Slide 1: 1st Quarter Earnings Conference
Exhibit 99.2 [Alcoa logo] 1st Quarter Earnings Conference April 8, 2014 1
Slide 2: Cautionary Statement
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,” “forecasts,”
Slide 3: Solid results in the first quarter – Transformation accelerates
Solid results in the first quarter – Transformation accelerates 1Q 2014 Overview Strong earnings (excluding special items) increase sequentially – Downstream: Record performance - ATOI up 9% YoY Strong – Midstream: Earnings rebound - ATOI nearly triples QoQ; record auto revenue Operational – Upstrea
Slide 4: William Oplinger
[Alcoa logo] William Oplinger Executive Vice President and Chief Financial Officer April 8, 2014 4
Slide 5: Income Statement Summary
Income Statement Summary Prior Year Sequential $ Millions, except aluminum prices and per-share amounts 1Q13 4Q13 1Q14 Change Change Realized Aluminum Price ($/MT) $2,398 $2,157 $2,205 ($193) $48 Revenue $5,833 $5,585 $5,454 ($379) ($131) Cost of Goods Sold $4,847 $4,708 $4,495 ($352) ($213) COGS %
Slide 6: Special Items
Special Items Income Statement $ Millions, except per-share amounts 4Q13 1Q14 Segment Classification Net Loss from Continuing Operations ($2,339) ($178) Net Loss Per Diluted Share ($2.19) ($0.16) Corporate / 1 Restructuring/COGS/ Restructuring-Related ($302) ($296) Other Expenses (Income), Net Prima
Slide 7: Performance more than offsets cost headwinds and market impacts
Performance more than offsets cost headwinds and market impacts See appendix for Adjusted Income reconciliation o[Alcoa logo] 7
Slide 8: LME drives Y-O-Y earnings decline; net productivity is positive
LME drives Y-O-Y earnings decline; net productivity is positive See appendix for Adjusted Income reconciliation o[Alcoa logo] 8
Slide 9: EPS generates record 1Q ATOI and EBITDA Margin
EPS generates record 1Q ATOI and EBITDA Margin 1Q14 Actual and 2Q14 Outlook – Engineered Products and Solutions st st 1 Quarter Results 1 Quarter Business Highlights 1Q 13 4Q 13 1Q 14 Revenue up 3% sequentially driven by share gains across all markets rd Record 1Q ATOI and EBITDA margin 3 Party Reve
Slide 10: GRP nearly triples profitability from productivity and higher mill utilization
GRP nearly triples profitability from productivity and higher mill utilization 1Q14 Actual and 2Q14 Outlook – Global Rolled Products st st 1 Quarter Results 1 Quarter Business Highlights 1Q 13 4Q 13 1Q 14 Record automotive sheet revenue– continued high shipments rd Pricing and volume pressures in Pa
Slide 11: Alumina pricing and productivity drive highest 1Q ATOI since 2011
Alumina pricing and productivity drive highest 1Q ATOI since 2011 1Q14 Actual and 2Q14 Outlook – Alumina st st 1 Quarter Results 1 Quarter Business Highlights 1Q 13 4Q 13 1Q 14 Sixth straight quarter of increased profits; highest 1Q ATOI since 2011, $74M before Surgold sale gain Production (kmt) 3,9
Slide 12: Primary Metals aggressively executing portfolio actions
Primary Metals aggressively executing portfolio actions 1Q14 Actual and 2Q14 Outlook – Primary Metals st st 1 Quarter Results 1 Quarter Business Highlights 1Q 13 4Q 13 1Q 14 Two fewer days in the quarter reduce volume by $8M sequentially Production (kmt) 891 866 839 rd Regional premiums, mix and pro
Slide 13: Two day year-over-year improvement in average DWC
Two day year-over-year improvement in average DWC Average Days Working Capital since First Quarter 2009 55 51 25 days; 47 44 $1.6 Billion 42 43 40 40 40 37 37 36 36 34 35 32 31 30 29 30 28 See appendix for days working capital reconciliation o[Alcoa logo] 13
Slide 14: 1st Quarter Cash Flow Overview
st 1 Quarter Cash Flow Overview 1Q13, 4Q13 & 1Q14 Cash Flow ($ Millions) 1Q13 4Q13 1Q14 Net Income before Noncontrolling Interests $170 ($2,310) ($197) DD&A $361 $350 $340 Change in Working Capital ($323) $522 ($687) Pension Contributions ($83) ($108) ($91) Other Adjustments ($195) $2,466 $84 Cash f
Slide 15: Lowest debt since 3Q 2007; Debt-to-Cap down to target range
Lowest debt since 3Q 2007; Debt-to-Cap down to target range Debt, Net Debt, and Debt-to-Capital % (millions) Cash Net Debt Debt to Cap 10,578 762 9,819 9,165 9,371 1,481 8,829 8,319 1,543 1,939 7,747 1,861 1,437 665 42.5% 9,816 38.7% 38.1% 34.9% 35.3% 35.0% 8,338 34.8% 7,622 7,432 6,882 7,082 6,968
Slide 16: Aggressive targets drive growth and operational performance in 2014
Aggressive targets drive growth and operational performance in 2014 2014 Annual Financial Targets Drive Productivity Gains of $850M Deliver Process productivity Operational Procurement savings Performance Overhead cost reductions Invest in the Build Value-Add with Growth Capital of $500M Future; Act
Slide 17: Robust demand continues; regional premiums at record levels
Robust demand continues; regional premiums at record levels Global Aluminum Demand Growth at 7% Aluminum Deficit Emerging Inventory is Stable High Regional Premiums See appendix for full scale charts o[Alcoa logo] 17
Slide 18: Klaus Kleinfeld
[Alcoa logo] Klaus Kleinfeld Chairman and Chief Executive Officer April 8, 2014 18
Slide 19: 2014 Market Conditions remain solid
2014 Market Conditions remain solid Alcoa End Markets: Current Assessment of 2014 vs. 2013 North America Europe China Global Aerospace 8% to 9% sales growth Automotive 2% to 5% 0% to 4% 6% to 10% 1% to 4% prod growth prod growth prod growth prod growth Heavy Truck & 5% to 9% 1% to 5% -1% to 3% -1% t
Slide 20: More to Alcoa than meets the eye, exciting Value-Add Portfolio
More to Alcoa than meets the eye, exciting Value-Add Portfolio 2013 Alcoa value-add revenue by market ($B) Aerospace Revenues: $13.1B Commercial Building and Other Construction 0.6 1.5 Aerospace 4.0 Industrial Products 1.8 0.8 Automotive 3.1 1.3 Packaging Commercial Transportation Source: Alcoa anal
Slide 21: $4B Aerospace Portfolio; Multi-material Innovation Leader
$4B Aerospace Portfolio; Multi-material Innovation Leader Innovative Fastening Systems Advanced Aerospace Structures 31% $1.23 43% Global leader in aerospace $1.74 Aluminum sheet, plate and fastening systems extrusions Both airframe and engine Aluminum and titanium forgings applications 26% Structur
Slide 22: Re-Inventing the Wheel: Lighter & Brighter
Re-Inventing the Wheel: Lighter & Brighter Most innovative solutions for improved truck fuel efficiency and lowered maintenance cost Customer needs Alcoa’s Innovation Leadership is on a roll Heavy duty without the “Heavy”: Ultra ONE™ Improved fuel efficiency New 17% Stronger Proprietary MagnaForce™
Slide 23: Growth for the long haul, winning out of the gate with Ultra ONE
Growth for the long haul, winning out of the gate with Ultra ONE™ Global commercial vehicle wheel market and customer conversion to Ultra ONE™ Al gaining ground in a growing market Undisputed market leader, deep customer reach Global Commercial Vehicle Wheel Market ($B) and Penetration Rates¹ Over 1
Slide 24: Auto going aluminum: From Audi A100 in 1985…
Auto going aluminum: From Audi A100 in 1985… 1994 to Today: ~700,000 Aluminum Space Frame Audi’s Source: Audi o[Alcoa logo] 24
Slide 25: …to 2015: going Mass-Market with the Ford F-150
2013: …to 2015: going Mass-Market with the Ford F-150 ~700,000 F-150s Military - grade aluminum alloys in body and bed Produced As much as 700 lbs. lighter than its predecessor Accelerates, brakes, tows and resists corrosion “With my background in aerospace and like never before Source: Ford Motor C
Slide 26: Capitalizing on our Leading Position as Auto goes Lightweight
Capitalizing on our Leading Position as Auto goes Lightweight Projected aluminum content per vehicle, Alcoa automotive growth projects and Alcoa auto sheet revenue Increasing Aluminum Intensity Positioned to Capture Growth 6X Revenue Increase by 2018 North America Aluminum Body Sheet Projected Alcoa
Slide 27: Re-Packaging Midstream Portfolio: Shifting mix to Grow Value-Add
Re-Packaging Midstream Portfolio: Shifting mix to Grow Value-Add Bud Light re-closable aluminum bottle, investment in aseptic foil packaging and closure of Australia RM facilities Alcoa puts a cool twist on a cold one… …And adds more differentiation to the mix… $40 million Specialty Packaging Inner
Slide 28: Upstream Restructuring advances Transformation
Upstream Restructuring advances Transformation Bridge of Total Smelting Operating Capacity(1) 2007 to 1Q 2014, kmt -28% =1,157kmt 4,121 -344 +234 -239 -198 Rockdale: -267 +61 Baie Comeau: -53 Portovesme: -150 -253 Portland: -15 Fusina: -32 Spanish system: -90 Tennessee: -215 Other: -9 Other: +93 Mas
Slide 29: Saudi Arabia JV Progressing as Planned - World's Lowest Cost
Saudi Arabia JV Progressing as Planned - World’s Lowest Cost Saudi Arabia JV construction update Phase 1 Phase 2 Smelter Rolling Mill Refinery Mine 190 kmt production in 2013 First hot coil in 4Q 2013 First alumina 4Q 2014 On track to provide 550 kmt production in 2014 First auto coil in 4Q 2014 Low
Slide 30: Alcoa's Transformation Accelerates
Alcoa’s Transformation Accelerates Accelerating launch of Innovative Products; Applying the Alcoa Advantage Building out Alcoa’s Value-Add Businesses; Capturing growing Demand Lowering Upstream Cost Base o[Alcoa logo] 30
Slide 31: Advancing each generation.
Advancing each generation. ofAlcoa logo]
Slide 32: Additional Information
Additional Information Kelly Pasterick Director, Investor Relations Alcoa 390 Park Avenue New York, NY 10022-4608 Telephone: (212) 836-2674 www.alcoa.com o[Alcoa logo] 32
Slide 33: Annual Sensitivity Summary
Annual Sensitivity Summary LME Aluminum Annual Net Income Sensitivity +/- $100/MT = +/- $240 million Currency 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
Slide 34: Revenue Change by Market
Revenue Change by Market Sequential Year-Over-Year 1Q’14 Third-Party Revenue Change Change Aerospace 2% 1% 26% 19% Automotive 3% 5% B&C (1%) 2% Comm. Transport 7% 9% 4% Industrial Products 11% (6%) 7% IGT (14%) (23%) 6% Packaging (0%) (9%) 15% Distribution/Other (29%) (5%) 8% 1% 12% Alumina 2% 2% 2%
Slide 35: Special Items
Special Items Pre-tax, Before NCI After-tax, After NCI Income Statement $ Millions, except per-share amounts 4Q13 1Q14 4Q13 1Q14 Classification Segment Net Loss from Continuing Operations ($1,998) ($274) ($2,339) ($178) Net Loss Per Diluted Share ($1.87) ($0.25) ($2.19) ($0.16) Restructuring/COGS/ C
Slide 36: Composition of Regional Premium Pricing Convention
Composition of Regional Premium Pricing Convention 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 o[Alcoa logo] 36
Slide 37: Alcoa smelting closures and curtailments when announced actions are complete
Alcoa smelting closures and curtailments when announced actions are complete Alcoa smelting capacity closures, since Dec 2007 Alcoa smelting capacity curtailments Location Year kmt Location kmt Baie Comeau 2008 53 Rockdale 191 Eastalco 2010 195 Sao Luis (1) 182 Badin 2010 60 Portovesme 150 Warrick 2
Slide 38: Reconciliation of ATOI to Consolidated Net Income (Loss) Attributable to Alcoa
Reconciliation of ATOI to Consolidated Net Income (Loss) Attributable to Alcoa (in millions) 1Q13 2Q13 3Q13 4Q13 2013 1Q14 Total segment ATOI $ 351 $ 304 $ 338 $ 224 $ 1,217 $ 325 Unallocated amounts (net of tax): Impact of LIFO (2) 5 9 40 52 (7) Interest expense (75) (76) (70) (73) (294) (78) Nonco
Slide 39: Reconciliation of Adjusted Income
Reconciliation of Adjusted Income (in millions, except per- share amounts) Income (Loss) Diluted EPS Quarter ended Quarter ended March 31, December 31, March 31, March 31, December 31, March 31, 2013 2013 2014 2013 2013 2014 Net income (loss) attributable to Alcoa $ 149 $ (2,339) $ (178) $ 0.13 $ (2
Slide 40: Reconciliation of Alcoa Adjusted EBITDA
Reconciliation of Alcoa Adjusted EBITDA ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q13 4Q13 1Q14 Net income (loss) attributable to Alcoa $ 938 $ 1,310 $ 1,233 $ 2,248 $ 2,564 $ (74) $(1,151) $ 254 $ 611 $ 191 $(2,285) $ 149 $(2,339) $ (178) Add: Net income (loss) attribu
Slide 41: Reconciliation of Alumina Adjusted EBITDA
Reconciliation of Alumina Adjusted EBITDA ($ in millions, except per metric ton amounts) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q13 4Q13 1Q14 After-tax operating income (ATOI) $ 415 $ 632 $ 682 $ 1,050 $ 956 $ 727 $ 112 $ 301 $ 607 $ 90 $ 259 $ 58 $ 70 $ 92 Add: Depreciation, deplet
Slide 42: Reconciliation of Primary Metals Adjusted EBITDA
Reconciliation of Primary Metals Adjusted EBITDA ($ in millions, except per 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q13 4Q13 1Q14 metric ton amounts) After-tax operating income (ATOI) $ 657 $ 808 $ 822 $ 1,760 $ 1,445 $ 931 $ (612) $ 488 $ 481 $ 309 $ (20) $ 39 $ (35) $ (15) Add: Dep
Slide 43: Reconciliation of Global Rolled Products Adjusted EBITDA
Reconciliation of Global Rolled Products Adjusted EBITDA ($ in millions, except 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q13 4Q13 1Q14 per metric ton amounts) After-tax operating income (ATOI) $ 232 $ 223 $ 232 $ 290 $ 300 $ 317 $ 151 $ (41) $ (106) $ 241 $ 260 $ 346 $ 252 $
Slide 44: Reconciliation of Engineered Products and Solutions Adjusted EBITDA
Reconciliation of Engineered Products and Solutions Adjusted EBITDA ($ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q13 4Q13 1Q14 After-tax operating income (ATOI) $ 126 $ 161 $ 276 $ 382 $ 423 $ 522 $ 311 $ 419 $ 537 $ 612 $ 726 $ 173 $ 168 $ 189 Add: Depreciation, depletion
Slide 45: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (in millions) Quarter ended September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 Cash from operations $ 489 $ 1,142 $ (236) $ 537 $ 263
Slide 46: Reconciliation of Free Cash Flow, con't
Reconciliation of Free Cash Flow, con’t (in millions) Quarter ended December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 Cash from operations $ 608 $ (271) $ 328 $ 184 $ 1,12
Slide 47: Days Working Capital
Days Working Capital ($ in millions) Quarter ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, March 31, 2012 2012 2012 2012 2013 2013 2013 2013 2014 Receivables from customers, less allowances $ 1,709 $ 1,650 $ 1,600 $ 1,573 $ 1,704 $ 1,483 $ 1,427 $
Slide 48: Reconciliation of Net Debt
Reconciliation of Net Debt (in millions) December 31, March 31, 2008 2009 2010 2011 2012 2013 2014 Short-term borrowings $ 478 $ 176 $ 92 $ 62 $ 53 $ 57 $ 53 Commercial paper 1,535 – – 224 – – – Long-term debt due within one year 56 669 231 445 465 655 85 Long-term debt, less amount due within one y
Slide 49: Reconciliation of Net Debt-to-Capital
Reconciliation of Net Debt-to-Capital ($ in millions) December 31, 2013 March 31, 2014 Cash and Cash Net Debt-to- Cash and Cash Net Debt-to- Debt-to-Capital Equivalents Capital Debt-to-Capital Equivalents Capital Total Debt Short-term borrowings $ 57 $ 53 Long-term debt due within one year 655 85 Lo
Slide 50: Composition of Upstream Production Costs
Composition of Upstream Production Costs Refining Cost Structure Smelting Cost Structure 1Natural gas information corresponds to Point Comfort, as Australia is priced on a rolling 16 quarter average o[Alcoa logo] 50
Slide 51: 2014 global aluminum demand growth continues
2014 global aluminum demand growth continues Russia 2014 Primary Aluminum Consumption (mmt), Annualized Growth (%) Brazil 1.0 4% Other * 1.1 5% 2.0 4% MENA 2.0 8% SE Asia 2.0 8% India 2.1 5% North Asia 4.2 3% 2014 demand +7% North America 6.4 5% World ex China +4% Europe 6.6 2% China 25.2 10% 2014E
Slide 52: Alumina surplus persists, global metal deficit emerging
Alumina surplus persists, global metal deficit emerging Supply/Demand Analysis 2014E Alumina Supply/Demand Balance 2014E Aluminum Supply/Demand Balance 4Q13 4Q13 SURPLUS Surplus DEFICIT Surplus 1,996 2,257 (730) 106 ’000 mt China Rest of World ’000 mt China Rest of World 2014 Production 42,200 54,13
Slide 53: Global inventories increase as China stocks rise, ROW declining
Global inventories increase as China stocks rise, ROW declining Global Inventories vs. LME Price Over Time $ Source: Alcoa estimates, IAI, LME, Marubeni, Shanghai Metal Exchange o[Alcoa logo] 53
Slide 54: Regional premiums move higher
Regional premiums move higher $ per metric Regional Premiums over time $ per metric ton ton $500 $500 Region End of 1Q 14 $450 $450 Europe $360/MT $400 Japan $371/MT $400 $350 Midwest USA $409/MT $350 $300 $300 $250 $250 $200 1Q 14 vs. 1Q 13 $200 $150 Change $150 Europe 20% $100 $100 Japan 33% $50 M