Electrifying the Future slide image

Electrifying the Future

ELECTRIFYING THE FUTURE Adjusted EBITDA Reconciliation ($ in mm) 1Q22 Net income attributable to common stock $1,527 12 mos ended 3/31/2022 $5,115 Interest expense, net 127 584 Income tax provision 824 2,681 Depreciation, depletion and amortization 489 2,068 Net gain on sales of assets Accretion and stock-based compensation Other net charges (1) Other (income) expense, net (80) 72 184 61 485 (31) 85 Net income attributable to noncontrolling interests 377 1,201 Equity in affiliated companies' net earnings (2) FCX Adjusted EBITDA (15) $3,431 (23) $12,300 FREEPORT FOREMOST IN COPPER (1) 1Q22 primarily includes net charges for contested matters at PT-FI ($51 mm). The 12 months ended 3/31/2022 also includes adjustments to reclamation liabilities at PT-FI ($340 mm), nonrecurring labor-related charges at Cerro Verde ($92 mm) and net adjustments to environmental obligations ($44 mm). Charges for the 12 months ended 3/31/2022 were partly offset by net credits primarily associated with refunds of Arizona transaction privilege taxes related to purchased electricity ($27 mm) and adjustments to prior-period profit sharing at Cerro Verde ($26 mm). (2) Adjusted EBITDA is a non-GAAP financial measure that is frequently used by securities analysts, investors, lenders and others to evaluate companies' performance, including, among other things, profitability before the effect of financing and similar decisions. Because securities analysts, investors, lenders and others use Adjusted EBITDA, management believes that our presentation of Adjusted EBITDA affords them greater transparency in assessing our financial performance. Adjusted EBITDA should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP. Adjusted EBITDA may not necessarily be comparable to similarly titled measures reported by other companies, as different companies calculate such measures differently. 34 34
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