ANNUAL REPORT

AnnuAl report 2006

REFINING ADVANCED COATINGS WATCHES AND JEWELRY ELECTROTECHNICS

Table of conTenTs
IntroductIon
Foreword 3
Metalor in brief 6
Highlights 2006 8
dIvIsIonal actIvItIes
Refining 10
Advanced Coatings 12
Watches and Jewelry 14
Electrotechnics 16
FInancIal statement
annual reporT 2006
Precious metal prices 18
Financial year 2006 report 20
Consolidated balance sheet 21
Consolidated statement of income 22
Consolidated statement of cash flows 23
Consolidated statement of changes in equity 24
Group companies 25
The operating companies of the Metalor Group 26
Governing bodies 28

Foreword
Dear Shareholders,
Ladies and Gentlemen,
The world of commodities and precious
metals continued in a very
positive direction during 2006 for all
participants in the value chains.
Miners, refiners, fabricators and investors
all had positive, and some
record results for the year. Supply
constraints, strong fundamental demand
driven by Asia, and positive
investor sentiment contributed the
most to the buoyant markets. The
volatility of metal prices were a significant
challenge to both the treasury
and operating divisions of Metalor.
We are happy to report that our business
models were flexible enough to
cope with the fluctuations. The higher
prices even contributed to increases
in margins. We are also pleased with
the response of our banking partners
in providing enhanced lines of credit
during the year allowing us to sus-
tain the organic growth in net sales
over 2005. All four business units
exceeded the previous years results.
This result came from the metal
prices, gross margin improvement
due to more efficient manufacturing,
and control of operating costs. In the
Technology Products unit significant
shifts in the market place for platinum
based pharmaceuticals have occurred
and we are considering a change in
strategy.
The shareholding of the company
did not change significantly during
the year. An employee shareholding
plan was instituted and 3.5% of the
company shares were bought from
the treasury shares available. It is foreseen
that this program will continue
in 2007.
The events and situations described
above resulted in a consolidated operating
margin of 14% as compared to
9% in 2005. The sale of metals held
in own stocks during the period contributed
CHF 7 million compared to
the 2005 sale of financial investments
which generated CHF 27 million. Net
profit for 2006 is CHF 36 million as
compared to CHF 41 million in 2005.
The company has achieved a significant
step in performance as compared
to previous years as now the bulk of
net profit is generated by operating
activities.
3

4
Revenue growth in CHF terms for the
four business units was 17% ahead
of 2005. From a geographical stand-
point, in local currency terms there
was good growth in all subsidiaries
except Italy, where the Rome factory
was closed, and Singapore due to
continued shrinkage of lead frame
manufacturing.
advanced coatIngs
Net sales increased 8% as compared
to 2005. European operations were
restructured with the Dutch and Ger-
man service centers consolidated
into the UK. The production facilities
of Italy were closed and products
transferred to the Swiss site in Marin.
The US plating business returned to
profitability with a slightly reduced
business base after a business model
change. The strong demand in Asia
for precious metal chemicals for the
electronics industry and gains in mar-
ket share for powders contributed to
increases in margin. Late in the year
a long-term supply agreement was
signed with a major customer which
will result in a major capital program
in the Suzhou China factory.
electrotechnIcs
The Electrotechnics activities achieved
a 19% revenue growth and a 80%
improvement in operating results
during 2006. This substantial im-
provement in margin comes from
improved manufacturing efficiency as
a consequence of capital programs in
2005, process innovation and market
share gains. The Chinese plant is now
working and is receiving its first or-
ders from multinational companies in
China.
reFInIng
The Refining Division profited well
from high volumes processed through
the Marin facility, the turnaround of
the USA refinery, and strong demand
in Hong Kong. The USA also managed
to increase market share. Net sales
were 41% ahead of 2005. Designs
were completed for a capital program

in 2007 to increase PGM refining ca-
pability at the Marin refinery. Terms of
sale were adjusted during the metal
price spike early in the year.
watches and Jewelry
This division had another year of
growth with net sales increasing 11%
from 2005. The luxury goods and
high end watch markets continued to
show good growth. The supply of al-
loys to the jewelry markets in Europe
was flat for the period. The Swiss
watch industry is trending towards in-
ternalization which impacted base lev-
els of business. Market diversification
made up this deficit. Pricing models
were changed early in the year in or-
der to cope with the volatility in metal
prices.
ProsPects For the Future
Most current economic forecasts pre-
dict similar growth trends for most
world markets with some weakening
in the USA. It is our expectation that
metal prices will remain at levels near
the average of 2006 but with volatil-
ity a continuing issue. Current orders,
customer forecasts and trends for the
electronics sector in Asia would sup-
port a strong growth for our act-
ivities in this geographical area. For
the four business units, new product
development will continue with R&D
at a divisional level, and the Tech-
nology Product unit will focus on a
few medium term innovations. Our
budgets for 2007 reflect this general
optimism with some challenging goals
for 2007.
The Board of Directors and the Man-
agement would like to take this
opportunity to express our sincere
appreciation to all our clients, finan-
cial and business partners, and share-
holders for their continued support.
A special thanks goes to all our em-
ployees around the world who have
worked hard during 2006 to achieve
this great result.
Martin Bisang
Chairman of the Board of Directors
Dr. Scott Morrison
Chief Executive Officer
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6
metalor In brIeF
a global grouP
Founded in 1852 in Le Locle in the
heart of Switzerland’s watchmaking
industry which was then rapidly
expanding at the time, 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 watchmaking role and in 1950
began to offer services to a number
of other industries across the world,
which have a common need for
precious metals.
Relocated to Neuchâtel in 1947 the
Metalor Group continued to grow and
expand, adding new factories in France
and the United States to its network,
followed by China. 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.
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 the manufacture
of luxury watches. The company’s
ability to innovate and come up with
reliable technology has attracted the
leading names in industry, fostering the
development of new market segments
for partners looking for precious-metal
based innovation.
Metalor has four divisions, each
corresponding to a group of specific
markets: Refining for the processing of
precious metals and the manufacture
of ingots; Advanced Coatings for
electronic and decorative applications;
Watches and Jewelry, which includes
jewelry and luxury watch products
and Electrotechnics, serving the
electrical contacts market. At present
the Metalor Group includes some 17
companies on four continents with a
total staff worldwide of 1191.

Key statIstIcs
Dark grey : countries in which the
Metalor Group is present through its subsidiaries.
2006 2005 2004 2003
Net sales
(excluding PM value, in CHF million) 290.5 247.9 270.4 270.1
EBIT (in CHF million) 40.4 21.4 17.3 2.1
Net profit (in CHF million) 36.3 40.8 24.5 23.7
Headcount FTE (December 31) 1 191 1 151 1 288 1 335
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8
hIghlIghts 2006
reFInIng dIvIsIon
contInued success
The Refining Division enjoyed yet
another year of great success.
Benefiting from the strong precious
metal market, larger geographical
coverage and a wider range of
customers, Metalor’s three refineries
have received record volumes of scrap
for refining. A campaign on technical
and logistical improvements, and the
installation of new refining processes
have contributed to the reduction of
metal throughput time.
Successful restructuring in the USA
refinery allowed it to take full benefit
from the good market while keeping
costs under control. Refineries in
Switzerland and in Hong Kong
continued their strong performance.
Metalor started a refining circuit in
Suzhou and successfully refined its first
batch of gold just before the end of
the year.
advanced coatIngs dIvIsIon
Further develoPments In the
Far east
In 2006, the Advanced Coatings
Division continued to follow the
evolution in the markets. It pursued its
consolidation within Europe and the
USA and also the development of its
activities in the Far East.
Production in Europe has been
consolidated in Marin after shutting
down of activities in Rome and
Noisy. On the other side, production
capabilities of our Suzhou plant have
been expanded to gold products and
proprietaries.
R&D plating activities have been
consolidated in Singapore, and
business relations with key customers
and partners have strengthened.

watches and Jewelry dIvIsIon
contInued ImProvements to
better serve customers and
bolster sales
Continued improvements, to better
serve its customers, remained the focus
of the Watches and Jewelry Division in
2006. The quality assurance programs
introduced during the year have
allowed production to react speedily
to constantly tightening customer
quality specifications. The acquisition
of cutting edge software to assist in
new product development considerably
reduced time to market.
Sales in 2006 benefited from a positive
trend in the watch industry, as demand
increased for ever larger and heavier
watch cases in precious metals. The
expansion of the division into new
luxury segments other than watches
proved to be a success. As a result,
investments into machine capabilities
were implemented to sustain this
growth area.
electrotechnIcs dIvIsIon
contInuous ImProvement In
2006
The Electrotechnics Division
experienced two significant
accomplishments in 2006: increase in
Chinese operations and double digit
growth in Europe.
In China, we are now able to offer
our full product range with a fast
increasing Chinese content. Also, we
are evaluating the opportunities to
go down further into the value chain.
Furthermore, the building of a second
plant is being studied to accelerate our
developments.
In Europe, our sustained profitable
growth is a great reward for all the ET
employees who are making every effort
to reach customer service excellence
day after day. As an example our
Redwitz site in Germany has been
recognized as “preferred supplier of
the year” by Siemens Regensburg in
2006.
9

10
relIable PerFormance
Metalor Refining Division operates the most advanced
precious metal refining facilities in the world. With more
than 150 years of history in precious metal refining and
strong focus on customer service, the Refining Division
is recognized both for its reliable services and for its
high quality products supplied to electronics and jewelry
industries around the world
meetIng customers’ needs
The Refining Division specializes in
recovering gold, silver and platinum
group metals from a wide range of
precious metal bearing materials.
Depending on precious metal con-
tent, these materials could be either
high grade metallic such as gold and
silver dore, platinum group bullion,
karat scrap and dental scrap etc., or
low grade materials such as work-
shop wastes, manufacturing swarf,
spent metal catalyst, electroplated
metallic scrap and electronics scraps
etc. The materials may be sourced
from banks, mines, collectors, dealers
and industries using precious met-
als. Once received at the refinery, the
materials are first evaluated to deter-
mine the precious metal content. The
precious metals are then separated
from impurities in the refining pro-
cesses. Fine metals are eventually
converted to bullion products which
are accredited with LBMA, TOCOM,
COMEX, Dubai and other major mar-
kets, and specialty products such as
high purity gold (above 99.999%
pure), silver powder, platinum and
palladium salts etc. to meet the needs
of customers from high-technologies
sectors.
The Refining Division operates three
refineries located in Switzerland, USA
and China, respectively. In addition, it
has evaluation centers and sales of-
fices around the world to bring extra
convenience to customers. No mat-
ter where the customers are located,
our proactive and experienced sales
teams are close enough to deliver dis-
tinctive full refining services starting
from acceptance of materials to final
settlement.
the quest For excellence
Maintaining its reputation of Swiss
Excellence is the top priority for the
Refining Division. Continuous efforts
have been made to shorten evalu-
ation and refining throughput time,

maximize precious metal refining
yields and cut costs. Major invest-
ments on new refining technologies
in recent years have improved effi-
ciency and further strengthened our
competitive advantage.
The evaluation service of the Refining
Division is highly efficient, fast and
accurate. Evaluation centers usually
perform sampling and a quick analy-
sis for rapid settlement with custom-
ers. The final analysis is performed in
one of the refineries. Highly skilled
assayers and chemists guarantee
the high accuracy of the result. The
quality of the analyses has led to
Metalor being appointed an Official
Referee by the London Bullion Market
Association.
The Refining Division applies the
highest ethical standards in its business
relations. 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.
refining Division
contInuous eFForts
The significant improvement in
speed, quality and productivity in
the Refining Division in recent years
has only been possible thanks to the
efforts made by its staff members.
With enthusiasm, they have demonstrated
that persevering with a strategy
aimed at customer satisfaction
surely leads to success.
11

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exPerts
The Advanced Coatings Division of Metalor delivers
innovative solutions in electroplating, powders and flakes.
These products are used in a wide variety of businesses
such as general electronics, semiconductor, decorative and
multi-disciplinary industrial sectors.
guaranteed results !
By supplying precious metals in
various forms, Metalor Advanced
Coatings ensures high technical
performance in terms of wear resis-
tance and conductivity for electronic
products (connections, printed cir-
cuits, semi-conductors). It also gives
a remarkably pleasing appearance to
decorative products (watches, jew-
elry, leather goods and spectacles).
These industries are characterized by
highly competitive trading conditions.
They therefore seek partners such as
Metalor that are able worldwide to
meet all their needs, and guarantee
a standard of technical assistance for
their increasingly demanding require-
ments.
global PosItIonIng
The Advanced Coatings Division
develops, manufactures and distrib-
utes salts, processes, powders, pastes,
targets, precious metal compounds
and catalysts based on precious met-
als such as gold, platinum, silver
and rhodium at its production sites
set up in Europe, the USA and Asia.
In order to monitor and respond to
changes in demand, Metalor has
moved into the industrial heart of
China, where a production site for
precious metals chemicals has been
established along with a melting shop
and analysis laboratory in Suzhou,
close to Shanghai. This plant not only
serves the local market but is also
in line with the policy of developing
Advanced Coatings operations in the
Asia Pacific Area.
Know-how and Product
develoPment
The sales forces working in the main
markets, backed up by local and
regional technical support, enable us

to offer a comprehensive range of
powders, flakes, pastes, compounds,
salts, solutions and processes based
on precious metals. Metalor provides
a practical response to its customers’
ongoing concerns about cost-cutting
by offering products and processes
that call for fewer precious metals
and by speeding up production times,
thus reducing requirements for mate-
rials. Always ready to provide guid-
ance to customers on new process
developments, Metalor keeps an ear
to the ground in its markets in order
to direct its operations towards prom-
ising areas. The Advanced Coatings
Division has ISO 9001:2000 as well
as ISO 14001 certification and guar-
antees the superiority of its products,
which are distinguished by their top
quality, their stability over time and
their unequalled reliability.
a sIngle Partner
The division relies on the renowned
expertise of the Metalor Group in the
field of fine precious metals in order
to ensure high-quality salt production
(gold, silver, palladium, platinum and
rhodium). This proximity also enables
it to build a real partnership with its
customers by providing a compre-
hensive service, covering the entire
aDvanceD coaTings Division
cycle of recovering and refining scrap
containing precious metals. Ongoing
technical training and the commit-
ment of all the staff over the years
have enabled us to provide a person-
alized service in all markets, thus con-
tributing to the success of Metalor
Advanced Coatings operations.
13

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multIPle IndustrIal sKIlls
The Watches and Jewelry Division specializes in
developing, manufacturing, selling and distributing
precious metal alloys in the form of semi-finished and
finished products for the watch-making, jewelry and
other luxury markets.
InnovatIon, qualIty and servIce
as a vehIcle For growth
Precious metals in the luxury mar-
kets continue to attract demand
around the world. Each year sees the
appearance of new developments
and trends, going from yellow to red
and white gold, platinum and more
recently palladium. Over the years,
persistent innovation has positioned
Metalor as a benchmark supplier to
the luxury Swiss watch making indus-
try. The Research and Development
department continually develops new
alloys in response to market demand
as well as individual customer needs.
Furthermore, industrialization is guar-
anteed by a team of skilled engineers
transforming the new alloys into
semi-finished and finished products.
Thanks to our ability to deliver a wide
range of precious metal alloys in vari-
ous shapes and sizes (tubes, cases,
washers, wires, sheets, profiles etc.),
Metalor has emerged as the preferred
partner of leading watch brands and
jewelers. Along with quality, reliability
and customer service have remained
the focus of our organization. This
approach has allowed the company
to enter other areas of growth such
as luxury telephones and finished
jewelry. To support this activity, the
division has recently invested in new
machinery.

eFFIcIency and relIabIlIty to
suPPort our customers
Rising precious metal prices coupled
with ever shorter lead times are
putting considerable pressure on
manufacturing and supply chains.
At Metalor, the redesigning of mate-
rial flows has allowed production
processes to speed up considerably.
Greater efficiency and flexibility have
been reached by delegating responsi-
bility and decision making to autono-
mous shop floor units. By adopting
a quality assurance process, a num-
ber of these units have consistently
improved in-house quality. Last but
not least, investments in machinery
and software have helped us reduce
drastically the “time to market” of
new products.
WaTches anD JeWelry Division
The division offers its customers a
refining service for their manufactur-
ing scrap as well as managing their
precious metal accounts. The reli-
ability of this service is the result of
a combination of know-how and
unique skills that is proving to be of
paramount importance to our cus-
tomers.
15

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comPlete solutIons
Metalor’s Electrotechnics Division converts silver metal into
electrical contacts, improving the safety and durability of
electrical apparatus throughout their working life. The
division meets the increasing demands of the electrical
industry with its expertise in metallurgy, its organizational
flexibility and its desire to innovate, working in partnership
with its customers.
exPertIse In metallurgy
The Electrotechnics Division is
renowned for its ability to convert
silver for the purpose of producing
mainly pseudo-alloys, either by extru-
sion or die-compaction. Electrical
contacts are often multi-layered and
combine the properties of silver with
those of other materials (tungsten,
graphite, tin oxide, nickel, etc.) in
order to ensure high electrical con-
ductivity and strong resistance to
erosion and welding. This expertise
in metallurgy is combined with sig-
nificant know-how in manufacturing,
mixing and compacting powders.
Metalor Electrotechnics is continually
reviewing its product range and thus
offers over 2000 types of semi-
finished products, rivets, tips, assem-
bled contacts and sliding contacts.
guaranteed PerFormance
Metalor Electrotechnics contributes
to the safety and durability of electri-
cal appliances (switches, contactors,
circuit-breakers, relays) intended for
markets such as electrical distribu-
tion, automation, transportation
(automotive, aerospace, railways)
and household. The quality of the
Electrotechnics Division’s products
results in high technical performance
and renowned reliability, making it
a preferred supplier of large world
groups in the electrical industry.
Metalor is improving its productiv-
ity every year by automating its
production lines and is also expand-
ing its product range. The continu-
ous upgrading of skills is achieved
through a sustained Research and
Development effort to develop
new materials or new processes for
example in the field of brazing and
welding.
a comPlete PartnershIP
Thanks to an organization based on
multidisciplinary teams and flexible pro-
duction capacities both in Europe and
Asia, Metalor Electrotechnics is a sup-
plier of total solutions, in partnership
with its customers. The Electrotechnics
Division is present, directly or indirectly,

in over 50 countries in order to meet
the particular demands of many cus-
tomers in a market having distinct char-
acteristics in each region of the world.
Prior approval of materials by the cus-
tomer is a stage that calls for close
relationships at all levels and advanced
methods of electrical testing. All the
research and development, produc-
tion, and sales teams can call on many
years of experience in these certifica-
tion processes. Metalor Electrotechnics
therefore works in collaboration with its
customers from the first stages of the
development of new products. It pro-
vides them with advice and expertise,
through the process of designing new
applications. The combination of skills
in electrical testing, applied research
and metallurgy has enabled Metalor to
develop innovative products based on
AgCW, AgCWC, AgFe, AgZnO, CuCr,
CuW, CuC and AgSnO 2.
The Electrotechnics Division also offers
the integrated management of logisti-
cal flows in line with its customers’
needs in order to ensure just-in-time
product availability, making consign-
ment stocks available for its customers.
Metalor keeps abreast of changes in
the industry by supporting custom-
ers in their technical developments as
elecTroTechnics Division
well as in the geographical expansion
of their production capacity. Metalor
Electrotechnics offers thus long-term
co-operation to its partners, based on
continuous Research and Development
work, improvement in manufacturing
processes and investment in people
and machinery. The end customer gains
benefits from all these aspects through
reliable and durable products.
17

18
PrecIous metal PrIces
PrIce trend For gold chF/Kg 2006 PrIce trend For gold chF/Kg 2002-2006
PrIce trend For sIlver chF/Kg 2006 PrIce trend For sIlver chF/Kg 2002-2006
PrIce trend For PlatInum chF/Kg 2006 PrIce trend For PlatInum chF/Kg 2002-2006
PrIce trend For PalladIum chF/Kg 2006 PrIce trend For PalladIum chF/Kg 2002-2006
Numbers and figures as used in these charts above are only indicative and do not reflect actual quotes or market prices.
©UBS AG 2006

FInancIal statement
MeTalor Technologies inTernaTional sa
Consolidated financial statements
As of December 31, 2006
19

20
FInancIal year 2006 rePort
The year 2006 was influenced by
strong fluctuations in the prices of
precious metals. The overall increase
of prices had a positive impact on
the profitability of our business but it
lead to a substantial higher financing
demand for in process material. The
precious metal financing lines from
our major banking partners were
adapted to meet our needs.
The consolidated sales of the Metalor
Group, without the intrinsic value
of the precious metal, amounted
to CHF 290.5 million which is 17 %
higher than the previous year. The
operating result (EBIT) increased from
CHF 21.4 million to CHF 40.4 million
in 2006. The operating costs were CHF
7.6 million higher than the previous
year. This increase is mainly due to
bonus provisions as a result of the
good profitability of the company in
2006. Excluding this impact operating
costs remained on the same level as
in 2005. The net income of CHF 36.3
million includes a non-operating gain
of CHF 3.6 million which was mainly
generated by the sale of a part of our
own precious metals inventories and
a reversal of a restructuring provision
which was not fully utilised. As
previously mentioned higher metals
prices also led to a CHF 2.6 million
increase in interest cost from lease
lines. The vacant factory building in La
Chaux-de-Fonds was sold during the
year. Major investments were made
to further increase the security of our
sites in Neuchâtel and Marin.
• The Refining Division performed
well in all locations. After
restructuring the USA operations
were profitable in 2006. Overall the
division recorded 41 % more sales
than the previous year.
• The Advanced Coatings Division
performed above expectations
in sales and profitability. Lower
operating costs and improved
margins lead to above average
profitability. The restructuring of our
Italian activities were accomplished
at lower costs than provisioned in
the previous year.
• The Watch and Jewelry Division
increased its sales volume by
11 %. The profitability improved
to a satisfactory level and met
our expectations. A substantial
amount of business was generated
with orders not coming from the
traditional watch industry.
• The Electrotechnics Division
continued a strong growth in sales
and profitability. The turnover
increased by 19 % and the EBIT
reached 12 %. The Chinese
operation started manufacturing
operations.
In 2006 a dividend of CHF 2 000
per share (CHF 18.5 million in total)
was paid to the shareholders. The
shareholder’s equity at year-end 2006
amounted to CHF 352.3 million
or 67 % of the total balance sheet
value. A shareholding program for
key employees was implemented and
327 treasury shares were sold to 29
employees. The total number of shares
remains unchanged at 10 000.
The Board of Directors proposes a
dividend payment of CHF 2 500 per
share (CHF 23.8 million in total).
The Group has a net cash position of
CHF 25.5 million effective 31.12.2006.

consolIdated balance sheet as oF december 31, 2006
(with comparative figures as of December 31, 2005)
in CHF 1 000 31.12.2006 31.12.2005
ASSETS
Cash and cash equivalents 30 466 56 420
Trade receivables, net 284 162 213 270
Other receivables 10 253 17 330
Inventories 72 965 70 551
Prepaid expenses and accrued income 2 797 3 166
Current assets 400 643 360 737
Financial assets 1 995 1 766
Property, plant and equipment 116 729 120 551
Intangible assets 944 1 107
Deferred tax assets 2 408 2 584
Non-current assets 122 076 126 008
ToTAl ASSETS 522 719 486 745
lIABIlITIES AND SHAREHolDERS’ EQUITY
Trade payables 68 940 70 934
Other payables 19 272 11 601
Provisions for liabilities and charges 29 118 25 488
Short-term borrowings 6 037 4 544
Accrued expenses and deferred income 12 078 8 304
Current liabilities 135 445 120 871
Long-term borrowings 24 103
Provisions for liabilities and charges 7 909 2 515
Deferred tax liabilities 27 065 26 286
Non-current liabilities 34 998 28 904
ToTAl lIABIlITIES 170 443 149 775
Share capital 800 800
Share premium 27 456 25 809
Retained earnings 328 762 315 968
Treasury shares (4 742) (5 607)
Shareholders’ equity 352 276 336 970
ToTAl lIABIlITIES AND SHAREHolDERS’ EQUITY 522 719 486 745
21

22
consolIdated statement oF Income For the year endIng december 31, 2006
(with comparative figures for the year ending December 31, 2005)
in CHF 1 000 2006 2005
Net sales (excluding precious metal) 290 452 247 852
Cost of goods sold (excluding precious metal) (161 761) (149 480)
Gross profit 128 691 98 372
Sales and logistics (37 737) (34 957)
Finance and administration (36 764) (31 640)
Other operating costs (10 095) (10 445)
Operating costs, total (84 596) (77 042)
Precious-metal leasing fees, net (5 157) (2 567)
Other operating income 1 505 2 613
operating result before precious-metal price fluctuations 40 443 21 376
Recovery of provision for precious-metal price fluctuations 2 282 4 666
operating result after precious-metal price fluctuations 42 725 26 042
Financial income 10 618 11 357
Financial expenses (12 976) (12 919)
Financial result (2 358) (1 562)
Non-operating income 9 592 32 096
Non-operating expenses (6 030) (13 562)
Non-operating result 3 562 18 534
Income before tax 43 929 43 014
Current income tax (6 443) (3 409)
Deferred tax (1 153) 1 173
NET INComE 36 333 40 778

consolIdated statement oF cash Flows For the year endIng december 31, 2006
(with comparative figures for the year ending December 31, 2005)
in CHF 1 000 2006 2005
Income before tax 43 929 43 014
Depreciation, amortization and provisions 22 763 21 806
Loss on sales of fixed assets 1 638 –
Working capital changes, net (53 556) (37 723)
Deferred taxes changes, net (198) 104
Income tax paid (3 903) (3 819)
Cash flows from operating activities 10 673 23 382
Purchase of fixed assets (14 849) (16 908)
Proceeds from the sale of fixed assets 1 052 1 305
Proceeds from the sale of long-term financial assets – 29 750
Proceeds from the sale of Dental assets – 5 596
Cash contributed to spin-off Dental – (14 263)
Paid restructuring expenses (3 811) (4 080)
Cash flows from investing activities (17 608) 1 400
Change in short-term borrowings 1 493 (2 471)
Change in long-term borrowings (79) (2 045)
Sale of / (acquisition of) treasury shares 555 1 385
Dividend paid (18 478) (5 319)
Cash flows from financing activities (16 509) (8 450)
Effects of exchange rate changes on cash and cash equivalents (2 510) 1 852
Change in cash and cash equivalents (25 954) 18 184
Cash and cash equivalents, at beginning of year 56 420 38 236
CASH AND CASH EQUIVAlENTS, AT END oF YEAR 30 466 56 420
23

24
consolIdated statement oF changes In equIty For the year endIng dec. 31, 2006
(with comparative figures for the year ending December 31, 2005)
Cumulative
Share Share Accumulated translation Goodwill on Treasury
in CHF 1 000 capital premium profits adjustement acquisitions shares Total
2006
Total equity as of 1.1 800 25 809 334 595 (8 013) (10 614) (5 607) 336 970
Spin-off Dental – – – – – – –
Reduction of share capital – – – – – – –
Profit for the year – – 36 333 – – – 36 333
Dividend – – (18 478) – – – (18 478)
Acquisition of own shares – – 43 – – (43) –
Sale of own shares – 1 647 (908) – – 908 1 647
Exchange difference – – – (4 196) – – (4 196)
ToTAl EQUITY AS oF 31.12 800 27 456 351 585 (12 209) (10 614) (4 742) 352 276
2005
Total equity as of 1.1 1 123 25 344 314 185 (16 494) (10 614) (4 264) 309 280
Spin-off Dental (225) – (18 699) – – 790 (18 134)
Reduction of share capital (98) – (7 886) – – 7 984 –
Profit for the year – – 40 778 – – – 40 778
Dividend – – (5 319) – – – (5 319)
Acquisition of own shares – – 11 536 – – (11 537) (1)
Sale of own shares – 465 – – – 1 420 1 885
Exchange difference – – – 8 481 – – 8 481
ToTAl EQUITY AS oF 31.12 800 25 809 334 595 (8 013) (10 614) (5 607) 336 970

grouP comPanIes
(As of 31 st December, 2006)
Share
capital Group Consolidation
Company name Headquarter Currency (1 000) interest method*
Metalor Technologies International SA Neuchâtel, Switzerland CHF 800 N/A F
Metalor Technologies SA Neuchâtel, Switzerland CHF 11 750 100% F
Metalor Finance SA Neuchâtel, Switzerland CHF 40 400 100% F
Metalor Finance (Curaçao) N.V. Curaçao, N.A. CHF 10 100% F
Metalor Technologies (UK) Ltd. Birmingham, UK GBP 150 100% F
Metalor Technologies (Iberica) SA Barcelona, Spain EUR 822 100% F
Metalor Technologies USA Corporation North Attleboro, USA USD 1 100% F
Metalor USA Refining Corporation North Attleboro, USA USD 1 100% F
Metalor Technologies (Hong Kong) Ltd. Hong Kong, China HKD 3 501 100% F
Metalor Technologies (Hong Kong) Ltd.
Taiwan Branch Taipei, Taiwan TWD 5 000 100% F
Metalor Technologies (Hong Kong) Ltd.
Korean Branch Seoul, South Korea KRW 2 960 089 100% F
Metalor Technologies (Suzhou) Ltd. Suzhou, China USD 2 100 100% F
Metalor Technologies (France) S.A.S. Courville, France EUR 5 079 100% F
Metalor Technologies (Deutschland) GmbH Stuttgart, Germany EUR 767 100% F
Metalor Technologies (Italia) S.R.L. Milan, Italy EUR 100 100% F
Metalor Technologies (Sweden) AB Boras, Sweden SEK 100 100% F
Metalor Technologies (Singapore) PTE Ltd. Singapore, SG SGD 100 100% F
* F = Full Consolidation
25

26
the oPeratIng comPanIes oF the metalor grouP
(As of December 31, 2006)
swItzerland
metalor Technologies International SA
Avenue du Vignoble
CH-2009 Neuchâtel
Phone +41 32 720 61 11
Fax +41 32 720 66 25
www.metalor.com
E-mail: corporate@metalor.com
metalor Finance SA
Avenue du Vignoble
CH-2009 Neuchâtel
Phone +41 32 720 61 11
Fax +41 32 720 66 01
metalor Technologies SA
Divisions
Avenue du Vignoble
CH-2009 Neuchâtel
Phone +41 32 720 61 11
Fax +41 32 720 66 05
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
Division
Geneva office
Rue Pré-Bouvier 29
CH-1217 Meyrin
Phone +41 22 783 20 98
Fax +41 22 783 20 88
legend
Head Office
Divisions
Refining
Advanced Coatings
Watches and Jewelry
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
Peru
metalor USA Refining Corporation
Succursal del Peru
Division
Av. Produccion Nacionales 278
Edif. Hermes Urb LaVilla
Chorillos Lima 09
Peru
Phone +511 251 5456
Fax +511 252 5472
sPaIn
metalor Technologies (Ibérica) SA
Divisions
Bolivia 202-204
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 78 86 90 68
Division
Immeuble P.H. Spaak
12-14, rue Jules Ferry
F-93110 Rosny-sous-Bois
Phone +33 1 48 12 51 00
Fax +33 1 48 12 51 19
Division
53, rue Lafayette
F-75009 Paris
Phone +33 1 40 23 00 29
Fax +33 1 40 23 01 98
germany
metalor Technologies (Deutschland)
GmbH
Divisions
Kronacher Strasse 66
D-96257 Redwitz
Phone +49 9574 624 803
Phone +49 9574 624 800
Fax +49 9574 624 804
the netherlands
metalor Technologies (Deutschland)
GmbH
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.
Divisions
74 Warstone Lane
UK-Birmingham B18 6NG
Phone +44 121 236 3241
Fax +44 121 236 3568
Division
104-105 Saffron Hill
UK-London EC1N 8HB
Phone +44 20 7405 5298
Fax +44 20 7405 4844
denmarK
metalor Technologies (UK) ltd.
Denmark Branch
Divisions
Vestre Gade 6
Brøndbyøster
DK-2605 Brøndby
Phone +45 36 48 00 88
Fax +45 36 48 00 55
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.
Divisions
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, Loufeng East Zone
Suzhou Industrial Park
Jiansu Province
China 215123
Phone +86 512 6593 6181
Fax +86 512 6593 6171
Shanghai liaison office
Divisions
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 liaison office
Divisions
Unit B213, Wanbao Cheng
Erhuan East Road
Changan, Dongguan
Guangdong Province
China 523856
Phone +86 769 8544 3938
Fax +86 769 8544 3933
south Korea
metalor Technologies (Hong Kong)
ltd.
Korean Branch
Division
8F. Shinhan Bldg. 2-42
Yangjae 1-dong, Seocho-gu
Seoul, South Korea, 137-886
Phone +82 2 575 3848
Fax +82 2 575 2641
taIwan
metalor Technologies (Hong Kong)
ltd.
Taiwan Branch
Divisions
6F, 101 Rei-Hu Street
Nei-Hu
Taipei, Taiwan R.O.C.
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

28
governIng bodIes
(As of December 31, 2006)
board oF dIrectors
Martin Bisang
Richard Robinson
Hans-Juerg Schaer
Daniel Schlatter
Robert Lombardini
corPorate management
Dr Scott Morrison
Fredy Hiltmann
Dr Yuxing Shang
Jacques Michel
Martin Bless
Dr Jean Fournier
Christine Tsai
Kenneth Beilstein
audItors
Hans Isler
Daniel Humbel
Chairman
Vice-Chairman
Member
Member
Member
Chief Executive Officer
Chief Financial Officer
General Manager Refining Division
General Manager Advanced Coatings Division
General Manager Watches and Jewelry Division
General Manager Electrotechnics Division
General Manager Greater China
General Manager USA
Ernst & Young Ltd., Geneva, Switzerland
Ernst & Young Ltd., Geneva, Switzerland

REFINING ADVANCED COATINGS WATCHES AND JEWELRY ELECTROTECHNICS
© Copyright Metalor 2007. 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, 2009 Neuchâtel, Switzerland.
This annual report is available in English and French.
Design: > graffiti-communication.ch
Photos: Metalor / > graffiti-communication.ch
Print: IDM, Imprimerie des Montagnes, La Chaux-de-Fonds
Edition: English 1800, French 2000
CS – 0001EN / 02.2007 – 1800

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