Ati Inc. · NYSE:ATI

Ati — Allegheny Technologies — Investor Presentation (September 2014)

26 slides from Ati's investor presentation, Sep 9, 2014

Slide 1: Creating Long-Term Value Thru Relentless Innovation
© 2014 ATI. All Rights Reserved. September 2014 Exhibit 99.1 Creating Long-Term Value Thru Relentless Innovation Creating Long-Term Value Thru Relentless Innovation
Slide 2: Forward-Looking Statements
2 © 2014 ATI All Rights Reserved. September 2014 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
Slide 3: Our Vision, Commitment, Values and Principles
3 © ATI 2014. All Rights Reserved. Our Vision: Building the World’s Best Specialty Materials Company Our Commitment: Creating Long-Term Value Thru Relentless Innovation Our Values: • • • • • • • • Our Principles: 1. 2. 3. 4. 5. September 2014 Integrity Dignity and Respect Innovation Cooperation, Acc
Slide 4: Diversified Markets – First Half 2014
4 © 2014 ATI All Rights Reserved. Aerospace & Defense 34% Oil & Gas/Chemical Process Industry 17% Medical 5% Electrical Energy 11% September 2014 Diversified Markets – First Half 2014 Percentage of ATI’s Sales of $2.1 Billion 67% Key Growth Markets Construction/Mining 7% Transportation 4% Food Equip
Slide 5: Diversified Products – First Half 2014
5 © 2014 ATI All Rights Reserved. Precision & Engineered Strip 13% Grain-oriented Electrical Steel 4% September 2014 Zirconium & Related Alloys 6% Precision Forgings, Castings & Components 13% Titanium & Titanium Alloys 15% Nickel-based Alloys & Specialty Alloys 26% Diversified Products – First Half
Slide 6: We Are Near the End of this Extraordinary Spending Cycle
© 2014 ATI All Rights Reserved. We Are Near the End of this Extraordinary Spending Cycle September 2014 2013 Was Peak of Capital Spending 6 Capital Expenditures 2004-2014 Forecast $0 $100 $200 $300 $400 $500 $600 $700 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014P
Slide 7: Hot-Rolling and Processing Facility (HRPF)
7 © 2014 ATI All Rights Reserved. Commissioning in 2014 GOES Coil with Automated Marking Finished T-304 coil before banding 75 inch wide x 1 inch thick carbon coil 48 inch wide nickel- based alloy breakdown September 2014 Hot-Rolling and Processing Facility (HRPF) Designed to provide unsurpassed cap
Slide 9: Next-Generation Uses Significantly More of our Products
© 2014 ATI All Rights Reserved. 9 Next-Generation Uses Significantly More of our Products September 2014 Sources: Airline Monitor, February 2014 & ATI Commercial Aircraft Build Rates B787 GEnx RR Trent 1000 A350XWB RR Trent XWB B737max CFM Leap A320neo CFM Leap PW 1000G A330neo* Trent 7000 *announce
Slide 10: Engine Program Firm Order Book
10 © 2014 ATI All Rights Reserved. Engine Program Firm Order Book Over 20,000 Large Jet Engines on Firm Order September 2014 Major Engine Programs - Firm Order Book (June 30, 2014) CFM56 - 5B 1,488 CFM56 – 7B 3,666 V2500 1,170 CFM LEAP 6,518 PW 1000G 2,326 GEnx 1,076 Trent 1000 Trent XWB 1,484 GE 90
Slide 11: Significant Growth for ATI's New Materials and Components
© 2014 ATI All Rights Reserved. 11 Significant Growth for ATI’s New Materials and Components September 2014 Commercial Aircraft Engines Source: ATI Market Outlook, Airline Monitor, Forecast International Forecast 2011 2012 2013E 2014F 2015F 2016F 2017F 2018F Legacy Next Generation
Slide 12: ATI Technology and Product Innovation
12 © 2014 ATI All Rights Reserved. September 2014 ATI Technology and Product Innovation New Alloys and Products – Aerospace Rene 65 Alloy* ATI 718Plus® Alloy ATI 425® Alloy Titanium aluminides Nickel-based superalloy powder & isothermal forgings Titanium Investment Castings Powder Metal Net Shapes F
Slide 13: Continue Value-Added Product Transformation
13 © 2014 ATI All Rights Reserved. September 2014 Continue Value-Added Product Transformation (Recent Acquisitions) ATI Cast Products, Salem Operations Aerospace Oil & Gas Flowform process ATI Flowform Products
Slide 14: Leverage ATI's Strategic Relationships & Vertical Integration
September 2014 United Technologies 17% GE 13% Other Customers 44% Rolls-Royce 26% Leverage ATI’s Strategic Relationships & Vertical Integration 14 © 2014 ATI All Rights Reserved. Ladish Co. Customer Diversification 2010 (Pre-ATI) Percentage of Ladish’s Sales of $403 Million – (taken from Ladish Co.
Slide 15: ATI Forged Products/ATI Cast Products
15 © 2014 ATI All Rights Reserved. September 2014 Cudahy, WI Portland, IN Stalowa Wola, Poland Irvine, CA Lebanon, KY Irvine, CA Stalowa Wola, Poland East Hartford, CT Coon Valley, WI Cudahy, WI Albany, OR ATI Forged Products/ATI Cast Products Salem, OR
Slide 16: ATI Forged Products Markets
16 Market Cudahy Irvine Portland Lebanon Stalowa Wola September 2014 © ATI 2014. All Rights Reserved. Rotating Engine X X X Aerospace X X X X Oil & Gas X X X X Construction & Mining X X X X Defense X X X Transportation X X X X Other X X X X X ATI Forged Products Markets
Slide 17: Indications of Oil & Gas Market Recovery
17 © 2014 ATI All Rights Reserved. September 2014 US land based drilling activity 2005 to present GOM offshore drilling activity 2005 to present Indications of Oil & Gas Market Recovery Source: Baker Hughes 1000 1500 2000 2500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 200
Slide 18: Innovation for the Oil & Gas Market
© ATI 2014. All Rights Reserved. 18 September 2014 Innovation for the Oil & Gas Market • ATI Datalloy2 ® for MWD/LWD Housings • ATI nickel-based alloys for completion tools • ATI 425 ® Alloy for drill pipe • CRA pipe • Leverage HRPF into OCTG market
Slide 19: Chemical Process Industry Market
© 2014 ATI All Rights Reserved. 19 316 SS OmegaBond® Tubing Titanium 25-22-2 SS Bimetallic Zirconium September 2014 Corrosivity Higher Temperatures permitted Extrusion Bond Zircadyne ® Inner Tubing Titanium Grade 3 Outer Tubing Urea Stripper Chemical Process Industry Market Example: Urea Stripper Ap
Slide 20: Growing Transplant Domestic Supply Chain
20 © 2014 ATI All Rights Reserved. Growing “Transplant” Domestic Supply Chain September 2014 Automotive Growth Market in U.S. 16.4 15.5 15.5 8.8 11.9 13.2 16.2 15.9 Source: Automotive News Data Center 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 21: Confidence in Long Term
21 © 2014 ATI All Rights Reserved. September 2014 Creating Long-Term Value Thru Relentless Innovation • Signs of sustainable improvement and demand growth from most of our end markets • Growing content on next-generation jet engines and airframes • Our investments position ATI to create value for ou
Slide 23: Additional Information
Additional Information September 2014 © 2014 ATI. All Rights Reserved. Creating Long-Term Value Thru Relentless Innovation Creating Long-Term Value Thru Relentless Innovation
Slide 24: 2014 Start-Up & Qualification Costs and LIFO/NRV
24 © 2014 ATI All Rights Reserved. Q1 Q2 Q3* September 2014 2014 Start-Up & Qualification Costs and LIFO/NRV Start-Up and Qualification Costs HRPF start-up costs $2.3 $4.0 $12.0 Titanium sponge PQ qualification $14.8 $11.4 $6.0 Total $17.1 $15.4 $18.0 Inventory Valuation Cost (Benefit) LIFO $9.0 $28
Slide 25: Titanium Product and Process Life Cycle
Titanium Product and Process Life Cycle September 2014 © 2014 ATI All Rights Reserved. 25 Maturity Introduction Growth Decline VAR PAM EB Hot Deformation Extrusions Additive Mfg ATI 6-4™ Ti-Al ATI 6-2-4-6™ ATI 425 ® Acid Leach Sponge Vacuum Distilled Sponge Hunter Process Near-net Shapes ATI 8-1-1™
Slide 26: Nickel-based Alloy Product and Process Life Cycle
© 2014 ATI All Rights Reserved. 26 Nickel-based Alloy Product and Process Life Cycle September 2014 Maturity Introduction Growth Decline VIM Hot-die forging ATI’s HRPF ATI 718™ ATI 718Plus ® Isothermal forging Ni Powder Fine-Grain Billet Game-changing Innovation & Sustaining Innovation Rene 65 VAR E

Allegheny Technologies — Investor Presentation (September 2014) on 6ix

Ati — Allegheny Technologies — Investor Presentation (September 2014)

Slide 1: Creating Long-Term Value Thru Relentless Innovation

Slide 2: Forward-Looking Statements

Slide 3: Our Vision, Commitment, Values and Principles

Slide 4: Diversified Markets – First Half 2014

Slide 5: Diversified Products – First Half 2014

Slide 6: We Are Near the End of this Extraordinary Spending Cycle

Slide 7: Hot-Rolling and Processing Facility (HRPF)

Slide 8: Premium-Quality (PQ) Qualification Expected in 2015

Slide 9: Next-Generation Uses Significantly More of our Products

Slide 10: Engine Program Firm Order Book

Slide 11: Significant Growth for ATI's New Materials and Components

Slide 12: ATI Technology and Product Innovation

Slide 13: Continue Value-Added Product Transformation

Slide 14: Leverage ATI's Strategic Relationships & Vertical Integration

Slide 15: ATI Forged Products/ATI Cast Products

Slide 16: ATI Forged Products Markets

Slide 17: Indications of Oil & Gas Market Recovery

Slide 18: Innovation for the Oil & Gas Market

Slide 19: Chemical Process Industry Market

Slide 20: Growing Transplant Domestic Supply Chain

Slide 21: Confidence in Long Term

Slide 22: Creating Long-Term Value Thru Relentless Innovation

Slide 23: Additional Information

Slide 24: 2014 Start-Up & Qualification Costs and LIFO/NRV

Slide 25: Titanium Product and Process Life Cycle

Slide 26: Nickel-based Alloy Product and Process Life Cycle