Amg barclays clean energy conference september 2010 final

Barclays Global Renewables and
Clean Technology Conference
2-3 September 2010

AMG Advanced Metallurgical Group N.V.

Disclaimer

THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION BY AMG
ADVANCED METALLURGICAL GROUP N.V. (THE “COMPANY”) AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER
DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH
THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS.

This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire
securities of the Company or any of its subsidiaries nor should it or any part of it, nor the fact of its distribution, form the basis of, or be relied on in connection
with, any contract or commitment whatsoever.

This presentation has been prepared by, and is the sole responsibility of, the Company. This document, any presentation made in conjunction herewith and any
accompanying materials are for information only and are not a prospectus, offering circular or admission document. This presentation does not form a part of,
and should not be construed as, an offer, invitation or solicitation to subscribe for or purchase, or dispose of any of the securities of the companies mentioned
in this presentation. These materials do not constitute an offer of securities for sale in the United States or an invitation or an offer to the public or form of
application to subscribe for securities. Neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any
offer or commitment whatsoever. The information contained in this presentation has not been independently verified. No representation or warranty, express
or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information or the opinions contained herein. The
Company and its advisors are under no obligation to update or keep current the information contained in this presentation. To the extent allowed by law, none
of the Company or its affiliates, advisors or representatives accept any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any
use of this presentation or its contents or otherwise arising in connection with the presentation.

Certain statements in this presentation constitute forward-looking statements, including statements regarding the Company's financial position, business strategy,
plans and objectives of management for future operations. These statements, which contain the words "believe,” “expect,” “anticipate,” “intends,” “estimate,”
“forecast,” “project,” “will,” “may,” “should” and similar expressions, reflect the beliefs and expectations of the management board of directors of the
Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors,
the achievement of the anticipated levels of profitability, growth, cost and synergy of the Company’s recent acquisitions, the timely development and acceptance
of new products, the impact of competitive pricing, the ability to obtain necessary regulatory approvals, and the impact of general business and global economic
conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein.

Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any
of the forward-looking statements contained in this presentation.

The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

This document has not been approved by any competent regulatory or supervisory authority.

AMG ADVANCED METALLURGICAL GROUP N.V. 2

Introduction

 Listed on NYSE-Euronext Amsterdam (Euronext: AMG)
 Products
 High purity metals and complex metal products
 Vacuum furnaces used to produce high purity metals
 2010 H1 2010 June 30
 Revenues - $479.3 million
 EBITDA - $45.9 million
 Net debt - $119.7 million
 Capital Investment - $11.9 million
 Global presence
 Europe, North America, South America and Asia
 2,500 employees
Sustainable Metals Technology

Macroeconomic Trends and Markets

■ AMG participates in the macro economic trend of:
■ Growing demand for natural resources in context of the need
for sustainable environmental demands including:
■ CO2 reduction
■ Emerging market infrastructure
■ Aerospace and light weight materials
■ Specialty metals and chemicals


Products & End Markets

Advanced Materials Vacuum Furnaces
 High-value alloys  Capital equipment for high purity
 Essential raw materials materials

Specialty Metals &
Energy Aerospace Infrastructure Chemicals


End Markets


Specialty Metals &
Aerospace Infrastructure Energy
Chemicals

Titanium Alloys Structural Steel Solar Vacuum Furnaces Silicones

Superalloys Specialty Steel Superalloys Paints & Pigments

Turbine Coatings Building Materials Solar - Silicon Metal Glass, Tools & Optics

Vacuum Furnaces Nuclear Fuel Vaccum Furnaces Capacitors

Energy Storage Technologies


End Products
Aerospace Infrastructure – Recycling
Ti alloys
(includes VAl) Superalloys

High purity stainless steel

Typical aerospace jet engine

Energy – Solar & Nuclear Specialty Metals & Chemicals

Stackable
Graphite
Blocks

Tantalum based capacitor Paints and pigments
Vacuum furnaces for solar ingot
production

Markets & Products

H1 2010 Revenue by End H1 2010 Revenue by
Market Product
Tantalum &
Niobium Graphite 4%
4%

Chromium
Metal 8%
Aerospace 27%
Vacuum Furnaces
Specialty Metals
26%
& Chemicals 35%
Antimony 10%

FeV & FeNiMo Al Master Alloys
8% 15%
Energy - Solar &
Nuclear 23%

Infrastructure Si Metal 10%
15% Ti Master Alloys
and Coatings
15%


Clean Technology Innovation


Energy – Solar Technologies

Energy – Polycrystalline Solar Energy – Thin Film Solar
SCU
600plus
furnace

hot zone
top heater

crucible
& support
system

bottom
heater
heat gate TCO
cooling ZnO:Al (AMG)
plate
run out n-CdS
protection
p-CuInS2 + Ga + Se2 (AMG)

 Increasing the efficiency and cost Metal contact (AMG)

competitiveness of solar energy Glass

 Over $250 million of solar revenue
in 2009  Coatings improve thin film sunlight
 New innovations driving revenues to energy conversion

Energy and Aerospace Technologies

Energy – Lithium for batteries Aerospace – Titanium aluminides
Ti alloys
(includes VAl) Superalloys

Concentration
Mibra Mine
and Separation

Lithium
Minerals
Tantalum Oxide
Ta2O5
Chemical Plant Niobium Oxide
Nb2O5

 Sustainable mining in Brazil  Low weight materials improve fuel
 Largest producer of tantalum efficiency and reduced CO2 emissions
 AMG is now able to extract lithium  Over 80% market share
minerals from mine by products  Market expected to grow to over $50
 Lithium is used in energy saving million in the next 5 years
applications: lithium ion batteries


Energy Technologies

Energy – Silicon metal for solar Energy – graphite for insulation

 Through this equity ownership in TIM  Natural graphite used in new Neopor®
and GK, AMG has 54,000 MT of insulation
silicon metal capacity (1)  Graphite helps increase insulation
 Si metal spot prices over $3,300/MT; performance by over 20%
historic highs due to demand shortage  GK is the largest producer of high
 UMG-Si development continues purity natural graphite in Europe
(1) Pro-forma for pending TIM- Dow transaction

Recycling and Nuclear Energy Technologies

Infrastructure – Recycling Energy – nuclear fuels
Melting and
Spent
Pre-reduction
Catalyst FeNiMoly
Oil Roasted ® Alloy
Sands Catalyst
Roas
ter
Oil Ferovan®
Power Residue Reduction FeV
Plants Alloy
Revan™
Slag

 Largest recycler of spent catalysts in  AMG designs and manufactures
North America sintering furnaces for the production of
 Recycling ferro-vanadium, nickel and UO2 fuel pellets
molybdenum metals  Developing technology for the safe
 Revenue from recycling fees and sale storage of high level nuclear waste from
of end products light water nuclear reactors


Financial Overview


Financial Highlights – H1 2010

■ Revenue: $479.3 million
■ EBITDA: $45.9 million, 9.6% EBITDA margin
■ Increases in Advanced Materials’ sales prices
■ Advanced Materials’ profitability improved substantially in Q2
■ Engineering Systems order intake remained low

■ EPS of $0.31 (1)

■ Capital investment of $11.9 million in Q2 2010
■ Cash: $84.6 million and debt of $204.3 million
■ Net debt of $119.7 million

(1) Excluding AMG’s 42.5% ownership in Timminco Ltd.


Financial Highlights
2010 H1 Revenues 2010 H1 EBITDA
$479.3 $45.9
$3.2
$62.0

$22.7
$124.8
$20.0
$292.5

Advanced Materials Engineering Systems GK Advanced Materials Engineering Systems GK
Revenue by Geography
North
America
21%

Asia
18%
Europe
56%
South
America
4%
ROW
1% AMG ADVANCED METALLURGICAL GROUP N.V. 16

Financial Highlights
Revenue Highlights
(in millions)

 Q2 Revenue: $243.5 million
 Up 13% from Q2 2009

 Q2 EBITDA: $23.9 million
$243.5
$231.4 $235.8  Up 8% from Q2 2009
$214.9
$205.4
 Balance sheet highlights at June 30, 2010
 Cash: $84.6 million
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10  Debt: $204.3 million
 Net debt: $119.7 million
EBITDA
 Total liquidity: $163.6 million
(in millions)

$22.2 $22.0 $23.9
$18.6
$12.4

- -
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

Advanced Materials - Market, Products and Customers
Aerospace Infrastructure - FeV Specialty Metals

Products  Specialty alloys for titanium  Ferro-vanadium  Chromium Metals

 Coatings for wear  Ferro-nickel molybdenum  Tantalum
resistance
 Antimony

 Aluminium master alloys

Competitors  Reading Alloys Inc.  Highveld Steel & Vanadium  KBM Affilips B.V.

 Strategic Minerals  Gulf Chemical &  KB Alloys, Inc.
Corporation Metallurgical Corporation
 Delachaux S.A.
 Strategic Minerals
 Campine S.A.
Corporation
 Chemtura Corporation
 Xstrata plc

 Chengde Vanadium &
Titanium Stock Co. Ltd.
Sample Customers


Advanced Materials

Financial Summary Highlights
( in millions)
Revenue EBITDA ■ Infrastructure - ferrovanadium
$152.0 ■ Reference prices increased 83% v. Q2
$140.5 2009
$124.3 ■ Volumes declined 28% v. Q2 2009
$110.1
■ Aerospace – master alloys prices improved 71%
v. Q2 2009
$95.9
■ CAPEX
■ Expansion of ferrovanadium operations
$8.5
$14.2 in the United States
-$0.5 $5.0 $5.3
■ Expansion of the tantalum and lithium
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
mine in Brazil
CAPEX

$5.0
$4.2
$3.3
$2.1 $1.9
- - -
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10


Engineering Systems - Market, Products and Customers
Energy - Solar Aerospace Energy - Nuclear
 Solar silicon melting and  Vacuum Melting and Re-  Vacuum Sintering
Products
crystallisation systems melting Systems Systems
(DSS furnaces)
 Precision Casting and
Coating Systems
 Heat Treatment with high
pressure gas quenching
Notable Successes  2001 – Secured furnace  2010 – Market Share leader  July 2008 – Secured first
exclusivity with REC in Ti remelting in China, the nuclear engineering contract
fastest growing Ti market with DOE, through Shaw-
 2005 – Introduced single
Areva
crucible furnaces  2010 – Leading market share
in turbine blade coating  Two strategic acquisitions
 2009 – >$172 mm in
completed to expand product
revenue, 2nd largest
portfolio
market participant

Sample Customers


Engineering Systems

( in millions)

Revenue EBITDA
 Revenue: $59.5 million, 35% decrease quarter
$91.2 over quarter
 Solar silicon DSS furnace revenues

$73.8
decreased 67% in Q2 2010 v. Q2 2009
$65.3
$61.6  EBITDA: $8.0 million
$59.5
 Backlog declined from $162 million at
December 31 2009 to $121 million at June
30, 2010
$22.5  Order backlog is now primarily
$11.0 $5.9 $12.1 $8.0
- - - -
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
comprised of furnaces for aerospace
end market
 2010 EBITDA is expected to be lower than
CAPEX
2009 due to the decline in backlog

$3.0
$1.7
$1.2 $1.3
$0.8
- - - - -
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10


Graphit Kropfmühl

( in millions)
Revenue EBITDA  Revenue: $32.1 million; 17% increase over
$33.7
$33.3
Q2 2009 due to increases in natural graphite
$32.1
$29.9 prices and volumes
$27.3
 EBITDA: $1.7 million
 Consistent with Q2 2009 due to cost
containment measures in natural
graphite and increased revenue
 CAPEX only for graphite milling expansion
$1.7
-
$2.6
- $1.2
- $1.5
- $1.7
-
 Natural graphite being used in energy
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 saving insulation applications
 Silicon metal seeing stronger demand from
CAPEX solar and specialty chemical markets

$1.4
$1.3
$1.0
$0.8
$0.4
- - - - -
Q2 09 Q3 09 Q4 09 Q1 10 Q2 10


Capital Base

Cash and Debt Highlights – June 30, 2010
( in millions)

■ Cash: $84.6 million
Cash Debt
■ Total debt: $204.3 million
$202.3 $203.8 $203.0 $204.3
$193.9 ■ Net debt: $119.7 million

■ Revolver availability: $79.0 million

■ Total liquidity $163.6 million
$124.4
$108.8 $117.0

$98.9
$84.6

Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

Note: Cash includes short term investments


Outlook
■ Advanced Materials
■ Demand from the Aerospace and Energy industries continues to improve from 2009,
however prices and volumes for infrastructure have reached a plateau;
■ 2010 revenues and EBITDA will improve significantly
■ Engineering Systems
■ Backlog is bottoming; renewed interest in solar silicon furnaces
■ Lower order backlog will result in lower 2010 revenues and EBITDA
■ Graphit Kropfmühl
■ Natural graphite demand and pricing is improving
■ Timminco
■ AMG owns 42.5% of Timminco
■ Timminco signed an agreement to sell 49% of its silicon metal operations for $39.7
million; up to $10 million more based upon meeting performance metrics


Amg barclays clean energy conference september 2010 final

Recommandé

Recommandé

Contenu connexe

Similaire à Amg barclays clean energy conference september 2010 final

Similaire à Amg barclays clean energy conference september 2010 final (20)

Plus de AMG

Plus de AMG (16)

Amg barclays clean energy conference september 2010 final