Slide 1: Forward-Looking Statements
Forward-Looking Statements These slides 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 cause the actual results of the Company to differ mate
Slide 2: Annual Meeting of Shareholders May 7, 2008
Brush Engineered Materials Inc. Annual Meeting of Shareholders May 7, 2008
Slide 3: 2007: In Summary
2007: In Summary Execution . . . Milestones . . . Profitable Growth
Slide 4: 2007 - Results in Summary
2007 - Results in Summary Record sales, benefiting from new products and acquisitions Strongest earnings ever International sales up 57% Higher margins, stronger balance sheet, and added liquidity
Slide 5: Brush Engineered Materials
BRUSH ENGINEERED MATERIALS
Slide 6: Our shareholder returns have outpaced our benchmarks for 5 years
Our Shareholder returns have outpaced our benchmarks by a wide margin for 5 years ...
Slide 7: Our revenue growth is widespread and primarily organic
Our revenue growth is widespread and primarily organic ...
Slide 8: Income was at record levels
Income was at record levels ... Reported Results Operating Run Rate* *2005 excludes debt prepayment expense and the reversal of tax valuation allowance totaling $0.30 *2006 excludes income of $1.07 due to reversal of a tax valuation allowance *2007 excludes effect of a favorable litigation settlemen
Slide 9: Our balance sheet and financial flexibility is solid
Our balance sheet and financial flexibility is solid ...
Slide 10: 2008 began with some uncertainty
2008 began with some uncertainty ... Some momentum lost in late 2007 Set back in hard disk drive media market Prevailing macro economic environment
Slide 11: As the year has progressed, the outlook is encouraging
As the year has progressed, the outlook is encouraging ... Order entry patterns are healthy Backlogs are increasing No apparent signs of significant economic weakness Media is improving Expect another good year
Slide 12: Key Execution Initiatives
Key Execution Initiatives New products, applications and services Further global expansion Continued diversification of markets and technology base Augment growth through "smart" acquisitions Manufacturing excellence through Lean Sigma Build a winning team .. . . Fueled by a passion for change!
Slide 13: Growth Platforms - 2007
. SS Growth Platforms - 2007
Slide 14: Revenue by Region - 2007
: SS Revenue by Region - 2007
Slide 15: Growth Platforms: Williams Advanced Materials (WAM)
Growth Platforms Williams Advanced Materials (WAM) Expanding beyond head applications to media Massive shift to perpendicular magnetic recording Brewster, New York thin film operation expansion
Slide 16: Growth Platforms: WAM International expansion
Growth Platforms WAM International expansion Czech Republic facility opened Suzhou, China operation coming on stream Louny, Czech Republic June 2007
Slide 17: Growth Platforms: Technical Materials, Inc.
Growth Platforms Technical Materials, Inc. Technology processing center opened New rolling and specialized bonding capabilities Provides capacity for growth in computer, medical and alternative energy markets Lincoln, Rhode Island
Slide 18: Growth Platforms: Alloy Products
Growth Platforms Alloy Products Broadened growth platform - strip and bulk form Capturing great demand from fast-growing oil and gas, aerospace and heavy equipment markets New products - beryllium and non-beryllium based
Slide 19: Growth Platforms: Beryllium Products
Growth Platforms Beryllium Products New primary beryllium facility Groundbreaking mid-July Resume reliable supply of high quality beryllium New business model Offering customers fully engineered components
Slide 20: Growth Platforms: Seek additional unique acquisitions
Growth Platforms Seek additional unique acquisitions Techni-Met, Inc. - broadens our technology base and adds diversity into medical High level of intellectual property New source of value-add downstream capabilities High unique coating technology WAM targets at Techni-Met
Slide 21: We are a trusted growth partner to our customers
We are a trusted growth partner to our customers Engineering bench strength Deep reservoir of experience Perspective from breadth of work across customer base and markets Well tested focus on developing solutions
Slide 22: Ready for What's Next: LED lighting
Ready for What's Next New dimensions in LED lighting with WAM evaporation materials
Slide 23: Ready for What's Next: Connecting China and the U.S.
Ready for What's Next Connecting China and the U.S. for 2008 Olympics Trans-Pacific Express fiber optic line High strength undersea repeater housings Beijing National Stadium
Slide 24: Ready for What's Next: Beryllium Products
Ready for What’s Next Beryllium Products AlIBeMet® materials * Optical systems for: * Unmanned aerial vehicles. + Soldiers on the ground eS
Slide 25: Ready for What's Next: Technical Materials, Inc.
Ready for What's Next Technical Materials, Inc. Precision rolled stainless materials for improved drug delivery Relief to asthma sufferers
Slide 26: Ready for What's Next: Solar and other alternative energy
Ready for What's Next Solar and other alternative energy WAM, Alloy, Brush Ceramics, TMI Thin film PV solar CPV solar technology
Slide 27: Ready for What's Next: Electric vehicles
Ready for What's Next Alloy and TMI Products Driving performance in electric vehicles Tesla roadster 0-60 mph in 4 seconds 245 miles on a single charge
Slide 28: Outstanding Future Opportunities
Outstanding Future Opportunities Culture and depth Building future engine of profitable growth Value to our shareholders Deliver it from a winning team
Slide 29: Ready for what's next