EX-99.1 2 d785944dex991.htm EX-99.1

© 2014 ATI. All Rights Reserved. September 2014 Exhibit 99.1 Creating Long-Term Value Creating Long-Term Value Thru Relentless Innovation Thru Relentless Innovation

2 © 2014 ATI All Rights Reserved. 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 Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2013. September 2014

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, Accountability and Teamwork Ethical Behavior Safety, Health and Sustainability Product Quality Diversity, Creativity and Learning Be the Best at Creating Value for Strategic Customers Deliver Compound-Annual Growth in Diversified Global Markets Leverage our Technical and Manufacturing Leadership and Capabilities Continuously improve all aspects of our business with focus on safety, quality, cost and sustainability Attract, develop, challenge, and create opportunities for talented and diverse people who share a commitment to our Core Values

4 © 2014 ATI All Rights Reserved. Diversified Markets – First Half 2014 Percentage of ATI’s Sales of $2.1 Billion Aerospace & Defense 34% Oil & Gas/Chemical Process Industry 17% Medical 5% 67% Key Growth Markets Construction/Mining 7% Transportation 4% Electrical Energy 11% Food Equipment & Appliances 6% Conversion & Other 3% Automotive 10% Jet Engine 16% Airframe 11% Government/Defense 7% Down-hole, Subsea, Topside Downstream processing Unconventional Desalination Power generation Power distribution Surgical implants Joint replacement systems MRI superconducting magnets Electronics/Computers/Communication 3% September 2014

5 © 2014 ATI All Rights Reserved. Diversified Products – First Half 2014 Percentage of ATI’s Sales of $2.1 Billion Stainless Plate & Other 3% 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% 77% High-Value Products Specialty Stainless Sheet 11% Stainless Sheet 9%

© 2014 ATI All Rights Reserved. Capital Expenditures 2004-2014 Forecast We Are Near the End of this Extraordinary Spending Cycle September 2014 $0 $100 $200 $300 $400 $500 $600 $700 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014P 2013 Was Peak of Capital Spending 6

7 © 2014 ATI All Rights Reserved. Hot-Rolling and Processing Facility (HRPF) Commissioning in 2014 Designed to provide unsurpassed capability and versatility • o Nickel-based alloys and specialty alloys o Titanium and titanium alloys o Precision Rolled Strip® products o Grain-oriented electrical steel • o Coupled with DRAP = short cycle time 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 High-Value Products Standard Products

Rowley, UT PQ Titanium Sponge Facility Premium-Quality (PQ) Qualification Expected in 2015 September 2014 © 2014 ATI All Rights Reserved. 8

© 2014 ATI All Rights Reserved. 9 Next-Generation Uses Significantly More of our Products 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 *announced September 2014 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Airbus Boeing Bombardier Embraer Others Next Gen Aircraft TOTAL

10 © 2014 ATI All Rights Reserved. Major Engine Programs - Firm Order Book (June 30, 2014) Engine Program Firm Order Book CFM56 - 5B 1,488 CFM56 – 7B 3,666 V2500 1,170 CFM LEAP 6,518 PW 1000G 2,326 GEnx 1,076 Trent 1000 476 Trent XWB 1,484 GE 90 546 GE 9X 132 Legacy Single Aisle 6,324 (Boeing 737, Airbus A320) Future-Gen Single Aisle 8,844 Over 20,000 Large Jet Engines on Firm Order Source: Aero Engine News 7-14 Boeing 787 Airbus A350XWB September 2014 (737 Max, A320Neo)

© 2014 ATI All Rights Reserved. 11 Significant Growth for ATI’s New Materials and Components Commercial Aircraft Engines Source: ATI Market Outlook, Airline Monitor, Forecast International Forecast September 2014 2011 2012 2013E 2014F 2015F 2016F 2017F 2018F Legacy Next Generation

12 © 2014 ATI All Rights Reserved. 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 Flowform Products Titanium Fastener Stock Titanium Extrusions *GE Aviation alloy Rene 65 Alloy* Hot-die Forging Nickel-based Superalloy Powder Isothermal Forging Pictures from ATI display at 2014 Farnborough Airshow September 2014

13 © 2014 ATI All Rights Reserved. Continue Value-Added Product Transformation (Recent Acquisitions) ATI Cast Products, Salem Operations Aerospace Oil & Gas Flowform process ATI Flowform Products September 2014

Ladish Co. Customer Diversification 2010 (Pre-ATI) Percentage of Ladish’s Sales of $403 Million – (taken from Ladish Co. Inc. 2010 10K Filing) ATI Forged Products and ATI Cast Products Customer Diversification Larger sales dollars to major OEMs with more diversification September 2014 United Technologies 17% GE 13% Other Customers 44% Rolls-Royce 26% $403M Annual Sales Leverage ATI’s Strategic Relationships & Vertical Integration $1B+ Annual Sales Goal By 2020 14 © 2014 ATI All Rights Reserved.

15 © 2014 ATI All Rights Reserved. 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 September 2014 Salem, OR

16 16 Market Cudahy Irvine Portland Lebanon Stalowa Wola 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 September 2014 © ATI 2014. All Rights Reserved.

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 0 500 1000 1500 2000 2500 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 20 40 60 80 100 120 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

© ATI 2014. All Rights Reserved. 18 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 September 2014

© 2014 ATI All Rights Reserved. 19 Corrosivity Higher Temperatures permitted 316 SS OmegaBond® Tubing Titanium 25-22-2 SS Bimetallic Zirconium Extrusion Bond Zircadyne ® 702 Inner Tubing Titanium Grade 3 Outer Tubing Urea Stripper Chemical Process Industry Market Example: Urea Stripper Application September 2014

20 © 2014 ATI All Rights Reserved. Automotive Growth Market in U.S. Growing “Transplant” Domestic Supply Chain 16.4 15.5 15.5 8.8 11.9 13.2 16.2 September 2014 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 OTHER VOLKSWAGEN TOYOTA SUBARU NISSAN MERCEDES HYUNDAI HONDA GM FORD CHRYSLER BMW 13.0 North American Light Vehicle Production by Build (2005-2013)

21 © 2014 ATI All Rights Reserved. • 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 our stockholders as demand grows over the next 3 to 5 years – Most capital investments and new alloys are qualified to produce next-generation products – HRPF and Rowley sponge facility commissioning and qualification • $1.7 billion of capital being commissioned/qualified – ROCE 4.3% at June 30, 2014; ROCE goal is 15% • Our balance sheet remains strong • 2014 financial results pressured by start-up/qualification and inventory costs (see slide 24) Confidence in Long Term September 2014 Creating Long-Term Value Thru Relentless Innovation

© 2014 ATI. All Rights Reserved. Creating Long-Term Value Creating Long-Term Value Thru Relentless Innovation Thru Relentless Innovation

Additional Information September 2014 © 2014 ATI. All Rights Reserved. Creating Long-Term Value Creating Long-Term Value Thru Relentless Innovation Thru Relentless Innovation

24 © 2014 ATI All Rights Reserved. 2014 Start-Up & Qualification Costs and LIFO/NRV Q1 Q2 Q3* 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 $28.9 $19.0 NRV Reserve Adjustment $(9.0) $(26.0) - NRV/LIFO, net $0.0 $2.9 $19.0 *Forecast as of July 22, 2014 LIFO impact on cost of sales is based on estimates of year-end raw materials prices and other assumptions. All numbers are pre-tax in Millions. Q2 2014 conference call slide September 2014

Maturity Titanium Product and Process Life Cycle 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™ Ti Powder ATI 6-6-2™ ATI 6-2-4-2™ Fine-Grain Billet Blisks Game-changing Innovation & Sustaining Innovation ATI’s HRPF This example is representative and is not a complete list Product Form Alloy Process ATI 10-2-3™ Flowform September 2014 © 2014 ATI All Rights Reserved. 25

© 2014 ATI All Rights Reserved. 26 Maturity Nickel-based Alloy Product and Process Life Cycle 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 ESR Powder near-net shapes ATI 706™ ATI 720™ ATI H-X™ ATI 901™ This example is representative and is not a complete list Product Form Alloy Process TSAF Flowform September 2014