Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Balance Sheets

September 30, 2014



(In millions)	Guarantor Parent		Subsidiary		Non-guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	6.0	$	18.1	$	240.1	$	—		$	264.2
Accounts receivable, net	0.4		229.5		393.8		—			623.7
Intercompany notes receivable	—		—		2,534.3		(2,534.3		)	—
Inventories, net	—		356.8		1,060.9		—			1,417.7
Prepaid expenses and other current assets	51.8		12.5		45.1		—			109.4
Total current assets	58.2		616.9		4,274.2		(2,534.3		)	2,415.0
Property, plant and equipment, net	2.3		1,502.9		1,431.9		—			2,937.1
Cost in excess of net assets acquired	—		126.6		656.2		—			782.8
Intercompany notes receivable	—		—		200.0		(200.0		)	—
Investment in subsidiaries	6,404.8		37.7		—		(6,442.5		)	—
Other assets	25.3		28.1		314.9		—			368.3
Total assets	$	6,490.6	$	2,312.2	$	6,877.2	$	(9,176.8	)	$	6,503.2
Liabilities and stockholders’ equity:
Accounts payable	$	5.5	$	299.9	$	177.3	$	—		$	482.7
Accrued liabilities	38.0		65.5		202.2		—			305.7
Intercompany notes payable	1,454.7		1,079.6		—		(2,534.3		)	—
Deferred income taxes	33.7		—		—		—			33.7
Short-term debt and current portion of long-term debt	0.5		0.1		16.9		—			17.5
Total current liabilities	1,532.4		1,445.1		396.4		(2,534.3		)	839.6
Long-term debt	1,350.7		150.3		8.1		—			1,509.1
Intercompany notes payable	—		200.0		—		(200.0		)	—
Accrued postretirement benefits	—		174.1		246.4		—			420.5
Pension liabilities	304.2		5.2		39.0		—			348.4
Deferred income taxes	244.6		—		—		—			244.6
Other long-term liabilities	79.1		21.2		49.0		—			149.3
Total liabilities	3,511.0		1,995.9		738.9		(2,734.3		)	3,511.5
Redeemable noncontrolling interest	—		—		12.1		—			12.1
Total stockholders’ equity	2,979.6		316.3		6,126.2		(6,442.5		)	2,979.6
Total liabilities and stockholders’ equity	$	6,490.6	$	2,312.2	$	6,877.2	$	(9,176.8	)	$	6,503.2

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Operations and Comprehensive Income

For the three months ended September 30, 2014



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	473.8		$	595.8		$	—		$	1,069.6
Cost of sales	7.8			465.0			499.8			—			972.6
Selling and administrative expenses	27.5			12.2			29.0			—			68.7
Income (loss) before interest, other income and income taxes	(35.3		)	(3.4		)	67.0			—			28.3
Interest income (expense), net	(26.4		)	(11.3		)	12.5			—			(25.2		)
Other income (loss) including equity in income of unconsolidated subsidiaries	65.8			0.4			0.5			(65.7		)	1.0
Income (loss) from continuing operations before income tax provision (benefit)	4.1			(14.3		)	80.0			(65.7		)	4.1
Income tax provision (benefit)	0.5			(4.6		)	23.4			(18.8		)	0.5
Income (loss) from continuing operations	3.6			(9.7		)	56.6			(46.9		)	3.6
Income (loss) from discontinued operations, net of tax	(0.7		)	—			(0.7		)	0.7			(0.7		)
Net income (loss)	2.9			(9.7		)	55.9			(46.2		)	2.9
Less: Net income attributable to noncontrolling interests	—			—			3.6			—			3.6
Net income (loss) attributable to ATI	$	2.9		$	(9.7	)	$	52.3		$	(46.2	)	$	(0.7	)
Comprehensive income (loss) attributable to ATI	$	15.3		$	(7.8	)	$	34.1		$	(31.7	)	$	9.9

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Operations and Comprehensive Income

For the nine months ended September 30, 2014



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	1,415.5		$	1,760.4		$	—		$	3,175.9
Cost of sales	34.9			1,429.8			1,454.5			—			2,919.2
Selling and administrative expenses	75.5			32.6			94.0			—			202.1
Income (loss) before interest, other income and income taxes	(110.4		)	(46.9		)	211.9			—			54.6
Interest income (expense), net	(83.5		)	(33.1		)	33.8			—			(82.8		)
Other income (loss) including equity in income of unconsolidated subsidiaries	168.6			0.9			1.9			(168.5		)	2.9
Income (loss) from continuing operations before income tax provision (benefit)	(25.3		)	(79.1		)	247.6			(168.5		)	(25.3		)
Income tax provision (benefit)	(12.4		)	(27.7		)	88.4			(60.7		)	(12.4		)
Income (loss) from continuing operations	(12.9		)	(51.4		)	159.2			(107.8		)	(12.9		)
Income (loss) from discontinued operations, net of tax	(2.8		)	—			(2.8		)	2.8			(2.8		)
Net income (loss)	(15.7		)	(51.4		)	156.4			(105.0		)	(15.7		)
Less: Net income attributable to noncontrolling interests	—			—			9.0			—			9.0
Net income (loss) attributable to ATI	$	(15.7	)	$	(51.4	)	$	147.4		$	(105.0	)	$	(24.7	)
Comprehensive income (loss) attributable to ATI	$	42.7		$	(45.4	)	$	136.8		$	(99.2	)	$	34.9

Condensed Statements of Cash Flows

For the nine months ended September 30, 2014



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	(60.0	)	$	(263.2	)	$	285.0		$	—		$	(38.2	)
Investing Activities:
Purchases of property, plant and equipment	(0.1		)	(117.2		)	(40.2		)	—			(157.5		)
Purchases of businesses, net of cash acquired	—			—			(92.5		)	—			(92.5		)
Net receipts/(payments) on intercompany activity	—			—			(905.4		)	905.4			—
Asset disposals and other	—			1.6			0.3			—			1.9
Cash flows provided by (used in) investing activities	(0.1		)	(115.6		)	(1,037.8		)	905.4			(248.1		)
Financing Activities:
Payments on long-term debt and capital leases	(397.8		)	(0.1		)	(16.8		)	—			(414.7		)
Net receipts/(payments) on intercompany activity	521.9			383.5			—			(905.4		)	—
Dividends paid to stockholders	(57.8		)	—			—			—			(57.8		)
Other	(3.8		)	—			—			—			(3.8		)
Cash flows provided by (used in) financing activities	62.5			383.4			(16.8		)	(905.4		)	(476.3		)
Increase (decrease) in cash and cash equivalents	$	2.4		$	4.6		$	(769.6	)	$	—		$	(762.6	)

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		41.0		—			73.7
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		278.0		—			345.7
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		207.6		—			315.8
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
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 September 30, 2013



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	422.3		$	550.1		$	—		$	972.4
Cost of sales	19.4			424.3			475.6			—			919.3
Selling and administrative expenses	35.4			7.4			27.8			—			70.6
Income (loss) before interest, other income and income taxes	(54.8		)	(9.4		)	46.7			—			(17.5		)
Interest income (expense), net	(17.3		)	(9.7		)	8.8			—			(18.2		)
Other income (loss) including equity in income of unconsolidated subsidiaries	36.8			0.1			0.3			(36.8		)	0.4
Income (loss) from continuing operations before income tax provision (benefit)	(35.3		)	(19.0		)	55.8			(36.8		)	(35.3		)
Income tax provision (benefit)	(8.5		)	(6.6		)	19.5			(12.9		)	(8.5		)
Income (loss) from continuing operations	(26.8		)	(12.4		)	36.3			(23.9		)	(26.8		)
Income (loss) from discontinued operations, net of tax	(5.4		)	—			(5.4		)	5.4			(5.4		)
Net income (loss)	(32.2		)	(12.4		)	30.9			(18.5		)	(32.2		)
Less: Net income attributable to noncontrolling interests	—			—			1.6			—			1.6
Net income (loss) attributable to ATI	$	(32.2	)	$	(12.4	)	$	29.3		$	(18.5	)	$	(33.8	)
Comprehensive income (loss) attributable to ATI	$	(9.9	)	$	(12.2	)	$	42.0		$	(31.5	)	$	(11.6	)

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Operations and Comprehensive Income

For the nine months ended September 30, 2013



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	1,375.2		$	1,753.0		$	—		$	3,128.2
Cost of sales	55.5			1,359.5			1,471.9			—			2,886.9
Selling and administrative expenses	88.9			27.3			93.9			—			210.1
Income (loss) before interest, other income and income taxes	(144.4		)	(11.6		)	187.2			—			31.2
Interest income (expense), net	(45.5		)	(27.0		)	26.0			—			(46.5		)
Other income (loss) including equity in income of unconsolidated subsidiaries	175.9			0.6			0.8			(176.0		)	1.3
Income (loss) from continuing operations before income tax provision (benefit)	(14.0		)	(38.0		)	214.0			(176.0		)	(14.0		)
Income tax provision (benefit)	(4.4		)	(9.8		)	72.4			(62.6		)	(4.4		)
Income (loss) from continuing operations	(9.6		)	(28.2		)	141.6			(113.4		)	(9.6		)
Income (loss) from discontinued operations, net of tax	(4.4		)	—			(4.4		)	4.4			(4.4		)
Net income (loss)	(14.0		)	(28.2		)	137.2			(109.0		)	(14.0		)
Less: Net income attributable to noncontrolling interests	—			—			5.4			—			5.4
Net income (loss) attributable to ATI	$	(14.0	)	$	(28.2	)	$	131.8		$	(109.0	)	$	(19.4	)
Comprehensive income (loss) attributable to ATI	$	35.3		$	(27.8	)	$	134.8		$	(114.9	)	$	27.4

Condensed Statements of Cash Flows

For the nine months ended September 30, 2013



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	(27.1	)	$	(87.2	)	$	366.0		$	(24.3	)	$	227.4
Investing Activities:
Purchases of property, plant and equipment	(0.2		)	(359.1		)	(36.2		)	—			(395.5		)
Net receipts/(payments) on intercompany activity	—			—			(31.4		)	31.4			—
Asset disposals and other	0.1			0.1			0.6			—			0.8
Cash flows provided by (used in) investing activities	(0.1		)	(359.0		)	(67.0		)	31.4			(394.7		)
Financing Activities:
Borrowings on long-term debt	500.0			—			—			—			500.0
Net receipts/(payments) on intercompany activity	(409.0		)	440.4			—			(31.4		)	—
Dividends paid to stockholders	(57.7		)	—			(24.3		)	24.3			(57.7		)
Other	(9.0		)	—			(34.9		)	—			(43.9		)
Cash flows provided by (used in) financing activities	24.3			440.4			(59.2		)	(7.1		)	398.4
Increase (decrease) in cash and cash equivalents	$	(2.9	)	$	(5.8	)	$	239.8		$	—		$	231.1