hunter dalton, evp ati high performance specialty materials...

Mission Critical Metallics®

© 2014 ATI. All Rights Reserved.

Hunter Dalton, EVP ATI High Performance Specialty Materials Group May 20, 2014

© ATI 2014. All Rights Reserved. 2

Forward Looking Statements

This presentation contains forward-looking statements. Actual results may differ materially from results anticipated in

the forward-looking statements. These and additional risk factors are described from time to time in the Company’s

filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended

December 31, 2013.


Change

Specialty Metals Market

Impact

Traffic (RPMs) Capacity (ASMs) Airline Profitability Fuel Costs International Carriers Growth of Low-Cost Carriers

(Sources: Airline Monitor, IATA press releases)

Commercial Aerospace Market Drivers

(Sources: Airline Monitor, IATA press releases)


Air Transport Production Market 2011-2021*, By OEM

0200400600800

1,0001,2001,4001,6001,8002,000

2011 2013 2015 2017 2019 2021

OtherEmbraerBombardierBoeingAirbus

*Drop in forecasted production rates from 2014 to 2016 is due to potential change in orders, shifting from legacy aircraft to the next generation single aisle.

Units

Secular Growth Trends Titanium intensive airplanes

Fuel efficient hotter burning engines


0

2,000

4,000

6,000

8,000

10,000

12,000

2011 2013 2015 2017 2019 2021

Other

Rolls Royce

CFM

General Electric

Pratt & Whitney

Aeroengine Production Market 2011-2021, By OEM

*Includes spares Source: IFC SH&E

Units


Commercial Engines in Service History and Forecast

Source: Airline Monitor The larger the fleet, the greater the demand for spare parts.

70,000+ 3.3% CAGR

50,000

55,000

60,000

65,000

70,000

75,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021


Fan Titanium/Composites

High Pressure Compressor Titanium/Superalloys

Combustor Superalloys

High Pressure Turbine Superalloys/Powder Alloys

Low Pressure Turbine Superalloys, Gamma Ti Aluminides

Low Pressure Compressor Titanium

Jet Engine Materials

Engine Shaft High Strength Steels, Superalloys


Fan & compressor cases, disks, blisks, impellers, blades, vanes, and fasteners

Fan Frame

Titanium Applications in Jet Engines

Intermediate Case

Compressor rotor

Forged Case

Fan Disc

Fan Disc w/blades

Titanium Forged Compressor Blades

Flow- formed Shaft


100

150

200

250

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Source: ICF SH&E

Titanium & Specialty Alloy Demand Ramping Up with Aeroengine Production Aerospace Raw Material Demand Forecast

Buy Weight, M lbs. Titanium

Specialty alloys

• Fundamental drivers & backlogs remain strong. • Large commercial engines driving titanium demand.


Engine Development Trends

• Demand for “Green” engines Reduced noise Reduced emissions (SO2, CO2, NO2)

• Improved fuel efficiency Higher operating temperatures Higher temperature capable materials Lighter materials

• Lower operating costs for airlines Reduced maintenance intervals Reduced part count

New Designs and Materials

PWA Geared Turbofan

CFMI LeapX


Changes in Jet Engine Design • Limited introduction of composites • Larger thrust engines

Consume more nickel-based and titanium alloys per engine • Higher engine temperatures

Nickel-based alloy content in compressor growing High temp powder/cast & wrought alloys

• New titanium-based materials Gamma TiAl

• Advanced Manufacturing • Additive Manufacturing

Evolutionary Change


Commercial Aerospace Panel 15:30 – 16:45 Sala Nettuno • New titanium-based materials

Gamma TiAl – Dr. Wilfried Smarsly, MTU • Advanced Manufacturing – Mr. Bertrand Flipo, TWI • Additive Manufacturing – Dr. Robert Sharman, GKN

Evolutionary Change


Demand Drivers • Higher build rates • Larger engines • Larger global fleet for spare parts • New engine designs • Fuel efficient hotter burning engines

Titanium in Jet Engines

hunter dalton, evp ati high performance specialty materials...

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