RTI July2012 IRPresentation

FBRCapitalMarkets&Co.

2012Energy&IndustrialsConferenceM May7,2012

SafeHarbor

Theinformationinthispresentation,includingoralcomments,includesforwardlookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995,andisstatements withinthemeaningofthePrivateSecuritiesLitigationReformActof1995,andissubjecttothesafeharborcreatedbythatAct.Becausesuchforwardlookingstatementsinvolverisksanduncertainties,thereareimportantfactorsthatcouldcauseactualresultstodiffermateriallyfromthoseexpressedorimpliedbysuchforwardlookingstatements.Thesefactorsinclude,butarenotlimitedto,theimpactofglobaleventsonthecommercialaerospaceindustry,ultimatetitaniumcontentpercopyandactualaircraftbuildratesfornewcommercialandmilitaryaircraftprograms,globaleconomicconditions,thecompetitivenatureofthemarketsfor

i lt t l il bilit d i i f t i l th f l l ti f it lspecialtymetals,availabilityandpricingofrawmaterials,thesuccessfulcompletionofourcapitalexpansionprojects,andotherrisksanduncertaintiesincludedintheCompanysfilingswiththeSecuritiesandExchangeCommission.Actualresultscandiffermateriallyfromthoseforecastedorexpected.Additionalinformationconcerningsuchfactorsiscontainedfromtimetotimeintheo e pected dd t o a o at o co ce g suc acto s s co ta ed o t e to t e t eCompanysSecuritiesandExchangeCommissionfilings,copiesofwhichcanbeobtainedfromtheCompanyortheSEC.

2

RTIInternationalMetals InvestmentHighlights

Thetitaniumindustrycontinuestobedrivenbyunprecedentedaerospacedemand,whilemedical,industrialandconsumermarkets

Growinganddiversetitaniummarket

provideadditionalgrowthopportunities.titaniummarket

RTIsuniqueengineering,fabrication,andprecisionmachiningcapabilitiesalignwithgrowingcustomerpreferenceforbroaderandmoresophisticatedintegrated productsandservices

Verticallyintegratedbusinessmodel andmoresophisticatedintegrated,productsandservices

RTIhasapproximately$3.5billionofLTAsthrough2020withAirbus,Boeing,andLockheedMartin.TheseOEMsarelookingforonestopshopplatformsfortheiradvancedtitaniumneeds

StrongandgrowingOEMrelationships

p p p

Acquisitions,jointventures,andinvestmentswillenhanceRTIsROIonexistingandacquiredassets

Opportunisticacquisitionstrategy

Conservativecapitalstructureallowsforflexibilityandopportunisticstrategicinvestment

Conservativefinancialphilosophy

3

ContentsGrowing&DiverseMarkets

IntegratedBusinessModel

Strong&GrowingRelationships

i i i iAcquisitions&JointVentures

Financials

WorldwideTitaniumMillProductForecast

450201116CAGR,6.9%

428

122 12212128

2930 30

31

350

400

450

M

M

s

)

Defense(CAGR,3.6%)

CommercialAerospace(CAGR,8.4%)307

344

380407

417 428

126 127

128 1306181

94106

25

26

200

250

300

p

m

e

n

t

s

(

l

b

s

i

n

M

Industrial/Consumer(CAGR,4.6%)

270

84 96 108119 128 137

147

98104

115

50

100

150

M

i

l

l

S

h

i

p

China(CAGR,8.9%)

4

02010 2011 2012P 2013P 2014P 2015P 2016P

5

Source:RTIestimates,ChineseTitaniumAssociation,May2012.

ComparisonofB787andB777MaterialsContent

B787 B777

Steel10%

Other5% Material

Aluminum 3.9%

2009-2019 Growth RatesComposites11%

Titanium7%

Steel11%

Other1%

7 7

Composites50%

Titanium15%

Aluminum20%

Steel 2.8%Nickel 2.6%Titanium 8.5%Other Materials 4.6%Composites 9.7%

Aluminum70%

Source: AeroStrategy

6

Source:BoeingCo.,D.A.Davidson.

LargeCommercialJetBacklogBuyweights

180

200Platformbacklog,March31,2012

8 f

140

160

180 8+yearsofaircraft

production

8,961Total

Estimated710millionlbsoftitaniuminbacklog

80

100

120

P

o

u

n

d

s

(

m

i

l

l

i

o

n

s

)

Estimated710millionlbsoftitaniuminbacklog Growthplatforms(787,A350,A380)comprise360

millionlbsoftotalbacklog(~51%)

40

60

P

0

20

787 737 A350 A320 777 A380 A330 A321 7478 A319 MS21 C919 CS 767 A318 A340~ Buy-Weight (in lbs, 000) 230 50 220 35 155 245 50 35 80 30 30 30 30 40 30 75

7

Source:AerospaceMarketNews;RTIestimatesforairframe,fasteners,andengine,April2012.

PlatformDiversity

OnlyTitaniumCompanywithSignificantAirframeLTAsinSupportofTopFourPlatforms

B i 8 L kh dM ti JSFBoeing787 LockheedMartinJSF

TotalForecastedDeliveries(2010 2030):3,568 TotalProgramEstimate:>2,500Aircraft

AirbusA350XWB AirbusA380

TotalForecastedDeliveries(2010 2030):3,025 TotalForecastedDeliveries(2010 2030):712

8

Source:AirlineMonitor,July2011;DepartmentofDefense

USMedicalDevicesContractmanufacturingmarketfortherapeutics,201116

$22 CAGRTotal 7 7% AverageOEMcontractmanufacturingspendat

$16

$18

$20Total 7.7%

Other 7.4%

g g p30%ofCOGSin2011,growingto33%ofCOGSin2016

Thecardiovascular,minimallyinvasivesurgery

$10

$12

$14Urology 8.4%

Transfusion&IVKits

6.6%

a

l

u

e

(

$

B

)

, y g y(MIS),andspinalsegmentsareexpectedtodrivesignificantgrowth

Newcardiovascularproductlaunches

$6

$8

$10Spinal 8.8%

MIS 8.3%

Surgical 6.7%

Cardio8 %

V

a

ExpandedtreatmentapplicationsforMIS

Increasedvolumeandhigheraveragepricefor

$0

$2

$4

2011 2016

Vascular8.4%

Orthopedics 7.8%

spinaldevices

9

2011 2016

Source:DeloitteConsulting,January2012.

ContentsGrowing&DiverseMarkets




Financials

TitaniumProductionandCompetition

TitaniumproductionfortheAerospaceindustryisdominatedbyfourmills2011E 2011E

(lbs in millions) Capacity Shipments(lbs in millions) Capacity Shipments

ProducerVSMPO 70,000 56,000 ATI 71,650 45,500 TIMET 98,000 35,500 RTI 20,000 14,700

Millcapabilitiesvarybutfocusonrawmaterialandbasicmanufacturing OEMslookingforsupplierstodomorefabricationeitherdirectlyorbymanaging

subcontractors RTIdeliversintegratedproductionallowingforgreaterpartneringbetweenRTIand

customersRaw Materials Tier 4 Tier 3 Tier 2

Sponge Ingot / Mill Products Fabrication (Built-to-Print) Assembled Detail PartsForgings, Castings Cutting, Forming, Welding Engineering, Kittingg g , g g, g, g g g, gExtrusions Machining Program Management

RTIVSMPOATITIMETSumitomo

11

SumitomoTohoUKTMP

RTIsTransformationTowardsValueaddedsupplier

2000 2012P

TitaniumGroup57%

FabricationGroup22%

DistributionGroup21% TitaniumGroup

27%

F b i ti

DistributionGroup33%

FabricationGroup40%

Primarilymillproductmanufacturing MillproductsandvalueaddedcomponentpartRevenues:>$700millionRevenues:$249.4million

Primarilymillproductmanufacturing

Dependentonshortertermcontracts 10manufacturingsites

Millproductsandvalueaddedcomponentpartmanufacturing

$3.5+billioninLTAs 15manufacturinganddistributionsites

2000 Acquired 1998 Acquiredspecialtyalloys

manufacturer 1998 Acquiredafabrication

servicesprovider

2011 AcquiredAeromet Forming

2012 AcquiredRemmeleEngineering

2000 Acquiredremaining60%ofFrenchdistributor

2004 AcquiredMontrealbasedmachiningfacility

12

VerticallyIntegratedSupplyChainB787SeatTrack

PrecisionMachining

Extrusion

V

a

l

u

e

A

d

d

e

d

Montreal,Canada

SelectOutsideServices

RoughMachineld

V

MillProduct

Houston,USA

WeldHeatTreat

NY,KYandPA

Seattle,WAorMill

BilletfrommillorotherproducersviaTMX

13

ProductLifecycle

Contents

Growing&DiverseMarkets




Financials

SelectLongTermAgreementsCustomer Platform Expiration $MM Comments

Mill Products

Commercial / Defense 2020 ~ 1,300$

Minimum market share of 30% (up to 35%) of all titanium mill product requirementsDefense titanium mill product requirementsMulti-decade supply relationship

JSF 2020 ~ 900$ Supply first 8 million lbs of mill product annuallyOnly existing titanium contract for programMulti-decade supply relationshippp y p

Geared Turbofan Engine 2022 ~ 50$

6246 billet to support various single-aisle engines, including the A320neo

Fabrication

S l t t k th h F b i ti d787 2021 ~ 1,100$ Supply seat tracks through Fabrication and Distribution groupsExpected to generate in excess of $100 million of revenue per year during full-rate production

A320 / A350 2015 / 2020 ~ 150$ Five-year work package for A320 flap tracks$ y p g pA350 seat track extrusions through 2020

Commercial / Defense 2013 ~ 85$ Bell: renewal of existing contracts

Bombardier: full life of program

15

p g

~ 3,585$

Aerospace&DefenseSupplyChain

Value Added

MillProduct Assembly MillProductConversionForgingsExtrusionsCastings

Machining&DetailPart

Manufacturing

MajorAssembly,

Design&MajorSystemsIntegration

Assembly,MajorDetailPartMfg.&

MinorSystemsIntegration

Final System Integration

Tier 4:

RTI

ATI

Tier 3:

RTI

Synchronous Aerospace

Tier 2:

RTI

Ducommun

Tier 1:

RTI

FHI

OEM:

AirbusTimet

VSMPOBAOTIPCC

Howmet/AlcoaFirth Rixson

Synchronous AerospacePRV Aerospace

Dasco EngineeringRemmele Engineering

LMI AerospaceBarnes Aerospace

Magellan AerospaceHroux-Devek

KHIMHI

GoodrichSpirit AeroSystems

GKN AerospaceAlenia

BoeingLockheed

BombardierBell Helicopter

Firth RixsonPlymouth Tube

AleniaTriumph Group

16

Commodity

TitaniumAerostructure Applications

Fuselage ChordsFuselage ChordsFloor Beams &Seat Tracks

APUComponents

Door & Door FrameCrown Bulkhead Chord

Ribs, Spars, Chords

Fasteners

Front Spar Body Chord

Wing Box Attachments

Nacelle & Engine Mount

Thrust Reverser /Pylons

p y

17

Note: The above artists rendering is generic in nature and is not intended to accurately represent any specific aircraft or precise locations of parts within.The rendering is designed solely to provide an approximation of some parts which can be produced from titanium.

787Dreamliner Parts

18

SampleHotFormedandSPFParts

FingerSeals

DoorSurround

dSideStrutsErosionShields

19

SampleHotFormedandSPFParts(cont.)

BulkheadStrip

20

Contents





Financials

FocusedAcquisitionStrategy

Driveverticalintegration Expandproductandserviceofferings RTI Advanced Forming Seekrevenuesynergies Enhance technologicalcapabilities

Continued downstreampush

Remmele Engineering

Capabilities

Assembly

Continued downstreampush

Customers

AirbusIntegratedComponentSupplier

NewRevenueOpportunities

Hot forming

Kitting

Collaborative engineering

Boeing

LockheedMartin

EngineOEMs

SupplierModel

Opportunities

Precisionmachining

Tooldesign

Energycustomers

OthersValueaddCapabilities

LeverageCombinedCustomerBase&

Qualifications

22

AdvancedFormingBenefits

RTIisnowtheonlyindependenthotandsuperplasticformingcompanywithfacilitiesintheU.S.andEurope.

Enablesverticalintegrationandenablesdevelopmentandmanufacturingpartnershipswithcustomers

Addsapproximately$25millionofprofitablesales Expandsourhotformingfabricationcapabilitiesbeyonddefenseandintothecommercial

sector

FortifiesRTIsengineeringcapabilitiestoenablecustomerpartneringinengineering,bli d il ki i d assemblingdetailparts,kittingandprogrammanagement.

Firewall Parts Access Panels A320 Bulkhead Strips

23

Firewall Parts

Remmele EngineeringBenefits Enhancesleadershippositionasanintegrated,valueaddedtitaniummanufacturerintheA&Dsegment TransactionbuildsonRTIscorestrengthintitaniummanufacturingandisexpectedtoenhanceour

engineeringandprecisionmachiningcapabilitiesg g p g p

Combinationwilloffersuperiorsupportandcapabilities MedicalengineeringprocessesandexpertisecanbeusedtoenhancewhatRTIdoescurrentlyonthe

aerospaceside

Fulfillsthedemandforcustomerslookingtoidentifystrategicpartnersinthesupplychain Strongculturalalignment:Bothcompaniesshareacommitmenttoexcellentcustomerserviceandbest

inclassmanufacturing

Transactionaddsapproximately$125millionofprofitablesalesandisexpectedtobeimmediately Transactionaddsapproximately$125millionofprofitablesalesandisexpectedtobeimmediatelyaccretiveandwillleaveampleliquiditytopursuefurthergrowthopportunities

Ti Fan Case Ti Air Flow Sensor

24

PositionedforGrowthThroughouttheCycle

Representative Customers and Platforms

787 C-17 737

A320 A330 A340

JSF F/A-22

Howitzer Bradley Eurofighter

CRJ Learjet Challenger

Atlantis Mad Dog Deepwater

S-76 S-92 Blackhawk

Bigfoot Jack /

St. Malo

4 Series V-22

Osprey737 747-8 F-15 F/A-18

A340 A350XWB A380 A400

Eurofighter JSF

Challenger DeepwaterHorizon

Blackhawk Seahawk CH-53

p y

Tier 4

Mill product

Tier 3

Machining and detail

Tier 2

Assembly, major detail part

Tier 1

Major assembly, design, and major systems Mill product

conversion, forging, extrusions, and castings

Machining and detail part manufacturing

detail part manufacturing, and minor systems integration

major systems integration

25

Products and Capabilities

Contents





Financials

HistoricalSalesTrend

>

E i Shi ld

27

Erosion Shields

OrderBacklogHistory

28

MillProductShipments

Ti Fan Case Ti Air Flow Sensor

29

Ti Air Flow Sensor

SpongePercentagePriceChangeHistory

80%

66.7%

50%

60%

70%

20%

30%

40%

3.3% 1.3%9.5%

10%

0%

10%

20%

2007 2008 2009 2010 2011 2012P

Erosion Shields

16.9%6.4%

30%

20%

10% 2007 2008 2009 2010 2011 2012P

30

Erosion Shields

HistoricalEBITTrend

$141.2

$160

$87 4$100

$120

$140

$87.4

$50.0$60

$80

$100

($5 5)

$14.1

$28.5

$20

$40

Erosion Shields

($5.5)

($20)

$0

2007 2008 2009 2010 2011 2012P

31

Erosion Shields

Conclusion

PositionedinFrontofaMajorInflectionPointinGlobalAerospace

i h l i hDoor Surround

RTIisthePurestPlayintheAerospaceSector

FullyIntegrated,Downstream,AdvancedTitaniumStrategy

Over$3.5BillionofLTAsThrough2020

StrongBalanceSheet DesignedtobeOpportunistic

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Documents

RTI July2012 IRPresentation