Alcoa Corporation · NYSE:AA
Alcoa — Nomura Aluminum Seminar (June 2011)
19 slides from Alcoa's conference presentation, Jun 2, 2011
Slide 1: Nomura Aluminum Seminar
Nomura Aluminum Seminar June 2 , Exhibit 99 Alcoa Logo nd
Slide 2: Cautionary Statement
Cautionary Statement Alcoa Logo Forward-Looking Statements This presentation contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements incl
Slide 3: Perspective: viewpoint of presentation
Perspective : viewpoint of presentation Differentiation: and what makes us special Looking Back: sustainably improving our cost structure Looking Forward: setting rigorous 3- to 5-year goals Alcoa Logo
Slide 4: Differentiation: Alcoa and what makes us special
Differentiation: Alcoa and what makes us special Perspective: viewpoint of presentation Looking Back: sustainably improving our cost structure Looking Forward: setting rigorous 3- to 5-year goals Alcoa Logo
Slide 5: Alcoa: long-lasting, global and focused on delivering value
Alcoa: long-lasting, global and focused on delivering value Number of Employees (2010) Founded in 1888 200+ locations 31 countries $21.0 billion 2010 revenue 10 times safer workplace than US average Award-winning sustainability leadership 120 years of aluminum technical leadership U.S. 24,000 Europe
Slide 6: Building a solid foundation and setting the right standard
Building a solid foundation and setting the right standard Embracing diversity & talent to live our values… …conserving natural resources… …innovating continuously… …and creating impacts through our values. Renewable Energy Carbon Sequestration Carbothermic CO 2 Reductions
Slide 7: Aluminum: the miracle metal
Aluminum: the miracle metal Lightweight Recyclable Non corrosive Fuel efficient Durable High strength Highly conductive Malleable
Slide 8: Slide 8
Slide 9: Upstream portfolio: bauxite, alumina, aluminum and energy
Upstream portfolio: bauxite, alumina, aluminum and energy Mining Refining Smelting Energy #1 in Bauxite #1 in Alumina Global leader in Smelting $7.1B Revenues In 2010 ~ 2/3 smelter capacity powered with renewable energy $2.8B Revenues in 2010
Slide 10: Midstream portfolio: Global Rolled Products, Aerospace, Commodities, Specialties
Midstream portfolio: Global Rolled Products Global Aerospace Regional Commodities Regional Specialties Global Rolled Products Portfolio Aerospace Jumbo Aircraft Twin Aisles Single Aisles Can / Packaging Automotive Sheet Lithographic Sheet Commercial Transportation Brazing HVAC Defense Consumer Elect
Slide 11: Downstream portfolio: Engineered Products & Solutions
Downstream portfolio: Engineered Products & Solutions Technically complex & highly differentiated products focused on aerospace, power generation, commercial transportation and B&C markets Power & Propulsion Forgings & Extrusions Wheels BCS Fastening Systems $1.1B $0.9B $0.6B $0.5B Global leader in
Slide 12: Looking Back: sustainably improving our cost structure
Looking Back: sustainably improving our cost structure Perspective: viewpoint of presentation Differentiation: and what makes us special Looking Forward: setting rigorous 3- to 5-year goals
Slide 13: Driving cost improvements in 2009 and 2010
Driving cost improvements in 2009 and 2010 2009 2010 Procurement Overhead 2009 2010 1 $ Millions $2,000 $ Millions $1,998 $1,500 Target Actual Procurement and other productivity Original Target Revised Target $2,500 $2,643 Actual $ Millions $400 $ Millions $412 $200 Target Actual Original Target Rev
Slide 14: Upstream costs are tied to several key commodities
Upstream costs are tied to several key commodities Refining Cost Structure Smelting Cost Structure Input Cost Inventory flow Pricing convention Fuel oil 1 - 2 months Prior month Natural gas 1 - 2 months Rolling 16 quarters Caustic soda 3 - 6 months Spot & semi- annual Bauxite 2 - 3 months 6 - 9 mont
Slide 15: Currency and raw materials continue to trend upwards
Currency and raw materials continue to trend upwards PACE - CPC USGC (PACE MidPoint) CMAI - Caustic Soda Average Acquisition - FOB USGC ($/DMT) Bloomberg Daily Average - Gulf Coast 3% Sulfur Fuel Oil NYMEX LME Cash AUD/USD Currency / USD Aluminum $ / Tonne LME Cash Caustic Soda Index Index Prices Al
Slide 16: Sustainable advantage in an inflationary environment
Sustainable advantage in an inflationary environment Firm Actions to Gain Advantage in Raw Materials • Expanding internal calcining capacity • Lake Charles has increased capacity by 20% this year alone • Evaluating opportunities for backward integration • Optimizing contract lengths and pricing peri
Slide 17: Looking Forward: setting rigorous 3- to 5-year goals
Looking Forward: setting rigorous 3- to 5-year goals Perspective: viewpoint of presentation Differentiation: Alcoa and what makes us special Looking Back: sustainably improving our cost structure
Slide 18: Accelerating shareholder value in 2011 and beyond
Accelerating shareholder value in 2011 and beyond Upstream 2015 Cost Curve Changes Refining Cost Curve Position Smelting Cost Curve Position Midstream 2013 Revenue Targets Downstream 2013 Revenue Targets 2011 Financial Targets Sustaining Capex $1.0B Growth Capex $0.5B Debt-to- cap Ratio 30 to 35% Po
Slide 19: Alcoa Logo
Alcoa Logo