Slide 1: 2nd Quarter Earnings Conference
Exhibit 99.2 [Alcoa logo] 2nd nd Quarter Earnings Conference July 9, 2012
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 July 9, 2012
Slide 4: 2nd Quarter 2012 Financial Overview
meme 2°S Quarter 2012 Financial Overview Loss from Continuing Operations of $2 million, or $0.00 per share; Excluding impact of restructuring and other special items: = Income from continuing operations of $61 million, or $0.06 per share Revenue at $6.0 billion Adjusted EBITDA of $517 million Positi
Slide 5: Income Statement Summary
[Alcoa logo] Income Statement Summary Sequential $ Millions, except per-share amounts 2Q’11 1Q’12 2Q’12 Change Sales $6,585 $6,006 $5,963 ($43) Cost of Goods Sold $5,247 $5,098 $5,154 $56 COGS % Sales 79.7% 84.9% 86.4% 1.5 % pts. Selling, General Administrative, Other $253 $241 $245 $4 SGA % Sales 3
Slide 6: Restructuring and Other Special Items
[Alcoa logo] Restructuring and Other Special Items Income Statement $ Millions, except per-share amounts 1Q’12 2Q’12 Segment Classification Income (Loss) from Continuing Ops $94 ($2) Income (Loss) Per Diluted Share $0.09 $0.00 Restructuring and Restructuring-Related ($7) ($10) Corporate Other Charge
Slide 7: 2nd Quarter 2012 vs. 1st Quarter 2012 Earnings Bridge
[Alcoa logo] [Alcoa logo] nd Quarter 2012 vs. 1st 2nd st Quarter 2012 Earnings Bridge Income from Continuing Operations Excluding Restructuring & Other Special Items ($ millions) 105 5 17 53 7 61 41 31 61 31 1Q 2012 LME Currency Volume Price Productivity Energy Raw Cost 2Q 2012 / Mix Materials Incre
Slide 8: Alumina
[Alcoa logo] Alumina 2nd Quarter Results 2 nd Quarter Business Highlights Production and shipments decrease as curtailments take effect Currency benefit significant in both Australian dollar and Brazilian Real Increased caustic usage Energy prices increased, driven by fuel oil Maintenance overhauls
Slide 9: Primary Metals
[Alcoa logo] Primary Metals nd nd 2nd Quarter Results 2nd Quarter Business Highlights LME price down 6% on a 15-day lagged basis, 2Q 11 1Q 12 2Q 12 but favorable currencies partially offset impact Production (kmt) 945 951 941 Price/mix improvements driven by regional ird 3 Party Shipments (kmt) 724
Slide 10: Global Rolled Products
[Alcoa logo] Global Rolled Products nd nd 2 Quarter Results 2nd Quarter Business Highlights Record ATOI and adjusted EBITDA/MT ATOI ($ Millions) 2Q 11 1Q 12 2Q 12 in first half 2012 Volume up 7% sequentially Global Rolled Products, 86 100 89 excl Russia, China & Other Compressed margins from decreas
Slide 11: Engineered Products and Solutions
[Alcoa logo] Engineered Products and Solutions 2nd Quarter Results 2nd nd Quarter Business Highlights $ Millions 2Q 11 1Q 12 2Q 12 – Revenue, adjusted EBITDA and ATOI up sequentially and year-over-year rd 3 Party Revenue 1,370 1,390 1,420 – Record quarterly adjusted EBITDA margin at 19.4% ATOI 149 1
Slide 12: 2nd Quarter 2012 Cash Flow Overview
[Alcoa logo] 2nd Quarter 2012 Cash Flow Overview nd ($ Millions) 2Q’11 1Q’12 2Q’12 Net Income (Loss) $377 $99 ($19) DD&A $375 $369 $364 2Q’12 FCF $246 million Change in Working Capital ($113) ($289) ($147) Pension Contributions ($72) ($213) ($139) Taxes / Other Adjustments $231 ($202) $478 $1.7 bill
Slide 13: Sustainable Reductions Maintained in Days Working Capital
[Alcoa logo] Sustainable Reductions Maintained in Days Working Capital Days Working Capital since Fourth Quarter 2008 55 Record Low 55 Days for Second Quarter 50 50 48 45 43 44 43 -5 days 41 40 39 38 38 35 33 33 32 30 30 27 25 20 10 days 3 days 3 days lower lower lower See appendix for Days Working
Slide 14: Proven Cash Sustainability Efforts Enhance Liquidity
[Alcoa logo] Proven Cash Sustainability Efforts Enhance Liquidity Income from Continuing Operations excluding restructuring and specials Free Cash Flow ($ Millions) ($ Millions) Cash on Hand Debt ($ Millions) and Debt-to-Capital (%) ($ Millions) Gross Debt Debt to Cap See appendix for reconciliation
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 Smelting Cost Curve Position Refining Cost Curve Position Positive Free Cash Flow n Executing curtailments Productivity Gains $800M n Record 1H ATOI and adjusted EBITDA/mt in O
Slide 16: Klaus Kleinfeld, Chairman and Chief Executive Officer
[Alcoa logo] Klaus Kleinfeld Chairman and Chief Executive Officer July 9, 2012
Slide 17: 2012 Market Conditions
[Alcoa logo] 2012 Market Conditions Alcoa End Markets: Current Assessment of 2012 vs. 2011 Source: Alcoa analysis 17
Slide 18: Global Aluminum Demand Strong: 7% Growth Maintained
[Alcoa logo] Global Aluminum Demand Strong: 7% Growth Maintained 2012 Projected Primary Aluminum Consumption Growth Rates (%) by Region (in mmt) Russia 0.9 4% 5% Brazil 1.0 3% 5% 1.9 10% 7% India 3.5 15% 6% Other(1) 2011 Global Demand Asia ex. China 5.7 10% 6% Growth Rate: 10% 2012 Global Demand Nor
Slide 19: Alumina: Balanced AND Indonesian Situation Uncertain
[Alcoa logo] Alumina: Balanced AND Indonesian Situation Uncertain Indonesia Imposes Bauxite Export Ban 2012E Alumina Supply/Demand Balance (kmt) Curbed exports since May 1(1) Export tax rate set at 20% = $5-$10/mt Import build ahead of ban (1-2 months) Chinese announce refinery cuts in reaction to u
Slide 20: Aluminum in Deficit - Curtailments Occurring
[Alcoa logo] Aluminum in Deficit - Curtailments Occurring Annualized Production 2012E Aluminum Supply/Demand (kmt) Producer Executed Pending Curtailments Curtailments Henan Province (545) (350) Sichuan (201) - Deficit Shaanxi (190) - (515) Shanxi (57) - Inner Mongolia (50) - Other (119) (350) Total
Slide 21: Physical Premiums Push Record Highs
[Alcoa logo] Physical Premiums Push Record Highs Regional Premiums over time Sources: Alcoa estimates, LME, SHFE, IAI, Marubeni, Platt’s Metals Week and Metal Bulletin 21
Slide 22: Inventories Down – Days of Consumption / Pricing Disrupted
[Alcoa logo] Inventories Down – “Days of Consumption / Pricing” Disrupted Global Inventories vs. LME Price over time Days of LME Price Consumption Days of Days of Days of Consumption Consumption Consumption 100 80 days $3,250 102 days 75 days LME Price LME Price LME Price 90 $2,214/MT $2,686/MT $1,9
Slide 23: LME Price Decoupled From Fundamentals
[Alcoa logo] LME Price Decoupled From Fundamentals LME Cash versus Quarterly Supply/Demand Balance Supply/ LME Price Demand Price SYNCHRONIZED with fundamentals DECOUPLED $3,000 1,500 $2,800 1,300 $2,600 1,100 S U $2,400 900 R P $2,200 700 L U $2,000 500 S $1,800 300 $1,600 100 D $1,400 (100) E F $1
Slide 24: Weak Macro Environment, Impacting Commodities
[Alcoa logo] Weak Macro Environment, Impacting Commodities Liquidity and Solvency Issues in Europe… Consumer Confidence*; Mixed Signals 23.0% Portugal 10-yr Sovereign Yields 110 2 21.0% Ireland China 19.0% 105 Spain 17.0% Italy 100 15.0% 3 US 13.0% 95 11.0% 1 9.0% 90 Eurozone 7.0% 85 5.0% 3.0% 80 Ne
Slide 25: Macro Environment Dominates Price
[Alcoa logo] Macro Environment Dominates Price Correlation of LME 3-month & DJUBS* Index Correlation of LME 3-month & S&P 500 Index * Dow Jones UBS Commodity Index ** Correlation, r, of daily returns over prior year 25
Slide 26: Market Fundamentals Sound – Historically Prevail
[Alcoa logo] Market Fundamentals Sound – Historically Prevail 7% Global Demand Growth Alumina Balanced, Tightness In Aluminum 2012 Projected Primary Aluminum Consumption Growth Rates (%) by Region (in mmt) Russia 0.9 1.0 4% 5% Brazil 3% 5% 1.9 10% 7% India 3.5 15% 6% Other (1) 2011 Global Demand Asi
Slide 27: Alumina: Improve Performance Through Cost & Price Focus
[Alcoa logo] Alumina: Improve Performance Through Cost & Price Focus Adjusted EBITDA per MT Five Year Plan to Move Down the Cost Curve Adjusted EBITDA/MT LME Refining Cost Curve 10-YR Average ~ $67/MT th 2,641 th 30 2,572 2,398 30 2,173 1,900 2,077 2,570 1,719 th 1,350 1,433 25 Projecting 110 104 1,
Slide 28: Primary: Lower Cost Position and Optimize Margins
[Alcoa logo] Primary: Lower Cost Position and Optimize Margins Adjusted EBITDA per MT Five Year Plan to Move Down the Cost Curve Adjusted EBITDA/MT LME Smelting Cost Curve 10-YR Average ~ $374/MT 2,641 2,572 51 st 2,398 th 2,173 50 2,570 2,077 1,900 1,719 784 1,433 th 1,350 626 1,664 45 418 Projecti
Slide 29: Global Rolled Products: Strong Top- and Bottom-Line Growth
[Alcoa logo] Global Rolled Products: Strong Top- and Bottom-Line Growth rd Record Adjusted EBITDA per MT 2012 YTD 3 Party Sales by Market Packaging 43% Adjusted EBITDA/MT 85% 10-YR Average ~ $235/MT 409 Utilization 314 327 273 253 276 249 226 201 Industrial Products 108 119 23% Aerospace 14% Other C
Slide 30: Engineered Products: Continued Growth in Our Margins
[Alcoa logo] Engineered Products: Continued Growth in Our Margins rd Record Adjusted EBITDA Margins 2012 YTD 3 Party Sales by Market Adjusted EBITDA Margin 18% 19% Aerospace 17% IGT 15% 78% 49% 7% 13% 13% 12% 11% 12% Utilization 9% B&C 8% 17% Other 69% 2002 2003 2004 2005 2006 2007 2008 2009 2010 20
Slide 31: Miracle Metal Accelerating Growth in the Auto Market
[Alcoa logo] Miracle Metal Accelerating Growth in the Auto Market 50 years of uninterrupted growth Future is bright for aluminum Market preference for better fuel The Next Frontier economy for Aluminum Lbs per vehicle NA demand to increase 60% by 2025 600 Doors & 550 lbs Body-in-white Aluminum sheet
Slide 32: Vibrant Aerospace Growth Projected Over Long & Near Term
[Alcoa logo] Vibrant Aerospace Growth Projected Over Long & Near Term Sources: The Airline Monitor Jan/Feb 2012 forecast Notes: All figures include both Large Commercial Aircraft & Regional Jets; $ Value of deliveries expressed in then-year dollars 32
Slide 33: Leadership In Product Innovation For a Fast-Growing Market
[Alcoa logo] Leadership In Product Innovation For a Fast-Growing Market Fasteners Solving Lightning Strike Issues Working with Key OEMs Electrical Energy Management Airframes Enhanced joint fatigue properties Airfoils Increasing Next Generation Turbine Efficiencies Multi-Wall / 3D Airfoil Cooling Sc
Slide 34: Delivering Our Promises Today and Ready For Tomorrow
[Alcoa logo] Delivering Our Promises Today and Ready For Tomorrow Solid Market Fundamentals Executing Our Strategy Positioning for the Future Automotive The Next Frontier for Aluminum Doors & Body-in-white Aerospace Fasteners Solving Lightning Strike Issues Electrical Energy Management Enhanced join
Slide 35: [Alcoa logo]
[Alcoa logo] [Alcoa logo] 35
Slide 36: 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 36
Slide 37: 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 38: Revenue Change by Market
[Alcoa logo] Revenue Change by Market Sequential Year-Over-Year 2Q’12 Third-Party Revenue Change Change Aerospace 4% 13% 30% 16% Automotive 1% 3% B&C (1%) (12%) 3% Comm. Transport 3% 10% 6% Industrial Products 0% (19%) IGT 13% 2% 6% Packaging 5% (9%) 13% 8% Distribution/Other 26% (14%) 2% 2% Alumina
Slide 39: 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 Total segment ATOI $ 555 $ 635 $ 462 $ 241 $ 1,893 $ 296 $ 275 Unallocated amounts (net of tax): Impact of LIFO (24) (27) 2 11 (38) – 19 Interest expense (72)
Slide 40: Reconciliation of Alcoa Adjusted EBITDA
[Alcoa logo] Reconciliation of Alcoa Adjusted EBITDA ($ in millions) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2Q11 1Q12 2Q12 Net income (loss) attributable to Alcoa $ 420 $ 938 $ 1,310 $ 1,233 $ 2,248 $ 2,564 $ (74) $ (1,151) $ 254 $ 611 $ 322 $ 94 $ (2) Add: Net income (loss) attributable
Slide 41: 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 2Q11 1Q12 2Q12 per metric ton amounts) After-tax operating income (ATOI) $ 315 $ 415 $ 632 $ 682 $ 1,050 $ 956 $ 727 $ 112 $ 301 $ 607 $ 186 $ 35 $ 23 Add: Depreciation, de
Slide 42: 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 2Q11 1Q12 2Q12 per metric ton amounts) After-tax operating income (ATOI) $ 650 $ 657 $ 808 $ 822 $ 1,760 $ 1,445 $ 931 $ (612) $ 488 $ 481 $ 201 $ 10 $ (3) Add: Depr
Slide 43: 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 1Q11 2Q11 1Q12 2Q12 per metric ton amounts) After-tax operating income (ATOI) $ 225 $ 222 $ 254 $ 278 $ 233 $ 178 $ (3) $ (49) $ 220 $ 266 $ 81 $ 99 $ 96 $ 9
Slide 44: 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 2Q11 1Q12 2Q12 After-tax operating income (ATOI) $ 63 $ 124 $ 156 $ 271 $ 365 $ 435 $ 533 $ 315 $ 415 $ 539 $ 149 $ 155 $ 160 Add: Depreciation, depletio
Slide 45: Reconciliation of Adjusted Income
[Alcoa logo] Reconciliation of Adjusted Income (in millions, except per- Income (Loss) Diluted EPS share amounts) Quarter ended Quarter ended June 30, March 31, June 30, June 30, March 31, June 30, 2011 2012 2012 2011 2012 2012 Net income (loss) attributable to Alcoa $ 322 $ 94 $ (2) $ 0.28 $ 0.09 $
Slide 46: Reconciliation of Adjusted Income, con’t
[Alcoa logo] Reconciliation of Adjusted Income, con’t (in millions) Quarter ended Year ended March 31, June 30, September 30, December 31, December 31, December 31, 2011 2011 2011 2011 2010 2011 Net income (loss) attributable to Alcoa $ 308 $ 322 $ 172 $ (191) $ 254 $ 611 (Loss) income from disconti
Slide 47: Reconciliation of Adjusted Income, con’t
[Alcoa logo] Reconciliation of Adjusted Income, con’t (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 48: Reconciliation of Free Cash Flow
[Alcoa logo] Reconciliation of Free Cash Flow (in millions) Quarter ended Year ended June 30, March 31, June 30, December 31, 2011 2012 2012 2011 Cash from operations $ 798 $ (236) $ 537 $ 2,193 Capital expenditures (272) (270) (291) (1,287) Free cash flow $ 526 $ (506) $ 246 $ 906 Free Cash Flow is
Slide 49: Reconciliation of Free Cash Flow, con’t
[Alcoa logo] Reconciliation of Free Cash Flow, con’t (in millions) Quarter ended Year ended March 31, June 30, September 30, December 31, December 31, December 31, 2011 2011 2011 2011 2010 2011 Cash from $ (236) $ 798 $ 489 $ 1,142 $ 2,261 $ 2,193 operations Capital expenditures (204) (272) (325) (4
Slide 50: Reconciliation of Free Cash Flow, con’t
[Alcoa logo] Reconciliation of Free Cash Flow, con’t (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 $ 1,370
Slide 51: Days Working Capital
[Alcoa logo] Days Working Capital ($ in millions) Quarter ended June 30, March 31, June 30, 2011 2012 2012 Receivables from customers, less allowances $ 2,114 $ 1,526 $ 1,575 Add: Deferred purchase price receivable * – 254 141 Receivables from customers, less allowances, as adjusted 2,114 1,780 1,71
Slide 52: Reconciliation of Net Debt-to-Capital
[Alcoa logo] Reconciliation of Net Debt-to-Capital ($ in millions) Quarter ended June 30, 2012 Cash and Cash Net Debt-to- Debt-to-Capital Equivalents Capital Total Debt Short-term borrowings $ 559 Commercial paper 318 Long-term debt due within one year 118 Long-term debt, less amount due within one