Alcoa Aspires to Be the Best Company in the World Vision Alcoa Aspires to Be the Best Company in the World

Common Thread . . . Values INTEGRITY ENVIRONMENT, HEALTH AND SAFETY Alcoa is a values-based global company. Our Values are: INTEGRITY Alcoa’s foundation is our integrity. We are honest and responsible in dealing with customers, suppliers, coworkers, shareholders and the communities where we have impact. ENVIRONMENT, HEALTH AND SAFETY We work safely in a manner that promotes the health and well-being of the individual and the environment. CUSTOMER We support our customers’ success by creating exceptional value through innovative product and service solutions. EXCELLENCE We relentlessly pursue excellence in everything we do, every day. PEOPLE We work in an inclusive environment hat embraces change, new ideas, respect for the individual and equal opportunity to succeed. PROFITABILITY We earn financial results that enable profitable growth and enhance shareholder value. ACCOUNTABILITY We are accountable – individually and in terms – for our behaviors, actions and results. We live our Values and measure our success by the success of our customers, shareholder, communities and people. Values have remained fundamentally the same since they were conceived in the late 1980’s – however, as all of you well know, a Customer Value has been introduced as well as modifications to the wording of the other Values.

Aspiration to be the best company in the world… Shareholders Customers Community Employees High performing organizations * What How …Alcoa Business System

With built-in tests that ABS Problems Cost Quality Time Safety Activities Connections Flowpaths Quality, cash, or flow restored Solve in takt With built-in tests that expose With a people system that Problem- solving process Solve at root cause Build into work

Business problem identification and solving system directed at: 1. Make to use - 1X1 - Lowest cost - On demand - Defect free - Safely 2. Eliminate waste - Quality - Cost - Time 3. People linchpin the system - Everyone identifies & solves problems at root cause in real time Cost Delivers Safety Quality Time

Enabling Excellence in ABS Quality Management System Quality Platform Mission Enabling Excellence in ABS Talent Management Succession Planning Training & Development Highly Leveraged Technical Networks In Control & Capable Processes EBS – Networked Quality System Platform Supplier Management Market Sector Lead Teams Customer Quality Networks Process Management Infrastructure People Customer ISO 9001- 2000 QS 9000 Quality Management System AS 9100 ISO 14001

Significant results have been achieved Sao Luis Refinery — 2001 (1 yr) RPD — Tennessee (2 yrs) % Improvement TRR 58% Customer Quality Tonnes 37% to 85% Conversion Efficiency 4.8% Delivery Performance Actual 99% Improvement TRR 67% Customer Quality Incidents 25% Delivery Performance Actual 99% Cost/lb. 10% Inventory Days 18%

Significant results have been achieved AWFP-Beloit Turnaround Closures — North America 2001 (1 yr) % Improvement TRR 43% Customer Complaints 45% Internal Scrap 29% Lead Time 33% Productivity 24% AWFP-Beloit Turnaround (20 months) Improvement TRR 85% Scrap rate 46% Productivity 38% Customer Quality 1155 ppm 16 ppm Lead time 115 days 24 days Cost 20%

IDEAL Everyone Strives Toward the Ideal. On Demand Defect Free 1 x 1 No Waste Immediate Response Safety (Physical, Emotional, Professional) Everyone Strives Toward the Ideal.