Alcoa (AA) Investor presentation summary

Strategic priorities and operational focus

• Emphasis on safety, operational excellence, and stakeholder engagement, with improved safety performance and strong financial and production results in 1Q25.

• Ongoing modernization of business systems, targeted improvements in Brazil, and embedding a high-performance culture.

• Focus on commercial excellence, customer supply security, product innovation, and sustainability to position as a premier aluminum supplier.

• Growth initiatives include pragmatic expansion, site viability, and capital allocation to de-lever the balance sheet and invest in breakthrough technologies.

• Completed $1B debt offering in Australia and formed a joint venture at San Ciprián, resuming smelter production.

Financial performance and capital allocation

• 1Q25 Adjusted EBITDA rose to $855M, up $178M sequentially, with net income at $548M and EPS at $2.07.

• Free cash flow for 1Q25 was $9M, with a cash balance of $1.2B and adjusted net debt at $2.1B.

• Return on equity reached 39.1%, the highest since 1Q22, and $26M was returned to stockholders via dividends.

• Capital allocation targets $1.0B–$1.5B adjusted net debt, balancing returns to stockholders, growth investments, and portfolio transformation.

• Strong balance sheet supported by $1B debt repositioned to Australia and access to $1.5B in revolving credit facilities.

Market dynamics and product positioning

• Alumina prices returned to historical averages, with over 80% of Chinese refineries unprofitable at current prices; global supply remains secure.

• Aluminum prices responded to new tariffs, with resilient 1Q25 order books and healthy demand for value-add products in North America and Europe.

• Canada remains the most strategic supplier of primary aluminum to the U.S., despite new 25% tariffs, which have had minimal supply impact.

• Vertical integration and proximity to key markets provide supply security and cost advantages.

• Sustana product line offers low-carbon and recycled-content aluminum, with emissions intensity well below industry averages.