Introduction to Alcoa Corporation, Alcoa Fastening

Systems and update on fastener regulations

Presentation to Embraer May 12, 2004

Luke Haylock
Director of New Product Development

Alcoa Overview
Alcoa Today
Founded in 1888
127,000 employees
350 operating locations in 38 countries
Over $20 billion in annual revenues

Alcoas Vision
To be the best company in the world
Best Employer
Best Supplier
Best Neighbor
Best Investment

How we do business

Three Strategies one

underlying principle:
1. Diverse business platforms in
market and technology
leadership position
2. Operating excellence and
continuous elimination of
waste
3. People linchpin the system

New ideal

Make to use
Defect free
At lowest cost
Safely

Environmental, Health and Safety

Alcoa is one of the safest companies in the worldif not the safest

Safety is one way we show our employees how much we value them

45% of facilities worldwide have operated without a lost workday

injury since 2003

Alcoas Market Presence

$20.3 Billion in Revenues

Packaging
24.7%

Alumina & Aluminum

24.6%

Aero, Auto,
Commercial
Transportation
25.1%

Industrial Products,
IGT, Distribution,
Other
14.8%
Building &
Construction
10.8%

2002 Revenue by Market

Alcoas Product and Process Technology in Todays Aircraft

Alcoa Fastening Systems

Our History

2000 - Huck Fasteners and Howmet join Alcoa in the acquisition of

Cordant Technologies

2002 - Alcoa acquires Fairchild Fasteners from its former parent

company, (Fairchild Corporation), and develops a new Business Unit
called:
Alcoa
Huck
Fairchild

Alcoa Fastening Systems is an integration of (at least) 3 Companies, not just 2

Aerospace and Commercial Transportation Structure

Market Sector Change

Today
Before 2000
$130

$180

$180

Extrusions
$130

Forgings

$565

Sheet &
Plate

$1,000
$565

Howmet
Fasteners
Sheet / Plate

$800

Extrusions
Forgings

Alcoa Fastening Systems At a Glance

Manufacturing Facilities
26 locations
7 countries

Revenue (2002 combined)

Approx. $800 Million US

Primary Products
Fastening Systems,
Machined Components
Installation Tool Systems
Key Markets
Aerospace and
Commercial

Employees
5,500 worldwide

Headquarters
Torrance, California USA

AFS Worldwide Current

Waco

Kingston

Stoughton

Bardon

COI

Us

Cergy/Us

Hildesheim

Tucson

Kelkheim

Telford
Simi

Melbourne

Aichach
SaintSaint-Cosme
Nemesvamos
Montbrison

Marignier

Fullerton

Torrance

Vougy
Toulouse
Carson

Oakleigh

AFS Business Objectives

AFS Destination Statement:

To be recognized as the global industry leader in environment, health

and safety, on-time delivery, customer service and technical support,
cost-effective supply of fasteners, components, fastening systems, and
logistic solutions with zero defects; to lead the industry in innovation in
Design and Development, and product breadth.
Specifically:
Zero accidents
100% environmental compliance
Best-in-class fastening solutions provider
100% On-time Delivery
Zero Defects
Best lead-times

Aerospace Product Families

Blind Fasteners (Bolts & Rivets)

Bolts & Recess Fasteners
Fluid Products
Inserts & Studs
Latching Systems & Related Mechanisms
Lockbolts (Pins & Collars)
Nuts
Panel Fasteners
Pin Systems (Pins, Collars & Nuts)
Assembly Tool Systems

Brand Names

Camloc
Delron
Eagle
Huck
Kaynar
K-Fast
Mairoll
Mecaero

Microdot
RAM
Rosan
Screwcorp
Simmonds
SNEP
Tridair
Voi-Shan

+ Assembly Tool Systems (ATS)

Logistics Systems

Simple Kits

Repair Containers

VendFast
Available in various Configurations

Trolley Cart & Tray System

Dassault Fixture Kits

Quality Assurance Excellence

Worldwide Certifications
ISO-9000-2000

Quality Management Systems

EN-9100-A

Aerospace Quality Design, Development, Production, Installation & Servicing

AS-9100-A

Aerospace Quality Design, Development, Production, Installation & Servicing

TS-16949

Quality Systems - Automotive Supplies

QS-9000

Quality Management System for Automotive Suppliers

NADCAP

National Aerospace & Defense Contractors Accreditation Program

FAR-21-303

Federal Aviation Administration

FAA-ODARS

Certification North American Operations & Logistics Centers

JAR 21.303

Joint Aviation Authority

Operating worldwide under a single Global Quality Assurance System

Customer Support Strategy

Worldwide Manufacturing
Worldwide Customer Support
Worldwide Technical Support
Worldwide New Product Development
Worldwide Distribution / Logistics

New Product Development Strategy

We develop new products in response to customers needs
Search for opportunities to reduce weight
Increase assembly efficiency
Facilitate development of efficient airframe structures

Our main Aerospace NPD Center is located in Carson, California

Second NPD center will be located in Toulouse, France
Focus on projects with significant long term growth potential
Close working relationship with Alcoa Technical Center
Regular Technical Symposiums with Customers

NPD Organization

Olivier Jarrault
President AFS

Martin Ryan
Sr. VP Technology
AFS Worldwide

Don Busby
President AFS
Commercial

Claude Lurati
President AFS
Aerospace Europe

Luke Haylock
NPD Director
AFS Aero Worldwide

Louis Valis
Engineering Manager
Waco

Hai-Tao Wang
Manager NPD Center
Gerry Hufnagl
Sr. Principal
Engineer

Oviedo Arcienega
R& D machinist

Van Dang
R&D Machinist

Terry Vance
R&D machinist

Frank Wlater
R&D Technician

Ernie Monserratt
R&D Test Engineer

Tom Harbin
Sr. Engineer

Jim Ellwood
R&D Test
Technician

Liang Zeng
Sr. Engineer

Frank Cosenza
Consultant

Al Yamamoto
Consultant
M. Carmen
Amezquita
R&D Test
technician
Open
Sr. Engineer

Genevieve Lacombe
Manager NPD
European Operations

Andreas Zenke
Engineering
Manager
Hildesheim Ops.

Dieter Juling
Engineering
Manager
Kelkheim Ops.

Christian Pouplier
Engineering
Manager
St. CosmeOps.

NPD Strategy

Focus on our core competencies of specialty mechanical

fastening systems.

All projects must have high customer value

Technical capability,
Low life cycle cost

Design for product and process safety (minimize liability)

Promote proprietary products

Maintain balanced portfolio approach

Current areas of focus

High
Highperformance
performancefasteners
fasteners

Assembly
Assemblyautomation
automation

Fastener
Fastenerintensive
intensive
subassemblies
subassemblies

Overview of FAA Fastener Regulations

Regulatory Oversight Standard Parts

Standard parts
A standard part conforms to an established industry or U.S.
government published specification.
The FAA does not certificate manufacturers of standard parts.
However, when a type design calls for the installation of a standard
part, the FAA may conduct surveillance of the manufacturer and/or
supplier of that part.

Regulatory Oversight non-Standard Parts

Many specialized fasteners are manufactured to specifications that

are known only to the manufacturer. Obtaining a Parts Manufacturing
Approval for these specialized groups of fasteners, is not practical.
To provide approvals under which these groups of parts could be
produced, the FAA issued Technical Standard Order (TSO): TSO-C148,
Aircraft Fasteners;
TSOs are not issued for standard parts nor for parts used in critical
applications. In contrast to "standard part" nuts, bolts, etc., these
fasteners, bearings, and seals must meet the TSO minimum performance,
marking and installation approval requirements.
Eleven companies currently hold authorization for TSO-C148

Procurement Considerations

When purchasing and installing standard parts, consider the following:

A Certificate of Conformity (C of C) should be provided by the producer of
a standard part.
A standard part should carry a mark indicating the part has been produced
in accordance with the specification requirements.
A part is no longer considered "standard" if it is used in a critical
application that imposes qualification or quality control requirements
beyond the standard specification.
To facilitate traceability, commingling like fasteners from different lots is
not recommended.