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 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, 2014. 2
Commercial Aerospace Market Drivers Traffic (RPMs) Capacity (ASMs) Airline Profitability Fuel Costs International Carriers Growth of Low-Cost Carriers Change Specialty Metals Market Impact (Sources: Airline Monitor, IATA press releases) (Sources: Airline Monitor, IATA press releases) 3
# of Aircraft Commercial Aircraft Engine Build Rates 4,500 4,000 3,500 3,000 Snecma Engine Alliance Pratt & Whitney RR CFMI GE Next Gen Aircraft total B787 GEnx RR Trent 1000 A350XWB RR Trent XWB A320neo CFM Leap PW 1000G B737max CFM Leap A330neo Trent 7000 777X GE9X 2,500 2,000 1,500 1,000 500 0 2009 2010 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2019F Sources: Airline Monitor, February 2015 & ATI Build rates of Next Generation Aircraft & Engines Accelerating 4 2015 ATI All Rights Reserved.
# of Aircraft Commercial Aircraft Build Rates 2,200 2,000 1,800 1,600 1,400 Others Embraer Bombardier Airbus Boeing Next Gen Aircraft total B787 GEnx RR Trent 1000 A350XWB RR Trent XWB A320neo CFM Leap PW 1000G B737max CFM Leap A330neo Trent 7000 777X GE9X 1,200 1,000 800 600 400 200 0 2009 2010 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2019F Sources: Airline Monitor, February 2015 & ATI Build rates of Next Generation Aircraft & Engines Accelerating 5 2015 ATI All Rights Reserved.
Major Engine Programs - Firm Order Book (February 28, 2015) Engine Program Firm Order Book CFM56-5B 1,352 CFM56 7B 3,142 V2500 922 CFM LEAP 8,446 PW 1000G 2,646 GEnx 928 Trent 1000 460 Trent XWB 1,558 Trent 7000 240 GE90 544 GE9X 572 Source: Aero Engine News April 2016 Legacy Single Aisle 5,416 (Boeing 737, Airbus A320) Future-Gen Single Aisle 11,092 (737 Max, A320Neo) Boeing 787 Airbus A350XWB Airbus A330neo Boeing 777 Boeing 777X PW 1000G CFM LEAP Large Commercial Engine Backlog over 21,000. 2/3 are Next Generation! 6 2015 ATI All Rights Reserved.
Commercial Engines in Service History and Forecast 75,000 70,000+ 3.2% CAGR 70,000 65,000 60,000 55,000 50,000 2012 2013 2014 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F Source: Airline Monitor The larger the fleet, the greater the demand for spare parts. 7
Jet Engine Materials Low Pressure Compressor Titanium Combustor Superalloys Low Pressure Turbine Superalloys, Gamma Ti Aluminides Fan Titanium/Composites High Pressure Turbine Superalloys/Powder Alloys High Pressure Compressor Titanium/Superalloys Engine Shaft High Strength Steels, Superalloys 8
Titanium Applications in Jet Engines Fan & compressor cases, disks, blisks, impellers, blades, vanes, and fasteners Fan Frame Compressor rotor Fan Disc Flowformed Shaft Intermediate Case Titanium Forged Compressor Blades Forged Case Fan Disc w/blades 9
Engine Development Trends Demand for Green engines Reduced noise Reduced emissions (SO 2, CO 2, NO 2 ) Improved fuel efficiency Higher operating temperatures Higher temperature capable materials Lighter materials Lower operating costs for airlines Reduced maintenance intervals Reduced part count PWA Geared Turbofan PW1100G New Designs and Materials 10
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 11
Titanium in Jet Engines Demand Drivers Higher build rates Larger engines Larger global fleet for spare parts New engine designs Fuel efficient hotter burning engines CFMI LeapX 12
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