Slide 1: Investor Presentation October 2007
Investor Presentation October 2007 .... a leader in creating innovative engineered material solutions and services to make our customers competitive on a global basis .... while enhancing earnings growth, shareholder value, and stability ... by broadening technology, market, and geographic reach
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: 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-ter
Slide 4: Major Business Units
Brush Engineered Materials - Major Business Units Alloy Be Products TMI Other WAM East 0.32 0.07 0.08 0.01 0.52 West North Williams Advanced Materials PVD Targets Optical Coatings Refining Electronic Packaging 52% Alloy (Cu based Be and Ni Alloys) Electronic Connectors Industrial Components 32% Be P
Slide 5: 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 produ
Slide 6: Company Overview
Company: Brush Engineered Materials Inc. founded 1931, publicly traded since 1956 NYSE Ticker: BW Shares Outstanding: Approximately 20.7million at 9/28/07 Market Cap: Approximately $1 billion at 9/28/07 Component of: S&P Super Composite 1500 Russell 2000 S&P Small Cap 600 Annual Revenue: $763 millio
Slide 7: Third Quarter 2007 Recap
Third Quarter 2007 Recap Quarterly Revenue Up $30.5 million or 15% compared to third quarter 2006 The nineteenth consecutive quarter where sales were higher than the comparable quarter the previous year Metal prices accounted for approximately 2% of the sales increase and organic growth was 13% Inte
Slide 8: First Nine Months 2007 Recap
First Nine Months 2007 Recap Record sales of $715 million, up 29% over first nine months of 2006 Earnings per share of $1.98 compares to prior year's $0.96 Sales growth, adjusting for metal price increased 25% A new first nine month sales high, even after adjusting for metal price inflation Eight co
Slide 9: Strong conditions in key markets driving sales and earnings growth
Strong conditions in key markets driving solid sales and earnings growth Strong sales growth driven by Broad based demand increase and new products Added sales from acquisitions Higher metal prices Consumer electronics a primary factor Portable devices, such as cell phones Hard disk drives/data stor
Slide 10: 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 11: Global Leader in High Performance Engineered Materials
Global Leader in High Performance Engineered Materials Q3 2007 Estimated Revenue by Market Other Telecommunications Magnetic & Data Storage Industrial Components Aerospace & Defense Automotive Appliance 0.08 0.37 0.28 0.07 0.07 0.08 0.05 Other Appliance Aerospace & Defense Industrial Components Data
Slide 12: 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 and network servers Electronic components in cars and trucks Commercial Aerospace Defense
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 - Hard Disk Drives
WAM Thin film materials for both the read/write head and disc platter. Chamber Services complement materials offering. Applications - Hard Disk Drives Example - Hard Disk Drive PMR Material Stack TMI Disk drive arm clad material (Al/ss) Applications growing into many commercial and mobile electronic
Slide 15: 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 16: 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 17: Applications - Medical
Applications - Medical Cardiac Rhythm Management (TMI): Electronic Interconnects/Components Niobium/Titanium Electron Bean 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 18: Global Sales and Distribution Network
Global Sales and Distribution Network Operations in the U.S. and eleven foreign countries Q-3 2007 International sales were 40% and growing at a faster rate than domestic sales Act globally ... service locally! ?-------------- Asia / Pacific ------------? ? ---------------- Europe -------------- ? ?
Slide 19: Targeting Growth Applications in Growing Markets
BEM - Targeting Growth Applications in Growing Markets Mobile Telecommunications Build Schedule for Boeing/Airbus O&G - Rotary Rig Count Disk Drive Head Demand 04' 05' 06' 07' 08' 09' 10' 11' LMR Shipments 305 378 360 312 135 0 0 0 PMR Shipments 90 208 540 875 1010 1150
Slide 20: Advanced Material Technologies and Services Business Structure
AMTS Corporate Thin Film Products Electronic Packaging Products Advanced Material Technologies and Services Business Structure Today and Evolving Thin Film Services Fab Services Specialty Inorganic Materials Ireland Czech Republic Wheatfield, NY Brewster, NY Buffalo, NY Buffalo, NY Singapore Philipp
Slide 21: Williams Advanced Materials capabilities
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 Specialty inorganic chemicals Strong end use markets Data storage Wireless/handsets semiconductor Optic
Slide 22: 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 23: 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. Under bump metallization
Slide 24: Key Markets - Semiconductor Packaging
Key Markets - Semiconductor Packaging High reliability semiconductor packaging materials. Applications focused in space, military and satellite market segments. Solder preforms and clad materials
Slide 25: New Product and Technology Development
New Product and Technology Development Magnetic Media and Head Materials Under Bump Metallization (UBM) for Flip Chip FCCL Materials Wireless and Photonics Visi-Lid(tm) - A transparent lid for New Photonics applications Expanded refining/chamber services supporting the thin film materials business S
Slide 26: Physical Vapor Deposition (PVD) Process
Physical Vapor Deposition (PVD) Process
Slide 27: World's only Fully Integrated Beryllium Producer
World's only 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 Also, new High Be Pebbles Plant underway with DOD Title III funding
Slide 28: Strip Alloy Applications
Strip Alloy Applications (strength, conductivity, spring characteristics ... typically 1% to 2% Beryllium) Current Carrying Springs and Relays Integrated Circuitry Sockets Electrical and Electronic Connectors Air Bag Sensors Pressure Responsive Devices Fire Extinguisher Sprinkler Heads Reliability a
Slide 29: Bulk Alloy Applications
Bulk Alloy Applications (strength, corrosion resistance, non-galling, conductivity ... typically 1% to 2% Beryllium) Aircraft Bushings Heavy Equipment Bearing and Wear Applications Oilfield well drilling, completion and production equipment Plastic Injection & Blow Molds Power Generation Undersea/Ma
Slide 30: ToughMet - a new unique solution
Toughmet(r) - a new unique solution for the most challenging wear and load conditions Oil & Gas...deeper drilling...tougher conditions Rotary steering drills Sour well drilling and completion tools Sub-sea control valves Blow-out preventions Heavy equipment ... larger equipment ... critical uptime H
Slide 31: Beryllium Products - Applications
Beryllium Products - Applications (lightweight, strength, dimensional, stability...typically 40% to 100% Beryllium) - - Optical mirrors for NASA space-based telescopes - - Infrared sensors for fighter jet optical targeting, radar and navigation/guidance systems and special ops (FLIR) -Structural and
Slide 32: Technical Materials, Inc. engineered strip metals
Technical Materials, Inc. - solving customers' problems with engineered strip metals Mill Products Specialty cladding and inlay Electron beam welding of dissimilar materials Profiling shapes by milling and/or grinding Close tolerance rolling Electroplating Precious and non-precious metals Overall an
Slide 33: BEM - Execution Initiatives
BEM - Execution Initiatives Profitable organic growth through new products, applications, and services Close collaboration with customers Expansion of international base and sales Broaden markets and technology Leverage above through "smart" acquisitions No let up in manufacturing excellence ... Lea
Slide 34: Annual Revenue: Historical
2000 2001 2002 2003 2004 2005 2006 2007 564 473 373 401 496 541 763 1100 Annual Revenue: Historical Our diversification and value creation initiatives are leading to strong growth in revenue and profitability Growth % 24% -16% -21% +8% +24% +9% +41% +30-35% Est. Telecom Crash
Slide 35: Shareholder value creation initiatives
Our on-going shareholder 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 M
Slide 36: Strategic Highlights
Strategic Highlights Strong, diverse set of markets served Global market reach New products and services ... a culture of innovation
Slide 37: Material Solutions for the World's Leading Companies
Brush Engineered Materials - Material Solutions for the World’s Leading Companies