Commercial Aerostructures Market Finally Ready for Take-off · Airbus 520 375 300 284 370 1055 790 1341 777 271 574 1419 833 1503 1456 Boeing 588 314 251 239 272 1002 1044 1413 662

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Commercial Aerostructures Market Finally Ready for Take-off

Henry S. SeinerTIMET

2015

12-May

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Forward Looking StatementInformation included within this press release describing the projected growth and future results and events constitutes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results in future periods may differ materially from the forward-looking statements because of a number of risks and uncertainties, including but not limited to fluctuations in the aerospace, power generation, and general industrial cycles; the relative success of our entry into new markets; competitive pricing; the financial viability of our significant customers; the concentration of a substantial portion of our business with a relatively small number of key customers; the impact on the Company of customer or supplier labor disputes; demand, timing and market acceptance of new commercial and military programs, and our ability to accelerate production levels to timely match order increases on new or existing programs; the availability and cost of energy, raw materials, supplies, and insurance; the cost of pension and postretirement medical benefits; equipment failures; product liability claims and contractual liability; cybersecurity threats; relations with our employees; our ability to manage our operating costs and to integrate acquired businesses in an effective manner, including the ability to realize expected synergies; the timing of new acquisitions; misappropriation of our intellectual property rights; governmental regulations and environmental matters; risks associated with international operations and world economies; the relative stability of certain foreign currencies; fluctuations in oil & gas prices and production; the impact of adverse weather conditions or natural disasters; the availability and cost of financing; implementation of new technologies and process improvements. Any forward-looking statements should be considered in light of these factors. We undertake no obligation to update any forward-looking information to reflect anticipated or unanticipated events or circumstances after the date of this document.

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TrafficBacklog Drivers

PlatformsTrends Forecast

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Record Airframe Backlogs

4Source: Boeing; Airbus as of March 2015

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Orders and Deliveries

5Source: Boeing, Airbus

2000 - 2014 Deliveries

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Airbus 520 375 300 284 370 1055 790 1341 777 271 574 1419 833 1503 1456

Boeing 588 314 251 239 272 1002 1044 1413 662 142 530 805 1203 1355 1432

2000 - 2014 Orders

Airbus 311 325 303 305 320 378 434 453 483 498 510 534 588 626 629

Boeing 491 527 381 281 285 290 398 441 375 481 462 477 601 648 723

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World Traffic

7Source: June 2014 Airline Monitor

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World Traffic

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↑2.7%

↑6.8%↑6.2% ↑6.5%

↑3.6%↑7.4%

Source: June 2014 Airline Monitor

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Oil & Aircraft Deliveries

10Source: www.titudorancea.com

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11Source: February 2015 Airline Monitor and www.titudorancea.com

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12Source: February 2015 Airline Monitor and www.titudorancea.com

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The Future of Oil

13Source: www.titudorancea.com

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Retirements

14767 retired for 787 747-4 retired for 777-300 ER

Source: February 2015 Airline Monitor and Aviation Week

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Geopolitical uncertainty

• Additional sanctions• Expanding military conflicts• Militant group threats

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Increasing Ti per Plane

17Source: Goldman Sachs

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Single aisle encroachment

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• Bombardier CSeries• COMAC C919• Orkut MC-21• Embraer E-Jet E2 family• Regional Jets

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Fate of the widebodies

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Airbus Boeing

Capacity (passengers) 525 467

Length (meters) 72.72 76

Internal Cabin Width (meters) 6.54 6.1

List Price $400M $357M

Top Cruising Speed Mach 0.88 Mach 0.86

Range (nautical miles) 8300 8000

Wing Span (meters) 79.75 68.5

Fuel Efficiency 2.9L/seat/100 km 2.8L/seat/100 km

Source: http://travel.cnn.com/explorations/life/boeing-747-8-and-airbus-a380-death-match-152563

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Hole in the Middle

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• Gap exists between – NEO, MAX– XWB, Dreamliner

• Payload and range capabilities

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Making Sense of Airline Monitor Forecasts ??

23Source: Airline Monitor

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Airline Monitor Forecast: 2014-2020 Deliveries

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January 2006 Forecast

2015 Deliveries = 13452018 Deliveries = 16002020 Deliveries = 1695

Source: Airline Monitor

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June 2014 Forecast



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Airline Monitor Forecast Recap

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Build Rate Year

January 2006 AMForecast

January2008 AM Forecast

January 2010 AM Forecast

January 2012 AM Forecast

June 2014 AM Forecast

January2015 AMForecast

2015 1345 1290 1150 1520 1740 1640

2018 1600 1650 1650 1800 2100 2020

2020 1695 1720 1825 1710 2180 1750


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Forecast

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Source: February 2015 Airline Monitor and internal TIMET estimates and adjustments; does not apply one year offset or spares factor

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Commercial Aerostructures Market Finally Ready for Take-off

Henry S. SeinerTIMET

2015

12-May

Documents

Commercial Aerostructures Market Finally Ready for Take-off · Airbus 520 375 300 284 370 1055 790 1341 777 271 574 1419 833 1503 1456 Boeing 588 314 251 239 272 1002 1044 1413 662