1. Alcoa and China: Partners in Growth
4/20/2017
I’m Bernt Reitan of Alcoa. I’d like to welcome you on behalf of our company and speak a bit on the thirty year partnership between Alcoa and China. It’s a relationship that has a great past, and a great future as well.
Alcoa and China: Partners in Growth
Bernt Reitan
Executive Vice President, Alcoa
Alcoa Corporate Overview 2008

2. Leading aluminum products company
4/20/2017
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
First let me fill you in briefly on where Alcoa is today.
We are the largest aluminum producer in the world, and we operate through the entire value chain – upstream and down.
We are active in all segments, from mining, refining and smelting to rolling and extruding and of course recycling. We also develop some of the leading production technologies in the aluminum industry.
Products serving the aerospace, automotive, commercial transportation, packaging, building and construction, and industrial markets.
Alcoa Corporate Overview 2008

3. Financial performance - 2008
4/20/2017
Financial performance
Total Revenue: $26.9 Billion
2008 3rd Party Revenue by Segment
2008 ATOI by Segment
Packaging & Consumer
Engineered Solutions
Flat Rolled
Alumina
Flat Rolled
Revenues for 2008 were $26.9 billion, and income from continuing operations was a profit of $229 million.
Engineered Solutions
Primary Metals
Primary Metals
Packaging & Consumer
Alumina
Alcoa Corporate Overview 2008

4. Global organization Our footprint is truly global.
4/20/2017
Global organization
34 Countries
87,000 Employees
Our footprint is truly global.
We began in North America but now can be found in 34 countries, with 87,000 employees working in all major regions of the world.
Alcoa Corporate Overview 2008

5. Alcoa Primary Operations
4/20/2017
Alcoa Primary Operations
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
We operate 25 smelters on 5 continents, and 9 refineries on 4 continents.
Last year this network produced 4.0 million metric tons of aluminum and 15.3 million tons of alumina, with revenue of $17.6 billion, including sales to outside customers and to internal Alcoa businesses.
Alcoa Corporate Overview 2008

6. Sustainable aluminum production
4/20/2017
Sustainable aluminum production
Sustainable energy production
Energy conservation
Emissions management
Sustainable repowering
Sustainable capacity growth
We are one of the leaders in the aluminum industry in sustainable production. This requires many strategies: energy strategies, supply line strategies and production technology strategies.
Today, at Alcoa, we’re putting as many of these strategies to work as possible.
We’re using more recycled content than ever.
We’re exploring new sources of energy to replace traditional fossil fuels.
And we’re continuing to drive down emissions of all kinds from our plants, with a special focus on greenhouse gases.
Alcoa Corporate Overview 2008

7. Leader in sustainable energy
4/20/2017
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
Energy – especially electrical energy -- was the catalyst that transformed aluminum from precious metal to useful commodity back in 1886.
Since then Alcoa has explored every power source available to optimize production.
Today the cost of electrical energy is high, not just in terms of dollars but also in terms of environmental impact.
We are putting to use a variety of sustainable and new-generation energy options, from hydropower to cogeneration, for current and new projects.
In addition, we’re looking beyond hydropower for answers. In Iceland, where we have built the world’s newest and most sustainable smelter, we are also researching the use of geothermal energy to power the smelters of the near future.
Pinjarra cogeneration plant
Alcoa Corporate Overview 2008

8. Sustainable growth in Iceland
4/20/2017
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
A prime example of the importance of sustainability is Alcoa’s new Fjardaal smelter in Iceland. Environmental excellence was a key factor in gaining approval for this project from the Iceland government, which maintains some of the world’s most demanding restrictions on emissions.
Fjardaal is Alcoa’s newest greenfield smelter. In fact it is one of the most advanced and sustainable smelters in the world. It uses hydropower and many other best practices to meet Iceland’s strict requirements. These include advanced scrubber and water management technology that minimizes impact on the atmosphere and the ocean nearby.
It is this technology and Alcoa’s record of sustainable development that gives us access to opportunities in places like Iceland.
First shipment of alumina, Alcoa Fjardaal, Iceland – 28 March 2007
Alcoa Corporate Overview 2008

9. Sustainable growth: Greenland
4/20/2017
Sustainable growth: Greenland
MOU signed May 2007
340,000 mtpy greenfield smelter
Hydropower system
Infrastructure
On line 2014
Greenland is a smiliar story, though still at the beginning.
Our agreement with the Greenland Home Rule Government, signed in 2007, lays the groundwork for an exciting collaboration between Alcoa and the people of Greenland.
The project aims at developing hydropower and a smelter similar in size, scope and environmental compliance to our Iceland facility.
The project will be the first such facility in Greenland and will offer new opportunities for growth, development and sustainable power for this developing country.
This project is currently in the stage of feasibility and environmental studies.
Alcoa Corporate Overview 2008

10. A values-driven company
4/20/2017
A values-driven company
Integrity
Environment, Health and Safety
Customer
Excellence
People
Profitability
Accountability
Our strategy for growth, and our day-to-day business practices, are guided by a clear set of guidelines that set high standards
of personal integrity;
of environment, health and safety performance;
of customer value;
of operational excellence;
of respect for people in our company and the communities we live in;
for our shareholders;
and for accountability – both individual and the company as whole.
Alcoa Corporate Overview 2008

11. Committed to sustainability
4/20/2017
Committed to sustainability
2020 Strategic framework
Our 2020 strategic framework benchmarks our performance in living the Alcoa Values, and measures this performance against targets we’ve set for the next decade.
Alcoa Corporate Overview 2008

12. Conservation/biodiversity Management
4/20/2017
Land stewardship
Reclamation
Conservation/biodiversity
Management
Award-winning forest restoration, Australia
A good example of Alcoa’s values in action is our approach to land stewardship.
Because we are a mining company, we have always understood the importance of using the land appropriately, and of restoring it after mining is finished.
We view mining as a temporary use of the land and see our mission as restoring the land and its biodiversity to original condition or better once operations are complete. Over the years we have developed a recognized expertise and leadership in reclamation, conservation and land management.
This leadership includes areas that aren’t mining operations as well.
In the Southeastern US, we have sustainably managed hydroelectric projects and their surrounding watersheds for more than 90 years under license from the US government.
We operate environmental parks near our facilities in Brazil and Australia to provide both refuge for native species and opportunities for sustainability education in the local communities.
Alcoa-sponsored environmental parks, Brazil
Great Smoky Mountains conservation agreement, USA
Alcoa Corporate Overview 2008

13. 4/20/2017
Safety leader
Alcoa facilities worldwide are 10 times safer than U.S average
76% of Alcoa facilities had zero lost workdays in 2008
Safety is a key value and leadership point for Alcoa. Worldwide, our facilities are 20 times safer to work in than the US average.
We believe in and strive for a goal of zero lost workdays in our facilities. More than 80% of our plants have reached this level of excellence.
Alcoa Corporate Overview 2008

14. Community support Commitment to Communities - 2007
4/20/2017
Community support
Commitment to Communities
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
Over a long history of building new operations in diverse locations, we have learned that it takes more than Alcoa jobs to build a healthy and strong community.
In 2007, Alcoa and Alcoa foundation invested more than 49 million dollars to support local education, health, environment and cultural programs in Alcoa communities around the world.
In addition, Alcoans in China and throughout the world donated more than 634,000 hours of volunteer work, to help build better communities wherever Alcoa operates.
Qinglong Alcoa Hope School Grand Opening
Alcoa Corporate Overview 2008

15. Energy conservation: recycling
4/20/2017
Energy conservation: recycling mt
Growth in recycled content
Recycling is another key part of our sustainability strategy. Currently Alcoa uses nearly a million tons a year of recycled aluminum in our production – roughly a fourth of our total primary production, and growing.
We believe this amount of recycled content makes us one of the recycling leaders in the aluminum industry, and that it’s in our interest to extend and grow this position in the future.
Currently Alcoa uses nearly 900,000 mt/year of recycled aluminum – nearly 25% of primary production
Scrap recycling center, Hungary
Alcoa Corporate Overview 2008

16. Recognition Sustainability
4/20/2017
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
2008
Our commitment to sustainability has earned Alcoa recognition as a leader from a variety of NGOs and media, including the Dow Jones Sustainability Index; BusinessWeek and Fortune; the United Nations, and other organizations.
Earlier this year Alcoa was named one of the most sustainable corporations in the world by Corporate Knights and Innovest Strategic Value Advisors at the World Economic Forum in Davos.
Alcoa Corporate Overview 2008

17. Alcoa: a Partner in China’s Growth
4/20/2017
Let me focus more closely on the reason you’re visiting us today: Alcoa’s partnership with China, its past and its future.
Alcoa: a Partner in China’s Growth
Alcoa Corporate Overview 2008

18. Alcoa’s History in China
4/20/2017
Alcoa’s History in China
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 has been operating in China since 1993, and has invested more than $700 million in China as we created 13 local operations. In the process of setting up local plants, Alcoa has contributed to China’s overall economic progress, the country’s environmental protection campaign, and to community development where we operate.
We have been a preferred partner in China since the 1980’s, when we formed a technology relationship. That relationship has now grown and evolved through the years in China… from when we were chosen as a partner in Chalco’s successful IPO, to our continued partnership with Chinalco on investments in the industry.
Our pace is Accelerating
* Now Sino Metals
Alcoa Corporate Overview 2008 18

19. Not operated directly by Alcoa
4/20/2017
Overview
ALCOA’S ASSETS AND LOCATIONS IN CHINA
13 locations
1926 employees
Headquarters - Beijing
Sheet and Foil* - Bohai
Shared Service - Bohai
Brazing Sheet - Kunshan
Fasteners - Suzhou
Guanlu
Fasteners - Shanghai
AEES – Shanghai*
Foil – Shanghai*
Sales - Shanghai
Today we have more than 1900 employees in China at our 13 locations, and hope to grow from that base. As you can see, our operations cover a wide area of China.
Sourcing - Shanghai
Shared Service - Shanghai
Foil – Kunming*
Sales - Guangzhou
Corporate and Offices
Flat Rolled Products Locations
Other Alcoa Locations
Not operated directly by Alcoa
Hainan
Sales – Hong Kong
* Foil and AEES operations are scheduled for divestiture in 2009
Alcoa Corporate Overview 2008 19

20. Investing in China’s growth
4/20/2017
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)
We are investing in China because we believe that we can contribute to China’s future: not just through aluminum production but through technology and community development as well. The $700 million we have invested since 1993 is expected to grow to $1 billion by 2010, making Alcoa one of China’s top ten investors.
Alcoa Corporate Overview 2008

21. Major Alcoa China Facilities
4/20/2017
Major Alcoa China Facilities
Alcoa Bohai Aluminum Co.
Alcoa Kunshan
AFS Suzhou
Location
JV commenced
Alcoa equity
Key Products
Recent activity:
Qinhuangdao, Hebei
Jun / October 2005
73%
FRP: incl. finstock, beer wrap, cable warp, household foil, standard sheet, etc.
Construction of the hot mill is underway
Key equipments include one mm HM, one 2200mm VAI CM, and three 2200 VAI FMs
Kunshan, Jiangsu
Apr.2006
70%
Brazing sheet for HVAC, common-alloy sheet
N/A
Suzhou, Jiangsu
Apr.2006
100%
Aerospace fastening systems, fasteners for commercial transportation, rail & car applications
N/A
Much of our investment in China has gone into production facilities.
The most active of these projects is the construction of a hot mill at Qinhuangdao for our Alcoa Bohai Aluminium joint venture with CITIC. This will add a new source of value-added rolled aluminum products within China, including can body stock, lithographic plate, and other high-value products for transportation and other markets.
Our Kunshan project, a joint venture with Yencheng Engraving, has been producing brazing sheet and other materials for the Asian automotive market since January 2007.
Our Suzhou plant in Jiangsu makes fastening systems for aerospace and other markets. It’s part of Alcoa Fastening Systems, a leading global supplier to aerospace, commercial transportation and industrial customers.
Alcoa Corporate Overview 2008

22. Living Alcoa’s Values in China
4/20/2017
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
Alcoa’s commitment to living our values is alive and well in China. We invest time and money to educate, to preserve the environment, and to support health and development programs in each of the communities we serve. Since 2003, that investment has totaled more than $2.2 million in China.
Alcoa has been recognized for sustainability as well. Recently, Alcoa’s Chairman, Alain Belda, was honored by the Asia Society for environmental leadership as a result of the significant reduction of greenhouse gases at Alcoa facilities worldwide.
Bohai rolling mill
Alcoa Corporate Overview 2008

23. Alcoa Partnerships for Sustainability in China
4/20/2017
Alcoa Partnerships for Sustainability in China
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
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
Our goal in China is to contribute to growth, not just through our production, but through ideas as well. That’s why we opened a Technical Center in Beijing that’s linked with Alcoa’s global technology network – the leading aluminum research organization in the world.
One of the first products of this collaboration is an energy-saving aluminum-intensive bus design created in partnership with Zhengzhou Yutong Bus Company, Ltd. This design uses advanced lightweighting technology to meet China’s growing transit needs in a way that will significantly reduce greenhouse gas emissions and improve fuel economy.
Another Alcoa customer in China, Beijing Public Transport Holdings Ltd., has used Alcoa Wheels for its buses since BPT also put Alcoa Wheels on 50 special electric buses used in the Olympic Village During the 2008 Beijing Olympic Games.
Alcoa Corporate Overview 2008

24. Partnerships for progress
4/20/2017
Partnerships for progress
Beijing International Airport Terminal 3
Alcoa Architectural Products provided world class preprinted aluminum Reynolux coil for about 300,000 square meters
National Gymnasium – 2008 Olympic Games
More than 29,000 square meters of Alcoa Architectural Products’ Reynolux coil coated aluminum sheet
Customers in China are using solutions from Alcoa for advanced, sustainable building projects as well. Alcoa Architectural Products provided its world-class Reynolux composite material for the roof of Terminal 3, Beijing capital International Airport, covering about 300,000 square meters.
Reynolux composite was also used for the roof of the National Gymnasium built for the 2008 Olympic Games.
Alcoa Corporate Overview 2008

25. Alcoa: a Dependable Partner for a Sustainable Future
4/20/2017
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
It has been nearly 30 years since Alcoa began its partnership with the business organizations of China. In that time, we have learned and grown with the people and the organizations that make up the China of today. As our relationships have deepened, we have come to appreciate how growth and success depend on trust and understanding, and how Alcoa’s ability to grow in China depends on our ability to live our Values in our communities in Beijing, Shanghai, Hong Kong -- and everywhere else in China we have a presence.
Looking ahead, we believe that Alcoa’s leadership in aluminum technology and sustainability can be a positive part of China’s bright future. We look forward to contributing to the next 30 years and beyond.
Thank you!
Alcoa Corporate Overview 2008

26. Alcoa can’t wait for tomorrow!
4/20/2017
Thank you
Alcoa can’t wait for tomorrow!
Alcoa Corporate Overview 2008