Slide 1: 1st Quarter 2009 Analyst Conference
Exhibit 99.2 st Alcoa Logo 1 Quarter 2009 Analyst Conference April 7, 2009
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 Chief Financial Officer
Alcoa Logo Chuck McLane Executive Vice President and Chief Financial Officer
Slide 4: 1st Quarter 2009 Financial Overview
Alcoa Logo 1st Quarter 2009 Financial Overview Loss from continuing operations $480 million or $0.59 per share Revenue of $4.1 billion Decrease of 27% sequentially Decrease of 41% year-over-year Average LME $1,359/mt Decrease of 25% sequentially Decrease of 50% year-over-year Cash on hand of $1.1 bi
Slide 5: Sequential Income Statement
Alcoa Logo Sequential Income Statement (in millions, except per share amounts) 4Q'08 1Q'09 Change Sales $5,688 $4,147 (27%) Cost of Goods Sold $5,277 $4,143 (21%) % of Sales 92.8% 99.9% 7.1 pts SG&A $273 $244 (11%) % of Sales 4.8% 5.9% 1.1 pts Restructuring and Other Charges $863 $69 (92%) Interest
Slide 6: Restructuring & Other Special Items
Alcoa Logo Restructuring & Other Special Items After-Tax Earnings Income Statement (in millions, except per share amounts) Amount Per Share Classification Segment Loss from Continuing Operations $(480) $(0.59) Other Items: Restructuring and Other Charges $(46) $(0.06) Restructuring Corporate Gain on
Slide 7: 1Q 2009 vs. 4Q 2008 Earnings Bridge
Alcoa Logo 1Q 2009 vs. 4Q 2008 Earnings Bridge Loss from Continuing Operations excluding Restructuring & Other Special Items (in millions) SG&A / Bohai & 4Q08 Volume Price/Mix Currency Productivity R&D LME Other 1Q09 ($92) $34 ($221) $103 $20 ($55) $27 ($477) ($424) $39 See Appendix for Reconciliati
Slide 8: 1Q 2009 vs. 1Q 2008 Earnings Bridge
Alcoa Logo 1Q 2009 vs. 1Q 2008 Earnings Bridge Income (Loss) from Continuing Operations excluding Restructuring & Other Special Items (in millions) $356 $(258) $115 $45 $382 $198 $(74) 1Q08 Volume Price/Mix Currency Productivity SG&A / R&D LME Curtailments 1Q09 Noncontrolling Interest $(849) $(477)
Slide 9: Alumina
Alcoa Logo Alumina st st 1 Quarter Highlights 1 Quarter Business Conditions 1Q 08 4Q 08 1Q 09 34% lower realized pricing sequentially, Production (kmt) 3,870 3,776 3,445 matching LME decline on two-month lag rd 3 Party Shipments (kmt) 1,995 2,123 1,737 Lower production of 9% sequentially mainly due
Slide 10: Primary Metals
Alcoa Logo Primary Metals st st 1 Quarter Highlights 1 Quarter Business Conditions 1Q 08 4Q 08 1Q 09 Realized pricing down 26% sequentially Production (kmt) 995 971 880 750kmt of production curtailments enacted rd 3 Party Shipments Non-cash Elkem gain of $112 million 665 807 683 (kmt) rd 3 Party Rev
Slide 11: Flat-Rolled Products
Alcoa Logo Flat-Rolled Products st ATOI 1 Quarter Business Conditions ($ million) 1Q 08 4Q 08 1Q 09 Sequential improvement due to productivity gains in Global Rigid Packaging, closure of Global Rolled Products, Bohai foil plant and favorable currency impact 72 (9) 6 excl Russia & China Continued cus
Slide 12: Engineered Products and Solutions
Alcoa Logo Engineered Products and Solutions st st 1 Quarter Highlights 1 Quarter Business Conditions 1Q 08 4Q 08 1Q 09 Strong productivity gains more than offset weak market conditions Third Party Revenue ($ million) 1,395 1,258 1,158 Share gains helped mitigate sales decline ATOI ($ million) 140 6
Slide 13: Cash Flow Statement
Alcoa Logo Cash Flow Statement (in millions) 1Q'08 4Q'08 1Q'09 Net Income (Loss) $303 $(1,191) $(497) DD&A 314 292 283 Change in Working Capital (581) 610 291 Taxes (16) (250) (303) Other Adjustments (289) 1,185 (11) Pension Contributions (19) (38) (34) Cash From Operating Activities $(288) $608 $(2
Slide 14: Financial Plan Enhances Flexibility
Alcoa Logo Financial Plan Enhances Flexibility Strengthens Balance Sheet and Positions Alcoa to Capitalize on Strategic Opportunities Common stock issued 172.5 million shares $876 million net proceeds Convertible notes issued $575 million 5.25% coupon and 22.5% conversion premium Maturity: March 15,
Slide 15: Balance Sheet / Liquidity Overview
Alcoa Logo Balance Sheet / Liquidity Overview Capitalization Summary Credit Revolvers ($ million) 12/31/2008 3/31/2009 ($ billion) 5.2 5.2 5.2 5.2 Short-term debt $2,013 $1,013 Long-term debt 8,565 9,192 Total debt $10,578 $10,205 Noncontrolling interests $2,597 $2,500 Shareholders' equity $11,735 $
Slide 16: Klaus Kleinfeld, President and Chief Executive Officer
Alcoa Logo Klaus Kleinfeld President and Chief Executive Officer
Slide 17: Challenging Market Conditions in 2009
Alcoa Logo Challenging Market Conditions in 2009 Alcoa End Markets: Current Assessment of 2009 Conditions Source: Alcoa analysis 17
Slide 18: Global Demand Expected to Decline 7% in 2009
Alcoa Logo Global Demand Expected to Decline 7% in 2009 2009 Projected Aluminum Consumption by Region (in mmt) 34.5 Brazil -5% 5% 0.8 Russia 0.9 -8% 10% Other* 4.0 -2% -1% 4.3 -12% -5% Asia w/o China 2008 Global Demand Growth Rate: -3% (2008 ex China: -8%) 5.0 -15% -12% North America 2009 Global Dem
Slide 19: Historic Collapse in Metal Price - 57%
Alcoa Logo Historic Collapse in Metal Price - 57% LME cash price/ton, in US$ and global inventory 1), in days 60 57 Days of Consumption $3,500 55 50 45 $3,000 40 35 $2,500 30 25 $2,000 20 - 57% 15 $1,500 10 5 0 $1,000 1) Reported Stocks : Comex, IAI, Japan Port , LME, & SME Reported Stocks, LME Cash
Slide 20: Curtailment Announcements – 16% of 2008 Production
Alcoa Logo Curtailment Announcements – 16% of 2008 Production Aluminum Supply: Curtailment Announcements by Region (annualized kmt) Curtailment % of Production 39,608 0% 5% 10% 15% 20% 50% 80% Eastern Europe 412 1,719 1 200 126 326 Africa 2,296 0 Oceania 2,696 100 38 138 Latin America 3,933 88 88 As
Slide 21: Alcoa Ahead of Industry Average
Alcoa Logo Alcoa Ahead of Industry Average Aluminum Supply: Curtailment Announcements by Producer (annualized kmt) Curtailment % of Production 0% 5% 10% 15% 20% 25% 30% 38,759 Hydro 1,769 44 469 513 Chalco 2,317 570 570 Alcoa 3,990 752 100 852 Rio Tinto Alcan 4,049 113 127 240 UC Rusal 4,494 173 514
Slide 22: Western World in Surplus Position
Alcoa Logo Western World in Surplus Position 2009E Aluminum Supply / Demand Balance (in kmt) China Western World Deficit Surplus Jan-Feb 09 Primary Production 11,000 Jan-Feb 09 Primary Production 24,400 Run Rate Run Rate Announced curtailments to be 0 Announced curtailments to be (1,600) implemented
Slide 23: Alumina Market Reaches Equilibrium in 2009
Alcoa Logo Alumina Market Reaches Equilibrium in 2009 2009E Alumina Supply / Demand Balance (in kmt) Global Equilibrium China Western World Jan-Feb 09 Alumina Production 19,000 Jan-Feb 09 Alumina Production 52,600 Run Rate Run Rate Supply Announced curtailments to be (2,500) Announced curtailments t
Slide 24: Improve Cash Flow and Balance Sheet
Alcoa Logo Improve Cash Flow and Balance Sheet Holistic Alcoa Approach: Improved Cost Structure and Balance Sheet Operational Financial Procurement Efficiencies Equity and Equity-Linked Financings Cost savings by 2010 Gross proceeds $2,000M $1,400M Overhead Rationalizations Dividend Reduction Cost s
Slide 25: Financial Actions Strengthen Liquidity Position
Alcoa Logo Financial Actions Strengthen Liquidity Position Financial Initiatives: Targets and Results Initiative Results / Status Equity and Equity-Linked Financings $1,400M gross proceeds Target gross proceeds Convertible offering oversubscribed multiple times $1,100M $1,400M Dividend Reduction $0.
Slide 26: $293m Procurement Savings Realized to Date
Alcoa Logo $293m Procurement Savings Realized to Date Procurement Efficiencies: Reduction Targets Reduction Targets by Spend Category Savings (millions) $2,000 $1,500 $293 1Q09A 2009 Savings 2010 Savings Target vs. 2008 Target vs. 2008 26
Slide 27: Achieved $110m in Overhead Cost Reduction
: NeMale. 3 Alcoatogo | Achieved $110m in Overhead Cost Rec luction Overhead’ Rationalization: Reduction Targets and Savings Overhead Savings Target Savings (millions) 100% @ $400 80% $200 $110 1Q09A 2009 Savings 2010 Savings 2008A 2010 Target Targetvs.2008 Targetvs. 2008
Slide 28: 2010 Capital Expenditures Will Decrease to $850M
Alcoa Logo 2010 Capital Expenditures Will Decrease to $850M Capital Expenditure Reduction: Annual CapEx ($ millions) 3,438 -48% 1,800 -53% 1,329 850 1Q09A 471 2008 2009E 2010E 28
Slide 29: $291M of Working Capital Generated
Alcoa Logo $291M of Working Capital Generated Working Capital Initiatives: Targets and 1Q09 Results Working Capital 1Q09 Working Capital Days Reduction Targets Change ($ millions) -28% $800M decrease in working capital in 2009 29
Slide 30: Exceeded 1Q09 CAP Reduction Targets
=y Atoatos | Exceeded 1Q09 CAP Reduction on Targets Alumina and Aluminum $ Cash Costimt Cost of Alumina Produced (CAP) Cost of Aluminum Produced (CAP) 100% 100% 75% 7%, 75% 62% 70% 60% 3Q08A 1Q09 Target 1Q09A 4Q09 Target 3Q08A 1Q09 Target 1Q09A 4Q09 Target
Slide 31: Russia Gaining Traction
Acoatoee | Russia Gaining Traction i ; € = FF — Alcoa Russia: Key Turnaround Metrics Capital Expenditures Hot Mill Capacity Headcount Reduction er | ll | O 1Q08 2Q08 3Q08 4Q08 1Q09 2008 1Q09 4Q08 1Q09 Cash from Operations
Slide 32: Alcoa LvL ONE Truck Wheel
Atcoa Logo | Alcoa LvL ONE™ - Lighter, Brighter ani Alcoa LvL ONE™ Truck Wheel: Benefits & Market Reactions Benefits = 45% Lighter than steel wheels * 5% Lighter than any aluminum wheel "6x Brighter* than competitor aluminum wheel = 5x Stronger than steel wheels = Up to 10% Improved Tire Wear than s
Slide 33: BobTail Fastening System – Revolutionary Technology
Alcoa Logo BobTail ® Fastening System – Revolutionary Technology Alcoa BobTail ® Fastening System: Benefits & First Results Benefits Cost Reduction – warranty, service and maintenance Patented Thread Geometry – superior vibration resistance Fast and Quiet Installation – 2 sec installation time with
Slide 34: New QC-10 Mold Block – Saving 30% off the Bottom Line
Alcoa Logo New QC-10 ® Mold Block – Saving 30% off the Bottom Line Alcoa QC-10 ® Forged Mold Block: Sample Products & Benefits Benefits Up to 30% Lower Tool Costs – QC-10 Fan Shroud machines eight times faster than steel Reduced Scrap Cost– due to less warpage Durable Alternative to Steel – in 6+ in
Slide 35: Remain Optimistic Near-Term and Long-Term
Alcoa Logo Remain Optimistic Near-Term and Long-Term Catalysts for Aluminum Industry Growth Near-Term Long-Term China Supply / demand balance New Applications Consumer electronics Aluminum bottle Curtailment Demographics Continued execution of Global Population Growth announced curtailments – 2006:
Slide 36: For Additional Information, Contact: Elizabeth Besen
Alcoa Logo For Additional Information, Contact: Elizabeth Besen Director, Investor Relations Alcoa 390 Park Avenue New York, NY 10022-4608 Telephone: (212) 836-2674 Facsimile: (212) 836-2813 www.alcoa.com 36
Slide 37: Alcoa Logo Alcoa Logo
Alcoa Logo Alcoa Logo 37
Slide 38: Appendix
Alcoa Logo Alcoa Logo APPENDIX 38
Slide 39: China Aluminum Prices Supported by Market Factors
Alcoa Logo China Aluminum Prices Supported by Market Factors China Aluminum Industry: Production and Price China Aluminum Production (mmtpy) * Metal Price Gap: SHFE vs LME $3,500 $3,000 $2,500 $2,000 $1,500 SHFE premium 1 $364 $1,000 1/1/07 7/1/07 1/1/08 7/1/08 1/1/09 LME SHFE * Source: IAI and CNIA
Slide 40: China Mill Production Ramp Up
Alcoa tose | China Mill Production Ramp Up J g. ( a. — Alcoa China: Key Turnaround Metrics Capital Expenditures Cash from Operations 2008 Average eeeeeee ---;, [] : el 1Q09 1Q08 2008 3008 4008 Hot Mill Production 1Q08 1Q09 = Bohai sheet mill began production in 1Q09 = Shut down Bohai foil operation
Slide 41: Refining Cost Overview
Alcoa Logo Refining Cost Overview Composition of Refining Production Costs Input Cost Inventory flow Pricing convention Fuel Oil Fuel oil 1 – 2 months Prior month 14% Conversion Natural gas 1 – 2 months Rolling 16 quarters 36% Natural gas 15% Caustic soda 3 - 6 months Spot & semi-annual Caustic Baux
Slide 42: Smelting Cost Overview
Alcoa Logo Smelting Cost Overview Composition of Smelting Production Costs Input Cost Inventory flow Pricing convention Conversion Alumina 1 – 2 months 2 – 3 month lags 22% Alumina Power 1 – 2 months 40% LME linked – 3 36% month lag Materials Carbon 1 - 2 months Spot & semi-annual 3% Materials 1 - 2
Slide 43: Reconciliation of ATOI to Consolidated Net Income (Loss) Attributable to Alcoa
Alcoa Logo Reconciliation of ATOI to Consolidated Net Income (Loss) Attributable to Alcoa (in millions) 1Q08 2Q08 3Q08 4Q08 2008 1Q09 Total segment ATOI $ 668 $ 838 $ 665 $ 28 $ 2,199 $ (143) Unallocated amounts (net of tax): Impact of LIFO (31) (44) (5) 73 (7) 29 Interest income 9 12 10 4 35 1 Inte
Slide 44: Reconciliation of Adjusted Income
Alcoa Logo Reconciliation of Adjusted Income (in millions) Quarter ended March 31, December 31, March 31, 2008* 2008 2009 Net income (loss) attributable to Alcoa $ 303 $ (1,191) $ (497) Income (loss) from discontinued operations 4 (262) (17) Income (loss) from continuing operations attributable to A