Slide 1: Investor Presentation
Investor Presentation December 2024 OUR VALUES Act with Integrity Operate with Excellence Care for People Lead with Courage 1
Slide 2: Cautionary Statement regarding Forward-Looking Statements
Cautionary Statement regarding Forward-Looking Statements This presentation 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 inclu
Slide 3: Important information
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 thes
Slide 4: Alumina acquisition closed; Ma'aden transaction announced
Alumina acquisition closed; Ma’aden transaction announced Benefits of transactions Completed Alumina acquisition Announced sale of 25.1% stake in Ma’aden JVs Already realizing benefits Consistent with strategy to simplify our portfolio ▪ Increased exposure to alumina market ▪ Sell for approximately
Slide 5: An upstream aluminum company built to perform in all cycles
An upstream aluminum company built to perform in all cycles Global operations and summary of business segments Global operations by product Business segments ▪ First quartile of bauxite and alumina cost curves2 ▪ 30.8 Mdmt bauxite and 9.7 Mmt alumina shipments, YTD 3Q24 ▪ 87% of bauxite shipments to
Slide 6: Significant alumina market exposure
Significant alumina market exposure Additional upstream economic exposure ECONOMIC EXPOSURE TO ALUMINA MARKET1 Alumina production for sale to third parties ▪ Post-acquisition of Alumina Limited, Alcoa has greater economic Alumina production consumed internally exposure; leveraging our 1st quartile b
Slide 7: Action-packed year; maintaining the momentum
Action-packed year; maintaining the momentum 3Q24 Summary Third quarter summary ▪ No Fatal or Serious Injuries (FSIAs); safety program focused on critical risks ▪ Completed Alumina Limited acquisition ▪ Benefited from increased alumina exposure ▪ Announced sale of 25.1% stake in Ma’aden JVs Going fo
Slide 8: Additional business considerations – Revised December 2024
Additional business considerations – Revised December 2024 Items expected to impact Adjusted EBITDA and Adjusted net income for 4Q24 Expected sequential impacts on Adjusted EBITDA excluding special items, excluding indexed sales prices and currency impacts: ▪ In the Alumina segment, we expect net un
Slide 9: Appendix
Appendix 9
Slide 10: Offering a variety of value add aluminum products and P1020
Offering a variety of value add aluminum products and P1020 Aluminum segment product offerings and end markets examples 10
Slide 11: Technology roadmap addresses upstream aluminum value chain
Technology roadmap addresses upstream aluminum value chain Long-term technology projects under development for Alcoa system Alcoa’s Refinery of the ELYSIS inert-anode ASTRAEATM Future project targets technology technology Alcoa plans to partner elimination of direct refinery eliminates Scope 1 focus
Slide 12: Alcoa 2023 progress on sustainability goals
Alcoa 2023 progress on sustainability goals Alcoa strategic long-term sustainability goals, baseline and progress Goal Description 2015 Baseline 2023 Progress Zero fatalities and serious injuries (life-threatening or life-altering 5 fatal or serious 0 fatalities and 2 serious Health and Safety injur
Slide 13: Alcoa's global external energy sources
Alcoa’s global external energy sources Overview of external energy sources for our smelters and refineries ▪ Alcoa has ownership in certain hydroelectricity assets and also relies on third parties for the supply of energy through contracts that vary in length and market exposure ✓ Alcoa’s EcoLumTM s
Slide 14: 3Q24 Financial and other information as presented on October 16, 2024
3Q24 Financial and other information as presented on October 16, 2024 v 14
Slide 15: Maintaining fast pace of execution
Maintaining fast pace of execution 3Q24 Update ▪ 3Q safety performance remains positive with improving trends on key indicators ▪ Completed Alumina Limited acquisition ▪ Announced agreement to sell 25.1% stake in Ma’aden joint ventures ▪ Announced an extension of a long term alumina supply contract
Slide 16: Improvement across most key financial metrics
Improvement across most key financial metrics Quarterly income statement summary 2Q24 3Q24 Change Third party realized prices ($/mt) Realized primary aluminum price $2,858 $2,877 $19 Realized alumina price $399 $485 $86 Income statement highlights (millions, except per share amounts) Revenue $2,906
Slide 17: EBITDA improves on robust API
EBITDA improves on robust API 3Q24 Sequential changes in Adjusted EBITDA excluding special items, $M 15 455 10 16 6 0 15 113 2Q24 3Q24 Change 325 Alumina1 $186 $367 $181 (11) Aluminum1 233 180 (53) (34) Transformation (16) (14) 2 Intersegment (29) (38) (9) eliminations Other corporate (49) (40) 9 To
Slide 18: Generating YTD cash on market and profitability actions
Generating YTD cash on market and profitability actions Cash flow information and progress on profitability program, $M 3Q24 YTD Cash flow information Profitability improvement program 645 1,632 16 Remaining to Net NCI contributions 120 attain 4Q24-2025 Kwinana curtailment 20 1,263 60 15 Other Aluma
Slide 19: YTD Return on equity swings to positive
YTD Return on equity swings to positive Key financial metrics and cash flow information, 3Q24 and YTD Key financial metrics 3Q24 Commentary 3Q24 Days ▪ Working capital increased mainly due to 2024 YTD Return on equity working capital timing of shipments 0.6% 45 Days ▪ Absence of NCI distribution imp
Slide 20: 2024 Outlook
2024 Outlook FY24 Key metrics as of September 30, 2024 Income statement excl. special items impacts Cash flow impacts 3Q24 YTD Actual FY24 Outlook 3Q24 YTD Actual FY24 Outlook Alumina production (Mmt) 7.6 9.8 – 10.0 Pension / OPEB cash funding $53M ~ $70M Alumina shipments (Mmt) 9.7 12.9 – 13.1 Stoc
Slide 21: Alumina supply remains tight; aluminum market steady
Alumina supply remains tight; aluminum market steady Recent alumina and aluminum index price history, market dynamics and outlook Platts FOB WA Alumina, $/t Alumina market 650 620 ▪ Various supply disruptions and Kwinana curtailment in 2024 600 550 ▪ Supply growth in 2025 reliant on schedule of proj
Slide 22: Alcoa and IGNIS Group: Partnering for San Ciprián's future
Alcoa and IGNIS Group: Partnering for San Ciprián’s future Progressing strategic cooperation agreement ▪ Sale process completed with no viable offer ▪ Progressing 75% / 25% equity ownership with IGNIS Equity Holdings1, a Spanish renewable energy investment group ▪ Agreement conditioned on critical r
Slide 23: Progressing through approvals in Western Australia
Progressing through approvals in Western Australia Alcoa commitment and operations in a premier region of the aluminum industry EPA’s Indicative Assessment Process ▪ Progressing approvals for the next Western Australian mine regions (Myara North and Holyoake) ▪ Process started in 2020 and focused on
Slide 24: At steady state, well positioned across three product groups
At steady state, well positioned across three product groups Alcoa portfolio cost curve position and key factors, 2024 Bauxite Alumina Aluminum 1st Quartile 1st Quartile1 2nd Quartile ▪ World’s second largest bauxite ▪ Largest third-party alumina ▪ Low CO2e intensity producer, miner with assets acro
Slide 25: Maximizing value creation through balanced uses of cash
Maximizing value creation through balanced uses of cash Capital allocation framework and value creation considerations Capital allocation framework Maximize value creation Return cash to stockholders Maintain strong balance sheet ▪ 3Q24 dividend payments totaled $26 million through the cycle Transfo
Slide 26: Quarterly income statement
Quarterly income statement Quarterly income statement for 3Q23, 2Q24 and 3Q24 Prior Year Sequential Millions, except realized prices and per share amounts 3Q23 2Q24 3Q24 Change Change Realized primary aluminum price ($/mt) $2,647 $2,858 $2,877 $230 $19 Realized alumina price ($/mt) $354 $399 $485 $1
Slide 27: Special items
Special items Breakdown of special items by income statement classification – gross basis Millions, except per share amounts 3Q23 2Q24 3Q24 Description of significant 3Q24 special items Net (loss) income attributable to Alcoa Corporation $(168) $20 $90 (Loss) earnings per common share1 $(0.94) $0.11
Slide 28: Quarterly income statement excluding special items
Quarterly income statement excluding special items Quarterly income statement excluding special items for 3Q23, 2Q24 and 3Q24 Prior Year Sequential Millions, except realized prices and per share amounts 3Q23 2Q24 3Q24 Change Change Realized primary aluminum price ($/mt) $2,647 $2,858 $2,877 $230 $19
Slide 29: 3Q24 Financial summary
3Q24 Financial summary Three months ending September 30, 2024, excluding special items Intersegment Other Alcoa Millions Alumina Aluminum4 Transformation eliminations corporate Corporation Total revenue $1,661 $1,807 $6 $(576) $6 $2,904 Third-party revenue $1,096 $1,802 $3 - $3 $2,904 Adjusted EBITD
Slide 30: 3Q24 Segment Adjusted EBITDA drivers
3Q24 Segment Adjusted EBITDA drivers Segment Adjusted EBITDA sequential changes, $M Segment Segment Adjusted Adjusted EBITDA Metal Raw Production EBITDA 2Q24 Currency prices API materials Energy Price/mix Volume costs Other 3Q24 Alumina $186 (20) 0 219 (4) (3) 11 9 (18) (13) $367 Aluminum $233 6 (34
Slide 31: Aluminum value chain
Aluminum value chain 2024 YTD Alcoa shipments by product type Bauxite Alumina Aluminum 30.8 Mdmt shipments 9.7 Mmt shipments 1.9 Mmt shipments Third party Intersegment 0% 13% Intersegment 31% 69% 87% Third party 100% Intrasegment Third party 31
Slide 32: Composition of alumina and aluminum production costs
Composition of alumina and aluminum production costs Alcoa 3Q24 production cash costs Alumina refining Input Inventory Pricing FY24 annual cost Bauxite cost flow convention sensitivity Conversion 27% 33% Caustic soda 5 - 6 Months Quarterly, Spot $9M per $10/dmt Quarterly, 91% with Natural gas 1 Mont
Slide 33: 2024 Business information
2024 Business information Estimated annual Segment Adjusted EBITDA sensitivities $Millions AUD BRL CAD EUR ISK NOK LME API Midwest Europe Japan + 0.01 + 0.10 + 0.01 + 0.01 + 10 + 0.10 Segment + $100/mt + $10/mt + $100/mt + $100/mt + $100/mt 0.671 5.551 1.361 1.101 137.651 10.711 Alumina 86 (16) 7 (1
Slide 34: Currency impacts on Segment Adjusted EBITDA
Currency impacts on Segment Adjusted EBITDA Currency balance sheet revaluation and EBITDA sensitivities impact ($M, except currencies) AUD BRL CAD EUR ISK NOK Total 09/30/24 currencies 0.69 5.44 1.35 1.12 134.99 10.55 3Q24 currency average 0.67 5.55 1.36 1.10 137.65 10.71 3Q24 Balance sheet revaluat
Slide 35: Additional business considerations
Additional business considerations Items expected to impact Adjusted EBITDA and Adjusted net income for 4Q24 Expected sequential impacts on Adjusted EBITDA excluding special items, excluding indexed sales prices or currency impacts: ▪ In the Alumina segment, we expect favorable performance of approx
Slide 36: Investments summary
Investments summary Investments listing and income statement location Ownership Carrying value as of Income statement location of Investee Country Nature of investment4 interest September 30, 2024 equity earnings ELYSIS Limited Partnership Canada Aluminum smelting technology 48.235% Ma’aden Aluminiu
Slide 37: Production and capacity information
Production and capacity information Alcoa Corporation annual consolidated amounts as of September 30, 2024 Alumina refining, kmt Aluminum smelting, kmt Facility Country Capacity Curtailed Facility Country Capacity Curtailed Kwinana Australia 2,190 2,190 Portland Australia 197 35 Pinjarra Australia 4
Slide 38: Adjusted EBITDA reconciliations
Adjusted EBITDA reconciliations Millions 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 Net (loss) income attributable to Alcoa $(168) $(150) $(651) $(252) $20 $90 Add: Net (loss) income attributable to noncontrolling interest (25) (77) (122) (55) 11 8 Provision for (benefit from) income taxes (35) 150 189 (18) 61 8
Slide 39: Free cash flow reconciliation
Free cash flow reconciliation Millions 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 Cash provided from operations $69 $198 $91 $(223) $287 $143 Capital expenditures (145) (188) (531) (101) (164) (146) Free cash flow (76) 10 (440) (324) 123 (3) Contributions from noncontrolling interest 42 24 188 61 4 0 Distributio
Slide 40: Net debt reconciliations
Net debt reconciliations 3Q23 2Q24 3Q24 Alcoa Alcoa Alcoa $M Cons. NCI Prop. Cons. NCI Prop. Cons. NCI Prop. Short-term borrowings $42 $- $42 $31 $- $31 $12 $- $12 Long-term debt due within one year 1 - 1 79 31 48 464 - 464 Long-term debt, less amount due within one year 1,809 32 1,777 2,469 - 2,469
Slide 41: DWC working capital and Days working capital reconciliations
DWC working capital and Days working capital reconciliations Millions 3Q23 4Q23 1Q24 2Q24 3Q24 Receivables from customers $691 $656 $869 $939 $862 Add: Inventories 2,190 2,158 2,048 1,975 2,096 Less: Accounts payable, trade 1,472 1,714 1,586 1,619 1,544 DWC working capital $1,409 $1,100 $1,331 $1,29
Slide 42: Annualized Return on Equity (ROE)
Annualized Return on Equity (ROE) ROE Reconciliation and calculation information as of September 30, 2024 Millions 2023 YTD 2024 YTD (Net Loss/Income Attributable to Alcoa + Special Items1) Numerator: ROE % = X 100 Net loss attributable to Alcoa Corporation $(501) $(142) (Total Assets – Total Liabil
Slide 43: Glossary of terms
Glossary of terms Abbreviations listed in alphanumeric order Abbreviation Description Abbreviation Description % pts Percentage points FOB WA Freight on board Western Australia 1H## Six months ending June 30 FY## Twelve months ending December 31 1Q## Three months ending March 31 GAAP Accounting prin
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