Alumina : Alcoa Corporation Q4 2018 Earnings Release

ASX Announcement

17 January 2019

Alcoa Corp Fourth Quarter 2018 Earnings Release

Alumina Limited (ASX: AWC) notes Alcoa Corp's ("Alcoa") quarterly earnings release. To assist readers in understanding relevant market, operational and commercial matters of the AWAC joint venture, selected information from the Alcoa Bauxite and Alumina Segments, AWAC joint venture and Alumina Limited plus other market data is attached.

Alumina Limited's CEO, Mike Ferraro, welcomed another strong quarter for the Bauxite and Alumina segments which include most of the AWAC operations. "A $9/t drop in the cost of alumina production and higher alumina shipments during the quarter contributed to an Adjusted EBITDA for the Alumina Segment of $683 million. AWAC has continued to make significant distributions to the Company.

With the alumina market remaining tight, current alumina price levels of around $385/t continue to underpin robust positive cash flows for AWAC."

About AWAC & Alcoa's Earnings Release

Alumina Limited owns 40% of each of the AWAC entities, which form a part of the Alcoa bauxite & alumina business segments. The Alcoa aluminium business segment includes the AWAC Portland smelting operations. The operating Afobaka power station and closed operations are included in Transformation & legacy pension/OPEB. Therefore, the AWAC results cannot be directly inferred from the Alcoa earnings release. Further, unlike Alumina Limited, Alcoa reports under US GAAP. All figures displayed are in US dollars unless otherwise shown.

Forward-looking statements

Neither Alumina Limited nor any other person warrants or guarantees the future performance of Alumina Limited or any return on any investment made in Alumina Limited securities. This document may contain certain forward-looking statements, including forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. The words "anticipate", "aim", "believe", "expect", "project", "estimate", "forecast", "intend", "likely", "should", "could", "will", "may", "target", "plan" and other similar expressions (including indications of "objectives") are intended to identify forward-looking statements. Indications of, and guidance on, future financial position and performance and distributions, and statements regarding Alumina Limited's future developments and the market outlook, are also forward-looking statements.

Any forward-looking statements contained in this document are not guarantees of future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Alumina Limited and its directors, officers, employees and agents that may cause actual results to differ materially from those expressed or implied in such statements. Those risks, uncertainties and other factors include (without limitation): (a) material adverse changes in global economic conditions, alumina or aluminium industry conditions or the markets served by AWAC; (b) changes in production or development costs, production levels or sales agreements; (c) changes in laws, regulations or policies; (d) changes in alumina or aluminium prices or currency exchange rates; (e) Alumina Limited does not hold a majority interest in AWAC and decisions made by majority vote may not be in the best interests of Alumina Limited; and (f) the other risk factors summarised in Alumina Limited's Annual Report 2017. Readers should not place undue reliance on forward-looking statements. Except as required by law, Alumina Limited disclaims any responsibility to update or revise any forward-looking statements to reflect any new information or any change in the events, conditions or circumstances on which a statement is based or to which it relates.

Stephen Foster

Company Secretary

For investor enquiries:	For media enquiries:
Charles Smitheram	Tim Duncan
Manager - Treasury & Investor Relations	Hinton and Associates
Phone: [phone]	Phone: [phone]
[e-mail]	Mobile: [phone]

Alumina Limited

• • Alcoa Corp's 4Q 2018 Bauxite and Alumina Segments' highlights

• • Market data on commodity prices

17 January 2019

Disclaimer

Summary Information

This Presentation contains summary information about the current activities of Alumina Limited (ACN 004 820 419) (Alumina) and its subsidiaries as at the date of this Presentation. The information in this Presentation should not be considered to be comprehensive nor to comprise all the information that a reader may require in order to make an investment decision regarding Alumina securities. This Presentation should be read in conjunction with Alumina's other periodic and continuous disclosure announcements lodged with the ASX, which are available atwww.asx.com.au.

No Offer, Recommendation or Advice

This Presentation is for information purposes only and is not a prospectus, product disclosure statement or other disclosure or offering document under Australian or any other law. It does not constitute an offer, invitation or recommendation to acquire Alumina securities in any jurisdiction and neither this Presentation nor anything contained in it will form the basis of any contract or commitment.

The information contained in this Presentation is not financial product advice, or any other advice, and has been prepared without taking into account any reader's investment objectives, financial circumstances or particular needs.

Forward-Looking Statements

Neither Alumina nor any other person warrants or guarantees the future performance of Alumina or any return on any investment made in Alumina securities. This Presentation may contain certain forward-looking statements, including forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. The words "anticipate", "aim", "believe", "expect", "project", "estimate", "forecast", "intend", "likely", "should", "could", "will", "may", "target", "plan" and other similar expressions (including indications of "objectives") are intended to identify forward-looking statements. Indications of, and guidance on, future financial position and performance and distributions, and statements regarding Alumina's future developments and the market outlook, are also forward-looking statements.

Any forward-looking statements contained in this document are not guarantees of future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Alumina and its directors, officers, employees and agents that may cause actual results to differ materially from those expressed or implied in such statements. Those risks, uncertainties and other factors include (without limitation): (a) material adverse changes in global economic conditions, alumina or aluminium industry conditions or the markets served by AWAC; (b) changes in production or development costs, production levels or sales agreements; (c) changes in laws, regulations or policies; (d) changes in alumina or aluminium prices or currency exchange rates; (e) Alumina Limited does not hold a majority interest in AWAC and decisions made by majority vote may not be in the best interests of Alumina Limited; and (f) the other risk factors summarised in Alumina's Annual Report 2017. Readers should not place undue reliance on forward-looking statements. Except as required by law, Alumina disclaims any responsibility to update or revise any forward-looking statements to reflect any new information or any change in the events, conditions or circumstances on which a statement is based or to which it relates.

Key Risks

Certain key risks that may affect Alumina, its financial and operating performance and the accuracy of any forward-looking statements contained in this Presentation include (without limitation): (a) material adverse changes in global economic conditions, alumina or aluminium industry conditions or the markets served by AWAC; (b) changes in production or development costs, production levels or sales agreements; (c) changes in laws, regulations or policies; (d) changes in alumina or aluminium prices or currency exchange rates; (e) Alumina Limited does not hold a majority interest in AWAC and decisions made by majority vote may not be in the best interests of Alumina Limited; and (f) the other risk factors summarised in Alumina's Annual Report 2017.

Past Performance

Past performance information contained in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

No Liability

The information contained in this Presentation has been prepared in good faith and with due care but no representation or warranty, express or implied, is provided as to the currency, accuracy, reliability or completeness of that information.

To the maximum extent permitted by law, Alumina and its directors, officers, employees and agents, and any other person involved in the preparation of this Presentation, exclude and disclaim all liability for any expenses, losses or costs incurred by any person arising out of or in connection with the information contained in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise.

Highlights

Alcoa Segments	4Q 2018	3Q 2018	Selected Highlights
Adjusted EBITDA Total: - Alcoa Alumina Segment - Alcoa Bauxite Segment Adjusted EBITDA Margin: - Alcoa Alumina Segment - Alcoa Bauxite Segment	$683m $110m 40.2% 33.8%	$660m $106m 40.1% 36.4%	▪ Alumina: The primary reason for the improved Adjusted EBITDA was the increase in shipments due to higher tonnes produced ▪ Bauxite: Improvement primarily due to higher sales to both internal and third party customers partially offset by slightly higher energy costs

AWAC	4Q 2018	3Q 2018	Comments
Production: - AWAC Refining Business (mt) - AWAC Mining Business (mbdt) Alumina Cost and Price: - Cash Cost ($/t production) - Realised Price ($/t shipments)	3.1 11.1 $223 $469	3.0 10.8 $232 $475	▪ Refining: Excludes equity share of Ma'aden ▪ Mining: Includes wholly owned mines plus equity share of CBG and MRN ▪ Cash Cost [includes bauxite at cost]: Driven by increased production plus smaller benefits from energy, raw materials and labour ▪ Realised Price: A small increase in API was offset by contractual price true-ups and spread of shipments

Alumina Limited	Post 31/12/2018	4Q 2018	3Q 2018	Comments
AWAC Net Distributions: - Alumina Limited Receipts - Alumina Limited Contributions Net Debt / (Cash) - Period End	$94.0m (TBA) N/a	$261.3m ($40.0m) ($95.8m)	$180.7m (Nil) $121m	▪ The 2018 interim dividend included $180.7m of net distributions received after 30 June 2018 but prior to declaration on 23 August 2018

Important Notes:

• • The Alcoa Corp Bauxite and Alumina Segments include mining and refining operations at Pocos de Caldas, an additional 15% interest in the Sao Luis refinery and an additional interest in MRN which are not part of AWAC. AWAC's interest in the Portland smelter is included in the Alcoa Corp Aluminum Segment and the operating interests in the Afobaka hydro-electric station and all closed operations are included in Transformation & legacy pension/OPEB. Therefore, the AWAC results cannot be directly inferred from the Alcoa earnings release.

• • Adjusted EBITDA is a non-GAAP financial measure derived from Alcoa's consolidated financial information. Alcoa Corp's financial statements are prepared in accordance with US GAAP. The definition of Adjusted

  EBITDA and reconciliations to the most directly comparable GAAP financial measure can be found in the schedules to Alcoa Corp's earnings release.

Sources: Alcoa Corp 4Q 2018 Results Announcements, 4Q 2018 Earnings Conference presentations and Alumina Limited

AWAC 2018 distribution calendar

(US$m)

2018: No later than	Relevant AWAC Entities	Description	Distributions from AWAC	Contributions to AWAC	Included In
20 January	All	50% of each entity's US GAAP Net Income (if positive) for 4Q of the previous calendar year	$117.1	N/a	2017 Final Dividend
31 January	AWA LLC	Working Capital Contributions	N/a	($52.8)	2017 Final Dividend
20 February	All except AWA LLC	Available Cash of each entity as at 31 January	$133.9	N/a	2017 Final Dividend
20 April	All	50% of each entity's US GAAP Net Income (if positive) for 1Q	$72.1	N/a	2018 Interim Dividend
20 May	All except AWA LLC	Available Cash of each entity as at 30 April	$61.6	N/a	2018 Interim Dividend
30 June	AWA LLC	Working Capital Contributions	N/a	($56.0)	2018 Interim Dividend
20 July	All	50% of each entity's US GAAP Net Income (if positive) for 2Q	$99.1	N/a	2018 Interim Dividend
20 August	All except AWA LLC	Available Cash of each entity as at 31 July	$81.6	N/a	2018 Interim Dividend
20 October	All	50% of each entity's US GAAP Net Income (if positive) for 3Q	$86.4	N/a	2018 Final Dividend
20 October	AWA LLC	Working Capital Contributions	N/a	($20.0)	2018 Final Dividend
20 November	All except AWA LLC	Available Cash of each entity as at 31 October	$174.9	N/a	2018 Final Dividend
31 December	AWA LLC	Working Capital Contributions	N/a	($20.0)	2018 Final Dividend