C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb

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Timminco Limited Timminco produces metallurgical grade silicon for the chemical, aluminum, electronic and solar industries. During 2010, Timminco sold 49% of its silicon metal operation to Dow Corning for $40.1 million in cash and up to an additional $10.0 million based upon achieving certain performance objectives relating to production cost and capacity improvements. Timminco used the proceeds of this transaction to repay all of its senior bank debt and for other general corporate purposes. AMG owned 42.5% of Timminco’s equity as of December 31, 2010. AMG accounts for its investment in Timminco via the IFRS equity accounting method. Timminco’s loss for 2010 is included in share of loss from associates on AMG’s income statement. The carrying value of AMG’s investment in Timminco of $17.7 million is listed as an asset on AMG’s balance sheet. Timminco is a publicly listed company (TSX: TIM) with headquarters in Toronto, Canada. More information about Timminco’s business operations and 2010 results can be found in Timminco’s 2010 Annual Report and on their website (www.Timminco.com). 32 Report of the Management Board | Publicly Listed Investments
Risk Management and Internal Controls Risk Management Approach AMG employs a traditional risk management approach, including a ‘top-down’ and ‘bottom-up’ analysis and assessment of the Company’s risks. Appropriate and diverse lines of property and liability insurance coverage are also an integral part of this risk management program. AMG has implemented a comprehensive risk management program centered on the Company’s Risk Assessment Package (“RAP”). The RAP is a detailed document requiring each business unit to: (i) identify potential risks and quantify the impact of such risks; (ii) prioritize the risks using a ranking system to determine the impact, likelihood and suddenness of occurrence; (iii) describe the risk mitigation or transfer procedures in place; and (iv) document the periodic monitoring of the risks. Each business unit undertakes a full review of its RAP on a quarterly basis. The RAPs are then reviewed in detail by AMG’s Risk Manager in coordination with the operating managers of the business units. Key risks from all business units are then summarized and presented to the Management Board. Individual risks of special note are discussed at the Management Board’s bi-weekly meeting. The Management Board has the responsibility to inform the Supervisory Board of the most significant risk exposures and the related risk management plans in place. The Audit Committee of the Supervisory Board carries out a semi-annual review of the Company’s internal control and risk management program. As in previous years, AMG’s Management Board and operating managers of business units evaluated the Company’s risk management activities during 2010. As was the case in 2009, the Company’s Internal Audit Director was in place for the full calendar year 2010. During 2010, special attention was given to: (i) refinancing the credit facility; (ii) credit facility amendments; (iii) liquidity management; (iv) Code of Conduct education, including a training course in General Antitrust Principles and Practices for select employees; and (v) Information Technology improvements. Risks Risks faced by AMG can broadly be categorized as: • Strategic: includes risks related to marketing and sales strategy, product innovation, technology innovation, overall raw material sourcing decisions, capacity decisions and acquisitions • Operational: includes risks related to executing the strategic direction, supply of raw materials, production, maintenance of production equipment, distribution of products, labor relations, human resources, IT infrastructure, health, safety and environmental, and sales and marketing • Market and External: includes risks related to global and regional economic conditions, market supply/ demand characteristics, metal prices, product substitution, customer and competitor actions and community relations • Financial: includes risks related to accuracy and timeliness of financial reporting, compliance with IFRS accounting standards, compliance with AFM and Euronext Amsterdam requirements, compliance with credit facility covenants, currency fluctuations, liquidity, refinancing, budgeting, metal price and currency hedging, treasury and tax functions • Legal and Regulatory: includes risks related to the political, environmental, legislative, and corporate governance environment AMG, like most industrial companies, faces a combination of risks. The largest risks faced by the Company evolve throughout each calendar year and cannot be viewed as static challenges. It is not the intention to detail each risk posed to AMG in this report, but the most pertinent risks to the business are described below in no particular order. Report of the Management Board | Risk Management and Internal Controls 33
Page 1 and 2: Li 6.9 LITHIUM Sc 45.0 Ti 47.9 Sr Z
Page 3 and 4: Silicon Metal—used for solar ener
Page 5 and 6: ADVANCED MATERIALS AMG produces hig
Page 7 and 8: It is a strategic objective of AMG
Page 9 and 10: We continue to focus on products an
Page 11 and 12: Supply Risk Critical Raw Materials
Page 13 and 14: carbon steel electronics superalloy
Page 15 and 16: Silicon Metal—used in the product
Page 17 and 18: N Nickel & Molybdenum- used in high
Page 19 and 20: Chromium —alloy used to produce s
Page 21 and 22: Sb Antimony—added to plastics as
Page 23 and 24: Dr. Schimmelbusch was appointed Chi
Page 25 and 26: The Advanced Materials Division’s
Page 27 and 28: Outlook Regional Breakdown Antimony
Page 29 and 30: Although the market environment for
Page 31 and 32: value proposition to ESD’s market
Page 33: Graphit Kropfmühl Graphit Kropfmü
Page 37 and 38: Senior Leverage covenant to 3.00x.
Page 39 and 40: Management Board Statement of Respo
Page 41 and 42: Male/US and Peru Date of birth: Oct
Page 43 and 44: Supervisory Board discussed the ris
Page 45 and 46: The Selection and Appointment Commi
Page 47 and 48: AMG OPTION PLAN (ALL CURRENCy AMOUN
Page 49 and 50: adjustment is not needed. The Super
Page 51 and 52: Sustainable Development AMG FACILIT
Page 53 and 54: association or collective bargainin
Page 55 and 56: Greenhouse Gas Emissions (thousands
Page 57 and 58: Global Reporting Initiative AMG sup
Page 59 and 60: Corporate Governance General AMG Ad
Page 61 and 62: the Management Board has a conflict
Page 63 and 64: Other than the above-mentioned agre
Page 65 and 66: Financial Review Year ended Decembe
Page 67 and 68: In thousands of US Dollars Period e
Page 69 and 70: Financial Statements Financial Stat
Page 71 and 72: Consolidated Statement of Comprehen
Page 73 and 74: Consolidated Statement of Changes i
Page 75 and 76: Notes to the Consolidated Financial
Page 77 and 78: Percentage held (directly or indire
Page 79 and 80: Measurement of the recoverable amou
Page 81 and 82: All financial information is presen
Page 83 and 84: (d) Derecognition of financial asse
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(ii) Intangible assets The fair val
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joint venture is impaired. If this
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the subsidiaries have a 100% intere
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The carrying amount of deferred tax
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4. Segment reporting For management
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Year ended December 31, 2009 Revenu
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Acquisition of mine in Turkey On Au
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10. Finance income and expense 2010
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Deferred tax assets and liabilities
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13. Property, plant and equipment C
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14. Intangible assets Cost Goodwill
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(3) ALD’s value in use was determ
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For the entities which are joint ve
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19. Restricted cash Restricted cash
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number of shares is then compared w
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subsidiaries with respect to the re
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Assumptions regarding future mortal
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Movement in fair value of plan asse
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At December 31, 2009, the number of
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as responsible for the clean-up ass
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29. Other liabilities Other liabili
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Interest on financial instruments c
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Change in price Effect on profit be
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Fair value hierarchy The Company us
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The open foreign exchange forward s
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34. Capital commitments The Company
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The compensation of the management
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Loans and Receivables On December 1
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AMG Advanced Metallurgical Group, N
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3. Intangible assets Intangible ass
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7. Receivables from associates and
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The following is the calculation of
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Other Information Article 25 and 26
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Shareholder Information Supervisory
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C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb

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