Superalloy Market Outlook AMM 6 th Aerospace Materials Conference

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1 Superalloy Market Outlook AMM 6 th Aerospace Materials Conference Carpenter Technology Corporation Dan DeAntonio April 25, 2012

2 Disclaimer Notice The information contained in this presentation is for the sole purpose of education and is not meant to replace your independent professional judgment. All such information, including certain forward-looking statements, may involve various risks and uncertainties, and is subject to change without notice. Carpenter Technology Corporation is not responsible for any omissions, errors or damages of any kind that may result from use of such information, including any forward-looking statements. Copyright.

3 Agenda Background Market Dynamics Superalloy Outlook

4 Carpenter Technology Established in 1889 In Reading, PA Continue to operate at original location Currently operate 21 manufacturing locations in 6 countries Global distribution network Currently expanding to support growth in major markets including aerospace. Premium melt expansion in Reading Acquisition of Latrobe Specialty Metals Greenfield site in Limestone County Alabama Forging and premium melting

5 Carpenter Technology The Early Years of Aviation Engine components for Wright Aeronautical Early 1900 s Engine components for Wright Whirlwind engine for the Spirit of St. Louis 1927

6 Market Dynamics What do the analysts say? Adam Pilarski - Avitas We are in a bubble Kevin Michaels - ICF SH&E Consolidation is re-shaping the industry Rich Aboulafia - Teal Group Production no longer linked with demand Heidi Woods - Morgan Stanley Under stress test analysis backlogs are fairly secure Ed Greenslet - The Airline Monitor Production rates not sustainable during model changeover Source: SpeedNews Conference March 2012

7 Market Dynamics Do we have a bubble? Increasing OEM build rates Some believe that the rates are too high Historically high backlogs Extended delivery times Aging fleets Retirement dynamics may be changing High fuel prices

8 Industry Data Large Commercial Aircraft Percent Years of production Backlog as a % of Fleet Backlog as Years of production Deliveries as a % of fleet F 0 Source: Airline Monitor Jan/Feb 2012

9 Market Dynamics Industry Happenings New platforms commercial aircraft Wide Body - 787, A350 Single Aisle - A320neo, 737MAX, C Series New engines PWA Geared Turbo Fan CFM Leap GE GEnx Rolls Royce Trent XWB New competitors Comac C919 Bombardier moving up into single aisle market Multiple new entrants in the regional jet market

10 Build Rate Projections 2,000 Some analysts predict a mid decade decline during model changeover 1, ,000 A320neo A MAX Source: Airline Monitor

11 Build Rate Projections 2,000 Or maybe the transition will be smoother 1, ,000 A320neo A MAX Source: Airline Monitor and internal estimates

12 Superalloy Outlook Ni-base high strength alloys Tons CAGR in excess of 5% 40,000 30,000 Engine material* 20,000 10,000 Fasteners *Forecasts do not include blade/vane or combustor materials Based on new builds only. MRO requirements would be additive Source: Airline Monitor, AeroStrategy and internal estimates

13 Other Technology Drivers Reducing buy to fly ratio Larger cost savings for initial material purchase Additive manufacturing Focus on weldability Powder metal processes Near net forging technology Near net shape HIP PM components Improved Machining Technology Reduces cost for conventional manufacturing Reduces weight with better dimensional tolerance

14 Supply Chain Impacts What is steady state? Production rate ramp-ups on existing platforms New product introductions EIS delays Ramp up of production Supply chain stocking or de-stocking

15 Summary The short term future is bright New engines, new airframes, new market entrants Increasing production rates The longer term is less clear The next couple of years will help better define what will happen Yearly order levels Integrity of the OEM backlogs Right now we have many different opinions

16 Thank You Questions?

Wade Leach - Senior Vice President, Commercial ATI Specialty Materials May 12, ATI. All Rights Reserved.

Wade Leach - Senior Vice President, Commercial ATI Specialty Materials May 12, 2015 2015 ATI. All Rights Reserved. Forward Looking Statements This presentation contains forward-looking statements. Actual