AMG - Investor Presentation Aug 2012

1. Investor Presentation
August 2012

2. Cautionary Note
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.
2

3. Overview
Listed: NYSE-Euronext Amsterdam: AMG
Founded: 2006
LTM Revenues: $1,308.6M
LTM EBITDA: $98.0M
Employees: 3,100
Facilities: Netherlands, Germany, UK, USA, Brazil, France, China,
Belgium, Turkey, Poland, India, Sri Lanka, Czech
Republic
Market cap: €200M ($248M)
Shares outstanding: 27.5M
52 week range: €5.81–€10.56
Recent share price: €7.31 (August 8, 2012)
AMG provides high value-added specialty metal alloys and engineering systems,
related to CO2 reduction and conservation of natural resources to growing end markets
3

4. Business Units, Products and End Markets
Advanced Materials Engineering Systems Graphit Kropfmühl AMG Mining
 67% of H1 2012 revenue  21% of H1 2012 revenue  12% of H1 2012 revenue  Creating new reporting
 62% of H1 2012 EBITDA  15% of H1 2012 EBITDA  23% of H1 2012 EBITDA segment in 2012
 High-value alloys  Capital equipment for high  Silicon metal  Antimony
 Critical raw materials purity materials  Natural graphite  Tantalum
Specialty Metals &
Energy Aerospace Infrastructure Chemicals
4

5. Why Invest in AMG
Revenue EBITDA
2009 – 2011 2009 – 2011
24.8% 26.2%
CAGR Advanced CAGR
Technology
2011: 2011:
$ 1,351.3 million $ 110.1 million
+ 36% over 2010 + 30% over 2010
Increase
Shareholder
Value
Operational Vertical
ROCE Efficiency Integration EPS
2009 – 2011
Strong growth in
19.9%
2011
CAGR
Adjusted 2011 EPS:
2011:
$1.34
15.1%
+ 79% over 2010
+ 27% over 2010
5

6. Critical Raw Materials Matrix
■ USA, Germany, UK and EU have each identified critical materials – common factors
include supply risks, economic importance and technology demand
■ AMG mines or processes 13 of those critical materials
6

7. Advanced Materials
End Input & Critical Material Key Everyday Sample
Markets Raw Materials Science Products Applications Customers
 Conversion  Specialty alloys
Property for titanium
Modification  Coatings for
A Boeing 787
wear resistance Dreamliner requires
Aerospace Surface
 Recycling ~250,000 lb titanium
Coating product purchased for
manufacturing, 5x
more than the A340
comparable airplane¹
 Recycling  Ferrovanadium FeV is added
Property  Ferro-nickel into high-
strength
Modification molybdenum
light-weight
Infrastructure steel as used
in the
Shanghai
World
Financial
Center²
 Mining  Tantalum An iPhone
Property concentrate contains
Modification and powder ~469
Specialty  Antimony
tantalum
capacitors³
Metals & Surface trioxide
Chemicals  Conversion Coating  Chromium
metals
 Aluminium
master alloys
7 ¹ Titanium Metal Industry Primer, by J.P. Morgan research, on January 23, 2012 and TIMET 2010 AR; Per Boeing, titanium constitutes 15% of its airframe weight
² Resource Revolution: Meeting the world’s energy, materials, food, and water needs, McKinsey, November 2011
³ iSuppli in August 2010

8. Engineering Systems
End Input & Critical Material Key Everyday Sample
Markets Raw Materials Science Products Applications Customers
 Technology  Vacuum Melting
Property and Remelting
Modification
Systems
 Precision Casting
All modern turbine
Aerospace Surface and Coating engines use titanium
Coating
Systems compressor blades and
 Heat Treatment discs to reduce weight
with high pressure and lower CO2
gas quenching emission¹
 Technology  Heat Treatment
Property Systems
Modification  Heat Treatment
Energy Services 33% of all new energy
– Efficiency saving automotive
gears are produced by
using AMG’s heat
treatment processes1
 Technology  Vacuum
Property Sintering and
Modification Annealing
Energy Systems for Nearly 90% of all
– Nuclear nuclear fuel nuclear residues from
 Development reprocessing of Pu are
project for the processed into new
safe storage of fuels with AMG’s
technology¹
8 nuclear waste
¹ AMG Management

9. Graphit Kropfmühl
End Input & Critical Material Key Everyday Sample
Markets Raw Materials Science Products Applications Customers
 Mining  Natural graphite
Property for heat insulation
Modification
materials for
building
Improving energy
Infrastructure construction efficiency in buildings
 Conversion
could provide ~19%
of the total benefits
thus increasing
resource productivity¹
 Conversion  Silicon metal for
Property polycrystalline
Modification
Energy for solar cells
– Solar
In 2010, ~ 87% of
solar cells are silicon-
based²
 Mining  Natural
Property graphite for
Modification transportation
Specialty
and lithium-ion Li-iron batteries for
Metals & batteries
 Conversion electric vehicles (EV)
Chemicals  Silicon metal can use graphite as
for aluminum anode. One car battery
and silicones requires ~24 Kg
graphite.³
9 ¹ Resource Revolution: Meeting the world’s energy, materials, food, and water needs, McKinsey, November 2011
³ Solarbuzz
³ AMG Management

10. Recent Developments – Graphit Kropfmühl Squeeze-out
■ Q2 2012
 ■ AMG credit facility extension for additional $62 million

■ Provides GK simplified and secured long-term debt financing
with lower costs
 ■ Independent valuation of GK by auditor
 ■ GK Supervisory Board meeting approved the merger
■ Q3 2012
On Plan ■ GK AGM to approve the merger squeeze-out
Increase Shareholder Value
10

11. Financial Highlights
11

12. Financial Highlights
Revenue Gross Profit
LTM: $1,308.6 (in USD millions)
LTM: $216.6 (in USD millions)
$319.6 $54.0
$368.3 $69.0
$356.4 Down
$324.0 Down $58.7
$53.4
$308.6 13% $50.5 22%
YoY YoY
- - - - -
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
EBITDA Adjusted EPS
LTM: $98.0 (in USD millions)
■ Q2 2012 EPS: ($0.10) (1)
■ Down from $0.12 in Q2 2011 (1)
■ LTM EPS: $0.64 (1)
$31.4
$23.6
$27.7
$24.8 Down
$21.9
25%
YoY
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
12
(1) Adjusted to exclude Timminco

13. Capital Base
Cash and Debt
Cash Debt
( in USD millions)
■ Net debt: $212.3 million
■ Debt to capitalization: 0.59x
■ Net Debt to LTM EBITDA: 2.17x
■ Revolver availability: $62.6 million
■ Total liquidity: $156.2 million
$305.9
$287.6
$278.5 $274.9 $268.6 ■ AMG’s primary debt facility is a $377
million term loan and revolving credit
$93.6
facility
$61.1 $71.3 $79.6 $81.2 ■ 5 year term – until 2016
■ Secured an additional $62 million for
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 its credit facility in Q1 2012 in
conjunction with the Voluntary
ROCE
Tender Offering for GK
15.1%
11.9%
10.5%
0 8.0%
2009 2010 2011
13

14. Key Products
Revenue Gross Profit
( in USD millions) ( in USD millions)
YTD Q2 2012: $643.6 YTD Q2 2012: $107.4
14

15. End Markets
Revenue Gross Profit
( in USD millions) ( in USD millions)
YTD Q2 2012: $643.6 YTD Q2 2012: $107.4
Aerospace Aerospace
31.5% 35.2%
Infrastructure
14.5% Energy
Energy 19.7% Infrastructure
15.3% 16.3%
Specialty Metals Specialty Metals
& Chemicals & Chemicals
38.7% 28.8%
Specialty Metals &
Aerospace + 9%
Chemicals - 22%
vs. Q2 2011
vs. Q2 2011
15

16. Advanced Materials
Financial Summary ■ Q2 2012 revenue down 10% from Q2
$280.0 Revenue EBITDA
( in USD millions)
2011
$235.6
$230.0
$226.8
$216.5 $211.7 $21.0 ■ Titanium master alloys up 12%
$17.5 $198.7
■ Aluminium down 18%
$180.0
$14.5
$13.7
$16.0
■ Antimony down 16%
$12.3
$130.0
$11.0
$80.0
$6.0
■ Q2 2012 gross margin 15% of revenue
$30.0
$6.0
■ Aluminium margin up 21%
■ Higher raw material costs for antimony
$(20.0) Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 $1.0
Capital Expenditure ■ Q2 2012 EBITDA margin 7% of revenue
( in USD millions)
■ SG&A down 14% vs. Q2 2011
$10.7 ■ Q2 2012 CAPEX $6.2 million
$8.3
$6.2 $6.6 $6.2 ■ $1.4 million for FeV expansion
- - - - -
■ $1.3 million for Tantalum expansion
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
16

17. Engineering Systems
Financial Summary
 Q2 2012 revenue down 27% from Q2
$105.0 Revenue EBITDA
( in USD millions)
$20.0
2011
$89.8
$86.3
$85.0  Heat Treatment Services up 16%
$72.9
$68.0 $65.4
$15.0
 DSS furnace down 71%
$65.0 $11.8
 Sintering furnaces down 38%
$9.3
$45.0
$7.7
$10.0
 Q2 2012 gross margin 23% of revenue
$25.0
 Increasing end market pricing pressure
$3.0
$3.7 $5.0
 Favourable product mix
$5.0
 Q2 2012 EBITDA 6% of revenue
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
$(15.0) $-
 SG&A down 19%
Order Intake
( in USD millions)  Order backlog decreased 15% to $150
million at June 30, 2012
 Order intake $36.4 million in Q2 2012
$88.6
$68.5 $69.5
$80.6  Heat treatment systems accounted for
$36.4 29% of total order intake
-
Q2 11
-
Q3 11
-
Q4 11
-
Q1 12
-
Q2 12  0.56x book to bill ratio
17

18. Graphit Kropfmühl
Financial Summary
 Q2 2012 revenue down 1% from Q2 2011
( in USD millions)
$50.0 Revenue EBITDA
 Silicon metal up 1%
$45.0 $42.9 $43.3 $42.5
$40.0 $37.0
$39.5  Natural graphite down 5%
$35.0 $11.0
$30.0  Q2 2012 gross margin 18% of revenue
$25.0 $7.0
$6.2 $6.2  Unfavourable product mix for natural
$20.0 $5.4
$15.0
$5.2 $6.0
graphite and silicon metal
$10.0  Natural graphite average pricing
$5.0 down 6%
 Silicon metal volume up 7%
$- $1.0
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
Capital Expenditure
( in USD millions)
 Q2 2012 EBITDA 13% of revenue
 SG&A down 7%
$3.2 ■ Q2 2012 CAPEX $2.8 million
$2.5 $2.7 $2.8
$2.2
 Upgrading silicon metal electric arc
- - - - -
furnace
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
18

19. Outlook

20. Outlook
Advanced Materials Engineering Systems Graphit Kropfmühl AMG Mining
 The slowdown in  Delayed orders  Silicon metal prices  New management
Europe impacting should be realized in locked in for 2012 team operationally
Advanced Materials' H2  Graphite demand is focused
European centric  Heat Treatment impacted by  Antimony mineral
businesses Services provides Eurozone weakness processing facility to
 Aerospace remains stable recurring  Kropfmühl mine be operational in Q3
strong revenues opened to secure  Tantalum production
 Market visibility is  Capital goods supply stabilizing at normal
limited spending stable at  AGM in August to levels
lower level approve the merger
■ Previously anticipated growth in H2 2012 is not expected to materialize
■ AMG announces Q3 2012 financial results on November 14, 2012
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21. Appendix
21

22. Consolidated Balance Sheet
Balance Sheet ($’000) Actual
As of 31-Dec-11 30-June-12
Fixed assets 263.6 261.4
Goodwill and intangibles 38.1 37.4
Other non-current assets 63.4 57.2
Inventories 228.9 223.7
Receivables 188.1 201.1
Other current assets 39.1 46.9
Cash 79.6 93.6
TOTAL ASSETS 900.8 921.3
TOTAL EQUITY 220.6 209.2
Long-term debt 210.4 259.5
Pension liabilities 90.1 88.4
Other long-term liabilities 71.6 73.6
Current debt 58.2 46.4
Accounts payable 128.5 136.1
Advance payments 30.2 32.1
Accruals 51.7 48.9
Other current liabilities 39.5 27.1
TOTAL LIABILITIES 680.2 712.1
TOTAL LIABILITIES & EQUITY 900.8 921.3
22

23. Consolidated Income Statement
Income Statement ($’000) Actual
For the three months ended 30-June-11 30-June-12
Revenue 368.3 319.6
Cost of sales 299.3 265.6
Gross profit 69.0 54.0
Selling, general & admin. 44.8 38.0
Asset impairment & restructuring 2.2 7.8
Environmental 0.1 0.6
Other income (0.9) (0.2)
Operating profit 22.8 7.8
Net finance costs 9.1 5.9
Share of (loss) profit of associates (1.7) 0.1
Profit before income taxes 12.0 2.0
Income tax expense 7.8 5.5
Profit (loss) for the period 4.2 (3.4)
Attributable to:
Shareholders of the Company 3.4 (2.6)
Non-controlling interest 0.9 (0.8)
Adjusted EBITDA 31.4 23.6
23

24. Consolidated Statement of Cash Flows
Cash Flow Statement ($’000) Actual
For the six months ended 30-June-11 30-June-12
EBITDA 57.6 45.5
+/- Change in operating assets/liabilities (51.2) (22.2)
-Interest paid, net (5.1) (9.0)
Other operating cash flow 8.2 (1.8)
Cash flows from operations before taxes 9.6 12.5
Income tax paid (21.6) (9.3)
Total cash flows (used in) from operations (12.1) 3.1
Capital expenditures (19.9) (23.4)
Other investing activities (24.0) (1.4)
Cash flows from investing activities (43.9) (24.8)
Cash flows from financing activities 23.9 36.1
Net (decrease) increase in cash (32.1) 14.4
Beginning cash 89.3 79.6
Effects of exchange rates on cash 3.9 (0.4)
Ending cash 61.1 93.6
24