Carpenter Technology Corporation · NYSE:CRS

Carpenter Technology — Cowen Aerospace/Defense and Transportation Conference 2014

22 slides from Carpenter Technology's conference presentation, Feb 5, 2014

1. Slide 1: Carpenter Technology Corporation

   Carpenter Technology Corporation E N G I N E E R E D M AT E R I A L S F O R A C H A N G I N G WO R L D Cowen Aerospace/Defense and Transportation Conference February 5, 2014 Unless otherwise noted, the logo and registered trademarks are property of CRS Holdings, Inc. a subsidiary of Carpenter Techno

2. Slide 2: Cautionary Statement

   Cautionary Statement Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward- looking statements are subject to risks and uncertainties that could cause actual results to differ from those pro

3. Slide 3: Carpenter – A Leader in Specialty Metals

   Carpenter – A Leader in Specialty Metals • Over 124 years of metallurgical and manufacturing expertise • Focused on high value, differentiated, “long” products used in demanding, niche applications • Attractive end-use markets and strong customer relationships • Transformational growth period - Latr

4. Slide 4: Carpenter has a Diverse Operational Footprint

   Carpenter has a Diverse Operational Footprint Specialty Alloy Operations (SAO) Performance Engineered Products (PEP) Major ultra-premium alloy and Differentiated operations stainless steel manufacturing Reading Operations Amega West Latrobe Operations Carpenter Powder Products Hartsville Operations

5. Slide 5: Carpenter Targets High End of Specialty Steel Market

   Carpenter Targets High End of Specialty Steel Market Global Steel Production (volume) Specialty Steel Market 100% Carpenter Specialty Steel Ni Focus 90% Market 0.2% 9% Special Alloy <2% 80% Stainless Long 4% <1% of total 70% Bearing steel market 5% 60% 50% Stainless Flat 20% 40% Carbon Steel 30% 91%

6. Slide 6: Aerospace and Energy are 62% of Total Net Sales

   Aerospace and Energy are 62% of Total Net Sales Net Sales by End Use Market Q2-14 (TTM) Net Sales Mix TTM Net Sales of $2,195M 100% Distribution 90% Distribution 6% Aerospace & 80% Industrial & Industrial & Defense 47% Consumer Consumer 21% 70% Transportation 60% 50% Medical 40% Energy Transportatio

7. Slide 7: Aerospace is Our Largest End Use Market

   Aerospace is Our Largest End Use Market STRUCTURAL/ OTHER COMPONENTS • Slat tracks/Flap tracks • Actuators Growth • Landing gear Focus • Wing bolts • Avionics FASTENERS Market ENGINE COMPONENTS • Titanium Segment • Seamless rings • Shafts • Ni based superalloy Leader • Rotating disks • Bearings • St

8. Slide 8: Aerospace Market Drivers Point to Significant Growth

   Aerospace Market Drivers Point to Significant Growth Revenue Passenger Miles % Wide Body Builds 6,000 40 35 CAGR 5,000 6% Billions 30 4,000 25 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 Source: June 2013 Airline Monitor Source: June 2013 Airline Monitor and CRS Market

9. Slide 9: Energy is Our Fastest Growing End Use Market

   Energy is Our Fastest Growing End Use Market Strong Historical Growth Areas of Future Growth • N. American Oil & Gas Exploration • Oil & Gas • Amega West and Latrobe acquisitions – Increased N. American drilling activity • Share gain in completions – Continued growth in completions – Amega West port

10. Slide 10: Medical is our Most Challenging End Use Market

    Medical is our Most Challenging End Use Market FRACTURE FIXATION ARTIFICIAL DISCS & SPINAL FIXATION • Carpenter Stainless Type 316/316L • Micro-Melt® BioDur® Carpenter CCM® Alloy • Ti 6AI-4V ELI • BioDur® CCM Plus® Alloy • BioDur® 108 Alloy • Ti 6Al-4V ELI • Ti 6Al-7Nb • CP Titanium HIP & KNEE REPLA

11. Slide 11: Best in Industry R&D Capabilities

    Best in Industry R&D Capabilities Top R&D Capabilities Carpenter Core Competencies Modeling Metallic Forming Powders • World class staff and capabilities • Rich history of developing bench- Process Alloy Nano- mark alloys for critical applications Technologies Development materials • Global collabor

12. Slide 12: Athens Facility Update

    Athens Facility Update Construction/Start-up Certification/Qualification Integrated Manufacturing • 90% of construction • Met Lab and Chem Lab fully • People and processes - well completed functional supported by other SAO sites • Spend 80% complete • Accreditations: • Training for key positions ver

13. Slide 13: Record Adj. EBITDA in a Challenging Environment

    Record Adj. EBITDA in a Challenging Environment Adjusted EBITDA* Millions $500 $400 Prior Peak $406 $364 $336 $300 $200 $224 $137 $132 $100 $0 FY08 FY09 FY10 FY11 FY12 FY13 * Non-GAAP measure. See appendix for details of calculation. © 2014 CRS Holdings, Inc. All rights reserved 13

14. Slide 14: Working Capital Reduction is a Priority

    Working Capital Reduction is a Priority Days Working Capital* 250 200 193 150 147 144 145 143 127 100 50 0 FY08 FY09 FY10 FY11 FY12 FY13 * See appendix for details of calculation. © 2014 CRS Holdings, Inc. All rights reserved 14

15. Slide 15: Heavy Investment Phase Nearly Complete

    Heavy Investment Phase Nearly Complete Capital Expenditures Millions $400 Estimated $337 Range $300 ($330 - $350) $200 $172 Anticipated Run Rate Athens ($240) $100 $119 $116 $80 $44 $0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Est © 2014 CRS Holdings, Inc. All rights reserved 15

16. Slide 16: Strong Liquidity Position and Solid Capital Structure

    Strong Liquidity Position and Solid Capital Structure Millions $700 Aggregate Debt Level $600 Revolver $500 $500 $400 4.45% $300 5.20% $300 $200 $250 $100 7.02% $0 $55 '14 '15 '16 '17 '18 '18 '19 '20 '21 '22 '23 • Increased credit facility from $350M to $500M with better terms and pricing • Successf

17. Slide 17: Strong Free Cash Flow Potential

    Strong Free Cash Flow Potential Millions $150 • Increasing year-over-year Adjusted EBITDA $100 $114 • Focus on productivity $50 ($75) improvements • Targeting working capital $0 reductions ($50) • Heavy capital expenditure phase nearly ($100) complete ($150) ($198) ($159) • Minimal required pension

18. Slide 18: Carpenter is Strategically Well-Positioned With A Strong Financial Foundation

    Carpenter is Strategically Well-Positioned WITH A Strong Financial Foundation • Rapidly growing and Super Critical highly profitable specialty Markets materials company • Strong presence in the aerospace and energy markets Demanding Technology Applications Emphasis • Leader in research and developme

19. Slide 19: Appendix of Non-GAAP Schedules

    Appendix of Non-GAAP Schedules © 2014 CRS Holdings, Inc. All rights reserved 19

20. Slide 20: Adjusted EBITDA

    Adjusted EBITDA ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (ADJUSTED EBITDA) Fiscal Year ($ in millions) 2008 2009 2010 2011 2012 2013 Income from continuing operations $200.5 $47.9 $2.1 $71.7 $121.6 $146.5 Interest expense 20.5 16.1 17.8 17.1 23.8 21.0 Income tax expens

21. Slide 21: Free Cash Flow

    Free Cash Flow Fiscal Year ($ in millions) 2013 Net cash provided from operating activities $ 215.2 Purchases of property, equipment and software (336.9) Dividends paid (38.3) Proceeds from disposals of plant and equipment 1.2 Proceeds from sale of equity method investment 7.9 Purchase of subsidiary

22. Slide 22: Days Working Capital Calculations

    Days Working Capital Calculations Fiscal Year ($ in millions) 2008 2009 2010 2011 2012 2013 Accounts receivable, net $ 285.1 $ 130.8 $ 188.5 $ 259.4 $ 354.2 $ 342.0 Inventory, net 209.0 185.4 203.6 328.6 642.0 659.2 LIFO reserve 448.0 305.8 331.8 355.4 279.8 222.4 Gross inventory 657.0 491.2 535.4 6

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