 4 th Quarter Earnings Conference 12 January 12, 2015 [Alcoa logo] Exhibit 99.2 |
 Cautionary Statement 2 [Alcoa logo] 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,” “forecasts,” “intends,” “outlook,” “plans,” “projects,” “sees,” “should,” “targets,” “will,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements, including, without limitation, forecasts concerning global demand growth for aluminum, end market conditions, supply/demand balances, and growth opportunities for aluminum in automotive, aerospace, and other applications; targeted financial results or operating performance; statements about Alcoa’s strategies, outlook, and business and financial prospects; and statements regarding Alcoa’s portfolio transformation, including the expected benefits of acquisitions. These statements reflect beliefs and assumptions that are based on Alcoa’s perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Forward-looking statements are subject to a number of risks and uncertainties and are not guarantees of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: (a) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices and premiums, as applicable, for primary aluminum, alumina, and other products, and fluctuations in indexed-based and spot prices for alumina; (b) deterioration in global economic and financial market conditions generally; (c) unfavorable changes in the markets served by Alcoa, including aerospace, automotive, commercial transportation, building and construction, packaging, and industrial gas turbine; (d) the impact of changes in foreign currency exchange rates on costs and results, particularly the Australian dollar, Brazilian real, Canadian dollar, euro, and Norwegian kroner; (e) increases in energy costs or the costs of other raw materials, or the unavailability or interruption of energy supplies; (f) Alcoa’s inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations (including increasing revenues and improving margins in its Engineered Products and Solutions and Global Rolled Products segments and moving its alumina refining and aluminum smelting businesses down on the industry cost curves) anticipated from its restructuring and productivity improvement, cash sustainability, technology, and other initiatives; (g) failure to advance or successfully implement, to achieve commercialization of, or to realize expected benefits from, new or innovative technologies, equipment, processes, or products, including, without limitation, the Alcoa Micromill TM continuous casting process, whether due to changes in the regulatory environment, competitive developments, unexpected events, such as failure of equipment or processes to meet specifications, or other factors; (h) Alcoa’s inability to realize expected benefits, in each case as planned and by targeted completion dates, from sales of non- core assets, or from newly constructed, expanded, or acquired facilities, or from international joint ventures, including the joint venture in Saudi Arabia; (i) political, economic, and regulatory risks in the countries in which Alcoa operates or sells products, including unfavorable changes in laws and governmental policies, civil unrest, imposition of sanctions, expropriation of assets, or other events beyond Alcoa’s control; (j) the outcome of contingencies, including legal proceedings, government investigations, and environmental remediation; (k) the impact of cyber attacks and potential information technology or data security breaches; (l) failure to receive, delays in the receipt of, or unacceptable or burdensome conditions imposed in connection with, required regulatory approvals or the inability to satisfy the other closing conditions to the proposed TITAL acquisition; (m) the risk that Firth Rixson or other acquired businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (n) the loss of customers, suppliers and other business relationships as a result of acquisitions, competitive developments, or other factors; and (o) the other risk factors summarized in Alcoa’s Form 10-K for the year ended December 31, 2013 and other reports filed with the Securities and Exchange Commission (SEC). Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Market projections are subject to the risks discussed above and other risks in the market. 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 the United States of America (GAAP). Certain of these data are considered “non-GAAP financial measures” under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most directly comparable GAAP financial measures and management’s rationale for the use of the non-GAAP financial measures can be found in the Appendix to this presentation. Any reference to historical EBITDA means adjusted EBITDA, for which we have provided calculations and reconciliations in the Appendix. Alcoa has not provided a reconciliation of any forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure, due primarily to variability and difficulty in making accurate forecasts and projections, as not all of the information necessary for a quantitative reconciliation is available to Alcoa without unreasonable effort. |
 Klaus Kleinfeld Chairman and Chief Executive Officer 3 January 12, 2015 [Alcoa logo] |
 Transformation Delivering Results; Profitability Up YOY 1) 2014 Cash from Operations of $1.7 billion 2) Jamaica bauxite mine and alumina refinery owned 55% by Alcoa Minerals of Jamaica, L.L.C. 4 [Alcoa logo] Delivering Strong Operational Performance Strong Operational performance: – Downstream: 19 th Consecutive Quarter of YOY ATOI growth excluding Firth Rixson – Midstream: ATOI of $71 million (+238% YOY) – Upstream: Improved Performance – 13 Consecutive Quarters Alumina segment: ATOI of $178 million Primary Metals segment: ATOI of $267 million 4Q14 Cash from Operations of $1.5 billion, highest quarter in history 4Q14 Free Cash Flow of $989 million, highest quarter since 4Q 2010 2014 Productivity: $1.2 billion Across All Segments 2014 Free Cash Flow 1 : $455 million , 18% improvement over 2013 4Q 2014 Overview Accelerating Portfolio Transformation Closed $3.0 billion Firth Rixson acquisition Announced TITAL acquisition ; expected to close by end of 1Q 2015 Expands global growth platform for titanium aerospace components Unveiled Micromill™ for the World’s most advanced aluminum alloy Finalized sale of three European rolling mills to a subsidiary of Atlas Holdings, L.L.C. Safely Executed Australian rolling mill closures of 200 kmt capacity Sold Jamalco ownership interest 2 to Noble Group Ltd for $140 million Saudi Arabia refinery fully operational ; first alumina from Saudi Arabian bauxite Sold stake in Mt. Holly smelter to Century Aluminum Company for $67.5 million |
 William Oplinger Executive Vice President and Chief Financial Officer 5 January 12, 2015 [Alcoa logo] |
 Income Statement Summary 6 See appendix for Adjusted Income reconciliation. [Alcoa logo] $ Millions, except aluminum prices and per-share amounts 4Q13 3Q14 4Q14 Prior Year Change Sequential Change Realized Aluminum Price ($/MT) $2,157 $2,538 $2,578 $421 $40 Revenue $5,585 $6,239 $6,377 $792 $138 Cost of Goods Sold $4,708 $4,904 $4,973 $265 $69 COGS % Revenue 84.3% 78.6% 78.0% (6.3 % pts.) (0.6 % pts.) Selling, General Administrative, Other $255 $243 $271 $16 $28 SGA % Revenue 4.6% 3.9% 4.2% (0.4 % pts.) 0.3 % pts. Other (Income) Expenses , Net ($10) $23 ($6) $4 ($29) Impairment of Goodwill $1,731 - - ($1,731) - Restructuring and Other Charges $380 $209 $388 $8 $179 Effective Tax Rate (15.6%) 60.3% 51.3% 66.9% pts. (9.0% pts.) EBITDA $565 $1,035 $1,073 $508 $38 Net (Loss) Income ($2,339) $149 $159 $2,498 $10 Net (Loss) Income Per Diluted Share ($2.19) $0.12 $0.11 $2.30 ($0.01) Income per Diluted Share excl Special Items $0.04 $0.31 $0.33 $0.29 $0.02 |
 Special Items 1) Total restructuring-related charges in 4Q14 of $200 million (80 percent non-cash, 20 percent cash) See appendix for Adjusted Income reconciliation 7 [Alcoa logo] $ Millions, except per-share amounts 4Q13 3Q14 4Q14 Income Statement Classification Segment Net (Loss) Income ($2,339) $149 $159 Net (Loss) Income Per Diluted Share ($2.19) $0.12 $0.11 Restructuring -Related ($46) ($202) ($200) Restructuring and Other Charges/COGS Corporate / Primary Metals Tax Items ($361) - ($53) Income Taxes Corporate Acquisition Costs - ($14) ($22) SG&A/Interest Expense Corporate Mark-to-Market Energy Contracts $7 ($14) $2 Other (Income) Expenses, Net Corporate Gain on Asset Sale - $9 - Other Expenses, Net Corporate Government Investigations Resolution ($243) - - Restructuring and Other Charges Corporate Goodwill Impairment ($1,719) - - Impairment of Goodwill Corporate Capital Projects Write-off ($13) - - Restructuring and Other Charges Corporate Saudi JV Potline Impact/Massena Fire ($4) - - COGS / Other Income, Net Primary Metals / EPS / Corporate Special Items ($2,379) ($221) ($273) Net Income excl Special Items $40 $370 $432 Net Income per Diluted Share excl Special Items $0.04 $0.31 $0.33 1 |
 Earnings Growth Driven by Performance and Pricing 8 See appendix for Adjusted Income reconciliation Net Income excluding Special Items ($ Millions) Market +$170 Performance +$390 Cost Headwinds/Other -$168 158 16 26 210 153 27 37 133 432 40 Volume LME 4Q 13 Energy Raw Materials Currency Price / Mix Productivity Cost Increases / Other 4Q 14 [Alcoa logo] |
 4 th Quarter Cash Flow Overview 9 See appendix for Free Cash Flow reconciliation ($ Millions) 4Q13 3Q14 4Q14 Net (Loss) Income before Noncontrolling Interests ($2,310) $131 $114 DD&A $350 $346 $336 Change in Working Capital $522 ($411) $642 Pension Contributions ($108) ($164) ($55) Other Adjustments $2,466 $347 $421 Cash from Operations $920 $249 $1,458 Dividends to Shareholders ($33) ($36) ($56) Equity Issuance - $1,213 - Change in Debt ($14) $981 ($110) Net (Distributions)/Contributions from Noncontrolling Interests ($29) ($20) ($36) Other Financing Activities $11 $2 $21 Cash from Financing Activities ($65) $2,140 ($181) Capital Expenditures ($422) ($283) ($469) Acquisitions/Divestitures/Asset Sales $5 $5 ($2,138) Other Investing Activities ($8) ($3) ($46) Cash from Investing Activities ($425) ($281) ($2,653) Cash on Hand $1,437 $3,272 $1,877 4Q13, 3Q14 & 4Q14 Cash Flow 4Q14 CFO $1.5 billion Highest quarter in history $1.9 billion cash on hand [Alcoa logo] |
 10 Share Gains Drive Engineered Products and Solutions Revenue Growth See appendix for EBITDA reconciliation [Alcoa logo] $ Millions * Excluding Firth Rixson 4Q 13 3Q 14 4Q 14* Party Revenue ($ Millions) 1,405 1,495 1,566 ATOI ($ Millions) 168 209 165 EBITDA Margin 20.3% 23.5% 18.9% 4 th Quarter Results 4 th Quarter Business Highlights 1 st Quarter Outlook 4 th Quarter Performance Bridge 4Q14 Actual and 1Q15 Outlook – Engineered Products and Solutions $61 $15 4Q14 $165 Firth Rixson -$12 Cost Increases -$47 Productivity Price / Mix -$13 Volume Currency -$7 4Q13 $168 * EBITDA Margin excluding Firth Rixson of 20.6% Aerospace market remains strong Continued recovery in N.A. Non-Residential Construction; European weakness continues, outlook varies across regions Strong N.A. Heavy Duty Truck build rates; partially offset by Europe Share gains through innovation and productivity continue across all sectors ATOI up 15% to 20% sequentially; 0% to 5% year-over-year as forex pressures are expected to continue ($9M) Revenue up 11% year-over-year (organic up 6%) driven by strong share gains across all markets 19 th consecutive quarter of year-over-year ATOI growth* Firth Rixson integration ATOI impact of $12M Year-over-year improvement driven by productivity, strong Aero, Commercial Transportation, Building & Construction revenues* |
 See appendix for EBITDA reconciliation GRP = Global Rolled Products 11 Aero Mix, Auto Sheet Growth, Productivity Drive Strong GRP Earnings [Alcoa logo] $ Millions 4Q 13 3Q 14 4Q 14 Party Revenue ($ Millions) 1,645 1,926 1,888 ATOI ($ Millions) 21 103 71 EBITDA/MT ($) 185 409 317 4 th Quarter Business Highlights 1 st Quarter Outlook 4 th Quarter Performance Bridge 4Q14 Actual and 1Q15 Outlook – Global Rolled Products 4 th Quarter Results $60 $21 $29 $71 $21 4Q14 Cost Increases / Other -$47 Energy -$5 Productivity Price / Mix -$7 Volume Currency -$1 LME 4Q13 |
 Alumina Earnings Nearly Triple Sequentially 12 [Alcoa logo] $ Millions 4Q14 Actual and 1Q15 Outlook – Alumina 4 th Quarter Results 4 th Quarter Business Highlights 4 th Quarter Performance Bridge $13 $10 $55 $1 $40 $16 $178 $62 4Q14 Cost Increases / Other -$19 Energy Prod- uctivity Price / Mix Volume Currency LME 3Q14 4Q 13 3Q 14 4Q 14 Production (kmt) 4,249 4,196 4,161 Party Shipments (kmt) 2,578 2,714 2,928 Party Revenue ($ Millions) 832 886 1,017 Party Price ($/MT) 316 320 343 ATOI ($ Millions) 70 62 178 1 st Quarter Outlook |
 Primary Earnings Up on Productivity, Pricing and Currency 13 [Alcoa logo] $ Millions 4Q14 Actual and 1Q15 Outlook – Primary Metals 4 th Quarter Results 4 th Quarter Business Highlights 4 th Quarter Performance Bridge $30 $11 $33 $23 $1 $267 $245 Cost Increases / Other -$7 Energy -$61 Prod- uctivity Price / Mix Volume -$8 Currency LME 3Q14 4Q14 3Q Portfolio actions 4Q 13 3Q 14 4Q 14 Production (kmt) 866 760 731 3 rd Party Shipments (kmt) 717 642 637 3 rd Party Revenue ($ Millions) 1,618 1,865 1,852 3 rd Party Price ($/MT) 2,157 2,538 2,578 ATOI ($ Millions) (35) 245 267 1 st Quarter Outlook |
 Transformation Leads to Change in Net Income Sensitivities 14 Alcoa Net Income Sensitivities LME API AUD BRL EUR CAD NOK Benchmark +/- $100/MT +/- $10/MT +/- 0.01 USD/AUD +/- 0.01 BRL/USD +/- 0.01 USD/EUR +/- 0.01 CAD/USD +/- 0.10 NOK/USD 2014 Sensitivity $240M N/A $11M $3M $2M $5M $5M 2015 Sensitivity $190M $20M $11M $1M $2M $4M $4M [Alcoa logo] |
 Strong Performance Drives Earnings Growth, Highest Since 2008 15 See appendix for Adjusted Income reconciliation Net Income excluding Special Items ($ Millions) Market +$107 Performance +$1,113 Cost Headwinds -$461 292 757 540 1,116 357 2013 Cost Increases / Other 2014 Raw Materials 48 Energy 31 Productivity Price / Mix Volume 64 Currency 123 LME 16 [Alcoa logo] |
 Sustained Working Capital Excellence See appendix for days working capital reconciliation 16 [Alcoa logo] |
 17 See appendix for Net Debt reconciliation Maintained Strong Balance Sheet 9,816 8,338 6,882 6,975 762 1,481 1,543 1,939 1,861 1,437 1,877 7,432 2010 9,165 7,622 2009 9,819 2008 10,578 2013 8,319 2012 8,829 6,968 2011 9,371 2014 8,852 (Millions) Debt to Cap Cash Net Debt 38.1% 42.5% 38.7% 34.9% 35.3% Debt, Net Debt, and Debt-to-Capital % 37.4% 34.8% [Alcoa logo] |
 18 Achieved Overarching Free Cash Flow Goal; Actions Deployed for 2015 See appendix for Free Cash Flow reconciliation $1,194M $484M $735M $91M 37.4% Achieved overarching Free Cash Flow goal Productivity $850M Growth Capital $500M Sustaining Capital $750M Saudi JV Investment $125M Debt-to-Cap 30-35% Positive Free Cash Flow Actual 2014 and 2015 annual financial targets and 2014 full year results $455M Attain 2.25 to 2.75 Debt-to-EBITDA Capture Productivity Gains of $900M Control Sustaining Capital of $725M Taking the right actions in 2015 Manage Return-Seeking Capital of $750M Generate $500M+ of Free Cash Flow [Alcoa logo] |
 Market fundamentals remain positive 7% global demand growth Alumina surplus, Aluminum balanced Inventory at lowest level since Nov 2008 Premiums remain high See appendix for full scale charts 19 $1,000 $1,500 $2,000 $2,500 $3,000 0 7 14 21 28 35 42 49 56 63 70 77 84 91 98 105 China Incl SRB Producer Japan Port LME On Warrant Cancelled Warrants Off Exchange LME 3 Month Days of Consumption 108 days LME Cash Price $2,180/MT Days of Consumption 83 days LME Cash Price $2,663/MT Global Inventories Decline 45 days from the ’09 peak Days of Consumption Days of Consumption 63 days LME Cash Price $1,913/MT $ per metric ton Global inventories vs. LME price over time $ [Alcoa logo] 28.0 6.7 6.7 4.3 2.2 2.1 2.2 1.1 1.0 7% 4% 1.5% 1% 10% 1.5% 5% 1% 8% 7% 56.4 mmt 1 Other includes Africa, E. Europe, Latin America ex Brazil, and Oceania 2015E Primary Aluminum Consumption (mmt), Annualized Growth (%) China Europe North America North Asia India SE Asia MENA Russia Brazil Other ¹ 2.1 2015 demand +7% World ex China +4% 2015E Aluminum Supply/Demand Balance ’000 mt China Rest of World 2015 Production 26,773 25,996 2015 Production to be added 4,400 716 2015 Capacity (curtailed) or restarted (1,700) 226 Total Supply 29,473 26,938 Demand (28,060) (28,389) Net Balance 1,413 (1,451) 2015E Alumina Supply/Demand Balance ’000 mt China Rest of World 2015 Production 47,522 55,407 2015 Production to be added 5,030 3,113 2015 Capacity (curtailed) or restarted 1,331 (496) Imports/(exports) 3,000 (3,000) Total supply 56,883 55,024 Demand (56,883) (52,101) Net Balance 0 2,923 Supply/Demand Analysis 2014 Surplus 490 2014 Deficit (948) Deficit (38) SURPLUS 2,923 |
 Klaus Kleinfeld Chairman and Chief Executive Officer 20 January 12, 2015 [Alcoa logo] |
 Another Strong year for Aerospace; Steady growth in Automotive Source: Alcoa analysis 1) International Air Transport Association 2015 Expectations 21 [Alcoa logo] |
 Global Heavy Duty Truck and Packaging Markets Stable Source: Alcoa analysis 22 [Alcoa logo] |
 Solid Commercial B&C Growth; Global Airfoil Market Improves Source: Alcoa analysis B&C = Building and construction 23 [Alcoa logo] |
 Transforming Alcoa – Creating Compelling Sustainable Value 24 [Alcoa logo] |
 Driving Value-Add Growth: Revenues Up, Profits Up 1) Includes forecasted Firth Rixson revenue of $1.6B in 2016 2) Adjusted to exclude ~$975M related to 5 rolling mills closed or sold in Australia, Spain and France in 2014 3) Represents average of the EBITDA/MT for years 2010 through 2012 25 [Alcoa logo] Key value-add business metrics: 2014 actual and 2013-2016 targets EPS EBITDA margin exceeding historical high of 21.5% 21.9% EBITDA Margin Executed in 2014… …Strong progress toward 2016 targets $6.0B Revenue 2016 $5.7B 2013 $8.5B¹ GRP $900M from innovation and share gains +$2.8B $7.4B Revenue $339 EBITDA/MT EBITDA/MT at or above average historical high of $344/MT 3 $8.1B 2013 $7.1B 2016 $7.1B $6.1B² $900M from innovation and share gains +$1.0B Revenue Revenue Firth Rixson Revenue Divestiture/Closure |
 Expanding Multi-Material Portfolio through Smart Investments 1) Expected to close in 1Q2015 APP = Alcoa Power & Propulsion CFRP = carbon fiber reinforced polymer 26 [Alcoa logo] Davenport $190M: Advances Aero/Industrial Offerings Drives Al penetration on CFRP platforms; enables industry’s largest monolithic wing ribs Hampton/La Porte $125M: Extends Jet Engine Reach Firth Rixson: Grows multi-material engine capability Establishes Ti casting capabilities in EU Expands Al casting capacity in EU TITAL Ti revenue expected to increase 70% by 2019 Alcoa’s recent multi-material investments to capture growth TITAL 1 : Expands structural casting offerings Organic growth extends material range World’s first Al-Li fan blade ; - FAA Certifies P&W PurePower ® Engine for A320 neo Largest Al-Li ingots 50% larger than the nearest competitor ) Lafayette $90M+: Grows Al-Lithium Capability Drives growth in aero, transportation, auto and consumer electronics markets Metal Disks 2016 $1.6B revenue $350M EBITDA Hampton: Cuts blade weight 20% ; improved aerodynamics La Porte: Structural castings ~60% larger Primarily Ni-based Super alloys ~$100M revenue APP $2.2B revenue in 2016 (December 19, 2014) Global Leader in seamless rolled rings Largest seamless Rings 200” in diameter Rings Multi-Material mix: 60% Ni , 25% Ti , 15% Steel/Al Integrated Nickel Supply of cast stick and billet Specialized Isothermal process from Powder Metal Rotating disks from Super alloys and Ti alloys Full Range forged closed-die aero Engine Disks |
 Lightweighting: OEMs Need It, Consumers Like It Annual Savings = ((15,000 Hwy Miles/Yr ÷ 17 Hwy MPG) – (15,000 Hwy Miles/Yr ÷ 26 Hwy MPG)) x $X/gal 27 [Alcoa logo] |
 Micromill™ Differentiated Alloy: Win-Win for Customers and Alcoa 28 HSS = High Strength Steel [Alcoa logo] World’s most advanced aluminum alloy for Next-Gen automotive products 40% STRONGER LIGHTER vs. HSS vs. ingot based Al vs. ingot based Al vs. HSS Creating value for the customer Creating additional opportunity for Alcoa MORE FORMABLE Lower weight, , improved formability and design options Stronger for improved dent resistance Reduces complexity of scrap separation Lowers OEM system cost from streamlined alloy portfolio Validated Class A surface quality for external panels Micromill™ alloy characteristics and benefits to the customer and Alcoa 2X 30% 30% Unique Alloy Micro Structure Completed successful customer trials Qualifying material for next-gen auto platforms Anticipate value-add, premium margins Secured strategic development customer Enables Alcoa to attack the $3.5B total market for steel automotive applications with differentiated metal Hood Inner |
 Breakthrough Casting Technology: Fast and Flexible; Small and Powerful 29 WIP = Work In Process [Alcoa logo] |
 Improving Strong Alumina Position: Lower Cost, Continuing Price Shift 30 1) Jamaica bauxite mine and alumina refinery owned 55% by Alcoa Minerals of Jamaica, L.L.C. NG = Natural Gas [Alcoa logo] |
 Reshaping the Smelting Portfolio: More Competitive, Growing Value-Add 31 [Alcoa logo] Generate additional productivity gains Sale of Mt. Holly complete in 4Q14; 115 kmt Alcoa capacity Executing to improve global competitiveness 2014 actions Reduced high cost capacity by 549 kmt Generated $269M in productivity gains Quebec energy contracts = $38/MT savings 2014 cost position stable, 5% pts to go $/MT Production (MMT) Growing value-add products to meet end market demand Value-add products as % of total shipments Source: CRU and Alcoa analysis 57% 65% 70% 2010 2014 2016E e.g., Slab casting supporting automotive growth Global aluminum cost curve, actions to lower cost position, and value-add cast house product growth 2,500 3,000 1,000 1,500 500 0 65 60 55 50 45 2,000 40 35 30 25 20 15 10 5 0 2010: 51 st Percentile 2013: 43 rd Percentile 2014: 43 rd Percentile 2016: 38 th Percentile |
 The Right Actions to Drive Growth, Operational Performance in 2015 32 [Alcoa logo] 2015 annual financial targets Deliver Operational Performance Capture Productivity Gains of $900M Invest in Growth; Manage the Base Manage Return-Seeking Capital of $750M Control Sustaining Capital of $725M Strengthen the Balance Sheet Attain 2.25 to 2.75 Debt-to-EBITDA Generate $500M+ of Free Cash Flow |
 Transformation is Creating Compelling Sustainable Value 33 [Alcoa logo] |
 Kelly Pasterick Vice President, Investor Relations Alcoa 390 Park Avenue New York, NY 10022-4608 Telephone: (212) 836-2674 www.alcoa.com Additional Information 34 [Alcoa logo] |
 Annual Sensitivity Summary Currency Annual Net Income Sensitivity +/- $100/MT = +/- $190 million LME Aluminum Annual Net Income Sensitivity Australian $ +/- $11 million per 0.01 change in USD / AUD Brazilian $ +/- $ 1 million per 0.01 change in BRL / USD Euro € +/- $ 2 million per 0.01 change in USD / EUR Canadian $ +/- $ 4 million per 0.01 change in CAD / USD Norwegian Kroner +/- $ 4 million per 0.10 change in NOK / USD 35 +/- $10/MT = +/- $20 million API/Spot Alumina Annual Net Income Sensitivity [Alcoa logo] |
 Revenue Change by Market 36 6% 28% (3%) (1%) (5%) 9% (11%) 24% 15% (1%) 10% 43% 6% 19% 3% (5%) 10% 28% 22% 15% 17% 4% 6% 6% 7% 1% 12% 2% 16% 29% Aerospace Automotive B&C Comm. Transport Industrial Products IGT Packaging Distribution/Other Alumina Primary Metals 4Q14 Third-Party Revenue Sequential Change Year-Over-Year Change [Alcoa logo] |
 Special Items See appendix for Adjusted Income reconciliation. 37 Pre-tax, Before NCI After-tax, After NCI $ Millions, except per-share amounts 3Q14 4Q14 3Q14 4Q14 Income Statement Classification Segment Income from Continuing Operations $330 $234 $149 $159 Income Per Diluted Share - - $0.12 $0.11 Restructuring-Related ($242) ($388) ($202) ($200) Restructuring and Other Charges/COGS Corporate / All Tax Items - - - ($53) Income Taxes Corporate Acquisition Costs ($20) ($25) ($14) ($22) SG&A/Interest Expense Corporate Mark-to-Market Energy Contracts ($27) $2 ($14) $2 Other Expenses, Net Corporate Gain on Asset Sale $15 - $9 - Other Expenses, Net Corporate Special Items ($274) ($411) ($221) ($273) Income from Continuing Ops excl Special Items $604 $645 $370 $432 Income per Diluted Share excl Special Items - - $0.31 $0.33 [Alcoa logo] |
 38 Alcoa Segment Bridges EPS = Engineered Products and Solutions GRP = Global Rolled Products $ Millions $ Millions Alumina Year-over-Year Bridge $ Millions $ Millions EPS Sequential Quarter Bridge 3Q14 $103 4Q14 $71 Cost Increases/ Other -$32 Energy -$5 Prod- uctivity $12 Price / Mix $10 Volume -$2 Currency -$2 Metal -$13 GRP Sequential Quarter Bridge 4Q14 $267 Cost Increases / Other -$28 Raw Mat $12 Energy -$8 Prod- uctivity $47 Price / Mix $159 Volume $0 FX $29 LME $91 4Q13 -$35 Primary Metals Year-over-Year Bridge 4Q14 $178 Cost Increases / Other -$60 Raw Mat $17 Energy -$15 Prod- uctivity $45 Price / Mix $14 Volume -$16 FX $45 LME $78 4Q13 $70 4Q14 $165 Cost Increases/ Other -$20 Price / Mix -$14 Volume Prod- uctivity $7 Currency -$3 3Q14 -$2 $209 -$12 Firth Rixson [Alcoa logo] |
 Composition of Regional Premium Pricing Convention 39 [Alcoa logo] 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 smelting closures and curtailments 40 * In 4Q14 Alcoa sold its ownership stake in the Mt. Holly smelter Location Year kmt Baie Comeau 2008 53 Eastalco 2010 195 Badin 2010 60 Warrick 2010 40 Tennessee 2011 215 Rockdale 2011 76 Baie Comeau 2013 105 Fusina 2013 44 Massena East 2013 41 Massena East 2014 84 Point Henry 2014 190 Portovesme 2014 150 Mt. Holly* 2014 115 Total 1,368 Alcoa smelting capacity closures, since Dec 2007 Location kmt Rockdale 191 Sao Luis 194 Pocos 96 Intalco 49 Wenatchee 41 Aviles 36 Portland 30 La Coruna 28 Total 665 Alcoa smelting capacity curtailments [Alcoa logo] |
 Composition of Upstream Production Costs 1 Natural gas information corresponds to Point Comfort, as Australia is priced on a rolling 16 quarter average 41 [Alcoa logo] Fuel Oil 9% Natural gas 12% Caustic 9% Bauxite 27% Conversion 43% Input Cost Inventory flow Pricing convention Annual ATOI Sensitivity Fuel oil 1 – 2 months Prior month $2m per $1/bbl Natural gas N/A Spot 1 $13m per $1/GJ 1 Caustic soda 3 - 6 months Spot & semi- annual $8m per $10/DMT Refining Cost Structure Alumina 35% Carbon 12% Power 26% Materials 7% Conversion 20% Smelting Cost Structure Input Cost Inventory flow Pricing convention Annual ATOI Sensitivity Coke 1 - 2 months Spot, quarterly & semi-annual $7m per $10/MT Pitch 1 - 2 months Spot, quarterly & semi-annual $2m per $10/MT |
 Source: Alcoa estimates, CRU, Harbor, Wood Mackenzie, SMM 2015 growth maintains momentum from 2014 42 [Alcoa logo] 28.0 6.7 6.7 4.3 2.2 2.1 2.2 1.1 1.0 7% 4% 1.5% 1% 10% 1.5% 5% 1% 8% 7% 56.4 mmt 1 Other includes Africa, E. Europe, Latin America ex Brazil, and Oceania 2015E Primary Aluminum Consumption (mmt), Annualized Growth (%) China Europe North America North Asia India SE Asia MENA Russia Brazil Other ¹ 2.1 2015 demand +7% World ex China +4% |
 43 Source: Alcoa analysis, Brook Hunt, CRU, CNIA, NBS, Chinese Customs Alumina in surplus; Aluminum remains essentially balanced [Alcoa logo] 2015E Aluminum Supply/Demand Balance ’000 mt China Rest of World 2015 Production 26,773 25,996 2015 Production to be added 4,400 716 2015 Capacity (curtailed) or restarted (1,700) 226 Total Supply 29,473 26,938 Demand (28,060) (28,389) Net Balance 1,413 (1,451) 2015E Alumina Supply/Demand Balance ’000 mt China Rest of World 2015 Production 47,522 55,407 2015 Production to be added 5,030 3,113 2015 Capacity (curtailed) or restarted 1,331 (496) Imports/(exports) 3,000 (3,000) Total supply 56,883 55,024 Demand (56,883) (52,101) Net Balance 0 2,923 Supply/Demand Analysis 2014 Surplus 490 2014 Deficit (948) Deficit (38) SURPLUS 2,923 |
 Source: Alcoa estimates, IAI, LME, Marubeni, Shanghai Metal Exchange Inventory declines 7 days in 2H, lowest level since Nov 2008 44 [Alcoa logo] Global inventories vs. LME price over time $ |
 Premiums remain at record highs Source: Monthly average of daily prices - Platts Metals Week 45 [Alcoa logo] |
 Reconciliation of ATOI to Consolidated Net (Loss) Income Attributable to Alcoa 46 (in millions) 4Q13 2013 1Q14 2Q14 3Q14 4Q14 2014 Total segment ATOI $224 $1,217 $325 $418 $619 $681 $2,043 Unallocated amounts (net of tax): Impact of LIFO 40 52 (7) (8) (18) (21) (54) Interest expense (73) (294) (78) (69) (81) (80) (308) Noncontrolling interests (29) (41) 19 9 18 45 91 Corporate expense (72) (284) (67) (70) (74) (83) (294) Impairment of goodwill (1,731) (1,731) – – – – – Restructuring and other charges (283) (607) (321) (77) (189) (307) (894) Other (415) (597) (49) (65) (126) (76) (316) Consolidated net (loss) income attributable to Alcoa $(2,339) $(2,285) $(178) $138 $149 $159 $268 [Alcoa logo] |
 Reconciliation of Adjusted Income 47 [Alcoa logo] (in millions, except per- share amounts) Income Diluted EPS Quarter ended Quarter ended December 31, September 30, December 31, December 31, September 30, December 31, 2013 2014 2014 2013 2014 2014 Net (loss) income attributable to Alcoa $(2,339) $149 $159 $(2.19) $0.12 $0.11 Restructuring and other charges 302 175 200 Discrete tax items* 364 25 16 Other special items** 1,713 21 57 Net income attributable to Alcoa – as adjusted $40 $370 $432 0.04 0.31 0.33 Net income attributable to Alcoa – as adjusted is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of Alcoa excluding the impacts of restructuring and other charges, discrete tax items, and other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Net (loss) income attributable to Alcoa determined under GAAP as well as Net income attributable to Alcoa – as adjusted. * Discrete tax items include the following: • for the quarter ended December 31, 2014, a charge for the remeasurement of certain deferred tax assets of a subsidiary in Spain due to a tax rate change ($16), a benefit for an adjustment to the remeasurement of certain deferred tax assets of a subsidiary in Brazil due to a tax rate change ($3), and a net charge for a number of small items ($3); • for the quarter ended September 30, 2014, a charge for the remeasurement of certain deferred tax assets of a subsidiary in Brazil due to a tax rate change ($34) and a net benefit for a number of small items ($9); and • for the quarter ended December 31, 2013, a charge for valuation allowances related to certain Spain and U.S. deferred tax assets ($372) and a net benefit for other miscellaneous items ($8). ** Other special items include the following: • for the quarter ended December 31, 2014, an unfavorable tax impact resulting from the difference between Alcoa’s consolidated estimated annual effective tax rate and the statutory rates applicable to special items ($81), a favorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($44), costs associated with current and future acquisitions of aerospace businesses ($22), and a net favorable change in certain mark-to-market energy derivative contracts ($2); • for the quarter ended September 30, 2014, a favorable tax impact resulting from the difference between Alcoa’s consolidated estimated annual effective tax rate and the statutory rates applicable to special items ($33), a write-down of inventory related to the permanent closure of smelters in Italy and Australia ($27), costs associated with a planned acquisition of an aerospace business ($14), a net unfavorable change in certain mark-to- market energy derivative contracts ($14), a gain on the sale of an equity investment in a China rolling mill ($9), and an unfavorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($8); and • for the quarter ended December 31, 2013, an impairment of goodwill ($1,719), an unfavorable impact related to a temporary shutdown of one of the two smelter potlines at the joint venture in Saudi Arabia due to a period of pot instability ($9), a net favorable change in certain mark-to-market energy derivative contracts ($7), an insurance recovery related to the March 2012 cast house fire at the Massena, NY location ($5), and a favorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized during the nine months ended September 30, 2013 ($3). |
 Reconciliation of Adjusted Income, continued 48 [Alcoa logo] (in millions, except per- share amounts) Income Diluted EPS Year ended Year ended December 31, December 31, December 31, December 31, 2013 2014 2013 2014 Net (loss) income attributable to Alcoa $(2,285) $268 $(2.14) $0.21 Restructuring and other charges 585 703 Discrete tax items* 360 33 Other special items** 1,697 112 Net income attributable to Alcoa – as adjusted $357 $1,116 0.33 0.92 Net income attributable to Alcoa – as adjusted is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of Alcoa excluding the impacts of restructuring and other charges, discrete tax items, and other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Net (loss) income attributable to Alcoa determined under GAAP as well as Net income attributable to Alcoa – as adjusted. * Discrete tax items include the following: • for the year ended December 31, 2014, a charge for the remeasurement of certain deferred tax assets of a subsidiary in Brazil due to a tax rate change ($31), a charge for the remeasurement of certain deferred tax assets of a subsidiary in Spain due to a tax rate change ($16), and a net benefit for a number of other items ($14); and • for the year ended December 31, 2013, a charge for valuation allowances related to certain Spain and U.S. deferred tax assets ($372), a benefit related to the reinstatement under the American Taxpayer Relief Act of 2012 of two tax provisions that were applied in 2013 to Alcoa’s U.S income tax return for calendar year 2012 ($19), a charge related to prior year taxes in Spain and Australia ($10), and a net benefit for other miscellaneous items ($3). ** Other special items include the following: • for the year ended December 31, 2014, the write-down of inventory related to the permanent closure of a smelter in Italy, a smelter and two rolling mills in Australia, and a smelter in the United States ($47), costs associated with current and future acquisitions of aerospace businesses ($47), a gain on the sale of both a mining interest in Suriname and an equity investment in a China rolling mill ($20), an unfavorable impact related to the restart of one potline at the joint venture in Saudi Arabia that was previously shut down due to a period of pot instability ($19), costs associated with preparation for and ratification of a new labor agreement with the United Steelworkers ($11), a net unfavorable change in certain mark-to-market energy derivative contracts ($6), and a loss on the write-down of an asset to fair value ($2); and • for the year ended December 31, 2013, an impairment of goodwill ($1,719), a net insurance recovery related to the March 2012 cast house fire at the Massena, NY location ($22), a net favorable change in certain mark-to- market energy derivative contracts ($15), an unfavorable impact related to a temporary shutdown of one of the two smelter potlines at the joint venture in Saudi Arabia due to a period of pot instability ($9), and a write-down of inventory related to the permanent closure of two potlines at a smelter in Canada and a smelter in Italy ($6). |
 Reconciliation of Alcoa Adjusted EBITDA 49 [Alcoa logo] ($ in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 4Q13 3Q14 4Q14 Net income (loss) attributable to Alcoa $1,310 $1,233 $2,248 $2,564 $(74) $(1,151) $254 $611 $191 $(2,285) $268 $(2,339) $149 $159 Add: Net income (loss) attributable to noncontrolling interests 233 259 436 365 221 61 138 194 (29) 41 (91) 29 (18) (45) Cumulative effect of accounting changes – 2 – – – – – – – – – – – – Loss (income) from discontinued operations 27 50 (22) 250 303 166 8 3 – – – – – – Provision (benefit) for income taxes 546 464 853 1,623 342 (574) 148 255 162 428 320 312 199 120 Other (income) expenses, net (266) (478) (236) (1,920) (59) (161) 5 (87) (341) (25) 47 (10) 23 (6) Interest expense 271 339 384 401 407 470 494 524 490 453 473 112 126 122 Restructuring and other charges (29) 266 507 268 939 237 207 281 172 782 1,168 380 209 388 Impairment of goodwill – – – – – – – – – 1,731 – 1,731 – – Provision for depreciation, depletion, and amortization 1,142 1,227 1,252 1,244 1,234 1,311 1,450 1,479 1,460 1,421 1,371 350 347 335 Adjusted EBITDA $3,234 $3,362 $5,422 $4,795 $3,313 $359 $2,704 $3,260 $2,105 $2,546 $3,556 $565 $1,035 $1,073 Sales $21,370 $24,149 $28,950 $29,280 $26,901 $18,439 $21,013 $24,951 $23,700 $23,032 $23,906 $5,585 $6,239 $6,377 Adjusted EBITDA Margin 15.1% 13.9% 18.7% 16.4% 12.3% 1.9% 12.9% 13.1% 8.9% 11.1% 14.9% 10.1% 16.6% 16.8% Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. |
 Reconciliation of Alumina Adjusted EBITDA 50 [Alcoa logo] ($ in millions, except per metric ton amounts) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 4Q13 3Q14 4Q14 After-tax operating income (ATOI) $632 $682 $1,050 $956 $727 $112 $301 $607 $90 $259 $370 $70 $62 $178 Add: Depreciation , depletion, and amortization 153 172 192 267 268 292 406 444 455 426 387 102 100 90 Equity (income) loss (1) – 2 (1) (7) (8) (10) (25) (5) 4 29 2 7 10 Income taxes 240 246 428 340 277 (22) 60 179 (27) 66 153 21 26 75 Other (46) (8) (6) 2 (26) (92) (5) (44) (8) (6) (28) (1) (2) 2 Adjusted EBITDA $978 $1,092 $1,666 $1,564 $1,239 $282 $752 $1,161 $505 $749 $911 $194 $193 $355 Production (thousand metric tons) (kmt) 14,343 14,598 15,128 15,084 15,256 14,265 15,922 16,486 16,342 16,618 16,606 4,249 4,196 4,161 Adjusted EBITDA / Production ($ per metric ton) $68 $75 $110 $104 $81 $20 $47 $70 $31 $45 $55 $46 $46 $85 Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other non-operating items. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. |
 Reconciliation of Primary Metals Adjusted EBITDA 51 [Alcoa logo] ($ in millions, except per metric ton amounts) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 4Q13 3Q14 4Q14 After-tax operating income (ATOI) $808 $822 $1,760 $1,445 $931 $(612) $488 $481 $309 $(20) $594 $(35) $245 $267 Add: Depreciation , depletion, and amortization 326 368 395 410 503 560 571 556 532 526 494 128 124 117 Equity (income) loss (58) 12 (82) (57) (2) 26 (1) 7 27 51 34 22 – (11) Income taxes 314 307 726 542 172 (365) 96 92 106 (74) 203 (34) 95 89 Other 20 (96) (13) (27) (32) (176) (7) 2 (422) (8) (6) (6) 1 (2) Adjusted EBITDA $1,410 $1,413 $2,786 $2,313 $1,572 $(567) $1,147 $1,138 $552 $475 $1,319 $75 $465 $460 Production (thousand metric tons) (kmt) 3,376 3,554 3,552 3,693 4,007 3,564 3,586 3,775 3,742 3,550 3,125 866 760 731 Adjusted EBITDA / Production ($ per metric ton) $418 $398 $784 $626 $392 $(159) $320 $301 $148 $134 $422 $87 $612 $629 Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other non-operating items. Adjusted EBITDA is a non-GAAP financial measure.Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. |
 Reconciliation of Global Rolled Products Adjusted EBITDA 52 [Alcoa logo] ($ in millions, except per metric ton amounts) 2004 2005 2006 2007 2008 2009 2010* 2011* 2012* 2013 2014 4Q13 3Q14 4Q14 After-tax operating income (ATOI) $290 $300 $317 $151 $(41) $(106) $241 $260 $346 $252 $312 $21 $103 $71 Add: Depreciation , depletion, and amortization 200 220 223 227 216 227 238 237 229 226 235 58 62 57 Equity loss 1 – 2 – – – – 3 6 13 27 4 8 8 Income taxes 97 135 113 77 14 12 103 98 159 108 124 5 42 25 Other 1 1 20 1 6 (2) 1 1 (2) – (1) 1 – – Adjusted EBITDA $589 $656 $675 $456 $195 $131 $583 $599 $738 $599 $697 $89 $215 $161 Total shipments (thousand metric tons) (kmt) 2,136 2,250 2,376 2,482 2,361 1,888 1,755 1,866 1,943 1,989 2,056 481 526 508 Adjusted EBITDA / Total shipments ($ per metric ton ) $276 $292 $284 $184 $83 $69 $332 $321 $380 $301 $339 $185 $409 $317 Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other non-operating items. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. * The average Adjusted EBITDA per metric ton of these three years equals $344. |
 Reconciliation of Engineered Products and Solutions Adjusted EBITDA 53 [Alcoa logo] ($ in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 4Q13 3Q14 4Q14* After-tax operating income (ATOI) $161 $276 $382 $423 $522 $311 $419 $537 $612 $726 $767 $168 $209 $165 Add: Depreciation , depletion, and amortization 168 160 152 163 165 177 154 158 158 159 173 40 40 52 Equity loss (income) – – 6 – – (2) (2) (1) – – – – – – Income taxes 70 120 164 184 215 138 198 258 297 348 374 79 100 81 Other 106 (11) (2) (7) 2 1 – (1) (9) (2) – (2) 2 (2) Adjusted EBITDA $505 $545 $702 $763 $904 $625 $769 $951 $1,058 $1,231 $1,314 $285 $351 $296 Third -party sales $4,283 $4,773 $5,428 $5,834 $6,199 $4,689 $4,584 $5,345 $5,525 $5,733 $6,006 $1,405 $1,495 $1,566 Adjusted EBITDA Margin 11.8% 11.4% 12.9% 13.1% 14.6% 13.3% 16.8% 17.8% 19.1% 21.5% 21.9% 20.3% 23.5% 18.9% * In the quarter and year ended December 31, 2014, the Third-party sales and Adjusted EBITDA of Engineered Products and Solutions includes $81 and $(10), respectively, related to the acquisition of an aerospace business, Firth Rixson. Excluding these amounts, EBITDA Margin was 20.6% and 22.3% for the quarter and year ended December 31, 2014, respectively. Alcoa’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Other line in the table above includes gains/losses on asset sales and other non-operating items. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. |
 Reconciliation of Free Cash Flow 54 [Alcoa logo] (in millions) Quarter ended March 31, 2012 June 30, September 30, December 31, 2012 2012 2012 March 31, 2013 June 30, September 30, 2013 2013 December 31, 2013 March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 Cash from operations $(236) $537 $263 $933 $(70) $514 $214 $920 $(551) $518 $249 $1,458 Capital expenditures (270) (291) (302) (398) (235) (286) (250) (422) (209) (258) (283) (469) Free cash flow $(506) $246 $(39) $535 $(305) $228 $(36) $498 $(760) $260 $(34) $989 Free Cash Flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered necessary to maintain and expand Alcoa’s asset base and are expected to generate future cash flows from operations. It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. |
 Reconciliation of Free Cash Flow, continued 55 [Alcoa logo] (in millions) Quarter ended March 31, 2009 June 30, September 30, December 31, 2009 2009 2009 March 31, 2010 June 30, September 30, 2010 2010 December 31, 2010 March 31, 2011 June 30, 2011 September 30, 2011 December 31, 2011 Cash from operations $(271) $328 $184 $1,124 $199 $300 $392 $1,370 $(236) $798 $489 $1,142 Capital expenditures (471) (418) (370) (363) (221) (213) (216) (365) (204) (272) (325) (486) Free cash flow $(742) $(90) $(186) $761 $(22) $87 $176 $1,005 $(440) $526 $164 $656 Free Cash Flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered necessary to maintain and expand Alcoa’s asset base and are expected to generate future cash flows from operations. It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. |
 Days Working Capital 56 [Alcoa logo] ($ in millions) Quarter ended 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 Receivables from customers, less allowances $1,709 $1,650 $1,600 $1,573 $1,704 $1,483 $1,427 $1,383 $1,391 $1,401 $1,526 $1,513 Add: Deferred purchase price receivable* 85 144 104 53 50 223 347 339 238 371 438 395 Receivables from customers, less allowances , as adjusted 1,794 1,794 1,704 1,626 1,754 1,706 1,774 1,722 1,629 1,772 1,964 1,908 Add: Inventories 3,079 3,097 3,051 2,894 2,961 2,949 2,932 2,783 2,974 3,201 3,194 3,064 Less: Accounts payable, trade 2,660 2,594 2,496 2,587 2,656 2,820 2,746 2,816 2,813 2,880 3,016 3,021 Working Capital** $2,213 $2,297 $2,259 $1,933 $2,059 $1,835 $1,960 $1,689 $1,790 $2,093 $2,142 $1,951 Sales $6,006 $5,963 $5,833 $5,898 $5,833 $5,849 $5,765 $5,585 $5,454 $5,836 $6,239 $6,377 Days Working Capital 34 35 36 30 32 29 31 28 30 33 32 28 Days Working Capital = Working Capital divided by (Sales/number of days in the quarter). *The deferred purchase price receivable relates to an arrangement to sell certain customer receivables to several financial institutions on a recurring basis. Alcoa is adding back this receivable for the purposes of the Days Working Capital calculation. ** Beginning January 1, 2014, management changed the manner in which Working Capital is measured by moving from an end of quarter Working Capital to an average quarter Working Capital. This change will now reflect the capital tied up during a given quarter. As such, the components of Working Capital for each period presented represent the average of the ending balances in each of the three months during the respective quarter. |
 Reconciliation of Net Debt 57 Net debt is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Alcoa’s leverage position after factoring in available cash that could be used to repay outstanding debt. (in millions) December 31, 2008 2009 2010 2011 2012 2013 2014 Short-term borrowings $478 $176 $92 $62 $53 $57 $54 Commercial paper 1,535 – – 224 – – – Long-term debt due within one year 56 669 231 445 465 655 29 Long-term debt, less amount due within one year 8,509 8,974 8,842 8,640 8,311 7,607 8,769 Total debt 10,578 9,819 9,165 9,371 8,829 8,319 8,852 Less: Cash and cash equivalents 762 1,481 1,543 1,939 1,861 1,437 1,877 Net debt $9,816 $8,338 $7,622 $7,432 $6,968 $6,882 $6,975 [Alcoa logo] |
 Reconciliation of Net Debt-to-Capital 58 [Alcoa logo] ($ in millions) December 31, 2013* December 31, 2014 Debt-to-Capital Cash and Cash Equivalents Net Debt-to-Capital Debt-to-Capital Cash and Cash Equivalents Net Debt-to-Capital Total Debt Short -term borrowings $57 $54 Long -term debt due within one year 655 29 Long -term debt, less amount due within one year 7,607 8,769 Numerator $8,319 $1,437 $6,882 $8,852 $1,877 $6,975 Total Capital Total debt $8,319 $8,852 Total equity 13,512 14,813 Denominator $21,831 $1,437 $20,394 $23,665 $1,877 $21,788 Ratio 38.1% 33.7% 37.4% 32.0% * In the fourth quarter of 2013, Alcoa recorded an impairment of goodwill and valuation allowances related to certain Spain and U.S. deferred tax assets, which represent significant, unusual noncash items that are relevant to this metric. As such, if these items were excluded from the denominator, Debt-to-Capital and Net Debt-to-Capital at December 31, 2013 would be 34.8% and 30.6%, respectively. Net debt-to-capital is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Alcoa’s leverage position after factoring in available cash that could be used to repay outstanding debt. |
 [Alcoa logo] |