[Alcoa logo]

3

rd

Quarter Earnings Conference

1

October 8, 2014

Exhibit 99.2

Cautionary Statement

2

[Alcoa logo]

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)

the

possibility

that

certain

assumptions

with

respect

to

Firth

Rixson

or

the

proposed

transaction

could

prove

to

be

inaccurate;

(o)

the

loss

of

customers,

suppliers

and

other

business

relationships

of

Alcoa

or

Firth

Rixson

as

a

result

of

the

proposed

acquisition;

and

(p)

the

other

risk

factors

summarized

in

Alcoa’s

Form

10-K

for

the

year

ended

December

31,

2013,

Forms

10-Q

for

the

quarters

ended

March

31,

2014

and

June

30,

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

as

required

by

applicable

law.

Market

projections

are

subject

to

the

risks

discussed

above and other risks in the market.

This

presentation

does

not

constitute

an

offer

to

sell

or

the

solicitation

of

an

offer

to

buy

any

securities.

The

common

shares

of

Alcoa

to

be

issued

in

the

Firth

Rixson

acquisition

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

(GAAP).

Certain

of

these

data

are

considered

“non-GAAP

financial

measures”

under

SEC

rules.

These

non-GAAP

financial

measures

supplement

our

GAAP

disclosures

and

should

not

be

considered

an

alternative

to

the

GAAP

measure.

Reconciliations

to

the

most

directly

comparable

GAAP

financial

measures

and

management’s

rationale

for

the

use

of

the

non-GAAP

financial

measures

can

be

found

in

the

Appendix

to

this

presentation.

Any

reference

to

historical

EBITDA

means

adjusted

EBITDA,

for

which

we

have

provided

calculations

and

reconciliations

in

the

Appendix.

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.

Delivering Strong

Operational

Performance

Strong Earnings Increase:

–

Downstream:

Highest

Ever

quarterly

ATOI,

EBITDA

%;

$209

million and 23.5%

–

Midstream:  ATOI up 45% year-over-year

–

Upstream:

Improved

Performance

–

12

Consecutive

Quarters;

$612

Primary

Metals

segment

EBITDA

per

metric

ton

Productivity:

$862

million

Across

All

Segments

YoY

3

3Q 2014 Overview

Transformation Delivering Results; All Segments Improve Sequentially

Accelerating

Portfolio

Transformation

Completed

$2.5

billion

Firth

Rixson

acquisition

financing;

expect

to

close

by

year-end

Signed

multi-year

contracts

with

Boeing

and

Pratt

&

Whitney;

>$2

billion

combined,

demonstrating

multi-material

aerospace

leadership

Opened

World’s

largest

Al-Li

facility

in

Indiana;

$100

million

revenues

already

contracted

for

2017

Saudi

Arabia

smelter

fully

operational,

generated

profits

in

3Q14

Announced

permanent

closure

of

150

kmt

Portovesme

smelter

Safely

Executed

Australia

smelter

Closure

of

190

kmt

capacity

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

and reconciliations in the appendix

[Alcoa logo]

[Alcoa logo]

William Oplinger

Executive Vice President and Chief Financial Officer

4

October 8, 2014

[Alcoa logo]

Income Statement Summary

$ Millions, except aluminum prices and per-share amounts

3Q13

2Q14

3Q14

Prior Year

Change

Sequential

Change

Realized Aluminum Price ($/MT)

$2,180

$2,291

$2,538

$358

$247

Revenue

$5,765

$5,836

$6,239

$474

$403

Cost of Goods Sold

$4,798

$4,765

$4,904

$106

$139

COGS % Revenue

83.2%

81.6%

78.6%

(4.6 % pts.)

(3.0 % pts.)

Selling, General Administrative, Other

$248

$245

$243

($5)

($2)

SGA % Revenue

4.3%

4.2%

3.9%

(0.4 % pts.)

(0.3 % pts.)

Other (Income) Expenses, Net

($7)

$5

$23

$30

$18

Restructuring and Other Charges

$151

$110

$209

$58

$99

Effective Tax Rate

41.3%

37.7%

60.3%

19.0% pts.

22.6% pts.

EBITDA

$675

$776

$1,035

$360

$259

Net Income

$24

$138

$149

$125

$11

Net Income Per Diluted Share

$0.02

$0.12

$0.12

$0.10

$0.00

Income per Diluted Share excl Special Items

$0.11

$0.18

$0.31

$0.20

$0.13

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.

[Alcoa logo]

Special Items

$ Millions, except per-share amounts

2Q14

3Q14

Income Statement

Classification

Segment

Net Income

$138

$149

Net Income Per Diluted Share

$0.12

$0.12

Restructuring-Related

1

($54)

($202)

Restructuring and Other

Charges/COGS

Corporate / Primary

Metals

Tax Items

($2)

$0

Income Taxes

Corporate

Master U.S. Labor Agreement

($11)

$0

COGS

Corporate / All

Firth Rixson Acquisition Costs

($11)

($14)

SG&A/Interest Expense

Corporate

Saudi Arabia Smelter Potline

($6)

$0

COGS/

Other Expenses, Net

Primary Metals

Mark-to-Market Energy Contracts

$6

($14)

Other Expenses, Net

Corporate

Gain on Asset Sale

$0

$9

Other Expenses, Net

Corporate

Special Items

($78)

($221)

Net Income excl Special Items

$216

$370

Net Income per Diluted Share excl Special Items

$0.18

$0.31

1)

Total

restructuring-related

charges

in

3Q14

of

$202

million

(60

percent

non-cash,

40

percent

cash);

$167

million

of

charges

relate

to

Portovesme

closure

See

appendix

for

Adjusted

Income

reconciliation

6

[Alcoa logo]

Net Income excluding Special Items ($ Millions)

Market tailwinds and productivity drive sequential improvement

7

Market

+$133

Performance

+$36

Cost Headwinds/Other  

-$15

See appendix for Adjusted Income reconciliation

2

2

22

11

3

22

111

370

216

11

Raw

Materials

Energy

3Q 14

Productivity

Price

/ Mix

Volume

Currency

LME

2Q 14

Cost

Increases

/ Other

[Alcoa logo]

Net Income excluding Special Items ($ Millions)

Earnings more than triple year-over-year on productivity and pricing

8

Market

+$92

Performance

+$253

Cost Headwinds/Other

-$95

See appendix for Adjusted Income reconciliation

125

12

18

183

53

17

11

81

370

120

3Q 14

Cost

Increases

/ Other

Raw

Materials

Energy

Productivity

Price

/ Mix

Volume

Currency

LME

3Q 13

[Alcoa logo]

$ Millions

Revenue

up

4%

year-over-year

driven

by

strong

share

gains

across

major

markets

Best

ever

quarterly

EBITDA

margin

of

23.5%

Best

ever

quarterly

ATOI

of

$209M

Quarterly

ATOI

up

9%

year-over-year

driven

by

productivity,

strong

Aero,

Commercial

Transportation

and

Building

and

Construction

revenues

18

th

Consecutive

Quarter

of

year-over-year

ATOI

Growth

Aerospace

market

remains

strong

Continued

recovery

in

N.A.

Non-Residential

Construction;

European

weakness

continues,

outlook

varies

across

regions

Continued

strength

in

N.A.

Heavy

Duty

Truck

build

rates;

Europe

flat

Share

gains

through

innovation

and

productivity

continue

across

all

sectors

ATOI

is

expected

to

increase

8%-12%

year-over-year

3Q 13

2Q 14

3Q 14

3

rd

Party Revenue ($ Millions)

1,437

1,502

1,495

ATOI ($ Millions)

192

204

209

EBITDA Margin

22.5%

23.1%

23.5%

3

rd

Quarter Results

3

rd

Quarter Business Highlights

4

th

Quarter Outlook

3

rd

Quarter Performance Bridge

3Q14 Actual and 4Q14 Outlook –

Engineered Products and Solutions

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

and reconciliations in the appendix. 

Record quarter ATOI, EBITDA % for Engineered Products and Solutions

9

$2

$8

3Q14

$209

Cost

Decrease

Prod-

uctivity

Price / Mix

-$3

Volume

-$1

Currency

-$1

2Q14

$204

[Alcoa logo]

Rising

metal

prices

benefitted

results

Record

Auto

sheet

production

as

Davenport

expansion

ramps

up

Volume,

mix

and

cost

impacts

due

to

seasonal

summer

shutdowns

in

Europe

Continued productivity improvement

$ Millions

Expect

record

Auto

sheet

shipments

as

AIVs

are

ramping

up

Expect

continued

strength

in

Aerospace

and

N.A.

Industrial

Seasonal

packaging

decline,

continued

pricing

pressure

in

packaging

and

industrial

ATOI

up

150%

year-over-year,

excluding

impacts

from

metal/currency

3Q 13

2Q 14

3Q 14

3

rd

Party Revenue ($ Millions)

1,805

1,860

1,926

ATOI ($ Millions)

71

79

103

EBITDA/MT

312

313

409

3

rd

Quarter Business Highlights

4

th

Quarter Outlook

3

rd

Quarter Performance Bridge

3Q14 Actual and 4Q14 Outlook –

Global Rolled Products

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

and reconciliations in the appendix.   AIV = Aluminum intensive vehicle

10

GRP: metal price and cost control overcome volume, price declines

$4

$5

$0

$4

$1

$25

Labor

Negotiation

3Q14

$103

-$9

Currency

Metal

Cost

Decr./

Other

Energy

Prod-

uctivity

Price

/ Mix

-$6

Volume

2Q14

$79

3

rd

Quarter Results

[Alcoa logo]

Alumina earnings up sharply on higher production and pricing

$ Millions

3Q14 Actual and 4Q14 Outlook –

Alumina

3

rd

Quarter Results

3

rd

Quarter Business Highlights

3

rd

Quarter Performance Bridge

$6

$13

$13

$73

$62

$38

3Q14

-$1

Energy

-$14

-$66

Volume

Currency

LME

2Q14

Production

and

shipments

increased

due

to

stable

operations

across

the

system

and

Pt.

Comfort

recovery

after

2Q

interruption

Higher

LME-based

pricing

offset

by

lower

API

prices

Loss

of

carbon

tax

credits

in

Australia

drove

higher

energy

costs

Other

cost

increases

driven

by

higher

raw

material

prices

65%

of

3

rd

party

shipments

on

spot

or

API

for

2014

API

pricing

follows

30-day

lag;

LME-based

pricing

follows

60-day

lag

Saudi

JV

refinery

start

up

costs

will

begin,

-$10M

impact

All

other

performance

in

total

will

improve

by

$20M

3Q 13

2Q 14

3Q 14

Production (kmt)

4,214

4,077

4,196

3

rd

Party Shipments (kmt)

2,603

2,361

2,714

3

rd

Party Revenue ($ Millions)

846

761

886

ATOI ($ Millions)

67

38

62

11

4

th

Quarter Outlook

+$86

-$62

Market

Performance

[Alcoa logo]

Price

/ Mix

Prod-

uctivity

Cost

Inc./Other

Primary earnings more than double on improved performance, pricing

$ Millions

3Q14 Actual and 4Q14 Outlook –

Primary Metals

3

rd

Quarter Results

3

rd

Quarter Business Highlights

3

rd

Quarter Performance Bridge

$8

$30

$8

$6

$40

$2

$18

$97

3Q14

$245

Saudi JV /

labor

negotiations

Portfolio

actions

-$31

Energy

Volume

Currency

LME

$67

2Q14

Production

down

due

to

cessation

of

Pt.

Henry

production

Strong

performance

driven

by

realized

prices,

mix

and

lower

costs

Saudi

JV

smelter

delivered

profits

in

3Q14

Portfolio

actions

include

Portovesme

and

Pt.

Henry

final

closure

impacts

Pricing

follows

a

15-day

lag

to

LME

Production

flat

from

3Q

Energy

costs

escalating

$35M,

primarily

in

Europe

All

other

performance

in

total

will

offset

energy

cost

increases

3Q 13

2Q 14

3Q 14

Production (kmt)

897

795

760

3

rd

Party Shipments (kmt)

686

638

642

3

rd

Party Revenue ($ Millions)

1,600

1,659

1,865

3

rd

Party Price ($/MT)

2,180

2,291

2,538

ATOI ($ Millions)

8

97

245

12

4

th

Quarter Outlook

+$85

+$86

Market

Performance

[Alcoa logo]

Price

/Mix

Prod-

uctivity

Cost

Decr.

/ Other

4 days

lower

One day year-over-year increase in average DWC

Average Days Working Capital since Third Quarter 2009

4 days

lower

3 days

lower

See appendix for days working capital reconciliation

13

32

33

30

28

31

29

32

36

35

34

36

40

40

40

44

43

42

47

37

37

30

5 days

lower

1 day

higher

15 day reduction

since 3Q09

1 day increase

since 3Q13

Driver

Horizon

Curtailments

Near-term

Automotive growth

Mid-term

[Alcoa logo]

($ Millions)

3Q13

2Q14

3Q14

Net Income before Noncontrolling Interests

$44

$129

$131

DD&A

$348

$350

$346

Change in Working Capital

($61)

$31

($411)

Pension Contributions

($173)

($191)

($164)

Other Adjustments

$56

$199

$347

Cash from Operations

$214

$518

$249

Dividends to Shareholders

($33)

($36)

($36)

Share Issuance

-

-

$1,213

Change in Debt

($5)

$296

$981

(Distributions to)/Contributions from Noncontrolling Interests

($53)

$4

($20)

Other Financing Activities

($2)

$17

$2

Cash from Financing Activities

($93)

$281

$2,140

Capital Expenditures

($250)

($258)

($283)

Other Investing Activities

($54)

($28)

$2

Cash from Investing Activities

($304)

($286)

($281)

3

rd

Quarter Cash Flow Overview

14

3Q13, 2Q14 & 3Q14 Cash Flow

See appendix for Free Cash Flow reconciliation

[Alcoa logo]

9,816

8,338

6,882

7,082

6,872

5,716

762

1,481

1,543

1,939

1,861

1,437

665

1,183

3,272

8,988

3Q14

2011

9,371

7,432

2010

9,165

7,622

2009

9,819

2008

10,578

1Q14

7,747

2013

8,319

8,055

2Q14

2012

8,829

6,968

15

(Millions)

Net Debt

Debt to Cap

Cash

38.1%

42.5%

38.7%

34.9%

35.3%

34.8%

35.0%

See appendix for Net Debt reconciliation

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

Net debt reflects acquisition financing

35.4%

37.3%

[Alcoa logo]

16

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

Positive

Free Cash

Flow

$862M

YTD:

$325M

$425M

$69M

37.3%

On track to meet our 2014 targets

2014 Annual Financial Targets and Year-to-Date Results

[Alcoa logo]

17

Market fundamentals remain positive

Reaffirm 7% global demand growth

Alumina surplus shrinking, aluminum deficit

Inventories declined 7 days in 3Q

Premiums move to new record highs

See appendix for full scale charts

[Alcoa logo]

Klaus Kleinfeld

Chairman and Chief Executive Officer

18

October 8, 2014

[Alcoa logo]

Aerospace and Automotive Markets Remain Strong; Forecast Unchanged

Alcoa End Markets: Current Assessment of 2014 vs. 2013

End Market

Growth

Global and Regional Commentary

Automotive

Aerospace

8% to 9%

Global sales

growth

2% to 4%

Global

production

growth

Source:  Alcoa analysis

1) International Air Transport Association 2014 Expectations

19

[Alcoa logo]

Global HDT Market Steady, Stronger N.A.; Packaging +2% to 3% Globally

End Market

Growth

Global and Regional Commentary

Packaging

Heavy Duty

Truck and Trailer

2% to 3%

Global sales

growth

NA

-1% to -2%

EU

2% to 3%

China

8% to 12%

•

Demand

decline:

Weakness

(-3.5%

YTD)

in

Carbonated

Soft

Drinks

(CSD)

•

Improved

performance

(+3.4%

YTD)

in

Beer

Segment

partially

offsets

CSD

•

Demand

Up:

Strong

1H’14

growth

in

W.

Eur;

both

CSD

and

beer

segment

improved

•

Strong

Demand:

Increased

Beer

and

Herbal

Tea

segments

NA

16% to 20%

EU

-7% to -10%

China

0 to 4%

•

Orders

Up:

3Q

increased

+43%

YoY

with

continued

strength

YTD

+32%

from

prior

year

•

Good

Order

Book:

August

122k

trucks

(10-year

average

102k),

up

+57%

YoY

•

Solid

Fundamentals:

+3.6%

Freight

ton

miles

(Aug

YTD);

+3.7%

Freight

price

(2Q14

YoY)

•

Production:

Forecast

increased;

79K

units

in

3Q14,

+24.5%

YoY

•

Orders:

-

4%

YTD

as

expected

(EURO

•

Market

stabilizing

-1% to 3%

Global

production

flat/growth

Source:  Alcoa analysis

HDT = Heavy duty truck and trailer

Alcoa End Markets: Current Assessment of 2014 vs. 2013

20

Production:

W.

Eur

flat,

E.

Eur

~

-20%

2014E

+

infrastructure

for

reg.

changes

(Low

Sulfur

Gas

Avail.)

VI);

(30%

growth

in

2013);

[Alcoa logo]

Solid Commercial B&C Growth; Global Airfoil Market Down YoY

End Market

Growth

Global and Regional Commentary

Industrial

Gas Turbines

Building and

Construction

-8% to -12%

Global airfoil

market decline

•

Orders

down:

1H’14

run

rate

-29%

globally

vs

2012/2013

levels;

-45%

from

2011

levels

•

OECD

electricity

demand

down

0.4%

1H’14

vs

prior

year

(-2.2%,

excl.

U.S.)

•

Spares

demand:

Negative

impact

from

shift

in

energy

mix/usage

in

key

regions

•

N.A.:

Natural

gas

prices

peaked

in

1Q14;

coal

gains

share

(U.S.

gas-fired

market share:

25.8% 2014 YTD vs 27.4% 2013)

•

Europe:

Gas-fired

power

squeezed

by

low-priced

coal

and

subsidized

renewables

NA

3% to 4%

EU

-2% to -3%

China

7% to 9%

Positive Early Indicators:

•

Non-Residential

Contracts

Awarded:

+12%

in

September

(12-month

rolling

average)

•

Architectural

Billing

Index:

Positive

at

53

in

August;

4

consecutive

months

above

50

•

Case-Shiller

Home

Price

Index:

+5.6%

July

YoY;

growth

moderated

since

Q1

(10%+)

•

Decline as weakness continues, outlook varies across markets

•

Growth as fundamentals stabilize

4% to 6%

Global sales

growth

Source:  Alcoa analysis

B&C  = Building and construction

Alcoa End Markets: Current Assessment of 2014 vs. 2013

21

[Alcoa logo]

Value-Add:  Profitable Growth

Upstream: Reduce Cost Position

Creating a Globally Competitive Commodity Business

Transforming Alcoa –

Creating Compelling Sustainable Value

22

Engineered Products & Solutions

Alumina

Global Rolled Products

Aluminum

[Alcoa logo]

Building a Lightweight Multi-Material Innovation Powerhouse

Flying High in Aerospace –

Metallic Aircraft Here to Stay

Source: Alcoa, Photos courtesy of Airbus, Boeing

Over $2.8B

contracts

since 2012

23

July 11, 2012

May 1, 2014

September 11, 2014

December 16, 2013

October 2, 2014

July 14, 2014

September 25, 2014

[Alcoa logo]

$290M Spirit 5-year

contract

Supply aluminum sheet products

for fuselage skins

$1.4B

Airbus

multi-year

contract

Supply

aluminum

sheet,

plate

and

hard

alloy

extruded

products

across

virtually

all

Airbus

commercial

programs

Utilizes Alcoa’s current, advanced-generation and Al-Li alloys

Boeing

announces

increase

in

B737

build

rate:

47/month

in

2017

to

52/month

in

2018

Airbus launched all-metallic A330neo

Maiden flight of the Airbus A320neo

Over

$1.0B

multi-year

Boeing

contract;

content on every platform

Sole

supplier

of

wing

skins

on

all

metallic

aircraft

Enhances

existing position on structural components

Continue collaboration on developing new,

innovative

aerospace alloys including Al-Li

$110M

Airbus

multi-year

contract

Supply Ti forgings used to connect A320neo wing structure

to engine, large Al forgings for the A330 and A380

Includes A380 inner rear wing spar; World’s largest

aerospace forging

made from  Alcoa’s proprietary 7085 alloy

Al-Li (R)Evolution: Growing the Footprint for Lightweight Al-Li Alloys

Examples of Aluminum-Lithium Applications

Launching into Space

Propelling into Aero Structures

Motoring into Auto and Industrial

Turbo Charging Engines

Developing world’s first

Al-Li fan blade forging

Lighter

weight; more cost-

effective

than Ti, CFRP

Contributes to 16%

improved fuel burn vs.

today’s best engines,  

less noise

Seat tracks

Floor beams

Better corrosion resistance

;

2X

longer

inspection

intervals,   

contributes to 30% lower costs

Wing

Stringers:

A380,

Bombardier Global 7000/8000

Floor

Beams:

A350,

A380,

777x

Seat

Tracks:

A380,  

Gulfstream G650

Audi roof beam

Al-Li forging

Generic fuselage frame

Elevated

temp

strength,

corrosion

and fatigue

resistance

Roof

beam:

Audi;

2X

stronger

than

traditional alloy

Brake calipers, suspension parts:

Formula One

Turbo charger compressor wheels: 

Commercial transport

Strong,

(4-7%)

lower

density

than

conventional aluminum

Lithium

extrusions:

ULA

Developing

applications

for

SpaceX

SpaceX  Rocket

PW1100G-JM

Airbus A380

1)

Versus conventional aluminum. ULA = United Launch Alliance. CFRP: Carbon-fiber-reinforced polymer.

Photos courtesy of Associated Press, Airbus, Pratt and Whitney, Audi AG

24

[Alcoa logo]

1

Unique Capabilities + Organic Investment = Al-Li Value-Add Growth

Summary of Alcoa Aluminum-Lithium Advantages, Growth Investment and Projected Revenues

Investing in Next-Gen Aerospace:  Largest Al-Li Casthouse

Industry’s

most

complete

product

portfolio

(including large press and hollow extrusions)

Alcoa

applications

on

key

aerospace

platforms

~$90M investment

~20 kmt World’s

largest

Metallurgical expertise:                               

3 patented alloys, 1

patent-pending alloy

AA-developed

equipment

and

technology

Global

leader

in

Al-Li

extrusions

Unmatched capability; forged rotating parts

Largest

Al-Li

ingots

for

single-piece

components;

~50% larger than the nearest competition

Leveraging proximity for

enhanced collaboration;

extrusions, rolling mill, forging

capabilities

$100M

sales contracted

in 2017

25

facility

Innovation Heavyweight in Lightweight Metals

Offering the Broadest Product Portfolio

[Alcoa logo]

Firth Rixson Acquisition On Track

Portfolio Enhancing: Growing Market, High Tech

Largest

seamless Rings

200”

in diameter

Full

Range

forged

closed-die

aero

Engine

Disks

Doubles

AA’s

Engine

Content

on

key

programs

~$100M

synergies

1

;

40%

by

year

2;

100%

by

year

5

Specialized

Isothermal

process;

3X

demand

growth

expected

in

next

8

years

Disks

enable

Higher

Operating

Temperatures

(+70°F over legacy engines)

40% Improvement

in Combustion Efficiency

Multi-Material

mix;

60%

Ni,

25%

Ti,

15%

Steel/Al

Critical

rotating

Disks

forged

from

Metal

Powder

Integrated

Nickel

Supply

of

cast

stick

and

billet

Strong Aerospace Offering

Array of Material Composition

Rings

Metal

Disks

Leading Edge Technology

Highlights of Firth Rixson Acquisition, Closing Progress and Post-Merger Preparation

Post-Merger Preparation

Targeting 4Q Close

US

Ukraine

South Korea

Turkey

Regulatory Approval

Europe

In progress

China

In progress

Complete

Funding

Taiwan

2016

$1.6B

revenue

$350M

EBITDA

Focus Areas

Work Streams

1)

Savings per year

26

[Alcoa logo]

HR, Communications

Manufacturing, Engineering,

Commercial

Financial, Procurement

Quality, EHS, Compliance, IT

Talent Retention, Development

Synergy Generation & Capture

Alcoa Operating Systems

Technology Sharing

Commercial and Procurement

Engagement

Comprehensive Day 1 “Go Live”

Reynobond

®

/ Reynolux

®

Panels

•

Reynobond panels with

self-cleaning EcoClean™

coating

Kawneer

Sunshades /

Light Shelves

Capturing Rebound in N.A. Building and Construction

Leading Indicators of U.S. Non Res. Growth, Green Building Requirements, and Alcoa Product Portfolio

Market Improving; Green Demand Growing

Energy Requirements Increasing

Target

of

‘Net

Zero’

Buildings

in

USA

by

2030

4

Green buildings provide:

-

25%

Energy

consumption

-

35% Emissions

+

27%

Occupant satisfaction

1) 2013-2016 CAGR: 4% BCS vs. combined NA & EU market 1.4%.  2) McGraw-Hill Construction –

CMFS Report, Q3 2014.  3) McGraw-Hill

Construction  2013. 4) ACEEE, 2012. 5) Alcoa analysis. 6) For LEED certified buildings.  7) Green Office Buildings Annual Economic

Review. 8) USGBC.

Kawneer Entrances

Kawneer Framing

Innovative Portfolio Drives Revenue, Performance

1,500

1,000

500

0

+38%

2014

2012

2010

2008

12%

31%

45%

55%

0%

20%

40%

60%

~4.5X

2016

2010

2013

2008

% Non-residential Green Building Market in USA

3

Non-residential Contracts Awarded in USA

2

Millions of Sq. Ft.

Kawneer

Curtain Wall Systems

•

Thermal

•

Blast mitigation

+70%

Facade Thermal

Performance

5

=

10%

Energy Savings

5

+5%

Rental Rates

6,7

20%

Higher ROI

6,8

Leads to:

Contributes to:

Late

1960s

Today

LEED certification

BCS: $1.1B

Revenue in 2016;

3X

market

growth

1

27

[Alcoa logo]

•

Ultra thermal

•

Hurricane resistant

•

High traffic

•

High thermal

•

Blast mitigation

•

Hurricane resistant

Growth For the Long Haul –

Delivering Value For Our Customers

Global Commercial Vehicle Wheels Market, Customer Testimonials, Ultra ONE™

Europe Launch

Customers Love Ultra ONE™, Successful N.A. Launch

Launch in Europe

Alcoa’s Ultra ONE™

Goes International

Source: Alcoa Analysis. 1) Based on dollar value; Commercial Vehicle Wheel Market = Truck, Trailer & Bus.

2) CAGR growth from 2010 to 2018F.

+8%

CAGR²

$2.7

2018F

50%

50%

2014F

$2.0

60%

40%

2010

$1.5

70%

30%

Global Commercial Vehicle Wheel Market ($B)

and Penetration Rates

1

Al Gaining Ground in a Growing Market

Alcoa Wheels

sales growth

17% CAGR

2

15%

CAGR²

3%

CAGR²

Al

Steel

Alcoa

Al

wheels,

5X

Stronger

than

Steel

17%

Stronger

Proprietary

MagnaForce™

Alloy

Dura-Bright

®

:

10X

improved

Corrosion

Resistance

No

Mechanical

or

Chemical

Cleaning

Looks

New

Longer

Available

2H

2015

“SHINE ON! #AlcoaWheels

thanks for the love and

appreciation! If my

#AlcoaWheels ain’t turnin     

I ain’t Earning!”

-

Herman Klein (@hermanator333)

via Twitter

28

[Alcoa logo]

Winning Alumina Formula = Market-Based Pricing + Cost Down

$177M

$246M

$286M

$298M

$735M

$1,742M

2012

2011

2009/2010

2013

YTD

3Q14

Total

1.7

mmt

currently

Curtailed

LOI

to

pursue

Sale

of

Jamalco

2

interest

San

Ciprian

Natural

Gas

solution;

complete

in

4Q14;

~$20

per

metric

ton

cost

improvement

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

Capturing

Productivity

Gains

1

Restructuring and Improving

2010

2010

2013

2016

2014

2013

5%*

API/Spot Pricing

Cost Curve Position

Executing on Phase 2 in Saudi Arabia

98%

complete

73%

complete

First

bauxite

shipped

2Q14

Phase

2

on

time,

on

budget

World’s

lowest

cost

refinery

First

alumina

in

4Q14

2%

point

reduction

on

refining

cost

curve

21

st

percentile

30

th

percentile

27

th

percentile

* % of 3

rd

party shipments

-9%

points

Cost Curve Reduction Levers, API/Spot Pricing and Alumina Cost Curve Targets

29

65%*

55%*

[Alcoa logo]

Reshaping Aluminum Portfolio + Enhancing Profitability

Cost Curve Reduction Levers, Value Add Product % and Global Smelting Cost Curve Targets

Optimizing the Smelting Portfolio

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

2)  CRU cost model, Alcoa analysis.          Operating capacity = Alcoa total base capacity less idled capacity

Capturing

Productivity

Gains

1

Saudi Arabia Smelter Fully Operational

At

full

capacity;

600

kmt

production in 2014

2%

point

reduction

on

the smelting cost curve

Smelter generated

profits

in 3Q

Total Smelting Operating Capacity (kmt)

4,121

-418

2013

-253

2012

-239

2011

+234

2010

+61

2009

-198

2008

-344

2007

-28%

End of

3Q14

2,964

Recent announcements

Pt. Henry closure

Portovesme closure

$201M

$235M

$345M

$340M

$865M

$1,986M

Total

YTD

3Q14

2013

2012

2011

2009/2010

More Value Add

2008:

51%

(% Total Shipments)

2010: 57%

2014E: 65%

=>

~$1.3B Margin

More Competitive

Improved Cost Position²

2008:

62

nd

percentile 

2010:

51

st

percentile  

2013:

43

rd

percentile

2016:

target

38th

percentile

Lower Break Even Point    

-$362/mt

Cash

Cost

(3Q08-3Q14)

More Profits

$612

EBITDA/mt

3Q14

Transformation

since start of crisis

30

YTD

2014

[Alcoa logo]

(2008-2013)

Transformation Delivers, Driving Profitability

Capturing Growth Through Innovation and Smart Investments

Creating a Globally Competitive Commodity Business

Expanding Multi-Material Leadership in Major Growth Markets

31

[Alcoa logo]

APPENDIX

[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

33

[Alcoa logo]

Annual Sensitivity Summary

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

34

[Alcoa logo]

Revenue Change by Market

0%

8%

0%

0%

(3%)

(17%)

8%

38%

17%

12%

2%

19%

1%

15%

2%

(12%)

6%

30%

5%

17%

3Q’14 Third-Party Revenue

Sequential

Change

Year-Over-Year

Change

35

[Alcoa logo]

[Alcoa logo]

Special Items

Pre-tax, Before NCI

After-tax, After NCI

$ Millions, except per-share amounts

2Q14

3Q14

2Q14

3Q14

Income Statement

Classification

Segment

Income from Continuing Operations

$207

$330

$138

$149

Income Per Diluted Share

$0.17

$0.27

$0.12

$0.12

Restructuring-Related

($110)

($242)

($54)

($202)

Restructuring and

Other Charges/COGS

Corporate /

Primary Metals/

GRP

Tax Items

$0

$0

($2)

$0

Income Taxes

Corporate

Master Labor Agreement

($17)

$0

($11)

$0

COGS

Corporate / All

Firth Rixson Acquisition Costs

($13)

($20)

($11)

($14)

SG&A/Interest

Expense

Corporate

Saudi Arabia Smelter Potline

($6)

$0

($6)

$0

COGS/

Other Expenses, Net

Primary Metals

Mark-to-Market Energy Contracts

$11

($27)

$6

($14)

Other Expenses, Net

Corporate

Gain on Asset Sale

$0

$15

$0

$9

Other Expenses, Net

Corporate

Special Items

($135)

($274)

($78)

($221)

Income from Continuing Ops excl Special Items

$342

$604

$216

$370

Income per Diluted Share excl Special Items

$0.29

$0.50

$0.18

$0.31

See appendix for Adjusted Income reconciliation.

36

[Alcoa logo]

Composition of Regional Premium Pricing Convention

37

[Alcoa logo]

Alcoa smelting closures and curtailments

38

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

2014

190

Portovesme

2014

150

Total

1,253

Alcoa smelting capacity closures, since Dec 2007

Location

kmt

Rockdale

191

Sao Luis

194

Pocos

96

Intalco

49

Wenatchee

41

Aviles

36

Portland

30

La Coruna

28

Total

665

Alcoa current curtailed capacity

[Alcoa logo]

Composition of Upstream Production Costs

39

Refining Cost Structure

Smelting Cost Structure

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

[Alcoa logo]

6.6

6.4

4.2

25.4

2.1

2.0

2.0

1.1

1.0

8%

8%

2%

4%

1%

10%

2%

5%

5%

5%

52.8 mmt

1

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 ¹

2.0

Source: Alcoa estimates, CRU, Harbor, Wood Mackenzie, SMM

Reaffirm 7% global demand growth

40

[Alcoa logo]

2014 demand +7%

World ex China +4%

41

2014E Aluminum Supply/Demand Balance

’000 mt

China

Rest of World

2014 Production

25,336

25,737

2014 Production to be added

389

375

2014 Capacity (curtailed)/restarted, net

255

65

Total supply

25,980

26,177

Demand

(25,450)

(27,378)

Net Balance

530

(1,201)

2014E Alumina Supply/Demand Balance

’000 mt

China

Rest of World

2014 Production 

44,729

55,186

2014 Production to be added

1,067

228

2014 Capacity to be (curtailed)

0

0

Imports/(exports)

4,500

(4,500)

Total supply

50,296

50,914

Demand

(50,296)

(50,525)

Net Balance

0

389

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

Alumina surplus shrinking, aluminum deficit

Supply/Demand Analysis

DEFICIT

(671)

2Q14

Surplus

824

2Q14

Deficit

(930)

SURPLUS

389

[Alcoa logo]

42

Global Inventories vs. LME Price Over Time $

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

Inventories declined 7 days in 3Q

[Alcoa logo]

Premiums move to record highs

Regional Premiums over time

$ per metric

ton

$ per metric

ton

Region

End of 3Q 14

Europe

$490/MT

Japan

$420/MT

Midwest USA

$488/MT

Average

3Q 14 vs. 3Q 13

Europe  76%

Japan   62%

Midwest USA  87%

Source:

Monthly

average

of

daily

prices

-

Platts

Metals

Week

43

[Alcoa logo]

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

Alcoa

(in millions)

1Q13

2Q13

3Q13

4Q13

2013

1Q14

2Q14

3Q14

Total segment ATOI

$351

$304

$338

$224

$1,217

$325

$418

$619

Unallocated amounts (net of tax):

Impact of LIFO

(2)

5

9

40

52

(7)

(8)

(18)

Interest expense

(75)

(76)

(70)

(73)

(294)

(78)

(69)

(81)

Noncontrolling interests

(21)

29

(20)

(29)

(41)

19

9

18

Corporate expense

(67)

(71)

(74)

(72)

(284)

(67)

(70)

(74)

Impairment of goodwill

–

–

–

(1,731)

(1,731)

-

-

-

Restructuring and other charges

(5)

(211)

(108)

(283)

(607)

(321)

(77)

(189)

Other

(32)

(99)

(51)

(415)

(597)

(49)

(65)

(126)

Consolidated net income (loss) attributable to Alcoa

$149

$(119)

$24

$(2,339)

$(2,285)

$(178)

$138

$149

44

[Alcoa logo]

Reconciliation of Adjusted Income

(in millions, except per-

share amounts)

Income

Diluted EPS

Quarter ended

Quarter ended

September 30,

June 30,

September 30,

September 30,

June 30,

September 30,

2013

2014

2014

2013

2014

2014

Net income attributable to

Alcoa

$24

$138

$149

$0.02

$0.12

$0.12

Restructuring and other

charges

108

54

175

Discrete tax items*

1

(2)

25

Other special items**

(13)

26

21

Net income attributable

to Alcoa –

as adjusted

$120

$216

$370

0.11

0.18

0.31

Net

income

attributable

to

Alcoa

–

as

adjusted

is

a

non-GAAP

financial

measure.

Management

believes

that

this

measure

is

meaningful

to

investors

because

management

reviews

the

operating

results

of

Alcoa

excluding

the

impacts

of

restructuring

and

other

charges,

discrete

tax

items,

and

other

special

items

(collectively,

“special

items”).

There

can

be

no

assurances

that

additional

special

items

will

not

occur

in

future

periods.

To

compensate

for

this

limitation,

management

believes

that

it

is

appropriate

to

consider

both

Net

income

attributable

to

Alcoa

determined

under

GAAP

as

well

as

Net

income

attributable

to

Alcoa

–

as

adjusted.

* Discrete tax items include the following:

·

for

the

quarter

ended

September

30,

2014,

a

charge

for

the

remeasurement

of

certain

deferred

tax

assets

of

a

subsidiary

in

Brazil

due

to

a

tax

rate

change

($34)

and

a

net

benefit

for

a

number

of

small

items

($9);

·

for

the

quarter

ended

June

30,

2014,

a

net

benefit

for

a

number

of

small

items;

and

·

for

the

quarter

ended

September

30,

2013,

a

net

charge

for

a

number

of

small

items.

**

Other

special

items

include

the

following:

·

for

the

quarter

ended

September

30,

2014,

a

favorable

tax

impact

resulting

from

the

difference

between

Alcoa’s

consolidated

estimated

annual

effective

tax

rate

and

the

statutory

rates

applicable

to

special

items

($33),

the

write

off

of

inventory

related

to

the

permanent

closure

of

smelters

in

Italy

and

Australia

($27),

costs

associated

with

a

planned

acquisition

of

an

aerospace

business

($14),

a

net

unfavorable

change

in

certain

mark-to-market

energy

derivative

contracts

($14),

a

gain

on

the

sale

of

an

investment

($9),

and

an

unfavorable

tax

impact

related

to

the

interim

period

treatment

of

operational

losses

in

certain

foreign

jurisdictions

for

which

no

tax

benefit

was

recognized

($8);

·

for

the

quarter

ended

June

30,

2014,

an

unfavorable

tax

impact

resulting

from

the

difference

between

Alcoa’s

consolidated

estimated

annual

effective

tax

rate

and

the

statutory

rates

applicable

to

special

items

($24),

a

favorable

tax

impact

related

to

the

interim

period

treatment

of

operational

losses

in

certain

foreign

jurisdictions

for

which

no

tax

benefit

was

recognized

($20),

costs

associated

with

(i)

a

planned

acquisition

of

an

aerospace

business

($11)

and

(ii)

preparation

for

and

ratification

of

a

new

labor

agreement

with

the

United

Steelworkers

($11),

a

net

favorable

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);

and

·

for

the

quarter

ended

September

30,

2013,

an

insurance

recovery

related

to

the

March

2012

cast

house

fire

at

the

Massena,

NY

location

($12),

a

net

favorable

change

in

certain

mark-to-market

energy

derivative

contracts

($8),

an

unfavorable

impact

related

to

the

interim

period

treatment

of

operational

losses

in

certain

foreign

jurisdictions

for

which

no

tax

benefit

was

recognized

($6),

and

the

write

off

of

inventory

related

to

the

permanent

closure

of

two

potlines

at

a

smelter

in

Canada

($1).

45

[Alcoa logo]

Reconciliation of Alcoa Adjusted EBITDA

($ in millions)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

3Q13

2Q14

3Q14

Net income (loss) attributable to Alcoa

$938

$1,310

$1,233

$2,248

$2,564

$(74)

$(1,151)

$254

$611

$191

$(2,285)

$24

$138

$149

Add:

Net income (loss) attributable to noncontrolling

interests

212

233

259

436

365

221

61

138

194

(29)

41

20

(9)

(18)

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

31

78

199

Other (income) expenses, net

(278)

(266)

(478)

(236)

(1,920)

(59)

(161)

5

(87)

(341)

(25)

(7)

5

23

Interest expense

314

271

339

384

401

407

470

494

524

490

453

108

105

126

Restructuring and other charges

(28)

(29)

266

507

268

939

237

207

281

172

782

151

110

209

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

348

349

347

Adjusted EBITDA

$2,682

$3,234

$3,362

$5,422

$4,795

$3,313

$359

$2,704

$3,260

$2,105

$2,546

$675

$776

$1,035

Sales

$18,879

$21,370

$24,149

$28,950

$29,280

$26,901

$18,439

$21,013

$24,951

$23,700

$23,032

$5,765

$5,836

$6,239

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%

11.7%

13.3%

16.6%

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.

46

[Alcoa logo]

Reconciliation of Alumina Adjusted EBITDA

($ in millions, except per metric ton

amounts)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

3Q13

2Q14

3Q14

After-tax operating income (ATOI)

$415

$632

$682

$1,050

$956

$727

$112

$301

$607

$90

$259

$67

$38

$62

Add:

Depreciation, depletion, and amortization

147

153

172

192

267

268

292

406

444

455

426

100

100

100

Equity (income) loss

–

(1)

–

2

(1)

(7)

(8)

(10)

(25)

(5)

4

2

7

7

Income taxes

161

240

246

428

340

277

(22)

60

179

(27)

66

17

12

26

Other

(55)

(46)

(8)

(6)

2

(26)

(92)

(5)

(44)

(8)

(6)

(2)

–

(2)

Adjusted EBITDA

$668

$978

$1,092

$1,666

$1,564

$1,239

$282

$752

$1,161

$505

$749

$184

$157

$193

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

4,214

4,077

4,196

Adjusted EBITDA / Production ($ per

metric ton)

$48

$68

$75

$110

$104

$81

$20

$47

$70

$31

$45

$44

$39

$46

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.

47

[Alcoa logo]

Reconciliation of Primary Metals Adjusted EBITDA

($ in millions, except per metric ton amounts)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

3Q13

2Q14

3Q14

After-tax operating income (ATOI)

$657

$808

$822

$1,760

$1,445

$931

$(612)

$488

$481

$309

$(20)

$8

$97

$245

Add:

Depreciation, depletion, and amortization

310

326

368

395

410

503

560

571

556

532

526

131

129

124

Equity (income) loss

(55)

(58)

12

(82)

(57)

(2)

26

(1)

7

27

51

13

17

–

Income taxes

256

314

307

726

542

172

(365)

96

92

106

(74)

(16)

30

95

Other

12

20

(96)

(13)

(27)

(32)

(176)

(7)

2

(422)

(8)

2

(5)

1

Adjusted EBITDA

$1,180

$1,410

$1,413

$2,786

$2,313

$1,572

$(567)

$1,147

$1,138

$552

$475

$138

$268

$465

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

897

795

760

Adjusted EBITDA / Production ($ per metric

ton)

$336

$418

$398

$784

$626

$392

$(159)

$320

$301

$148

$134

$154

$337

$612

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.

48

[Alcoa logo]

Reconciliation of Global Rolled Products Adjusted EBITDA

($ in millions, except per metric ton amounts)

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

3Q13

2Q14

3Q14

After-tax operating income (ATOI)

$232

$223

$232

$290

$300

$317

$151

$(41)

$(106)

$241

$260

$346

$252

$71

$79

$103

Add:

Depreciation, depletion, and amortization

167

184

190

200

220

223

227

216

227

238

237

229

226

56

58

62

Equity loss

2

4

1

1

–

2

–

–

–

–

3

6

13

3

6

8

Income taxes

112

90

77

97

135

113

77

14

12

103

98

159

108

32

23

42

Other

(5)

(8)

(5)

1

1

20

1

6

(2)

1

1

(2)

–

–

1

–

Adjusted EBITDA

$508

$493

$495

$589

$656

$675

$456

$195

$131

$583

$599

$738

$599

$162

$167

$215

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

519

533

526

Adjusted EBITDA / Total shipments ($ per

metric ton)

$273

$272

$261

$276

$292

$284

$184

$83

$69

$332

$321

$380

$301

$312

$313

$409

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.

49

[Alcoa logo]

Reconciliation of Engineered Products and Solutions Adjusted EBITDA

($ in millions)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

3Q13

2Q14

3Q14

After-tax operating income (ATOI)

$126

$161

$276

$382

$423

$522

$311

$419

$537

$612

$726

$192

$204

$209

Add:

Depreciation, depletion, and

amortization

166

168

160

152

163

165

177

154

158

158

159

40

41

40

Equity loss (income)

–

–

–

6

–

–

(2)

(2)

(1)

–

–

–

–

–

Income taxes

57

70

120

164

184

215

138

198

258

297

348

91

102

100

Other

11

106

(11)

(2)

(7)

2

1

–

(1)

(9)

(2)

–

–

2

Adjusted EBITDA

$360

$505

$545

$702

$763

$904

$625

$769

$951

$1,058

$1,231

$323

$347

$351

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

$1,437

$1,502

$1,495

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%

22.5%

23.1%

23.5%

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.

50

[Alcoa logo]

Reconciliation of Free Cash Flow

(in millions)

Quarter ended

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

30-Sep-14

Cash from

operations

$1,142

$(236)

$537

$263

$933

$(70)

$514

$214

$920

$(551)

$518

$249

Capital expenditures

(486)

(270)

(291)

(302)

(398)

(235)

(286)

(250)

(422)

(209)

(258)

(283)

Free cash flow

$656

$(506)

$246

$(39)

$535

$(305)

$228

$(36)

$498

$(760)

$260

$(34)

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.

51

[Alcoa logo]

Reconciliation of Free Cash Flow, continued

(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

30-Sep-11

Cash from

operations

$608

$(271)

$328

$184

$1,124

$199

$300

$392

$1,370

$(236)

$798

$489

Capital

expenditures

(1,017)

(471)

(418)

(370)

(363)

(221)

(213)

(216)

(365)

(204)

(272)

(325)

Free cash flow

$(409)

$(742)

$(90)

$(186)

$761

$(22)

$87

$176

$1,005

$(440)

$526

$164

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.

52

[Alcoa logo]

Days Working Capital

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.

53

($ in millions)

Quarter ended

31-Mar-12

30-Jun-12

30-Sep-12

31-Dec-12

31-Mar-13

30-Jun-13

30-Sep-13

31-Dec-13

31-Mar-14

30-Jun-14

30-Sep-14

Receivables from customers, less

allowances  

$1,709

$1,650

$1,600

$1,573

$1,704

$1,483

$1,427

$1,383

$1,391

$1,401

$1,526

Add: Deferred purchase price receivable*

85

144

104

53

50

223

347

339

238

371

438

Receivables from customers, less

allowances, as adjusted

1,794

1,794

1,704

1,626

1,754

1,706

1,774

1,722

1,629

1,772

1,964

Add: Inventories

3,079

3,097

3,051

2,894

2,961

2,949

2,932

2,783

2,974

3,201

3,194

Less: Accounts payable, trade

2,660

2,594

2,496

2,587

2,656

2,820

2,746

2,816

2,813

2,880

3,016

Working Capital**

$2,213

$2,297

$2,259

$1,933

$2,059

$1,835

$1,960

$1,689

$1,790

$2,093

$2,142

Sales

$6,006

$5,963

$5,833

$5,898

$5,833

$5,849

$5,765

$5,585

$5,454

$5,836

$6,239

Days Working Capital

34

35

36

30

32

29

31

28

30

33

32

[Alcoa logo]

Reconciliation of Net Debt

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

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

(in millions)

December 31,

March 31,

June 30,

September 30,

2008

2009

2010

2011

2012

2013

2014

2014

2014

Short-term borrowings

$478

$176

$92

$62

$53

$57

$53

$133

$57

Commercial paper

1,535

–

–

224

–

–

–

223

99

Long-term debt due within one year

56

669

231

445

465

655

85

87

35

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

8,797

Total debt

10,578

9,819

9,165

9,371

8,829

8,319

7,747

8,055

8,988

Less: Cash and cash equivalents

762

1,481

1,543

1,939

1,861

1,437

665

1,183

3,272

Net debt

$9,816

$8,338

$7,622

$7,432

$6,968

$6,882

$7,082

$6,872

$5,716

54

[Alcoa logo]

Reconciliation of Net Debt-to-Capital

55

($ in millions)

June 30, 2014

September 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

$133

$57

Commercial paper

223

99

Long-term debt due within

one year

87

35

Long-term debt, less

amount due within one

year

7,612

8,797

Numerator

$8,055

$1,183

$6,872

$8,988

$3,272

$5,716

Total Capital

Total debt

$8,055

$8,988

Total equity

14,706

15,139

Denominator

$22,761

$1,183

$21,578

$24,127

$3,272

$20,855

Ratio

35.4%

31.8%

37.3%

27.4%

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]