2nd Quarter Earnings Conference

1

July 8, 2013

Exhibit 99.2

[Alcoa logo]

[Alcoa logo]

Cautionary Statement

2

[Alcoa logo]

[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,”

“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,

or

from

newly

constructed,

expanded,

or

acquired

facilities,

including

facilities

supplying

aluminum-lithium

capacity,

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;

(n)

the

impact

of

cyber

attacks

and

potential

information

technology

or

data

security

breaches;

and

(o)

the

other

risk

factors

summarized

in

Alcoa's

Form

10-K

for

the

year

ended

December

31,

2012

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.com

under

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.

Continuing to deliver

Strong underlying

Operational

Performance in

2Q 2013

Strong underlying performance offset by special items

3

2Q 2013 Overview

[Alcoa logo]

Strong revenue

despite lower metal prices

Record

Profitability

in

the

Downstream;

ATOI

up

23%

YOY

Alcoa

Value-Add

businesses

in

1H

2013:

57%

total

Revenue

and

80%

Segment

ATOI

$539

million

in

Productivity

across

all

business

segments

Days

working

capital

hits

record

2Q

low;

6

days

lower

than

prior

year

[~$400

million

cash]

Cash

from

operations

of

$514

million;

Positive

free

cash

flow

of

$228

million

Strong

liquidity;

$1.2

billion

cash

on

hand

including

$566

million

debt

reduction

in

the

quarter

Special

items

offset

strong

operational

results,

primarily

restructuring

related

and

resolving

a

legacy

legal

matter

year-over-year

William Oplinger

Executive Vice President and Chief Financial Officer

4

July 8, 2013

[Alcoa logo]

[Alcoa logo]

Income Statement Summary

5

See appendix for Adjusted Income reconciliation

$ Millions, except aluminum prices and per-share amounts

2Q12

1Q13

2Q13

Sequential

Change

Realized Aluminum Price ($/MT)

$2,329

$2,398

$2,237

($161)

Revenue

$5,963

$5,833

$5,849

$16

Cost of Goods Sold

$5,154

$4,847

$4,933

$86

COGS % Revenue

86.4%

83.1%

84.3%

1.2 % pts.

Selling,

General Administrative, Other

$245

$251

$254

$3

SGA % Revenue

4.1%

4.3%

4.3%

0.0 % pts.

Other Expense (Income), Net

$22

($27)

$19

$46

Restructuring and Other Charges

$15

$7

$244

$237

Effective Tax Rate

(216.7%)

27.4%

(16.5%)

(43.9 % pts.)

Net (Loss) Income

($2)

$149

($119)

($268)

Net (Loss) Income Per Diluted Share

$0.00

$0.13

($0.11)

($0.24)

Income

per Diluted

Share excl

Special Items

$0.06

$0.11

$0.07

($0.04)

[Alcoa logo]

Restructuring and Other Special Items

See appendix for Adjusted Income reconciliation

6

$ Millions, except per-share amounts

1Q13

2Q13

Income Statement

Classification

Segment

Income (Loss) from Continuing Operations

$149

($119)

Income (Loss) Per Diluted Share

$0.13

($0.11)

Restructuring-Related

($5)

($113)

Restructuring

and COGS

Corporate /

Primary Metals

Government Investigation Reserve

-

($62)

Restructuring

Corporate

Discrete Tax Items

$19

($11)

Income Taxes and

Noncontrolling

Interest

Corporate

Mark-to-Market Energy Contracts

$9

($9)

Other Income, Net

Corporate

Massena

Fire

$5

-

Revenue

and

COGS

Primary

Metals/EPS

Special Items

$28

($195)

Income from Continuing Ops excl Special Items

$121

$76

Income

per Diluted

Share excl

Special Items

$0.11

$0.07

[Alcoa logo]

Performance offsets 67% of market and cost headwinds

See appendix for Adjusted Income reconciliation

7

Net Income Excluding Restructuring & Other Special Items (millions)

Market

-$120m

Performance

+$90m

Cost Headwinds

-$15m

45

44

24

43

76

121

2Q 2013

Energy

Price

/  Mix

1

150

1Q 2013

Volume

30

LME

4

Cost

Increases

/ Other

Raw

Materials

Productivity

Currency

[Alcoa logo]

8

Record results for Engineered Products and Solutions

2Q13 Actual and 3Q13 Outlook -

EPS

[Alcoa logo]

$ Millions

Best ever

ATOI

Quarter

Highest ever Quarter for adjusted

EBITDA margin

Revenue up 3%

year-over-year driven by

strong

aerospace growth

and

share gains

across

all markets

ATOI up 23%

year-over-year driven by

productivity

and

Aerospace volume

offsetting lower

Truck build rates

and weaker European

Non-Residential Construction

N.A.

Non-Residential Construction

sees

gradual

recovery;

deterioration in

European

market continues

European summer slowdown

across all sectors

Weaker European Industrial Gas Turbine

market

Share gains

through

innovation

continue across all

sectors

ATOI

expected

flat sequentially

with continued

productivity improvements

offset by seasonal cost

impacts

$ Millions

2Q 12

1Q 13

2Q 13

3

rd

Party Revenue

1,420

1,423

1,468

ATOI*

157

173

193

Adjusted EBITDA Margin*

19.2%

20.9%

22.2%

2

nd

Quarter Results

2

Quarter Business Highlights

3

Quarter Outlook

2

Quarter Performance Bridge

$14

Price / Mix

$0

Volume

$9

1Q 13

$173

-$3

Cost Increase

$193

2Q 13

Productivity

nd

nd

rd

See appendix for Adjusted EBITDA reconciliation.  * Prior period amounts have been revised to conform to the current period presentation.  See appendix  for additional information.

Global Rolled Products impacted by lower metal price

9

2Q13

Actual

and

3Q13

Outlook

-

GRP

[Alcoa logo]

Aero plate shipments

impacted by high OEM

inventories

Auto demand

expected to continue growing strongly

Pricing/demand pressures continue

in European &

N.A. Industrials, Brazing, and China markets

Productivity gains to continue

ATOI

expected to be relatively

flat excluding FX

and

assuming

no change in metal

price sequentially

$ Millions

2Q 12

1Q 13

2Q 13

3

rd

Party Revenue

1,913

1,779

1,877

ATOI*

78

81

79

Adjusted EBITDA/MT*

341

385

322

Unfavorable impacts

from lower

metal price

Aerospace and Auto

demand remained strong

Seasonal demand increased

in packaging

Productivity improvements continued

Days working capital

improved 7 days year-over-year

$ Millions

2

nd

Quarter Results

2

Quarter Business Highlights

3

rd

Quarter Outlook

2

Quarter Performance Bridge

$6

$30

$81

Metal

-$33

1Q 13

2Q 13

$79

Other

$5

Productivity

Price/Mix

-$7

Volume

Currency

-$3

nd

nd

See appendix for Adjusted EBITDA reconciliation.  * Prior period amounts have been revised to conform to the current period presentation. 

Alumina performance more than offsets market impact

10

2Q13

Actual

and

3Q13

Outlook

-

Alumina

[Alcoa logo]

53%

of 3

rd

party shipments on

spot or alumina price

index with

30 day lag

for 2013

Caustic

costs

continues to improve

Mining costs to continue at higher level due to

two

crusher locations in Australia

and

mining costs in

Suriname

Productivity improvements

to continue

2Q 12

1Q 13

2Q 13

Production (kmt)

4,033

3,994

4,161

3rd

Party Shipments (kmt)

2,194

2,457

2,328

3rd

Party Revenue ($ Millions)

750

826

822

ATOI ($ Millions)

23

58

64

-$31m

+$37m

$5

$19

$34

$7

$64

$58

-$17

Energy

Prod-

uctivity

Price

/Mix

Volume

Currency

$29

1Q 13

-$60

-$11

Cost

Increase

2Q 13

Suriname

/Myara

LME

Market

Performance

$ Millions

2

nd

Quarter Results

2

nd

Quarter Business Highlights

3

rd

Quarter Outlook

2

nd

Quarter Performance Bridge

Production increase

due to additional day in quarter

Price Index

and

spot pricing

continued positive trend

Productivity improvements

continued

Record

days working capital of

19 days

;

12 day

improvement

year-over-year

Increased costs driven by the

Myara crusher move

(now complete) and

Suriname mining

Primary Metals performs with price, mix and productivity

11

2Q13

Actual

and

3Q13

Outlook

–

Primary

Metals

[Alcoa logo]

2Q 12

1Q 13

2Q 13

Production (kmt)

941

891

896

3

rd

Party Shipments (kmt)

749

705

693

3

rd

Party Revenue ($ Millions)

1,804

1,758

1,620

3rd

Party Price ($/MT)

2,329

2,398

2,237

ATOI ($ Millions)

(3)

39

(32)

$ Millions

Market

Performance

-$68m

-$3m

2

nd

Quarter Results

2

nd

Quarter Business Highlights

3

rd

Quarter Outlook

2

nd

Quarter Performance Bridge

2Q 13

-$32

-$32

Energy

$13

Currency

Cost

Incr/RM

Price

/Mix & Vol.

$21

LME

-$23

-$81

$18

Rockdale/

Anglesea

1Q 13

$39

$13

Prod-

uctivity

Price/Mix improved as

regional premiums rose

and

value-added product mix

strengthened

Productivity improvements

continued

Power plant outages

in Australia and U.S. completed

Working capital of

19 days

;

2 day improvement

YOY

Alumina pricing

applied cost pressure as

alumina

index stronger

than falling LME aluminum prices

Pricing

to follow

15 day lag

to LME

Production

to remain flat

Increased energy costs

due to

peak consumer

demand

in Europe

Productivity

improvements

to continue

Record second quarter days working capital level

Days Working Capital since Fourth Quarter 2008

See appendix for days working capital reconciliation

12

[Alcoa logo]

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

2

Quarter Cash Flow Overview

13

[Alcoa logo]

nd

Key Actions to Execute 2013 Cash Sustainability Program and year-to-date results

On track to meet our targets to maximize cash

On track to meet our targets to maximize cash

14

Maintain 30%-35% Debt-to-Capital

Manage Growth Capital of   

$550M

Generate Productivity Gains of

$750M

Target Saudi JV Investment of

$350M

Overarching 2013 Financial Target

Taking the right actions

Control Sustaining Capital of  

$1.0B

Positive

Free Cash

Flow

$539M

YTD:

$203M

$318M

$75M

34.5%

[Alcoa logo]

Market fundamentals are stable

15

Global Aluminum Demand Growth at

7%

Market Tightening

On Curtailments

Inventory

is Stable

Regional Premiums Remain Strong

2013 Primary Aluminum Consumption (mmt) and Annualized Growth (%)

Global Inventories vs. LME Price Over Time $

Supply/Demand analysis

See appendix for full scale charts

[Alcoa logo]

Klaus Kleinfeld

Chairman and Chief Executive Officer

July 8, 2013

[Alcoa logo]

[Alcoa logo]

Source: Alcoa analysis

Alcoa End Markets: Current Assessment of 2013 vs. 2012

Growth continues in global end markets

17

North America

China

Global

Europe

9% -

10%

sales growth

1% -

2%    

sales growth

4% -

5%     

sales growth

3% -

5%

airfoil market

growth rate

7% -

10%  

prod growth

8% -

12%

sales growth

8% -

10%

sales growth

2% -

3%

sales growth

4% -

6%                            

sales decline

2% -

5%    

prod decline

3% -

8%

prod decline

2% -

5%   

prod growth

2% -

3%

sales decline

Aerospace

Automotive

Heavy Truck &

Trailer

Beverage Can

Packaging

Commercial Building

and Construction

Industrial Gas

Turbine

9% -

13%

prod decline

12% -

16%     

prod growth

1% -

2%                   

sales growth

1% -

4%

prod growth

3% -

8%     

prod growth

[Alcoa logo]

Alcoa shines at the Paris Air Show

18

Commercial Aerospace cycle remains robust

Alcoa announces achievements

900+

new

orders

and

commitments

for

Airbus

and

Boeing

valued

at

~$135B

•

8 year backlog

•

Demand driven by emerging markets and fuel efficiency

Boeing B787-10 launched

with 102 commitments

•

Will compete head-on against  A350-900

Significant order for Airbus A380

•

MOU for 20 A380s from Doric Finance Corp

Boeing B737 Max timeline accelerated by 3 to 6 months

Strong engine orders and commitments

•

Pratt: 1,000+ engines;  GE & Partners: $26B in deals;  Rolls: $5B in deals

Fastening

Systems

contract

with

Aircelle

for

engine

nacelle

latches

Formed

‘Closed-Loop’

program with Boeing

to boost

aluminum recycling

Alcoa

Kitts Green facility Aluminum Lithium expansion complete

Source: The Wall St Journal; 6/20, Aviation International News, 6/17, Seattle Times, 6/19, Reuters, 6/17, Leeham News & Comment 6/19

[Alcoa logo]

Alcoa Blue flies from nose to tail

19

[Alcoa logo]

Alcoa technology enables strong position on CFRP aircraft

20

Note:  CFRP refers to carbon fiber reinforced plastic fastened panels  

[Alcoa logo]

Innovation drives higher Alcoa content on CFRP aircraft

21

[Alcoa logo]

Alcoa’s content runs from bumper to bumper

Alcoa participation in automotive parts

22

[Alcoa logo]

Smart utilization of an existing rolling mill

Source: Ducker Worldwide , IHS , Alcoa analysis *Extrapolated based on IHS 2020 forecast

23

[Alcoa logo]

Maximize cash position for ramp

down and ramp up, considering:

•

Operational flexibility

•

Power flexibility

•

Repowering impact

•

Community impact

Smelting:

Utilize

material in

inventory to

reline,

but

do

not

restart pots

Targeted smaller

curtailments

based

upon

cost

&

strategic

situation

Full curtailment

of selected plants

Permanent

shutdowns

of

selected plants

Smelting curtailment steps

Production Curtailments: Tiered Approach

Reviews follow guiding principles

Upstream taking actions to improve cost position

24

Dependent on

business

conditions

Refining system also under review

Fusina

Baie Comeau Soderberg

13%

of

capacity

currently

idle

291kmt

permanently closed in 2012

Announced 460kmt

under review:

Includes Baie Comeau 105kmt closure

Additional shutdown:  Fusina 44kmt

[Alcoa logo]

Multiple levers capture savings across the organization

25

Productivity levers and year-over-year productivity* savings, $M

GPP:

Combined

Alumina

and

Primary

Metals

segments;

GRP:

Global

Rolled

Products;

EPS:

Engineered

Products

and

Solutions;

COR:

Corporate

*All

figures

are

pretax

and

pre-minority

interest.

2009/2010

represent

net

productivity;

2011-2013

represent

gross

productivity

[Alcoa logo]

Shared Services

Leverage

Manage

SG&A spend

Purchasing Advantage

Spend Reduction

Teams/

Specifications

Supplier

Summits

Productivity Levers

Overhead

Cost

Reductions

Procurement

Savings

Process

Productivity

Process

Technology

Lean

Manufacturing

Lower Cost

Countries

250

109

172

8

750

2012

1,291

2011

1,099

2010

742

2009

2,410

1H13

Actual

539

2013

Target

EPS (32%)

GRP (20%)

GPP (46%)

72% of target

captured in

1H 2013

COR (2%)

Rigorous tracking from Idea to Cash

26

Standardized system for productivity management and system advantages

Cascaded throughout Alcoa

Incorporated into daily operations

Integrated

stakeholder

accountability

~12,900

action

plans

identified

for 

2013

Visibility on plan progress

Results monitored from shop floor to

corporate finance

Degrees of Implementation Process

Enforcing discipline to capture savings and enhance cash flow

[Alcoa logo]

Savings

targets for

each

business and

resource

Specific

parties held

accountable

to implement

steps and

ensure results

Steps to

achieve

savings are

filled in as

idea takes

shape

System

captures

productivity

ideas at

“brainstorm”

stage

Target

Setting

Action Plan

Idea

Generation

Monitoring

& Reporting

Recycling & Casting

On-site at Barberton

Smelting and Casting

Massena

27

On-site recycling & casting facility lowers cost and emissions

Third-party scrap recycling

New York, Ontario, Michigan

Supply chain simplification

New Process Benefits

Supply chain simplification drives cost and environmental benefits

Forging Facility

Cleveland

Machining, Finishing

Barberton

Process:

Forgings

Billet

Scrap

100M

lbs.

scrap

recycled

on-site

Casting

1/3

of

annual

billet

demand

5%

savings

on

annual

billet

cost

Lower

3rd

party

recycling

costs

Improved

casting

yields

Lower

processing

costs

•

50%

less

labor

•

25%

less

energy

Reduced

transportation

costs

17.3M

lbs.

lower

CO2

emissions

Offsets carbon footprint

of ~500 U.S. households

[Alcoa logo]

Portfolio

Management

Supplier

Diversification

Specification

Optimization

Challenge

current positions

with

alternative

supplier

programs

Procurement pulls different levers to generate savings

28

Examples of savings levers & impacts

Direct cost savings: carbon strategy

Indirect cost savings: facility maintenance

Optimize

product mix; arbitrage

make or buy

Saved

14%

of

YTD

spend

AND

$30M

working capital improvement

Saved

8%

of

YTD

spend

Optimize

costs

while

balancing

efficiencies

Supplier Base

Optimization

Work Scope

Standardization

Drive Services

Strategy

Reduce

service

usage

by

standardizing

scope

of

work

Consolidate

supplier

base

and

perform

frequent

re-bidding

process

Optimize

planned

maintenance

and

improve

service

provider

utilization

[Alcoa logo]

“Four Plants, One Business”

project drives overhead savings

29

Spain upstream operations and the building blocks to a leaner organization

[Alcoa logo]

Creating value by focusing on the things we can control

30

Continuing focus on productivity and cash generation

Executing cost competitive strategy to win in commodity market

Building

strong

growth

platforms

in

our

Value-Add

businesses

[Alcoa logo]

31

[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

32

[Alcoa logo]

Annual Sensitivity Summary

Currency Annual Net Income Sensitivity

+/-

$100/MT = +/-

$240 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

33

[Alcoa logo]

Revenue Change by Market

3%

9%

9%

3%

1%

(2%)

10%

(0%)

(0%)

(8%)

5%

9%

6%

(11%)

(3%)

7%

(1%)

(30%)

10%

(10%)

17%

3%

7%

6%

8%

2%

14%

1%

14%

28%

Aerospace

Automotive

B&C

Comm. Transport

Industrial Products

IGT

Packaging

Distribution/Other

Alumina

Primary Metals

2Q’13 Third-Party Revenue

Sequential

Change

Year-Over-Year

Change

34

[Alcoa logo]

Reconciliation of ATOI to Consolidated Net Income (Loss)

Attributable to Alcoa

(in millions)

1Q12

2Q12

3Q12

4Q12

2012

1Q13

2Q13

   Total segment ATOI*

$    

304 

$    

255 

$    

224 

$    

574 

$ 

1,357 

$    

351 

$    

304 

   Unallocated amounts (net of tax):

      Impact of LIFO

–

19

(7)

8

20

(2)

5

      Interest expense

(80)

(80)

(81)

(78)

(319)

(75)

(76)

      Noncontrolling interests

(5)

17

32

(15)

29

(21)

29

      Corporate expense

(64)

(69)

(62)

(87)

(282)

(67)

(71)

      Restructuring and other charges

(7)

(10)

(2)

(56)

(75)

(5)

(211)

      Other*

(54)

(134)

(247)

(104)

(539)

(32)

(99)

   Consolidated net income (loss) attributable to

Alcoa

$       94

$        (2)

$    (143)

$     242

$     191

$     149

$    (119)

* On January 1, 2013, management revised the inventory-costing method used by certain locations within the Global Rolled Products and

Engineered Products and Solutions segments, which affects the determination of the respective segment’s profitability measure, ATOI. 

Management made the change in order to improve internal consistency and enhance industry comparability.  This revision does not impact the

consolidated results of Alcoa.  Segment information for all prior periods presented was revised to reflect this change.

35

[Alcoa logo]

Reconciliation of Adjusted Income

36

[Alcoa logo]

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

June

30,

2013,

a

charge

related

to

prior

year

taxes

in

Spain

and

Australia

($10),

a

benefit

for

a

tax

rate

change

in

Jamaica

($2),

and

a

net

charge

for

other

miscellaneous

items

($3);

•

for

the

quarter

ended

March

31,

2013,

a

benefit

related

to

the

reinstatement

under

the

American

Taxpayer

Relief

Act

of

2012

of

two

tax

provisions

that

will

be

applied

in

2013

to

Alcoa’s

U.S

income

tax

return

for

calendar

year

2012

($19);

and

•

for

the

quarter

ended

June

30,

2012,

a

charge

related

to

prior

year

U.S.

taxes

on

certain

depletable

assets

($8)

and

a

net

charge

for

other

miscellaneous

items

($2).

** Other special items include the following:

•

for

the

quarter

ended

June

30,

2013,

a

net

unfavorable

change

in

certain

mark-to-market

energy

derivative

contracts

($9)

and

the

write

off

of

inventory

related

to

the

permanent

closure

of

two

potlines

at

a

smelter

in

Canada

and

a

smelter

in

Italy;

•

for

the

quarter

ended

March

31,

2013,

a

net

favorable

change

in

certain

mark-to-market

energy

derivative

contracts

($9)

and

a

net

insurance

recovery

related

to

the

March

2012

cast

house

fire

at

the

Massena,

NY

location

($5);

and

•

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).

Reconciliation of Alcoa Adjusted EBITDA

37

[Alcoa logo]

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

38

[Alcoa logo]

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.

Reconciliation of Primary Metals Adjusted EBITDA

39

[Alcoa logo]

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.

Reconciliation of Global Rolled Products Adjusted

EBITDA

40

[Alcoa logo]

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.

*

On January 1, 2013, management revised the inventory-costing method used by certain locations within the Global Rolled Products segment, which affects the determination of the segment’s

profitability measure, ATOI.  Management made the change in order to improve internal consistency and enhance industry comparability.  This revision does not impact the consolidated results

of Alcoa.  Segment information for all prior periods presented was revised to reflect this change.

Reconciliation of Engineered Products and Solutions

Adjusted EBITDA

41

[Alcoa logo]

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.

*  

On January 1, 2013, management revised the inventory-costing method used by certain locations within the Engineered Products and Solutions segment, which affects the determination of the segment’s

profitability measure, ATOI.  Management made the change in order to improve internal consistency and enhance industry comparability.  This revision does not impact the consolidated results of Alcoa. 

Segment information for all prior periods presented was revised to reflect this change.

Reconciliation of Free Cash Flow

42

[Alcoa logo]

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, con’t

43

[Alcoa logo]

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

44

[Alcoa logo]

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.

Reconciliation of Net Debt

45

[Alcoa logo]

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.

Reconciliation of Net Debt-to-Capital

46

[Alcoa logo]

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.

Composition of Upstream Production Costs

47

1

Natural gas information corresponds to Point Comfort, as Australia is priced on a rolling 16 quarter average

[Alcoa logo]

Fuel Oil

14%

Natural gas

10%

Caustic

11%

Bauxite

23%

Conversion

42%

Input Cost

Inventory flow

Pricing

convention

Annual ATOI

Sensitivity

Fuel oil

1 –

2 months

Prior month

$4m per $1/bbl

Natural gas

N/A

Spot¹

$16m per $1/GJ

1

Caustic soda

3 -

6 months

Spot & semi-

annual

$9m per

$10/DMT

Refining Cost Structure

Alumina

33%

Carbon

14%

Power

24%

Materials

6%

Conversion

23%

Smelting Cost Structure

Input Cost

Inventory flow

Pricing convention

Annual ATOI

Sensitivity

Coke

1 -

2 months

Spot, quarterly &

semi-annual

$9m per

$10/MT

Pitch

1 -

2 months

Spot, quarterly &

semi-annual

$2.5m per

$10/MT

Global Aluminum Demand Growth of 7%

48

2013 Primary Aluminum Consumption (mmt), Annualized Growth (%) 

6%

5%

4%

4%

6%

4%

9%

10%

9%

11%

1%

13%

-1%

-2%

11%

9%

2%

2%

4%

4%

2012

2013E

23.0

6.5

6.2

4.0

2.0

1.9

1.9

1.0

1.0

49.4 mmt

(1)

Other includes Africa, E.Europe, Latin America ex Brazil and Oceania

China

Europe

North America

North Asia

India

SE Asia

MENA

Russia

Brazil

Other ¹

1.9

2013 Global Demand

Growth Rate 7%

(World ex China 4%)

[Alcoa logo]

49

2013E Aluminum Supply/Demand Balance

2013E Aluminum Supply/Demand Balance

‘000 mt

China

Rest of World

2013 Production (May annualized)

22,120

25,490

2013 Production to be added

1,180

1,035

2013 Capacity to be curtailed

(590)

(130)

Total supply

22,710

26,395

Demand

(23,000)

(26,420)

Net  Balance

(290)

(25)

2013E Alumina Supply/Demand Balance

2013E Alumina Supply/Demand Balance

‘000 mt

China

Rest of World

2013 Production (Apr annualized)

41,160

54,070

2013 Production to be added

-

1,550

2013 Capacity to be curtailed

-

(150)

Imports/(exports)

3,400

(3,400)

Total supply

44,560

52,070

Demand

(44,560)

(51,940)

Net  Balance

0

130

Source: Alcoa analysis, Brook Hunt, CRU, CNIA, NBS, Chinese Customs

Market Continues to Tighten On Curtailments

1Q2013

Deficit

(100)

1Q2013

Surplus

155

Supply

Demand

Deficit

(315)

Supply

Demand

Surplus

130

[Alcoa logo]

Inventory

is

Stable

50

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

7

14

21

28

35

42

49

56

63

70

77

84

91

98

105

Producer

Japan Port

Off Exchange

China Incl SRB

LME On Warrant

Cancelled Warrants

LME 3 Mon

Days of

Consumption

108 days

LME Price

$2,214/MT

Days of

Consumption

83 days

LME Price

$2,686/MT

Global Inventories

Decline 31 days

from the ’09 peak

Days of

Consumption

Days of

Consumption

77 days

LME Price

$1,857/MT

$ per metric ton

[Alcoa logo]

Regional Premiums Remain Strong

51

Source: Month end pricing -

Platts Metals Week and Metal Bulletin

$0

$50

$100

$150

$200

$250

$300

$0

$50

$100

$150

$200

$250

$300

Regional Premiums over time

$ per metric

ton

$ per metric

ton

Region

End of Q2’13

Europe

$285/MT

Japan

$250MT

Midwest

USA

$261/MT

Year on Year Change

Europe   +12%

Japan   +6%

Midwest USA   +16%

[Alcoa logo]