Companhia Brasileira de Alumínio (CBAV3) investor relations material

Executive summary

• Acquired wind power assets for 158 million BRL to supply 115 MW from 2027, diversifying the energy matrix and boosting competitiveness.

• Issued 530 million BRL in ESG-linked debentures to reinforce cash, improve debt profile, and support emission reduction targets.

• Maintenance shutdown at alumina refinery led to reduced production, higher costs, and one-off alumina purchases; ramp-up underway, normalization expected by year-end.

• ESG initiatives advanced, including ASI recertification, GHG Gold Seal, and new low-carbon aluminum certification.

• Liquid aluminum production normalized from June after shutdowns, with safety and operational quality prioritized.

Financial highlights

• Net revenue was 2 billion BRL, down 3% year-over-year and 14% sequentially.

• Adjusted EBITDA reached 189 million BRL with a 9% margin, pressured by higher costs and lower revenue.

• Free cash flow was negative, impacted by working capital investment, refinery shutdown, and increased inventory.

• Net loss of 73 million BRL, similar to the prior year, with gross profit dropping sharply.

• Net debt reduced due to BRL appreciation and derivative mark-to-market; leverage at 2.29x.

Outlook and guidance

• Alumina production costs peaked in Q2; gradual reduction and full normalization expected by 2026.

• Maintenance capex to remain high in the next quarters due to ongoing refinery maintenance.

• Molten aluminum production volume anticipated to recover as all smelters have restarted.

• Working capital release and improved cash generation expected in H2 as inventories normalize.

• Energy supply to be strengthened from 2027 with new wind assets, supporting long-term growth.