Slide 1: Alcoa Announces Strategic Acquisition of South32's Bauxite, Alumina, and Aluminum assets for $4.1 billion
Alcoa Announces Strategic Acquisition of South32’s Bauxite, Alumina, and Aluminum assets for $4.1 billion June 30, 2026, 7:00 p.m. EDT July 1, 2026, 9:00 a.m. AEST 1 Please see the appendix of this presentation for disclaimers, additional important information, and a glossary of terms.
Slide 2: Transaction Overview
Transaction Overview ▪ Alcoa to acquire South32’s interests in Worsley Alumina, Hillside Aluminum, and Brazil Alumina and Aluminum assets1 for an upfront consideration of $3.1B in cash and ~17.0 million shares of Alcoa common stock2, representing a TRANSACTION total value of $4.1B and implied enterp
Slide 3: Compelling transaction for long-term value
Compelling transaction for long-term value Transaction rationale Represents a natural strategic fit 1 ▪ Logical industry consolidation of like assets in close proximity ▪ Combined expertise and our operating model together enhance performance and cost competitiveness ▪ Added scale improves supply ch
Slide 4: Acquired assets are complementary to Alcoa's operations
1 Acquired assets are complementary to Alcoa’s operations Logical industry consolidation of like assets Asset interests being acquired1 Bauxite Alumina Aluminum Pro Forma Global Footprint Norway: Iceland: Canada: Worsley & Boddington Assets adjacent to Alcoa's United States: Spain: existing WA refin
Slide 5: Competitive assets that strengthen Alcoa's portfolio
1 Competitive assets that strengthen Alcoa’s portfolio Assets being acquired in Australia, Brazil, and South Africa Worsley & Boddington Brazil Hillside Integrated bauxite mining & MRN (bauxite mining), Overview Aluminum smelting alumina refining Alumar refinery & Alumar smelter South32 Ownership 33
Slide 6: Transaction unlocks ~$900M of NPV synergies for shareholders
2 Transaction unlocks ~$900M of NPV synergies for shareholders Net present value of identified synergies1 ~$900M Synergy types Benefits start Key levers Procurement, Logistics, and Other ▪ Combine energy, raw material and transportation sourcing Unlock opportunities across purchasing, <1 year ▪ Opti
Slide 7: Expected to be immediately EPS accretive with cash flow benefits
3 Expected to be immediately EPS accretive with cash flow benefits Benefits of the transaction Accretive on earnings per share and cash flow metrics, with further upside as synergies are realized Strong cash generation through the cycle expected to support deleveraging and shareholder returns Sustai
Slide 8: Attractive valuation near through-cycle levels
3 Attractive valuation near through-cycle levels Effective acquisition multiple compared to Alcoa’s historical EV/EBITDA Implied transaction valuation ($ in billions) Valuation in context Cash and stock consideration¹ $4.1 ▪ Effective acquisition multiple of 5.2 – 6.1x CY25 EBITDA, excluding synergi
Slide 9: Reinforces Alcoa as the investment of choice in aluminum
Reinforces Alcoa as the investment of choice in aluminum Transaction rationale 1 Represents a natural strategic fit Strengthens leadership as a 2 Unlocks significant value through synergies pure-play upstream aluminum company 3 Delivers compelling financial results 9
Slide 10: Appendix
Appendix $2 Alcoa
Slide 11: Disciplined capital allocation framework remains priority
Disciplined capital allocation framework remains priority Capital allocation framework Commentary Following the acquisition, Alcoa will maintain its current capital allocation framework to maximize value creation Maintain strong balance sheet through the cycle ▪ Strengthen the balance sheet / de-lev
Slide 12: Contingent value right terms
Contingent value right terms CVR terms per agreement Term Agreed commercial terms $3,500 (CY26) $2,825 (CY27) Aluminum strike price ($/mt) $2,847 (CY28) $2,870 (CY29) Term of CVR: 4 annual periods $2,942 (CY30) Commencement date: July 1, 2026 Aluminum revenue sharing 22.5% Payment cap structure: Tot
Slide 13: Alumina demand growth supports net long position
Alumina demand growth supports net long position Pro forma alumina long position, long-term SGA demand growth Alumina net long position1, Mmt Smelter Grade Alumina (SGA) demand, Mmt Production Internal Consumption Ex-China China Net long 8.6Mmt or 165 Net long 58% 144 5.2Mmt or 54% 88 87 14.8 +21Mmt
Slide 14: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation $ in millions 2025 Net income attributable to Alcoa $1,157 Add: Net loss attributable to noncontrolling interest (38) Benefit from income taxes (55) Other income, net (1,057) Interest expense 158 Restructuring and other charges, net 918 Impairment of goodwill 144 Depre
Slide 15: Glossary of terms
Glossary of terms Abbreviations listed in alphanumeric order Abbreviation Description % Percentage B Billion CRU CRU International Ltd. CVR Contingent Value Right CY Calendar year EBITDA Earnings before interest, taxes, depreciation and amortization EPS Earnings per common share Est. Estimated EV En
Slide 16: Cautionary Statement regarding Forward-Looking Statements
Cautionary Statement regarding Forward-Looking Statements This communication contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements incl
Slide 17: Important information
Important information impoundment structures, which could impact the environment or cause exposure to hazardous substances or other damage; (aa) dilution of the ownership position of the Company’s stockholders (including as a result of the proposed transaction), price volatility, and other impacts o
Slide 18: Important information
Important information Unless otherwise specified, all dollar amounts are in United States Dollar ($ USD). 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 i
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