AnnuAl RepoRt 2010

AnnuAl RepoRt 2010

REFINING ADVANCED COATINGS ELECTROTECHNICS

annual report 2010
table oF contents
IntroductIon
Foreword 3
Metalor in brief 6
Highlights 2010 8
dIvIsIonal actIvItIes
Refining 10
Advanced Coatings 12
Electrotechnics 14
FInancIal statements
Financial report 18
Consolidated balance sheet 20
Consolidated statement of income 21
Consolidated statement of cash flows 22
Consolidated statement of changes in equity 23
Group companies 24
Governing bodies 25
Group operating companies 26-27

Foreword
Dear Shareholders,
Ladies and Gentlemen,
We are now on the uphill side of the
financial crisis that started in late
2008. The transparency in our order
books for 2010 improved substantially
and this was accompanied by
an unpredicted strong surge in orders
both of our Advanced Coatings and
Electrotechnics industrial products
divisions. Restocking and resurgent
industrial demand, in particular for
photovoltaic, electronics and contacts
applications, pushed several of our
production units to capacity, necessitating
the addition of several hundred
staff in a short period. The Refining
Division enjoyed further record trading
based on steady and strong activity
as opposed to the exceptional peaks
experienced in 2009.
Closure of the Watches and Jewelry
Division was completed in June at
a lower than anticipated cost, and
with outplacement support 85 out
of the 110 affected employees have
been able to find new employment
or take early retirement. Integration
into the Electrotechnics division of the
Americas electrical contacts business
of AMI Doduco acquired in January
2010 was fast and smooth and the
business generated a profit during the
first year of ownership when losses
had been anticipated. Extensive strategic
studies for all three divisions
were carried out during the year to
identify optimal areas for organic and
acquisitive growth and the first results
and actions stemming from these
reviews will be implemented in the
coming months.
Precious metal prices rebounded to
new record levels during the year
which drove gold scrap receipts for
the Refining Division in certain markets.
The USD variations against other
currencies also played a significant
role in volumes flowing to our refineries.
Of particular note is the price and
supply situation for silver for which
strong industrial demand, investor purchases
and supply disruptions have
created physical shortages in certain
geographies. Copper, which is heavily
used by our Electrotechnics Division,
has also reached record prices and
we have enhanced our stock position
of these metals in order to supply our
vendors.
We added several new banking partners
for precious metal lease and
forex lines during 2010 in Europe and
North America. Utilization of these
lines has been strong in Europe and
USA and variable in Hong Kong due
to periods of strong buying by China
which created physical gold shortages
and high premiums. Lease rates were
stable in general, but are now on an
upward trend.
During the first quarter of the year our
acquisition focus was increased and
in order to generate additional cash
the platinum group metals purchased
during 2009 were sold on a mixture
of spot and forward contracts. Pricing
was at a substantial premium to the
purchase price resulting in a large
non-operating income.
Consolidated net sales were 27.9 %
ahead of the previous year, and
9.4 % on a like-for-like basis excluding
the discontinued Watches and
Jewelry and acquired Electrotechnics
Americas activities. Refining grew by
6.4 %, Advanced Coatings by 22.2 %
and Electrotechnics by 41.4 % and
on a comparable basis, including
Electrotechnics Americas, that Division
grew by 104.6 %. Operating profit
(EBIT) was 61.4 % above the prior
year, at 18.0 % of Net Sales.
3

4
Our full-time equivalent staff now
stands at 1625, an increase of 32.5 %.
Due partly to the strong industrial
activity and increased volumes our
accident rates increased unacceptably
during the year. In order to aggressively
address this issue a dedicated
Operation Risk and Quality Assurance
Manager has been appointed and
several programs rolled out to improve
our record in this critical area.
With the increasing importance of
Corporate Social Responsibility (CSR)
and compliance to new legislation
such as the Dodd-Frank act in the
USA, Metalor achieved audited certification
by the Responsible Jewelry
Council to audit our operations against
a rigorous CSR standard. We are
proud to report Metalor was the first
precious metal refiner to achieve this
certification. We are also actively
engaged with the World Gold Council
and other industry groups to develop
new standards for the traceability
issues surrounding conflict minerals.
reFInIng
Volatility of the gold price and
consequent scrap flows drove volumes
into the refineries during 2010. Another
sales volume record was achieved and
margins were further improved due to
tight cost control and mix of activity.
Market share gains were obtained
for scrap collection in Columbia,
Mexico and Spain. The recovery in the
Swiss watch industry helped improve
volumes in the Marin facility. Due to
continued strong consumer demand
for small precious metal bars, Metalor
has introduced these products in the
European and Chinese markets and
volumes are steadily increasing. A
master plan for capital expenditure
for de-bottlenecking and capacity
expansion has been approved and is
underway for Refining.
advanced coatIngs
In contrast to a year ago our powders
plant in the US is operating at full
capacity and we are now in the process
of a capital program to increase
capacity significantly. The book to bill
ratios for semi-conductors and connectors
improved strongly in the first
half of the year and then declined as
stocks were rebuilt. The palladium
products for connectors to replace
gold have had continued success in
the electronic markets in Asia. Industry
consolidation in the gold chemical
market in the USA led to market share
gains. The rebound in the luxury
goods market in Europe contributed
to a sharp turnaround in Switzerland,
UK, and Italy.

electrotechnIcs
2010 was a challenging year for the
Electrotechnics Division. The major
customers for low voltage die compacted
contact tips saw a strong order
book for photovoltaic applications;
for many part numbers a doubling of
the order book was seen. This rapid
increase led to long lead times as
stocks had been run down during
2009. The complex integration of the
German plant closed during 2009
exacerbated production problems.
Close customer interface and tight
deliveries over the 2 nd and 3 rd quarters
largely resolved bottlenecks. The
North American operations acquired
in January have been well integrated
from an administrative standpoint and
medium term production optimization
plans are being developed. The
Chinese assembly plant in Suzhou
saw a near tripling of orders in 2010
and is capacity restricted.
prospects For the Future
Most industry analysis predicts continued
high precious metal prices due
to investor sentiment towards risk
and industrial demand for silver and
platinum group metals. Base metal
prices will reach new highs driven
in part by Chinese demand and falling
primary production. US monetary
policy will continue USD weakness
and an unbalanced world economy
will continue to pressure China to
appreciate the RMB. Inflation will be
an issue in many parts of the world in
particular China. The banking sector
with the Basel 3 convention will see
continued evolution. We expect some
of our banking partners to rethink the
precious metals sector and others
to enter this market. On balance, we
expect our banking partners to support
the expansion programs underway.
With the recovery of our revenue
base, we are now focused on the
three global Divisions and their growth
strategies. A number of acquisition
targets have been identified and
several due diligence programs are
underway. On February 17, 2011
Metalor announced it had signed an
agreement to acquire the Japan based
Coatings Division of NE Chemcat, and
the deal will complete during the first
half of 2011.
The Board of Directors and the
Management would like to take this
opportunity to thank the employees for
all their hard work during the recovery
period and shareholder transition. We
appreciate all of our clients and their
loyalty to Metalor during 2010. We are
also grateful for the continued strong
support of our banking partners in a
volatile period.
Best Wishes for a successful 2011
Joël Lacourte
Chairman of the Board of Directors
Dr. Scott Morrison
Chief Executive Officer
5

6
metalor In brIeF
a global group
Founded in 1852, in Le Locle, in the
heart of Switzerland’s then rapidly
growing watch making industry, the
“preliminary rolling factory” of Martin
de Pury & Cie provided services to
the watchmakers of the region. These
included the operation of a gold smelter
and the manufacture of watch cases.
For over 140 years the smelter was
in the hands of bankers – the Banque
du Locle between 1864 and 1918, and
then from 1918 to 1998 the Société
de Banque Suisse (SBS), which gave
it the name “Métaux Précieux SA
Metalor”. Metalor eventually outgrew its
banking and watch making role and in
the 1950’s began to serve a number of
other industries across the world, each
of which shared a need for services and
products involving precious metals.
Relocated to Neuchâtel in 1947, Metalor
continued to grow and expand, adding
new factories in France and the United
States to its network, followed more
recently by Hong Kong and China, and,
since early 2010, Mexico and Puerto
Rico.
Metalor’s industrial destiny was further
strengthened in 1998 when a group of
Swiss investors from industry acquired
a majority shareholding. As of April
2001 the name “Metalor Technologies”
became part of the corporate logo of
all Group companies. In October 2009,
a majority of shares were acquired
by Astorg Partners, a private equity
company based in Paris, France.
InnovatIon and qualIty
The know-how which Metalor has
developed over the years, the
exceptional quality of its products and
its ability to anticipate market trends and
requirements have earned the company
a reputation for excellence all over the
world. Today Metalor supplies precious
metals and advanced materials to
partners in industries as varied and
demanding as electronics, electrical
engineering and medical technology.
The Group’s ability to innovate and
come up with reliable technology has
attracted leading names in industry,
fostering the development of new
market segments for partners looking
for precious metals based innovation.
Metalor has three main divisions, each
corresponding to a group of specific
markets: Refining for the recycling and
processing of precious metals and the
production of pure precious metals
in ingots and other forms; Advanced
Coatings for electronic and decorative
applications, and Electrotechnics,
serving the electrical contacts market.
At December 31, 2010 the Metalor
Group includes some 21 companies
on three continents with a total staff
worldwide of 1 625.

Key statIstIcs (in CHF million)
Yellow : countries in which the
Metalor Group is present through its subsidiaries.
2010 2009 2008
Net sales (excluding PM value) 335.9 262.9 332.7
Operating result (EBIT) 60.5 37.5 61.5
Operating result before interest depreciation and amortization (EBITDA) 75.3 53.6 77.4
Net profit 54.9 9.8 62.0
Headcount (Full Time Equivalent - December 31) 1 625 1 227 1 380
7

8
hIghlIghts 2010
reFInIng dIvIsIon
contInued success and
Further expansIon
The Refining Division has continued
its success in 2010. The increase in
net sales, 6.4 % up on the previous
year, is mainly attributed to high gold
price and increase of complex scrap
volume. The impact of a weakening
US Dollar exchange rate was compensated
by high metal prices. With
strong financing capability we could
capture all of the favorable market
conditions and make optimum use of
our refining processes.
Our refineries in Switzerland, USA and
Hong Kong had strong activity in gold
and silver refining throughout the year.
This has compensated the increasing,
but still weak, PGM refining activity.
The newly established evaluation
platforms in Singapore, Columbia and
Spain allowed us to acquire new refin-
ing customers and to increase market
share. New revenue streams have
been added to the Refining Division by
integrating the alloy business from the
former Watches and Jewelry Division.
In early 2011, the Company became
the first precious metals refiner, and
only the fourth company, to obtain
Responsible Jewellery Council (“RJC”)
Member Certification. The RJC’s
Certification System verifies compliance
with strict ethical, human rights,
social and environmental standards.
The RJC Member Certification System
is unmatched in any other industry for
the quality and breadth of its scope
and standards as well as the integrity
and transparency of its developmental
process. The integrity of the RJC
depends on Members being audited
by accredited, independent third party
auditors and becoming certified within
the deadlines set by the RJC Member
Certification System.
advanced coatIngs dIvIsIon
bacK to growth
In 2010, the Advanced Coatings
Division was able to achieve one of
its best results ever thanks to strong
market recovery in the Electronics
segment, and achieved sales 22.2 %
above 2009.
The strong demand from the
Photovoltaic and Conductive adhesive
segments lead our US business to
achieve sales 43.0 % above the previous
year. An expansion of production
capacities for silver powders and
flakes is ongoing and should be finalized
in 2011.
In Asia, where the financial crisis had
less impact, the sales growth over
the previous year reached 15.0 %.
Following qualification by customers
the powders and flakes manufactured
by our plant in Suzhou are now sold
in China, and we expect strong growth
in 2011 for these products serving the
Electronics markets.
On February 17, 2011, Metalor and
NE ChemCat (NECC) of Japan signed
an agreement for the Company to
acquire NECC’s Coatings Division in
Asia. The deal is expected to complete
during the first half of 2011 once
all conditions precedent and the

necessary legal and financing structures
can be implemented.
NECC’s Coatings Division serves the
electronics industry with precious metals
chemicals, processes and electroplating
equipment, and employs over
100 staff at sites in Japan, Singapore,
Taiwan, Korea and China. Metalor
has been the exclusive distributor of
NECC Coatings products outside of
Japan and Korea since 2002, and
in Singapore, Taiwan and China our
teams already work closely with the
NECC Coatings teams.
NECC Coatings activity will add
approximately 15.0 % to the
Company’s Net Sales and has a
strong profitability. This acquisition
is highly complementary to existing
Advanced Coatings Division in terms
of products, customers and geographical
footprint, and will confirm the
Company’s position as a leading supplier
to the electronics and decorative
precious metals plating markets.
electrotechnIcs dIvIsIon
acquIsItIon oF marKet share
and strong growth
The acquisition of the operations of
AMI Doduco in North America was
completed in January 2010. This
transaction strengthened the position
of Metalor as a key player in the electrical
contacts industry. It has helped
us to provide to our key customers
global support in terms of product, and
complemented our international presence
in the low voltage segment with
a medium voltage segment offering.
Our growth in China was extremely
strong, driven not only by a very
dynamic market, but also by the
launch of many new products. We
continue to expand our presence in
China, both in terms of technologies
and capacity with the desire to satisfy
locally all the needs of our key customers.
In Europe, after an active period of
restocking of the entire supply chain,
boosting the demand for electrical
contacts, the market remains on a rising
trend, driven in particular by new
standards in the field of household
products and a sustained growth of
renewable energy.
During the second half of year prices
of raw materials, including silver, have
seen a significant surge. Some ten-
sions regarding the physical availability
of high purity materials have also
emerged on the market. Through the
expertise in the management of precious
metals, Metalor has reinforced
its position as a leader in this field
during this period, including security of
supply all around the world.
We stay on course for sustained
growth through innovation, and several
R&D projects are underway to provide
new contact materials, for example
with the introduction of magnetic
properties for the rapid disappearance
of electrical arcing, or new ways
of deposition of contact materials,
especially additives. We co-organize
the conference HOLM and ICEC on
electrical contacts and introduce our
studies focused on materials, methods
for obtaining the electrical contacts
and related electrical phenomena.
Furthermore, we are strengthening
the technical partnership with our key
customers, to design jointly the new
generation of electrical apparatus with
optimum energy efficiency and consumption
of raw material.
9

10
relIable perFormance
With over 150 years of experience in precious metal refining and manufacturing, Metalor’s Refining
Division is a market leader in gold and silver refining and an important refiner for platinum group metals.
Metalor supplies bullion banks, investors and luxury goods manufacturers with its high purity bullion
products and high quality alloy products. Through its refineries and evaluation platforms located in most
key precious metals markets, Metalor provides comprehensive services for refining, metal trading and
metal management to its global customers.
dIstInctIve reFInIng servIces
The Refining Division specializes in
recovering gold, silver and platinum
group metals from a wide range of
precious metal bearing materials.
Depending on the precious metal content,
these materials are either high
grade metallic such as gold and silver
dore, carat gold and platinum scrap, or
low grade materials such as workshop
wastes, spent metal catalysts, electroplated
metallic scrap and electronics
scrap. The materials come from bullion
and central banks, mines, recyclers,
dealers and industries generating precious
metal waste. On arrival at the
refinery, the materials are first homogenized,
sampled and assayed by skilled
assayers. In the Swiss operation the
analysis is performed by sworn assayers
trained and controlled by the Swiss
Central Office for Precious Metals
Control. In addition, our laboratory is
accredited by the Swiss Federal Office
of Metrology (METAS) for precious
metal analysis.
Once the precious metals content has
been agreed with the customer, the
scrap is fed into refining processes.
Fine metals from the refining processes
are then converted to bullion products
which are accredited with LBMA,
LPPM, TOCOM, COMEX, Shanghai,
Dubai and other major markets.
Specialty products such as high purity
gold (above 99.999 % pure), semifinished
alloy products, silver powders,
platinum and palladium salts are also
produced to meet customer needs in
the high-tech sectors.
The Refining Division operates four
refineries located in Switzerland, USA
and China (Hong Kong and Suzhou). In
addition, it has evaluation centers and
sales offices around the world in major
markets providing extra convenience
to customers. No matter where the
customers are located, our proactive
and experienced sales teams are close
enough to deliver distinctive services
including refining, bullion products selling,
trading and metal management.
meet customer needs
In order to maintain its Swiss reputation
for excellence, the Refining Division
has been continuously improving the
quality of its services and products
by clearly understanding the customer
requirements and expectations.
Constant investment on new refining
technologies has significantly improved

the refining efficiency on throughput
time and metal yield. These improvements
in return allowed us to build
stronger partnership with our customers
and maintain our leader position in
refining technologies.
The evaluation service of the Refining
Division is highly efficient, fast and
accurate. Evaluation centers perform
sampling and rapid analysis for quick
settlement with customers. The final
analysis is performed at one of the
refineries. Highly skilled assayers and
chemists guarantee the high accuracy
of the result. Metalor has been an
Official Referee of the London Bullion
Market Association (LBMA) since 2003
and an Official Referee of the London
Platinum & Palladium Market (LPPM)
since 2007.
Continuous investment on new processing
technologies enables us to
make full use of our industrial capacity
while integrating environmental protection
considerations as well as ensuring
safety standards that are properly
adapted to the field of refining. We have
achieved Quality Standard ISO 14001
for Environmental Systems and ISO
9001:2000 for Management Systems.
strIve For excellence
The Refining Division applies the highest
ethical standards in its business
relations. It has one of the leading due
diligence processes on the sources of
its supply and with the assistance of
like-minded people in industry, NGO’s
and government bodies around the
reFInIng dIvIsIon
world continues to work on strengthening
its effectiveness in this area.
We are motivated by the support of
our customers and banking partners.
The significant improvement in speed,
quality and productivity in the Refining
Division in recent years has only been
possible thanks to its dedicated and
competent employees. With enthusiasm,
they have demonstrated that
persevering with a strategy aimed at
customer satisfaction always leads to
success.
11

12
InnovatIve solutIons
The Advanced Coatings Division is a renowned producer of precious metal based solutions for a wide
variety of industrial sectors including general electronics, semiconductor, aeronautics, decorative,
automotive and photovoltaics.
global posItIonIng
The Advanced Coatings Division
products are developed and manufactured
at its production sites in Europe,
USA and Asia. All operations are ISO
9001:2000 as well as ISO 14001:2004
certified, which guarantees the superior
quality and reliability of its products.
In addition to this the Attleboro (USA)
silver powder and flake manufacturing
site is ISO / TS 16949 certified. Metalor
provides a global solution to meet the
needs of companies operating worldwide
and adapting to highly competitive
trading conditions. In order to respond
to the increasing demand for powders
and flakes, Metalor has expanded in
2009 its production site in Suzhou,
close to Shanghai in China, by setting
up additional and back-up production
capacity and during 2010 started investments
to significantly increased capacity
in its US plant.
exceptIonal platIng
processes
The division offers a wide range of both
electrolytic and electroless precious
metal plating products and processes
developed over many years. The plating
range is designed for both electronic
and decorative applications, ensuring
excellent technical performance in
terms of wear resistance combined with
high conductivity for electronic products
(connectors, printed circuits, semiconductors)
and noble appearance for
decorative products (watches, jewelry,
leather goods and spectacles).
precIous metal salts,
solutIons, anodes and
crystals
The Advanced Coatings Division produces
a comprehensive range of precious
metal chemical compounds as
salts and solutions, as well as pure precious
metal anodes and silver crystals.

extensIve range oF powders
and FlaKes
Silver, gold and platinum group powders
are produced in various particles
sizes, surface areas and morphologies
using chemical or mechanical means.
The proprietary powder expertise is
extended to the fabrication of silver
flakes whose excellence is widely
acknowledged by formulators of conductive
adhesives, inks and pastes that
serve a variety of electronic applications.
a sIngle partner
The division relies on the established
expertise of the Metalor Group in the
field of fine precious metals to offer a
complete service : the supply, customization
and development of best quality
precious metal products, process
engineering, on-site support throughout
Europe, in the Asia-Pacific region and
in the United States of America as well
as the refining of spent solutions and
scraps. This provides a one-stop-shop
enabling customers to reduce complexity
and the number of suppliers.
advanced coatIngs dIvIsIon
13

14
complete solutIons
The Electrotechnics Division uses the metal silver to make electrical contacts that improve the safety
and lifetime of electrical equipment all along their life cycle. The division meets the growing requirements
of the electrical industry by its metallurgy expertise, assembly work, organizational flexibility, innovation
commitment and partnership with its customers. Targeted mainly at larger accounts, the division is
willing to provide a full range of materials, components and assembly parts, with geographic coverage
throughout the world.
Key customers around the
world
The Electrotechnics Division engages
mainly in serving large companies
in the field of the electrical industry,
which are leaders in their respective
market segments and present all over
the world. Therefore, it possesses an
international geographical structure
with production sites in the Americas,
Europe and China. Traditionally
addressing the market of low voltage
from low intensity to very high intensity,
the Division has reinforced in the
segment of medium voltage. Besides
a full range of products for electrical
equipment for the markets of electrical
distribution, automation and transportation,
such as circuit breakers, contactors,
switches, relays, fuses, it also
takes its place in certain niche fields in
the automotive and medical industries.
In the electrical industry, the evolution
of products related to new generations
of equipment as well as new markets,
particularly renewable energy, focuses
on optimization of energy efficiency and
consumption of raw material in order
to improve safety and endurance of
electrical equipments throughout the life
cycle.
Know-how, expertIse and
hIgh perFormances
To enable the provision of a full range
of materials, components and assembled
products, the Electrotechnics
Division has acquired strong expertise
in many areas : chemistry, metallurgy
(casting, powder metallurgy, unitary
compression, bi-extrusion), stamping,
staking, welding and electrical tests.
It now offers more than 4,000 types
of products : wires, strips, rivets, tips,
assembled contacts, sliding contacts
and fuse strips, specially with multitechnology,
based on a wide range
of materials AgCW, AgCWC, AgFe,
AgFeRe, AgNi, AgZnO, CuCr, CuW,
CuC and AgSnO2. The electrical contacts
are of high performance, and
ensure high electrical conductivity, high
breaking capacity, and high resistance
to erosion and welding.
Furthermore, management of silver
requires not only technical expertise to
optimize material yield and the electrical
performance, but also expertise
in financial management to reduce
the exposure of the company and its
customers to fluctuations in the metal
market. As such, Metalor is recognized
as a leader in these areas and ensures
more secure supplies worldwide.

Importance oF partnershIp
and customer satIsFactIon
The customers of the Division are
involved in a continuous improvement
process and their requirements in terms
of performance are constantly rising.
To keep the competitive edge and offer
the best products, the Division attaches
great attention to innovation. It therefore
works closely with its customers in the
early stages of developing new products
or new processes, and provides advice
and expertise from the beginning of the
design of new applications. Prior approval
of materials by the client is a step
that requires a multiform partnership,
advanced means of characterization of
materials and electrical testing. All the
teams of R&D, production and sales
are very experienced in the process of
certification.
Quality of product and performance
of service are at the core of customer
satisfaction, and the focus of the
Electrotechnics Division. This willingness,
deployed for years, allows the
Division to provide qualified products
with technical performance and proven
reliability.
The Electrotechnics Division also offers
to its customers an integrated logistic
flow in order to ensure availability of products
in time, for example by providing
systems in line with customer demand
(Kanban, VMI, consignment).
Each year the capabilities are tailored
to the demand of geographical markets,
the productivity is improved with
continuous efforts in the investment of
dIvIsIon electrotechnIcs
human resources and machines, leading
to increasing of skills, automation of production
lines and broadening of product
range.
Performance management systems
have been implemented (ISO9001,
ISO14000, OHSAS 18001), an environmental
policy deployed worldwide
(RoHS, REACH) and we have an exemplary
citizen approach (ethical charter,
membership of Global Compact United
Nations) in agreement with further
expectations of our customers.
15

FInancIal report
metalor technologIes InternatIonal sa
Consolidated financial statements
As of December 31, 2010
17

18
FInancIal report
Metalor’s 2010 results are a reflection
of the continued excellent Refining
Division activity combined with the
strong recovery experienced in
the Electrotechnics and Advanced
Coatings Divisions. The reorganisations
initiated in 2009 were completed
and allowed for strong conversion
of sales recovery into profit growth.
Despite the anticipated reinvestment in
working capital associated with activity
recovery, Metalor strengthened further
its already strong balance sheet. Our
financing model and the continued
strong support of our banking partners
ensured the Group had the liquidity
to exploit the significant opportunities
for the Refining Division generated by
the volatility and high price of gold in
particular.
The consolidated sales of the Metalor
Group, without the intrinsic value of
precious metal, amounted to CHF
335.9 million which is 27.9 % higher
than in the previous year. In January
2010 Metalor completed the acquisition
of AMI Doduco’s Electrotechnics
activities in the Americas, and excluding
this Net Sales increased 12.1 %.
The operating result (EBIT) increased
61.4 % to CHF 60.5 million, with the
Americas Electrotechnics generating a
small positive operating result of CHF
0.4 million.
Net income amounted to CHF 54.9 million
for 2010. The net result was positively
impacted by disposals of precious
metals strategic inventories for a gain
of CHF 19.7 million, and were negatively
impacted by the closure costs of
the Watches and Jewelry Division in
Switzerland. Precious metals leasing
rates remained low, and the effective
tax rate could be reduced from 49.4 %
to 27.4 % as local losses were eliminated
and some first tax optimization
initiatives were implemented.
The Refining Division performed
exceptionally well in 2010 and enjoyed
another record year. Compared to the
previous year, net sales were 6.4 %
higher and the EBIT improved fur-
ther. Receipts of high grade precious
metal scrap at the three refineries in
the USA, Switzerland and Hong Kong
were exceptionally strong. Platinum
group metal receipts, which are heavily
driven by industrial activity, remained
subdued. Operating margins were
maintained despite a slight product mix
change towards more complex to refine
inputs.
Advanced Coatings Division’s sales
increased 22.2 % compared to the
previous year, with the electronics and
photovoltaic applications especially
in the Americas and Asia showing
sustained recovery throughout the
year. The mainly European decorative
application markets also experienced
a strong recovery. A flexible cost base
and strong cost control ensured that
operating profitability increases of
some 5 percentage points were achieved.
On February 17, 2011, Metalor
signed an agreement to purchase the
Japan based Coatings Division of NE
Chemcat, and the deal is expected
to complete during the first half of the
year. This acquisition will cement the
Advanced Coatings Division’s market
leading position.

Electrotechnics Division sales were
104.6 % higher than the previous
year, and 41.4 % higher excluding
the Electrotechnics Americas acquisition,
as the sector experienced
strong re-stocking combined with
large underlying demand increases.
Thanks to a particularly effective integration
combined with strong demand
Electrotechnics Americas made a small
operating profit during the year, when
the acquisition plan had anticipated a
loss. The Division returned to profit for
all of 2010, including Electrotechnics
China which also generated an operating
profit for the first time during the
year.
The closure of the Watches and
Jewelry Division in Switzerland was
completed to schedule and significantly
below budget as better than planned
final production orders and equipment
sales were achieved. This more than
offset increases in the severance package
agreed with affected employees.
The Group has a net cash position
of CHF 51.9 million at 31 December
2010, in addition to which Group had
a book value of CHF 46.3 million strategic
platinum group metals. CHF 30.6
million of these metals had already
been sold forward for value in 2011
and have realized CHF 20.3 million
gains during 2011.
The shareholder’s equity at 31
December 2010 amounted to CHF
310.5 million or 60.3 % of the total
balance sheet value. The Board of
Directors intends to invest in organic
growth and acquisitions and proposes
to not pay any dividend in 2011.
During 2010 the Group completed
the implementation of new employee
share participation plan, and over 118
senior and key employees of the Group
were able to invest in total CHF 18.4
million shares in Metalor Technologies
International SA via several special
purposes vehicles. These vehicles
were loaned a total of CHF 11.6 million
by the Company in order for them to
buy further shares in the Company and
thus create a more leveraged participation
than would be available by direct
participation in the Company itself. All
shares were sold at market value.
Identification of risks to which the
Company and its subsidiaries are
exposed, as well as adequate organizational
means to measure and
manage such risks, are among the
Board of Directors’ duties. During
2010, the Board of Directors actively
participated in the process of identifying
strategic, financial, operational
and other major risks. The Company
has implemented a procedure which
ensures that such risks are adequately
managed at divisional and corporate
level under the supervision of
the Corporate Management and are
regularly reported to the Board. This
allows the Board of Directors to gain
a comprehensive knowledge of the
Company’s major risks and to adequately
prioritise actions and allocate
resources.
19

20
consolIdated balance sheet as oF december 31, 2010
in CHF 1 000 31.12.2010 31.12.2009
ASSETS
Cash and cash equivalents 106 107 66 078
Trade receivables, net 167 304 129 068
Other receivables 8 561 3 161
Inventories* 86 726 85 829
Prepaid expenses and accrued income 15 777 8 443
Current assets 384 475 292 579
Financial assets 11 810 436
Property, plant and equipment 107 002 119 584
Intangible assets 858 754
Deferred tax assets 10 648 4 843
Non-current assets 130 318 125 617
ToTAl ASSETS 514 793 418 196
lIABIlITIES AND SHAREHolDERS’ EQUITY
Trade payables 69 441 47 361
Other payables 17 448 15 480
Provisions for liabilities and charges 34 912 30 301
Current tax liabilities 16 862 6 118
Short-term borrowings 17 493 8 913
Accrued expenses and deferred income 19 506 15 018
Current liabilities 175 662 123 191
Provisions for liabilities and charges 4 125 4 063
Deferred tax liabilities 24 464 21 702
Non-current liabilities 28 589 25 765
ToTAl lIABIlITIES 204 251 148 956
Share capital 800 800
Share premium 37 056 35 416
Retained earnings 272 686 233 024
Treasury shares – –
Shareholders’ equity 310 542 269 240
ToTAl lIABIlITIES AND SHAREHolDERS’ EQUITY 514 793 418 196
* The market value of inventories as December 31, 2010 amounts to KCHF 115 387 (December 31, 2009: KCHF 111 045)

consolIdated statement oF Income For the year ended december 31, 2010
in CHF 1 000 2010 2009
Net sales (excluding precious metals) * 335 852 261 694
Cost of goods sold (excluding precious metals) (184 511) (144 577)
Precious metals leasing fees * (13 336) (13 286)
Gross profit 138 005 105 007
Sales and logistics (35 885) (34 661)
Finance and administration (37 964) (31 631)
Other operating costs (12 325) (9 811)
Operating costs, total (86 174) (76 103)
Other operating income * 8 661 1 728
operating result before precious metals price fluctuations 60 492 37 470
Recovery of (provision) for precious metals price fluctuations (325) 2 036
operating result after precious metals price fluctuations 60 167 39 506
Financial income 5 804 2 427
Financial expenses (8 166) (4 252)
Financial result (2 362) (1 825)
Non-operating income 26 634 1 732
Non-operating expenses (8 753) (20 055)
Non-operating result 17 881 (18 323)
Income before tax 75 686 19 358
Current income tax (24 229) (11 653)
Deferred tax 3 484 2 096
NET INComE 54 941 9 801
* The leasing fees billed to clients previously reported in the line Precious metal leasing fees have been reclassified in the line
Net sales and the shipping costs re-invoiced to clients previously reported in the Net sales have been reclassified in the line Other
operating income. The comparative figures have been restated accordingly and the notes have been updated.
21

22
consolIdated statement oF cash Flows For the year ended december 31, 2010
in CHF 1 000 2010 2009
Income before tax 75 686 19 358
Depreciation, amortization and provisions 13 387 12 428
Gain / loss on sales of fixed assets, net (6 185) 76
Interest on shareholders loan (200) –
Working capital changes, net (21 517) 71 682
Gain on sale of excess precious metals inventory (19 733) (684)
Restructuring Costs 7 342 –
Income tax paid (11 935) (28 605)
Cash flows from operating activities 36 845 74 255
Purchase of subsidiaries (7 264) –
Purchase of fixed assets (15 171) (18 926)
Proceeds from the sale of fixed assets 14 208 218
Proceeds from sale of excess precious metals inventory 43 968 4 284
Proceeds from the sale of long-term financial assets – 114
Shareholders loans (11 180) –
Proceeds from the sale of / (acquisition of) intangible assets (131) (99)
Purchase of precious metals inventory (13 693) (52 581)
Payment of restructuring expenses (10 366) (5 321)
Cash flows from investing activities 371 (72 311)
Change in short-term borrowings 8 580 (10 149)
Sale of capital contribution warrants to shareholders 1 640 –
Diposal of / (acquisition of) treasury shares net – 4 842
Dividends paid – (98 808)
Cash flows from financing activities 10 220 (104 115)
Effects of exchange rate changes on cash and cash equivalents (7 407) (1 693)
Change in cash and cash equivalents 40 029 (103 864)
Cash and cash equivalents, at beginning of year 66 078 169 942
CASH AND CASH EQUIVAlENTS, AT END oF YEAR 106 107 66 078

consolIdated statement oF changes In equIty For the year ended dec. 31, 2010
in CHF 1 000
2010
Share
capital
Share
premium
Accumulated
profits
Cumulative
translation
adjustment
Goodwill on
acquisitions
Treasury
shares Total
Total equity as of 1.1 800 35 416 274 338 (29 773) (11 541) – 268 240
Profit for the year – – 54 941 – – – 54 941
Dividend – – – – – – –
Shareholders capital contribution – 1 640 – – – – 1 640
Sale of own shares – – – – – – –
Transfers – – – – – – –
Exchange difference – – – (15 279) – – (15 279)
ToTAl EQUITY AS oF 31.12 800 37 056 329 279 (45 052) (11 541) – 310 542
2009
Total equity as of 1.1 800 33 542 363 517 (26 504) (11 541) (1 968) 357 846
Profit for the year – – 9 801 – – – 9 801
Dividend – – (100 000) – – – (100 000)
Sale of own shares – 2 894 – – – 1 968 4 862
Transfers – (1 020) 1 020 – – – –
Exchange difference – – – (3 269) – – (3 269)
ToTAl EQUITY AS oF 31.12 800 35 416 274 338 (29 773) (11 541) – 269 240
23

24
group companIes as oF december 31, 2010
Company name Headquarter Currency
Share capital
(1 000)
Group
interest
Metalor Technologies International SA Neuchâtel, Switzerland CHF 800 N/A
Metalor Technologies SA Neuchâtel, Switzerland CHF 11 750 100%
Metalor Finance SA Neuchâtel, Switzerland CHF 40 400 100%
Metalor Finance (Curaçao) N.V. Curaçao, N.A. CHF 10 100%
Metalor Technologies (UK) Ltd. Birmingham, UK GBP 150 100%
Metalor Technologies (Iberica) SA Barcelona, Spain EUR 822 100%
Metalor Technologies USA Corporation North Attleboro, USA USD 1 100%
Metalor USA Refining Corporation Attleboro, USA USD 1 100%
Metalor Technologies (Hong Kong) Ltd. Hong Kong, China HKD 3 501 100%
Metalor Technologies (Hong Kong) Ltd.
Taiwan Branch
Metalor Technologies (Hong Kong) Ltd.
Taipei, Taiwan TWD 5 000 100%
Korean Branch Seoul, South Korea KRW 2 960 089 100%
Metalor Technologies (Suzhou) Ltd. Suzhou, China USD 12 000 100%
Metalor Technologies (France) S.A.S. Courville, France EUR 5 079 100%
Metalor Technologies (Deutschland) GmbH* Redwitz, Germany EUR 767 100%
Metalor Technologies (Italia) S.R.L. Milano, Italy EUR 100 100%
Metalor Technologies (Sweden) AB Boras, Sweden SEK 100 100%
Metalor Technologies (Singapore) PTE Ltd. Singapore, SG SGD 100 100%
Metalor Electrotechnics (USA) Corp. Export, USA USD 1 100%
Metalor Technologies (Puerto Rico) LLC
Metalor Technologies Operations (Mexico)
Luquillo, Puerto Rico USD 10 100%
S.A. de C.V.
Metalor Technologies Services (Mexico) S.A.
Naucalpan, Mexico USD 500 100%
de C.V. Naucalpan, Mexico USD 1 100%
* In liquidation
Note: Full Consolidation is applied for all the companies.

governIng bodIes
board oF dIrectors
Joël Lacourte
Martin Bisang
Sophie Pochard
Daniel Schlatter
Jean-Hubert Vial
corporate management
Dr. Scott Morrison
Daniel Templeman
Dr. Yuxing Shang
Jacques Michel
Jacques Schaffnit
Kenneth Beilstein
Laurence Drummond
Richard Le Vaillant
Roger Matthey
John Reid
audItors
Laurent Bludzien
Michael Ackermann
Chairman
Member
Member
Member
Member
Chief Executive Officer
Chief Financial Officer
General Manager Refining Division
General Manager Advanced Coatings Division
General Manager Electrotechnics Division
General Manager Asia
General Manager Americas
Group Operational Risk and Quality System Manager
Human Resources Group Manager
Group Treasurer
Ernst & Young Ltd., Lausanne, Switzerland
Ernst & Young Ltd., Geneva, Switzerland
25

26
group operatIng companIes
(As of December 31, 2010)
swItzerland
metalor Technologies International SA
Avenue du Vignoble
P.O.Box 9
CH-2009 Neuchâtel
Phone +41 32 720 61 11
Fax +41 32 720 66 25
www.metalor.com
E-mail: corporate@metalor.com
metalor Technologies SA
Divisions
Avenue du Vignoble
P.O.Box 9
CH-2009 Neuchâtel
Phone +41 32 720 61 11
Fax +41 32 720 66 14
Divisions
Rue des Perveuils 8
CH-2074 Marin
Phone +41 32 720 61 11
Fax +41 32 720 66 02
Fax +41 32 720 66 12
legend
Head Office
Divisions
Refining
Advanced Coatings
Electrotechnics
unIted states
metalor Technologies USA
Corporation
Division
255 John L. Dietsch Boulevard
North Attleboro, MA 02763, USA
Phone +1 508 699 8800
Fax +1 508 695 1603
metalor USA Refining Corporation
Division
255 John L. Dietsch Boulevard
North Attleboro, MA 02763, USA
Phone +1 508 699 8800
Fax +1 508 695 1603
Division
los Angeles office
650 South Hill Street Suite 811
Los Angeles, CA 90017-1754, USA
Phone +1 213 624 7687
Fax +1 213 624 5532
metalor Electrotechnics (U.S.A) Corp
Division
1003 Corporate Lane
Export, PA 15632
Phone +1 724-733-8332
Fax +1 724-733-8341
peru
metalor USA Refining Corporation
Succursal del Peru
Division
Av. Produccion Nacional 268
Urb LaVilla
Chorillos Lima 09
Peru
Phone +511 251 5456
Fax +511 251 5472
mexIco
metalor Technologies operations
(mexico), S.A. de C. V.
Division
Prolongación 5 de Mayo
29, Parque Industrial Naucalpan
Naucalpan de Juarez.
Estado de Mexico, zip code 53489
Phone +52 55 53001909
Fax +52 55 53006654
metalor Technologies Services
(mexico), S.A. de C. V.
Division
Manuel Sotero Prieto 2–A
Cirauto científicos
Ciudad satelite
Naucalpan de Juarez.
Estado de Mexico, zip code 53100
Phone +52 55 53127658
spaIn
metalor Technologies (Ibérica) SA
Division
Espronceda 183 – 1 o 1 a
E-08018 Barcelona
Phone +34 933 030 112
Fax +34 933 073 795
Division
C / Albasanz 14 bis, 1° G
E-28037 Madrid
Phone +34 913 757 480
Fax +34 913 044 142
France
metalor Technologies (France) S.A.S.
Division
Rue des Aquées, BP 29
F-28190 Courville-sur-Eure
Phone +33 2 37 23 78 44
Fax +33 2 37 23 74 67

Division
11, rue Louis Aulagne
BP 63
F-69922 Oullins Cedex
Phone +33 4 72 66 32 10
Fax +33 4 72 66 37 20
the netherlands
metalor Technologies (UK) ltd
The Netherlands Branch
Division
Weegschaalstraat 3
NL-5632CW Eindhoven
Phone +31 40 29 11 265
Fax +31 40 29 11 266
unIted KIngdom
metalor Technologies (UK) ltd.
Division
74 Warstone Lane
UK-Birmingham B18 6NG
Phone +44 121 236 3241
Fax +44 121 236 3568
sweden
metalor Technologies (Sweden) AB
Division
Sagagatan 22
S-50635 Boras
Phone +46 33 44 42 50
Fax +46 33 44 42 60
Italy
metalor Technologies (Italia) S.r.l.
Division
Via G. Di Vittorio 28
I-20068 Peschiera Borromeo (Milano)
Phone +39 02 51 65 18 1
Fax +39 02 55 30 10 21
chIna
metalor Technologies
(Hong Kong) ltd.
Divisions
Suite 1705-9, The Metropolis Tower
10 Metropolis Drive, Hung Hom
Kowloon, Hong Kong – China
Phone +852 2521 4131
Fax +852 2845 1791
metalor Technologies (Suzhou) ltd.
Divisions
8 Zhao Yang Road
Suzhou Industrial Park
Jiangsu Province
China 215123
Phone +86 512 6593 6181
Fax +86 512 6593 6171
Shanghai liaison office
Division
No 3 Building, 800 Shenfu Road
Xinzhuang Industry Park
Minhanh District
Shanghai
China 201108
Phone +86 21 5442 3060
Fax +86 21 5442 0790
Dongguan Branch office
Divisions
Unit B213, Wanbao Cheng
Dezheng East Road
Changan, Dongguan
Guangdong Province
China 523856
Phone +86 769 8544 3938
Fax +86 769 8544 3933
taIwan
metalor Technologies
(Hong Kong) ltd.
Taiwan Branch
Divisions
6F, 101 Rei-Hu Street
Nei-Hu
Taipei, Taiwan China
Phone +886 2 7720 7775
Fax +886 2 7720 0303
sIngapore
metalor Technologies (Singapore)
PTE ltd.
Division
67 Tech Park Crescent TUAS
Singapore 638074
Phone +65 6863 1600
Fax +65 6863 0102
thaIland
metalor Technologies (Singapore)
PTE ltd.
Bangkok Representative office
Division
Prime State Mini Office
79/4 Moo2, 5th Floor
Srinakarin Road, Nongborn Pravej
Bangkok 10260
Thailand
Phone +66 2366 0719
Fax +66 2366 0720
27

REFINING ADVANCED COATINGS ELECTROTECHNICS
© Copyright Metalor 2011. All rights reserved. Except
as permitted by law, no part of this document may be
reproduced or transmitted by any process or means without
the prior consent of Metalor.
The Metalor logo, the Metalor© name and all product
names referred to herein are the registred trademarks and
trademarks of the Metalor Group of companies.
No guarantee nor warranty of any kind is given as to the
information contained herein, including but not limited to
accuracy, completeness, merchantability or fitness for a
specific purpose. Metalor shall not be held liable for loss or
damage which may result from reliance on the information
contained herein.
Published by Metalor Technologies International SA,
Avenue du Vignoble, P.O. Box 9, 2009 Neuchâtel,
Switzerland.
Design: > graffiti-communication.ch
Photos: Metalor / > graffiti-communication.ch
Print: IDM, Imprimerie des Montagnes, La Chaux-de-Fonds
Edition: English 1500
CS – 0001E / 03.2011 – 1500

Metalor Technologies International SA
Avenue du Vignoble, P.O. Box 9, CH-2009 Neuchâtel,
Phone +41 (0)32 720 61 11, Fax +41 (0)32 720 66 25
info@metalor.com, www.metalor.com