Enabling
a Greener
Future

Financial & Operational

Highlights

1,059.7 9%

Revenue $m

214.6 15%

Gross Profit $m

125.5 25%

EBITDA $M

78.5 40%

CASH FROM OPERATING ACTIVITIES $M

16 7%

WORKING CAPITAL DAYS

10.3 41%

NET DEBT $M

0.82 (21%)

LOST TIME INCIDENT RATE

1.31 (22%)

TOTAL INCIDENT RATE

1.80 36%

DILUTED EARNINGS PER SHARE $

AMG Critical Materials

814.4

REVENUE $M

100.0

EBITDA $M

AMG
Engineering

245.2

REVENUE $M

25.5

EBITDA $M

AMG Group

Revenue By
End Market

22%

Specialty Metals
and Chemicals

11%

Energy

42%

Transportation

25%

Infrastructure

From the CEO

Letter
to
Shareholders

In 2017, AMG’s market capitalization increased by 201%, driven by the continuing development of the lithium project, communication of the Company’s new strategic framework and strong financial performance.

AMG Market Capitalization

12/31/16 to 12/31/17 (€) Millions

Note: AMG market capitalization comprises historical data per Yahoo Finance from December 31, 2016 through December 31, 2017, calculated using the 28.2m shares outstanding at the end of 2016, and 29.9m shares outstanding at the end of 2017.

Total AMG Enabling Technologies Cumulative CO2 Reductions

Metric tons

Project Update

Lithium
Moving
Toward
Production

AMG will enter the lithium market in 2018 and expects to be the low-cost producer of lithium concentrate globally by leveraging its existing mining infrastructure in place at the Mibra mine.

In 2017, AMG made significant strides in the advancement of its Brazilian lithium project. Phase I, which entails the construction of AMG’s first 90,000 metric ton lithium concentrate plant, is on time and on schedule, with production start-up expected in mid-2018. As announced in December 2017, AMG is currently finalizing detailed engineering for Phase II, which involves construction of a second 90,000-metric ton lithium concentrate plant.

AMG Critical Materials

Product
Demand
Rises

AMG Critical Materials’ revenue increased by 16% in 2017, to $814.4 million, thanks to a combination of improved pricing and higher sales volumes. Within the division, revenue increased in seven of AMG’s eight critical materials business units. Revenues generated from AMG’s Tantalum and Niobium business decreased by 20% in 2017, primarily due to the fire damage sustained at the Mibra mine in Brazil in the first quarter of 2017. Repairs to the damaged plant were successfully completed, on schedule, in September 2017, restoring full tantalum concentrate production capacity.

AMG’s Critical Materials Division increased revenue by 16%, from $701.6 million in 2016 to $814.4 million in 2017, and delivered a 36% increase in EBITDA to $100.0 million.

AMG Engineering

Innovating
for
Growth

Strong demand from the Asian market as well as increasing demand from the North American market led to a 6% increase in order intake in 2017, compared to 2016. In addition, demand from AMG Engineering’s core markets in Europe strengthened in 2017, driven by the ongoing growth in the automotive sector and the continued importance of titanium powder production for 3-D printing applications.

The robust order intake in 2017 resulted in a 53% improvement in year-end order backlog, from $135.5 million as of December 31, 2016, to $207.0 million as of December 31, 2017, the highest level of order backlog since June 30, 2009. Sales in these markets remained robust throughout the year and we expect further growth in 2018.

AMG’s Engineering division increased gross profit by 14% in 2017, from $56.8 million in 2016 to $64.8 million in 2017, and delivered a 53% improvement in year-end order backlog.

Download the 2017 Annual Report

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