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AMG Critical Materials N.V.

Investor Presentation Oct 30, 2007

3810_ip_2007-10-30_708cb113-54ad-4fe7-a57a-dc73bdb0a35b.pdf

Investor Presentation

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Advanced Metallurgical Group N.V. Investor PresentationOctober – November 2007

AMG ADVANCED METALLURGICAL GROUP N.V.

Disclaimer

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 directors of AMG Advanced Metallurgical Group N.V. (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 at a Glance

Preeminent global specialty metals company organised in two business units

Advanced Materials: develops and produces a number of different niche and complex specialty metals

Engineering Systems: designs and produces advanced vacuum furnace systems

Market leadership in both segments based on superior technologies

Customers include world leading metals producers and consumers in high growth end-markets

Global presence with operations in 12 countries on 5 continents

LTM(1) revenue of \$1,011m and EBITDA of \$90m with attractive growth potential

(1) As per 30 June 2007

Company Overview

AMG ADVANCED METALLURGICAL GROUP N.V.

Complementary Business Units

Advanced Materials Unit

  • Develops and produces niche specialty metals and complex metals products
  • Products are used in demanding, safety-critical, high-stress environments
  • One of a limited number of significant producers globally
  • Approx. 79% and 56% of AMG's LTM revenues (\$797m) and EBITDA (\$51m), respectively
  • Selected products:
  • Ferrovanadium
  • Silicon metal including solar grade
  • Specialty alloys for titanium and super alloys

Industries Served Include:

  • Designs, engineers and produces advanced vacuum furnace systems
  • Leading supplier of high-end metallurgical and heat treatment furnace systems
  • Approx. 21% and 44% of AMG's LTM revenues (\$214m) and EBITDA (\$39m), respectively
  • Selected vacuum furnace systems and services:
  • Solar silicon melting and crystallisation furnace systems
  • Remelting systems
  • Heat treatment services

Global Operations

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)

Advanced Materials Unit – Selected Products

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(1) 2006 market share estimate

Unique Metallurgical Expertise

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Leadership in Specialty Metals and Vacuum Furnace Markets

Ferrovanadium

  • Largest producer in North America
  • World's largest producer from secondary sources

Silicon metal

• Second largest independent producer in North America

  • Specialty alloys for titanium and superalloys
  • Largest global producer

  • Aluminium master alloys

  • Largest global producer

Leadership in Specialty Materials Leadership in Vacuum Furnace Systems

Vacuum remelting systems

• Largest global producer

• Integral in production of metal alloys for high-intensity applications including jet engines and airframes

Turbine blade coating systems

  • Largest global producer
  • Used in production of jet turbines

Induction melting systems

  • One of the largest global producers
  • Developed the largest vacuum induction melting furnace

Technological leadership

• Outstanding reputation for technological and service excellence in vacuum furnace systems

Market leadership through technology leadership

Converting Strategy into Sustainable Growth

En
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Recent Developments

AMG ADVANCED METALLURGICAL GROUP N.V.

Q3 Preliminary Review

  • Sales in Q3 were \$291m on a preliminary basis, up 27% from combined Q3 2006
  • Advanced Materials performed in-line with expectations
  • Sales of \$212m, up 12% from Q3 2006
  • Strong performance in Engineering Systems bolstered by innovative products and leading market positions in growing markets including solar, aerospace and energy
  • Sales of \$79m, up 95% from Q3 2006
  • Recapitalisation, including IPO and new credit facility, successfully completed

Focus on High Growth Markets – Aerospace

  • Airbus and Boeing production rates will increase through at least 2010 based on existing backlog
  • Up-cycle driven largely by low-cost, Asian and Middle Eastern carriers as well as new model introductions
  • Titanium demand has surged
  • Higher production rates
  • Requirements for increased fuel efficiency
  • Significant further growth as titanium-rich 787 goes into production

Source: Boeing and Airbus

for titanium, chromium metal and high-end superalloys Source: Allegheny Technologies investor presentation

Focus on High Growth Markets – Solar

Source: Solarbuzz

Source: Broker research

  • Key demand drivers:
  • Rising conventional energy prices
  • Concerns over global warming
  • Energy security
  • Demand for silicon used in solar PV still growing explosively
  • Most new polysilicon capacity expansions backstopped with longterm contracts
  • 5–10 year contracts being signed at approx. \$60/kg
  • China is a growing consumer of polysilicon – solar cell capacity of ~3GW by year-end, more than triple year-end 2006 capacity

Favourable Pricing Environment with Upside Potential

Ferrovanadium

  • Industry consolidation
  • Price has been stable since start of 2006
  • Current spot price is \$19.45/lb(1)

Vacuum Furnace Systems

  • High market share in technologically advanced value-added segment with limited competition
  • Growing demand driven by favourable trends in underlying metals and other industrial markets

Silicon

  • 80% price increase to \$1.28/lb since 1 Jan 2006 for chemical and electronic grade(1)
  • Rapidly growing demand source in solar grade; prices significantly higher than other grades

Other Metals

Chromium Metal

  • Five major producers, including two in China
  • Chinese export tax implemented 1 Jan 2007
  • 22% price increase from 1 Jan 2007 to \$7,800/tonne(1)

Tantalum

  • Favourable supply / demand dynamics since end of US government stockpile sales
  • Prices currently(1) ~\$50/lb vs. over \$200/lb in 2001
  • Customers seeking long-term supply contracts

Favourable supply / demand dynamics support positive pricing outlook in AMG's key markets

(1) As per 30 September 2007

Update: Advanced Materials

  • Cambridge (Ohio) vanadium expansion project completed on-time and on-budget
  • Successful restart completed in August
  • Incremental throughput from 4.0 million lbs to 4.5 million lbs
  • Titanium demand remains robust and growing, spurring continued strong demand for our alloys
  • Continued evaluation of strategic opportunities that could result in improved industry dynamics

• Vanadium pricing has remained stable and strong, although nickel prices retreated from their peak

Source: Ryan's Notes

Update: Advanced Materials (cont'd)

  • Timminco's development remains on-track
  • New facility construction proceeding on-time, with Q4 2007 targeted start-up
    • 3,600 tonnes per year at full capacity, expected by end of Q1 2008
    • Up to 9,000 tonnes sold over next 5 years through initial two contracts
  • New solar silicon contract signed with third buyer in September for 13,000 tonnes over 5 years
    • Effectively books out and exceeds capacity for initial plant expansion
  • Completed C\$42.6m public equity offering in September
    • AMG purchased concurrently C\$43.7m of stock to maintain its 50.6% shareholding (52.6m shares owned in total)

Update: Engineering Systems

  • Acquisition of Berlin manufacturing facility completed in August for negative purchase price
  • Refurbishment of facility and retraining of workers ongoing currently
  • Production scheduled to commence in November
  • Backlog of \$317m as of 30 September 2007
  • Steady order in-take
  • Production proceeding on plan though expect increased flow through with Berlin
  • Own and operate facility in Mexico under construction
  • Evaluating plans for China facility
  • Considering expansion of Michigan and Mexico facilities
  • R&D efforts progressing in new technologies and product enhancements

Financial Performance

AMG ADVANCED METALLURGICAL GROUP N.V.

Top-Line Revenue Growth Accelerating and Good Revenue Visibility

Improved Profitability

Growth-Oriented Capital Programme

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  • Revolving credit facility will support working capital requirements and facilitate quick reaction to opportunities
  • Debt-related interest expense will be down significantly
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Investment Highlights

AMG ADVANCED METALLURGICAL GROUP N.V.

Advanced Materials Unit Niche Specialty Metals Overview

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No
i
ls
k
N
ic
ke
l a
d s
l o
he
Ru
ian
ies
tor
t
c
o
y,
r
n
ev
era
r
ss
co
mp
an

,

Combined Income Statement

\$ in
(
tho
nds
)
usa
YE
AR
E
ND
ED
31
EC
D
EM
BE
R
SIX
S E
M
ON
TH
ND
ED
30
JU
NE
FY
20
05
FY
20
06
1H
20
06
1H
20
07
Co
nti
ing
tio
nu
op
era
ns
Re
ven
ue
90
6,
71
1
92
7,
80
8
46
0,
92
1
54
3,
85
3
Co
of
les
st
sa
72
8,
83
4
77
7,
20
3
38
5,
74
2
44
5,
67
2
Gr
rof
it
os
s p
177
87
7
,
15
0,
60
5
75
17
9
,
98
18
1
,
Se
llin
ral
d a
dm
inis
tiv
tra
g,
ge
ne
an
e e
xp
en
se
s
100
09
5
,
97
23
6
,
47
29
4
,
53
40
6
,
Re
str
uct
uri
d a
et
im
irm
t e
ng
an
ss
pa
en
xp
en
se
20
96
1
,
19
34
1
,
4,
183
30
En
v ir
l E
nta
on
me
xp
en
se
s
199 11
04
4
,
5,
88
2
20
2
Ot
he
r e
xp
en
se
s
2,
98
8
1,
32
4
C
t G
Pe
ion
urt
ailm
ain
ns
en
(
)
15
159
,
Ot
he
r in
co
me
(
3)
6,
41
(
4)
1,
26
(
5)
56
(
)
1,
182
Op
tin
rof
it
era
g p
60
04
7
,
38
08
3
,
18
38
5
,
45
72
5
,
Lo
tin
ish
of
de
bt
nt
ss
on
ex
gu
me
10
23
4
,
Int
st
ere
ex
pe
ns
e
33
20
7
,
36
55
9
,
Int
st
Inc
ere
om
e
(
8)
3,
96
(
4)
3,
54
Ne
t fi
ts
na
nc
e c
os
39
47
3
,
33
01
5
,
14
32
3
,
14
36
7
,
Sh
of
of i
f a
t o
iat
are
pr
ss
oc
es
44
7
(
2,
37
2)
(
1,
28
7)
(
1,
08
5)
Pr
ofi
t b
efo
inc
e t
re
om
ax
21
02
1
,
2,
69
6
2,
77
5
30
27
3
,
Inc
e t
om
ax
ex
pe
ns
e
16
33
2
,
8,
38
3
3,
77
6
11
63
9
,
Pro
fit
for
th
e y
ea
r
4,
68
9
(
5,
68
7)
(
1,
00
1)
18
63
4
,
Att
rib
ble
uta
to
:
Sh
ho
lde
of
the
C
are
rs
om
pa
ny
16
87
4
,
4,
50
7
(
15)
19
158
,
Min
ori
int
ty
sts
ere
(
12
185
)
,
(
10
194
)
,
(
98
6)
(
52
4)

Combined Balance Sheet

(\$ in
)
tho
nds
usa
YE
AR
EN
DE
D 3
1 D
EC
EM
BE
R
SE
CO
ND
QU
AR
TE
R
FY
200
5
FY
200
6
30
JU
NE
20
07
Ass
ets
Pro
pla
nd
ipm
ty,
nt a
ent
per
equ
105
,79
2
101
,25
6
Inta
ngi
ble
set
as
s
42,
367
44,
898
Inv
est
nts
in a
ciat
me
sso
es
11,
734
13,
303
Def
d ta
ts
erre
x a
sse
16,
639
21,
731
Oth
ts
er a
sse
4,5
96
4,9
81
Tot
al n
t as
set
on-
cur
ren
s
181
,12
8
186
,16
9
212
,30
3
Inv
ent
orie
s
153
,33
2
159
,65
1
168
,61
7
Tra
de
and
oth
iva
ble
er r
ece
s
128
,01
0
140
,97
6
182
,45
0
De
riva
tive
fin
ial
inst
ent
anc
rum
s
1,8
96
2,4
48
Oth
nt a
ts
er c
urre
sse
45,
531
Pre
nts
pay
me
31,
221
26,
784
Cas
h a
nd
h e
qui
val
ent
cas
s
50,
317
54,
610
178
,07
5
Tot
al c
ent
set
urr
as
s
364
6
,77
384
,46
9
574
,67
3
Tot
al a
ts
sse
545
,90
4
570
,63
8
786
,97
6
Eq
uity
Issu
ed
ital
cap
59
Sha
ium
re p
rem
129
,13
1
129
,98
6
Oth
er r
ese
rve
s
(3,5
93)
(15
,31
3)
Ret
ain
ed
nin
ear
gs
(15
47)
3,3
(14
40)
8,8
uity
rib
of
Co
Eq
att
uta
ble
to
sha
reh
old
the
ers
mp
any
(27
9)
,80
(34
8)
,10
225
,28
4
Min
orit
y in
ter
est
s
18,
984
10,
367
30,
434
N
D
b
t
t:
e
e
Tot
al e
qui
ty
(8,8
25)
(23
,74
1)
255
,71
8
4
4.
5
m
m
+
Lia
bili
ties
Loa
and
bo
ing
ns
rrow
s
199
,28
0
185
,38
6
107
,17
3
Rel
d p
de
bt
ate
arty
3,8
81
721
Em
plo
be
nef
its
yee
105
,48
5
94,
245
Pro
vis
ion
s
14,
491
5,8
35
Oth
er l
iab
ilitie
s
8,0
31
9,5
79
136
,42
3
Def
d ta
x lia
bilit
ies
erre
10,
562
12,
989
Tot
al n
t lia
bili
ties
on-
cur
ren
341
,73
0
308
,75
5
243
,59
6
Loa
and
bo
ing
ns
rrow
s
7,7
79
22,
659
26,
481
Sho
rt-te
ban
k d
ebt
rm
41,
749
53,
180
Rel
d p
de
bt
ate
arty
5,4
57
14,
815
Tra
de
and
oth
ble
er p
aya
s
78,
414
93,
841
122
,19
7
Oth
er l
iab
ilitie
s
40,
095
44,
417
71,
764
De
riva
tive
fin
ial
inst
ent
anc
rum
s
1,9
50
1,3
03
Adv
ent
anc
e p
aym
s
18,
952
29,
739
67,
220
Cu
yab
le
t ta
rren
xes
pa
7,7
16
13,
126
Pro
vis
ion
s
10,
887
12,
544
Tot
al c
ent
lia
bili
ties
urr
212
,99
9
285
,62
4
287
,66
2
Tot
al l
iab
iliti
es
554
,72
9
594
,37
9
531
,25
8
Tot
al e
qui
nd
liab
iliti
ty a
es
545
,90
4
570
,63
8
786
,97
6

Combined Cash Flow Statement

\$ in
(
tho
nds
)
usa
YE
AR
EN
DE
D 3
1 D
EC
EM
BE
R
SIX
M
ON
TH
S E
ND
ED
JU
NE
30
FY
20
05
FY
20
06
1H
20
06
1H
20
07
Ca
sh
flo
fro
tin
cti
vit
ies
ws
m
op
era
g a
Pro
fit f
the
riod
or
pe
4,
68
9
(
5,
68
7)
(
1,
00
1)
18,
63
4
Ad
jus
s fo
tm
ent
r:
De
cia
tio
nd
ort
iza
tio
pre
n a
am
n
18,
27
2
18,
52
9
8,
46
1
9,
27
8
Pe
nsi
tai
lme
ain
nt g
on
cur
(
15,
159
)
Re
str
uct
uri
d im
irm
ent
los
ng
exp
en
se
an
pa
ses
20
96
1
,
19,
34
1
En
viro
al e
ent
nm
xpe
nse
15
1
11,
844
Ne
t fi
sts
na
nce
co
29
23
9
,
33
01
5
,
Sh
of
los
s (
fit)
of
oci
ate
are
pro
ass
s
(
44
7)
2,
37
2
Los
ale
dis
al o
f p
lan
nd
uip
ert
t a
nt
s o
n s
or
pos
rop
y, p
eq
me
692 2,
61
7
Eq
uity
ttle
d s
ha
bas
ed
nt t
tio
-se
re-
pay
me
ran
sac
ns
28
2
38
6
Inc
e t
om
ax
exp
en
se
16,
33
2
8,
38
3
Ch
in w
ork
ing
ital
an
ge
ca
p
1,
41
8
(
16,
25
5)
(
28
334
)
4
Oth
er
(
6)
4,
27
(
)
1,
644
,
135
(
5)
1,
86
Inte
aid
t p
res
(
)
22
012
,
(
0)
28
65
,
Inc
id
e t
om
ax
pa
(
6,
692
)
(
5,
79
9)
(
15
13
1)
,
(
21
52
2)
,
Ca
sh
id f
div
ide
nds
pa
or
No
ash
n-c
ex
pe
nse
s
30
28
3
,
27
113
,
Ne
t c
h f
low
s f
tin
cti
vit
ies
as
rom
op
era
g a
58
60
9
,
35
23
3
,
(
5,
58
7)
31
64
2
,
Ca
flo
in
in
sti
tiv
itie
sh
ed
ws
us
ve
ng
ac
s
fro
of
Pro
ds
ale
ert
lan
t a
nd
uip
nt
cee
m s
pr
op
y, p
eq
me
19
1
42
0
Ca
sh
eiv
ed
for
eiv
ab
le
te
rec
no
rec
1,
35
3
Ac
isit
ion
of
iate
qu
as
soc
s
(
2)
38
(
3)
4,
00
Ac
isit
ion
of
lan
nd
uip
ert
t a
nt
qu
pr
op
y, p
eq
me
(
13,
65
9)
(
24
29
2)
,
(
10
45
8)
,
(
18,
174
)
Ac
isit
ion
of
h
et
qu
s, n
cas
Re
late
d p
art
loa
ns
y
(
14,
31
2)
(
11,
04
6)
Oth
er
(
4,
28
2)
(
112
)
Ne
h f
low
d i
n i
ing
tiv
itie
t c
est
as
s u
se
nv
ac
s
(
26
80
9)
,
(
38
92
1)
,
(
14
74
0)
,
(
18
28
6)
,
Ca
sh
flo
fro
(us
ed
in
)
fin
cin
cti
vit
ies
ws
m
an
g a
Pro
ds
fro
iss
of
de
bt
cee
m
ua
nce
20
9,
89
3
26
61
9
,
4,
89
3
(
18,
59
0)
Pa
of
ctio
ent
tra
ost
ym
nsa
n c
s
(
7)
13,
48
(
7)
20
Re
f b
ing
nt o
pay
me
orr
ow
s
(
21
9,
88
3)
(
11,
87
8)
Iss
of
Sh
ua
nce
are
s
59
Ca
ital
inf
usi
p
on
26
59
9
,
Oth
er
(
4)
(
12
1)
135
Ne
h f
low
s f
(u
d i
n)
fin
cin
cti
vit
ies
t c
as
rom
se
an
g a
(
23
48
1)
,
14
47
2
,
4,
76
3
8,
00
9
Ne
t d
in
sh
d c
h e
iva
len
ts
ec
rea
se
ca
an
as
qu
8,
31
9
(
1,
09
6)
(
15
56
4)
,
21
36
5
,
Ca
sh
d c
ash
uiv
ale
1
Ja
nts
at
an
eq
nua
ry
45
82
7
,
50
31
7
,
50
31
7
,
54
61
0
,
Eff
of
cha
fluc
tio
h h
eld
ect
te
tua
ex
nge
ra
ns
on
cas
(
9)
3,
82
5,
38
9
2,
64
6
1,
40
2
Ca
sh
d c
h e
iva
len
De
mb
ts
at
31
an
as
qu
ce
er
50
31
7
,
54
61
0
,
37
39
9
,
77
37
7
,

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