Amg investor presentation Q2 2010

Investor Presentation
2nd Quarter 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
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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 Q1 2010 March 31
 Revenues - $235.8 million
 EBITDA - $22.0 million
 Net debt - $104.1 million
 Capital Investment - $5.1 million
 Global presence
 Europe, North America, South America and Asia

 2,300 employees

Sustainable Metals Technology

Financial Highlights - First Quarter 2010

■ Revenue: $235.8 million
■ EBITDA: $22.0 million, 9.3% EBITDA margin
■ Increases in Advanced Materials sales prices
■ Advanced Materials profitability improved substantially in Q4
■ Engineering Systems order intake remained low

■ EPS, excluding Timminco and restructuring charges, of $0.11

■ Capital investment of $5.1 million in Q1 2010
■ Cash: $98.9 million and debt of $203.0 million
■ Net debt of $104.1 million


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 Chemicals Infrastructure Aerospace


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

Q1 2010 Revenue by End Q1 2010 Revenue by
Market Product
FeV & FeNiMo Chromium
5% Metal
8%
Antimony
10% Tantalum &
Aerospace 26%
Niobium
Si metal 3%
11% Graphite
4%
Energy - Solar
& Nuclear 26% Infrastructure - Al Master
Recycling 14% Alloys
14% Vacuum
Furnaces
Specialty 28%
Metals & Ti Master
Chemicals 34% Alloys and
Coatings
18%


Global Operations
(Netherlands)

79.5(2) 42.5%(1)

Advanced Materials Division Engineering Systems Division Graphit Kropfmühl Timminco

Germany US UK Brazil France Germany US/Mexico Germany Canada

 Specialty alloys  Ferrovanadium  Aluminium  Tantalum oxide  Antimony  Vacuum furnace  Heat treatment  Silicon metal  Upgraded
for titanium  Ferronickel- master alloys  Niobium oxide trioxide systems facilities  Natural metallurgical
and superalloys molybdenum  Chromium  Aluminium  Own & Operate graphite silicon
 Coating metal master alloys heat treatment  Silicon metal
materials  Ferrotitanium facilities
 Vanadium  Metals-based
chemicals powders
 Metals-based 2009 Revenue by Geography
powders

North
America
21%

Asia
18%
Europe
56%
South
America
4%
ROW
1%
Note: This chart is a simplified depiction of AMG‟s organisational structure.
(1) Timminco Limited is listed on the Toronto stock exchange (TIM CN / TIM.TO).
(2) Graphit Kropfmühl AG (“GK”) is listed on the Frankfurt stock exchange (GKRG.DE / GKR GR).

Financial Highlights - by Business Unit

In USD millions 2010 Q1 Revenues 2010 Q1 EBITDA

$1.5
$30.0
$30.0

$8.5

$65 .3.3
$65
$12.0
$140.5
$140.5

Advanced Materials
Advanced Materials Engineering Systems
Engineering Systems GK
GK Advanced Materials Engineering Systems GK

2010 Q1 Free Cash Flow
($2.5)
$ in millions Q1 2010

Adjusted EBITDA 22.0
($19.1) $25.7
+ / - Change in working
capital (16.5)

- Maintenance capital (1.4)

Advanced Materials Engineering Systems GK Free Cash Flow 4.1

Financial Highlights
Revenue Highlights
($ in millions)

 Q1 Revenue: $235.8 million
 Up 9% from Q1 2009

 Q1 EBITDA: $22.0 million
$231.4 $235.8  Up 39% from Q1 2009
$215.7 $214.9
$205.4
 Balance sheet highlights at Mar 31, 2010
 Cash: $98.9 million
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10  Debt: $203.0 million
 Net debt: $104.1 million
EBITDA
 Total liquidity: $190.9 million
($ in millions)

$22.2 $22.0
$18.6
$15.9
$12.4

- -
Q1 09 Q2 09 Q3 09 Q4 09 Q1 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


Infrastructure - Pricing

Significant price trends – 10 years
$60

$250
$50
Price / Pound – V, Mo, Ni

$200
$40

$150
$30

$100
$20

$10 $50

$0 $0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Ferro Vanadium Molybdenum Nickel

Prices are still below pre-crisis levels


Advanced Materials

Financial Summary Highlights
( in millions)
Revenue EBITDA ■ Infrastructure - ferrovanadium
■ Reference prices increased 18% v. Q1 „09
$140.5 ■ Volumes declined 12% v. Q1 ‟09
$124.3 ■ Aerospace – master alloys volumes declined
$110.1
51% compared to Q4 2009
$95.9 $96.5 ■ Year over year reduction in personnel expenses
improved EBITDA margins
■ CAPEX limited to maintenance activities and
expansion of ferrovanadium operations in the
$5.3 $8.5
-$1.3 -$0.5 $5.0 United States
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

CAPEX

$5.0
$3.3
$2.5 $2.1 $1.9
- - -
Q1 09 Q2 09 Q3 09 Q4 09 Q1 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  2009 – 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  2009 – 80% 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: $65.3 million, 30% decrease QoQ
 Solar silicon DSS furnace revenues
$96.2
$91.2 decreased 47% in Q1 „10 v. Q1 „09
 EBITDA: $12 million
$73.8 $65.3  Backlog declined from $162 million at
$61.6
December 31 2009 to $127 million at March
31, 2010
 Order backlog is now primarily
$23.4 $22.5
$11.0 $12.1 comprised of furnaces for aerospace
- $5.9
- -
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10
end market
 2010 EBITDA is expected to be lower than

CAPEX
2009 due to the decline in backlog

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


Graphit Kropfmühl

( in millions)
Revenue EBITDA  Revenue: $29.9 million; 27% increase QoQ
$33.7  increases in natural graphite revenue
$33.3
$29.9
$27.3
 EBITDA: $1.5 million

$23.6  Improved from Q1 „09 due to cost
containment measures in graphite and
increased revenue
 CAPEX only for graphite milling expansion
 Silicon metal prices have rebounded from
$0.8 $1.7
-
$2.6
- $1.2
- $1.5
- Q1 ‟09.
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

CAPEX

$4.7

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


Capital Base

Cash and Debt Highlights – March 31 2010
( in millions)

■ Cash: $98.9 million
Cash Debt
■ Total debt: $203.0 million
$202.3 $203.8 $203.0
$193.9 ■ Net debt: $104.1 million
$180.3

■ Revolver availability: $92.0 million

■ Total liquidity $190.9 million
$117.5 $124.4
$117.0
$108.8 $98.9

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

Note: Cash includes short term investments


Outlook

■ Advanced Materials
■ Prices have rebounded from historic lows and demand is beginning to improve;
2010 revenues and EBITDA will improve significantly
■ Engineering Systems
■ Order intake continues to be sluggish;
■ Lower order backlog will result in lower 2010 revenues and EBITDA
■ Graphit Kropfmühl
■ Natural graphite demand and pricing is improving
■ Timminco
■ AMG owns 42.3% of Timminco; AMG supports Timminco‟s focus on its core
silicon metal business


Appendix


Consolidated Balance Sheet
$ in thousands December 31, 2009 March 31, 2010

Fixed Assets 211,022 204,977
Goodwill and Intangibles 28,253 26,351
Other Non-current Assets 78,209 67,526

Inventories 193,378 180,630
Receivables 147,787 175,078
Other Current Assets 35,313 37,182
Cash 117,016 98,857
TOTAL ASSETS 810,978 790,601

TOTAL EQUITY 228,423 224,147

Long-term Debt 168,319 159,800
Pension Liabilities 91,358 86,917
Other Long-term Liabilities 51,249 37,507

Current Debt 35,477 43,179
Accounts Payable 69,791 80,658
Advance Payments 54,764 39,807
Unearned Revenue - -
Accruals 46,179 43,843
Other Current Liabilities 65,418 74,743
TOTAL LIABILITIES 582,555 566,454

TOTAL LIABILITIES AND EQUITY 810,978 790,601


Consolidated Income Statement
$ in thousands Q1 2009 Q1 2010

Revenue 215,719 235,793
Cost of sales 181,859 193,209
Gross profit 33,860 42,584

Selling, general and admin. 29,039 30,614
Asset impairment and restructuring 198 7
Environmental 5 257
Other income (1,691) (81)

Operating profit 6,309 11,787

Net finance costs 2,831 3,609

Share of loss of associates 787 4,395

Profit before income taxes 2,691 3,783

Income tax expense 7,938 3,867

Loss for the year from continuing operations (5,247) (84)

Loss after tax for the year from discontinued operations (18,487) -

Loss for the year (23,734) (84)

Attributable to:
Shareholders of the Company (15,394) (64)
Minority interest (8,340) (20)

Consolidated Cash Flows

$ in thousands Q1 2009 Q1 2010

Cash Flows from Operations (1,062) (14,921)

Capital Expenditures (11,967) (5,146)
Other Investing Activities (25,982) (791)
Cash Flows from Investing Activities (37,949) (5,937)

Cash Flows from Financing Activities 24,437 7,643

Net increase (decrease) in cash (14,574) (13,215)

Beginning Cash 143,473 117,016
Effects of exchange rates on cash (6,126) (4,944)
Ending Cash 122,773 98,857

Approximate availability under AMG lines of credit 71,000 92,040

Total Liquidity 193,773 190,897


Amg investor presentation Q2 2010

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