Alcoa and China: Partners in GrowthAlcoa and China: Partners in Growth

Bernt ReitanExecutive Vice President, Alcoa

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Alcoa at a glance

Leading aluminum products company Primary aluminum and alumina Flat-rolled aluminum and hard-alloy extrusions

Active in all major segments of the industry: Technology ▪ Smelting Mining ▪ Fabricating Refining ▪ Recycling

Products serving the aerospace, automotive, commercial transportation, packaging, building and construction, and industrial

markets.

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Financial performance - 2008

11%

30%

36%

21%

2%

Engineered Solutions

Alumina

Primary Metals

Flat Rolled

Packaging & Consumer

2008 3rd Party Revenue by Segment 2008 ATOI by Segment

Engineered Solutions

Alumina

Flat Rolled

Primary Metals

Packaging & Consumer

Total Revenue: $26.9 Billion

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34 Countries 87,000 Employees

Global organization

United States, 53%

Europe, 26%

Pacific, 15%

Other Americas,

6%

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Alcoa Primary Operations

RefinerySmelterStand-alone bauxite mine

RefinerySmelterStand-alone bauxite mine

North America:Smelting 2.8M tonnesRefining 2.3M tonnes

Latin America:Smelting 0.3M tonnesRefining 2.6M tonnes

Europe:Smelting 0.6M tonnesRefining 1.3M tonnes

Australia:Smelting 0.4M tonnesRefining 7.8M tonnes

Key Facts (2003):

• 27 smelters on 5 continents

• 9 refineries on 4 continents

• 4.0 mmt Aluminum Capacity 13% of world’s metal

• 14.0 mmt of alumina - 24% of world’s capacity

• $5.2 billion in 3rd

Party Revenue

Key Facts (2005)

•26 Smelters on 5 continents

•9 refineries on 4 continents

•3.6 mmt Aluminum Production 11% of world output

•14.6 mmt Alumina production – 24% of world output

•$6.8 billion in 3rd

Party RevenueRefinerySmelterStand-alone bauxite mine

RefinerySmelterStand-alone bauxite mine

North America:Smelting 2.8M tonnesRefining 2.3M tonnes

Latin America:Smelting 0.3M tonnesRefining 2.6M tonnes

Europe:Smelting 0.6M tonnesRefining 1.3M tonnes

Australia:Smelting 0.4M tonnesRefining 7.8M tonnes

Key Facts (2003):

• 27 smelters on 5 continents

• 9 refineries on 4 continents

• 4.0 mmt Aluminum Capacity 13% of world’s metal

• 14.0 mmt of alumina - 24% of world’s capacity

• $5.2 billion in 3rd

Party Revenue

Key Facts (2005)

•26 Smelters on 5 continents

•9 refineries on 4 continents

•3.6 mmt Aluminum Production 11% of world output

•14.6 mmt Alumina production – 24% of world output

•$6.8 billion in 3rd

Party Revenue

Key Facts (2008)• 25 Smelters on 5

continents

• 9 refineries on 4 continents

• 4.0 mmt Aluminum Production

• 15.3 mmt Alumina production – 23% of world output

• $10.9 billion in 3rd Party Revenue

• $17.6 billion total Revenue including intercompany sales to downstream operations

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Sustainable aluminum production

Sustainable energy production Energy conservation Emissions management Sustainable repowering Sustainable capacity growth

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Leader in sustainable energy

More than a century of hydropower expertise new technology improving yield of existing projects

– LIHI certification Cogeneration at Wagerup and Pinjarra Sustainable biofuels for plant equipment Green Power – renewable energy contracts Geothermal

Under consideration for proposed second smelter in Iceland

Calderwood dam, Tennessee

Pinjarra cogeneration plant

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Sustainable growth in Iceland

Alcoa Fjardaal 344,000 mtpy capacity Compliant with

Iceland’s stringent environmental requirements

North Iceland Possible second

smelter site in Bakki Phase 2 feasibility

study Geothermal power

under consideration

First shipment of alumina, Alcoa Fjardaal, Iceland – 28 March 2007

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Sustainable growth: Greenland

MOU signed May 2007 340,000 mtpy greenfield

smelter Hydropower system Infrastructure On line 2014

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A values-driven company

Integrity Environment, Health and Safety Customer Excellence People Profitability Accountability

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Committed to sustainability

2020 Strategic

framework

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Land stewardship

Reclamation Conservation/biodiversity Management

Alcoa-sponsored environmental parks, Brazil

Award-winning forest restoration, Australia

Great Smoky Mountains conservation agreement, USA

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Safety leader

Alcoa facilities worldwide are 10 times safer than U.S average 76% of Alcoa facilities had zero lost workdays in 2008

Lost Workday Rate

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Alcoa

US Manufacturing

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Community support

Commitment to Communities - 2007 Alcoa and Alcoa Foundation investments totaled

$49 million More than 634,000 volunteer work hours $8 million for climate change projects $1 million for recycling projects

Qinglong Alcoa Hope School Grand Opening -- 2005

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Energy conservation: recycling

Scrap recycling center, Hungary

Growth in recycled content -- 2005-2007

0

200

400

600

800

1000

2005 2006 2007

Currently Alcoa uses nearly 900,000 mt/year of recycled aluminum – nearly 25% of primary production

mt

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Recognition

Sustainability Most Sustainable Corporation / World Economic Forum in Davos Dow Jones Sustainability Index

Climate Change Founding Reporter of the Climate Registry Top Green Company – BusinessWeek and the Climate Group Low Carbon Pioneer – CNBC European Business Best in Class – Carbon Disclosure Project Leader in climate change and governance – CERES Carbon Disclosure Leadership Index

20082008

Alcoa: a Partner in China’s GrowthAlcoa: a Partner in China’s Growth

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1980s CNNC* Technology relationship established

1993 Beijing Established representative office

1994 Tianjin Closures business

1995 Shanghai Aluminum foil Joint Venture

1996 CNNC* 30-year alumina supply contract

Kunming Aluminum foil Joint Venture

1997 Qinhuangdao Formed original Bohai cold mill and extrusion Joint Venture

1999 Qingdao Alumina chemicals plant

2001 Chinalco Support of Chinalco reform program – purchased 8% interest in successful Chalco IPO

2002 Pingguo Submitted JFS for Joint Venture to NDRC for approval

2003 Shanghai Expanded Foil Joint Venture

2004 Bohai Submitted pre-feasibility study for hot mill

Chalco Further investment to maintain 8% stake

2005 Guangxi Investigated direct investment in power assets

Hangzhou Formed closures business

Shanghai Acquired remaining 40% of Foil Joint Venture and established warehousing facility

Bohai NDRC approval granted for Joint Venture restructuring

Qinghuangdao Inaugurated Bohai Joint Venture with China International Trust & Investment (CITIC)

2006 Kunshan Acquired 70% stake in brazing sheet Joint Venture

2007 Bohai Construction of new hotmill on-track for 2009

2008 Chinaclo Investment partner with Chinalco in Rio Tinto

Yutong Bus Strategic partnership with Yutong Bus Co.

Alcoa’s History in China

Our pace is Accelerating* Now Sino Metals

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Overview

Hainan

Guanlu

Foil – Kunming*Corporate and Offices

Flat Rolled Products Locations

Other Alcoa Locations

Sales – Hong Kong

Sales - Guangzhou

Headquarters - Beijing

AEES – Shanghai*

Sourcing - Shanghai

Sheet and Foil* - Bohai

Foil – Shanghai* Sales - Shanghai

Brazing Sheet - Kunshan

Fasteners - ShanghaiFasteners - Suzhou

ALCOA’S ASSETS AND LOCATIONS IN CHINA

Shared Service - Bohai

Shared Service - Shanghai

Not operated directly by

Alcoa

13 locations1926 employees

* Foil and AEES operations are scheduled for divestiture in 2009

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Investing in China’s growth

$700 million invested since 1993

$1 billion planned by 2010

Alcoa will be one of China’s top 10 investors

Member of China Association of Enterprises with Foreign Investment (CAEFI)

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Major Alcoa China Facilities

Location

JV commenced

Alcoa equity

Key Products

Recent activity:

Qinhuangdao, Hebei

Jun. 2000 / October 2005

73%

FRP: incl. finstock, beerwrap, cable warp, household foil, standard sheet, etc.

• Construction of the hot mill is underway• Key equipments include one 1+3 2250mm HM, one 2200mm VAI CM, and three 2200 VAI FMs

Alcoa Bohai Aluminum Co.

Kunshan, Jiangsu

Apr.2006

70%

Brazing sheet for HVAC, common-alloy sheet

N/A

Alcoa Kunshan

Suzhou, Jiangsu

Apr.2006

100%

Aerospace fastening systems, fasteners for commercial transportation, rail & car applications

N/A

AFS Suzhou

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Living Alcoa’s Values in China

Member of China Business Council for Sustainable Development (CBSD)

More than $2.2 million in community investments since 2003

Hundreds of volunteers in Alcoa’s annual Month of Service

Education

Conservation

Community Service

Health

Alain Belda honored by Asia Society for Environmental Leadership Bohai rolling mill

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Alcoa Partnerships for Sustainability in China

Zhengzhou Yutong Bus•World-class structural design, materials and manufacturing technologies •A new generation of energy-efficient, environmentally-friendly buses for China’s growing commuting public.•Up to 46% lighter bus body

Beijing Public Transport Holdings Ltd. •Alcoa Wheels used since 2007. •2.5% fuel savings•18.1% longer tire life•Alcoa wheels chosen for fleet of 50 electric buses for 2008 Beijing Olympic Games

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Partnerships for progress

Beijing International Airport Terminal 3Alcoa Architectural Products provided world class preprinted aluminum Reynolux coil for about 300,000 square meters

National Gymnasium – 2008 Olympic GamesMore than 29,000 square meters of Alcoa Architectural Products’ Reynolux coil coated aluminum sheet

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Alcoa: a Dependable Partner for a Sustainable Future

•Nearly three decades in China•World leader in aluminum technology and sustainability•Engaged with our communities throughout China•Contributing to China’s growth•Dedicated to China’s Future

500,000 safe hours at Bohai.

-- January 2007

Alcoa can’t wait for tomorrow!