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

Notes to the Consolidated
Financial Statements
1. Reporting entity
The consolidated financial statements of AMG Advanced
Metallurgical Group N.V. (herein referred to as “ the
Company”, “AMG NV” or “AMG”) for the year ended
December 31, 2010 were authorized for issuance in
accordance with a resolution of the Supervisory Board
on March 31, 2011.
AMG is domiciled in the Netherlands. The address of
the Company’s registered office is WTC Amsterdam,
Toren C, Strawinskylaan 1343, 1077 XX Amsterdam.
The consolidated financial statements of the Company
as at and for the year ended December 31, 2010 comprise
the Company and the companies that comprise its
subsidiaries (together referred to as the “Group”)
and the Company’s interest in associates and jointly
controlled entities.
AMG was incorporated in the Netherlands as a public
limited liability company on November 21, 2006. In July
2007, the Company completed an initial public offering
(“IPO”) of 9,333,409 shares, which are listed on Euronext,
Amsterdam the Netherlands.
AMG is organized under three reportable segments:
Advanced Materials, Engineering Systems and Graphit
Kropfmühl.
The subsidiaries that make up these three operating
segments are primarily located in Europe, North America
and South America. The Advanced Materials segment
manufactures and sells high-quality specialty metals,
alloys and metallic chemicals which are essential
to the production of high-performance aluminum
and titanium alloys, superalloys, steel and certain
non-metallic materials for various applications in the
Energy, Aerospace, Infrastructure, Specialty Metals and
Chemicals end markets (see note 4). The Engineering
Systems segment designs, engineers and produces
advanced vacuum furnace systems and operates vacuum
heat treatment facilities. It sells vacuum furnace systems
to customers in the aerospace, energy (including solar
and nuclear), transportation, electronics, superalloys and
specialty steel industries. This segment also provides
vacuum heat processing on a tolling basis to customers
through its “Own & Operate” facilities equipped with
vacuum heat treatment furnaces. The Graphit Kropfmühl
segment manufactures silicon metal which is used in the
Energy and Specialty Metals and Chemicals end markets.
It also specializes in the extraction, processing and
refining of natural crystalline graphite for a wide range of
energy saving industrial applications.
Timminco was deconsolidated as of September 28,
2009, when the Company’s ownership went from 50.8%
to 47.9%. Timminco primarily produces silicon metal,
including solar grade silicon, which improves conductivity,
provides corrosion resistance and increases harness
for the electronic, solar-photovoltaic, chemical and
aluminum industries. Timminco’s activity prior to the
loss of control is recognized as discontinued operations
in the comparable periods in the income statement and
statement of cash flows. See note 6.
These financial statements represent the consolidated
financial statements of the Company. These consolidated
financial statements as of December 31, 2010 present the
consolidated financial position, results of operations and
cash flows of the Company and its subsidiaries.
The parent company financial statements are prepared
in accordance with part 9, Book 2, article 362.8 of the
Netherlands Civil Code. In accordance with part 9, Book 2,
article 402 of the Netherlands Civil Code, the parent
company income statement has been condensed.
Notes to Consolidated Financial Statements 73