Investor Presentation - May 2015

Investor PresentationMay 2015

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Table of Contents

About AMG 4Global Trends 5Critical Materials Expertise 6Critical Raw Materials 7Critical Materials Price Trends 8Critical Materials Prices: 10 Year Perspective 9AMG Business Segments 10Global Footprint 11Health and Safety Focus 13Financial Highlights 14Key Products & End Markets 23Appendix 29

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THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION BY AMG ADVANCED METALLURGICAL GROUP N.V. (THE “COMPANY”) AND MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON OR PUBLISHED, IN WHOLE OR IN PART, FOR ANY PURPOSE. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS.

This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries nor should it or any part of it, nor the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment whatsoever.

This presentation has been prepared by, and is the sole responsibility of, the Company. This document, any presentation made in conjunction herewith and any accompanying materials are for information only and are not a prospectus, offering circular or admission document. This presentation does not form a part of, and should not be construed as, an offer, invitation or solicitation to subscribe for or purchase, or dispose of any of the securities of the companies mentioned in this presentation. These materials do not constitute an offer of securities for sale in the United States or an invitation or an offer to the public or form of application to subscribe for securities. Neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever. The information contained in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information or the opinions contained herein. The Company and its advisors are under no obligation to update or keep current the information contained in this presentation. To the extent allowed by law, none of the Company or its affiliates, advisors or representatives accept any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation.

Certain statements in this presentation constitute forward-looking statements, including statements regarding the Company's financial position, business strategy, plans and objectives of management for future operations. These statements, which contain the words "believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “may,” “should” and similar expressions, reflect the beliefs and expectations of the management board of directors of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the achievement of the anticipated levels of profitability, growth, cost and synergy of the Company’s recent acquisitions, the timely development and acceptance of new products, the impact of competitive pricing, the ability to obtain necessary regulatory approvals, and the impact of general business and global economic conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein.

Neither the Company, nor any of its respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation.

The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

This document has not been approved by any competent regulatory or supervisory authority.

Cautionary Note

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Supply: AMGSources, processes, and supplies the critical materials the market demands

Global TrendsCO2 emission reduction, population growth, affluence, and energy efficiency

DemandInnovative new products that are lighter, stronger, and resistant to higher temperatures

AMG is a critical materials company

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Industry requiresMaterial-Science based innovation

Global Trends &Changes in Regulatory

Environments

Global Trends Driving Critical Materials Demand

Increased demand for Critical Raw

Materials

Global CO2reduction trends

Aerospace industry driven toward new technologies delivering weight reduction and fuel efficiency

CASE STUDY – Titanium Aluminides

AMG develops highly engineered Titanium Aluminides for the next generation of aircraft engines

Aircraft engines require innovative technologies to decrease fuel consumption

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AMG is a global leader in the management of critical materials supply chains

Increased demand for Critical Raw

Materials

Critical Materials Expertise

Local Presence

Legal Regime Expertise

Working Capital Management & Trade Finance

Complex Multi-stage Logistics

Risk Management, Insurance

Product & Process Technology

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Heavy REE

Niobium

Chromium

Light REE

Magnesium

GermaniumIndium

Gallium Cobalt

BerylliumPGMS

Fluorspar

Phosphate RockBorate

Magnesite

Tungsten

Coking Coal

Vanadium

Titanium alloysAluminum alloys

TinMolybdenum

Nickel

Antimony

Silicon Metal

Natural Graphite

Tantalum

Sup

ply

Ris

k

Economic Importance

Critical Raw Materials

• The EU identified 20 critical raw materials* to the European economy in 2014, focusing on two determinants: economic importance and supply risk

• The US identified 30 critical materials* which are vital to national defense, primarily through assessing supply risk

• AMG has a unique critical materials portfolio comprising:

– 5 EU critical raw materials

– 4 US critical raw materials

– Highly engineered Titanium Alloys for the aerospace industry

– High value added Aluminum Master Alloys

– Vanadium, Nickel and Molybdenum from recycled secondary raw materials

Melted or treated by AMG vacuum systemsProduced by AMG

Critical raw materials identified by the US and produced by AMG EU Critical Raw Materials

*Report on Critical Raw Materials for the EU, May 2014; Strategic and Critical Materials 2015 Report on Stockpile Requirements by Department of Defense in January 2015.

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Critical Materials Price Trends

The cumulative average 10 year price appreciation of AMG EU Critical Materials was 7.3 percentage points higher than LME Metals and 8.3 points higher than oil, while the AMG Portfolio outperformed LME Metals and oil by 4.9 and 5.9 percentage points, respectively

Critical Material prices outperform the LME

-25%

25%

75%

125%

175%

225%

1. AMG EU Critical Materials 2. AMG Portfolio (includes #1)

3. LME Metals 4. Oil

10 Yr CAGR:

-0.3%

10 Yr CAGR:

7.0%

10 Yr CAGR:

4.6%

10 Yr CAGR:

-1.3%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

AMG: EU Critical Materials

OILLME Metals

AMG Portfolio

Note: Compound annual growth rates are calculated over the period Mar ‘05 through Mar ‘15 using the equation ((Ending Value / Beginning Value) ^ (1 / # of years) - 1) where ending value is avg monthly price in Mar ‘15 and beginning value is avg monthly price in Mar ‘05; and where AMG EU Critical Materials include Sb, Cr, Graphite & Si; AMG Portfolio includes Sb, Cr, FeV, Si, Sr, Graphite, Ta, Sn & Ti; and LME Metals include Al, Co, Cu, Pb, Mo, Ni, & Zn. Avg annual growth rates (plotted above) are calculated over the same period using the equation ((Ending Value / Beginning Value) -1) and considering the same metal categorizations where ending value is avg monthly price in Mar of the given year and beginning value is avg monthly price in Mar ‘05.

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1.7

0.6 0.8 0.7

3.5

1.21.7

4.5

5.7

1.8

0

2.5

5

7.5

10

Scal

e

Metals

Note: Metal Positions are measured on a scale of 0 to 10, with 0 being the minimum price and 10 being the maximum price. They are calculated using the formula [(Mar 2005 month avg –min. monthly avg) / (max. monthly avg – min. monthly avg) *10] where maximum and minimum monthly averages are measured over the period 1 Mar 2005 through 31 Mar 2015.

Critical Materials Prices: 10 Year Perspective

• Metal prices are measured on a scale of 0 to 10, with 0 and 10 representing the minimum and maximum average quarterly prices occurring during the past 10 years

• The positions demonstrate the current price level of each metal with respect to their various historical price points over the past 10 years

AMG has significant potential upside within certain critical materials based on historical price ranges

Cr

Mo Ni FeV

TiSponge

Al

Si

Ta

Sb

Spec. Metals & Chem.Energy Transportation Infrastructure

Graphite

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AMG – A Global Supplier of Critical Materials AMG Business Segments

AMG Critical Materials

AMG’s conversion, mining, and recycling businesses

• Vanadium• Superalloys• Titanium Alloys & Coatings• Aluminum Alloys• Tantalum & Niobium• Antimony• Graphite• Silicon

AMG Engineering

AMG’s vacuum systems and services business

• Engineering• Heat treatment services

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China

Sri Lanka

ZimbabweBrazilMozambique

U.S.A.

Mexico

France

UKGermany

Czech Republic

Chromium Metal

Antimony Natural Graphite

Silicon Metal

Titanium Alloys & Coatings

Aluminum Master Alloys, Aluminum Powders

FeV Tantalum Niobium

AMG Global Footprint – Critical Materials

Nickel Molybdenum

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Sales office

Mexico City, Mexico

Port Huron (MI), USA

Berlin, Germany

Limbach, Germany

Mumbai, India

Suzhou, China

East Windsor (CT), USA

Wixom (MI), USA

Guildford, UK

Moscow, Russia

Krakow, Poland

Tokyo, Japan

Singapore, Singapore

Bangkok, Thailand

Headquarters Production Facility Heat Treatment Services

Hanau, Germany(Head Office)

Grenoble,France

AMG Global Footprint – Engineering

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AMG – Health and Safety FocusHealth and Safety Focus

Leading Safety Indicators

• The number of unsafe conditions reported increased 22%compared to the 12 month period ending March 2014. These are essential in order to avoid potential injuries.

• Lost time incidents over the 12 months ending March 2015 are down 33% from the previous 12 month period.

Rigorous commitment to safety reflected in continually improving safety records

Period Ending March

Lost Time Incidents in the Last 12 Months

12 Month Average Lost Time Incident Rate

12 Month Average Incident Severity Rate

2014 48 1.82 0.29

2015 32 1.30 0.19

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Financial Highlights

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Amounts in $M Q1 2015 Q1 2014 % Change

Revenue $257.0 $274.9 (6%)

Gross profit $43.3 $46.4 (7%)

Gross margin % 16.8% 16.9% N/A

EBITDA $20.4 $20.1 2%

EBITDA margin % 7.9% 7.3% 8%

Net debt $86.8 $160.9 (46%)

Return on Capital Employed (ROCE) 12.7% 9.7% 31%

Q1 2015 at a Glance

• Q1 2015 EBITDA increased by 2% compared to Q1 2014.

• The appreciation of the US Dollar compared to the Euro in the first quarter of 2015 in relation to the first quarter of 2014, resulted in a reduction in revenue and EBITDA of $27.3 million and $2.3 million, respectively.

• Annualized ROCE increased to 12.7% in Q1 2015, from 9.7% in Q1 2014

• Net debt: $86.8 million– $73.7 million reduction on net

debt since Q4 2013– Net debt down 55% since 2012– Net debt to LTM EBITDA: 1.01x

Net debt down 46% since Q4 2013

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Industry Consolidation

Process Innovation & Product Development

Pursue opportunities for horizontal and vertical industry consolidation across AMG’s critical materials portfolio

Continue to focus on process innovation and product development to improve the market position of AMG’s core critical materials businesses

Strategy

Asset Dispositions

Divest peripheral assets

AMG’s strategy is to build its critical materials business through industry consolidation, process innovation and product development

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Improve ROCE

Increase Productivity

AMG 2014 Objectives Update

• Increase ROCE through operational improvements and disciplined capital management

• Continuous cost and product mix optimization

2015 Financial Objectives

AMG aims to improve ROCE and complete refinancing in 2015

Objective Description

Refinance • Complete syndicated bank debt refinancing by end of Q2 2015

Complete AMG Engineering Cost Reduction Program

• Implement new procurement optimization program and reduce headcount

• Annualized savings of approximately $7 million per year

• To be completed Q4 2015

Maintain Conservative Balance Sheet

• Optimize capital structure for financial flexibility

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AMG – A Global Supplier of Critical Materials 2015 Outlook

In this challenging environment, AMG will continue to reduce cost, optimize its product portfolio and maintain a conservative balance sheet.

Despite weakening metals prices and the unfavorable translation impact of foreign currency on reported earnings, AMG expects to generate EBITDA in-line with prior year and improve its return on capital employed.

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$194.2

$160.5

$87.8 $86.8

2012 2013 2014 Q1 2015

$65.6 $69.7

$95.1

$5.7 $3.8

2012 2013 2014 Q1 2014 Q1 2015

Financial Data: Net Debt & Operating Cash flowFinancial Data: Net Debt & Operating Cash Flow

Net debt: $86.8M– $73.7M reduction on net debt

since December 31, 2013– Net debt down 55% since 2012– Net Debt to LTM EBITDA: 1.01x

AMG’s primary debt facility is a $370 million term loan and revolving credit facility

– 5 year term (until 2016)– In compliance with all debt

covenants

Q1 ‘15 Operating Cash Flow of $3.8 million, compared to $5.7 million in Q1 ‘14

Net Debt (in millions of US dollars)

Operating Cash Flow (in millions of US dollars)

$107.4M reduction in

net debt since 2012

AMG continues to generate

positive operating cash

flow

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Financial Data: ROCEFinancial Data: ROCE & EBITDA

• Q1 ‘15 EBITDA up 2% versus Q1 2014

• The appreciation of the US Dollar compared to the Euro in the first quarter of 2015 in relation to the first quarter of 2014, resulted in a reduction in EBITDA of $2.3 million.

• Q1 ‘15 ROCE is 31% higher than Q1 ‘14 (an increase of 3percentage points)

• ROCE improvements are the result of EBITDA growth, efficient use of capital and working capital reductions

Annualized ROCE

EBITDA (in millions of US dollars)

$20.1 $20.4 $23.4 $21.9

$20.4

Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15

Q1 ’15 ROCE has exceeded Q1 ’14 by 31%

Q1 ‘15 EBITDA up 2% versus

Q1 ‘14

9.2%7.4%

11.9%

9.7%

12.7%

2012 2013 2014 Q1 '14 Q1 '15

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Working Capital Days reduced by 65% since Q3’10

Financial Highlights

79

69 70 70 70

65 65 65 6562 61

53

4743

47

42

31

23

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Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Working Capital Reduction

51 days, or 65% Reduction

Q1‘11

Q2‘11

Q3‘11

Q4‘11

Q1‘12

Q2‘12

Q3‘12

Q4‘12

Q1‘13

Q2‘13

Q3‘13

Q4‘13

Q1‘14

Q2‘14

Q3‘14

Q3‘10

Q4‘10

Q4‘14

Q1‘15

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$20.1 $20.4$23.4 $21.9

$20.4

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

$274.9 $278.9 $279.7

$260.4 $257.0

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

$46.4 $45.0$48.1

$44.9 $43.3

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

FY 2014: $1,093.9

FY 2014: $85.7

FY 2014: $184.3

Financial HighlightsFinancial Highlights

Revenue (in millions of US dollars)

EBITDA (in millions of US dollars)

Gross Profit (in millions of US dollars)

6%YoY

2%YoY

7%YoY

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Key Products & End Markets

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Key Products

Revenue (in millions of US dollars)

Gross Profit (in millions of US dollars)

$-

$50

$100

$150

$200

$250

$300

YTD MAR 2014 YTD MAR 2015

Vacuum Furnaces Ti Master Alloys and Coatings Al Master Alloys and PowdersFeV & FeNiMo Chromium Metal AntimonyTantalum & Niobium Graphite Si Metal

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

YTD MAR 2014 YTD MAR 2015

YTD 2015$43.3

YTD 2015$257.0

YTD 2014$274.9

YTD 2014$46.4

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Critical Materials – Market Trends


Critical Materials Market TrendsMajor End Markets Major Customers

AMG AntimonyAntimony Trioxide

Antimony MasterbatchesAntimony Pastes

PlasticsFlame Retardants

Micro Capacitors, Superalloys

AMG BrazilTantalum & Niobium

Communications & Electronics

Fuel Efficiency

Expandable Polystyrene (EPS),

Battery Anodes

AMG GraphiteNatural Graphite

Energy Saving

Energy Storage

Aluminum Alloys,Solar

AMG SiliconSilicon Metal

Fuel Efficiency

Clean Energy

Customer Confidential

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Critical Materials – Market Trends

AMG AluminumAluminum Master Alloys

Aluminum PowdersFuel EfficiencyAerospace,

Automotive

InfrastructureAMG VanadiumFerrovanadium

Ferronickel-molybdenumInfrastructure Growth

Aerospace

AMG Titanium Alloys & Coatings

Titanium Master Alloys& Coatings

Fuel Efficiency

Energy Saving

AMG Superalloys UKChromium Metal

Fuel EfficiencyAerospace



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AMG EngineeringCapital Goods

(Vacuum furnaces)

Fuel Efficiency

Electronics

AMG EngineeringVacuum Heat Treatment

ServicesFuel EfficiencyAerospace,

Automotive

Engineering – Market Trends


Aerospace, Automotive


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AMG – A Global Supplier of Critical Materials

Notes: *Based on 2014 Full Year Financial Statements; **ROW refers to the rest of the world.

A Global Supplier of Critical Materials

22% Infrastructure

22% Specialty Metals & Chemicals

40% Transportation

16% Energy

Q1 2015 Revenues by End Market

Approx. 3,000employees

AMG is a global supplier of Critical Materials to:

$1.09 billion* annual

revenues

Transportation InfrastructureEnergySpecialty Metals & Chemicals

43% Europe

36% North America

16% Asia5% ROW

Revenue by Region**

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Appendix

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As atIn millions of US Dollars

March 31, 2015Unaudited

December 31, 2014

Fixed assets 220.9 237.4Goodwill and intangibles 28.8 31.7Other non-current assets 68.1 68.9Inventories 135.7 145.4Receivables 139.4 135.3Other current assets 80.8 51.6Cash 99.3 108.0

TOTAL ASSETS 773.0 778.4

TOTAL EQUITY 131.0 101.0Long term debt 160.3 168.0Employee benefits 147.8 159.7Other long term liabilities 66.3 68.9Current debt 25.8 27.9Accounts payable 119.8 134.4Advance payments 28.4 31.7Accruals 56.5 53.3Other current liabilities 37.1 33.7TOTAL LIABILITIES 642.1 677.4

TOTAL EQUITY AND LIABILITIES 773.0 778.4

Consolidated Balance Sheet

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For the quarter ended In millions of US Dollars



Revenue 257.0 274.9

Cost of sales 213.7 228.5Gross profit 43.3 46.4Selling, general & administrative 30.1 35.0Asset impairment & restructuring 1.7 0.8

Other income, net (0.1) (0.3)Operating profit (loss) 11.6 10.8Net finance costs 3.5 4.3Share of loss of associates (0.1) (0.1)

Profit before income taxes 8.1 6.6Income tax expense 5.5 3.3

Profit for the period 2.7 3.4Shareholders of the Company 2.7 3.9Non-controlling interest (0.0) (0.6)

Adjusted EBITDA 20.4 20.1

Consolidated Income Statement

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Consolidated Statement of Cash Flows

For the quarter ended In millions of US Dollars



EBITDA 20.4 20.1Change in working capital and deferred revenue (14.4) (7.2)Finance costs paid, net (0.4) (0.9)Other operating cash flow (1.2) (5.0)Cash flows from operations before taxes 4.4 7.0Income tax paid (0.6) (1.3)Net cash flows from operations 3.8 5.7Capital expenditures (3.8) (5.9)Other investing activities (1.7) 0.1Net cash flows used in investing activities (5.5) (5.7)Net cash flows used in financing activities (0.6) (5.1)Net decrease in cash and equivalents (2.2) (5.2)Cash and equivalents at January 1 108.0 103.1Effect of exchange rate fluctuations on cash held (6.5) 0.0

Cash and equivalents at March 31 99.3 97.9

Investor PresentationMay 2015

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Investor Presentation - May 2015