<SEC-DOCUMENT>0001157523-17-002032.txt : 20170724
<SEC-HEADER>0001157523-17-002032.hdr.sgml : 20170724
<ACCEPTANCE-DATETIME>20170724083633
ACCESSION NUMBER:		0001157523-17-002032
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170724
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170724
DATE AS OF CHANGE:		20170724

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Arconic Inc.
		CENTRAL INDEX KEY:			0000004281
		STANDARD INDUSTRIAL CLASSIFICATION:	ROLLING DRAWING & EXTRUDING OF NONFERROUS METALS [3350]
		IRS NUMBER:				250317820
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-03610
		FILM NUMBER:		17977590

	BUSINESS ADDRESS:	
		STREET 1:		390 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022-4608
		BUSINESS PHONE:		2128362732

	MAIL ADDRESS:	
		STREET 1:		390 PARK AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022-4608

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALCOA INC.
		DATE OF NAME CHANGE:	20141003

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALCOA INC
		DATE OF NAME CHANGE:	19990105

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ALUMINUM CO OF AMERICA
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
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<TYPE>8-K
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<FILENAME>a51593308.htm
<DESCRIPTION>ARCONIC INC. 8-K
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<p style="TEXT-ALIGN: center"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 18pt"><b>UNITED STATES</b></font><b><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 18pt"><br style="FONT-FAMILY: Times New Roman; FONT-SIZE: 18pt">
</font><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 18pt">SECURITIES AND EXCHANGE COMMISSION</font></b><br>
<font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 11pt"><b>Washington, D. C. 20549</b></font><font style="FONT-SIZE: 11pt"><br style="FONT-SIZE: 11pt">
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<p style="TEXT-ALIGN: center"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 18pt"><b>FORM 8-K</b></font><br>
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<p style="TEXT-ALIGN: center"><br>
<font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt"><b>CURRENT REPORT</b></font><br>
<font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt"><b>PURSUANT TO SECTION 13 OR 15(d) OF THE</b></font><br>
<font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt"><b>SECURITIES EXCHANGE ACT OF 1934</b></font> </p>

<p style="TEXT-ALIGN: center"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 11pt"><b>Date of Report (Date of earliest event reported)</b></font><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 11pt">: </font><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 11pt"><b>July 24, 2017 </b></font><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 11pt">(</font><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 11pt"><b>July 24, 2017)</b></font><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 11pt"><br style="FONT-FAMILY: Times New Roman; FONT-SIZE: 11pt">
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<p style="TEXT-ALIGN: center"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 18pt"><b>ARCONIC INC.</b></font><br>
<font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(Exact name of registrant as specified in its charter)</font><br>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Pennsylvania</b> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>1-3610</b> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>25-0317820</b> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"><b>(State or other Jurisdiction</b></font> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"><b>of Incorporation)</b></font> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"><b>(Commission File Number)</b></font> </p>

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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"><b>(IRS Employer</b></font> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"><b>Identification No.</b></font><b>)</b> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-SIZE: 10pt"><b>390 Park Avenue, New York, New York</b></font> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-SIZE: 10pt"><b>10022-4608</b></font> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"><b>(Address of Principal Executive Offices)</b></font> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt"><b>(Zip Code)</b></font> </p>
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<p style="TEXT-ALIGN: center"><b>Office of Investor Relations 212-836-2758</b> </p>

<p style="TEXT-ALIGN: center"><b>Office of the Secretary 212-836-2732</b><br>
<b>(Registrant&#8217;s telephone number, including area code)</b> </p>

<p style="TEXT-ALIGN: center"><b>(Former Name or Former Address, if Changed Since Last Report)</b> </p>

<p></p>

<p style="TEXT-ALIGN: center"><br>
</p>

<p>Check the appropriate box below if the Form&#160;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </p>

<p><font style="FONT-FAMILY: Arial Unicode MS; FONT-SIZE: 10pt">&#8414;</font> &#160;&#160;&#160;<font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font><br>
<font style="FONT-FAMILY: Arial Unicode MS; FONT-SIZE: 10pt">&#8414;</font> &#160;&#160;&#160;<font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font><br>
<font style="FONT-FAMILY: Arial Unicode MS; FONT-SIZE: 10pt">&#8414;</font> &#160;&#160;&#160;<font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font><br>
<font style="FONT-FAMILY: Arial Unicode MS; FONT-SIZE: 10pt">&#8414;</font> &#160;&#160;&#160;<font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font> </p>

<p></p>

<p>Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter). </p>

<p>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Emerging growth company&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="FONT-FAMILY: Arial Unicode MS; FONT-SIZE: 12pt">&#8414;</font> </p>

<p>If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="FONT-FAMILY: Arial Unicode MS; FONT-SIZE: 12pt">&#8414;</font> </p>

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<p style="WHITE-SPACE: nowrap"><b>Item 2.02.&#160;&#160;&#160;&#160;&#160;Results of Operations and Financial Condition.</b> </p>

<p>On July 24, 2017, Arconic Inc. issued a press release announcing its financial results for the second quarter of 2017.&#160;&#160;A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. </p>

<p>In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be &#8220;filed&#8221; for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. </p>

<p style="WHITE-SPACE: nowrap"><b>Item 9.01&#160;&#160;&#160;&#160;&#160;Financial Statements and Exhibits.</b> </p>

<p style="TEXT-ALIGN: justify">(d) Exhibits </p>

<p style="TEXT-ALIGN: justify">The following is furnished as an exhibit to this report: </p>

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<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; WIDTH: 2%" valign="bottom">&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; WIDTH: 86%" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>Description</b></u> </p>
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<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; WIDTH: 12%; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">99.1 </td>
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<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; WIDTH: 86%" valign="top">Arconic Inc. press release dated July 24, 2017. </td>
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<p style="TEXT-ALIGN: center"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><b>SIGNATURE</b></font> </p>

<p style="TEXT-INDENT: 30px; FONT-SIZE: 10pt"></p>

<p style="TEXT-INDENT: 30px; FONT-SIZE: 10pt">Pursuant 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 hereunto duly authorized. </p>

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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">ARCONIC&#160;INC. </p>
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<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; WIDTH: 44%" valign="top">&#160; </td>
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<td style="WIDTH: 44%">&#160; </td>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Dated: </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">July 24, 2017 </p>
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<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px; WIDTH: 6%" valign="top">By: </td>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">/s/ Katherine H. Ramundo </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Name: </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Katherine H. Ramundo </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Title: </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Executive Vice President, Chief Legal Officer<br>
 and Secretary </p>
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<p style="TEXT-ALIGN: center"><u><b>EXHIBIT&#160;INDEX</b></u> </p>

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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><b>Exhibit No.</b></font> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><b>Exhibit</b></font> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">99.1</font> </p>
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<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; WIDTH: 85%" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Arconic Inc. press release dated July 24, 2017. </p>
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<TYPE>EX-99.1
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<FILENAME>a51593308ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
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<p style="TEXT-ALIGN: right"><b>Exhibit 99.1</b> </p>

<p style="TEXT-ALIGN: center; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"><b>Arconic Reports Second Quarter 2017 Results</b> </p>

<p style="TEXT-ALIGN: center"></p>

<p style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"><b>Highlights</b> </p>

<ul>
<li style="FONT-FAMILY: 'Times New Roman'; MARGIN-BOTTOM: 10px; FONT-SIZE: 10pt">Revenue of $3.3 billion, up 1% year over year; up 5% year over year adjusting for Tennessee packaging<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">1</sup> </li>

<li style="FONT-FAMILY: 'Times New Roman'; MARGIN-BOTTOM: 10px; FONT-SIZE: 10pt">Net income attributable to Arconic of $212 million, or $0.43 per share, versus $135 million in the second quarter of 2016 </li>

<li style="FONT-FAMILY: 'Times New Roman'; MARGIN-BOTTOM: 10px; FONT-SIZE: 10pt">Excluding special items, adjusted income of $165 million, or $0.32 per share </li>

<li style="FONT-FAMILY: 'Times New Roman'; MARGIN-BOTTOM: 10px; FONT-SIZE: 10pt">Consolidated adjusted EBITDA<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">2</sup> of $444 million, up 3% year over year </li>

<li style="FONT-FAMILY: 'Times New Roman'; MARGIN-BOTTOM: 10px; FONT-SIZE: 10pt">Excluding special items, consolidated adjusted EBITDA of $486 million, up 2% year over year </li>

<li style="FONT-FAMILY: 'Times New Roman'; MARGIN-BOTTOM: 10px; FONT-SIZE: 10pt">Excluding special items, consolidated adjusted EBITDA margin expansion of 20 basis points year over year </li>

<li style="FONT-FAMILY: 'Times New Roman'; MARGIN-BOTTOM: 10px; FONT-SIZE: 10pt">Net cost savings of 1.7% of revenues </li>

<li style="FONT-FAMILY: 'Times New Roman'; MARGIN-BOTTOM: 10px; FONT-SIZE: 10pt">Cash balance of $1.8 billion </li>

<li style="FONT-FAMILY: 'Times New Roman'; MARGIN-BOTTOM: 10px; FONT-SIZE: 10pt">Reduced long-term debt by $1.25 billion year to date </li>
</ul>

<p>NEW YORK--(BUSINESS WIRE)--July 24, 2017--Arconic Inc. (NYSE:ARNC) today reported results for the second quarter of 2017, for which the Company reported revenue of $3.3 billion, up 1% year over year, driven by higher volumes across all business segments as well as higher aluminum prices. Adjusting for Tennessee packaging, revenues were up 5% year over year. </p>

<p>Net income attributable to Arconic in the second quarter of 2017 was $212 million, or $0.43 per share. The results include $47 million in special items, including a gain on the debt-for-equity exchange of Alcoa Corporation shares, which is intended to qualify as generally tax-free to Arconic for U.S. federal income tax purposes. This was partially offset by costs associated with the early redemption of debt; proxy, advisory and governance-related costs; and restructuring-related charges. </p>

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<p>Excluding special items, second quarter 2017 adjusted income was $165 million, or $0.32 per share. All segments delivered higher volumes while maintaining focus on cost reduction savings. Annualized return on net assets (RONA) was 8.7% based on the results of the first half of 2017. </p>

<p>Second quarter Consolidated adjusted EBITDA was $444 million, up 3% year over year. Consolidated adjusted EBITDA excluding special items was $486 million, up 2% year over year. Adjusted EBITDA margin excluding special items was 14.9%, up 20 basis points year over year. </p>

<p>&#8220;Arconic delivered another solid quarter. The business increased revenue and profitability, continued to expand margins and take out cost. We ended the first half of 2017 with significantly less debt, a strong cash position and good liquidity. We are pleased to update our guidance for the year, reflecting our increased confidence in 2017 performance,&#8221; said Arconic Interim Chief Executive Officer David Hess. </p>

<p><b>Reynobond PE</b> </p>

<p>Reynobond PE, one of Arconic&#8217;s building and construction products, was one component of the overall cladding system installed on Grenfell Tower in London, the site of last month&#8217;s tragic fire. Our Reynobond products, including Reynobond PE, are permitted to be used in accordance with local codes and regulations in the United States, UK and other countries around the world. Cladding systems contain various components selected and put together by architects, contractors, fabricators and building owners, and those parties are responsible for ensuring that the cladding systems are compliant under the appropriate codes and regulations. As it relates to Arconic&#8217;s position in the supply chain, we believe we have been compliant in the sale of our product. Given the tragedy at Grenfell Tower, and out of an abundance of caution as Arconic does not control the ultimate design and installation of the final cladding system, the Company announced on June 26th that it would no longer sell the PE product for use in high-rise construction &#8211; regardless of the local codes and regulations. </p>

<p>Hess said, &#8220;We extend our deepest sympathies to those who have lost so much. Everyone at Arconic continues to keep them in our thoughts. And importantly, we remain committed to supporting the investigations that are seeking an outcome that makes it unlikely that a similar tragedy will ever recur.&#8221; </p>

<p><b>Second Quarter 2017 Segment Performance</b> </p>

<p><u>Engineered Products and Solutions (EP&amp;S)</u> </p>

<p>EP&amp;S reported revenue of $1.5 billion, up 1% year over year, and Adjusted EBITDA of $310 million, down $19 million year over year. Increased volume and continued net cost savings (excluding engine ramp-up costs) were more than offset by unfavorable mix and price. While a headwind year over year, ramp-up costs were down sequentially in the second quarter, both in absolute dollars and as a percent of volume. The segment&#8217;s Adjusted EBITDA margin was 20.9%, down 160 basis points year over year. </p>

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<p><u>Global Rolled Products (GRP)</u> </p>

<p>GRP reported revenue of $1.3 billion, a decrease of 4% year over year, which includes the Tennessee packaging business. Adjusting for Tennessee packaging, GRP revenue was up 8% year over year. Adjusted EBITDA was $164 million, up $1 million year over year, an improvement driven by net cost savings and automotive volume and partially offset by reduced aerospace wide-body build rates, airframe destocking and pricing pressure in regional specialties. The segment&#8217;s Adjusted EBITDA margin was 12.9%, up 50 basis points year over year. </p>

<p>In the second quarter, Arconic continued progress towards streamlining and simplifying its cost structure. In GRP, these efforts are expected to save $15 million in 2018 and create a leaner business well positioned to deliver growth. </p>

<p><u>Transportation and Construction Solutions (TCS)</u> </p>

<p>TCS delivered revenue of $501 million, an increase of 7% year over year, and Adjusted EBITDA of $82 million, up $6 million year over year, as volume and net cost savings more than offset pricing pressure in the heavy-duty truck market. The segment&#8217;s Adjusted EBITDA margin was 16.4%, up 10 basis points year over year. </p>

<p><b>Balance Sheet</b> </p>

<p>Arconic ended the second quarter of 2017 with cash on hand of $1.8 billion. Cash from operations was $217 million, and free cash flow was $91 million. Cash used for financing activities totaled $860 million, reflecting cash payments for the early redemption of debt, and cash used for investing activities was $125 million. </p>

<p>Since the start of the year, Arconic has reduced its long-term debt by approximately $1.25 billion. </p>

<p><b>Full Year 2017 Guidance<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">*</sup></b> </p>

<p>The Company adjusted 2017 full year guidance based on solid first half performance, increased confidence, higher volumes, stronger net cost savings and higher aluminum prices. </p>

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<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top">$11.8B - $12.4B </td>
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<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top">$12.3B - $12.7B </td>
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<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Consolidated Adjusted EBITDA Excluding Special Items </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
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<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top">$1.77B - $1.86B </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top">$1.81B -$1.86B </td>
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<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Adjusted Earnings Per Share </td>
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<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$1.10 - $1.20 </td>
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<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$1.15 - $1.20 </td>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller"><i>*</i></sup><i> Arconic has not provided a reconciliation of the forward-looking financial measures of adjusted EBITDA, and adjusted earnings per share to the most directly comparable financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) because Arconic is unable to quantify certain amounts that would be required to be included in the GAAP measures without unreasonable efforts, and Arconic believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. In particular, reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP measures are not available without unreasonable efforts due to the variability and complexity with respect to the charges and other components excluded from the non-GAAP measures, such as the effects of foreign currency movements, equity income, gains or losses on sales of assets, taxes and any future restructuring or impairment charges. These reconciling items are in addition to the inherent variability already included in the GAAP measures, which includes, but is not limited to, price/mix and volume.</i> </p>
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<p><b>Arconic will hold its quarterly conference call at 10:00 AM Eastern Daylight Time on July 24, 2017 to present second quarter 2017 results. The meeting will be webcast via <u>www.arconic.com</u>. Call information and related details are available at <u>www.arconic.com</u> under &#8220;Investors;&#8221; presentation materials will be available at approximately 8:30 AM EDT on July 24, 2017.</b> </p>

<p><b>About Arconic</b> </p>

<p>Arconic (NYSE: ARNC) creates breakthrough products that shape industries. Working in close partnership with our customers, we solve complex engineering challenges to transform the way we fly, drive, build and power. Through the ingenuity of our people and cutting-edge advanced manufacturing techniques, we deliver these products at a quality and efficiency that ensure customer success and shareholder value. For more information: <u>www.arconic.com</u>. Follow @arconic: Twitter, Instagram, Facebook, LinkedIn and YouTube. </p>

<p><b>Dissemination of Company Information</b> </p>

<p>Arconic intends to make future announcements regarding Company developments and financial performance through its website on&#160;<u>www.arconic.com</u> </p>

<p><b>Forward-Looking Statements</b> </p>

<p>This release 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 &#8220;anticipates,&#8221; &#8220;believes,&#8221; &#8220;could,&#8221; &#8220;estimates,&#8221; &#8220;expects,&#8221; &#8220;forecasts,&#8221; &#8220;guidance,&#8221; &#8220;goal,&#8221; &#8220;intends,&#8221; &#8220;may,&#8221; &#8220;outlook,&#8221; &#8220;plans,&#8221; &#8220;projects,&#8221; &#8220;seeks,&#8221; &#8220;sees,&#8221; &#8220;should,&#8221; &#8220;targets,&#8221; &#8220;will,&#8221; &#8220;would,&#8221; or other words of similar meaning. All statements that reflect Arconic&#8217;s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements and guidance regarding future financial results or operating performance; statements about Arconic&#8217;s strategies, outlook, business and financial prospects; and forecasts and expectations relating to end markets. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Although Arconic 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) deterioration in global economic and financial market conditions generally; (b) unfavorable changes in the markets served by Arconic; (c) the inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated from restructuring programs and gross cost reduction savings improvement, cash sustainability, technology advancements, and other initiatives; (d) changes in discount rates or investment returns on pension assets; (e) Arconic&#8217;s inability to realize expected benefits, in each case as planned and by targeted completion dates, from acquisitions, divestitures, facility closures, curtailments, expansions, or joint ventures; (f) the impact of cyber attacks and potential information technology or data security breaches; (g) political, economic, and regulatory risks in the countries in which Arconic operates or sells products; (h) the impact of the separation on the businesses of Arconic; (i) material adverse changes in aluminum industry conditions, including fluctuations in London Metal Exchange-based aluminum prices; (j) the impact of changes in foreign currency exchange rates on costs and results; (k) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; and (l) the other risk factors discussed in Arconic&#8217;s Form 10-K for the year ended December 31, 2016, and other reports filed with the U.S. Securities and Exchange Commission (SEC). Arconic 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 discussed above and other risks in the market. </p>

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<p><b>Non-GAAP Financial Measures</b> </p>

<p>Some of the information included in this release is derived from Arconic&#8217;s consolidated financial information but is not presented in Arconic&#8217;s financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered &#8220;non-GAAP financial measures&#8221; under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most directly comparable GAAP financial measures and management&#8217;s rationale for the use of the non-GAAP financial measures can be found in the schedules to this release and on our website at <u>www.arconic.com</u> under the &#8220;Investors&#8221; section. </p>

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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller"><i>1</i></sup> </p>
</td>
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<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><i>As previously announced, Arconic expects to fully exit the North American packaging business at its Tennessee operations following the expiration of the Toll Processing and Services Agreement (the &#8220;Processing Agreement&#8221;) with Alcoa Corporation on December 31, 2018, unless sooner terminated by the parties. Pursuant to the Processing Agreement, dated as of October 31, 2016, Arconic provides can body stock to Alcoa Corporation, using aluminum supplied by Alcoa Corporation.</i> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller"><i>2</i></sup> </p>
</td>
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<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><i>Arconic&#8217;s definition of Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation 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 and amortization. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.</i> </p>
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<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">_______________ </p>
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<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="13">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Statement of Consolidated Operations (unaudited)</b><br>
<b>(in millions, except per-share and share amounts)</b> </p>
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<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="11"><b>Quarter ended</b> </td>
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<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3"><b>June 30,</b> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3"><b>March 31,</b> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3"><b>June 30,</b> </td>
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<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016 </b></u><b><u><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup></u></b> </p>
</td>
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<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
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<tr>
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<td></td>
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<td></td>
<td colspan="3"></td>
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<td colspan="3">&#160; </td>
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<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,234 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,192 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,261 </td>
<td></td>
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<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Cost of goods sold (exclusive of expenses below) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,533 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,492 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,583 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Selling, general administrative, and other expenses </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">239 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">221 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">204 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Research and development expenses </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">32 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">28 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">30 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Provision for depreciation and amortization </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">133 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">133 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">137 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Restructuring and other charges </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">14 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">73 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">26 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 45px" valign="top">Operating income </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">283 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">245 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">281 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Interest expense<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">124 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">115 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">183 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Other income, net<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(17 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(354 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(171 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Income from continuing operations before income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">176 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">484 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">269 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Provision for income taxes </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">123 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">162 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">57 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Income from continuing operations after income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">53 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">322 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">212 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Income from discontinued operations after income taxes<sup style="vertical-align: text-top; line-height: 1; font-size: smaller"><b>(1)</b></sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">125 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Net income </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">178 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">322 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">212 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Less: Net income from discontinued operations attributable to noncontrolling interests<sup style="vertical-align: text-top; line-height: 1; font-size: smaller"><b>(1)</b></sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">43 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 0px" valign="top">NET INCOME ATTRIBUTABLE TO ARCONIC </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">135 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">322 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">212 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">EARNINGS PER SHARE ATTRIBUTABLE TO ARCONIC COMMON SHAREHOLDERS<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)</sup>: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Basic<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)(6)</sup>: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Continuing operations </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.08 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.69 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.44 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 25px" valign="top">Discontinued operations </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.19 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Net income </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.27 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.69 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.44 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Average number of shares<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)(6)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">438,354,031 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">439,933,090 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">440,865,477 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Diluted<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)(6)</sup>: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Continuing operations </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.08 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.65 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.43 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 25px" valign="top">Discontinued operations </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.19 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Net income </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.27 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.65 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.43 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Average number of shares<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)(6)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">452,052,847 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">499,453,809 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">461,826,510 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">6</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zbca314fc0c0942ee989663f947a6c5ca" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">On November 1, 2016, the former Alcoa Inc. was separated into two standalone, publicly-traded companies, Arconic and Alcoa Corporation, by means of a pro rata distribution of 80.1 percent of the outstanding common stock of Alcoa Corporation to Alcoa Inc. shareholders. Accordingly, the results of operations of Alcoa Corporation have been reflected as discontinued operations for the quarter ended June 30, 2016. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Interest expense for the quarter ended June 30, 2017 includes $76 related to the early redemption of the Company&#8217;s outstanding 6.500% Senior Notes due 2018 and 6.750% Senior Notes due 2018 (collectively, the &#8220;2018 Senior Notes&#8221;) and a portion of the Company&#8217;s outstanding 5.720% Senior Notes due 2019. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Other income, net included the following: </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z8e47e6fb14664ac282cc9b9fad2a27cb" cellspacing="0">
<tr>
<td>&#160; </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">For the quarter ended March 31, 2017, a $351 gain on the sale of a portion of Arconic&#8217;s investment in Alcoa Corporation common stock; and </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">For the quarter ended June 30, 2017, a $167 gain on the exchange of Arconic&#8217;s remaining investment in Alcoa Corporation common stock for a portion of the Company&#8217;s 2018 Senior Notes. </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z103f4caeb71741ceb713127c05567879" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">At a special meeting of Arconic common shareholders held on October 5, 2016, shareholders approved a 1-for-3 reverse stock split of Arconic&#8217;s outstanding and authorized shares of common stock which became effective on October 6, 2016. All share and per share data presented for all periods herein have been updated to reflect the reverse stock split. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">In order to calculate both basic and diluted earnings per share for the quarters ended June 30, 2016, March 31, 2017, and June 30, 2017, preferred stock dividends declared of $17 in each quarter need to be subtracted from Net income attributable to Arconic. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(6)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">The difference between the respective diluted average number of shares and the respective basic average number of shares relates to the following: </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z986fee83e9384fa5b7b1cf121ff40323" cellspacing="0">
<tr>
<td>&#160; </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">For the quarter ended June 30, 2016, share equivalents related to outstanding employee stock options and awards and shares underlying outstanding convertible debt (acquired through the acquisition of RTI International Metals, Inc.); </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">For the quarter ended March 31, 2017, share equivalents related to outstanding employee stock options and awards, shares underlying outstanding convertible debt (acquired through the acquisition of RTI International Metals, Inc.) and shares underlying mandatory convertible preferred stock; and </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">For the quarter ended June 30, 2017, share equivalents related to outstanding employee stock options and awards and shares underlying outstanding convertible debt (acquired through the acquisition of RTI International Metals, Inc.). </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">7</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zc983bb8eef0740c99a2681fb53e82871" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="9">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Statement of Consolidated Operations (unaudited)</b><br>
<b>(in millions, except per-share and share amounts)</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="7"></td>
</tr>

<tr>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="7"><b>Six months ended</b> </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3"><b>June 30,</b> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3"><b>June 30,</b> </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016 </b></u><b><u><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup></u></b> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,289 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,453 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Cost of goods sold (exclusive of expenses below) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">4,933 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,075 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Selling, general administrative, and other expenses </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">444 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">425 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Research and development expenses </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">63 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">58 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Provision for depreciation and amortization </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">266 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">270 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Restructuring and other charges </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">30 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">99 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 45px" valign="top">Operating income </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">553 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">526 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Interest expense<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">245 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">298 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Other income, net<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(29 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(525 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Income from continuing operations before income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">337 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">753 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Provision for income taxes </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">174 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">219 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Income from continuing operations after income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">163 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">534 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Income from discontinued operations after income taxes<sup style="vertical-align: text-top; line-height: 1; font-size: smaller"><b>(1)</b></sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">26 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Net income </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">189 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">534 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Less: Net income from discontinued operations attributable to noncontrolling interests<sup style="vertical-align: text-top; line-height: 1; font-size: smaller"><b>(1)</b></sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">38 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 0px" valign="top">NET INCOME ATTRIBUTABLE TO ARCONIC </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">151 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">534 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">EARNINGS PER SHARE ATTRIBUTABLE TO ARCONIC COMMON SHAREHOLDERS<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)</sup>: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Basic<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)(6)</sup>: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Continuing operations </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.30 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1.13 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 25px" valign="top">Discontinued operations </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(0.03 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Net income </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.27 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1.13 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Average number of shares<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)(6)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">438,100,014 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">440,346,195 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Diluted<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)(6)</sup>: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Continuing operations </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.29 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1.07 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 25px" valign="top">Discontinued operations </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(0.03 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Net income </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.26 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1.07 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Average number of shares<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)(6)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">442,067,567 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">500,141,305 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Common stock outstanding at the end of the period<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">438,380,570 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">440,954,618 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">8</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="ze94ac50e6dd74dae98a88d90789bc8b9" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">On November 1, 2016, the former Alcoa Inc. was separated into two standalone, publicly-traded companies, Arconic and Alcoa Corporation, by means of a pro rata distribution of 80.1 percent of the outstanding common stock of Alcoa Corporation to Alcoa Inc. shareholders. Accordingly, the results of operations of Alcoa Corporation have been reflected as discontinued operations for the six months ended June 30, 2016. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Interest expense for the six months ended June 30, 2017 includes $76 related to the early redemption of the Company&#8217;s outstanding 6.500% Senior Notes due 2018 and 6.750% Senior Notes due 2018 (collectively, the &#8220;2018 Senior Notes&#8221;) and a portion of the Company&#8217;s outstanding 5.720% Senior Notes due 2019. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Other income, net for the six months ended June 30, 2017, includes: </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zb5a0b18d150346f5ab303bf09e208d65" cellspacing="0">
<tr>
<td>&#160; </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">a $351 gain on the sale of a portion of Arconic&#8217;s investment in Alcoa Corporation common stock; and </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">a $167 gain on the exchange of Arconic&#8217;s remaining investment in Alcoa Corporation common stock for a portion of the Company&#8217;s outstanding 2018 Senior Notes. </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zb36e1af1fbc24c67aa3abd16d1f257ba" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)</sup> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">At a special meeting of Arconic common shareholders held on October 5, 2016, shareholders approved a 1-for-3 reverse stock split of Arconic&#8217;s outstanding and authorized shares of common stock which became effective on October 6, 2016. All share and per share data presented for all periods herein have been updated to reflect the reverse stock split. </p>
</td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)</sup> </td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">In order to calculate both basic and diluted earnings per share for the six months ended June 30, 2016 and June 30, 2017, preferred stock dividends declared of $35 in each period need to be subtracted from Net income attributable to Arconic. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(6)</sup> </td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">The difference between the respective diluted average number of shares and the respective basic average number of shares relates to the following: </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z5c13c4388b54483488bc6f2083f98b08" cellspacing="0">
<tr>
<td>&#160; </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">For the six months ended June 30, 2016, share equivalents related to outstanding employee stock options and awards; and </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">For the six months ended June 30, 2017, share equivalents related to outstanding employee stock options and awards, shares underlying outstanding convertible debt (acquired through the acquisition of RTI International Metals, Inc.), and shares underlying mandatory convertible preferred stock. </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">9</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zdb19a8c280694b6b926365b11359291a" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="9">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Consolidated Balance Sheet (unaudited)</b><br>
<b>(in millions)</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="3"></td>
<td>&#160; </td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>December 31,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">ASSETS </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Current assets: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Cash and cash equivalents </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,863 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,785 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Receivables from customers, less allowances of $13 in 2016 and $8 in 2017 </p>
</td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">974 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,170 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Other receivables </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">477 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">357 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Inventories </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,253 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,416 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 10px" valign="top">Prepaid expenses and other current assets </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">325 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">305 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 20px" valign="top">Total current assets </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,892 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,033 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Properties, plants, and equipment </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">11,572 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">11,738 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Less: accumulated depreciation and amortization </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,073 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,231 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 10px" valign="top">Properties, plants, and equipment, net </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,499 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,507 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom">Goodwill </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,148 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,215 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Deferred income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,234 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,080 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Investment in common stock of Alcoa Corporation </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,020 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Other noncurrent assets </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,245 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,271 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 30px" valign="top">Total assets </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">20,038 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">19,106 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">LIABILITIES </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Current liabilities: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Short-term borrowings </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">36 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">48 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Accounts payable, trade </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,744 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,667 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Accrued compensation and retirement costs </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">398 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">363 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Taxes, including income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">85 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">77 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Accrued interest payable </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">153 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">124 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Other current liabilities </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">329 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">379 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 10px" valign="top">Long-term debt due within one year </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">4 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 20px" valign="top">Total current liabilities </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,749 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,658 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Long-term debt, less amount due within one year </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">8,044 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,796 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Accrued pension benefits </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,345 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,202 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Accrued other postretirement benefits </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">889 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">822 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Other noncurrent liabilities and deferred credits </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">870 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">875 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 25px" valign="top">Total liabilities </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">14,897 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">13,353 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">EQUITY </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Arconic shareholders&#8217; equity: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Preferred stock </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">55 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">55 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Mandatory convertible preferred stock </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Common stock </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">438 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">441 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Additional capital </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">8,214 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">8,262 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 10px" valign="top">Accumulated deficit </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(1,027 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(567 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 10px" valign="top">Accumulated other comprehensive loss </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(2,568 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(2,454 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 20px" valign="top">Total Arconic shareholders' equity </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,115 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,740 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Noncontrolling interests </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">26 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">13 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 25px" valign="top">Total equity </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,141 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,753 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 25px" valign="top">Total liabilities and equity </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">20,038 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">19,106 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">10</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zab6e33e4ab6b4a64b8037f7a26c538b7" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="9">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Statement of Consolidated Cash Flows (unaudited)</b><br>
<b>(in millions)</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="7"></td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="7">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">Six months ended </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>June 30,</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u><b><u><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup></u></b> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">CASH FROM OPERATIONS </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Net income </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">189 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">534 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Adjustments to reconcile net income to cash from operations: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Depreciation, depletion, and amortization </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">622 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">270 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Deferred income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(78 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">27 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Equity income, net of dividends </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">20 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Restructuring and other charges </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">116 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">99 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Net gain from investing activities &#8211; asset sales<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(28 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(515 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Net periodic pension benefit cost </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">168 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">108 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Stock-based compensation </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">55 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">48 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Other </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">19 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">63 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and foreign currency translation adjustments: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">(Increase) in receivables </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(218 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(282 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">(Increase) in inventories </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(3 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(150 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Decrease in prepaid expenses and other current assets </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">4 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">30 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">(Decrease) in accounts payable, trade </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(243 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(69 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">(Decrease) in accrued expenses </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(301 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(105 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Increase in taxes, including income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">57 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">121 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">Pension contributions </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(147 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(163 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 25px" valign="top">(Increase) in noncurrent assets </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(215 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(60 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 25px" valign="top">(Decrease) in noncurrent liabilities </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(115 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(39 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 30px" valign="top">CASH USED FOR OPERATIONS </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(98 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(83 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">FINANCING ACTIVITIES </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Net change in short-term borrowings (original maturities of three months or less) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(5 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">9 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Additions to debt (original maturities greater than three months) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">876 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">512 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Payments on debt (original maturities greater than three months) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(882 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(1,333 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Proceeds from exercise of employee stock options </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">26 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Dividends paid to shareholders </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(114 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(88 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Distributions to noncontrolling interests </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(84 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(14 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Other </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(15 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 30px" valign="top">CASH USED FOR FINANCING ACTIVITIES </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(207 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(903 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">INVESTING ACTIVITIES </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Capital expenditures </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(528 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(229 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Proceeds from the sale of assets and businesses </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">549 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(9 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Additions to investments </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(8 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(1 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Sales of investments<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">275 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">888 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Net change in restricted cash </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">7 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">10 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Other<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">15 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">245 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 30px" valign="top">CASH PROVIDED FROM INVESTING ACTIVITIES </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">310 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">904 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 30px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS </p>
</td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">5 </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">4 </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Net change in cash and cash equivalents </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">10 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(78 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Cash and cash equivalents at beginning of year </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,919 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,863 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 30px" valign="top">CASH AND CASH EQUIVALENTS AT END OF PERIOD </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,929 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,785 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z9aff379cbd2540b0bcb2deebc6ddb965" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">On November 1, 2016, the former Alcoa Inc. separated into two standalone, publicly-traded companies, Arconic and Alcoa Corporation, by means of a pro rata distribution of 80.1 percent of the outstanding common stock of Alcoa Corporation to Alcoa Inc. shareholders. Cash flow information has not been restated for discontinued operations and therefore the six months ended June 30, 2016 includes the result of operations for Arconic and the results of operations for Alcoa Corporation. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">On February 14, 2017, Arconic sold 23,353,000 of its shares of Alcoa Corporation common stock at $38.03 per share which resulted in $888 in cash proceeds. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Other investing activities for the six months ended June 30, 2017 included $243 of proceeds received from Alcoa Corporation&#8217;s sale of the Yadkin Hydroelectric Project. </td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">11</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z59552b00f63847738063f68501171c93" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="29">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Segment Information (unaudited)</b><br>
<b>(dollars in millions, shipments in thousands of metric tons [kmt])</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="2"></td>
<td></td>
<td>&#160; </td>
<td colspan="3"></td>
<td>&#160; </td>
<td colspan="3"></td>
<td>&#160; </td>
<td colspan="3"></td>
<td>&#160; </td>
<td colspan="3"></td>
<td>&#160; </td>
<td colspan="3"></td>
<td>&#160; </td>
<td colspan="3"></td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="middle" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>1Q16</b></u> </p>
</td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="middle" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2Q16</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="middle" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>3Q16</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="middle" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>4Q16</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="middle" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>1Q17</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="middle" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2Q17</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"><b>Engineered Products and Solutions:</b> </td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Third-party sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,449 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,465 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,406 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,408 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,728 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,485 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,484 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Depreciation and amortization </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">65 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">62 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">63 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">65 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">255 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">64 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">66 </td>
<td></td>
</tr>

<tr>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">305 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">329 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">296 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">265 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,195 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">306 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">310 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"><b>Global Rolled Products <sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup>:</b> </td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Third-party aluminum shipments (kmt) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">331 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">376 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">356 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">276 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,339 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">310 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">307 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Third-party sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,184 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,316 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,285 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,079 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">4,864 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,249 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,268 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Intersegment sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">29 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">29 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">30 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">30 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">118 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">34 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">37 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Depreciation and amortization </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">50 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">50 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">52 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">49 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">201 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">50 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">51 </td>
<td></td>
</tr>

<tr>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">155 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">163 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">143 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">116 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">577 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">171 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">164 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"><b>Transportation and Construction Solutions:</b> </td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Third-party sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">429 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">467 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">450 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">456 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,802 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">449 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">501 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Depreciation and amortization </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">11 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">13 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">48 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12 </td>
<td></td>
</tr>

<tr>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">64 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">76 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">76 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">75 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">291 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">72 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">82 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"><b>Reconciliation of combined segment adjusted EBITDA to consolidated net income (loss) attributable to Arconic:</b> </td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Combined segment adjusted EBITDA<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">524 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">568 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">515 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">456 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,063 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">549 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">556 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Unallocated amounts: </td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Depreciation and amortization </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(133 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(133 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(136 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(133 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(535 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(133 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(137 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Restructuring and other charges </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(16 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(14 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(3 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(122 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(155 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(73 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(26 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Impact of LIFO </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(12 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(13 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(1 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">8 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(18 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(19 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(11 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Metal price lag </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">- </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">4 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">17 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">27 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">22 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">19 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Corporate expense </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(76 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(115 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(113 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(150 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(454 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(91 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(91 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Other </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(17 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(16 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(29 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(47 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(109 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(10 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(29 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Operating income </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">270 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">283 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">237 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">29 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">819 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">245 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">281 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Other income, net<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">17 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">11 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">54 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">94 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">354 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">171 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Interest expense<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(121 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(124 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(126 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(128 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(499 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(115 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(183 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(51 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(123 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(56 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(1,246 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(1,476 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(162 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(57 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="top">Discontinued operations<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)</sup> </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(94 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">82 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">100 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">33 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">121 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Consolidated net income (loss) attributable to Arconic </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">16 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">135 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">166 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(1,258 </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(941 </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">322 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">212 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">12</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z1b7159bb2823491c9a49d6a6c6285a26" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Arconic&#8217;s definition of Combined segment adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) is net margin plus an add-back for depreciation 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 and amortization. The Combined segment adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. </td>
</tr>

<tr>
<td>&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">The difference between certain segment totals and consolidated amounts is Corporate. </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="za49a800b41da4cc9842b979dde8af622" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">On November 1, 2016, the former Alcoa Inc. completed its separation into two standalone, publicly-traded companies. Arconic includes the former Alcoa Inc. segments: Engineered Products and Solutions, Transportation and Construction Solutions, and Global Rolled Products, except for the Warrick, IN rolling operations and the equity interest in the rolling mill at the joint venture in Saudi Arabia, both of which became part of Alcoa Corporation. The Global Rolled Products segment information has been updated to exclude the Warrick, IN rolling operations and the equity interest in the rolling mill at the joint venture in Saudi Arabia. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Combined segment adjusted EBITDA is the summation of the respective Adjusted EBITDA of Arconic&#8217;s three reportable segments. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Other income, net included: </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z239c49c0d36c49b293fc547aaad65020" cellspacing="0">
<tr>
<td>&#160; </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">For the quarter ended March 31, 2017, a $351 gain on the sale of a portion of Arconic&#8217;s investment in Alcoa Corporation common stock; and </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">For the quarter ended June 30, 2017, a $167 gain on the exchange of Arconic&#8217;s remaining investment in Alcoa Corporation common stock for a portion of the Company&#8217;s outstanding senior notes due 2018. </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z80c7012a585145e591593f81b8be32b2" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Interest expense for the quarter ended June 30, 2017 includes $76 related to the early redemption of the Company&#8217;s outstanding 6.500% Senior Notes due 2018 and 6.750% Senior Notes due 2018 (collectively, the &#8220;2018 Senior Notes&#8221;) and a portion of the Company&#8217;s outstanding 5.720% Senior Notes due 2019. </p>
</td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)</sup> </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">The reconciliation of Combined segment adjusted EBITDA to Consolidated net income (loss) attributable to Arconic has been updated for all periods presented to exclude the results of operations for Alcoa Corporation, which have been reflected as discontinued operations for all periods presented. </td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">13</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="ze9d3ab7336af46b298cc77d8b46d69c3" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="24">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Calculation of Financial Measures (unaudited)</b><br>
<b>(in millions, except per-share amounts)</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="11"></td>
<td>&#160; </td>
<td>&#160; </td>
<td>&#160; </td>
<td>&#160; </td>
<td colspan="7"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top" rowspan="2"><b>Adjusted Income</b> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="11"><b>Quarter ended</b> </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="7"><b>Six months ended</b> </td>
</tr>

<tr>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>March 31,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Net income attributable to Arconic </p>
</td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">135 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">322 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">212 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">151 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">534 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Discontinued operations<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(82 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Special items: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Restructuring and other charges </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">14 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">73 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">26 </p>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">30 </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">99 </p>
</td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Discrete tax items<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(3 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Other special items<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">113 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(325 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(23 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">119 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(348 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 5px" valign="top">Tax impact<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)</sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(12 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">98 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(50 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(18 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">48 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 0px" valign="top">Net income attributable to Arconic &#8211; as adjusted </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">165 </p>
</td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">169 </p>
</td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">165 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">297 </p>
</td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">334 </p>
</td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Diluted EPS<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)</sup>: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Net income attributable to Arconic common shareholders </p>
</td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">0.27 </p>
</td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">0.65 </p>
</td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">0.43 </p>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">0.26 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1.07 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Net income attributable to Arconic common shareholders &#8211; as adjusted </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">0.33 </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">0.33 </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">0.32 </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">0.59 </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">$ </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">0.66 </p>
</td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">14</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z9ea889f1aea940ccb6c1832df01e2e3d" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Net income attributable to Arconic &#8211; as adjusted is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of Arconic excluding the impacts of restructuring and other charges, discrete tax items, and other special items (collectively, &#8220;special items&#8221;). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Net income attributable to Arconic determined under GAAP as well as Net income attributable to Arconic &#8211; as adjusted. </td>
</tr>

<tr>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z08599e08ca7e405bb150fcdd7cd71955" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">On November 1, 2016, the former Alcoa Inc. was separated into two standalone, publicly-traded companies, Arconic and Alcoa Corporation, by means of a pro rata distribution of 80.1 percent of the outstanding common stock of Alcoa Corporation to Alcoa Inc. shareholders. Accordingly, the results of operations of Alcoa Corporation have been reflected as discontinued operations for the quarter and six months ended June 30, 2016. </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Discrete tax items included the following: </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the quarter ended June 30, 2016, a benefit for one item ($3); </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the quarter ended March 31, 2017, a net charge for a number of small items ($1); </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the six months ended June 30, 2016, a net charge for a number of small items ($3); and </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the six months ended June 30, 2017, a net charge for a number of small items ($1). </td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(3)</sup> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Other special items included the following: </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the quarter ended June 30, 2016, an unfavorable tax impact related to the interim period treatment of operational income in certain foreign jurisdictions for which no tax expense was recognized ($51), costs associated with the separation of Alcoa Inc. ($45), and an unfavorable tax impact resulting from the difference between Arconic&#8217;s consolidated estimated annual effective tax rate and the statutory rate applicable to special items ($17); </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the quarter ended March 31, 2017, a gain on the sale of a portion of Arconic&#8217;s investment in Alcoa Corporation common stock ($351), costs associated with the separation of Alcoa Inc. ($18), a favorable tax impact resulting from the difference between Arconic&#8217;s consolidated estimated annual effective tax rate and the statutory rate applicable to special items ($17), proxy, advisory and governance-related costs ($16), and an unfavorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($9); </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the quarter ended June 30, 2017, a gain on the exchange of the remaining portion of Arconic&#8217;s investment in Alcoa Corporation common stock ($167), costs associated with the Company&#8217;s early redemption of $1,250 of outstanding senior notes ($76), proxy, advisory and governance-related costs ($42), an unfavorable tax impact resulting from the difference between Arconic&#8217;s consolidated estimated annual effective tax rate and the statutory rate applicable to special items ($30), and a favorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($4); </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the six months ended June 30, 2016, an unfavorable tax impact resulting from the difference between Arconic&#8217;s consolidated estimated annual effective tax rate and the statutory rate applicable to special items ($63), costs associated with the separation of Alcoa Inc. ($63), and a favorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($7); and </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the six months ended June 30, 2017, a gain on the sale of a portion of Arconic&#8217;s investment in Alcoa Corporation common stock ($351), a gain on the exchange of the remaining portion of Arconic&#8217;s investment in Alcoa Corporation common stock ($167), costs associated with the Company&#8217;s early redemption of $1,250 of outstanding senior notes ($76), proxy, advisory, and governance-related costs ($58), costs associated with the separation of Alcoa Inc. ($18), an unfavorable tax impact resulting from the difference between Arconic&#8217;s consolidated estimated annual effective tax rate and the statutory rate applicable to special items ($13), and an unfavorable tax impact related to the interim period treatment of operational losses in certain foreign jurisdictions for which no tax benefit was recognized ($5). </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z6a5659dfdd6f4868831ed4f7d5c14954" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(4)</sup> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">The tax impact on special items is based on the applicable statutory rates whereby the difference between such rates and Arconic&#8217;s consolidated estimated annual effective tax rate is itself a special item (see Note 3 above). </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(5)</sup> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">At a special meeting of Arconic common shareholders held on October 5, 2016, shareholders approved a 1-for-3 reverse stock split of Arconic&#8217;s outstanding and authorized shares of common stock which became effective on October 6, 2016. All share and per share data for all periods presented have been updated to reflect the reverse stock split. </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">The average number of shares applicable to diluted EPS for Net income attributable to Arconic - as adjusted, includes certain share equivalents as their effect was dilutive. Specifically: </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the quarter ended June 30, 2016, share equivalents associated with outstanding employee stock options and awards and shares underlying outstanding convertible debt (acquired through the acquisition of RTI International Metals, Inc.) were dilutive based on Net income attributable to Arconic common shareholders &#8211; as adjusted, resulting in a diluted average number of shares of 452,052,847; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the quarter ended March 31, 2017, share equivalents associated with outstanding employee stock options and awards and shares underlying outstanding convertible debt (acquired through the acquisition of RTI International Metals, Inc.) were dilutive based on Net income attributable to Arconic common shareholders &#8211; as adjusted, resulting in a diluted average number of shares of 460,207,783. </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the quarter ended June 30, 2017, share equivalents associated with outstanding employee stock options and awards and shares underlying outstanding convertible debt (acquired through the acquisition of RTI International Metals, Inc.) were dilutive based on Net income attributable to Arconic common shareholders &#8211; as adjusted, resulting in a diluted average number of shares of 461,826,510; and </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the six months ended June 30, 2016, share equivalents associated with outstanding employee stock options and awards and shares underlying outstanding convertible debt (acquired through the acquisition of RTI International Metals, Inc.) were dilutive based on Net income attributable to Arconic common shareholders &#8211; as adjusted, resulting in a diluted average number of shares of 451,498,740. </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&#8226; </p>
</td>
<td></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">for the six months ended June 30, 2017, share equivalents associated with outstanding employee stock options and awards and shares underlying outstanding convertible debt (acquired through the acquisition of RTI International Metals, Inc.) were dilutive based on Net income attributable to Arconic common shareholders &#8211; as adjusted, resulting in a diluted average number of shares of 460,894,897. </td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">15</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zaba07ef6885745ff80840ed64ceaea9a" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top" rowspan="2"><b>Operational Tax Rate</b> </td>
<td>&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="11"><b>Quarter ended June 30, 2017</b> </td>
<td>&#160; </td>
<td>&#160; </td>
<td>&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="11"><b>Six months ended June 30, 2017</b> </td>
</tr>

<tr>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">As </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>reported</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">Special </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>items</b></u><b><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup></b> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">As </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>adjusted</b></u> </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">As </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>reported</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">Special </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>items</b></u><b><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup></b> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">As </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>adjusted</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Income from continuing operations before income taxes </p>
</td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">269 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(23 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">246 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">753 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(266 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">487 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Provision for income taxes </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">57 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">24 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">81 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">219 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(66 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">153 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="middle">Tax rate </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">21.2 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">32.9 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">29.1 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">31.4 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z5e9438c2b36c40c081d77f1a95f82965" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Operational tax rate is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of Arconic excluding the impacts of restructuring and other charges, discrete tax items, and other special items (collectively, &#8220;special items&#8221;). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both the Effective tax rate determined under GAAP as well as the Operational tax rate. </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z02ed75d4442147e4bab344eeb31dadd1" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">See Adjusted Income reconciliation above for a description of special items. </td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">16</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z9400a6d5a4d24ee3a70733ea76cc7a8b" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="23">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Calculation of Financial Measures (unaudited), continued</b><br>
<b>(dollars in millions)</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="11"></td>
<td>&#160; </td>
<td>&#160; </td>
<td>&#160; </td>
<td colspan="7"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top" rowspan="2"><b>Consolidated Adjusted EBITDA</b> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="11">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Quarter ended</b> </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="7"><b>Six months ended</b> </td>
</tr>

<tr>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">March 31, </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">June 30, </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Net income attributable to Arconic </p>
</td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">135 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">322 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">212 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">151 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">534 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Discontinued operations<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(82 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Income from continuing operations after income taxes and noncontrolling interests </p>
</td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">53 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">322 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">212 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">163 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">534 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Add: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Provision for income taxes </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">123 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">162 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">57 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">174 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">219 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Other income, net </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(17 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(354 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(171 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(29 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(525 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Interest expense </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">124 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">115 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">183 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">245 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">298 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Restructuring and other charges </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">14 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">73 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">26 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">30 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">99 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 5px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Provision for depreciation and amortization </p>
</td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">133 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">133 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">137 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">266 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">270 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 0px" valign="top">Consolidated adjusted EBITDA </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">430 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">451 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">444 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">849 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">895 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Add: </td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Separation costs </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">45 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">18 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">63 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">18 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 5px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Proxy, advisory and governance-related costs </p>
</td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">16 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">42 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">58 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Consolidated adjusted EBITDA, excluding special items </p>
</td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">475 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">485 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">486 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">912 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">971 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,234 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,192 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,261 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,289 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,453 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Adjusted EBITDA margin </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">13.3 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">14.1 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">13.6 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">13.5 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">13.9 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">Adjusted EBITDA margin, excluding special items </p>
</td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">14.7 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">15.2 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">14.9 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">14.5 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">15.0 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z59693e8aa539487ba30a63073b001ebe" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Arconic&#8217;s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) is net margin plus an add-back for depreciation 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 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 Arconic&#8217;s operating performance and the Company&#8217;s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. </td>
</tr>

<tr>
<td>&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Additionally, Adjusted EBITDA, excluding special items is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of Arconic excluding the impacts of special items, such as costs associated with the separation of Alcoa Inc and proxy, advisory and governance-related costs (collectively &#8220;special items&#8221;). This measure provides additional information with respect to Arconic&#8217;s operating performance and the Company&#8217;s ability to meet its financial obligations excluding such costs. </td>
</tr>

<tr>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zef42144e09484d47bd907b68056cfcfd" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">On November 1, 2016, the former Alcoa Inc. was separated into two standalone, publicly-traded companies, Arconic and Alcoa Corporation, by means of a pro rata distribution of 80.1 percent of the outstanding common stock of Alcoa Corporation to Alcoa Inc. shareholders. Accordingly, the results of operations of Alcoa Corporation have been reflected as discontinued operations for all periods presented. </td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">17</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z9b2276a502e94cfe8e89b1f59151ba28" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="23">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Calculation of Financial Measures (unaudited), continued</b><br>
<b>(dollars in millions, except per metric ton amounts)</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="21"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top"><b>Segment Measures</b> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="21"><b>Engineered Products and Solutions</b> </td>
</tr>

<tr>
<td rowspan="2"></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="11"><b>Quarter ended</b> </td>
<td>&#160; </td>
<td>&#160; </td>
<td>&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="7"><b>Six months ended</b> </td>
</tr>

<tr>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>March 31,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">329 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">306 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">310 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">634 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">616 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Third-party sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,465 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,485 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,484 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,914 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,969 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA Margin </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">22.5 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">20.6 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">20.9 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">21.8 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">20.7 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="21"><b>Global Rolled Products<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup></b> </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="11"><b>Quarter ended</b> </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="7"><b>Six months ended</b> </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>March 31,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">163 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">171 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">164 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">318 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">335 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Total shipments<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> (thousand metric tons) (kmt) </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">429 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">414 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">405 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">814 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">819 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA / Total shipments ($ per metric ton) </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">380 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">413 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">405 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">391 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">409 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Third-party Sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,316 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,249 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,268 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,500 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,517 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA Margin </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12.4 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">13.7 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12.9 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">12.7 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">13.3 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="21"><b>Transportation and Construction Solutions</b> </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="11"><b>Quarter ended</b> </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="7"><b>Six months ended</b> </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>March 31,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">76 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">72 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">82 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">140 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">154 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Third-party sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">467 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">449 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">501 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">896 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">950 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Adjusted EBITDA Margin </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">16.3 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">16.0 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">16.4 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">15.6 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">16.2 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="21"><b>Arconic Combined Segments</b> </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="11"><b>Quarter ended</b> </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="7"><b>Six months ended</b> </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>March 31,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Combined segment adjusted EBITDA </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">568 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">549 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">556 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,092 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,105 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Combined segment third-party sales </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,248 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,183 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,253 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,310 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,436 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="top">Combined segment adjusted EBITDA margin </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">17.5 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">17.2 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">17.1 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">17.3 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">17.2 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z2d4950bc2509406991e24788b3f01914" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Arconic&#8217;s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation 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 and amortization. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. </td>
</tr>

<tr>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="za49d9b5a7f4e4efd89b2a34d0cefa0eb" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">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. </td>
</tr>

<tr>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"></td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Includes 72 thousand metric tons (kmt) and 76 kmt for the quarters ended June 30, 2017 and March 31, 2017, respectively, for the Tennessee packaging business. These amounts represent the volume at Arconic&#8217;s Tennessee operations associated with the toll processing and services agreement that Arconic and Alcoa Corporation entered into in connection with the separation of the companies. Pursuant to this agreement, this amount is not reported in Arconic&#8217;s shipments but has been included in the calculation of Adjusted EBITDA / Total shipments for historical comparative purposes. </td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">18</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z0195bc6fee7940baac80cb35317b2397" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="18">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Calculation of Financial Measures (unaudited), continued</b><br>
<b>(dollars in millions)</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="8"></td>
<td>&#160; </td>
<td>&#160; </td>
<td>&#160; </td>
<td colspan="5"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 5px" valign="bottom"><b>Revenue Excluding Tennessee Packaging</b> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="8"><b>Quarter ended</b> </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="5"><b>Six months ended</b> </td>
</tr>

<tr>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>March 31,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="2">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="middle">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u>Arconic</u> </p>
</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="middle">Sales &#8211; Arconic </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,234 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,192 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,261 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,289 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,453 </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 5px" valign="middle">Sales &#8211; Tennessee Packaging </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">189 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">54 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">51 </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">339 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">105 </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 20px" valign="middle">Arconic Sales excluding Tennessee Packaging </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,045 </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,138 </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">3,210 </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,950 </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,348 </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="middle">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u>Global Rolled Products Segment (GRP)</u><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </p>
</td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 5px" valign="middle">Sales &#8211; Global Rolled Products Segment </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,316 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,249 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,268 </td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,500 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,517 </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 5px" valign="middle">Sales &#8211; Tennessee Packaging </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">189 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">54 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">51 </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">339 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">105 </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 20px" valign="middle">Third-party sales excluding Tennessee packaging </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,127 </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,195 </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,217 </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,161 </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,412 </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z0d28c6b3704f4dd586e547eebf22a057" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Third-party sales excluding Tennessee packaging is a non-GAAP financial measure. Management believes that this measure is meaningful to investors as it presents sales on a comparable basis for all periods presented due to the impact of the ramp-down and Toll Processing Agreement with Alcoa Corporation at the North America packaging business at its Tennessee operations. </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zdf21c42576ab4ab283146af3fa050523" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">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. </td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">19</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z17ad9077e91f46898c58deca01cdd124" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="23">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Calculation of Financial Measures (unaudited), continued</b><br>
<b>(dollars in millions)</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="11"></td>
<td>&#160; </td>
<td>&#160; </td>
<td>&#160; </td>
<td colspan="7"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top" rowspan="2"><b>Free Cash Flow <sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup></b> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="11"><b>Quarter ended</b> </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top" colspan="7"><b>Six months ended</b> </td>
</tr>

<tr>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">June 30, </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">March 31, </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">June 30, </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>June 30,</b> </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Cash from operations </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">332 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(300 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">217 </td>
<td></td>
<td></td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(98 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(83 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Capital expenditures </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(277 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(103 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(126 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(528 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(229 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td></td>
<td></td>
<td colspan="3"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 0px" valign="top">Free cash flow </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">55 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(403 </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">91 </td>
<td style="BORDER-BOTTOM: black 2.25pt double">&#160; </td>
<td></td>
<td></td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(626 </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(312 </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zed9c0b5493e4410199ac1bde42d6bc71" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Free cash flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered necessary to maintain and expand Arconic&#8217;s asset base and are expected to generate future cash flows from operations. It is important to note that Free cash flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. </td>
</tr>

<tr>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zc3682bb8545747f6acd1771cc7191a71" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">On November 1, 2016, the former Alcoa Inc. was separated into two standalone, publicly-traded companies, Arconic and Alcoa Corporation, by means of a pro rata distribution of 80.1 percent of the outstanding common stock of Alcoa Corporation to Alcoa Inc. shareholders. Cash from operations and Capital expenditures for Alcoa Corporation have not been segregated and are included in this table for all periods prior to November 1, 2016. </td>
</tr>

<tr>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z46835857f24e419cb4577109361da8cb" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"><b>Net Debt</b> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="2">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">December 31, </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2016</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="2">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">March 31, </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
<td>&#160; </td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px" valign="top" colspan="2">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">June 30, </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>2017</b></u> </p>
</td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Short-term borrowings </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">36 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">47 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">48 </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Long-term debt due within one year </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">4 </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">- </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Long-term debt, less amount due within one year </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">8,044 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">8,046 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,796 </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Total debt </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">8,084 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">8,093 </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,844 </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 0px" valign="top">Less: Cash and cash equivalents </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,863 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,553 </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,785 </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td colspan="2">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px; PADDING-LEFT: 0px" valign="top">Net debt </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">6,221 </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,540 </td>
<td></td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,059 </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z995ac903bdf84642be9c853d9474c69f" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">Net debt is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Arconic&#8217;s leverage position after factoring in available cash that could be used to repay outstanding debt. </td>
</tr>

<tr>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 10pt; CLEAR: both" id="DSPFPageBreakArea">
<div style="TEXT-ALIGN: center" id="DSPFPageNumberArea"><font style="FONT-STYLE: normal; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-SIZE: 10pt; FONT-WEIGHT: normal" id="DSPFPageNumber">20</font></div>

<div style="PAGE-BREAK-AFTER: always" id="DSPFPageBreak">
<hr style="BORDER-RIGHT-WIDTH: 0px; BACKGROUND-COLOR: #000000; MARGIN: 4px 0px; WIDTH: 100%; BORDER-TOP-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; HEIGHT: 2px; COLOR: #000000; CLEAR: both; BORDER-LEFT-WIDTH: 0px" noshade="noshade">
</div>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z69886687cec64336ad26d88b449adaeb" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top" colspan="5">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><b>Arconic and subsidiaries</b><br>
<b>Calculation of Financial Measures (unaudited), continued</b><br>
<b>(dollars in millions)</b> </p>
</td>
</tr>

<tr>
<td></td>
<td>&#160; </td>
<td colspan="3"></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top"><b>Return on Net Assets (RONA)</b> </td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="font-weight: bold; MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">Six months ended </p>

<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>June 30, 2017</b></u> </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom">Net income attributable to Arconic </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">534 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 15px" valign="bottom">Special items<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">(200 </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">) </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom">Net income attributable to Arconic &#8211; as adjusted </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">334 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom"></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom">Annualized net income attributable to Arconic-as adjusted </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">668 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom">Net Assets: </td>
<td></td>
<td style="TEXT-ALIGN: center; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom" colspan="3">
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><u><b>June 30, 2017</b></u> </p>
</td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="bottom">Add: Receivables from customers, less allowances </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,170 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="bottom">Add: Deferred purchase program<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">222 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 15px" valign="bottom">Add: Inventories </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,416 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 15px" valign="bottom">Less: Accounts payable, trade </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">1,667 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom">Working capital </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">2,141 </td>
<td></td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px; PADDING-LEFT: 15px" valign="bottom">Properties, plants, and equipment, net </td>
<td></td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
<td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">5,507 </td>
<td style="BORDER-BOTTOM: black 1pt solid">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom">Net assets - total </td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">$ </td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">7,648 </td>
<td></td>
</tr>

<tr>
<td></td>
<td></td>
<td colspan="3">&#160; </td>
</tr>

<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="bottom">RONA </td>
<td></td>
<td></td>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">8.7 </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom">% </td>
</tr>

<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="zb971422fa2234b048e744f1a3b9431cd" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">RONA is a non-GAAP financial measure. RONA is calculated as adjusted net income divided by working capital and net PP&amp;E. Management believes that this measure is meaningful to investors as RONA helps management and investors determine the percentage of net income the company is generating from its assets. This ratio tells how effectively and efficiently the company is using its assets to generate earnings. </td>
</tr>

<tr>
<td>&#160; </td>
</tr>
</table>
</div>

<div style="TEXT-ALIGN: left">
<table style="WIDTH: 100%; FONT-FAMILY: Times New Roman; MARGIN-BOTTOM: 10px; FONT-SIZE: 8pt" id="z46d941bdfe7a401da98181a7b1716455" cellspacing="0">
<tr>
<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="bottom"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(1)</sup> </td>
<td>&#160; </td>
<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">See Reconciliation of Adjusted Income for a description of special items. </td>
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<td colspan="3">&#160; </td>
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<td style="TEXT-ALIGN: right; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; WHITE-SPACE: nowrap" valign="top"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">(2)</sup> </td>
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<td style="TEXT-ALIGN: left; PADDING-LEFT: 0px" valign="top">The Deferred purchase program relates to an arrangement to sell certain customer receivables to several financial institutions on a recurring basis. Arconic is adding back the receivable for the purposes of the Working Capital calculation. </td>
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<td>&#160; </td>
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<p>CONTACT:<br>
Arconic Inc.<br>
Investor Contact:<br>
Patricia Figueroa, 212-836-2758<br>
<u>Patricia.Figueroa@arconic.com</u><br>
or<br>
Media Contact:<br>
Shona Sabnis, 212-836-2626<br>
<u>Shona.Sabnis@arconic.com</u></p>
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