Annual Annual ShareholdersShareholdersMeetingMeetingMay 8, 2008May 8, 2008

SafetySafety

Directors: nominees to serve until 2011Directors: nominees to serve until 2011

Klaus KleinfeldPresident andCOO, Alcoa

Director since 2003

James W. OwensChairman and CEO,

Caterpillar Inc.Director since 2005

Joseph T. GormanChairman and CEO,

Moxahela Enterprises, LLCDirector since 1991

Ratan N. TataChairman,

Tata Sons LimitedDirector since 2007

DirectorsDirectors

Kathryn S. FullerChair, The Ford Foundation

Director since 2002

Carlos GhosnPresident and CEO,

Nissan Motor Co. and Renault S.A.

Director since 2002

Judith M. GueronScholar in Residence at MDRC

Director since 1988

E. Stanley O'NealFormer Chairman

and CEO,Merrill Lynch & Co., Inc.

Director since 2008

Michael G. MorrisChairman, President and CEO,

American Electric Power Company, Inc.Director since 2008

DirectorsDirectors

Alain J.P. BeldaChairman and CEO,

Alcoa Inc.Director since 1998

Henry B. SchachtManaging Director

and Senior Advisor,Warburg Pincus LLCDirector since 1994

Franklin A. ThomasConsultant, The StudyGroup; and Advisor,

the UN Fund forInternational Partnerships

Director since 1977

Ernesto ZedilloDirector, Yale Center

for the Study of Globalization

Director since 2002

Executive CouncilExecutive Council

Alain Belda Chairman & Chief Executive OfficerWilliam Christopher EVP and Group President,

Engineered Products & SolutionsRegina Hitchery VP, Human ResourcesBarbara Jeremiah EVP, Chairman’s CounselKlaus Kleinfeld President and Chief Operating

Officer, DirectorCharles McLane EVP and Chief Financial OfficerLawrence Purtell EVP, Chairman’s Counsel

Executive Council, cont.Executive Council, cont.

Bernt Reitan EVP and Group President, Global Primary Products

Mike Schell EVP, Business Development and Law Jake Siewert VP, EHS, Global Communications

and Public StrategyHelmut Wieser EVP and Group President, Global

Rolled Products and Hard AlloyExtrusions and Asia

Mohammad Zaidi EVP, Market Strategy, Technology and Quality

Forward Looking StatementsForward Looking Statements

Today’s discussion may include “forward-looking statements” within

the meaning of the Private Securities Litigation Reform Act of 1995.

Such statements relate to future events and expectations and involve

known and unknown risks and uncertainties. Alcoa’s actual results

or actions may differ materially from those projected in the forward-

looking statements. For a summary of the specific risk factors that

could cause results to differ materially from those expressed in the

forward-looking statements, please refer to Alcoa’s Form 10-K for the

year ended December 31, 2007 and Form 10-Q for the quarter ended

March 31, 2008 filed with the Securities and Exchange Commission.

Annual Annual ShareholdersShareholdersMeetingMeetingMay 8, 2008May 8, 2008

Committed to SafetyCommitted to Safety

2008 YTDLWD .09TRR 0.99

2007 Financial Performance2007 Financial Performance

• Record income from continuing operations of $2.6b or $2.95 per share

• Record revenues of $30.7b• Record cash from operations of $3.1b • Debt to cap of 30.2%• Trailing twelve months ROC of 16.1%

excluding impact of growth projects• Dividend increase of 13%

11stst Quarter 2008 Financial Quarter 2008 Financial OverviewOverview• Income from continuing operations of $303m or $0.37

per share - $361m or $0.44 per share excluding the impact of restructurings

• Revenues of $7.4b• Currency impact of $68m or $0.08 per share

sequentially, including $48m, or $0.06 per share non-cash translation

• Segment ATOI increased 42% excluding Packaging• Debt-to-cap at 31.5%• Trailing four quarters ROC of 10.7%; 13.5% excluding

growth

– Expanded 25% repurchase program authorized October 2007

Share Repurchase ProgramShare Repurchase Program

Based on 868M Shares OutstandingAs of January 19, 2007

9.4% repurchased as of 3.31.08

15.6% additional authorized

– 10% repurchase program authorized January 2007

– ~68M shares, or 7.8%, repurchased in 2007

Timeline Overview

– ~14M shares, or 1.6%, repurchased in Q1 2008

653M

82M

135M

Total Shareholder Return for 2007Total Shareholder Return for 2007

Source: Thomson Financial

Tota

l Sha

reho

lder

Ret

urn

(%)

Alcoa +24.1%

DJIA +8.9%

S&P 500 +5.5%

S&P Industrials +12.5%

-10%

0%

10%

20%

30%

40%

50%

60%

70%12

/31/

06

1/31

/07

2/28

/07

3/31

/07

4/30

/07

5/31

/07

6/30

/07

7/31

/07

8/31

/07

9/30

/07

10/3

1/07

11/3

0/07

12/3

1/07

AA DJIA S&P 500 S&P Industrials

2008 Total Shareholder Return2008 Total Shareholder Return(As of 5/7/08)(As of 5/7/08)

Source: Thomson Reuters

Tota

l Sha

reho

lder

Ret

urn

(%) Alcoa +5.3%

DJIA -2.6%

S&P 500 -4.5%

S&P Industrials -2.4%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

12/3

1/07

1/4/

081/

9/08

1/14

/08

1/17

/08

1/23

/08

1/28

/08

1/31

/08

2/5/

082/

8/08

2/13

/08

2/19

/08

2/22

/08

2/27

/08

3/3/

083/

6/08

3/11

/08

3/14

/08

3/19

/08

3/25

/08

3/28

/08

4/2/

084/

7/08

4/10

/08

4/15

/08

4/18

/08

4/23

/08

4/28

/08

5/1/

085/

6/08

Alcoa DJIA S&P 500 S&P Industrials

Alcoa: A History of Growth Alcoa: A History of Growth & Innovation& Innovation

20081950

We reshapedthe industry

We innovatedmarketsWe invented

the industry

1888 1900

1958 1965 1972 1979 1986 1993 2000 2007

Historical Perspective Historical Perspective

Alcoa has grown from a $753 Million US-based Company to a $30.7 Billion Global Enterprise since 1958 R

evenue in billions

$30.7

$0.753

$30.7

$7.8

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Historical PerspectiveHistorical PerspectiveGrowth over the last 20 Years has also been strongRevenues in 1987 – $7.8 billion R

evenue in billions

$30.7B

$20.3B$22.6B

$25.6B

$30.4B

2003 2004 2005 2006 2007

Last 5 YearsLast 5 Years2007 Revenues + 50% vs. 2003

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Markets Drive Growth Over Past 50 YearsMarkets Drive Growth Over Past 50 YearsCommercial Airplanes

Aluminum Beverage Cans

Source: CRU Beverage Packaging Material Report

2040

6080

100120140

160180

200220

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

01020304050607080

1950

1961

1964

1967

1970

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

2003

2006

2007

Global Auto Production (Millions)

Historical PerspectiveHistorical PerspectiveWorld Aluminum Consumption(million metric tons)

Source: Brook Hunt, Alcoa analysis

8.2

10.6

4.6

7.3

5.6

22

1998

China

Rest ofAsia

2.8

6.73.6

North9.2

8.6

29.1

67

2017

East Eur/Mid East/Africa

W.Europe

South

6.7

5.2

12.0

38

2007

6% CAGR6% CAGR

6% CAGR6% CAGREurope/ME/Africa

Americas

Asia

12%12%

1%1%

6%6%

8%8%

4%4%

5%5%

2.5

0.8

1.3

2.6

0.80.06

0.7

1.40.11

1958

3 5%5%

4%4%

5% CAGR5% CAGR

Last time U.S. aluminum demand grew Last time U.S. aluminum demand grew (2006) it only represented 1% of global (2006) it only represented 1% of global demanddemand

Source: HARBOR Intelligence

As demand in U.S. & Japan has stayed flat As demand in U.S. & Japan has stayed flat consumption in China has increased 9consumption in China has increased 9--fold fold since 1993since 1993

Source: HARBOR Intelligence

China not aloneChina not alone……others catchingothers catching--up tooup too

Source: HARBOR Intelligence

0

5

10

15

20

25

30

0 10 20 30 40 50GDP per capita ($Thousands; PPP 2007 basis)

South KoreaGermany

Canada

USA

France

Italy

TaiwanJapan

ChinaRussia

Venezuela

MexicoArgentina

ThailandBrazil

PhilippinesIndonesia

India

25.7 25.3 25.0

21.119.3 18.6 18.0

9.18.1

6.9 6.6

4.3 3.51.5 1.1 1.0 0.3

0

5

10

15

20

25

30

Sou

th K

orea

Ger

man

y

Can

ada

Taiw

an

Japa

n

USA Ita

ly

Chi

na

Rus

sia

Ven

ezue

la

Thai

land

Bra

zil

Arg

entin

a

Mex

ico

Indo

nesi

a

Indi

a

Phi

lippi

nes

PRIMARY ALUMINUM DEMAND PER CAPITA ´07(kg per capita)

PRIMARY ALUMINUM DEMAND PER CAPITA ´07(kg per capita)

Global market boom expected to continueGlobal market boom expected to continue

Source: HARBOR Intelligence

PRIMARY ALUMINUM DEMAND PER CAPITA ´07(kg per capita)

China

India

USAJapan

Taiwan

South Korea Germany

Brazil

Russia10

15

20

25

30

10 20 30 40 50 60

5

GDP per capita ($ thousands; PPP 2007 basis)

Agricultural Urbanizing & Industrializing Mature- Service/Tech

Our Strategies For Growth Our Strategies For Growth –– Then and NowThen and Now

20 Years Ago We Were Building for Growth

Sao Luis

Strategies For GrowthStrategies For GrowthAlcoa Fjardaal Started Last Pot on April 9th

Targeted Repowering EffortsTargeted Repowering Efforts……Update April 2008Update April 2008

Projected Status Year-end 2008

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

% o

f Equ

ity C

apac

ity

Power Market Exposure

Contracted Power

Self-Generated Power

Repowered

Projected Status Year-end 2008

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

% o

f Equ

ity C

apac

ity

Contracted Power & MOUs

Self-Generated Power

Remaining targeted in 2008

Progress in Quebec

Repowering Efforts 2009 - 2012

Excludes Curtailed Capacity

SelfSelf--Sufficiency Energy InvestmentSufficiency Energy Investment

Warrick$600 Million Investment Reduce Emissions and Increase Energy Generation

Brazil Hydro Projects

Parental Advantage Parental Advantage -- InfrastructureInfrastructure

• Investments in IT/Oracle/ABS• Back-office consolidation• Increased connectivity• Real-time safety data• World-class EHS systems• Integrated purchasing systems

– Req to Pay

Globalization Laid Groundwork for Globalization Laid Groundwork for Brownfield and Greenfield InvestmentsBrownfield and Greenfield Investments

• Pinjarra• Sao Luis• Jamalco• Juruti• Iceland

Upstream Examples

Globalization Laid Groundwork for Globalization Laid Groundwork for Brownfield and Greenfield InvestmentsBrownfield and Greenfield Investments

• Bohai – September 2008• Russia – Belaya Kaltiva

and Samara• Aerospace HT Sheet

and Plate +50%

Downstream Examples

WeWe’’ve Expanded into Additional ve Expanded into Additional Areas to Serve CustomersAreas to Serve Customers• Purchased Howmet• Added Fastening Systems• Expanded Wheels• New Capabilities For Customers

Our Innovation & Technology Our Innovation & Technology Continue to Lead to Market PotentialContinue to Lead to Market Potential

RecyclingRecycling

Process ImprovementsProcess Improvements

Alloy DevelopmentAlloy Development

Design ExpertiseDesign Expertise

Surface EnhancementsSurface Enhancements

Customer SolutionsCustomer Solutions

Sustainability of AluminumSustainability of Aluminum

• Green Buildings• Aluminum Bottles vs. PET• Recycling• Trains, Planes and Autos

– Light-Weighting, Right-Weighting

Customers Want to Make Their Products Green

Making a Difference in Climate ChangeMaking a Difference in Climate Change

Focusing on Climate ChangeFocusing on Climate ChangeLeader in Public PolicyFounding Member USCAP

Alcoa is Favorably Positioned to Help Customers with GHG Emissions

Alcoa CO231.1 mmt direct

27.9 mmt indirect

Annual Annual ShareholdersShareholdersMeetingMeetingMay 8, 2008May 8, 2008

AppendixAppendix

Return on CapitalReturn on Capital(in millions)

Bloomberg Return on Capital (1)

Bloomberg Return on Capital, Excluding Growth Investments (1)

Twelve months ended Twelve months ended December 31, March 31, December 31, March 31, 2007 2008 2007 2008

Net income $ 2,564 $ 2,205 Net income $ 2,564 $ 2,205

Minority interests 365 317 Minority interests 365 317 Interest expense Interest expense (after tax) 262 266 (after tax) 262 266 Numerator $ 3,191 $ 2,788 Numerator 3,191 2,788 Net losses of growth

investments (3) 91 96 Adjusted numerator $ 3,282 $ 2,884

Average Balances Average Balances Short-term

borrowings

$ 516

$ 524 Short-term

borrowings

$ 516

$ 524 Short-term debt 356 358 Short-term debt 356 358 Commercial paper 1,164 864 Commercial paper 1,164 864 Long-term debt 5,574 6,374 Long-term debt 5,574 6,374 Preferred stock 55 55 Preferred stock 55 55 Minority interests 2,130 2,320 Minority interests 2,130 2,320 Common equity (2) 15,269 15,563 Common equity (2) 15,269 15,563 Denominator $ 25,064 $ 26,058 Denominator 25,064 26,058

Capital projects in progress and capital base of growth investments (3) (4,620) (4,730)

Adjusted denominator $ 20,444 $ 21,328

Return on capital

12.7%

10.7%

Return on capital, excluding growth investments

16.1%

13.5%

Return on capital, excluding growth investments is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because it provides greater insight with respect to the underlying operating performance of the company’s productive assets. The company has significant growth investments underway in its upstream and downstream businesses, as previously noted, with expected completion dates over the next several years. As these investments generally require a period of time before they are productive, management believes that a return on capital measure excluding these growth investments is more representative of current operating performance.

(1) The Bloomberg Methodology calculates ROC based on the trailing four quarters. Average balances are calculated as (March 2008 ending balance + March 2007 ending balance) divided by 2 for the twelve months ended March 31, 2008, and (December 2007 ending balance + December 2006 ending balance) divided by 2 for the twelve months ended December 31, 2007.

(2) Calculated as total shareholders’ equity less preferred stock. (3) For all periods presented, growth investments include Russia, Bohai, and Kunshan.

Reconciliation of Adjusted IncomeReconciliation of Adjusted Income(in millions, except per-share amounts)

Net Income

Diluted EPS

Quarter ended Quarter ended 1Q08 1Q08 Net income $ 303 $ 0.37 (Loss) income

from discontinued operations

–

Income from

continuing operations

303

0.37

Discrete tax

items

28

Restructuring

and other charges

30

Income from

continuing operations – excluding restructuring and other charges and discrete tax items

$ 361

0.44

Income from continuing operations – excluding restructuring and other charges and discrete tax items is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of Alcoa excluding the impacts of restructuring and other charges and discrete tax items. There can be no assurances that additional restructuring and other charges and discrete tax items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both income from continuing operations determined under GAAP as well as income from continuing operations – excluding restructuring and other charges and discrete tax items.

AfterAfter--tax Operating Income (ATOI)tax Operating Income (ATOI)(in millions) 4Q07 1Q08 Total segment ATOI $ 518 $ 666 Unallocated amounts (net of tax): Impact of LIFO 9 (31) Interest income 10 9 Interest expense (53) (64) Minority interests (64) (67) Corporate expense (100) (82) Restructuring and other charges 1 (30) Discontinued operations 8 – Other 303 (98) Consolidated net income $ 632 $ 303

In the first quarter of 2008, management approved a realignment of Alcoa's reportable segments to better reflect the core businesses in which Alcoa operates and how it is managed. This realignment consisted of eliminating the Extruded and End Products segment, and realigning its component businesses as follows: the building and construction systems business is reported in the Engineered Products and Solutions segment; the hard alloy extrusions business and the Russian extrusions business are reported in the Flat-Rolled Products segment; and the remaining segment components, consisting primarily of the equity investment/income of Alcoa's interest in the Sapa AB joint venture, and the Latin American extrusions business, are reported in Corporate. Additionally, the Russian forgings business was moved from the Engineered Products and Solutions segment to the Flat-Rolled Products segment, where total Russian operations are now reported. Prior period amounts were reclassified to reflect the new segment structure. Also, the Engineered Solutions segment was renamed the Engineered Products and Solutions segment.

Quarter ended December 31,

2007 March 31,

2008 Total segment ATOI $ 518 $ 666 Packaging and Consumer 56 11 Total segment ATOI, excluding

Packaging and Consumer

$ 462

$ 655

Total segment ATOI excluding the Packaging and Consumer segment is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of Alcoa excluding the Packaging and Consumer segment due to the sale of the businesses within this segment in February 2008.