Kaiser Aluminum : Business Update February 2025

Published: 2025-02-21 00:49:04 ET KALU

Business Update

February 2025

Non-Run-Rate Items

Non-run-rate items to us are items that, while they may recur from period to period, (1) are particularly material to results, (2) impact costs as a result of external market factors and (3) may not recur in future periods if the same level of underlying performance were to occur. These are part of our business and operating environment but are worthy of being highlighted for the benefit of the users of our financial statements.

Further, presentations including such terms as net income, operating income, or earnings before interest, tax, depreciation and amortization ("EBITDA") "before non-run-rate", "after adjustments" or "adjusted", are not intended to be (and should not be relied on) in lieu of the comparable caption under generally accepted accounting principles ("GAAP") to which it is reconciled. Such presentations are solely intended to provide greater clarity of the impact of certain material items on the GAAP measure and are not intended to imply such items should be excluded.

Non-GAAP Financial Measures

This information contains certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the company. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of non-GAAP financial measures to the most directly comparable financial measure in the accompanying tables.

The non-GAAP financial measures used within this presentation are Conversion Revenue, EBITDA, Adjusted EBITDA, Operating Income excluding non-run-rate items, Adjusted Net Income (Loss) and Net Income per diluted share, excluding non-run-rate items and ratios related thereto. These measures are presented because management uses this information to monitor and evaluate financial results and trends and believes this information to also be useful for investors. Reconciliations of certain forward looking non-GAAP financial measures to comparable GAAP measures are not provided because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted or provided without unreasonable effort.

Commonly Used or Defined Terms and Measures

Term/Measure

Description

Conversion Revenue

Net sales less the Hedged Cost of Alloyed Metal.

Conversion Revenue ($/lb.)

Calculated as Conversion Revenue divided by total shipment pounds.

EBITDA or Adjusted EBITDA

Consolidated Operating Income before non-run-rate plus Depreciation and Amortization.

EBITDA Margin or Adjusted EBITDA

EBITDA or Adjusted EBITDA as a percentage of Conversion Revenue.

Margin

Hedged Cost of Alloyed Metal

Calculated as the Midwest transaction price of aluminum plus the price of alloying elements plus any realized gains and/or losses on settled hedges related to

metal sold in the referenced period.

LTM

Last twelve months ended December 31, 2024.

Net Debt Leverage

Calculated as Long-term debt less Cash and cash equivalents, divided by the LTM Adjusted EBITDA.

NRR

Represents non-run-rate items relating to on-going operations. NRR items are presented on a pre-tax basis.

Other Applications

Includes custom industrial products and billet.

Additional Notes

Totals in the attached presentation may not sum due to rounding.

Warrick operations were acquired on March 31, 2021. As a result, our financial information reflects 9 months of Packaging operational results for 2021.

Annual Conversion Revenue for 2020 inclusive of ~$15 million related to modifications to 2020 customer declarations.

Investment Highlights

• Secular demand growth for aerospace, packaging, and

Strong Diversified Portfolio

automotive extrusions

• Solid market dynamics in general engineering applications

Leading Position in Strategic

•

Products that meet technically challenging applications

End Market Applications

•

Strategic customer relationships with multi-year contracts

Long-term Earnings Growth

• Attractive, growing end market applications

•

Significant strategic investments

Potential

• Platforms for additional organic / inorganic growth

Financial Strength and

• Conservative stewards of capital

•

Strong liquidity

Operational Flexibility

• Flexible / highly variable cost structure

Positioned for Long-term

Profitable Growth

Conversion Revenue:

~$2 Billion

Sustainability Driven

Products and Solutions

EBITDA Margin:

Mid-to-high 20%

Leading N.A. Specialty Aluminum Mill Products Company

Thirteen North American Manufacturing Locations

Flat Rolled Products -

Industrial/Aerospace

Packaging

Extrusions

Drawn Products

Consistent, Competitive Strategy

FOCUS

DIFFERENTIATION

VALUE CREATION

Demanding Applications

Product Quality, Service and

Operating Leverage and

with Barriers to Entry

KaiserSelect® Attributes

Manufacturing Efficiency

End Market Applications We Serve

Kaiser's Served End Market

Global Flat Rolled Products Market

Market Size >65B#

Kaiser Aluminum Focus

North American Extrusion Market

Market Size >6.0B#

Auto Body

Sheet

Foil

~15%

OF TOTAL FLAT ROLLED

PRODUCTS MARKET

HEAT-TREAT

NON-AUTO

~20%

OF TOTAL EXTRUSION

MARKET

GENERAL

ENGINEERING

Truck,

Bus,

and

Trailer

Industrial

Can Stock

ROW

Other Sheet

and Plate

CAN STOCK N.A.

AUTO AND

AEROSPACE

Building and Construction

Defensible niche footprint, strong customer relationships & demanding applications

Source: Typical market size estimates from CRU, Aluminum Association, and Kaiser (based on industry shipments)

Disclaimer

Kaiser Aluminum Corporation published this content on February 21, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 21, 2025 at 05:48:00.719.