July 9, 2012

2nd

Quarter Earnings Conference

nd

Exhibit 99.2

[Alcoa logo]

[Alcoa logo]

Cautionary Statement

2

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, ”“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, trend projections, targeted financial results or operating performance, and statements about

Alcoa’s strategies, outlook, and business and financial prospects.  Forward-looking statements are subject to a number of known and unknown

risks, uncertainties, and other factors and are not guarantees of future performance.  Important factors that could cause actual results to differ

materially from those 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 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 automotive and commercial transportation, aerospace, building and construction,

distribution, packaging, defense, 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, including electricity,

natural gas, and fuel oil, or the unavailability or interruption of energy supplies; (f) increases in the costs of other raw materials, including calcined

petroleum coke, caustic soda, and liquid pitch; (g) 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 moving its alumina

refining and aluminum smelting businesses down on the industry cost curves and increasing revenues in its Global Rolled Products and

Engineered Products and Solutions segments) anticipated from its restructuring programs and productivity improvement, cash sustainability, and

other initiatives; (h) Alcoa's inability to realize expected benefits, in each case as planned and by targeted completion dates, from sales of non-

core assets, such as the announced sale of the Tapoco hydroelectric project, or from newly constructed, expanded, or acquired facilities, such as

the upstream operations in Brazil and the investments in hydropower projects in Brazil, 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, or other events beyond Alcoa’s control; (j) the outcome of contingencies,

including legal proceedings, government investigations, and environmental remediation; (k) the business or financial condition of key customers,

suppliers, and business partners; (l) adverse changes in tax rates or benefits; (m) adverse changes in discount rates or investment returns on

pension assets; and (n) the other risk factors summarized in Alcoa's Form 10-K for the year ended December 31, 2011 and other reports filed with

the Securities and Exchange Commission.  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.

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 U.S. generally accepted accounting principles (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 and on our website at

www.alcoa.comunder the “Invest” section.  Any reference during the discussion today to EBITDA means adjusted EBITDA, for which we have

provided calculations and reconciliations in the Appendix and on our website.

[Alcoa logo]

Chuck McLane

Executive Vice President and Chief Financial Officer

July 9, 2012

[Alcoa logo]

Income Statement Summary

5

$ Millions, except per-share amounts

2Q’11

1Q’12

2Q’12

Sequential

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

3.8%

4.0%

4.1%

0.1 % pts.

Other (Income)

Expense, Net

($50)

($16)

$22

$38

Restructuring and Other Charges

$34

$10

$15

$5

Effective Tax Rate

26.3%

28.3%

(216.7%)

(245 % pts.)

Income (Loss) from Continuing Operations

$326

$94

($2)

($96)

Income (Loss) Per Diluted Share

$0.28

$0.09

$0.00

($0.09)

[Alcoa logo]

Restructuring and Other Special Items

6

See appendix for Adjusted Income reconciliation

$ Millions, except per-share amounts

1Q’12

2Q’12

Income Statement

Classification

Segment

Income (Loss) from Continuing Ops

$94

($2)

Income (Loss) Per Diluted Share

$0.09

$0.00

Restructuring

-Related

($7)

($10)

Restructuring

and

Other Charges

Corporate

Discrete Tax Items

-

($10)

Income Taxes

Corporate

Mark

-to-Market Energy Contracts

($4)

-

Other Income/Expense

Corporate

Environmental Reserve

-

($13)

COGS

Corporate

Litigation Reserve

-

($18)

COGS

Corporate

Massena

Fire

-

($12)

Revenue, COGS

and

Other

Income/Expense

Primary

Metals/EPS

Special Items

($11)

($63)

$105

$61

$0.10

$0.06

Income from Continuing Ops excl Special Items

Income per Diluted Share excl Special Items

2nd

Quarter 2012 vs. 1st

Quarter 2012 Earnings Bridge

7

See appendix for Adjusted Income reconciliation

Income from Continuing Operations Excluding Restructuring & Other Special Items ($ millions)

-$30m

+$17m

-$31m

105

61

2Q 2012

Cost

Increases

/ Other

5

53

Raw

Materials

Price

/  Mix

Energy

17

Productivity

Currency

LME

41

31

Volume

7

31

61

1Q 2012

[Alcoa

logo]

[Alcoa logo]

nd

st

Alumina

8

2    Quarter Results

3   Quarter Outlook

2    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

performed

as

planned

Quarter Performance Bridge

34%

of

party

shipments

on

spot

or

alumina

price

index;

other

pricing

to

follow

two-month

lag

to

LME

Caustic

pricing

expected

to

remain

level

Maintenance

overhauls

concluded,

returning

to

normal

levels

and

adding

$9

million

in

ATOI

sequentially

Productivity gains

to continue

[Alcoa logo]

nd

nd

nd

2

rd

3

rd

[Alcoa logo]

9

2nd

Quarter Results

2nd

Quarter Business Highlights

3rd

Quarter Outlook

2

Quarter Performance Bridge

2Q 11

1Q 12

2Q 12

Production (kmt)

945

951

941

3

Party Shipments (kmt)

724

771

749

3

Party Revenue ($ Millions)

2,145

1,944

1,804

3

Party Price ($/MT)

2,830

2,433

2,329

ATOI ($ Millions)

201

10

(3)

nd

ird

[Alcoa logo]

nd

Primary Metals

Pricing

to follow

15

day

lag

to LME

Energy

with

negative

$20

million

ATOI impact

due

to

higher

seasonal pricing

Rockdale

and

Warrick

outages

complete,

$11

million

favorable

for next quarter

Productivity

gains

to

continue;

expected

to

offset net impact

of energy and outages

Carbon

costs

expected

to

remain

level

Massena

fire

impact

flat

sequentially

nd

ird

ird

LME

price

down

6%

on

a

15-day

lagged basis, 

but

favorable

currencies

partially

offset impact

Price/mix

improvements

driven

by

regional

premiums

Improved

performance

as

productivity,

raw

materials

and

energy

more

than

offset headwinds

Impact

of

$7

million

from

Massena

fire

$ Millions

[Alcoa logo]

ird

[Alcoa logo]

10

Record

ATOI

and

adjusted

EBITDA/MT

in

first  half

2012

Volume

up

7%

sequentially

Compressed

margins

from

decreasing

LME  prices

Seasonal

demand

increases

in

can

stock,

mainly

due  to Russia  and  NA

Days

Working

Capital

improved

6

days

from  prior  year

Favorable

productivity

impacts  results

Aero

and

Auto

continue

to

be

strong

European

markets

remain

uncertain;

pricing

and

demand

pressures

persist

Slower

growth

rates

in

China

and

Russia

Productivity

gains

to

continue

Global Rolled Products

See appendix for Adjusted EBITDA reconciliation

$96

$95

$18

$12

($22)

($8)

($1)

$ Millions

Adjusted EBITDA/mt

393

430

390

ATOI  ($ Millions)

2Q 11

1Q 12

2Q 12

Global Rolled Products,

excl Russia, China & Other

86

100

89

13

(4)

6

Total ATOI

99

96

95

Russia, China & Other

[Alcoa logo]

2nd

Quarter Business Highlights

nd

3

rd

Quarter Outlook

2

Quarter Results

nd

2

Quarter Performance Bridge

nd

[Alcoa logo]

Engineered Products and Solutions

–

Revenue, adjusted EBITDA and ATOI up

sequentially and year-over-year

–

Record

quarterly

adjusted

EBITDA

margin

at

19.4%

–

$15 million

of favorable productivity

–

$5

million

unfavorable

impact

of

Massena

fire

–

On

track

to

achieve

3-year

revenue

&

margin

targets

11

See appendix for Adjusted EBITDA reconciliation

$155

$160

($1) 

$4

$15

($8)

($5)

2nd

Quarter Business Highlights

nd

3

rd

Quarter Outlook

–

European

summer

slowdown

across

all

sectors

–

Deterioration

in

global

Building

&

Construction

market

–

Weaker

Heavy

Duty

truck

build

rates

in

NA

2

nd

half

vs.

1

st

half

–

Share

gains

through

innovation

continue

across

all

market

sectors

–

Productivity

gains

to continue

–

$5

million

unfavorable

impact

of

Massena

fire,

flat

sequentially

$ Millions

2

Quarter Results

nd

2

Quarter Performance Bridge

nd

$ Millions

2Q 11

1Q 12

2Q 12

3

Party Revenue

1,370

1,390

1,420

ATOI

149

155

160

Adjusted EBITDA Margin

19.0%

19.2%

19.4%

rd

[Alcoa logo]

12

See appendix for Free Cash Flow and Net Debt-to-Capital reconciliations

2    Quarter 2012 Cash Flow Overview

($ Millions)

2Q’11

1Q’12

2Q’12

Net Income (Loss)

$377

$99

($19)

DD&A

$375

$369

$364

Change

in Working Capital

($113)

($289)

($147)

Pension Contributions

($72)

($213)

($139)

Taxes / Other Adjustments

$231

($202)

$478

Cash from Operations

$798

($236)

$537

Dividends to Shareholders

($32)

($33)

($33)

Change in Debt

$30

$357

($143)

Distributions to Noncontrolling Interest

($90)

($26)

($44)

Contributions from Noncontrolling Interest

$7

$90

$20

Other Financing Activities

$0

$6

$2

Cash from Financing

Activities

($85)

$394

($198)

Capital Expenditures

($272)

($270)

($291)

Other Investing Activities

($78)

($80)

($63)

Cash from Investing Activities

($350)

($350)

($354)

2Q’12 FCF

$246 million

$1.7 billion

of cash

Debt-to-Cap

at 36.1%

DWC 5 Day

reduction

vs 2Q 2011

nd

nd

Sustainable Reductions Maintained in Days Working Capital

13

See appendix for Days Working Capital reconciliation of periods 2Q 2012, 1Q 2012 and 2Q 2011

Record Low

Days for Second

Quarter

Days Working Capital since Fourth Quarter 2008

33

32

38

38

39

43

44

41

48

55

20

25

30

35

40

45

50

55

-

5

days

27

30

33

50

43

10 days

lower

3 days

lower

3 days

lower

[Alcoa logo]

[Alcoa logo]

Proven Cash Sustainability Efforts Enhance Liquidity

14

See appendix for reconciliations to GAAP and additional information

Income from Continuing Operations excluding

restructuring and specials

Free Cash Flow

Cash on Hand

Debt ($ Millions) and Debt-to-Capital (%)

($ Millions)

($ Millions)

($ Millions)

Gross Debt

Debt to Cap

15

Achieving Targets

Delivering Results

n

Executing curtailments

n

Record 1H ATOI

and

adjusted EBITDA/mt

in

the midstream

n

Record 2Q margins

in

the downstream

n

Productivity gains

continue

n

Positive Free Cash

Flow

of $246

million

n

Record

2Q Days

Working Capital

Productivity Gains

Overhead

Working Capital

Sustaining Capex

Growth Capex

Saudi Arabia JV

Maintain Debt-to-Cap

30-35%

$725M

$625M

$350M

$800M

$50M

1.5

days

Positive Free Cash Flow

Executing Our Strategy

See appendix for reconciliations to GAAP and additional information

Smelting Cost Curve Position

Refining Cost Curve Position

Continuing to Execute in a Challenging Environment

[Alcoa logo]

Record 1H ATOI

and

adjusted EBITDA/mt

in

the midstream

Record 2Q margins

in

the downstream

Productivity gains

continue

Positive Free Cash

Flow

of $246

million

Record

2Q Days

Working Capital

[Alcoa logo]

Klaus Kleinfeld

Chairman and Chief Executive Officer

July 9, 2012

[Alcoa logo]

17

Source: Alcoa analysis

Alcoa End Markets: Current Assessment of 2012 vs. 2011

2012 Market Conditions

[Alcoa logo]

India

5.9

China

Europe

North America

Asia ex. China

Other

(1)

Brazil

Russia

21.1

6.6

5.7

3.5

1.9

1.0

0.9

2012 Projected Primary Aluminum Consumption Growth Rates (%) by Region (in mmt)

46.6

2Q12 Estimated Consumption

18

Source: Alcoa analysis                                       

(1)

‘Other’

consists

of:

Middle

East,

Latin

America

ex

Brazil

and

Rest

of

the

World

(ROW)

Global Aluminum Demand Strong: 7% Growth Maintained

2011

2012

15%

11%

1%

-1%

6%

4%

10%

6%

15%

6%

10%

7%

3%

5%

4%

5%

2011 Actual

Q2’12

Forecast

2011 Global Demand

Growth  Rate: 10%

2012 Global Demand

Growth Rate 7% vs. 2011        

(World ex China 3%)

Notes:

[Alcoa logo]

Sources: Alcoa estimates, Brook Hunt, CRU, CNIA, IAI

19

Alumina:  Balanced AND Indonesian Situation Uncertain

Alumina and alumina-equivalent imports

(1)

Indonesia Imposes Bauxite Export Ban

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 uncertain bauxite supply

Resumption

of permitted exports

uncertain

(MT)

Notes: (1) Imports are on a one month lag from exports out of Indonesia (exports in May will be reported as China imports in June)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Alumina

Bauxite in alumina equivalent

2012E Alumina Supply/Demand Balance (kmt)

Demand

(000 mt)

China

Rest of World

May 2012 Annualized Rate

39,400

54,700

2012 Production to be added

300

550

2012 Capacity to be curtailed

(3,000)

(700)

Imports/(Exports)

3,500

(3,500)

Total Supply

40,200

51,050

Demand

(40,200)

(51,050)

Net  Balance

0

0

Supply

[Alcoa logo]

Sources: Alcoa estimates, Brook Hunt, CRU, CNIA, IAI

Aluminum in Deficit -

Curtailments Occurring

20

Producer

Executed

Curtailments

Pending

Curtailments

Henan Province

(545)

(350)

Sichuan

(201)

-

Shaanxi

(190)

-

Shanxi

(57)

-

Inner Mongolia

(50)

-

Other

(119)

(350)

Total China

(1,162)

(700)

Alcoa

(90)

(150)

Klesch

(225)

-

RTA Lynemouth

(178)

-

Hydro Kurri Kurri

(175)

-

RTA-Tiwai

Point

(13)

-

Other

(150)

Total ROW

(681)

(300)

Annualized Production

2012E Aluminum Supply/Demand (kmt)

(000 mt)

China

Rest of World

May 2012 Annualized Rate

19,400

24,925

2012 Production to be added

1,750

565

2012 Capacity to be curtailed

(350)

(150)

Total Supply

20,800

25,340

Demand

(21,150)

(25,505)

Net  Balance

(350)

(165)

Supply

Demand

Deficit

(515)

[Alcoa logo]

Physical Premiums Push Record Highs

Sources: Alcoa estimates, LME, SHFE, IAI, Marubeni, Platt’s Metals Week and Metal Bulletin

21

Regional Premiums over time

[Alcoa logo]

Inventories Down –

“Days of Consumption / Pricing”

Disrupted

Sources: Alcoa estimates, LME, SHFE, IAI, Marubeni, Platt’s Metals Week and Metal Bulletin

22

Global Inventories vs. LME Price over time

$1,250

$1,450

$1,650

$1,850

$2,050

$2,250

$2,450

$2,650

$2,850

$3,050

$3,250

0

10

20

30

40

50

60

70

80

90

100

Off Exchange

Producer

Japan Port

China ex SRB

LME On Warrant

Cancelled Warrants

LME 3 Mon

Global Inventories

Decline

27 days

from ‘09

peak

3 days

from

1Q’12

Days of

Consumption

80 days

LME Price

$2,686/MT

Days of

Consumption

102 days

LME Price

$2,214/MT

Days of

Consumption

75 days

LME Price

$1,924/MT

Days of

Consumption

LME Price

[Alcoa logo]

LME Price Decoupled From Fundamentals

23

LME Cash versus Quarterly Supply/Demand Balance

Sources:  Alcoa estimates, Brook Hunt, CRU, Harbor

(500)

(300)

(100)

100

300

500

700

900

1,100

1,300

1,500

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

LME Cash Price

Price SYNCHRONIZED with fundamentals

DECOUPLED

LME Price

Supply/

Demand

S

U

R

P

L

U

S

D

E

F

I

C

I

T

Supply-Demand  Balance

[Alcoa logo]

Weak Macro Environment, Impacting Commodities

24

Sources:

Bloomberg,

*Confidence

figures

set

at

100

in

January

2011

for

comparability

;

1

EC

Commission

EU

Confidence,

2

National

Bureau

of

Statistics

China

Consumer

Confidence,

3

University

of

Michigan

Consumer

Sentiment

.

PMI:

Institute

for

Supply

Management

,

Markit,

China

Federation

of

Logistics

&

Purchasing

44

46

48

50

52

54

56

58

60

62

China

US

Eurozone

80

85

90

95

100

105

110

China

Eurozone

1

US

3

…Price Declines in Second Quarter

Consumer Confidence*; Mixed Signals

Liquidity and Solvency Issues in Europe…

Negative Signals in Manufacturing…

Manufacturing

Purchasing

Managers’

Index

Growth

-10%

-9%

-6%

-18%

-6%

-9%

-9%

-20%

-18%

-16%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

Aluminum

Copper

Nickel

Tin

Zinc

Lead

GSCI IM

Index

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%

23.0%

10-yr Sovereign Yields

Portugal

Ireland

Spain

Italy

2

Contraction

[Alcoa logo]

Macro Environment Dominates Price

25

*  Dow Jones UBS Commodity Index   ** Correlation, r, of daily returns over prior year

Correlation of LME 3-month & DJUBS* Index

Correlation of LME 3-month & S&P 500 Index

[Alcoa logo]

Market Fundamentals Sound –

Historically Prevail

26

Alumina Balanced, Tightness In Aluminum

7% Global Demand Growth

Inventories Declining

Premiums at Record High

Global Inventories vs. LME Price over time

Regional Premiums over time

2011

2012

15%

11%

1%

-1%

6%

4%

10%

6%

15%

6%

10%

7%

3%

5%

4%

5%

India

5.9

China

Europe

North America

Asia ex. China

Other

(1)

Brazil

Russia

21.1

6.6

5.7

3.5

1.9

1.0

0.9

2011 Actual

Q2’12

Forecast

2011

Global Demand

Growth Rate:

10%

2012 Global Demand

Growth Rate

7% vs. 2011        

(World ex China 3%)

2012 Projected

Primary Aluminum Consumption  Growth Rates (%) by Region (in mmt)

46.6

2Q12 Estimated Consumption

$1,250

$1,450

$1,650

$1,850

$2,050

$2,250

$2,450

$2,650

$2,850

$3,050

$3,250

0

10

20

30

40

50

60

70

80

90

100

Off Exchange

Producer

Japan Port

China ex SRB

LME On Warrant

Cancelled Warrants

LME 3 Mon

Global Inventories

Decline

27

days

from

’09

Peak

3 days

from

1Q’12

Days of

Consumption

80 days

LME Price

$2,686/MT

Days of

Consumption

102 days

LME Price

$2,214/MT

Days of

Consumption

75 days

LME Price

$1,924/MT

Days of

Consumption

LME Price

0

50

100

150

200

250

300

USD per MT

Region

End of Q2’12

Europe

$250/MT

Japan

$233/MT

Midwest

USA

$226/MT

Supply

Demand

Supply

Demand

[Alcoa logo]

Alumina:  Improve Performance Through Cost & Price Focus

27

Notes:  See appendix for Adjusted EBITDA reconciliations

Adjusted EBITDA per MT

Five Year Plan to Move Down the Cost Curve

Executing Strategic Actions

2010

Strategy Executed

30

25

20

23

30

Refining Cost Curve

Aligning Prices With Market Fundamentals

Projecting

1-3 % points

by end 2013

Sources: CRU Spot and Australia export -

ABARE, Baltic  Exchange, CRU, Metal Bulletin, PACE, Alcoa estimate

~40% of

customers on

API or spot

basis by year

end

-

100

200

300

400

500

600

700

CRU Spot

Australia Export

44

48

68

75

110

104

81

20

47

70

33

1,350

1,433

1,719

1,900

2,570

2,641

2,572

1,664

2,173

2,398

2,077

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

2012

10-YR Average ~ $67/MT

LME

Adjusted EBITDA/MT

–

Atlantic region

–

–

$125m ATOI in Western Australia since end 2010

–

to $110m in cash

–

schedule and ramping up towards full construction

th

th

th

rd

th

Curtailments

complete: 390kmt curtailed in the

Productivity gains

of $270m since end 2010

Creeping

production

at

lower

cost

facilities:

added

7 Days

reduction in DWC from Q2 2010, equivalent

Saudi

Arabian

refinery

and

mine

project:

on

[Alcoa logo]

Primary: Lower Cost Position and Optimize Margins

28

Adjusted EBITDA per MT

Five Year Plan to Move Down the Cost Curve

Executing Strategic Actions

–

Curtailments

representing

14%

of

global

capacity

–

Permanent

closures

of

290kmt

underway

–

85%

smelter

power

secured

through

2025

–

Productivity

gains

of

$310m

since

2010

–

Monetizing

Tapoco

facility

as

part

of

announced

Tennessee smelter permanent closure

–

8 days

reduction

in

DWC

from

Q2

2010,

equivalent

to

$235m

in

cash

–

Saudi

Arabian

investment

on

time

and

budget

2010

Strategy Executed

50

45

40

41

51

Smelting Cost Curve

Optimizing Cast House Profitability

Billet

Slab

T-Bar

Foundry

Rod

$337M

Margin*

2011 through

1H 2012

Projecting

3-6 % points

by end 2013

LME

Adjusted EBITDA/MT

321

336

418

398

784

626

392

(159)

320

301

134

1,350

1,433

1,719

1,900

2,570

2,641

2,572

1,664

2,173

2,398

2,077

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

2012

10-YR Average ~ $374/MT

th

th

th

st

st

Notes:  (1) See appendix for Adjusted EBITDA reconciliations  (2) Margin refers to incremental valued added product margin over P1020 primary aluminum

[Alcoa logo]

Global Rolled Products: Strong Top-

and Bottom-Line Growth

29

2012 YTD 3

Party Sales by Market

Leveraging our strategic asset base

Continuing To Make Progress on Revenue Targets

Notes:

See appendix for Adjusted EBITDA reconciliations

Record Adjusted EBITDA per MT

–

Record

adjusted

EBITDA/MT

in

1H

2012

–

On track to deliver ~67% of 2013

revenue target by 2012

–

Aero

&

auto

driving

profitable

growth

–

Productivity

gains

of

$218m

since

2010

–

Saudi

Arabia

project

on

time

and

budget

–

7 days

reduction

in

DWC

from

Q2

2010,

equivalent

to

~$140m

in

cash

273

253

249

276

226

201

108

119

314

327

409

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

YTD

Adjusted EBITDA/MT

10-YR Average ~ $235/MT

$6.3

$6.3

$8.8

2010

2012 Normalized

Estimate

2013

Target

67% of

Growth

Target

$1.6

$ Billions

Other

2%

Automotive

7%

B&C

4%

Commercial

Transport

7%

Industrial

Products

23%

Packaging

43%

Aerospace

14%

85%

Utilization

rd

[Alcoa logo]

Engineered Products: Continued Growth in Our Margins

On Track To Meet 2013 Revenue Targets

30

2012 YTD 3   Party Sales by Market

Strong Platform for Profitable Growth

Record Adjusted EBITDA Margins

Notes:  See appendix for Adjusted EBITDA reconciliations

$4.6

$4.6

$6.2

2010

2012 Estimate

2013

Target

$1.0

$ Billions

63% of 

Growth

Target

Adjusted EBITDA Margin

8%

9%

12%

11%

12%

13%

15%

13%

17%

18%

19%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

YTD

Aerospace

49%

IGT

7%

B&C

17%

Commercial

Transport

17%

Automotive

3%

Other

7%

78%

Utilization

69%

Utilization

rd

[Alcoa logo]

Miracle Metal Accelerating Growth in the Auto Market

31

50 years of uninterrupted growth

Positioned to capture demand

Future is bright for aluminum

$300M

in

Davenport

expansion

supported by

Saudi

Arabia

expansion

to

include

auto body sheet

Evaluating

further

expansions

Market

preference

for

better

fuel

economy

NA demand to

Aluminum

sheet

use

will

triple

by

2015

The

next

frontier,

body-in-white

Sources: The Aluminum Association Inc and Ducker Worldwide 2011

Lbs

per vehicle

0

100

200

300

400

500

600

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

550 lbs

The Next Frontier

for Aluminum

343 lbs

Heat

Exchangers

Wheels

Heads

Hoods

Blocks

Doors &

Body-in-white

increase 60% by 2025

secured orders

[Alcoa logo]

32

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

[Alcoa logo]

Fasteners Solving Lightning Strike Issues

Leadership In Product Innovation For a Fast-Growing Market

Electrical Energy Management

Enhanced joint fatigue properties

Airfoils Increasing Next Generation Turbine Efficiencies

Al-Li + Advanced Structural Concepts Enable Next-Generation

Aircraft Breakthroughs

6%

-10%

lower

aircraft

weight

(1)

Double

the

time

in

between

inspection

intervals

Increased

passenger

comfort

Airframes

Engines

Working with Key OEMs

Notes: (1) Where weight = Operating Empty Weight

33

Multi-Wall / 3D Airfoil Cooling Schemes

Advanced Single Crystal

Thin Airfoil Equiax Process

Directs Air to Critical Areas

Increased Melting Point 12%

Reduced Blade Weight ~ -20%

[Alcoa logo]

Solid Market Fundamentals

Delivering Our Promises Today and Ready For Tomorrow

Executing Our Strategy

Positioning for the Future

34

Automotive

Doors & Body-in-white

Aerospace

Fasteners Solving Lightning Strike Issues

Electrical Energy Management

Enhanced joint fatigue properties

Airfoils Increasing Next Generation Turbine

Efficiencies

Multi

-Wall / 3D Airfoil Cooling Schemes

Advanced

Single

Crystal

Thin

Airfoil

Equiax

Process

Al-Li + Advanced Structural Concepts Enable

Next

-Generation Aircraft Breakthroughs

6%-10%

lower aircraft weight

Double

the

time

in

between

Increased

passenger

comfort

inspection

intervals

The Next Frontier for Aluminum

[Alcoa logo]

35

[Alcoa logo]

[Alcoa logo]

Kelly Pasterick

Director, Investor Relations

Alcoa

390 Park Avenue

New York, NY 10022-4608

Telephone:  (212) 836-2674

www.alcoa.com

Additional Information

36

[Alcoa logo]

Annual Sensitivity Summary

37

Currency Annual Net Income Sensitivity

+/-

$100/MT = +/-

$220 million

LME Aluminum 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 change in USD / EUR

Canadian $

+/-

$  5 million

per 0.01 change in CAD / USD

Norwegian Kroner

+/-

$  5 million

per 0.10 change in NOK / USD

[Alcoa logo]

Revenue Change by Market

2Q’12 Third-Party Revenue

Sequential

Change

Year-Over-Year

Change

38

4%

1%

(1%)

3%

0%

13%

5%

26%

(3%)

(7%)

13%

3%

(12%)

10%

(19%)

2%

(9%)

(14%)

(19%)

(16%)

16%

3%

6%

6%

8%

2%

14%

2%

13%

30%

Aerospace

Automotive

B&C

Comm. Transport

Industrial Products

IGT

Packaging

Distribution/Other

Alumina

Primary Metals

[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)

(106)

(81)

(81)

(340)

(80)

(80)

      Noncontrolling interests

(58)

(55)

(53)

(28)

(194)

(5)

17

      Corporate expense

(67)

(76)

(76)

(71)

(290)

(64)

(69)

      Restructuring and other charges

(6)

(22)

(7)

(161)

(196)

(7)

(10)

      Discontinued operations

(1)

(4)

–

2

(3)

–

–

      Other

(19)

(23)

(75)

(104)

(221)

(46)

(154)

   Consolidated net income (loss) attributable to

Alcoa

$     308

$     322

$     172

$    (191)

$    

611

$       94

$        (2)

39

[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 to

noncontrolling

interests

181

212

233

259

436

365

221

61

138

194

55

5

(17)

Cumulative effect

of accounting

changes

(34)

47

–

2

–

–

–

–

–

–

–

–

–

Loss (income)

from discontinued

operations

101

–

27

50

(22)

250

303

166

8

3

4

–

–

Provision (benefit)

for income taxes

307

367

546

464

853

1,623

342

(574)

148

255

136

39

13

Other (income)

expenses, net

(175)

(278)

(266)

(478)

(236)

(1,920)

(59)

(161)

5

(87)

(50)

(16)

22

Interest expense

350

314

271

339

384

401

407

470

494

524

163

123

123

Restructuring and

other charges

      398

      (28)

      (29)

      266

      507

      268

      939

      237

      207

      281

      34

      10

      15

Provision for

depreciation,

depletion, and

amortization

   1,037

   1,110

   1,142

   1,227

   1,252

   1,244

   1,234

   1,311

   1,450

   1,479

      375

      369

      363

Adjusted EBITDA

$  2,585

$  2,682

$  3,234

$  3,362

$  5,422

$  4,795

$  3,313

$     359

$  2,704

$  3,260

$  1,039

$     624

$     517

Sales

$17,691

$18,879

$21,370

$24,149

$28,950

$29,280

$26,901

$18,439

$21,013

$24,951

$  6,585

$  6,006

$  5,963

Adjusted EBITDA

Margin

15%

14%

15%

14%

19%

16%

12%

2%

13%

13%

16%

10%

9%

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.

40

[Alcoa logo]

Reconciliation of Alumina Adjusted EBITDA

($ in millions, except

per metric ton

amounts)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2Q11

1Q12

2Q12

After-tax operating

income (ATOI)

$     315

$     415

$     632

$     682

$  1,050

$     956

$     727

$     112

$     301

$     607

$     186

$       35

$       23

Add:

Depreciation,

depletion, and

amortization

139

147

153

172

192

267

268

292

406

444

112

114

114

Equity (income)

loss

(1)

–

(1)

–

2

(1)

(7)

(8)

(10)

(25)

(22)

(1)

(1)

Income taxes

      130

      161

      240

      246

      428

      340

      277

       (22)

       60

       179

       60

       (1)

       (6)

Other

       (14)

       (55)

       (46)

         (8)

         (6)

          2

       (26)

       (92)

         (5)

       (44)

         (1)

          –

         (3)

Adjusted EBITDA

$     569

$     668

$     978

$  1,092

$  1,666

$  1,564

$  1,239

$     282

$     752

$  1,161

$     335

$     147

$     127

Production

(thousand metric

tons) (kmt)

13,027

13,841

14,343

14,598

15,128

15,084

15,256

14,265

15,922

16,486

4,144

4,153

4,033

Adjusted

EBITDA/Production

($ per metric ton)

$       44

$       48

$       68

$       75

$     110

$     104

$       81

$       20

$       47

$       70

$       81

$       35

$       31

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 nonoperating 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.

41

[Alcoa logo]

Reconciliation of Primary Metals Adjusted EBITDA

($ in millions, except

per metric ton

amounts)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2Q11

1Q12

2Q12

After-tax operating

income (ATOI)

$     650

$     657

$     808

$     822

$  1,760

$  1,445

$     931

$    (612)

$     488

$     481

$     201

$       10

$        (3)

Add:

Depreciation,

depletion, and

amortization

300

310

326

368

395

410

503

560

571

556

142

135

133

Equity (income) loss

(44)

(55)

(58)

12

(82)

(57)

(2)

26

(1)

7

1

2

9

Income taxes

      266

      256

      314

      307

      726

      542

      172

     (365)

        96

        92

        55

        (13)

        (19)

Other

       (47)

        12

        20

       (96)

       (13)

       (27)

       (32)

     (176)

         (7)

          2

          –

          –

         (1)

Adjusted EBITDA

$  1,125

$  1,180

$  1,410

$  1,413

$  2,786

$  2,313

$  1,572

$    (567)

$  1,147

$  1,138

$     399

$     134

$    

119

Production

(thousand metric

tons) (kmt)

3,500

3,508

3,376

3,554

3,552

3,693

4,007

3,564

3,586

3,775

945

951

941

Adjusted

EBITDA/Production

($ per metric ton)

$     321

$     336

$     418

$     398

$     784

$     626

$     392

$    (159)

$     320

$     301

$     422

$     141

$     126

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 nonoperating 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.

42

[Alcoa logo]

Reconciliation of Global Rolled Products Adjusted EBITDA

43

($ in millions, except

per metric ton

amounts)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

1Q11

2Q11

1Q12

2Q12

After-tax operating

income (ATOI)

$     225

$     222

$     254

$     278

$     233

$     178

$     

(3)

$      (49)

$     220

$     266

$       81

$       99

$       96

$       95

Add:

Depreciation,

depletion, and

amortization

184

190

200

220

223

227

216

227

238

237

58

60

57

57

Equity loss

4

1

1

–

2

–

–

–

–

3

–

–

1

2

Income taxes

90

71

75

121

58

92

35

48

92

104

33

35

49

43

Other

(8)

(5)

1

1

20

1

6

(2)

1

1

(1)

(1)

–

–

Adjusted EBITDA

$     495

$     479

$     531

$     620

$      536

$     498

$     254

$     224

$     551

$     611

$     173

$     193

$     203

$     197

Total shipments

(thousand metric

tons) (kmt)

1,814

1,893

2,136

2,250

2,376

2,482

2,361

1,888

1,755

1,866

470

491

472

505

Adjusted

EBITDA

/Total

shipments ($ per

metric ton)

$     273

$     253

$     249

$     276

$     226

$     201

$     108

$     119

$     314

$     327

$     368

$     393

$     430

$     390

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 nonoperating 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.

[Alcoa logo]

Reconciliation of Engineered Products and Solutions

Adjusted EBITDA

44

($ 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,

depletion, and

amortization

150

166

168

160

152

163

165

177

154

158

41

40

39

Equity loss

(income)

–

–

–

–

6

–

–

(2)

(2)

(1)

–

–

–

Income taxes

39

55

65

116

155

192

222

139

195

260

72

72

77

Other

35

11

106

(11)

(2)

(7)

2

1

–

(1)

(1)

–

–

Adjusted

EBITDA

$     287

$     356

$     495

$     536

$      676

$     783

$     922

$     630

$     762

$     955

$     261

$     267

$     276

Total sales

$  3,492

$  3,905

$  4,283

$  4,773

$  5,428

$  5,834

$  6,199

$  4,689

$  4,584

$  5,345

$  1,370

$  1,390

$  1,420

Adjusted

EBITDA

Margin

8%

9%

12%

11%

12%

13%

15%

13%

17%

18%

19%

19%

19%

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 nonoperating 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.

[Alcoa logo]

Reconciliation of Adjusted Income

(in millions, except per-

share amounts)

Income (Loss)

Diluted EPS

Quarter ended

Quarter ended

June 30,

2011

March 31,

2012

June 30,

2012

June 30,

2011

March 31,

2012

June 30,

2012

Net income (loss)

attributable to Alcoa

$     322  

$       94  

$        (2) 

$    0.28  

$    0.09  

$         –  

Loss from discontinued

operations

        (4)

         –

         –

Income (loss) from

continuing

operations

attributable to Alcoa

326

94

(2)

0.28

0.09

–

Restructuring and

other charges

16

7

10

Discrete tax items*

–

–

10

Other special items**

       22

         4

       43

Income from

continuing

operations

attributable to Alcoa

–

as adjusted

$     364

$     105

$       61

0.32

0.10

0.06

Income from continuing operations 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 Income (loss) from continuing operations attributable to Alcoa determined under GAAP as

well as Income from continuing operations attributable to Alcoa – as adjusted.

* Discrete tax items for the quarter ended June 30, 2012 includea net charge for adjustments made related to the filing of 2011 tax returns in

various jurisdictions ($8) and a net charge for other miscellaneous items ($2).

** Other special items include the following: 

for the quarter ended June 30, 2012, a litigation reserve ($18), uninsured losses related to fire damage to the cast house at the Massena, NY

location ($12), and a net increase in the environmental reserve related to the Grasse River remediation in Massena, NY and remediation at

two former locations, East St. Louis, IL and Sherwin, TX ($13);

for the quarter ended March 31, 2012, a net unfavorable change in certain mark-to-market energy derivative contracts; and

for the quarter ended June 30, 2011, a net charge comprised of expenses for the early repayment of Notes set to mature in 2013 due to the

premiums paid under the tender offers and call option and gains from the termination of related “in-the-money” interest rate swaps ($32) and

a net favorable change in certain mark-to-market energy derivative contracts ($10).

45

[Alcoa logo]

Reconciliation of Adjusted Income, con’t

(in millions)

Quarter ended

Year ended

March 31,

2011

June 30,

2011

September 30,

2011

December 31,

2011

December 31,

2010

December 31,

2011

Net income (loss)

attributable to Alcoa

$     308  

$     322  

$     172  

$    (191) 

$     254  

$     611  

(Loss) income  from

discontinued

operations

        (1)

        (4)

         –

         2

        (8)

        (3)

Income (loss) from

continuing

operations

attributable to Alcoa

309

326

172

(193)

262

614

Restructuring and

other charges

5

16

5

155

130

181

Discrete tax items*

–

–

(10)

12

40

2

Other special items**

         3

       22

        (2)

        (8)

     127

       15

Income (loss) from

continuing

operations

attributable to Alcoa

–

as adjusted

$     317

$     364

$     165

$      (34)

$     559

$     812

Income (loss) from continuing operations 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 Income (loss) from continuing operations attributable to Alcoa

determined under GAAP as well as Income (loss) from continuing operations attributable to Alcoa – as adjusted.

* Discrete tax items include the following: 

for the quarter ended December 31, 2011, charges for a tax rate change in Hungary and a tax law change regarding the utilization of net operating losses in Italy ($8), a charge

related to the 2010 change in the tax treatment of federal subsidies received related to prescription drug benefits provided under certain retiree health benefit plans ($7), and a

net benefit for other miscellaneous items ($3); and,

for the quarter ended September 30, 2011, a net benefit for adjustments made related to the filing of 2010 tax returns in various jurisdictions ($5) and a net benefit for other

miscellaneous items ($5).

** Other special items include the following: 

for the quarter ended December 31, 2011, a gain on the sale of land in Australia ($18), uninsured losses, including costs related to flood damage to a plant in Pennsylvania

caused by Hurricane Irene, ($14), a net favorable change in certain mark-to-market energy derivative contracts ($8), and the write off of inventory related to the permanent

closure of a smelter in the U.S ($4);

for the quarter ended September 30, 2011, a net favorable mark-to-market change in certain energy derivative contracts ($13) and uninsured losses, including costs related to

flood damage to a plant in Pennsylvania caused by Hurricane Irene, ($11);

for the quarter ended June 30, 2011, a net charge comprised of expenses for the early repayment of Notes set to mature in 2013 due to the premiums paid under the tender

offers and call option and gains from the termination of related “in-the-money” interest rate swaps ($32) and a net favorable mark-to-market change in certain energy derivative

contracts ($10); and,

for the quarter ended March 31, 2011, costs related to acquisitions of the aerospace fastener business of TransDigm Group Inc. and full ownership of carbothermic smelting

technology from ORKLA ASA ($8) and a net favorable mark-to-market change in certain energy derivative contracts ($5).

46

[Alcoa logo]

Reconciliation of Adjusted Income, con’t

47

Income (loss) from continuing operations 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 Income (loss) from continuing operations attributable to Alcoa determined under GAAP as well as Income (loss) from continuing operations

attributable to Alcoa – as adjusted. 

* Discrete tax items include the following:  

for the quarter ended December 31, 2010, a benefit for the reversal of the remaining valuation allowance related to net operating losses of an international subsidiary ($16) (a portion was initially reversed in the quarter ended

September 30, 2010) and a net benefit for other small items ($2);  

for the quarter ended September 30, 2010, a benefit for the reversal of a valuation allowance related to net operating losses of an international subsidiary that are now realizable due to a settlement with a tax authority ($41), a

charge for a tax rate change in Brazil ($11), and a benefit for the recovery of a portion of the unfavorable impact included in the quarter ended March 31, 2010 related to unbenefitted losses in Russia, China, and Italy ($8);  

for the quarter ended June 30, 2010, a benefit for a change in a Canadian provincial tax law permitting tax returns to be filed in U.S. dollars ($24), a charge based on settlement discussions of several matters with international taxing

authorities ($18), and a benefit for the recovery of a portion of the unfavorable impact included in the quarter ended March 31, 2010 related to unbenefitted losses in Russia, China, and Italy ($10); 

for the quarter ended March 31, 2010, charges for a change in the tax treatment of federal subsidies received related to prescription drug benefits provided under certain retiree health benefit plans ($79), unbenefitted losses in

Russia, China, and Italy ($22), interest due to the IRS related to a previously deferred gain associated with the 2007 formation of the former soft alloy extrusions joint venture ($6), and a change in the anticipated sale structure of the

Transportation Products Europe business ($5); 

for the quarter ended December 31, 2009, a benefit for the reorganization of an equity investment in Canada ($71), a charge for the write-off of deferred tax assets related to operations in Italy ($41), a benefit for a tax rate change in

Iceland ($31), and a benefit for the reversal of a valuation allowance on net operating losses in Norway ($21); 

for the quarter ended March 31, 2009, a benefit for a change in a Canadian national tax law permitting tax returns to be filed in U.S. dollars; and,  

for the quarter ended December 31, 2008, a charge for non-cash tax on repatriated earnings.  

** Other special items include the following:  

for the quarter ended December 31, 2010, a net favorable mark-to-market change in certain energy derivative contracts; 

for the quarter ended September 30, 2010, a net unfavorable mark-to-market change in certain energy derivative contracts ($29), recovery costs associated with the São Luís, Brazil facility due to a power outage and failure of a ship

unloader in the first half of 2010 ($23), restart costs and lost volumes related to a June 2010 flood at the Avilés smelter in Spain ($13), and a net charge comprised of expenses for the early repayment of Notes set to mature in 2011

through 2013 due to the premiums paid under the tender offers and call option and gains from the termination of related “in-the-money” interest rate swaps ($9); 

for the quarter ended June 30, 2010, a net favorable mark-to-market change in certain energy derivative contracts ($22), a charge for costs associated with the potential strike and successful execution of a new agreement with the

United Steelworkers ($13), and a charge related to an unfavorable decision in Alcoa’s lawsuit against Luminant related to the Rockdale, TX facility ($7); 

for the quarter ended March 31, 2010, charges related to unfavorable mark-to-market changes in certain energy derivative contracts ($31), power outages at the Rockdale, TX and São Luís, Brazil facilities ($17), an additional

environmental accrual for the Grasse River remediation in Massena, NY ($11), and the write off of inventory related to the permanent closures of certain U.S. facilities ($5); 

for the quarter ended December 31, 2009, charges related to the European Commission’s ruling on electricity pricing for smelters in Italy ($250), a tax settlement related to an equity investment in Brazil ($24), an estimated loss on

excess power at the Intalco smelter ($19), and an environmental accrual for smelters in Italy ($15); 

for the quarter ended September 30, 2009, a gain on an acquisition in Suriname; 

for the quarter ended March 31, 2009, a gain on the Elkem/SAPA AB swap ($133) and a loss on the sale of Shining Prospect ($118); and, 

for the quarter ended December 31, 2008, charges for environmental reserve ($26), obsolete inventory ($16), and accounts receivable reserve ($11), and a refund of an indemnification payment ($24). 

(in millions)

Quarter ended

December 31,

2008

March 31,

2009

June 30,

2009

September 30,

2009

December 31,

2009

March 31,

2010

June 30,

2010

September 30,

2010

December 31,

2010

Net (loss) income

attributable to Alcoa

$ (1,191)     

$    (497)     

$    (454)     

$       77     

$    (277)     

$    (201)     

$     136     

$       61     

$     258     

(Loss) income from

discontinued

operations

(262)

(17)

(142)

4

(11)

(7)

(1)

–

–

(Loss) income from

continuing

operations

attributable to Alcoa

(929)

(480)

(312)

73

(266)

(194)

137

61

258

Restructuring and

other charges

614

46

56

1

49

119

20

(1)

(8)

Discrete tax items*

65

(28)

–

–

(82)

112

(16)

(38)

(18)

Other special items**

29

(15

)

–

(35)

308

64

(2)

74

(9)

(Loss) income from

continuing

operations

attributable to Alcoa

–

as adjusted

$    (221

)

$    (477

)

$    (256)

$       39

$         9

$     101

$     139

$       96

$     223

[Alcoa logo]

Reconciliation of Free Cash Flow

(in millions)

Quarter ended

Year ended

June 30, 

2011

March 31, 

2012

June 30, 

2012

December 31, 

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 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. 

48

[Alcoa logo]

Reconciliation of Free Cash Flow, con’t

49

(in millions)

Quarter ended

Year ended

March 31, 

2011

June 30, 

2011

September 30, 

2011

December 31, 

2011

December 31, 

2010

December 31, 

2011

Cash from

operations

$   (236)

$    798

$    489

$ 1,142

$ 2,261

$ 2,193

Capital

expenditures

    (204)

    (272)

    (325)

    (486)

   (1,015)

   (1,287)

Free cash

flow

$   (440)

$    526

$    164

$    656

$ 1,246

$    906

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. 

[Alcoa logo]

Reconciliation of Free Cash Flow, con’t

50

(in millions)

Quarter ended

December 31, 

2008

March 31, 

2009

June 30, 

2009

September 30, 

2009

December 31, 

2009

March 31, 

2010

June 30, 

2010

September 30, 

2010

December 31, 

2010

Cash from

operations

$    608

$   (271)

$    328

$    184

$ 1,124

$    199

$    300

$    392

$ 1,370

Capital

expenditures

  (1,017)

    (471)

    (418

    (370)

    (363

    (221)

(213)

    (216

    (365)

Free cash

flow

$   (409)

$   (742)

$     (90

$   (186)

$    761

$     (22)

$      87

$    176

$ 1,005

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. 

[Alcoa logo]

Days Working Capital

($ in millions)

Quarter ended

June 30,

2011

March 31,

2012

June 30,

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

1,716

Add: Inventories

3,227

3,097

3,051

Less: Accounts payable, trade 

  2,614

  2,734

  2,633

Working Capital

$ 2,727

$ 2,143

$ 2,134

Sales

$ 6,585

$ 6,006

$ 5,963

Days Working Capital

38

32

33

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 a financial institution on a

recurring basis.  Alcoa is adding back this receivable for the purposes of the Days Working Capital calculation.

51

[Alcoa logo]

Reconciliation of Net Debt-to-Capital

($ in millions)

Quarter ended June 30, 2012

Debt-to-Capital

Cash and Cash

Equivalents

Net Debt-to-

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 year

    8,547

Numerator

  $    9,542

  $    1,712

  $    7,830

Total Capital

Total debt

$    9,542

Total equity

  16,914

Denominator

$  26,456

  $    1,712

$  24,744

Ratio

36.1%

31.6%

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.

52