Robert McFarlane EVP & Chief Financial Officer Joe Natale EVP & Chief Commercial Officer
Hunter Dalton, EVP ATI High Performance Specialty Materials...
Transcript of Hunter Dalton, EVP ATI High Performance Specialty Materials...
Mission Critical Metallics®
© 2014 ATI. All Rights Reserved.
Hunter Dalton, EVP ATI High Performance Specialty Materials Group May 20, 2014
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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.
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Change
Specialty Metals Market
Impact
Traffic (RPMs) Capacity (ASMs) Airline Profitability Fuel Costs International Carriers Growth of Low-Cost Carriers
(Sources: Airline Monitor, IATA press releases)
Commercial Aerospace Market Drivers
(Sources: Airline Monitor, IATA press releases)
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Air Transport Production Market 2011-2021*, By OEM
0200400600800
1,0001,2001,4001,6001,8002,000
2011 2013 2015 2017 2019 2021
OtherEmbraerBombardierBoeingAirbus
*Drop in forecasted production rates from 2014 to 2016 is due to potential change in orders, shifting from legacy aircraft to the next generation single aisle.
Units
Secular Growth Trends Titanium intensive airplanes
Fuel efficient hotter burning engines
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0
2,000
4,000
6,000
8,000
10,000
12,000
2011 2013 2015 2017 2019 2021
Other
Rolls Royce
CFM
General Electric
Pratt & Whitney
Aeroengine Production Market 2011-2021, By OEM
*Includes spares Source: IFC SH&E
Units
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Commercial Engines in Service History and Forecast
Source: Airline Monitor The larger the fleet, the greater the demand for spare parts.
70,000+ 3.3% CAGR
50,000
55,000
60,000
65,000
70,000
75,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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Fan Titanium/Composites
High Pressure Compressor Titanium/Superalloys
Combustor Superalloys
High Pressure Turbine Superalloys/Powder Alloys
Low Pressure Turbine Superalloys, Gamma Ti Aluminides
Low Pressure Compressor Titanium
Jet Engine Materials
Engine Shaft High Strength Steels, Superalloys
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Fan & compressor cases, disks, blisks, impellers, blades, vanes, and fasteners
Fan Frame
Titanium Applications in Jet Engines
Intermediate Case
Compressor rotor
Forged Case
Fan Disc
Fan Disc w/blades
Titanium Forged Compressor Blades
Flow- formed Shaft
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100
150
200
250
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Source: ICF SH&E
Titanium & Specialty Alloy Demand Ramping Up with Aeroengine Production Aerospace Raw Material Demand Forecast
Buy Weight, M lbs. Titanium
Specialty alloys
• Fundamental drivers & backlogs remain strong. • Large commercial engines driving titanium demand.
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Engine Development Trends
• Demand for “Green” engines Reduced noise Reduced emissions (SO2, CO2, NO2)
• Improved fuel efficiency Higher operating temperatures Higher temperature capable materials Lighter materials
• Lower operating costs for airlines Reduced maintenance intervals Reduced part count
New Designs and Materials
PWA Geared Turbofan
CFMI LeapX
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Changes in Jet Engine Design • Limited introduction of composites • Larger thrust engines
Consume more nickel-based and titanium alloys per engine • Higher engine temperatures
Nickel-based alloy content in compressor growing High temp powder/cast & wrought alloys
• New titanium-based materials Gamma TiAl
• Advanced Manufacturing • Additive Manufacturing
Evolutionary Change
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Commercial Aerospace Panel 15:30 – 16:45 Sala Nettuno • New titanium-based materials
Gamma TiAl – Dr. Wilfried Smarsly, MTU • Advanced Manufacturing – Mr. Bertrand Flipo, TWI • Additive Manufacturing – Dr. Robert Sharman, GKN
Evolutionary Change
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Demand Drivers • Higher build rates • Larger engines • Larger global fleet for spare parts • New engine designs • Fuel efficient hotter burning engines
Titanium in Jet Engines
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