Introduction to Alcoa

Brian Doy, Director HR & Corporate Affairs

1
19 September 2014.
Economics module Alcoa of Australia
Introduction Brian Doy
Sales & Marketing Ian Nokes
Business and the Engineer Dean Iiievski
Quality Greg Petersen
Risk Management Dave Griffin
Project Management Ken Lockerbie
Procurement Aiden Platt
Operating Accounting (Management Accounting) Justin Gorey
Treasury Trevor Tilley
Wrap up Eugenio Azevedo



2
Discovery of aluminium
3
Y
e
a
r

1808 1821
1853 1854 1855
1886 1889
Sir Humphrey Davy
(Britain) establishes
the existence of
aluminium and names
it.
P. Berthier (France)
discovers bauxite
near the village of
Les Baux in
southern France.
Friedrich Whler
(Germany) describes a
process for producing
aluminium as a powder.
Henri Sainte-Claire Deville
(France) improves Whler's
method to create the first
commercial process.
A bar of aluminium, the
new precious metal, is
shown at the Paris
Exhibition.
Paul Louis Toussaint Hroult
(France) and Charles Martin
Hall (USA) simultaneously
invent a new electrolytic
process, which is the basis
for all aluminium production
today.
Karl Josef Bayer
(Austria), invents
the Bayer Process
for large-scale
production of
alumina from
bauxite.
Discovery of the smelting process
4
Julia B. Hall
Charles M. Hall Paul Heroult
Birth of a company
A meeting of five investors.
Agreed to build a pilot plant.
October 1, 1888, the Pittsburgh
Reduction Company
incorporated.
Became the Aluminum
Company of America in 1907.
Shortened to Alcoa Inc. in 1999.
5
Innovation is our heritage
6
Y
e
a
r

Truck bodies &
Wheels
Automotive
Structures
Audi A8
Electrical
Conductor
Model T Castings
Buildings
Marine
Heat
Exchangers
1886 1900 1920 1940-1950 1960 1980 1990 1890
Airplanes
Household Foil
2000
Cookware
Ferrari Modena
Space Shuttle
Airbus A380
Aluminum
Beginnings
Today
Defense
Oil & Gas
Consumer
Electronics
Environmentally-
Friendly Bus
Aluminum
Bottles
Easy Open
Cans
Alcoa today
200+ locations
30 countries
$23 billion 2013 sales
Award-winning sustainability leadership
125 years of aluminum technical leadership


7
Number of Employees (2013)
U.S. 26,000
Europe 17,000
Other Americas 10,000
Pacific 7,000
60,000
Global leader in lightweight metals engineering and manufacturing
Delivers value-add products made of titanium, nickel and aluminium
Produces best-in-class bauxite, alumina and primary aluminium
Involved in every stage of aluminum production
8
Upstream - GPP
Bauxite mining
Alumina refining
Aluminum smelting
Power
Downstream - EPS
Fastening Systems
Power & Propulsion
Wheel & Transportation
Building & Construction
Forgings & Extrusions

Midstream - GRP
Global packaging
Aero, transportation and
industrial
China and consumer
electronics
9
2013 was our safest year ever
2013 marked Alcoas best safety performance - EVER
and we are seeing strong engagement
9.05
0.98
2.72
0.35
0
1
2
3
4
5
6
7
8
9
10
Alcoa Incident Rates
Total Recordable
Incident Rate
DART Rate
We are walking the talk
Our highest GVS Score:
91% of Alcoans said
If I see a situation that is unsafe,
I can stop work.
Wellness
Human
Performance
Alcoans got moving: 2 of 3
participated in GCC to make
Alcoa Worlds Most Active
Company
Providing Alcoans with tools to
understand their health
76% of operating locations at Level
3 or Level 4 Human Performance
Deployment
10
No fatalities:
18 months
Alcoa is a stronger, more competitive company because we make
inclusion through diversity a priority.
11
We encourage our employees to bring their own cultural and intellectual perspectives to the table, and
have built meaningful goals into our operations, compensation, and human resource systems to drive
progress toward this goal.

Our three-pronged strategy follows our people component of our performance management system:

Diverse Talent
Attract, develop, and retain talented and committed
people with diverse backgrounds and perspectives.

Inclusive Workplace
Achieve a high-performing culture by ensuring that all
employees worldwide are respected, included, and
encouraged to realize their greatest potential.

Innovation
Foster innovation by leveraging the diverse perspectives
and skills of employees across the organization


2014 score of 100 for 5
th

consecutive year from the
Human Rights Campaign
Foundation
2013 winner for exceptional
initiatives that expand
opportunities for women in
business
2012 winner for programs,
policies, structure that excel in
the 8 Elements of Employee
Engagement
Strategic priorities underpin shareholder value
12
Alcoa Advantage
creating value for
all businesses

Profitable Growth in
every business

Talent
Technology
Customer Intimacy
Purchasing
Operating System
Business Programs that
define:
3-year aspirations
Priority levers
Accountability
Disciplined Execution across all activities
Degrees of Implementation methodology for
rigorous management from idea to cash
Three global business units
Engineered Products and Solutions (EPS)
13
Global Rolled Products (GPS)
Global Primary Products (GPP)
Revenue by market segment, region
14
2013 SALES: $23.0 BILLION
By Segment
billions
By Geographic Area
Per cent
$7.1
$6.6
$5.7
$3.3
$0.3
Global Rolled Products
Primary Metals
Engineered Products and Solutions
Alumina
51%
26%
17%
6%
United States
Europe
Pacific
Other Americas
Engineered Products and Solutions (EPS)
15
(More than 23,000 employees)
102 Facilities in 19 Countries
Product innovation drives accelerated share gains
16
Oil and Gas
AADP Drill Pipes
Riser Systems and Casings
Targeting $900M of
increased revenue by
2016 vs. 2013
through share gains
and innovation
Industrial Gas Turbines
Advanced Cooling Systems
Single Crystal Airfoils
Commercial Transportation
Proprietary MagnaForce
TM
Forged AL Wheel Alloy
LvL ONE Truck Wheels
Truck, Trailer Specialty Fasteners
Medium Duty Truck Driveshafts and Wheels
Commercial Aerospace
3rd Generation Aluminum Lithium Alloys
New Programs Fastening Systems
Next Generation Jet Engine Airfoils
Building and Construction
Ultra Thermal Curtain Walls &
Windows
Blast & Hurricane Resistant
Active Faade Systems
Defense
Combat Vehicles Single Piece Forged Aluminum Hull
Joint Strike Fighter Forged Bulkheads

16
GRP Global business spread across 4 continents
17
Employees: ~14,300 | Locations: 19 facilities | 2013 Revenue: $7.1 Billion

Alcoa Global Packaging (AGP)
Aero, Transportation & Industrial (ATI)
North
America
Europe
Russia
Middle
East
Australia
Latin
America
Market-facing Global Business Units with a Global footprint
China
Product Lines:
Can (Beverage & Food)
Specialty Foil
Industrial

Product Lines:
Commercial Aerospace
Auto Body & Brazing
Industrial
Commercial Transportation
2013 Rev:
$3.5b
2013 Rev:
$3.6b
Capitalizing on historic Auto industry shift to lightweight vehicles
18
Consumers/OEMs preferences, projected aluminum content per vehicle and Alcoa capacity expansion

Increasing aluminum intensity
North America aluminum body sheet
content per vehicle (in lbs)
136
55
14
2015 2025 2012
Actual
Projected
~10x
~4x
Al auto sheet
demand expected
to grow to 1MMT
by 2025
Consumers want fuel economy
OEMs need fuel economy
54.5
35.5
27.2
2025 2011 2016
US CAFE regulations (MPG)
+100%
And 88% say fuel
economy will be
an important
factor in their next
vehicle purchase
% supporting higher fuel economy regulations
Sources: Consumer Federation of America (CFA) survey April 2013; Ducker Worldwide
CAF: Corporate Average Fuel Economy
85
66
2013 2010
18








Alcoa, TN
Davenport, IA
Completed
on time and
on budget
Triple play: Positioned to capture growth
Saudi Arabia JV KSA
$300M investment
completed in 4Q 2013
Under-going customer
qualifications

$318M investment;
completion in mid-2015
Enables flexible
production
$380M total investment;
First auto coil
Dec 2014
Aluminiums auto evolution: material of choice for the 2015 Ford F-150
19
With my background in aerospace and
commercial airplanes, aluminum is
the material of choice.
Alan Mulally, President and CEO
Ford Motor Company
CBS News
When we put it all together, to have the
truck do what we wanted, there was
only one answer: aluminum.
Raj Nair, VP Global Product Development
Ford Motor Company
Wall Street Journal
A stamped aluminum body can
equal or outperform steel in
overall strength, dent resistance and
crash protection
The New York Times
The F-150 establishes aluminum as
a primary choice for mainstream
auto use.
Automotive News
Military-grade, aluminum alloys in body and bed
As much as 700 lbs. lighter than its predecessor
Accelerates, brakes, tows and resists corrosion
like never before
SOURCE: Ford Motor Company website
GPP is leader in all segments of aluminum production
20
Employees: ~18,500 | Locations: 42 operations in 11 countries | 2013 Revenue: $12.5 Billion

Smelting
Global Leader in
smelting
Most efficient producer of
aluminum





Mining
Bauxite mines in six
countries
Largest global bauxite
producer




Refining
#1 in Alumina
World's leading
producer of alumina
Energy
2/3 renewable based
energy
Securing energy assets for
our facilities
Global Primary Products (GPP)
21
Lost Workday Incident Rate
10th Consecutive Year
79% of Alcoa
locations had
no LWD in 2010
Recognized as a model of
sustainability by Exame
Magazine
Europe
1 Refinery
8 Smelters
Canada
3 Smelters
1 Hydro dam
Latin America
4 Refineries
5 Mines
2 Smelters
5 Hydro dams
Australia
2 Mines
3 Refineries
1 Smelter
1 Coal Power Plant
Smelters
Refineries
Saudi Arabia
Integrated mine,
refinery, smelter,
rolling mill, gas
field and power
station
Power
Mines
Africa
1 Mine
US
1 Refinery
7 Smelters
8 Hydro dams
2 Coal Power Plants
20,100 Employees
Capacities:
51 MMT Bauxite
18 MMT Alumina
4.2 MMT Aluminum
3.4 GW power
Moving GPP down the global cost curves
22
Additional 6 point movement down the
alumina cost curve
500
450
400
350
300
250
200
150
100
50
0
100 90 80 70 60 50 40 30 20 10 0
2013:
27
th
Percentile
-9% points
by 2016
2010:
30
th
Percentile
2016:
21
rd
Percentile
$/MT
Production (MMT)
ALUMINA
Build Maaden JV refinery on low end of cost
curve
Increase production at Juruti and Western
Australia
Implement energy solutions for San Ciprian &
Jamaica
Wagerup Refinery
Source: CRU Cost Model, Alcoa Analysis.
Smelting portfolio becoming leaner and stronger
23
Additional 5 point movement down the
aluminum cost curve
30 15 10 5 0
3,000
2,500
2,000
1,500
1,000
500
0
55 50 45 40 35 25 20
2013:
43
rd
Percentile
-13% points
by 2016
2016:
38
th
Percentile
2010:
51
st
Percentile
Production (MMT)
$/MT
ALUMINUM
Build Maaden JV smelter on low end of
cost curve
Secure Canada energy contract
Announced closures or curtailments of
551kMT since May 2013
Quebec Premier Marois with Canada team
Source: CRU Cost Model, Alcoa Analysis.
Operations in Australia
24



Principal operations within Western Australia
Huntly Mine
Willowdale Mine
Kwinana Refinery/Port
Pinjarra Refinery
Wagerup Refinery
Bunbury Port
Marrinup Nursery
Dampier Bunbury Pipeline (20% ownership)

Principal operations within Victoria
Portland Smelter
Anglesea Power Station
Point Henry Smelter/Rolling Mill
Melbourne Alcoa Wheel Products
Oakleigh Alcoa Fastening Systems

Principal operations within New South Wales
Yennora Rolling Mill and Recycling Facility
Operations in Australia
25



Principal operations within Western Australia
Huntly Mine
Willowdale Mine
Kwinana Refinery/Port
Pinjarra Refinery
Wagerup Refinery
Bunbury Port
Marrinup Nursery
Dampier Bunbury Pipeline (20% ownership)

Principal operations within Victoria
Portland Smelter
Anglesea Power Station
Melbourne Alcoa Wheel Products
Oakleigh Alcoa Fastening Systems

26
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
4,500.00
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4

LME Aluminium Price (in 2012 AUS$ Real)
Source: www.indexmundi.com , IMF, ABS
1997-2008
Average: $3325
2009-2011
Average: $2350
Dec 2011: $2000
Dec 2012: $1960
Dec 2013: $1859
Aug 2014: $2068
2012-2014
Average: $1888
Average metal price now 43% less than 1997-2008
Pt Henry smelter closed, rolling mills close in December
Point Henry smelter
190,000 tpa metal
Point Henry rolling mill
70,000 tpa
80% into Asian market
Yennora
recycling 55,000 tpa scrap
Including over half a billion cans
Yennora rolling mill
130,000 tpa
food and beverage containers
30% exported, mainly to Asia

27
Portland Aluminium
JV with Alcoa as managing partner
Alcoa 55%,
CITIC 22.5%,
Marubeni 22.5%.
First production 1986
Rated capacity 358,000 tonnes/year
22.5 kilogram aluminium ingots
all exported to Asia
Largest employer in the region 540 direct
employees and ~ 180 contractors
A$100 million in wages
A$45 million in maintenance and contractor
services
A$7 million in council rates, royalties and
community contributions each year.

28
Western Australia
Bauxite mines at Huntly and
Willowdale 34 mtpa
Alumina refineries at Kwinana, Pinjarra
and Wagerup 9 mtpa
Supplying approx 10% of global
demand
Dedicated port facilities at Bunbury and
Kwinana
4000 permanent employees and 800
contractors
More than $2.2 billion in local spend
and payroll contributions annually.
29
Two mines supplying three refineries
30
Mandurah
Boddington
Jarrahdale
Dwellingup
Collie
Pinjarra
Alumina Refinery
Huntly
Bauxite Mine
Willowdale
Bauxite Mine
Wagerup
Alumina Refinery
Kwinana
Alumina Refinery
Shipping
Bunbury
Shipping
Perth
Jarrah forest
Alcoa
Mineral
Lease
Mineral Lease of 7,129 square
kilometres
Exclusive rights to mine bauxite
1961 2045, with option to extend
Less than 10% of area planned to be
mined
Huntly 24.5 million tonnes a year
Largest bauxite mine in the world
Supplies Pinjarra and Kwinana
Willowdale 9.5 million tonnes a
year, supplies Wagerup
At current mining rate, will supply the
three refineries for another 50 years

Advantages of WA bauxite mining
Easy to access ore body with
shallow overburden
Low silica
Economies of scale
Conveying a low cost, efficient
delivery system
Excellent equipment reliability
Mature and efficient mine plan
approval processes
Close to refineries, ports and major
infrastructure
Close to population centres - well
trained, stable workforce

31
Mining in a unique environment
32
Only natural Jarrah Forest in the world
The forest is highly valued recreation, water
catchment, timber resource, conservation
Access to bauxite contingent on preserving
and restoring these land-use values
Worlds best mine rehabilitation
33
Returning a self-sustaining jarrah forest ecosystem
to enhance or maintain water, timber, recreation, and conservation values
Del
Park
1980
Del
Park
2001
A history of continuous growth
34
0
1
2
3
4
5
6
7
8
9
10
64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13
Kwinana Pinjarra Wagerup
Pinjarra 5th unit
Wagerup start-up
Wagerup 2nd unit
Pinjarra efficiency
upgrade
Year
M
i
l
l
i
o
n

T
o
n
n
e
s

Kwinana start-up
Pinjarra start-up
Alcoas WA refineries supply ~10% of world alumina demand
35
Victorian Operations
North America
Middle East
South
America
China
Russia
Africa
Other
Alumina demand
China 49.6 mtpy
Rest of world 50.7 mtpy
Western Australia is the centre of refining expertise
Western worlds largest alumina refining
R&D group based at Kwinana
Employs 80 scientific, engineering and
support staff, dedicated to technology
development for Alcoas global system
WAs largest employer of PhDs outside of
CSIRO and the Universities (26)
One of the very few truly global industrial
research centres based in Australia
A major employer of highly trained research
specialists, including:
chemists, engineers, physicists, computer
modellers (including Computational Fluid
Dynamics experts), industrial statisticians
and other highly valued professionals
36
Alcoa of Australia value adds to Australias economy
2013 Operational Spend (%)
37
Western Australia >70%
$1.7 billion
Overseas
Rest of Australia
2013 Revenue
($3.67 billion)
Export 92%
2013
Tax expense $119 million
Wages and benefits $602 million
Dividends $262 million
Profit after tax $259 million
Employees by region 2014 YTD
Western Australia 3946
Victoria 642
Structured community relations program
Community assessment and public
strategy plan
Community consultation,
involvement and communication
Government relations
Media relations, issues
management, crisis
communications
Employee communication and
engagement
Employee volunteerism
Community investment and
partnerships
Profitability and value contribution
38
Community consultation, involvement and communication
39
Formal consultation forums (CCNs, CABs, EIP, SRGs)
Communications websites, advertorials, media
Briefings, open days, tours

Employee communication and engagement
40
40
MD business updates
State of the nations
All employee emails
Talking Alcoa
Site newsletters
Weekly e-updates
Talking points at toolbox

MyAlcoa
Ask Alan
Alan says
Round tables
Team meetings
Noticeboards
Screen saver
Employee volunteerism
41
Month of Service
Greenworks
ACTION
Bravo
Earthwatch
Key corporate partnerships
Greening Australia
Centre for Rural Emergency Medicine
SALP
Sculpture by the Sea
Fairbridge
Youth Focus
Celebrate WA
Alcoa Foundation
Scitech maths program
Frogwatch
Conservation Volunteers Australia
Kaarakin Black Cockatoo
Northern Futures


Community investment and partnerships
42
51 year partnership between Alcoa, Alcoans and Geelong
43
Today is also the time to pay tribute to Alcoa. For while we hate its
decision to leave, we also acknowledge the companys
contribution.

And even away from putting meals on workers tables, Alcoa has
given much to Geelong. It has been a very significant donor to
many projects in our community.

It is estimated that in its time here, Alcoa has given up to $2.3
million to one charity alone. And as recently as Thursday night it
was doing it again giving out $590,000 in community grants.

For that, Alcoa, we say thank you for the giving and for the jobs
over the past decades.

Geelong Advertiser Editorial, 26 July 2014

Long term partnerships program underpinned success
Alcoa is an icon of
community giving.

Half a century is easy to roll off
the tongue but nothing lasts that
long without genuine commitment
and passion.
Alcoa is one of the companies
which has helped make Geelong
what it is and it continues with the
Alcoa Foundation grant.
Their support for community has
been unbelievable.

Bill Mithen, Local NGO leader
44

Our challenges?
45
46
Key global megatrends fuel our growth
47
Population Growth Urbanization Climate Change
Energy consumption rising
Increase of 54% by 2025
Driven by developing countries
Personal transportation rising
Increase of 40% by 2030
Greenhouse gas regulation


Global population rising
2006: 6.6 billion
2025: 7.9 billion
2050: 9.1 billion
Population in cities
2006: > 50%
2030: > 60%
Aluminium the miracle metal
48
Drives fuel
efficiency
Makes hottest
gadgets cool
Takes you out of
this world
Infinitely
recyclable
Builds a strong
foundation
Replacing 1 kg of
steel with half a
kilogram of
aluminum in a city
bus can
eliminate up to
16 kg of
greenhouse gas
over its lifetime
Aluminums look,
feel, durability
and thermal
conductivity
make it a top
trend in consumer
electronics
Nearly all the
alloys used in
modern aircraft
were developed
by Alcoa

More than one
trillion cans
have been
recycled in
America since
Alcoa pioneered
the industry in
1972

An office building
using aluminum-
enabled building
envelopes can
drive 20%
energy savings
over similar
buildings: and
157 tons of CO
2

per year
Almost 75% of all aluminum ever produced is still in use today
Alcoa flies from nose to tail on metallic-intensive aircraft
49 Source: May 2, 2014 annual shareholders meeting presentation
Alcoa has a strong position on carbon fibre intensive aircraft
50 Source: May 2, 2014 annual shareholders meeting presentation
Alcoas content runs from bumper to bumper
51 Source: May 2, 2014 annual shareholders meeting presentation
Aluminium intensive vehicles have the competitive edge
52 (1) Oak Ridge National Laboratory January 2014 (2) EDAG April 2013
Alcoa content on truck and trailer
53 Source: May 2, 2014 annual shareholders meeting presentation
Aluminium: the sustainable package
54 Source: May 2, 2014 annual shareholders meeting presentation
Building and construction systems: green buildings start with Alcoa
55
Windows
Cladding Curtain Wall
Store Front
Unparalleled growth opportunity with Maaden JV
Alcoa building lowest-cost, most-efficient aluminum
complex in the world
Utilizes fully developed infrastructure, including low-cost
natural gas power
Establishes strategic footprint in fast-growing region
Smelter and rolling mill on-line in 2013 and bauxite mine
and refinery in 2014
56
Refinery Smelter
Rolling Mill
Bauxite Mine
a
27
Case study Wagerup liquor burner
Build up of organics in the
liquor stream
Liquor burner installed
Noise
Odour
57

Located 130 kilometers (81 miles) south of Perth in Western Australia,
Alcoas Wagerup Alumina Refinery has been scrutinized and criticized
by the media, community, and government for odours, noise and other
emissions released from the facility.

2002 Alcoa Inc EHS report

58