alcoa aerospace briefing june92011

7/29/2019 Alcoa Aerospace Briefing June92011

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New Breakthrough Technologies Lower Cost, Weight andProduction Risk of New Airplanes

June 9, 2011

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2/20

Agenda

2

Introductions Kevin Lowery

Alcoa Aerospace Portfolio pgs 3-7 Eric Roegner, PresidentAlcoa Forgings and

Extrusions

New Technologies Provide Step-Change

Improvements pgs 8-14

Mick Wallis, President

North American Rolled

Products

Market Research Study -- The More You

Know, The More Favorable Aluminum Is --pgs 15-19

Eric Roegner, President

Alcoa Forgings and

Extrusions

Questions and Answers


3/20

Alcoa Aerospace is Comprised of 4 Units Totaling $2.9B in Sales

3

$868m30%

Alcoa FasteningSystems

2010 Aero Revenues = $2.9B

Alcoa Power and Propulsion(aka Alcoa Howmet)

$1,024m36%

$596m21%

GlobalRolled

Products$376m13%

Forgings &Extrusions


4/20

Industry leading products and integrated solutions

4

Rolling Fasteners

InvestmentCastings

Large PressExtrusions

Large PressAl Forgings

ProductBreadth

GlobalAerospace

MarketPosition

#1 #1 #1 #1 #1

Understanding: Beyondmaterials we understand

how materials together withstructural and designinnovations, can work inconcert to provide optimalsolutions

Global Footprint: We arewhere you need us to be

globally positioned to supportglobal customer growth

Proven Track Record: A longhistory working with aerospacecustomers to help new aircraftmeet demanding new missions

Fuselage: higher damagetolerance and corrosion resistance

Wings: enhanced fatigue life,higher strength and/or higherdamage tolerance

Structures: enhanced stiffness,density, strength and /or corrosionresistance available

Advanced Fasteners: for metallicand CFRP structures

GlobalFootprint

Aerostructures

FasteningSystems




5/20

Alcoas content runs from nose to tail and from wing-tip towing-tip

Fuel Connectors

Wing Ribs (Plate)

Fuselage Stringers

Hydraulic Vessels

Fuselage Skins

Seat Tracks

Floor Beams

Bay Landing &Support Forgings

Wing BoxFasteners

Fuselage to WingConnection

Upper WingSkins

Wing Spars

(Forgings)

Engine PylonFasteners

Engine PylonSupport Structure

Lower Wing Skins

Wing FlapFasteners

Wing Spars(Plate)

Wing GearRib &SupportFittings

Vertical

StabilizerFasteners

5

Turbine EngineAirfoils

95% of

Alloys From

Alcoa


6/20

Innovations includethe application of

advanced metallic

material technology

from the 777 family

to the 747 platform.

First AluminumLithium Large

Commercial Aircraft

plate application

Alcoas newest plateproduct selected for

multiple applications.

An aerospace industry tradition: every new aircraftprogram includes new aluminum product innovations

Boeing 747-8 Boeing 787 Airbus A380

A new generationof large twin aislesentering service in2011 extending the747 well past 2020

Aluminumcontinues to be a

focus of Boeingteams targetingchallenging weight

goals

Each A380consumes 7X metal

required by a singleaisleIncreasing build ratein 2011

New sheet & plateproduct inventions.

Aluminum lithiumextruded floor

structure.

Worlds largestfuselage panels and

largest wing skins.

EIS 2015Build rates

forecasted toexceed 10 aircraft

per month by 2016

Aluminum lithium

extruded floorstructure as proven

on A380

AirbusA350XWB

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7/20

Aluminum continues to be the material of choice whenmissions and performance are matched

Bombardier CSeries:Aluminum intensive airframe

The Mitsubishi Regional Jet:

Initial Design: Composite wings

Sept 2009 Redesign: Aluminum wingsAVIC ARJ-21: Aluminum intensive airframe

Premature judgments about aluminum obsolescence?

Gerson Lehrman Group Inc. concludes that new aluminum-lithium alloys w ill be thematerial of choice over composites for narrow-body airliners, citing aluminums damage

tolerance, manufacturability and recyclabili ty .7




8/20

Our Value PropositionOur solutions span all four life-cycle phases

8

The Performance You Need With Lower Risk for Today & Tomorrow

When Your

Customers Fly It

Lightweight Aerodynamic

As They Maintain It

Corrosion ResistantMeet Emerging Inspection

Interval Requirements

When You Build It

Lower Manufacturing

and Assembly Costs Reduced Program Risk

When Its Time forRetirement

Recyclable




9/20

Our new technologies provide step-change improvementssince the B787 design

9

Performa

nce

Conventional Metallic

Structures

787 Design Freeze

Time

Baseline (e.g., 777or 737-NG)

5%-10% Lighter

Structures+ImprovedCorrosion

Performance

10%-20% LighterStructures

+Cabin Comfort

+Extended

Inspection/MRO

Via New AL-Li

Al loys

Via New A L-Li

Al loys in

Combination with

Advanced

Structural Concepts

& Other Supporting

Technologies

Ready NowSupports EIS

2015 & Beyond

Material selection for the 787: right

decision at the right time. BUT timeshave changed and a lot has happened

between then and now.

Alcoa has developed completely newalloys that allow for:

- Up to 10% lighter thancomposite-intensive planes

- Lower risk and 30% less

expensive to manufacture,

operate and repair than

composite-intensive planes

- Provide passenger comfortfeatures that are equivalent to

composite-intensive planes (such

as large windows, higher

humidity and higher cabin

pressure)


10/20

Optimized Fuselage Structure options - using validated

technologies - offer more than just advanced materials

10

Selective Reinforcement: What Is It? Can use bonded fiber-metal laminatesinstead of Al or Ti straps

What Do They Do? They save weight by allowingmuch thinner skins to meet damage tolerancegoals

Used Elsewhere? Yes already applied onA400M center fuselage frames

Readiness Level? Component level validationthrough Alcoa stiffened panel tests for fuselageand wing

Reinforced Laser Welded Panels

Reinforced Frames or Stringers

Adv. Fuselage Concept

Manufacturing of CurvedFuselage Test Panel

Curved FuselagePanel or Barrel Test

Inspection and RepairDemonstration

Development o fDesign Allowables

2011 2012 2013 2014

Maturation Timeline

Alc oa Pro pri etary Info rmat ion - These commodities and technology are exported from the United States in accordance with Export Administration Regulations. Diversion



11/2011

The combination of Alcoa solutions & new engines deliversnew short range aircraft that meets or exceeds targets

Corrosion ResistantAdvanced Al loys, Al-LiAll oys &Product Forms 3% - 7% Lower Density Significantly Improved

Corrosion Resistance

Higher Aspect RatioWing Enabled by Al-Li andAdvance StructuralConcepts

Aerodynamic efficiencyimprovements

Tailored Products &

Forms Low Buy-to-Fly

Solutions Low Residual Stress

Products

Advanced Structural Concepts(Damage Tolerance Improvement ofCritical Areas) Up to 10x Improved Damage

Tolerance Performance Reduced inspection burden through

SHM Enables Increased Cabin

PressurizationAlc oa Pro pri etary Info rmat ion - These commodities and technology are exported from the United States in accordance with Export Administration Regulations. Diversion


Improvements for a NewSingle Aisle / Short Range

Aircraft (EIS >2020)

22% 27% more fuelefficient (Assumes 15%efficiency improvement from new

engines) 6% - 10% lower empty

weight

100% increase in structuraland corrosion inspectionintervals

Increased passengercomfort

Larger windows Cabin pressure (to 6,000 ft. alt)

More reliable design,modeling and certificationprocesses


12/2012

Alcoa: the Al Li pioneer now rolls out a third generation ofnew corrosion resistant alloys for longer inspection intervals*

Exfoliation Corrosion: 3rd Gen Al-Li alloysare highly resistant to exfoliation corrosion

ConventionalAerospace Al loys

(No Lithium)

3rdGeneration

AL-L i

ST

SCC

Thres

holdStress,

KS

I

7150-T6511 specimens fastened and coated-- severe exfoliation propagated from coatingdefects after moderate seacoast exposure

Al-Li 2099-type specimens with nocoating -- No exfoliation occurred afterprolonged seacoast exposure

Stress Corrosion: 3rd Gen Al-Li alloys havedoubled their resistance to stress corrosion




13/2013

In large scale testing our solutions validated substantiallyextended fatigue inspection intervals

Advanced Al-Li Alloys

Advanced Structural

Concepts (Selective

Reinforcement)

The combination of theseproducts and technologies

have demonstrated these test results

3X Life at20% Lower

Weight

that deliver such benefits as:

Example: Fuselage Crown Panel Constant Amplitude in large panel tests



Doubled inspectionintervals consistent wi th 12-year heavy-check cycles

>20% weight savings indamage tolerance-drivenareas


14/20

Lets not forget some very important additional advantagesof metallic designs (safety, weight, cost)

14

Eliminates the need for a metalliccurrent return system workaround (copper mesh, bus bar, etc)

Eliminates need for an estimated~1,000 kgs for a twin aisle aircraft



Metallic aircraft have intrinsicmulti-functionality

(including electromagnetic f ieldand current return properties)
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15/20

We are confident our value proposition can be relevantacross the industry

15

Our Confidence is buttressed from two sources:

We are receiving positive acceptance of our Value Proposition from other OEMs whohave been wrestling with similar material choices

We have conducted a sizeable, market acceptance research study of our own that

included many of your own customers and other members of the broader A&D

community


16/2016

Delivering on our solutions shifts the industry towardsfavoring metallic structures

How likely would you recommend Alcoa's " next gen"

technology as the primary structural material on futureaircraft if it can deliver:

Up to 10% lighter than composite-intensive planes

Lower risk and 30% less expensive to manufacture,operate and repair than composite-intensive planes

Able to provide passenger comfort features that areequivalent to composite-intensive planes (such as large

windows, higher humidity and higher cabin pressure)

As of today, whats your overall

perception of aluminum andcomposites as a primary structuralmaterial for new aircraft?

More than two-thirds(68%) of industry wide

professionals ratedaluminum highly as a

choice for primary structure

applications.

In that same survey,

aluminum outscoredcomposites by almost 10%

in favorability for primary

structure


17/2017

Designers and Technologists favored metals the most -The more you know the more favorable metals looks to you

Unfavorable(1-2)

Neutral(3)

Favorable

(4-5)

Q1. As of today, whatsyour overall perception ofaluminum as a primary

structural material fornew aircraft?

Q2. and, whats youroverall perception ofcomposites as theprimary structuralmaterial for new aircraft?




18/20

The new scorecard: That was then. THIS IS NOW

18

Attr ibuteAdvanced

MetallicsCFRP

Weight

MRO Inspection Draw Draw

MRO Repairability

Recurring Cost / Supply Chain

Non-Recurring Cost

Cabin Comfort Draw Draw

Sustainability

Part Count

Customer Perception Draw Draw




19/20

Summary

The Material Selection for the 787: Right Decision at the Right Time.

BUT Times have Changed and a Lot has Happened Between Thenand Now.

Completely New Alcoa Aluminum Lithium Alloys Allow For: - Up to 10% lighter than composite-intensive planes

- Lower risk and 30% less expensive to manufacture, operate andrepair than composite-intensive planes

- Provide passenger comfort features that are equivalent tocomposite-intensive planes (such as large windows, higher humidity

and higher cabin pressure)

Not Just Us Industry Surveys Show The More You Know, TheMore Favorable Aluminum Is.

19


20/20

Thank You

Alcoa Proprietary Information - These commodities and technology are exported from the United States in accordance with Export Administration Regulations Diversion

alcoa aerospace briefing june92011

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