Forging the Future of High Performance Metals the Future of High Performance Metals ... Frequent customer and end-user audits\牜ഀ屮Cyclicality\爀屮The roller coaster ride with

Forging the Future of High Forging the Future of High Performance MetalsPerformance Metals

7th International Special & Stainless Steel Summit10-12 November 2008

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In Continuous Operations in the Same Location for 95 Years –exceptional in North American steel industry

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•Nimble, quick decision making

•Eager to invest for growth

PRIVATELY OWNED PRIVATELY OWNED

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Headquarters

Processing Centers

Warehouses

Sales Agencies

GLOBAL REACH, GLOBAL VIEWGLOBAL REACH, GLOBAL VIEW

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Specializing in Specializing in

vacuum induction melted & vacuum induction melted &

vacuum arc vacuum arc remeltedremelted alloys alloys

for lifefor life--critical applicationscritical applications

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TRANSFORMATIONTRANSFORMATION

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SELLING GLOBALLYSELLING GLOBALLYFrom the manufacturing business in Latrobe, Pennsylvania

SOURCING GLOBALLY SOURCING GLOBALLY For the distribution business in North America

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CONSOLIDATED VIEW Markets served

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Leader in Remelted Specialty Steels & Alloys

Superior technology, process and metallurgical expertise

Established reputation for quality & customer service

Broad product offering – over 350 niche alloys

Extensive Quality Agreements

ISO 9001: 2000

AS 9100

NADCAP

Vendor Manufacturing Agreements with Agusta, Goodrich, Messier-Dowty

Critical Rotating Part Vendor Agreements with Bell, Boeing, GE, RR,

SNECMA, UT

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Adding Value throughAdding Value through

TECHNOLOGYTECHNOLOGYQUALITYQUALITYSERVICESERVICE

Investing in People

Investing in Technology

Investing in Modern Manufacturing

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NEW VACUUM MELTING CAPACITY COMING NEW VACUUM MELTING CAPACITY COMING ON STREAM F0URTH QUARTER 2008ON STREAM F0URTH QUARTER 2008

VIMMelt capacity will triple to 27,000 tonsTwo 30-ton vacuum induction melting furnaces

VARExpanding from 13 to 17 VARs

Finishing of VIM-VAR ProductsBar peeler capacity expansion

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January 2008

March 2008

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FIRST MELT FIRST MELT ---- September 2008September 2008Groundbreaking to first melt in 10 monthsGroundbreaking to first melt in 10 months

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SERVING NEW MARKETS IN 2008SERVING NEW MARKETS IN 2008

Opened Chinese sales office

Acquired metals distributor in energy market

Seeking opportunities in

Diversification and

Vertical integration

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DISTRIBUTIONDISTRIBUTION•Extensive North American Service Centers

•Products

•High speed & Tool Steels

•SBQ

•Stainless Steels

•Powder Metals

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DISTRIBUTION CAPABILITIESDISTRIBUTION CAPABILITIES

Milling, Grinding, Saw Cutting, CNC Machining, Bar Straightening and Peeling, Boring

Opportunities to add value to your products in plate, flat bar, rounds and sheet

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Industry leading expertise in processing titanium and super alloys

•Press•GFM•Bar, rod and wire rolling

CONVERSION & TOLL SERVICESCONVERSION & TOLL SERVICES

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Manufacturing

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NEW HORIZONS OR NEW HORIZONS OR GOING OFF THE CLIFF GOING OFF THE CLIFF ---- AGAIN?AGAIN?

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Revenue - Latrobe Specialty Steel

'85 '87 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09E

Reve

nue

($M

) General Recession

Asian Flu

Raw MaterialExplosion,

Strong Euro

Weak Euro

9/11

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AEROSPACE CHALLENGESAEROSPACE CHALLENGES

• Engineering-Intensive

• Product Liability Exposure

• Testing Requirements

• Cyclicality

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••NEW HORIZONSNEW HORIZONS

• New Product Strategies Power Generation Oil & Gas Titanium Internally Manufactured Externally Sourced

• Value Added Strategies Processing Capabilities High Technical Expertise Service Differentiation

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Global

Domestic

International

BroadRange

SingleProduct

Multi-Product

Industry Structure

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Global

Domestic

International

BroadRange

SingleProduct

Multi-Product

PRP/VDM PCC/SMC

Corus LatrobeLatrobe

RSM

Gloria

Crucible

Valbruna

Hitachi

ATI Carpenter

Boehler S&B,DEW,Finkl

A&D- Erasteel

Industry Structure

USAP

Daido

S 5 et al.

Ellwood

Haynes

RTI

Timet

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Threshold Players

Global MetalsPlayers

FocusedPlayers

Global

Domestic

International

BroadRange

SingleProduct

Multi-Product

Industry Structure

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““FORGING THE FUTURE FORGING THE FUTURE IN HIGH PERFORMANCE IN HIGH PERFORMANCE

MATERIALSMATERIALS””

www.latrobesteel.com