Slide 1: 1st Quarter 2010 Earnings Conference
Exhibit99.2 Alcoa Logo Alcoa Logo st 1 Quarter 2010 Earnings Conference April 12, 2010 1
Slide 2: Forward-Looking Statements
Alcoa Logo Forward-Looking Statements Today’s discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. Alcoa’s actual
Slide 3: Chuck McLane, Executive Vice President and CFO
Alcoa Logo Alcoa Logo Chuck McLane Executive Vice President and Chief Financial Officer 3
Slide 4: 1st Quarter 2010 Financial Overview
Alcoa Logo st 1 Quarter 2010 Financial Overview Continued benefits from Cash Sustainability Initiatives COGS % Sales of 82.1%, SGA % Sales of 4.9% EBITDA of $596 million – highest since Q3’08 Loss from continuing operations of $194 million, or $0.19 per share – Restructuring and special items total
Slide 5: Revenue Change by Market
Alcoa Logo Revenue Change by Market Sequential Year-Over-Year 1Q’10 Third Party Revenue Change Change Aerospace 0% (22%) 35% 14% Automotive 5% 40% 5% B&C (6%) (6%) Comm. Transport 39% 18% 6% Industrial Products 34% 58% 2% IGT (21%) (36%) 6% Packaging (32%) (24%) 2% Distribution/Other 1% (18%) 12% 13
Slide 6: Sequential Income Statement Summary
Alcoa Logo Sequential Income Statement Summary $ Millions 4Q’09 1Q’10 Change Sales $5,433 $4,887 ($546) Cost of Goods Sold $4,905 $4,013 ($892) COGS % Sales 90.3% 82.1% (8.2 % pts.) Selling, General Administrative, Other $291 $239 ($52) SGA % Sales 5.4% 4.9% (0.5 % pts.) Restructuring and Other Char
Slide 7: 1st Quarter Restructuring and Special Items
Alcoa Logo st 1 Quarter Restructuring and Special Items After-Tax & Non- Earnings Income Statement $ Millions Controlling Interests Per Share Classification Segment Restructuring Related* ($124) ($0.12) -- -- Discrete Tax Items ($112) ($0.11) Taxes Corporate Special Items: ($59) ($0.06) -- -- Mark-t
Slide 8: 1st Quarter 2010 vs. 4th Quarter 2009 Earnings Bridge
Alcoa Logo st 1 Quarter 2010 vs. 4th Quarter 2009 Earnings Bridge Income (Loss) from Continuing Operations excluding Restructuring & Other Special Items ($ millions) $86 ($101) $121 $41 ($33) ($30) $0 $101 $8 $9 See appendix for reconciliation 8
Slide 9: Sensitivity Summary
Alcoa Logo Sensitivity Summary LME Aluminum Annual Net Income Sensitivity +/- $100/MT = +/- $200 million Currency Annual Net Income Sensitivity +/- 10% versus USD Australian $ +/- $75 million Brazilian $ +/- $50 million Euro € +/- $40 million Canadian $ +/- $35 million 9
Slide 10: Alumina
Alcoa Logo Alumina st st 1 Quarter Highlights 1 Quarter Business Conditions 1Q 09 4Q 09 1Q 10 Realized 3rd party Alumina price up 13% Production (kmt) 3,445 3,897 3,866 Cash sustainability initiative benefits rd Sao Luis power outage negatively impacted cost by 3 Party Shipments (kmt) 1,737 2,716 2,
Slide 11: Primary Metals
Alcoa Logo Primary Metals st st 1 Quarter Highlights 1 Quarter Business Conditions 1Q 09 4Q 09 1Q 10 Realized pricing up 8% Production (kmt) 880 897 889 Positive currency impact of $14 million rd 3 Party Shipments (kmt) 683 878 695 Non-recurrence of Q4 ‘09 non-cash charge rd related to Italy power d
Slide 12: Flat Rolled Products
Alcoa Logo Flat Rolled Products 1st Quarter Highlights 1st Quarter Business Conditions ATOI $ Millions 1Q 09 4Q 09 1Q 10 Improved mix and pricing across every region Global Rolled Products, Decision to curtail sales in RPD drove lower 3 63 47 excl Russia, China & Other volumes Russia, China & Other
Slide 13: Engineered Products and Solutions
Alcoa Logo Engineered Products and Solutions st st 1 Quarter Highlights 1 Quarter Business Conditions $ Millions 1Q 09 4Q 09 1Q 10 ATOI % Sales equal to year ago quarter despite $200M decline in sales driven by strong rd 3 Party Revenue 1,270 1,097 1,074 performance in cash sustainability initiative
Slide 14: 1st Quarter 2010 Cash Flow Overview
Alcoa Logo st 1 Quarter 2010 Cash Flow Overview ($ Millions) 1Q'09 4Q'09 1Q'10 Net Loss (487) ($268) ($179) DD&A 283 369 358 Change in Working Capital 351 522 (336) Pension Contributions (34) (26) (22) Taxes / Other Adjustments (384) 527 378 Cash From Operations (271) $1,124 $199 Dividends to Shareh
Slide 15: We Are Focused on Achieving Our 2010 Goals
We Are Focused on Achieving Our 2010 Goals Procurement reduction of $2.5 billion Overhead reduction of $500 million Capital expenditures of $1.25 billion Days Working Capital reduction of 2 days Driving Positive Free Cash Flow 15
Slide 16: Klaus Kleinfeld, President and Chief Executive Officer
Alcoa Logo Alcoa Logo Klaus Kleinfeld President and Chief Executive Officer 16
Slide 17: Market Conditions in 2010
Alcoa Logo Market Conditions in 2010 Alcoa End Markets: Current Assessment of 2010 vs. 2009 Conditions Source: Alcoa analysis 17
Slide 18: Global Physical Demand to Rise 10% in 2010
Alcoa Logo Global Physical Demand to Rise 10% in 2010 18
Slide 19: Inventories Flat As Stable Demand Drives Premiums Higher
Alcoa Logo Inventories Flat As Stable Demand Drives Premiums Higher Global inventory days of consumption and regional premiums 80 Regional Premium (1-Year Change) LME Midwest 45% 70 Shanghai 66 days of 400% Japan 118% consumption Japan Port Europe 266% $136 / MT 60 Producer 350% 50 300% LME at 47 da
Slide 20: 2010 Primary Aluminum Surplus Is Manageable
Alcoa Logo 2010 Primary Aluminum Surplus Is Manageable (in kmt) China Western World Surplus Surplus 2010 Annualized Run Rate 16,100 2010 Annualized Run Rate 23,150 2010 Restarts or Curtailments 0 2010 Restarts or Curtailments (365) 2010 Brown//Greenfield Expansion 200 2010 Brown/Greenfield Expansion
Slide 21: 2010 Global Alumina in Balance
Alcoa Logo 2010 Global Alumina in Balance 2010E Alumina Supply / Demand Balance (in kmt) Balanced China Western World 2010 Annualized Run Rate 27,000 2010 Annualized Run Rate 51,000 Imports from Western World 5,400 Exports to China (5,400) Supply 32,400 Supply 45,600 Demand (32,400) Demand (45,400)
Slide 22: Significant Value Creation From The Alumina Leader
Alcoa Logo Significant Value Creation From The Alumina Leader Alumina financial and strategic overview Global Refining Cost Curve EBITDA per Metric Ton EBITDA/MT LME 2,570 2,641 2,572 2,136 1,900 2000 2009 1,664 1,719 1,549 [Alcoa Logo] 1,447 1,350 1,433 110 104 Alcoa 81 72 68 75 th 62 25 Percentile
Slide 23: Streamlined Primary Metals Poised to Drive EBITDA
Alcoa Logo Streamlined Primary Metals Poised to Drive EBITDA Primary Metals financial and strategic overview Global Primary Cost Curve EBITDA per Metric Ton EBITDA/MT LME 2009 [Alcoa Logo] Alcoa 45 th Percentile 2000 th 50 Percentile = $1,755/MT Future Capacity Growth Challenged 50 th Percentile = $
Slide 24: Rolled Products Positioned to Substantially Improve Returns
Alcoa Logo Rolled Products Positioned to Substantially Improve Returns Global Flat Rolled Products financial and strategic overview rd 2009 3 Party Sales by Market Segment EBITDA & EBITDA % Sales EBITDA $Millions 75% 573 541 495 479 531 620 536 498 254 224 107 Utilization EBITDA % Sales Packaging 11
Slide 25: EPS Strong Platform for Profitable Growth
Alcoa Logo EPS Strong Platform for Profitable Growth Engineered Products & Solutions financial and strategic overview rd 2009 3 Party Sales by Market Segment EBITDA & EBITDA % Sales EBITDA $Millions 368 436 287 356 495 536 676 783 922 630 152 EBITDA % Sales 70% 15% 14% 12% 12% 13% 13% Utilization 11
Slide 26: Aggressively Pursuing 2010 Operational Targets
Alcoa Logo Aggressively Pursuing 2010 Operational Targets 2010 Cash Sustainability Operational Targets and Actual Performance Procurement Overhead Total Capex* Working Capital $ Millions $ Millions $ Millions Days Working Capital $2,500 $1,250 42 35 $505 $500 $281 $127 2010 2010 2010 2010 2010 2010
Slide 27: Driving Near-term and Long-term Shareholder Value
Alcoa Logo Alcoa Driving Near-term and Long-term Shareholder Value Momentum Execution Growth – End-markets improving – Overhead cost reduction – Global alumina leader target of $500 million leveraging lowest cost – Aluminum demand to rise 10% production base in 2010 – Procurement cost reduction targ
Slide 28: Additional Information
Alcoa Logo Additional Information Matthew E. Garth Director, Investor Relations A 390 Park Avenue New York, NY 10022-4608 Telephone: (212) 836-2674 www.alcoa.com 28
Slide 29: Appendix
Alcoa Logo A Alcoa Logo
Slide 30: Effective Tax Rate
Alcoa Logo Effective Tax Rate $ Millions 1Q’09 (Loss) income from continuing operations before income taxes ($88) Provision for income taxes $84 Effective tax rate as reported (95.5%) Discrete tax provisions: Medicare Part-D $79 Transaction-related - and other items $33 Subtotal - Discrete tax (bene
Slide 31: 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) 1Q09 2Q09 3Q09 4Q09 2009 1Q10 Total segment ATOI $ (143) $ (132) $ 142 $ (101) $ (234) $ 306 Unallocated amounts (net of tax): Impact of LIFO 29 39 80 87 235 (14) Interest income 1 8 (1) 4 12 3 In
Slide 32: Reconciliation of Alcoa EBITDA
Alcoa Logo Reconciliation of Alcoa EBITDA Quarter ended March 31, (in millions) 2010 Net loss attributable to Alcoa $ (201) Add: Net income attributable to noncontrolling interests 22 Loss from discontinued operations 7 Provision for income taxes 84 Other expenses, net 21 Interest expense 118 Restru
Slide 33: Reconciliation of Adjusted Income
Alcoa Logo Reconciliation of Adjusted Income (in millions) Quarter ended December 31, March 31, 2009 2010 Net loss attributable to Alcoa $ (277) $ (201) Loss from discontinued operations (11) (7) Loss from continuing operations attributable to Alcoa (266) (194) Restructuring and other charges 49 119
Slide 34: Reconciliation of Alumina EBITDA
Alcoa Logo Reconciliation of Alumina EBITDA ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 Alumina After-tax operating income (ATOI) $ 585 $ 471 $ 315 $ 415 $ 632 $ 682 $ 1,050 $ 956 $ 727 $ 112 $ 72 Add: Depreciation, depletion, and amortization 163 144 139 147 153 172 192 2
Slide 35: Reconciliation of Primary Metals EBITDA
Alcoa Logo Reconciliation of Primary Metals EBITDA ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 Primary Metals After-tax operating income (ATOI) $ 1,000 $ 905 $ 650 $ 657 $ 808 $ 822 $ 1,760 $ 1,445 $ 931 $ (612) $ 123 Add: Depreciation, depletion, and amortization 311 327
Slide 36: Reconciliation of Flat-Rolled Products EBITDA
Alcoa Logo Reconciliation of Flat-Rolled Products EBITDA ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 Flat-Rolled Products After-tax operating income (ATOI) $ 296 $ 253 $ 225 $ 222 $ 254 $ 278 $ 233 $ 178 $ (3) $ (49) $ 30 Add: Depreciation, depletion, and amortization 153
Slide 37: Reconciliation of Engineered Products and Solutions EBITDA
Alcoa Logo Reconciliation of Engineered Products and Solutions EBITDA ($ in millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 Engineered Products and Solutions After-tax operating income (ATOI) $ 125 $ 189 $ 63 $ 124 $ 156 $ 271 $ 365 $ 435 $ 533 $ 315 $ 81 Add: Depreciation, depletio