Alcoa : 1Q20 Earnings Presentation

1st Quarter Earnings

Alcoa Corporation

April 22, 2020

Important information

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 include those containing such words as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "outlook," "plans," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, forecasts concerning global demand growth for bauxite, alumina, and aluminum, and supply/demand balances; statements, projections or forecasts of future or targeted financial results or operating performance; statements about strategies, outlook, and business and financial prospects; and statements about return of capital. These statements reflect beliefs and assumptions that are based on Alcoa Corporation's perception of historical trends, current conditions, and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Such risks and uncertainties include, but are not limited to: (a) current and potential future impacts of the coronavirus (COVID-19) pandemic on the global economy and our business, financial condition, results of operations, or cash flows; (b) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices and premiums, as applicable, for primary aluminum and other products, and fluctuations in indexed-based and spot prices for alumina; (c) deterioration in global economic and financial market conditions generally and which may also affect Alcoa Corporation's ability to obtain credit or financing upon acceptable terms or at all; (d) unfavorable changes in the markets served by Alcoa Corporation; (e) the impact of changes in foreign currency exchange and tax rates on costs and results; (f) increases in energy costs or uncertainty of energy supply; (g) declines in the discount rates used to measure pension liabilities or lower- than-expected investment returns on pension assets, or unfavorable changes in laws or regulations that govern pension plan funding; (h) the inability to achieve improvement in profitability and margins, cost savings, cash generation, revenue growth, fiscal discipline, or strengthening of competitiveness and operations anticipated from portfolio actions, operational and productivity improvements, cash sustainability, technology advancements, and other initiatives; (i) the inability to realize expected benefits, in each case as planned and by targeted completion dates, from acquisitions, divestitures, facility closures, curtailments, restarts, expansions, or joint ventures; (j) political, economic, trade, legal, public health and safety, and regulatory risks in the countries in which Alcoa Corporation operates or sells products; (k) labor disputes and/or and work stoppages; (l) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; (m) the impact of cyberattacks and potential information technology or data security breaches; and (n) the other risk factors discussed in Item 1A of Alcoa Corporation's Form 10-K for the fiscal year ended December 31, 2019 and other reports filed by Alcoa Corporation with the U.S. Securities and Exchange Commission (SEC). Alcoa Corporation disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Market projections are subject to the risks described above and other risks in the market.

2

Important information (continued)

Non-GAAP financial measures

Some of the information included in this presentation is derived from Alcoa's consolidated financial information but is not presented in Alcoa's financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered "non-GAAP financial measures" under SEC rules. Alcoa Corporation believes that the presentation of non-GAAP financial measures is useful to investors because such measures provide both additional information about the operating performance of Alcoa Corporation and insight on the ability of Alcoa Corporation to meet its financial obligations by adjusting the most directly comparable GAAP financial measure for the impact of, among others, "special items" as defined by the Company, non-cash items in nature, and/or nonoperating expense or income items. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Reconciliations to the most directly comparable GAAP financial measures and management's rationale for the use of the non-GAAP financial measures can be found in the appendix to this presentation.

Glossary of terms

A glossary of abbreviations and defined terms used throughout this presentation can be found in the appendix.

3

Roy Harvey

President and Chief Executive Officer

Our values are our guide, even in uncertain times

1Q20 earnings conference call

• Safety update
• COVID-19
• • People and operations
  • Aluminum market impacts
• Alcoa actions
• 1Q20 earnings and FY20 outlook

5

Taking actions to maintain safe and stable operations

COVID-19 Alcoa impacts and actions

Care and safety

• Prioritizing health and safety of employees in alignment with public health regulations
• Supporting employees with COVID-19; minimizing risk of exposure for others
• Adjusted shift schedules to socially distance
• Teams working from home if possible
• All nonessential business travel suspended
• Alcoa Foundation donating $4 million to fund community response activities at Alcoa operating locations

Operations

• All of Alcoa's bauxite mines, alumina refineries, and aluminum manufacturing facilities remain in operation
• Implemented global hiring restrictions
• Reviewing all non-critical maintenance activities
• Halting or slowing pot relining at some plants
• Pursuing aggressive cash savings
• Bécancour restart slowed, currently ~85% complete

6

Operations, shipments continue, though with COVID-19 impacts

Alcoa segment dynamics and COVID-19 impacts

Segment dynamics

Bauxite

• Largely long-term contracts with some annual adjustments
• Steady demand based on 1Q20 world ex-China alumina refinery competitiveness
• Diesel fuel purchased at market rates, other costs largely fixed

Alumina

• 95% of sales priced on index or fixed price basis
• Ability to shift to spot customers as needed
• Integration safeguards bauxite supply and lowers costs
• Use less caustic than industry average, priced quarterly

Aluminum

• Priced at LME plus regional premium, sold delivered
• Value add products made for manufacturers can be shifted into commodity-grade products
• ~70% of operating smelter power contracts LME or market-based
• Carbon purchases priced quarterly

COVID-19

impacts

• Shipments and pricing largely unaffected in 1Q20
• Bauxite shipments and pricing expected to be stable in 2Q20

• One third-party smelter- grade alumina customer announced 50% production cut; sales to be diverted elsewhere
• Pricing has declined substantially

• Conversion of ~20% of 2Q20 value-add product sales to commodity-grade ingot due to customers requesting shipment postponements and declaring force majeure
• Pricing has declined substantially

7

Rising stocks; lower prices increase cash negative %

2020 market dynamics

Alumina

Aluminum

Inventory

&

Prices

FOB WA alumina price ($/t)

320

1. 275 at 1/1

260
240
220	226

1/1/20

4/17/20

LME aluminum cash price ($/t)

1,900	1,772 at 1
1,800
1,700
1,600
1,500		1,483
1,400
1/1/20	4/17/20

Global total aluminum stocks1 (Mt)

			China				World ex-China
11.9	12.3					13.3
11.0	10.7	10.8
4.7		5.3					5.9
	4.3		3.9	3.8

7.2 7.0 6.7 6.8 7.0 7.4

4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

		Refining production cash negative ($/t)		Smelting production cash negative ($/t)
				$0-$50 cash negative				$0-$100 cash negative
Industry									> $100/t cash negative
						60%
Profitability
40%					20%
March 2020							40%	20%
			< 5%			10%
								10%
		China		World ex-China		China		World ex-China
Sources: Alcoa analysis, Baiinfo, Aladdiny, CRU, LME, Platts. 1. Includes reported and unreported stocks at end of period.	8

Acted early, ~$900 million of FY20 cash levers

Key strategic actions, 2020 programs, COVID-19 response

Key strategic

actions

New operating model: Creating a leaner, more integrated, operator-centric Alcoa

Non-coreasset sales: Generating additional cash through non-core asset sales

• Gum Springs treatment facility sale (January 2020)

Asset Portfolio review: Positioning to succeed financially in an evolving sustainable world

• Intalco smelter curtailment (April 2020)

	2020		Leaner working capital: Lowering inventory, optimizing contract terms
	programs		Productivity improvement: Improving efficiencies and production costs
October 2019	February 2020	March 2020
					Capex reduction
				COVID-19
				response		Pension deferral
							Other spending cuts

9

William Oplinger

Executive Vice President and Chief Financial Officer

Revenues, Adjusted EBITDA, reflect softer market

Quarterly income statement highlights

M, Except realized prices and per share amounts	1Q19	4Q19	1Q20
Income statement highlights
Revenue	$2,719	$2,436	$2,381
Restructuring and other charges, net	$113	$363	$2
Provision for income taxes	$150	$54	$80
Net (loss) income attributable to Alcoa Corporation	$(199)	$(303)	$80
Diluted (loss) earnings per share	$(1.07)	$(1.63)	$0.43
Adjusted income statement highlights
Adjusted EBITDA excluding special items	$467	$346	$321
Provision for income taxes	$117	$86	$66
Operational tax rate	54.5%	99.5%	78.5%
Adjusted net loss attributable to Alcoa Corporation	$(43)	$(57)	$(42)
Adjusted diluted loss per share	$(0.23)	$(0.31)	$(0.23)

Prior year	Sequential
change	change
$(338)	$(55)
$(111)	$(361)
$(70)	$26
$279	$383
$1.50	$2.06
$(146)	$(25)
$(51)	$(20)
24.0% pts.	(21.0)% pts.
$1	$15
-	$0.08

11

Seasonality and market prices impact Adjusted EBITDA

Adjusted EBITDA excluding special items sequential changes, $M

	64
				12	12
346		(29)	(14)			(18)
				(17)
								321
							(21)
							(14)
4Q19	Currency	Metal	API	Raw	Energy	Price	Volume Production	Other	1Q20
		prices		materials		/ mix	costs

	4Q19	1Q20	Change
Bauxite	$132	$120	$(12)
Alumina	133	193	60
Aluminum	75	62	(13)
Segment total	340	375	35
Transformation	(6)	(16)	(10)
Intersegment	40	(8)	(48)
eliminations
Other corporate	(28)	(30)	(2)
Total	$346	$321	$(25)

12

Maintaining focus on balance sheet, cash balance $0.8B

Key financial metrics and YTD cash flow information

Key financial metrics

1Q20 Days

working capital

31 Days

1Q20 Capital expenditures

$91M

1Q20 Free cash flow less

net NCI distributions

$(212)M

1Q20

Return on equity

(3.9)%

Proportional

adjusted net debt

$3.3B

1Q20 Cash balance

$0.8B

YTD Cash flow information, $B

		$0.57
	$0.52	$0.03
		$0.03
			$0.04
Proceeds from	$0.20		$0.04
Asset Sales		$0.05
			$0.07
			$0.08

Adjusted		$0.09
$0.32
EBITDA
	$0.15

Environmental/ARO Net distributions to NCI Restructuring Interest

Special items, other

Cash income taxes

Pension/OPEB funding2

Capital expenditures

Change in W/C

Sources1Uses

1. Sources defined as Adjusted EBITDA excluding special items plus proceeds from asset sales.

2. Pension/OPEB funding is reflected net of related expenses within Adjusted EBITDA.

13

Pension/OPEB impacts mixed, cash funding flexibility

Pension/OPEB balance sheet and cash funding considerations as of March 31, 2020

Pension/OPEB balance sheet impact

• Remeasurement of assets and liabilities occurs at year end based on December 31 discount rates and full year actual asset return performance
• Pension expected return on plan assets is 6.28%; preliminary actual returns were ~(7%) through March 31, 2020
• Discount rate for pension/OPEB liabilities up ~20 basis points from December 31 to March 31
• • Pension rate: 3.12% at December 31; 3.35% at March 31
  • OPEB rate: 3.12% at December 31; 3.30% at March 31
  • Approximates 10-15 year investment grade corporate bond
  • 25 basis point change impacts net liability by $175 million

Pension/OPEB cash funding impact

• U.S. pension cash funding requirements are based on smoothed asset performance and 25-year average segment rates mandated by the IRS
• Pension funding requirements for FY20 are set
• The COVID-19 stimulus allows 2020 U.S. pension funding of ~$220 million to be deferred to January 1, 2021
• U.S. pension pre-funding balance of ~$380 million available for future
• OPEB cash requirements are pay as you go; estimated to be ~$100 million in FY20

14

Strong debt profile and cash position; significant levers

Liquidity, cash, and financial strengthening during COVID-19 pandemic

Debt maturities and available credit

Debt maturities ($M)

$800	750
$600	500	500

$400

$20080

$0

2020 2021 2022 2023 2024 2025 2026 2027 2028

• No significant long term debt maturities until 2024
• Revolving credit facility of $1.5 billion and a separate credit facility of $123 million1 in place; no borrowings in 1Q20
• Amended revolving credit facility in April to temporarily increase borrowing base availability for the next four quarters

1. NOK 1.3 billion credit line

Cash position and levers

• Cash on hand at March 31, 2020 of $829 million
• Targeting additional cash from reduced working capital of $75 million to $100 million, and reduced cash production costs, year over year, of $100 million
• Receivables purchase agreement in place to allow $120 million in sales
• COVID-19major cash levers
• • Reducing total capital expenditures $100 million from original outlook to $375 million
  • Reducing environmental and ARO spending $25 million from original FY20 outlook
  • Ability to defer ~$220 million in U.S. pension funding until January 2021; reviewing other stimulus programs, including payroll tax deferral
  • Hiring restrictions, travel suspension to generate cash savings

15

Cash actions total ~$900 million

Impacts of announced FY20 actions, before tax and noncontrolling interest, $M

Cash actions

	Run rate	One time	Deferral	FY20
Key strategic actions
New operating model	60			45
Non-core asset sales		200		200
Portfolio review	35-100	(25)		10-75
2020 programs
Leaner working capital		75-100		75-100
Lower production costs	100			100
COVID-19 response
Reduce capital expenditures		100		100
Defer environmental/ARO			25	25
Defer pension funding to 2021			220	220
Hiring, travel, other restrictions		20	15	35
Total	~225	~400	~260	~900

16

2020 Outlook

FY20 Key metrics

Income statement excl. special items impacts

	1Q20 Actual	FY20 Outlook
Bauxite shipments (Mdmt)	11.9	48.0 - 49.0
Alumina shipments (Mmt)	3.4	13.6 - 13.7
Aluminum shipments (Mmt)1	0.7	2.9 - 3.0
Transformation (adj. EBITDA impacts)	$(16)M	~ $(75)M
Intersegment elims. (adj. EBITDA impacts)	$(8)M	Varies
Other corporate (adj. EBITDA impacts)	$(30)M	~ $(90)M
Depreciation, depletion and amortization	$170M	~ $685M
Non-operating pension/OPEB expense	$25M	~ $100M
Interest expense	$30M	$125-130M
Operational tax rate2	78.5%	Varies
Net income of noncontrolling interest	$60M	40% of AWAC NI

1. Intalco curtailment reflected in outlook.

Cash flow impacts

	1Q20 Actual	FY20 Outlook
Minimum required pension/all OPEB funding	$72M	~ $180M
Additional pension funding	$0M	Will vary based
Discretionary debt repayment	$0M	on market
conditions and
Stock repurchases	$0M	cash availability
Return-seeking capital expenditures3	$21M	~ $25M
Sustaining capital expenditures3	$70M	~ $350M
Payment of prior year income taxes4	$32M	~ $50M
Current period cash taxes2	$38M	Varies
Environmental and ARO payments5	$28M	~ $125M
Impact of restructuring and other charges	$37M	TBD

Note: The COVID-19 pandemic has increased the potential for variance of actual results compared to our outlook.

Additional market sensitivities and business information are included in appendix.

1. Estimate will vary with market conditions and jurisdictional profitability.
2. AWAC portion of FY20 Outlook: ~20% of return-seeking capital expenditures, and ~60% of sustaining capital expenditures.
3. Net of pending tax refunds.
4. As of March 31, 2020, the environmental remediation reserve balance was $327M and the ARO liability was $649M.

17

Roy Harvey

President and Chief Executive Officer

Market resilience through early action and shared values

Key takeaways

• Care and safety

Protecting our employees and our operations throughout the COVID-19 pandemic

• Early action

Prepared and well positioned through strengthened balance sheet and strategic initiatives

• Building our future

$900 million targeted 2020 cash actions, to help set the foundation for the future

Drive results and deliver returns to

stockholders over the

long term

19

Appendix

Continuing improvement actions during uncertain times

1Q20 Financial results and business review

1Q20

Financial

results

Business

review

• Net income of $80 million, or $0.43 per share; excluding special items, adjusted net loss of $42 million, or $0.23 per share
• Adjusted EBITDA excluding special items of $321 million
• Cash balance at $0.8 billion on March 31
• February contractor fatality in Brazil
• Closed Gum Springs sale and received $200 million cash proceeds
• Announced year over year working capital reduction and production cost improvement targets of $75-$100 million and $100 million, respectively
• Maintained production and shipment levels while instituting comprehensive COVID-19 response protocols
• Market uncertainty driving potential for larger aluminum surplus

21

Quarterly income statement

Quarterly income statement

M, Except realized prices and per share amounts	1Q19	4Q19	1Q20
Realized primary aluminum price ($/mt)	$2,219	$2,042	$1,988
Realized alumina price ($/mt)	$385	$291	$299
Revenue	$2,719	$2,436	$2,381
Cost of goods sold	2,180	2,048	2,025
SG&A and R&D expenses	91	68	67
Adjusted EBITDA	448	320	289
Depreciation, depletion and amortization	172	183	170
Other expenses (income), net	41	44	(132)
Interest expense	30	31	30
Restructuring and other charges, net	113	363	2
Provision for income taxes	150	54	80
Net (loss) income	(58)	(355)	139
Less: Net income (loss) attributable to noncontrolling interest	141	(52)	59
Net (loss) income attributable to Alcoa Corporation	$(199)	$(303)	$80
Diluted (loss) earnings per share	$(1.07)	$(1.63)	$0.43
Diluted average shares1	185.3	185.6	186.6

Prior Year	Sequential
Change	Change
$(231)	$(54)
$(86)	$8
$(338)	$(55)
(155)	(23)
(24)	(1)
(159)	(31)
(2)	(13)
(173)	(176)
-	(1)
(111)	(361)
(70)	26
197	494
(82)	111
$279	$383
$1.50	$2.06
1.3	1.0

1. For 1Q19 and 4Q19, share equivalents related to employee stock-based compensation were excluded from Diluted average shares as the impact was anti-dilutive

given a net loss attributable to Alcoa Corporation.

22

Special items

Breakdown of special items by income statement classification - gross basis

M, Except per share amounts	1Q19	4Q19	1Q20	Description of significant 1Q20special items
Net (loss) income attributable to Alcoa Corporation	$(199)	$(303)	$80
Diluted (loss) earnings per share	$(1.07)	$(1.63)	$0.43
Special items	$156	$246	$(122)
Cost of goods sold	17	26	32	Bécancour restart costs
SG&A and R&D expenses	2	-	-
Restructuring and other charges, net	113	363	2
Other expenses (income), net	(9)	(1)	(169)	Gain on Gum Springs asset sale
Provision for income taxes	33	(32)	14	Interim tax impacts
Noncontrolling interest	-	(110)	(1)
Adjusted net loss attributable to Alcoa Corporation	$(43)	$(57)	$(42)
Adjusted diluted loss per share	$(0.23)	$(0.31)	$(0.23)

23

Quarterly income statement excluding special items

Quarterly income statement excluding special items

M, Except realized prices and per share amounts	1Q19	4Q19	1Q20
Realized primary aluminum price ($/mt)	$2,219	$2,042	$1,988
Realized alumina price ($/mt)	$385	$291	$299
Revenue	$2,719	$2,436	$2,381
Cost of goods sold	2,163	2,022	1,993
COGS % of Revenue	79.6%	83.0%	83.7%
SG&A and R&D expenses	89	68	67
SG&A and R&D % of Revenue	3.3%	2.8%	2.8%
Adjusted EBITDA	467	346	321
Depreciation, depletion and amortization	172	183	170
Other expenses, net	50	45	37
Interest expense	30	31	30
Provision for income taxes	117	86	66
Operational tax rate	54.5%	99.5%	78.5%
Adjusted net income	98	1	18
Less: Adjusted net income attributable to noncontrolling interest	141	58	60
Adjusted net loss attributable to Alcoa Corporation	$(43)	$(57)	$(42)
Adjusted diluted loss per share	$(0.23)	$(0.31)	$(0.23)
Diluted average shares1	185.3	185.6	185.7

Prior Year	Sequential
Change	Change
$(231)	$(54)
$(86)	$8
$(338)	$(55)
(170)	(29)
4.1% pts.	0.7% pts.
(22)	(1)
(0.5)% pts.	0.0% pts.
(146)	(25)
(2)	(13)
(13)	(8)
-	(1)
(51)	(20)
24.0% pts.	(21.0%) pts.
(80)	17
(81)	2
$1	$15
$0.0	$0.08
0.4	0.1

1. For all periods presented, share equivalents related to employee stock-based compensation were excluded from Diluted average shares as the impact was anti-

dilutive given an adjusted net loss attributable to Alcoa Corporation.

24

Strengthening the Company, 2017-2019

Key actions

2017 - 2018

• Revitalized safety program; zero fatalities in 2018
• Restarted Portland smelter and Lake Charles calciner
• Streamlined business units to three, reduced administrative locations, relocated headquarters to Pittsburgh
• Set annual production records
• Terminated Rockdale power contract, closed site
• Restarted Warrick smelter
• Divested Portovesme smelter
• Launched ELYSISTM joint venture
• Renegotiated revolving credit for more favorable terms
• Froze salaried pension plan as of January 1, 2021; prefunded pension with $500 million debt issue
• Repurchased $50 million in stock

2019

• Continued solid safety performance; zero fatalities
• Set annual and quarterly production records
• Modernized labor contracts in Canada, U.S. and Australia
• Began restart of Bécancour smelter
• Initiated Deschambault smelter creep project
• Divested Avilés and La Coruña facilities, as well as minority interest in Saudi rolling mill
• Implemented new operating model
• Announced Point Comfort alumina refinery closure
• Agreed to sale of Gum Springs treatment facility
• Achieved four ASI certifications across value chain
• Joined International Council on Mining and Metals
• Finalized Suriname closure agreements; transferred dam
• Took further actions to reduce pension/OPEB net liability

25

Capital allocation framework
Capital allocation framework and considerations
Maintain liquidity throughout the cycle		▪ $1 billion target for minimum cash
		balance
				▪ Sustaining capital expenditures of ~$350
Capital expenditures to sustain and improve operations		million, return seeking capital of ~$25
	million, per 2020 outlook
				▪ Based on current discount rates and
Maximize value creation opportunities			estimated asset returns, expect meeting
		adjusted net debt target solely through
Reduce adj.			Invest in		minimum required pension contributions
Return		▪ $150 million available of existing $200
net debt1 to		value
excess	Transform		million buyback authorization
$2.0B-$2.5B	creating
cash to	the portfolio	▪	Portfolio review and transformation over
over 2-4	growth
stockholders			five years
years		projects
				▪ Invest in major value creating projects

1. Adjusted net debt defined as the Alcoa proportional share of net debt plus net pension and OPEB liability

26

1Q20 Financial summary

Three months ending March 31, 2020, excluding special items

$M					Intersegment	Other	Alcoa
Bauxite	Alumina	Aluminum3,4	Transformation	eliminations	corporate	Corporation
Total revenue	$306	$1,043	$1,601	$5	$(574)	-	$2,381
Third-party revenue	$71	$707	$1,598	$5	-	-	$2,381
Adjusted EBITDA1	$120	$193	$62	$(16)	$(8)	$(30)	$321
Adjusted EBITDA margin %	39.2%	18.5%	3.9%				13.5%
Depreciation, depletion and amortization	$34	$49	$81	-	-	$6	$170
Other (income) expenses, net2	-	$9	$(5)	-	-	$33	$37
Interest expense							$30
Provision for income taxes							$66
Adjusted net income							$18
Net income attributable to noncontrolling interest							$60
Adjusted net loss attributable to Alcoa Corp.							$(42)

1. Includes the Company's proportionate share of earnings from equity investments in certain bauxite mines, hydroelectric generation facilities, and an aluminum smelter located in Brazil, Canada, and/or Guinea.
2. Amounts for Alumina and Aluminum represent the Company's proportionate share of earnings from its equity investment in the Saudi Arabian joint venture.
3. Flat-rolledaluminum shipments, revenue and adjusted EBITDA were 0.07 Mmt, $279M and $0M, respectively.

4. Third-party energy sales volume, revenue and adjusted EBITDA in Brazil were 923 GWh, $44M and $31M, respectively.

27

1Q20 Adjusted EBITDA drivers by segment

Adjusted EBITDA excl. special items sequential changes by segment, $M

	Adj.										Adj.
	EBITDA		Metal		Raw				Production		EBITDA
Segment	4Q19	Currency	prices	API	materials	Energy	Price/mix	Volume	costs	Other	1Q20
Bauxite	$132	7	0	0	0	0	(5)	(4)	(2)	(8)	$120
Alumina	$133	48	0	(6)	9	10	(13)	(10)	(4)	26	$193
Aluminum	$75	9	(32)	11	3	2	0	(3)	(15)	12	$62
Segment	$340	64	(32)	5	12	12	(18)	(17)	(21)	30	$375
Total

28

Aluminum value chain

1Q20 Alcoa product shipments by segment, Mmt

Bauxite

11.9 Mdmt shipments

Third Party

12%

88%

Intercompany

AluminaAluminum

3.4 Mmt shipments

0.7 Mmt shipments

Intercompany

0%

Intercompany

31%

69%

Third Party

100%

Third Party

29

Composition of alumina and aluminum production costs

Alcoa 1Q20 production cash costs

Alumina refining

				Input	Inventory	Pricing	FY20 Annual Cost
				Cost	Flow	Convention	Sensitivity
Conversion		Bauxite	Caustic Soda	5 - 6 Months	Quarterly, Spot	$10M per $10/dmt
	34%
36%
	Natural Gas1	N/A	N/A	N/A
	5%	13%	12%	Fuel Oil	1 - 2 Months	Prior Month	$3M per $1/barrel
Fuel Oil	Caustic
Natural Gas
Aluminum smelting
				Input	Inventory	Pricing	FY20 Annual Cost
Conversion			Cost	Flow	Convention	Sensitivity
18%	Alumina
Alumina	~2 Months	API on a 6-8 month	$39M per $10/mt
			33%	average
Materials 8%
		Petroleum Coke	1 - 2 Months	Quarterly	$7M per $10/mt
27%	14%
Coal Tar Pitch	1 - 2 Months	Quarterly	$1.8M per $10/mt
Power
	Carbon

1. Australia is priced on a 16 quarter rolling average.

30

2020 Business information

Estimated annual Adjusted EBITDA sensitivities

$M						AUD	BRL	CAD	EUR	ISK	NOK
	LME	API	Midwest	Europe	Japan	+ 0.01	+ 0.10	+ 0.01	+ 0.01	+ 10	+ 0.10
Segment	+ $100/mt	+ $10/mt	+ $100/mt	+ $100/mt	+ $100/mt	0.661	4.441	1.341	1.101	127.781	9.441
Bauxite						(4)	3
Alumina		119				(18)	8		(1)
Aluminum	219	(47)	141	86	27	(0)	(2)	2	(3)	11	2
Total	219	72	141	86	27	(22)	9	2	(4)	11	2

Pricing conventions

Segment	3rd-Party Revenue
Bauxite	•	Negotiated prices
Alumina	•	~95% of third-party smelter grade alumina priced on API/spot
• API based on prior month average of spot prices
	• LME + Regional Premium + Product Premium
Aluminum	• Primary aluminum 15-day lag; flat rolled aluminum 30-day lag

• Brazilian hydroelectric sales at market prices

1. Average 1Q20 exchange rates

Regional premium breakdown

	% of 2020
Regional premiums	Primary aluminum shipments
Midwest	~50%
Rotterdam Duty Paid	~40%
CIF Japan	~10%

31

Additional business considerations

Items expected to impact adjusted EBITDA for 2Q20

• In the Bauxite segment, Adjusted EBITDA is expected to be ~$10 million lower, primarily due to non-recurrence of an annual sales contract true up
• In the Alumina segment, we are expecting lower raw material costs to yield ~$10 million sequential benefit
• In the Aluminum segment
• • Lower alumina costs are estimated to produce sequential benefit of ~$15 million
  • Benefits from lower smelter power costs will be more than offset by lower Brazil Hydros sales prices, while lower value add pricing and volumes will be partially offset by production cost improvements, yielding an expected ~$10 million sequential decline
• Due to an unusually large change in quarter end exchange rates, 1Q20 adjusted EBITDA included a balance sheet revaluation benefit of $36 million and a $41 million sequential benefit compared to 4Q19; currency changes related to balance sheet revaluation are not incorporated into the currency sensitivities provided for EBITDA
• Estimate intercompany profit elimination for every $10/mt decrease in API prices to be a $8 to $10 million favorable impact based on comparison of the average prices of the last two months of each quarter; consider intersegment eliminations as component of minority interest calculation
• The operational tax rate for each quarter and the full year is based on estimated full year profit before tax; with the market uncertainty related to the COVID-19 pandemic, we are suspending the outlook for our operational tax rate

32

Pension and OPEB summary

Net pension and OPEB liability and financial impacts

Net liability as of March 31, 20201

Estimated financial impacts, $M

OPEB Total $0.8B

U.S. $0.8

U.S. $1.1

ROW $0.4

	Expense impact	2020
	Segment pension	$50
Pension	Segment OPEB	5
Corporate pension & OPEB	5
Total
Total adj. EBITDA impact	60
$1.5B
Non-operating	100
	Special items2 (curtailment/settlement)	3
	Total expense impact	$163

	Cash flow impact	2020
Pension funding status as of December 31, 2019	Minimum required pension funding3	$80
− U.S. ERISA ~80%	OPEB payments	100
− GAAP Worldwide ~77%	Total cash impact	$180
U.S. pension contributions currently not tax deductible

1. The impact on the combined pension and OPEB liability of a 25 basis point change in the weighted average discount rate is approximately $175 million.
2. Certain Canadian pension plans remeasured as of January 31, 2020 due to announced benefit freeze.
3. The COVID-19 stimulus allows 2020 pension funding of approximately $220 million to be deferred to January 1, 2021.

33

Investments summary

Investments listing and income statement location

			Ownership	Carrying Value as of	Income Statement Location of
Investee	Country	Nature of Investment4	Interest	March 31, 2020	Equity Earnings
ELYSISTM Limited Partnership	Canada	Aluminum smelting technology	48.235%
Ma'aden Aluminium Company1	Saudi Arabia	Aluminum smelter	25.1%
Ma'aden Bauxite and Alumina Company1	Saudi Arabia	Bauxite mine and Alumina refinery	25.1%5
Subtotal Ma'aden and ELYSISTM				$585M	Other (income) expenses, net
Consorcio Serra do Facão	Brazil	Hydroelectric generation facility	34.97%
Energetica Barra Grande S.A.	Brazil	Hydroelectric generation facility	42.18%
Halco Mining, Inc.2	Guinea	Bauxite mine	45.0%5
Manicouagan Power Limited Partnership	Canada	Hydroelectric generation facility	40.0%
Mineração Rio do Norte S.A. (MRN)	Brazil	Bauxite mine	18.2%5
Pechiney Reynolds Quebec, Inc.3	Canada	Aluminum smelter	50.0%
Subtotal other				$474M	COGS
Total investments				$1,059M

1. Alcoa Corporation has an investment in a joint venture related to the ownership and operation of an integrated aluminum complex (bauxite mine, alumina refinery, and aluminum smelter) in Saudi Arabia. The joint venture is owned 74.9% by the Saudi Arabian Mining Company (known as "Ma'aden") and 25.1% by Alcoa Corporation.
2. Halco Mining, Inc. owns 100% of Boké Investment Company, which owns 51% of Compagnie des Bauxites de Guinée (CBG).
3. Pechiney Reynolds Quebec, Inc. owns a 50.1% interest in the Bécancour smelter in Quebec, Canada thereby entitling Alcoa Corporation to a 25.05% interest in the smelter. Through two wholly-owned Canadian subsidiaries, Alcoa Corporation also owns 49.9% of the Bécancour smelter.
4. Each of the investees either owns the facility listed or has an ownership interest in an entity that owns the facility listed.

5. A portion or all of each of these ownership interests are held by majority-owned subsidiaries that are part of AWAC.

34

Rigorous standard in place to manage tailings and residue

Tailings and residue impoundments management process and inventory

Robust and ongoing management process

• Established industry-leading standards over 25 years ago, reviewed regularly to incorporate updates
• Governance structure with global oversight; all Alcoa Impoundment Governance and Technical standards externally benchmarked and updated in 1Q20
• 2019 annual independent, third-party inspections of all Alcoa operated impoundments completed; inspections for non-operated facilities tracked for completion
• Facilities master planned, engineered, constructed, operated, maintained, closed in accordance with global standards; focused on progressively closing and rehabilitating inactive areas
• Led industry improvements including dry stacking and filtration technologies; residue filtration operational at Kwinana and Pinjarra alumina refineries
• International Council on Mining and Metals (ICMM) member, active in developing the Global Tailings Standard

Inventory of tailings dams & residue storage1

• No Alcoa operated upstream bauxite tailings dams
• 39 Alcoa operated upstream residue storage areas (RSAs)

		Alcoa operated		Minority-owned joint ventures
																	Tailings dams active
39															Tailings dams inactive
					27								RSAs active
	27										RSAs inactive
				4				3								18
								3
													8			12
							17				3
		12													2
																			1
Upstream	Non-upstream			Upstream Non-upstream

1. Information as of December 31, 2019. Inventory does not include 94 Alcoa operated and 17 minority joint venture other impoundments such as hydroelectric dams, fresh water

reservoirs, stormwater management, process water, process materials outside of bauxite residue and tailings, closed and remediated legacy location RSAs, and ash ponds.

35

Production and capacity information

Alcoa Corporation annual consolidated amounts as of March 31, 2020
Bauxite production, Mdmt		Alumina refining, kmt			Aluminum smelting, kmt
		2019
Mine	Country	Production		Facility	Country	Capacity	Curtailed		Facility	Country	Capacity	Curtailed
Darling Range	Australia	34.7		Kwinana	Australia	2,190	-		Portland	Australia	197	30
Juruti	Brazil	6.0		Pinjarra	Australia	4,234	-		São Luís (Alumar)	Brazil	268	268
Poços de Caldas	Brazil	0.3		Wagerup	Australia	2,555	-		Baie Comeau	Canada	280	-
Trombetas (MRN)	Brazil	2.2		Poços de Caldas	Brazil	390	214		Bécancour2	Canada	310	49
Boké (CBG)	Guinea	3.0		São Luís (Alumar)	Brazil	1,890	-		Deschambault	Canada	260	-
Al Ba'itha1	Saudi Arabia	1.2		San Ciprián	Spain	1,500	-		Fjarðaál	Iceland	344	-
Total		47.4		Total		12,759	214		Lista	Norway	94	-
				Ras Al Khair1	Saudi Arabia	452	-		Mosjøen	Norway	188	-
									San Ciprián	Spain	228	-
									Intalco3	U.S.	279	49
									Massena West	U.S.	130	-
									Warrick	U.S.	269	108
									Wenatchee	U.S.	146	146
									Total		2,993	650
									Ras Al Khair1	Saudi Arabia	186	-

1. The Company's proportionate share of earnings from its equity investment in the Saudi Arabian joint venture does not impact adjusted EBITDA.
2. On July 26, 2019, the Bécancour smelter began the restart of curtailed smelting capacity.
3. On April 22, 2020, Alcoa announced curtailment of the remaining 230,000 metric tons of smelting capacity at Intalco; expected completion second quarter of 2020.

36

Valuation framework

Valuation framework key considerations

LTM ending

3/31/2020 Adj. EBITDA excl.

special items

Business	Operations

Financial	Considerations

+

+

+

-

=

-

-

+

=

Bauxite	Economic value using market multiple of:	$498M
i.	AWAC joint venture, minus small portions of AWAC JV in Aluminum and
Alumina		Transformation	$918M
ii.	Ownership in certain mines and refineries outside the JV
	Economic value using market multiple of:
Aluminum	i.	Smelters, casthouses, rolling mill, and energy assets	$183M
	ii.	Smelters and casthouses restart optionality
Non-segment expenses	Economic value using market multiple of:	$89M
(income)	i.	Net corporate expenses and Transformation
Enterprise value
Noncontrolling interest	Implied value of noncontrolling interest in AWAC JV, based on Alumina Limited's observed enterprise value
Debt & debt-like items1	Book value of debt of $1.8B ($1.8B, >95% Alcoa), pension & OPEB net liabilities of $2.2B ($2.3B, >95%
Alcoa; U.S. contributions not tax deductible), environmental & ARO liabilities of $0.8B ($1.0B, ~80% Alcoa)

Cash & equity investments1	Cash position of $0.7B ($0.8B, ~85% Alcoa) plus carrying value of investments in the Ma´aden joint venture
and ELYSISTM of $0.5B ($0.6B, ~85% Alcoa)
Equity value

1. Dollar amounts reflect Alcoa Corporation's consolidated balance sheet values as of March 31, 2020. The "Alcoa" percentages exclude amounts attributable to Alcoa

Corporation's partner in the AWAC JV.

37

Adjusted EBITDA reconciliation

$M	1Q19	2Q19	3Q19	4Q19	FY19	1Q20
Net (loss) income attributable to Alcoa	$(199)	$(402)	$(221)	$(303)	$(1,125)	$80
Add:
Net income (loss) attributable to noncontrolling interest	141	109	74	(52)	272	59
Provision for income taxes	150	116	95	54	415	80
Other expenses (income), net	41	50	27	44	162	(132)
Interest expense	30	30	30	31	121	30
Restructuring and other charges, net	113	370	185	363	1,031	2
Depreciation, depletion and amortization	172	174	184	183	713	170
Adjusted EBITDA	448	447	374	320	1,589	289
Special items before tax and noncontrolling interest	19	8	14	26	67	32
Adjusted EBITDA excl. special items	$467	$455	$388	$346	$1,656	$321

Alcoa Corporation's definition of Adjusted EBITDA is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the
following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion,
and amortization. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Adjusted EBITDA
provides additional information with respect to Alcoa Corporation's operating performance and the Company's ability to meet its financial obligations. The Adjusted EBITDA
presented may not be comparable to similarly titled measures of other companies.	38

Free Cash Flow reconciliation

$M	1Q19	2Q19	3Q19	4Q19	1Q20
Cash from (used in) operations	$168	$82	$174	$262	$(90)
Capital expenditures	(69)	(89)	(87)	(134)	(91)
Free cash flow	99	(7)	87	128	(181)
Contributions from noncontrolling interest	20	1	20	10	-
Distributions to noncontrolling interest	(214)	(72)	(102)	(84)	(31)
Free cash flow less net distributions to noncontrolling interest	$(95)	$(78)	$5	$54	$(212)

Free Cash Flow and Free Cash Flow less net distributions to noncontrolling interest are non-GAAP financial measures. Management believes that these measures are
meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures and net distributions to
noncontrolling interest. Capital expenditures are necessary to maintain and expand Alcoa Corporation's asset base and are expected to generate future cash flows from
operations, while net distributions to noncontrolling interest are necessary to fulfill our obligations to our joint venture partners. It is important to note that Free Cash Flow
and Free Cash Flow less net distributions to noncontrolling interest do not represent the residual cash flows available for discretionary expenditures since other non-
discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.	39

Net Debt reconciliation

		1Q19			4Q19			1Q20
			Alcoa			Alcoa			Alcoa
$M	Cons.	NCI	Prop.	Cons.	NCI	Prop.	Cons.	NCI	Prop.
Short-term borrowings	$-	$-	$-	$-	$-	$-	$-	$-	$-
Long-term debt due within one year	1	-	1	1	-	1	1	-	1
Long-term debt, less amount due within one year	1,802	34	1,768	1,799	31	1,768	1,801	31	1,770
Total debt	1,803	34	1,769	1,800	31	1,769	1,802	31	1,771
Less: Cash and cash equivalents	1,017	238	779	879	167	712	829	139	690
Net debt	786	(204)	990	921	(136)	1,057	973	(108)	1,081
Plus: Net pension / OPEB liability	2,290	26	2,264	2,330	40	2,290	2,265	40	2,225
Adjusted net debt	$3,076	$(178)	$3,254	$3,251	$(96)	$3,347	$3,238	$(68)	$3,306

Net debt is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Alcoa Corporation's leverage position after considering available cash that could be used to repay outstanding debt. Adjusted net debt is also a non-GAAP financial measure. Management believes that this additional measure is meaningful to investors because it provides further insight into Alcoa Corporation's leverage position by including the Company's net pension/OPEB liability.

40

Days Working Capital

$M	1Q19	2Q19	3Q19	4Q19	1Q20
Receivables from customers	$758	$684	$596	$546	$570
Add: Inventories	1,799	1,767	1,649	1,644	1,509
Less: Accounts payable, trade	1,503	1,523	1,418	1,484	1,276
DWC working capital	$1,054	$928	$827	$706	$803
Sales	$2,719	$2,711	$2,567	$2,436	$2,381
Number of days in the quarter	90	91	92	92	91
Days Working Capital1	35	31	30	27	31

1. Days Working Capital = DWC working capital divided by (Sales / number of days in the quarter).

41

Annualized Return on Equity (ROE)

Reconciliation and calculation information

$M	1Q19	1Q20
			ROE % =
Numerator:
Net (loss) income attributable to Alcoa Corporation	$(199)	$80
Add: Special items1	156	(122)
ROE Adjusted Net Income YTD	$(43)	$(42)	1Q19
ROE Adj. Net Income multiplied by four	$(172)	$(168)
ROE % =
Denominator2:
Total assets	$15,956	$13,651
Less: Total Liabilities	8,873	7,840
Less: Noncontrolling Interest	1,926	1,536	1Q20
Shareholders' Equity2	$5,157	$4,275	ROE % =
ROE	-3.3%	-3.9%

(Net Loss/Income Attributable to Alcoa + Special Items)

X 100

(Total Assets - Total Liabilities - Noncontrolling Interest)2

(-$199 + $156) x 4

X 100 = -3.3%

($15,956 - $8,873 - $1,926)

($80 - $122) x 4

X 100 = -3.9%

($13,651 - $7,840 - $1,536)

1. Special items include provisions for interest expense, income taxes, and noncontrolling interest.

2. Denominator calculated using quarter ending balances.

42

Annualized Return on Capital (ROC)

Reconciliation and calculation information

$M	1Q19	1Q20
			ROC % =
Numerator:
Net (loss) income attributable to Alcoa Corporation	$(199)	$80
Add: Net income attributable to noncontrolling interest	141	59
Add: Provision for income taxes	150	80	1Q19
Profit before taxes (PBT)	92	219
ROC % =
Add: Interest expense	30	30
Less: Interest income	5	3
Add: Special items1	123	(135)
ROC earnings before taxes	$240	$111
ROC earnings before taxes multiplied by four	$960	$444	1Q20
ROC earnings after fixed tax rate of 35%	$624	$289	ROC % =
Denominator2:
Total assets	$15,956	$13,651
Less: Cash, cash equivalents, restricted cash and short-term investments	1,022	832
Less: Current liabilities	2,803	2,223
Add: Long-term debt due within one year and short-term borrowings	1	1
Capital Base2	$12,132	$10,597
ROC	5.1%	2.7%

1. Special items exclude interest expense, income taxes, and noncontrolling interest.
2. Denominator calculated using quarter ending balances.
3. Interest expense less interest income.
4. Fixed tax rate of 35%.
5. Defined as cash, cash equivalents, restricted cash and short-term investments.

(PBT + net interest3 + special items1) x 4 x (1 - fixed tax rate4)

X 100

(Total assets - cash5 - current liabilities + short-term debt)

(($92 + $25 + $123) x 4) x (1 - 0.35)

X 100 = 5.1%

($15,956 - $1,022 - $2,803 + $1)

(($219 + $27 - $135 ) x 4) x (1 - 0.35)

X 100 = 2.7%

($13,651 - $832 - $2,223 + $1)

43

Glossary of terms

Abbreviations listed in alphanumeric order

Abbreviation	Description
% pts	Percentage points
1H##	Six months ending June 30
1Q##	Three months ending March 31
2H##	Six months ending December 31
2Q##	Three months ending June 30
3Q##	Three months ending September 30
4Q##	Three months ending December 31
Adj.	Adjusted
API	Alumina Price Index
ARO	Asset retirement obligations
AUD	Australian dollar
AWAC	Alcoa World Alumina and Chemicals
B	Billion
BRL	Brazilian real
CAD	Canadian dollar
CIF	Cost, insurance and freight
CO2e	Carbon dioxide equivalent
COGS	Cost of goods sold
Cons.	Consolidated
DoC	Days of consumption
dmt	Dry metric ton
DWC	Days working capital
EBITDA	Earnings before interest, taxes, depreciation and amortization
Elims.	Eliminations
EPS	Earnings per share
ERISA	Employee Retirement Income Security Act of 1974
EUR	Euro
Est.	Estimated
excl. or ex.	Excluding

Abbreviation	Description
FY##	Twelve months ending December 31
GAAP	Accounting principles generally accepted in the United States of America
GWh	Gigawatt hour
ISK	Icelandic krona
JV	Joint venture
kmt	Thousand metric tons
LME	London Metal Exchange
LTM	Last twelve months
M	Million
Mdmt	Million dry metric tons
Mmt	Million metric tons
Mt	Metric ton
N/A	Not applicable
NCI	Noncontrolling interest
NI	Net income
NOK	Norwegian krone
OPEB	Other postretirement employee benefits
PBT	Profit before taxes
Prop.	Proportional
R&D	Research and development
ROC	Return on capital
ROW	Rest of world
SEC	Securities and Exchange Commission
SG&A	Selling, general administrative and other
TBD	To be determined
U.S.	United States of America
USD	United States dollar
USW	United Steelworkers
YTD	Year to date	44