Investor Presentation • Sep 23, 2008
Investor Presentation
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Engineering Systems DivisionInvestor Presentation3rdQuarter 2008
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 prese presentation made ntation 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.
Preeminent global specialty materials and materials technology company serving high growth end-markets
Advanced Materials Division: Niche and complex specialty materials
Engineering Systems Division: Advanced vacuum furnace systems for high-purity metals
Timminco (50.5%-owned): Solar grade silicon and lightweight metals
Graphit Kropfmühl (79.5%-owned): Producer of silicon metal and natural graphite
Strong Second Quarter 2008 results: revenue up 48% to \$413 million and EBITDA up 97% to \$63 million
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).
ESD is a platform metallurgical technology company focused on enabling clean technology solutions for multiple major growth marketsVacuumFurnace TechnologyNuclearESD's priority target markets are conversion of solar silicon, energy saving in aerospace and automotive, and nuclear energy
A vacuum furnace operates at very high temperatures used for melting, remelting, sintering, and heat treatment of specialty metals to provide high material consistency and low contamination
* The product to be treated is surrounded in a vacuum providing:
Each of ESD's business lines has established a market leading position based on metallurgical technology expertise
Vacuum Sintering Systems
July 2008 Secured first nuclear engineering contract with DOE, through Shaw-Areva
Solar
As solar economics approach grid parity, demand will grow rapidly, driving the need for increase in upstream furnace melting capacity
Assuming a demand of 85GW by 2015(1), the estimate of installed base of DSS furnaces required will be approximately 30GW or approximately \$5.5 billion. As the co-market leader ESD is very well positioned to capitalize on this growth.
Solar
ESD growth will mirror the growth rate of the solar industry:
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CONFIDENTIAL
Nuclear
ESD participates in a number of critical portions in the nuclear value chain
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