Competence in Aluminium

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Disclaimer

Cautionary statements

• The forecasts, plans and forward-looking assessments and statements contained in this, p gpresentation are based on the information currently available to us. Should the assumptions onwhich the forecasts have been based fail to occur, the targets not be met or risks materialize, thenthe actual results may deviate from the results currently anticipated. We undertake no obligation toupdate publicly any such forecasts in light of new information or future events.p p y y g

• We have exercised the utmost diligence in preparing this presentation and have checked the data contained therein. However, rounding, transmission and printing errors cannot be ruled out. This report is also available in German In case of doubt the German version prevailsreport is also available in German. In case of doubt, the German version prevails.

2 H1 2011

AMAG is a producer of primary aluminium, high quality foundry alloys and specialty flat rolled productsfoundry alloys and specialty flat rolled products

Casting Division Rolling Division Metal Division

Sept-Îles, Canada Ranshofen, Austria

Focus: Primary aluminium production through smelting

Focus: Production of recycling foundry alloys

Focus: Specialty flat rolled products

H1 2010 H1 2011

T t l

H1 2010 H1 2011

T t l

H1 2010 H1 2011

T t lTotal shipments 57.7 kt 56.8 kt

Strengths: Low cost smelter with energy supplied by hydro power

Strengths: Reliable deliveries of a wide range of lot sizes; energy efficiency and low carbon dioxide emissions

Strengths: High-value-added products, flexible production set-up, broad base of blue chip customers

Total shipments 39.5 kt 38.9 kt Total

shipments 76.2 kt 79.8 kt

Integrated site brings strong advantages, e.g. allows development of new products and processes; production of all types of aluminium alloys allows recycling of a wider range of scrap grades

low carbon dioxide emissions blue chip customers

3

Source: Company information

H1 2011

AMAG value chain

Raw materials, inputs (alumina, pet coke etc.) CustomersSmelting Primary-

aluminium( p )

Casting Recycling-foundry alloys Customers

aluminium

Scrap Recycling

Flat rolledfinished products CustomersCasting / rolling

heat treatment

Sept-Îles, Canada Ranshofen, Austria

H1 20114

Strong first half after record year 2010

Highlights H1 2011

• Strong demand across all divisions resulted in strong• Strong demand across all divisions resulted in strongorder book

• Sales increased by 21% from 354.8 mEUR in 2010 to 429.2 mEUR in 2011

• H1 2011 results outperformed comparable result of record year 2010:

EBITDA 81 9 mEUR after 72 9 mEUR in 2010 (+12%)EBITDA 81.9 mEUR after 72.9 mEUR in 2010 (+12%)

EBIT 59.5 mEUR after 50.3 mEUR in 2010 (+18%)

• Aluminium price (3month LME) H1 2011 between 2,387 USD/t and 2,795 USD/t, average at 2,576 USD/t

5 H1 2011

Increasing demand for primary aluminium

110

Million metric tons

90

100

110Worldwide aluminium productionbetween 1900 and 2010 was950 million tons, 50% thereof in thelast 17 years.

70

80

yDue to the unlimited recyclability ofaluminium approximately 75% of theproduced volume is still available inthe material’s cycle.

Further doubling of demand expected

2010 40 540

50

60y demand expected

within the next 10-12 years

40,5

20

30Demand doubled in the last 15 years

0

10

1900

1905

1910

1915

1920

1925

1930

1935

1940

1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

2030

2035

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 26

Source: CRU, January 2011

H1 2011

AMAG expects above GDP growth in shipments across it f i d i lt li ti d k tits focus regions and specialty application end markets

Key highlights driving growth of flat rolled products CAGR 2010 – 2013e

• Driven by a secular substitution trend towards light-weight design across all industriesal

Mar

ket

Global flat rolled products +7.6%• Driven by increased demand from

China

• Western Europe with stable growth

Gen

era

Western Europe +3.3%Western Europe with stable growth• Eastern Europe catching up to Western

Europe• Asia, especially China and India, R

egio

ns

Western Europe +3.3%

Eastern Europe +6.6%

catching up to the rest of the world

• Aircraft through higher aircraft orders especially from Paris Air show

rket

s

Asia +10.9%

Aircraft +8.9%1)

• Increased automotive sales• Growth of Machinery / Construction

industry

End

mar Transport +10.1%

Machinery & Construction +8.3%

7

Source: CRU, May 20111) only data from Western Europe available

7 H1 2011

What makes AMAG unique?

• Highest quality for the product markets supplied by AMAG (niches)

L di i f i l d• Leading portion of special products (around 50% of the products are specialties = leading position in the branch, source: CRU)

• Highest flexibility (configuration of production lines competence and expertHighest flexibility (configuration of production lines, competence and expert knowledge of employees)

• Production of all aluminium alloy families (1xxx–8xxx) at one single l ti ( i ld id CRU)location (unique worldwide, source: CRU)

• Sustainable production (hydro power for the smelter Alouette, recycling content in Ranshofen far above industry average)y g )

8 H1 2011

Key investments H1 2011 in Ranshofen

Capacity expansion +20% well on track• Precision plate manufacturing plant on stream, first AMAG TopPlate® products

sold• Construction of passivation line on schedule – increasing demand from

automotive industry• Further 21 mEUR investment as part of the total investment programme of

75 mEUR approved by supervisory board in July 2011 (new shear line, new furnace plus capacity increase of slab caster)

Other projects M d i ti f t i t t t li (t i l ll ) fi i h d• Modernisation of strip treatment line (tension leveller) finished

• Logistic center of rolling mill under construction

New hot rolling mill project on trackNew hot rolling mill project on track

9 H1 2011

AMAG Group - key figures Q2 / H1 2011 in mEUR Q2/2011 ) Q2/2010 *) Change

in % H1/2011 ) H1/2010 *) Changein % 2010 *)

Sales 214,6 186,2 15 % 429,2 354,8 21 % 728,0

EBITDA 46,0 41,8 10 % 81,9 72,9 12 % 139,0, , , , ,

Depreciation, amortization and impairment losses (11,2) (11,4) (2 %) (22,4) (22,6) (1 %) (45,1)

EBIT 34,9 30,4 15 % 59,5 50,3 18 % 93,8

Net income after taxes 28 5 20 5 39 % 48 1 37 3 29 % 75 7Net income after taxes 28,5 20,5 39 % 48,1 37,3 29 % 75,7

Earnings per share (in EUR) 0,81 1,36

Cash flow from operating activities 47,4 20,4 132 % 55,8 41,1 36 % 75,4

Cash flow from investing activities (8 1) (9 6) (16 %) (16 7) (17 1) (2 %) (43 5)Cash flow from investing activities (8,1) (9,6) (16 %) (16,7) (17,1) (2 %) (43,5)

Working Capital Employed 1) 246,0 195,2 26 % 228,4

Capital Employed 2) 492,3 464,1 6 % 466,6

Equity 475,9 497,0 (4 %) 514,2

Net financial debt 3) 30,8 7,2 326 % (4,7)

Employees 4) 1.218 1.163 5 % 1.213 1.169 4 % 1.175

*) the comparable values shown for the year 2010 refer to AMAG Holding GmbH and its subsidiaries

2) Annual average of equity, interest-bearing financial liabilities, cash and cash equivalents

3) Interest-bearing financial liabilities, plus non-interest bearing loan (Canada), minus cash and cash equivalents

4) Average general services staff (full time equivalent) including leasing personnel without apprentices

1) Inventories, Trade receivables, Trade payables (without Trade payables for investments)

10 H1 2011

4) Average general services staff (full time equivalent) including leasing personnel, without apprentices

AMAG's percentage personnel share out of the 20 % participation in smelter Alouette (approx. 200 employees) is not included in personnel count

Outstanding top-line performance

Total shipments (tons)

• Stable total shipments173 1761% • Stable total shipments• Operation almost at

capacity limits88 90

173 176

+2%

+1%

85 86 Q2Q1

+0%

External sales (mEUR)

• Sales growth due to429

2010 2011

• Sales growth due to higher aluminiumprices and increased shipments of rolled186

215

355429

+15%

+21%

shipments of rolled products

169 215+27% Q2Q1

11 H1 2011

2010 2011

Strong increase in profitability

EBITDA (mEUR)

82

4246

7382

+10%

+12%

Growth in profitability mainly due to:

hif i d i

31 36+15% Q2Q1

Net income (mEUR)

• shift in product mix tohigher value productsand i d i48

2010 2011

• increased margins over LME

2129

3748

+39%

+29%

17 20

21

+17% Q2Q1

12 H1 2011

2010 2011

Metal DivisionKey figures for Metal Divisonin mEUR Q2/2011 Q2/2010 *) Change

in % H1/2011 H1/2010 *) Changein % 2010 *)

Sales 153,4 130,1 18 % 301,2 247,2 22 % 513,4

f hi h i t l 99 6 82 1 21 % 204 7 161 0 27 % 335 6of which internal 99,6 82,1 21 % 204,7 161,0 27 % 335,6

Shipments in tons 1) 33.082 31.029 7 % 56.842 57.659 (1 %) 114.027

of which internal shipments in tons 4.021 2.160 86 % 5.546 4.157 33 % 7.563

EBITDA 24 8 29 4 (16 %) 34 5 45 7 (24 %) 75 8EBITDA 24,8 29,4 (16 %) 34,5 45,7 (24 %) 75,8

EBIT 19,5 23,6 (18 %) 23,6 34,2 (31 %) 52,7

Employees 2) 7 7 0 % 7 7 0 % 7

*) the comparable values shown for the year 2010 refer to AMAG Holding GmbH and its subsidiaries*) the comparable values shown for the year 2010 refer to AMAG Holding GmbH and its subsidiaries1) Shipments from Alouette only2) Average general services staff (full time equivalent) including leasing personnel, without apprentices AMAG's percentage personnel share out of the 20 % participation in smelter Alouette (approx. 200 employees) is not included in personnel

Market H1 2011 • Average aluminium price increased from 2,163 USD/t (H1 2010) to 2,576 USD/t• Global consumption of primary aluminium increased to 22 million tons (+10% to H1 2010)

Q2 2011 results

Global consumption of primary aluminium increased to 22 million tons ( 10% to H1 2010)

• Sales increased by 18% due to higher aluminium price• EBITDA increased from 9.7 mEUR in Q1 2011 to 24.8 mEUR in Q2 2011 (+155%), compared

to Q2 2010 the EBITDA declined by 16% due to positive effects from valuation of hedginginstruments contained in Q2 2010 results, increased raw material prices and foreign exchange

H1 2011 results

instruments contained in Q2 2010 results, increased raw material prices and foreign exchangetranslation effects in the actual quarter, positive effects from higher aluminium price

• Sales increased by 22% due to higher aluminium price• EBITDA declined by 24% due to valuation effects of hedging instruments, increased raw

material prices and foreign exchange translation effects positive effects from higher

13 H1 2011

material prices and foreign exchange translation effects, positive effects from higheraluminium price

Primary aluminium market H1 2011

Al i i i (3 th LME) i• Aluminium price (3 months LME) in first half year 2011

• Start January 2011: 2,470 USD/t 4.000

4.500

5.000

3.500

4.000LME

Inventories in kton

• End of June 2011: 2,535 USD/t

• Average value: 2,576 USD/t

M 2 795 USD/t2.500

3.000

3.500

4.000

2.000

2.500

3.000

Aluminiumprice in USD/ton• Max: 2,795 USD/t

• Min: 2,387 USD/t

1.000

1.500

2.000

1.000

1.500

• LME inventories on average at 4.6 million tons (approx. 10% of yearly production)

0

500

0

500

June 2011

January 2000yearly production)

14

Source: CRU, Reuters

H1 2011

Casting DivisionKey figures for Casting Divisionin mEUR Q2/2011 Q2/2010 *) Change

in % H1/2011 H1/2010 *) Changein % 2010 *)

Sales 33,4 28,0 20 % 68,4 53,7 27 % 114,5

of which internal 1,5 1,2 24 % 2,5 2,7 (9 %) 4,9

Shipments in tons 19.566 19.863 (1 %) 38.891 39.526 (2 %) 75.929

of which internal shipments in tons 3.391 4.602 (26 %) 5.134 7.842 (35 %) 12.461

EBITDA 2,5 1,5 74 % 4,7 2,7 75 % 5,6

EBIT 2,0 0,9 112 % 3,6 1,7 119 % 3,6

Employees 1) 115 112 3 % 114 113 1 % 112

*) the comparable values shown for the year 2010 refer to AMAG Holding GmbH and its subsidiaries1) Average general services staff (full time equivalent) including leasing personnel, without apprentices

• German car production increased to 3 million units (+5% from H1 2010)Market H1 2011

d e to changes in the prod ct mi to higher

• Sales increased by 20%• EBITDA increased by 74%Q2 2011 results

due to changes in the product mix to higher value products and improved margins

• Sales increased by 27%• EBITDA increased by 75%H1 2011 results

15 H1 2011

Rolling DivisionKey figures for Rolling Divisionin mEUR Q2/2011 Q2/2010 *) Change

in % H1/2011 H1/2010 *) Changein % 2010 *)

Sales 144,5 123,1 17 % 297,4 240,5 24 % 493,6

of which internal 15,6 11,5 35 % 30,7 22,9 34 % 53,1

Shipments in tons 37.125 37.172 (0 %) 79.787 76.195 5 % 148.435

EBITDA 18,7 10,7 76 % 41,0 23,1 78 % 55,0

EBIT 15,1 7,3 108 % 33,9 16,3 108 % 41,7

Employees 1) 987 937 5 % 983 942 4 % 947

*) the comparable values shown for the year 2010 refer to AMAG Holding GmbH and its subsidiaries1) Average general services staff (full time equivalent) including leasing personnel, without apprentices

• Demand driven by the automotive (especially Germany) and aircraft industry as well as the Market H1 2011 engineering sector

• Sales increased by 17%• EBITDA increased by 76%

Market H1 2011

Q2 2011 resultsdue to higher volumes, a shift in the product mix to higher value products and improved margins over LME

EBITDA increased by 76%

• Sales increased by 24%• EBITDA increased by 78%H1 2011 results

16 H1 2011

Summary / Outlook 2011Primary aluminium (no changes in expectations since Q1 2011)

• Expected production 2011: 45.6 million tons (+9% to 2010) 1)

• Expected consumption 2011: 44.6 million tons (+9% to 2010)

Downstream (no changes in expectations since Q1 2011)

1)

• Expected flat rolled products consumption 2011: 20.0 million tons (+8% to 2010)• Increasing demand for recycled cast and rolled products

1)

OUTLOOK• Starting point 2010: record year after rapid rebound from economic crisis• Influencing factors 2011: rising aluminium and raw material prices, shift of demandInfluencing factors 2011: rising aluminium and raw material prices, shift of demand

to higher value products, USD/EUR and USD/CAD exchange rate

From today´s point of view the positive development of shipments and prices in y p p p p pH1 2011 will continue until the end of the year. Due to maintenance in Ranshofenthe shipments in H2 will fall slightly behind the H1 values. AMAG profitability in 2011 will even be better than the results of the record year 20102010.

17 H1 20111) Source: CRU April / May 2011

Investor relations @ AMAG

Next investor events:Next investor events: • Q1- Q3 financial results, November 4, 2011

Contact:Contact:

Leopold PöcksteinerHead of Strategy, Communications and IR

Tel.: +43 7722 801 2205 E-mail: investorrelations@amag.at

More information is available on http://www.amag.at/Investor-Relations

18

g

H1 2011

Competence in Aluminium