ALCOA

Alcoa Announces Fourth Quarter Loss on Charges Associated with Cutting High-Cost Smelting Capacity, Market Weakness

Revenue, Earnings Improve Year-Over-Year

4Q 2011 Highlights
Loss from continuing operations of $193 million, or $0.18 per share; excluding special items, loss from continuing operations of $34 million, or $0.03 per share
Revenue of $6 billion, down 7 percent sequentially, up 6 percent from 4Q 2010
Cash from operations of $1.14 billion, up $653 million from 3Q 2011
Record low days working capital
Free cash flow of $656 million
Cash on hand of $1.9 billion
531,000 metric tons of capacity closed or curtailed to improve competitive position
Forecasting 7 percent growth in global aluminum demand and a global aluminum supply deficit in 2012

Alcoa Foundation Partners With Veterans Organizations to Support Our National Heroes

NEW YORK—(BUSINESS WIRE)—This Veterans Day, Alcoa Foundation is reaffirming its commitment to veterans. In 2011, Alcoa Foundation donated more than $375,000 in grants to organizations that provide veterans and their families with a variety of services such as career coaching and mentoring, room and board for hospital stays, meals and shelter, counseling for surviving family members and sports competitions.

“We’re proud to support our veterans who have made enormous sacrifices to preserve the freedoms that we enjoy every day,” said Paula Davis, President, Alcoa Foundation. “With outstanding character and strength, our nation’s veterans deserve our gratitude and investment. To that end, Alcoa is partnering with organizations that help enable these talented men and women to contribute and thrive in all areas of society. With terrific nonprofit partners and strong employee engagement at all levels, we are confident we will – together – make a difference for our veterans.”

In addition to Foundation grants, Alcoa employees also volunteer with veterans organizations. For example, they provide career advice through a mentorship program, visit patients, provide gifts such as handmade holiday cards and prepare care packages to boost the spirits of soldiers who are serving. When Alcoa Foundation partnered with Paralyzed Veterans of America and the Department of Veterans Affairs as a sponsor of the 31st Annual National Wheelchair Games in Alcoa’s hometown of Pittsburgh, nearly 200 employees, friends and family volunteered during the games to cheer on the athletes and provide support.

Below is a list of the nonprofit organizations focused on veterans that received funding from Alcoa Foundation in 2011.

American Corporate Partners, New York, NY
American Corporate Partners (ACP) is a nonprofit organization dedicated to helping veterans transition from the armed services to the civilian workforce. Alcoa is helping to launch ACP AdvisorNet, the only online business related “Quick Question Community” for veterans to provide advice related to career development, employment, and small business directly from business professionals. In addition Alcoa employees mentor 110 ACP veterans.

Greater Cleveland Fisher House, Fairview Park, OH
Veterans being treated at the Cleveland, Clinic, U.H., Metro or any specialty hospital in Cleveland can stay for free as a result of funding from Alcoa Foundation.

Fisher House Foundation, Inc., Rockville, MD
Fisher Houses provide a “home away from home” for military and veteran families to be close to a loved one during hospitalization. Alcoa’s grant will support the first Fisher House in Pennsylvania, which will provide lodging for a large healthcare system that serves veterans throughout Pennsylvania, Ohio and West Virginia.

Hampton Ecumenical Lodgings and Provisions Inc. (H.E.L.P., Inc), Hampton, VA
Alcoa funds will assist with programs such as food, clothing, shelter, mats, blankets, medical and dental care and transportation. The program service area includes Hampton, Newport News, Poquoson, York and Williamsburg.

Paralyzed Veterans of America, Washington D.C.
Alcoa Foundation sponsored the 31st Annual National Wheelchair Games. Alcoa hosted 31 veterans of Operation Enduring Freedom, Operation Iraqi Freedom or Operation New Dawn, who were injured during the Iraq or Afghanistan conflicts. The grant also made it possible for athletes from the District of Columbia, Indiana, Iowa, Michigan, Ohio and Texas, to attend the Games with a spouse or companion.

Tragedy Assistance Program for Survivors, Washington, D.C.
Alcoa Foundation supports the Community Resource Reports that connect all military surviving families with grief and trauma support services in their local community and aid service packages tailored to meet their specific needs.

Veterans Place of Washington Boulevard, Pittsburgh, PA
Alcoa Foundation’s grant provides support to homeless military veterans in the Pittsburgh area which includes food, clothing, case management and referral for inpatient treatment of substance abuse and/or mental health issues.

About Alcoa Foundation
Alcoa Foundation is one of the largest corporate foundations in the U.S., with assets of approximately US$436 million. Founded more than 50 years ago, Alcoa Foundation has invested more than US$530 million since 1952. In 2010, Alcoa Foundation contributed nearly US$20 million to nonprofit organizations throughout the world, focusing on promoting environmental stewardship, enabling economic and social sustainability, and preparing tomorrow’s leaders through education and learning. The work of Alcoa Foundation is further enhanced by Alcoa’s thousands of employee volunteers, who in 2010 gave more than 720,000 service hours. Through the company’s signature Month of Service (October) program, Alcoa employees share their energy, passion and purpose to make a difference in our communities. In 2010, a record 49 percent of Alcoans took part in nearly 1,000 Month of Service events across 24 countries, reaching 59,000 children, serving 17,000 meals, planting 16,000 trees and supporting 3,000 nonprofit organizations. For more information about Alcoa Foundation, please access www.alcoa.com/foundation.

Alcoa Holds Investor Day

November 9, 2011



Strong underlying aluminum fundamentals, Alcoa innovation driving profitable growth

NEW YORK—(BUSINESS WIRE)—Alcoa (NYSE:AA) executives told investors today how the Company is powering value creation with twin growth engines: the miracle metal and innovation across the portfolio.

At the Company’s Investor Day in Davenport, Iowa, executives demonstrated how the Company is meeting aggressive three-to-five-year strategic goals. Alcoa is lowering its cost position in the upstream businesses to capture increased value from growing aluminum demand, while driving profitable growth in the mid- and downstream businesses through innovative products and unique partnerships.

“We see a very exciting future for our aluminum and other materials solutions as customers increasingly turn to Alcoa for innovative answers that differentiate them from their competitors,” said Alcoa Chairman and CEO Klaus Kleinfeld.

“Alcoa is uniquely positioned to participate in this growth. The integration of our talent, technology and world-class assets is unmatched in the industry and will power our business to historic levels of profitability.”

Executives outlined the unique strengths and major value drivers of their businesses, including:

Global Primary Products
Continued market tightening in 2011, moving toward deficit in supply/demand balance
World class assets delivering value: Juruti bauxite mine operating at 30 percent lower cost of production; Sao Luis at nameplate capacity
Ma’aden Alcoa Project: lowest cost smelter online 2013, lowest cost refinery online 2014
Centers of Excellence driving $520 million in productivity savings in 2011
Improving cost curve position: targeting 23rd percentile in alumina, 41st percentile in aluminum by 2015
Revenue growth through pricing actions: 40 percent of customers transitioned to alumina price index or spot pricing by end of 2012
Delivering $150 per metric ton in incremental value added products versus P1020.


Global Rolled Products
Reorganized for growth: market facing structure focused on customer partnerships and capturing emerging market growth
Ma’aden Alcoa lowest cost rolling mill online in 2013
Positioned to capture strong demand in growing aerospace and automotive segments
Deploying world class technology to drive product growth across end markets
Targeting approximately $2.5 billion in additional revenue by 2013; on track to achieve 60 percent of revenue goal in 2011


Engineered Products and Solutions
Leading position in each business: 85% of sales from #1 or #2 market leaders
Available capacity ready to deploy and strong focus on profitable growth
Harnessing world-class technology to drive innovative customer solutions
Targeting approximately $1.6 billion in additional revenue by 2013; on track to achieve 40 percent of revenue goal in 2011


The webcast of the event is available for replay and the presentations are archived at www.alcoa.com/investorday.