November 2014 Investor Relations Presentation

1. November 2014
Investor Presentation
© 2014 DMC. All rights reserved. INGENUITY IN ACTION.

2. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
2014 Investor Presentation  DMCGlobal.com
2

3. ! DMCGlobal.com
CHAPTER 1
DMC Overview
2014 Investor Presentation 3

4. ! DMCGlobal.com
OUR STORY
DMC is a growth company focused on
building a family of technical product
and process businesses for the global
energy, industrial and infrastructure
markets. We serve a network of industrial
customers through a family of technical
businesses that currently is comprised of
NobelClad and DynaEnergetics. The DMC
family consists of a global network of
production facilities and sales and
distribution centers. Our global footprint
is critical to successfully meeting the
demands of our customer base.
2014 Investor Presentation 4

5. BOOM 1-Year Price & Volume
! DMCGlobal.com
SELECT DATA
Symbol (Nasdaq GS):
52-week price range:
Average daily volume:
Market capitalization:
Shares outstanding:
Approximate float:
Fiscal year:
Quarterly dividend:
Revenue (ttm):
Adjusted EBITDA (ttm)
BOOM
$15.91 - $24.00
48,000
$241 Million
13.9 Million
13.0 Million
December 31
$0.04
$199.9 Million
$28.4 Million
2014 Investor Presentation 5

6. * Reflects approximately $5.6 million in non-recurring expenses
** Reflects approximately $1.2 million in tax benefits recognized during the first quarter
 DMCGlobal.com
FINANCIAL HIGHLIGHTS
2014 Investor Presentation
6
Year-end numbers $ in millions
9-month numbers
**
*

7. SECTORS Industrial and Infrastructure Energy
Products and technical processes that support
industrial and infrastructure markets.
Consumables, products and systems that
support the global oil and gas industry.
NobelClad DynaEnergetics
Explosive Metalworking Perforating Components & Systems
• Perforating Guns
• Explosive Shaped Charges
• Detonating Cords
• Detonators
• Explosive Control Systems
 DMCGlobal.com
DMC’S SECTOR FOCUS
DESCRIPTION
BUSINESSES
SOLUTIONS
FOCUS
PRODUCTS/
SERVICES
Synthetic Diamond
Manufacturing
• Plates
• Heads
• Rolled & Tacked Cylinders
• Tubesheets
• Transition Joints
• Cylindricals
• Fabricated Components
• Industrial Diamonds
2014 Investor Presentation 7

8. $83.7
(41%)
 DMCGlobal.com
$118.4
$115.3
57%)
2013 REVENUE BY BUSINESS
NobelClad
DynaEnergetics
$ in millions
(59%)
2014 Investor Presentation 8

9. ! DMCGlobal.com
CHAPTER 2
Opportunity
2014 Investor Presentation 9

10.  DMCGlobal.com
BUSINESS OPPORTUNITY
10
DMC companies serve the world’s multi-trillion dollar industrial, infrastructure and
energy industries, which are addressing major capital investments in both
established and emerging markets. In North America, a resurgence in oil and gas
production and a renewed focus on chemical processing capacity are creating
considerable opportunities for each of DMC’s businesses. In the world’s emerging
markets, demand for energy and modern industrial processing infrastructure is also
leading to compelling growth prospects for DMC and its family of specialized product
and process businesses.
2014 Investor Presentation

11. ! DMCGlobal.com
CHAPTER 3
Leadership Team
2014 Investor Presentation 11

12. President & CEO, DMC MICHAEL KUTA CFO, DMC
Sr. VP, DMC
• Joined DMC as Chief Financial Officer in March 2014
• Former Corporate Controller at Berkshire
Hathaway’s Lubrizol Corporation, a global,
$6 billion specialty chemicals company
• Was responsible for building and managing financial
operations for Lubrizol’s disbursed global
operations, including accounting, consolidation and
financial reporting functions, and oversight of
internal controls
• Former financial positions of increasing
responsibility at Lincoln Electric and Eaton
Corporation
 DMCGlobal.com
EXECUTIVE LEADERSHIP
KEVIN LONGE
• Named President, CEO and Director in March 2013
• Joined DMC as Chief Operating Officer in July 2012
• Former VP and and GM of Sonoco's $600 million
Protective Packaging division
• Former President of Sonoco's ThermoSafe Brands
• Oversaw global sales, marketing, engineering and
R&D for the life sciences, medical, food and
industrial durables markets
• Oversaw eight manufacturing centers in the U.S.,
Europe and Asia
• Former President of three operating divisions at
Lydall, Inc. (NYSE-LDL)
RICHARD SANTA
• Named Senior Vice President, Business
Development in March 2014
• Served as DMC’s Sr. VP, Chief Financial Officer
and Secretary from 2008 to 2014
• Joined DMC as Vice President, Chief Financial
Officer and Secretary in October 1996
• Responsible for integration of seven
acquisitions while at DMC
• Former Chief Financial Officer of Scott USA, a
sports equipment manufacturer and distributor
• Former senior manager with Price Waterhouse
2014 Investor Presentation 12

13. IAN GRIEVES
President, DynaEnergetics
• Joined DynaEnergetics in 2013
• 20 years of diverse operational, engineering,
finance and management experience with
international industrial businesses
• Previously Senior Vice President of Lydall, Inc.s’
Performance Materials division
 DMCGlobal.com
LEADERSHIP TEAM
JEFF NICOL
President, NobelClad
• Became head of NobelClad’s newly unified
global operations in 2012
• Previously VP and General Manager of DMC Clad
Metal, North America
• Joined DMC in 2008 as VP of Sales and
Marketing
• Spent 21 years with Alcoa, where he ascended to
chief metallurgist and global marketing director
BIN ZHANG
Managing Director, China, DMC
• Responsible for Chinese business development
and market positioning for NobelClad,
DynaEnergetics and AMK Technical Services
• Native of Beijing with 20 years of senior level
business experience
• Established an Asia Pacific sales and marketing
presence for a Sheldahl, Inc., a specialized
manufacturer based in Minnesota
2014 Investor Presentation 13

14. ! DMCGlobal.com
CHAPTER 4
Defining Characteristics
2014 Investor Presentation 14

15. ! DMCGlobal.com
OUR CULTURE
DMC builds global companies by
developing people and organizations. We
institutionalize entrepreneurship and
celebrate technical ingenuity. Our growth
is fueled by energized, relevant and
nimbly executed solutions that make a
real difference to our customers. We offer
a global manufacturing network with
intimate localized service, so customers
know they can rely on DMC companies
when the stakes are high. DMC’s
empowered and responsive management
strategies are aimed at serving the
world’s growth markets, giving investors
high returns throughout varying
economic cycles.
2014 Investor Presentation 15

16. Technical expertise, ingenuity and proficiency
in our respective industries.
A culture of critical and creative thinking
that allows us to innovate new solutions for
our clients.
Empowerment to meet market demands through
decisions made at the local level.
A passion for the processes that drive efficiency,
dependability and ultimate value
for our clients.
 DMCGlobal.com
DMC TRAITS
The DMC family of brands
share many traits that
are critical to our growth
and success.
2014 Investor Presentation 16

17. ! DMCGlobal.com
CHAPTER 5
Solutions
2014 Investor Presentation 17

18. REPRESENTATIVE: NAME & POSITION HERE
 DMCGlobal.com
CHAPTER & PAGE TITLE HERE
2014 Investor Presentation 18

19.  DMCGlobal.com
DYNAENERGETICS OVERVIEW
19
A top-tier provider of
compatibility tested
perforating systems.
Acquired in 2007 as new platform business
for DMC.
Unmatched global reach serving oil and gas
service providers, with approximately 7% global
market share.
Reputation for product safety, technical innovation
and systems reliability under extreme
environmental conditions.
50% of product sales from well re-perforations
and work-overs.
Perforating and well completion technologies for
improved productivity and lower operating cost.
2014 Investor Presentation

20. DYNAENERGETICS PERFORMANCE
Year-end numbers $ in millions
9-month numbers
2014 Investor Presentation  DMCGlobal.com 20

21. DYNAENERGETICS SALES BY GEOGRAPHY
2013 Sales: $83.7 Million
United States / 42%
Canada / 14%
Russia / 7%
Iraq / 5%
India / 5%
United Kingdom / 4%
Kazakhstan / 3%
Rest of World / 20%
2014 Investor Presentation ! DMCGlobal.com 21

22.  DMCGlobal.com
DYNAENERGETICS GROWTH MILESTONES
2007 – Company acquired DynaEnergetics, a new global platform business
2009 – Acquired LRI Oil Tools (Canada)
2010 – Acquired outstanding interests in two Russian oilfield product joint ventures
– Acquired Austin Explosives (Texas)
2012 – Acquired TRX Industries (Texas)
2013 – Opened distribution centers in Bogota, Columbia and West Texas
– Opening new shaped charge manufacturing plant for Americas (Texas)
2014 – Opened distribution centers in Western Pennsylvania and Bonnyville, Alberta
– Completing new gun and shaped charge manufacturing plant in Russia (Siberia)
2014 Investor Presentation 22

23.  DMCGlobal.com
PERFORATING BASICS
1. Once a wellbore is drilled and
cement and steel casing are in
place, a perforating gun
is deployed into the well.
2. The perforating gun is
fired, sending plasma jets
through the casing and into the
surrounding formation creating
“perforation tunnels”.
3. Oil or gas flows through the
perforation tunnels and
into the well.
2014 Investor Presentation 23

24.  DMCGlobal.com
DYNAENERGETICS COMPETITIVE ADVANTAGE
• Manufacturing expertise and
technical proficiency using
industrial explosives
• Robust product portfolio
• Industry leading safe and
selective detonating technology
• Global distribution expertise
• Strong industry relationships
• Advanced Section IV
Testing Facility simulates most
challenging well environments
2014 Investor Presentation 24

25. 01 02 03
DynaStageTM Gun System
•! Pre-assembled, customizable gun system
•! No wiring connections… reduces set up time
to seconds
•! Removes the potential for electrical
connection errors
•! Eliminates gun loading steps
•! Fully disposable and maintenance free
10/30/14 ! DMCGlobal.com 25
DynaSelect Detonators
•! Integrated RF-safe & selective
technologies
•! Enables concurrent perforating and
fracturing
•! Reduces the risk of accidents
•! Time and cost savings from sequential gun
initiation
•! Improved set-up times and reliability from
40% fewer electrical wiring connections
Booster Transfer Module (BTM)
•! Can only be initiated by a ballistic event …
will not fire due to hydrostatic or wellbore
pressure
•! No moving parts
•! Pressure tight after initiation to 14,000 PSI
•! More cost effective to purchase and re-dress
•! Simple, fast assembly and small footprint
DYNAENERGETICS PRODUCT INNOVATIONS
2014 Investor Presentation

26. Top Fire DynaSelect
DynaStage Gun Module*
Multitronic V Firing Panel Detonator*
! DMCGlobal.com
DYNASTAGETM GUN SYSTEM
Three Stage Gun String with Bridge Plug
*patents pending
2014 Investor Presentation 26

27. CURRENT INDUSTRY MODEL DYNAENERGETICS MODEL: PRODUCT ADVANTAGE + BUSINESS MODEL ADVANTAGE
 DMCGlobal.com
CREATING A SUSTAINABLE COMPETITIVE ADVANTAGE
10/30/14 27
COMPONENT DRIVEN SALES:
• Guns & Hardware
• Shaped Charges
• Detonating Cord
• Switch
• Detonators
• Control Systems
CUSTOMER USE REQUIREMENTS:
• Gun shop: Mix & match products
and assemble perforating
systems
• Field: Detonator wiring, gun
string assembly, sub recovery
INDUSTRY CHALLENGES:
• Assembly errors lead to misfires
• Quality
• Safety
• Efficiency
• Operating Cost
• Complexity of Supply Chain
DynaSelect
• Integrated Switch Detonator
• RF Safe
• Selective
• Surface Tester
• Enhanced Control System
DYNASELECT ADVANTAGES
• Higher value to Service Companies
• Less field wiring
• Fewer misfires
• Higher priced (to value)
• Reduced detonator wiring in the field
• Customer savings accrue in operations other
than wireline perforating
DynaStage™
• Switch detonator eliminates field wiring, improves
reliability
• Gun armed on detonator installation
• Full factory assembly of gun systems
• Delivery of complete systems to field
• Maintenance free and disposable
DYNASTAGE ADVANTAGES
• Highest level of reliability, safety and efficiency
• No misfires
• Reduced transportation costs and field labor
• Simplified supply chain
• Reduced working capital for customers
• Improved Service and E&P profitability
• Gun shop no longer required
• Detonator wiring eliminated
• Sub recovery eliminated
2014 Investor Presentation

28. ! DMCGlobal.com
DYNAENERGETICS GROWTH INITIATIVES
•! Investing in new technologies to
expand product offerings
•! Forging strategic partnerships
to enter new markets
•! Innovating solutions that meet
anticipated market demand
•! Global launch of new brand
marketing and digital assets to
improve customer experience
and service design
2014 Investor Presentation 28

29. DYNAENERGETICS GLOBAL FOOTPRINT
2014 Investor Presentation  DMCGlobal.com 29

30. ! DMCGlobal.com
SELECT END USERS
30
These major energy service companies are both competitors
and customers. When distribution limitations inhibit these
companies’ ability to supply perforating equipment to certain
international locations, they often turn to DynaEnergetics.
*
2014 Investor Presentation
* *
* *

31. DYNAENERGETICS MARKET INDICATORS: RIG COUNT BY GLOBAL REGION
2014 Investor Presentation ! DMCGlobal.com 31

32. DYNAENERGETICS MARKET INDICATORS: U.S. RIG COUNT BY TYPE
2014 Investor Presentation ! DMCGlobal.com 32

33. DYNAENERGETICS MARKET INDICATORS: U.S. HYDRAULIC FRACTURING ACTIVITY
! DMCGlobal.com
2014 Investor Presentation 33

34. 2014 Investor Presentation  DMCGlobal.com 34

35.  DMCGlobal.com
NOBELCLAD OVERVIEW
35
NobelClad is the worldwide
leader in explosion welded
plate production.
Largest global supplier of explosion clad plates.
Serving a diversified roster of industrial and
infrastructure end markets. Working to drive
engineering specifications for clad.
Profiting from global industrial infrastructure
investments.
Strong free cash flow.
2014 Investor Presentation

36.  DMCGlobal.com
NOBELCLAD’S PERFORMANCE
Year-end numbers $ in millions
9-month numbers
2014 Investor Presentation 36

37. 2013 Sales: $118.4 Million
! DMCGlobal.com
United States / 45%
South Korea / 10%
Germany / 6%
Canada / 5%
India / 4%
France / 3%
China / 2%
Rest of World / 25%
NOBELCLAD SALES BY GEOGRAPHY
2014 Investor Presentation 37

38.  DMCGlobal.com
NOBELCLAD GROWTH MILESTONES
1965 – Company founded as Explosive Fabricators
1996 – Acquired Detaclad®, the explosion welding business of Dupont
2001 – Acquired Nobelclad (France)
2007 – Acquired Dynaplat (Germany)
2012 – Opened sales office in South Korea
2013 – Unified global explosion welding operations under NobelClad
– Opened sales office in China
2014 – Acquired state-of-the art manufacturing facility in Germany
– Initiated restructuring program of European cladding operations
2014 Investor Presentation 38

39.  DMCGlobal.com
EXPLOSION WELDING PROCESS
2014 Investor Presentation 10/30/14 39

40.  DMCGlobal.com
DEMAND DRIVERS FOR EXPLOSION WELDING
40
03
Design
Flexibility
02
Corrosive
Environments
01
Global Infrastructure
Investment
2014 Investor Presentation

41. ! DMCGlobal.com
BENEFITS OF CLAD
2014 Investor Presentation 41

42. Explosion welding shot - NobelClad’s outdoor shooting facility near Rivsaltes, France.
! DMCGlobal.com
NOBELCLAD’S COMPETITIVE ADVANTAGE
NobelClad’s dominant position in
the explosion welding industry is
protected by significant barriers
to entry.
•! Global network of specialty
metals providers
•! Permits and shooting sites
in U.S., France, Sweden
and Germany
•! Mastery of explosion-welding
process for large-scale
production
•! Strong working relationships
with end-market customers
2014 Investor Presentation 42

43. Separating equipment – A natural gas production facility where NobelClad’s explosion
welded plates were used in the fabrication of specialized pipes.
! DMCGlobal.com
NOBELCLAD GROWTH INITIATIVES
•! Expanding market share in Asia
•! R&D focused on new clad plate
applications
•! Applying process expertise to
new market development
•! Global launch of new brand
marketing and digital assets to
improve customer experience
and service design
2014 Investor Presentation 43

44. GLOBAL PRODUCTION & SALES FOOTPRINT
•
2014 Investor Presentation ! DMCGlobal.com 44

45. ! DMCGlobal.com
PRIMARY END MARKETS SERVED
•! Chemical
•! Oil and Gas
•! Metals and Mining
•! Marine
•! Power Generation
•! Alternative Energy
•! Industrial Refrigeration
•! Transportation
•! Defense and Protection
2014 Investor Presentation 45

46. 200
180
160
140
120
100
80
60
40
20
0
2013 Bookings: $108.4M
! DMCGlobal.com
BOOKINGS BY END MARKET: 2008 REVENUE PEAK TO 2013 TROUGH
200
180
160
140
120
100
80
60
40
20
0
2008 Bookings: $198.9M
2008
Misc. / 10%
Shipbuilding / 2%
Ind. Refrigeration / 3%
Hydrometallurgy / 4%
Power Gen. / 7%
Aluminum / 11%
Alt. Energy / 13%
Oil & Gas / 22%
Chemical / 27%
2013
Misc. / 5%
Shipbuilding / 4%
Ind. Refrigeration / 3%
Hydrometallurgy / 0%
Power Gen. / 6%
Aluminum / 8%
Alt. Energy / 0%
Oil & Gas / 39%
Chemical / 35%
2014 Investor Presentation 46

47. CLADDING METAL PRICE CHANGES: 2008 REVENUE PEAK THROUGH 2013 TROUGH
30% 38% 26% 40% 20% 12% 5%
Titanium Gr1 Inconel 625 Alloy 825 516-70 (Mill) 516-70 (Service
Charts show decline in average price per pound paid by DMC. Metals make up 45% - 50%
of the value of a typical explosion welding order.
 DMCGlobal.com
Stainless Steel
304
Stainless Steel
316
Center)
2008
2013
2014 Investor Presentation 47

48. ! DMCGlobal.com
SELECT END USERS
48
Chemicals Refining Mining Engineering
NobelClad provides value to its industrial and infrastructure
customers by collaborating at every stage of development. During
design phases, NobelClad is a key resource for process architects and
engineers who often write NobelClad plates into their manufacturing
specifications.
2014 Investor Presentation

49. ENGINEERING PROCUREMENT & CONSTRUCTION (EPC) COMPANY BACKLOG INDEX
2014 Investor Presentation 10/30/14 ! DMCGlobal.com 49

50. ! DMCGlobal.com
EPC COMPANIES, SELECT COMPANY PERFORMANCE – BACKLOG
2014 Investor Presentation 10/30/14 50

51. ! DMCGlobal.com
CHAPTER 6
Financial Overview
2014 Investor Presentation 51

52. ($MM except per share amounts) 2011 2012 2013 9 Months
$192.7
-3%
$57.7
30%
$16.0
8%
$31.7
16%
$10.7
0%
$11.7
-6%
$0.87
-6%
 DMCGlobal.com
FINANCIAL PERFORMANCE REVIEW
2013
9 Months
2014
Sales
% growth
$199.0
38%
$202.1
5%
$152.7
7%
$150.6
-1%
Gross Profit
% margin
$52.2
26%
$58.1
29%
$45.3
30%
$45.5
30%
Operating Profit
% margin
$15.8
8%
$11.0
5%
$9.9
6%
$10.2
7%
Adjusted EBITDA
% margin
$29.9
15%
$26.6
13%
$21.2
14%
$23.0
15%
Income from Continuing Operations
% Growth
$10.7
219%
$7.2
-33%
$6.8
0%
$7.1
-3%
Net Income
% growth
$12.5
137%
$7.5
-36%
$7.2
-18%
$7.0
4%
Diluted EPS
% growth
$0.93
133%
$0.54
-38%
$0.52
-20%
$0.50
-4%
2014 Investor Presentation 52

53. Assets ($MM) Dec. 31, 2012 Dec. 31, 2013 June 30, 2014
Cash, cash equivalents $8.2 $10.6 $14.9
Accounts receivables, net $35.2 $37.8 $30.9
Inventory $48.0 $41.2 $41.8
Total current assets $104.8 $103.7 $106.5
Total assets $235.4 $240.6 $229.6
Liabilities ($MM) Text here Text here
Total current liabilities $24.8 $31.6 $24.1
Lines of credit $37.8 $26.4 $26.0
Long-term debt $0.1 $0.0 $0.0
Total liabilities $73.0 $67.8 $60.7
Total stockholders’ equity $162.5 $172.8 $168.9
Total liabilities and stockholders’ equity $235.4 $240.6 $229.6
 DMCGlobal.com
BALANCE SHEET HIGHLIGHTS
2014 Investor Presentation 53

54. ! DMCGlobal.com
CHAPTER 7
Summary
2014 Investor Presentation 54

55. DMC has adopted three tenets to guide superior
share price performance:
1. Maximize free cash flow through financial
discipline
2. Maximize return on invested capital by
achieving operational excellence and making
discerning investment decisions
3. Invest in new technology, product and market
development to drive sustained growth and
increased profitability
 DMCGlobal.com
DMC’S PERFORMANCE TENETS
Through share ownership,
DMC management has
closely aligned its interest
with independent
shareholders, and all
management decisions are
made to maximize
shareholder value.
2014 Investor Presentation 55

56. Contact Primary Contact
Geoff High
Investor Relations
Director of Investor Relations
E ghigh@dmcglobal.com
T 303-514-0656
 DMCGlobal.com
CONTACT INFORMATION
DMC
5405 Spine Road
Boulder, Colorado 80301, USA
T 800-821-2666
2014 Investor Presentation 56

57. ! DMCGlobal.com
APPENDIX: USE OF NON-GAAP FINANCIAL MEASURES
Presentation Title 10/30/14 57
2014 Investor Presentation