Slide 1: 3rd Quarter Earnings Conference
Exhibit 99.2 [Alcoa logo] 3rd Quarter Earnings Conference October 9, 2012 0
Slide 2: Cautionary Statement
[Alcoa logo] 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,”
Slide 3: Chuck McLane, Executive Vice President and Chief Financial Officer
[Alcoa logo] Chuck McLane Executive Vice President and Chief Financial Officer October 9, 2012 2
Slide 4: 3rd Quarter 2012 Financial Overview
rd [Alcoa logo] 3 Quarter 2012 Financial Overview Loss from Continuing Operations of $143 million, or $0.13 per share; Excluding impact of restructuring and other special items: • Income from continuing operations of $32 million, or $0.03 per share Revenue at $5.8 billion Adjusted EBITDA of $282 mil
Slide 5: Income Statement Summary
[Alcoa logo] Income Statement Summary Income Statement Summary $ Millions, except per-share amounts 3Q11 2Q12 3Q12 Sequential Actual Actual Actual Change Sales $6,419 $5,963 $5,833 ($130) Cost of Goods Sold $5,290 $5,154 $5,266 $112 COGS % Sales 82.4% 86.4% 90.3% 3.9 % pts. Selling, General Administ
Slide 6: Restructuring and Other Special Items
[Alcoa logo] Restructuring and Other Special Items Income Statement $ Millions, except per-share amounts 2Q12 3Q12 Segment Classification Loss from Continuing Ops ($2) ($143) Loss Per Diluted Share $0.00 ($0.13) Environmental Reserve ($13) ($120) COGS Corporate Litigation Reserve ($18) ($15) COGS Co
Slide 7: 3rd Quarter 2012 vs. 2nd Quarter 2012 Earnings Bridge
nd [Alcoa logo] 3 rd Quarter 2012 vs. 2 Quarter 2012 Earnings Bridge Income from Continuing Operations Excluding Restructuring & Other Special Items ($ millions) 61 3 24 32 55 91 34 3 3 2Q 2012 LME Currency Volume Price Productivity Raw Cost 3Q 2012 /Mix Materials Increases / Other -$94m +$86m -$21m
Slide 8: Alumina Q3 Results and Q4 Outlook
[Alcoa logo] Alumina Alumina Q3 Results and Q4 Outlook rd rd 3 Quarter Results 3 Quarter Business Highlights Higher shipments stemming from prior quarter shipping 3Q 11 2Q 12 3Q 12 delays Production (kmt) 4,140 4,033 4,077 Price/mix driven by stable API pricing despite LME decline 3rd Party Shipment
Slide 9: Primary Metals Q3 Results and Q4 Outlook
[Alcoa logo] Primary Metals Primary Metals Q3 Results and Q4 Outlook rd rd 3 Quarter Results 3 Quarter Business Highlights 3Q 11 2Q 12 3Q 12 Production decreased due to curtailments in Spain and Italy Production (kmt) 964 941 938 Price/Mix driven by improving regional premiums rd 3 Party Shipments (
Slide 10: Global Rolled Products Q3 Results and Q4 Outlook
[Alcoa logo] Global Rolled Products Global Rolled Products Q3 Results and Q4 Outlook rd 3 Quarter Results 3rd Quarter Business Highlights 3Q Record ATOI and adjusted EBITDA per metric ton ATOI ($ Millions) 3Q 11 2Q 12 3Q 12 ATOI up 63% YOY quarter Global Rolled Products, 56 89 89 Demand increases in
Slide 11: Engineered Products and Solutions Q3 Results and Q4 Outlook
[Alcoa logo] Engineered Products and Solutions Engineered Products and Solutions Q3 Results and Q4 Outlook rd rd 3 Quarter Results 3 Quarter Business Highlights Record 3Q ATOI driven by productivity offsetting ($ Millions) 3Q 11 2Q 12 3Q 12 seasonal declines in building & construction and rd weaknes
Slide 12: 3rd Quarter 2012 Cash Flow Overview
rd [Alcoa logo] 3 Quarter 2012 Cash Flow Overview 3 rd Quarter 2012 Cash Flow Overview ($ Millions) 3Q11 2Q12 3Q12 Net Income (Loss) $225 ($19) ($175) 3Q12 FCF ($39) million DD&A $377 $364 $366 Change in Working Capital ($93) ($147) $88 Pension Contributions ($114) ($139) ($163) $1.4 billion Taxes /
Slide 13: Continued Sustainable Reductions in DWC
[Alcoa logo] Continued Sustainable Reductions in DWC Days Working Capital since Fourth Quarter 2008 55 55 Record Low rd 50 48 3 Quarter 50 45 43 44 43 41 -5 days 40 39 38 38 35 33 33 33 32 30 30 27 25 20 10 days 3 days 3 days lower lower lower 12
Slide 14: Proven Cash Sustainability Efforts Enhance Liquidity
[Alcoa logo] Proven Cash Sustainability Efforts Enhance Liquidity Income and Liquidity Performance Overview (Loss) Income from Continuing Operations excl. restructuring and other special items Free Cash Flow ($ Millions) ($ Millions) 1,005 761 364 656 317 526 223 165 101 139 96 105 61 176 164 246 39
Slide 15: Continuing to Execute in a Challenging Environment
[Alcoa logo] Continuing to Execute in a Challenging Environment Executing Our Strategy Achieving Targets Delivering Results Significant sequential Positive Free Cash Flow performance improvement in the Productivity $800M upstream Restructuring through executed curtailments Overhead $50M Record 3Q AT
Slide 16: Klaus Kleinfeld, Chairman and Chief Executive Officer
[Alcoa logo] Klaus Kleinfeld Chairman and Chief Executive Officer October 9, 2012 15
Slide 17: 2012 Market Conditions
[Alcoa logo] 2012 Market Conditions Alcoa End Markets: Current Assessment of 2012 vs. 2011 North America Europe China Global Aerospace 13%-14% sales growth Automotive 11%-15% 4%-9% 4%-7% 4%-8% prod growth prod decline prod growth prod growth Heavy Truck & 2%-4% 8%-11% 18%-21% 7%-9% Trailer prod grow
Slide 18: Global Aluminum Demand Grows 6% Amid Volatile Environment
[Alcoa logo] Global Aluminum Demand Grows 6% Amid Volatile Environment 2012 Primary Aluminum Consumption (mmt), Annualized Growth (%) and Change (% pts) by Region 2012 Consumption 2012 Growth (vs. 2011) Change in Growth (3Q12 estimate) (3Q12 estimate) (H1 to H2 in % pts.) Russia 0.9 0% Russia 1% 5%
Slide 19: Alumina and Aluminum Markets Essentially Balanced
[Alcoa logo] Alumina and Aluminum Markets Essentially Balanced Supply and Demand Analysis 2012E Alumina Supply/Demand Balance (kmt) 2012E Aluminum Supply/Demand Balance (kmt) Surplus Deficit 400 (262) Supply Demand Supply Demand (000 mt) China Rest of World (000 mt) China Rest of World Aug 2012 Annu
Slide 20: Tight Physical Market Drives Record Premiums
[Alcoa logo] Tight Physical Market Drives Record Premiums $ per metric Regional Premiums over time $ per metric ton ton Source: Alcoa estimates, LME, SHFE, IAI, Marubeni, Platt’s Metals Week and Metal Bulletin 19
Slide 21: Currently Inventory Levels Are Not Driving the Price
[Alcoa logo] Currently Inventory Levels Are Not Driving the Price Global Inventories vs. LME Price over time Days of LME Price Consumption Days of Days of Days of Consumption Consumption Consumption 102 days 80 days 75 days LME Price LME Price LME Price $2,214/MT $2,686/MT $2,112/MT Global Inventori
Slide 22: LME Price Remains Decoupled From Market Fundamentals
[Alcoa logo] LME Price Remains Decoupled From Market Fundamentals LME Cash versus Quarterly Supply/Demand Balance Supply/ LME Price Demand Price SYNCHRONIZED with fundamentals DECOUPLED Sources: Alcoa estimates, Brook Hunt, CRU, Harbor 21
Slide 23: Broad Market Sentiment Continues to Dominate Price
[Alcoa logo] Broad Market Sentiment Continues to Dominate Price Movement in LME Cash Prices After Economic Announcements th th Sept 13 Sept 12 QE3 German court ruling LME $2,082 LME $2,075 th Sept 7 China stimulus plan LME $1,988 th Sept 6 ECB bond buying program LME $1,963 10-Sep-12 17-Sep-12 24-Se
Slide 24: Market Fundamentals Intact; Macro Factors Influence Price
[Alcoa logo] Market Fundamentals Intact; Macro Factors Influence Price Market Effectively Balanced Premiums Remain At Record High Supply and Demand Analysis Regional Premiums Over Time Inventories Down Market Sentiment Dominates Price Global Inventories vs. LME Price over time Movement in LME Cash P
Slide 25: Alumina: Improving Performance Through Margin Focus
[Alcoa logo] Alumina: Improving Performance Through Margin Focus Alumina Performance Overview Adjusted EBITDA per MT Aligning Prices With Market Fundamentals 10-YR Average ~ $67/MT ~40% of customers on API or spot 1,900 1,664 basis by YE 1,350 1,433 YTD 2012 LME Adj. EBITDA/MT Avg. Five Year Plan To
Slide 26: Primary Metals: Driving Long-Term Improvements
[Alcoa logo] Primary Metals: Driving Long-Term Improvements Primary Metals Performance Overview Adjusted EBITDA per MT Optimizing Cast House Profitability 10-YR Average ~ $374/MT 2,570 $375M Margin* 1,900 2011 through 1,664 YTD Sept 2012 1,433 784 Rod 1,350 Foundry -159 2002 2003 2004 2005 2006 2007
Slide 27: Global Rolled Products: Leveraging Our Strategic Asset Base
[Alcoa logo] Global Rolled Products: Leveraging Our Strategic Asset Base Global Rolled Products Performance Overview rd Generating Record Adjusted EBITDA per MT 2012 YTD 3 Party Sales by Market 10-YR Average ~ $235/MT B&C Other 405 Commercial Transport 85% 4% 327 Automotive 5% 2% Utilization 314 273
Slide 28: Engineered Products & Solutions: Continuing to Grow Profitably
[Alcoa logo] Engineered Products & Solutions: Continuing to Grow Profitably Engineered Products and Solutions Performance Overview rd Setting Record Adjusted EBITDA Margins 2012 YTD 3 Party Sales by Market Other 20% Automotive 78% 6% 17% 18% IGT 3% Aerospace 15% 7% 13% 13% Utilization 12% 12% 11% 8%
Slide 29: Regulation and Market Preference Drives Aluminum Demand
[Alcoa logo] Regulation and Market Preference Drives Aluminum Demand Changing Regulations… …Shifting Buying Behavior… …Drive Substitution US Corporate Average Percentage of consumers willing to pay Global Auto Body Sheet Fuel Economy (MPG) more for fuel-efficiency Consumption (KMT) 7.5X 37% of consu
Slide 30: Controlling Our Own Destiny in a Challenging Environment
[Alcoa logo] Controlling Our Own Destiny in a Challenging Environment Macro Trumps Ali Fundamentals Delivering Results Capturing Future Growth Demand Solid; Markets Upstream delivers $98M in Lightweighting With Aluminum Effectively Balanced performance improvement quarter over quarter Restructuring
Slide 31: [Alcoa logo]
(Alcoa logo! [Alcoa logo] rs)
Slide 32: Additional Information
[Alcoa logo] Additional Information Kelly Pasterick Director, Investor Relations Alcoa 390 Park Avenue New York, NY 10022-4608 Telephone: (212) 836-2674 www.alcoa.com 31
Slide 33: Annual Sensitivity Summary
[Alcoa logo] Annual Sensitivity Summary LME Aluminum Annual Net Income Sensitivity +/- $100/MT = +/- $220 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
Slide 34: Revenue Change by Market
[Alcoa logo] Revenue Change by Market Sequential Year-Over-Year 3Q’12 Third-Party Revenue Change Change Aerospace (2%) 9% 31% 16% Automotive (5%) 2% B&C (1%) (8%) 3% Comm. Transport (13%) (10%) 6% Industrial Products (8%) (16%) 5% IGT 2% (1%) Packaging (1%) (6%) 8% 13% Distribution/Other* (10%) (19%
Slide 35: 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) 1Q11 2Q11 3Q11 4Q11 2011 1Q12 2Q12 3Q12 Total segment ATOI $ 555 $ 635 $ 462 $ 241 $ 1,893 $ 296 $ 275 $ 235 Unallocated amounts (net of tax): Impact of LIFO (24) (27) 2 11 (38) – 19 (7) Interes
Slide 36: Reconciliation of Adjusted Income
[Alcoa logo] Reconciliation of Adjusted Income (in millions, except per- Income (Loss) Diluted EPS share amounts) Quarter ended Quarter ended September 30, June 30, September 30, September 30, June 30, September 30, 2011 2012 2012 2011 2012 2012 Net income (loss) attributable to Alcoa $ 172 $ (2) $
Slide 37: Reconciliation of Adjusted Income, continued
[Alcoa logo] Reconciliation of Adjusted Income, continued (in millions) March 31, June 30, September 30, December 31, March 31, 2011 2011 2011 2011 2012 Net income (loss) attributable to Alcoa $ 308 $ 322 $ 172 $ (191) $ 94 (Loss) income from discontinued operations (1) (4) – 2 – Income (loss) from
Slide 38: Reconciliation of Adjusted Income, continued
[Alcoa logo] Reconciliation of Adjusted Income, continued (in millions) Quarter ended December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, 2008 2009 2009 2009 2009 2010 2010 2010 2010 Net (loss) income attributable to Alcoa $ (1,191) $ (497) $ (454
Slide 39: Reconciliation of Alcoa Adjusted EBITDA
[Alcoa logo] Reconciliation of Alcoa Adjusted EBITDA ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 20 10 2011 3Q11 2Q12 3Q12 Net income (loss) attributable to Alcoa $ 420 $ 938 $ 1,310 $ 1,233 $ 2,248 $ 2,564 $ (74) $ (1,151) $ 254 $ 611 $ 172 $ (2) $ (143) Add: Net income (loss) attributa
Slide 40: Reconciliation of Alumina Adjusted EBITDA
[Alcoa logo] Reconciliation of Alumina Adjusted EBITDA ($ in millions, except 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q11 2Q12 3Q12 3Q12 per metric ton YTD amounts) After-tax operating income (ATOI) $ 315 $ 415 $ 632 $ 682 $ 1,050 $ 956 $ 727 $ 112 $ 301 $ 607 $ 154 $ 23 $ (9) $ 49 Add: D
Slide 41: Reconciliation of Primary Metals Adjusted EBITDA
[Alcoa logo] Reconciliation of Primary Metals Adjusted EBITDA ($ in millions, except 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q11 2Q 12 3Q12 3Q12 per metric ton YTD amounts) After-tax operating income (ATOI) $ 650 $ 657 $ 808 $ 822 $ 1,760 $ 1,445 $ 931 $ (612) $ 488 $ 481 $ 110 $ (3) $ (1
Slide 42: Reconciliation of Global Rolled Products Adjusted EBITDA
[Alcoa logo] Reconciliation of Global Rolled Products Adjusted EBITDA ($ in millions, except 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q11 2Q12 3Q12 3Q11 3Q12 per metric ton YTD YTD amounts) After-tax operating income (ATOI) $ 225 $ 222 $ 254 $ 278 $ 233 $ 178 $ (3) $ (49) $ 220 $ 266 $ 60
Slide 43: Reconciliation of Engineered Products and Solutions Adjusted EBITDA
[Alcoa logo] Reconciliation of Engineered Products and Solutions Adjusted EBITDA ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q11 2Q12 3Q12 3Q11 3Q12 YTD YTD After-tax operating income (ATOI) $ 63 $ 124 $ 156 $ 271 $ 365 $ 435 $ 533 $ 315 $ 415 $ 539 $ 138 $ 160 $ 160 $ 417 $ 4
Slide 44: Reconciliation of Free Cash Flow
[Alcoa logo] Reconciliation of Free Cash Flow (in millions) Quarter ended March 31, June 30, September 30, December 31, March 31, June 30, September 30, 2011 2011 2011 2011 2012 2012 2012 Cash from $ (236) $ 798 $ 489 $ 1,142 $ (236) $ 537 $ 263 operations Capital expenditures (204) (272) (325) (486
Slide 45: Reconciliation of Free Cash Flow, continued
[Alcoa logo] Reconciliation of Free Cash Flow, continued (in millions) Quarter ended December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, 2008 2009 2009 2009 2009 2010 2010 2010 2010 Cash from $ 608 $ (271) $ 328 $ 184 $ 1,124 $ 199 $ 300 $ 392 $ 1
Slide 46: Days Working Capital
[Alcoa logo] Days Working Capital ($ in millions) Quarter ended September 30, June 30, September 30, 2011 2012 2012 Receivables from customers, less allowances $ 1,943 $ 1,575 $ 1,619 Add: Deferred purchase price receivable * – 141 81 Receivables from customers, less allowances, as adjusted 1,943 1,
Slide 47: Reconciliation of Net Debt-to-Capital
[Alcoa logo] Reconciliation of Net Debt-to-Capital ($ in millions) Quarter ended September 30, 2012 Cash and Cash Net Debt-to- Debt-to-Capital Equivalents Capital Total Debt Short-term borrowings $ 591 Commercial paper 43 Long-term debt due within one year 540 Long-term debt, less amount due within