AMG Critical Materials N.V.

Investor Presentation • Oct 9, 2007

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,î ìexpect,î ìanticipate,î ìintends,î ìestimate,î ìforecast,î ìproject,î ìwill,î ìmay,î ìshouldî and similar expressions, reflect the beliefs and expectations of the directors of AMG Advanced Metallurgical Group N.V. (the ìCompanyî) 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 Companyís 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 Presentation Team

William J. Levy CFO and Member of the Management Board

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

Complementary Business Units

Unique combination of metallurgical product and process expertise

Global Operations

Note: This chart is a simplified depiction of AMGís organisational structure (1) Timminco Limited is listed on the Toronto stock exchange (TIM CN / TIM.TO)

Advanced Materials Unit ñ Selected Products

Pr du t o c	Ap l ica t io p n	Co & Gr t i t ive Po i t io t h Po te t ia l m p e s n ow n	Se lec d Cu te to s m er s
Fe d ium rro va na ï	H ig h p for er ma nc e ï l loy ing in l t tee a ag en s	f fer La t p du d ium in No t h Am ica ly ing rg es ro ce r o rov an a r er su p p ï % f t ha 2 5 No t h Am ica ire ts mo re n o r er n r eq u me n
	Im tee l s tre t h p rov es s ng ï to ig h t ra t io we	De d dr ive by ing tee l p du t ion d inc ing ma n n g row s ro c an rea s ï d ium ten t in tee l va na co n s
		f s Pr t i l is ing da ter ia ls ñ l ing t o i l oc es s u se co n ry raw m a re cy c o p en ï f ine ly d p lan i du ta ts t re re ry ca s an ow er p s es
		Ex ion lan in dr ive by tro ke t p an s p s p rog res s n s ng m ar ï fun da ta ls me n
S i l ico ta l n m e	Re lar i l ico ta l: g s n m e u ï	nd f s 2 lar t in de de t p du i l ico ta l in No t h Am ica g es p en n ro ce r o n m e r er ï
inc lu d ing lar so de g ra	C he ica ls ( lu br ica ) ts m n ñ	So lar de i l ico ta l p du t ion g ra s n m e ro c ï
	A lum in ium ( l loy ing a ag en ñ	( ) Lo t p ie tar du t ion tec hn log ten t p d ing t ) w- co s rop r y p ro c o y p a en ñ
	E lec ics tro n ñ ( ico du tor ) se m n c s	T hre lon ter tra ts ig d for lar de ter ia l ( to e g- m co n c s ne so g ra m a up ñ 2 2, 0 0 0 ton to ta l o t f ive ) ne s ve r n ex y ea rs
	H ig h p i ty i l ico ur s n: ï
	En ( lar l ls ) erg y so ce ñ
Sp ia l l loy ty ec a s fo i ium d t ta r n an l	Im h a d tre t p rov es s ng n ï fun f m t ion l i ty ta ls c a o e	On f few t i f ie d p du lo ba l ly for ta in e o ce r ro ce rs g ce r ae ros p ac e ï l loy a s
loy su p er a s	Inc fue l e f f ic ien rea se s cy ï	S tro tom la t ion h ip du t re l ia b i l i ty is i t ica l ng cu s er re s as p ro c cr ï
	Co for he ts t mp on en ï d ae ros p ac e, en erg y an tom t ive in du tr ies au o s	So l i d m ke t fun da ta ls dr ive by de d fro ar me n n ma n m ae ros p ac e ï d e tor an ne rg y se c s

Engineering Systems Unit ñ Selected Products

Pr du t o c	Ap l ica io t p n	Co i ive Po i io & Gr h Po ia l t t t t te t m p e s n ow n	Se lec te d Cu to s m er s
Re l ing t tem me sy s s ï	Re f ine s r aw ï	(1) Es t im te d m ke t s ha f a 5 5 % a ar re o p p rox ï
	ia ls, ter ma rem ov es im i ies d t ur an	Gr h dr ive by de lop f i ium in du t tro t o t tan try ow n s ng ve me n s : ï
	p inc rea se s	Inc in ts rea se ae ros p ac e c om p on en ñ
	ho isa t ion mo g en	Inc in l ig h ter tro d m fue l e f f ic ien t rea se s ng er an ore ñ , tra ta t ion ter ia ls d c ts ns p or m a an om p on en
		Inc in ing ke d in fra t e tru tur rea se em erg m ar ne rg y an s c e ñ de d ma n
So lar i l ico s n ï	So lar fer a w ï	(1) Es t im te d m ke t s ha f a 2 5 % a ar re o p p rox ï
l ing d t me an l l isa ion ta t	du t ion p ro c	G lo ba l lea de in de ig f s lar i l ico fur tem r s n o o s n na ce sy s s ï
cry s fu tem rn ac e s y s s		S ig i f ica t inc in de d for lar f lec te d in fas t n n rea se ma n so en erg re y ï ing de ba k log g row or r c
Va he t cu um a ï tre tm t s ice a en erv s	He t tre tm t o f a a en ï tom t ive au o g ea rs	Ou ing by O E Ms f n iv i ies du ing i l c tso t t ta ts urc o on -co re ac re c ca p os ï d be f i ing fro A M G ís fur ise t t an ne m va cu um na ce ex p er
( ìO & Op te î) wn er a	d fue l in j tor an ec s to inc tre rea se s ss to ler lev ls an ce e	Gr t h dr ive by inc ing de d fro tra ta t ion tor for ow n rea s ma n m ns p or se c ï for h ig h p ts in h ig h-s tre l ica t ion er ma nc e c om p on en ss ap p s

(1) 2006 market share estimate

Unique Metallurgical Expertise

K l d n o w e g e S h i a r n g A h p p r o a c	Co b ina t io f m ta l lu ica l p du t e t ise i t h du t io kn -h m n o e rg ro c xp er p ro c n ow ow w ï Pr i de ins ig h t in ly i de tre ds in ta ls ke ts t hr h de bo k o f fu ov s su p p s n m e m ar ou g or r o rn ac es ñ G te b i l i ty to h ig he ins in ta te d du ts d in du tr ies re a r a e ar n r m ar g rg e p ro c an s ñ ( ) M t dr ive kn le dg ha ing be tw i ts la t i ta iu an ag em en s ow e s r ee n un e. g. s o r, n m ï
I i t n n o v a v e P r o c e s s e s	So la de i l ico du t io d la fu te hn log r g ra s n p ro c n an so r rn ac e c o y ï f fe Pa te t p d ing t-e t ive n en c os c p ro ce ss ñ Fe d iu du t io rro va na m p ro c n ï f o f Re l ing i l r ine ta ly ts d la t r i du d he cy c o e ry ca s an p ow er p n es es a n as s ñ
N i h c e d a n C l o m p e x P d t r o c s u	H ig h ly ia l ise d d ise d du to ts sp ec an cu s m p ro c ï fe De d ing h ig h i ty ty i t ica l a d h ig h- tre iro ts m an p ur sa -c r n s ss e nv nm en ñ , , In d fu l e f f ic ie ir ing l ig h te ig h t in t ive du ts cr ea se e nc re q r w e no va p ro c y u ñ f s f L im i te d be ig i ica t c t i to lo ba l ly nu m r o n n om p e rs g ï
H i h l S k i l l d g y e E i n g n e e r s	In te te d ta l lu ica l kn -h fo ta l p du t io d fu te hn log ies g ra m e rg ow ow r m e ro c n an rn ac e c o ï La be f g du ine d P h Ds dr ive in io f bu ine te t rg e nu m r o ra a e ng er s an no va n o s ss es ï
U i n q u	t l l i l t i d i d f h i t f i t i d d l t e m e a u r g c a e x p e r s e e r v e r o m a s o r y o n n o v a o n a n e v e o p m e n

Leadership in Specialty Metals and Vacuum Furnace Markets

Ferrovanadium

• Largest producer in North America
• Worldís 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

ïLargest global producer

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

Turbine blade coating systems

• ïLargest global producer
• Used in production of jet turbines

Induction melting systems

• ïOne 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 ine ing Sy tem g er s s Le d ing lar i l ico l t ing d c ta l l isa t ion a so s n m e an ry s ï fur lar ba k log ( Be l in ) na ce s ñ g e c r Su f f g ly ing ig i ica t p t ion lo ba l t i tan ium in du try p p s n n or o s ï fur lar ba k log na ce s ñ g e c Ow & Op ion te n era ex p an s ï So lar Gr de S i l ico Me ta l a n Co tra ts t ly ig d for to 2 2, 0 0 0 ton n c rec en s ne up ne s o ve r ï t 5 y ne ea rs x Cu f t a l c i ty 3 0 0 ton rre n nn ua ap ac o ne s ï Sp ia l A l loy fo T i ium d Su l loy ty ta ec s r n an p er a s Fo d o in du ís d for ig h try t cu se n a ero sp ac e s ne e w e ï du t ion to im fue l e f f ic ien re c p rov e cy Ca i ty ion p ac ex p an s ï C hr ium Me ta l om De d c ha ter is t ics im i lar to ic ke l m ke t ma n rac s n ar ï C h ina ins i d e 1 No 2 0 0 6 r l ing in t tu te t tax t xp or on v es u ï (1) 2 2 % ice ia ion inc 1 Ja 2 0 0 7 t a p r ap p rec s e n Ta ta lum n Fa b le ly / de d dy ics t U S vo ura su p p ma n na m p os ï t s toc kp i le le g ov ern me n sa Ex ion to do b le l m in ing i ty p an s u an nu a ca p ac ï Ex ion f dro lec ic lan tr t an s o -e ow er ï	En ine ing Sy tem g er s s Ow & Op ion te n era ex p an s ï Cu t ba k log for 2 0 0 8ñ 2 0 0 9 w h ic h rre n c ï ten ds to 2 0 1 0 ex S in ter ing fur for b b le be d n lea na ce s p e uc r ï tor rea c s So lar Gr de S i l ico Me l ta a n Co tra ts t ly ig d for to n c rec en s ne up ï 2 2, 0 0 0 ton t 5 y ne s o ve r n ex ea rs Ca i ty ion fun de d by p ac ex p an s ï T im inc ís i ty i ta l ra is ing m o eq u ca p s S i l ico Me l ta n Ca i ty t im isa t ion p ac op ï Co ing Ma ia ls t te a r Ne du ts for t h in f i lm lar ke t p ro c so m ar ï w P las t ing ma co a s ï Fe d ium d Fe ic ke l rro va na an rro n Mo ly b de nu m Ca i ty ion in 2 0 0 9ñ 2 0 1 0 p ac ex p an s ï	Fe d ium d Fe ic ke l rro va na an rro n Mo ly b de nu m Inc ing i inc i de i h ty to t rea s ca p ac co w ï f ine ion in A l be i l s ds ta re ry ex p an s r o an fur E lec tr ic ion -l ine arc na ce ex p an s on ï 2 0 1 1ñ 2 0 1 2 Do b le fer d ium du t ion u rov an a p ro c ï i ty ca p ac
hy p p p Ne -T ar er m ( 2 0 0 7ñ 2 0 0 8 )	M i d- Te rm ( 2 0 0 8ñ 2 0 1 0 )	Lo -T ng er m ( 2 0 1 0 ) +

(1) As per 30 September 2007

Q3 Preliminary Review

• ïSales in Q3 were \$291m on a preliminary basis, up 27% from combined Q3 2006
• ï Advanced Materials performed in-line with expectations
• Sales of \$212m, up 12% from Q3 2006
• ï 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
• ïRecapitalisation, including IPO and new credit facility, successfully completed

Focus on High Growth Markets ñ Aerospace

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

Source: Allegheny Technologies investor presentation

Focus on High Growth Markets ñ Solar

• ï Key demand drivers:
• Rising conventional energy prices
• Concerns over global warming
• Energy security
• ï Demand for silicon used in solar PV still growing explosively
• Most new polysilicon capacity expansions backstopped with longterm contracts
• 5ñ10 year contracts being signed at approx. \$60/kg
• ï China is a growing consumer of polysilicon ñ solar cell capacity of ~3GW by year-end, more than triple year-end 2006 capacity

Favourable Pricing Environment with Upside Potential

Ferrovanadium

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

Vacuum Furnace Systems

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

Silicon

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

Other Metals

Chromium Metal

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

Tantalum

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

Favourable supply / demand dynamics support positive pricing outlook in AMGís key markets

(1) As per 30 September 2007

ï

ï

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
• ï 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

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

Source: Ryanís Notes

ï

Update: Advanced Materials (contíd)

• Timmincoís development remains on-track
• New facility construction proceeding on-time, with Q4 2007 targeted start-up
  • ï3,600 tonnes per year at full capacity, expected by end of Q1 2008
  • ïUp 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
  • ïEffectively books out and exceeds capacity for initial plant expansion
• Completed C\$42.6m public equity offering in September
  • ï AMG purchased concurrently C\$43.7m of stock to maintain its 50.6% shareholding (52.6m shares owned in total)

Update: Engineering Systems

• ï 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
• ï 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
• ïR&D efforts progressing in new technologies and product enhancements

Top-Line Revenue Growth Accelerating and Good Revenue Visibility

Improved Profitability

AMG ADVANCED METALLURGICAL GROUP N.V.

Growth-Oriented Capital Programme

Pr du t o c	Am t ou n	Pu rp os e	T im ing
Fe d ium rro va na	\$ 3 0m	F irs t p ha f e ion to b le do b l ing f c i ty in l ine i t h m j l ier 's se o xp an s en a u o ap ac w a or su p p Ca d ian i l s ds ion na o an ex p an s	2 0 0 7ñ 2 0 0 9
(1) S i l ico n	\$ 2 2m	Ex ion f T im inc 's h ig h p i ty i l ico ta l fac i l i ty p an s o m o ur s n m e	2 0 0 7ñ 2 0 0 8
Sp fo ia l ty l loy ec a s r t i tan ium d s l loy a n up er a s	\$ 5m	fu fo Ne du t ion ion rna ce r p ro c ex p an s w	2 0 0 8
Ow & Op te n er a	\$ 1 5m	Ne fac i l i ty in Me ico w x	2 0 0 7ñ 2 0 0 8
Ta ta lum n	\$ 7m	f Ex ion tan ta l i te ine d hy dro lec tr ic lan t in Br i l p an s o m an -e p ow er p az	2 0 0 7ñ 2 0 0 8
P las ing t ma co a s	\$ 4m	Ex ion in ing du to t ts p an s ne w co a p ro c	2 0 0 8
Ma in ten an ce ca p ex	\$ \$ 8ñ 1 0m	f fac Ma in ten i l i t ies d e ip t an ce o an q me n u	An l ba is nu a s

Refinancing Completed ñ Capital Structure Will Facilitate Growth

• ï Net IPO proceeds of \$275m together with new \$175m credit facility used to repay substantially all outstanding debt
• ï Revolving credit facility will support working capital requirements and facilitate quick reaction to opportunities
• ïDebt-related interest expense will be down significantly
• ïEarnings will be retained to finance growth ñ dividend policy to be reviewed from time to time

\$ in mi llio ns)
	30- JU NE -07	30 -JU NE -07 PF
Ca sh	\$ 77	(1) \$ 178
Cu sto rs' de its me pos	( ) 134	( ) 134	\$ 1 f ( 4 4 i l l i l i i d i t l m o n o q r e o e r u y v v
Av aila ble sh ca	( 57)	44	i l b i l i l h- h d ) t a v a a y p u s c a s o n- a n
Sh ort -te de bt rm	73	26
Lon ter m d ebt g-	216	10 7
To tal de bt	\$ 289	\$ 134
Ne t d eb t	\$ 346	\$ 90	( 2) N D b f l 1. 0 L T M E B I T D A t t e e o o n y x
Sh hol der s' e ity are qu	4	256
To tal ital isa tion cap	\$ 294	\$ 389

Outlook

	A d d M t i l v a n c e a e r a s	S E i i t n g n e e r n g y s e m s
R i d e m a n e r f o 2 0 0 7	A h i f i l i d i i f t t p p r o a c n g n a n v e s m e n e c s o n o r ï f d i i e r r o v a n a u m e x p a n s o n S f t t- l i l i d t i a r p o s o a r s c o n p r o c o n u u ï	B l i l i l i l l i i d t t e r n s o a r s c o n c r y s a s a o n a n ï l t i f d t i f i l i t t t m e n g u r n a c e s p r o u c o n a c y s a r p u C t i d t d i t k o n n u e s r o n g o r e r n- a e ï
	N d t i f i l i t f l d e w p r o u c o n a c y o r s o a r g r a e ï f i l i t d t b l l t i l s c o n e p e c e o e o p e r a o n a x u y A l i i i t f t t l n n u a m n n g c a p a c y o r a n a u m ï	O & O t i i M i w n p e r a e e x p a n s o n n e x c o ï f t d t b l l t i l b d e p e c e o e o p e r a o n a e n x u y y f o y e a r
2 0 0 8	t d t d b l e p e c e o o e x u N t i t i l f t h i f i l e w c o a n g m a e r a s o r n m ï	S f f t d t l d d r o n g n a m e n a s o r a a n c e u v ï f d i t t t v a c u u m u r n a c e s e x p e c e o c o n n u e

Investment Highlights

Advanced Materials Unit Niche Specialty Metals Overview

PR OD UC T	FU NC TIO NA LIT Y	AP PL ICA TIO NS	EN D-M AR KE TS	20 06 RE VE NU E
Fe diu rro va na m	Im tre th to ï pro ve s s ng ig ht io a nd rat we du ctil ity of ste el	Hig h s tre th ste el, reb ï ng ar d p ip ing an	Inf tru ctu ï ras re, en erg y d t ati ort an ran sp on	\$ 67 m
Fe nic ke l rro ly bd mo en um	Co sio ista ï rro n r es nce	Sta inle ste el ï ss	Ae ï ros pa ce	\$ 20 m
Sil ico eta l n m inc lud ing lar ad so gr e	Im ï pro ve s nd ivit uct co y Pro vid sio ï es co rro n ista res nce Inc ha rdn ï rea ses ess	Se mic du cto fib tic ï on rs, re op ble ola ells ala nts ca s, s r c , se , lub rica nts etic , co sm s	Ele ctr ics ï on , lar ho olt aic tov so -p , ch ica l a nd em alu mi niu m	\$ 90 m
Alu mi niu ste m ma r all s / ted oy co mp ac all ing od ts oy pr uc	Im urf ï pro ve s s ace ap pe ara nce , th d d ility str uct en g an of alu mi niu m	Alu mi niu bill ets ï m , ext ion sh t, foi l, rus s, ee ele ica l ca ble nd ctr s a be ve rag e c an s	Tra tio rta ï ns po n, nst tio co ruc n, d ae ros pa ce an cka ing pa g	\$ 139 m
Ch ium eta l rom m	Im s h ig h ï pro ve tem rat pe ure , w ea r d c ion an orr os ista of res nce su pe r allo ys	Je ine urb ine t e s t ï ng s, ga s, nd ipe d i pu mp s a p s u se n ch ica l re fin eri tro pe em es	Ae ï ros pa ce , e ne rgy d t ort ati an ran sp on	\$ 36 m
Ma ium tru sio gn es ex ns d f ab ric ate d an du cts pro	Co sio ion rot ect ï rro n p , ig ht red uct ion we	Wa he de hot ter ate ï r a no s, p o vin nst tio en gra g, co ruc n ls a nd ing od too ort sp go s	Du rab le g ds ï oo , nst tio inti co ruc n, pr ng d l eis od an ure go s	\$ 65 m

Advanced Material Unit Complex Metals Products Overview

PR OD UC T	FU NC TIO NA LIT Y	AP PL ICA TIO NS	EN D-M AR KE TS	20 06 RE VE NU E
Sp ial ty all s f tita niu d ec oy or m an ral loy su pe s	Im th str ï pro ve en g d f ctio lity an un na of tal me s	Tu rbi ï ne ts co mp on en	Ae ï ros pa ce , nd en erg y a otiv tom au e	\$ 54 m
Co ati ate ria ls ng m	Im ï pro ve we ar ista nti res nce , a ref lec tin g ati vid co ng s, pro es nd tra t a ns pa ren nd uct ive la co ye rs	To ols t ï , co mp on en rts de rat ive pa co , , tics op , ho tov olt aic p s	Inf tru ctu ï ras re, ele ctr ics d on an en erg y	\$ 29 m
Ta nta lum d n iob ium ide an ox s	Im ï pro ve nd uct ivit co y, ista he to at res nce d c ion in an orr os nic kel d c ob alt an ba d s lloy se up era s	Ele ic ctr ï on cito ca pa rs	Ele ics d ctr ï on an nst tio co ruc n	\$ 10 m
An tim trio xid on y e	Fla tar da nt ï me re	Ca ble ho ing ï us s, las tics tex tile p s ,	Ele ctr ics ï on , bu ildi ter ials ng ma d t ort atio an ran sp n	\$ 60 m
Me tal s-b ed wd as po ers	Im ï pro ve bio ati bili ty, co mp im allo ing pro ve y , im nd uct ivit pro ve co y	Me dic al im lan ts, ï p ints ts pa , m ag ne	Me dic al ï	\$ 59 m

Engineering Systems Unit Products Overview

FU RN AC E T YP E	SP EC IFI C P RO DU CT	AP PL ICA TIO NS	EN D-M AR KE TS	20 06 RE VE NU E
Re ltin me g	Va elt ing fu ï cu um ar c r em rna ces fur Ele ctr lag ltin ï o s re me g na ces	To ol s tee ls, tita niu ing ots d ï m an ral loy s in ts su pe go	Ae he mic al, ï ros pa ce , c en erg y, tra rta tio nd dic al ns po n a me	\$ 66 m
So lar si lic elt ing on m d c tal lis ati an rys on	Sil ico elt ing d c tal lisa tio ï n m an rys n fur na ces	Hig h p urit ola ilic in ts ï y s r s on go d i n t he du ctio f w afe use pro n o rs	En (so lar hot ltai c) ï erg y p ovo	\$ 19m
Va in du cti cu um on ltin me g	Va in du ctio n d ing d ï cu um eg ass an uri fur po ng na ces	Su ral loy nd ialt lloy ï pe s a sp ec y a s for to ols Ste el a nd rod ï s	Ae tra rta tio nd ï ros pa ce ns po n a , che mic al	\$ 17m
Va he at tre atm t cu um en wi th hig h p res su re ga s ch ing qu en	Va in h ard ing ï cu um ca se en fur na ces Pla arb uri sin fur ï sm a c g na ces	Ge die l fu el inje d cto ï ars se rs an , ls too	Tra atio d ort ï nsp n, ae ros pa ce an ling too	\$ 16m
Va isi cu um pr ec on sti ca ng	Pre cis ion stin fur fo ï ca g na ces r uia ing d D S/S C ast eq x c an tin cas g	Co ts f ï mp on en or ae ros pa ce ine nd ind ust ria l ga en g s a s tur bin lf c lub nd dic al es , go s a me im lan ts p	Ae ed ica l a nd ï ros pa ce , e ne rgy , m leis ure	\$ 10m
Tu rbi bl ad tin ne e c oa g	Ele ctr be hys ica l va ï on am p po ur de siti fur po on na ces	Co ati s f tur bin e b lad ï ng or e ts f co mp on en or ae ros pac e ine nd ind ria l ga ust en g s a s tur bin es	Ae d e ï ros pa ce an ne rgy	\$ 9m
Sin ter ing	Va si nte rin fur ï cu um g na ces Hig h p sin ter ing fu ï res su re rna ces	To ols net nd cle fue ï , m ag s a nu ar	ls To olin cle d ï g, nu ar en erg y, an tals me	\$ 8m
Ow n & O rat pe e	Va rbu rizi lica tio ï cu um ca ng ap p ns	Ge d i nje cto ï ars an rs	Tra atio d ort ï nsp n, ae ros pa ce an ls too	\$ 22 m

Experienced Growth-Oriented Management Team

	Ins ert Pi ctu re	Ins ert Pi ctu re	Ins ert Pi ctu re	Ins ert Pi ctu re
He inz Sc h im l bu h m e sc CE O a Ch f th nd air ma n o e Ma nt Bo ard na ge me	Ar t hu Sp to r ec r Ch De ty air pu ma n of the M t B rd an ag em en oa	Er ic Ja ks c on Pre sid t A dva ed en nc Ma ter ials d M be f an em r o the M t B rd an ag em en oa	Re in ha d W l te r a r Pre sid t E ine eri en ng ng Sy ste d M be ms an em r of the M t B rd an ag em en oa	W i l l iam J. Le vy CF O a nd M be em r of the M t B rd an ag em en oa
Fo de d S afe ard ï un gu Int ati al Ma ing ern on as na g Pa in 19 97 rtn er Cu ntly C ha irm of rre an ï f Tim mi d D ire cto nco an r o No rils k N ick el Fo Ch air f rm er ma n o ï Me tal lge llsc ha ft a nd se Me tha x C tio nd ne orp ora n a of C ( Dir ect MM or no w Inm et Min ing )	Fo de d S afe ard un gu ï Int ati al Ma ing ern on as na g Pa rtn in 19 97 er Cu ntly Vi Ch air f rre ce ma n o ï Tim mi nco Ch r C EO of Fo air rm er ma n o ï Ne Sy ste Sta te ow are ms , f M Na tio l B k o lan d na an ary d A bra ha Lin ln an m co Fe de ral Sa vin Ba nk gs	CO O o f M eta llur g ï sin 20 02 ce Se nio r V ice -Pr ide nt of es ï Me tal lur ís N h a nd ort g So uth Am eri rat ion ca n o pe s sin 19 98 ce	Ch f A air LD si Ju ly ma n o nce ï 20 04 jo ine d 2 00 1 ; De ty Ch air nd CF O pu ma n a ï of VB H H old ing AG fro m 19 97 to 20 01	d C FO Vic e P ide nt res an ï Me tal lur inc e N be g s ov em 20 05 Fo CF O o f P Q rm er ï Co rat ion rpo l C W ith Im ria he mic als pe ï Ind ust rie s P LC in th e U K d U S f 19 84 to 19 an rom Ce rtif ied blic tan pu ac co un ï

Strong Supervisory Board

Pe dr Pa b o- Ku k cz y ns C ha irm an	Pri M inis of Pe ( 20 05 & 20 06 ) ter me ru ï lo Pe ruí s M inis ter of Ec nd Fin ( 20 01 ñ2 00 2 & 20 04 ñ2 00 5) on om y a an ce ï i of s ( ) a Ge of Pe ruí s M inis ter En nd M ine 19 80 -19 82 nd De ty Dir ect ral th e P via n R e B k, late -19 60 erg y a pu or ne eru es erv an s ï Fo de d t he La tin Am eri n E nte ise Fu nd iva te uity fir in 19 92 Ch air f F irst Bo sto n I nte tio l, 19 82 ñ1 99 2 un ca rpr , a pr eq m, ; ma n o rna na ï Se n G nio dv iso r to th e R oh aty r a rou p ï
An dr i e Bo ug ro v D ire tor c	Bo ard be f In ter tio l B k fo r R str uct ion d D elo t, the In ter tio l D elo t A cia tio nd the m em r o na na an ec on an ev pm en na na ev pm en sso n a ï Int ati al Fin Co ion ( be 19 93 ñ2 00 2) rat twe ern on an ce rpo en Ad vis to the Eu n B k fo r R str uct ion d D elo t in th e U K ( be twe 19 91 -19 93 ) a nd ad vis to the D ire cto rat er rop ea an ec on an ev pm en en an er e ï for In tio l E mic O nis ati Min istr for Fo rei Af fai Th e S iet Un ion ( be 19 79 -19 82 ) ter twe na na co no rga on s, y gn rs, ov en Dir ect of I / ST Eq uity Pa rtn No rils k N ick el d R ba nk or ers an os ï ,
W ley es C lar k D ire tor c	Un ited St ate s A ked fou tar ral Su Al lied Co de Eu of NA TO ( 19 97 ñ2 00 0) rm y, ran a r-s ge ne ; pre me mm an r, rop e, ï Ca nd ida for th e D ic n ina tio n f the Pr ide of the Un ited St te rat nt ate em oc om or es s ï Ch air f R od n & Re ha inv est nt ba nk ma n o ma ns w me ï
Ja k L. c Me ss m an D ire tor c	Fo Pre sid t a nd C EO of No ll In rm er en ve c. ï Fo CE O o f U nio n P ific Re Co rm er ac so urc es mp an y ï Dir ect of Un ion Pa cifi c C tio Wa r A x C ab le C nic ati Inc nd M TV Ne two rks Inc or orp ora n, rne me om mu on s, . a ï , of of f S afe Sc tific Sh k C Me mb the bo ard di tor ard ien s I Ra dio tio nd Ti inc o L im ited er rec s o gu nc ac orp ora n a mm ï .,
No be t r r Qu in ke t r D ire tor c	Ch air f M rol a G mb H ( 19 95 ) oto ma n o ï of Ce s f GE l S s C of Ge Vic ide nt ntr al Eu rat ion M ed ica tem tra l E d P ide nt ral El ect ric De uts ch lan d e-p res rop ea n o pe or ys en uro pe an res ne ï Me mb of the rvis bo ard of PF W Ae d M rol a G mb H b oth ba d i n G oto er su pe ory ros pa ce an se erm an y. ï Me mb of the ad vis cil of Dre sd r K lein rt B Fra nkf urt er ory co un ne wo en so n, ï
Gu y De Se l l ier D ire tor c	Ch air f H B A dv iso te fin ad vis fir foc d o eta ls a nd inin ind ust ma n o rs, a c orp ora an ce ory m use n m m g ry ï Fo Bo ard M be nd Ch air f R ob Fl ing & Co . L im ited Ea Eu ert ste s rm er em r a ma n o em rn rop e ï , Dir ect of So lva S.A No rils k N ick el d s l ot he r R ian ies or y, an ev era uss co mp an ï .,

Combined Income Statement

FY 200 5 FY 20 06 1H 20 06 1H Co ntin uin atio g o per ns Re 906 ,7 11 927 808 460 921 ven ue , , Cos t of les 728 834 777 203 385 ,7 42 sa , , Gro fit 177 877 150 605 75, 179 ss pro , , Sel ling al a nd adm inis trat ive 100 095 97, 236 47, 294 , ge ner exp ens es , Res truc turi and set im irm ent 20, 961 19, 341 4, 183 ng as pa ex pen se Env iron nta l Ex 199 11, 044 5, 882 me pen ses Oth 2, 988 1, 324 er e xpe nse s ñ n C nt G Pen sio urta ilme ain ( 15, 159 ) ñ ñ Oth er i ( 6, 413 ) ( 1, 264 ) ( 565 ) nco me Op ting ofit 60, 047 38, 083 18, 385 era pr Los xtin ishm ent of deb t 10, 234 s o n e gu ñ ñ Inte t ex 33, 207 36, 559 res pen se ñ Inte t In ( 3, 968 ) ( 3,5 44) res com e ñ Net fin ost 39, 473 33, 015 14, 323 anc e c s Sha f pr ofit of ocia tes 447 ( 2, 372 ) ( 1, 287 ) re o ass Pro fit b efo re i tax 21, 021 2, 696 2, 775 nco me Inco tax 16, 332 8, 383 3,7 76 me ex pen se Pro fit f or t he 4, 689 ( 5, 687 ) ( 1, 001 ) yea r Att rib uta ble to : Sha of Co reh old the 16, 874 4,5 07 ( 15) ers mp any Min orit inte ts ( 12, 185 ) ( 10, 194 ) ( 986 ) y res Ear nin sh gs per are	(\$ in tho nds ) usa	YE AR EN DE D 3	1 D EC EM BE R	SIX MO NT HS EN	DE D 3 0 J UN E
					20 07
					543 853 ,
					445 672 ,
					98, 181
					53, 406
					30
					202
					ñ
					ñ
					( 1, 182 )
					45, 725
					ñ
					ñ
					ñ
					14, 367
					( 1, 085 )
					30, 273
					11, 639
					18, 634
					19, 158
					( 524 )
	Bas ic e ing har arn s p er s e	ñ	10, 015 .55	n/a	1.1 1
1.2 9 Dilu ted rnin sh ea gs per are ñ ñ					ñ

Combined Balance Sheet

		Ass ets
		Equ ity

(\$ in thou sand s)	YEA R E NDE D 3 1 D ECE MB ER
	FY 200 5	FY 200 6	30 J UNE 200 7
Ass ets
Pro lant and ipm pert ent y, p equ	105 ,792	101 ,256	ñ
Inta ngib le a ts sse	42,3 67	44,8 98	ñ
Inve stm ents in a ciat sso es	11,7 34	13,3 03	ñ
Def d ta sets erre x as	16,6 39	21,7 31	ñ
Oth ts er a sse	4,59 6	4,98 1	ñ
Tot al n t as sets on- cur ren	181 ,128	186 ,169	212 ,303
Inve ntor ies	153 ,332	159 ,651	168 ,617
Tra de a nd o ther eiva bles rec	128 ,010	140 ,976	182 ,450
Der ivat ive fina ncia l ins trum ents	1,89 6	2,44 8	ñ
Oth nt a ts er c urre sse	ñ	ñ	45,5 31
Pre ts pay men	31,2 21	26,7 84	ñ
Cas h an d ca sh e quiv alen ts	50,3 17	54,6 10	178 ,075
Tot al c nt a ts urre sse	364 ,776	384 ,469	574 ,673
Tot al a ts sse	545 ,904	570 ,638	786 ,976
Equ ity
Issu ed c apit al	ñ	59	ñ
Sha ium re p rem	129 ,131	129 ,986	ñ
Oth er r ese rves	(3,5 93)	(15 ,313 )	ñ
Ret aine d ea rnin gs	(153 ,347 )	(14 8,84 0)	ñ
s of Co Equ ity a ttrib uta ble to s har eho lder the mpa ny	(27 ) ,809	(34 ) ,108	225 ,284
Min orit y in tere sts	18,9 84	10,3 67	30,4 34
Tot al e quit y	(8,8 25)	(23 ,741 )	255 ,718
Liab ilitie s
Loa nd b win ns a orro gs	199 ,280	185 ,386	107 ,173
Rela ted part y de bt	3,88 1	721	ñ
Emp loye e be nefi ts	105 ,485	94,2 45	ñ
Pro visi ons	14,4 91	5,83 5	ñ
Oth er li abil ities	8,03 1	9,5 79	136 ,423
Def d ta x lia bilit ies erre	10,5 62	12,9 89	ñ
Tot al n t lia bilit ies on- cur ren	341 ,730	308 ,755	243 ,596
Loa nd b win ns a orro gs	7,77 9	22,6 59	26,4 81
Sho rt-te rm b ank deb t	41,7 49	53, 180	ñ
Rela ted part y de bt	5,45 7	14,8 15	ñ
Tra de a nd o ther able pay s	78,4 14	93,8 41	122 ,197
Oth er li abil ities	40,0 95	17 44,4	71, 764
Der ivat ive fina ncia l ins trum ents	1,95 0	1,30 3	ñ
Adv nts anc e pa yme	18,9 52	29,7 39	67,2 20
Cur rent tax ble es p aya	7,71 6	13, 126	ñ
Pro visi ons	10,8 87	12,5 44	ñ
Tot al c nt l iabi litie urre s	212 ,999	285 ,624	287 ,662
Tot al li abi litie s	554 ,729	594 ,379	531 ,258
Tot al e quit d lia bilit ies y an	545 ,904	570 ,638	786 ,976

Combined Cash Flow Statement

\$ in ( tho nds ) usa	YE AR EN DE D 3 1 D EC EM BE R			SIX MO NT HS EN DE D 3 0 J UN E
	FY 200 5	FY 20 06	1H 20 06	1H 20 07
Cas h fl s fr ting tivi ties ow om op era ac
Pro fit f or t he iod per	4, 689	( 5, 687 )	( 1, 001 )	18, 634
for: Adj ust nts me
Dep iatio nd orti zat ion rec n a am	18, 272	18, 529	8, 461	9, 278
Pen sio ilme ain urta nt g n c	ñ	( 15, 159 )	ñ	ñ
Res truc turi nd imp airm ent los ng exp ens e a ses	20, 961	19, 341	ñ	ñ
Env iron l ex nta me pen se	151	11, 844	ñ	ñ
Net fin ost anc e c s	29, 239	33, 015	ñ	ñ
Sha f lo (pro fit) of a ciat re o ss sso es	( 447 )	2, 372	ñ	ñ
Los ale dis al o f pr rty, lan t an d e ipm ent s o n s or pos ope p qu	692	2, 617	ñ	ñ
Equ ity-s ettl ed sha re-b d p ent tra ctio ase aym nsa ns	282	386	ñ	ñ
Inco tax me ex pen se	16, 332	8, 383	ñ	ñ
Cha in rkin ital nge wo g c ap	1, 418	( 16, 255 )	( 28, 334 )	4
Oth er	( 4, 276 )	( 1, 644 )	135	( 1, 865 )
Inte id	012	650
t pa res Inco tax id	( 22, ) 6, 692	( 28, ) 5,7	( 15, 131 )	( 21, 522 )
me pa Cas for h p aid div ide nds	( )	( 99)
Non sh -ca ens es	ñ	ñ	30, 283	27, 113
exp Net sh flow s fr ting tivi ties ca om op era ac	ñ 58, 609	ñ 23, 353	( 5, 587 )	31, 642
Cas h fl sed in inv est tivi ties
ing ow s u ac Pro ds from le o f pr rty, lan t an d e ipm ent cee sa	191	420
ope p qu Cas h re ceiv ed for ceiv abl not e re e	1, 353		ñ	ñ
Acq uisi tion of ocia tes ass	( 382 )	ñ ( 4, 003 )	ñ	ñ
Acq uisi tion of lant d e ipm ty, ent pro per p an qu	( 13, 659 )	( 24, 292 )	ñ ( 10, 458 )	ñ ( 18, 174 )
Acq uisi tion et o f ca sh s, n
Rel ate d p arty loa ns	( 14, 312 )	( 11, 046 )	ñ ñ	ñ ñ
Oth er			( 4, 282 )	( 112 )
flow Net sh sed in inv est ing tivi ties ca s u ac	( 26, 809 )	( 38, 921 )	( 14, 740 )	( 18, 286 )
Cas h fl s fr (us ed in) fina nci ivit ies act ow om ng
Pro ds from iss of d ebt cee uan ce	209 893 ,	26, 619	4, 893	( 18, 590 )
Pay nt o f tra ctio ost me nsa n c s	( 13, 487 )	( 207 )	ñ	ñ
Rep of bor ing ent aym row s	( 219 883 ) ,	( 11, 878 )	ñ	ñ
Issu f S har anc e o es	ñ	59	ñ	ñ
Ca ital infu sio p n	ñ	ñ	ñ	26, 599
Oth er	( 4)	( ) 121	135	ñ
flow s fr (us in) fina Net sh ed nci act ivit ies ca om ng	( 23, 481 )	14, 472	4, 763	8, 009
Net de in h a nd h e iva len ts cre ase cas cas qu	8, 319	( 1, 096 )	( 15, 564 )	21, 365
Cas h a nd h e ival t 1 Jan ent cas qu s a uar y	45, 827	50, 317	50, 317	54, 610
Effe ct o f ex cha rat e fl uct uat ion ash he ld nge s o n c	( 3, 829 )	5, 389	2, 646	1, 402
Cas h a nd h e iva len ts a t 31 De ber cas qu cem	50, 317	54, 610	37, 399	77, 377