Preliminary Information for Kaiser in Web Design

1. Preliminary Information for Kaiser in Web Design An Executive Presentation to Kaiser Aluminum November 10, 2011

2. In the 2011 Aerospace and Distribution Survey, we have posed several questions that can assist Kaiser in its website and marketing design . . . • First, we asked survey respondents to rate the importance and supplier performance for two attributes:

3. The scale for both the importance and supplier performance ratings in all of the Kaiser surveys is always the same -- 1 to 6 . . .

4. Having product information available in hard copy form is important to Kaiser’s customers, while using social media as a tool for doing business is somewhat unimportant to somewhat important . . . • Importance rating means: • Product information = 4.1 • Social media = 2.5 • The importance ratings of these two arestatistically different • So, the importance of having product information in hard copy form is statistically higher than that of using social media as a tool for doing business Importance

5. Kaiser and other suppliers are viewed more favorably for product information than for social media capabilities . . . Importance Ratings Performance Ratings Note: * = Statistical difference in means. • Kaiser is outperforming Alcoa and All Other suppliers, and is equivalent to SAPA in providing product information in hard copy form • Kaiser and all the suppliers are performing equally in using social media as a tool for doing business, albeit at a lower level than in product information

6. To provide further clarity, we also asked a series of open-ended questions . . .

7. Regarding usage of the internet for informationabout aluminum products . . . • We asked a series of questions about whether Kaiser’s customers are routinely using the internet for: • Electronic order entry of aluminum products • To check real time inventory of aluminum products • To check the status of your orders for aluminum products • To obtain information about aluminum products and suppliers (such as product data, supplier information, etc.) • For other reasons

8. Recall that product literature in hard copy format is of important (with a 4.1 mean score) to Kaiser’s customers. Most of the customers routinely use the internet for a variety of activities . . . Do you routinely utilize the internet for the following activities? N=169 Percentage of total, %

9. The uses of the internet for other reasons are varied . . . • Other activities include: • Prospecting products and suppliers • Obtaining supplier marketing information • Obtaining quotes • Checking product availability • Obtaining technical information/data, product information on alloys, specifications, and product types • Obtaining invoices, packing lists, advanced shipping notices, BOLs, shipping manifests, packing lists, MTRs, etc. • For industry analysis and commodity trend data • Communicating with supplier’s sales representatives

10. Over 50% of Kaiser’s customers feel that order entry and checking real time inventory over the internet will increase in the coming year or two. However, almost as many customers feel that it will remain the same . . . • For electronic order entry of aluminum products: • To check real time inventory of aluminum products: N=169 N=169

11. Likewise, over 50% of Kaiser’s customers expect order status checks and obtaining information over the internet to increase in the coming year or two. But again, almost as many feel that these activities will remain the same . . . • To check the status of orders for aluminum products: • To obtain information about aluminum products and suppliers: N=169 N=169

12. Some suppliers are viewed as being more progressive in internet capabilities than others . . . Do you feel that there are aluminum suppliers who offer better internet capabilities than others? For those respondents that replied “Yes”, the leading suppliers are: • Alcoa • SAPA • Kaiser • Ta Chen • Universal Alloys N=169

13. Customers make the following observations about the leading suppliers with regard to internet capabilities. . . • Alcoa: • Information is easily accessible/user friendly, has a long internet history, information is available 24/7, has real time inventory information, and has good order information • SAPA: • Information is easily accessible/user friendly, website is comprehensive, website contains inventory information, and has good order information • Kaiser: • Information is easily available/user friendly and website has good product information • Ta Chen: • Information is easily accessible/user friendly, has real time inventory information, contains very good order information, and website includes pricing • Universal Alloys: • Information is easily accessible/user friendly, has superior extrusion product information, website includes pricing, and product drawings are available online

14. The majority of Kaiser’s customers do not believe that aluminum buyers and users are using social media outletsas a means of obtaining information . . . Do you believe that today’s aluminum buyers and users are increasingly using social media outlets as a means of obtaining information about aluminum products and suppliers? For those respondents that replied “No,” the main reasons are: • Many respondents simply do not use it • It is generally thought not to be needed, particularly if the supplier has a solid website and available sales personnel • Social media is not seen as the correct venue for business transactions and technical information • It is seen as a more personal venue, and not a professional one • Social media’s use may be influenced by a generational factor • Many companies block its use N=169

15. And yet, 28% of Kaiser’s customers do see social media as being increasingly used. They cite that . . . • Social media offers the opportunity to quickly have information at one’s fingertips • The marketplace simply appears to be moving in this direction • This may be a generational thing that is increasing with the younger population • Social media is happening in all areas, not just in the metals industry • It is seen as a good avenue for networking

16. Finally, customers have little opinions as to which suppliers are better at providing information via social media outlets than others . . . Are there aluminum suppliers that you feel are better at providing information via social media outlets than others? N=169