AA
Investor Presentation
September 2024
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Important information
Non-GAAP Financial Measures
This presentation contains reference to certain financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Alcoa Corporation believes that the presentation of these non-GAAP financial measures is useful to investors because such measures provide both additional information about the operating performance of Alcoa Corporation and insight on the ability of Alcoa Corporation to meet its financial obligations by adjusting the most directly comparable GAAP financial measure for the impact of, among others, "special items" as defined by the Company, non-cash items in nature, and/or nonoperating expense or income items. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Certain definitions, reconciliations to the most directly comparable GAAP financial measures and additional details regarding management's rationale for the use of the non-GAAP financial measures can be found in the appendix to this presentation. Alcoa Corporation does not provide reconciliations of the forward-lookingnon-GAAP financial measures Adjusted EBITDA and Adjusted Net Income, including transformation, intersegment eliminations and other corporate Adjusted EBITDA; operational tax expense; and other expense; each excluding special items, to the most directly comparable forward-looking GAAP financial measures because it is impractical to forecast certain special items, such as restructuring charges and mark-to-market contracts without unreasonable efforts due to the variability and complexity associated with predicting the occurrence and financial impact of such special items. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to future results.
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3
Alumina Limited acquisition closed on August 1
Timeline and benefits of Alcoa's acquisition of Alumina Limited
Oct 2023
Indicative proposal
. . . . .
Jul 2024
Shareholder votes and
. . . . .Court approval. . . . .
Agreed transaction
Feb 2024
Closing
Aug 1, 2024
"
Alcoa is proud to announce the completion of our first
major acquisition. The acquisition of Alumina Limited strengthens Alcoa's position as one of the world's largest bauxite and alumina producers and is expected to result in long-term value creation from greater financial and operational flexibility.
"
4
An upstream aluminum company built to perform in all cycles
Global operations and summary of business segments
Global operations by product
Business segments
▪
More than 13,000 global employees
▪
Direct and indirect ownership of 27 locations across nine countries
on six continents
Aluminum
▪
Highly rated for corporate governance1
1.
ISS Governance QualityScore: 1 (highest). 2. Full impacts of lower bauxite grade in Australia, San Ciprián curtailment and operational issues in Brazil being assessed could place Alumina in second quartile in 2024.
5
3.
Defined as energy derived from natural processes that are replenished constantly, such as sunlight, wind and hydropower; source: 2023 Alcoa Form 10-K.
Market, geopolitics, drive promising supply and demand trends
Long term aluminum supply and demand dynamics
Demand growth driven by low carbon trends
Global total aluminum demand growth in 2024-2033, Mmt
Transport
Packaging and foil
Electrical
Consumer Durables
Construction
Machinery & Equipment
Other
Total
4.8
3.9
2.2
2.1
1.8
0.8
11.3
26.9
Supply constraints in China, means growth ex-China
Sources: CRU, Alcoa Analysis. 1. Difference between internal combustion engine vehicles and battery electric vehicles
Global primary aluminum production growth by region, in % of total growth
2015-20242024-2033
Ex-ChinaChina
7%
21%
79%
93%
China
Ex-China6
Operations focused on safety, stability and continuous improvement
2Q24 operational milestones
▪ Strong 2Q safety performance on both leading and lagging indicators
▪ Half year production records for Canadian smelting system and Mosjøen, Norway smelter
▪ Completed Kwinana refinery curtailment in June, as planned and without operational incident
▪ Alumar smelter stability improving as restart continues
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Multiple endeavors to impact short and medium term results
Key controllable elements of short and medium term improvements
2023-25 profitability improvement program
WA ongoing permitting approvals
▪ Currently mining reduced bauxite
$295M
Remaining
quality under revised MMPs
to attain
(Curtailed)
Program
2H24-2025
▪ Continuing to optimize refinery
operations to adapt to lower grade
total
Run rate
$645M
bauxite
improvements
$350M
and YoY raw
▪ Working to achieve EPA approval for
materials
new mine areas
savings
San Ciprián resolution activities
ELYSISTM
▪ Sale process expected to conclude in 2H24; also
▪ Announced industrial-scale demonstration of ELYSIS
seeking competitive energy solutions
▪ Project will occur at Rio Tinto's Arvida smelter in
▪ Success of sale or operational recovery depends
Quebec, Canada; includes 10 smelting pots operating at
upon significant and active support of government
100 kiloamperes (kA)
and flexibility from unions
▪ Alcoa to manufacture anodes and cathodes with right to
▪ Cash expected to run out in late 2024
purchase up to 40 percent of the metal produced
▪ The target for first production is by 2027
8
Heading in a positive direction
Summary
Year to date:
Going forward:
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Appendix
Disclaimer
Alcoa Corporation published this content on 05 September 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on September 05, 2024 at 18:26:02 UTC.