EX-99.1 2 d311535dex991.htm EX-99.1 EX-99.1

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Reconciliation of Global Rolled Products Adjusted EBITDA1 1 S101 ($ in millions, except per metric ton amounts) 2008 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 After-tax operating income (ATOI) $(15) $(108) $192 $222 $302 $241 $224 $49 $71 $56 $49 $225 $74 $81 $69 Add: Depreciation, depletion, and amortization 190 201 212 212 205 202 211 50 50 51 52 203 50 50 52 Equity loss – – – – – – – – – – – – – – – Income taxes 50 21 80 83 137 95 67 29 18 23 15 85 31 32 22 Other 4 (2) 2 1 (3) – (1) – – (1) – (1) – – – Adjusted EBITDA $229 $112 $486 $518 $641 $538 $501 $128 $139 $129 $116 $512 $155 $163 $143 Total shipments (thousand metric tons) (kmt) 2,029 1,584 1,481 1,606 1,675 1,715 1,788 380 412 399 379 1,570 385 427 422 Adjusted EBITDA / Total shipments ($ per metric ton) $113 $71 $328 $322 $383 $314 $280 $337 $337 $323 $306 $326 $403 $382 $339 Third party sales $7,659 $4,978 $5,404 $6,602 $6,335 $6,065 $6,344 $1,353 $1,429 $1,287 $1,184 $5,253 $1,184 $1,316 $1,285 EBITDA Margin 3.0% 2.2% 9.0% 7.8% 10.1% 8.9% 7.9% 9.5% 9.7% 10.0% 9.8% 9.7% 13.1% 12.4% 11.1% Arconic’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) 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. The Other line in the table above includes gains/losses on asset sales and other non-operating items. 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 Arconic’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. (1) Excludes the Warrick, IN rolling operations and the equity interest in the rolling mill at the joint venture in Saudi Arabia, both of which were previously part of the Global Rolled Products segment but became part of Alcoa Corporation effective November 1, 2016 Exhibit 99.1


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Reconciliation of Arconic Combined Segment Adjusted EBITDA1 2 S101 ($ in millions) 2008 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 After-tax operating income (ATOI) $532 $218 $620 $767 $912 $977 $983 $243 $280 $251 $212 $986 $275 $307 $278 Add: Depreciation, depletion, and amortization 361 384 374 377 369 368 390 111 115 123 130 479 126 124 127 Equity (income) loss – (2) (2) (1) – – – – – – – – – – – Income taxes 275 159 280 345 434 448 434 119 116 112 83 430 123 137 110 Other 6 – 2 – (12) (2) (1) – – (2) – (2) – – – Adjusted EBITDA $1,174 $759 $1,274 $1,488 $1,703 $1,791 $1,806 $473 $511 $484 $425 $1,893 $524 $568 $515 Third-party sales $14,144 $9,870 $10,285 $12,254 $12,112 $12,071 $12,582 $3,081 $3,200 $3,159 $3,037 $12,477 $3,062 $3,248 $3,141 Adjusted EBITDA Margin 8.3%(2) 7.7% 12.4% 12.1% 14.1% 14.8% 14.4% 15.4% 16.0% 15.3% 14.0% 15.2% 17.1% 17.5% 16.4% Arconic’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) 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. The Other line in the table above includes gains/losses on asset sales and other non-operating items. 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 Arconic’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. (1) Excludes the Warrick, IN rolling operations and the equity interest in the rolling mill at the joint venture in Saudi Arabia, both of which were previously part of the Global Rolled Products segment but became part of Alcoa Corporation effective November 1, 2016. (2) Including the wire harness and electrical distribution business which was sold in 2009 and reflected in discontinued operations in the 2008 historical presentation, Adjusted EBITDA margin was 6.9% based on Adjusted EBITDA of $1,059 and Third-party sales of $15,350.