New Breakthrough Technologies Lower Cost, Weight and Production Risk of New Airplanes

June 9, 2011

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Agenda

Introductions Alcoa Aerospace Portfolio pgs 3-7 New Technologies Provide Step-Change Improvements pgs 8-14 Market Research Study -- The More You Know, The More Favorable Aluminum Is -pgs 15-19 Questions and Answers

Kevin Lowery Eric Roegner, President Alcoa Forgings and Extrusions Mick Wallis, President North American Rolled Products Eric Roegner, President Alcoa Forgings and Extrusions

Alcoa Aerospace is Comprised of 4 Units Totaling $2.9B in Sales 2010 Aero Revenues = $2.9B
Alcoa Power and Propulsion
(aka Alcoa Howmet)

$1,024m 36% Alcoa Fastening Systems $868m 30% $376m 13% Forgings & Extrusions $596m 21%

Global Rolled Products

Industry leading products and integrated solutions

Rolling Investment Large Press Large Press Fasteners Castings Extrusions Al Forgings Understanding: Beyond materials we understand how materials together with structural and design innovations, can work in concert to provide optimal solutions Global Footprint: We are where you need us to be globally positioned to support global customer growth Proven Track Record: A long history working with aerospace customers to help new aircraft meet demanding new missions
Fuselage: higher damage tolerance and corrosion resistance Wings: enhanced fatigue life, higher strength and/or higher damage tolerance Structures: enhanced stiffness, density, strength and /or corrosion resistance available Advanced Fasteners: for metallic and CFRP structures
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Product Breadth Global Aerospace Market Position

#1

#1

#1

#1

#1

Aerostructures Fastening Systems

Global Footprint

Alcoa Proprietary Information - These commodities and technology are exported from the United States in accordance with Export Administration Regulations. Diversion contrary to U.S. law is prohibited. Any reproduction or distribution of the contents of this presentation in whole or in part is prohibited unless authorized in writing by Alcoa.

Alcoas content runs from nose to tail and from wing-tip to wing-tip
Vertical Stabilizer Fasteners Wing Gear Rib & Support Fittings Wing Spars (Plate) Upper Wing Skins Floor Beams Wing Flap Fasteners Lower Wing Skins Wing Spars (Forgings) Fuselage Stringers Wing Ribs (Plate) Fuselage Skins Hydraulic Vessels Fuel Connectors

Seat Tracks

95% of Alloys From Alcoa

Engine Pylon Support Structure Turbine Engine Airfoils

Wing Box Fasteners Engine Pylon Fasteners Fuselage to Wing Connection

Bay Landing & Support Forgings

An aerospace industry tradition: every new aircraft program includes new aluminum product innovations
Boeing 747-8 Boeing 787 Airbus A380 Airbus A350XWB

Innovations include the application of advanced metallic material technology from the 777 family to the 747 platform.

First Aluminum Lithium Large Commercial Aircraft plate application Alcoas newest plate product selected for multiple applications. Aluminum continues to be a focus of Boeing teams targeting challenging weight goals

New sheet & plate product inventions. Aluminum lithium extruded floor structure. Worlds largest fuselage panels and largest wing skins. Each A380 consumes 7X metal required by a single aisle Increasing build rate in 2011

Aluminum lithium extruded floor structure as proven on A380

A new generation of large twin aisles entering service in 2011 extending the 747 well past 2020

EIS 2015 Build rates forecasted to exceed 10 aircraft per month by 2016

Alcoa Proprietary Information - These commodities and technology are exported from the United States in accordance with Export Administration Regulations. Diversion contrary to U.S. law is prohibited. Any reproduction or distribution of the contents of this presentation in whole or in part is prohibited unless authorized in writing by Alcoa.

Aluminum continues to be the material of choice when missions and performance are matched
Premature judgments about aluminum obsolescence?

Bombardier CSeries: Aluminum intensive airframe The Mitsubishi Regional Jet: Initial Design: Composite wings Sept 2009 Redesign: Aluminum wings AVIC ARJ-21: Aluminum intensive airframe

Gerson Lehrman Group Inc. concludes that new aluminum-lithium alloys will be the material of choice over composites for narrow-body airliners, citing aluminums damage tolerance, manufacturability and recyclability.
Alcoa Proprietary Information - These commodities and technology are exported from the United States in accordance with Export Administration Regulations. Diversion contrary to U.S. law is prohibited. Any reproduction or distribution of the contents of this presentation in whole or in part is prohibited unless authorized in writing by Alcoa.

Our Value Proposition Our solutions span all four life-cycle phases
The Performance You Need With Lower Risk for Today & Tomorrow

When You Build It

Lower Manufacturing and Assembly Costs Reduced Program Risk

When Your Customers Fly It

Lightweight Aerodynamic

When Its Time for Retirement

Recyclable

As They Maintain It
Corrosion Resistant Meet Emerging Inspection Interval Requirements
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Alcoa Proprietary Information - These commodities and technology are exported from the United States in accordance with Export Administration Regulations. Diversion contrary to U.S. law is prohibited. Any reproduction or distribution of the contents of this presentation in whole or in part is prohibited unless authorized in writing by Alcoa.

Our new technologies provide step-change improvements since the B787 design
Material selection for the 787: right decision at the right time. BUT times have changed and a lot has happened between then and now. Alcoa has developed completely new alloys that allow for: - Up to 10% lighter than composite-intensive planes - Lower risk and 30% less expensive to manufacture, operate and repair than composite-intensive planes - Provide passenger comfort features that are equivalent to composite-intensive planes (such as large windows, higher humidity and higher cabin pressure)
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Performance

5%-10% Lighter Structures + Improved Corrosion Performance Baseline (e.g., 777

or 737-NG)

10%-20% Lighter Structures + Cabin Comfort + Extended Inspection/MRO

Via New AL-Li Alloys in Combination with Advanced Structural Concepts & Other Supporting Technologies

Via New AL-Li Alloys

Conventional Metallic Structures

Time 787 Design Freeze Ready Now Supports EIS 2015 & Beyond

Optimized Fuselage Structure options - using validated technologies - offer more than just advanced materials
Selective Reinforcement:
Adv. Fuselage Concept

What Is It?

Can use bonded fiber-metal laminates instead of Al or Ti straps They save weight by allowing much thinner skins to meet damage tolerance goals Yes already applied on A400M center fuselage frames

What Do They Do? Used Elsewhere?

Reinforced Laser Welded Panels

Readiness Level? Component level validation

Reinforced Frames or Stringers

through Alcoa stiffened panel tests for fuselage and wing

Maturation Timeline

2011 Manufacturing of Curved Fuselage Test Panel

2012 Curved Fuselage Panel or Barrel Test

2013 Development of Design Allowables

2014 Inspection and Repair Demonstration

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The combination of Alcoa solutions & new engines delivers new short range aircraft that meets or exceeds targets
Higher Aspect Ratio Wing Enabled by Al-Li and Advance Structural Concepts Aerodynamic efficiency improvements Corrosion Resistant Advanced Alloys, Al-Li Alloys & Product Forms 3% - 7% Lower Density Significantly Improved Corrosion Resistance Tailored Products & Forms Low Buy-to-Fly Solutions Low Residual Stress Products

Improvements for a New Single Aisle / Short Range Aircraft (EIS >2020) 22% 27% more fuel efficient (Assumes 15%
efficiency improvement from new engines)

6% - 10% lower empty weight 100% increase in structural and corrosion inspection intervals Increased passenger comfort
Advanced Structural Concepts (Damage Tolerance Improvement of Critical Areas) Up to 10x Improved Damage Tolerance Performance Reduced inspection burden through SHM Enables Increased Cabin Pressurization Larger windows Cabin pressure (to 6,000 ft. alt)

More reliable design, modeling and certification processes

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Alcoa: the Al Li pioneer now rolls out a third generation of new corrosion resistant alloys for longer inspection intervals*
Exfoliation Corrosion: 3rd Gen Al-Li alloys are highly resistant to exfoliation corrosion Stress Corrosion: 3rd Gen Al-Li alloys have doubled their resistance to stress corrosion

7150-T6511 specimens fastened and coated -- severe exfoliation propagated from coating defects after moderate seacoast exposure

ST SCC Threshold Stress, KSI

Al-Li 2099-type specimens with no coating -- No exfoliation occurred after prolonged seacoast exposure

Conventional Aerospace Alloys (No Lithium)

3rd Generation AL-Li

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In large scale testing our solutions validated substantially extended fatigue inspection intervals
have demonstrated these test results in large panel tests The combination of these products and technologies Example: Fuselage Crown Panel Constant Amplitude

Advanced Al-Li Alloys Advanced Structural Concepts (Selective Reinforcement)

3X Life at 20% Lower Weight

that deliver such benefits as:

Doubled inspection intervals consistent with 12year heavy-check cycles

>20% weight savings in damage tolerance-driven areas

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Lets not forget some very important additional advantages of metallic designs (safety, weight, cost)

Metallic aircraft have intrinsic multi-functionality (including electromagnetic field and current return properties)

Eliminates the need for a metallic current return system work around (copper mesh, bus bar, etc) Eliminates need for an estimated ~1,000 kgs for a twin aisle aircraft

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We are confident our value proposition can be relevant across the industry
Our Confidence is buttressed from two sources: We are receiving positive acceptance of our Value Proposition from other OEMs who have been wrestling with similar material choices We have conducted a sizeable, market acceptance research study of our own that included many of your own customers and other members of the broader A&D community

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Delivering on our solutions shifts the industry towards favoring metallic structures
As of today, whats your overall perception of aluminum and composites as a primary structural material for new aircraft? How likely would you recommend Alcoa's "next gen" technology as the primary structural material on future aircraft if it can deliver:
Up to 10% lighter than composite-intensive planes Lower risk and 30% less expensive to manufacture, operate and repair than composite-intensive planes Able to provide passenger comfort features that are equivalent to composite-intensive planes (such as large windows, higher humidity and higher cabin pressure)

More than two-thirds (68%) of industry wide professionals rated aluminum highly as a choice for primary structure applications. In that same survey, aluminum outscored composites by almost 10% in favorability for primary structure

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Designers and Technologists favored metals the most The more you know the more favorable metals looks to you

Q1. As of today, whats your overall perception of aluminum as a primary structural material for new aircraft? Q2. and, whats your overall perception of composites as the primary structural material for new aircraft?

Favorable (4-5)

Neutral (3) Unfavorable (1-2)

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The new scorecard: That was then. THIS IS NOW

Advanced Metallics

Attribute
Weight MRO Inspection MRO Repairability Recurring Cost / Supply Chain Non-Recurring Cost Cabin Comfort Sustainability Part Count Customer Perception

CFRP

Draw

Draw

Draw

Draw

Draw

Draw

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Summary
The Material Selection for the 787: Right Decision at the Right Time. BUT Times have Changed and a Lot has Happened Between Then and Now. Completely New Alcoa Aluminum Lithium Alloys Allow For:
- Up to 10% lighter than composite-intensive planes - Lower risk and 30% less expensive to manufacture, operate and repair than composite-intensive planes - Provide passenger comfort features that are equivalent to composite-intensive planes (such as large windows, higher humidity and higher cabin pressure)

Not Just Us Industry Surveys Show The More You Know, The More Favorable Aluminum Is.

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Thank You

Alcoa Proprietary Information - These commodities and technology are exported from the United States in accordance with Export Administration Regulations. Diversion contrary to U.S. law is prohibited. Any reproduction or distribution of the contents of this presentation in whole or in part is prohibited unless authorized in writing by Alcoa.

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