2

nd

Quarter Earnings Conference

1

July 8, 2014

[[Alcoa logo]

Exhibit 99.2

[Alcoa logo]

Cautionary Statement

2

Forward-Looking Statements

This

presentation

contains

statements

that

relate

to

future

events

and

expectations

and

as

such

constitute

forward-looking

statements.

Forward-looking

statements

include

those

containing

such

words

as

“anticipates,”

“estimates,”

“expects,”

“forecasts,”

“intends,”

“outlook,”

“plans,”

“projects,”

“sees,”

“should,”

“targets,”

“will,”

or

other

words

of

similar

meaning.

All

statements

that

reflect

Alcoa’s

expectations,

assumptions

or

projections

about

the

future

other

than

statements

of

historical

fact

are

forward-looking

statements,

including,

without

limitation,

forecasts

concerning

global

demand

growth

for

aluminum,

end

market

conditions,

supply/demand

balances,

and

growth

opportunities

for

aluminum

in

automotive,

aerospace,

and

other

applications;

targeted

financial

results

or

operating

performance;

statements

about

Alcoa’s

strategies,

outlook,

and

business

and

financial

prospects;

and

statements

regarding

Alcoa’s

portfolio

transformation

and

the

proposed

acquisition

of

the

Firth

Rixson

business,

including

the

expected

benefits

of

the

transaction

and

Firth

Rixson’s

expected

sales

growth

and

contribution

to

revenues

and

EBITDA.

These

statements

reflect

beliefs

and

assumptions

that

are

based

on

Alcoa’s

perception

of

historical

trends,

current

conditions

and

expected

future

developments,

as

well

as

other

factors

management

believes

are

appropriate

in

the

circumstances.

Forward-looking

statements

are

subject

to

a

number

of

known

and

unknown

risks

and

uncertainties

and

are

not

guarantees

of

future

performance.

Important

factors

that

could

cause

actual

results

to

differ

materially

from

those

expressed

or

implied

in

the

forward-looking

statements

include:

(a)

material

adverse

changes

in

aluminum

industry

conditions,

including

global

supply

and

demand

conditions

and

fluctuations

in

London

Metal

Exchange-based

prices

and

premiums,

as

applicable,

for

primary

aluminum,

alumina,

and

other

products,

and

fluctuations

in

indexed-

based

and

spot

prices

for

alumina;

(b)

deterioration

in

global

economic

and

financial

market

conditions

generally;

(c)

unfavorable

changes

in

the

markets

served

by

Alcoa,

including

aerospace,

automotive,

commercial

transportation,

building

and

construction,

packaging,

and

industrial

gas

turbine;

(d)

the

impact

of

changes

in

foreign

currency

exchange

rates

on

costs

and

results,

particularly

the

Australian

dollar,

Brazilian

real,

Canadian

dollar,

euro,

and

Norwegian

kroner;

(e)

increases

in

energy

costs

or

the

unavailability

or

interruption

of

energy

supplies;

(f)

increases

in

the

costs

of

other

raw

materials;

(g)

Alcoa’s

inability

to

achieve

the

level

of

revenue

growth,

cash

generation,

cost

savings,

improvement

in

profitability

and

margins,

fiscal

discipline,

or

strengthening

of

competitiveness

and

operations

(including

moving

its

alumina

refining

and

aluminum

smelting

businesses

down

on

the

industry

cost

curves

and

increasing

revenues

and

improving

margins

in

its

Global

Rolled

Products

and

Engineered

Products

and

Solutions

segments)

anticipated

from

its

restructuring

programs

and

productivity

improvement,

cash

sustainability,

technology,

and

other

initiatives;

(h)

Alcoa’s

inability

to

realize

expected

benefits,

in

each

case

as

planned

and

by

targeted

completion

dates,

from

sales

of

non-core

assets,

or

from

newly

constructed,

expanded,

or

acquired

facilities,

or

from

international

joint

ventures,

including

the

joint

venture

in

Saudi

Arabia;

(i)

political,

economic,

and

regulatory

risks

in

the

countries

in

which

Alcoa

operates

or

sells

products,

including

unfavorable

changes

in

laws

and

governmental

policies,

civil

unrest,

imposition

of

sanctions,

expropriation

of

assets,

or

other

events

beyond

Alcoa’s

control;

(j)

the

outcome

of

contingencies,

including

legal

proceedings,

government

investigations,

and

environmental

remediation;

(k)

the

impact

of

cyber

attacks

and

potential

information

technology

or

data

security

breaches;

(l)

failure

to

receive,

delays

in

the

receipt

of,

or

unacceptable

or

burdensome

conditions

imposed

in

connection

with,

all

required

regulatory

approvals,

or

the

inability

to

satisfy

the

other

closing

conditions

to

the

proposed

Firth

Rixson

acquisition;

(m)

the

risk

that

the

Firth

Rixson

business

will

not

be

integrated

successfully

or

such

integration

may

be

more

difficult,

time-consuming

or

costly

than

expected;

(n)

Alcoa’s

inability

to

complete

financing

for

the

Firth

Rixson

acquisition

as

contemplated

or

otherwise

secure

favorable

terms

for

such

financing;

(o)

the

possibility

that

certain

assumptions

with

respect

to

Firth

Rixson

or

the

proposed

transaction

could

prove

to

be

inaccurate;

(p)

the

loss

of

customers,

suppliers

and

other

business

relationships

of

Alcoa

or

Firth

Rixson

as

a

result

of

the

proposed

acquisition;

and

(q)

the

other

risk

factors

summarized

in

Alcoa’s

Form

10-K

for

the

year

ended

December

31,

2013,

Form

10-Q

for

the

quarter

ended

March

31,

2014,

and

other

reports

filed

with

the

Securities

and

Exchange

Commission

(SEC).

Alcoa

disclaims

any

obligation

to

update

publicly

any

forward-

looking

statements,

whether

in

response

to

new

information,

future

events

or

otherwise,

except

asrequired

by

applicable

law.

This

presentation

does

not

constitute

an

offer

to

sell

or

the

solicitation

of

an

offer

to

buy

any

securities.

The

common

shares

of

Alcoa

will

only

be

issued

pursuant

to

the

terms

of

the

definitive

agreement

for

the

acquisition

of

Firth

Rixson.

Non-GAAP

Financial

Measures

Some

of

the

information

included

in

this

presentation

is

derived

from

Alcoa’s

consolidated

financial

information

but

is

not

presented

in

Alcoa’s

financial

statements

prepared

in

accordance

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Certain

of

these

data

are

considered

“non-GAAP

financial

measures”

under

SEC

rules.

These

non-GAAP

financial

measures

supplement

our

GAAP

disclosures

and

should

not

be

considered

an

alternative

to

the

GAAP

measure.

Reconciliations

to

the

most

directly

comparable

GAAP

financial

measures

and

management’s

rationale

for

the

use

of

the

non-GAAP

financial

measures

can

be

found

in

the

Appendix

to

this

presentation

and

on

our

website

at

www.alcoa.com

under

the

“Invest”

section.

Any

reference

to

historical

EBITDA

means

adjusted

EBITDA,

for

which

we

have

provided

calculations

and

reconciliations

in

the

Appendix

and

on

our

website.

Alcoa

has

not

provided

a

reconciliation

of

any

forward-looking

non-GAAP

financial

measure

to

the

most

directly

comparable

GAAP

financial

measure,

due

primarily

to

variability and difficulty in making accurate forecasts and projections, as not all of the information necessary for a quantitative reconciliation is available to Alcoa without unreasonable effort.

3

Transformation

Accelerates

-

All

Groups

Improve

QoQ

and

YoY

1)

$8.1

billion

debt

and

$518

million

cash

from

operations

2)

Alcoa

Minerals

of

Jamaica

bauxite

mine

and

alumina

refinery

Any

reference

in

our

presentation

to

historical

EBITDA

means

adjusted

EBITDA,

for

which

we

have

provided

calculations

and

reconciliations

in

the

appendix

[[Alcoa logo]

Delivering

Strong

Operational

Performance

Strong

Earnings

Increase:

–

Downstream:

Highest

Ever

quarterly

ATOI

and

EBITDA

Margin;

$204

million

and

23.1%

–

Midstream:

ATOI

up

34%

–

Upstream:

Improved

Performance

–

11

Consecutive

Quarters

Productivity:

$302

million

Across

All

Segments

YoY

Net

Debt

1

:

$6.9

billion;

Lowest

Level

since

September

2007

Positive

Free

Cash

Flow

1

:

$260

million

2Q 2014 Overview

Accelerating

Portfolio

Transformation

$2.85

billion

Firth

Rixson

acquisition

announcement

Global

Leader

in Jet

Engine

Components;

strengthens

robust

aerospace

portfolio

$100

million

Investment

Expands

Structural

Engine

Component

Reach

$25

million

Investment

further

Enhances

Jet

Engine

Blade

Performance

Safely

Executed

Brazil

Curtailments

of

147

kmt

Letter

of

Intent

signed

to

Pursue

Sale

of

Jamalco

2

Ownership

Interest

William Oplinger

Executive Vice President and Chief Financial Officer

4

July 8, 2014

[[Alcoa logo]

Income Statement Summary

5

Any reference in our presentation to EBITDA means adjusted EBITDA, for which we have provided calculations

and reconciliations in the appendix.  See appendix for Adjusted Income reconciliation.

$ Millions, except aluminum prices and per-share amounts

2Q13

1Q14

2Q14

Prior Year

Change

Sequential

Change

Realized Aluminum Price ($/MT)

$2,237

$2,205

$2,291

$54

$86

Revenue

$5,849

$5,454

$5,836

($13)

$382

Cost of Goods Sold

$4,933

$4,495

$4,765

($168)

$270

COGS % Revenue

84.3%

82.4%

81.6%

(2.7 % pts.)

(0.8 % pts.)

Selling,

General Administrative, Other

$254

$236

$245

($9)

$9

SGA % Revenue

4.3%

4.3%

4.2%

(0.1 % pts.)

(0.1 % pts.)

Other

Expense, Net

$19

$25

$5

($14)

($20)

Restructuring and Other Charges

$244

$461

$110

($134)

($351)

Effective Tax Rate

(16.5%)

28.1%

37.7%

54.2 % pts.

9.6 % pts.

EBITDA

$616

$672

$776

$160

$104

Net Income (Loss)

($119)

($178)

$138

$257

$316

Net Income (Loss) Per Diluted Share

($0.11)

($0.16)

$0.12

$0.23

$0.28

Income

per Diluted

Share excl

Special Items

$0.07

$0.09

$0.18

$0.11

$0.09

[[Alcoa logo]

Special Items

1)  Total restructuring-related charges in 2Q14 of $54 million  (83 percent non-cash, 17 percent cash) 

See appendix for Adjusted Income reconciliation

6

$ Millions, except per-share amounts

1Q14

2Q14

Income Statement

Classification

Segment

Net Income (Loss)

($178)

$138

Net Income (Loss) Per Diluted Share

($0.16)

$0.12

Restructuring-Related¹

($296)

($54)

Restructuring/COGS/

Other Expenses, Net

Corporate / Primary

Metals/ GRP

Tax Items

$22

($2)

Income Taxes

Corporate

Master

U.S. Labor Agreement

$0

($11)

COGS

Corporate / All

Firth Rixson

Acquisition Costs

$0

($11)

SG&A

Corporate

Saudi Arabia Smelter Potline

($13)

($6)

COGS

Other Expenses, Net

Primary Metals

Mark-to-Market Energy Contracts

$0

$6

Other Expenses, Net

Corporate

Surgold

Gain

$11

$0

Other Expenses, Net

Alumina

Special Items

($276)

($78)

Net Income excl Special Items

$98

$216

Net

Income

per Diluted

Share excl Special Items

$0.09

$0.18

[[Alcoa logo]

Volume, productivity and price drives sequential improvement

7

See appendix for Adjusted Income reconciliation

Net Income excluding Special Items ($ Millions)

Market

+$33

Performance

+$81

Cost Headwinds/Other  

+$4

26

6

24

22

21

38

13

46

216

98

2Q 14

Price

/ Mix

Cost

Increases

/ Other

Raw

Materials

Energy

Productivity

LME

Currency

Volume

1Q 14

[[Alcoa logo]

Earnings nearly triple year-over-year on productivity and pricing

8

See appendix for Adjusted Income reconciliation

Net Income excluding Special Items ($ Millions)

Market

-$10

Performance

+$263

Cost Headwinds/Other

-$113

131

8

10

188

63

12

18

28

216

76

2Q 14

Cost

Increases

/ Other

Raw

Materials

Energy

Productivity

Price

/ Mix

Volume

Currency

LME

2Q 13

[[Alcoa logo]

Any reference in our presentation to EBITDA means adjusted EBITDA, for which we have provided calculations

and reconciliations in the appendix. 

Record results for Engineered Products and Solutions

9

[[Alcoa logo]

$ Millions

2Q 13

1Q 14

2Q 14

3

rd

Party Revenue ($ Millions)

1,468

1,443

1,502

ATOI ($ Millions)

193

189

204

EBITDA Margin

22.2%

22.2%

23.1%

2

nd

Quarter Results

2

nd

Quarter Business Highlights

3

rd

Quarter Outlook

2

nd

Quarter Performance Bridge

2Q 14

$204

Labor

negotiation

costs

-$1

Cost

Increase

-$1

Prod

-

uctivity

$8

Price / Mix

-$2

Volume

$11

1Q 14

$189

2Q14 Actual and 3Q14 Outlook –

Engineered Products and Solutions

Revenue

up

4%

sequentially

driven

by

share

gains

across

all

sectors

Best

ever

quarterly

EBITDA

margin

at

23.1%

Best

ever

quarterly

ATOI

of

$204M

Quarterly

ATOI

up

6%

year-over-year

driven

by

productivity

and

strong

Aerospace,

Commercial

Transportation

and

Building

and

Construction

demand

Aerospace

market

remains

strong,

but

impacted

by

lower

U.S.

Defense

spare

parts

demand

Continued

recovery

in

N.A.

Non-Residential

Construction;

European

market

remains

weak

European

summer

slowdown

across

all

sectors

Stronger

N.A.

Heavy

Duty

Truck

build

rates

partially

offset

by

Europe

Share

gains

through

innovation

&

productivity

continue

across

all

sectors

ATOI

is

expected

to

increase

5%-10%

year- over-year

GRP improves on higher seasonal volume and productivity

10

Any reference in our presentation to EBITDA means adjusted EBITDA, for which we have provided calculations

and reconciliations in the appendix.  AIVs = Aluminum intensive vehicles.

[[Alcoa logo]

$ Millions

2Q14

Actual

and

3Q14

Outlook

–

Global

Rolled

Products

2

nd

Quarter Results

2

nd

Quarter Business Highlights

2

nd

Quarter Performance Bridge

2Q 14

$79

Labor

Negotiation

Costs

-$4

Portfolio

Actions

$11

Cost

Increases

-$4

Prod-

uctivity

$6

Price

/ Mix

-$8

Volume

$21

Currency

-$5

Metal

$3

1Q 14

$59

Auto demand

staying strong; AIVs

ramping up

Volume

and

cost absorption impacts

due

to

seasonal

summer

shutdowns

Continued

pricing pressure

in

packaging

and

industrial

2Q 13

1Q 14

2Q 14

3

rd

Party Revenue ($ Millions)

1,877

1,677

1,860

ATOI ($ Millions)

79

59

79

EBITDA/MT

322

315

313

3

rd

Quarter Outlook

Higher

volume

from

seasonal

Packaging

and

stronger

demand

for

Industrial,

Commercial

Transportation

Pricing

pressures

continue

in

Packaging

and

Industrial

Costs

associated

with

renewing

the

U.S.

labor

contract

Absence

of

costs

associated

with

portfolio

actions

in

Australia

ATOI

is expected to be down ~ 15%

sequentially; mainly

seasonal

impacts

Alumina earnings reflect portfolio actions, lower volumes, cost increases

11

[[Alcoa logo]

Strong Primary earnings reflect portfolio actions, power sales, premiums

12

[[Alcoa logo]

Four day year-over-year increase in average DWC

See

appendix

for

days

working

capital

reconciliation

13

[[Alcoa logo]

5

days

lower

Average

Days

Working

Capital

since

Second

Quarter

2009

3

days

lower

8

days

lower

6

days

lower

4

days

higher

18 day

reduction

since 2Q09

4 day

increase

since 2Q2013

Driver

Horizon

Labor negotiations

Near-term

Future sales expectations

Near-term

Curtailments

Near-term

Automotive growth

Mid-term

2

nd

Quarter Cash Flow Overview

14

See appendix for Free Cash Flow reconciliation

($ Millions)

2Q13

1Q14

2Q14

Net Income before Noncontrolling

Interests

($148)

($197)

$129

DD&A

$363

$340

$350

Change in Working Capital

$72

($687)

$1

Pension Contributions

($98)

($91)

($191)

Other Adjustments

$325

$84

$229

Cash from Operations

$514

($551)

$518

Dividends to Shareholders

($33)

($33)

($36)

Change in Debt

($531)

($14)

$296

(Distributions to)/Contributions from Noncontrolling

Interests

($5)

($15)

$4

Other Financing Activities

$1

$72

$17

Cash from Financing Activities

($568)

$10

$281

Capital Expenditures

($286)

($209)

($258)

Other Investing Activities

$10

($31)

($28)

Cash from Investing Activities

($276)

($240)

($286)

2Q13, 1Q14 & 2Q14 Cash Flow

[[Alcoa logo]

15

See appendix for Net Debt  reconciliation

Lowest Net Debt since September 2007

7,082

6,872

1,481

1,543

1,939

1,861

1,437

665

1,183

6,882

8,338

9,816

762

2Q14

8,055

1Q14

7,747

2013

8,319

2012

8,829

6,968

2011

9,371

7,432

2010

9,165

7,622

2009

9,819

2008

10,578

(Millions)

Debt to Cap

Cash

Net Debt

38.1%

42.5%

38.7%

34.9%

35.3%

34.8%

35.0%

Debt, Net Debt, and Debt-to-Capital %

35.4%

[[Alcoa logo]

16

On track to meet our 2014 targets

On track to meet our 2014 targets

[[Alcoa logo]

Attain 30%-35% Debt-to-Capital

Build Value-Add with Growth

Capital of $500M

Drive Productivity Gains of $850M

Invest in Saudi JV $125M

Overarching 2014 Financial Target

Taking the right actions

Manage Sustaining Capital of  

$750M

$556M

YTD:

$206M

$261M

$64M

35.4%

2014 annual financial targets and year-to-date results

[Alcoa logo]

17

Market fundamentals remain positive

See appendix for full scale charts

Klaus Kleinfeld

Chairman and Chief Executive Officer

July 8, 2014

[Alcoa logo]

Aerospace and Automotive markets remain strong; forecast unchanged

19

Source:  Alcoa analysis

1) International Air Transport Association 2014 Expectations

[[Alcoa logo]

Global HDT market steady, stronger N.A.; Packaging +2% to 3% globally

20

Source:  Alcoa analysis

HDT = Heavy duty truck and trailer

[[Alcoa logo]

Solid commercial B&C growth; Global airfoil market down YoY

21

Source:  Alcoa analysis

B&C  = Building and construction

[[Alcoa logo]

End Market

Growth

Global and Regional Commentary

Industrial

Gas Turbines

Building and

Construction

-8% to -12%

Global airfoil

market decline

•

•

•

N.A.: Natural gas

prices increased

driven by

harsh winter;

coal

gains

share

•

Europe: Gas-fired power

squeezed by

low

-

priced coal

and

subsidized renewables

NA

3-4%

EU

-2 -

-

3%

China

7-9%

Positive Early Indicators:

•

•

•

•

Growth as fundamentals stabilize

4% to 6%

Global sales

growth

Alcoa End Markets: Current Assessment of 2014 vs. 2013

Non-Residential

Contracts

Awarded:

+11%

in

May

(12-month

rolling

average)

Architectural

Billing

Index:

Positive

at

52.6

in

May,

up

from

49.6

in

April

Spares

demand:

Negative

Impact

from

shift

in

energy

mix/usage

in

key

regions

•

Case-Shiller

Home

Price

Index:

+10%

in

1Q,

growth;

~

+10%

for

5

consecutive

qtrs.

Orders:

Globally

flat

to

2012

and

down

significantly

from

2011

levels

Decline

as

weakness

continues

,

outlook

varies

across

markets

Executing our Strategy -

Alcoa’s Transformation Continues

22

Invented

Aluminum

Process

Aluminum

Applications &

Globalization

Multi-Material

Solutions

Lightweight Multi-Material

Innovation Powerhouse

Highly Competitive  

Commodity Business

[[Alcoa logo]

Lightweight Solutions: Fuel Efficiency + High Performance

1)  Versus conventional aluminum   2) Based on conversion from Standard Steel to Wide-Base Aluminum

3)  EDAG April 2013           AIV = Aluminum intensive vehicle

23

[[Alcoa logo]

Alcoa’s innovative lightweighting solutions

Ultra ONE™: World’s Lightest

Wheel

at

40

lbs

AIVs:

Better

Fuel Economy

,

Superior

Performance

Al-Li: $100M

Already

contracted

in

2017

Alcoa

Wheels:  

$1B

Revenue

in 2016

Auto Sheet:

$1.3B

Revenue

in

2018

Al-Li:

Better Efficiency,

Lower Maintenance

Up to 10% lower weight vs. composite for

single aisle fuselage applications

Lower density¹

(5-7%),

Higher

stiffness¹

(7%);

contributes

to

20%

better

fuel

efficiency

Better

corrosion

47%

lighter

than

steel;

helps

save

up

to

1,400

pounds

per

rig²

3%

more

payload;

5%

lower

fuel

cost

Replacing

18

Steel

wheels

offsets

annual

carbon

footprint

of

average

family

of

four

Will

enable

OEMs

to

meet

54.5

MPG

target

by

2025

Can

reduce

weight

of

a

midsize

sedan

by

28%

and

improve

fuel

efficiency

by

18%³

2015

F-150

up

to

700

lbs

lighter;

accelerates,

brakes,

tows

and

resists

corrosion

like

never

before

resistance¹;

2Xlonger

inspection

intervals,

contributes

to

30%

lower

costs

24

Expertise provides solutions in a Multi-Material Environment

1)

The graphics represent a sample metallic and composite wing ; not attributed to a specific aircraft platform

2)

Spars on composite wings are primarily CFRP (Carbon Fiber Reinforced Polymer), with some Al and Ti applications

Note:  Revenue per platform excludes ~$700k 2013 Firth Rixson revenue on B787

[Alcoa logo]

Alcoa innovations

Advanced Coatings: High Temp Protection

Dura-Bright ®

EVO™: Low Maintenance

Reynobond

®

: Unique Building Panels

Alcoa 951:  Breakthrough Durable Bonding

Reynobond®

Composite Material

Coil coated outer sheet

Coil coated inner sheet

Polyethylene core

+$1.8B value-add

organic

revenue

1

in 2016

Key

enabler

for

AIVs;

+1

mmt

of

Al

by

2025

Chemically

bonds

aluminum

to

adhesive

Bond

9x

More

Durable

than

competition

Allows

20-25%

fewer

rivets

Licensed

to

suppliers

Alcoa’s Innovation Expertise Shines in our product offerings

25

1)

$900M each from Engineered Products and Solutions and Global Rolled Products innovation and share gains

10x

Corrosion

Resistance

No

Mechanical

or

Chemical

Cleaning

Looks

New

Longer;

6x

Brighter

Increased environmental sustainability

Protects

Airfoils

from

Effects

of

High

Temperature

environments

Coating

Life

3.0x

to

3.5x

with

Less

high-cost

Platinum

Polyethylene

core

between

sheets

of

Al,

Zn,

Cu

or

Stainless

steel

Multiple

design

options

Up

to

50%

lighter,

20%

less

costly

than

solid

metal

Easier

installation

and

fabrication

26

Capturing Growth in Advanced Jet Engine Components via Investments

APP = Alcoa Power and Propulsion

Firth Rixson Acquisition: Strengthening Alcoa’s Value-Add Suite

27

[[Alcoa logo]

Firth Rixson

portfolio overview

Largest

seamless

Rings

(Ni-based

alloys,

TI)

200”

in

diameter

Full Range

of forged closed

-die aero

Engine Disks

(12”

to 53”

diameter)

Doubles Alcoa’s Engine Content

on key programs

Multi-Material

mix; 60%

Ni

, 25%

Ti

, 15%

Steel

and

Al

Critical

rotating

Disks

forged from

Metal Powder

Integrated Nickel Supply

of cast stick and billet

Specialized Isothermal

process;

State-of-the-Art

Equipment

, Automation

, Controls

Disks enable

Higher

Operating

Temperatures

(+70°F over legacy engines)

40% Improvement

in

Combustion Efficiency

Strong Aerospace Offering

Array of Material Composition

Leading Edge Technology

$1.6B

Revenue

$350M

EBITDA

in 2016

Remaining Cost Focused; Improving a Strong Alumina Position

1)  All figures are pretax and pre-minority interest.  2009/2010 represent net productivity; 2011-2014 represent gross productivity

2)  Alcoa Minerals of Jamaica bauxite mine and alumina refinery

28

[[Alcoa logo]

Cost curve reduction levers and global alumina cost curve

Capturing Cost Improvements

1

Optimizing Refining Capacity

Pulling Additional Levers to Lower Cost

$113M

$246M

$286M

$298M

$735M

$1,678M

1H2014

2013

Total

2012

2011

2009/2010

1

2

3

Targeting 21

st

Percentile by 2016

500

450

400

350

300

250

200

150

100

50

0

100

90

80

70

60

50

40

30

20

10

0

2013:

27

th

Percentile

2010:

30

th

Percentile

2016:

21

st

Percentile

$/MT

Production (MMT)

ALUMINA

Source: CRU Cost Model, Alcoa Analysis

-9% points

by 2016

Record

1H

production

by

Low

Cost

Australian

System

1.7

mmt

currently

Curtailed

LOI

to

pursue

Sale

of

Jamalco

2

interest

Continued  Productivity Gains

San

Ciprian

Natural

Gas

solution;

complete

in

4Q14;

~$20

per

metric

ton

cost

improvement

First

Saudi

Arabia

Bauxite

in

2Q14;

Refinery

online

4Q14

Building a Highly Competitive Smelting Business

1)

All

figures

are

pretax

and

pre-minority

interest.

2009/2010

represent

net

productivity;

2011-2014

represent

gross

productivity

2)

Pt.

Henry

closure

of

190

kmt

will

occur

in

3Q

2014

Operating

capacity

=

Alcoa

total

base

capacity

less

idled

capacity

29

[[Alcoa logo]

Cost curve reduction levers and global aluminum cost curve

$137M

$235M

$345M

$340M

$865M

$1,922M

2009/2010

Total

1H2014

2013

2012

2011

Capturing Cost Improvements

1

Restructuring the Portfolio

Pulling Additional Levers to Lower Cost

Productivity

Gains

continue

Secured Long Term Energy Agreement in Quebec

Completed Saudi Arabia Smelter Start Up

-28%

2,964

-253

2013

-

418

2012

-198

2010

2009

+234

2008

2011

1H2014

-239

+61

-344

2007

4,121

After executing

announcements

1

2

3

2

Targeting 38

th

Percentile by 2016

30

15

10

5

0

3,000

2,500

2,000

1,500

1,000

500

0

55

50

45

40

35

25

20

2013:

43rd

Percentile

2016:

38

th

Percentile

2010:

51st

Percentile

Production (MMT)

$/MT

ALUMINUM

Source:CRU

Cost

Model,

AlcoaAnalysis

-13% points

by 2016

Total Smelting Operating Capacity (kmt)

Transforming Alcoa –

Creating Compelling Sustainable Value

30

[[Alcoa logo]

Value-Add and Upstream transformation strategy

[Alcoa logo]

Kelly Pasterick

Vice President, Investor Relations

Alcoa

390 Park Avenue

New York, NY 10022-4608

Telephone:  (212) 836-2674

www.alcoa.com

Additional Information

32

[[Alcoa logo]

Annual Sensitivity Summary

33

Currency Annual Net Income Sensitivity

+/-

$100/MT = +/-

$240 million

LME Aluminum Annual Net Income Sensitivity

Australian $

+/-

$11 million

per 0.01 change in USD / AUD

Brazilian

$

+/-

$  3 million

per 0.01 change in BRL / USD

Euro €

+/-

$  2 million

per 0.01 change in USD / EUR

Canadian $

+/-

$  5 million

per 0.01 change in CAD / USD

Norwegian Kroner

+/-

$  5 million

per 0.10 change in NOK / USD

[[Alcoa logo]

Revenue Change by Market

34

1%

5%

9%

11%

7%

15%

14%

5%

(10%)

17%

(1%)

4%

4%

17%

(5%)

(9%)

(5%)

27%

(7%)

2%

17%

4%

7%

7%

8%

2%

13%

1%

13%

28%

Aerospace

Automotive

B&C

Comm. Transport

Industrial Products

IGT

Packaging

Distribution/Other

Alumina

Primary Metals

2Q’14 Third-Party Revenue

Sequential

Change

Year-Over-Year

Change

[[Alcoa logo]

Special Items

See appendix for Adjusted Income reconciliation.

35

Pre-tax, Before NCI

After-tax, After NCI

$ Millions, except per-share amounts

1Q14

2Q14

1Q14

2Q14

Income Statement

Classification

Segment

Net

Income (Loss)

($274)

$207

($178)

$138

Net Income (Loss) Per Diluted Share

($0.25)

$0.17

($0.16)

$0.12

Restructuring-Related

($499)

($110)

($296)

($54)

Restructuring/COGS/

Other Expenses, Net

Corporate /

Primary Metals/

GRP

Tax Items

$0

$0

$22

($2)

Income Taxes

Corporate

Master

U.S. Labor Agreement

$0

($17)

$0

($11)

COGS

Corporate / All

Firth Rixson

Acquisition Costs

$0

($13)

$0

($11)

SG&A

Corporate

Saudi Arabia Smelter Potline

($13)

($6)

($13)

($6)

COGS/

Other Expenses, Net

Primary Metals

Mark-to-Market Energy Contracts

$0

$11

$0

$6

Other Expenses, Net

Corporate

Surgold

Gain

$28

$0

$11

$0

Other Expenses, Net

Alumina

Special Items

($484)

($135)

($276)

($78)

Net Income excl Special Items

$210

$342

$98

$216

Net

Income

per Diluted

Share excl

Special Items

$0.19

$0.29

$0.09

$0.18

[[Alcoa logo]

Composition of Regional Premium Pricing Convention

36

2014E Shipments

Regional Premiums

Estimated Pricing Convention

55%

Midwest

–

Platts

15-day lag

30%

Rotterdam DDP

–

Metal Bulletin

45-day lag

10%

CIF Japan

–

Platts

Month prior to Quarter start

5%

Negotiated

Annual

[[Alcoa logo]

Alcoa smelting closures and curtailments when announced actions are complete

(1)

Announced, but not executed

37

Location

Year

kmt

Baie Comeau

2008

53

Eastalco

2010

195

Badin

2010

60

Warrick

2010

40

Tennessee

2011

215

Rockdale

2011

76

Baie Comeau

2013

105

Fusina

2013

44

Massena East

2013

41

Massena East

2014

84

Point Henry

(1)

2014

190

Total

1,103

Alcoa smelting capacity closures, since Dec 2007

Location

kmt

Rockdale

191

Sao Luis

182

Portovesme

150

Pocos

96

Intalco

49

Wenatchee

41

Aviles

35

Portland

30

La Coruna

28

Total

803

Alcoa smelting capacity curtailments

[[Alcoa logo]

All-in prices down despite increase in regional premiums

38

[[Alcoa logo]

Composition of Upstream Production Costs

1

Natural gas information corresponds to Point Comfort, as Australia is priced on a rolling 16 quarter average

39

[[Alcoa logo]

Fuel Oil

13%

Natural gas

11%

Caustic

10%

Bauxite

24%

Conversion

42%

Input Cost

Inventory flow

Pricing

convention

Annual ATOI

Sensitivity

Fuel oil

1 –

2

months

Prior month

$3m per $1/bbl

Natural gas

N/A

Spot

1

$16m per $1/GJ

1

Caustic soda

3 -

6 months

Spot & semi-

annual

$8m per

$10/DMT

Refining Cost Structure

Alumina

33%

Carbon

13%

Power

24%

Materials

7%

Conversion

23%

Smelting Cost Structure

Input Cost

Inventory flow

Pricing convention

Annual ATOI

Sensitivity

Coke

1 -

2 months

Spot,

quarterly

&

semi-annual

$8m per

$10/MT

Pitch

1 -

2 months

Spot,

quarterly

&

semi-annual

$2m per

$10/MT

Reaffirm 7% global demand growth

40

Source: Alcoa estimates, Brook Hunt, CRU, Harbor 

[[Alcoa logo]

25.4

6.6

6.4

4.2

1.0

2.1

2.0

2.0

1.1

3%

10%

4%

2%

5%

5%

8%

8%

4%

5%

2014E

52.8 mmt

*

Other includes Africa, E.Europe

, Latin America ex Brazil, and Oceania

2014 Primary Aluminum Consumption (mmt), Annualized Growth (%) 

China

Europe

North America

North Asia

India

SE Asia

MENA

Russia

Brazil

Other *

2.0

2014 demand +7%

World ex China +4%

Source: Alcoa analysis, Brook Hunt, CRU, CNIA, NBS, Chinese Customs

Metal deficit rising, alumina surplus shrinking

41

[[Alcoa logo]

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

Inventories declined 5 days in 2Q

42

[[Alcoa logo]

Premiums move to record highs

Source:

Monthly

average

of

daily

prices

-

Platts

Metals

Week

43

[[Alcoa logo]

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

44

(in millions)

1Q13

2Q13

3Q13

4Q13

2013

1Q14

2Q14

Total segment ATOI

$351

$304

$338

$224

$1,217

$325

$418

Unallocated amounts (net of tax):

Impact of LIFO

(2)

5

9

40

52

(7)

(8)

Interest expense

(75)

(76)

(70)

(73)

(294)

(78)

(69)

Noncontrolling interests

(21)

29

(20)

(29)

(41)

19

9

Corporate expense

(67)

(71)

(74)

(72)

(284)

(67)

(70)

Impairment of goodwill

–

–

–

(1,731)

(1,731)

-

-

Restructuring and other charges

(5)

(211)

(108)

(283)

(607)

(321)

(77)

Other

(32)

(99)

(51)

(415)

(597)

(49)

(65)

Consolidated net income (loss) attributable to Alcoa

$149

$(119)

$24

$(2,339)

$(2,285)

$(178)

$138

[[Alcoa logo]

Reconciliation of Adjusted Income

45

[[Alcoa logo]

(in millions, except per

-

share amounts)

(Loss) Income

Diluted EPS

Quarter ended

Quarter ended

June 30,

March 31,

June 30,

June 30,

March 31,

June 30,

2013

2014

2014

2013

2014

2014

Net (loss) income

attributable to Alcoa

$(119)

$(178)

$138

$(0.11)

$(0.16)

$0.12

Restructuring and other

charges

170

274

54

Discrete tax items*

11

(6)

(2)

Other special items**

14

8

26

Net income attributable

to Alcoa –

as adjusted

$76

$98

$216

0.07

0.09

0.18

* Discrete tax items include the following:

·

for the quarter ended March 31, 2014, a net benefit for a number of small items; and

** Other special items include the following:

·

for the quarter ended June 30, 2013, a net unfavorable change in certain mark-to-market energy derivative contracts ($9) and the write off of inventory related to the permanent closure of two potlines at a smelter in Canada

and a smelter in Italy ($5).

·

for

the

quarter

ended

June

30,

2013,

a

charge

related

to

prior

year

taxes

in

Spain

and

Australia

($10),

a

benefit

for

a

taxrate

change

in

Jamaica

($2),

and

a

net

charge

for

other

miscellaneous

items

($3).

·

for the quarter ended June 30, 2014, a favorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit is recognized ($20), an unfavorable tax

impact resulting from the difference between Alcoa’s consolidated estimated annual effective tax rate and the statutory rates applicable to restructuring and other charges ($24), costs associated with (i) a planned

acquisition of an aerospace business ($11) and (ii) the successful execution of a new labor agreement with the United Steelworkers ($11), a netfavorable change in certain mark-to-market energy derivative contracts

($6), and an unfavorable impact related to the restart of one potline at the joint venture in Saudi Arabia that was previously shut down due to a period of pot instability ($6);

·

for the quarter ended March 31, 2014, a favorable tax impact resulting from the difference between Alcoa’s consolidated estimated annual effective tax rate and the statutory rates applied to restructuring and other charges

($72) (impact is expected to reverse by the end of 2014), an unfavorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($56)

(impact is expected to reverse by the end of 2014), the write-off of inventory related to the permanent closure of a smelter and two rolling mills in Australia and a smelter in the United States ($20), an unfavorable impact

related to the restart of one potline at the joint venture in Saudi Arabia that was previously shut down due to a period of pot instability ($13), a gain on the sale of a mining interest in Suriname ($11), and a loss on the

writedownof an asset to fair value ($2); and

Net

income

attributable

to

Alcoa

–as

adjusted

is

a

non-GAAP

financial

measure.

Management

believes

that

this

measure

is

meaningful

to

investors

because

management

reviews

the

operating

results

of

Alcoa

excluding

the

impacts

of

restructuring

and

other

charges,

discrete

tax

items,

and

other

special

items

(collectively,

“special

items”).

There

can

be

no

assurances

that

additional

special

items

will

not

occur

in

future

periods.

To

compensate

for

this

limitation,

management

believes

that

it

is

appropriate

to

consider

both

Net

(loss)

income

attributable

to

Alcoa

determined

under

GAAP

as

well

as

Net

income

attributable

to

Alcoa

–as

adjusted.

for the quarter ended June 30, 2014, a net benefit for a number of small items;

Reconciliation of Alcoa Adjusted EBITDA

46

[[Alcoa logo]

($ in millions)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2Q13

1Q14

2Q14

Net income (loss) attributable to Alcoa

$938

$1,310

$1,233

$2,248

$2,564

$(74)

$(1,151)

$254

$611

$191

$(2,285)

$(119)

$(178)

$138

Add:

Net income (loss) attributable to noncontrolling

interests

212

233

259

436

365

221

61

138

194

(29)

41

(29)

(19)

(9)

Cumulative effect of accounting changes

47

–

2

–

–

–

–

–

–

–

–

–

–

–

Loss (income) from discontinued operations

–

27

50

(22)

250

303

166

8

3

–

–

–

–

–

Provision (benefit) for income taxes

367

546

464

853

1,623

342

(574)

148

255

162

428

21

(77)

78

Other (income) expenses, net

(278)

(266)

(478)

(236)

(1,920)

(59)

(161)

5

(87)

(341)

(25)

19

25

5

Interest expense

314

271

339

384

401

407

470

494

524

490

453

118

120

105

Restructuring and other charges

(28)

(29)

266

507

268

939

237

207

281

172

782

244

461

110

Impairment of goodwill

–

–

–

–

–

–

–

–

–

–

1,731

–

–

–

Provision for depreciation, depletion, and

amortization

1,110

1,142

1,227

1,252

1,244

1,234

1,311

1,450

1,479

1,460

1,421

362

340

349

Adjusted EBITDA

$2,682

$3,234

$3,362

$5,422

$4,795

$3,313

$359

$2,704

$3,260

$2,105

$2,546

$616

$672

$776

Sales

$18,879

$21,370

$24,149

$28,950

$29,280

$26,901

$18,439

$21,013

$24,951

$23,700

$23,032

$5,849

$5,454

$5,836

Adjusted EBITDA Margin

14.2%

15.1%

13.9%

18.7%

16.4%

12.3%

1.9%

12.9%

13.1%

8.9%

11.1%

10.5%

12.3%

13.3%

Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net

margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision

for depreciation, depletion, and amortization. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted

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

not be comparable to similarly titled measures of other companies.

Reconciliation of Alumina Adjusted EBITDA

47

[[Alcoa logo]

($ in millions, except per metric ton amounts)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2Q13

1Q14

2Q14

After-tax operating income (ATOI)

$415

$632

$682

$1,050

$956

$727

$112

$301

$607

$90

$259

$64

$92

$38

Add:

Depreciation, depletion, and amortization

147

153

172

192

267

268

292

406

444

455

426

115

97

100

Equity (income) loss

–

(1)

–

2

(1)

(7)

(8)

(10)

(25)

(5)

4

1

5

7

Income taxes

161

240

246

428

340

277

(22)

60

179

(27)

66

14

40

12

Other

(55)

(46)

(8)

(6)

2

(26)

(92)

(5)

(44)

(8)

(6)

–

(28)

–

Adjusted EBITDA

$668

$978

$1,092

$1,666

$1,564

$1,239

$282

$752

$1,161

$505

$749

$194

$206

$157

Production (thousand metric tons) (

kmt

)

13,841

14,343

14,598

15,128

15,084

15,256

14,265

15,922

16,486

16,342

16,618

4,161

4,172

4,077

Adjusted EBITDA / Production ($ per metric ton)

$48

$68

$75

$110

$104

$81

$20

$47

$70

$31

$45

$47

$49

$39

Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net

margin

is

equivalent

to

Sales

minus

the

following

items:

Cost

of

goods

sold;

Selling,

general

administrative,

and

other

expenses;

Research

and

development

expenses;

and

Provision

for

depreciation,

depletion,

and

amortization.

The

Other

line

in

the

table

above

includes

gains/losses

on

asset

sales

and

other

non-operating

items.

Adjusted

EBITDA

is

a

non-GAAP

financial

measure.

Management

believes

that

this

measure

is

meaningful

to

investors

because

Adjusted

EBITDA

provides

additional

information

with

respect

to

Alcoa’s

operating

performance

and

the

Company’s

ability

to

meet

its

financial

obligations.

The

Adjusted

EBITDA

presented

may

not

be

comparable

to

similarly

titled

measures

of

other

companies.

Reconciliation of Primary Metals Adjusted EBITDA

48

[[Alcoa logo]

($ in millions, except per metric ton amounts)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2Q13

1Q14

2Q14

After-tax operating income (ATOI)

$657

$808

$822

$1,760

$1,445

$931

$(612)

$488

$481

$309

$(20)

$(32)

$(15)

$97

Add:

Depreciation, depletion, and amortization

310

326

368

395

410

503

560

571

556

532

526

132

124

129

Equity (income) loss

(55)

(58)

12

(82)

(57)

(2)

26

(1)

7

27

51

7

28

17

Income taxes

256

314

307

726

542

172

(365)

96

92

106

(74)

(25)

(11)

30

Other

12

20

(96)

(13)

(27)

(32)

(176)

(7)

2

(422)

(8)

(3)

–

(5)

Adjusted EBITDA

$1,180

$1,410

$1,413

$2,786

$2,313

$1,572

$(567)

$1,147

$1,138

$552

$475

$79

$126

$268

Production (thousand metric tons) (

kmt

)

3,508

3,376

3,554

3,552

3,693

4,007

3,564

3,586

3,775

3,742

3,550

896

839

795

Adjusted EBITDA / Production ($ per metric ton)

$336

$418

$398

$784

$626

$392

$(159)

$320

$301

$148

$134

$88

$150

$337

Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net

margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for

depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other non-operating items. Adjusted EBITDA is a non-GAAP financial

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

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

Reconciliation of Global Rolled Products Adjusted EBITDA

49

[[Alcoa logo]

($ in millions, except per metric ton amounts)

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2Q13

1Q14

2Q14

After-tax operating income (ATOI)

$232

$223

$232

$290

$300

$317

$151

$(41)

$(106)

$241

$260

$346

$252

$79

$59

$79

Add:

Depreciation, depletion, and amortization

167

184

190

200

220

223

227

216

227

238

237

229

226

55

58

58

Equity loss

2

4

1

1

–

2

–

–

–

–

3

6

13

2

5

6

Income taxes

112

90

77

97

135

113

77

14

12

103

98

159

108

32

34

23

Other

(5)

(8)

(5)

1

1

20

1

6

(2)

1

1

(2)

–

–

(2)

1

Adjusted EBITDA

$508

$493

$495

$589

$656

$675

$456

$195

$131

$583

$599

$738

$599

$168

$154

$167

Total shipments (thousand metric tons) (kmt

)

1,863

1,814

1,893

2,136

2,250

2,376

2,482

2,361

1,888

1,755

1,866

1,943

1,989

521

489

533

Adjusted EBITDA / Total shipments ($ per metric ton

)

$273

$272

$261

$276

$292

$284

$184

$83

$69

$332

$321

$380

$301

$322

$315

$313

Alcoa’s

definition

of

Adjusted

EBITDA

(Earnings

before

interest,

taxes,

depreciation,

and

amortization)

is

net

margin

plus

an

add-back

for

depreciation,

depletion,

and

amortization.

Net

margin

is

equivalent

to

Sales

minus

the

following

items:

Cost

of

goods

sold;

Selling,

general

administrative,

and

other

expenses;

Research

and

development

expenses;

and

Provision

for

depreciation,

depletion,

and

amortization.

The

Other

line

in

the

table

above

includes

gains/losses

on

asset

sales

and

other

non-operating

items.

Adjusted

EBITDA

is

a

non-GAAP

financial

measure.

Management

believes

that

this

measure

is

meaningful

to

investors

because

Adjusted

EBITDA

provides

additional

information

with

respect

to

Alcoa’s

operating

performance

and

the

Company’s

ability

to

meet

its

financial

obligations.

The

Adjusted

EBITDA

presented

may

not

be

comparable

to

similarly

titled

measures

of

other

companies.

Reconciliation of Engineered Products and Solutions Adjusted EBITDA

50

[[Alcoa logo]

($ in millions)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2Q13

1Q14

2Q14

After-tax operating income (ATOI)

$126

$161

$276

$382

$423

$522

$311

$419

$537

$612

$726

$193

$189

$204

Add:

Depreciation, depletion, and

amortization

166

168

160

152

163

165

177

154

158

158

159

39

40

41

Equity loss (income)

–

–

–

6

–

–

(2)

(2)

(1)

–

–

–

–

–

Income taxes

57

70

120

164

184

215

138

198

258

297

348

94

91

102

Other

11

106

(11)

(2)

(7)

2

1

–

(1)

(9)

(2)

–

–

–

Adjusted EBITDA

$360

$505

$545

$702

$763

$904

$625

$769

$951

$1,058

$1,231

$326

$320

$347

Third

-party sales

$3,905

$4,283

$4,773

$5,428

$5,834

$6,199

$4,689

$4,584

$5,345

$5,525

$5,733

$1,468

$1,443

$1,502

Adjusted EBITDA Margin

9.2%

11.8%

11.4%

12.9%

13.1%

14.6%

13.3%

16.8%

17.8%

19.1%

21.5%

22.2%

22.2%

23.1%

Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. 

Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and 

Provision for depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other non-operating items. Adjusted EBITDA is a 

non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s 

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

Reconciliation of Free Cash Flow

51

[[Alcoa logo]

(in millions)

Quarter ended

30-Sep-11

31-Dec-11

31-Mar-12

30-Jun-12

30-Sep-12

31-Dec-12

31-Mar-13

30-Jun-13

30-Sep-13

31-Dec-13

31-Mar-14

30-Jun-14

Cash from

operations

$489

$1,142

$(236)

$537

$263

$933

$(70)

$514

$214

$920

$(551)

$518

Capital expenditures

(325)

(486)

(270)

(291)

(302)

(398)

(235)

(286)

(250)

(422)

(209)

(258)

Free cash flow

$164

$656

$(506)

$246

$(39)

$535

$(305)

$228

$(36)

$498

$(760)

$260

Free Cash Flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations

after taking into consideration capital expenditures due to the fact that these expenditures are considered necessary to maintain and expand Alcoa’s asset base and are expected to generate

future cash flows from operations. It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary

expenditures, such as mandatory debt service requirements, are not deducted from the measure.

Reconciliation of Free Cash Flow, continued

52

[[Alcoa logo]

(in millions)

Quarter ended

31-Dec-08

31-Mar-09

30-Jun-09

30-Sep-09

31-Dec-09

31-Mar-10

30-Jun-10

30-Sep-10

31-Dec-10

31-Mar-11

30-Jun-11

Cash from

operations

$608

$(271)

$328

$184

$1,124

$199

$300

$392

$1,370

$(236)

$798

Capital expenditures

(1,017)

(471)

(418)

(370)

(363)

(221)

(213)

(216)

(365)

(204)

(272)

Free cash flow

$(409)

$(742)

$(90)

$(186)

$761

$(22)

$87

$176

$1,005

$(440)

$526

Free

Cash

Flow

is

a

non-GAAP

financial

measure.

Management

believes

that

this

measure

is

meaningful

to

investors

because

management

reviews

cash

flows

generated

from

operations after

taking into consideration capital expenditures due to the fact that these expenditures are considered necessary to maintain and expand Alcoa’s asset base and are expected to generate future

cash flows from operations. It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary

expenditures, such as mandatory debt service requirements, are not deducted from the measure.

Days Working Capital

53

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

*The deferred purchase price receivable relates to an arrangement to sell certain customer receivables to several financial institutions on a recurring basis.  Alcoa is adding back this

receivable for the purposes of the Days Working Capital calculation.

** Beginning January 1, 2014, management changed the manner in which Working Capital is measured by moving from an end of quarter Working Capital to an average quarter Working

Capital.  This change will now reflect the capital tied up during a given quarter.  As such, the components of Working Capital for each period presented represent the average of the ending

balances in each of the three months during the respective quarter.

($ in millions)

Quarter ended

31-Mar-12

30-Jun-12

30-Sep-12

31-Dec-12

31-Mar-13

30-Jun-13

30-Sep-13

31-Dec-13

31-Mar-14

30-Jun-14

Receivables from customers, less allowances  

$1,709

$1,650

$1,600

$1,573

$1,704

$1,483

$1,427

$1,383

$1,391

$1,401

Add: Deferred purchase price receivable*

85

144

104

53

50

223

347

339

238

371

Receivables from customers, less allowances,

as adjusted

1,794

1,794

1,704

1,626

1,754

1,706

1,774

1,722

1,629

1,772

Add: Inventories

3,079

3,097

3,051

2,894

2,961

2,949

2,932

2,783

2,974

3,201

Less: Accounts payable, trade

2,660

2,594

2,496

2,587

2,656

2,820

2,746

2,816

2,813

2,880

Working Capital**

$2,213

$2,297

$2,259

$1,933

$2,059

$1,835

$1,960

$1,689

$1,790

$2,093

Sales

$6,006

$5,963

$5,833

$5,898

$5,833

$5,849

$5,765

$5,585

$5,454

$5,836

Days Working Capital

34

35

36

30

32

29

31

28

30

33

[[Alcoa logo]

Reconciliation of Net Debt

54

Net debt

is a non-GAAP financial measure.  Management believes that this measure is meaningful to investors because management assesses Alcoa’s

leverage position after factoring in available cash that could be used to repay outstanding debt.

(in millions)

December 31,

March 31,

June 30,

2008

2009

2010

2011

2012

2013

2014

2014

Short-term borrowings

$478

$176

$92

$62

$53

$57

$53

$133

Commercial paper

1,535

–

–

224

–

–

–

223

Long-term debt due within one year

56

669

231

445

465

655

85

87

Long-term debt, less amount due within one year

8,509

8,974

8,842

8,640

8,311

7,607

7,609

7,612

Total debt

10,578

9,819

9,165

9,371

8,829

8,319

7,747

8,055

Less: Cash and cash equivalents

762

1,481

1,543

1,939

1,861

1,437

665

1,183

Net debt

$9,816

$8,338

$7,622

$7,432

$6,968

$6,882

$7,082

$6,872

[[Alcoa logo]

Reconciliation of Net Debt-to-Capital

55

($ in millions)

March 31, 2014

June 30, 2014

Debt-to-Capital

Cash and Cash

Equivalents

Net Debt-to-Capital

Debt-to-Capital

Cash and Cash

Equivalents

Net Debt-to-Capital

Total Debt

Short-term borrowings

$53

$133

Commercial paper

–

223

Long-term debt due within

one year

85

87

Long-term debt, less

amount due within one

year

7,609

7,612

Numerator

$7,747

$665

$7,082

$8,055

$1,183

$6,872

Total Capital

Total debt

$7,747

$8,055

Total equity

14,374

14,706

Denominator

$22,121

$665

$21,456

$22,761

$1,183

$21,578

Ratio

35.0%

33.0%

35.4%

31.8%

Net debt-to-capital is a non-GAAP financial measure.  Management believes that this measure is meaningful to investors because management assesses

Alcoa’s leverage position after factoring in available cash that could be used to repay outstanding debt.

[[Alcoa logo]