Arconic Corporation Investor Day June 6, 2022
Important Information 2 Forward-Looking Statements This presentation contains statements that
relate to future events and expectations and, as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as
"anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning. All
statements that reflect Arconic’s expectations, assumptions, projections, beliefs or opinions about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, relating to
the condition of, or trends or developments in, the ground transportation, aerospace, building and construction, industrial, packaging and other end markets; Arconic’s future financial results, operating performance, working capital, cash
flows, liquidity and financial position; cost savings and restructuring programs; Arconic's strategies, outlook, business and financial prospects; share repurchases; costs associated with pension and other postretirement benefit plans;
projected sources of cash flow; and potential legal liability. These statements reflect beliefs and assumptions that are based on Arconic’s perception of historical trends, current conditions and expected future developments, as well as other
factors Arconic believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from those indicated by these forward-looking statements due to a
variety of risks, uncertainties and changes in circumstances, many of which are beyond Arconic’s control. Such risks and uncertainties include, but are not limited to: (a) continuing uncertainty regarding the duration and impact of the
COVID-19 pandemic on our business and the businesses of our customers and suppliers including labor shortages and increased quarantine rates; (b) deterioration in global economic and financial market conditions generally; (c) unfavorable
changes in the end markets we serve; (d) the inability to achieve the level of revenue growth, cash generation, cost savings, benefits of our management of legacy liabilities, improvement in profitability and margins, fiscal discipline, or
strengthening of competitiveness and operations anticipated or targeted; (e) adverse changes in discount rates or investment returns on pension assets; (f) competition from new product offerings, disruptive technologies, industry
consolidation or other developments; (g) the loss of significant customers or adverse changes in customers’ business or financial condition; (h) manufacturing difficulties or other issues that impact product performance, quality or safety;
(i) the impact of pricing volatility in raw materials and inflationary pressures on our costs of production; (j) a significant downturn in the business or financial condition of a key supplier or other supply chain disruptions; (k) challenges
to or infringements on our intellectual property rights; (l) the inability to successfully implement our re-entry into the U.S. packaging market or to realize the expected benefits of other strategic initiatives or projects; (m) the inability
to identify or successfully respond to changing trends in our end markets; (n) the impact of potential cyber attacks and information technology or data security breaches; (o) geopolitical, economic, and regulatory risks relating to our global
operations, including compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (p) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental
remediation and compliance matters; (q) restrictions imposed by authorities on the operation of our Samara, Russia facility; (r) the impact of the potential divestiture of our Samara facility; (s) the impact of the conflict between Russia and
Ukraine on economic conditions in general and on our business and operations; and (t) the other risk factors summarized in Arconic’s Form 10-K for the year ended December 31, 2021 and other reports filed with the U.S. Securities and Exchange
Commission (SEC). The above list of factors is not exhaustive or necessarily in order of importance. Market projections are subject to the risks discussed above and in this presentation, and other risks in the market. The statements in this
presentation are made as of the date of this presentation, even if subsequently made available by Arconic on its website or otherwise. Arconic disclaims any intention or obligation to update publicly any forward-looking statements, whether in
response to new information, future events, or otherwise, except as required by applicable law.
Important Information (cont’d) 3 Non-GAAP Financial MeasuresSome of the information included in
this presentation is derived from Arconic’s consolidated financial information but is not presented in Arconic’s financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).
Certain of these financial measures are considered “non-GAAP financial measures” under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to any measure of performance or
financial condition as determined in accordance with GAAP, and investors should consider Arconic’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial
condition of Arconic. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP. Non-GAAP
financial measures presented by Arconic may not be comparable to non-GAAP financial measures presented by other companies. Reconciliations to the most directly comparable GAAP financial measures and management’s rationale for the use of the
non-GAAP financial measures can be found in the appendix to this presentation. Arconic has not provided reconciliations of any forward-looking non-GAAP financial measures, such as adjusted EBITDA, free cash flow, and adjusted free cash flow,
to the most directly comparable GAAP financial measures because such reconciliations 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 metal price lag, foreign currency movements, 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. Arconic believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.
Agenda 4 Introduction Tim Myers – Chief Executive Officer Market Outlook Mark Vrablec – EVP and
Chief Commercial Officer Financial Overview Erick Asmussen – EVP and Chief Financial Officer Environmental, Social, and Governance Daniel Fayock – EVP and Chief Legal OfficerMelissa Miller – EVP and Chief Human Resources OfficerEric
Brzostek – Director, Environmental Affairs Growth Projects John Butler – VP, Technology and Engineering Value Creation Proposition Tim Myers Questions and Answers Tim Myers and Erick Asmussen
Arconic is a Growth Company in a Sustainable Industry 5 Positioning Arconic to deliver ~10% Adjusted
EBITDA CAGR in 2022-2026~$375M of EBITDA growth from Phases 1 and 2 and another $200M+ from Phase 3 REPEATABLEDOUBLE-DIGIT EBITDA GROWTH Infinitely recyclable: ~75% of all aluminum ever produced still in circulation today2030 roadmap
aligning with United Nations Sustainable Development Goals SUSTAINABILITY MACRO TRENDS DRIVING DEMAND A leadership position with growth expected in all five end marketsRecent investments underpinned by strong industrial demand and trade
casesSubstantial growth opportunities in automotive driven by light-weighting and electrificationRecovery in aerospace demand with favorable long-term contractsGrowing aluminum packaging demand validating re-entry to North American
industry DIVERSE EXPOSURETO STRONGEND MARKETS Increasing cash flows to drive targeted organic investments and returns to shareholdersModest TTM net leverage of ~2x with no near-term maturities and substantial liquidity of $1.3B MULTIPLE
LEVERSTO DRIVE VALUEIN NEAR TERM
6 Arconic at a Glance Employees Manufacturing Facilities ~13,900 21 2022 Guided Adjusted
EBITDA 2022 GuidedAdjusted EBITDA Growth Y/Y $820M-$870M 15%-22% 2022 Guided Revenue 2022 Guided Free Cash Flow $9.9B-$10.3B ~$250M See appendix for non-GAAP financial measure reconciliations. 2021 Sales by End Market 2021 Sales by
Segment 2021 Sales by Country
7 Substantial Returns Since Separation Total Return Analysis Since Separation1 Source: Bloomberg.
Total Return Analysis. From 4/1/2020 separation date through market close 6/2/2022. Average of select peers: Constellium and Kaiser Aluminum. 15% year over year Adjusted EBITDA growth since 2020Returned $177M of capital to shareholders in
form of share repurchasesSubstantially reduced gross pension liability by $1.3BRe-entered North American packaging business with secular growth tailwindsSecured over $3.5B of revenue in long-term contracts in aerospace and packagingLancaster
and Davenport investments on track – additional run rate ~$75M of EBITDA by YE2023
8 Significant Upside for Shareholders Expected Going Forward Analyst Ratings and Price
Targets Midpoint of 2022 guided range.Compared with 2019 Adjusted EBITDA. Compared to December 31, 2019 utilization levels.As of market close 6/2/2022. Sell-Side Research Firm Rating Price Target Benchmark BUY $50 Credit
Suisse BUY $45 Wolfe Research BUY $38 JP Morgan BUY $35 Deutsche Bank BUY $34 Goldman Sachs NEUTRAL $32 Average $39 External analyst view from current price4 34% Path to Long-Term Adjusted EBITDA Target
($M) 2022 Guidance1 Russian EBITDA1 Aerospace Recovery Volume + Price Growth Phase 2 Investment YE2025Run Rate EBITDA GROWTH2 OPPORTUNITY RUN RATE EXPECTED BY 600M lbs Latent Capacity3Permanent Cost OutProductivity
Measures ~$300M 2H 2022 On Track ~$75M YE 2023 On Track Lancaster / Davenport Upgrades PHASE1 PHASE2 Phase 3 Investment Announcing the next phase oforganic growth through YE2025“Under the rooftop” recycling and
debottlenecking investments planned for Lancaster, Davenport, and Köfém (Hungary)Projected over $200M of EBITDA growth~$550M of estimated capital expendituresIRRs over 35%Reducing carbon footprint with increased recycling capacity and
efficiency gains $1,200+ +
9 Strategic Portfolio Changes and Phase 4 Growth Optionality Evaluating Phase 4 Growth
OptionsAdditional investment opportunities have been identified beyond those in Phase 3Arconic can continue to grow EBITDA through disciplined organic volume growth and targeted cost reduction in the form of casting pits, debottlenecking, and
other initiatives“Under the rooftop” growth projects provide higher IRRs with lower risk and faster implementation than greenfield investmentMarket demand remains strong and these investments are supported by the current supply/demand
balance Pursuing Options to Revise PortfolioEvaluating sale of Kawneer business within Building and Construction Systems segmentTransaction could unlock value due to premium multiple commanded in the building and construction segmentProceeds
could be used for organic growth or capital returns to shareholdersAnnounced intent to pursue a sale of Russian operationsCurrently reviewing options to execute a transaction while maintaining operations and complying with all applicable
laws
Market Outlook Mark Vrablec – EVP and Chief Commercial Officer
Markets Served and Diversified Blue-Chip Customers 11 2021 Sales by End Market Market Growth
Indicator CAGR Ground Transportation Automotive U.S. + Canada autobody sheet consumption +9% Commercial Transportation North Americaclass 8 truck production +8% Industrial Products and Other Global electrical, consumer durables,
and machinery & equipment consumption +3% Building and Construction U.S. non-residential construction spend +5% Packaging North American can sheet consumption +5% Aerospace Large commercial aircraft deliveries +15%
12 Ground Transportation: Automotive Market Outlook North America 2022 automotive production is
expected to grow in the low double-digits year-over-year, yet vehicle production remains well below historical levels as the industry continues to deal with supply chain challengesU.S. auto dealer inventory levels remain at historic lows,
sitting at 26 days at the end of April 2022Aluminum auto body sheet demand CAGR of 9% outpaces North America light vehicle production growth, driven by the need for light weighting in both internal combustion and EV powertrainsIn 2021,
Company captured content on 23 programs, including 9 EVs, with launch dates in 2H21-2022 Auto Body Sheet ConsumptionU.S. + Canada 2021-20261 (B lbs) CRU Aluminium Rolled Products Market Outlook, February 2022. Data reported in kmt by CRU
and converted to billions of lbs. 9% CAGR
13 Ground Transportation: Automotive1 Overview Liftgate outer Joining solutions RSRTM Engineered
surfaces Body inner structure Hood Outer Hood Inner Radiator Crash structure Driveshaft Outer panels Battery case Seat frame B-Pillar Door inner Liftgate inner Automotive Participation Sheet and
Plate Davenport, U.S. Lancaster, U.S. Tennessee, U.S. Kunshan, China2 Köfém, Hungary2 Extrusions Lafayette, U.S. Massena, U.S. Hannover, Germany Contract Structure Multiple contract structures including multi-year
life of program agreements, one-to-three-year agreements and spot sales Scrap Utilization Limited alloy complexity enables third party scrap utilization and closed loop systems with customers Sustainability Auto light-weighting with
aluminum content drives fuel efficiency gains Content on 67 Programs Automotive typically makes up ~70% of ground transportation sales.Brazing sheet only
14 Electric Vehicles: Next Big Growth Catalyst in Automotive Aluminum Winning Content on Marquee EV
Platforms GMC Hummer EV Pickup GM BrightDrop Electric Delivery Van EVs are 25%-35% more aluminum intensive than conventional vehicles1Global light duty EV sales expected to increase to 26.8M units in 2030 from 6.3M units in 2021 or a CAGR
of ~17%2 DuckerFrontier, 2020 North America Light Vehicle Aluminum Content and Outlook Final Report Summary, July 2020.S&P Global Platts Analytics, February 2022. Company revenue related to electric vehicles expected to nearly double in
2022 year over year to more than $250 million globally
Ground Transportation: Commercial Transportation Market Outlook 15 Class 8 Truck ProductionNorth
America 2021-20261 (000 trucks) Demand for Class 8 Trucks remains strong with backlogs near 2018 record highSome short-term impact to Class 8 production due to component shortages, including semiconductor chipsNew emission regulations,
driven by the California Air Resources Board (CARB), will be implemented in 2024 and 2027, driving pre-buy demand in 2023 and 2026, with subsequent reduction in production ACT Class 8 Production, updated May 2022. 8% CAGR
Ground Transportation: Commercial Transportation Overview 16 Commercial Transportation
Participation Sheet and Plate Davenport, U.S. Lancaster, U.S. Tennessee, U.S. Bohai, China Köfém, Hungary Contract Structure Typical one-to-three-year agreements via distribution or directed-buy arrangements with OEMs Scrap
Utilization Alloy specific scrap available from third parties subject to market availability Sustainability Heavy duty truck and trailer light-weighting with aluminum content drives fuel efficiency gains Leading Position with Top Two
OEMs Commercial transportation typically makes up ~30% of ground transportation sales.
17 Industrial Aluminum Products Market Outlook Strong global demand and pricing environment expected
to continue Semiconductor equipment, appliance, and personal watercraft markets are key drivers of industrial demand growthMarket pricing structure adapted to include a higher level of inflationary protection/pass through Arconic industrial
demand growth historically tracks close to US GDP growth Industrial Rolled Product ConsumptionGlobal 2021-20261 (B lbs) CRU Aluminium Rolled Products Market Outlook, February 2022; Electrical, Consumer Durables, and Machinery &
Equipment for rolled products consumption derived from; reported in kmt and converted to billions of lbs. 3% CAGR
18 Industrial Products and Other Overview Example Industrial End Products Tooling
plate Cylinders Tread sheet Recreational vehicles Cookware circles Extruded rod and bar Sheet and Plate Davenport, U.S. Lancaster, U.S. Tennessee, U.S. Kitts Green, United Kingdom Köfém, Hungary Extrusions Lafayette,
U.S. Massena, U.S. Hannover, Germany Contract Structure Primarily sold through distribution under one-year contracts negotiated in 3Q/4QTypically, majority of the next year’s sales contracted with remainder sold at spot Scrap
Utilization Common alloy scrap available from third partiesSpecific products developed to consume scrap generated by other segments Sustainability Light-weight strength and recyclability makes aluminum essential to a range of industrial
applications 21%of 2021 Sales
U.S. Trade Actions Leveled Playing Field in Common Alloy 19 Duties first imposed on common alloy from
China in 2018 reduced imports of the subject goods, but were replaced by imports from several other countriesInternational trade actions on 16 additional countries finalized in March 2021 significantly reduced total U.S. imports of common
alloy aluminum sheet1North America trade actions to remain in place through at least 2025. European suspension of China duty expires in July 2022U.S. and European common alloy conversion fees up 33%2 and 80%3 year over year,
respectively Case filed March 9, 2020, and Final Determination issued March 2, 2021; antidumping duties imposed on Bahrain, Brazil, Croatia, Egypt, Germany, India, Indonesia, Italy, Oman, Romania, Serbia, Slovenia, South Africa, Spain,
Taiwan, and Turkey; countervailing duties imposed on Bahrain, India, and Turkey.5052 Sheet Conversion Fees derived from CRU Aluminum Products Monitor dataset, May 2022; Comparing May 2022 to May 2021.Germany 5754 Sheet Conversion Fees derived
from CRU Aluminum Products Monitor dataset, May 2022; Comparing May 2022 to May 2021.Aluminum Association, U.S. Import Dashboard, December 2022. U.S. Aluminum Sheet Imports 2018 – 2021(Excluding Can Sheet) (B lbs)4 (38%)
20 Building and Construction Segment Overview U.S. non-residential construction spend expected to
return to modest growth in 2022 and accelerate starting in 2023U.S. infrastructure stimulus supporting new projects across a broad range of building segments including schools and transportation U.S. Non-Residential Construction Put in Place
($B)1 FMI, 2022 North American Engineering and Construction Outlook, First Quarter Edition. 5% CAGR
21 Building and Construction Overview Kawneer Sunshades/ Light Kawneer Balcony
/Terrace doors Reynobond / Reynolux Kawneer entrances Kawneer Window wall systems Kawneer Framingsystems Kawneer curtain wall systems Reynolux Roofing Windows Building and Construction Systems Participation Rolled Products
Participation Pre-painted coils Roof sheet Decorative panels Ceiling panels Awnings Gutters Building and Construction Systems (BCS) Various U.S. locations Lethbridge, Canada Merxheim, France Runcorn, United Kingdom Sheet and
Plate Lancaster, U.S. Köfém, Hungary Contract Structure BCS sales primarily on project basisSheet and plate sold primarily through distributors or fabricators on short-term contracts or spot basis Scrap Utilization Third party scrap
usage limited by market availabilitySpecific products developed to consume scrap generated by other segments Sustainability Aluminum construction materials are some of the most energy efficient available and help builders achieve
sustainability certifications 17%of 2021 Sales
22 Aluminum Packaging Outlook U.S. market remains very strong and scrap spreads have moved
favorablyAnnual U.S. imports of beverage cans increased more than 625% on a monthly basis from 2019 to 20211Imports of can sheet into the U.S. reached 490 million lbs in 2021. Market expected to remain in deficit through 2026 Improved pricing
seen globally, incorporating inflationary protection and key element pass through North American Can Sheet Consumption U.S. + Canada 2021-20261 (B lbs) CRU Aluminium Rolled Products Market Outlook, February 2022; can stock for rolled
products consumption; reported in kmt and converted to billions of lbs.Aluminum Association Al Can Import Report, January 2022. Six can manufacturers have announced a total ofat least 30 new can lines to be installed in the U.S.over the next
3-5 years 5% CAGR
23 Aluminum Packaging Overview Packaging Sheet Tennessee, U.S. Samara, Russia1 Bohai,
China Contract Structure Primarily sold through contracts spanning one-to-three-years Scrap Utilization Can sheet utilizes industry-leading levels of post-consumer (used beverage can) and post-industrial scrap
Sustainability Recyclability of aluminum packaging and avoidance of plastic makes aluminum a top choice for consumers 16%of 2021 Sales Announced intention to pursue sale of operations in Samara, Russia.
24 Aerospace Market Outlook Domestic TSA checkpoint travel numbers return to near pre-pandemic
levelsInternational traveler numbers growing but will take until mid-decade to achieve pre-pandemic levelsCompany has had five straight quarters of sequential revenue growthAirbus has confirmed plans to hike production rates of its A320
family to 75 jets per month by 2025Announced long-term contracts for more than $2B in aerospace revenue with three major customers running to the end of the decade Boeing and AirbusEstimated Deliveries1 Bloomberg combined Boeing and Airbus
analyst consensus aircraft deliveries as of 5/24/2022. 15% CAGR
25 Aerospace Overview Aircraft Participation Sheet and Plate Davenport, U.S. Kitts Green, United
Kingdom Extrusions Lafayette, U.S. Massena, U.S. Hannover, Germany Contract Structure Major business with OEMs primarily sold under long-term contract (five or more years) Scrap Utilization Limited scrap use due to demands of
aerospace specifications Sustainability Recyclability for end-of-life aircraft remains an opportunity to enhance scrap utilization 9%of 2021 Sales
Financial Overview Erick Asmussen – EVP and Chief Financial Officer
Disciplined Capital Allocation Framework 27 Phase 3 investments at high IRRs with additional options
moving forward Plan to repurchase remaining $123M under existing $300M two-year program by year-end 2022 As free cash flow stabilizes and grows, dividend initiation becomes an option Opportunities exist to right-size the portfolio and grow
in core business ORGANIC GROWTH SHARE REPURCHASES DIVIDENDS DISCIPLINED STRATEGIC M&A
28 Capital Structure Drives Flexibility for Growth Cash + capacity under asset-based lending
facility: ~$1.3B Net Debt / TTM Adjusted EBITDA: 2xLong-term target: ~2x (excluding pension impact) Rising interest rates drive favorable discount rate move in pension and OPEB calculation resulting in a further decline in the gross
liability LIQUIDITY LEVERAGE PENSION /OPEB
U.S. Pension Funding Progression 29 Current Projected U.S. Pension Contributions vs. Expectations at
Separation Pension Actions Since SeparationTwo U.S. annuitizations completed in December 2020 and April 2021Aggregate cost of annuitizations was ~$10M and pension plan administrative savings were ~$12M per year Expectation: At
Separation Current 2020 $256M $256M 2021 $180M $450M 2022 $180M $22M 2023 $170M $30M-$32M 2024 $160M $21M-$31M Reduced 2022-2024 funding from~$500M to ~$100M U.S. Plan Participants Gross U.S. Pension Liability ($M) Net
U.S. Pension Liability ($M) Pension discount rate at separation was 3.35% compared with March 31, 2022 discount rate of 3.91%.
30 Cash Deployed Since Separation For Significant Deleveraging As projected, significant cash outlays
early in Company’s history reduced ongoing obligationsfor the longer term resulting in more cash to invest in the business Free cash flow1 ($628) Pension contributions and service cost2 743 Environmental remediation 153 Estimated
aluminum impact3 400 Accounts receivable sales (62) Free cash flow excluding impacts of pension, environmental, aluminum price, and AR Sales $606 Free Cash Flow Since Separation ($M) Combined Pension Contributions, OPEB,
andEnvironmental Payments ($M) See appendix.Pension contributions of $701M plus service cost of $42M.Impact of aluminum price on working capital calculated using previously disclosed sensitivity.LME + Midwest Premium price per metric
ton. Date Midwest Transaction Price4 4/1/2020 $1,723 12/31/2020 $2,301 12/31/2021 $3,471 5/31/2021 $3,631 Aluminum Price Since Separation $332MReduction
31 Capital Return Plans Month Shares Repurchased May-21 121,541 Jun-21 124,470
Jul-21 563,603 Aug-21 1,293,844 Sep-21 1,005,247 Oct-21 595,550 Nov-21 426,727 Dec-21 781,523 Jan-22 180,043 Feb-22 325,939 Total 5,418,487 Repurchased $177M of Shares in First 10 Monthsof Two-Year $300M
Authorization Approximately 5% of shares outstanding repurchased to date$123M remaining under existing share repurchase authorizationDividend to be initiated as free cash flow grows
Exploring Sale of Kawneer Business 32 Evaluating strategic options in Building and Construction
Systems businessesKawneer, which represents approximately 85% of BCS EBITDA, holds a leading position in the building and construction industryRecent transactions in the space have occurred at valuations at a significant premium to Arconic’s
current EV/EBITDA multipleProceeds could be deployed to fund organic growth and enhance shareholder returns
Environmental, Social, and Governance Daniel Fayock – EVP and Chief Legal OfficerMelissa Miller – EVP
and Chief Human Resources OfficerEric Brzostek – Director, Environmental Affairs
Aluminum’s Advantage Is its Sustainability and Versatility 34 Sustainable Versatile From beverage
cans to electric vehicles, aluminum is the optimal solution for a wide range of applications critical to modern societyArconic’s position across five different end markets is a function of diverse assets and a strategic marketing
effort Aluminum… …is infinitely recyclable with nearly 75% of all aluminum ever produced still in circulation today1…reduces energy consumption through the light-weighting of vehicles and energy efficient building construction…is
increasingly processed with secondary materials The Aluminum Association.
Board and Governance 35 Highly Qualified and Diverse Board of DirectorsHighly experienced independent
ChairpersonIndustry, M&A, and financial expertiseVery low Director tenureDiverse Board in terms of gender, race, experience and skills80% independent20% female25% Board leadership diversity Best in Class Governance PracticesAnnual
election of DirectorsMajority voting in uncontested Director electionsCommitted engagement with shareholdersSafety and environmental performance reviewed at every regular Board meetingBoard risk oversight and annual Enterprise Risk Management
reviewISS QualityScore of 1Board oversight and commitment to ESG
24% days away, restricted and transfer rate Safety 7% total recordable incident
rate Environmental Diversity and Inclusion 5.5% Scope 1 greenhouse gas emissions intensity 21.5% female employees 22% ethnically diverse employees >4,300 employee actions to advance inclusion, diversity and social equity GROW
TOGETHER INITIATIVE score = 100 Corporate Equality Index(Best Places to Work)13 years running HUMAN RIGHTS CAMPAIGN FOUNDATION Scope 2 greenhouse gas emissions intensity 24% female management 20% 40% female executives UN Global
Compact Engagement Target Gender Equality Accelerator Initiative Women’s Empowerment Principles Formed Sustainability & ESG Council that provides recommendations to the Board Governance and Nominating Committee to drive and guide
sustainability progress Other Highlights 2021 ESG Report Highlights ethnically diverse management ethnically diverse executives 13% 30% 36
2022 Sustainability and ESG Goals Summary Arconic will drive sustainability as a key collaborator
within the value chain by:Implementing a 2030 roadmap to address:Emissions (Scopes 1, 2 and 3) and energyProduct innovationOur peopleResponsible supply chain principlesLeveraging partnership opportunitiesParticipating in industry
initiativesImproving ESG reporting and transparency Arconic will build its ESG leadership position and plans to communicate:Emissions targets covering Scopes 1, 2 and 3 for 2030/2050 upon completion of internal data assurance
evaluationAlignment of 2030 roadmap with the United Nations Sustainable Development Goals (UNSDGs)Development of measurable 2023 executive compensation targets for ESG performance 37
Arconic’s Carbon Footprint Dominated by Value Chain Emissions 2021 Estimated Carbon Emissions by
Source 38 Purchased goods and services (prime aluminum, scrap, alloying materials, etc.) represent ~80% of Arconic’s total carbon footprint, which are captured in Scope 3 emissionsScope 3 emissions are the main driver of total GHG
emissionsSustainable sourcing of prime aluminum and increased recycled content will have the greatest reduction impact on decarbonization
Decarbonization Strategy and GHG Reduction Target Development Emissions Targets 2Q 2022 – Marginal
Abatement Cost Curve (MACC) 3Q 2022 – Third party baseline assurance (GHG and energy data) 3Q 2022 – Reset GHG baseline 4Q 2022 – Completion of work to finalize GHG targets 39
Growth Projects John Butler – VP, Technology and Engineering
41 ALLOYING, MELTING, AND CASTING SCALPER PREHEAT FURNACE HOT MILL ANNEALING FURNACE COLD
MILL FINISH GAUGE COILS DELIVERY TO MILL HEATED INGOT FINISHING & PACK/SHIP OPERATIONS Typical Flat-Rolled Product Flow Path Debottlenecking in the hot and cold mill phases increases output capacity
with high returns Investing in the melting and casting phase of the flow path both reduces costs and increases recycling capacity
42 Phase
3 Growth Project Summary and Financial Projections Projects represent over $200M of Adjusted EBITDA for ~$550M of capex Davenport Projects Industrial growth hot mill debottlenecking Casting pit optimization Adjusted
EBITDA ~$20M Capex ~$50M IRR >40% Run-rate YE2024 Lancaster Projects Two new casting pits Industrial growth through debottlenecking Adjusted EBITDA ~$170M Capex ~$460M IRR >35% Run-rate YE2025 Köfém
(Hungary) Projects Hot mill and slitter expansion Casting pit expansion Adjusted EBITDA ~$15M Capex ~$40M IRR >35% Run-rate YE2024
43 Lancaster Growth Projects Project New casting pit for existing volumes Industrial Growth New
casting pit for growth volumes Description ~385M lbs of casting capacity Incremental volume of ~150M lbs ~200M lbs of casting capacity Cost or Growth Cost Growth Growth End
Markets Industrial EBITDA ~$170M Capital ~$460M IRR >35% Run-Rate By YE2025 Plans in Lancaster increase casting capacity which improves recycling capabilities, reduces costs by cutting spend on ingot premiums,
cuts carbon emissions and increases finished products capacity
44 Davenport Growth Projects Project Pit Optimization Hot and Cold Mill
Debottlenecking Description ~70M lbs of casting capacity Incremental volume of ~25M lbs Cost or Growth Cost Growth End Markets Industrial EBITDA ~$20M Capital ~$50M IRR >40% Run-Rate By YE2024 Davenport casting
efficiency gains and debottlenecking efforts are cost effective investments with high IRRs addressing end markets with strong demand
45 Köfém (Hungary) Growth Projects Project Hot Mill and Slitter Debottlenecking Cast House
Expansion Description Incremental volume of ~30M lbs ~40M lbs of casting capacity Cost or Growth Growth Cost / Growth End Markets Ground transportation, Industrial EBITDA ~$15M Capital ~$40M IRR >35% Run-Rate
By YE2024 Köfém expansion of rolling capacity and cast house adds recycling capacity and incremental volume to address strong ground transportation and industrial markets in Europe
Value Creation Proposition Tim Myers – Chief Executive Officer
Long-Term EBITDA Potential Built on Disciplined Organic Growth 47 Path to Long-Term Adjusted EBITDA
Target ($M) Midpoint of 2022 guided range. 1 Phase 3 investments expected to reach run rate EBITDA contribution by YE2025 1 $1,200+ +
From a Humble Beginning to Delivering Sustainable Growth 48 WHERE WE STARTED WHERE WE ARE WHERE
WE’RE GOING Launched in the pandemicInflexible capital structureHeld almost $2B in net pension and OPEB liabilitiesOver $200M in environmental liabilitiesOngoing Grenfell InquiryRussia FAS litigation freezes assets Delivering consistent
double-digit Adjusted EBITDA growthFlexible capital structure, ~$1.3B of liquidityEnvironmental liabilities ~$60M, Grasse River essentially completeNet pension and OPEB liabilities less than $1BExecuting on two high-return growth
projectsRepurchased $177M of sharesFour-year agreement with United SteelworkersPursuing sale of Russian facilityEnd markets buoyant:Aerospace recovery at infancyGround Transportation production challengedNorth American packaging
rampingBuilding and construction growingIndustrial pricing and volume strong Targeting double-digit Adjusted EBITDA growth through 2025High-return, low-risk investments to grow EBITDA and free cash flowAdditional share repurchases and
dividend initiationPension and OPEB primed for minimum funding levelsCapturing value across all key markets:Aerospace to pre-pandemic levelsGround transportation supply chain resolvedNorth American packaging at capacityBuilding and
construction value unlockedIndustrial investments complete
Questions and Answers 49 REPEATABLEDOUBLE-DIGIT EBITDA GROWTH SUSTAINABILITY MACRO TRENDS DRIVING
DEMAND DIVERSE EXPOSURETO STRONGEND MARKETS MULTIPLE LEVERSTO DRIVE VALUEIN NEAR TERM
Appendix
51 Rolled
Products Facilities Building and Construction Systems Facilities Extrusions Facilities Samara, Russia Kunshan, China Székesfehérvár,Hungary Qinhuangdao, China Merxheim, France Runcorn,
U.K. Hannover, Germany Davenport Danville Hutchinson Lancaster Tennessee Springdale Visalia Eastman Bloomsburg Cranberry Lafayette Lethbridge, Alberta Birmingham, U.K. Massena Global Reach and Market Diversity 2021 Revenue by
Country 1 Sales of a portion of aluminum products from Arconic’s plant in Russia were completed through the Company’s international selling company located in Hungary.
52 Rolled Products Announced intent to sell operations in Samara, Russia on May 19, 2022. Segment
Financials 2019-2021 ($M) Facilities U.S. Davenport Lancaster Tennessee United Kingdom Kitts Green Hungary Köfém China Kunshan Bohai Russia Samara1 End Markets Served2021 Revenue Segment Adjusted EBITDA
53 Building and Construction Systems Segment Financials 2019-2021 ($M) Facilities U.S. Springdale,
AR Visalia, CA Eastman, GA Bloomsburg, PA Cranberry, PA Canada Lethbridge, AB United Kingdom Runcorn France Merxheim Brands Revenue Segment Adjusted EBITDA
54 Extrusions Segment Financials 2019-2021 ($M) Facilities U.S. Lafayette, IN Massena,
NY Germany Hannover End Markets Served2021 Revenue Segment Adjusted EBITDA
Our PeopleContinue to build Arconic's workforce to reflect the diversity in the communities where we
operate and facilitate an inclusive environment for all employees. Recruit, develop and retain talent that supports our ability to grow the business togetherCommercial SustainabilityCreate competitive advantages and drive customer
loyalty/business growth for Arconic through advanced sustainable business practicesSourcing & UseImprove upon aluminum sourcing, buy-back initiative to increase scrap utilization/available scrap volume, meet customer agreements and
position Arconic as the supplier of choiceSupply Chain Sustainability Advance Arconic’s ability to identify and manage environmental, human rights and ethics topics within the supply chain to assure compliance with Modern Slavery Act, due
diligence, strive for continuous improvement and mitigate riskDecarbonizationOperate processes to achieve greater efficiencies and execute an ambitious yet credible decarbonization strategy by partnering with stakeholders up and down the
aluminum value chain 2030 United Nations Sustainable Development Goals Roadmap 55
Russia (Samara) Operations Update 56 Since the acquisition of Russian operations in Samara in 2005,
the Company has been subject to operational commitments and restrictions in Russia, including a requirement to accept orders of all domestic customersLitigation with the Russian Federal Anti-Monopoly Service initiated in March 2020 is ongoing
and added restrictions on Samara, including a prohibition on dividends; hearing again postponed until July 21, 2022Sanctions and other trade restrictions starting in February 2022 have made the operations in Russia increasingly difficultWhile
Samara has generally continued to operate at normal levels, sanctions and other trade restrictions, as well as supply and customer constraints, may lead to decreased operating levels over timeArconic announced on May 19, 2022 that it is
pursuing a sale of the Samara operations Samara Facility 2021 Revenueby End Market Samara Facility Expected 2022 Revenue Domestic vs. Exports – Prior to Conflict
57 Grenfell Tower Fire-Status of Legal Proceedings In the UK, Phase 2 of the Grenfell Tower Public
Inquiry is ongoing, but expected to conclude in summer 2022. A Final Report from Phase 2 of the Public Inquiry is expected to be released approximately 9-12 months following the conclusion of Phase 2Also in the UK, the London Metropolitan
Police continue to conduct an investigation and have said that it will not conclude until after the Public Inquiry issues its Final ReportCivil litigation in the UK may continue after those UK investigations closeCivil litigation in the UK
had generally been stayed to allow interested parties to engage in discussions as to a mutually agreeable settlement, and continuance of the stay is under review by the court. Many parties, including a majority of claimants, have agreed to
overarching terms of an Alternative Dispute Resolution framework. Those discussions are ongoingIn the US, the trial court granted Arconic’s motion to dismiss in the Behrens case, finding that the case was more appropriately brought in the UK.
That issue is currently up on appeal. In Howard, the federal securities case, Arconic is seeking to appeal a portion of the trial court’s opinion denying (in part) Arconic’s motion to dismissThe Company maintains insurance attributes
appropriate for its size and scope that were in effect at the time of the event
Gross Pension Liability to Decline Substantially as Interest Rates Rise 58 Estimated U.S. Pension
Plan Funded Status at YE20221 Source: WTW & Mercer Investments, LLC.The FY2022 discount rate is based on the 12/31/2021 WTW 60th-90th RATELink yield curve resulting in a weighted average discount rate of 2.96%. The impact on the
combined gross pension and OPEB liabilities of a change in the weighted average discount rate of 25 basis points would be approximately $100 millionFor the U.S. gross pension liability alone, a change in the weighted average discount rate of
100 basis points would change gross liability by approximately $250 million Annualized Asset Return Weighted Average Discount
Rate 0% 2% 4% 2.96%(FY2022) ($605M) ($571M) ($537M) 4.0% ($350M) ($316M) ($282M) 5.0% ($148M) ($115M) ($81M)
Legacy Pension and OPEB Cash Obligations Down Substantially Annualized Asset
Return 12/31/2022 12/31/2023 12/31/2024 0% ($605M) ($653M) ($701M) 2% ($571M) ($587M) ($605M) 4% ($537M) ($520M) ($504M) U.S. Qualified Pension Discretionary Contributions $22M $30M-$32M $21M-$31M Other Pension
Contributions and Benefit Payments ~$10M ~$10M ~$10M OPEB Benefit Payments $29M $27M $27M Estimated U.S. Pension Plan Funded Status Source: WTW & Mercer Investments, LLC.Discount rate used to project the pension obligations as of
12/31/2022, 12/31/2023 and 12/31/2024 is based on the 12/31/2021 WTW 60th-90th RATELink yield curve resulting in a weighted average discount rate of 2.96% for the qualified pension plans combined. Assets for the U.S. qualified pension plans
were projected assuming 0%, 2% or 4% annualized return reflecting the discretionary contributions shown above and expected benefit payments. No potential risk management activity, such as annuitizations, were reflected Expected Annual Cash
Contributions and Benefit Payments 59
2022 Guidance: EBITDA to Free Cash Flow Walk ($M) 2022E Adjusted EBITDA $820-$870 Pension
contributions and other postretirement benefits, net of service cost ~(40) Environmental remediation ~(15) Interest ~(105) Income taxes and other ~(85) Sustaining capital expenditures ~(145) Free cash flow before investment in
growth ~$430-$480 Return-seeking capital expenditures ~(145) Working capital use ~(60) Free cash flow(1) ~$250 Assumes average annual LME aluminum price of $2,870/mt and Midwest Premium of $830/mt for the full year. 60
($M) Quarter ended Quarter ended March 31, 2022 December 31, 2021 September 30,
2021 June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 Net (loss) income attributable to Arconic Corporation $ 42 $ (38) $ 16 $ (427) $ 52 $ (64) $ 5 $ (96)
Add: Net income attributable to noncontrolling interest – – – – – – – – Provision (Benefit) for income taxes 12 19 11 (108) 16 (4) 10 (32) Other expenses,
net 17 15 15 15 22 1 27 16 Interest expense 25 26 26 25 23 21 22 40 Restructuring and other charges(1) 5 12 14 597 1 127 3 77 Impairment of goodwill(2) – 65 – – – – – – Provision for depreciation
and amortization 60 67 61 62 63 60 63 68 Stock-based compensation 5 7 8 5 2 5 6 5 Metal price lag(3) 36 (11) 21 11 (5) (3) 16 10 Unrealized gains on mark-to-market hedging instruments and
derivatives (2) – – – – – – – Other special items(4) 5 13 (1) 7 5 8 13 11 Adjusted EBITDA $ 205 $ 175 $ 171 $ 187 $ 179 $ 151 $ 165 $ 99 Sales $ 2,191 $ 2,138 $ 1,890 $ 1,801 $
1,675 $ 1,462 $ 1,415 $ 1,187 Adjusted EBITDA Margin 9.4% 8.2% 9.0% 10.4% 10.7% 10.3% 11.7% 8.3% Leverage Ratio Trailing twelve months Adjusted EBITDA $
738 Total debt (long-term plus short-term borrowings) $ 1,695 Less: Cash and cash equivalents 210 Net debt(5) $ 1,485 Net debt / TTM Adjusted
EBITDA 2.0 Arconic’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for the following items: Provision for depreciation and amortization;
Stock-based compensation; Metal price lag (see footnote 3); Unrealized (gains) losses on mark-to-market hedging instruments and derivatives (see below); and Other special items. 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. Special items are composed of restructuring and other charges, discrete income tax
items, and other items as deemed appropriate by management. There can be no assurances that additional special items will not occur in future periods. Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is
meaningful to investors because Adjusted EBITDA provides additional information with respect to Arconic’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable
to similarly titled measures of other companies. Reconciliation of Total Company Adjusted EBITDA 61
Effective in the first quarter of 2022, management modified the Company’s definition of Adjusted EBITDA
to exclude the impact of unrealized gains and losses on mark-to-market hedging instruments and derivatives. This modification was deemed appropriate as Arconic is considering entering into additional hedging instruments in future reporting
periods if favorable conditions exist to mitigate cost inflation. Certain of these instruments may not qualify for hedge accounting resulting in unrealized gains and losses being recorded directly to Sales or Cost of goods sold, as
appropriate (i.e., mark-to-market). Additionally, this change was also applied to derivatives that do not qualify for hedge accounting for consistency purposes. The Company does not have a regular practice of entering into contracts that are
treated as derivatives for accounting purposes. Ultimately, this change was made to maintain the transparency and visibility of the underlying operating performance of Arconic. Prior to this change, the Company had a limited number of hedging
instruments and derivatives that did not qualify for hedge accounting, the unrealized impact of which was not material to Arconic’s Adjusted EBITDA. Accordingly, prior period information presented was not recast to reflect this change.In the
year ended December 31, 2021, Restructuring and other charges includes $584 related to the settlement of a portion of the Company’s U.S. defined benefit pension plan obligations as a result of the purchase of a group annuity contract
($549-2Q21) and elections by certain plan participants to receive lump-sum benefit payments ($11-4Q21, $5-3Q21, $19-2Q21). In the year ended December 31, 2020, Restructuring and other charges includes a $198 settlement charge related to the
annuitizations of a portion of the Company’s U.S. ($140-4Q20) and U.K. ($3-3Q20, $55-2Q20) defined benefit pension plan obligations and a $25 benefit (4Q20) for contingent consideration received related to the October 2018 sale of the
Texarkana (Texas) rolling mill.In the quarter ended December 31, 2021, Arconic completed its annual review of goodwill for impairment for each of its three reporting units: Rolled Products, Building and Construction Systems, and Extrusions.
The results of this review indicated that the carrying value of the Extrusions reporting unit’s goodwill was fully impaired. Accordingly, in the quarter ended December 31, 2021, the Company recognized an impairment charge of $65. This
impairment was primarily driven by a combination of market-based factors, including delays in aerospace market improvement and significant cost inflation, resulting in increasingly limited margin expansion. The Company had not previously
identified any triggering events during 2021 prior to the annual review.Metal price lag represents the financial impact of the timing difference between when aluminum prices included in Sales are recognized and when aluminum purchase prices
included in Cost of goods sold are realized. This adjustment aims to remove the effect of the volatility in metal prices and the calculation of this impact considers applicable metal hedging transactions.Other special items include the
following:• for the quarter ended March 31, 2022, costs related to several legal matters ($2), costs related to the packaging restart at the Tennessee rolling mill ($2), and other items ($1);• for the quarter ended December 31, 2021, costs
related to several legal matters, including Grenfell Tower ($4) and other ($2), costs related to both an equipment fire and packaging restart at the Tennessee rolling mill ($5), and other items ($2);• for the quarter ended September 30, 2021,
a partial reversal of a previously established reserve related to the Grasse River environmental remediation matter ($11), costs related to several legal matters ($7), and other items ($3);• for the quarter ended June 30, 2021, a write-down
of inventory related to the idling of both the remaining operations at the Chandler (Arizona) extrusions facility and the casthouse operations at the Lafayette (Indiana) extrusions facility ($4) and costs related to several legal matters
($3);• for the quarter ended March 31, 2021, costs related to several legal matters, including Grenfell Tower ($4) and other ($1);• for the quarter ended December 31, 2020, costs related to several legal matters ($5) and other items ($3);•
for the quarter ended September 30, 2020, costs related to several legal matters, including Grenfell Tower ($4) and other ($2), a write-down of inventory related to the idling of the casthouse operations at the Chandler (Arizona) extrusions
facility ($5), and other items ($2); and• for the quarter ended June 30, 2020, costs related to several legal matters, including a customer settlement ($5), Grenfell Tower ($3), and other ($3).Net debt is a non-GAAP financial measure.
Management believes that this measure is meaningful to investors because management assesses Arconic’s leverage position after considering available cash that could be used to repay outstanding debt. Reconciliation of Total Company Adjusted
EBITDA (cont’d) 62
Adjusted EBITDA to Free Cash Flow Bridge ($M) Quarter ended Quarter ended March 31,
2022 December 31, 2021 September 30, 2021 June 30, 2021 March 31,2021 December 31, 2020 September 30, 2020 June 30, 2020 Total Adjusted EBITDA(1) $205 $175 $171 $187 $179 $151 $165 $99 $1,332 Change in working
capital(2) (200) 11 (126) (51) (230) 130 185 1 (280) Cash payments for: Environmental remediation (4) (40) (23) (4) (17) (28) (33) (4) (153) Pension
contributions(3) (4) (2) (3) (252) (201) (227) – (12) (701) Other postretirement benefits (8) (10) (9) (10) (10) (14) (14) (13) (88) Restructuring actions (2) (4) (2) (4) (5) (9) (5) (9) (40)
Interest (29) (22) (28) (22) (18) (21) (19) (5) (164) Income taxes (4) (10) (4) (6) (6) (11) (3) (7) (51) Capital expenditures (95) (61) (51) (44) (28) (37) (39) (29) (384)
Other (57) (2) (18) (5) 14 17 (36) (12) (99) Free Cash Flow(4) $(198) $35 $(93) $(211) $(322) $(49) $201 $9 $(628) Adjusted EBITDA is a non-GAAP financial measure. See Reconciliation of Total Company Adjusted EBITDA
presented elsewhere in this Appendix for (i) Arconic’s definition of Adjusted EBITDA, (ii) management’s rationale for the presentation of this non-GAAP measure, and (iii) a reconciliation of this non-GAAP measure to the most directly
comparable GAAP measure. Arconic’s definition of working capital is Receivables plus Inventories less Accounts payable, trade.In January 2021, the Company contributed a total of $200 to its two funded U.S. defined benefit pension plans,
comprised of the estimated minimum required funding for 2021 of $183 and an additional $17. In April 2021, the Company contributed a total of $250 to its two funded U.S. defined benefit pension plans to maintain the funding level of the
remaining plan obligations not transferred under a group annuity contract.Arconic’s definition of Free Cash Flow is Cash from operations less capital expenditures. 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, which are both necessary to maintain and expand the Company’s asset base and 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. 1Q 2022: Cash used for operations of $(103) less capital expenditures of $95 = free cash flow of $(198) 4Q 2021: Cash provided from operations of $96 less capital expenditures of $61 =
free cash flow of $353Q 2021: Cash used for operations of $(42) less capital expenditures of $51 = free cash flow of $(93) 2Q 2021: Cash used for operations of $(167) less capital expenditures of $44 = free cash flow of $(211)1Q 2021: Cash
used for operations of $(294) less capital expenditures of $28 = free cash flow of $(322) 4Q 2020: Cash used for operations of $(12) less capital expenditures of $37 = free cash flow of $(49)3Q 2020: Cash provided from operations of $240 less
capital expenditures of $39 = free cash flow of $201 2Q 2020: Cash provided from operations of $38 less capital expenditures of $29 = free cash flow of $9 63