Alcoa Corporation · NYSE:AA
Alcoa — J.P. Morgan 2025 Industrials Conference
45 slides from Alcoa's conference presentation, Mar 12, 2025
Slide 1: Investor Presentation March 2025
Investor Presentation March 2025 OUR VALUES Act with Integrity Operate with Excellence Care for People v 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: Upstream aluminum company built to perform throughout the cycles
Upstream aluminum company built to perform throughout the cycles Global operations and summary of business segments Global operations by product Business segments ▪ First quartile of bauxite and alumina cost curves2 ▪ 41.3 Mdmt bauxite and 13.2 Mmt alumina shipments, FY24 ▪ 85% of bauxite shipments
Slide 5: Maintaining fast pace of execution in 2025
Maintaining fast pace of execution in 2025 Key areas of focus for 2025 Safe operations correlate to stability, productivity and continuous improvement Positive safety Continuous pursuit of Embed high performance Australian stakeholder performance operational excellence culture engagement Made strong
Slide 6: Alumina price at all-time high in 4Q24; strong aluminum fundamentals
Alumina price at all-time high in 4Q24; strong aluminum fundamentals Recent alumina and aluminum index price history, market dynamics and outlook Platts FOB WA Alumina, $/t Alumina 900 ▪ Current market 800 ▪ Market tightness mainly due to lower than expected supply 700 ▪ In China, alumina stocks at
Slide 7: Well-positioned to respond to shifts in global market dynamics
Well-positioned to respond to shifts in global market dynamics Alcoa’s competitive advantages make it a premier aluminum supplier Security of supply to customers is key in dynamic markets Alcoa benefits from Security of its positioning: 1. supply Fjarðaál Mosjøen Vertical integration Lista from mine
Slide 8: U.S. imports 4.4Mmt of primary aluminum; limited U.S. idled capacity
U.S. imports 4.4Mmt1 of primary aluminum; limited U.S. idled capacity U.S. primary aluminum imports by country of origin (2023 full-year actuals, Mmt) 2.8 Canada 0.8 Middle East 0.1 U.S. primary aluminum balance India 4.5 4.4 0.8 0.7 0.2 0.2 Australasia Apparent Production Exports2 Imports2 Consumpt
Slide 9: Maximizing value creation through balanced use of cash
Maximizing value creation through balanced use of cash Capital allocation framework and value creation considerations Capital allocation framework Maximize value creation Return cash to stockholders Maintain strong balance sheet ▪ 4Q24 dividend payments totaled $27 million through the cycle Transfor
Slide 10: Appendix
Appendix 10
Slide 11: 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 11
Slide 12: Full product suite with carbon advantages, recycled content
Full product suite with carbon advantages, recycled content Summary of Sustana® products and position on carbon emissions curves Alcoa Sustana product line Metric tons of CO2e/mt, by product 8 Alumina ▪ Alumina products from a refinery portfolio with average emissions intensity below 0.6 tonne CO2e
Slide 13: 4Q24 Financial and other information as presented on January 22, 2025
4Q24 Financial and other information as presented on January 22, 2025 v 13
Slide 14: 2024: A successful year for Alcoa
2024: A successful year for Alcoa Highlighting notable 2024 actions Operations Commercial Cost Structure Capital Allocation • Improved key safety metrics • Alumina: extension of Alba • Delivered $645M profitability • Completed Alumina Limited long-term supply contract; improvement program acquisitio
Slide 15: Improvement across all key financial metrics
Improvement across all key financial metrics Quarterly income statement summary 3Q24 4Q24 FY23 FY24 Third party realized prices ($/mt) Realized primary aluminum price $2,877 $3,006 $2,828 $2,841 Realized alumina price $485 $636 $358 $472 Income statement highlights (millions, except per share amount
Slide 16: EBITDA improves with higher prices
EBITDA improves with higher prices 4Q24 Sequential changes in Adjusted EBITDA excluding special items, $M 50 4 10 124 (10) (28) 677 (75) 3Q24 4Q24 Change 88 Alumina1 $367 $716 $349 59 455 Aluminum1 180 194 14 Transformation (14) (18) (4) Intersegment (38) (156) (118) eliminations Other corporate (40
Slide 17: Market and profitability actions generated cash; began de-levering
Market and profitability actions generated cash; began de-levering Quarter cash bridge and FY24 Cash flow information, $M 9/30/24 to 12/31/24 Cash balance changes FY24 Cash flow information 1,958 Net NCI contributions 16 677 1,764 Net additions to debt 353 126 Other 90 Cash dividends 20 137 Interest
Slide 18: Exceeded target for profitability initiatives
Exceeded target for profitability initiatives Achievement on profitability program, $M Profitability improvement program Commentary 675 645 Kwinana curtailment 70 45 ▪ Deployed profitability improvement 105 program successfully ahead of Alumar smelter restart 75 schedule 60 Warrick optimization and
Slide 19: Strong key metrics at year end 2024
Strong key metrics at year end 2024 Key financial metrics and cash flow information, 4Q24 and FY24 Key financial metrics 4Q24 Commentary 4Q24 Days FY24 Return on equity working capital ▪ Working capital decreased 11 days sequentially to 34 days 6.5% 34 Days ▪ $385 million debt payment decreased FY24
Slide 20: 2025 Outlook
2025 Outlook FY24 and FY25 Key metrics Income statement excl. special items impacts Cash flow impacts FY24 Actual FY25 Outlook FY24 Actual FY25 Outlook Alumina production (Mmt) 10.0 9.5 – 9.7 Pension / OPEB cash funding $67M ~ $70M Alumina shipments (Mmt) 13.2 13.1 – 13.3 Stock repurchases and divid
Slide 21: Important step forward for San Ciprián
Important step forward for San Ciprián Memorandum of understanding (MoU) summary and partnership timeline Objectives Parties to MoU Key areas of cooperation • Express the intentions of the parties to • Alcoa Inespal SL • Prioritize primary aluminum production over work cooperatively toward improving
Slide 22: 4Q24 accomplishments; continuing momentum for 2025
4Q24 accomplishments; continuing momentum for 2025 4Q24 Summary / Going forward Fourth quarter summary Going forward ▪ No fatal or serious injuries (FSIAs) ▪ 2025 key areas of focus ▪ Significant financial improvement ▪ Complete sale of Ma’aden joint ventures ▪ Surpassed profitability improvement ta
Slide 23: Quarterly income statement
Quarterly income statement Quarterly income statement for 4Q23, 3Q24 and 4Q24 Prior Year Sequential Millions, except realized prices and per share amounts 4Q23 3Q24 4Q24 Change Change Realized primary aluminum price ($/mt) $2,678 $2,877 $3,006 $328 $129 Realized alumina price ($/mt) $344 $485 $636 $
Slide 24: Special items
Special items Breakdown of special items by income statement classification – gross basis Millions, except per share amounts 4Q23 3Q24 4Q24 Description of significant 4Q24 special items Net (loss) income attributable to Alcoa Corporation $(150) $90 $202 (Loss) earnings per common share $(0.84) $0.38
Slide 25: Quarterly income statement excluding special items
Quarterly income statement excluding special items Quarterly income statement excluding special items for 4Q23, 3Q24 and 4Q24 Prior Year Sequential Millions, except realized prices and per share amounts 4Q23 3Q24 4Q24 Change Change Realized primary aluminum price ($/mt) $2,678 $2,877 $3,006 $328 $12
Slide 26: 4Q24 Financial summary
4Q24 Financial summary Three months ending December 31, 2024, excluding special items Intersegment Other Alcoa Millions Alumina Aluminum4 Transformation eliminations corporate Corporation Total revenue $2,441 $1,899 $8 $(861) $(1) $3,486 Third-party revenue $1,595 $1,895 $4 - $(8) $3,486 Adjusted EB
Slide 27: 4Q24 Segment Adjusted EBITDA drivers
4Q24 Segment Adjusted EBITDA drivers Segment Adjusted EBITDA sequential changes, $M Segment Segment Adjusted Adjusted EBITDA Metal Raw Production EBITDA 3Q24 Currency prices API materials Energy Price/mix Volume costs Other 4Q24 Alumina $367 66 0 327 1 (4) (27) 41 (35) (20) $716 Aluminum $180 1 88 (
Slide 28: Adj. operating costs and Segment Adj. EBITDA reconciliation
Adj. operating costs and Segment Adj. EBITDA reconciliation Adjusted operating costs of produced alumina and aluminum shipped Alumina segment 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Adj. operating costs ($M) $860 $872 $873 $882 $3,487 $796 $814 $734 $766 $3,110 Produced alumina shipments (
Slide 29: FY24 Financial information
FY24 Financial information FY24 Highlights and annual Adjusted EBITDA excluding special items change analysis Full year financial highlights Adjusted EBITDA excl. special items bridge, $M FY23 FY24 140 Realized primary aluminum price ($/mt) $2,828 $2,841 429 (53) (61) 1,589 (94) Realized alumina pri
Slide 30: Income statement information
Income statement information FY23 and FY24 Annual income statement FY23 FY24 Adjusted excl. Adjusted excl. Millions, except realized prices and per share amounts Reported Special items special items Reported Special items special items Realized primary aluminum price ($/mt) $2,828 $2,828 $2,841 $2,8
Slide 31: Aluminum value chain
Aluminum value chain 2024 Alcoa shipments by product type Bauxite Alumina Aluminum 41.3 Mdmt shipments 13.2 Mmt shipments 2.6 Mmt shipments Intersegment Third party 0% 15% Intersegment 32% 68% 85% Third party 100% Intrasegment Third party 31
Slide 32: Composition of alumina and aluminum production costs
Composition of alumina and aluminum production costs Alcoa 4Q24 production cash costs Alumina refining Input Inventory Pricing FY25 annual cost Bauxite cost flow convention sensitivity Conversion 27% 33% Caustic soda 5 - 6 Months Quarterly, Spot $10M per $10/dmt Quarterly, 91% with Natural gas 1 Mon
Slide 33: 2025 Business information
2025 Business information Estimated annual Segment Adjusted EBITDA sensitivities $Millions Midwest Midwest AUD BRL CAD EUR ISK NOK LME API Paid Unpaid Europe Japan + 0.01 + 0.10 + 0.01 + 0.01 + 10 + 0.10 Segment + $100/mt + $10/mt + $100/mt + $100/mt + $100/mt + $100/mt 0.651 5.831 1.401 1.071 137.7
Slide 34: Currency impacts on Segment Adjusted EBITDA
Currency impacts on Segment Adjusted EBITDA Currency balance sheet revaluation and EBITDA sensitivities impact ($M, except currencies) AUD BRL CAD EUR ISK NOK Total 12/31/24 currencies 0.62 6.20 1.44 1.04 137.93 11.34 4Q24 currency average 0.65 5.83 1.40 1.07 137.70 11.01 4Q24 Balance sheet revaluat
Slide 35: Additional business considerations
Additional business considerations Items expected to impact Adjusted EBITDA and Adjusted net income for 1Q25 Expected sequential impacts on Adjusted EBITDA excluding special items, excluding indexed sales prices or currency impacts: ▪ In the Alumina segment, we expect performance to be favorable by
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 December 31, 2024 equity earnings ELYSIS Limited Partnership Canada Aluminum smelting technology 48.235% Ma’aden Aluminium
Slide 37: 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 38: Production and capacity information
Production and capacity information Alcoa Corporation annual consolidated amounts as of December 31, 2024 Alumina refining, kmt Aluminum smelting, kmt Facility Country Capacity Curtailed Facility Country Capacity Curtailed Kwinana Australia 2,190 2,190 Portland Australia 197 33 Pinjarra Australia 4,
Slide 39: Adjusted EBITDA reconciliations
Adjusted EBITDA reconciliations Millions 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Net (loss) income attributable to Alcoa $(150) $(651) $(252) $20 $90 $202 $60 Add: Net (loss) income attributable to noncontrolling interest (77) (122) (55) 11 8 0 (36) Provision for (benefit from) income taxes 150 189 (18)
Slide 40: Free cash flow reconciliation
Free cash flow reconciliation Millions 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Cash provided from operations $198 $91 $(223) $287 $143 $415 $622 Capital expenditures (188) (531) (101) (164) (146) (169) (580) Free cash flow 10 (440) (324) 123 (3) 246 42 Contributions from noncontrolling interest 24 188 61
Slide 41: Net debt reconciliations
Net debt reconciliations 4Q23 3Q24 4Q24 Alcoa Alcoa Alcoa $M Cons. NCI Prop. Cons. NCI Prop. Cons. NCI Prop. Short-term borrowings $56 $- $56 $12 $- $12 $50 $- $50 Long-term debt due within one year 79 31 48 464 - 464 75 - 75 Long-term debt, less amount due within one year 1,732 - 1,732 2,469 - 2,46
Slide 42: DWC working capital and Days working capital reconciliations
DWC working capital and Days working capital reconciliations Millions 4Q23 1Q24 2Q24 3Q24 4Q24 Receivables from customers $656 $869 $939 $862 $1,096 Add: Inventories 2,158 2,048 1,975 2,096 1,998 Less: Accounts payable, trade 1,714 1,586 1,619 1,544 1,805 DWC working capital $1,100 $1,331 $1,295 $1,
Slide 43: Annualized Return on Equity (ROE)
Annualized Return on Equity (ROE) ROE Reconciliation and calculation information as of December 31, 2024 Millions 2023 2024 (Net Loss/Income Attributable to Alcoa + Special Items1) Numerator: ROE % = X 100 Net loss attributable to Alcoa Corporation $(651) $60 (Total Assets – Total Liabilities – Nonc
Slide 44: 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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