Alcoa Corporation · NYSE:AA
Alcoa — Investor Day (November 2021)
94 slides from Alcoa's investor day presentation, Nov 8, 2021
Slide 1: Turning Raw Potential into Real Progress
Turning Raw Potential into Real Progress Investor Day NOVEMBER 2021 ROY HARVEY President and Chief Executive Officer v
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 Some of the information included in this presentation is derived from Alcoa Corporation’s consolidated financial information but is not presented in Alcoa Corporation’s financial statements prepared in accordance with accounting principles generally
Slide 4: Introduction
Introduction 4
Slide 5: Describing the journey and the path forward
Describing the journey and the path forward Investor Day agenda, November 2021 Topic Speaker Introduction Roy Harvey, President and Chief Executive Officer Who we are, what we have accomplished Roy Harvey, President and Chief Executive Officer Changing market dynamics Tim Reyes, Executive Vice Presi
Slide 6: Who we are, what we have accomplished
Who we are, what we have accomplished NOVEMBER 2021 ROY HARVEY President and Chief Executive Officer 6
Slide 7: A values-driven, purpose-focused, aluminum producer
A values-driven, purpose-focused, aluminum producer Defining elements that guide Alcoa actions Purpose: We exist to Turn Raw Potential Into Real Progress Vision: Our sustainable future is achieved by reinventing the aluminum industry Priorities: We will achieve our goals by acting on our three key s
Slide 8: Alcoa global operations by business segment
Alcoa global operations by business segment OUR VALUES Act with Integrity Iceland: Operate with Excellence Norway: Care for People Canada: Lead with Courage United States: Spain: Saudi Arabia: Guinea: Brazil: Australia: Bauxite Alumina Aluminum 8
Slide 9: Well positioned across three product segments
Well positioned across three product segments Alcoa portfolio cost curve position and key factors, 2021 Bauxite Alumina Aluminum 1st Quartile 1st Quartile 2nd Quartile ▪ World’s second largest bauxite ▪ Largest third-party alumina ▪ Driving for 1st quartile through miner with assets across four prod
Slide 10: Created a more sustainable aluminum value chain
Created a more sustainable aluminum value chain 3Q21 YTD product shipments by segment, launched SustanaTM products across the value chain Bauxite Alumina Aluminum 35.9 Mdmt shipments 10.5 Mmt shipments 2.3 Mmt shipments Third Party 11% Intersegment 30% Includes: Includes: Intersegment Third Party Th
Slide 11: Portfolio actions to improve Alcoa
Portfolio actions to improve Alcoa Portfolio actions timeline Closed two alumina refineries with Restarted or repowered two smelters, began restart of cost and bauxite supply challenges a third, in response to improved competitiveness Divested three smelters and Curtailed (fully or partially) two sm
Slide 12: Financial and strategic actions to improve Alcoa
Financial and strategic actions to improve Alcoa Financial and strategic actions timeline Contributed $1 billion of Issued $1.75 billion in debt; redeemed, prior to discretionary payments into U.S. maturity, $1.25 billion in higher interest rate debt pension funds and built prefunding balance in exc
Slide 13: Operational and commercial actions to improve Alcoa
Operational and commercial actions to improve Alcoa Operational and commercial actions timeline Streamlined administrative processes; Introduced, expanded, and sold implemented new operating model SustanaTM product offerings, the most comprehensive upstream aluminum line of Reinforced safety commitm
Slide 14: Future-oriented investments to improve Alcoa
Future-oriented investments to improve Alcoa Future-oriented investments timeline Created ELYSISTM, a Announced projects aimed Pursuing other developmental ground breaking joint at lowering our carbon projects to prosper from venture with Rio Tinto, footprint and sustainable economy trends focused o
Slide 15: We’ve built a strong company…
We’ve built a strong company… Achievements and acknowledgements timeline Recognized for our ESG Noteworthy capital allocation efforts across the globe targets met in 2021, ahead of target Production levels at or 2021 near record highs across all three segments 2020 ▪ Met capital allocation goals: •
Slide 16: …and fixed the balance sheet, announced capital returns
…and fixed the balance sheet, announced capital returns Balance sheet and return metrics, summary of authorized capital returns PROPORTIONAL ADJUSTED NET DEBT 1 , $B OTHER KEY METRICS AND CAPITAL RETURNS Net debt -35% OPEB Return on equity ▪ In October 2018: 0.69 0.45 Net pension +182% − Authorized
Slide 17: Alcoa values drive results; positioned for success
Alcoa values drive results; positioned for success Highlighting Alcoa accomplishments as a stand-alone entity ▪ Positioned to succeed in a Drive results and sustainable world OUR VALUES Leveraged industry-leading deliver returns to stockholders over Act with Integrity environmental and social standa
Slide 18: Changing market dynamics
Changing market dynamics NOVEMBER 2021 TIM REYES Executive Vice President and Chief Commercial Officer 18
Slide 19: Prices higher on solid demand, supply constraints
Prices higher on solid demand, supply constraints Aluminum and alumina price environment and market commentary 3Q21 Aluminum, alumina prices up Favorable markets, commercial position Aluminum Prices ($/tonne) Aluminum LME 3,112 704 4,000 800 ▪ Market: Continued strength in LME and regional premiums,
Slide 20: Aluminum
Aluminum 20
Slide 21: Primary balances: China turns to structural deficit
Primary balances: China turns to structural deficit Primary aluminum supply/consumption regional balance projections (pre-trade, Mmt) 0.4 0.2 ▪ China to remain net primary aluminum importer ▪ North America and Europe deficits to grow ▪ Supply growth in next 10 -0.8 years concentrated in Asia ex-Chin
Slide 22: Promising demand growth driven by megatrends
Promising demand growth driven by megatrends Drivers of aluminum demand Promising end market demand growth driven by green trends Transport, packaging, electrical to lead demand growth New energy vehicles use more aluminum than typical ICE vehicles1 2021-2030 global semis demand growth in Mmt (CAGR)
Slide 23: Inventories down after rising in 2020
Inventories down after rising in 2020 Estimate of period-end world primary aluminum inventories (Mmt) China Reported1 China Unreported Ex-China Reported Ex-China Unreported2 Days of Consumption 13.6 13.6 13.9 14 13.0 13.3 13.0 13.2 110 13 1.4 1.3 1.5 12.4 100 0.8 1.3 1.1 11.9 12 1.3 1.3 1.3 2.7 1.4
Slide 24: World in need of more aluminum, both primary and secondary
World in need of more aluminum, both primary and secondary Primary and secondary Supply side growth Project pipeline has potential supply growth required under pressure to be insufficient to 2030 Global aluminum semis China regulatory changes Smelter expansion by energy source, Mmtpa production, Mmt
Slide 25: Carbon costs will impact aluminum cost curve
Carbon costs will impact aluminum cost curve 2021 global primary aluminum cost curve with $50/mt CO2e price applied1 Primary aluminum: 2021 global cost curve $/mt aluminum 2021 cost curve Aluminum has accelerated pace towards “green” 3,500 2021 cost curve with $50/mt CO2e price1 − China: 3,000 • Ann
Slide 26: Well-positioned for low carbon aluminum demand growth
Well-positioned for low carbon aluminum demand growth Low-carbon primary aluminum 2021 supply by carbon intensity (Mmt), aluminum value chain emissions1 > 4.0 mt CO2e / mt Aluminum < 4.0 mt CO2e / mt Aluminum 38 Sustana family of products helps customers lower CO2 ▪ Less than 0.6 mt CO2e emissions (
Slide 27: Alumina
Alumina 27
Slide 28: Alumina balance: ex-China surplus outweighs China deficits
Alumina balance: ex-China surplus outweighs China deficits Supply/consumption regional balance projections (pre-trade, smelter grade alumina, Mmt) 4 ▪ China to remain net alumina importer ▪ Supply growth in next 10 2 years concentrated in Asia ex-China and Middle East, potential for growth in Africa
Slide 29: Alumina demand growth follows aluminum growth
Alumina demand growth follows aluminum growth Primary aluminum production and smelter grade alumina consumption, 2021 vs. 2030 projection Primary aluminum production, Mmt Smelter grade alumina consumption, Mmt World ex. China World ex. China +7 Mt +14 Mt 37 71 29 57 2021 2030 2021 2030 China China +
Slide 30: Sufficient global alumina capacity planned, but coal-fired
Sufficient global alumina capacity planned, but coal-fired API has been susceptible to supply side disruptions Growth to 2030 filled with capacity additions, dominated by coal-fired energy Platts FOB WA 600 Supply disruption 0 550 2 Additional projects needed $478/t, 500 Oct-21 avg. Gas 32 Coal 450
Slide 31: ESG factors also impact alumina cost curve
ESG factors also impact alumina cost curve 2021 global alumina cost curve with $50/mt CO2e price applied1 Alumina: 2021 Global Cost Curve $/mt alumina 600 2021 cost curve with $50/mt CO2e price1 Alumina cost curve impacted by ESG factors, including bauxite 2021 cost curve residue management and CO2e
Slide 32: Largest third-party alumina supplier, low carbon producer
Largest third-party alumina supplier, low carbon producer Largest alumina supplier to ex-China 3rd party market Lowest carbon emitting refinery system World ex-China 3rd party supply (Mmt), 2021 CO2e intensity (mt CO2e/mt alumina, Scope 1 + Scope 2 from mining to refining), 2021 26 Vinacomin 1 Alcoa
Slide 33: Bauxite
Bauxite 33
Slide 34: China reliance on bauxite imports to grow
China reliance on bauxite imports to grow Supply/consumption balance projections (pre-trade, seaborne + integrated, dry Mmt) 194 ▪ China imports heavily reliant on Guinea (~60 Mmt in 2021, ~130 Mmt 114 in 2030) ▪ Supply growth in next 10 years concentrated in Australia, Guinea and Southeast Asia 202
Slide 35: Modest long position in bauxite 3rd party supply
Modest long position in bauxite 3rd party supply Expected Alcoa/AWAC overall bauxite position by mine in 2021 (M dmt) Probable + Proven Reserves1 139 93 4 91 (M dmt) Alcoa/AWAC 3rd party supply Alcoa/AWAC inter-company supply 25.4 1.2 9.8 24.2 6.0 6.1 1.4 2.1 2.0 4.5 4.0 Willowdale Huntly Juruti MRN
Slide 36: Operating imperatives
Operating imperatives NOVEMBER 2021 JOHN SLAVEN Executive Vice President and Chief Operations Officer 3366
Slide 37: Relentless focus on fatality prevention
Relentless focus on fatality prevention ▪ Fatality Risk Management – Core program focused on the implementation of effective critical controls. Our leaders conduct more than 25,000 1 critical control field verifications per month. ▪ Our workforce is engaged in applying Human FATALI TI E S 1 Performa
Slide 38: Operations focus: Deliver today and improve tomorrow
Operations focus: Deliver today and improve tomorrow Delivering the Strengthening our Management Building capabilities operations plan Operating System for the future ▪ Zero Fatalities or Serious Injuries ▪ Enhance operational stability ▪ Increase resource knowledge ▪ Compliance with license conditi
Slide 39: Alcoa refineries consistently creep beyond nameplate capacity
Alcoa refineries consistently creep beyond nameplate capacity Production vs. nameplate capacity 25% 20% 15% 10% 5% 0% Alcoa refineries creep on -5% average 1.5% year on year -10% -15% -20% -25% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Industry peers 1 Alcoa 2 1. Industry peers data fro
Slide 40: Alcoa Business System (ABS) is our Management Operating System
Alcoa Business System (ABS) is our Management Operating System PLAN Customer Location Location ADJUST Needs, Corporate Strategic Improvement Requirements Plans Roadmaps Actions to Improve System DO ▪ Location Daily Management IMPROVEMENT CHECK ▪ People Development PROCESS Review of System ▪ Process
Slide 41: Global Centers of Excellence are our key differentiator
Global Centers of Excellence are our key differentiator Line Leadership and COEs working in partnership to deliver safe, clean, productive tonnes EXECUTION CENTERS OF EXCELLENCE (COEs) Continuous Performance Australia Brazil 1 Europe & North America EHSS&R 2 Asset Management Improvement Management E
Slide 42: Industry-leading technical development
Industry-leading technical development Smelting Advanced pot modelling Mining for performance Bauxite optimization and improved beneficiation – design upgrading ore processability and expanding reserves Casting Refining New alloys including heat Proprietary on-line treatment free alloys for sensors
Slide 43: Creeping capacity through innovative process enhancements
Creeping capacity through innovative process enhancements Capacity creep examples WagerupRefinery Wagerup Refinery DeschambaultSmelter Deschambault Smelter ▪ Process yield technology ▪ Pot design and technology ▪ Digestion extraction technology ▪ Operational and process best practices ▪ Process mode
Slide 44: Increasing production volumes across all segments
Increasing production volumes across all segments Half-yearly production, 1H17 – 1H21 Average daily production +6% 1 ▪ Bauxite segment continuously Bauxite 109 109 106 111 111 114 112 113 115 increasing production, creeping (kdmt) wholly-owned assets +4% ▪ Alumina continuing production at or Alumina
Slide 45: Progressive, biodiverse mine rehabilitation
Progressive, biodiverse mine rehabilitation Ratio Of Clearing To Mine Rehabilitation Area 1.2 1.0 0.8 92.8% RATIO 0.6 0.4 Average botanical 0.2 species richness in 0.0 Jarrah Forest mine restoration for the last 20 years PERIOD Planned increases in rehabilitation rates at our operating Bauxite mines
Slide 46: Strengthening social performance management plans
Strengthening social performance management plans Alcoa’s Social Management System is made up of 4 Standards mapped to the SDGs1 MONITOR, REVIEW, REPORT ▪ Alcoa’s Social Management System is a sum of four standards: 1. Social Performance Management Standard 2. Indigenous and Land Connected Peoples S
Slide 47: Alcoa committed to full compliance with GISTM
Alcoa committed to full compliance with GISTM1 GISTM strives to achieve zero harm to people and the environment. This Standard aims to prevent catastrophic failure and enhance the safety of all mine tailings facilities using an integrated and multidisciplined approach. Alcoa is committed to conforma
Slide 48: Productivity program to offset cost challenges
Productivity program to offset cost challenges Underlying cost increases Cyclical cost increases All facilities: Labor inflation Mining: Longer haul and higher strip ratios All facilities: Increasing stakeholder Refining: Periodic major maintenance expectations Smelting: Higher number of pot relines
Slide 49: Alcoa Operations – in summary
Alcoa Operations – in summary Creating value for our stockholders ▪ Across 19 locations, we operate some of the best assets in the world. ▪ We are amongst the top operators in the industry for mining, refining, smelting and casting. ▪ The Alcoa Business System drives our diligence in planning, execu
Slide 50: Growth opportunities
Growth opportunities NOVEMBER 2021 TIM REYES Executive Vice President and Chief Commercial Officer 50
Slide 51: Aluminum
Aluminum 51
Slide 52: Low-cost, renewable energy key to maintain competitiveness
Low-cost, renewable energy key to maintain competitiveness Smelter cost curve and technology by region 2021 Smelter Smelting potlines Primary aluminum: operating cost1 ($/mt) by technology (Mmt) 2021 global cost curve 36.4 Between $/mt aluminum 2,600 1% 1980-2000, 2,400 ~14 MWh/mt Al 3,500 2,200 27%
Slide 53: Aluminum: creep, restarts & breakthrough technology
Aluminum: creep, restarts & breakthrough technology Aluminum growth program Growth from creep and restarts A breakthrough aluminum all supported by renewable energy smelting technology (20%+ production by 2030 vs. 2020) 400-450 ▪ Existing footprint Creep & ▪ Low capital intensity other restart ▪ Att
Slide 54: Alumina
Alumina 54
Slide 55: Alcoa leads industry as a low carbon alumina producer
Alcoa leads industry as a low carbon alumina producer 2021 alumina production and carbon intensity 2021 Alumina cost and price ($/mt) 2021 Alumina CO2e intensity (mt CO2e/mt alumina, Scope 1 + Scope 2, from mining to refining) Tonnes 359 3.0 316 290 2.5 Only producer to offer low carbon product (Eco
Slide 56: Opportunities provide optionality to grow in alumina
Opportunities provide optionality to grow in alumina Alumina growth opportunities Conditions Growth in Brazil and Australia could deliver To Grow 15%+ Alcoa production growth by 2030 vs. 2020 2.1 Expansion and creep: Creep ▪ Growth in existing assets is low risk Capital and cost advantages arising ▪
Slide 57: Entering the growing high-purity alumina market
Entering the growing high-purity alumina market Description of HPA joint development project High Purity Alumina (HPA) Phases of development ▪ 65% interest in joint development project with FYI Stage 1 Stage 2 Stage 3 Resources ▪ Alcoa of Australia ▪ Demonstration ▪ Start of ▪ Deal structure provide
Slide 58: Bauxite
Bauxite 58
Slide 59: Asia to drive growth in bauxite consumption
Asia to drive growth in bauxite consumption Bauxite regional consumption projections (seaborne + integrated, dry Mmt) +26.4 Growth regions +31.5 0.0 223.7 197.3 204.0 9.3 9.3 172.5 Russia +0.2 -1.3 2021 2030 World China ex-China 3% 2% 7.6 7.8 19.5 18.2 North America Europe Share of total 2021 2030 2
Slide 60: Global bauxite reserves support demand for growth
Global bauxite reserves support demand for growth 2020 global bauxite reserves (billions of metric tonnes) and Alcoa mines worldwide Global Reserves: 30 billion mt Resources: 55-75 billion mt 5Mmtpa+ potential growth in regions that value responsible mining and where Alcoa can leverage its social li
Slide 61: All growth contributes to Alcoa goals
All growth contributes to Alcoa goals Capital allocation framework, growth opportunities and goals Capital allocation framework Growth opportunities Alcoa goals Maintain strong balance sheet through the cycle ▪ Generate strong Capital expenditures to sustain returns throughout existing operations Ne
Slide 62: Breakthrough technologies
Breakthrough technologies NOVEMBER 2021 BEN KAHRS Executive Vice President and Chief Innovation Officer 62
Slide 63: Technology portfolio supports growth and sustainability
Technology portfolio supports growth and sustainability Technology discussion summary Alcoa’s Technology portfolio addresses 3 key needs Technologies suitable for retrofit and growth opportunities ELYSISTM – joint venture for inert anode technology 1. Create structural advantages in key that elimina
Slide 64: Energy source is the leading driver for carbon intensity
Energy source is the leading driver for carbon intensity Scope 1&2 carbon emissions for aluminum smelting and alumina refining 2020 Global Smelting Emissions Curve 20 (mt CO 2 e / mt aluminum) Renewables ▪ Pre-2010 capacity: 9.5 mt CO2e / mt aluminum Gas ▪ Post-2010 capacity: 13.3 mt CO2e / mt alumi
Slide 65: 1.5 Degree scenario requires emission reduction of 97%
1.5 Degree scenario requires emission reduction of 97% Industry volume and emissions projections based on IAI study IAI projected global supply for 1.5-degree scenario, Mmt ▪ International Energy Agency (IEA) defining industry- 144 149 137 specific targets 126 15 14 13 Industrial scrap 114 15 ▪ Inte
Slide 66: R&D program focused on upstream aluminum value chain
R&D program focused on upstream aluminum value chain Technology solutions roadmap for Alcoa system Alcoa’s Refinery of the ELYSISTM inert- ASTRAEATM Alcoa will partner with Future project provides anode solution technology customers to provide INNO V AT IO N S solutions for all direct eliminates all
Slide 67: ELYSIS provides both a retrofit and growth opportunity
ELYSISTM provides both a retrofit and growth opportunity Summary of ELYSIS technology value What is ELYSIS? BENEFIT RETROFIT GROWTH Largest R&D program for Alcoa Environmental Complete elimination of direct smelting CO2 benefit and fossil fuel related emissions Joint venture between Alcoa, Rio Tinto
Slide 68: Refinery of the Future - sustainable alumina production
Refinery of the Future - sustainable alumina production Summary of Refinery of the Future program Renewable MVR Grid Program aspirations Key Elements R&D programs addressing both Mechanical vapor recompression (MVR) sustainability improvements and growth • Replacement for traditional steam-driven St
Slide 69: Reinventing recycling: creating high purity aluminum from scrap
Reinventing recycling: creating high purity aluminum from scrap Summary of ASTRAEATM technology and competing processes Proprietary process purifying any 4N molten scrap to ~P0101 quality Super-purity 99.99%-99.9998 P0101 Target raw material: Zorba – auto shred aluminum scrap P0202 • Current 1.3 Mmt
Slide 70: R&D program focused on key decarbonization levers
R&D program focused on key decarbonization levers Closing summary R&D INVESTMENT SCHEDULE, $M 2O21 2O22 2O23 Key R&D programs Each project will have a ELYSIS support both growth customized stage-gate ~20 ~50 ~10 (Equity1) and sustainability process aimed at balancing programs risk and time to market
Slide 71: Capital allocation and governance
Capital allocation and governance NOVEMBER 2021 WILLIAM OPLINGER Executive Vice President and Chief Financial Officer 71
Slide 72: Alcoa formed in 2016 with strong governance profile
Alcoa formed in 2016 with strong governance profile Key governance elements Annually elected 10 member Board of Directors (9 independent) Non-executive Board Chairman (separate roles of Chairman and CEO) Stockholders holding 25% of shares have right to call special meeting Proxy access for Director
Slide 73: Former capital allocation framework
Former capital allocation framework Capital allocation framework and considerations, as of October 2021 ▪ $1 billion target for minimum cash balance; Maintain liquidity throughout the cycle $1.4 billion at September 30, 2021 Capital expenditures to sustain ▪ Sustaining capital expenditures of ~$375
Slide 74: Refreshed capital allocation framework
Refreshed capital allocation framework Capital allocation framework and considerations, as of November 2021 Strong balance sheet: Maintain strong balance sheet through the cycle • Keep cash balance and net debt at comfortable levels • Redeemed 2026 notes ($500 million) on September 30, 2021 Capital
Slide 75: Paid down debt while balancing target cash
Paid down debt while balancing target cash Annual net debt overview since 2016 separation Components of proportional adj. net debt, $B Components of consolidated net debt, $B -54% 3.75 3.77 0.30 3.5 3.42 3.5 0.69 3.35 3.25 3.0 3.0 1.19 1.08 0.95 1.06 2.54 2.5 1.26 2.5 2.0 2.0 0.83 0.87 1.80 1.80 1.8
Slide 76: Open debt profile, reduced pension cash requirements
Open debt profile, reduced pension cash requirements Debt maturity outlook to 2029; pension funding expectations through 2025 Cash balance and maturity profile, $M Estimated global pension/OPEB funding, $M 640 1,500 (617 YTD 9/30/21) 1,452 750 500 500 71 64 58 57 78 3Q21 2021 2022 2023 2024 2025 202
Slide 77: Increased capital spending expected in next three years
Increased capital spending expected in next three years Capital expenditure expectations, 2021-2024, excluding innovation projects Expected future capital expenditures, $M1 Major innovation development ~650 ~650 projects not included ~100 ~100 ~525 Return-seeking examples ELYSIS™ carbon free smeltin
Slide 78: Optionality of key innovation project cash flows…
Optionality of key innovation project cash flows… Key decision points and expected funding levels for major innovation projects, $M Conditional investment 2022 2023 2024 2025 2026+ As ELYSIS owner, 150-200 in 2024-2025 for customer raw ELYSIS carbon free ~50 ~10 materials production facility and eng
Slide 79: Non-core asset sales exceed portfolio action cash outlays
Non-core asset sales exceed portfolio action cash outlays Portfolio actions and expected cash impacts FY17 – current Portfolio action cash outlays 2017 – current, $M Cash impacts of portfolio actions 2017- current, $M Cash 1,140 Action Asset Timing Outlay 34 Other misc. sales ($M) 95 Eastalco Fix Wa
Slide 80: An even stronger, more sustainable aluminum producer
An even stronger, more sustainable aluminum producer Update on key strategic actions announced in October 2019 Key strategic actions that met target Progressing well on portfolio review New operating model – met target Portfolio review – on target Created a leaner, more integrated, operator-centric
Slide 81: More capital returns to stockholders authorized
More capital returns to stockholders authorized Actions taken to return cash to our stockholders 2016 2017 2018 2019 2020 2021 Share repurchase program Share repurchase & quarterly dividend Share repurchase program Share repurchase and quarterly authorized in 3Q18 dividend authorized October 2021 Au
Slide 82: Where we are going
Where we are going NOVEMBER 2021 ROY HARVEY President and Chief Executive Officer 82
Slide 83: Strong, focused, and ready for tomorrow
Strong, focused, and ready for tomorrow Key elements defining today’s Alcoa Values – simple guide to all our actions, especially our safety culture Operations – excellence in all segments, setting production records Financial – balance sheet strengthened and cash flowing Portfolio – fix/curtail/clos
Slide 84: Lightweight, recyclable aluminum is metal for the future
Lightweight, recyclable aluminum is metal for the future 100% 1/3 Aluminum Aluminum is 1/3 is infinitely the weight of steel, recyclable meaning parts can be made thicker and stronger while reducing weight 90% Recycling aluminum saves more than 90% of the energy needed 44 Aluminum in autos to make n
Slide 85: Companies responsibly producing aluminum poised to benefit
Companies responsibly producing aluminum poised to benefit Factors that are expected to improve aluminum demand and constrain supply Aluminum is a • Aluminum demand expected to continue to grow as its strength, light weight, corrosion resistance, and solution for a more conductivity outshine competi
Slide 86: Alcoa uniquely positioned as aluminum decarbonizes
Alcoa uniquely positioned as aluminum decarbonizes Required for net zero How Alcoa fits those aluminum industry requirements More renewable energy sources Already 78% Operating lowest across all phases of production renewable energy carbon emission (electricity decarbonization) powering smelters int
Slide 87: Alcoa uniquely positioned as aluminum decarbonizes
Alcoa uniquely positioned as aluminum decarbonizes Required for net zero How Alcoa fits those aluminum industry requirements Decarbonized smelting and refining Already one Developing breakthrough process (direct emissions potential) of the lowest technologies to decarbonize scope 1 and smelting (ELY
Slide 88: Alcoa uniquely positioned as aluminum decarbonizes
Alcoa uniquely positioned as aluminum decarbonizes Required for net zero How Alcoa fits those aluminum industry requirements More recycled aluminum as Reinventing recycling: developing percentage of total aluminum demand ASTRAEATM technology that creates high (recycling and resource efficiency) puri
Slide 89: Alcoa uniquely positioned as aluminum decarbonizes
Alcoa uniquely positioned as aluminum decarbonizes Required for net zero How Alcoa fits those aluminum industry requirements Stakeholders demanding Recognized for environmental and social performance responsibly produced aluminum excellence, providing value to our communities Selling Sustana low car
Slide 90: Alcoa is ready
Alcoa is ready The world is decarbonizing, and aluminum is part of the solution Alcoa is already well positioned to prosper in a decarbonizing world that demands more aluminum, constrains carbon-based energy and Alcoa has a 135-year history of rewards aluminum producers already low on aluminum techn
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Slide 92: Appendix
$e Alcoa Appendix
Slide 93: Net debt reconciliation
Net debt reconciliation FY16 FY17 FY18 FY19 FY20 3Q21 Alcoa Alcoa Alcoa Alcoa Alcoa Alcoa Cons. NCI Cons. NCI Cons. NCI Cons. NCI Cons. NCI Cons. NCI $M Prop. Prop. Prop. Prop. Prop. Prop. Short-term $1 $- $1 $8 $- $8 $- $- $- $- $- $- $77 $31 $46 $77 $31 $46 borrowings Long-term debt due 21 - 21 16
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