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Amg Critical Materials — AMG Advanced Metallurgical Group — Investor Day (June 2014)

13 slides from Amg Critical Materials's investor day presentation, Jun 3, 2014

  1. Slide 1: Capital Markets Day Operations Review

    Capital Markets Day Operations Review June 3, 2014

  2. Slide 2: Cautionary Note

    Cautionary Note THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION BY AMG ADVANCED METALLURGICAL GROUP N.V. (THE “COMPANY”) AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE

  3. Slide 3: Operations – Principles & Policies

    Operations – Principles & Policies ■ Business Ethics ■ AMG employees will act with honesty, integrity and respect for people ■ AMG companies will be good neighbors in our communities ■ Health, Safety & Environment ■ Safe working practices are a core element of AMG’s values ■ AMG’s objective is to ha

  4. Slide 4: Financial Highlights HSE Performance

    Financial Highlights HSE Performance 4

  5. Slide 5: Health, Safety & Environmental (HSE)

    Health, Safety & Environmental (HSE) AMG is focused on the health and safety of our employees and our environmental impact:  Record low number of lost time incidents in 2013  17 locations achieved zero lost time accidents in 2013  OHSAS 18001 formal safety management systems approaching completio

  6. Slide 6: Safety – 2013 Proactive Measures

    Safety – 2013 Proactive Measures  OHSAS 18001 Implementation  Now covers 10 major locations  Improved safety communications  Monthly corporate reports  Immediate incident alerts  Increased training  Expanding near miss reporting process AMG Near Misses Reports 2012 to 2014 1000 900 800 700 60

  7. Slide 7: Safety – 2013 Results

    Safety – 2013 Results  No Fatalities  Continued Lost Time Incident (LTI) Reduction  1.76 per 200,000 hours in 2013  Incident Severity Rate  0.21 lost days per 1,000 hours worked 2014 Safety Conference AMG LTI Rate 2011 to 2014 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Apr-11 Apr-12 Apr-

  8. Slide 8: Operational Performance

    Operational Performance

  9. Slide 9: Operations – Revenue & Price Risk

    Operations – Revenue & Price Risk ■ Selective growth trends ■ Vanadium – recycling ■ Titanium aluminide ■ High-purity superalloys ■ Graphite ■ Engineering – Heat Treatment & Services ■ De risking – reducing price exposure via long-term sales contracts and indexed sourcing: ■ AMG Silicon ■ AMG Graphi

  10. Slide 10: Operations – Costs & Productivity Improvement

    Operations – Costs & Productivity Improvement ■ Full time staffing down approximately 8% from May 2013 ■ Right-sizing AMG Superalloys (UK and Brazil) and AMG Ti Alloys & Coatings ■ Reducing staffing approximately 10% ■ Adjusted production levels to current market conditions ■ Curtailing aluminum all

  11. Slide 11: Operations – Progress

    Operations – Progress Objectives Progress ■ QoQ SG&A reduced by 3%, or $1.0M Reduce SG&A ■ Target to reduce SG&A expenses by 3% in FY 2014 ■ QoQ Gross Margin 16.9%, up 0.6% Improve Gross Margin ■ Continuous improvement - programs and measurable targets across all units ■ Q1’14 Cash flow from Operati

  12. Slide 12: Operations – Progress

    Operations – Progress Reduced working capital days by over 40% since 2009 12

  13. Slide 13: Slide 13

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