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: Brush Engineered Materials Inc. Profile
Brush Engineered Materials Inc. Profile Publicly traded since 1956: NYSE-listed since 1972 Founded 1931 as Brush Beryllium Company, recently celebrated 75th anniversary Building off earlier pioneering technical work at Brush Laboratories Initial scope was development of commercial markets With onset
Slide 3: Brush Engineered Materials Inc. Profile
Brush Engineered Materials Inc. Profile A leading manufacturer of high performance specialty engineered materials and services ... an enabling materials technology company Four segments...with operations, service centers and major office locations in North America, Europe and Asia Serving long-term
Slide 4: Brush Engineered Materials - Core Competency
Brush Engineered Materials - Core Competency Collaborating with customers worldwide to solve material application challenges ... with a focus on enabling technology and services "Own" a Niche orientation ... non-commodity Focus on global growth and service Constantly looking ahead to realign product
Slide 5: Company Overview
Company: Brush Engineered Materials Inc. founded 1931, publicly traded since 1956 NYSE Ticker: BW Shares Outstanding: Approximately 20.4 million at 3/28/08 Market Cap: Approximately $540 million at 3/28/08 Component of: S&P Super Composite 1500, Russell 2000 S&P Small Cap 600 Annual Revenue: $956 mi
Slide 6: 2007 Recap
2007 Recap Record sales of $956 million, up 25% over 2006 Earnings per share of $2.59 compares to prior year's $2.45 Earnings per share of $1.79* compares to prior year's $1.38 excluding items that should not repeat Sales growth, adjusting for metal price increased 20% A new annual sales high, even
Slide 7: Q1 2008 Recap
Q1 2008 Recap Sales of $226 million Earnings per share of $0.22* Acquisition of assets of Techni-Met, Inc. for $87.4 million Techni-Met produces precision precious metal coated flexible polymeric films used in a variety of high-end applications, including diabetes diagnostic test strips. * Includes
Slide 8: Global Leader in High Performance Engineered Materials
Global Leader in High Performance Engineered Materials Q1 2008 Revenue by Market Other Appliance Aerospace & Defense Automotive Data Storage Industrial Components Telecommunication & Computer Medical 8%
Slide 9: Strong customer collaboration
Strong customer collaboration ... providing enabling technology solutions and service Materials that meet design challenges requiring - Strength - Reliability - Electrical conductivity - Miniaturization - Weight reduction - Corrosion resistance - Reflectivity - Thermal conductivity Targeting profita
Slide 10: Typical End Uses
Typical End Uses Data Storage Industrial products for Oil & Gas and Mining Medical Devices Cellular phones, i-Pods and other wireless communication devices Notebook computers & network servers Electronic components in cars and trucks Commercial Aerospace Defense
Slide 11: Applications - Aerospace
Applications - Aerospace Avionics/Electrical Systems (Alloy): Alloy 25 Airframe (Alloy): Alloy 25 Landing Gear Attachments (Alloy): Alloy 25 ToughMet(r) 3 Engine and Pylon Attachments (Alloy): Alloy 25 ToughMet(r) 3 Flight Control Mechanisms (Alloy): Alloy 25 ToughMet(r) 3 Horizontal Stabilizer & Ru
Slide 12: Applications - Oil & Gas
Applications - Oil & Gas Under Water Wellhead Equipment (Alloy): Brush Alloy 25 ToughMet(r) 3 Directional Drilling Equipment (Alloy): Brush Alloy 25 ToughMet(r) 3 Drill Bits (Alloy): Brush Alloy 25 ToughMet(r) 3 Structural Rig Components (Alloy): ToughMet(r) 3 Wellhead Control Equipment (Alloy): Bru
Slide 13: Applications - Cell Phones
Applications - Cell Phones I/O Connector Contacts (Alloy): Brush 60/17410 Alloy 25/190/290 Battery Contacts (Alloy): Brush 60 Alloy 25/190/290 Internal Antenna Contacts (Alloy): Brush 60/17410 Alloy 25/190/290 Grounding Clips and Audio Jacks (Alloy): Brush 60 Alloy 25/190/290 Micro Mezzanine Connect
Slide 14: Applications - Medical
Applications - Medical Cardiac Rhythm Management (TMI): Electronic Interconnects/Components Niobium/Titanium Electron Beam Weld Insulin Pump (Alloy): EMI Shielding Electrical Terminals in Connectors Mechanical Chips Connector Systems for equipotential grounding Seizure Control (WAM/TFT): Thin Film D
Slide 15: Investment Highlights and Strengths
Investment Highlights and Strengths Global Leader in High Performance Engineered Materials Unique Status as Fully Integrated Provider of Beryllium-Containing Products Broad Metallurgical Capabilities in Precious and Non-precious Metals Global Sales and Distribution Network Sales Based on End User Sp
Slide 16: Organized into Four Separate Reportable Segments
Brush Engineered Materials Inc. Organized into Four Separate Reportable Segments Advanced Material Technologies and Services Advanced Material Technologies and Services consists of Williams Advanced Materials Inc. (WAM) Specialty Engineered Alloys The Specialty Engineered Alloys segment consists of
Slide 17: Advanced Material Technologies and Services
Advanced Material Technologies and Services Q1 2008 Sales: $120.7 million $120.7 million; 53% Precious metal and specialty alloys for high reliability applications Products include precious and non-precious metal vapor deposition targets, frame lid assemblies, clad and precious metal preforms, high-
Slide 18: Specialty Engineered Alloys
Specialty Engineered Alloys Q1 2008 Sales: $71.3 million $71.3 million; 32% Copper and nickel-based alloy materials, most of which incorporate beryllium Strip products are used in electronic connectors including PDA's, wireless communications equipment, notebook and network computers and automotive
Slide 19: Beryllium and Beryllium Composites
Beryllium and Beryllium Composites Q1 2008 Sales: $13.4 million $13.4 million; 6% Pure beryllium and aluminum-beryllium composites for high-performance applications, principally for medical, space and defense applications where stiffness, strength, lightweight, dimensional stability, reflectivity an
Slide 20: Engineered Material Systems
Engineered Material Systems Q1 2008 Sales: $17.7 million $17.7 million; 8% Engineered material systems, including clad, plated and electron beam welded metals used in demanding connector applications Combines precious and non-precious metals in strip form for use in complex electrical components for
Slide 21: Fully Integrated Beryllium Producer
Fully Integrated Beryllium Producer Beryllium and beryllium alloys are critical to many high performance applications Strong Lightweight Good formability Operate the only active bertrandite ore mine in the developed world 7,500 acres in Juab County, Utah Approximately 100 years of proven reserves Be
Slide 22: Key Financial Statistics
Key Financial Statistics $ in millions 2004 2005 2006 2007 Sales $496.3 $541.3 $763.1 $955.7 EBIT 25.0 19.5 43.8 84.5 Interest 8.4 6.4 4.1 1.8 Taxes 1.1 (4.7) (9.9) 29.4 EPS 0.86 0.92 2.45 2.59 G.P.% 22.4% 20.3% 21.2% 20.6% O.P.% 5.0% 3.6% 5.7% 8.8% Depreciation & Amort. 21.2 21.7 24.6 23.9 Capital
Slide 23: Sales history and growth rates
In 2001, the computer and telecom market decline drove sales back to mid-90's levels In 2003, growth began to return to historical rates In 2004-2007 growth accelerated 92 93 94 95 96 97 98 99 0 1 2 3 4 5 6 7 Sales 265 295 346 370 376 434 410 456 564 473 373 401 495 541 763 956 % Growth 0.11 0.17 0.
Slide 24: Historical Revenue by Quarter
Historical Revenue by Quarter 2003 2005 2004 2006 2007 2008
Slide 25: Positive Market Trends
Positive Market Trends Electronic component manufacturers are being driven by end user demands to produce products that are smaller, lighter and faster Increased electronic component performance characteristics require materials that have enhanced mechanical, electrical and thermal properties Growin
Slide 26: Capacity to Support Profitable Market Growth
Capacity to Support Profitable Market Growth Operating with available excess capacity in Alloy Products Minor debottlenecking investments are required WAM's Brewster, New York facility doubled its capacity in 2007 Second phase of WAM's Brewster, New York facility expansion to be completed in 2008 We
Slide 27: Value creation initiatives in three key areas
Our on-going value creation initiatives are focused in three key areas Growth Expanding and diversifying the revenue base Targeting profitable niche growth applications in growing markets New product innovation and service Ongoing global expansion Strategic acquisitions, fast accretion Margin Improv
Slide 28: New Products - Growing Applications in Growing Markets
New Products - Growing Applications in Growing Markets (all >10% annual growth expected) ... examples Product Market Driver Division PVD Magnetic Hard Disk Drive Increase Storage WAM Media capacity PVD - UMB Consumer Electronics Miniaturization WAM PVD - Evap Pro Compound Semi- Miniaturization WAM c
Slide 29: Balance Sheet
Balance Sheet ($ in millions) 2000 2004 2005 2006 2007 Balance Sheet Debt $128.4 $ 72.5 $57.2 $48.9 $35.5 Debt to Debt Plus Equity 36% 26% 21% 15% 9% *2000 Balance Sheet debt includes major equipment lease **Note - Excludes precious metal consignment and other leases of: $18.9 $30.2 $55.5 $72.1 $80.
Slide 30: Segment Sales Review
Segment Sales Review 1Q 2006 2007 2008 $ % $ % $ % Advanced Material Technologies and Services $343.4 45% $519.9 54% $120.7 53% Specialty Engineered Alloys 275.6 36% 290.0 30% 71.3 32% Beryllium and Beryllium Composites 57.6 7% 60.5 6% 13.4 6% Engineered Material Systems 68.7 9% 70.9 7% 17.7 8% Othe
Slide 31: Segment Earnings
Segment Earnings 1Q 2006 2007 2008 Advanced Material Technologies and Services $30.5 $59.4 $5.3 Specialty Engineered Alloys 7.9 7.6 0.7 Beryllium and Beryllium Composites 7.4 7.8 0.2 Engineered Material Systems 2.7 4.7 1.4 Other (4.7) 5.0* 0.4 TOTAL $43.8 $84.5 $8.0 * The Other segment earnings of $
Slide 32: Organized into Four Separate Reportable Segments
Advanced Material Technologies and Services Specialty Engineered Alloys Beryllium and Beryllium Composites Engineered Material Systems Brush Engineered Materials Inc. Organized into Four Separate Reportable Segments
Slide 33: WAM Vision
WAM Vision Globally Recognized High Quality/Technology Supplier of Products and Services for "State Of The Art", Emerging and Leading Edge Markets and Industries. Williams will Create a "Unique" Business Model with its Central Focus being to Relentlessly Strive for Product Differentiation through a
Slide 34: What We Do
What We Do Williams Advanced Materials develops, manufactures and markets materials, thin film deposition technology and services of unique value for the Magnetic and Optical Data Storage, Medical, Wireless, Photonics, Semiconductor, Optics, Security, Hybrid Microelectronics, Defense and Performance
Slide 35: Sales History
Sales History 1990 1994 1999 2004 2005 2006 2007 2008 East 38 72 110 168 218 344 520 2008 (Q1) $122.3MM
Slide 36: Revenue by Market
Revenue by Market Magnetic Data Storage Optics & Security Semiconductor Wireless and Photonics Shield Cleaning Services Solar Traditional Micro. Optical Data Storage Medical Other Thin Film Services Refining 8 7.5 4.5 16 6.5 2 9.5 2.5 12 15 6 10.5 Q1 - 2008
Slide 37: 2008 Business Structure
WAM Corporate Thin Film Products Electronic Packaging Products 2008 Business Structure Thin Film Services Shield Cleaning Services Specialty Inorganic Materials Techni-Met, Inc. Latest Acquisition
Slide 38: Product Mix
Product Mix 2007 Thin Film Deposition Inorganic Services i 10% Refining 0% Shield Cleaning Services 6% Electronic Thin Fim Packaging Materials Materials 64% 6% “Williams is SS
Slide 39: Product Mix 2003
Electronic Packaging WAM PVD Think Film Products Refining Dental/Other 30 25 28 8 9 Product Mix 2003
Slide 40: Augmentation History
Augmentation History Williams Precious Metals Acquired in 1987 Advanced Materials Technology 1989 Hydrostatics Inc. 1994 Pure Tech Inc. 1998 Wheatfield ( Greenfield) 1998 Semi Alloys Inc 2001 Honeywell FLA (Technology) 2003 OMC Scientific Ireland 2004 Thin Film Technology 2005 CERAC inc. 2006 Suzhou
Slide 41: International/Domestic Revenue
International/Domestic Revenue 2007 Intl. U.S. 31 69
Slide 42: Thin Film Products
Thin Film Products PVD Materials Precious Metal Target Materials Non-Precious Metal, Cermets, Ceramics Vacuum Induction Melting Hot Pressing Vacuum Hot Pressing Hot Isostatic Pressing EVAPro(tm) Grade Evaporation Materials Localized Target Bonding Chamber Services Shield Cleaning and Conditioning Ar
Slide 43: Packaging Materials
Packaging Materials FLA/Combo-Lid(r) Seam Seal/Microlid(tm) Preforms Clad Materials Braze Materials Ni Alloys Dental Packages (Zentrix) Buffalo Singapore Wheatfield Buellton WAM Taiwan WAM Philippines
Slide 44: WAM Headquarters
WAM Headquarters Buffalo, NY USA - 100,000 Sq. Ft. overall, 6,500 Sq. Ft. of clean-room, state-of-the-art machining/ milling/rolling/stamping/ cladding centers, target bonding, high purity refining/recycling, metals casting & automated plating Full analytical capabilities, product Research & Develop
Slide 45: Specialty Alloys Operations
Specialty Alloys Operations Wheatfield, NY 30,000 Sq. Ft. with volume vacuum casting, rolling, annealing, powder atomizing and machining. 10 acres for expansion. Shield metal recovery and cleaning / Clean room packaging
Slide 46: Williams Thin Film Products Operations
Williams Thin Film Products Operations Brewster, NY USA - 80,000 Sq. Ft. with vacuum melting, hot-pressing, milling, hot & cold rolling, automated machining, grinding, powder metallurgy lab, particle sizing and target bonding capabilities. Dedicated R&D staff and capabilities to support rapid new pr
Slide 47: Techni-Met
Techni-Met Windsor, CT 2 facilities - total of 75,000 sq. ft. 48 employees - two (2) shift operations. High Value Added Precision Coated Materials. Continuous Vacuum Deposition of Inorganic Materials onto Rolls of Flexible Polymeric Films and other Substrates.
Slide 48: Far East Operations
Far East Operations Singapore Target bonding, bonding wire production, Combo-Lids(r). assembly Taoyuan County, Taiwan Target bonding, evaporation materials & bonding wire. Subic Bay, Philippines Combo-Lids(r), low-cost lids and preform - assembly, inspection and packaging. WAM TAIWAN WAM Far East Lt
Slide 49: Suzhou - China
Suzhou - China Suzhou, China 20,000 Sq ft. Target & Evaporation materials manufacturing, Target bonding services, Distribution, Warehousing, Sourcing, MgF manufacturing and packaging Located near Shanghai Airport and close to many technology centers located in Eastern China. Markets Serve: Semicondu
Slide 50: Limerick, Ireland - OMC Scientific
Limerick, Ireland - OMC Scientific, Ltd. Subsidiary of WAM Provides precision parts cleaning and reconditioning services for film Physical Vapor Deposition (PVD) customers in Europe. Unique technology applied to opportunities in North America and Asia. Efforts focused in the semiconductor, magnetic
Slide 51: OMC- Czech
OMC- Czech Louny, Czech Republic Provides precision parts cleaning and reconditioning services for film Physical Vapor Deposition (PVD) customers in central and eastern Europe State of the art cleaning, stripping and packaging operations Machining capabilities for Optical Media and other PVD segment
Slide 52: Thin Film Technology (TFT)
Thin Film Technology (TFT) Buellton, CA Subsidiary of WAM Thin film coating and substrate patterning. Visi-Lid(tm) supply chain management. Capabilities: Electron Beam Evaporation, DC/RF Magnetron Sputtering, Photolithography (Substrate Patterning), Dicing, Tooling design, In House Machine shop
Slide 53: CERAC
CERAC Milwaukee, WI Subsidiary of WAM Physical Vapor Deposition (PVD) materials for opthalmic, optic and performance applications. Specialty Inorganic Materials Unique technologies in chemical and powder processing
Slide 54: Global Service and Support
Global Service and Support Regional Offices (Sales and Applications Engineering support) Buffalo, NY Tokyo, Japan Brewster, NY Taoyuan, Taiwan Boston, MA Singapore Tucson, AZ Manila, Philippines Santa Clara, CA London, England Buellton, CA Seoul, Korea Milwaukee, WI Limerick, Ireland Dallas, Texas S
Slide 55: New Product and Technology Development
New Product and Technology Development Optical Filters Bio-Sensors Materials for Thin Film PV (Solar): Cu(I)Ga(S), CdS, CdTe, TCO Materials, etc Ag Alloys for Solar backside contact New Cleaning Methods for Shield Cleaning Magnetic Data Storage Media Materials; Oxide Gen II and Eco-Ru Head Materials
Slide 56: Sputtering Targets/Evaporation Materials
Sputtering Targets/ Evaporation Materials (Precious Metals, Alloys, Non-Precious Metals, Alloys, Magnetic Materials, Heusler Alloys and Oxides) Chamber Services complement materials offering. Key Markets - Magnetic Head and Media Example - Hard Disk Drive PMR Material Stack
Slide 57: Key Markets - Wireless and Photonics
Key Markets - Wireless and Photonics Thin Film and Packaging materials for varied wireless and photonic applications including RF Power Amplifiers, HBT's, SAW Devices, Light Emitting Diodes (LEDs), Laser Recorders and Micro Electro Mechanical Systems (MEMS)
Slide 58: Key Markets - Thin Film and Electronic Packaging
Key Markets - Thin Film and Electronic Packaging Materials & Services Night Vision (Defense) Thin Film Deposition Services Coated Infrared Optics Hermetic Windows for FPA Packaging Flexible Interconnects Electronic Packaging Materials Precision Machined Components High Purity Solder Materials Willia
Slide 59: Key Markets - Semiconductor Packaging
Key Markets - Semiconductor Packaging High reliability semiconductor packaging materials. Applications focused in space, military and satellite market segments.
Slide 60: Key Markets - Semiconductor Wafer Fabrication
Key Markets - Semiconductor Wafer Fabrication Thin film materials and chamber services for silicon wafer and UBM (Under Bump Metallization) technologies. Numerous commercial and military microelectronic applications.
Slide 61: Optics Markets
Optics Markets Security ZnS, MgF2, SiO2 Laser optics ThF4, YF3, SiO2, Ge Communications SiO2, Ta2O5, Nb2O5, LaB6 Cathodes Ophthalmics SiO2, Al2O3, Ti3O5, Cr-SiO
Slide 62: Opto-Electronic Markets
Opto-Electronic Markets Resistor material for hybrid circuits Cr-Si, W-Ti Projection Display Products HfO2, Cr, SiO2, MgF2 Clear conductive coatings ZnO Data Storage Photovoltaics (Solar) CdS, CdTe, Cu-In-Ga-Se
Slide 63: Specialty Inorganics Markets
Specialty Inorganics Markets Protective coatings for aerospace applications TiB2, B4Si Defense Applications Semiconductor gas precursors Zn3As2 Data Storage Medical devices V2O5 Specialty Batteries Li2O, CoS2
Slide 64: Key Markets - Defense Applications
Key Markets - Defense Applications Aerospace Thin Film Technology Large Area Coating of Irregular Shaped Flight Components Coatings on Composite Materials Thin film hybrid circuits Specialty Engineered Films Williams Advanced Materials Hermetic Combo Lids High Purity Solder Materials Precision Machi
Slide 65: Key Markets - Medical (Sensor) Applications
Key Markets - Medical (Sensor) Applications Thin Film Deposition Services Batch Sensor Electrode Manufacturing Roll to Roll Strip Sensor Manufacturer Metal Deposition and Precision Slitting Williams Thin Film Products Sputter & Evaporation Materials for Sensor Manufacturing Refining and Recovery Shi
Slide 66: Photovoltaic Solar Applications
Photovoltaic Solar Applications Thin Film Materials Targets and Evaporation CIG(S), CdTe, CdS, AZO, GZO, Ag, Ti, Al, CuGa Thin Film Deposition Services TCO Coatings (ITO) R&D Thin Film Stack Development Chamber Services PVD, PECVD Shield Sets Added Value Services
Slide 67: Global Chamber Services Value Package
Global Chamber Services Value Package SHIELD CLEANING SERVICE DESCRIPTION STRIPPING SURFACE TEXTURIZING FINAL CLEAN AND CLEAN ROOM PACKAGING Ultrasonic cleaning with particle count monitoring Drying a.k.a. baking a.k.a. outgassing Clean room packaging These steps must take place in a class 100 clean
Slide 68: Chamber Services/Refine
Chamber Services/Refine Chamber Services/Refine
Slide 69: Thin Film Services Capabilities & Markets
Thin Film Services Capabilities & Markets Production Capability Thermal Evap. & E-Beam Evaporation IBD E Beam Evap. DC/RF Sputtering Comb. Evap/Sputter TF Hybrid Substrates Photolithography Specialty Coatings Dicing / Singulation Electroplating Markets Served Optics A/R Infrared Long & Mid Telecom D
Slide 70: Customer Service Value
Customer Service Value "Packaging" Niche Exploitation Flexible Manufacturing Cost Model Product Breadth Global Presence Reputation Distinctive Competencies Wireless/Photonics Semiconductor Fab MEMS Optical Media Photovoltaics Nanotechnology UBM / FCCL Semiconductor Pck. Magnetic Data Storage Memory
Slide 71: End Product Examples Utilizing Thin Film Deposition Materials
End Product Examples Utilizing Thin Film Deposition Materials
Slide 72: New Horizons
New Horizons TDP, Solar----Rotatable Targets FCCL Medical Sensors Nano Materials ( Powders) Expanded Global Chamber Services Optical Sensors Fabrication Solar Energy-packaging, inorganic compounds, metal/ alloy solutions
Slide 73: Organized into Four Separate Reportable Segments
Advanced Material Technologies and Services Specialty Engineered Alloys Beryllium and Beryllium Composites Engineered Material Systems Brush Engineered Materials Inc. Organized into Four Separate Reportable Segments
Slide 74: Brush Specialty Engineered Alloys & Brush Resources Vision
Provide technical expertise and flexible services to deliver value through innovative, practical engineered material solutions. Our products and services coupled with our global distribution and logistics network are relied upon by our customers making us their trusted growth partner. Brush Specialt
Slide 75: Brush Specialty Engineered Alloys & Brush Resources Mission
Safely and reliably provide the highest quality, innovative products and services, fast and on-time to all customers, when they want them at the lowest possible cost. Brush Specialty Engineered Alloys & Brush Resources Mission
Slide 76: Alloy Products Operations Strategy-Lean Sigma
Alloy Products Operations Strategy-Lean Sigma Safety practices to provide an injury and illness free workplace Lean Manufacturing to reduce cycle times, further increase capacity, and provide industry leading service to our customers Six Sigma to provide industry leading product quality and to reduc
Slide 77: Sales Based on End User Specifications
Sales Based on End User Specifications Component Fabrication Component Manufacturing Sourcing Demand Generator Distribution Sales Marketing Brush Wellman Inc. Specifications Products
Slide 78: Brush Specialty Engineered Alloys
Brush Specialty Engineered Alloys Product families: Strip products include thin gauge precision strip and thin diameter rod and wire. These products provide a combination of high strength, formability and electrical conductivity for connectors, contacts, switches, relays and shielding used in mobile
Slide 79: Alloy Products Revenue by Market Q1 2008
Appliance Automotive Computer & Telecom Aerospace & Defense Industrial Process Other 9900000 8100000 24600000 6200000 13700000 Alloy Products Revenue by Market Q1 2008
Slide 80: Strip Alloy Applications
Strip Alloy Applications (strength, conductivity, spring characteristics) Automotive electronics Appliance switches Pressure Responsive Devices Fire Extinguisher Sprinkler Heads EMI Shielding Current Carrying Springs and Relays Integrated Circuit Sockets Electrical and Electronic Connectors in Mobil
Slide 81: Strip Products - Strategy
Strip Products - Strategy Maintain focus on major end-use markets Computer Telecommunications (mobile & Infrastructure) Automotive Appliance Military Medical Defend leadership in traditional alloy strip, rod & wire Reduce total cost of manufacture to allow penetration of mid-range alloy applications
Slide 82: Strip Products Strong Value Proposition
Strip Products Strong Value Proposition (Formability, Conductivity, Stress Relax) $ per Pound Performance Parameter High Low Traditional Copper- Beryllium Alloys 390 Brush 60 Alloy 174 CuNiSi HS Phos Bronze Phos Bronze Brass Brush Value Proposition Unique, high-performance materials Technical design
Slide 83: Bulk Alloy Applications
Bulk Alloy Applications (strength, corrosion resistance, non-galling, conductivity) Aircraft Bushings Heavy Equipment Bearing and Wear Applications Oilfield well drilling, completion and production equipment Plastic Injection & Blow Molds Power Generation Tooling for Metalworking Undersea/Marine Hou
Slide 84: Bulk Products - Strategy
Bulk Products - Strategy Maintain focus on traditional end-use markets Aerospace Oil & Gas Plastics Power Generation Resistance Welding Undersea Introduce new alloys or product forms to meet needs of targeted market opportunities Focus on new non-traditional growth markets Bearings, Heavy Equipment
Slide 85: MoldMAX Alloys for the Plastics Industry
MoldMAX(r) Alloys for the Plastics Industry Value Proposition Provides molders with 20-40% increase in productivity Capital avoidance due to increased productivity Enables improved quality of molded parts ROI < 3 months Technical advantages Hardness of steel with the thermal conductivity of copper F
Slide 86: Lorain Casting Facility Spinodal and EquaCast Technology
Lorain Casting Facility Spinodal and EquaCast(r) Technology-Winning! Strength and hardness is comparable to copper beryllium products Thermal conductivity The value proposition differentiates: Corrosion resistance Superb tribological properties (low friction, excellent wear resistance) adding value
Slide 87: ToughMet Outlasts Conventional Bearing Materials
ToughMet(r) Outlasts Conventional Bearing Materials in 300-ton Mining Truck Steering Test 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 Hardened Steel 0 0.009 0.013 0.0375 Aluminum Bronze 0 0.0075 0.009 0.01 0.011 0.011 0.0125 0.015 0.016 0.019 0.02 0.022 0.025 0.0275 0.03
Slide 88: ToughMet Bushings Protect Steel Mating Parts
ToughMet(r) Bushings Protect Steel Mating Parts. Example: Lubrication failure on bulldozer undercarriage Left side pin after 500 running hours against ToughMet 3 CX105 bushing. Right side pin after 500 running hours against hardened steel (HRC 50) bushing. Pin hardness = HRC60. Steel pin damaged by
Slide 89: ToughMet Industrial Components Results
ToughMet(r) Industrial Components Results:
Slide 90: Significantly Higher Durability Confirmed for ToughMet
Significantly Higher Durability has been Confirmed for ToughMet(r)
Slide 91: Brush International, Inc.
Brush International, Inc. Brush International Inc. is a wholly owned subsidiary of Brush Engineered Materials Service centers in Germany, England, Japan and Singapore Representative offices in Korea, China and Taiwan Primary focus on the distribution of alloy products while providing local support t
Slide 92: Global Sales and Distribution Network
Global Sales and Distribution Network Brazil Taipei,Taiwan Singapore Hong Kong Tokyo, Japan UK & Ireland France Germany Italy Detroit, MI Chicago, IL Los Angeles, CA Shanghai,China Houston, TX Canada Mexico Seattle, WA Switzerland Korea Philippines Cleveland, OH Global Reach...... Local Service
Slide 93: Organized into Four Separate Reportable Segments
Advanced Material Technologies and Services Specialty Engineered Alloys Beryllium and Beryllium Composites Engineered Material Systems Brush Engineered Materials Inc. Organized into Four Separate Reportable Segments
Slide 94: Beryllium and Beryllium Composites
Brush Beryllium Products Brush Ceramic Products Beryllium and Beryllium Composites Comprises two business units
Slide 95: Brush Beryllium Products
Brush Beryllium Products Products Beryllium Metal - One of the lightest metals known - Family of vacuum hot and hot/cold isostatically pressed powder-derived metals AlBeMet? - Family of lightweight alloy composites - Extruded, rolled sheet and hot isostatically pressed powder-derived metals
Slide 96: Brush Beryllium Products - Cont.
Brush Beryllium Products Products - Cont. E-Materials - Family of low expansion, lightweight electronic packaging materials - Composites of beryllium metal and beryllium oxide Beryllium Oxide/ Chemicals - Ceramic-grade beryllium oxide powder - Specialty beryllium-containing chemicals
Slide 97: Brush Beryllium Products Facilities
Brush Beryllium Products Facilities Elmore, Ohio Fremont, California
Slide 98: Key Product Attributes
Brush Beryllium Products Key Product Attributes Be/AlBeMet(tm) Light Weight (Density) High Stiffness (Elastic Modulus) High Thermal Conductance/Capacity Low Thermal Expansion Be Transparent to X-Rays Neutron Reflector
Slide 99: Primary Competition...Alternative Materials
Brush Beryllium Products Primary Competition...Alternative Materials Organic Composites (e.g. Carbon epoxy) Silicon carbide Metal Matrix Composites (e.g. Al - silicon carbide) Pyrolytic graphite Aluminum (high strength grades)
Slide 100: Major Defense/Aerospace Applications
Major Defense/Aerospace Applications for Brush Beryllium Products Optics Optical substrate and support structure for visual and infrared target acquisition systems (fighter aircraft, helicopters, unmanned aerial vehicles, tanks), surveillance systems and astronomical telescopes. Satellites Structure
Slide 101: Major Commercial Applications
Major Commercial Applications for Brush Beryllium Products X-ray Windows Radiographic tube components for ? medical diagnostic (x-ray, mammography, CAT-scan), ? industrial and ? scientific equipment. Optical Scanners Mirrors for laser scanners used in reprographic and other high-performance laser ap
Slide 102: Major Applications, New Products and Platforms
Major Applications, New Products and Platforms Brush Beryllium Products Product Market New AlBeMet Products Defense Fabricated Products Defense Acoustic Speakers High grade Be foil Medical x-ray
Slide 103: Brush Ceramic Products
Beryllium Products Brush Ceramic Products Located in Tucson, Arizona Products Ceramic substrates used in commercial and military packaging applications Ceramic laser bores for gas lasers used in medical and industrial applications Machined ceramic components used in military, oil and gas, semiconduc
Slide 104: Beryllium and Beryllium Composites 2008 Revenue by Market
Beryllium and Beryllium Composites 2008 Revenue by Market 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 20.4 27.4 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Telecom/Computer Defense/Aerospace Industrial Componenst Medical Other Nuclear Reactor 0.086 0.5 0.16 0.17 0.07 0.01
Slide 105: International/Domestic Revenue 2008
International/Domestic Revenue 2008 Intl. U.S. 23 77 Beryllium and Beryllium Composites International 23% Domestic 77%
Slide 106: Organized into Four Separate Reportable Segments
Advanced Material Technologies and Services Specialty Engineered Alloys Beryllium and Beryllium Composites Engineered Material Systems Brush Engineered Materials Inc. Organized into Four Separate Reportable Segments
Slide 107: Technical Materials Inc. 2008
Technical Materials Inc. 2008 "Providing engineered metal strip products to leading technology manufacturers around the world."
Slide 108: Market History
Market History Founded in 1968, TMI's continuous clad and inlay technology produced high-reliability connector and switch materials for the telecom industry. Today TMI's products are used throughout the world by virtually all major technology markets. As a leader in reel-to-reel composite metals eng
Slide 109: TMI Process Technologies
TMI Process Technologies Cladding Inlay Micro Laminates Electroplating Gold, Silver, Base Metals Selective and Overall Coatings Profiling Milling Skiving Continuous Electron Beam Welding Lead-Free Solder Coatings
Slide 110: TMI Sales Growth
TMI Sales Growth 2001 2002 2003 2004 2005 2006 2007 Sales 50 45 42.8 55.7 50.8 71.7 72.4 $ in millions
Slide 111: International/Domestic Revenue 2007
International/Domestic Revenue 2007 Intl. U.S. 0.09 0.91 International 12% Domestic 88%
Slide 112: Our Vision
Our Vision To be a leader in creating innovative engineered material solutions and services that make our customers competitive in global markets.
Slide 113: Technology Leader
Technology Leader Quality ISO 9001-2000, Certified by Bureau Veritas ISO 14001, Certified by TUV Unique Tolerance Capabilities Extensive Digital and Vision-Controlled Processing Engineering Metallurgical Design Technical Customer Support
Slide 114: Our Major Markets
Our Major Markets Automotive Consumer Electronics Computer Semiconductor Energy Medical Automotive Telecom Computer Medical Other 47 18 26 4 5 Other 4% Telecom 14% Computer 28% Automotive 50% 2007 Medical 4%
Slide 115: Strategic Growth Markets
Strategic Growth Markets Computer Hard Drives Medical Devices Energy Systems
Slide 116: Application: Computer Hard Drive
Application: Computer Hard Drive Suspension Materials Stainless/Aluminum Composites High Stiffness-to- Weight Performance Supports Higher Data Density Media
Slide 117: Application: Medical Implant Materials
Application: Medical Implant Materials Electron Beam Welded and Clad Interconnects Niobium, Tantalum, Titanium, and Stainless Steel Systems
Slide 118: Application: Automotive
Application: Automotive High-Reliability Connector and Leadframe Materials Safety Devices Engine Performance Sensors Hybrid Components
Slide 119: Application: Consumer Electronics
Application: Consumer Electronics Leadframes for Digital Camera Sensors Cell Phone Passive Components
Slide 120: Application: Energy
Application: Energy High-Performance Battery Materials Solar Cell Interconnects High-Temperature Fuel Cell Clad Materials
Slide 121: 2008 Growth Strategy
2008 Growth Strategy Continued Expansion of Electroplating through Process Technology Advantages Focus on Clad and Electron Beam Weld Product Development in High-Growth Niche Markets Continue to Expand TMI's Presence in Europe and the Far East Continued emphasis on New Product and Market Development
Slide 122: Beryllium Health and Safety
Beryllium Health and Safety Improved worker protection programs in place Rates of sensitization down among new workers Strong focus on regulations related to beryllium exposure Brush has continued to make progress on issues related to beryllium health and safety
Slide 123: Litigation
Litigation Total Plaintiffs Total Cases Pending (including spouses) 03/30/07 12 52 06/29/07 10 32 09/28/07 10 32 12/31/07 9 31 3/28/08 9 31
Slide 124: Litigation
Litigation In the first quarter 2008, there were no changes in the case load from end of 2007. There are currently nine cases pending, including two purported class actions. No cases were filed, settled or dismissed during the quarter. Our caseload and number of plaintiffs will vary from quarter to