

$200

$220

$240

$260

$280

$300

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

ATOI

Total Revenue

9

[Alcoa logo]

4

th

Quarter Highlights

98%

39%

480

ATOI ($MM)

27%

6%

2,766

3

rd

Party Price ($/MT)

33%

15%

1,698

3

rd

Party Revenue ($MM)

4Q vs 4Q

4Q vs 3Q

4Q’06

-

4%

556

3

rd

Party Shipments (kmt)

1%

1%

908

Production (kmt)

Primary Metals

ATOI Performance

1

st

Quarter Outlook

4

th

Quarter Business Conditions

Higher realized pricing and volumes

Increased carbon costs

Iceland start-up costs

Lower energy costs

Average Dec. cash LME = $2,813/MT

Higher carbon and energy costs

Higher Rockdale power costs

Iceland start-up and Intalco restart cost

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

$1,500

$1,700

$1,900

$2,100

$2,300

$2,500

$2,700

$2,900

$3,100

$3,300

$3,500

ATOI

Total Revenue

10

[Alcoa logo]

Favorable aerospace mix

Recovery from 3

rd

quarter mill outages

Swansea shutdown costs

Tax benefit

4Q vs 4Q

4Q vs 3Q

4Q’06

–

29%

62

ATOI ($MM)

22%

1%

2,127

Revenue ($MM)

Flat Rolled Products

4

th

Quarter Highlights

ATOI Performance

1

st

Quarter Outlook

4

th

Quarter Business Conditions

Swansea shutdown costs continue

Aerospace demand remains strong

Productivity to offset cost inflation

$0

$20

$40

$60

$80

$100

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

$1,500

$1,600

$1,700

$1,800

$1,900

$2,000

$2,100

$2,200

ATOI

Third Party Revenue

11

[Alcoa logo]

(4)

(3)

(5)

Other

75

86

(8)

3Q06

Total

Investment Castings,

Forgings,

Fasteners

AFL, Auto Castings and

Structures

47

65

(13)

4Q05

73

61

16

4Q06

Aerospace market remained strong

Cleveland strike impact in forgings

business

Weakness in NA automotive demand

AFL tax benefit

Engineered Solutions

ATOI ($MM)

4

th

Quarter Business Conditions

1

st

Quarter Outlook

Decline in heavy truck due to change in

engine emissions regulations

North American auto production cuts

continue on specific platforms

Global aerospace markets remain

strong despite A380 delays

$0

$20

$40

$60

$80

$100

$120

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

ATOI

Third Party Revenue

12

[Alcoa logo]

3

(2)

(14)

Alcoa Custom Extruded

Solutions

and Other

4Q06

3Q06

4Q05

27

16

(2)

Total

24

18

12

Global Engineered

Products, Building &

Construction Systems

and Russia

Favorable mix in hard alloys

Lower volume in industrial market

Tax benefit

Extruded and End Products

ATOI ($MM)

4

th

Quarter Business Conditions

1

st

Quarter Outlook

Seasonal decline in commercial building

and construction

Expected to finalized soft alloy

extrusions joint venture

-$5

$0

$5

$10

$15

$20

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

$0

$200

$400

$600

$800

$1,000

$1,200

ATOI

Third Party Revenue

13

[Alcoa logo]

(1)

(2)

(1)

Other

24

(4)

30

3Q06

Total

Reynolds Food Packaging

and Flexible Packaging

Closure Systems and

Consumer Products

20

(8)

29

4Q05

26

(9)

36

4Q06

Packaging & Consumer

ATOI ($MM)

4

th

Quarter Business Conditions

1

st

Quarter Outlook

Seasonal decrease in Consumer

Productivity improvements across the

businesses.

–

Seasonal strength in Consumer

–

Seasonal decline in Closures

–

Higher metal costs

$0

$10

$20

$30

$40

$50

$60

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

$500

$600

$700

$800

$900

ATOI

Third Party Revenue

14

[Alcoa logo]

4

th

Quarter 2006 Cash Flow Review

$ In Millions

4Q'05

4Q'06

Net Income

$224

$359

DD&A

315

325

Change in Working Capital

386

402

Other Adjustments

133

300

Pension Contributions

(19)

(53)

Cash From Operating Activities

1,039

1,333

Dividends to Shareholders

(131)

(131)

Change in Debt

(248)

(676)

Other Financing Activities

(64)

174

Cash From Financing Activities

(443)

(633)

Capital Expenditures

(762)

(1,147)

Acquisitions

(5)

0

Other Investing Activities

413

378

Cash From Investing Activities

($354)

($769)

15

[Alcoa logo]

Strong Performance Trends

Bloomberg ROC*

Segment ATOI and Revenue

[Alcoa logo]

Chairman and Chief Executive Officer

Alain J.P. Belda

*

17

[Alcoa logo]

2006 Accomplishments

–

Environmental, Health and Safety

–

Innovation and Technology

–

Portfolio Management

–

Long-Term Growth

–

Financial Performance

18

[Alcoa logo]

Sustainability

–

Named to the Dow Jones Sustainability Index

–

Named one of the most sustainable companies in the

world at the World Economic Forum

–

Ranked 2

nd

in the Covalence Ethical Ranking

–

Ranked 2

nd

overall by CERES on Climate Change and

Governance

19

[Alcoa logo]

Zero Incident Locations

Safety

20

[Alcoa logo]

2006 Accomplishments

–

Environmental, Health and Safety

–

Innovation and Technology

–

Portfolio Management

–

Long-Term Growth

–

Financial Performance

21

[Alcoa logo]

Innovation and Technology

–

Bauxite residue neutralization

–

SMAC (Simultaneous Multi-Alloy Casting)

–

Reynobond®

with KEVLAR

–

Dura-Bright®

products

22

[Alcoa logo]

2006 Accomplishments

–

Environmental, Health and Safety

–

Innovation and Technology

–

Portfolio Management

–

Long-Term Growth

–

Financial Performance

23

[Alcoa logo]

Portfolio Management

–

Sale of Alcoa Home Exteriors

–

Creation of a soft alloy extrusions joint

venture

–

Review of portfolio continues

24

[Alcoa logo]

2006 Accomplishments

–

Environmental, Health and Safety

–

Innovation and Technology

–

Portfolio Management

–

Long-Term Growth

–

Financial Performance

25

[Alcoa logo]

Alcoa’s

Share

of

Nameplate

Capacity

Refining

Smelting

Bauxite

Alcoa’s Upstream Growth Projects

2002

2002

2003

2003

2004

2004

2005

2005

2006

2006

2007

2007

2008

2008

kMT

kMT

R

R

R

S

R

S

R

B

Jamalco

Suralco

Alumar

Pinjarra

Jamalco EWP

Iceland/Mosjoen

Juruti

Sao Luis 2

26

[Alcoa logo]

Alcoa’s Downstream Growth Projects

–

50% aerospace capacity increase across four

locations

–

Major modernization of the Kofem facility

–

Continued improvement in our Russia fabricating

facilities

–

Increased strategic presence in China

27

[Alcoa logo]

Alcoa’s Presence in Asia-Pacific Region

28

[Alcoa logo]

2006 Accomplishments

–

Environmental, Health and Safety

–

Innovation and Technology

–

Portfolio Management

–

Long-Term Growth

–

Financial Performance

29

[Alcoa logo]

2006 Financial Performance

–

Record income from continuing operations

of

$2.5b or $2.90 per share -

$2.2b or $2.47 per

share including the impact of restructurings

–

Record

revenues

of

$30.4b

–

Cash from operations

of $2.6b

–

Debt

to

cap

of

30.6%

–

Trailing

twelve

months

ROC

of

16.2%

excluding

impact of growth projects

30

[Alcoa logo]

Income from Continuing Operations

2006 vs. 2005 Bridge

31

[Alcoa logo]

Bloomberg ROC Trailing 12 Months

Including Growth Capex

Bloomberg ROC Trailing 12 Months

Excluding Growth Capex

Cash from Operations

Strong Performance Trends

32

[Alcoa logo]

2007 Outlook

–

Market Fundamentals

–

Market Conditions

–

Portfolio Improvements

–

Financial Targets

33

[Alcoa logo]

Source:  Alcoa analysis

Market Fundamentals

Alumina Surplus or (Deficit)

Aluminum Surplus or (Deficit)

34

[Alcoa logo]

2007 Anticipated Market Conditions

–

Aerospace

–

Another strong year

–

Automotive

–

Increased production in North

America and Europe

–

Commercial Transportation

–

Decrease in North

America due to 2006 pre-buy

–

Building & Construction

–

Slight slowing but still

healthy growth rates

–

Industrial Products

–

Approximate 10% decline

in industrial gas turbines

35

[Alcoa logo]

2007 Portfolio Improvements

36

[Alcoa logo]

2007 Financial Targets

37

[Alcoa logo]

Tony Thene

Director, Investor Relations

Alcoa

390 Park Avenue

New York, N.Y. 10022-4608

Telephone:  (212) 836-2674

Facsimile:  (212) 836-2813

www.alcoa.com

For Additional Information, Contact:

38

[Alcoa logo]

*

*

*

*

*

*

*

*******************************************

39

[Alcoa logo]

*

*

*

*

*

*

*

*******************************************

APPENDIX

40

[Alcoa logo]

$  359

10

101

(386)  

(82)

(98)

(61)

14

(66)

$  927

4Q06

$  537

(7)

(3)

2  

(64)

(109)

(66)

23

(19)

$  780

3Q06

$2,248

$  744

$  608

$1,233

$  224

$  289

$  460

$  260

Consolidated net income

104

51

50

161

(62)

20

261

(58)

Other (1)

87

(5)

(6)

(22)

13

4

(30)

(9)

Discontinued operations

(379)  

6  

(1)

(197)

(18)

(5)

(144)

(30)

Restructuring and other charges

(317)

(82)

(89)

(312)

(88)

(80)

(73)

(69)

Corporate expense

(436)

(124)

(105)

(259)

(80)

(59)

(60)

(60)

Minority interests

(250)

(63)

(60)

(220)

(51)

(62)

(56)

(51)

Interest expense

58

10

11

42

14

12

9

7

Interest income

(170)

(49)

(36)

(99)

(56)

(22)

(2)

(19)

Impact of LIFO (1)

Unallocated amounts (net of tax):

$ 3,551

$1,000

$  844

$2,139

$  552

$  483

$  555

$  549

Total ATOI

2006

2Q06

1Q06

2005

4Q05

3Q05

2Q05

1Q05

Reconciliation of ATOI to consolidated net

income:

(1)

Certain amounts have been reclassified to Other so that this line reflects only the impact of LIFO.

Prior periods’

financial information has been reclassified to reflect the movement of the Hawesville, KY automotive casting facility and

the home exteriors business to discontinued operations in 2006.

Reconciliation of ATOI to Net Income

41

[Alcoa logo]

Return on Capital (ROC) is presented based on Bloomberg Methodology which calculates ROC based on

trailing four quarters.

Reconciliation of Return on Capital

4Q'06

3Q'06

2Q'06

1Q'06

4Q'05

Bloomberg

4Q'06

Bloomberg

3Q'06

Bloomberg

2Q'06

Bloomberg

1Q'06

Bloomberg

In Millions

Method

Annlzd

Method

Annlzd

Method

Annlzd

Method

Annlzd

Method

Net Income

$2,248

$1,436

$2,113

$2,148

$1,865

$2,976

1,581

$2,432

$1,233

Minority Interest

$436

$392

$418

$436

$368

$496

304

$420

$259

Interest Expense (After-tax)

$291

$373

$272

$304

$268

$282

$274

$264

$261

Numerator (Sum Total)

$2,975

$2,201

$2,803

$2,888

$2,501

$3,754

$2,159

$3,116

$1,753

Average Balances

Short-term borrowings

$386

$454

$349

$395

$306

$361

$342

$331

$279

Short-term debt

$451

$847

$449

$452

$55

$60

$53

$59

$58

Commercial paper

$1,192

$1,833

$1,678

$2,046

$1,501

$1,785

$1,652

$1,292

$771

Long-term debt

$4,861

$4,446

$4,915

$4,801

$5,333

$5,189

$5,243

$5,250

$5,309

Preferred Stock

$55

$55

$55

$55

$55

$55

$55

$55

$55

Minority interests

$1,583

$1,665

$1,416

$1,502

$1,340

$1,432

$1,280

$1,378

$1,391

Common equity

$13,947

$14,613

$14,120

$14,508

$13,834

$14,120

$13,611

$13,596

$13,282

Denominator (Sum Total)

$22,475

$23,913

$22,982

$23,759

$22,424

$23,002

$22,237

$21,961

$21,144

Return on Capital

13.2%

9.2%

12.2%

12.2%

11.2%

16.3%

9.7%

14.2%

8.3%

42

[Alcoa logo]

Return on capital, excluding growth investments is a non-GAAP financial measure.  Management believes that this

measure is meaningful to investors because it provides greater insight with respect to the underlying operating

performance of the company’s productive assets.  The company has significant growth investments underway in its

upstream and downstream businesses, as previously noted, with expected completion dates over the next several

years.  As these investments generally require a period of time before they are productive, management believes that a

return on capital measure excluding these growth investments is more representative of current operating performance.

Reconciliation of Adjusted Return on Capital

4Q'06

3Q'06

2Q'06

1Q'06

4Q'05

Bloomberg

4Q'06

Bloomberg

3Q'06

Bloomberg

2Q'06

Bloomberg

1Q'06

Bloomberg

In Millions

Method

Annlzd

Method

Annlzd

Method

Annlzd

Method

Annlzd

Method

Numerator (Sum Total)

$2,975

$2,201

$2,803

$2,888

$2,501

$3,754

$2,159

$3,116

$1,753

Russia & Bohai

Net Loss

($74)

($44)

($85)

($52)

($78)

($88)

($86)

($110)

($71)

Adjusted Net Income

$3,049

$2,245

$2,888

$2,940

$2,579

$3,842

$2,245

$3,226

$1,824

Average Balances

Denominator (Sum Total)

$22,475

$23,913

$22,982

$23,759

$22,424

$23,002

$22,237

$21,961

$21,144

Capital Projects in Progress,

Russia & Bohai

Capital Base

$3,655

$4,203

$2,540

$3,801

$2,330

$3,220

$2,139

$2,892

$1,913

Adjusted Capital Base

$18,820

$19,710

$20,442

$19,958

$20,094

$19,782

$20,098

$19,069

$19,231

Return on Capital Excluding

Growth Investments

16.2%

11.4%

14.1%

14.7%

12.8%

19.4%

11.2%

16.9%

9.5%

43

[Alcoa logo]

Reconciliation of Income and EPS excluding

Restructuring Charges

Income

from

continuing

operations

–

excluding

restructuring

and

other

charges

is

a

non-GAAP

financial

measure.

The

following

matters

should

be

considered

when

evaluating

this

non-GAAP

financial

measure:

Alcoa

reviews

the

operating

results

of

its

businesses

excluding

the

impacts

of

restructurings

and

discontinued

operations.

Excluding

the

impacts

of

these

items

can

provide

an

additional

basis

of

comparison.

Management

believes

that

these

items

are

unusual

in

nature,

and

would

not

be

indicative

of

ongoing

operating

results.

As

a

result,

management

believes

these

items

should

be

considered

in

order

to

compare

past,

current,

and

future

periods.

The

economic

impacts

of

the

restructuring

charges

are

described

in

a

footnote

to

Alcoa’s

financial

statements.

Generally

speaking,

charges

associated

with

restructurings

include

cash

and

non-cash

charges

and

are

the

result

of

employee

layoff,

plant

consolidation

of

assets,

or

plant

closure

costs.

These

actions

are

taken

in

order

to

achieve

a

lower

cost

base

for

future

operating

results.

Restructuring

charges

and

discontinued

operations

are

typically

material

and

are

considered

to

be

outside

the

normal

operations

of

a

business.

Corporate

management

is

responsible

for

making

decisions

about

restructurings

and

discontinued

operations.

There

can

be

no

assurance

that

additional

restructurings

and

discontinued

operations

will

not

occur

in

future

periods.

To

compensate

for

this

limitation,

management

believes

that

it

is

appropriate

to

consider

both

income

from

continuing

operations

determined

under

GAAP

as

well

as

income

from

continuing

operations

excluding

restructuring

and

other

charges.

1.66

2.90

0.62

0.26

0.74

$ 1,454

$ 2,540

$   538

$   231

$   644

Income from

continuing operations  

–

excluding

restructuring and

other charges

197

379

(2)

18

386

Restructuring and

other charges

1.43

2.47

0.62

0.24

0.29

1,257

2,161

540

213

258

Income from

continuing operations  

–

including

restructuring and

other charges

(22)

87

(3)

13

101

Income (loss) from

discontinued

operations

2

-

-

2

-

Cumulative effect of

accounting change

$  1.40

$  2.57

$  0.61

$  0.26

$  0.41

$ 1,233     

$ 2,248     

$   537     

$   224     

$   359     

Net income

2005

2006

3Q06

4Q05

4Q06

2005

2006

3Q06

4Q05

4Q06

Year ended

Quarter ended

Year ended

Quarter ended

Diluted EPS

Net Income

44

[Alcoa logo]

The effective tax rate, excluding restructuring charges is a non-GAAP financial measure.  Management believes that this measure is

meaningful to investors because it provides greater insight to the company’s tax position.  There can be no assurance that additional

restructuring charges will not occur in the future.  As a result, management believes that it is appropriate to consider the effective tax rate under

GAAP as well as after adjustment for restructuring charges.

18.4%

30.3%

(0.3)%

Effective Tax Rate

167

168

(1)

(Benefit) provision for taxes on income

$  909

$  554

$  355

Income from continuing operations

before taxes on income

($ millions)

As Adjusted

Restructuring and

other charges

As Reported

Quarter ended

December 31,

2006

Reconciliation of Effective Tax Rate excluding

Restructuring Charges

45

[Alcoa logo]

Days of Working Capital Definition

Days Working Capital

(in Millions)

4Q '05

3Q '06

4Q '06

Receivables from customers, less allowances

2,616

$ 

3,152

$ 

3,127

$ 

Add: Inventories

3,191

$ 

3,848

$ 

3,805

$ 

Less: Account Payable, trade

2,420

$ 

2,518

$ 

2,680

$ 

Working Capital

3,387

$ 

4,482

$ 

4,252

$ 

Sales

6,536

$ 

7,631

$ 

7,840

$ 

Days of Working Capital*

47.7

54.0

49.9

*Days Working Capital = Working Capital divided by (Sales/number of days in the quarter)

Quarter ended