Alcoa Corporation · NYSE:AA
Alcoa — Shareholder Meeting (May 2014)
43 slides from Alcoa's shareholder meeting presentation, May 2, 2014
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 2, 2014
Slide 2: Safety instructions
Slide 3: Welcome and Call Meeting to Order
a Welcome and Call Meeting to Order — Klaus Kleinfeld, Chairman and Chief Executive Officer = Introduce Alcoa Directors = Introduce Executive Council u Items of Business — Audrey Strauss, Executive Vice President, Chief Legal Officer and Secretary = Voting / Preliminary Results of Voting — Audrey St
Slide 4: Directors standing for re-election
Directors standing for re-election Klaus Kleinfeld Chairman and CEO Alcoa Inc. Director since 2003 James W. Owens Former Chairman and CEO Caterpillar Inc. Director since 2005 Sir Martin Sorrell Ratan N. Tata Founder, CEO and Director Chairman Emeritus WPP plc Tata Sons Limited Director since 2012 Di
Slide 5: Directors
Directors Kathryn S. Fuller Chair, Smithsonian National Museum of Natural History Director since 2002 Judith M. Gueron President Emerita MDRC Lead Director Director since 1988 Patricia F. Russo Former CEO, Alcatel-Lucent Director since 2008 Dn Scholar in Residence and Ernesto Zedillo Director, Yale
Slide 6: Directors
Directors Arthur D. Collins, Jr. Former Chairman and CEO Medtronic, Inc. Director since 2010 Michael G. Morris Former Chairman and President and CEO American Electric Power Company, Inc. Director since 2008 E. Stanley O'Neal Carol L. Roberts Former Chairman and CEO Senior Vice President and CFO Merr
Slide 7: Executive Council
Executive Council Libby Archell Michael Barriere John Bergen Graeme Boitger Daniel Cruise Leigh Ann Fisher Ken Giacobbe Roy Harvey Olivier Jarrault Christian Jepsen Ray Kilmer Klaus Kleinfeld Gerhard Kschwenat Kay Meggers Glenn Miller William Oplinger Eric Roegner Audrey Strauss Robert Wilt Kenneth
Slide 8: Items of business
Items of business Election of the Four Named Director Nominees to Serve a Three-Year Term Ratification of PricewaternouseCoopers LLP as the Company’s Independent Registered Public Accounting Firm for 2014 Approval on an Advisory Basis of Executive Compensation Shareholder Proposal (Executives to Ret
Slide 9: Voting and preliminary results of voting
Voting and preliminary results of voting BH Opening of voting polls BH Ballots HB Closing of voting polls BH Preliminary results
Slide 10: 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 11: Klaus Kleinfeld
Klaus Kleinfeld Chairman and Chief Executive Officer Annual Meeting of Shareholders May 2, 2014
Slide 12: Best safety performance - EVER
Best safety performance - EVER Alcoa annual safety performance Alcoa Incident Rates 10.0 9.05 === Total Recordable Incident Rate === Days Away, Restricted and Transfer (DART) Rate 8.0 5 6.0 2 co D 3 2 4.0 2.0 0.35 0.0 r , r : , r r T r r T r 7 } coe > SP S > S ¢ a g $ & s © Year
Slide 13: More Volunteerism and Great Recognition
More Volunteerism and Great Recognition Increasing volunteer participation Reputation for sustainability FORTUNE 60% 62% 0, T 49% 56% WORLDS MOST =— #4 Fortune Most Admired 37% 24% ADMIRED Metals Company COMPANIES = 33,400 29,300 22,800 i E 100 Best Companies to Work For in Brazil — 11 consecutive y
Slide 14: Advancing each generation; Alcoa's transformation
Advancing each generation; Alcoa’s transformation Invented Aluminum Multi-Material Solutions
Slide 15: Shift to Value-Add business mix is paying off
Shift to Value-Add business mix is paying off After-tax operating income (ATO!) by segment (% of total ATO/) Value-Add Businesses: = 57% of Revenue = 80% of Segment Profit 100% 100% 2003 2013 Source: Alcoa analysis EPS: Engineered Products and Solutions; GRP: Global Rolled Products; GPP: Combined Al
Slide 16: Breakdown of 2013 Alcoa value-add revenue by market
Breakdown of 2013 Alcoa value-add revenue by market ($B), with Global end markets assessment Revenues: $13.1B Commercial Building & Construction Industrial Products Packaging Aerospace Automotive Commercial Transportation North America Europe China Global Aerospace 8% to 9% sales growth 7 . 2% to 5%
Slide 17: Alcoa Blue flies from Nose to Tail on Metallic-Intensive Aircraft
Alcoa Blue flies from Nose to Tail on Metallic-Intensive Aircraft... || Current i Future Alcoa content on Metallic aircraft Vertical stabilizer fasteners Auxiliary power unit Wing tips exhaust ducts a Fuselage to ‘nig Fuselage - stringers connection Seat wing frames stringers Crown frames Hydraulic
Slide 18: Strong position on Carbon Fiber (CFRP) intensive Aircraft
...and has a strong position on Carbon Fiber (CFRP) intensive Aircraft . Nacelle Alcoa content on CFRP aircraft Latches Shrouds / Seals LA ° \ Damper High Pressure es Huck js Airfoils Threaded Lockbolts ey tluckCome compacta Housing / cKO) Casings ~ Low Pressure Stabilizer Attach Airfoils Flite-Tite
Slide 19: Global leader in aerospace
Global leader in aerospace fastening systems Both airframe and engine applications ~40% titanium, ~25% steel and ~35% nickel alloys Innovative Fastening Systems 2013 Revenue: $4.0B Advanced Aerospace Structures 2 Aluminum sheet, plate and extrusions Aluminum and titanium forgings Structural castings
Slide 20: Flying high on every Large Commercial Aircraft
Flying high on every Large Commercial Aircraft, regardless of material Alcoa Indexed Revenue by aircraft type Aircraft Type Alcoa Revenue! Aircraft (Indexed to B737) A320 (coves 3X the shipset vale rrr oe on 787 vs. 737 S3303400 0 EES. A350 * Over 80% higher es on 787 vs. 767 A380 B737 * Over 2X the
Slide 21: Alcoa's Content runs from Bumper to Bumper in Automotive
Alcoa’s Content runs from Bumper to Bumper in Automotive Alcoa participation in automotive parts HB current Paricip ps se Decklid i Future Side Panel Outer _gZ “ig gl ZA yo Fasteners Hood (sheet) Body Inner Structure ‘ SS Drive Shaft Radiator ¥ ‘drawn tube) (brazing sheet) y, Door Inner Engine Block
Slide 22: 1994 to Today: Audi aluminum space frame
1994 to Today: ~700,000 Aluminum Space Frame Audi's
Slide 23: Ford F-150 aluminum body
2013: ~700,000 F-150s ¥ Military-grade aluminumalloys in body and bed Produced ¥ As muchas 700 Ibs. lighter than its predecessor Y Accelerates, brakes, tows and resists corrosion like never before Source: Ford Motor Company website “With my background in aerospace and commercial airplanes, aluminum
Slide 24: Automotive: Historic shift to vehicle Lightweighting
Automotive: Historic shift to vehicle Lightweighting Projected aluminum content per vehicle, Alcoa automotive growth projects and Alcoa auto sheet revenue North America Aluminum Body Sheet Content Per Vehicle (in Ibs) GS Actual [Projected 136 ime a 2012 2015 2025 ‘Source: Ducker Worldwide = ~$300M i
Slide 25: Covering the Rig from Top to Bottom
Alcoa hauls it farther; Covering the Rig from Top to Bottom Alcoa content on truck and trailer Magna-Lok® Forged Fifth Wheel Tank Huck Magna-Grip ® P (Tipper, Flatbed) HuckLok® : || Current i Future Cab Structure and Doors Frame Rails Cross Members/ Huck Bobtail ® Fasteners \ Drive Shaft \ (Drawn Tu
Slide 26: Commercial Vehicle Wheels
Commercial Vehicle Wheels 2013 Revenue: $1.3B Rolled Products Undisputed market leader Enabled by Alcoa proprietary alloys 100% aluminum Aluminum sheet and plate Tank, tipper, flatbed, locomotive and bus applications ~98% aluminum, and ~2% super alloys 20% $260M Industrial fasteners for truck, trail
Slide 27: Re-Inventing the Wheel: Lighter & Brighter
Re-Inventing the Wheel: Lighter & Brighter Most innovative solutions for improved truck fuel efficiency and lowered maintenance cost Heavy duty without the “Heavy”: Ultra ONE™ Improved fuel efficiency = New 17% Stronger Proprietary MagnaForce™ Alloy = World's Lightest wheel at 40 pounds = 47% Lighte
Slide 28: Packaging: Differentiated products on your shelf and in your cooler
Packaging: Differentiated products on your shelf and in your cooler Alcoa content in packaging products Aluminum can Pet food can Aseptic Packaging Aluminum bottle and Shaped Cans Tab stock End stock Food can sheet Re-closableend ———e Foil Body stock kagi packaging Shaping \ \ technology Aluminum sh
Slide 29: Re-Packaging Midstream Portfolio
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 on And adds more differentiation to the mix Mate * Patented bottle technology = $40 mi
Slide 30: Building & Construction Systems: Green Buildings start with Alcoa
Building & Construction Systems: Green Buildings start with Alcoa Alcoa content on non-residential buildings Reynolux® Kawneer Window Wall Systems Kawneer Roofing Curtain Wall Systems } *Thermal Sunshades/ Panels + Thermal Light Shelves : + Ultra thermal id ——| | “Blast mitigation Kawneer Windows *
Slide 31: Alcoa delivers in a world demanding Energy-Efficient Buildings
Alcoa delivers in a world demanding Energy-Efficient Buildings Alcoa solutions for U.S. commercial building and construction requirements vs. EU Building Facts'*2) Annual Electricity Consumption by Buildings (%) 15% pts reduction in U.S. consumption equals ~$58B in annual savings®) Thermal Performan
Slide 32: Mining, Refining, Smelting, Casting, Energy
MINING ” REFINING SMELTING CASTING ENERGY
Slide 33: Alumina: Elevating an upstream Jewel
Alumina: Elevating an upstream Jewel; delinking from Al fundamentals 2013 Global alumina cost curve and Alumina Price Index (API) conversion geting 21° percentile by 2016 Continuing to convert to API/spot pricing S/MT / -9% points > ALUMINA \ by 2016 ) APl/spot as a % of third party shipments 500 4
Slide 34: Aluminum: Reshaping our portfolio while growing Value-Add margin
Aluminum: Reshaping our portfolio while growing Value-Add margin Targeting 38" percentile by 2016 Creating value with Casthouse shape products S/MT 3,000 4 2,500 4 2,000 4 1,500 yen 2013 Global aluminum cost curve and casthouse value-add margin (13% points ») ALUMINUM \ by2016 / 2013: — 43" Percenti
Slide 35: Upstream Restructuring advances Transformation
Upstream Restructuring advances Transformation Bridge of Total Smelting Operating Capacity 2007 to 1Q 2014, kmt -28% =1,157kmt -344 ’ — aE +234 -239 Rockdale:-267 = mrs a ? Be Comeau: 3 if z - Portovesme: -150 -253 land: -’ usina: -. % : Tennessee: -215 Spanish system: -90 Le] Other: -9 Massena East
Slide 36: Saudi Arabia JV Progressing as Planned
¢ audi Arabia JV Progressing as Planned - Saudi Arabia JV construction update Smelter = 190 kmt production in 2013 = 550 kmt production in 2014 = At full capacity in 2014 = Lowest cost smelter = 2% point reduction on the smelting cost curve Rolling Mill = Firsthot coil in 4Q 2013 = First auto coil i
Slide 37: Saudi Arabia JV Update
_ Saudi Arabia JV Update
Slide 38: Disciplined Execution drives Productivity and generates Cash
Disciplined Execution drives Productivity and generates Cash Year-over-year productivity savings and quarterly days working capital Disciplined Execution drives $1.1B Productivity Reducing DWC by 45% since 1Q 2009 Year-over-year productivity savings, $M* Average Days Working Capital since first quar
Slide 39: Stronger Balance Sheet; contributing Cash to Pension and OPEB
Stronger Balance Sheet; contributing Cash to Pension and OPEB Cash, Debt & Pension and Other Postretirement Benefit (OPEB) Contributions ($ Millions) Debt, Net Debt, and Debt-to-Capital % fiicash Hi net Debt 9,165 9,371 1,939 Debt to Cap 8,829 8,319 2008 2009 2010 2011 2012 2013 While contributing c
Slide 40: Alcoa's total shareholder return Outperforming
Alcoa’s total shareholder return Outperforming; Up 58% since YE 2012 Alcoa 60% Alcoa 57.8% Aluminum Peers -0.6% S&P 500 Materials 30.3% S&P 500 30% | ‘ Materials A ae \: 0% (Aen : . : _ Aluminum Peers -30% gh se ge se oY st oe ow ce s ow a ‘a market capitalization of Norsk Hydro ASA, Alumina Limite
Slide 41: Appendix
Advancing each generation. ALCOA
Slide 42: Days Working Capital reconciliation
rking Capital ($ in millions) March 31, 2012 2013 2014 Receivables from customers, less allowances $1,709 $1,704 $1,391 Add: Deferred purchase price receivable* 85 50 238 Receivables from customers, less allowances, as adjusted 1,794 1,754 1,629 Add: Inventories 3,079 2,961 2,974 Less: Accounts paya
Slide 43: Reconciliation of Net Debt
Reconciliation of Net Debt ($ in millions) December 31, 2008 2009 010 2010 2012 2013 Short-term borrowings $478 $176 $92 $62 $53 $57 Commercial paper 1,535 0 0 224 0 0 Long-term debt due within one year 56 669 231 445 465 655 Long-term debt, less amount due within one year 8,509 8,974 8,842 8,640 8,