Materion Corporation · NYSE:MTRN
Materion — Brush Engineered Materials — Emerging Growth Institutional Investor Forum 2006
24 slides from Materion's conference presentation, Jan 13, 2006
Slide 1: Emerging Growth Institutional Investor Forum
Emerging Growth Institutional Investor Forum January 17, 2006
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: Company Overview
Company: Brush Engineered Materials Inc. founded 1931, publicly traded since 1956 NYSE Ticker: BW Shares Outstanding: Approximately 19.3 million at 9/30/05 Market Cap: Approximately $305 million at 9/30/05 Component of: S&P Super Composite 1500 Russell 2000 S&P Small Cap 600 Annual Revenue: Approxim
Slide 4: Advancing the World's Technologies
Demanding applications requiring: - Strength - Reliability - Thermal & electrical - Miniaturization conductivity - Weight reduction - Corrosion resistance - Reflectivity Advancing the World's Technologies
Slide 5: End Uses
End Uses Magnetic & Optical Data Storage Industrial products Life enhancing devices Cellular phones and other wireless communications Notebook and network computers Electronic components in cars and trucks
Slide 6: Global Leader in High Performance Engineered Materials
Global Leader in High Performance Engineered Materials Note: Total YTD 2005 revenues were $400.6 million Q3 2005 YTD Revenue by Segment Q3 2005 YTD Revenue by Market Metal Systems Group Microelectronics Group 0.58 0.42 Other Telecommunications Automotive Magnetic and Data Storage Industrial Componen
Slide 7: Major Business Units
Brush Engineered Materials - Major Business Units WAM Other TMI Be Products Alloy East 0.37 0.07 0.09 0.08 0.39 West North WAM PVD Targets Electronic Packaging 37% Alloy Electronic Connectors Industrial Components 39% Be Products Defense/Aerospace Specialty Products 8% TMI Automotive Connectors Tele
Slide 8: Fully Integrated Beryllium Producer
Fully Integrated Beryllium Producer Bertrandite Ore Mining & Extraction Delta, UT Casting, Rolling & Finishing Elmore, OH Thin Gauge Rolling & Finishing Reading, PA Service & Distribution Centers Global Network
Slide 9: Strip Alloy Applications
Strip Alloy Applications (strength, conductivity, spring characteristics) Current Carrying Springs and Relays Integrated Circuitry Sockets Electrical and Electronic Connectors Air Bag Sensors Pressure Responsive Devices Fire Extinguisher Sprinkler Heads
Slide 10: 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 Undersea/Marine Housings for Telecom & Instr
Slide 11: Beryllium Products Applications
Beryllium Products - Applications (lightweight, strength, dimensional, stability) - - Optical mirrors for NASA space-based telescopes - - X-ray windows in medical, security and commercial imaging systems - - Diaphragms for commercial and concert quality speaker systems - - Infrared sensors for fight
Slide 12: Williams Advanced Materials
Williams Advanced Materials also has broad capabilities in precious and non-precious materials Comprehensive product line High purity / proprietary PVD targets Micro-electronic packaging materials Refining and related services
Slide 13: Williams Advanced Materials
Williams Advanced Materials also has broad capabilities in precious and non-precious materials Comprehensive product line High purity / proprietary PVD targets Micro-electronic packaging materials Strong end use markets Data storage Optical media Wireless / handsets Semiconductor
Slide 14: Williams Advanced Materials
Williams Advanced Materials also has broad capabilities in precious and non-precious materials Comprehensive product line High purity / proprietary PVD targets Micro-electronic packaging materials Strong end use markets Data storage Optical media Industry leading service and support Global sales and
Slide 15: Williams Advanced Materials - Packaging Material
Solder preforms and clad materials Hybrid Microelectronic Device Williams Advanced Materials - Packaging Material Products Products Markets Wireless, Photonics and Hybrid/ Traditional Microelectronic Devices Typical End-uses Cell phones, LEDs, fiber-optic networks, PC's, military electronics, avioni
Slide 16: Williams Advanced Materials - PVD Products
Cellular Phone (wireless) Sputtering Targets Williams Advanced Materials - Physical Vapor Deposition(PVD) Products Products Precious Metal Sputtering Targets and Evaporation Materials Precious Metal Refining Services Non-precious Metal Sputtering Targets and Evaporation Materials Markets Wireless IC
Slide 17: Global Sales and Distribution Network
Global Sales and Distribution Network Operations in the U.S. and ten foreign locations Recent expansion to Taiwan, China and Korea International sales are 33% and growing ?-------------- Asia / Pacific ------------? ? ---------------- Europe -------------- ? ? - Exports from USA -? Singapore Korea H
Slide 18: Capacity to Support Profitable Market Growth
Capacity to Support Profitable Market Growth $160 million invested between 1996 and 2001 Operating with significant available excess capacity Significant productivity gains in recent years
Slide 19: Annual Revenue: Historical
Annual Revenue: Historical In 2001, the telecommunications and computer market declined; In 2003, our revenue growth began to return to historical rates 2000 2001 2002 2003 2004 2005 564 473 373 401 496 529 Growth % 24% -16% -21% +8% +24% +4-8% est.
Slide 20: Annual Operating Profit (Loss) Compared to Revenue
Annual Operating Profit (Loss) Compared to Revenue: Historical ($ in millions) 2000 2001 2002 2003 2004 O.P. Revenue $23 ($14) ($23) ($9) $25 $564 $473 $373 $401 $496
Slide 21: Performance Improvement Initiatives
Our on-going performance improvement initiatives are focused on five key areas Expanding and diversifying the revenue base Improving operating efficiencies Reducing overhead costs Reducing debt Positioning for global market growth
Slide 22: Historical Gross Margin Trends
Margins have improved through cost reduction and productivity improvement initiatives Historical Gross Margin Trends Margin % Sales ($MM) 2000 2001 2002 2003 2004 0.21 0.14 0.13 0.18 0.22 564 473 373 401 496
Slide 23: Q-3 2005 Results and Outlook
Q-3 2005 Results and Outlook YTD ... hurt by weaker computer & telecom, automotive and defense markets. Also hurt by material cost increases. Helped by new product initiatives Fourth Quarter Outlook ... while automotive and defense remain sluggish, our other markets are gaining momentum Consumer ele
Slide 24: Strategic Highlights
Strategic Highlights Strong, diverse set of markets served Global market reach New products and services Niche oriented product offerings Acquisitions adding to growth and earnings Focus on operational excellence paying dividends Strong cash flow Strong balance sheet provides liquidity to support gr
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