Slide 1: 3rd Quarter 2011 Earnings Conference
Exhibit 99.2 [Alcoa logo] rd 3 Quarter 2011 Earnings Conference October 11, 2011
Slide 2: Cautionary Statement
[Alcoa logo] Cautionary Statement 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,
Slide 3: Chuck McLane, Executive Vice President and CFO
[Alcoa logo] Chuck McLane Executive Vice President and Chief Financial Officer
Slide 4: Commodity Price Deflation + European Weakness = Q3 Dip
[Alcoa logo] Commodity Price Deflation + European Weakness = Q3 Dip Segment ATOI (US$ Millions) Commodity Price Deflation Alumina Primary Metals Cash LME Cash LME $186 $202 $201 $142 $154 $178 $2,603 $2,603 $110 $65 $2,500 $2,500 $2,400 $2,400 $2,343 $2,343 4Q'10 1Q'11 2Q'11 3Q'11 4Q'10 1Q'11 2Q'11
Slide 5: 3rd Quarter 2011 Financial Overview
[Alcoa logo] rd 3 Quarter 2011 Financial Overview Income from Continuing Operations of $172 million, or $0.15 per share Revenue down 3% sequentially and up 21% versus third quarter 2010 Adjusted EBITDA of $821 million, down 21% sequentially and up 36% versus third quarter 2010 13% Adjusted EBITDA Ma
Slide 6: Income Statement Summary
[Alcoa logo] Income Statement Summary Year Sequential $ Millions 3Q’10 2Q’11 3Q’11 Change Change Sales $5,287 $6,585 $6,419 $1,132 ($166) Cost of Goods Sold $4,413 $5,247 $5,290 $877 $43 COGS % Sales 83.5% 79.7% 82.4% (1.1 % pts.) 2.7 % pts. Selling, General Administrative, Other $232 $253 $261 $29
Slide 7: Restructuring and Other Special Items
[Alcoa logo] Restructuring and Other Special Items $ Millions 3Q’10 2Q’11 3Q’11 Income from Continuing Operations $61 $326 $172 Income Per Diluted Share $0.06 $0.28 $0.15 Restructuring Related $1 ($16) ($5) Discrete Tax Items $38 - $10 Mark-to-Market Energy Contracts ($29) $10 $13 Debt Tender Offer
Slide 8: 3rd Quarter 2011 vs. 2nd Quarter 2011 Earnings Bridge
[Alcoa logo] rd nd 3 Quarter 2011 vs. 2 Quarter 2011 Earnings Bridge Income from Continuing Operations excluding Restructuring & Other Special Items ($ millions) $364 $99 $17 $60 $22 $7 $26 $33 $32 $15 $8 $165 -$116m +$20m -$103m 2Q11 LME Currency Volume Price / Productivity Energy Raw Cost Repair &
Slide 9: YTD 2011 vs. YTD 2010 Earnings Bridge
[Alcoa logo] YTD 2011 vs. YTD 2010 Earnings Bridge Income from Continuing Operations excluding Restructuring & Other Special Items ($ millions) $411 $167 31.8¢ $240 $196 $304 $645 $241 $210 $846 $336 +$404m +817m -$711m YTD10 LME Currency Volume Price / Mix Productivity Energy Raw Cost YTD11 Materia
Slide 10: Alumina
[Alcoa logo] Alumina rd 3rd Quarter Results 3 Quarter Business Highlights 3Q 10 2Q 11 3Q11 Realized third-party alumina price down 3% Production (kmt) 4,047 4,144 4,140 rd Days working capital down 7 days from Q3 2010 3 Party Shipments (kmt) 2,423 2,378 2,256 rd Positive Currency impact of $16 milli
Slide 11: Primary Metals
[Alcoa logo] Primary Metals rd rd 3 Quarter Highlights 3 Quarter Business Highlights 3Q 10 2Q 11 3Q 11 Realized pricing down 5% sequentially Production (kmt) 891 945 964 rd 3 Party Shipments (kmt) 708 724 754 Days working capital down 5 days from Q3 2010 rd 3 Party Revenue ($ Millions) 1,688 2,145 2
Slide 12: Flat-Rolled Products
[Alcoa logo] Flat-Rolled Products rd rd 3 Quarter Results 3 Quarter Business Highlights ATOI $ Millions 3Q 10 2Q 11 3Q 11 ATOI down from all-time highs in Q2 driven by Flat-Rolled Products, significant market decline in Europe 61 86 56 excl Russia, China & Other Total negative impact of $28 million
Slide 13: Engineered Products and Solutions
[Alcoa logo] Engineered Products and Solutions rd rd 3 Quarter Results 3 Quarter Business Highlights $ Millions 3Q 10 2Q 11 3Q 11 17% revenue growth from Q3 2010 rd 3 Party Revenue 1,173 1,370 1,373 21% improvement in ATOI from Q3 2010 ATOI 114 149 138 Days working capital down 2 days from Q3 2010 $
Slide 14: 3rd Quarter 2011 Cash Flow Overview
[Alcoa logo] rd 3 Quarter 2011 Cash Flow Overview ($ Millions) 3Q’10 2Q’11 3Q’11 Net Income $109 $377 $225 DD&A $358 $375 $377 3Q’11 FCF $164 million Change in Working Capital $213 ($110) ($94) Pension Contributions ($26) ($72) ($114) Taxes / Other Adjustments ($262) $228 $95 $1.3 billion Cash from
Slide 15: Sustainable Reductions in Days Working Capital
[Alcoa logo] Sustainable Reductions in Days Working Capital Sustained historically low days working capital performance 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 3Q 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 2009 2010 2011 15
Slide 16: We Are Focused on Achieving Our 2011 Goals
[Alcoa logo] We Are Focused on Achieving Our 2011 Goals 2011 Cash Sustainability Operational Targets and Actual Performance Sustaining Capital Growth Capital Ma’aden Invest Debt-to-Cap Free Cash Flow $ Millions $ Millions $ Millions % $ Millions $1,000 34.9% 35.0% 33.7% $570 $539 $1,246 $500 $445 $4
Slide 17: Alcoa Enters Uncertain Times Stronger And More Resilient
[Alcoa logo] Alcoa Enters Uncertain Times Stronger And More Resilient Improved Performance in our Businesses Improved Generation of Free Cash Flow Income from Continuing Operations Free Cash Flow excluding restructuring and specials ($ Millions) ($ Millions) Significant Cash on Hand $1b Less Debt an
Slide 18: Management Actions Have Led to Improved Liquidity Position
[Alcoa logo] Management Actions Have Led to Improved Liquidity Position 1 Impacts of Refinancing Long-Term Debt Maturity Profile ($millions) 2010 New Issue 2011 New Issue 5.8% 2 5.6% 5.5% 5.3% Weighted interest rate Weighted life in years Strong demand for Alcoa debt Revolving Credit Facility August
Slide 19: Klaus Kleinfeld, Chairman and CEO
[Alcoa logo] Klaus Kleinfeld Chairman and Chief Executive Officer
Slide 20: Global Aluminum Demand in 2011 Remains Strong…
[Alcoa logo] Global Aluminum Demand in 2011 Remains Strong… 2011 Projected Primary Aluminum Consumption (mmt) and Growth Rates (%) by Region Russia 0.9 6% 5% Brazil 1.0 16% 5% India 14% 12% *Other 7% 17% Asia w/o China 10% 12% North America 6% 6% 2010 Global Demand Growth Rate: 13% Europe 4% 3% 2011
Slide 21: …With Asia Compensating for Western Weakness in 2nd Half
[Alcoa logo] nd …With Asia Compensating for Western Weakness in 2 Half 2011 Projected Primary Aluminum Consumption (mmt) and 2H vs. 1H 2011 Growth Rates (%) Net Increase = 4% Russia 0.9 5% Brazil 1.0 -11% India 1.8 15% *Other 3.4 2% Asia w/o China 5.4 4% Net Increase 4% 2H 2011 vs. 1H 2011 North Ame
Slide 22: Regional Physical Markets Remain Tight
[Alcoa logo] Regional Physical Markets Remain Tight Inventories 6 days Lower Year-on-Year Regional Premiums Signal Strong Demand 80 LME China Midwest 70 10 Japan Port Japan 60 53 days of Producer 9 Europe consumption 8 $200 /MT Global 50 Inventories 7 Drop 3 days vs. 6 40 2Q’11 LME at 38 5 30 days 4
Slide 23: 2011 Aluminum: China Deficit Counteracts Western Surplus
[Alcoa logo] 2011 Aluminum: China Deficit Counteracts Western Surplus 2011E Primary Aluminum Supply / Demand Balance (in kmt) China Western World 229 kmt global surplus Deficit Surplus Production Demand Demand Production Western China World Annualized Production (May 2011) 18,000 Annualized Producti
Slide 24: 2011 Global Alumina Balance Remains At Equilibrium
[Alcoa logo] 2011 Global Alumina Balance Remains At Equilibrium 2011E Alumina Supply / Demand Balance (in kmt) Balanced Production Demand China Western World 2011 Annualized Production 34,200 2011 Annualized Production 53,800 Imports from Western World 1,600 Exports to China (1,600) Supply 35,800 Su
Slide 25: A Tale of Two Markets….
[Alcoa logo] A Tale of Two Markets…. 2008/2009: Best of times (or close to it)… 2011: The world is not the same …worst of times Global Demand Weakening Continued But Physical Markets Destruction Physical Markets Demand Growth Remain Strong Regional Premiums Europe 2008 2009 +5,268kMT $215 +4,700kMT
Slide 26: Leading Market Indicators Have Softened…
[Alcoa logo] Leading Market Indicators Have Softened… Sources: International Monetary Fund; Oxford Economics *Confidence figures set at 100 in January 2011 for comparability 1EC Commission EU Confidence 2 National Bureau of Statistics China Consumer Confidence 3 University of Michigan Consumer Senti
Slide 27: …Still, Growth Continues in 2011…
[Alcoa logo] …Still, Growth Continues in 2011… Alcoa End Markets: Current Assessment of 2011 vs. 2010 Conditions 6%-7% sales growth 8%-10% 1%-2% 4%-6% 3%-5% sales growth sales growth sales growth sales growth 60%-63% 26%-29% 10%-16% 0%-2% sales growth sales growth sales decline sales growth 3%-4% 4%
Slide 28: …with Slowing Growth in 2H
[Alcoa logo] …with Slowing Growth in 2H Alcoa End Markets: Current Assessment of Market Conditions by Semesters Key: 1H 2011 2H 2011 vs vs 2H 2010 1H 2011 12% -4% 14% ** 4% 2% 2% -4% 4% 0% -16% 28% 23% 14% 5% 10% -11% -24% -14% 10%-15% 15%-20% 0% -2%-3% 6% 2%-3% 2%-3% 2%-3% 10%-12% -9% -3%-4% -4% -2
Slide 29: Deteriorating European Conditions Impact Flat-Rolled Segment
[Alcoa logo] Deteriorating European Conditions Impact Flat-Rolled Segment FRP Orders: Marked Slowdown in Europe Alcoa Flat-Rolled Product Orders (12 month rolling average) Indexed to Q1 2010 1.50 China -1% Q-o-Q 1.40 1.30 1.20 1.10 North +2% Q-o-Q America 1.00 0.90 Europe -20% Q-o-Q 0.80 Q1 Q2 Q3 Q4
Slide 30: Alcoa Today: Stronger and More Resilient
[Alcoa logo] Alcoa Today: Stronger and More Resilient 2009: Seven Promises 2011: Prepared for Turbulence Operational • Productivity +$411m vs. 2010 -0.4% pts • Overhead Reductions vs. 2010 • Capital Expenditures (including Ma’aden) -42% vs. 2007 • Working Capital -5 days vs. 2010 Financial / Strateg
Slide 31: Our Crisis Management Toolbox Is Ready for Rapid Deployment
[Alcoa logo] Our Crisis Management Toolbox Is Ready for Rapid Deployment Profitable Growth Alcoa Advantage R&D in every business creating value for technology Actively all businesses refocus Managed Portfolio Business Programs that – Talent Share growth – Technology Capacity define: – 3-year aspirat
Slide 32: Alcoa Did Not Compromise Its Future In The Last Downturn…
[Alcoa logo] Alcoa Did Not Compromise Its Future In The Last Downturn… Alcoa capital expenditure on growth projects, 2008 – 2009, in US$ Juruti, Brazil – Bauxite Mine São Luis, Brazil – Alumina Refinery Mosjoen & Lista, Norway – Smelter $970m $830m Investment Investment Asset Swap $80m $130m Investm
Slide 33: …And Has Not Lost True North Of Accelerating Value
[Alcoa logo] …And Has Not Lost True North Of Accelerating Value The World is Changing… …Demanding the Right Solutions… …Targeting Profitable Growth Demographics Light Weight Global population rising Recyclable High – 2006: 6.6 billion Strength – 2025: 7.9 billion – 2050: 9.1 billion Relative Durable
Slide 34: Changing Regulations Drive Al Penetration In Automotive
[Alcoa logo] Changing Regulations Drive Al Penetration In Automotive Changing Regulations… …Create Opportunities… …And Drive Substitution US Corporate Average Aluminum Penetration Global Auto Body Sheet Fuel Economy (MPG) KMT Opportunities Consumption (KMT) 12,000 100% 54.5 increase 7.5X 1,500 10,00
Slide 35: Aerospace: Vibrant Growth Projected Over Long & Near Terms
[Alcoa logo] Aerospace: Vibrant Growth Projected Over Long & Near Terms Strong Orders and Deliveries… …Driven by Travel Demand + Aging Fleet Commercial Jet Deliveries Commercial Airline Fleet (thousand units) Units $B Value 33,000 1,550 new planes Build rate of 9% CAGR 1,440 4% CAGR 1,675 units 1,36
Slide 36: Aluminum In The Frame For Years To Come
[Alcoa logo] Aluminum In The Frame For Years To Come Best-Selling Aircraft Improving Performance… …Great for Aluminum & Alcoa Aluminum proprietary alloys specified for both models ~50% lower fuel use per seat than last Meets/exceeds all generation1 performance requirements regarding weight, strength
Slide 37: Ma'aden Alcoa Project Progresses On Schedule and Budget
[Alcoa logo] Ma’aden Alcoa Project Progresses On Schedule and Budget Potlines Cathode Sealing Plant Rolling Mill Construction Port Refinery Earth Work 37
Slide 38: Segment Dashboard: Price & Market Pressure Impact Results
[Alcoa logo] Segment Dashboard: Price & Market Pressure Impact Results Alumina: Maintaining 2011 Margins Flat-Rolled Products: European Weakness Adjusted EBITDA $Millions Adjusted EBITDA/MT LME 541 495 479 531 620 536 498 254 224 551 173 193 147 10 Yr Average ~ $66/MT 2,570 2,641 2,572 2,500 2,400 A
Slide 39: Managing Through Uncertainty – Focused on True North
[Alcoa logo] Managing Through Uncertainty – Focused on True North Opportunity in the Face of Uncertainty Meeting our Aggressive Targets Continued Growth End Markets Slow GRP: $2.5b in Revenue Growth by 2013 ($b) In Aluminum Demand In Second Half $1.6 to $1.8 $8.8 $6.3 $6.0 2010 2011 2013 YTD Target
Slide 40: [Alcoa logo]
[Alcoa logo] [Alcoa logo] 40
Slide 41: Additional Information
[Alcoa logo] Additional Information Roy Harvey Director, Investor Relations [Alcoa logo] 390 Park Avenue New York, NY 10022-4608 Telephone: (212) 836-2674 www.alcoa.com 41
Slide 42: Annual Sensitivity Summary
[Alcoa logo] Annual Sensitivity Summary LME Aluminum Annual Net Income Sensitivity +/- $100/ = +/ - $200 Million Currency Annual Net Income Sensitivity Australian $ +/- $10 million per 0.01 change in USD / AUD Brazilian $ +/- $ 3 million per 0.01 change in BRL / USD Euro € +/- $ 2 million per 0.01 c
Slide 43: Revenue Change by Market
[Alcoa logo] Revenue Change by Market Sequential Year-Over-Year 3Q’11 Third-Party Revenue Change Change Aerospace 2% 20% 33% 13% Automotive (7%) 26% 3% B&C (5%) 9% 6% Comm. Transport 6% 44% Industrial Products (6%) 1% 6% IGT 0% 11% 4% Packaging (4%) 21% 2% Distribution/Other (13%) 14% 14% 14% Alumin
Slide 44: Reconciliation of ATOI to Consolidated Net (Loss) Income Attributable to Alcoa
[Alcoa logo] Reconciliation of ATOI to Consolidated Net (Loss) Income Attributable to Alcoa (in millions) 1Q10 2Q10 3Q10 4Q10 201 0 1Q11 2Q11 3Q11 Total segment ATOI $ 306 $ 381 $ 328 $ 409 $ 1,424 $ 555 $ 63 5 $ 462 Unallocated amounts (net of tax): Impact of LIFO (14) (3) (2) 3 (16) (24) (27) 2 In
Slide 45: Reconciliation of Adjusted Income
[Alcoa logo] Reconciliation of Adjusted Income (in millions) Quarter ended Nine months ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, September 30, September 30, 2010 2010 2010 2010 2011 2011 2011 2010 2011 Net (loss) income attributable to Alcoa $ (201) $ 136 $
Slide 46: Reconciliation of Adjusted Income (continued)
[Alcoa logo] Reconciliation of Adjusted Income (continued) (in millions) Quarter ended December 31, March 31, June 30, September 30, December 31, 2008 2009 2009 2009 2009 Net (loss) income attributable to Alcoa $ (1,191) $ (497) $ (454) $ 77 $ (277) (Loss) income from discontinued operations (262) (
Slide 47: Reconciliation of Free Cash Flow
[Alcoa logo] Reconciliation of Free Cash Flow (in millions) Nine months Quarter ended ended March 31, June 30, September 30, September 30, 2011 2011 2011 2011 Cash provided from $ (236) $ 798 $ 489 $ 1,051 operations Capital expenditures (204) (272) (325) (801) Free cash flow $ (440) $ 526 $ 164 $ 2
Slide 48: Reconciliation of Free Cash Flow (continued)
[Alcoa logo] Reconciliation of Free Cash Flow (continued) (in millions) Quarter ended Year ended December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, December 31, 2008 2009 2009 2009 2009 2010 2010 2010 2010 2010 Cash $ 608 $ (271) $ 328 $ 184 $ 1,
Slide 49: Reconciliation of Alcoa Adjusted EBITDA
[Alcoa logo] Reconciliation of Alcoa Adjusted EBITDA ($ in millions) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q10 2Q11 3Q11 Net income (loss) attributable to Alcoa $ 908 $ 420 $ 938 $ 1,310 $ 1,233 $ 2,248 $ 2,564 $ (74) $ (1,151) $ 254 $ 61 $ 322 $ 172 Add: Net income attributable to nonc
Slide 50: Reconciliation of Alumina Adjusted EBITDA
[Alcoa logo] Reconciliation of Alumina Adjusted EBITDA ($ in millions, except 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q10 1Q11 2Q11 3Q11 per metric ton amounts) After-tax operating income (ATOI) $ 471 $ 315 $ 415 $ 632 $ 682 $ 1,050 $ 956 $ 727 $ 112 $ 301 $ 70 $ 142 $ 186 $ 154 Add: Depr
Slide 51: Reconciliation of Primary Metals Adjusted EBITDA
[Alcoa logo] Reconciliation of Primary Metals Adjusted EBITDA ($ in millions, except 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q10 1Q11 2Q11 3Q11 per metric ton amounts ) After-tax operating income (ATOI) $ 905 $ 650 $ 657 $ 808 $ 822 $ 1,760 $ 1,445 $ 931 $ (612) $ 488 $ 78 $ 202 $ 201 $ 1
Slide 52: Reconciliation of Flat-Rolled Products Adjusted EBITDA
[Alcoa logo] Reconciliation of Flat-Rolled Products Adjusted EBITDA ($ in millions, except 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q10 1Q11 2Q11 3Q11 per metric ton amounts) After-tax operating income (ATOI) $ 253 $ 225 $ 222 $ 254 $ 278 $ 233 $ 178 $ (3) $ (49) $ 220 $ 66 $ 81 $ 99 $ 60
Slide 53: Reconciliation of Engineered Products and Solutions Adjusted EBITDA
[Alcoa logo] Reconciliation of Engineered Products and Solutions Adjusted EBITDA ($ in millions) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3Q10 1Q11 2Q11 3Q11 After-tax operating income (ATOI) $ 189 $ 63 $ 124 $ 156 $ 271 $ 365 $ 435 $ 533 $ 315 $ 415 $ 114 $ 130 $ 149 $ 138 Add: Depreciatio
Slide 54: Reconciliation of Alcoa Net Debt
[Alcoa logo] Reconciliation of Alcoa Net Debt (in millions) Quarter ended December 31, June 30, September30, 2008 2011 2011 Short- term borrowings $ 478 $ 65 $ 57 Commercial paper 1,535 – 107 Long - term debt due within one year 56 510 489 Long- term debt, less amount due within one year 8,509 8,773