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 20.6 million at 12/31/07 Market Cap: Approximately $750 million at 12/31/07 Component of: S&P Super Composite 1500 Russell 2000 S&P Small Cap 600 Annual Revenue: $956 m
Slide 6: Fourth Quarter 2007 Recap
Fourth Quarter 2007 Recap Quarterly Revenue Up $33.1 million or 16% compared to fourth quarter 2006 The ninth consecutive quarter of double digit sales growth Metal prices accounted for approximately 7% of the sales increase and organic growth was 9% International sales were 45% of the total EPS Ear
Slide 7: Global Leader in High Performance Engineered Materials
Global Leader in High Performance Engineered Materials 2007 Revenue by Market Other Telecommunications Data Storage Industrial Components Aerospace & Defense Automotive Appliance Medical 0.06 0.4 0.23 0.07 0.07 0.07 0.05 0.05 Other Appliance Aerospace & Defense Automotive Data Storage Industrial Com
Slide 8: 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 9: 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 10: 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 11: 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 12: Applications - Cell Phones
Applications - Cell Phones I/O Connector Contacts (Alloy): Brush 60 Alloy 25 Alloy 290 Alloy 190 Alloy 17410 Battery Contacts (Alloy): Brush 60 Alloy 25 Alloy 290 Alloy 190 Internal Antenna Contacts (Alloy): Brush 60 Alloy 25 Alloy 290 Alloy 190 Alloy 17410 Grounding Clips and Audio Jacks (Alloy): B
Slide 13: 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 14: 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 15: 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 16: Advanced Material Technologies and Services
Advanced Material Technologies and Services 2007 Sales: $519.9 million $519.9 million; 54% 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- te
Slide 17: Specialty Engineered Alloys
Specialty Engineered Alloys 2007 Sales: $290.0 million $290.0 million; 30% 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 e
Slide 18: Beryllium and Beryllium Composites
Beryllium and Beryllium Composites 2007 Sales: $60.5 million $60.5 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 and x
Slide 19: Engineered Material Systems
Engineered Material Systems 2007 Sales: $70.9 million $70.9 million; 7% 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 te
Slide 20: 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 21: 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 22: Returning to Historical 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 23: Twentieth consecutive quarter of year-over-year sales growth
The 4th quarter 2007 was the twentieth consecutive quarter where sales were higher than the comparable quarter of the prior year. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 99.5 101.8 94.2 105.6 125.9 128.6 125.8 116 130.4 134.7 135.6 140.6 167.7 187.1 200.4 207.8 250.3 233.6 230.9
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: Segment Sales Review
Segment Sales Review 2005 2006 2007 $ % $ % $ % Advanced Material Technologies and Services $209.5 38% $343.4 45% $519.9 54% Specialty Engineered Alloys 213.8 39% 275.6 36% 290.0 30% Beryllium and Beryllium Composites 53.1 10% 57.6 7% 60.5 6% Engineered Material Systems 50.0 9% 68.7 9% 70.9 7% Other
Slide 30: Segment Earnings
Segment Earnings 2005 2006 2007 Advanced Material Technologies and Services $20.4 $30.5 $59.4 Specialty Engineered Alloys (5.4) 7.9 7.6 Beryllium and Beryllium Composites 9.8 7.4 7.8 Engineered Material Systems 0.7 2.7 4.7 Other (6.0) (4.7) 5.0* TOTAL $19.5 $43.8 $84.5 * The Other segment earnings o
Slide 31: 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 32: What We Do - Williams Advanced Materials
What We Do Williams Advanced Materials develops, manufactures and markets materials and services of unique value for the Magnetic and Optical Data Storage, Wireless, Photonics, Semiconductor, Optics, Security, Hybrid Microelectronics, Defense and Performance Coating industries. We also support emerg
Slide 33: Sales History
Sales History 1990 1994 1999 2004 2005 2006 2007 East 38 72 110 168 218 344 525 2007 $520MM
Slide 34: Revenue by Market
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 2007 Magnetic Data Storage Semiconductor Wireless and Photonics Shield Cleaning Services / Refining Traditional Micro. Optical Data Storage Medical Other 43 4 18 9 10 2 6 8 Semic
Slide 35: International/Domestic Revenue
International/Domestic Revenue 2007 Intl. U.S. 30 70
Slide 36: 2007 Business Structure
WAM Corporate Thin Film Products Electronic Packaging Products 2007 Business Structure Thin Film Services Fab Services Specialty Inorganic Materials
Slide 37: WAM Headquarters Buffalo, NY
WAM Headquarters Buffalo, NY USA - Manufacturing Facility 100,000 Sq. Ft. overall, 6,500 Sq. Ft. of cleanroom, state-of-the-art machining/ milling/rolling/stamping/ cladding centers, target bonding, hydrostatic wire extrusion, high purity refining/recycling, metals casting, automated plating, full a
Slide 38: Specialty Alloys Operations
Specialty Alloys Operations Wheatfield, NY USA- Williams Specialty Alloys 30,000 Sq. Ft. with volume vacuum casting, rolling, annealing, powder atomizing and machining. 10 acres for expansion.
Slide 39: 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.
Slide 40: Far East Operations
Far East Operations Singapore - WAM Far East Pte. Ltd. Target bonding, bonding wire production, Combo-Lids(r). assembly Taoyuan County, Taiwan - WAM Taiwan Target bonding, evaporation materials & bonding wire. Subic Bay, Philippines Combo-Lids(r), low-cost lids and preform - assembly, inspection and
Slide 41: 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 42: 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 43: OMC - Czech
OMC- Czech Louny, Czech Republic 20,000 Sq ft. 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 Markets Serve: Semiconductor, Compound Semicondu
Slide 44: 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 45: 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 46: Target Bonding Centers
Target Bonding Centers Localized debonding/ bonding of PVD targets to backing plates: Buffalo, NY Brewster, NY Santa Clara, CA Limerick, Ireland Singapore Taiwan China
Slide 47: Global Service and Support
Global Service and Support Regional Offices (Sales and Applications Engineering support) Buffalo, NY Tokyo, Japan Brewster, NY Taoyuan, Taiwan Dallas, TX Singapore Tucson, AZ Manila, Philippines Santa Clara, CA London, England Buellton, CA Seoul, Korea Milwaukee, WI Limerick, Ireland Suzhou, China L
Slide 48: Product Mix 2007
Product Mix 2007 Thin Film Materials Electronic Packaging Materials Shield Cleaning Services Refining Thin Film Deposition Services Innorganic Chemicals Rod 68 10 6 7 6 3
Slide 49: 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 50: End Product Examples Utilizing Thin Film Deposition Materials
End Product Examples Utilizing Thin Film Deposition Materials
Slide 51: Packaging Materials
Packaging Materials FLA/Combo-Lid(r) Seam Seal/Microlid(tm) Preforms Clad Materials Braze Materials Ni Alloys Dental Coating, patterning and Visi-Lid(tm) (TFT) Packages (Zentrix) Buffalo Singapore Wheatfield Buellton WAM Taiwan WAM Philippines
Slide 52: New Product and Technology Development
New Product and Technology Development Visi-Lid(tm) - A transparent lid for New Photonics applications Silver Alloys for HD-DVD and Blue Ray Disc manufacturing Expanded refining/chamber services supporting the thin film materials business FCCL Materials Magnetic Media Materials Magnetic Head Materia
Slide 53: 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 54: 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 55: Key Markets - Semiconductor Packaging
Key Markets - Semiconductor Packaging High reliability semiconductor packaging materials. Applications focused in space, military and satellite market segments.
Slide 56: Key Markets - Magnetic Head and Media
Thin film materials for both the read/write head and disc platter. Chamber Services complement materials offering. Applications growing into many commercial and mobile electronic products. Key Markets - Magnetic Head and Media
Slide 57: 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 58: New Platforms by Market
New Platforms by Market New Thin Film & Packaging Materials and Designs for: Magnetic Media (PMR) and Thin Film Head (TMR/PMR) Semiconductor Wafer Fabrication Under Bump Metallization (UBM) for Flip Chip Flexible Copper Clad Laminate (FCCL) Wireless and Photonics Photovoltaics (Solar Panels) MEMS an
Slide 59: 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 60: 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 61: 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 62: 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 63: 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 64: 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 65: Alloy Products Revenue by Market
Appliance Automotive Computer & Telecom Aerospace & Defense Industrial Process Other 9900000 8100000 24600000 6200000 13700000 Alloy Products Revenue by Market Year 2007
Slide 66: 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 67: 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 68: 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 69: 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 70: 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 71: 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 72: 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 73: ToughMet Outlasts Conventional Bearing Materials in Mining Truck Test
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 74: 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 75: ToughMet Industrial Components Results
ToughMet(r) Industrial Components Results:
Slide 76: Significantly Higher Durability Confirmed for ToughMet
Significantly Higher Durability has been Confirmed for ToughMet(r)
Slide 77: 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 78: 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 79: 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 80: Brush Wellman Beryllium Products
Brush Wellman 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 81: Beryllium Products - Continued
Brush Wellman 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 82: Beryllium Products Facilities
Brush Wellman Beryllium Products Facilities Elmore, Ohio Fremont, California
Slide 83: Key Product Attributes
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 84: Primary Competition...Alternative Materials
Brush Wellman 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 85: Major Defense/Aerospace Applications
Major Defense/Aerospace Applications for Brush Wellman 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 S
Slide 86: Major Commercial Applications
Major Commercial Applications for Brush Wellman 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
Slide 87: Beryllium Products 2007 Revenue by Market
Beryllium Products 2007 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 0.58 0.17 0.14 0.09 0.02
Slide 88: International/Domestic Revenue
International/Domestic Revenue 2007 Intl. U.S. 16 84 Beryllium Products International 16% Domestic 84%
Slide 89: Major Applications, New Products and Platforms
Major Applications, New Products and Platforms Beryllium Products Product Market New AlBeMet Products Defense Fabricated Products Defense Acoustic Speakers High grade Be foil Medical x-ray
Slide 90: 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 91: 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 92: Technical Materials Inc. 2008
Technical Materials Inc. 2008 "Providing engineered metal strip products to leading technology manufacturers around the world."
Slide 93: 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 94: 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 95: 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 96: International/Domestic Revenue
International/Domestic Revenue 2007 Intl. U.S. 0.09 0.91 International 12% Domestic 88%
Slide 97: 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 98: 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 99: 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 100: Strategic Growth Markets
Strategic Growth Markets Computer Hard Drives Medical Devices Energy Systems
Slide 101: Application: Computer Hard Drive
Application: Computer Hard Drive Suspension Materials Stainless/Aluminum Composites High Stiffness-to- Weight Performance Supports Higher Data Density Media
Slide 102: Application: Medical Implant Materials
Application: Medical Implant Materials Electron Beam Welded and Clad Interconnects Niobium, Tantalum, Titanium, and Stainless Steel Systems
Slide 103: Application: Automotive
Application: Automotive High-Reliability Connector and Leadframe Materials Safety Devices Engine Performance Sensors Hybrid Components
Slide 104: Application: Consumer Electronics
Application: Consumer Electronics Leadframes for Digital Camera Sensors Cell Phone Passive Components
Slide 105: Application: Energy
Application: Energy High-Performance Battery Materials Solar Cell Interconnects High-Temperature Fuel Cell Clad Materials
Slide 106: 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 107: 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 108: Litigation
Litigation Total Plaintiffs Total Cases Pending (including spouses) 12/31/06 13 54 03/30/07 12 52 06/29/07 10 32 09/28/07 10 32 12/31/07 9 31
Slide 109: Litigation
Litigation In Year 2007, two cases, involving four plaintiffs, were dismissed by the plaintiffs. In one purported class action, three plaintiffs were dismissed, and the court remanded the case to the trial court for proceedings on five individual plaintiffs. In one purported class action, involving