8-K

.31 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): November 9, 2017

ALERIS CORPORATION

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

Delaware 
(State or other jurisdiction
of incorporation) 333-185443
(Commission File Number) 27-1539594 
(IRS Employer
Identification No.)

25825 Science Park Drive, Suite 400, Cleveland, Ohio 44122
(Address of Principal Executive Offices, including Zip Code)

(216) 910-3400
(Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company	o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with an new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.	o

Item 2.02     Results of Operations and Financial Condition.

On November 9, 2017, we issued a press release announcing our financial results for the three and nine months endedSeptember 30, 2017. A copy of the press release is furnished hereto as Exhibit 99.1.

The information contained in Item 2.02 of this Current Report and the attached exhibits shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01     Regulation FD Disclosure.

A copy of management’s presentation materials for the November 10, 2017 earnings conference call is furnished hereto as Exhibit 99.2.

The information contained in Item 7.01 of this Current Report and the attached exhibits shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press release dated November 9, 2017.

99.2 November 10, 2017 Management Presentation Materials.

SIGNATURES

According to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ALERIS CORPORATION
Date: November 9, 2017
	/s/ I. Timothy Trombetta
	By: I. Timothy Trombetta
	Its: Vice President and Controller

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated November 9, 2017.
99.2	November 10, 2017 Management Presentation Materials.

EX-99.1

     For Immediate Release

November 9, 2017

Aleris Reports Third Quarter2017 Results

CLEVELAND, Ohio – November 9, 2017 – Aleris Corporation today reported results for the three and nine months endedSeptember 30, 2017.

Third Quarter Summary

▪ Net loss of $66 million compared to net loss of $22 million in the third quarter of 2016

▪ Cash from operations of $43 million compared $2 million in the third quarter of 2016

▪ Adjusted EBITDA of $46 million compared to $53 million in the third quarter of 2016

▪ Successfully completed planned complex Lewisport outage

▪ CALP I and new wide cold mill in production mode; CALP II commissioning well underway

▪ Strong North America operating performance and productivity as well as favorable metal environment more than offset significant impact of Lewisport outage

▪ Europe unfavorably impacted by continued aerospace and automotive headwinds and a weaker U.S. dollar

▪ Liquidity of approximately $281 million as of September 30, 2017

Outlook

▪ Fourth quarter 2017 segment income and Adjusted EBITDA expected to be lower than prior year based on continuation of current short-term trends

▪ Commercial shipments from first Lewisport CALP line have recently commenced and will show meaningful ramp up in 2018 based on contracted volumes; residual outage effect complete in the fourth quarter

▪ Improved metal spreads expected to continue to benefit North America

▪ We expect building and construction fundamentals to remain healthy; fourth quarter volumes are expected to be lower due to delinquency reductions in the prior year

▪ Aerospace softness, due to continued supply chain destocking, and automotive model launch delays will continue to impact Europe volumes in the fourth quarter; trends reversing sequentially going into 2018

▪ Weaker U.S. dollar will negatively impact Europe results in the fourth quarter

▪ Strengthening long-term global aerospace presence

▪ We expect liquidity to benefit from customer capacity reservation fees in the fourth quarter or early in 2018

“The third quarter marked a major turning point in our strategic realignment,” Sean Stack, Aleris chairman and CEO said. “Successfully completing our very complex Lewisport outage and expansion allows us to transition from planning, building, commissioning and spending to production and revenue generation. Solid fundamentals, strategic commercial wins and recent order patterns give us confidence going into 2018 that the disappointing short term trends in aerospace, European automotive and building and construction are temporary.”

1

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
(Dollars in millions, metric tons in thousands)	(unaudited)
Metric tons of finished product shipped	199			214			617			640
Revenue	$	713		$	683		$	2,163		$	2,051
Commercial margin (1)	$	289		$	303		$	908		$	909
Segment income	$	53		$	62		$	187		$	190
Net loss	$	(66	)	$	(22	)	$	(103	)	$	(41	)
Adjusted EBITDA (1)	$	46		$	53		$	164		$	162

(1) See the attached tables for a reconciliation to the applicable GAAP measure.

Third Quarter2017 Results

Net loss was $66 million in the third quarter of 2017 compared to $22 million in the third quarter of 2016. Adjusted EBITDA was $46 million in the third quarter of 2017 compared to $53 million in the third quarter of 2016. Third quarter net loss and Adjusted EBITDA were impacted by the following:

▪ lower volumes decreased Adjusted EBITDA approximately $8 million. The volume reduction resulted from an extended scheduled outage at the Lewisport hot mill in connection with the North America autobody sheet (“ABS”) project, destocking in the aerospace supply chain and delayed launches of automotive programs. In addition, prior year building and construction volumes benefited as delinquent orders following unexpected outages in 2016 began to be filled;

▪ wage inflation and higher natural gas costs more than offset productivity improvements, decreasing Adjusted EBITDA approximately $2 million;

▪ a weaker U.S. dollar decreased Adjusted EBITDA approximately $1 million;

▪ improved rolling margins increased Adjusted EBITDA approximately $3 million; and

▪ favorable metal spreads resulting from increased aluminum prices and improved scrap availability in North America, partially offset by higher hardener costs and the increased purchases of external aluminum slab in Europe, increased Adjusted EBITDA approximately $1 million.

In addition to the factors that impacted Adjusted EBITDA, net loss was also unfavorably affected by the following:

▪ a $28 million unfavorable change in unrealized derivative losses ($19 million of unrealized losses in the third quarter of 2017 compared to $9 million of unrealized gains in the third quarter of 2016);

▪ a $13 million increase in interest expense resulting primarily from the additional 9½% Senior Secured Notes issued in 2017 and decreased capitalized interest;

▪ a $9 million increase in start-up costs resulting primarily from our North America ABS project. The increase was primarily the result of the outage at our Lewisport facility; and

▪ a $4 million increase in depreciation expense, as assets related to the North America ABS project began to be placed in service.

These unfavorable changes to net loss were partially offset by the following:

▪ an $11 million favorable change in the provision for income taxes;

2

▪ a $5 million favorable change in loss from discontinued operations, as a charge was taken in the prior year for our estimate of costs related to the indemnification of the buyer of the recycling and specification alloys business for certain potential future damages; and

▪ a $3 million decrease in business development costs.

In the third quarter of 2017, capital expenditures were $57 million as compared to $74 million in the third quarter of 2016. The majority of the capital expenditures were for the North America ABS project at our Lewisport, Kentucky facility and related spending to upgrade critical equipment and capabilities at the facility. That project continues to progress on schedule and ABS shipments commenced in the fourth quarter of 2017.

As of September 30, 2017, Aleris had liquidity of approximately $281 million, which consisted of approximately $206 million of availability under our 2015 ABL Facility, $72 million of cash on hand and $4 million of cash restricted for the payment of the China loan facility. Liquidity does not include $80 million of customer capacity reservation fees, the benefit of which we expect to receive in the fourth quarter or early in 2018.

Capital expenditures during the fourth quarter of 2017 are expected to be lower than the fourth quarter of 2016. We expect 2017 capital spending of approximately $230 million to $240 million, before capitalized interest which includes $175 million spent through the third quarter. We expect 2018 capital spending of approximately $125 million, before capitalized interest.

North America

North America segment income increased to $20 million in the third quarter of 2017 from $18 million in the third quarter of 2016. Segment Adjusted EBITDA increased to $21 million in the third quarter of 2017 from $18 million in the third quarter of 2016. Performance drivers for segment income and segment Adjusted EBITDA included:

▪ favorable scrap spreads resulting from rising aluminum prices and improved scrap availability increased segment Adjusted EBITDA approximately $4 million;

▪ improved rolling margins increased segment Adjusted EBITDA approximately $3 million;

▪ a 10 percent reduction in volumes decreased segment Adjusted EBITDA approximately $4 million. Building and construction volumes decreased 13 percent resulting from uneven demand and because the prior year benefited from the shipment of delinquent orders following unexpected outages earlier in 2016. Distribution volumes decreased 9 percent as a result of the planned Lewisport outage. Subsequent to the outage, which included an unprecedented 60 day standstill of the facility’s hot mill, the Lewisport facility has recently begun to ship autobody sheet and wide non-autobody sheet to customers using the re-engineered hot mill as well as the new wide cold mill and the first of two continuous annealing lines; and

▪ productivity gains resulting from improved operating performance continued to benefit the segment in the quarter and offset $4 million of wage inflation and higher natural gas costs.

In addition to the factors above, segment income was impacted by a $1 millionunfavorable variance in metal price lag.

3

Europe

Europe segment income was $28 million in the third quarter of 2017 compared to $41 million in the third quarter of 2016. Segment Adjusted EBITDA was $29 million in the third quarter of 2017 compared to $42 million in the third quarter of 2016. Performance drivers for segment income and segment Adjusted EBITDA included:

▪ a 4 percent reduction in volumes decreased segment Adjusted EBITDA approximately $5 million. Continued supply chain destocking resulted in a 16 percent decrease in aerospace volumes and a shift in program timing led to a 5 percent decrease in automotive volumes. These decreases were partially offset by a 6 percent increase in heat exchanger volumes;

▪ higher costs for hardeners used in the production of aluminum alloys and an increase in externally purchased aluminum slab decreased segment Adjusted EBITDA approximately $3 million;

▪ productivity gains, which were limited due to lower volumes, were unable to offset inflation, resulting in decreased segment Adjusted EBITDA of approximately $2 million;

▪ the net impact of currency changes reduced segment Adjusted EBITDA by approximately $1 million; and

▪ improved rolling margins increased segment Adjusted EBITDA approximately $1 million.

In addition to the factors above, segment income was impacted by a $1 millionfavorable variance in metal price lag.

Asia Pacific

Our Asia Pacific segment reported segment income and segment Adjusted EBITDA of $4 million in the third quarter of 2017 compared to segment income and segment Adjusted EBITDA of $3 million in the third quarter of 2016. Performance drivers for segment income and segment Adjusted EBITDA included:

▪ an increase in volumes increased segment Adjusted EBITDA approximately $1 million;

▪ lower rolling margins decreased segment Adjusted EBITDA approximately $1 million; and

▪ productivity gains from continued strong operational performance improved segment Adjusted EBITDA approximately $1 million.

Potential Acquisition of Aleris Corporation

On August 29, 2016, Aleris Corporation entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Zhongwang USA LLC (“Zhongwang USA”), Zhongwang Aluminum Corporation, a direct, wholly owned subsidiary of Zhongwang USA (“Merger Sub”), and the stockholders representative party thereto, pursuant to which Merger Sub will be merged with and into Aleris Corporation, on the terms and subject to the conditions set forth in the Merger Agreement, with Aleris Corporation as the surviving entity (the “Merger”). Upon consummation of the Merger, Aleris Corporation is expected to be a direct, wholly owned subsidiary of Zhongwang USA, which is expected to be indirectly beneficially owned by entities affiliated with Mr. Liu Zhongtian and other investors and financial institutions. Zhongwang USA has agreed to pay approximately $1.1 billion in cash, subject to adjustment, for the equity of Aleris Corporation and to assume certain of the Company’s outstanding indebtedness.

The Merger is subject to customary regulatory approvals, including the receipt of approval from the Committee on Foreign Investment in the United States (“CFIUS”), and other customary closing conditions. The Merger is not subject to a financing condition. As previously disclosed, following the

4

initial filing of the CFIUS voluntary notice by Aleris Corporation and Zhongwang USA, CFIUS identified national security concerns with the Merger and invited Aleris Corporation and Zhongwang USA to withdraw and refile their notice in order to obtain additional time to provide additional information, including possible measures to mitigate these concerns. In February 2017, Aleris Corporation and Zhongwang USA withdrew their notice and refiled in the second quarter of 2017. CFIUS continues to raise national security concerns with the Merger and, as a result, Aleris Corporation and Zhongwang USA have withdrawn their most recent notice seeking approval of the transaction from CFIUS and continue discussions concerning the transaction. However, there can be no assurance that the Merger will be consummated. By its terms, the Merger Agreement would have automatically terminated on August 31, 2017. Through a series of extensions, the parties have currently agreed to extend the termination date of the Merger Agreement so that the Merger Agreement automatically terminates on November 12, 2017.

Year-to-Date Results

Key financial highlights for the nine months endedSeptember 30, 2017 include:

▪ Revenues of $2,163 million compared to $2,051 million for the prior year period. The increase of 5 percent was primarily attributable to higher average aluminum prices included in our invoiced prices and improved rolling margins. These increases were partially offset by lower volumes which were significantly impacted by the extended Lewisport outage.

▪ Net loss of $103 million in the current year compared to a net loss of $41 million in 2016. The change resulted primarily from increased interest expense, increased start-up costs and an unfavorable change in unrealized derivative gains and losses. These increased expenses were partially offset by losses on the extinguishment of debt incurred in 2016 that did not recur.

▪ Adjusted EBITDA increased to $164 million in the current year from $162 million in 2016. Favorable year-over-year metal spreads and improved rolling margins were partially offset by lower volumes, higher labor, natural gas and repair and maintenance costs and the unfavorable impact that a weaker dollar had on our Europe segment.

▪ Cash used by operating activities totaled $33 million in the current year compared to cash provided by operating activities of $47 million in 2016. The current year cash used by operating activities relates to $7 million of cash from earnings offset by cash used to fund a $39 million increase in net operating assets. The increase in operating assets was primarily due to higher inventory resulting from increased aluminum prices.

▪ Capital expenditures decreased to $175 million in the current year compared to $296 million in 2016. The majority of the capital expenditures were for the North America ABS project and related spending to upgrade critical equipment and capabilities at our Lewisport facility.

Outlook

As discussed above, we estimate that segment income and Adjusted EBITDA for the fourth quarter of 2017 will be lower than the fourth quarter of 2016. The trends of lower aerospace, European automotive and building and construction volumes are expected to continue into the fourth quarter. However, the customer order activity in aerospace and automotive are trending positively, and we do expect sequential gains in 2018. Segment income in the fourth quarter will be dependent, in part, upon changing aluminum prices and the resulting metal price lag. In addition, pre-tax income will be unfavorably impacted by higher start-up costs and depreciation expense associated with the North America ABS project and higher

5

interest expense associated with the additional $250 million of 9½% Senior Secured Notes issued in February 2017.

In 2018, we expect a significant increase in shipments from our Lewisport facility as the planned production outage described above was a one-time event. Lewisport’s autobody sheet products are expected to generate higher margins than the facility’s traditional distribution products. As a result, we expect improved margins and increased revenues from Lewisport in 2018. A large portion of the production capacity from that facility has been committed via long-term customer contracts. We expect that the slowdown in aerospace will reverse in 2018 driven by higher aircraft production rates and benefits from our global, long-term customer relationships. Additionally, European automotive demand should benefit from new model launches and less Europe capacity used to support Lewisport’s ramp up in 2018. Also, we expect the conditions in North America building and construction should continue into 2018.

Conference Call and Webcast Information

Aleris will hold a conference call and webcast on November 9, 2017 at 9:00 a.m. Eastern Time. Sean M. Stack, chairman and chief executive officer, and Eric M. Rychel, executive vice president, chief financial officer and treasurer, will host the call to discuss results.

The webcast can be accessed through the Company’s website, www.aleris.com. The conference call can be accessed by dialing 1-877-870-4263 or 1-412-317-0790 (for international callers) and asking for the “Aleris call”. A replay of the call will be posted on the Company’s website in the Investor Relations section.

Forward-Looking Statements

Certain statements contained in this press release are “forward-looking statements” within the meaning of the federal securities laws. Statements under headings with “Outlook” in the title and statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “will,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “look forward to,” “intend” and similar expressions intended to connote future events and circumstances constitute forward-looking statements. Forward-looking statements include statements about, among other things, the pending acquisition of Aleris Corporation by Zhongwang USA LLC (the “Merger”), future costs and prices of commodities, production volumes, industry trends, anticipated cost savings, anticipated benefits from new products, facilities, acquisitions or divestitures, projected results of operations, achievement of production efficiencies, capacity expansions, future prices and demand for our products and estimated cash flows and sufficiency of cash flows to fund capital expenditures. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the following: (1) our ability to successfully implement our business strategy; (2) the success of past and future acquisitions or divestitures; (3) the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-uses, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers’ industries; (4) increases in the cost, or limited availability, of raw materials and energy; (5) our ability to enter into effective metal, energy and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially London Metal Exchange-based aluminum prices; (6) our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt obligations; (7) competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry

6

end-uses we serve; (8) our ability to retain the services of certain members of our management; (9) the loss of order volumes from any of our largest customers; (10) our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us; (11) our ability to fulfill our substantial capital investment requirements; (12) risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors; (13) variability in general economic conditions on a global or regional basis; (14) current environmental liabilities and the cost of compliance with and liabilities under health and safety laws; (15) labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; (16) our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur; (17) our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing or the failure of financial institutions to fulfill their commitments to us under committed facilities; (18) our ability to access credit or capital markets; (19) the possibility that we may incur additional indebtedness in the future; (20) limitations on operating our business as a result of covenant restrictions under our indebtedness, and our ability to pay amounts due under the Senior Notes; (21) risks related to the Merger, including the possibility that the Merger may not be consummated or that, if the Merger does close, our stockholders may not realize the anticipated benefits from the Merger; and (22) other factors discussed in our filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” contained therein. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether in response to new information, futures events or otherwise, except as otherwise required by law.

Non-GAAP Financial Measures

In addition to the results reported in accordance with GAAP, this press release includes information regarding certain non-GAAP financial measures. Management uses EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin (collectively, the “Non-GAAP Measures”) as performance metrics and believes these measures provide additional information commonly used by the holders of the Senior Notes and parties to our 2015 ABL Facility with respect to the ongoing performance of our underlying business activities, as well as our ability to meet our future debt service, capital expenditures and working capital needs. In addition, EBITDA with certain adjustments is a component of certain covenants under the indentures governing the Senior Notes. Adjusted EBITDA, including the impact of metal price lag, is a component of certain financial covenants under the credit agreement governing the 2015 ABL Facility. Management also uses commercial margin as a performance metric and believes that it provides useful information regarding the performance of our segments because it measures the estimated price at which we sell our aluminum products above the hedged cost of the metal and the effects of metal price lag, thereby reflecting the value-added components of our commercial activities independent of aluminum prices which we cannot control.

Our EBITDA calculations represent net income and loss attributable to Aleris Corporation before interest income and expense, provision for and benefit from income taxes, depreciation and amortization, and income from discontinued operations, net of tax. Adjusted EBITDA is defined as EBITDA excluding metal price lag, unrealized gains and losses on derivative financial instruments, restructuring charges, the impact of recording inventory and other items at fair value through purchase accounting, currency exchange gains and losses on debt, stock-based compensation expense, start-up costs and certain other gains and losses. Segment Adjusted EBITDA represents Adjusted EBITDA on a per segment basis. EBITDA as defined in the indentures governing the Senior Notes also limits the amount of adjustments for cost savings, operational improvement and synergies for the purpose of determining our compliance

7

with such covenants. Adjusted EBITDA as defined under the 2015 ABL Facility also limits the amount of adjustments for restructuring charges and requires additional adjustments be made if certain annual pension funding levels are exceeded. Commercial margin represents revenues less the hedged cost of metal and the effects of metal price lag.

The Non-GAAP Measures, as we use them, may not be comparable to similarly titled measures used by other companies. We calculate the Non-GAAP Financial Measures by eliminating the impact of a number of items we do not consider indicative of our ongoing operating performance, and certain other items. You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. However, the Non-GAAP Financial Measures are not financial measurements recognized under GAAP, and when analyzing our operating performance, investors should use the Non-GAAP Financial Measures in addition to, and not as an alternative for, net income and loss attributable to Aleris Corporation, operating income and loss, or any other performance measure derived in accordance with GAAP, or in addition to, and not as an alternative for, cash flow from operating activities as a measure of our liquidity. The Non-GAAP Financial Measures have limitations as analytical tools, and they should not be considered in isolation, or as a substitute for, or superior to, our measures of financial performance prepared in accordance with GAAP.

Website Posting

We use our investor website (investor.aleris.com) as a channel of distribution of Company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The content of our website is not, however, a part of this release.

About Aleris

Aleris is a privately held, global leader in aluminum rolled products production. Headquartered in Cleveland, Ohio, Aleris operates 13 production facilities in North America, Europe and Asia. For more information, visit www.aleris.com.

……………………………………………………………………………………………………………

The information disclosed in this press release is believed by Aleris to be accurate as of the date hereof. Aleris expressly disclaims any duty to update the information contained in this press release. Persons engaging in any transactions with Aleris or in Aleris’s securities are cautioned that there may exist other material information regarding Aleris that is not publicly available.

Investor Contact:Eric M. Rychel

Phone: 216-910-3229

Media Contact:Shannon Bennett

Phone: 216-910-3664

8

Aleris Corporation

Consolidated Statements of Operations

(unaudited)

(in millions)

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Revenues	$	712.8		$	683.4		$	2,163.2		$	2,050.9
Cost of sales	675.2			610.6			1,954.9			1,826.0
Gross profit	37.6			72.8			208.3			224.9
Selling, general and administrative expenses	49.5			58.8			153.6			159.3
Restructuring charges	0.9			0.3			2.1			1.8
Losses on derivative financial instruments	14.9			0.2			30.6			2.8
Other operating expense, net	2.0			1.0			4.0			2.5
Operating (loss) income	(29.7		)	12.5			18.0			58.5
Interest expense, net	32.0			19.2			90.4			58.4
Other expense (income), net	2.4			(2.0		)	5.8			6.0
Loss before income taxes	(64.1		)	(4.7		)	(78.2		)	(5.9		)
Provision for income taxes	1.6			12.3			25.1			30.5
Loss from continuing operations	(65.7		)	(17.0		)	(103.3		)	(36.4		)
Loss from discontinued operations, net of tax	—			(4.6		)	—			(4.6		)
Net loss	$	(65.7	)	$	(21.6	)	$	(103.3	)	$	(41.0	)

9

Aleris Corporation

Operating and Segment Information

(unaudited)

(in millions)

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Segment income:
North America	$	19.9		$	18.1		$	75.2		$	69.8
Europe	28.4			40.7			101.7			113.8
Asia Pacific	4.3			2.8			10.0			6.2
Total segment income	52.6			61.6			186.9			189.8
Depreciation and amortization	(30.5		)	(26.2		)	(82.0		)	(78.8		)
Other corporate general and administrative expenses	(8.9		)	(14.8		)	(32.1		)	(39.5		)
Restructuring charges	(0.9		)	(0.3		)	(2.1		)	(1.8		)
Interest expense, net	(32.0		)	(19.2		)	(90.4		)	(58.4		)
Unallocated (losses) gains on derivative financial instruments	(18.4		)	8.8			(1.0		)	23.7
Unallocated currency exchange losses	(2.0		)	(0.5		)	(3.7		)	(1.2		)
Start-up costs	(22.8		)	(14.1		)	(52.6		)	(30.4		)
Loss on extinguishment of debt	—			—			—			(12.6		)
Other (expense) income, net	(1.2		)	—			(1.2		)	3.3
Loss before income taxes	$	(64.1	)	$	(4.7	)	$	(78.2	)	$	(5.9	)

10

Aleris Corporation

Operating and Segment Information

(unaudited)

(Dollars in millions, except per ton measures, metric tons in thousands)

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Metric tons of finished product shipped:
North America	115.3			127.5			361.9			376.7
Europe	78.2			81.5			240.4			250.9
Asia Pacific	7.1			6.6			19.4			16.9
Intra-entity shipments	(1.8		)	(1.9		)	(4.5		)	(4.5		)
Total metric tons of finished product shipped	198.8			213.7			617.2			640.0
Revenues:
North America	$	364.4		$	358.6		$	1,129.0		$	1,054.3
Europe	324.3			304.8			969.2			940.9
Asia Pacific	32.2			29.2			87.1			75.7
Intra-entity revenues	(8.1		)	(9.2		)	(22.1		)	(20.0		)
Consolidated revenues	$	712.8		$	683.4		$	2,163.2		$	2,050.9
Commercial margin(1):
North America	$	141.9		$	145.8		$	449.6		$	435.0
Europe	131.8			142.7			418.3			437.4
Asia Pacific	14.6			14.1			39.8			37.0
Total commercial margin(2)	$	288.6		$	302.6		$	908.1		$	909.4
Commercial margin per metric ton shipped:
North America	$	1,231.0		$	1,143.4		$	1,242.4		$	1,154.7
Europe	1,686.4			1,749.5			1,740.2			1,743.4
Asia Pacific	2,061.4			2,123.0			2,050.0			2,188.3
Segment Adjusted EBITDA(1):
North America	$	21.4		$	18.2		$	81.1		$	67.2
Europe	28.5			41.7			101.2			116.9
Asia Pacific	3.7			2.8			8.3			6.2
Corporate	(8.1		)	(9.4		)	(26.9		)	(28.0		)
Total Adjusted EBITDA	$	45.5		$	53.3		$	163.7		$	162.3
Segment Adjusted EBITDA per metric ton shipped:
North America	$	185.8		$	142.7		$	224.1		$	178.4
Europe	364.7			511.7			420.8			466.0
Asia Pacific	525.5			422.8			425.0			367.9
Aleris Corporation	229.1			249.4			265.1			253.7
(1) See the following tables for a reconciliation to the applicable GAAP measure.
(2) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

11

Aleris Corporation

Consolidated Balance Sheet

(unaudited)

(in millions, except share and per share data)

ASSETS	September 30, 2017			December 31, 2016
Current Assets
Cash and cash equivalents	$	71.9		$	55.6
Accounts receivable (net of allowances of $6.6 and $7.6 at September 30, 2017 and December 31, 2016, respectively)	297.7			218.7
Inventories	620.7			538.9
Prepaid expenses and other current assets	39.5			33.4
Total Current Assets	1,029.8			846.6
Property, plant and equipment, net	1,467.0			1,346.0
Intangible assets, net	35.2			36.8
Deferred income taxes	91.9			88.3
Other long-term assets	69.9			72.2
Total Assets	$	2,693.8		$	2,389.9
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	297.1		$	246.6
Accrued liabilities	215.4			201.4
Current portion of long-term debt	15.6			27.7
Total Current Liabilities	528.1			475.7
Long-term debt	1,694.4			1,438.5
Deferred income taxes	17.1			2.8
Accrued pension benefits	171.6			158.4
Accrued postretirement benefits	32.9			34.2
Other long-term liabilities	66.5			63.7
Total Long-Term Liabilities	1,982.5			1,697.6
Stockholders’ Equity
Common stock; par value $.01; 45,000,000 shares authorized and 31,998,284 and 31,904,250 shares issued at September 30, 2017 and December 31, 2016, respectively	0.3			0.3
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued	—			—
Additional paid-in capital	428.2			428.0
Retained (deficit) earnings	(96.1		)	11.8
Accumulated other comprehensive loss	(149.2		)	(223.5		)
Total Equity	183.2			216.6
Total Liabilities and Equity	$	2,693.8		$	2,389.9

12

Aleris Corporation

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Operating activities
Net loss	$	(65.7	)	$	(21.6	)	$	(103.3	)	$	(41.0	)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Depreciation and amortization	30.5			26.2			82.0			78.8
(Benefit from) provision for deferred income taxes	(0.5		)	7.3			13.9			15.3
Stock-based compensation expense	0.4			1.8			1.5			5.2
Unrealized losses (gains) on derivative financial instruments	18.8			(8.8		)	1.5			(23.6		)
Amortization of debt issuance costs	0.7			1.4			2.1			4.3
Loss on extinguishment of debt	—			—			—			12.6
Net loss on sale of discontinued operations	—			4.6			—			4.6
Other	4.2			1.7			9.1			4.4
Changes in operating assets and liabilities:
Change in accounts receivable	7.6			(6.9		)	(60.2		)	(60.2		)
Change in inventories	5.3			(13.3		)	(53.0		)	(9.5		)
Change in other assets	0.2			(2.7		)	6.2			0.7
Change in accounts payable	11.5			1.1			35.8			47.2
Change in accrued liabilities	29.5			11.3			31.9			7.8
Net cash provided (used) by operating activities	42.5			2.1			(32.5		)	46.6
Investing activities
Payments for property, plant and equipment	(56.9		)	(73.6		)	(174.9		)	(295.7		)
Other	(1.3		)	(0.1		)	(2.5		)	(1.2		)
Net cash used by investing activities	(58.2		)	(73.7		)	(177.4		)	(296.9		)
Financing activities
Proceeds from revolving credit facilities	100.8			65.1			401.7			200.1
Payments on revolving credit facilities	(62.8		)	(25.9		)	(429.2		)	(61.7		)
Proceeds from senior secured notes, inclusive of premiums and discounts	—			—			263.8			540.4
Payments on senior notes, including premiums	—			—			—			(443.8		)
Net payments on other long-term debt	(1.4		)	(5.8		)	(5.5		)	(6.7		)
Debt issuance costs	(0.7		)	(0.2		)	(2.5		)	(3.5		)
Other	(0.2		)	(0.2		)	(1.5		)	(0.7		)
Net cash provided by financing activities	35.7			33.0			226.8			224.1
Effect of exchange rate differences on cash, cash equivalents and restricted cash	0.8			0.2			3.0			0.5
Net increase (decrease) in cash, cash equivalents and restricted cash	20.8			(38.4		)	19.9			(25.7		)
Cash, cash equivalents and restricted cash at beginning of period	54.7			74.9			55.6			62.2
Cash, cash equivalents and restricted cash at end of period	$	75.5		$	36.5		$	75.5		$	36.5
Cash and cash equivalents	$	71.9		$	36.5		$	71.9		$	36.5
Restricted cash (included in “Other current assets”)	3.6			—			3.6			—
Cash, cash equivalents and restricted cash	$	75.5		$	36.5		$	75.5		$	36.5

13

Aleris Corporation

Reconciliation of Adjusted EBITDA to

Net Loss and Cash Flows Provided (Used) by Operating Activities

(unaudited)

(in millions)

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Adjusted EBITDA	$	45.5		$	53.3		$	163.7		$	162.3
Unrealized (losses) gains on derivative financial instruments	(18.8		)	8.8			(1.5		)	23.6
Restructuring charges	(0.9		)	(0.3		)	(2.1		)	(1.8		)
Unallocated currency exchange losses on debt	(1.8		)	(0.4		)	(3.1		)	(1.0		)
Stock-based compensation expense	(0.4		)	(1.8		)	(1.5		)	(5.2		)
Start-up costs	(22.8		)	(14.1		)	(52.6		)	(30.4		)
Unfavorable metal price lag	(1.0		)	(1.2		)	(3.6		)	(0.6		)
Loss on extinguishment of debt	—			—			—			(12.6		)
Other	(1.4		)	(3.6		)	(5.1		)	(3.0		)
EBITDA	(1.6		)	40.7			94.2			131.3
Interest expense, net	(32.0		)	(19.2		)	(90.4		)	(58.4		)
Provision for income taxes	(1.6		)	(12.3		)	(25.1		)	(30.5		)
Depreciation and amortization	(30.5		)	(26.2		)	(82.0		)	(78.8		)
Loss from discontinued operations, net of tax	—			(4.6		)	—			(4.6		)
Net loss	(65.7		)	(21.6		)	(103.3		)	(41.0		)
Depreciation and amortization	30.5			26.2			82.0			78.8
Provision for deferred income taxes	(0.5		)	7.3			13.9			15.3
Stock-based compensation expense	0.4			1.8			1.5			5.2
Unrealized losses (gains) on derivative financial instruments	18.8			(8.8		)	1.5			(23.6		)
Amortization of debt issuance costs	0.7			1.4			2.1			4.3
Loss on extinguishment of debt	—			—			—			12.6
Net loss on sale of discontinued operations	—			4.6			—			4.6
Other	4.2			1.7			9.1			4.4
Change in operating assets and liabilities:
Change in accounts receivable	7.6			(6.9		)	(60.2		)	(60.2		)
Change in inventories	5.3			(13.3		)	(53.0		)	(9.5		)
Change in other assets	0.2			(2.7		)	6.2			0.7
Change in accounts payable	11.5			1.1			35.8			47.2
Change in accrued liabilities	29.5			11.3			31.9			7.8
Net cash provided (used) by operating activities	$	42.5		$	2.1		$	(32.5	)	$	46.6

14

Aleris Corporation

Reconciliation of Segment Income to

Segment Adjusted EBITDA

(unaudited)

(in millions)

	For the three months ended					For the nine months ended
	September 30, 2017			September 30, 2016		September 30, 2017			September 30, 2016
North America
Segment income	$	19.9		$	18.1	$	75.2		$	69.8
Unfavorable (favorable) metal price lag	1.6			0.1		5.9			(2.6		)
Segment Adjusted EBITDA(1)	$	21.4		$	18.2	$	81.1		$	67.2
Europe
Segment income	$	28.4		$	40.7	$	101.7		$	113.8
Unfavorable (favorable) metal price lag	0.1			1.1		(0.5		)	3.1
Segment Adjusted EBITDA(1)	$	28.5		$	41.7	$	101.2		$	116.9
Asia Pacific
Segment income	$	4.3		$	2.8	$	10.0		$	6.2
Favorable metal price lag	(0.6		)	—		(1.8		)	—
Segment Adjusted EBITDA(1)	$	3.7		$	2.8	$	8.3		$	6.2

(1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

15

Aleris Corporation

Reconciliation of Revenues to

Commercial Margin

(unaudited)

(in millions)

	For the three months ended						For the nine months ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
North America
Revenues	$	364.4		$	358.6		$	1,129.0		$	1,054.3
Hedged cost of metal	(224.1		)	(212.9		)	(685.3		)	(616.7		)
Unfavorable (favorable) metal price lag	1.6			0.1			5.9			(2.6		)
Commercial margin	$	141.9		$	145.8		$	449.6		$	435.0
Europe
Revenues	$	324.3		$	304.8		$	969.2		$	940.9
Hedged cost of metal	(192.6		)	(163.2		)	(550.4		)	(506.6		)
Unfavorable (favorable) metal price lag	0.1			1.1			(0.5		)	3.1
Commercial margin	$	131.8		$	142.7		$	418.3		$	437.4
Asia Pacific
Revenues	$	32.2		$	29.2		$	87.1		$	75.7
Hedged cost of metal	(17.0		)	(15.1		)	(45.5		)	(38.7		)
Favorable metal price lag	(0.6		)	—			(1.8		)	—
Commercial margin	$	14.6		$	14.1		$	39.8		$	37.0
Aleris Corporation
Revenues	$	712.8		$	683.4		$	2,163.2		$	2,050.9
Hedged cost of metal	(425.2		)	(382.1		)	(1,258.7		)	(1,142.0		)
Unfavorable metal price lag	1.0			1.2			3.6			0.6
Commercial margin	$	288.6		$	302.5		$	908.1		$	909.5

16

EX-99.2

1 Third Quarter 2017 Earnings Presentation November 10, 2017

2 IMPORTANT INFORMATION This information is current only as of its date and may have changed. We undertake no obligation to update this information in light of new information, future events or otherwise. This information contains certain forecasts and other forward looking information concerning our business, prospects, financial condition and results of operations, and we are not making any representation or warranty that this information is accurate or complete. See “Forward-Looking Information” below. BASIS OF PRESENTATION We are a direct wholly owned subsidiary of Aleris Corporation. Aleris Corporation currently conducts its business and operations through us and our consolidated subsidiaries. As used in this presentation, unless otherwise specified or the context otherwise requires, “Aleris,” “we,” “our,” “us,” “ and the “Company” refer to Aleris International, Inc. and its consolidated subsidiaries. Notwithstanding the foregoing, with respect to the historical financial information and other data presented in this presentation, unless otherwise specified or the context requires, “Aleris,” “we,” “our,” “us,” and the “Company’ refer to Aleris Corporation. We completed the sale of our recycling and specification alloys and extrusions businesses in the first quarter of 2015. We have reported these businesses as discontinued operations for all periods presented, and reclassified the results of operations of these businesses as discontinued operations. Except as otherwise indicated, the discussion of the Company’s business and financial information throughout this presentation refers to the Company’s continuing operations and the financial position and results of operations of its continuing operations. FORWARD-LOOKING INFORMATION Certain statements contained in this presentation are “forward-looking statements” within the meaning of the federal securities laws. Statements under headings with “Outlook” in the title and statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “will,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “look forward to,” “intend” and similar expressions intended to connote future events and circumstances constitute forward-looking statements. Forward-looking statements include statements about, among other things, the pending acquisition of the Company by Zhongwang USA LLC (the “Merger”), future costs and prices of commodities, production volumes, industry trends, anticipated cost savings, anticipated benefits from new products, facilities, acquisitions or divestitures, projected results of operations, achievement of production efficiencies, capacity expansions, future prices and demand for our products and estimated cash flows and sufficiency of cash flows to fund capital expenditures. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the following: (1) our ability to successfully implement our business strategy; (2) the success of past and future acquisitions or divestitures; (3) the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-uses, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers’ industries; (4) increases in the cost, or limited availability, of raw materials and energy; (5) our ability to enter into effective metal, energy and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially London Metal Exchange-based aluminum prices; (6) our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt obligations; (7) competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry end-uses we serve; (8) our ability to retain the services of certain members of our management; (9) the loss of order volumes from any of our largest customers; (10) our ability to fulfill our substantial capital investment requirements; (11) our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us; (12) risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors; (13) variability in general economic conditions on a global or regional basis; (14) current environmental liabilities and the cost of compliance with and liabilities under health and safety laws; (15) labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; (16) our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur; (17) our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing or the failure of financial institutions to fulfill their commitments to us under committed facilities; (18) our ability to access credit or capital markets; (19) the possibility that we may incur additional indebtedness in the future; (20) limitations on operating our business as a result of covenant restrictions under our indebtedness, and our ability to pay amounts due under the Senior Notes; (21) risks related to the Merger (including the possibility that the merger may not be consummated or, that, if the Merger does close, our stockholders may not realize the anticipated benefits from the Merger) and (22) other factors discussed in our filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” contained therein. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether in response to new information, futures events or otherwise, except as otherwise required by law. NON-GAAP INFORMATION The non-GAAP financial measures contained in this presentation (including, without limitation, EBITDA, Adjusted EBITDA, commercial margin, and variations thereof) are not measures of financial performance calculated in accordance with U.S. GAAP and should not be considered as alternatives to net income and loss attributable to Aleris Corporation or any other performance measure derived in accordance with GAAP or as alternatives to cash flows from operating activities as a measure of our liquidity. Non-GAAP measures have limitations as analytical tools and should be considered in addition to, not in isolation or as a substitute for, or as superior to, our measures of financial performance prepared in accordance with GAAP. Management believes that certain non-GAAP financial measures may provide investors with additional meaningful comparisons between current results and results in prior periods. Management uses non-GAAP financial measures as performance metrics and believes these measures provide additional information commonly used by the holders of our senior debt securities and parties to the 2015 ABL Facility with respect to the ongoing performance of our underlying business activities, as well as our ability to meet our future debt service, capital expenditure and working capital needs. We calculate our non-GAAP financial measures by eliminating the impact of a number of items we do not consider indicative of our ongoing operating performance, and certain other items. You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. See “Appendix.” INDUSTRY INFORMATION Information regarding market and industry statistics contained in this presentation is based on information from third party sources as well as estimates prepared by us using certain assumptions and our knowledge of these industries. Our estimates, in particular as they relate to our general expectations concerning the aluminum industry, involve risks and uncertainties and are subject to changes based on various factors, including those discussed under “Risk Factors” in our filings with the Securities and Exchange Commission. WEBSITE POSTING We use our investor website (investor.aleris.com) as a channel of distribution of Company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The content of our website is not, however, a part of this presentation. Forward-Looking and Other Information

3 Third Quarter Overview 3Q Adjusted EBITDA ($M) $53 $46 3Q16 3Q17 Adjusted EBITDA per ton ($/t) $249 $229 3Q16 3Q17  3Q17 Adjusted EBITDA of $46M  Successful completion of complex Lewisport hot mill outage  CALP I in production mode  Improved underlying operating performance offset by lower volume demand – Strong North America operating performance and productivity; favorable metal spreads – Planned extended Lewisport outage had significant one-time impact in the quarter – Slower 3Q / 2H B&C volume – Europe unfavorably impacted by short-term aerospace and automotive headwinds and a weaker U.S. dollar  Executed new LTA with Bombardier with increased volume; others pending Critical accomplishments achieved in third quarter; moving to next phase

4 Key Global End Uses Aleris Volume Drivers 3Q YoY Growth  Demand growth remains strong  HEX volume upside limited by available capacity until 2019 Heat Exchanger 6%  Ongoing industry destocking, weaker than expected volumes  Long-term fundamentals and backlogs remain robust  LTA volume gains should more than offset destocking effect going into 2018 Aerospace (14%)  Continued impact from OEM program timing delays through 3Q17  EU capacity held to support NA  NA ABS shipments began in 4Q17 Automotive (4%)

5 Key Regional End Uses  Uneven demand trends after strong start to year  Single family starts trending positively  2H16 delinquency catch-up contributing to unfavorable YoY comparison N.A. Building & Construction (13%)  Better volumes than 3Q16 but cyclical demand remains low  YTD volumes now flat compared to prior year N.A. Truck Trailer  Focus on value-added product mix  Ongoing uncertainty due to elevated LME prices EU Regional Commercial Plate & Sheet  Overall end-use customer demand environment remains favorable  Significant effects from Lewisport hot mill outage N.A. Distribution (9%) 10% (4%) Aleris Volume Drivers 3Q YoY Growth

6 Lewisport Outage Update Complex outage completed; great execution by Lewisport team Scalper First Wide Coil: Sep. 5, 2017 Reversing Mill  Widened the scalper  Widened the hot mill  Upgraded pre-heating equipment  Upgraded hot mill controls  ABS spec-ready  Improved reliability and uptime  Over 4,000 individual projects successfully completed during ~60-day outage  Approximately $30M Adjusted EBITDA impact from Lewisport outage in 2017

7 Automotive expansion on target to hit critical milestones  First commercial ABS coil recently shipped, focused on additional customer qualifications and contracts  Wide Cold Mill: Provisional acceptance complete  CALP I: Provisional acceptance complete; moved into production mode  CALP II: Commissioning well underway  Three of four alloys approved by primary OEM; fourth currently in aging process North America ABS Project Update 2014 2015 2016 2017E $13 $153 $185 $72 AUTOMOTIVE BODY SHEET (ABS) PROJECT CAPEX ($M) 3Q17 $16 CALP I CALP II Wide Cold Mill

8 Adjusted EBITDA Bridges $46 $5 $53 20 30 40 50 60 Metal Spreads Base Inflation ($6) ($1) Productivity Volume/Mix $1 $3 Price ($8) 3Q16 Commodity Inflation ($1) Currency/ Translation/ Other 3Q17 3Q17 YTD vs. 3Q16 YTD ($M) $162 $12 $11 $164 80 120 160 200 Volume/Mix 3Q16 YTD Currency/ Translation/ Other Metal Spreads Commodity Inflation ($7) Price $0 $5 ($2) ($17) Base Inflation 3Q17 YTD Productivity 3Q17 vs. 3Q16

9 North America Volume (kT) Segment Adjusted EBITDA ($M) 3Q17 Performance 3Q Adjusted EBITDA Bridge ($M) 127 115 3Q17 3Q16 (10%) $18 $21 3Q16 3Q17 Adj. EBITDA / ton $143 $186 $18 $3 $4 $4 $21 10 15 20 25 ($4) 3Q16 Price Volume/Mix Productivity 3Q17 Base Inflation ($3) Commodity Inflation ($1) Metal Spreads  As expected, volume impact from Lewisport outage, uneven B&C demand and an unfavorable comparison period  Improved operational performance contributed to higher Adj. EBITDA and Adj. EBITDA / ton  Favorable metal spread environment with better scrap flows and usage  Improved rolling margins offset by decline in B&C and distribution volumes

10 Ongoing improvement in metal spreads and scrap trends Metal Update $0.30 $0.20 $1.05 $1.10 $1.00 $0.95 $0.90 $0.85 $0.75 $0.80 $0.70 $0.14 $0.22 $0.24 $0.26 $0.28 $0.32 $0.34 $0.36 $0.16 $0.18 Mar 2016 Mar 2017 Dec 2016 Dec 2015 Sep 2015 Jun 2015 Jun 2017 Mar 2015 Dec 2014 Sep 2017 Sep 2016 Jun 2016 1Platts, Aleris Management Analysis, October 2017 Weighted Painted Siding, Mixed Low Copper, Sheet Spread P1020 (left axis) North America Scrap Spreads1

11 $29 $42 20 25 30 35 40 45 3Q16 Volume/Mix ($5) ($2) ($4) Currency/ Translation/ Other ($3) ($0) Price Metal Spreads $1 Productivity $0 Base Inflation Commodity Inflation 3Q17 Europe Volume (kT) Segment Adjusted EBITDA ($M) 3Q17 Performance 3Q Adjusted EBITDA Bridge ($M) 82 78 3Q17 (4%) 3Q16 $42 $29 3Q16 3Q17 Adj. EBITDA / ton $512 $365  Volume and mix lower due to continued aerospace destocking and shift in automotive program timing; partially offset by increased HEX volumes  Higher hardener costs and increased externally purchased slab impacted metal spreads  FX headwinds continue to persist

12 Asia Pacific  Volumes slightly higher than prior year  Lower rolling margins due to increased competition in more commoditized grades of commercial plate  Productivity gains from continued strong operational performance Volume (kT) Segment Adjusted EBITDA ($M) 3Q17 Performance 3Q Adjusted EBITDA Bridge ($M) $3 $1 $1 $1 0 1 2 3 4 5 $0 $4 ($1) $0 ($1) Metal Spreads 3Q17 Volume/Mix 3Q16 Base Inflation Currency/ Translation/ Other Productivity Price Commodity Inflation 7 7 7% 3Q17 3Q16 $3 $4 3Q17 3Q16 Adj. EBITDA / ton $398 $527

13 Cash Flow and LTM Working Capital Net Cash Flow ($M) 76 71 76 21% 19% 21% 50 55 60 65 70 75 80 3Q17 2016 2015 Total LTM Working Capital Days1 1Pro forma for divestitures of Global Recycling and Extrusions businesses 3Q16 3Q17 Cash Provided by Operating Activities $2 $43 Capital Expenditures (74) (57) Other (0) (2) Net Cash Before Financing ($72) ($15)  Higher LME increasing working capital investment  Additional inventory for Lewisport outage and ABS commissioning/qualification Balancing ABS project ramp-up and cash flow Days % of Sales

14 1Excludes discontinued operations CapEx of $50M, $43M, $15M in 2013-2015 2Guidance does not include capitalized interest 3Includes $4M of restricted cash for payoff of China Loan Facility 4Amounts exclude applicable premiums and discounts 5Other excludes $45M of exchangeable notes 6See prior SEC filing for applicable reconciliations to GAAP financial measures 7Excludes Non-Recourse China Loan Facilities 8Secured debt includes outstanding ABL Facility balance and 2021 Secured Notes Note: Certain amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in these charts and tables Capital expenditures ramping down in 2017 and 2018 Capital & Liquidity Overview Capital Structure ($M) Liquidity Summary ($M) $82 $96 $88 $74 $42 $201 $276 $157 $45 $128 $125$107 2017E $2 3Q17 YTD $175 3Q17 $5 $57 $10 $7 2016 $188 $230-$2402 2014 $8 $358 2015 $298 $65-$75 $121 $10 $14 2013 2018E Maintenance North America ABS Project & Other Upgrades Other Growth Capital Expenditures Summary ($M)1 9/30/2017 Cash and Restricted Cash3 $76 Availability under ABL Facility 206 Liquidity $281 9/30/2017 Cash and Restricted Cash3 $76 ABL 245 Notes4 1,240 Non-Recourse China Loan Facilities4 174 Other4,5 10 Net Debt $1,593 LTM Adjusted EBITDA6 $206 Net Debt / LTM Adj. EBITDA 7.7x Net Recourse Debt7 / LTM Adj. EBITDA 6.9x Net Secured Debt8 / LTM Adj. EBITDA 5.1x

15 Outlook  Fourth quarter 2017 segment income and Adjusted EBITDA expected to be lower than prior year based on continuation of current short-term trends  Commercial shipments from first Lewisport CALP line have recently commenced and will show meaningful ramp up in 2018 based on contracted volumes; residual outage effect complete in 4Q  Improved metal spreads expected to continue to benefit North America  We expect building and construction fundamentals to remain healthy; fourth quarter volumes are expected to be lower due to delinquency reductions in the prior year  Aerospace softness, due to continued supply chain destocking, and automotive model launch delays will continue to impact Europe volumes in the fourth quarter; trends reversing sequentially going into 2018  Weaker U.S. dollar will negatively impact Europe results in the fourth quarter  Strengthening long-term global aerospace presence  We expect liquidity to benefit from customer capacity reservation fees in early 2018

16 Appendix

17 3Q Adjusted EBITDA Reconciliation ($M) For the three months ended For the nine months ended 2017 2016 2017 2016 2017 2016 2017 2016 Adjusted EBITDA $45.5 $53.3 $163.7 $162.3 Adjusted EBITDA $45.50 $53.30 $163.70 $162.30 Unrealized (losses) gains on derivative financial instruments (18.8) 8.8 (1.5) 23.6 Unrealized (losses) gains on derivative financial instruments -18.8 8.8 -1.5 23.6 Restructuring charges (0.9) (0.3) (2.1) (1.8) Restructuring charges -0.9 -0.3 -2.1 -1.8 Unallocated currency exchange losses on debt (1.8) (0.4) (3.1) (1.0) Unallocated currency exchange losses on debt -1.8 -0.4 -3.1 -1 Stock-based compensation expense (0.4) (1.8) (1.5) (5.2) Stock-based compensation expense -0.4 -1.8 -1.5 -5.2 Start-up costs (22.8) (14.1) (52.6) (30.4) Start-up costs -22.8 -14.1 -52.6 -30.4 Unfavorable metal price lag (1.0) (1.2) (3.6) (0.6) Unfavorable metal price lag -1 -1.2 -3.6 -0.6 Loss on extinguishment of debt - - - (12.6) Loss on extinguishment of debt - - - -12.6 Other (1.4) (3.6) (5.1) (3.0) Other -1.4 -3.6 -5.1 -3 EBITDA ($1.6) $40.7 $94.2 $131.3 EBITDA ($1.60) $40.70 $94.20 $131.30 Interest expense, net (32.0) (19.2) (90.4) (58.4) Interest expense, net -32 -19.2 -90.4 -58.4 Provision for income taxes (1.6) (12.3) (25.1) (30.5) Provision for income taxes -1.6 -12.3 -25.1 -30.5 Depreciation and amortization (30.5) (26.2) (82.0) (78.8) Depreciation and amortization -30.5 -26.2 -82 -78.8 Loss from discontinued operations, net of tax - (4.6) - (4.6) Loss from discontinued operations, net of tax - -4.6 - -4.6 Net loss ($65.7) ($21.6) ($103.3) ($41.0) Net loss ($65.70) ($21.60) ($103.30) ($41.00) - COPY IN FROM ER HEREFor the three months ended September 30, For the nine months ended September 30,

18 3Q Adjusted EBITDA Reconciliation by Segment ($M) 1Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table For the three months ended For the nine months ended 2017 2016 2017 2016 30-Sep-17 30-Sep-16 30-Sep-17 30-Sep-16 North America North America Segment income $19.9 $18.1 $75.2 $69.8 Segment income $19.9 $18.1 $75.2 $69.8 Unfavorable (favorable) metal price lag 1.6 0.1 5.9 (2.6) Unfavorable (favorable) metal price lag $1.6 $0.1 $5.9 ($2.6) Segment Adjusted EBITDA 1 $21.4 $18.2 $81.1 $67.2 Segment Adjusted EBITDA 1 $21.4 $18.2 $81.1 $67.2 Europe Europe Segment income $28.4 $40.7 $101.7 $113.8 Segment income $28.4 $40.7 $101.7 $113.8 Unfavorable (favorable) metal price lag 0.1 1.1 (0.5) 3.1 Unfavorable (favorable) metal price lag $0.1 $1.1 ($0.5) $3.1 Segment Adjusted EBITDA 1 $28.5 $41.7 $101.2 $116.9 Segment Adjusted EBITDA1 $28.5 $41.7 $101.2 $116.9 Asia Pacific Asia Pacific Segment income $4.3 $2.8 $10.0 $6.2 Segment income $4.3 $2.8 $10.0 $6.2 Favorable metal price lag (0.6) - (1.8) - Favorable metal price lag ($0.6) - ($1.8) - Segment Adjusted EBITDA $3.7 $2.8 $8.3 $6.2 Segment Adjusted EBITDA $3.7 $2.8 $8.3 $6.2 (1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table. For the three months ended September 30, For the nine months ended September 30,

19 3Q Adjusted EBITDA Per Ton Reconciliation ($M, except per ton measures, volume in thousands of tons) 1See prior slides for a reconciliation to the applicable GAAP financial measures For the three months ended For the nine months ended 2017 2016 2017 2016 30-Sep-17 30-Sep-16 30-Sep-17 30-Sep-16 Metric tons of finished product shipped: Metric tons of finished product shipped: North America 115.3 127.5 361.9 376.7 North America 115.3 127.5 361.9 376.7 Europe 78.2 81.5 240.4 250.9 Europe (1) 78.2 81.5 240.4 250.9 Asia Pacific 7.1 6.6 19.4 16.9 Asia Pacific 7.1 6.6 19.4 16.9 Intra-entity shipments (1.8) (1.9) (4.5) (4.5) Intersegment shipments -1.8 -1.9 -4.5 -4.5 Total metric tons of finished product shipped 198.8 213.7 617.2 640.0 Total metric tons of finished product shipped 198.8 213.7 617.2 640 Segment Adjusted EBITDA: 1 Segment Adjusted EBITDA: North America $21.4 $18.2 $81.1 $67.2 North America $21.40 $18.20 $81.10 $67.20 Europe 28.5 41.7 101.2 116.9 Europe 28.5 41.7 101.2 116.9 Asia Pacific 3.7 2.8 8.3 6.2 Asia Pacific 3.7 2.8 8.3 6.2 Corporate (8.1) (9.4) (26.9) (28.0) Corporate -8.1 -9.4 -26.9 -28 Total Adjusted EBITDA $45.5 $53.3 $163.7 $162.3 Total Adjusted EBITDA $45.50 $53.30 $163.70 $162.30 Segment Adjusted EBITDA per metric ton shipped: Segment Adjusted EBITDA per metric ton shipped: North America $185.8 $142.7 $224.1 $178.4 North America $185.80 $142.70 $224.10 $178.40 Europe 364.7 511.7 420.8 466.0 Europe 364.7 511.7 420.8 466 Asia Pacific 525.5 422.8 425.0 367.9 Asia Pacific 525.5 422.8 425 367.9 Aleris Corporation 229.1 249.4 265.1 253.7 Aleris Corporation 229.1 249.4 265.1 253.7 * Result is not meaningful. (1) Finished product shipped excludes slab and billet sales from the Voerde and Koblenz cast houses. For the three months ended September 30, For the nine months ended September 30,

20 Robust risk management discipline minimizes commodity price exposure Metal Hedging Practices  Pass through pricing and tolling  Minimize inventory levels  Sell 100% of open inventory forward  LME and regional premium volatility (inventory exposure) Risk Impact Mitigation Strategy  Lowers margin volatility  Minimizes earnings impact  Risk limited to turn of inventory (“metal lag”)  Match sales with physical purchases or LME forwards  Attempt to minimize LT fixed price sales  Forward price sales  Locks in rolling margin  Reduces multiyear dated derivatives Adjusted EBITDA vs. Metal price lag Adj. EBITDA including metal lag $40 $48 $61 $52 $47 $54 $62 $45 (–) Income / (expense) from metal price lag 1 4 (3) (1) 4 2 (5) (1) Adj. EBITDA as reported $39 $45 $65 $53 $43 $52 $66 $46 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 Metal price lag impact on gross profit $0 $11 $6 $8 $8 $22 $8 ($5) (+) Realized (losses) / gains on metal derivatives 1 (7) (9) (9) (5) (19) (12) 4 Favorable / (unfavorable) metal price lag net of realized derivative gains / losses $1 $4 ($3) ($1) $4 $2 ($5) ($1)