Howmet Aerospace Inc. · NYSE:HWM
Howmet Aerospace — Arconic — Investor Day (December 2016)
79 slides from Howmet Aerospace's investor day presentation, Dec 14, 2016
Slide 1: 2016 Investor Day
2016 Investor Day December 14, 2016 Exhibit 99.2
Slide 2: Investor Day Agenda
Investor Day Agenda Start Time Topic 8:00 AM Welcome and CEO Opening Remarks 8:45 AM Global Rolled Products 9:30 AM Engineered Products and Solutions 10:15 AM Break 10:45 AM Transportation and Construction Solutions 11:30 AM CFO 11:50 AM Q&A Session (CEO and CFO) 7:30 AM Breakfast
Slide 3: Important Information: Forward-Looking Statements
Important Information Forward–Looking Statements This presentation contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those
Slide 4: Important Information (continued): Non-GAAP Financial Measures
Important Information (continued) Non-GAAP Financial Measures Some of the information included in this presentation is derived from Arconic’s consolidated financial information but is not presented in Arconic’s financial statements prepared in accordance with accounting principles generally accepted
Slide 5: Opening Remarks – Klaus Kleinfeld
2016 Investor Day Klaus Kleinfeld – Chairman and CEO Opening Remarks December 14, 2016
Slide 6: Strongly Positioned in Attractive Markets
2 Strongly Positioned in Attractive Markets Arconic 2015 Revenue by End-Market1 Excludes Warrick Includes Industrial Gas Turbines ~70% revenues from #1/#2 leadership positions 85% in Aerospace 96% in North American Auto 93% in Commercial Transportation Driving customer value through unparalleled cap
Slide 7: Substantially Improved Portfolio and Margin
3 Substantially Improved Portfolio and Margin Combined Segments Financial Performance1: 2008 & 2015 2015 15% Divestitures e.g., wire harness and soft alloy extrusions Business Line Exits e.g., automotive wheels Innovations e.g., Al-Li, DuraBright® Organic Expansions e.g., Davenport auto Productivity
Slide 8: Focused on Driving Shareholder Value with an Owner Mindset
Arconic: Focused on Driving Shareholder Value with an Owner Mindset Arconic Shareholder Value Creation Model 4 Shareholder Value Productivity / Overhead Cost Reduction O W N E R M I N D S E T Innovation Market Share / Growth Returning Cash to Shareholders Capital Efficiency De-Leveraging O W N E R M
Slide 9: Financial Targets through 2019 Drive Significant Shareholder Value
2016 2017 2019 Revenue $12.1B - $12.6B $11.8B - $12.4B 7% - 8% CAGR2 Combined Segment EBITDA % ~16% ~17% ~19% EBITDA %1 ~14% ~15% ~17% RONA % ~7%3 ~9% 11% - 12% Gross Debt $8.1B $7.1B Net Debt / EBITDA4: 2.0x- 2.5x Cash $1.8B $1.2B AA Stake 19.9% Stake = ~$1.2B (as of 12/09/2016) Free Cash Flow5 $35
Slide 10: Arconic Groups – Earnings Potential (3-5 years)
6 Arconic Groups – Earnings Potential (3-5 years) EPS Growth from increased market share on next-generation aero-engine and airframe programs Continued product and process innovation Cost reduction through world-class operations and low-cost manufacturing strategy Earnings Potential Key Levers GRP I
Slide 11: Productivity Impact: 2017
0.5% to 1.5% Price/Mix/Volume -0.5% to -1.5% ~2% -2.5% to -3.5% +4.5% to +5.5% Targeting 2017 Net Savings of ~2% of Revenue 2017 Productivity Impact1 (% of Revenue) 1) Assumes constant LME/FX 2) Excludes Warrick 7 2016 YTD Gross Productivity $650M gross productivity target Q3 YTD achievement of $524
Slide 12: Capital Allocation Priorities
Capital Allocation Priorities 8 Maintain / Grow the Business Optimize Our Financial Position Return Cash to Shareholders Disciplined organic investments directed towards the highest return opportunities Ongoing review of assets for strategic and financial fit Tuck-in acquisitions Debt pay-down Respo
Slide 13: Exacting CapEx Approval Process
CapEx Approval Process 9 CEO / CFO Group / Business Unit % of CapEx Spend Reviewer / Approver Audit Committee / Board Exacting CapEx Approval Process 2017 CapEx Plan ($M) 272 Return-seeking CapEx Approval criteria: Hurdle-rate > 15% + Payback < 5 years ~35% ~80%1 ~20% ~50% of D&A Exacting CapEx Appr
Slide 14: Executive Compensation Structure Aligned to Shareholder Value Creation
Executive Compensation Structure Aligned to Shareholder Value Creation Executive Compensation Structure1 (CEO and NEOs2) EBIT $ Free Cash Flow Non-Financial Metrics Safety Diversity RONA EBITDA Margin Revenue Growth Annual Base + Incentive Compensation3 Long-term Incentive Compensation3 Relative TSR
Slide 15: Separation Unleashes Distinct Advantages
Separation Unleashes Distinct Advantages Advantages of Separation 11 Management Incentives Fully Aligned with Shareholder Value Creation: Short-Term Incentives Driven by EBIT $ and FCF Long-Term Incentives Driven by RONA, EBITDA % and Revenue Growth Distinct Focus on Major End-Markets: Aerospace Aut
Slide 16: A Relentless Focus to Drive Shareholder Value
In Summary: A Relentless Focus to Drive Shareholder Value Arconic Shareholder Value Creation Model and Targets 12 For comparable analytical purposes only, all periods shown use the 2017 expected corporate spend of ~$300M Compounded annual growth rate from Year End 2017 to Year End 2019 For comparabl
Slide 17: Global Rolled Products – Kay Meggers
2016 Investor Day Global Rolled Products Kay Meggers – EVP, Arconic and Group President, GRP December 14, 2016
Slide 18: A Global Leader in Key End Markets
A Global Leader in Key End Markets Global Rolled Products (GRP) 2 Aerospace and Automotive Products Brazing, Commercial Transportation and Industrial Solutions ~10,800 Employees | Presence in 4 continents: 12 Facilities in 7 Countries | 2015 Revenue: $5.3B1 MicromillTM Products and Services Aerospac
Slide 19: Significantly Higher Profitability from Higher Margin Product Mix
3 Significantly Higher Profitability from Moving to Higher Margin Product Mix GRP Financial Performance1: 2008 & 2015 % Divestitures e.g., Shanghai foil mill, Spanish system, Belaya Kalitva Business Line Exits e.g., Litho in China, Can sheet in Australia, North America & Middle East Innovations e.g.
Slide 20: Leading Light-Weighting in Aerospace and North American Automotive
Leading Light-Weighting in Aerospace and North American Automotive GRP – Competitive Strengths 4 61% of revenue from #1 or #2 market positions Differentiated position in sheet and plate for aerospace, automotive, brazing, commercial transportation and industrial products markets Leading in growing m
Slide 21: GRP Serving Attractive and Growing Market Segments
5 GRP Serving Attractive and Growing Market Segments GRP – Market Segment Overview Market Segment % of 2015 Revenue Market Growth Arconic GRP Revenue Drivers 2017 20191 Global Aero Airframes 22% (1.4%) 5.0% Lower Al wide-body build rates Ramp up of CFRP3 plane build rates Very Thick Plate Stretcher
Slide 22: Innovation Delivers Profitable Revenue Growth
Innovation Delivers Profitable Revenue Growth GRP – Innovation Commercialization Examples 6 Aerospace & Defense Automotive Brazing A951 adhesive bonding new standard for bond durability Enables growth of aluminum in structural automotive applications Over ½ million metric tons per year by 2018 53% o
Slide 23: Strong Position in Aerospace – If It Flies, We're On It
Strong Position in Aerospace – If It Flies, We’re On It 7 2016 JSF $125M contract GRP aluminum plate 10x share jump on key programs 2016 Embraer $470M contract Prominent position on E2; sole supplier for wing skins and fuselage sheet Features proprietary Arconic alloys 2014 Boeing $1B+ contract Arco
Slide 24: In the Fast Lane with Automotive – Aluminization Continues
In the Fast Lane with Automotive – Aluminization Continues 8 2017 Chrysler Pacifica Multi-year contract for FCA US all-new minivan Features Arconic aluminum and Arconic 951 Ford F-150 and F-250 Multiple contracts for F-150 and F-250; started production in 2014 and 2016 respectively 1st mass-market A
Slide 25: GRP Earnings Potential (3-5 Years)
Very Thick Plate stretcher Auto light-weighting Brazing 5 layer sheet Manage product & customer complexity Franchise standards Equipment uptime Automation & digitization Debottlenecking, “sweat the assets” Shared Services utilization Consolidate salaried positions Negotiate alloy savings Natural gas
Slide 26: Micromill Commercialization Strategy
Significant Interest from OEMs and potential Licensees MicromillTM Commercialization Strategy 10 NA – Arconic Build Detailed engineering Seek volume commitment from OEMs MicromillTM Regional Strategy MicromillTM Customer Qualifications License Marketing partnership with Danieli, covering Europe, Asi
Slide 27: GRP Executive Summary
Leadership in Light-Weighting Drives Profitable Revenue Growth 11 Moving to Higher Margin Product Mix GRP Executive Summary Very Attractive Aero and Automotive Contracts in the backlog GRP Incremental Margin Potential of ~200 bps Commercializing Disruptive MicromillTM Products and Process Continue t
Slide 28: Engineered Products and Solutions – Karl Tragl
2016 Investor Day Engineered Products and Solutions Karl Tragl – EVP, Arconic and Group President, EPS December 14, 2016
Slide 29: Engineered Products and Solutions (EPS) Overview
ATEP (formerly known as RTI International Metals) was acquired in July 2015; full year pro forma revenue is $0.7B Provider of Advanced, Multi-Material Aerospace Products and Solutions Engineered Products and Solutions (EPS) 2015 Revenue: $5.3B | 2015 EBITDA Margin: 21% | ~24K Employees | 99 Faciliti
Slide 30: Substantially Improved Portfolio and Margin
3 Substantially Improved Portfolio and Margin EPS – Financial Performance1: 2008 & 2015 % 2015 Divestitures e.g., Electrical and Electronic Solutions (wire harness) Business Line Exits e.g., exit low margin non-aero applications Innovations e.g., Al-Li, Flite-tite®, Enhanced Equiax Castings Organic
Slide 31: Leading through Innovation and Cost Efficiency
Leading through Innovation and Cost Efficiency EPS – Competitive Strengths Amount includes 2015 full-year pro forma revenue for ATEP, which was acquired in July 2015 75% of revenue in Aerospace, a market with a 9-year order book 70%1 of revenue from #1 or #2 leadership positions Share gains on new A
Slide 32: EPS Focused on Aerospace and Adjacent End Markets
EPS Focused on Aerospace and Adjacent End Markets EPS – 2015 Revenue by End Market Aerospace Defense Engines 2 Aerospace1 75% Large commercial aircraft build rates are directly correlated with >60% of EPS aerospace revenue, with the balance driven by spares, defense, regional jets, business jets, et
Slide 33: Unparalleled Capabilities: Our Competitive Advantage
Unparalleled Capabilities: Our Competitive Advantage APPLICATION KNOWLEDGE Wide-ranging industry expertise Customer intimacy MATERIALS SCIENCE World class team of experts Leading in alloy, process and coating development DESIGN OPTIMIZATION New 3D design tools Simulation and predictive models Rapid
Slide 34: Innovation, engineered. EPS Innovation Examples
Arconic: Innovation, engineered. Near net shape Ti extrusions Ergo-Tech® fastening system Thermal barrier coated airfoils 3D printed latch 3D printed part for Ampliforge™ Mid Turbine Frame 3D Printed Mid Turbine Frame Prototype Al-Li fan blade forging EPS – Innovation Examples 7
Slide 35: Our Content Flies from Nose to Tail
Metallic or CFRP: Our Content Flies from Nose to Tail Participation in Airframe Parts: EPS and GRP Wing ribs (plate and extrusions) Wing tips Hydraulic vessels Fuel connectors Torque rods Seat frames Window and door frames Wheels, brakes and torque tubes Fuselage to wing connection Wing box fastener
Slide 36: Grew Aero Engine Components to Over 90% of Content
Grew Aero Engine Components to Over 90% of Content EPS - Aero Engine Component Portfolio1 2008 2016 Organic e.g. Al-Li Enhanced Equiax Castings Inorganic e.g. :\ TiAl Isothermal Forgings Rings / disks Technology / Innovation Engine content over 90% refers to the structural and rotating components 20
Slide 37: Well-Positioned on Next Generation Aircraft and Aero Engines
Well-Positioned on Next Generation Aircraft and Aero Engines Indexed Arconic Revenue by Major Programs1: EPS and GRP +82% +35% +72% +27% Platforms A320ceo / B737 NG A320neo / B737 MAX A320ceo A320neo A330ceo A330neo B767 B787 B777 B777X Aero Engines +27% +43% +21% +140% +16% Indexed to Current Gener
Slide 38: Substantial Mid-Term Growth with Near-Term Market Challenges
Substantial Mid-Term Growth with Near-Term Market Challenges The volumes we hit on CFM56 took us 20 years… we have to do that in four years on Leap. - GE in Aviation Week, Nov 28, 2016 Years CFM56-5B LEAP-1A LEAP-1B CFM56-7B CFM vs. LEAP Production Ramp-Up Curves The medium term outlook for engine m
Slide 39: EPS Revenue Growth Above Market Accelerates by 2018
EPS Revenue Growth Above Market Accelerates by 2018 Aero supply chain opportunities Non-Aero share gain Innovative products / Aero market share gain Illustrative, indexed to 2016 100% EPS Revenue and Market Growth 2016-2019 Revenue Headwinds Growth Drivers Market Profitability optimization, portfoli
Slide 40: EPS Incremental Margin Potential
EPS Incremental Margin Potential of 400 bps 2016E EBITDA Margin ~21% Innovation, Share Gain Al-Li fan blades, Flite-Tite®, EEQ1, coatings, etc. Large structural castings Growing Ti applications Contractual share gain on new Aero engines / aircraft New Auto applications 3D printing (direct, hybrid) P
Slide 41: EPS Executive Summary
Engineered Products and Solutions EPS Executive Summary Focused on Aerospace 70% of Revenue from #1 or #2 Leadership Position Attractive EBITDA Margin of 21% Industry-Shaping Innovations Organic Growth Projects and Acquisitions Aerospace Share Gain on New Platforms Cost-Effective Global Footprint Re
Slide 42: Transportation and Construction Solutions – Tim Myers
2016 Investor Day Transportation and Construction Solutions Tim Myers – EVP, Arconic and Group President, TCS December 14, 2016
Slide 43: Leading in Commercial Transportation, Building and Construction
Leading in Commercial Transportation, Building and Construction Transportation and Construction Solutions (TCS) Arconic Wheels and Transportation Products (AWTP) Building and Construction Systems (BCS) Latin America Extrusions (LAE) 2015 Revenue: $1.9B | 2015 EBITDA Margin: 14% | ~6K Employees | 46
Slide 44: EBITDA Margin More Than Doubled Since 2008
EBITDA Margin More Than Doubled Since 2008 TCS – Financial Performance1: 2008 & 2015 Restructuring e.g., 14 plant closures Business Line Exits e.g., Automotive structures & wheels Innovations e.g., Dura-Bright® EVO, Ultra ONEä with MagnaForceä, LvL ONE®, OptiQ™ Ultra Thermal, EcoClean™ Organic Expan
Slide 45: Strong Brands Leading the Industries Arconic Created
Strong Brands Leading the Industries Arconic Created 4 TCS – Competitive Strengths Iconic brands, built on innovation 5,300 customers across 5 continents Favorable Global Megatrends: climate change, weight regulation, urbanization, and security are driving demand for lightweight products and energy
Slide 46: Well-Positioned in Attractive Growing Markets
Well-Positioned in Attractive Growing Markets Market Segment % of 2015 Revenue Market Growth Arconic TCS Revenue Drivers 2017 20191 Commercial Transportation 42% NA -15% +15% Tightening global fuel efficiency, emissions, and weight standards and enforcement Increasing adoption of New Energy Vehicles
Slide 47: Unmatched Global Footprint, Product Innovation Drive Growth
Unmatched Global Footprint, Product Innovation Drive Growth Arconic Wheel and Transportation Products – Market Drivers and Competitive Position Innovation Core Competencies/Competitive Advantages Market Drivers 99% revenue from #1 market position 93% of revenue driven by proprietary products; 42% fr
Slide 48: Industry-Leading Design and Product Development Capabilities
Industry-Leading Design and Product Development Capabilities as Main Growth Engines Arconic Architectural Products Arconic Architectural Systems Market Drivers Population Growth ~8.0B people by 2025 Urbanization Energy Efficiency >50% urban population drives construction demand Global energy consump
Slide 49: US Bank Stadium Project
Project Pictures Placeholder Alcoa Confidential US Bank Stadium Height: 270 Feet, 7 Levels Seats: 66,000 Curtain Wall: ~200,000 sq. ft. Kawneer on Doors: World’s 5 largest-75-95’ tall by 55’ wide, 160,000 to 180,000 lbs. each Award: 2016 Most Innovative Curtain Wall Project
Slide 50: TCS Incremental Margin Potential
TCS Incremental Margin Potential of 250 bps TCS – Earnings Potential (3-5 years) 2016E EBITDA Margin ~15% Profitability Drivers Headwinds Profitability Improvement Program Capital Capital Efficiency Drivers Working Capital Targeted inventory reductions Maintain strong collections Leverage procuremen
Slide 51: TCS Well-Positioned for Continuous Profitable Growth
TCS – Well-Positioned for Continuous Profitable Growth TCS Executive Summary Strongly Positioned in Attractive Markets Iconic Brands with a Growing, Global Customer Base First to Market with Breakthrough Products & Solutions Well-Positioned to Win through Manufacturing Excellence Above Market Growth
Slide 52: CFO – Ken Giacobbe
2016 Investor Day Ken Giacobbe - CFO December 14, 2016
Slide 53: Agenda
Agenda S101 3 Year Targets and Earnings Potential Core Elements of Financial Management 2016 and 2017 Guidance 2017 and 2019 Key Financial Metrics 2
Slide 54: Financial Targets through 2019
2016 2017 2019 Revenue $12.1B - $12.6B $11.8B - $12.4B 7% - 8% CAGR2 Combined Segment EBITDA % ~16% ~17% ~19% EBITDA %1 ~14% ~15% ~17% RONA % ~7%3 ~9% 11% - 12% Gross Debt $8.1B $7.1B Net Debt / EBITDA4: 2.0x - 2.5x Cash $1.8B $1.2B AA Stake 19.9% Stake = ~$1.2B (as of 12/09/2016) Free Cash Flow5 $3
Slide 55: Agenda
Agenda S101 3 Year Targets and Earnings Potential Core Elements of Financial Management 2016 and 2017 Guidance 2017 and 2019 Key Financial Metrics 4
Slide 56: Core Elements of Our Financial Management
Arconic: Focused on Driving Shareholder Value with an Owner Mindset Shareholder Value Creation Model O W N E R M I N D S E T Shareholder Value Productivity / Overhead Cost Reduction Innovation Market Share / Growth Returning Cash to Shareholders Capital Efficiency De-Leveraging O W N E R M I N D S E
Slide 57: Capital Allocation will Deliver Shareholder Value
Capital Allocation will Deliver Shareholder Value Capital Allocation Priorities Reinvestment rate defined as Sustaining CapEx / Depreciation & Amortization Excludes the benefit of monetizing the retained interest in Alcoa Corp. De-Leveraging (excluding benefits of retained interest) Short-term actio
Slide 58: Overhead Reductions more than Offset Corporate Dis-synergies
Overhead Reductions more than Offset $18M of Corporate Dis-synergies Arconic Corporate Overhead as % of Revenue 1) Reflects ~$140M Corporate Overhead included in $300M of Corporate spend on an EBITDA basis. Remaining components are $60M of Corporate R&D, Pension / OPEB of $60M, and other of ~$40M 1.
Slide 59: 400-500 Basis Point Improvement in RONA through 2019
400-500 Basis Point Improvement in RONA through 2019 For comparable analytical purposes only, Return on Net Assets (RONA) 2016 uses an annualized view of Q4 2016 corporate expense Net PP&E refers to Net Property, Plant, and Equipment Return on Net Assets (RONA): 2016 Estimate and 2019 Target Range 1
Slide 60: Targeting 2017 to 2019 Free Cash Flow Growth of ~2x
Targeting 2017 to 2019 Free Cash Flow Growth of ~2x Free Cash Flow Overview ~$700M $350M+ ~2x Definition Free Cash Flow Operating Cash Flow - CapEx = 2017 Action Plan Revenue Growth Margin Improvement Reduce Working Capital by 3-7 days (vs. ~50 days in 4Q 2016) Max CapEx at $650M Path to 2019 Revenu
Slide 61: Pension and OPEB Overview
Pension and OPEB Overview Obligations Enterprise / Equity Value Implications Avoid Double Counting Pension / OPEB Obligations in Valuation Total unfunded Pension / OPEB liability: $3.3B Pension: $2.3B OPEB: $1.0B Pension plan funded status: US ERISA: ~90% Worldwide GAAP: ~70% 25 bps discount rate ne
Slide 62: Agenda
Agenda S101 3 Year Targets and Earnings Potential Core Elements of Financial Management 2016 and 2017 Guidance 2017 and 2019 Key Financial Metrics 11
Slide 63: Confirming 2016 Roadshow Guidance
Confirming 2016 Roadshow Guidance Combined Segments Profitability and Key Financial Elements (pre-tax) Combined Segments 20151 2016 Guidance1 2016 Guidance excluding Tennessee Packaging1,2 Revenue ($ Billions) $12.5 $12.1 - $12.6 $11.5 - $12.0 EBITDA ($ Millions) $1,893 $1,945 - $2,005 $1,948 - 2,00
Slide 64: Arconic Q4'16 and 2017 Reporting
Arconic Q4’16 and 2017 Reporting Expected Format and Selected Items of Q4’16 and 2017 Arconic Results Accounting charges triggered by the separation For comparable analytical purposes only, Return on Net Assets (RONA) 2016 uses an annualized view of Q4 2016 corporate expense Arconic Q4’16 Reporting
Slide 65: Confirming 2017 Guidance
Confirming 2017 Guidance 2017 Financial Targets and Key Financial Elements 2016 2017 Revenue $12.1B-$12.6B $11.8B-$12.4B Combined Segment EBITDA % ~16% ~17% EBITDA %2 ~14% ~15% RONA ~7%3 ~9% Financial Targets1 2017 Key Financial Elements Corporate Spend (EBITDA) ~$300M / year CapEx ~$650M Total Depr
Slide 66: Capital Structure: $6.3B in Net Debt
Capital Structure: $6.3B in Net Debt Estimated Capital Structure: Before Monetizing Retained Interest Estimated Capitalization at December 31, 2016 ($B) Amount Cash $1.8 Excludes 19.9% Retained Interest in Alcoa Corporation ~$1.2 (as of 12/09/2016) Bonds $7.85 Other debt $0.25 Total Debt $8.1 Net De
Slide 67: Agenda
Agenda S101 3 Year Targets and Earnings Potential Core Elements of Financial Management 2016 and 2017 Guidance 2017 and 2019 Key Financial Metrics 16
Slide 68: The Path Forward: Margin Expansion and Capital Efficiency
The Path Forward: Margin Expansion and Capital Efficiency 2017 and 2019 Financial Targets Summary Arconic 2017 Revenue $11.8B - $12.4B EBITDA % ~15% Free Cash Flow $350M+ Leverage $1B of debt reduction RONA ~9% Arconic 2019 Revenue 7% - 8% CAGR from 2017 to 2019 EBITDA % ~17% Free Cash Flow ~$700M L
Slide 69: Closing Remarks – Klaus Kleinfeld
2016 Investor Day Klaus Kleinfeld – Chairman and CEO Closing Remarks December 14, 2016
Slide 70: A Very Compelling and Timely Investment Opportunity
Arconic: A Very Compelling and Timely Investment Opportunity Key Reasons for Investing in Arconic Now 2 Strong Market Positions and Margin Profile ~70% of Revenues from #1/#2 Leadership Positions EBITDA Margins Currently in the Mid-Teens Excellent Free Cash Flow (FCF) Profile: 2017E FCF - $350M, 201
Slide 71: A Relentless Focus to Drive Shareholder Value
In Summary: A Relentless Focus to Drive Shareholder Value Arconic Shareholder Value Creation Model and Targets 3 For comparable analytical purposes only, all periods shown use the 2017 expected corporate spend of ~$300M Compounded annual growth rate from Year End 2017 to Year End 2019 For comparable
Slide 72: ARCONIC Innovation, engineered.
ARCONIC Innovation, engineered.
Slide 73: 2016 Investor Day Appendix
2016 Investor Day Appendix December 14, 2016
Slide 74: Well-Positioned on Next Generation Aircraft and Engines
2 Well-Positioned on Next Generation Aircraft and Engines Indexed Arconic Revenue by Major Programs1 : EPS and GRP Revenue per Aircraft (indexed to B737) Revenue per Aero Engine (indexed to CFM56) Engine Platforms A320 ceo / B737 NG A320 neo / B737 MAX A320 ceo A320 neo A330 ceo A330 neo B767 B787 B
Slide 75: Reconciliation of Arconic Combined Segment Adjusted EBITDA
Reconciliation of Arconic Combined Segment Adjusted EBITDA1 3 S101 ($ in millions) 2008 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 After-tax operating income (ATOI) $532 $218 $620 $767 $912 $977 $983 $243 $280 $251 $212 $986 $275 $307 $278 Add: Depreciation, depletion, and
Slide 76: Reconciliation of Global Rolled Products Adjusted EBITDA
Reconciliation of Global Rolled Products Adjusted EBITDA1 4 S101 ($ in millions, except per metric ton amounts) 2008 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 After-tax operating income (ATOI) $(15) $(108) $192 $222 $302 $241 $224 $49 $71 $56 $49 $225 $74 $81 $69 Add: Dep
Slide 77: Reconciliation of Engineered Products and Solutions Adjusted EBITDA
Reconciliation of Engineered Products and Solutions Adjusted EBITDA 5 S101 ($ in millions) 2008 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 After-tax operating income (ATOI) $465 $321 $355 $436 $484 $569 $579 $156 $165 $151 $123 $595 $162 $180 $162 Add: Depreciation, deplet
Slide 78: Reconciliation of Transportation and Construction Solutions Adjusted EBITDA
Reconciliation of Transportation and Construction Solutions Adjusted EBITDA 6 S101 ($ in millions) 2008 2009 2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 After-tax operating income (ATOI) $82 $5 $73 $109 $126 $167 $180 $38 $44 $44 $40 $166 $39 $46 $47 Add: Depreciation, depletion
Slide 79: Acronyms
Acronyms 7 AA Alcoa Corporation ATEP Arconic Titanium & Engineered Products B&C Building & Construction BCS Building & Construction Systems CFRP Carbon Fiber Reinforced Polymer D&A Depreciation & Amortization DI Degrees of Implementation DPW Davenport Works EPS Engineered Products & Solutions FCA Fi