Slide 1: 2nd Quarter Earnings Conference
Exhibit 99.2 [Alcoa logo] 2 nd Quarter Earnings Conference July 8, 2015 12
Slide 2: Important Information
Important Information Forward-Looking Statements This communication 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 include those
Slide 3: Important Information (continued)
Important Information (continued) Non-GAAP Financial Measures Some of the information included in this presentation is derived from Alcoa’s consolidated financial information but is not presented in Alcoa’s financial statements prepared in accordance with accounting principles generally accepted in
Slide 4: Klaus Kleinfeld
[Alcoa logo] Klaus Kleinfeld Chairman and Chief Executive Officer July 8, 2015 4
Slide 5: Driving Solid Operational Results + Transformation On Track
Driving Solid Operational Results + Transformation On Track 2Q 2015 Overview 1 Adjusted Earnings up nearly 16% Driven by: Downstream: Record ATOI of $210 million, up 4%; aerospace revenue up 29% YoY Driving Solid Midstream: ATOI of $76 million, up 9%; auto sheet revenue up ~180% YoY Upstream: Solid
Slide 6: William Oplinger
[Alcoa logo] William Oplinger Executive Vice President and Chief Financial Officer July 8, 2015 6
Slide 7: Income Statement Summary
Income Statement Summary See appendix for EBITDA and Adjusted Income reconciliations. [Alcoa logo] 7
Slide 8: Special Items
Special Items Income Statement $ Millions, except per-share amounts 2Q14 1Q15 2Q15 Segment Classification Net Income $138 $195 $140 Net Income Per Diluted Share $0.12 $0.14 $0.10 1 Restructuring and Other Corporate/ Restructuring - Related ($54) ($158) ($143) Charges/COGS Primary Metals Tax Items ($
Slide 9: Adjusted Earnings Up nearly 16% on Performance and Market Factors
Adjusted Earnings Up nearly 16% on Performance and Market Factors Net Income excluding Special Items ($ Millions) $209 -$56 $5 -$187 $43 -$68 $85 $19 $250 $216 -$16 2Q 14 LME API Currency Volume Price Productivity Energy Raw Cost 2Q 15 / Mix Materials Increases / Other Market Performance Cost Headwi
Slide 10: EPS: Record Second Quarter
EPS: Record Second Quarter 2Q15 Actual and 3Q15 Outlook – Engineered Products and Solutions 2 nd Quarter ATOI Results 2 nd Quarter Business Highlights 2Q 14 1Q 15* 2Q 15* Record second quarter ATOI, up 4% year-over-year Revenue up 15% year-over-year, EBITDA margin of 21.5% rd 3 Party Revenue ($ Mill
Slide 11: GRP: Stronger Results on Performance and Volume
GRP: Stronger Results on Performance and Volume 2Q15 Actual and 3Q15 Outlook – Global Rolled Products 2 nd Quarter ATOI Results 2 nd Quarter Business Highlights 2Q 14 1Q 15 2Q 15 ATOI up 9% and EBITDA/MT up 18%, year-over-year rd Strong productivity and record Auto sheet revenue (up ~ 180% year- 3 P
Slide 12: Alumina Delivers Best First Half ATOI since 2007
Alumina Delivers Best First Half ATOI since 2007 2Q15 Actual and 3Q15 Outlook – Alumina 2nd Quarter ATOI Results 2nd Quarter Business Highlights 2Q 14 1Q 15 2Q 15 Best first half ATOI since 2007 Production (kmt) 4,077 3,933 3,977 Third-party shipments up, primarily in Australia and Spain 3rd Party S
Slide 13: Primary Metals Resilient Despite Strong Headwinds
Primary Metals Resilient Despite Strong Headwinds 2Q15 Actual and 3Q15 Outlook – Primary Metals nd nd 2 Quarter ATOI Results 2 Quarter Business Highlights 2Q 14 1Q 15 2Q 15 Realized price declines ~10% sequentially, largely driven by lower regional premiums; ~22% drop in Midwest Transaction Producti
Slide 14: Base Business DWC Improved Year-over-Year, Acquisitions Add 3 days
Base Business DWC Improved Year-over-Year, Acquisitions Add 3 days Average Days Working Capital since Second Quarter 2010 Acquisitions (3 days) 12 days Alcoa ex-Acquisitions (31 days) 43 44 from base business 40 40 40 >$700M FCF 37 36 36 34 35 34 32 33 32 33 30 31 30 29 28 28 31 2 days lower from ba
Slide 15: 2nd Quarter 2015 Cash Flow Overview
2 nd Quarter 2015 Cash Flow Overview 2Q14, 1Q15 and 2Q15 Cash Flow ($ Millions) 2Q14 1Q15 2Q15 Net Income before Noncontrolling Interests $129 $255 $207 DD&A $350 $321 $320 Change in Working Capital $31 ($595) $44 Pension Expense in Excess of Contributions ($82) $37 $37 Australian Gas Prepayment - -
Slide 16: Maintained Strong Balance Sheet
Maintained Strong Balance Sheet Debt, Net Debt, and Debt-to-LTM EBITDA ($Millions) Cash Net Debt Debt-to-LTM EBITDA 9,165 9,371 8,829 8,852 8,817 8,789 1,939 8,319 1,543 1,191 1,861 1,877 1,311 1,437 4.20 3.39 3.27 2.87 2.49 2.22 2.12 7,622 7,432 6,968 6,882 6,975 7,626 7,478 2010 2011 2012 2013 201
Slide 17: Maintaining Our 2015 Financial Targets
Maintaining Our 2015 Financial Targets 2015 Annual Financial Targets and Year-to-Date Results Taking the Right Actions Overarching 2015 Financial Target YTD: Drive Productivity Gains of $900M $562M Manage Return-Seeking Capital Generate of $750M $283M $500M Control Sustaining Capital of $240M Free C
Slide 18: Alumina Surplus Tightens; Pricing Steady
Alumina Surplus Tightens; Pricing Steady 2015E Alumina Supply/Demand, Alumina Price Index (API) and % Third-Party Shipments 2015E Alumina Supply/Demand Balance Alumina Price Index $450 Alumina Price Index 1Q15 Surplus Surplus 2,428 2,699 $400 $350 $300 ’000 mt China Rest of World Dec-10 Dec-11 Dec-1
Slide 19: Aluminum Market Fundamentals are Mixed
Aluminum Market Fundamentals are Mixed 6.5% 2015E Demand Growth 2015E Aluminum Supply/Demand Balance Russia 2015E Primary Aluminum Consumption (mmt), Annualized Growth (%) Brazil 0.9 -3% 1Q15 1.0 -1% Rest of Other ¹ MENA 2.1 2.1 4% 5% Surplus ’000 mt China 7% World SE Asia 2.3 2.1 10% 326 India Nort
Slide 20: Klaus Kleinfeld
[Alcoa logo] Klaus Kleinfeld Chairman and Chief Executive Officer July 8, 2015 20
Slide 21: Aerospace Remains Strong; Steady Growth in Automotive
Aerospace Remains Strong; Steady Growth in Automotive Alcoa End Markets: Current Assessment of 2015 vs. 2014 End Market 2015 Growth Global and Regional Commentary Aerospace • Shift from 2015 to 2016 on slower new platform ramp-up (mainly A350 and CSeries); 2016/2017 growth rates nearly double prior
Slide 22: Heavy Duty Truck – Strong U.S., Weak China; Packaging Stable
Heavy Duty Truck – Strong U.S., Weak China; Packaging Stable Alcoa End Markets: Current Assessment of 2015 vs. 2014 End Market 2015 Growth Global and Regional Commentary • OEM supply chain supporting higher than expected build rates in 2Q15 Heavy Duty Truck • Peaking Production: +18.7% YTD at 137k t
Slide 23: Solid Commercial B&C Growth; Global Airfoil Market Improves
Solid Commercial B&C Growth; Global Airfoil Market Improves Alcoa End Markets: Current Assessment of 2015 vs. 2014 End Market 2015 Growth Global and Regional Commentary Building and Positive Early Indicators: Construction NA • Non-Residential Contracts Awarded: +13.6% in May (mean of 12-month rollin
Slide 24: Transforming Alcoa – Creating Compelling Sustainable Value
Transforming Alcoa – Creating Compelling Sustainable Value Building a Lightweight Multi-Material Creating a Globally Competitive Innovation Powerhouse Commodity Business Increasing share in exciting Increasing competitiveness, growth markets mitigating downside risk e.g., aerospace, automotive, heav
Slide 25: Investments Position Alcoa as a Premier Aerospace Solutions Provider
Investments Position Alcoa as a Premier Aerospace Solutions Provider 2014 2 Pro forma Organic and Inorganic Aerospace Investments Increase Multi-Material, Multi-Platform Offerings Aerospace Revenue ~$5.6B Organic Growth Through Innovation Inorganic Investments in Robust Aerospace Market 3 4 Hampton1
Slide 26: Positioned on Every Large Commercial Aircraft, Regardless of Material
Positioned on Every Large Commercial Aircraft, Regardless of Material Indexed Revenue by Aircraft Type and Key Engine Type 1 Strong Revenue Generator on All Platforms Better Coverage of Key Engine Platforms Alcoa Pro forma Revenue / Aircraft (Indexed to B737) Alcoa Pro forma Revenue / Engine (Indexe
Slide 27: Robust Aerospace Fundamentals
Robust Aerospace Fundamentals rd Commercial Jet Deliveries of 2012-2014 Actual and 2015-2024 3 Party Forecasts ($B) Actual Strong Aerospace Fundamentals Min. forecast “Emerging Asia” adds 100M new passengers each 1 Max. forecast year and drives 5% CAGR in travel demand (2014-2034) ($B) 2 Aircraft Re
Slide 28: Firth Rixson Integration – On Track to Achieve 2016 Targets
Firth Rixson Integration – On Track to Achieve 2016 Targets 2014 Actual and 2016 Target Revenue and EBITDA and 2Q 2015 EBITDA Annualized Run Rate to 2016 EBITDA Target Revenue $1.6B EBITDA $350M EBITDA $100-110M 21.9% EBITDA margin Revenue Acceleration of demand for Next Gen EBITDA $1.0B EBITDA Engi
Slide 29: RTI Acquisition On Track for End of July Close
RTI Acquisition On Track for End of July Close Net Synergies $100M 4 30% in year 2 Highlights of RTI Acquisition, Closing Progress and Synergy Preparation 100% in year 4 Enhances Offerings: Expands Ti, Value-Add Solutions Identified 2019 RTI Gross Synergies Builds value -add portfolio; Maximize inte
Slide 30: GRP: Lightweighting Trend Drives Substantial Automotive Growth
GRP: Lightweighting Trend Drives Substantial Automotive Growth Automotive Demand Drivers for Auto & Brazing Sheet and Alcoa Automotive 2014-2018 Revenue OEMs Need Fuel Economy and Consumer Benefits Auto & Brazing Sheet: Profitable Growth U.S. CAFE Regulations (MPG) Automotive Revenue ($M) 54.5 Brazi
Slide 31: GPP: New Global Business Structure Maximizing Profits
GPP: New Global Business Structure Maximizing Profits 12-month 1 Capacity Review 2010 and 2014 Actual and 2016 Target Cost Curve Positions and Global Business Unit 2Q15 Updates 2.8 MMT Refining and 500 Kmt Smelting Alumina Target -9% points Primary Metals Target -13% points 30 th 25 th 21 st 51 st 4
Slide 32: Creating Sustainable Value for Shareholders
Creating Sustainable Value for Shareholders Continue to Deliver Improved Operational Results Capture Value Add Market Share from Our Investments Drive Continued Upstream Competitiveness [Alcoa logo] 32
Slide 33: Additional Information
Additional Information Nahla Azmy Vice President, Investor Relations Alcoa 390 Park Avenue New York, NY 10022-4608 Telephone: (212) 836-2674 Email: nahla.azmy@alcoa.com www.alcoa.com [Alcoa logo] 33
Slide 34: Annual Sensitivity Summary
Annual Sensitivity Summary LME Aluminum Annual Net Income Sensitivity +/- $100/MT = +/- $190 million API/Spot Alumina Annual Net Income Sensitivity +/- $10/MT = +/- $20 million Currency Annual Net Income Sensitivity Australian $ +/- $11 million per 0.01 change in USD / AUD Brazilian $ +/- $ 1 millio
Slide 35: Composition of Regional Premium Pricing Convention
Composition of Regional Premium Pricing Convention 2015E Shipments Regional Premiums Estimated Pricing Convention 50% Midwest – Platts 15-day lag 35% Rotterdam DDP– Metal Bulletin 45-day lag 10% CIF Japan – Platts Month prior to Quarter start 5% Negotiated Annual [Alcoa logo] 35
Slide 36: Second Quarter 2015 Supplemental Segment Bridges
Second Quarter 2015 Supplemental Segment Bridges EPS Sequential Quarter Bridge GRP Sequential Quarter Bridge $ Millions $ Millions $18 -$6 $210 $11 -$6 $6 $1 $1 -$5 $12 $76 $194 -$1 $3 $4 $54 1Q15 Currency Volume Price / Mix Productivity Cost 2Q15 1Q15 LME Currency Volume Price / Productivity Energy
Slide 37: Revenue Change by Market - 2Q 2015
Revenue Change by Market - 2Q 2015 Sequential Year-Over-Year 2Q15 Third-Party Revenue Change Change Aerospace 1% 24% Automotive 9% 54% 26% 22% B&C 7% (20%) Comm. Transport 3% 5% Industrial Products (0%) (32%) 5% IGT 15% (9%) 5% Packaging (1%) (18%) 16% 7% Distribution/Other (17%) 209% 1% 11% 5% Alum
Slide 38: Revenue Change by Market – YTD 2015
Revenue Change by Market – YTD 2015 2Q YTD Third-Party Revenue Year-Over-Year Change Aerospace 24% Automotive 50% 27% 22% B&C (19%) Comm. Transport 9% Industrial Products (30%) 5% IGT (7%) 5% Packaging (12%) 16% 7% Distribution/Other 195% 1% 11% 5% Alumina 13% 1% Primary Metals 1% [Alcoa logo] 38
Slide 39: Composition of Upstream Production Costs
Composition of Upstream Production Costs Refining Cost Structure Input Cost Inventory flow Pricing Annual ATOI Fuel Oil convention Sensitivity Natural gas 6% Conversion 14% Fuel oil 1 – 2 months Prior month $2m per $1/bbl 42% Caustic 9% Natural gas N/A Spot 1 $13m per $1/GJ 1 3 - 6 months Spot & sem
Slide 40: Alcoa Upstream capacity closed, sold and idled
Alcoa Upstream capacity closed, sold and idled Smelting Capacity Refining Capacity Closed/sold since December 2007 Idled Closed/sold since December 2007 Idled Facility Year kmt Facility kmt Facility Year kmt Facility kmt Baie Comeau 2008 53 Rockdale 191 Jamalco (sale of 55% interest) 2014 779 Surina
Slide 41: 6.5% 2015E Demand Growth
6.5% 2015E Demand Growth Russia 2015E Primary Aluminum Consumption (mmt), Annualized Growth (%) Brazil 0.9 1.0 -3% Other ¹ 2.1 -1% 5% MENA 2.1 4% SE Asia 2.1 7% India 2.3 10% 4.3 1% North Asia 2015 demand +6.5% North America 6.7 5% World ex China +3.5% Europe 6.7 1.5% China 29.2 9.5% 57.5 mmt 1 Othe
Slide 42: Global Inventories Fall to 62 Days; Down 8 Days YoY
Global Inventories Fall to 62 days; Down 8 days YoY Global inventories vs. LME price over time $ Days of $ per metric ton Consumption Days of Days of Days of Consumption Consumption Consumption 105 83 days 70 days 62 days Days of Consumption 98 108 days LME Cash Price LME Cash Price LME Cash Price $
Slide 43: Premiums Down from Record Highs, Break Below 2014 Levels
Premiums Down from Record Highs, Break Below 2014 Levels $ per metric Regional Premiums over time $ per metric ton ton $600 $600 Region 2Q15 Average Average Europe $203/MT 2Q15 vs. 2Q14 $500 $500 Japan $184/MT Europe -48% Midwest USA $264/MT Japan -50% $400 $400 Midwest USA -36% $300 $300 $200 $200
Slide 44: Special Items
Special Items Pre-tax, Before NCI After-tax, After NCI Income Statement $ Millions, except per-share amounts 1Q15 2Q15 1Q15 2Q15 Classification Segment Net Income $481 $282 $195 $140 Net Income Per Diluted Share - - $0.14 $0.10 Restructuring and Corporate/ Restructuring-Related1 ($177) ($221) ($158)
Slide 45: Reconciliation of ATOI to Consolidated Net (Loss) Income Attributable to Alcoa
Reconciliation of ATOI to Consolidated Net (Loss) Income Attributable to Alcoa (in millions) 1Q14 2Q14 3Q14 4Q14 2014 1Q15 2Q15 Total segment ATOI* $318 $407 $581 $659 $1,965 $656 $568 Unallocated amounts (net of tax): Impact of LIFO (7) (8) (18) (21) (54) 7 36 Metal price lag* 7 11 38 22 78 (23) (3
Slide 46: Reconciliation of Adjusted Income
Reconciliation of Adjusted Income (in millions, except Income Diluted EPS (3) per-share amounts) Quarter ended Quarter ended June 30, March 31, June 30, June 30, March 31, June 30, 2014 2015 2015 2014 2015 2015 Net income attributable to Alcoa $138 $195 $140 $0.12 $0.14 $0.10 Restructuring and other
Slide 47: Reconciliation of Alcoa Adjusted EBITDA
Reconciliation of Alcoa Adjusted EBITDA ($ in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2Q14 1Q15 2Q15 Net income (loss) attributable to Alcoa $1,310 $1,233 $2,248 $2,564 $(74) $(1,151) $254 $611 $191 $(2,285) $268 $138 $195 $140 Add: Net income (loss) attributable to noncontr
Slide 48: Reconciliation of Alumina Adjusted EBITDA
Reconciliation of Alumina Adjusted EBITDA ($ in millions, except per metric ton amounts) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2Q14 1Q15 2Q15 After-tax operating income (ATOI) $632 $682 $1,050 $956 $727 $112 $301 $607 $90 $259 $370 $38 $221 $215 Add: Depreciation, depletion, and amo
Slide 49: Reconciliation of Primary Metals Adjusted EBITDA
Reconciliation of Primary Metals Adjusted EBITDA ($ in millions, except per metric ton amounts) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2Q14 1Q15 2Q15 After-tax operating income (ATOI) $808 $822 $1,760 $1,445 $931 $(612) $488 $481 $309 $(20) $594 $97 $187 $67 Add: Depreciation, deplet
Slide 50: Reconciliation of Global Rolled Products Adjusted EBITDA
Reconciliation of Global Rolled Products Adjusted EBITDA (1) ($ in millions, except per metric ton amounts) 2004 2005 2006 2007 2008 2009 2010 (2) 2011 (2) 2012 (2) 2013 2014 2Q14 1Q15 2Q15 After-tax operating income (ATOI) $290 $300 $317 $151 $(41) $(106) $241 $260 $346 $252 $245 $70 $54 $76 Add: D
Slide 51: Reconciliation of Engineered Products and Solutions Adjusted EBITDA
Reconciliation of Engineered Products and Solutions Adjusted EBITDA (1) ($ in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (2) 2014 (3) 2Q14 1Q15 (4) 2Q15 (4) After-tax operating income (ATOI) $161 $276 $382 $423 $522 $311 $419 $537 $612 $726 $756 $202 $194 $210 Add: Depreciation, dep
Slide 52: Reconciliation of Firth Rixson Adjusted EBITDA
Reconciliation of Firth Rixson Adjusted EBITDA 1/1/14 – 11/19/14 – 2Q15 ($ in millions) 11/18/14(1) 12/31/14 2014(2) 2Q15 Annualized After-tax operating income (ATOI) $77 $(12) $65 $15 $60 Add: Depreciation, depletion, and amortization 47 9 56 20 80 Equity loss (income) – – – – – Income taxes 28 (6)
Slide 53: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (in millions) Year ended Quarter ended December 31, December 31, December 31, December 31, December 31, June 30, March 31, June 30, 2010 2011 2012 2013 2014 2014 2015 2015 Cash from $2,261 $2,193 $1,497 $1,578 $1,674 $518 $(175) $472 operations Capital expenditures (
Slide 54: Days Working Capital
Days Working Capital ($ in millions) Quarter ended (3) (3) 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 Receivables from customers, less allowances $1,709 $1,650 $1,600 $1,573 $1,704 $1,483 $1,427 $1,383 $
Slide 55: Reconciliation of Net Debt
Reconciliation of Net Debt (in millions) December 31, March 31, June 30, 2010 2011 2012 2013 2014 2015 2015 Short-term borrowings $92 $62 $53 $57 $54 $80 $50 Commercial paper – 224 – – – – – Long-term debt due within one year 231 445 465 655 29 26 26 Long-term debt, less amount due within one year 8
Slide 56: Reconciliation of Debt-to-Adjusted EBITDA Ratio
Reconciliation of Debt-to-Adjusted EBITDA Ratio ($ in millions) 2010 2011 2012 2013 2014 1Q15* 2Q15* Net income (loss) attributable to Alcoa $254 $611 $191 $(2,285) $268 $641 $643 Add: Net income (loss) attributable to noncontrolling interests 138 194 (29) 41 (91) (12) 64 Loss from discontinued oper
Slide 57: Advancing each generation.
Advancing each generation. [Alcoa logo]