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: Overview: Company Facts and Key Statistics
Company: Brush Engineered Materials Inc. founded 1931, publicly traded since 1956 NYSE Ticker: BW Shares Outstanding: Approximately 20.2 million at 7/3/09 Market Cap: Approximately $314 million at 7/3/09 Component of: S&P Super Composite 1500, Russell 2000 S&P Small Cap 600 Annual Revenue: $910 mill
Slide 6: BEM - the transformation
BEM - the transformation From Metals & Mining through Specialty Metals to Advanced Materials From an "old industrial" to a "new age technology" company From single digit to double digit growth
Slide 7: BEM - the transformation
BEM - the transformation Broaden the base...focused on > GDP opportunities new technologies new markets new products expanded geography Target fastest growing segments of fast growing markets First Priority.....organic growth Second Priority...."manageable" acquisitions All while building and mainta
Slide 8: BEM - the transformation: Investments
BEM - the transformation Investments...prioritizing a targeted business model low capital intensity...both working capital and reinvestment capital high IP....technology driven business non-commodity products...high margins good growth potential in >> GDP opportunities Acquisition goals Accretive wi
Slide 9: BEM - the transformation
BEM - the transformation 2001 Sales YTD 2009 Sales Non- Berylium Beryllium 44% 35 Beryllium 56% Non- Beryllium 68% 3 BESH romae
Slide 10: 2008 Recap
2008 Recap Sales of $910 million Diluted earnings per share of $0.89* Acquisition of assets of Techni-Met, Inc. for $86.5 million Techni-Met produces precision precious metal coated flexible polymeric films used in a variety of high-end applications, including diabetes diagnostic test strips Contrac
Slide 11: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Fourth Quarter Ended Fourth Quarter Ended Twelve Months Ended Twelve Months Ended Dec. 31, 2008 Dec. 31, 2007 Dec. 31, 2008 Dec. 31, 2007 GAAP Diluted EPS ($0.16) 0.60 $0.89 $2.59 Benefit on sale of ruthenium inventory 0.00 0.00 0.00 (0.70) Lower of cost
Slide 12: Q-2 2009 Recap
Q-2 2009 Recap Revenue of $174 million or an increase of 29% from Q1 2009 Revenue improvement is primarily due to increase in demand from the consumer electronics-oriented markets Sales for Q2 and YTD 2009 were down 29% and 35%, respectively, as compared to the same periods last year Net loss was $(
Slide 13: Strength in Challenging Times
Strength in Challenging Times Balance Sheet Revolver $240 mm committed facility, matures November 2012 More than $100 million in availability Debt During Q2 2009, debt was reduced by $14.3 million and cash increased by $8.1 million, significantly improving the balance sheet
Slide 14: Global Leader in High Performance Engineered Materials
Global Leader in High Performance Engineered Materials Q2 2009 Revenue by Market
Slide 15: 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 16: Typical End Uses
Typical End Uses Data Storage Industrial products for Oil & Gas and Mining Medical Devices Cellular phones, i-Pods(tm) and other wireless communication devices Notebook computers & network servers Electronic components in cars and trucks Commercial Aerospace Defense
Slide 17: 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 18: Applications - Photovoltaic (Solar)
Applications - Photovoltaic (Solar) Technology: Amorphous Silicon (a-Si, tandem and multi- junction) Thin Film (PVD) Materials Silicon based photovoltaic cells Front and back contact layers TCO Transparent Conductive Oxide layers Technology: Cadmium Telluride (CdTe) Thin Film (PVD) Materials Cadmium
Slide 19: 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 MWD, LWD, MPT Systems Drill Bits (Alloy): Brush Alloy 25 ToughMet(r) 3 Structural Rig Components (Alloy): ToughMet(r) 3 Wellhead Control
Slide 20: 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 21: 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 22: Strategic Highlights
Strategic Highlights The Company is well positioned; strong balance sheet and revolver capacity to operate in this severe economic environment and to take advantage of strategic opportunities as they arise Strong, diverse set of markets served Global market reach New products and services ... a cult
Slide 23: Vision - Mission - Values
Vision - Mission - Values Vision We will be a leader in creating innovative engineered material solutions and services that make our customers competitive in global markets Mission ...in support of our vision: We bring value to our customers, globally, through innovative technology, service, and col
Slide 24: 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) and Zentrix Technologies Inc.* Specialty Engineered Alloys The Specialty Enginee
Slide 25: Advanced Material Technologies and Services
Advanced Material Technologies and Services YTD Q2 2009 Sales: $192.3 million $192.3 million; 62% Precious, non-precious and specialty metal products for high reliability applications Products include precious and non-precious metal vapor deposition targets, frame lid assemblies, clad and precious m
Slide 26: Specialty Engineered Alloys
Specialty Engineered Alloys YTD Q2 2009 Sales: $78.1 million $78.1 million; 25% 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 automot
Slide 27: Beryllium and Beryllium Composites
Beryllium and Beryllium Composites YTD Q2 2009 Sales: $26.1 million $26.1 million; 9% Pure beryllium and aluminum-beryllium composites for a variety of high-performance applications in the defense, space, industrial, scientific equipment, electronics (including acoustics), medical, automotive electr
Slide 28: Engineered Material Systems
Engineered Material Systems YTD Q2 2009 Sales: $12.9 million $12.9 million; 4% 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
Slide 29: 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 30: Key Financial Statistics
Key Financial Statistics $ in millions 2005 2006 2007 2008 Sales $541.3 $763.1 $955.7 $909.7 EBIT 19.5 43.8 84.5 28.1 Interest 6.4 4.1 1.8 2.0 Taxes (4.7) (9.9) 29.4 7.7 EPS 0.92 2.45 2.59 0.89 G.P.% 20.3% 21.2% 20.6% 16.7% O.P.% 3.6% 5.7% 8.8% 3.1% Depreciation & Amort. 21.7 24.6 23.9 33.8 Capital
Slide 31: Historical Revenue by Quarter
Historical Revenue by Quarter $ in millions 2003 2004 2005 2006 2007 2008 2009
Slide 32: Capacity to Support Profitable Market Growth
Capacity to Support Profitable Market Growth Operating with available excess capacity in Alloy Products WAM's Brewster, New York facility doubled its capacity in 2007 Brush Wellman Inc.'s Elmore, Ohio facility is partnering with the U.S. Department of Defense for the construction and start up of a $
Slide 33: Value creation initiatives
Our ongoing 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 Improve
Slide 34: New Product and Technology Development
New Product and Technology Development ADVANCED MATERIAL TECHNOLOGIES AND SERVICES Magnetic Media and Head Materials Under Bump Metallization (UBM) for Flip Chip FCCL Materials Visi-Lid(tm) - A transparent lid for New Photonics applications Expanded refining/chamber services supporting the thin film
Slide 35: New Product and Technology Development
New Product and Technology Development SPECIALTY ENGINEERED ALLOYS ToughMet(r) Alloy for High Volume Bearing Applications Cupronickel alloy rod for offshore and marine seawater systems 390E High Performance Copper Beryllium Strip Alloy for Burn in and Test Sockets (BiTS) applications BrushForm 158 a
Slide 36: Balance Sheet
Balance Sheet ($ in millions) 2004 2005 2006 2007 2008 Balance Sheet Debt** $ 72.5 $57.2 $48.9 $35.5 $41.8 Debt to Debt Plus Equity 26% 21% 15% 9% 11% *2000 Balance Sheet debt includes major equipment lease **Note - Excludes precious metal consignment and other leases of: $30.2 $55.5 $72.1 $80.0 $10
Slide 37: Segment Sales Review
Segment Sales Review YTD Q2 2007 2008 2009 $ % $ % $ % Advanced Material Technologies and Services1 $533.5 56% $480.3 53% $192.3 62% Specialty Engineered Alloys 290.0 30% 299.9 33% 78.1 25% Beryllium and Beryllium Composites 60.5 6% 63.6 7% 26.1 9% Engineered Material Systems 70.9 8% 65.9 7% 12.9 4%
Slide 38: Segment Earnings
Segment Earnings YTD Q2 2007 2008 2009 Advanced Material Technologies and Services1 $60.5 $10.9 $9.1 Specialty Engineered Alloys 7.6 5.8 (20.2) Beryllium and Beryllium Composites 7.8 8.4 2.9 Engineered Material Systems 4.7 5.9 (3.5) Other 3.92 (2.9) (1.3) TOTAL $84.5 $28.1 $(13.0) $ in millions 1Eff
Slide 39: 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 40: Advanced Material Technologies and Services Vision
Advanced Material Technologies and Services (Williams Advanced Materials Inc.) 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 Centra
Slide 41: 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 42: Sales History
Sales History 2009 YTD $188 Million 2009 Q2
Slide 43: Revenue by Market
Revenue by Market Photonics 1% Data Storage -1FH 1% Magne Optics & Security 3% YTD Q2 2009 All Other. 1% Microelectronic Packaging 1% Chamber Services 2% _ Solar (Photovoltaic) Semiconductor - All 1% ‘Other 19% Medical ‘Semiconductor - Wireless* 35% * Wireless sles had previously been reported inthe
Slide 44: Revenue by Market
Revenue by Market 2008 Thin Film Services Medical 4% ‘Semiconductor, 5% Solar (Photovoltaic), 1 Optics’ Security, 3 Refining, 3 Wireless NA Photonics 43%” ADUANCEDNATENATS Williams
Slide 45: 2009 Business Structure
2009 Business Structure WAM Corporate MicroElectronics en Data Advanced J Alternative Coating Storage Chemicals Energy Products & Services Services|
Slide 46: Product Mix
Product Mix Product Mix by Sales - YTD Q2 2009
Slide 47: Product Mix 2008
Product Mix 2008
Slide 48: 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 49: International/Domestic Revenue 2008
International/Domestic Revenue 2008
Slide 50: 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 51: 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 52: Engineered Thin Films
Engineered Thin Films Various Deposition Technologies Optical Films Hybrid Thin Films Web Coatings CVD Coatings Slitting Sensors Manufacturing Microelectronics Windows Buellton, CA Windsor, CT
Slide 53: 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 54: 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 55: 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 56: 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 57: CERAC
CERAC Milwaukee, WI Subsidiary of WAM Physical Vapor Deposition (PVD) materials for ophthalmic, optic and performance applications. Specialty Inorganic Materials Unique technologies in chemical and powder processing
Slide 58: 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 59: 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 Served: Semicond
Slide 60: 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 61: 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 62: 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 63: Global Service and Support
Global Service and Support Sales and Applications Engineering support Buffalo, New York Tokyo, Japan Brewster, New York Taoyuan, Taiwan Tucson, Arizona Singapore Santa Clara, California Manila, Philippines Buellton, California London, England Milwaukee, Wisconsin Seoul, Korea Dallas, Texas Limerick,
Slide 64: 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 & Material Reclamation Magnetic Data Storage Media Materials; Oxide Gen II an
Slide 65: 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 Media PMR Material Stack
Slide 66: Applications - Cell Phones
Applications - Cell Phones Internal Electronics (WAM): Thin Film Materials for the manufacturing of Power amplifiers, SAW and BAW devices, filters, and IC's Frame Lid Assemblies for SAW device packaging Thin Film Material for backlight applications using LED technology Shield Cleaning Services enabl
Slide 67: Key Markets - Medical (Sensor)
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 68: 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 69: Key Markets - Defense
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 70: Key Markets - Semiconductor Packaging
Key Markets - Semiconductor Packaging High reliability semiconductor packaging materials. Applications focused in space, military and satellite market segments.
Slide 71: 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 72: Applications - Photovoltaic (solar)
Applications - Photovaltaic (solar) Technology: Crystalline Si Thin Film Materials: SnO2 ,TiO2, Si, Si3N4, ITO Technology: Amorphous Silicon (Si) Thin Film Materials: TCO, AZO(Al2O3), AZO(Al), GZO(Ga2O3) Ag, Ag Alloys, Al, NiV, Ni, Ti Technology: Cadmium Telluride (CdTe) Thin Film Materials: ZTO, Zn
Slide 73: 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 74: 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 75: Specialty Inorganic Markets
Specialty Inorganic Markets Protective coatings for aerospace applications TiB2, B4Si Defense Applications Semiconductor gas precursors Zn3As2 Data Storage Medical devices V2O5 Specialty Batteries Li2O, CoS2
Slide 76: Global Chamber Services Value Package
Global Chamber Services Value Package Shield Cleaning Services Improve raw material utilization, precious metal recovery and equipment uptime improvements Mechanical and chemical recovery techniques Shield Surface treatment capabilities Clean Room environment and packaging Ultrasonic cleaning with p
Slide 77: Chamber Services/Refine
Chamber Services/Refine Chamber Services/Refine
Slide 78: Shield Kit Precision Parts Cleaning
Shield Kit Precision Parts Cleaning Shield Kit Precision Parts Cleaning Shield Kit Precision Parts Cleaning
Slide 79: Thin Film Technologies
Thin Film Technologies Thin Film Technologies Thin Film Technologies
Slide 80: Techni-Met - Converting and Spooling
Techni-Met - Converting and Spooling Techni-Met - Converting and Spooling Techni-Met - Converting and Spooling
Slide 81: Distinctive Competencies
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 82: New Horizons
New Horizons Rotatable/Planar Large Area Targets Medical Sensors Structural Medical Components Optical Sensors Fabrication Flexible Solar Solutions IR Coatings and Packages Refining and Recycling- New Materials
Slide 83: 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 84: 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 85: 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 86: Alloy Products Operations Strategy - Lean Sigma
Specialty Engineered Alloys (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 leadin
Slide 87: Sales Based on End User Specifications
Sales Based on End User Specifications Component Fabrication Component Manufacturing Sourcing Demand Generator Distribution Sales Marketing Specifications Products
Slide 88: 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 89: Alloy Products Revenue by Market YTD Q2 2009
Appliance Automotive Computer & Telecom Aerospace & Defense Industrial Process Other 17 9 43 10 21 Alloy Products Revenue by Market YTD Q2 2009
Slide 90: 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 91: Strip Products - Strategy
Strip Products - Strategy Maintain focus on major end-use markets Computer Telecommunications (mobile & Infrastructure) Automotive Appliance Military Medical Consumer electronics Defend leadership in traditional alloy strip, rod & wire Reduce total cost of manufacture to allow penetration of mid-ran
Slide 92: 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 93: 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 Har
Slide 94: 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 95: 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 96: Lorain Casting Facility
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 97: 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 98: 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 99: ToughMet Industrial Components Results
ToughMet(r) Industrial Components Results:
Slide 100: Significantly Higher Durability Confirmed for ToughMet
Significantly Higher Durability has been Confirmed for ToughMet(r)
Slide 101: Process - Rod, Bar and Tube
Process - Rod, Bar and Tube Process - Rod, Bar and Tube Process - Rod, Bar and Tube Process - Rod, Bar and Tube
Slide 102: Process - Rod, Bar and Tube
Process - Rod, Bar and Tube Process - Rod, Bar and Tube Process - Rod, Bar and Tube Process - Rod, Bar and Tube Process - Rod, Bar and Tube
Slide 103: Process - Rod and Wire
Process - Rod and Wire Process - Rod and Wire Process - Rod and Wire
Slide 104: Process - Rod and Wire
Process - Rod and Wire Process - Rod and Wire Process - Rod and Wire Process - Rod and Wire
Slide 105: Lorain Casting Facility
Lorain Casting Facility Lorain Casting Facility Lorain Casting Facility Lorain Casting Facility
Slide 106: 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, Taiwan, and India Primary focus on the distribution of alloy products while providing local s
Slide 107: 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 Ne
Slide 108: 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 109: Beryllium and Beryllium Composites
Brush Beryllium Products Brush Ceramic Products Beryllium and Beryllium Composites Comprises two business units
Slide 110: 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 111: 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 112: Brush Beryllium Products Facilities
Brush Beryllium Products Facilities Elmore, Ohio Fremont, California
Slide 113: Elmore — Melt Chamber
Elmore — Melt Chamber BRUSHWELLMAN
Slide 114: Elmore - CNC Mill
Elmore - CNC Mill
Slide 115: 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 116: 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 117: 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 118: 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 applicat
Slide 119: 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 120: 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 121: Beryllium Revenue by Market YTD Q2 2009
Beryllium and Beryllium Composites YTD Q2 2009 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 0.05 0.6 0.11 0.13 0.04 0.07
Slide 122: International/Domestic Revenue YTD Q2 2009
International/Domestic Revenue YTD Q2 2009 Intl. U.S. 22 78 Beryllium and Beryllium Composites International 22% Domestic 78%
Slide 123: 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 124: Engineered Material Systems (Technical Materials Inc.)
Engineered Material Systems (Technical Materials Inc.) - 2009 "Providing engineered metal strip products to leading technology manufacturers around the world."
Slide 125: 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 126: TMI Process Technologies
TMI Process Technologies Cladding Inlay Micro Laminates Electroplating Gold, Silver, Base Metals Selective and Overall Coatings Fabricated Components Profiling Milling Skiving Continuous Electron Beam Welding Lead-Free Solder Coatings
Slide 127: Process - Z-Mill
Process - Z-Mill
Slide 128: Process - Bonding Mill
Process - Bonding Mill
Slide 129: TMI Historical Sales
TMI Historical Sales 2002 2003 2004 2005 2006 2007 2008 Sales 45 42.8 55.7 50.8 71.7 72.4 67 $ in millions
Slide 130: International/Domestic Revenue 2008
International/Domestic Revenue 2008 International 16% Domestic 84%
Slide 131: 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 132: 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 133: Our Major Markets 2008
Our Major Markets Global Automotive Telecom Computer Energy Medical Other 2008 Global Automotive 42% Other 6% Energy 4% Medical 3% Telecom 16% Computer 29%
Slide 134: Our Major Markets YTD Q2 2009
Our Major Markets Global Automotive Telecom Computer Energy Medical Other YTD Q2 2009 Global Automotive 29% Computer 20% Telecom 29% Commercial, Defense, Energy & Medical 22%
Slide 135: Strategic Growth Markets
Strategic Growth Markets Alternative Energy Systems Power Electronics Hybrid & Electric Vehicle Materials Hard Drives Medical Devices Decorative Metals Defense
Slide 136: Market: Energy
Market: Energy Solar Cell Interconnects Concentrator Components Fuel Cells Stationary High- Temperature Components Portable PEM Components
Slide 137: Market: High Performance Batteries
Market: High Performance Batteries Lithium Ion Battery Components Pack Interconnects Tab Materials
Slide 138: Market: Power Electronics
Market: Power Electronics High-Reliability Connector and Leadframe Materials Safety Devices Engine Performance Sensors High Temperature Systems
Slide 139: Market: Computer
Market: Computer Hard Drive Suspension Materials Stainless and Aluminum Composites Precision Surface and Thickness Controls
Slide 140: Market: Medical
Market: Medical Cardiac Nitinol Strip Electroplated Drug Delivery Electronics Ultra-Precision Cutting Materials Niobium, Tantalum, and Titanium Specialty Materials
Slide 141: Market: Consumer Electronics
Market: Consumer Electronics Leadframes for Digital Camera Sensors Cell Phone Passive Components Specialty Clad Materials
Slide 142: 2009 Growth Strategy
2009 Growth Strategy Focus on High-Growth Niche Markets for Clad, Electroplate and Electron Beam Weld Product Development Expand Unique Process Capabilities for Value Add Growth Continue TMI's Growth in the Far East and Europe Drive Strategic Growth in Energy, Medical, and Defense Markets
Slide 143: Beryllium Health and Safety
Beryllium Health and Safety Brush has continued to make progress on issues related to 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
Slide 144: Litigation
Litigation Total Plaintiffs Total Cases Pending (including spouses) 6/27/08 8 30 9/26/08 9 36 12/31/08 9 36 4/03/09 9 37 7/03/09 8 29