Materion Corporation
BRUSH ENGINEERED MATERIALS INC (Form: 8-K, Received: 11/01/2010 16:17:51)
Table of Contents

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 1, 2010
Brush Engineered Materials Inc.
(Exact name of registrant as specified in its charter)
         
Ohio   001-15885   34-1919973
         
(State or other jurisdiction   (Commission   (IRS Employer
of incorporation)   File Number)   Identification No.)
     
6070 Parkland Blvd., Mayfield Heights, Ohio   44124
     
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code 216-486-4200
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


TABLE OF CONTENTS

Item 7.01 Regulation FD Disclosure
Item 9.01 Financial Statements and Exhibits
SIGNATURES
EX-99.1


Table of Contents

Item 7.01 Regulation FD Disclosure
     On November 1, 2010, Brush Engineered Materials Inc. updated its website with a slide presentation that will be presented by Richard J. Hipple, Chairman, President and Chief Executive Officer to investors on November 2, 2010. A copy of the presentation is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
Exhibits:
     
Exhibit Number   Description of Exhibit
 
   
99.1
  November 2010 Presentation

 


Table of Contents

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  Brush Engineered Materials Inc.
 
 
November 1, 2010  By:   Michael C. Hasychak    
    Michael C. Hasychak   
    Vice President, Treasurer and Secretary   
 

 

Exhibit 99.1
()
Brush Engineered Materials Inc. Company Overview November 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 Transforming our World and Yours

 


 

()
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 cause the actual results of the Company to differ materially from the results expressed or implied by these statements, including health issues, litigation and regulation relating to our business, our ability to achieve and/or maintain profitability, significant cyclical fluctuations in our customers’ businesses, competitive substitutes for our products, risks associated with our international operations, including foreign currency rate fluctuations, energy costs and the availability and prices of raw materials and other factors disclosed in periodic reports filed with the Securities and Exchange Commission. Consequently these forward-looking statements should be regarded as the Company’s current plans, estimates and beliefs. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Transforming our World and Yours 2

 


 

()
Why Brush Unique, rapidly growing, advanced materials company Serving leading edge, high-growth markets 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 Diverse set of high-growth new products and services Expanding margins Strong balance sheet Transforming our World and Yours 3

 


 

()
Major Segments (YTD Q3-2010) Advanced Material Engineered Material Specialty Engineered Beryllium and Technologies & Services Systems Alloys Beryllium Composites PVD Targets Electronic Connectors Electronic Connectors Opti- Elec Mirrors & Sensors Optical & Medical Coatings Clad & Inlay Products Integrated Circuitry Satellite Structures Refining Electron Beam Welding EMI Shielding X- ray Windows Electronic Packaging Energy Management Oil & Gas Drilling Speaker Diaphragms Advanced Chemicals Heavy Equipment Bearings Nuclear Components 67% 5% 23% 5% Advanced Materials Integrated Metals 72% 28% Note: %’s are of sales Transforming our World and Yours 4

 


 

()
Global Sales and Distribution Network Operations in the U.S. and eleven foreign countries International sales are approximately 30% of the Company (YTD Q3 2010) Act globally ... service locally! _—— Asia / Pacific —_ _ —— Europe —— _ _- Exports from USA -_ Japan Ireland Korea UK Germany China Taiwan Hong Kong Czech Republic Singapore Philippines Transforming our World and Yours 5

 


 

()
Advancing the World’s Technologies 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 — Lubricity Targeting profitable growth applications in growing markets Transforming our World and Yours 6

 


 

()
Typical End Uses Notebook computers Cellular phones, i-Pods™, i-Pads™ and network servers and other wireless communication devices Defense Electronic components in cars and trucks Commercial Aerospace Industrial products for Oil & Gas and Mining Medical Devices Disk Drives Transforming our World and Yours 7

 


 

()
Typical End Uses Telecom LED’s Infrastructure LCD Optics Alternative Energy Space/Science Heavy Equipment Transforming our World and Yours 8

 


 

()
Diverse Set of High Growth Markets YTD Q3 2010 Revenue* Other Services 5% 4% Energy 7% Consumer Electronics Medical 27% 6% Appliance 7% Telecom Infrastructure Defense and Science 7% 15% Automotive Electronics 8% Industrial and Commercial Aerospace *Value-added revenue, excludes high value metals 14% Transforming our World and Yours 9

 


 

()
Key Application Examples by Market Consumer Electronics Defense & Science Cell Phones Infrared Sensors for Fighter Jet and UAV Optical Targeting — I/O Connector Contacts — Battery Contacts Structural and Electronic Components for Satellites — Internal Antenna Contacts — LED Backlight Applications X-ray Windows in Security and Commercial Imaging Systems — Power amplification, SAW and BAW devices Laser Protection Optical Coatings Computers Night Vision System Optics — Board-to-Board Connectors — Processor Socket Connectors Industrial & Commercial — Electronic Shielding — Hard Disk Drive Read/Write Head Aerospace — Disk Drive Arm Heavy Off-Highway Equipment ToughMet bushings and bearings Telecom Infrastructure Plastic Tooling Base Stations BeCu Molds Coaxial Connectors and High Power Landing Gears Amplifiers ToughMet bushings and attachments Shielding for Servers Wing Attachments Undersea Repeater Housings Flight Control Mechanisms Transforming our World and Yours 10

 


 

()
Key Application Examples by Market Medical Energy Glucose Analysis Test Strips Oil & Gas Implantables for Seizure Control and Directional Drilling Equipment (ToughMet) Glucose Analysis Drill Bits (ToughMet Bearings) Wellhead Control Equipment (ToughMet) X-ray Mammography Solar DNA Sequencing Optics Flexible Solar Cell TCO Layers Electronic Interconnects for Cardiac Concentrator Photovoltaic Rhythm Management CIGS Powders Ultrasonic Scalpels Solar Power Interconnects Battery Automotive Electronics Li-ion Battery Power Interconnects High Brightness LED Materials High Temperature Connectors, Switches and Relays Appliance Leadframes for Power Steering and Brakes Connectors Air Bag Sensors Switches, Relays and Springs Sprinkler Head Washers Transforming our World and Yours 11

 


 

()
YTD Q3 — 2010 Markets have responded and business is growing with significantly higher sales and profit levels Initial growth led by electronics, followed by industrial and commercial aerospace markets Sales now at record levels Margins are up significantly Recent acquisitions are on track Cost controls are working well Transforming our World and Yours 12

 


 

()
YTD Q3 — 2010 ... Reported Results $ in millions (except per share amounts) Q-3 2010 2009 Q-1 Q-2 Q-3 Sales $190.5 $295.1 $325.9 $325.3 EBIT (.6) 13.2 20.5 20.1 EPS .01 .33 .67 .65 GP% 13.2% 16.7% 17.1% 17.9% OP% -— 4.5% 6.3% 6.4% OP%/VA -— 11.2% 15.0% 15.6% Note: Q-1 2010 included $.12 per share of charges, $1.3 million in EBIT. OP%/VA excludes high value metals Transforming our World and Yours 13

 


 

()
Outlook Normal seasonality of lower sales is expected in 4 th quarter 2010 sales are expected to be approximately $1.24 to $1.26 billion 2010 expected profit in the range of $2.00 to $2.10 per share, diluted Solid balance sheet is expected to be even more attractive by year end 2010 Transforming our World and Yours 14

 


 

()
Outlook ... Other Considerations High end more sophisticated electronics are expanding ... although subject to inventory swings Metal prices, raw material prices are a pass through and thus not a significant risk to performance Application base in Specialty Engineered Alloys business continues to grow Specialty Engineered Alloys are less cyclical and margins are higher due to actions taken Acquisitions and Advanced Materials segment markets offer additional near term upside Transforming our World and Yours 15

 


 

()
Outlook ... Other Considerations 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 future Investments in purchasing, marketing and pricing initiatives should add to margins going forward Acquisitions/augmentation opportunities continue to present themselves Transforming our World and Yours 16

 


 

()
The Transformation... Accelerated Growth 2002- 2010 (F) Sales 17% CAGR (13% w/o Acquisitions) $ in millions Transforming our World and Yours 17

 


 

()
The Transformation ... Overview From Metals & Mining through Specialty Metals to Advanced Materials — Beryllium Businesses...Metals and Mining — Expansion of WAMSpecialty Metals — Acquisitions Advanced Materials While increasing value add in all business units From single digit to long-term sustainable double digit growth To trading multiples of 9-11x from historic 6-8x EBITDA Transforming our World and Yours 18

 


 

()
The Transformation ... Strategy Fundamental Principles Driving Our Transformation 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 mass to perform better in significant downturns should they arise While building and maintaining a strong balance sheet through a higher cash generating business model Transforming our World and Yours 19

 


 

()
The Transformation ... Tactics Create a broader, more diversified base ... focused on greater than GDP opportunities — New Technologies — New Products — New Markets — Expanded Geography Target fastest growing segments of fast growing markets — Grow faster than the markets — Achieve double digit growth over time First Priority....organic growth Second Priority...“manageable” acquisitions Transforming our World and Yours 20

 


 

()
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 opportunities Acquisitions...accretive within 12 months — Augmentation of technology, markets and opportunities —$50 million invested per year from cash flow — Use debt and equity when appropriate while maintaining quality of balance sheet and financial flexibility Transforming our World and Yours 21

 


 

()
Advanced Materials, a Higher Share of Total Sales Integrated Metals Advanced Materials Transforming our World and Yours 22

 


 

()
The Transformation ... Shifting the Business Model to Higher Margins and Higher Value Measuring Value Add 2010 (F) 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% * % of value added revenue which excludes high value metals Transforming our World and Yours 23

 


 

()
The Transformation ... Faster Cash to Cash Cycle Free Cash Flow* A/R, Inventory & A/P %/Sales $’s in millions 41% 25% *Net income + Depr & Amort — change in working capital — Capex Transforming our World and Yours 24

 


 

()
The Transformation ... Faster Cash to Cash Cycle The Balance Sheet Net Cash Provided from Operating Debt to Total Capital Activities* (in millions) *Change in cash, excluding the effect of investing and financing activities Transforming our World and Yours 25

 


 

()
The Transformation ... Key Results A Faster Recovery in a Much Tougher Environment Last Recession This Recession 2002 2003 2009 2010 (F) Range EPS $ (.91) $(.25) $(.38) $2.00 — $2.10 EPS (2 yr cum) $(1.16) $1.62 — $1.72 Advanced Materials growth, market diversification, and Specialty Engineered Alloys improvements Note: Excludes non-operating charges (see GAAP reconciliation in Exhibit A) Transforming our World and Yours 26

 


 

()
The Transformation ... Financial Goals/Objectives Goals, next 3-5 years 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 total cap below 30% at peaks ROIC to mid teens Transforming our World and Yours 27

 


 

()
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 Improvement Lean Sigma-driven operating efficiency improvement New higher value added products Cost reductions Fixed and Working Capital Utilization Inventory turn improvement Lean Sigma-driven factory utilization gains Transforming our World and Yours 28

 


 

()
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 infrastructure costs, lower capital costs — Expanding margins — Stronger cash flow Transforming our World and Yours 29

 


 

()
Key Customers and Examples of Detail Applications by Key Markets Transforming our World and Yours

 


 

()
Well Recognized Key Customers & Demand Generators Consumer Electronics Defense & Science Western Digital Northrup Grumman RFMD DRS Skyworks Lockheed Martin Seagate Raytheon Apple BAE Motorola Goodrich Cree General Dynamics TriQuint HTC Industrial & Commercial Telecom Infrastructure Aerospace Cisco Boeing NXP Goodrich Tyco Caterpillar JDSU Joy NEC Airbus Bucyrus Transforming our World and Yours 31

 


 

()
Well Recognized Key Customers & Demand Generators Medical Energy Roche First Solar Schlumberger Medtronic MiaSolé Baker Hughes Varian Medical AMAT Halliburton Siemens Primestar Weatherford Agilent Nanosolar Applied Biosciences Adhesives Research Nipro Diagnostics Automotive Electronics Delphi Appliance Kostal Honeywell Johnson Electric Bosch Yasaki Siemens TRW Hotpoint Visteon Transforming our World and Yours 32

 


 

()
Applications — Cell Phones Grounding Clips and Audio Jacks (Alloy) Internal Antenna Contacts (Alloy) Internal Electronics (WAM): Thin Film Materials — Power amplifiers, SAW and BAW devices, filters, and IC’s Frame Lid Assemblies for SAW Thin Film Material for backlight Micro Mezzanine Connectors for applications using LED technology Battery Contacts (Alloy) LCD Screen (Alloy) Shield Cleaning I/O Connector Contacts (Alloy) Other Cell Phone Applications: Circuit Board and IC Inspection (Electrofusion/ Be Products) RoHS Compliance Assurance (Electrofusion): Transforming our World and Yours 33

 


 

()
Applications — Automotive Electronics Auto Dimming Mirror Mirror & Windshield Electronic Connectors (Alloy) Connections Air Bag Sensors (TMI) (TMI, Alloy) Window and Door On Board Turn Signal and Emergency Lithium Ion Battery Switches (Alloy) Telematics (Alloy) Flasher Relays (Alloy) Interconnects (TMI) Engine Efficiency Oxygen Sensors (TMI) Fuel Pump and Fuel Level Sensors (Alloy) Hybrid Vehicle Motor & Module Connectors (Alloy) Battery Management Battery & Relay Control Resistors Modules (Alloy) (TMI) Battery Terminals (Alloy) Engine Ignition and Control Modules Electronic Power Steering Modules (TMI) ABS Leadframes (TMI) Lamp Socket Connectors (Alloy) Transforming our World and Yours 34

 


 

()
Applications — Aerospace Flight Attendant Jumpseat Spring Avionics/Electrical Flight Control Systems Airframe Structure Mechanisms Horizontal Stabilizer & Rudder Attachments Wing Attachments Landing Gear Attachments Hydraulic Systems Engine and Pylon Attachments Doors & Hatches Landing Gear Components Other Aerospace Applications: Baggage Inspection (Electrofusion) Safety Slide Fuel Systems Nondestructive Evaluation (Cracked Mechanism Component Detection) (Electrofusion) Transforming our World and Yours 35

 


 

()
Applications — Oil & Gas Structural Rig Under Water Wellhead Equipment (Alloy) Wellhead Control Equipment (Alloy) Components (Alloy) Blow out preventers, hydraulic actuators Other Oil & Gas Applications: Directional Drilling Elemental Analysis (Electrofusion) Equipment (Alloy) Down Hole X-Ray Inspection (Electrofusion) MWD, LWD, MPT systems Drill Bits (Alloy Transforming our World and Yours 36

 


 

()
Applications — Photovoltaic (Solar) Technology: Crystalline Technology: Flexible Solar Cells / Building Silicon (Si) Integrated Photovoltaic: Technology: Cadmium Telluride (CdTe) Interconnect Materials Thin Film Services: Thin Film (PVD) Materials Front and backplane systems for Solar cells built in flexible substrates to accommodate Cadmium based solar cell architecture. N and P high efficiency designs. applications such as roofing tiles or defense. type Cadmium Semiconductor materials TCO Transparent Conductive Oxide layers Front and Back- contact layers Technology: Copper Indium Gallium Selenide (CIGS) Thin Film (PVD) Materials as well as Powders for Printing CIGS applications Copper Indium Gallium Selenide thin film and screen printing Technology: Concentrator Photovoltaic (CPV) applications for flexible and rigid solar cells. Thin Film (PVD) Materials Solar technology based on concentrating Solar rays into a semiconductor device via large lens. Anti- Reflection Coating Materials Technology: Amorphous Silicon (a- Precious metal contact materials Si, tandem and multi- junction) Thin Film (PVD) Materials Micro Electronic Packaging Products: Silicon based photovoltaic cells Bonding Ribbon Au -& Ag Front and back contact layers Lead- free Solders TCO Transparent Conductive Oxide layers Metallized Ceramic Substrates Transforming our World and Yours 37

 


 

()
Applications — Hard Disk Drives Thin film materials for the read/write head. (WAM) Sputtering Targets/Evaporation Materials (Precious Metals, Alloys, Non-Precious Metals, Alloys, Magnetic Materials, Heusler Alloys and Oxides) Disk Drive Arm (TMI) Clad Materials (Aluminum and Stainless Alloys) Applications growing into many commercial and mobile electronic products. Transforming our World and Yours 38

 


 

()
Applications — Medical Seizure Control (WAM/TFT): Thin Film Deposition Implantable Electrode — Parkinson’s disease (R&D) Dental X-Ray (Electrofusion) X-Ray Mammography (Electrofusion) Cardiac Rhythm Management (TMI): Subcutaneous Glucose Analysis (WAM/TFT/TechniMet): Electronic Interconnects/Components Thin Film Coatings — Electrode Monitoring device Niobium/Titanium Electron Beam Weld Other Medical Applications: External Glucose Analysis CT Scan (Electrofusion) (WAM/TFT/Techni-Met): Bone X-Ray (Electrofusion) Subcutaneous sensors for glucose measurement Ultrasonic Scalpels (Be Products) Advanced Drug Delivery Components (TMI) Hypodermic Components (TMI) Insulin Pump (Alloy): Diagnostic Electronic Components (TMI) EMI Shielding Anesthesia Monitoring Components (TMI) Electrical Terminals in Connectors Biopsy Instruments (TMI) Mechanical Chips Cauterizing Electronic Scalpel (TMI) Connector Systems for equipotential grounding Transforming our World and Yours 39

 


 

()
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 substrate vacuum sputtered coatings (medical) 2009 Barr Thin film vacuum sputtered coatings 2010 Academy Precious metal (Ag/Au) products and refining Approximately $175 M invested at EBITDA multiples of 5-7 Transforming our World and Yours 40

 


 

()
Major Product Forms YTD Q3 2010 Revenue Powders Other Semi-Finished 2% 3% Components 5% Coatings 8% PVD Targets 38% Bulk Metal 11% Other Precious Metals 13% Strip Metal 20% Transforming our World and Yours 41

 


 

()
Company Overview Review our two largest segments Growth drivers, future initiatives, sustainability Transforming our World and Yours 42

 


 

()
Profile Unique Advanced Materials Company 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 from high-tech consumer electronics to heavy industrial equipment Transforming our World and Yours 43

 


 

()
Core Competency A Common Approach to Markets and a Common Culture across our Operating Companies 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 toward favorable market and technology trends ... targeted to achieve strong profitable growth Transforming our World and Yours 44

 


 

()
Specialty Engineered Alloys Transforming our World and Yours

 


 

()
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 High Performance Alloys (Toughmet, Cupro-Nickel, Leaded CuNi wire, Moldmax V) Third Party Distribution is above 40% and Growing Sales are 55% outside North America and Growing Transforming our World and Yours 46

 


 

()
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 Cast Billets and Shapes Distribution Chicago, IL Finished Strip Detroit, MI Finished Bulk Stuttgart, Germany Finished Strip Fukaya, Japan Finished Strip Transforming our World and Yours 47

 


 

()
Independent Distributors 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 & Bickenback — ASSAB Pacific — Southern Copper & Supply — ATP - Thyssen Krupp — James Coppel Lee — Trident — Oristar — Tai Mao - Yamato Miyoshi — Yee Chong Transforming our World and Yours 48

 


 

()
Why use Copper Beryllium and our other Alloys? High Strength and Hardness Anti-Galling High Thermal Conductivity Corrosion Resistant High Thermal Stability Good Machinability High Electrical Conductivity Good Castability Miniaturization Good Formability Anti-Microbial Good Tribology Non-Biofouling Age Hardening Non-Magnetic Stress Relaxation Resistant Non-Sparking Transforming our World and Yours 49

 


 

()
Major Product Forms Strip Rod Wire Plate Bar Tube Billet Casting Alloys Mainly CuBe and other Specialty CuNi based products Transforming our World and Yours 50

 


 

()
Specialty Engineered Alloys — Annual Sales millions $ Transforming our World and Yours 51

 


 

()
Specialty Engineered Alloys — Transformation Lower Breakeven to Reduce the Impact of Business Cycles and Grow the Top Line Lower Breakeven Faster Growth — Reduce Overhead — Establish Growth Teams — Improve Margins — New Alloys — New Applications Attack Costs — New Geographies Increase Prices — Higher Margin Products Transforming our World and Yours 52

 


 

()
Transformation — Lower Overhead 2009 OH Reduction (23%) $25 M — Headcount Reduction — Transition to 3 rd Party Distribution More to Come (2010 to 2013) $6-8 M — Depreciation Reduction — Operating Efficiencies — Lean Sigma Initiatives Transforming our World and Yours 53

 


 

()
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 54

 


 

()
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 55

 


 

()
Breakeven Reduction — Complete Transforming our World and Yours 56

 


 

()
Key Customers and Demand Generators by Market Market % of Customers and Demand Generators Revenue Consumer Electronics 28% Hon Hai (FoxConn) Motorola Tyco RIM Johnson Electric Tec-Brite Apple 3M Industrial & Comm Aero 19% Boeing PMP Air Bus Amphenol Aerospace Goodrich Deutsch Engineered Messier Honeywell Controls Other (appl/ctrls,hyd) 19% Caterpillar Inc. P & H Mining Joy Mining Hitachi Construction Bucyrus America John Deere Auto Electronics 12% Delphi Daesung Kostal JST Corporation Omron Telecom Infrastructure 10% Tyco Undersea Samtec/Ditron NEC FCI Prevco Laird Energy 10% Schlumberger Weatherford Baker Hughes FMC Halliburton Energy Services Aker Solutions Medical, Defense & Science 2% Laird Tyco Electronics General Atomics Electric Boat Corporation Transforming our World and Yours 57

 


 

()
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 Larger Diam. Bearings for Heavy Equipment Rod and Wire — Electrical Connectors for Transportation Market Transforming our World and Yours 58

 


 

()
Applications — Smart Phones Board to Board Contacts Smart Phone Shipments (millions of units) Audio Jack Contact 2008 2009 2010 2011 2012 2013 Total 139 190 251 321 398 479 Source: Frost and Sullivan Typical Contact Applications Battery Contacts Audio Jacks SIM Card Contacts SIM Card Contact Vibrator Battery Board to Board Contacts Motor Contacts Contacts OEMs are seeing the value of using Vibrator Motor Contacts high performance alloys to make more reliable connectors Transforming our World and Yours 59

 


 

()
Applications — Infrastructure (Local Area Networks) Modular Jacks PCB Sockets Processor Sockets Shielding Transforming our World and Yours 60

 


 

()
Applications — Voice Coil Motors BF158 was developed and launched in 2009 and is No. Units Sold (000) Unit currently used to make 2010E 2014E Growth VCM spring plates. Worldwide Mobile PC Sales 170 264 94 During 2010, 93.4% of U.S. Handsets 1267 1516 249 Digital Cameras 119 165 46 mobile phone sales will be Total 1555 1945 390 camera phones. Applications: Cell Phones Computers Digital Cameras Transforming our World and Yours 61

 


 

()
Applications — Micromotors 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. Commutator Brush Applications: Automotive Home Electronics Optical & Precision Instruments Appliance HVAC Power tools Transforming our World and Yours 62

 


 

()
Bulk Products — Revenue Growth 2000 2010 (F) Oil & Gas Exploration 14% 27% and Production Aerospace 14% 24% Automotive 37% 23% Consumer 6% 16% Const & Mining Equip 2% 7% Undersea Telecom 19% 2% Electric Power 2% 1% Sales $50M $100M Transforming our World and Yours 63

 


 

()
Applications — Oil & Gas Wellhead Control Equipment Structural Rig Under Water Wellhead Equipment Components ROV’s, blow out preventers, hydraulic actuators, control fluid couplings Directional Drilling Equipment Artificial Lift Equipment ToughMet bearings in Electric Submersible MWD, LWD, MPT systems Pumps Drill Bits Transforming our World and Yours 64

 


 

()
Energy Growth (Oil & Gas) Transforming our World and Yours 65

 


 

()
Applications — Aerospace Flight Attendant Jumpseat Spring Avionics/Electrical Flight Control Systems Airframe Mechanisms Horizontal Stabilizer & Rudder Attachments Wing Attachments ( Landing Gear Attachments Hydraulic Systems Engine and Pylon Attachments Doors & Hatches Landing Gear Components Safety Slide Fuel Systems Mechanism Transforming our World and Yours 66

 


 

()
Aerospace Growth “Aircraft Delivered” — JPMorgan forecast Transforming our World and Yours 67

 


 

()
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 ToughMet 3 bushings. Bearing life improved Bushings 6X Transforming our World and Yours 68

 


 

()
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 69

 


 

()
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 World and Yours 70

 


 

()
Breakeven Reduction — Goal Transforming our World and Yours 71

 


 

()
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 Growing Markets Transforming our World and Yours 72

 


 

()
“Our Customers’ First Choice!” Advanced Material Technologies and Services Transforming our World and Yours

 


 

()
Strategic Augmentation “Our Customers’ First Choice!” 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, China (Greenfield) 2007 Louny, Czech Republic (Greenfield) 2007 Techni-Met 2008 Barr Associates 2009 Academy Corporation 2010 Transforming our World and Yours 74

 


 

()
Sales History “Our Customers’ First Choice!” $’s in millions Transforming our World and Yours 75

 


 

()
Transformation Elements “Our Customers’ First Choice!” 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 Transforming our World and Yours 76

 


 

()
Markets “Our Customers’ First Choice!” SBU’s / BUSINESS SEGMENTS PRECISION MICROELECTRONICS LARGE AREA SPECIALTY SERVICES ADVANCED THIN FILM OPTICS THIN FILM CHEMICALS BUFFALO BUFFALO WHEATFIELD NBPT BUFFALO ALTERNATIVE CHEMICAL / BUELLTON HARTFORD BARR SINGAPORE ENERGY COMPOUNDS EUROPE MILWAUKEE BREWSTER BUELLTON MILWAUKEE ACADEMY BEM BREWSTER BUELLTON BUFFALO SINGAPORE ACADEMY SINGAPORE BUELLTON BREWSTER MILWAUKEE MILWAUKEE BARR HARTFORD ACADEMY BARR ¦ Recent acquisitions Transforming our World and Yours 77

 


 

()
Overview “Our Customers’ First Choice!” 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 Transforming our World and Yours 78

 


 

()
Distinctive Competencies “Our Customers’ First Choice!” 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 Global Presence Marketing and Sales Depth Track Record of Success — Strong Long — Term Growth Customer Relationships Williams Brand Recognition Barr — Recognized Leader Precision Thin Film Optical Coatings Academy — Leader in Ag PVD for Architectural Glass Industry Transforming our World and Yours 79

 


 

()
Core Technologies “Our Customers’ First Choice!” PM Casting / Rolling Thermal Arc Spray Component Design Non PM Casting Selective Plating Brazing High Temp Investment Casting Thick Film Printing Component Assembly High Volume Casting GDMS / ICP / Wet Chemical / Synthesis PM Refining (Au/Pd) Chem Bonding Component Machining Powder Metallurgy Enhanced Target Assembly Welding Powder Sizing Design Wire Fabrication Large Area Machine Magnetron Sputtering Rod / Turks Head Grinding / Polishing IBS Evaporation Hot Pressing (Induction) Shield Kit Chemistry LA Thin Film Coating Hot Pressing (Resistive) Backing Plate Design Photo Lithography Au/Ni Plating Direct Bond Copper Reel-to-Reel PVD Plastic Component Process Transforming our World and Yours 80

 


 

()
Microelectronics & Services “Our Customers’ First Choice!” Key Markets Wireless Photonic & Optical Semiconductor Defense Medical Application Applications (LED) Products Semi PVD Targets High Reliability Microelectronic Materials Precious Metal Management Precious Metal Targets Hermetic Covers Precision Parts Cleaning Evaporation Materials Precious Metal Stamped Products Precious Metal Refining Services Architectural Glass Targets Precious Metal Fine Wire Precious Metal Grain Vacuum Grade Joining Materials High Power RF Packages Dental Alloys Vacuum Grade Joining Materials Core Technology Refining Solder Material Fabrication Vacuum Melting Brazing Thermal Management Design Metal Rolling, Annealing, Precious Metal Wire Fabrication Thick Film Printing Forging, & Extrusion High Temp Braze Cladding Precious Metal Management Twin Wire Arc Spray Wire EDM Sputtering Target Bonding Atomization Direct Bond Copper High Volume Stamping Precision Cleaning & Chemical Removal Turks Head Precision Machining Selective Precious Metal Plating Coatings Refining Target Enhancements Stamping Tooling Design Purity Control Assembly Powder Metallurgy Joining Technology Transforming our World and Yours 81

 


 

()
Precision Optics “Our Customers’ First Choice!” Key Markets Defense Commercial Thermal Imaging Space, Science & Applications Application Astronomy Products Linear Variable Filters Flex Sensors High Value Coatings Visi-Lids ® Non-optical Coatings Filter Sets Hybrid Circuits Core Technology Magnetron Sputter Ion Assisted Deposition Sub Assembly/Potting Ion Beam Sputter Precision Patterning Solder Assembly Thermal Evaporation Singulation Optical Design Transforming our World and Yours 82

 


 

()
Advanced Chemicals “Our Customers’ First Choice!” Key Markets HI B LED’s Security Alternative Specialty Inorganic Applications Application Energy Chemicals Products Optic Materials Specialty Chemicals Solar Thermal Management PVD Targets LED Specialty Battery Thin Film PV (CdTe,CIGS) Phosphor Additives GaAs Precursors Thermal Reflector, Mirrors High Purity Chemicals Evaporants (CdTe,CdS) Links Core Technology Hot Pressing (Induction) High Purity Chemicals E-beam Materials Hot Pressing (Resistive) Low Oxygen/Moisture EH&S Safety — Haz Matrerials Powder Sizing Chemical Synthesis Customizable, Flexible Niche Producer Solid State Precipitation reactions Transforming our World and Yours 83

 


 

()
Large Area Specialty Coatings “Our Customers’ First Choice!” Key Markets Medical Applications Alternative Energy Display Technologies Products Thin Film Stack with Custom Optical and/or Electrical Properties Precision Slit Base film and Coated Webs Au and Pd Coated Flexible Substrates Non Precious Metal Coated Flexible Substrates Core Technology Engineered Thin Film New Product Development Services Sputtering Converting Transforming our World and Yours 84

 


 

()
End Use Markets “Our Customers’ First Choice!” Market Growth Market Growth Wireless 12-20% Defense Flat LED’s 20-30% Semiconductor 6% Precision Optics 12% Data Storage 10-12% Photovoltaic 30% PM Services 10+% Medical 8-12% Transforming our World and Yours 85

 


 

()
Wireless/Photonics “Our Customers’ First Choice!” Technology: Gallium Arsenide devices (GaAs) Cellphones, PDA’s, wireless devices requiring pre -amplifiers’ , power amplifiers, oscillators, surface acoustical wave devices, Technology: Infrastructure Components High power thermal materials and products serving wireless communications, high power transmission Technology: Specialty Inorganic Compounds, and High Purity NPM/PM (Au) TFT LCD backlights, Monitor lighting, signage displays, billboards, traffic lights conventional lighting Transforming our World and Yours 86

 


 

()
Precision Optics “Our Customers’ First Choice!” Technology: NIR and IR Lenses Thin Film (PVD) Deposition Process Multi layer — filters for Thermal weapon sites, laser protection, automotive pedestrian protection, security camera, commercial thermal meters, UAV applications Technology: High Value Coatings Technology: Filter Arrays Identified as the “Go to” Precision coater of sophicatied high value Satellite imaging filters, Medical /DNA components including mirrors and lenses used in a number of sensors, filters Color matching food government /commercial space ,science and astronomy applications processing ,Gas analysis ,Laser         , through the world US,- Europe and Asia communications Transforming our World and Yours 87

 


 

()
Applications — Photovoltaic “Our Customers’ First Choice!” Technology: Flexible Solar Cells Building Integrated Photovoltaic Technology: Cadmium Telluride (CdTe) Thin Film Services Thin Film (PVD) Materials Solar cells built in flexible substrates Cadmium based solar cell architecture. N and P applications such as roofing tiles type Cadmium Semiconductor materials or defense. TCO Transparent Conductive Oxide layers Front and Back- contact layers Technology: Copper Indium Gallium Selenide (CIGS) Thin Film (PVD) Materials as well as Powders for Printing CIGS Technology: Concentrator Photovoltaic Applications (CPV) Copper Indium Gallium Selenide Thin Film (PVD) Materials thin film and screen printing Technology: Amorphous Silicon Solar technology based on concentrating Solar applications for flexible and rigid (a- Si, tandem and multi- junction) rays into a semiconductor device via large lens. solar cells. Anti- Reflection Coating Materials Thin Film (PVD) Materials Precious metal contact materials Silicon based photovoltaic cells Micro Electronic Packaging Products Front and back contact layers Bonding Ribbon Au -& Ag TCO (Transparent Conductive Oxide) layers Lead- free Solders Metalized Ceramic Substrates Transforming our World and Yours 88

 


 

()
Other Segments Key Initiatives Transforming our World and Yours

 


 

()
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 for satellites -X-ray windows in medical, security and commercial imaging systems -Optical mirrors for NASA space-based telescopes -Diaphragms for commercial and concert quality speaker systems Transforming our World and Yours 90

 


 

()
Beryllium and Beryllium Composites — Applications (lightweight, strength, dimensional, stability...typically 40% to 100% Beryllium) Platforms for Sustainable Growth Optical data collection and targeting systems — vision and sensors Fabricated parts up x3 since 2009 Energy — ITER (International Fusion Reactor) — Nuclear fission reactors (test, small scale, fuel additive) Commercial — “Truextent” speaker diaphragms — Semi-conductor equipment — wafer fab and test structural components Investment casting to expand AlBe application base Expanding materials technology beyond Be — using our manufacturing base — Solar — Defense Transforming our World and Yours 91

 


 

()
Engineered Material Systems — solving customers’ problems with engineered strip metals Disk Mill Products Drive Specialty cladding and inlay Arms Electron beam welding of dissimilar materials Profiling shapes by milling and/or grinding Close tolerance rolling Automotive Control Electroplating Components Precious and non-precious metals Overall and selective stripe capabilities Combination with current TMI technologies Specialty Electronic Connectors Automotive, Telecom/Computer, Medical, Energy Transforming our World and Yours 92

 


 

()
TMI Core Technologies Clad Inlays, Overlays Electron Beam Welding Electroplating Profiled Machining Solder Technologies Transforming our World and Yours 93

 


 

()
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 —global automotive Continue to expand international footprint Increase value add with “total” component supply Transforming our World and Yours 94

 


 

()
Exhibit A Reconciliation ofNon — GAAP Financial Measures 2002 2003 2009 2010 (F) Range* GAAP diluted EPS $ (2.15) $ (.80) $ (.61) $2.00 $2.10 -Derivative ineffectiveness         .16 Financing costs and deferred tax valuation allowances .55 Deferred tax valuation allowances 1.20 Severance and restructuring costs .07 Pension curtailment (.04) Other .04 .04 Non- GAAP operating run rate $ (.91) $ (.25) $ (.38) $2.00 $2.10 — *Reconciliation of 2010 Forecast information: expected earnings per diluted share for the 2010 full year excludes special items. It is not possible at this time to identify the potential amount or significance of these special items. Accordingly, a detailed reconciliation of earnings per diluted share for 2010 is impracticable. Transforming our World and Yours 95