Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Balance Sheets

March 31, 2014



(In millions)	Guarantor Parent		Subsidiary		Non-guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	9.5	$	13.0	$	815.2	$	—		$	837.7
Accounts receivable, net	0.5		196.8		360.2		—			557.5
Intercompany notes receivable	—		—		1,781.3		(1,781.3		)	—
Inventories, net	—		353.8		1,054.7		—			1,408.5
Prepaid expenses and other current assets	38.7		9.9		38.3		—			86.9
Current assets of discontinued operations	—		—		5.1		—			5.1
Total current assets	48.7		573.5		4,054.8		(1,781.3		)	2,895.7
Property, plant and equipment, net	2.6		1,430.8		1,455.9		—			2,889.3
Cost in excess of net assets acquired	—		126.6		648.9		—			775.5
Intercompany notes receivable	—		—		200.0		(200.0		)	—
Investment in subsidiaries	6,208.8		37.7		—		(6,246.5		)	—
Other assets	31.1		30.2		292.3		—			353.6
Non-current assets of discontinued operations	—		—		3.4		—			3.4
Total assets	$	6,291.2	$	2,198.8	$	6,655.3	$	(8,227.8	)	$	6,917.5
Liabilities and stockholders’ equity:
Accounts payable	$	4.5	$	315.3	$	198.4	$	—		$	518.2
Accrued liabilities	45.2		59.4		190.3		—			294.9
Intercompany notes payable	895.8		885.5		—		(1,781.3		)	—
Deferred income taxes	15.7		—		—		—			15.7
Short-term debt and current portion of long-term debt	403.0		0.1		16.9		—			420.0
Current liabilities of discontinued operations	—		—		4.9		—			4.9
Total current liabilities	1,364.2		1,260.3		410.5		(1,781.3		)	1,253.7
Long-term debt	1,350.7		150.4		25.7		—			1,526.8
Intercompany notes payable	—		200.0		—		(200.0		)	—
Accrued postretirement benefits	—		176.1		256.6		—			432.7
Pension liabilities	317.0		5.5		39.3		—			361.8
Deferred income taxes	214.6		—		—		—			214.6
Other long-term liabilities	77.6		19.3		51.7		—			148.6
Total liabilities	3,324.1		1,811.6		783.8		(1,981.3		)	3,938.2
Redeemable noncontrolling interest	—		—		12.2		—			12.2
Total stockholders’ equity	2,967.1		387.2		5,859.3		(6,246.5		)	2,967.1
Total liabilities and stockholders’ equity	$	6,291.2	$	2,198.8	$	6,655.3	$	(8,227.8	)	$	6,917.5

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Operations and Comprehensive Income

For the three months ended March 31, 2014



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	427.9		$	559.4		$	—		$	987.3
Cost of sales	12.3			439.6			465.2			—			917.1
Selling and administrative expenses	27.1			10.1			30.5			—			67.7
Income (loss) before interest, other income and income taxes	(39.4		)	(21.8		)	63.7			—			2.5
Interest income (expense), net	(28.5		)	(10.6		)	10.0			—			(29.1		)
Other income (loss) including equity in income of unconsolidated subsidiaries	41.9			0.3			0.6			(42.2		)	0.6
Income (loss) from continuing operations before income tax provision (benefit)	(26.0		)	(32.1		)	74.3			(42.2		)	(26.0		)
Income tax provision (benefit)	(10.0		)	(11.3		)	26.4			(15.1		)	(10.0		)
Income (loss) from continuing operations	(16.0		)	(20.8		)	47.9			(27.1		)	(16.0		)
Income (loss) from discontinued operations, net of tax	(1.9		)	—			(1.9		)	1.9			(1.9		)
Net income (loss)	(17.9		)	(20.8		)	46.0			(25.2		)	(17.9		)
Less: Net income attributable to noncontrolling interests	—			—			2.1			—			2.1
Net income (loss) attributable to ATI	$	(17.9	)	$	(20.8	)	$	43.9		$	(25.2	)	$	(20.0	)
Comprehensive income (loss) attributable to ATI	$	(0.8	)	$	(18.8	)	$	42.5		$	(23.9	)	$	(1.0	)

Condensed Statements of Cash Flows

For the three months ended March 31, 2014



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	(29.7	)	$	(125.6	)	$	98.4		$	—		$	(56.9	)
Investing Activities:
Purchases of property, plant and equipment	—			(26.3		)	(13.3		)	—			(39.6		)
Purchase of business, net of cash acquired	—			—			(71.1		)	—			(71.1		)
Net receipts/(payments) on intercompany activity	—			—			(208.9		)	208.9			—
Asset disposals and other	—			1.4			0.4			—			1.8
Cash flows provided by (used in) investing activities	—			(24.9		)	(292.9		)	208.9			(108.9		)
Financing Activities:
Net receipts/(payments) on intercompany activity	58.9			150.0			—			(208.9		)	—
Dividends paid to stockholders	(19.3		)	—			—			—			(19.3		)
Other	(4.0		)	—			—			—			(4.0		)
Cash flows provided by (used in) financing activities	35.6			150.0			—			(208.9		)	(23.3		)
Increase (decrease) in cash and cash equivalents	$	5.9		$	(0.5	)	$	(194.5	)	$	—		$	(189.1	)

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Balance Sheets

December 31, 2013



	Guarantor				Non-guarantor
(In millions)	Parent		Subsidiary		Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	3.6	$	13.5	$	1,009.7	$	—		$	1,026.8
Accounts receivable, net	0.3		179.4		348.5		—			528.2
Intercompany notes receivable	—		—		1,589.4		(1,589.4		)	—
Inventories, net	—		295.5		1,026.6		—			1,322.1
Prepaid expenses and other current assets	26.2		6.5		34.9		—			67.6
Current assets of discontinued operations	—		—		6.1		—			6.1
Total current assets	30.1		494.9		4,015.2		(1,589.4		)	2,950.8
Property, plant and equipment, net	2.9		1,397.5		1,473.7		—			2,874.1
Cost in excess of net assets acquired	—		112.1		615.8		—			727.9
Intercompany notes receivable	—		—		200.0		(200.0		)	—
Investment in subsidiaries	6,170.8		37.7		—		(6,208.5		)	—
Other assets	35.7		32.0		274.3		—			342.0
Non-current assets of discontinued operations	—		—		3.7		—			3.7
Total assets	$	6,239.5	$	2,074.2	$	6,582.7	$	(7,997.9	)	$	6,898.5
Liabilities and stockholders’ equity:
Accounts payable	$	3.1	$	310.5	$	158.2	$	—		$	471.8
Accrued liabilities	51.6		56.6		202.7		—			310.9
Intercompany notes payable	825.6		763.8		—		(1,589.4		)	—
Deferred income taxes	3.5		—		—		—			3.5
Short-term debt and current portion of long-term debt	402.9		0.1		16.9		—			419.9
Current liabilities of discontinued operations	—		—		4.9		—			4.9
Total current liabilities	1,286.7		1,131.0		382.7		(1,589.4		)	1,211.0
Long-term debt	1,350.8		150.4		26.2		—			1,527.4
Intercompany notes payable	—		200.0		—		(200.0		)	—
Accrued postretirement benefits	—		179.7		262.7		—			442.4
Pension liabilities	323.0		5.6		39.6		—			368.2
Deferred income taxes	206.6		—		—		—			206.6
Other long-term liabilities	77.7		20.2		50.3		—			148.2
Total liabilities	3,244.8		1,686.9		761.5		(1,789.4		)	3,903.8
Total stockholders’ equity	2,994.7		387.3		5,821.2		(6,208.5		)	2,994.7
Total liabilities and stockholders’ equity	$	6,239.5	$	2,074.2	$	6,582.7	$	(7,997.9	)	$	6,898.5

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Operations and Comprehensive Income

For the three months ended March 31, 2013



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	477.1		$	621.9		$	—		$	1,099.0
Cost of sales	17.5			466.7			514.3			—			998.5
Selling and administrative expenses	28.5			10.4			33.5			—			72.4
Income (loss) before interest, other income and income taxes	(46.0		)	—			74.1			—			28.1
Interest expense, net	(11.7		)	(2.6		)	(0.1		)	—			(14.4		)
Other income (loss) including equity in income of unconsolidated subsidiaries	72.5			(5.4		)	9.2			(75.2		)	1.1
Income (loss) from continuing operations before income tax provision	14.8			(8.0		)	83.2			(75.2		)	14.8
Income tax provision (benefit)	3.5			(2.5		)	29.0			(26.5		)	3.5
Income (loss) from continuing operations	11.3			(5.5		)	54.2			(48.7		)	11.3
Income (loss) from discontinued operations, net of tax	0.3			—			0.3			(0.3		)	0.3
Net income (loss)	11.6			(5.5		)	54.5			(49.0		)	11.6
Less: Net income attributable to noncontrolling interests	—			—			1.6			—			1.6
Net income (loss) attributable to ATI	$	11.6		$	(5.5	)	$	52.9		$	(49.0	)	$	10.0
Comprehensive income (loss) attributable to ATI	$	25.3		$	(5.4	)	$	40.0		$	(36.7	)	$	23.2

Condensed Statements of Cash Flows

For the three months ended March 31, 2013



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	(25.7	)	$	(95.4	)	$	63.7		$	—		$	(57.4	)
Investing Activities:
Purchases of property, plant and equipment	—			(75.0		)	(11.9		)	—			(86.9		)
Net receipts/(payments) on intercompany activity	—			—			(213.1		)	213.1			—
Asset disposals and other	—			0.1			0.6			—			0.7
Cash flows provided by (used in) investing activities	—			(74.9		)	(224.4		)	213.1			(86.2		)
Financing Activities:
Net receipts/(payments) on intercompany activity	47.4			165.7			—			(213.1		)	—
Dividends paid to stockholders	(19.2		)	—			—			—			(19.2		)
Other	(3.7		)	—			(0.1		)	—			(3.8		)
Cash flows provided by (used in) financing activities	24.5			165.7			(0.1		)	(213.1		)	(23.0		)
Decrease in cash and cash equivalents	$	(1.2	)	$	(4.6	)	$	(160.8	)	$	—		$	(166.6	)