Ati Inc. · NYSE:ATI
Ati — Allegheny Technologies — Investor Presentation (November 2005)
21 slides from Ati's investor presentation, Nov 30, 2005
Slide 1: Pat Hassey, Chairman, President & Chief Executive Officer
Pat Hassey Chairman, President & Chief Executive Officer
Slide 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 it
Slide 3: Building the World's Best Specialty Metals Company
Building the World's Best Specialty Metals Company One of the world's largest producers: Nickel-based alloys and specialty alloys Titanium and titanium alloys Precision Rolled Strip(r) products and engineered strip Exotic alloys Niche producer: Stainless sheet and plate Tungsten products Silicon ele
Slide 4: High-Value Products
High-Value Products Nickel-based alloys and specialty alloys 21% Precision and Engineered Strip 17% Titanium Products 16% Tungsten Products 7% Exotic Alloys 5% Total High-Value 66% Stainless Sheet and Plate 25% Silicon Electrical Steel and Tool Steel 5% Cast and Forged Materials 4% Total 100% YTD %
Slide 5: ATI Strategy
ATI Strategy ? Transition and Transform - 2004 Accelerating Profitability - 2005 Profitable Growth - 2006 EPS Cash Balance Sheet ?
Slide 6: ATI Growth Strategy
ATI Growth Strategy Principles: Profitable Growth Product Lines Market Segments Game Changing Technologies Technology Cost Reduction Organic to Core Business "Bolt" on & Opportunistic "Pay-as-you-go" Philosophy
Slide 7: Milestones in Profitable Growth
Advantage is our installed base Milestones in Profitable Growth Investment Revenue Growth Expansion of Titanium Capabilities $100 million $200 million1 Expansion of Nickel-based Alloy and Specialty Alloy Capabilities $30 million $70 million1 Acquisition of Garryson Assets $17 million $30 million2 $1
Slide 8: Long Products Processing
Long Products Processing VAR Press GFM Condition Rolling Condition Forged Billet Rolled Bar Titanium Products Nickel-based Alloys and Specialty Alloys Press Rolling Condition Forged Billet Rolled Bar GFM Condition VIM
Slide 9: Flat-Rolled Products Processing
Flat-Rolled Products Processing Nickel-based Alloys and Specialty Alloys Titanium Products Press Condition Rolling Condition VIM VAR/ESR Press Condition Rolling Condition Expansion
Slide 10: 2005 Market Outlook - Major Markets
2005 Market Outlook - Major Markets Aerospace 24% Robust Chemical Process Industry/Oil & Gas 16% Oil & Gas strong; CPI strong in Asia; ethanol and LNG growth Electrical Energy 10% Coal (FGD) and wind energy strong; natural gas recovering; nuclear flat; transformer very strong Total 50% Automotive 11
Slide 11: Aerospace Market Drivers
Market Drivers Air travel is robust, record load factors Spare parts Demand for new, fuel efficient aircraft Low-cost and international airlines profitable, growing Large commercial builds up 12% in '05 2006 forecast up 15% over '05 U.S. major airlines extending the upturn? Military & regional jet d
Slide 12: Bigger Planes - More of Our Specialty Metals
Bigger Planes - More of Our Specialty Metals Typically 120 Seats 555+ Seats 295-380 Seats Picture source: Lufthansa ad in Aviation Week & Space Technology magazine, February 28, 2005 Data source: Airbus website
Slide 13: Aerospace Market: 24% of ATI Sales
2003 2004 2005 4th Qtr East 274 333 632 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Aerospace Market 24% of ATI Sales (YTD) Only producer of both premium titanium alloys and nickel-based superalloys for jet engine rotating parts - OEM and spare parts. Producer of titanium alloys and specia
Slide 14: Chemical Process Industry/Oil & Gas
Chemical Process Industry/Oil & Gas 16% of Sales and Growing Market Drivers Chemical Process Industry Growing global infrastructure Urea (fertilizer), acetic acid (plastics), sulfuric acid (mining) Zircadyne(r) 702/705, Zr/Ti bimetallic tubing, high-value specialty alloys Oil & Gas Use of Corrosion
Slide 15: Applications for CRAs
Applications for CRAs Applications for CRAs Applications for CRAs Subsea Service Flexible flowline made of AL 2003(tm) lean duplex alloy Bi-metallic pipe for rigid flowline made of AL 825 nickel-based alloy Duplex and lean duplex alloys for umbilicals, which control the wellhead with hydraulic lines
Slide 16: CPI/Oil & Gas Market: 16% of ATI Sales
2003 2004 2005 4th Qtr East 158 223 434 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 CPI/Oil & Gas Market 16% of ATI Sales (YTD) Chemical Processing Industry Provides market with wide range of alloys and technical service to meet most corrosion environments. Alloys range from stainless stee
Slide 17: Electrical Energy
Electrical Energy Electrical Energy 10% of Sales and Growing Market Drivers U.S. Energy Policy Coal, Nuclear, Natural Gas, Wind Electrification of China and India Flue Gas Desulfurization (FGD) U.S. Clean Air Interstate Rule (CAIR) Significant reduction in SO2, NOX and Mercury China market is attrac
Slide 18: Electrical Energy Market: 10% of ATI Sales
2003 2004 2005 4th Qtr East 167 164 240 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Electrical Energy Market 10% of ATI Sales (YTD) Power Generation Leading supplier of alloys for coal, natural gas, and nuclear energy applications. Only domestic producer of large castings for wind energy a
Slide 19: Precision Rolled Strip Products
Precision Rolled Strip(r) Products Precision Rolled Strip(r) Products Growing Global Business Precision Rolled Strip Products Under 0.015 inch (0.38 mm) thin Serving customers in U.S., Europe, and Asia ATI is well-positioned with STAL and our international service centers Market Drivers Construction
Slide 20: In Summary
ATI is having its best year in history Growth in high-value products Commodity stainless products as base load Ongoing focus on cost reduction Continuing focus on operating performance improvement through ATI Business System ATI is growing We are enthusiastic about our major markets and prospects fo
Slide 21: Allegheny Technologies
Da Allegheny Technologies Ls a Specialty Materials That Make Our World
Allegheny Technologies — Investor Presentation (November 2005) on 6ix