Alcoa Can’t Wait For Tomorrow

St Gobain – Feb 28, 2013

Alcoa at a Glance

Founded in 1888

200+ locations

31 countries

$21.0 billion 2010 revenue

Alcoa’s lost workday injury rate is 1/10 that of

the average U.S. manufacturing workplace

Award-winning sustainability leadership

120 years of aluminum technical leadership,

including the original aluminum process

2

Number of Employees (2010)

U.S. 24,000

Europe 17,000

Other Americas 11,000

Pacific 7,000

59,000

Aluminum – The Miracle Metal

3

Drives fuel

efficiency

Makes hottest

gadgets cool

Takes you out of

this world

Infinitely

recyclable

Builds a strong

foundation

Replacing 2 lbs.

of steel with one

pound of

aluminum in a city

bus can

eliminate up to

35 pounds of

greenhouse gas

over its lifetime

Aluminum’s look,

feel, durability

and thermal

conductivity

make it a top

trend in consumer

electronics

Nearly all the

alloys used in

modern aircraft

were developed

by Alcoa

More than one

trillion cans

have been

recycled in

America since

Alcoa pioneered

the industry in

1972

An office building

using aluminum-

enabled building

envelopes can

drive 20%

energy savings

over similar

buildings: and

157 tons of CO2

per year

Almost 75% of all aluminum produced is still in use today

The Aluminum Leader for 125 Years

4

F Upstream Bauxite mining

Alumina refining

Aluminum smelting

Aluminum recycling

Downstream Fastening Systems

Power & Propulsion

Wheel & Transportation

Building & Construction

Forgings & Extrusions

Midstream Flat rolled aluminum

Op

era

tio

ns

We invented the aluminum smelting process in 1888

Alcoa is the largest producer of aluminum in the world

Alcoa is the leader in aluminum technology and innovation

Only aluminum company covering every stage of aluminum production:

Alcoa is No.1 or No. 2 in 85% of our Businesses

5

Primary Aluminum

Transportation

Packaging

Building/ Construction

Aerospace

Industrial

Oil & Gas

Consumer Electronics

Ingot

Rolling slab

Extrusion billet

Cast Rod

Sheet, castings, extrusions

Forged wheels

Sheet for aluminum beverage cans and bottles

Recycling

Reynobond/Reynolux Aluminum Composite Material

Kawneer windows, curtain wall systems, entrances, framing

Sheet/Plate for fuselage skins

Structural forgings

Fastening Systems

Cast turbine blades

Sheet

Plate

Forgings

Hard-alloy extrusion

Aluminum drill pipe

Riser systems

Enclosure design and surface treatments

Thermal management for displays

Forgings for display manufacturing

Worldwide Operations – Regional Strength

6

Key Global Megatrends Fuel Our Growth

Population Growth Urbanization Climate Change

7

Energy consumption rising

Increase of 54% by 2025

Driven by developing countries

Personal transport rising

Increase of 40% by 2030

Greenhouse gas regulation

Global population rising

2006: 6.6 billion

2025: 7.9 billion

2050: 9.1 billion

Population in cities

2006: > 50%

2030: > 60%

Demand for buildings, transportation and consumer

goods

Demand for infrastructure, energy

Demand for fuel efficiency, recyclability, environmental

stewardship

Values Drive Everything We Do

8

Integrity

Environment, Health and Safety

Customer

Excellence

People

Profitability

Accountability

Building shareholder value

Behaviors, actions, results

Customers, employees, community

Promote human and environmental health

Creating value through innovation

Pursued in everything, every day

Embracing change and respecting the individual

Future Products Have Potential to Revolutionize Markets

9

Aerospace Defense Energy

Packaging

Consumer Electronics

Ground Transportation Oil & Gas Building & Construction

Fuselage sheet that mimics sharkskin

Energy efficient buildings

Ultra-thin, durable, infinitely recyclable finishes

Strong, light, blast-resistant military vehicles

Low-cost concentrating solar power

Aluminum-intensive electric cars

Nano-coatings increase life of oil riser systems

Stylish, cool, sustainable packaging

10

Infinite Recyclability

Surface Finish

Attributes

High Strength

Formability

Thermal Management

Light Weight

The Alcoa Aluminum Proposition

Consumer Electronics: Making the Hottest Gadgets

Cool

MacBook Pro

Sony’

Reader™

Apple’s aluminum-backed iPad”

Nokia N8

Amazon

Kindle

HP ProBook 4520s

Aerospace: Alcoa’s Content Runs From Nose to

Tail and From Wing-tip to Wing-tip

Fuel Connectors

Wing Ribs (Plate)

Fuselage Stringers

Hydraulic Vessels

Fuselage Skins

Seat Tracks

Floor Beams

Bay Landing & Support Forgings

Wing Box Fasteners

Fuselage to Wing Connection

Upper Wing Skins

Wing Spars (Forgings)

Engine Pylon Fasteners

Engine Pylon Support Structure

Lower Wing Skins

Wing Flap Fasteners

Wing Spars (Plate)

Wing Gear Rib & Support Fittings

Vertical Stabilizer Fasteners

“Hot Section” Turbine Engine Airfoils

11

12

Innovation is our heritage Y

ear

Truck bodies &

Wheels

Automotive

Structures

Audi A8

Electrical

Conductor

Model T Castings

Buildings

Marine

Heat

Exchangers

1886 1900 1920 1940-1950 1960 1980 1990 1890

Airplanes Household Foil

2000

Cookware

Ferrari Modena

Space Shuttle

Airbus A380

Aluminum

Beginnings

Today

Defense

Oil & Gas Consumer

Electronics

Environmentally-

Friendly Bus

Aluminum

Bottles

Easy Open

Cans

Alcoa Energy Efficiency Program

Reaching our goals through sustainable targets.

•Plant Energy SPAs

•Regional energy organizations

•External corporations

•Agencies (DOE, ABRACE, ETC.)

•Corporate Energy Team

•Training

•Webinars

•Global & regional meetings

•Workshops

•Case studies

•Top level commitment

•Goal setting

•Reporting

•Recognition

•Energy management standard practice

Energy Efficiency Program

•Energy assessments

•Energy Kaizens

•Technical assistance

•Standard practices

•Energy projects

14

Top Level Commitment

Dedicated energy team and energy efficiency

staff.

Each business sets annual energy reduction

goals.

Businesses and business units designate

energy champions (SPAs).

Each business establishes an energy cost

reduction goal and strategy.

Executive compensation linked to an energy

reduction goal.

15

Downstream businesses (GRP

and EPS)

− 20% reduction in energy

intensity between 2005 –

2020 (2010 for EPS)

− 30% reduction by2030

Progress is reported in the Alcoa

sustainability report each year

Goal Setting & Reporting

Set long term reduction goals

Global Primary Products (Mining, refining and smelting)

− 10% reduction in energy intensity between 2005 - 2020

− 15% reduction by 2030

16

Chart from the Alcoa 2011 Sustainability at a Glance Report

17

Recognition

Striving to recognize individuals and groups making the Energy Efficiency

Program successful.

Past individual awards include:

Developing/contributing to a

Best Practice procedure.

Providing leadership in

program development.

Leading a successful

assessment.

Sharing information and

providing technical support.

Three primary standards

1. Energy Management Standard Practice (ISO 50001)

2. Energy Measurement, Management, and Verification

3. Compressed Air Systems

18

Energy Management Standard Practice

Energy Management Best

Practice documents

available on the Global

Energy Efficiency website

Five day “deep dive” review of all aspects of energy use.

Technical investigation of specific energy users.

All opportunities (capital and non-capital ) identified and quantified.

Involves both internal and external experts.

Full report of findings prepared.

19

Energy Assessment

A three day, plant-wide activity focused on:

Low cost and no cost actions to reduce energy consumption.

Learning ways to continuously improve and reduce energy

consumption.

Cross-functional teams of Alcoans brainstorm ways to reduce

energy use throughout the plant.

Teams identify, analyze, and evaluate energy savings opportunities

by observing daily operations.

Opportunities for reduction are quantified using a standard

methodology and calculation.

20

Energy Kaizen

Energy Kaizen

Aggregate Summary

2012 Energy Kaizens

Savings Opportunities (GJ) Energy Usage Observed (GJ)

~8% total energy

reduction identified

~8% GHG emission

reduction identified

~10% total utility spend

reduction identified

21 21

Energy Kaizen Results

22

Technical Assistance

By phone

By email

In person

The Corporate Energy Team is

available to help with questions,

problems, issues, and ideas.

SPAs also a good source for

phone or email assistance.

23

Standard Practices

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Standard Practices

25

Standard Practices

Training – Face to Face

26

Classroom Hands On

Energy Assessment Tools in Use

27

Training

Tools - Alcoa Energy Efficiency Suitcase

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HOBO U12 Data

Logger + 600 AMP Split

Core Current

Transformer

HOBO H22 Energy

Logger – Multi Channel

Multi Transducer Data

Logger

HOBO U12-014 Logger

– 0 to 1800 degree

thermocouple

Testo 540 Light Meter

Dickson

Pressure

Logger

Kill-A-Watt

120VAC outlet

energy meter

Fluke 345 – Clamp

Meter (Power

Factor / Energy

Logging)

UE Ultrasonic

Leak Detector

Pelican 1510

Case

Webinars

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Lighting Systems

Metering Systems

Compressed Air

Reporting and Tracking

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Global Energy Summit

Global & Regional Meetings

31

Global phone conferences – monthly

Regional conferences – Europe, Latin America,

Refining, Canada, LAC

Global & Regional Meetings

Business unit

conferences – BCS,

APP, EPS, GRP

32

Workshops

Two-day workshop helps businesses and locations develop

an energy reduction program. Topics covered include:

Getting started

Information sharing

Performing an assessment

Scheduling a Kaizen

Needed actions for energy efficiency

Next steps

Each workshop individualized to the needs of the plant.

33

Sharing Case Studies

34

Sharing Case Studies

35

Plant Energy Team & SPA

Energy SPA – energy expertise in technical and financial processes.

Energy Team comprised of personnel from key departments.

The SPA and Energy Team:

Understand the goals (targets) for the business and the plant.

Communicate the goals and activities.

Help determine energy metrics.

Lead a diverse energy team.

Report progress to plant lead team.

Participate with regional and corporate teams.

Drive greater employee engagement.

Share best practices with other locations .

Engage with regional energy groups.

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Regional energy groups can be organizations such as local

industries, state or provincial organizations, or regulatory action

groups.

Some examples:

ABRACE (Brazil)

U.S. Department of Energy

South East Energy Alliance (U.S.)

Industrial Energy Consumers of America

Associations provide:

Best Practice sharing with other industries

Incentive information

A greater voice with suppliers and government

Regional Energy Organizations

37

External Corporations

Information sharing

Observing established programs

Reviewing Best Practices

Recent association with Eastman let us observe how

they successfully encouraged employees to participate

in energy reduction program.

Benchmarking

DOE Partnership Brings Additional Energy Savings

Access to technical expertise

DOE provides valuable support to Alcoa Energy Efficiency Group activities.

Plant energy assessments.

Energy management training.

Tools and analysis for reporting.

DOE labs. Results

DOE conducted 13 onsite energy assessments.

Identified $20 million in potential savings.

Connected DOE with Alcoa locations in Latin

America to reduce global consumption.

Goal Setting

Alcoa signed up for the Better Building Better Plants Challenge to improve

energy efficiency 25% by 2020 across 30 plants in the U.S.

Achieved a 7.3% reduction to date.

39

Resource Agencies

Corporate Energy Team

40

Walt Brockway – Manager Global EE Adam Vucelich – Sr. Energy Engineer

Mike Caufield – Energy Specialist

Greg Harrell – Energy Consultant

Boiler efficiency

Steam system efficiency

Combined heat and power

Compressed air systems

Waste heat recovery

Heating systems

Over 80 Alcoa energy assessments

500 assessments for various industries

including DOW, Exxon-Mobil, ArcelorMittal

• Strategic Energy management

• Energy Assessment coordination

• Electricity Demand Response

• Regulation and compliance

• Combined 32 years experience

• electric utilities and energy management

• Hydro Electric system management

• Energy regulations and compliance

• Plant maintenance and engineering

Energy Assessment coordination and opportunity

evaluation

Process Heating systems

Compressed air systems

Electricity Demand Response

Combined thirty-five years experience with Alcoa and

Reynolds

aluminum smelting, casting, melting and cable

manufacturing

DOE energy efficiency software tools and analytical

offerings.

• Energy Assessment opportunity

evaluation

• Energy Kaizen facilitation

• Electrical metering

• Electrical distribution systems

• Energy Management

• Smelting substation power systems

• Hydroelectric operations and

maintenance

• Metering installation and commissioning

• NEC and NFPA industry practice

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Corporate Energy Team

Guides locations in establishing an Energy Efficiency

Program.

Assists in the initial assessment.

Conducts the Energy Kaizen to uncover ways to save

energy.

Provides technical assistance.

Helps locate local resources and associations.

Builds corporate and professional relationships.

Provides continuous guidance, assistance in problem

solving, and information on new technologies.

42

Deploy the ISO 50001 Energy Management

Standard Practice.

Utilize an Energy Kaizen.

Consider an assessment.

Getting Started

Don’t forget, we are here to help.

Contact the Corporate Energy Team

for assistance, answers to questions,

locating resources.

Questions

This is not just about this year or next…

…energy efficiency is our future.

Energy Efficiency Program