Materion Corporation · NYSE:MTRN
Materion — Investor Presentation (March 2012)
81 slides from Materion's investor presentation, Mar 29, 2012
Slide 1: Additional Investor Presentation Materials
Additional Investor Presentation Materials March 2012 Materion Corporation Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements These slides contain (and the accompanying oral discussion will contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that could ca
Slide 3: Advanced Material Technologies Segment
Advanced Material Technologies Segment (Advanced Materials Group)
Slide 4: Advanced Materials Group
Advanced Materials Group Long term sustainable growth Profitable Markets Profitable Products Geographic Scope Best total cost solution Vertical Integration Growth
Slide 5: Advanced Materials Group: End Markets Sales 2011
Advanced Materials Group End Markets Sales 2011 * % of Total Sales
Slide 6: Advanced Materials Group
Advanced Materials Group Manufacturing Redundancy Closer to Customers Geographic Diversity Albuquerque NM Milwaukee WI Buffalo NY Wheatfield NY Brewster NY Newburyport MA Ireland Germany Czech Republic Singapore Philippines Taipei China South Korea
Slide 7: Advanced Materials Group Products
Advanced Materials Group Products
Slide 8: Advanced Materials Group Processes
Advanced Materials Group Processes
Slide 9: Advanced Materials Group: Smart Phones
Advanced Materials Group I/O Connector Contacts Battery Contacts Internal Antenna Contacts Grounding Clips and Audio Jacks Micro Mezzanine Connectors for LCD Screen Internal Electronics and LED • Thin Film Materials – Power amplifiers, LED, SAW and BAW devices, filters, and ICs • Hermetic Solutions
Slide 10: Advanced Materials Group: Solar Energy
Advanced Materials Group Amorphous Silicon Thin Film (PVD) Materials Cadmium Telluride Thin Film (PVD) Materials Copper Indium Gallium Selenide (CIGS) Thin Film (PVD) Materials Concentrator Photovoltaic Thin Film (PVD) Materials Micro Electronic Packaging Products Flexible Solar Cells / Building Int
Slide 11: Microelectronics & Services Group
Microelectronics & Services Group Top Performers Growth LED Wireless Application(s) Advanced material solutions & services for high reliability applications Unique vertical integration Best total cost solution Precision Parts Cleaning Refining Services: Precision parts cleaning Precious metals refin
Slide 12: Advanced Chemicals Group
Advanced Chemicals Group Specialty Inorganic Chemicals Magnesium Fluoride Thorium Floride Phosophor Top Performers Growth High Performance Material solution Inorganic chemical synthesis and material transformation Customizable solutions for best total cost Solar Large Area Coating Optical Materials
Slide 13: Advanced Material Technologies Segment
Advanced Material Technologies Segment (Large Area Coatings & BARR Precision Optics Groups)
Slide 14: Materion Large Area Coatings Group Overview
Materion Large Area Coatings Group Overview Key Markets Products Metal films Clear conductive oxide films Water vapor barrier films Converted materials Conductive traces Conductive top sheets Barrier components Flex circuits Medical Solar TFPV Displays Flexible electronics Specialty applications Cor
Slide 15: MLAC Vision, Goals and Objectives
MLAC Vision, Goals and Objectives • Targeted Growth - Core Medical Bio-sensor Businesses • Sustain Quality, Improve Yields and Increase Profitability • WIN with Technology / R&D / Innovation • Diversified Global Growth through Strategic NBO’s • Initiate Proactive R & D and Increase Capacity for NBO’
Slide 16: MLAC Key Markets
MLAC Key Markets • Medical • Flexible Engineered Films • Flexible Display • Thin Film Photovoltaics • Defense Applications Diversified Growth
Slide 17: MLAC 2011 Distribution of Business
MLAC 2011 Distribution of Business Key: BGTS = Blood Glucose Test Strips FEF = Flexible Engineered Films TFPV = Thin Film Photovoltaics Bcoag = Blood Coagulation Test Strips
Slide 18: MLAC Medical Markets
MLAC Medical Markets Current Market NBO Flexible Circuits POC Test Strips Glucose Coagulation Ketones, Creatinine, Lactate Electrode Pads Pain Management Defibrillators Other Sensors (EEG, ECG, ENG, EMG) Metal Coating Medical Foams Medical Tapes
Slide 19: MLAC Key Focus Medical Markets
MLAC Key Focus Medical Markets • Medical Device Electrodes • Other POC Test Strips • Blood Coagulation Test Strips • Blood Glucose Test Strips
Slide 20: Projected Growth of Diagnosed Diabetes
Projected Growth of Diagnosed Diabetes 438 million 171 million 250%+ Growth Forecast
Slide 21: For Diabetes, PVD is Technology of Choice
For Diabetes, PVD is Technology of Choice • PVD vs. Conductive Ink • Accuracy , Consistency, Functionality • Blood Sample Size • No Code • Increasing population with diabetes • No treatment, cure or testing alternatives that will obsolete BGTS or significantly reduce volume before 2015
Slide 22: Materion Barr Precision Optics Group
Materion Barr Precision Optics Group Market Diversity Projection Display, Gas sensing, Thermal Imaging, Life Science and Medical Device, Space & Astronomy, Defense 5 Manufacturing Sites Westford MA (2), Tyngsboro MA, Buellton CA, Shanghai CN 700 employees More than 100 coating chambers Strong custom
Slide 23: Precision Optics Group Overview
Precision Optics Group Overview Core Technology Defense Applications Commercial Application Space, Science & Astronomy Thermal Imaging Products Flex Sensors Visi-Lids® Filter Sets Rugates Wafer Level Color wheels Linear Variable Filters High Value Coatings Non-optical Coatings Hybrid Circuits Light
Slide 24: MATERION
4) MATERION 16% 28% 12% 25% 19% Defense @ Thermal Imaging OCommerci: OSS&A OGNon-Optical
Slide 25: Performance Alloys Segment
Performance Alloys Segment
Slide 26: Brush Performance Alloys - Overview
Brush Performance Alloys - Overview World Leader in Copper Beryllium • North America’s only Bertrandite Ore Mine • Only Fully Integrated Copper Beryllium Business (mine – manufacture – sales – distribution - technical support) • 900 Employees at 8 Locations • Growing Non-Beryllium Product Family of
Slide 27: Operations and Distribution
Operations and Distribution Operation Location Products Mine Delta, UT Bertrandite Ore Chemical Mill Be Hydroxide Primary Operations Elmore, OH Cast Billets Strip Mill Strip Coils Bulk Mill Rod, Bar, Tube and Plate Finishing Operations Reading, PA Finished Strip and R&W Non-Be Casting Lorain, OH Cas
Slide 28: Independent Distributors
Independent Distributors Americas Europe Asia - Admiral Metals - Bohler Uddeholm - Bohler Uddeholm - Busby Metals - Busby Metals - Laminaries Matthey - EJ Brooks - Stainless - Farmers - Thyssen Krupp - Mead Metals - Schmoltz & Bickenback - ASSAB Pacific - Southern Copper & Supply - ATP - Thyssen Kru
Slide 29: Why use Cu Be and our other Alloys?
Why use Cu Be and our other Alloys? • High Strength and Hardness • High Thermal Conductivity • High Thermal Stability • High Electrical Conductivity • Stress Relaxation Resistant • Miniaturization • Anti-Microbial • Non-Biofouling • Non-Magnetic • Anti-Galling • Corrosion Resistant • Good Machinabil
Slide 30: MATERION
m MATERION Other Medical 7% 2% Industrial Components & ‘Commercial Aerospace Defense & Science ae 20% Appliance 10% Consumer Electronics Automotive Electronics 21% 11% Telecommunications Infrastructure 13% Energy 13%
Slide 31: Major Product Forms
Major Product Forms • Strip • Rod • Wire • Plate • Bar • Tube • Billet • Casting Alloys • Machined Parts
Slide 32: Notebook/Netbook/Tablet
Notebook/Netbook/ Tablet Market Overview • Processor heat sink and power contact. • Large CAGR in tablet / Ultrabook market. market . • 5 Mega Pixel Camera usage growing. Key Customers • Transcendent (Kindle) • Ultra Book (Acer, ASUS & Sony) • Apple • HP • Dell • Panasonic Product & Services Offered
Slide 33: Oil & Gas
Oil & Gas Market Overview Key Customers • Directional drilling and production equipment. • Hydraulic fracturing, deep offshore projects • Chinese producers are offering low prices • New Product - - ToughMet 3 TS 120 • Slumberger, Halliburton, GE Energy, Cameron, Expro, National Oilwell Varco, Aker S
Slide 34: 1915 / 1916 Rod & Wire
1915 / 1916 Rod & Wire Market Overview Key Customers • Industrial Connectors (Transportation, Coax) • We are only domestic manufacturer. • Competitive pricing – need cost effective manufacturing to make acceptable margin. • New Process – Multihole Wire Drawing • Deutsch • TriStar, • New Asia opportu
Slide 35: Aerospace
Aerospace Market Overview Key Customers • T3, CuBe, and Bronze RBTP for bearings. • B-787, 747-800, A-380, A-350 XWB, C- Series, C919, narrow and wide body retrofits. Use of T3 on new production of 737, 767, 777, A320 • New Growth opportunities at Embraer and CATIC • Airbus, Boeing, Bombardier, Cess
Slide 36: Mechanical Systems
Mechanical Systems Market Overview Key Customers (demand generators) • Plain bearings in mining, construction,mfg. • Growing in robust/recovering markets • ToughMet brand equity, case histories • Great opportunity to sell Value Added products. • Joy Global, Caterpillar (w/Bucyrus), Cummins, Hitachi/
Slide 37: Elmore Presentation Materials
Elmore Presentation Materials
Slide 38: Introduction
Introduction Performance Alloys Overview Operations Overview Beryllium & Composites Overview Operating Strategy Quality Philosophy Lean Six Sigma
Slide 39: Performance Alloys
Performance Alloys Bulk (35%) Strip (65%) Strip Markets Telecom Infrastructure Consumer Electronics Automotive Electronics Appliance Bulk Markets Plastic molds Undersea cable amplifiers Aerospace landing gear bearings Oil and gas drilling equipment Heavy Equipment Bearings & Bushings
Slide 40: Locations
Locations Manufacturing: Delta, UT; Elmore, OH; Lorain, OH; Reading, PA Distribution and Sales Offices: Detroit, Chicago, Los Angeles, Houston, Alberta, Toronto/Quebec, Mexico, Brazil International: UK, Germany, Switzerland, Australia, France, Japan, Singapore, HK, Taiwan, China, Korea, India
Slide 41: Materion Brush International Inc.
Materion Brush International Inc. 50% of Alloy Sales outside U.S. Singapore Tokyo / Fukaya Dongguang Hong Kong Reading, UK Stuttgart Taiwan Shanghai Seoul Italy Spain/ Portugal Technical/Marketing & Service Centers
Slide 42: Copper Alloys
Copper Alloys Material selection is based on combinations of mechanical and physical properties Strength Conductivity, resistivity Formability, ductility, crimpability Stability Stiffness Magnetic permeability Corrosion resistance High Temperature Properties Damage tolerance
Slide 43: Rotary Steerable Drilling Tool
Rotary Steerable Drilling Tool Most popular offshore drilling tool for all the major oilfield engineering companies. Drill directional cylindrical hole as opposed to elliptical hole by aiming the bit. Reduce both drilling time and cementing completion cost by 30%. Significantly reduce risk of boreho
Slide 44: Global Plastic Tooling Case Study
Global Plastic Tooling Case Study Benefits of MoldMAX Insert 20% faster cycle (122s 98s) Increased annual production by 500,000 bases Better dimensional control of hub Global has converted 16 tools in Canada Looking at more tools in China Also using MoldMAX ® molds for seats and backs
Slide 45: Materion and SARMA (SKF-Aerospace-Europe)
Materion and SARMA (SKF-Aerospace-Europe) Cooperated to develop new high-strength, low weight sphericals for aircraft by combining titanium and ToughMet components. ToughMet ® sales to Aerospace is growing rapidly. The primary application is to attach landing gear to wing and fuselage. Twin-aisle Ai
Slide 46: ToughMet Bushing Application
ToughMet Bushing Application Bushing Applications
Slide 47: Operations Overview
Operations Overview
Slide 48: Supply Chain
Supply Chain Utah Be(OH) *Elmore: Primary Operations Strip Operations Bulk Operations Be Products Operations Strip and Rod & Wire Basestock Strip & Bulk Products Service Centers & Distributors Reading Strip and Rod & Wire Products Alloy Products Be Products Elmore*
Slide 49: MATERION
m MATERION
Slide 50: Key Processes and Flows
Key Processes and Flows Location Operation Products Key Processes and Flows Delta, UT Mine Ore Chemical Mill Hydroxide Elmore, OH Primary Operations Cast Billets Strip Mill Strip Coils Bulk Mill Rod, Bar, Tube, and Plate Beryllium Products Machined Beryllium Metal Reading, PA Finishing Mill Finished
Slide 51: Delta Facility - Statistics
Delta Facility - Statistics 73 employees - 43 hourly 3,080 acres-Mill 7,400 acres-Mine 92,197 square feet of building space-Mill 7,000 square feet of building space-Mine 5th largest private sector employer in Millard Co. Facility established in 1968-69 production began in Sept. 1969 (mine land purch
Slide 52: Delta Mine Operations
Delta Mine Operations Topaz Mine Unloading Ore at Mill
Slide 53: Delta Mill Operations
Delta Mill Operations Wet Grind Leach CCD Solvent Extraction
Slide 54: Delta Mill Operations
Delta Mill Operations Beryl Plant Beryl Ore Beryl Furnace Beryllium Hydrolysis Drumming Station
Slide 55: Elmore Facility
Elmore Facility
Slide 56: Elmore Facility – Statistics
Elmore Facility – Statistics 640 employees 439 acres 1,000,000 square feet of building space Second largest private sector employer in Ottawa County
Slide 57: Plant Layout
Plant Layout Front Gate N Whiting Arc Furnace West Admin. Bldg. East Admin. Bldg. Beryllium Products Old Strip Mill Old Cast Shop Billet Prep Rod, Bar & Tube Mill New Cast Shop and New Strip Mill Pebble Plant
Slide 58: Primary Operations
Primary Operations Responsible for hot metal casting of materials utilizing four direct chill cast Induction furnaces; one Whiting arc furnace, two 30-ton Induction furnaces Casting is comprised of Master Alloy, normally classified as 4% BCMA, foundry products of various billet and ingot configurati
Slide 59: Primary Operations: Direct Chill Casting
Primary Operations Direct Chill Casting
Slide 60: Strip Operations
Strip Operations Business : Production of high performance CuBe and NiBe strip product in coil form. Width is up to 24” wide and thickness from 0.0079” to 0.186”. Seventy percent of shipments are to Brush Wellman’s Reading, PA facility where additional processing is performed and the remaining thirt
Slide 61: Strip Operations
Strip Operations Hot Rolling Slab Milling Cold Rolling
Slide 62: Strip Operations
Strip Operations Anneal & Pickle Age Finish Pickle
Slide 63: Bulk Products Manufacturing
Bulk Products Manufacturing Business : Produces engineered alloys in cast and wrought shapes including round rod, rectangular bar, tube, plate, machined parts and wire. Markets : Aerospace, Automotive, Bearing, Oil, Gas and Mining, Plastic Tooling, Resistance Welding, Telecommunications, and Underse
Slide 64: Bulk Products Manufacturing
Bulk Products Manufacturing Extrusion Billet Prep Drawbench
Slide 65: Beryllium & Composites Manufacturing
Beryllium & Composites Manufacturing Business : Production of Be and Be containing materials. Including AlBeMet and BeO powder. Markets : Defense, Aerospace. Satellites, optical systems, nuclear, avionics, inertial guidance. Process : Primarily the production, consolidation, and machining of powder
Slide 66: Materion Brush Beryllium Products & Composites
Materion Brush Beryllium Products & Composites What do we make? Be Metal E-materials AlBeMet Beryllium oxide & chemicals X-ray/UHV windows NEW : SupremEX – Metal Matrix Composite Why Beryllium? Our materials enable engineers to design and build lighter, faster, accurate, and more reliable systems. •
Slide 67: Aircraft Electronic Applications
Aircraft Electronic Applications Fighter Aircraft F-16, F-22, JSF Helicopter Apache, Kiowa Warrior UAV Applications • Countermeasures • Computers, Power Modules • Radar Subsystems • Microwave Substrates AlBeMet Electronic Hardware
Slide 68: Optics - Avionics
Optics - Avionics Beryllium makes great visible light and IR optics. Advanced FLIR and targeting systems.
Slide 69: Airborne FLIR Applications
Airborne FLIR Applications Fighter Aircraft (all) Helicopter (all) UAV • Globalhawk Applications • SNIPER/ATP • Arrowhead • LOROP • IFTS • LANTIRN • EOTS (JSF) FLIR = Forward Looking Infrared
Slide 70: Satellite/Scientific (Space) Applications
Satellite/Scientific (Space) Applications Surveillance • Classified Strategic Missile Defense • Classified, SBIRS High and Low Communications • Classified Scientific Applications • JWST • NPOESS • GOES DMSP
Slide 71: Spitzer Telescope – All Beryllium Design Optics
Spitzer Telescope – All Beryllium Design Optics - Space
Slide 72: Missile Applications
Missile Applications Beryllium Sunshade and Optics Trident Strategic Missile Maintenance • Trident Upgrade – Current • Minuteman, Peacekeeper, Others Strategic Missile Defense • GBI/EKV • LEAP • Applications • Guidance Components • Optics • Electronic Substrates
Slide 73: Nuclear
Nuclear Nuclear Reactors Fusion Test Reactors: o Materion Brush Beryllium Products & Composites is baseline on all international reactor designs. JET – Current Program o Sales 2006-7: $7.9 M. UK ITER – “The next generation” o Developmental sales and research now. o Construction 2010’s France Weapons
Slide 74: Pebble Plant
Pebble Plant
Slide 75: Pebble Plant Expansion
Pebble Plant Expansion Pebble Plant estimate for construction: approximately $90 million Department of Defense (Managed @ WPAFB)
Slide 76: Materion – Integrated Beryllium Products Producer
Materion – Integrated Beryllium Products Producer Beryllium Reduction (“Pebbles”) Mining & Extraction – Utah Operations Vacuum Cast Ingot Chipping and Powdering Vacuum Hot Pressing (Billets) Precision Machined Mill Products Customer Orders Recycled Scrap and Chip Deactivated CY Source: DLA Stockpile
Slide 77: Reading Facility
Reading Facility
Slide 78: Reading Facility - Statistics
Reading Facility - Statistics 134 employees (104 hourly) 123,000 square feet of building space 42 Acres In operation since 1958
Slide 79: Reading Operations
Reading Operations Rolling Mill Hardening Wire Drawing Rod Straightening
Slide 80: Quality
Quality Quality Philosophy: Materion is dedicated to excellence in customer satisfaction by providing superior products and services. We improve the superiority of our products and services by continually reducing waste and variability in our processes. Quality Systems – Materion Plants and Service
Slide 81: Thank You
Thank You