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 Building off earlier pioneering technical work at Brush Laboratories Initial scope was development of commercial markets With onset of WW II and post war period, signifi
Slide 3: Brush Engineered Materials Inc. Profile
Brush Engineered Materials Inc. Profile A leading manufacturer of high performance advanced 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 g
Slide 4: 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 20.2 million at 12/31/09 Market Cap: Approximately $375 million at 12/31/09 Component of: S&P Super Composite 1500, Russell 2000 S&P SmallCap 600, Russell 3000 2009 Rev
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
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 Performance Materials Advanced Materials
Slide 10: Targeted acquisitions increasingly important to total sales
Targeted acquisitions increasingly important to total sales $ in millions
Slide 11: 2009 Recap
2009 Recap Sales of $715 million Diluted earnings per share of $(0.61) Acquisition of Barr Associates, Inc. for $55.2 million Barr produces precision thin film optical filters that enable complex technologies and components throughout the defense, aerospace, medical, energy, semiconductor, telecommu
Slide 12: Strength in Challenging Times
Strength in Challenging Times Balance Sheet Revolver $240 mm committed facility, matures November 2012 Debt Debt to total capital of 16% Working Capital Turnover improved from 164 days in 2008 to 132 days in 2009
Slide 13: Global Leader in High Performance Engineered Materials
Global Leader in High Performance Engineered Materials 2009 Revenue by Market
Slide 14: 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 15: 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 and network servers Electronic components in cars and trucks Commercial Aerospace Defense
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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) and, beginning in the first quarter 2009, Zentrix Technologies Inc. Specialty En
Slide 24: Advanced Material Technologies and Services
Advanced Material Technologies and Services 2009 Sales: $460.8 million $460.8 million; 64% Manufactures precious, non-precious and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms, high temperature braze materials, ultra-fine wire,
Slide 25: Specialty Engineered Alloys
Specialty Engineered Alloys 2009 Sales: $172.5 million $172.5 million; 24% Manufactures and sells three main product families: strip products, bulk products and beryllium hydroxide. Strip products, the larger of the product families, include thin gauge precision strip and thin diameter rod and wire.
Slide 26: Beryllium and Beryllium Composites
Beryllium and Beryllium Composites 2009 Sales: $47.0 million $47.0 million; 7% Manufactures beryllium-based metals and metal matrix composites in rod, sheet, foil and a variety of customized forms. These materials are used in applications that require high stiffness and/or low density and they tend
Slide 27: Engineered Material Systems
Engineered Material Systems 2009 Sales: $34.7 million $34.7 million; 5% Include clad inlay and overlay metals, precious and base metal electroplated systems, electron beam welded systems, contour profiled systems and solder-coated metal systems. These specialty strip metal products provide a variety
Slide 28: 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 29: Key Financial Statistics
Key Financial Statistics (Dollars in millions except per share amounts) 2006 2007 2008 2009 Sales $763.1 $955.7 $909.7 $715.2 EBIT 43.8 84.5 28.1 (19.5) Interest 4.1 1.8 2.0 1.3 Taxes (9.9) 29.4 7.7 (8.4) Diluted EPS 2.45 2.59 0.89 (0.61) G.P.% 21.2% 20.6% 16.7% 12.8% O.P.% 5.7% 8.8% 3.1% (2.7%) Dep
Slide 30: Historical Revenue by Quarter
Historical Revenue by Quarter $ in millions 2003 2004 2005 2006 2007 2008 2009
Slide 31: Capacity to Support Profitable Market Growth
Capacity to Support Profitable Market Growth Operating with available excess capacity for future growth Brush Wellman Inc.'s Elmore, Ohio facility is partnering with the U.S. Department of Defense for the construction and start up of a $90.3 million primary beryllium facility. Brush Wellman's contri
Slide 32: Value creation initiatives in three key areas
Our ongoing value creation initiatives are focused in three key areas Growth Expanding and diversifying the revenue base Targeting profitable niche growth applications in growing markets New product innovation and service Ongoing global expansion Strategic acquisitions, fast accretion Margin Improve
Slide 33: New Product and Technology Development
New Product and Technology Development ADVANCED MATERIAL TECHNOLOGIES AND SERVICES Magnetic Media and Head Materials, Eco-Ru(tm) Sputter Targets Under Bump Metallization (UBM) for Flip Chip FCCL Materials Optics coating materials Precision Optical Thin Film Coatings (specialty filters) High Value Op
Slide 34: New Product and Technology Development
New Product and Technology Development SPECIALTY ENGINEERED ALLOYS ToughMet(r) Alloy for High Volume Bearing Applications Cupronickel alloy rod for offshore and marine seawater systems Alloy 390E and Alloy 25BiQ High Performance Copper Beryllium Strip Alloy for Burn in and Test Sockets (BiTS) applic
Slide 35: Balance Sheet
Balance Sheet ($ in millions) 2005 2006 2007 2008 2009 Balance Sheet Debt* $57.2 $49.0 $35.5 $41.8 $64.5 Debt-to-Debt-Plus-Equity 21% 15% 9% 11% 16% * Note - Excludes precious metal consignment and other leases of: $51.6 $72.1 $79.5 $110.6 $103.2
Slide 36: Segment Sales Review
Segment Sales Review 2007 2008 2009 $ % $ % $ % Advanced Material Technologies and Services1 $533.5 56% $480.3 53% $460.8 64% Specialty Engineered Alloys 290.0 30% 299.9 33% 172.5 24% Beryllium and Beryllium Composites 60.5 6% 63.6 7% 47.0 7% Engineered Material Systems 70.9 8% 65.9 7% 34.7 5% Other
Slide 37: Segment Operating Profit (Loss)
Segment Operating Profit (Loss) 2007 2008 2009 Advanced Material Technologies and Services1 $60.5 $10.9 $22.6 Specialty Engineered Alloys 7.6 5.8 (32.3) Beryllium and Beryllium Composites 7.8 8.4 2.1 Engineered Material Systems 4.7 5.9 (2.5) Other 3.92 (2.9) (9.4) TOTAL $84.5 $28.1 $(19.5) $ in mill
Slide 38: 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 39: Williams Advanced Materials 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 Centr
Slide 40: 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 41: Sales History
Sales History 2009 $439.5 Million Excluding BARR Associates Inc.
Slide 42: Revenue by Market
Revenue by Market Magnetic Data Storage - Media Magnetic Data Storage - Thin Film Head Photonics Refining Oprics & Security Microelectronic Packaging Chamber Services Solar (Photovoltaic) Medical Thin Film Services Semiconductor - Wireless* Semiconductor - All Other All Other YTD 2009 5191 8319 2323
Slide 43: Revenue by Market 2008
Revenue by Market 2008 Semicondutor Other Magnetic Data Storage - Media Magnetic Data Storage - Thin Film Head Wireless Photonics Refining Optics & Security Microelectronic Packaging Chamber Services Solar (Photovoltaic) Medical Thin Film Services Revenue 5 12 5 4 43 3 3 6 2 1 9 4
Slide 44: 2010 Business Structure
2010 Business Structure : : BARR MicroElectronics Preci Data Advanced [i Alternative Products & Services ) ¥ Storage Chemicals Energy
Slide 45: Product Mix
Product Mix Product Mix by Sales 2009
Slide 46: Product Mix
Product Mix 2008 Other, 13% Media, 11% Shield Cleaning Services, 2%, Thin Film Materials, 9% Refining, 3% Optics and. Security, 3% ‘Thin Film Deposition Services, 36 Microelectronics, 34% Williams AOVANCED WATERLS
Slide 47: 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 48: International/Domestic Revenue
International/Domestic Revenue 2009 Intl. 29% U.S. 71%
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: 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 51: Engineered Thin Films
Engineered Thin Films Various Deposition Technologies Optical Filters & Coatings Thin Films Hybrid Circuits Web Coatings CVD Coatings Slitting Sensors Manufacturing Microelectronics Windows Filter Arrays Filter Sub-assemblies Buellton, CA Windsor, CT Westford, MA
Slide 52: 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 53: 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 54: 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 55: 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 56: 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 57: 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 58: 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 59: 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 60: 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 61: 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 62: 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 63: 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 64: 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 65: 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 66: 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 67: 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 Filter Arrays Filter Sub-assemblies Electronic Packaging Materials Precision Machined Components
Slide 68: Key Markets - Defense Applications
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 Optical Filters & Coatings IR Filters Filter Arrays Ultra High Efficiency Reflectivity Willi
Slide 69: Key Markets - Semiconductor Packaging
Key Markets - Semiconductor Packaging High reliability semiconductor packaging materials. Applications focused in space, military and satellite market segments.
Slide 70: 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 71: 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 72: 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 73: 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 74: 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 75: 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 76: Chamber Services/Refine
Chamber Services/Refine Chamber Services/Refine
Slide 77: Shield Kit Precision Parts Cleaning
Shield Kit Precision Parts Cleaning Shield Kit Precision Parts Cleaning Shield Kit Precision Parts Cleaning
Slide 78: Thin Film Technologies
Thin Film Technologies Thin Film Technologies Thin Film Technologies
Slide 79: Techni-Met - Converting and Spooling
Techni-Met - Converting and Spooling Techni-Met - Converting and Spooling Techni-Met - Converting and Spooling
Slide 80: Customer Service Value Packaging
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 (Solar) Nanotechnology UBM / FCCL Semiconductor Pck. Magnetic Data Storage
Slide 81: New Horizons
New Horizons New Internal Program - "Making Williams Our Customers' First Choice(tm)" 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 82: 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 83: 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 84: 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 85: 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 86: 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 87: 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 88: Alloy Products Revenue by Market
Alloy Products Revenue by Market Year 2009
Slide 89: 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 90: 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 91: 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 92: 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 93: 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 94: 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 95: 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 96: 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 97: 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 98: ToughMet Industrial Components Results
ToughMet(r) Industrial Components Results:
Slide 99: Significantly Higher Durability Confirmed for ToughMet
Significantly Higher Durability has been Confirmed for ToughMet(r)
Slide 100: 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 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 Process - Rod, Bar and Tube
Slide 102: Process - Strip
Process - Strip
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 Comprises Two Business Units
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 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 Ir BRUSHY
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 AlBeMetTM 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 and Beryllium Composites 2009 Revenue by Market
Beryllium and Beryllium Composites 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 0.57 0.13 0.16 0.04 0.05
Slide 122: International/Domestic Revenue
International/Domestic Revenue 2009 Intl. U.S. 22 78 Beryllium and Beryllium Composites Domestic 78% International 22%
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: Technical Materials, Inc. Our Vision
Technical Materials, Inc. Our Vision INNOVATIVE MATERIAL SOLUTIONS Committed to improving our customers' competitiveness in global markets.
Slide 125: Market History
Market History When TMI was founded in 1968, its cladding 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 engineeri
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: High-Technology Metal Processing
High-Technology Metal Processing
Slide 128: Proprietary Electroplating Technologies
Proprietary Electroplating Technologies
Slide 129: TMI Historical Sales
TMI Historical Sales 2002 2003 2004 2005 2006 2007 2008 2009 Sales 45 42.8 55.7 50.8 71.7 72.4 67 36.241 $ in millions
Slide 130: International/Domestic Revenue
International/Domestic Revenue 2009 International 17% Domestic 83%
Slide 131: Technology Leader
Technology Leader Quality ISO 9001:2008, Certified by Bureau Veritas ISO 14001:2004, Certified by TUV Unique Tolerance Capabilities Extensive Digital and Vision-controlled Processing Engineering Metallurgical Design Technical Customer Support
Slide 132: Our Major Markets - 2009
Our Major Markets - 2009 Automotive Computer Telecom Energy Medical Other Global Automotive 37% Energy 5% Other 5% Medical 3% Telecom 21% Computer 29%
Slide 133: Strategic Plan
Strategic Plan Energy Global Automotive Medical Computer Telecom Defense Other Global Automotive 25% Other 5% Energy 25% Medical 15% Telecom 10% Computer 15% Defense 5% 3-Year Market Objectives
Slide 134: Strategic Growth Markets
Strategic Growth Markets Solar Hybrid & Electric Vehicle Materials Medical Devices Power Electronics Defense Hard Drives Battery Fuel Cells
Slide 135: Market: Energy
Market: Energy Solar Cell Interconnects Discrete Components Fuel Cells High-temperature Components and Materials
Slide 136: Market: High-Performance Batteries
Market: High-Performance Batteries Lithium Ion Battery Components Pack Interconnects Cell Components
Slide 137: Market: Power Electronics
Market: Power Electronics High-reliability Connector and Leadframe Materials Safety Devices Engine Performance Sensors High Temperature Systems
Slide 138: Market: Computer
Market: Computer Hard Drive Suspension Materials Stainless and Aluminum Composites Precision Stiffness-to-Mass Performance
Slide 139: Market: Medical
Market: Medical Cardiac Nitinol Strip Electroplated Drug Delivery Electronics Ultra-Precision Cutting Materials Niobium, Tantalum, and Titanium Specialty Materials
Slide 140: Market: Consumer Electronics
Market: Consumer Electronics Leadframes for Digital Camera Sensors Cell Phone Passive Components Specialty Clad Materials
Slide 141: 2010 Growth Strategy
2010 Growth Strategy Focus on High-Growth Niche Markets for TMI's Proprietary Material Capabilities Continually Expand Process Capabilities to Meet Next Generation's High Tech Requirements Continue TMI's Growth in the Far East and Europe Drive Strategic Product Development in Energy, Medical, and De
Slide 142: 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 143: Litigation
Litigation Total Plaintiffs Total Cases Pending (including spouses) 12/31/08 9 36 4/03/09 9 37 7/03/09 8 29 10/02/09 7 26 12/31/09 4 8