Alcoa Corporation

Good afternoon and welcome to the Alcoa Corporation fourth quarter 2020 earnings presentation and conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to James Dwyer Vice President of Investor Relations. Please go ahead.

Thank you, and good day, everyone. I'm joined today by Roy Harvey, Alcoa Corporation President and Chief Executive Officer, and William Oplinger, Executive Vice President and Chief Financial Officer. We will take your questions after comments by Roy and Bill. As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation and in our SEC filings. In addition, we have included some non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation. Any reference in our discussion today to EBITDA means adjusted EBITDA. Finally, as previously announced, the earnings release and slide presentation are available on our website. With that, here's Roy.

Thank you, Jim, and thanks to everyone for joining this call today. Obviously, 2020 was a historic year, with the world united in fighting through the challenges associated with the global pandemic. Throughout this turbulent time, however, we stayed true to our Alcoa values and accomplished much in an unprecedented year. We focused on our people, making sure we took every possible steps to protect our employees and contractors and to support the communities where we operate. Due to teamwork across Alcoa, we not only kept our operations running efficiently, we improved our processes and made our company even stronger. Bill will discuss the specific financial results shortly, but it all culminated with a solid fourth quarter. We had a higher sequential quarterly adjusted EBITDA, and we also recognized quarterly improvement in revenue. Both prices and demand improved in the fourth quarter, including for value-add aluminum products. And for the full year, we made significant progress in improving our cost structure with our multi-year strategy, and we will highlight many of those achievements during this call today. First, however, I would like to address safety. Despite so many accomplishments in 2020, and as reported last April, We sadly did not achieve our most important objective. A contracted worker died on February 10th after sustaining on-the-job injuries at our Poços de Caldas facility in Brazil. This was an unacceptable tragedy, and we worked to make sure it does not recur. This tragic accident demonstrates that we must be ever vigilant with our safety practices and must remain focused on each and every task at hand. Safety is embedded in the three Alcoa Core values you see on the left hand of this slide. And those three simple values continue to guide us. In fact, our response to the pandemic demonstrated how a relentless commitment to these values can deliver positive impacts. Not only did we sustain our operations, we also set annual production records in both our bauxite and alumina segments. In aluminum, we continue to improve our cost structure and successfully completed the full restart of the ABI smelter in Beconcourt, Quebec, and the curtailment of the Intalco smelter in Washington State. Together, these two actions resulted in an $86 million improvement in EBITDA in 2020 over 2019. Importantly, 2020 was a year with significant accomplishments across Alcoa. We started the year with the full implementation of our new operating model, which reduced overhead costs and improved overall efficiency. Before we encountered the impact of the pandemic, we had already put in place aggressive targets for non-core asset sales over a 12- to 18-month period and year-over-year improvements for working capital and productivity in 2020. With the economic uncertainty created by this pandemic, we also implemented additional actions to generate and protect cash. We finished the year meeting those targets. We met our combined objective on working capital and productivity, and our announced non-core asset sales put us at the top of our expected range. Those and other actions during the year helped us exceed our target of $900 million in cash actions. In November 2020, we announced the divestiture of our single rolling mill, located in Indiana at Warwick Operations, in a $670 million transaction expected to close in March 2020. of this year. Finally, on this slide, our strategic priority to advance sustainably provides many new opportunities, and we will talk later today about how we're leveraging our industry-leading performance to succeed in a marketplace expecting and demanding strong ESG performance. So with that, Bill will now detail the results.