Materion Corporation · NYSE:MTRN
Materion — Brush Engineered Materials — Investor Day (August 2010)
97 slides from Materion's investor day presentation, Aug 19, 2010
Slide 1: Analyst Meeting August 19, 2010
Exhibit 99.1 Analyst Meeting August 19, 2010 .... 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
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: Business Overview and Transformation
Business Overview and Transformation R.J. Hipple Transforming our World and Yours
Slide 4: Why This Meeting - What We Hope to Accomplish Today
Why This Meeting - What We Hope to Accomplish Today Company overview Company transformation, what and why Transformation results to date 2010 to date and outlook Review our largest segments Growth drivers, future initiatives, sustainability 4 Transforming our World and Yours Bring you up to date
Slide 5: Why Brush
Why Brush Unique, rapidly growing, advanced materials company Enabling, desired high-value technology Serving leading edge, high-growth markets Sustainable long-term growth opportunities Diverse set of high-growth new products and services Expanding margins Strong balance sheet Capable management te
Slide 6: BEM ... The Transformation
BEM ... The Transformation From Metals & Mining through Specialty Metals to Advanced Materials From an "Old Industrial" to an "Advanced Materials technology" company Higher, more sustainable growth rates and profitability 6 Transforming our World and Yours
Slide 7: Profile
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 growth oriented global markets
Slide 8: Global Sales and Distribution Network
8 Global Sales and Distribution Network Operations in the U.S. and eleven foreign countries International sales are approximately 29% of the Company (YTD Q2 2010) Act globally ... service locally! ?-------------- Asia / Pacific ------------? ? ---------------- Europe -------------- ? ? - Exports fro
Slide 9: Core Competency
9 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 and service portfolios tow
Slide 10: Strong customer collaboration
10 Strong customer collaboration ... providing enabling technology solutions and service Materials that meet design challenges requiring - Strength - Reliability - Electrical conductivity - Miniaturization - Weight reduction - Corrosion resistance - Light management - Thermal conductivity - Wave len
Slide 11: Major Segments
11 Major Segments Transforming our World and Yours Note: %'s are of sales
Slide 12: Typical End Uses
12 Typical End Uses Disk Drives Industrial products for Oil & Gas and Mining Medical Devices Cellular phones, i-Pods(tm), i-Pads(tm) and other wireless communication devices Notebook computers and network servers Electronic components in cars and trucks Commercial Aerospace Defense Transforming our
Slide 13: Typical End Uses
13 Typical End Uses Heavy Equipment Space/Science LED's Telecom Infrastructure Optics Alternative Energy Transforming our World and Yours LCD
Slide 14: Diverse Set of High Growth Markets
Diverse Set of High Growth Markets Consumer Electronics 27% Telecom Infrastructure 7% *Value-added revenue, excludes high value metals YTD Q2 2010 Revenue* Automotive Electronics 8% Appliance 7% Other 6% Services 4% Energy 6% Medical 6% Defense and Science 15% Industrial and Commercial Aerospace 14%
Slide 15: Well Recognized Key Customers & Demand Generators
Well Recognized Key Customers & Demand Generators Consumer Electronics Western Digital RFMD Skyworks Seagate Apple Motorola Cree TriQuint HTC Defense & Science Northrup Grumman DRS Lockheed Martin Raytheon BAE Goodrich General Dynamics 15 Transforming our World and Yours Industrial & Commercial Aero
Slide 16: Well Recognized Key Customers & Demand Generators
Well Recognized Key Customers & Demand Generators Medical Roche Medtronic Varian Medical Siemens Agilant Applied Biosciences Nipro Diagnostics Automotive Electronics Delphi Kostal Johnson Electric Yasaki TRW Visteon 16 Transforming our World and Yours Energy First Solar MiaSole AMAT Primestar Nanoso
Slide 17: Major Product Forms
Major Product Forms 17 YTD Q2 2010 Revenue Transforming our World and Yours Strip Metal 20% Bulk Metal 11% Powders 2% PVD Targets 38% Coatings 8% Semi-Finished Components 5% Other Precious Metals 13% Other 3%
Slide 18: The Transformation ... Overview
The Transformation ... Overview From Metals & Mining through Specialty Metals to Advanced Materials Beryllium Businesses.........Metals and Mining Expansion of WAM............Specialty Metals Acquisitions..................... Advanced Materials From single digit to long-term sustainable double digit
Slide 19: The Transformation ... Strategy
The Transformation ... Strategy Create sustainable market advantage and value to customers through unique technological capabilities and innovation Decrease dependency on the Integrated Metals businesses while improving their performance and reducing their cyclicality Create the corporate critical m
Slide 20: The Transformation ... Tactics
The Transformation ... Tactics Create a broader, more diversified base ... focused on greater than GDP opportunities New Technologies New Markets Target fastest growing segments of fast growing markets Grow faster than the markets Achieve double digit growth over time First Priority.....organic grow
Slide 21: The Transformation ... Tactics
The Transformation ... Tactics Investments...prioritizing a targeted business model Faster cash to cash cycle Low capital intensity...both working capital and reinvestment capital High IP....technology driven business Non-commodity products...high margins Good growth potential in >> GDP opportunitie
Slide 22: The Transformation ... Acquisitions
The Transformation ... Acquisitions 2005 OMC Shield kit cleaning services (technology service buy) 2005 TFT Thin film vacuum sputtered coatings 2006 CERAC Inorganic chemicals ... powders and evaporative targets (optics, security, solar, semiconductor) 2008 Techni-Met Thin film roll to roll flexible
Slide 23: The Transformation ... Key Results
The Transformation ... Key Results Revenue % Revenue % Revenue % 2002 2010 Consumer Electronics, Telecom Infrastructure and Data Storage 44% 45% Industrial, Commercial Aerospace, Defense and Science 24% 21% Automotive Electronics and Appliance 22% 9% Energy --- 6% Medical --- 5% Services 2% Other 10
Slide 24: The Transformation ... Key Results
The Transformation ... Key Results Last Recession Last Recession Last Recession This Recession This Recession This Recession This Recession This Recession 2002 2003 2009 2010 (F) Range 2010 (F) Range 2010 (F) Range EPS $ (.91) $(.25) $(.38) $1.75 - $2.00 EPS (2 yr cum) $(1.16) $1.37 - $1.62 Advanced
Slide 25: Brush Engineered Materials ... Transformed!
Brush Engineered Materials ... Transformed ! A Leaner, Faster Growing, More Diversified & Resilient Company More diversified, market and product basket Broader market reach, geography Growing faster, growth more sustainable Growth and higher margin contributions from acquisitions Less cyclical Lower
Slide 26: Valuations are Behind
Valuations are Behind 26 Transforming our World and Yours Valuations Yet to Recognize Transformation, Turnaround, and Growth Potential
Slide 27: Financial Review of Transformation and Outlook
Financial Review of Transformation and Outlook J. D. Grampa Transforming our World and Yours
Slide 28: Valuations are Behind
Valuations are Behind Target pricing multiples reduced as guidance increased Brush price down more than peer group, last 90 days Brush -16% Specialty Metals peers - 9% Advanced Materials peers - 5% Target multiples are below the Advanced Materials peer group ... at 16 vs over 20 Brush history is 17-
Slide 29: The Transformation ... Measuring Progress and Outlook
The Transformation ... Measuring Progress and Outlook Growth Advanced Materials, Integrated Metals balance Impact of the acquisitions Higher Value Model Margins, margin progress Cash to cash cycle Balance sheet Goals Outlook 29 Transforming our World and Yours
Slide 30: The Transformation... Accelerated Growth
2002-2010 (F) Sales 13% CAGR w/o acquisitions Acquisitions add 4% 30 The Transformation... Accelerated Growth Transforming our World and Yours $ in millions
Slide 31: Advanced Materials, a Higher Share of Total Sales
Advanced Materials, a Higher Share of Total Sales Integrated Metals Advanced Materials Transforming our World and Yours 31
Slide 32: Sales and EBIT per Employee
Sales per Employee (in thousands) 32 The Transformation... Accelerated Growth Transforming our World and Yours EBIT per Employee (in thousands)
Slide 33: Acquisitions ... Contributing to Growth and Profits
Acquisitions ... Contributing to Growth and Profits Approximately $175 million invested over the past 5 years ... 6 transactions ... 4 from relationships, 2 from auctions Each have added to our technology, products and markets Paid 5-7x trailing EBITDA Rapidly accretive Sales in 2010 approaching $30
Slide 34: Traditional vs Acquired Businesses Growth
100% 76% 24% Traditional Businesses 13% CAGR Acquired Businesses adds 4% CAGR Opportunities for New Avenues of Growth Greatly Expanded through Acquisitions 34 Transforming our World and Yours $ in millions
Slide 35: Shifting the Business Model to Higher Margins and Higher Value
The Transformation ... Shifting the Business Model to Higher Margins and Higher Value OP% OP%/VA* Integrated Metals 10.0% - 10.5% 14.0% - 16.0% Advanced Materials 5.5% - 6.0% 21.0% - 23.0% Company 5.5% - 6.5% 13.0% - 15.0% 35 Transforming our World and Yours Measuring Value Add * % of value added re
Slide 36: Faster Cash to Cash Cycle
The Transformation ... Faster Cash to Cash Cycle 36 Transforming our World and Yours *Net income + Depr & Amort - change in working capital - Capex Free Cash Flow* A/R, Inventory & A/P %/Sales 41% 25% $'s in millions
Slide 37: Faster Cash to Cash Cycle
Net Cash Provided from Operating Activities* (in millions) 37 The Transformation ... Faster Cash to Cash Cycle Debt to Total Capital Transforming our World and Yours The Balance Sheet *Change in cash, excluding the effect of investing and financing activities
Slide 38: Financial Goals/Objectives
The Transformation ... Financial Goals/Objectives Organic growth ... double digit over time Value add margins in mid to high teens (OP% of VA) Acquisitions/augmentations at $50.0 to $75.0 million/yr Drive A/R, inventory and A/P % of sales below 20% Capital spending below depreciation Keep debt to to
Slide 39: Outlook ... 1st half Summary
Outlook ... 1st half Summary Markets have responded and business is growing to significantly higher sales and profit levels Initial growth led by electronics, followed in late Q-1, early Q-2 by industrial and commercial aerospace markets Sales now at record levels Margins are up significantly Recent
Slide 40: 1st half Summary ... Reported Results
Note: Q-1 2010 included $.12 per share of charges, $1.3 million in EBIT. OP%/VA excludes high value metals 1st half Summary ... Reported Results Transforming our World and Yours 40
Slide 41: Outlook
Outlook Demand has increased across the Company's key markets including consumer electronics, telecom infrastructure, automotive electronics, industrial and commercial aerospace, defense and energy The strength has continued thus far in the third quarter End markets do not appear to be weakening at
Slide 42: Outlook ... Other Considerations, 2nd half and Beyond
Outlook ... Other Considerations, 2nd half and Beyond Electronic markets are not pausing; high end more sophisticated electronics are expanding Metal prices, raw material prices are a pass through and thus not a risk to performance Application base in Specialty Engineered Alloys business continues t
Slide 43: Outlook ... Other Considerations
Outlook ... Other Considerations Suspected supply chain inventory rebuilding does not appear to be a significant factor at this time New equipment for the medical market is installed and operating Cost management initiatives are working well and we expect the benefits to continue well into the futur
Slide 44: Specialty Engineered Alloys
Specialty Engineered Alloys W. G. Maxwell Transforming our World and Yours
Slide 45: Specialty Engineered Alloys - Overview
Specialty Engineered Alloys - Overview World's Leader in Copper Beryllium North America's only Bertrandite Ore Mine Only Fully Integrated Copper Beryllium Business (mine - manufacture - sales - distribution - technical support) 848 Employees at 8 Locations Growing Non-Beryllium Product Family of Hig
Slide 46: Operations and Distribution
Operations and Distribution Operation Location Products Mine Delta, UT Bertrandite Ore Chemical Mill Be Hydroxide Primary Operations Elmore, OH Cast Billets Strip Mill Strip Coils Bulk Mill Rod, Bar, Tube and Plate Finishing Operations Reading, PA Finished Strip and R&W Non-Be Casting Lorain, OH Cas
Slide 47: Independent Distributors
Independent Distributors Transforming our World and Yours 47 Americas Europe - - Admiral Metals - - Bohler Uddeholm - - Bohler Uddeholm - - Busby Metals - - Busby Metals - - Laminaries Matthey - - EJ Brooks - - Stainless - - Farmers - - Thyssen Krupp - - Mead Metals Asia Pacific - - Schmoltz & Bicke
Slide 48: Why use Copper Beryllium and our other Alloys?
Why use Copper Beryllium and our other Alloys? High Strength and Hardness High Thermal Conductivity High Thermal Stability High Electrical Conductivity Miniaturization Anti-Microbial Non-Biofouling Non-Magnetic Non-Sparking Anti-Galling Corrosion Resistant Good Machinability Good Castability Good Fo
Slide 49: Major Product Forms
Major Product Forms Strip Rod Wire Plate Bar Tube Billet Casting Alloys Transforming our World and Yours 49
Slide 50: Specialty Engineered Alloys - Annual Sales
Specialty Engineered Alloys - Annual Sales $ millions Transforming our World and Yours 50
Slide 51: Specialty Engineered Alloys - Transformation
Specialty Engineered Alloys - Transformation Lower Breakeven Reduce Overhead Improve Margins Attack Costs Increase Prices Lower Breakeven to Reduce the Impact of Business Cycles and Grow the Top Line Faster Growth Establish Growth Teams New Alloys New Applications New Geographies Higher Margin Produ
Slide 52: Transformation - Lower Overhead
Transformation - Lower Overhead 2009 OH Reduction (23%) $25 M Headcount Reduction Transition to 3rd Party Distribution More to Come (2010 to 2013) $6-8 M Depreciation Reduction Operating Efficiencies Lean Sigma Initiatives Transforming our World and Yours 52
Slide 53: Transformation - Attack Costs
Transformation - Attack Costs 2009 Variable Cost Reductions $5-7 M Labor Cost and Utilization Purchasing Initiatives Lean Sigma Savings More to Come 2010 - 2013 $2-4 M Transforming our World and Yours 53
Slide 54: Transformation - Pricing Actions
Transformation - Pricing Actions 2009 - Hired Pricing Consultant 2009 Theme - "Capture the Value of Brush" Freight Charge Expedite Fees Fabrication Increases Price Setting Transforming our World and Yours 54
Slide 55: Breakeven Reduction - Complete
Breakeven Reduction - Complete Transforming our World and Yours 55
Slide 56: Key Customers and Demand Generators by Market
Key Customers and Demand Generators by Market Transforming our World and Yours 56
Slide 57: Growth - Alloys/Processes Recently Developed
Growth - Alloys/Processes Recently Developed for: Strip Backplane Connectors, Processor Sockets, BITS and Modular Jacks Non-Be for micro motors and voice coil motors Bulk Non-Be Aerospace Bearings and Rub Strips Non-Be Oil &Gas Housings and Drilling Tools Non-Be Fittings for the Marine Market Non-Be
Slide 58: Applications - Smart Phones
Smart Phone Shipments (millions of units) Source: Frost and Sullivan Board to Board Contacts SIM Card Contacts Vibrator Motor Contacts Battery Contacts Applications - Smart Phones OEMs are seeing the value of using high performance alloys to make more reliable connectors Audio Jack Contact 2008 2009
Slide 59: Applications - Infrastructure (Local Area Networks)
Applications - Infrastructure (Local Area Networks) Shielding Modular Jacks PCB Sockets Processor Sockets Transforming our World and Yours 59
Slide 60: Applications - Voice Coil Motors
Applications - Voice Coil Motors Applications: Cell Phones Computers Digital Cameras BF158 was developed and launched in 2009 and is currently used to make VCM spring plates. During 2010, 93.4% of U.S. mobile phone sales will be camera phones. Transforming our World and Yours 60
Slide 61: Applications - Micromotors
Applications - Micromotors Applications: Automotive Home Electronics Appliance Power tools Toys Optical & Precision Instruments HVAC Brush springs are made using Alloy 25. Two new products have been developed for commutator applications and are currently being evaluated by potential new customers. C
Slide 62: Bulk Products - Revenue Growth
Bulk Products - Revenue Growth 2000 2010 Oil & Gas Exploration and Production 14% 27% Aerospace 14% 24% Automotive 37% 23% Consumer 6% 16% Ag & Mining Equip 2% 7% Undersea Telecom 19% 2% Electric Power 2% 1% $Sales $50M $100M(F) Transforming our World and Yours 62
Slide 63: Applications - Oil & Gas
63 Applications - Oil & Gas Under Water Wellhead Equipment ROV's, blow out preventers, hydraulic actuators, control fluid couplings Directional Drilling Equipment MWD, LWD, MPT systems Drill Bits Structural Rig Components Wellhead Control Equipment Artificial Lift Equipment ToughMet bearings in Elec
Slide 64: Energy Growth (Oil & Gas)
Energy Growth (Oil & Gas) Transforming our World and Yours 64
Slide 65: Applications - Aerospace
65 Applications - Aerospace Avionics/Electrical Systems Airframe Landing Gear Attachments Engine and Pylon Attachments Flight Control Mechanisms Horizontal Stabilizer & Rudder Attachments Hydraulic Systems Fuel Systems Wing Attachments ( Doors & Hatches Landing Gear Components Flight Attendant Jumps
Slide 66: Annual Growth of Brush Bulk Products Oil and Gas Sales vs Market
Annual Growth of Brush Bulk Products Oil and Gas Sales versus Annual Growth of the Underlying Market Aerospace Growth - (JPMorgan Forecast) Index Aerospace Growth - (JPMorgan Forecast) Numbers (2002=1.00) Aerospace Growth - (JPMorgan Forecast) 2002 2004 2006 2008 2010 - -R ate2012 - -F 2014 - -F 5.0
Slide 67: Applications - Mining Equipment
Applications - Mining Equipment Non-galling: dynamic bushings on 16 high- stress positions in all models. ToughMet 3 Replaces carburized 8620. • Corrosion resistance: all salt and potash miners specified with 100% ToughMet 3 bushings. ToughMet 3 Bushings Bearing life improved 6X Transforming our Wor
Slide 68: Applications - Injection Mold Tooling (Consumer)
Applications - Injection Mold Tooling (Consumer) MoldMAX mold core and cavity tooling inserts at all the hot spots Cycle time reduced 30%. Scrap rate reduced to zero. One less molding machine required to meet demand growth. Transforming our World and Yours 68
Slide 69: New Geographies
New Geographies Focus on Brazil, Russia, India and China Expanding Footprint in China New Distributors Growing Plastics Business in Asia Added Sales, Distribution and Slitting in India Developing Oil &Gas Business in Russia Increased Market Share in UK with Distribution Partner Transforming our Worl
Slide 70: Breakeven Reduction - Goal
Breakeven Reduction - Goal Transforming our World and Yours 70
Slide 71: What are the key points today?
What are the key points today? Overhead has Dropped and Margins have Improved Breakeven has Significantly Improved Better Positioned for Business Cycles Breakeven will Further Improve Robust New Product Development Growing Internationally Markets being Served are Robust (> GDP) Gaining Share in Grow
Slide 72: Advanced Material Technologies and Services
Advanced Material Technologies and Services R. W. Sager Transforming our World and Yours "Our Customers' First Choice!"
Slide 73: Strategic Augmentation
Strategic Augmentation Williams Precious Metals Acquired 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 2005 Thin Film Technology 2005 CERAC inc. 2006 Suzhou,
Slide 74: Sales History
Sales History 74 "Our Customers' First Choice!" Transforming our World and Yours $'s in millions
Slide 75: Transformation Elements
Transformation Elements Customer Centricity Sustain the "Base" Quality as the Differentiator Leading Edge Technologies Niche Markets / Applications Focus on Innovation The "Right" Organization / People Global Manufacturing Capabilities "Our Customers' First Choice!" Transforming our World and Yours
Slide 76: Markets
Markets PRECISION THIN FILM OPTICS MICROELECTRONICS SERVICES LARGE AREA SPECIALTY THIN FILM ADVANCED CHEMICALS BUFFALO BUELLTO N BARR BUFFALO WHEATFIEL D NBPT SINGAPORE EUROPE BREWSTER MILWAUKEE BUELLTON ACADEMY BUFFALO HARTFORD MILWAUKEE BUELLTON ACADEMY CHEMICAL / COMPOUNDS ALTERNATIVE ENERGY BEM
Slide 77: Overview Global Presence: Advanced Materials Technologies
Overview Global Presence: Advanced Materials Technologies 1,100 Employees 15 Asset Locations Strategic Business Units - Organization Support Functions Sales Administration Technology / new product development Virtual new product development i-Flow Stage-Gate Technology Experts "Our Customers' First
Slide 78: Distinctive Competencies
Distinctive Competencies Precious Metal Refining and Management - Au, Ag Pd PVD Materials and Services Melt and Powder Metallurgy, Shield Cleaning and Bonding Large and Small Area Thin Film Deposition and Design Hazardous Chemical Processing Electronic Packing Materials, Fabrication and Assembly Glo
Slide 79: Core Technologies
Core Technologies PM Casting / Rolling Non PM Casting Investment Casting High Volume Casting PM Refining (Au/Pd) Component Machining Assembly Welding Wire Fabrication Rod / Turks Head Hot Pressing (Induction) Hot Pressing (Resistive) Au/Ni Plating Component Design Brazing High Temp Component Assembl
Slide 80: Microelectronics & Services
Microelectronics & Services Key Markets Photonic & Optical Applications (LED) Semiconductor Defense Medical Products Semi PVD Targets Precious Metal Targets Evaporation Materials Architectural Glass Targets Vacuum Grade Joining Materials High Reliability Microelectronic Materials Hermetic Covers Pre
Slide 81: Products Precision Optics
Products Precision Optics Core Technology Key Markets Defense Applications Commercial Application Space, Science & Astronomy Thermal Imaging Flex Sensors Visi-Lids(r) Filter Sets Linear Variable Filters High Value Coatings Non-optical Coatings Hybrid Circuits Magnetron Sputter Ion Beam Sputter Therm
Slide 82: Advanced Chemicals
Advanced Chemicals Key Markets HI B LED's Applications Security Application Alternative Energy Specialty Inorganic Chemicals Products Optic Materials LED Phosphor Additives Specialty Chemicals Thermal Management Specialty Battery GaAs Precursors Solar PVD Targets Thin Film PV (CdTe,CIGS) Thermal Ref
Slide 83: Thin Film / Large Area Specialty Coatings
Key Markets Medical Applications Alternative Energy Display Technologies Products Core Technology Engineered Thin Film New Product Development Services Sputtering Converting Large Area Specialty Coatings Thin Film Stack with Custom Optical and/or Electrical Properties Precision Slit Base film and Co
Slide 84: End Use Markets
End Use Markets Market Growth Wireless 12-20% LED's 20-30% Precision Optics 12% Photovoltaic 30% Medical 8-12% Market Growth Defense Flat Semiconductor 6% Data Storage 10-12% PM Services 10+% "Our Customers' First Choice!" Transforming our World and Yours 84
Slide 85: Wireless/Photonics
Wireless/Photonics Wireless/Photonics Technology: Specialty Inorganic Compounds, and High Purity NPM/PM (Au) TFT LCD backlights, Monitor lighting, signage displays, billboards, traffic lights conventional lighting Technology: Gallium Arsenide devices (GaAs) Cellphones, PDA's, wireless devices requir
Slide 86: Precision Optics
Precision Optics Precision Optics Technology: Filter Arrays Satellite imaging filters, Medical /DNA sensors, filters Color matching food processing ,Gas analysis ,Laser , communications Technology: NIR and IR Lenses Thin Film (PVD) Deposition Process Multi -layer filters for Thermal weapon sites, la
Slide 87: Applications - Photovoltaic
Applications - Photovoltaic 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 based
Slide 88: Other Segments Key Initiatives
Other Segments Key Initiatives R. J. Hipple Transforming our World and Yours
Slide 89: Beryllium and Beryllium Composites - Applications
89 Beryllium and Beryllium Composites - Applications (lightweight, strength, dimensional, stability...typically 40% to 100% Beryllium) - - Infrared sensors for fighter jet and UAV optical targeting, radar and navigation/guidance systems and special ops (FLIR) -Structural and electronic components fo
Slide 90: Beryllium and Beryllium Composites - Platforms for Sustainable Growth
Beryllium and Beryllium Composites - Applications (lightweight, strength, dimensional, stability...typically 40% to 100% Beryllium) Optical data collection and targeting systems - vision and sensors Fabricated parts up x3 since 2009 Energy ITER (International Fusion Reactor) Nuclear fission reactors
Slide 91: Engineered Material Systems
91 Engineered Material Systems - 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 Overa
Slide 92: Engineered Material Systems - Platforms for Sustainable Growth
Engineered Material Systems - solving customers' problems with engineered strip metals Platforms for Sustainable Growth Li-ion battery power interconnect solutions Solar power interconnect clad foil solutions Medical - reroll and specialty applications High power specialty electronics products - glo
Slide 93: Summary Growth and Strategic Priorities
Summary Growth and Strategic Priorities R. J. Hipple Transforming our World and Yours
Slide 94: Ongoing value creation initiatives in three key areas
94 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 Impr
Slide 95: Annual Revenue Growth %
Annual Revenue Growth % +24% -16% -21% +8% +24% +9% +41% +25% -5% -21% +75% Telecom Crash Global Economic Recession Transforming our World and Yours 95 $'s in millions Our diversification and value creation initiatives are leading to strong growth in revenue and profitability
Slide 96: Why Brush
Why Brush Unique, rapidly growing advanced materials company Entering a period of accelerated growth driven by secular trends from market and product positioning Smart Mobile devices, 3G/4G, Commercial Aero, O&G, Alternative Energy, Optics, LED/LCD Sustainable long-term growth opportunities Ongoing
Slide 97: Analyst Meeting August 19, 2010
Analyst Meeting August 19, 2010 .... 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 Transf
Brush Engineered Materials — Investor Day (August 2010) on 6ix