Slide 1: Recent major changes to improve compensation governance risk
Recent major changes to improve compensation governance risk In 2011 annual equity grants to senior officers are 80% performance based restricted share units and 20% time vested stock options Increased stock ownership requirements (6 X base salary for CEO) Adopted a §162(m) compliant incentive compe
Slide 2: Recent other changes to improve compensation governance risk
Recent other changes to improve compensation governance risk Eliminated remaining tax gross ups: spouse travel (except under the relocation policies) term life insurance provided by the Company to executives accepting a U.S. assignment golden parachute excise tax gross-up for any new participants co
Slide 3: Unprecedented Drop in LME Price at End of 2008
Source: IAI, Bloomberg Unprecedented Drop in LME Price at End of 2008
Slide 4: Strong Year over Year Growth in Key Metrics
Strong Year over Year Growth in Key Metrics Income from Continuing Operations ($M) Free Cash Flow ($M) $559 ($685) $1,246 ($685) ($257)
Slide 5: Results Have Strengthened Liquidity and Financial Positions
Results Have Strengthened Liquidity and Financial Positions
Slide 6: GDP and PPI Change Were Not as Abrupt as Aluminum
GDP and PPI Change Were Not as Abrupt as Aluminum Source: LME, Bloomberg
Slide 7: Metals Experienced Differing Declines and Recoveries
Metals Experienced Differing Declines and Recoveries Source: LME, Bloomberg
Slide 8: Total Shareholder Return: Alcoa vs. Select Aluminum Peers
Total Shareholder Return: Alcoa vs. Select Aluminum Peers Peers include public aluminum companies with market capitalization > $3b: Rusal, Chalco, Norsk Hydro, Alumina Ltd., Nalco, Shandong Nanshan. Peers: -5.9% Alcoa: -3.6%
Slide 9: Marked Improvement in Shareholder Return in 2011
Marked Improvement in Shareholder Return in 2011 Peers: +9.4% Alcoa: +15.7%
Slide 10: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (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, December 31, Cash provided from operations $ 608 $ (271) $ 328 $ 184 $ 1,124 $ 199 $ 300 $ 392 $ 1,370 $ 1,365
Slide 11: Reconciliation of Adjusted Income
Reconciliation of Adjusted Income (in millions) Quarter ended Year ended December 31, March 31, June 30, September 30, December 31, December 31, December 31, Net (loss) income attributable to Alcoa $ (277) $ (201) $ 136 $ 61 $ 258 $ (1,151) $ 254 Loss from discontinued operations (11) (7) (1) – – (1
Slide 12: Reconciliation of Adjusted Income, con't
Reconciliation of Adjusted Income, con’t (in millions) Quarter ended December 31, March 31, June 30, September 30, Net (loss) income attributable to Alcoa $ (1,191) $ (497) $ (454) $ 77 (Loss) income from discontinued operations (262) (17) (142) (Loss) income from continuing operations attributable