2

nd

Quarter 2010 Earnings Conference

July 12, 2010

[Alcoa Logo]

Exhibit 99.2

[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,

2009,

Form

10-Q

for

the

quarter

ended

March

31,

2010,

and

other

reports

filed

with

the

Securities

and

Exchange

Commission.

2

Chuck McLane

Executive Vice President and Chief Financial Officer

[Alcoa Logo]

[Alcoa Logo]

2

nd

Quarter

2010

Financial

Overview

Income

from

Continuing

Operations

of

$137

million,

or

$0.13

per

share

Revenue

increase

of

6%

driven

by

higher

volumes

Cash

Sustainability

Initiatives

continued

to

deliver

EBITDA

of

$724

million,

EBITDA

Margin

of

14.0%

Free

Cash

Flow

positive

Debt

to

Capital

of

38.4%,

Cash

on

hand

of

$1.34

billion

4

[Alcoa Logo]

Revenue Change by Market

5%

(7%)

9%

10%

(1%)

5%

17%

23%

10%

0%

(7%)

67%

5%

50%

47%

(32%)

(14%)

48%

59%

49%

2Q’10 Third Party Revenue

Sequential

Change

Year-Over-Year

Change

5

14%

3%

7%

4%

5%

2%

13%

6%

13%

33%

Aerospace

Automotive

B&C

Comm. Transport

Industrial Products

IGT

Packaging

Distribution/Other

Alumina

Primary Metals

[Alcoa Logo]

Sequential Income Statement Summary

6

$ Millions

1Q’10

2Q’10

Change

Sales

$4,887

$5,187

$300

Cost of Goods Sold

$4,013

$4,210

$197

COGS % Sales

82.1%

81.2%

(0.9 % pts.)

Selling,

General Administrative, Other

$239

$208

($31)

SGA % Sales

4.9%

4.0%

(0.9 % pts.)

Restructuring and Other Charges

$187

$30

($157)

Effective Tax Rate

(95.5%)

25.0%

N/A

(Loss) Income from Continuing Operations

($194)

$137

$331

Loss from Discontinued Operations

($7)

($1)

$6

[Alcoa Logo]

7

2

nd

Quarter

Restructuring

and

Special

Items

$ Millions

After-Tax & Non-

Controlling Interests

Earnings

Per Share

Income Statement

Classification

Segment

Restructuring

($20)

Restructuring

Corporate

Discrete Tax Items

$16

Taxes

Corporate

Special Items:

$2

Rockdale Luminant

Litigation

($7)

Revenue &

Cost

of Goods Sold

Primary

USW Negotiations

($13)

Cost

of Goods Sold

All Segments

Mark

-to-Market Derivatives

$22

Other Income/Expense

Corporate

Total

($2)

($0.00)

[Alcoa Logo]

2

nd

Quarter

2010

vs.

1

st

Quarter

2010

Earnings

Bridge

Income

(Loss)

from

Continuing

Operations

excluding

Restructuring

&

Special

Items

($

millions)

8

See appendix for reconciliation

$101

($36)

$40

$16

$9

$23

($14)

$139

[Alcoa Logo]

Alumina

2

nd

Quarter

Highlights

3

rd

Quarter

Outlook

2

nd

Quarter

Business

Conditions

9

Realized third-party alumina price up 1%

Currency benefit of $18 million, primarily driven by

stronger USD against Australian dollar

Sao Luis commissioning issues negatively

impacted results by $11 million

Pricing to follow two-month lag on LME

Continued benefits from cash sustainability

initiatives

Production projected to increase 150 KMT

2

nd

Quarter

Performance

Bridge

$ Millions

$72

($3)

$94

$18

$2

$3

$3

($1)

2Q 09

1Q 10

2Q 10

Production (kmt)

3,309

3,866

3,890

3

rd

Party Shipments (kmt)

2,011

2,126

2,264

3

rd

Party Revenue ($MM)

441

638

701

ATOI ($MM)

(7)

72

94

[Alcoa Logo]

Primary Metals

2

nd

Quarter

Highlights

2

nd

Quarter

Business

Conditions

3

rd

Quarter

Outlook

10

Realized pricing down 1% sequentially

Higher alumina and LME-linked power costs based

on quarter lag

Positive currency impact of $18 million

Lower non-LME linked energy costs benefit $11m

Curtailed Fusina

during quarter

Pricing to follow 15-day lag to LME

Continued productivity benefits from cash

sustainability initiatives

Production equal to second quarter

2

nd

Quarter

Performance

Bridge

$ Millions

$123

($6)

$109

($43)

$2

$18

$11

$3

$1

2Q 09

1Q 10

2Q 10

Production (

kmt)

906

889

893

3

rd

Party Shipments (kmt)

779

695

699

3

rd

Party Revenue ($MM)

1,146

1,702

1,710

3

rd

Party Price ($/MT)

1,667

2,331

2,309

ATOI ($MM)

(178)

123

109

[Alcoa Logo]

11

Flat-Rolled Products

3

rd

Quarter

Outlook

2

nd

Quarter

Business

Conditions

2

nd

Quarter

Highlights

Higher volumes especially in Russia, North

America, and China

North American RPD margin and volume

improvement

Productivity benefit of $16 million on continuing

gains from cash sustainability initiatives

Growth businesses at breakeven profitability and

Russia at positive ATOI

North American RPD expected to fully offset

margin impact from customer lost in 1Q’10

Improving demand in most regions, including

Russia, China, and Europe

Seasonal impact from summer plant slowdowns

Continued benefits from cash sustainability

initiatives

2

nd

Quarter

Performance

Bridge

$ Millions

ATOI  $ Millions

2Q 09

1Q 10

2Q 10

Global Rolled Products,

excl Russia, China & Other

2

47

71

Russia, China & Other

(37)

(17)

0

Total ATOI

(35)

30

71

$30

($4)

$18

($1) 

$2

$16

$10

$71

[Alcoa Logo]

Engineered Products and Solutions

2

nd

Quarter

Business

Conditions

3

rd

Quarter

Outlook

2

nd

Quarter

Highlights

12

EBITDA margin up 2.7% points vs. Q2’09 despite

$72 million in lower sales

Productivity benefit of $14 million on continued

strong performance in cash sustainability

initiatives

Volume improvements in Aerospace structural

castings and Building and Construction

IGT demand remained weak

Seasonal impact from summer plant slowdowns

Continued benefits from cash sustainability

initiatives

2

nd

Quarter

Performance

Bridge

$ Millions

$81

$3

$15

($7)

$14

$1

$107

$ Millions

2Q 09

1Q 10

2Q 10

3

rd

Party Revenue

1,194

1,074

1,122

ATOI

88

81

107

EBITDA % of Revenue

14.5%

14.2%

17.2%

[Alcoa Logo]

2

nd

Quarter 2010 Cash Flow Overview

13

See appendix for free cash flow reconciliation

2Q’10 FCF

$87 million

$1.34 billion

of cash

($ Millions)

2Q'09

1Q'10

2Q'10

Net (Loss) Income

($459)

($179)

$170

DD&A

317

358

364

Change in Working Capital

329

(336)

(422)

Pension Contributions

(35)

(22)

(22)

Taxes / Other Adjustments

176

378

210

Cash From Operations

$328

$199

$300

Dividends to Shareholders

(31)

(32)

(31)

Change in Debt

(59)

(42)

35

Distributions to  Noncontrolling Interest

(2)

(72)

(41)

Contributions from Noncontrolling Interest

94

27

37

Other Financing Activities

(4)

(61)

3

Cash From Financing Activities

($2)

($180)

$3

Capital Expenditures

(418)

(221)

(213)

Other Investing Activities

(215)

13

(33)

Cash From Investing Activities

($633)

($208)

($246)

[Alcoa Logo]

We Are Focused on Achieving Our 2010 Goals

14

*Procurement reduction of $2.5 billion

Overhead reduction of $500 million

Capital expenditures of $1.25 billion

Days Working Capital reduction of 2 days

Driving Positive Free Cash Flow

*Procurement and other productivity

Klaus Kleinfeld

Chairman and Chief Executive Officer

[Alcoa Logo]

[Alcoa Logo]

2010

2020

6% CAGR

Strong Mid-

and Long-Term Aluminum Fundamentals

Environment

Energy consumption rising

–

Increase of 54% by 2025

–

Driven by developing countries

Personal transport rising

–

Increase of 40% by 2030

Greenhouse gas regulation

Light Weight

High

Strength

Durable

Highly

Conductive

Non-Corrosive

Malleable

Recyclable

Relative

Value

Demographics

Urbanization

The Aluminum Proposition

Aluminum Demand

Mega Trends

Global population rising

–

2006:  6.6 billion

–

2025:  7.9 billion

–

2050:  9.1 billion

Aluminum Outlook

Population in cities

–

2006:  > 50%

–

2030:  > 60%

39.2

73.0

16

EMEA

Americas

Asia

Source: Alcoa Analysis

In MMT

[Alcoa Logo]

Aluminum: Key To Light Weighting Vehicles

17

Fuel Economy Improvement (MPG)

Life

Cycle

CO

2

Emission

Savings

(Kilograms)

Source: Alcoa Analysis, EAA, IAI Transport     CAFE:  Corporate Average Fuel Economy

MPG Improvement

Levers

Powertrain

Drivetrain

Lightweighting

Aluminum

Intensive

High Strength

Steel Intensive

Steel

Baseline

2,900

Aluminum

Intensive

1,050

High Strength

Steel Intensive

Steel

Baseline

CAFE Legislation

2016:

35.5 MPG

Today:

25.5 MPG

3x

Benefit

vs. HSS

3x

Benefit

vs. HSS

0.0

0.0

0.9

2.7

[Alcoa Logo]

2010

2020

2030

Automotive:  A 10 MMT+ Opportunity For Aluminum

18

Significant Aluminum Penetration Opportunity

Source: Alcoa Analysis, The Aluminum Association, IAI Transport

17.9

Aluminum Intensive Vehicle Will Drive

Aluminum Demand

7.4

KMT

Automotive Aluminum Consumption (in MMT)

2020-2030:

Auto

Aluminum

Demand

Grows 40%+

Rapid Adoption of

Aluminum Intensive

Vehicle

10% CAGR

Automotive Aluminum Consumption by Component

0

2,000

4,000

6,000

8,000

10,000

12,000

Currently Aluminum

Aluminum Opportunity

[Alcoa Logo]

Market Conditions in 2010

Alcoa End Markets: Current Assessment of 2010 vs. 2009 Conditions

Source: Alcoa Analysis

19

[Alcoa Logo]

8%

2010 Projected Primary Aluminum Consumption by Region (in mmt)

Raising 2010 Demand Growth Forecast to 12%

Brazil

Russia

Asia w/o China

North America

Europe

China

2009 vs. 2010

Projected Growth Rates

2010 Estimated

Consumption

-15%

-15%

-5%

16.5

4%

-5%

0.9

12%

*Other

9%

-2%

*Other consists of: Middle East, Latin America ex Brazil and Rest of World

39.2

2009

Actual

2010

Forecast

0.9

21%

20

Source: Alcoa Analysis

6%

2009 Global Demand Growth

Rate:  -6%

2010 Global Demand Growth

Rate 12%

(2010 ex China:  6.5%)

4%

4%

India

2.9

1.4

-15%

14%

0%

[Alcoa Logo]

Inventories Lower, Regional Premiums Higher

Source: Bloomberg, IAI

54%

108%

298%

$143 / MT

$179 / MT

$122 / MT

21

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

Midwest

Japan

Europe

Regional Premium (1-Year Change)

Global Inventory Days of Consumption and Regional Premiums

[Alcoa Logo]

China

Western World

2010 Primary Aluminum Surplus Is Manageable

Surplus

Source: Alcoa estimates, Brook Hunt, CRU, CNIA, IAI

22

Surplus

2010 Annualized Production

23,950

Demand

(22,750)

Exports to China, Net

(200)

Net Surplus

1,000

2010 Annualized Production

16,500

Demand

(16,500)

Imports from West, Net

200

Net Surplus

200

2010E Aluminum Supply / Demand Balance (in kmt)

[Alcoa Logo]

10,000

15,000

20,000

10,000

15,000

20,000

Production

SHFE

China: Rationale Response To Changing Aluminum

Dynamics

23

~5.7 MMT with

Cash Cost

Above SHFE

End of Power Subsidy Raises Costs

China Aluminum Cash Cost by Province

RMB/MT

15% Duty On Primary Metal = No Exports

Price Falls => Curtailments Follow

27%

Curtailed

Trade Balance (KMT)

SHFE Prem/Disc ($/MT)

Source: Alcoa Analysis, CRU, CNIA, IAI

(L) –

Denotes low cost grid power

(H) –

Denotes high cost grid power

0

Production (KMT)

SHFE Price ($/MT)

(400)

(200)

0

200

400

(400)

(200)

0

200

400

China Export/(Import)

SHFE Prem/(Disc) to LME

0

11,000

12,000

13,000

14,000

15,000

16,000

17,000

Cash Cost

Additional Power Cost

SHFE

0

[Alcoa Logo]

2010E Alumina Supply / Demand Balance (in kmt)

Source: Alcoa estimates, CRU, CNIA, IAI

Balanced

2010 Global Alumina in Balance

China

Western World

24

2010 Annualized Production

28,500

Imports from Western World

4,000

Supply

32,500

Demand

(31,800)

(Deficit) / Surplus

700

2010 Annualized Production

50,000

Exports to China

(4,000)

Supply

46,000

Demand 

(46,500)

(Deficit) / Surplus

(500)

[Alcoa Logo]

72

62

44

48

68

75

110

104

81

20

49

61

1,549

1,447

1,350

1,433

1,719

1,900

2,570

2,641

2,572

1,664

2,163

2,096

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Q1'10

Q2'10

Significant Value Creation From The Alumina Leader

Alumina financial and strategic overview

EBITDA  per Metric Ton

25

Average =

~$70/MT

100%

110%

95%

105%

Alcoa

3

rd

Party

Alumina

Sales

Price

%

LME

–

18.1 MMT of capacity, including Sao Luis

expansion

–

Low cost alumina production system

–

Unmatched growth potential

–

Ma’aden, lowest cost refinery online in 2014

Alcoa:  The Alumina Leader

LME

EBITDA/MT

[Alcoa Logo]

Driving Primary Metal To A New Profitability Level

Primary Metals financial and strategic overview

EBITDA  per Metric Ton

LME

EBITDA/MT

26

Average =

~$410/MT

Growing Self-Generated Energy

–

4.5 MMT of capacity

–

Optimizing smelter portfolio; reducing costs

–

Ma’aden, lowest cost smelter online in 2013

–

Improving cost curve position

Alcoa:  Poised For Profitable Growth

21%

79%

26%

74%

2010

2011

Self-Generated

Long-Term Contracts

487

460

321

336

418

398

784

626

392

(159)

325

280

1,549

1,447

1,350

1,433

1,719

1,900

2,570

2,641

2,572

1,664

2,163

2,096

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Q1'10

Q2'10

[Alcoa Logo]

Rolled Products Positioned to Substantially Improve Returns

Flat Rolled Products financial and strategic overview

EBITDA & EBITDA % Sales

27

573

541

495

479

531

620

536

498

254

224

107

157

EBITDA $Millions

EBITDA % Sales

YTD

2010

3

rd

Party

Sales

by

Market

75%

Utilization

11%

11%

11%

10%

9%

9%

6%

5%

3%

4%

7%

10%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Q1'10

Q2'10

Distribution

13%

Automotive

8%

B&C

5%

Commercial

Transport

4%

Industrial     

/Other

17%

Packaging

42%

Aerospace

11%

[Alcoa Logo]

Aerospace

47%

IGT

11%

B&C

19%

Commercial

Transport

13%

Automotive

4%

Other

6%

EPS Strong Platform for Profitable Growth

Engineered Products & Solutions financial and strategic overview

EBITDA & EBITDA % Sales

28

368

436

287

356

495

536

676

783

922

630

152

194

EBITDA $Millions

EBITDA % Sales

YTD

2010

3

rd

Party

Sales

by

Market

70%

Utilization

65%

Utilization

11%

11%

8%

9%

12%

11%

12%

13%

15%

13%

14%

17%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Q1'10

Q2'10

[Alcoa Logo]

Aggressively Pursuing 2010 Operational Targets

Procurement

1

Overhead

$500

Total

Capex

2

$1,250

Working Capital

35

2010 Cash Sustainability Operational Targets and Actual Performance

$ Millions

$311

$514

42

$ Millions

$ Millions

Days Working Capital

$2,500

$1,414

2010

YTD

2010

Target

2010

YTD

2010

Target

2010

YTD

2010

Target

2010

YTD

2010

Target

1

Procurement

and

other

productivity

2

Total

Capex

includes

investments

in

Ma’aden

project

29

[Alcoa Logo]

Alcoa Is Driving Value Today And Over The Long-Term

30

–

Global

alumina leader

leveraging

production

base

–

Global

aluminum leader

reducing

cost

position

–

Alcoa

Rolled Products

leading

revitalization

–

EPS

expanding

market

leadership

and

profitability

Alcoa: Driving Value

Alcoa Performance Strengthening (EBITDA Margin)

Long-term Drivers Remain Intact

20%

17%

15%

14%

14%

13%

19%

16%

12%

2%

12%

14%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Q1'10

Q2'10

Strong Mid

-

and Long

-Term Aluminum Fundamentals

Environment

Energy consumption rising

–Increase of 54% by 2025

–Driven by developing countries

Personal transport rising

–Increase of 40% by 2030

Greenhouse gas regulation

Light Weight

High

Strength

Durable

Highly

Conductive

Non-Corrosive

Malleable

Recyclable

Relative

Value

Demographics

Urbanization

The Aluminum Proposition

Aluminum Demand

Mega Trends

Global population rising

–2006:  6.6 billion

–2025:  7.9 billion

–2050:  9.1 billion

Aluminum Outlook

Population in cities

–2006:  > 50%

–2030:  > 60%

2010

2020

6% CAGR

39.2

73.0

16

EMEA

Americas

Asia

Source: Alcoa Analysis

In MMT

low cost

profitability

[Alcoa Logo]

Matthew E. Garth

Director, Investor Relations

390 Park Avenue

New York, NY 10022-4608

Telephone:  (212) 836-2674

www.alcoa.com

Additional Information

31

[Alcoa Logo]

[Alcoa Logo]

*

*

*

*

*

*

*

*

*

*

*

*

[Alcoa Logo]

Annual Sensitivity Summary

33

LME Aluminum Annual Net Income Sensitivity

Currency Annual Net Income Sensitivity

+/-

10% versus USD

Australian $

+/-

$75 million

Brazilian

$

+/-

$50 million

Euro €

+/-

$40 million

Canadian $

+/-

$35 million

+/-

$100/MT = +/-

$200

million

[Alcoa Logo]

Effective Tax Rate

Effective tax rate, excluding discrete tax items is a non-GAAP financial measure.  Management believes that the Effective tax rate, excluding

discrete tax items is meaningful to investors because it provides a view of Alcoa’s operational tax rate.

34

$ Millions

1Q’10

2Q’10

(Loss) income from continuing operations before income taxes

($88)

$228

Provision for income taxes

$84

$57

Effective tax rate as reported

(95.5%)

25.0%

Discrete tax provisions:

Medicare Part-D

$79

--

Transaction-related and other items

$33

($16)

Subtotal -

Discrete tax (benefits) provisions

$112

($16)

(Benefit)

Provision for income taxes excluding discrete tax (benefits) provisions

($28)

$73

Effective tax rate excluding discrete tax (benefits) provisions

31.8%

32.0%

[Alcoa Logo]

Reconciliation of ATOI to Consolidated Net (Loss) Income

Attributable to Alcoa

35

(in millions)

1Q09

2Q09

3Q09

4Q09

2009

1Q10

2Q10

   Total segment ATOI

$   

(143)

$   

(132)

$    

142 

$    (101)

$   

(234)

$     306 

$     381 

   Unallocated amounts (net of tax):

      Impact of LIFO

29

39

80

87

235

(14)

(3)

      Interest income

1

8

(1)

4

12

3

3

      Interest expense

(74)

(75)

(78)

(79)

(306)

(77)

(77)

      Noncontrolling interests

(10)

5

(47)

(9)

(61)

(22)

(34)

      Corporate expense

(71)

(70)

(71)

(92)

(304)

(67)

(59)

      Restructuring and other charges

(46)

(56)

(3)

(50)

(155)

(122)

(21)

      Discontinued operations

(17)

(142)

4

(11)

(166)

(7)

(1)

      Other

(166)

(31)

51

(26)

(172)

(201)

(53)

   Consolidated net (loss) income attributable to

Alcoa

$    (497)

$    (454)

$       77

$    (277)

$ (1,151)

$    (201)

$     136

[Alcoa Logo]

Reconciliation of Adjusted Income

36

(in millions)

Quarter ended

March 31,

2010

June 30,

2010

Net (loss) income

attributable to Alcoa

$    (201) 

$     136  

Loss from

discontinued

operations

        (7)

        (1)

(Loss) income from

continuing

operations

attributable to Alcoa

(194)

137

Restructuring and

other charges

119

20

Discrete tax items*

112

(16)

Special items**

       64

        (2)

Income from

continuing

operations

attributable to Alcoa

–

as adjusted

$     101

$     139

Income from continuing operations attributable to Alcoa – as adjusted is a non-GAAP financial measure.  Management believes that this measure is meaningful

to investors because management reviews the operating results of Alcoa excluding the impacts of restructuring and other charges, discrete tax items, and special

items.  There can be no assurances that additional restructuring and other charges, discrete tax items, and special items will not occur in future periods.  To

compensate for this limitation, management believes that it is appropriate to consider both (Loss) income from continuing operations attributable to Alcoa

determined under GAAP as well as Income from continuing operations attributable to Alcoa – as adjusted.

* Discrete tax items include the following: a benefit for a change in a Canadian provincial tax law permitting tax returns to be filed in U.S. dollars ($24), a charge based on settlement

discussions of several matters with international taxing authorities ($18), and a benefit for the recovery of a portion of the unfavorable impact included in the quarter ended March

31, 2010 related to unbenefitted losses in Russia, China, and Italy ($10); and charges for a change in the tax treatment of federal subsidies received related to prescription drug

benefits provided under certain retiree health benefit plans ($79), unbenefitted losses in Russia, China, and Italy ($22)(expected to reverse by the end of 2010), interest due to the

IRS related to a previously deferred gain associated with the 2007 formation of the former soft alloy extrusions joint venture ($6), and a change in the anticipated sale structure of

the Transportation Products Europe business ($5) for the quarter ended March 31, 2010.

** Special items include the following: favorable mark-to-market changes in derivative contracts ($22), a charge for costs associated with the potential strike and successful execution

of a new agreement with the USW ($13), and a charge related to an unfavorable decision in Alcoa’s lawsuit against Luminant related to the Rockdale, TX facility ($7); and charges

related to unfavorable mark-to-market changes in derivative contracts ($31), power outages at the Rockdale, TX and São Luís, Brazil facilities ($17), an additional environmental

accrual for the Grasse River remediation in Massena, NY ($11), and the write off of inventory related to the permanent closures of certain U.S. facilities ($5) for the quarter ended

March 31, 2010.

[Alcoa Logo]

Reconciliation of Free Cash Flow

37

(in millions)

Quarter ended

June 30,

2010

Cash provided from operations

$    300

Capital expenditures

    (213)

Free cash flow

$      87

Free Cash Flow is a non-GAAP financial measure.  Management believes that this measure is meaningful to investors because

management reviews cash flows generated from operations after taking into consideration capital expenditures due to the fact that these

expenditures are considered necessary to maintain and expand Alcoa’s asset base and are expected to generate future cash flows from

operations.  It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures

since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. 

[Alcoa Logo]

Reconciliation of Alcoa EBITDA

38

($ in millions)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

1Q10

2Q10

Net income (loss)

attributable to

Alcoa

$  1,484

$     908

$     420

$     938

$  1,310

$  1,233

$  2,248

$  2,564

$      (74)

$ (1,151)

$    (201)

$     136

Add:

Net income

attributable to

noncontrolling

interests

306

205

181

212

233

259

436

365

221

61

22

34

Cumulative effect

of accounting

changes

5

–

(34)

47

–

2

–

–

–

–

–

–

(Income) loss from

discontinued

operations

(73)

5

101

–

27

50

(22)

250

303

166

7

1

Provision (benefit)

for income taxes

859

524

307

367

546

464

853

1,623

342

(574)

84

57

Other (income)

expenses, net

(136)

(295)

(175)

(278)

(266)

(478)

(236)

(1,920)

(59)

(161)

21

(16)

Interest expense

427

371

350

314

271

339

384

401

407

470

118

119

Restructuring and

other charges

(1)

530

398

(28)

(29)

266

507

268

939

237

187

30

Provision for

depreciation,

depletion, and

amortization

1,123

1,144

1,037

1,110

1,142

1,227

1,252

1,244

1,234

1,311

358

363

Earnings before

interest, taxes,

depreciation, and

amortization

(EBITDA)

$  3,994

$  3,392

$  2,585

$  2,682

$  3,234

$  3,362

$  5,422

$  4,795

$  3,313

$     359

$     596

$     724

Sales

$19,947

$19,906

$17,691

$18,879

$21,370

$24,149

$28,950

$29,280

$26,901

$18,439

$  4,887

$  5,187

EBITDA/

Sales

(EBITDA Margin

)

20%

17%

15%

14%

15%

14%

19%

16%

12%

2%

12%

14%

Alcoa’s

definition

of

EBITDA

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. EBITDA is a non -GAAP financial

measure. Management believes that this measure is meaningful to investors because EBITDA provides additional information with respect to Alcoa’s operating performance and the

Company’s ability to meet its financial obligations. The EBITDA presented may not be comparable to similarly titled measures of other companies.

[Alcoa Logo]

Reconciliation of Alumina EBITDA

39

($ in millions)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

1Q10

2Q10

Alumina

After-tax operating

income (ATOI)

$     585

$     471

$     315

$     415

$     632

$     682

$  1,050

$     956

$     727

$  

112

$       72

$       94

Add:

Depreciation,

depletion, and

amortization

163

144

139

147

153

172

192

267

268

292

92

107

Equity (income)

loss

(3)

(1)

(1)

–

(1)

–

2

(1)

(7)

(8)

(2)

(4)

Income taxes

279

184

130

161

240

246

428

340

277

(22)

27

41

Other

(12)

(17)

(14)

(55)

(46)

(8)

(6)

2

(26)

(92)

1

(2)

Earnings before

interest, taxes,

depreciation, and

amortization

(EBITDA)

$  1,012

$     781

$     569

$     668

$ 

978

$  1,092

$  1,666

$  1,564

$  1,239

$     282

$

190

$

236

Production

(thousand metric

tons) (kmt)

13,968

12,527

13,027

13,841

14,343

14,598

15,128

15,084

15,256

14,265

3,866

3,890

EBITDA/Production

($ per metric ton)

72

62

44

48

68

75

110

104

81

20

49

61

Alcoa’s definition of EBITDA is net margin plus an add -back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold;

Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Other line in the table above

includes

gains/losses

on

asset

sales

and

other

nonoperating

items.

EBITDA

is

a

non

-GAAP

financial

measure.

Management

believes

that

this

measure

is

meaningful

to

investors

because

EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The EBITDA presented may not be

comparable to similarly titled measures of other companies.

[Alcoa Logo]

Reconciliation of Primary Metals EBITDA

40

($ in millions)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

1Q10

2Q10

Primary Metals

After-tax operating

income (ATOI)

$  1,000

$     905

$     650

$     657

$     808

$     822

$  1,760

$  1,445

$     931

$    (612)

$     123

$     109

Add:

Depreciation,

depletion, and

amortization

311

327

300

310

326

368

395

410

503

560

147

142

Equity (income)

loss

(50)

(52)

(44)

(55)

(58)

12

(82)

(57)

(2)

26

–

(1)

Income taxes

      505

      434

      266

      256

      314

      307

      726

      542

      172

     (365)

        18

        –

Other

       (41)

         (8)

       (47)

        12

        20

       (96)

       (13)

       (27)

       (32)

     (176)

          1

          –

Earnings before

interest, taxes,

depreciation, and

amortization

(EBITDA)

$  1,725

$  1,606

$ 

1,125

$ 

1,180

$  1,410

$  1,413

$  2,786

$  2,313

$  1,572

$    (567)

$     289

$     250

Production

(thousand metric

tons) (kmt)

3,539

3,488

3,500

3,508

3,376

3,554

3,552

3,693

4,007

3,564

889

893

EBITDA/Production

($ per metric ton)

     487

     460

     321

     336

     418

     398

     784

     626

     392

    (159)

     325

     280

Alcoa’s definition of EBITDA is net margin plus an add-back for depreciation, depletion, and amortization.  Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general

administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization.  The Other line in the table above includes gains/losses on asset

sales and other nonoperating items.  EBITDA is a non-GAAP financial measure.  Management believes that this measure is meaningful to investors because EBITDA provides additional information with

respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations.  The EBITDA presented may not be comparable to similarly titled measures of other companies.

[Alcoa Logo]

Reconciliation of Flat-Rolled Products EBITDA

41

($ in millions)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

1Q10

2Q10

Flat-Rolled

Products

After-tax operating

income (ATOI)

$     296

$     253

$     225

$     222

$     254

$     278

$     233

$     178

$       

(3)

$      (49)

$       30

$       71

Add:

Depreciation,

depletion, and

amortization

153

167

184

190

200

220

223

227

216

227

59

57

Equity (income)

loss

(3)

2

4

1

1

–

2

–

–

–

–

–

Income taxes

      126

      124

        90

        71

        75

      121

        58

        92

        35

        48

        18

        28

Other

          1

         (5)

         (8)

         (5)

          1

          1

        20

          1

          6

         (2)

          –

          1

Earnings before

interest, taxes,

depreciation, and

amortization

(EBITDA)

$     573

$    

541

$    

495

$    

479

$     531

$     620

$      536

$     498

$     254

$     224

$     107

$     157

Total sales

$  5,167

$  4,868

$  4,571

$  4,768

$  6,042

$  7,081

$  8,610

$  9,597

$  9,184

$  6,182

$  1,481

$  1,614

EBITDA/Total

sales

11%

11%

  11%

10%

9%

9%

6%

5%

3%

4%

7%

10%

Alcoa’s definition of EBITDA is net margin plus an add-back for depreciation, depletion, and amortization.  Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general

administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization.  The Other line in the table above includes gains/losses on asset

sales and other nonoperating items.  EBITDA is a non-GAAP financial measure.  Management believes that this measure is meaningful to investors because EBITDA provides additional information with

respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations.  The EBITDA presented may not be comparable to similarly titled measures of other companies.

[Alcoa Logo]

Reconciliation of Engineered Products and Solutions EBITDA

42

($ in millions)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2Q09

1Q10

2Q10

Engineered

Products and

Solutions

After-tax operating

income (ATOI)

$     125

$     189

$       63

$     124

$     156

$     271

$

365

$     435

$     533

$     315

$       88

$       81

$     107

Add:

Depreciation,

depletion, and

amortization

165

186

150

166

168

160

152

163

165

177

46

41

38

Equity (income)

loss

(1)

–

–

–

–

–

6

–

–

(2)

–

(1)

–

Income taxes

79

61

39

55

65

116

155

192

222

139

40

31

48

Other

–

–

35

11

106

(11)

(2)

(7)

2

1

(1)

–

–

Earnings before

interest, taxes,

depreciation, and

amortization

(EBITDA)

$     368

$     436

$     287

$     356

$     495

$     536

$      676

$  

783

$     922

$     630

$     173

$     152

$     193

Total sales

$  3,386

$  4,141

$  3,492

$  3,905

$  4,283

$  4,773

$  5,428

$  5,834

$  6,199

$  4,689

$  1,194

$  1,074

$  1,122

EBITDA/Total

sales

11%

11%

8%

9%

12%

11%

12%

13%

15%

13%

14%

14%

17%

Alcoa’s definition of EBITDA is net margin plus an add-back for depreciation, depletion, and amortization.  Net margin is equivalent to Sales minus the following items: Cost of goods

sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization.  The Other line in the

table above includes gains/losses on asset sales and other nonoperating items.  EBITDA is a non-GAAP financial measure.  Management believes that this measure is meaningful to

investors because EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations.  The EBITDA

presented may not be comparable to similarly titled measures of other companies.