EX-99.2 3 dex992.htm PRESENTATION, DATED MARCH 1, 2011

Investor Presentation Wall Street Analyst Forum March 1, 2011 Exhibit 99.2

1 Copyright 2011 SIFCO Industries, Inc. This presentation contains forward–looking statements, as defined by the Private Securities Litigation Reform Act of 1995 (the “Act”). As a general matter, forward-looking statements relate to anticipated trends and expectations rather than historical matters. Although they reflect the company’s current expectations, these statements involve a number of risks, uncertainties, and assumptions relating to the company’s operations and business environment that are difficult to predict and may be beyond the control of the company. Such uncertainties and factors may cause actual results to differ materially from those expressed or implied by forward-looking statements. More information on the risks and uncertainties relating to the forward-looking statements can be found within the company’s most recent periodic reports filed with the Securities and Exchange Commission, which are available on the company’s Investor Relations website at www.sifco.com or the SEC’s website at www.sec.gov. The forward-looking statements contained herein represent the company’s judgment as of the date of this presentation and it cautions readers not to place undue reliance on such statements. The Company undertakes no obligation to publicly release any forward-looking information to reflect anticipated or unanticipated events or circumstances after the date of this document. Forward-Looking Statements

2 Copyright 2011 SIFCO Industries, Inc. Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary

3 Copyright 2011 SIFCO Industries, Inc. SIFCO Industries Management Michael S. Lipscomb - President & Chief Executive Officer Frank A. Cappello – Chief Financial Officer, VP – Finance James P. Woidke – Chief Operating Officer, EVP

4 Copyright 2011 SIFCO Industries, Inc. Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary

5 Copyright 2011 SIFCO Industries, Inc. SIFCO Industries, Inc. SIFCO Industries is engaged in the production and sale of a variety of metalworking processes, services and products primarily to the specific design requirements of our customers. Operations: Two Forging Plants Aerospace Turbine Component Repair Facility Multiple Selective Plating Operations Products: Forged components, machined forged parts, remanufactured components for aero turbine engines, and selective plating products and contract services for low volume, refurbishment and OEM applications

6 Copyright 2011 SIFCO Industries, Inc. About SIFCO Industries - Milestones 1913 Steel Improvement Company is founded and subsequently merged with Forest City Electric to form Steel Improvement & Forge Company - - SIFCO 1930 Initial supplier to emerging aircraft industry 1957 SIFCO becomes a public company SIF listed on AMEX T&W Forge acquired in December 1968 2010 1968-98 Enters turbine component repair business and grows with multiple facilities 2006 Exits large aero turbine component repair business

7 SIFCO Industries, Inc. Division Description FY 2010 Net Sales FY2010 Backlog Locations Forged Components Group ASC Group Repair Group Manufacturer of forged OEM and aftermarket aerospace and IGT components $78.4 million * (79% of Net Sales) $89.9 million Cleveland, OH Alliance, OH Develops, manufactures and sells selective plating products and provides contract services for low volume repair, refurbishment and OEM applications $12.2 million (12% of Net Sales) N/A Cleveland, OH Houston, TX East Windsor, CT Norfolk, VA Bromsgrove, UK Paris, France Rattvik, Sweden Repair and remanufacture of small aerospace turbine engine components $8.9 million (9% of Net Sales) $2.3 million Minneapolis, MN * Pro-forma results reflect T&W Forge as if it was included in SIFCO’s operations during 100% of FY 2010.

8 Copyright 2011 SIFCO Industries, Inc. Aircraft Applications APU Parts & Mounts Airframe Parts Landing Gears Wheels & Brakes Wing Supports Airbus Allison Aircraft Braking Boeing Cessna BF Goodrich Aerospace Hamilton-Sundstrand Northrop Grumman Lockheed Martin Messier-Dowty Parker-Hannifin Pratt & Whitney Aircraft Rolls-Royce

9 Copyright 2011 SIFCO Industries, Inc. Rotor Hubs Transmission Gears Spindles Engine Parts Helicopter Applications Agusta Aerospace Bell Helicopter Boeing Helicopter Pratt & Whitney Canada Rolls-Royce Sikorsky Aircraft Turbomeca Pitch Housing

10 Copyright 2011 SIFCO Industries, Inc. Engine Applications Rolls-Royce Hamilton Sundstrand General Electric Pratt & Whitney MTU Avio Honeywell Engine Mounts Compressor Discs Bearing Components Drive Shafts Hot Section Components Internal Drive Gears

11 Copyright 2011 SIFCO Industries, Inc. Stators/Vanes Airfoils/Blades Industrial Gas Turbine Applications GE – Energy Siemens Alstom Power T-Fairings

12 Copyright 2011 SIFCO Industries, Inc. Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary

13 Copyright 2011 SIFCO Industries, Inc. Market Segments Blue-Chip Customer Base

14 Copyright 2011 SIFCO Industries, Inc. FY 2010 Revenues: $99.6 million * SIFCO Forge 62% T&W Forge 16% Applied Surface Concepts 12% Turbine Component Repair 10% * Pro-forma results reflect T&W Forge as if it was included in SIFCO’s operations during 100% of FY 2010. All figures are in millions ($)

15 Copyright 2011 SIFCO Industries, Inc. Market Segments Aerospace Flight-critical components and services found on variety of commercial airliners, business and military jets, and helicopters. Energy Engineered forged components to leading industrial gas turbine (IGT) manufacturers. Provider of selective plating product and services to oil and gas customers throughout the world. Two primary market segments: * Aerospace - 75% * Energy - 17% * Other - 8% World-wide provider of highly-engineered components and services to both the Aerospace and Energy markets. High-Growth End Markets

16 Copyright 2011 SIFCO Industries, Inc. Revenue by Market Segment Major Market Segments: * Aerospace -75% *Energy – 17% *Other – 8% Military IGT Civil Oil & Gas Pre-T&W Forge Acquisition Post-T&W Forge Acquisition

17 Copyright 2011 SIFCO Industries, Inc. Market Segments World Commercial Transport Production Boeing 737 (27), 747 (62) 757 (23), 767(40) 777 (18), 787(13) Airbus A319/A320 (7) A330/A340 (18) A380 (1) Embraer 145 (21) 170/190 (7) Active SIFCO Platforms ( ) represents number of active part numbers Source: Forecast International

18 Copyright 2011 SIFCO Industries, Inc. Market Segments World Civil Rotary-Wing Production Sikorsky S76 (21) S92 (33) Bell Helicopter 206 (7) 212 (5) 214 (24) 222 (16) 412 (12) 429 (2) 449 (8) 609 (6) Active SIFCO Platforms ( ) represents number of active part numbers Source: Forecast International

19 Copyright 2011 SIFCO Industries, Inc. Market Segments Sikorsky o Blackhawk (UH-60/S-70) 1,015 64 o Seahawk (SH/MH-60) 429 64 o CH-53K 50 22 • (200 total planned for Marines) * Bell / Boeing o V-22 Tiltrotor 311 24 Boeing o CH-47 292 31 o F-18 Hornet 234 (thru 2016) 47 Lockheed Martin o F-16 166 (thru 2017) 51 o F35 Joint Strike Fighter 924 71 Major Military Platforms Active SIFCO Part Numbers * Source: Forecast International Est. Production Units 2010-2019 *

20 Copyright 2011 SIFCO Industries, Inc. Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary

21 Copyright 2011 SIFCO Industries, Inc. Clear Business Strategy Focus on long-term, consistent growth Invest in technology that yields a competitive advantage Drive Operational Excellence Grow through disciplined, strategic acquisitions and/or capital investment

22 Copyright 2011 SIFCO Industries, Inc. Invest in Technology That Yields a Competitive Advantage New 35,000 lb. Hammer Cell - $6.5 million Satisfy current/new customers’ need for larger components o In-service date: January, 2010 o Cell includes: o 35,000 lb. steam hammer o Three hydraulic presses o State-of-the-art rotary furnace o New hammer cell doubled the capability of Cleveland Forge facility o Part weight from 500 lbs. to 1,000 lb. max. o Received GE order for large IGT blade in 2/11. New Chemical Etching Line - $110K New capability to serve new customer – Siemens o In-service date: December, 2010 o Line etches cast blades for Siemens IGT units.

23 Copyright 2011 SIFCO Industries, Inc. Drive Operational Excellence A critical strategy in remaining competitive is to drive Operational Excellence at all divisions. More importantly, differentiate ourselves from the competition! Three main areas of focus: Long-term sustained Continuous Improvement SMART Lean TOC Six Sigma Reliability Centered Maintenance 100% Customer Satisfaction Focus is on being customer-centered 100% on-time delivery is the expectation Organization Development Enhance succession planning – right people for the right positions Look for “strategic additions” - personnel Preferred Supplier Status

24 Copyright 2011 SIFCO Industries, Inc. Grow through Disciplined, Strategic Acquisitions and/or Capital Investment Renewed Focus to Grow the Business Major effort to strengthen the Portfolio Growth will come from the following: New Products • Complimentary or value-added opportunities Enhanced Capabilities Market Expansion • Entry into new markets and/or development of new customers

25 Copyright 2011 SIFCO Industries, Inc. Impact of T&W Forge Acquisition T&W Forge Acquisition, completed 12/10/10, provides the following: Further Leveraging and Expansion of Core Forging Platform • Equipment between both forge operations is complimentary • Cleveland facility has increased capability for larger components due to recent installation of 35K hammer cell Just awarded new large component for GE 7FA.05 platform • Expect market penetration due to strong customer relationships SIFCO Forge : Rolls Royce T&W Forge: GE Energy Diversification into Power Generation Market • Forged Components Group has primarily been focused on aerospace • Energy now represents 17% of business Immediately Accretive to EPS • Provides synergistic opportunities to enhance profitability Consistent with Overall Business Strategy

26 Copyright 2011 SIFCO Industries, Inc. Recent Program Awards Rolls Royce 5-year LTA valued at $85 million. (2011-2016) Contract covers compressor discs, shafts and various transmission gears for the Lockheed Martin C-130, Bell/Boeing V-22 Osprey, Embraer ERJ and the Lockheed Martin F-35 Joint Strike Fighter (JSF). Sikorsky Multi-Year (MY) 7 award valued at $29 million. (2011-2012) Award is for supply of rotor and tail rotor transmission gears, rotor head structural components and landing gear. Components are associated with the family of Blackhawk military helicopters (UH- 60/S-70). Awarded multiple part numbers on new heavy-lift CH-53K helicopter still in development. Estimated annual volume is $2 million with 2018 in-service date.

27 Copyright 2011 SIFCO Industries, Inc. Recent Program Awards Hamilton Sundstrand 10-year LTA valued at $35 million. (2010-2020) Various impellors, shafts, diffusers and auxiliary power unit (APU) discs for multiple commercial and military aircraft. Select aircraft include the Boeing 737/747/777, Airbus A320/A340/A380, Embraer ERJ, Boeing C-130, Bell/Boeing V-22 Osprey, Boeing F-15, Lockheed Martin F-16. 10-year LTA valued at $25 million. (2011-2021) Award is to supply multiple transmission gears and shafts as well as pump actuators, valves and gears. These components are associated with the Boeing 787 and the Lockheed Martin F-35 Joint Strike Fighter (JSF). Embraer Two-year LTA valued at $3.5 million. (2011-2012) LTA covers landing gear components for the ERJ 170/190 aircraft as well as the Sikorsky S-92.

28 Copyright 2011 SIFCO Industries, Inc. Discussion Outline Introductions Overview of SIFCO Industries, Inc. Market Segments Business Strategy Financial Summary

29 Copyright 2011 SIFCO Industries, Inc. FY 2010 Financial Highlights Posted strong operating results in a challenging economic environment: o FY2010 Pro-forma net sales increased 6% to $99.6 million 1 • Primary driver was acquisition of TWF o FY2010 Pro-forma EBITDA (FIFO basis) increased 14% to $14.4 million. 1 o EPS improved to $1.31 from $1.00 on Pro-forma basis. 1 Continued strong management of balance sheet o Successful working capital management efforts maintained very strong current ratio of 3.9. o Cash and ST investments increased to $21.6 million – essentially no debt. New $30 million revolving credit facility negotiated in December, 2010 in conjunction with TWF acquisition. o $11.7 million borrowed to fund acquisition – currently at $7.7 million. 1 Pro-forma results reflect T&W Forge as if it was included in SIFCO’s operations during 100% of FY 2010.

30 Copyright 2011 SIFCO Industries, Inc. FY 2010 Financial Highlights $6.7 million reinvested in the equipment/facilities to enhance capabilities: o Completed installation of new 35K hammer cell - $3.8 million in FY2010 o Completed installation of new ERP software system - $ 0.6 million in FY2010 Special dividend increased 50% from $0.10/share to $0.15/share. 66,000 shares repurchased at an average price of $10.60. o The six-month repurchase period expired in December, 2010.

31 Copyright 2011 SIFCO Industries, Inc. FY2010 Financial Results FY 2010 Actual FY 2010 Pro Forma* Net Sales $83,270 $99,619 Gross Profit $19,741 $24,183 23.7% 24.3% Net Income $5,362 $7,017 EPS $1.00 $1.32 EBITDA (LIFO basis) $10,303 $14,228 +/- LIFO expense (income) $175 $175 EBITDA (FIFO basis) $10,478 $14,403 * Pro-forma results reflect T&W Forge as if it was included in SIFCO’s operations during 100% of FY 2010

32 Copyright 2011 SIFCO Industries, Inc. Historical Financial Results FY 2007 FY 2008 FY 2009 Net Sales $87,255 $101,391 $93,888 Gross Profit $21,420 $22,230 $23,941 24.5% 21.9% 25.5% Net Income $6,728 $5,830 $8,035 EPS $1.27 $1.09 $1.51 EBITDA (LIFO basis) $11,865 $10,428 $14,203 +/- LIFO expense (income) $331 $1,712 $(1,583) EBITDA (FIFO basis) $12,196 $12,140 $12,620

33 Copyright 2011 SIFCO Industries, Inc. Overall Historical Backlog Backlog is primarily driven by Forged Components Group - - steady growth over last 4 quarters

34 Copyright 2011 SIFCO Industries, Inc. Firmly Established Relationships with Diverse, Blue-Chip Customer Base Significant Backlog & Revenue Visibility Capacity to Expand Profitably Experienced Management Team High-Growth End Markets Platform for Future Acquisitions & Expansions Investment Highlights

35 Copyright 2011 SIFCO Industries, Inc. Contact Information SIFCO Industries, Inc. 970 E. 64 th St. Cleveland, Ohio 44103 Frank Cappello VP-Finance and Chief Financial Officer (216) 432-6278 WWW.SIFCO.COM