4 years ago

Annual Report 2008 - AMG Advanced Metallurgical Group NV

Annual Report 2008 - AMG Advanced Metallurgical Group NV

Environmental, Health,

Environmental, Health, Safety and Social Reporting Statement of Assurance Scope, Objectives & Responsibilities AMG’s environmental, health, safety and social performance reporting has been prepared by the management of AMG who were responsible for the collection and presentation of the information. Conestoga-Rovers & Associates (CRA) was retained by AMG to conduct an independent review and assurance of the information and data reported in the Sustainable Development section of this Report. The objective of the assurance process was to check the materiality of the issues included in the Report and the completeness of reporting. Any claims relating to financial information contained within the Report are excluded from the scope of this assurance process. CRA’s responsibility in performing our assurance activities is to the management of AMG only and in accordance with the terms of reference agreed with them. CRA does not accept or assume any responsibility for any other purpose or to any other person or organization. Any reliance by any such third party may place on the Report is entirely at its own risk. Approach and Limitations CRA’s assurance engagement has been planned and performed in accordance with AMG’s internal guidance and definitions for the reported indices. The assurance approach was developed to be consistent with the GRI G3 Guidelines and international standards for assurance appointments. CRA conducted site visits to four of the nine sites, and met with/interviewed personnel responsible for collecting, reviewing and interpreting the data and information for presentation in the Report for all sites. Stakeholder engagement was not within the scope of the assurance activities. Conclusions/Recommendations On the basis of the method and scope of work undertaken, and the information provided to CRA by AMG, the process undertaken by AMG provides a balanced representation of the issues concerning AMG’s sustainability performance and are an appropriate presentation of AMG’s environmental, safety, health and social performance in 2008. In our opinion the processes for collecting and reporting sustainability related data that AMG introduced in 2007 have been enhanced through better communication and awareness and more consistent application of the environmental indices across the division. However, challenges such as ensuring consistency in the approach related to various performance metrics continue to exist in regard to providing consistent and complete data in an efficient manner. It is recommended that AMG focus on these challenges to improve reporting but they do not materially affect the conclusions presented herein. Gregory A. Carli, P.E., Principal Conestoga-Rovers & Associates 68 Environmental, Health, Safety and Social Reporting Statement of Assurance

Financial Review AMG had a successful year in 2008 despite a challenging fourth quarter. Revenue AMG’s revenue increased to $1,517.9 million in the year ended December 31, 2008 from $1,155.7 million in the year ended December 31, 2007, a 31% increase. Advanced Materials, Engineering Systems and Timminco all contributed to the growth in revenue due to the strength in metals pricing and the demand for solar products, both furnaces and upgraded metallurgical silicon (“UMSi”). In April 2008, AMG acquired 79.52% of the outstanding shares of Graphit-Kropfmühl which further increased revenues by $87.9 million. Despite the fourth quarter economic crisis, AMG was still able to achieve a record year. For the full year 2008, revenue in the Advanced Materials Division increased 10% growing to $756.7 million. Selling price increases across most product lines led to the revenue growth. The largest product contributors were chromium metal and ferrovanadium. Volumes for chromium and ferrovanadium remained relatively consistent with 2007, but the average selling prices increased by 48% and 81%, respectively. This growth in revenue was achieved despite a weak fourth quarter caused by the economic crisis. Revenue for the Engineering Systems Division increased to $435.5 million in the year ended December 31, 2008 from $312.1 million in the year ended December 31, 2007, a 40% increase. The largest area of growth was solar silicon melting and crystallization furnace systems (DSS furnaces) sold primarily to the energy (solar-photovoltaic) industry. With the expansion of the Berlin facility, Engineering Systems was able to increase its production of DSS furnaces from 1 per week to 7 per week and continue to meet the growing demand of solar wafer and cell producers. The division’s revenue from its Own & Operate facilities decreased to $23.1 million in 2008 from $27.0 million in 2007, a 14% decline. The Own & Operate business is predominantly driven by the automotive industry and therefore was significantly impacted by the economic downturn. In addition to record revenue in 2008, the Engineering Systems Division had a record year-end order backlog of $332 million at December 31, 2008, an increase of 32% versus the $252 million backlog at December 31, 2007. During 2008, Timminco completed the first phase of its expansion to produce upgraded metallurgical silicon. Sales of UMSi grew by $55.8 million in 2008. Revenue for Timminco’s traditional silicon metal product line also increased in excess of 25% due to improved pricing. The magnesium product line had relatively flat revenues for 2008 when compared to 2007. Magnesium is becoming a secondary product line as compared to the significantly more profitable silicon. Graphit-Kropfmühl was acquired in April 2008 and contributed $87.9 million to AMG’s revenue in its eight months after acquisition. It benefited from high silicon metal pricing as well as continued strength in its graphite business. Financial Review 69

PDF 3.89 MB - AMG Advanced Metallurgical Group NV
Roto Smeets Group in 2010 Annual Report - RSDB NV
2008 Annual financial report - Klemurs
Annual Report 2008 - Komax Group
Annual Report 2008 (PDF) - Schulthess Group
2007 Annual report - Groupe M6
Full RSDB annual report for 2008 - Roto Smeets Group
2008 Annual Report - Tower Federal Credit Union
Download Annual Report 2003 - Mühlbauer Group
2011 Annual Report - TOM Group
Annual Report for the year ended 31 December 2008
Barclays plc - Annual Report 2008 - Financial statements - The Group
annual report 2008 - About PUMA
ArcelorMittal Annual Report 2008
2009 Annual Report - Yellow Pages Group
Annual Report 2007 (PDF) - Schulthess Group
2010 Annual Report - e-KONG Group Limited
Annual Report - 12 months to 31 December 2007 - MWB Business ...
2005 Annual report - Virbac