Alcoa Corporation · NYSE:AA
Alcoa — Shareholder Meeting (May 2018)
24 slides from Alcoa's shareholder meeting presentation, May 9, 2018
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders Alcoa Corporation May 9, 2018
Slide 2: Safety briefing
Safety briefing Meeting room exits and evacuation 2
Slide 3: Agenda
Agenda Alcoa Corporation stockholder meeting, May 9, 2018 I. Welcome and Call Meeting to Order - Michael G. Morris, Chairman - Roy C. Harvey, President and Chief Executive Officer - Jeffrey D. Heeter, Executive Vice President, General Counsel and Secretary II. Report of the Secretary - Michael G. Mo
Slide 4: Director nominees
Director nominees Twelve directors to serve one-year term Mary Anne Citrino James A. Hughes Carol L. Roberts Senior Advisor, The Blackstone CEO and Managing Director, Prisma Former Senior Vice President and Group L.P. Energy Capital CFO, International Paper Company Timothy P. Flynn Michael G. Morris
Slide 5: Company leadership
Company leadership Management and officers Executive team Officers ▪ Roy C. Harvey*, President and Chief Executive Officer ▪ Molly S. Beerman, Vice President and Controller ▪ William F. Oplinger*, Executive Vice President and Chief ▪ Catherine Garfinkel, Vice President and Chief Ethics and Financial
Slide 6: Agenda
Agenda Alcoa Corporation stockholder meeting, May 9, 2018 I. Welcome and Call Meeting to Order - Michael G. Morris, Chairman - Roy C. Harvey, President and Chief Executive Officer - Jeffrey D. Heeter, Executive Vice President, General Counsel and Secretary II. Report of the Secretary - Michael G. Mo
Slide 7: Items of business
Items of business Proposals and voting 1. Election of 12 Director Nominees to Serve for a One-Year Term Expiring in 2019 2. Ratification of Appointment of PricewaterhouseCoopers LLP as the Company’s Independent Registered Public Accounting Firm for 2018 3. Advisory Vote to Approve 2017 Executive Com
Slide 8: Agenda
Agenda Alcoa Corporation stockholder meeting, May 9, 2018 I. Welcome and Call Meeting to Order - Michael G. Morris, Chairman - Roy C. Harvey, President and Chief Executive Officer - Jeffrey D. Heeter, Executive Vice President, General Counsel and Secretary II. Report of the Secretary - Michael G. Mo
Slide 9: Report of the President and Chief Executive Officer
Report of the President and Chief Executive Officer Roy C. Harvey
Slide 10: Important information
Important information Cautionary statement regarding forward-looking statements and non-GAAP financial measures 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 Litigatio
Slide 11: Values and strategic priorities: simple and effective
Values and strategic priorities: simple and effective Alcoa Corporation Values Strategic priorities 11
Slide 12: Focused on safety for all employees and contractors
Focused on safety for all employees and contractors Safety update 2017 Safety review Key focus items ▪ Three tragic incidents resulted in three ▪ Started reinvigoration of safety program; fatalities in 2017 external hire to provide EHS leadership and elevated position to Executive Team, ▪ Days away,
Slide 13: Committed to sustainability
Committed to sustainability Sustainability update 2017 Sustainability performance examples Committed to environmental rehabilitation ▪ Selected to the Dow Jones Sustainability ▪ Former mining sites, including this one at our Index in Alcoa’s first standalone year Huntly mine in Western Australia, ha
Slide 14: FY17: Strong financial performance and business progress
FY17: Strong financial performance and business progress FY17 Summary ▪ Revenue of $11.7 billion; up $2.3 billion vs. 2016 ▪ Net income of $217 million, or $1.16 per share; excluding special items, adjusted Financial net income of $563 million, or $3.01 per share results ▪ Adjusted EBITDA excluding
Slide 15: Balanced capital allocation approach for 2018
Balanced capital allocation approach for 2018 Capital allocation strategy 2018 Framework Disciplined approach for 2018 ▪ Target holding $1 billion in cash on Maintain liquidity hand Greater than $1B cash balance ▪ Maintain the assets by spending close to $300 million in sustaining capital expenditur
Slide 16: Strong 2017, focused on continued execution of priorities
Strong 2017, focused on continued execution of priorities Summary Strategic priorities Keys to Alcoa Global network of world-class assets; well-positioned across market events Investing in high return capital projects to grow the business for the future Improving balance sheet; pension and OPEB acti
Slide 17: Questions?
Questions? Alcoa Corporation
Slide 18: Agenda
Agenda Alcoa Corporation stockholder meeting, May 9, 2018 I. Welcome and Call Meeting to Order - Michael G. Morris, Chairman - Roy C. Harvey, President and Chief Executive Officer - Jeffrey D. Heeter, Executive Vice President, General Counsel and Secretary II. Report of the Secretary - Michael G. Mo
Slide 19: Appendix
Appendix
Slide 20: Production and capacity information
Production and capacity information Alcoa Corporation annual consolidated amounts Bauxite production, Mdmt Alumina refining, kmt Aluminum smelting, kmt 2017 Mine Country Production Facility Country Capacity Curtailed Facility Country Capacity Curtailed Darling Range Australia 33.2 Kwinana Australia
Slide 21: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation $M FY16 FY17 Net income (loss) attributable to Alcoa Corporation $(400) $217 Add: Net income attributable to noncontrolling interest 54 342 Provision for income taxes 184 600 Other expenses / (income), net (89) (58) Interest expense 243 104 Restructuring and other char
Slide 22: Special items detail, net of tax and noncontrolling interest
Special items detail, net of tax and noncontrolling interest $M FY16 4Q17 FY17 1Q18 P&L classification Special items $173 $391 $346 $(5) Becancour labor negotiation costs - 3 3 2 Cost of goods sold Brazil tax settlements - - 7 - Cost of goods sold / selling, general administrative, and other Gain on
Slide 23: Free Cash Flow reconciliation
Free Cash Flow reconciliation $M FY16 FY17 Cash from operations $(311) $1,224 Capital expenditures (404) (405) Free cash flow $(715) $819 Free Cash Flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated f
Slide 24: The Element of Possibility
The Element of Possibility”