Alcoa (AA) JP Morgan Energy, Power and Renewables Conference summary

Business overview and strategic priorities

• Operates 27 locations in 9 countries, with integrated assets in bauxite mining, alumina refining, and aluminum smelting and casting.

• Focuses on three priorities: reducing complexity, driving shareholder returns, and advancing sustainability.

• Announced acquisition of 40% JV partner Alumina Limited, targeting closure by August 1.

• Positioned to benefit from improving commodity prices and demand.

Financial performance and outlook

• Expects significantly improved Q2 financial results, driven by higher prices and portfolio actions.

• Q2 earnings impacted by $10M higher alumina costs, $10M Kwinana ramp-down costs, and $5M extra energy costs in Spain.

• Ongoing $645M cost savings program, with $310M in raw material savings on track and $100M productivity improvements targeted by Q1 2025.

• Portfolio actions at Kwinana, Warrick, and Alumar expected to deliver further savings through 2025.

Market conditions and industry trends

• Global aluminum market is balanced, with 1%-4% demand growth in most regions except European construction.

• Limited new supply projects; China remains within its 45M ton cap despite Yunnan restarts.

• Alumina prices at two-year highs due to supply disruptions in China, Guinea, and Australia.

• Substitution of aluminum for copper is increasing, especially in electrical and industrial sectors, with potential demand growth of 500,000 to 2M tons/year by 2030.