Alcoa Corporation · NYSE:AA

Alcoa — Merger or Acquisition (June 2014)

15 slides from Alcoa's merger presentation, Jun 26, 2014

  1. Slide 1: Accelerating Alcoa's Transformation: Announcing Firth Rixson Acquisition

    Accelerating Alcoa’s Transformation Announcing Firth Rixson Acquisition June 26th, 2014 1

  2. Slide 2: Cautionary Statement

    Cautionary Statement Forward-Looking Statements Certain statements in this presentation, including statements regarding the proposed acquisition by Alcoa Inc. (“Alcoa”) of the Firth Rixson business, the proposed financing of the transaction and potential earn-out payments, Alcoa’s portfolio transfor

  3. Slide 3: Firth Rixson Acquisition strengthens Alcoa's Aerospace offering

    Firth Rixson Acquisition strengthens Alcoa’s Aerospace offering Strategic rationale of transaction  20% Increase in overall Aerospace Revenue Expanding  Grows Aero Exposure to nearly 35% of Value-Add Revenue Value-Add Portfolio  Expands Alcoa’s Leadership in Jet Engine components Capitalizing on

  4. Slide 4: Firth Rixson offers strong Aerospace component portfolio

    Firth Rixson offers strong Aerospace component portfolio ~75% of Firth Rixson revenue by product group revenue1 from 2013 Firth Rixson Revenue: $1.0B aerospace Global Leader in Jet Engine Rings Full Range of Forged Complex Shapes Turbine cases Turbine rear frame Combustor cases Compressor cases Turb

  5. Slide 5: Financially compelling transaction

    Financially compelling transaction Outline of the transaction Transaction Financing $2,850M Purchase Price; Bridge facility 100% committed at signing $2,350M cash, $500M common stock Financed through a prudent combination of Up to $150M Earn-Out, through 2020 Debt and Equity-content securities Targe

  6. Slide 6: Alcoa is well positioned on Jet Engines

    Alcoa is well positioned on Jet Engines Alcoa content on sample engine AFE Structural APP HP APP Turbine Guide Vanes Compressor Stators AFS Fluid Fittings Rear Frame AFS 12-Point and Spline nuts and bolts Alcoa AFE Fan Blades Products AFS Vespel® Inserts APP Shaft Bearing Housing APP Exhaust Case AP

  7. Slide 7: Firth Rixson expands Alcoa's Jet Engine Suite

    Firth Rixson expands Alcoa’s Jet Engine Suite Alcoa and Firth Rixson content on sample engine AFE Structural Labyrinth Ring Seals APP HP Compressor Shaft APP Turbine Guide Vanes Compressor Stators AFS Fluid Fittings Rear Frame Low Pressure Turbine Case AFS 12-Point and (LPT) Spline nuts and bolts Tu

  8. Slide 8: Better covering every key jet engine platform - doubles revenue

    Better covering every key jet engine platform - doubles revenue Firth Rixson and Alcoa Indexed Revenue by key engine type Engine Type (Aircraft) Pro forma Revenue / Engine Indexed to CFM56 Alcoa RRTrent 900 (A380) Firth Rixson Twin Aisle Airbus RRTrent XWB (A350) GP7000 (A380) RRTrent 1000 (B787) Fi

  9. Slide 9: Grows Aerospace Revenue 20% to $4.8B in 2013

    Grows Aerospace Revenue 20% to $4.8B in 2013 2013 Pro Forma Aerospace Revenue: $4.8B Specialized Rings and Forgings High Performance Engine Castings  Global leader in seamless rings  Global leader in jet engine airfoils  Full range of global engine forgings  100% nickel super alloys  ~60% nicke

  10. Slide 10: Vibrant growth in commercial jet and engine market

    Vibrant growth in commercial jet and engine market Strong growth in jet deliveries Elevates jet engine growth Commercial Jet Deliveries1 (in $B) Commercial Jet Engine Deliveries1 (in $B) 7.1% CAGR 150 7.3% CAGR 51 143 48 124 42 99 33 9 year production order book ~23,000 commercial jet at 2013 delive

  11. Slide 11: Firth Rixson to grow 2x market; ~70% secured by contracts

    Firth Rixson to grow 2x market; ~70% secured by contracts Projected Firth Rixson revenue growth ($B) $2.0 +12.2% CAGR $1.6 $1B growth: $1.0 ~70% secured Forgings by long term agreements Rings Metals 2013 2016 2019 11

  12. Slide 12: Leading Edge Technology drives Forging Growth

    Leading Edge Technology drives Forging Growth Expansion into aero jet engine forgings Critical component: Closed-die large aero disks  More than 2x revenue growth expected 2014 to 2019  Critical rotating disks from Superalloys and Titanium alloys  One of the largest (33kMT) and most advanced clos

  13. Slide 13: Alcoa Advantage will drive Operational Excellence and Enhance Value

    Alcoa Advantage will drive Operational Excellence and Enhance Value Synergies and Growth Levers Levers identified to capture $100M Synergies Levers in place to drive profitable growth  Utilize forging modeling techniques to Technology reduce input material up to 20%; improves Process machining cost

  14. Slide 14: Acquisition significantly accelerates Alcoa's Transformation

    Acquisition significantly accelerates Alcoa’s Transformation Advances portfolio shift to Value-Add Captures Growth in strong Commercial Jet and Engine market Alcoa Advantage to take strong business to new heights 14

  15. Slide 15: Advancing each generation. ALCOA

    Advancing each generation. ALCOA

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