AnnuAl RepoRt 2011

AnnuAl RepoRt 2011

REFINING ADVANCED COATINGS ELECTROTECHNICS

annual report 2011
table oF contents
IntroductIon
Foreword 3
Metalor in brief 6
Highlights 2011 8
dIvIsIonal actIvItIes
Refining 10
Advanced Coatings 12
Electrotechnics 14
FInancIal report
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

Foreword
Dear Shareholders,
Ladies and Gentlemen,
In the past 12 months we have witnessed
many disruptive events that
have impacted our business in a variety
of ways. As with the banking liquidity
crisis of 2008 / 9, the government debt
issues highlighted last year resulted in
a rapid destocking of supply chains in
anticipation of reduced demand. This
was particularly pronounced in the second
and third quarters of the year. The
earthquake and tsunami in Japan disrupted
supply chains around the world,
and this also slowed production. Over
the past quarter, a number of market
indicators have become positive and
we look forward to a market recovery
in the 2nd half of 2012. The significant
movements in exchange rates between
the Swiss Franc, Euro, US Dollar and
Japanese Yen had regional impacts but
were largely offset by metal price gains
when consolidating the accounts in
Swiss Francs.
Metal prices fluctuated around investor
sentiment and risk exposure but there
was a significant increase in the average
price of gold and silver. There were
several strong price spikes for gold and
silver during the year, which put pressure
on our working capital financing,
but also resulted in periods of record
receipts for refining activity. It is significant
that central banks were net purchasers
of gold worldwide during 2011
reversing a 20-year trend.
As part of the strategic studies undertaken
in 2010, several acquisition
targets were confirmed as optimal. In
the Advanced Coatings Division, Asia
was the focus and in April the Coatings
division of NECC Japan was acquired,
nearly doubling the size of this activity.
The acquisition also expanded our
geographic footprint with facilities in
Japan and Korea, while integration of
the duplicate offices / plants in China,
Taiwan and Singapore are underway.
While the earthquake did affect some
activities, overall results for 2011
exceeded the business plan. We also
realized that we needed to increase our
market position in silver-based powders
and flakes. With this goal in mind,
we acquired the production assets of
Henkel Corp. in Port Huron, Michigan
in December 2011. This production site
offers a diversification of our supply
base and an additional technology.
In order to consolidate our
Electrotechnics production in the
Americas, it was decided to close
Puerto Rico production and integrate
it into the Export, Pennsylvania plant.
This resulted in a more efficient use of
production equipment and the reduction
of 76 staff.
The organizational structure of the
company was reinforced during the
year with the partial verticalization of
the finance and treasury functions
around the world reporting into the HQ.
There were also transitions within the
EXCOM for the CFO and VP of Human
Resources.
We again added several new banking
partners to the portfolio of preciousmetal
working capital providers, and
enhanced our overdraft facilities in
Europe and Asia. Lease rates for gold
remained relatively stable, but we
have seen increases for silver over the
course of the year. For the first time in
the company’s independent history a
syndicate of three banks provided a five
year loan related to the acquisition in
Asia made in April 2011. Non-operating
gains were obtained in the first quarter
from forward metal sales executed during
2010.
3

4
With the company-wide rollout of
DuPont’s STOP safety program, we
significantly reduced the number and
severity of accidents in the group.
Consolidated net sales for the group
increased 16.1 % from 2010. Refining
and Advanced Coatings increased
18.3 % and 54.1 % respectively, while
Electrotechnics decreased by 7.5 %.
Operating profit for the group increased
by 63.3 % and surpassed 100 million
CHF for the first time. Our full-time
equivalent staff now stands at 1665, an
increase of 2.5 % from 2010.
reFInIng
One of the significant achievements for
this division was the de-bottlenecking
and expansion of silver refining in the
USA. Throughput times were reduced
by 50 % and capacity tripled. This
contributed to a marked improvement of
operational margins. Small, consumer
based, precious-metal bar sales in
Europe and China continued to grow
with investor demand. Elements of alloy
production retained from the former
Watch Division had strong sales.
advanced coatIngs
Despite the economic turmoil in
Europe, the sales of precious-metals
chemicals to industrial clients in France
and Northern Europe remained at similar
levels to 2010. Swiss watch industry
chemical sales performed extremely
well. Orders for silver products for the
photovoltaic sector dropped sharply
as destocking exposed overcapacity
and marginal producers closed plants.
Fortunately, our Chinese powder
production site is now seeing sharp
increases in orders as products put to
market over the past two years are now
being qualified. The newly acquired
business in Japan has been integrated
into our divisional and regional structures,
and has several capital expansion
programs underway.
electrotechnIcs
As was the case in 2009, the destocking
effect was the most pronounced
for our products used for electrical
contacts. Special industrial programs
were introduced at all plants to control
costs as volumes changed. This proved
successful and margins were improved
over the previous year, in spite of a
drop in volume. Silver stocks in production
and inventory were reduced
by over 25 % worldwide. As in 2010,
volumes in the Chinese plant grew
significantly. The closure of the Puerto
Rico plant was achieved on schedule
and within budget with no disruption of
customer deliveries.

prospects For the Future
Most precious-metal industry experts
are predicting increases in gold and
silver prices, as these metals continue
to increase in prominence, forming a
solid part of investment portfolios at the
government, commercial banking, and
personal investor levels. The industrial
demand for silver will have a short-term
impact on pricing. Supply chain disruptions
in South Africa and depleted official
stocks of Russian platinum group
metals may lead to price increases in
these metals. Economic recovery, especially
in automobile production, may
exacerbate this.
The Eurozone economies are facing
a unique set of challenges related to
country debt structures and consumer
behaviours. This will benefit our countercyclical
refining business in relation
to scrap supply, and may challenge
some of our precious-metal product
activities in the short term.
We expect the Asian economies to continue
to expand and our business will
grow accordingly. Part of the market in
this area is ripe for consolidation and
we will continue to look for opportunities
to acquire businesses that fit our
strategic plans.
In the Americas we will continue to
invest in our plants in the USA to
improve efficiency and look for growth
opportunities in Latin America via
greenfield investments or selective
acquisition.
Our banking partners, who have their
own set of challenges, have supported
us through the year with increased
working capital requirements and in
supporting acquisitive activity. We are
in discussion with a number of partners
for innovative future financing schemes.
The Board of Directors and
Management would like to thank all our
employees for their efforts in 2011 in
achieving another record year. The support
of our clients is as always greatly
appreciated, and we are gratefull to the
banks for all the financing of our activities.
With our best wishes for 2012 !
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 watchmaking role and in the 1950’s
began to serve a number of other
industries around the world, each of
which shared a need for services and
products requiring 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, subsequently closed in 2011. In
2011 the footprint was expanded to
Korea and Japan with the acquisition of
the plating activity of NECC.
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
develop reliable technology has
attracted leading names in industry,
fostering the development of new
market segments for partners looking
for precious-metal 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, 2011 the Metalor
Group included some 26 companies
on three continents with a total staff
worldwide of 1 665.

Key statIstIcs (in CHF million)
Yellow : countries in which the
Metalor Group is present through its subsidiaries.
2011 2010 2009
Net sales (excluding PM value) 389.9 335.9 262.9
Operating result (EBIT) 108.1 60.5 37.5
Operating result before interest depreciation and amortization (EBITDA) 123.0 75.3 53.6
Net profit 77.9 54.9 9.8
Headcount (Full Time Equivalent - December 31) 1 665 1 625 1 227
7

8
hIghlIghts 2011
reFInIng dIvIsIon
contInued success and
Further expansIon
The Refining Division continued its
success in 2011. Even with a weak
US Dollar exchange rate, consolidated
Net Sales in Swiss Francs increased
by 18.3 % from the previous year. This
increase is mainly attributed to high
volumes of complex gold and silver
scrap, due to dynamic and volatile
market conditions. Strong financing
capability allows us to benefit from
favorable market conditions and make
optimum use of refining processes.
Refineries in Switzerland, the USA
and Hong Kong have processed high
volumes of gold and silver scraps.
PGM refining volume increased slightly
from the previous year. Demand for
bullion products was strong, particularly
in Asia. Revenue from alloy products
increased substantially from 2010
due to the quick recovery of the Swiss
watch industry. Major capital investment
projects are progressing at all
refining sites. These investments will
further increase operational efficiency
and ensure Metalor’s leading position
in refining technologies.
.
advanced coatIngs dIvIsIon
stronger presence
In asIa and the usa
In 2011, the Advanced Coatings
Division was able to achieve its bestever
results, thanks to positive business
development and the acquisition
of the Coatings activities of the
Japanese company NECC in March
2011. Overall the Division achieved
Net Sales over 50 % higher than in
2010, with an operating result 66.8 %
higher than the previous year.
After strong activity in the Electronics
markets of Asia and USA up to July,
we experienced a slowdown in all segments
that impacted our performance
in the second half of the year. On the
other hand, general industry and decorative
segments in Europe performed
well through the year, supported by
the buoyant activity of the luxury
watch industry in Switzerland.
The acquisition in December 2011 of
the silver powders and flakes activities
of Henkel in the USA will reinforce our
manufacturing capabilities and presence
in the photovoltaic segment in
2012.

electrotechnIcs dIvIsIon
acquIsItIon oF MarKet share
and strong growth
After a significant sales increase for
the Division in the first half of 2011,
the global economic turmoil in the
second half negatively impacted the
level of activity of our customers. With
a full supply chain, they consequently
adjusted inventory levels.
In this context, and with the customers’
visibility being short-term, Metalor
Electrotechnics remains oriented
toward long-term growth objectives
worldwide, both in low and medium
voltage applications.
After the acquisition of the operations
of AMI Doduco in North America in
2010, Metalor Electrotechnics has
continued to strengthen its position as
a key player in the electrical contacts
industry : being able to provide our
customers with global support in terms
of production and adding to our existing
presence in low-voltage applications
the field of medium-voltage.
Our growth in China was driven by
the industrialization of numerous 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, major improvement programs
were launched in the fields of
information systems, management
tools and systems, quality, technical
support and innovation. These were
then deployed worldwide.
Because of the high level of silver
prices, we are working our customers’
exposure to this metal, by reducing
silver content in the products and
managing silver in such a way that
customers are provided with financial
tools to reduce their exposure to these
fluctuations. 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.
In 2012 we will continue to achieve
customer satisfaction and, with the
support of our shareholders, to continue
our international growth.
9

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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, karat gold and platinum
scrap, or low-grade materials such as
workshop wastes, spent metal catalysts,
electroplated metallic scrap or
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 highly 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 labora-
tory has been accredited by the Swiss
Federal Office of Metrology (METAS)
for precious-metal analysis.
When the precious-metal content has
been settled with the customer, the
scrap is fed into refining processes. The
fine metal resulting from the processes
is then converted into bullion products
which are accredited with LBMA,
LPPM, TOCOM, COMEX, Shanghai,
Dubai and other major markets. Metalor
makes the whole range of cast and
minted bars as well as speciality products
such as high-purity gold (above
99.999% pure), semi-finished alloy
products, silver powders, platinum and
palladium salts.
The Refining Division operates four
refineries located in Switzerland, the
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 for our customers.
No matter where our 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.
MeetIng custoMer needs
In order to maintain its reputation for
Swiss excellence, the Refining Division
has been continuously improving the
quality of its services and products
by listening to and understanding our
customers’ requirements and expectations.
Continuous investment in new
refining technologies has significantly
improved refining efficiency in terms of

elIable perForMance
With over 150 years’ 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 high-purity bullion products and
high-quality alloy products. Through its refineries and evaluation platforms located in most of the key
precious-metals markets, Metalor provides comprehensive services in refining, metal trading and metal
management to its global customers.
throughput time and metal yield. These
improvements have in turn allowed us
to build stronger partnerships with our
customers and to maintain our leading
position in refining technologies.
The evaluation service of the Refining
Division is highly efficient and fast.
Evaluation centers perform sampling
and rapid analysis enabling quick
settlements with customers. The final
analysis is performed at one of the
refineries. Highly skilled assayers and
chemists guarantee the precise 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 in 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.
strIvIng For excellence
The Refining Division applies the highest
ethical standards in its business
relations. It has one of the leading
due diligence processes relating to
the sources of its supply, and with the
assistance of like-minded people in
industry, NGOs and government bodies
around the world, continues to work
on strengthening its effectiveness in
this area. Metalor has been certified by
reFInIng dIvIsIon
the Responsible Jewellery Council and
declared as a non-conflict gold refiner
as per the guide-lines defined by the
LBMA and Dodd-Frank Acts.
We are motivated by the support of
our customers and banking partners.
Continuous improvement in speed,
quality, productivity and technologies
has only been possible thanks to our
dedicated and competent employees.
With enthusiasm, they have demonstrated
that persevering with a strategy
aimed at customer satisfaction always
leads to success.
11

12
global posItIonIng
The Advanced Coatings Division’s products
are developed and manufactured
at its production sites in Europe, the
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.
The acquisition in March 2011 of the
Coatings activities of the Japanese
company NECC will contribute to
strengthen our presence in Asia.
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 a classic 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.

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.
extensIve range oF powders
and FlaKes
Silver, gold and platinum group powders
are produced in various particle
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. This includes 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
Key custoMers around the
world
The Electrotechnics Division is mainly
committed to serving large companies
in the electrical industry, which
are leaders in their respective market
segments with a global presence.
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 been 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 and fuses, it also serves 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 materials in order to improve safety
and endurance of electrical equipment
throughout the life cycle.
Know-how, expertIse and
hIgh perForMance
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, especially with multitechnology,
based on a wide range
of materials : AgCW, AgCWC, AgFe,
AgFeRe, AgNi, AgZnO, CuCr, CuW,
CuC and AgSnO 2. The electrical contacts
are high-performing, 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 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
secure supplies worldwide.

coMplete solutIons
The Electrotechnics Division uses silver to make electrical contacts that improve the safety and lifetime
of electrical equipment throughout their life cycle. The Division meets the growing requirements of the
electrical industry with its metallurgy expertise, assembly work, organizational flexibility, commitment
to innovation and partnership with its customers. Targeted mainly at larger accounts, the Division is
equipped to provide a full range of materials, components and assembly parts, with geographic coverage
all over the world.
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 a competitive edge and offer
the best products, the Division attaches
great importance 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 remain the focus of the
Electrotechnics Division. This determination,
deployed over the 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 designed to ensure availability of
products in time, for example by providing
systems in line with customer
demand (Kanban, VMI, consignment).
Each year our capabilities are tailored
to the demand of geographical markets,
the productivity is improved through
continuous efforts in the investment of
dIvIsIon electrotechnIcs
human resources and machines, leading
to an increase in skills, automation of
production lines and broadening of our
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 line with further expectations
of our customers.
15

FInancIal report
Metalor technologIes InternatIonal sa
Consolidated financial statements
as of December 31, 2011
17

18
FInancIal report
Metalor’s 2011 results are a reflection
of the continued excellent Refining
Division activity and the solid performance
of the Advanced Coatings
Division, partially offset by the slowdown
of the Electrotechnics Division
activity in the second half of 2011.
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
390.0 million, which is 16.1 % higher
than in the previous year, stemming
from the acquisition of the Asian
Coatings Division of NE Chemcat
(NECC) completed in April 2011. The
operating result (EBIT) increased
78.6 % to CHF 108.1 million, with
Coatings Asia generating a positive
operating result of CHF 9.9 million.
Net income amounted to CHF 77.9
million for 2011. The net result was
positively impacted by disposals of
precious-metals strategic inventories
for a gain of CHF 20.1 million, and by
the sale of various land and buildings
in Switzerland for a gain of CHF 3.5
million, but was negatively impacted by
the closure costs of the Electrotechnics
factory in Puerto Rico. Precious-metals
leasing rates remained stable except
for silver, and the effective tax rate was
31.8 % thanks to the implementation of
selected tax optimization initiatives.
The Refining Division performed
exceptionally well in 2011,s and
enjoyed another record year. In spite
of a strong CHF/USD exchange rate
which had a negative impact on consolidated
results, net sales were 18.3 %
higher than that of 2010. The strong
net sales were attributed mainly to the
volume increase of complex gold and
silver scrap, strong demand in Asia on
bullion products, and high gold and
silver metal prices. The volume of PGM
scrap remained at the same level as
last year, and industrial demand for
PGM has not yet fully recovered. The
gross margin, and consequently the
EBIT, increased substantially from last
year largely due to active control on
manufacturing, operating and leasing
costs.
The Advanced Coatings Division’s
sales increased 54.1 % compared
to the previous year, and the EBIT
margin moved from 22.4 % to 24.8 %
mainly due to the NECC acquisition.
This acquisition has also cemented the
Advanced Coatings Division’s marketleading
position. The second half of
2011 showed a slowdown in activity in
all segments, including electronics and
photovoltaic applications, especially
in the Americas and Asia. The mainly
European decorative applications market
was not impacted by this economic
downturn. The flexible cost base and
strong cost control ensured that operating
profitability increased by some five
percentage points.

Electrotechnics Division sales were
7.5 % lower than the previous year,
as the sector experienced strong destocking
combined with a slowdown of
most market segments in the second
half of 2011. Thanks to a particularly
effective integration of 2010 acquisitions
combined with strong industrial
improvement programs, EBIT margin
was 18.5 % or 10.1 percentage points
better than 2010. Excluding the impact
of the Puerto Rico plant shutdown,
headcount was reduced by 4 % to introduce
more flexibility in the Division’s
workforce. Thanks to an adjusted level
of inventory in the supply chain and
despite short term visibility provided by
customers, 2012 sales are expected to
be higher than 2011.
The Group has a net cash position of
CHF 126.6 million at 31 December
2011, in addition to which the Group
had a book value of CHF 10.7 million
strategic precious metals. CHF 51.2
million of these metals were sold for
value in 2011 and this resulted in CHF
20.1 million gains during 2011.
For the first time in its recent history,
the Group partially financed an acquisition
(NECC in Japan) via a CHF 41.3
million five-year loan.
Shareholder equity at 31 December
2011 amounted to CHF 372.4 million
or 60.6 % of the total balance sheet
value. The Board of Directors intends
to invest in organic growth and acquisitions
and proposes not to pay any
dividend in 2012.
During 2011 the Group completed the
implementation of a new employee
share participation plan, and over
139 senior and key employees of the
Group were able to invest in a total
of CHF 18.4 million shares in Metalor
Technologies International SA via several
special purpose vehicles. These
vehicles were loaned a total of CHF
11.5 million by the company in order
for them to buy further shares in the
company, and thus created 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. The Company
has implemented a procedure which
ensures that such risks are adequately
managed at divisional and corporate
level under the supervision of
Corporate Management and are
regularly reported to the Board. The
Metalor Group’s Major Risks Map was
updated in 2011 and all identified risks
are being proactively monitored, adequately
and globally managed by the
Divisions and Corporate Services.
19

20
consolIdated balance sheet as oF deceMber 31, 2011
in CHF 1 000 31.12.2011 31.12.2010
ASSETS
Cash and cash equivalents 193 867 106 107
Trade receivables, net 218 618 167 304
Other receivables 14 775 8 561
Inventories 47 158 86 726
Prepaid expenses and accrued income 8 161 15 777
Current assets 482 579 384 475
Financial assets 11 514 11 810
Property, plant and equipment 101 071 107 002
Intangible assets 1 614 858
Deferred tax assets 16 901 10 648
Non-current assets 131 100 130 318
ToTAl ASSETS 613 679 514 793
lIABIlITIES AND SHAREHolDERS’ EQUITY
Trade payables 48 730 69 441
Other payables 24 456 17 448
Accrued expenses and deferred income 33 189 35 867
Current tax liabilities 15 241 16 862
Short-term borrowings 29 525 17 493
Provisions for liabilities and charges 21 064 18 551
Current liabilities 172 204 175 662
Long-term borrowings 37 704 –
Provisions for liabilities and charges 3 054 4 125
Deferred tax liabilities 28 305 24 464
Non-current liabilities 69 064 28 589
ToTAl lIABIlITIES 241 268 204 251
Share capital 800 800
Share premium 37 056 37 056
Retained earnings 334 555 272 686
Shareholders’ equity 372 411 310 542
ToTAl lIABIlITIES AND SHAREHolDER EQUITY 613 679 514 793

consolIdated stateMent oF IncoMe For the year ended deceMber 31, 2011
in CHF 1 000 2011 2010
Net sales (excluding precious metals) 389 963 335 852
Cost of goods sold (excluding precious metals) (179 831) (184 511)
Precious-metals leasing fees (17 210) (13 336)
Gross profit 192 922 138 005
Sales and logistics (37 350) (35 885)
Finance and administration (39 979) (37 964)
Other operating costs (15 824) (12 325)
Operating costs, total (93 153) (86 174)
Other operating income 8 283 8 661
operating result before precious-metals price fluctuations 108 052 60 492
Recovery of (provision) for precious-metals price fluctuations (1 991) (325)
operating result after precious-metals price fluctuations 106 060 60 167
Financial income 5 787 5 804
Financial expenses (8 905) (8 166)
Financial result (3 118) (2 362)
Non-operating income 27 779 26 634
Non-operating expenses (16 469) (8 753)
Non-operating result 11 310 17 881
Income before tax 114 253 75 686
Current income tax (33 987) (24 229)
Deferred tax (2 365) 3 484
NET INComE 77 901 54 941
21

22
consolIdated stateMent oF cash Flows For the year ended deceMber 31, 2011
in CHF 1 000 2011 2010
Income before tax 114 253 75 686
Depreciation, amortization and provisions 20 282 13 387
(Gain) / loss on sales of fixed assets, net (3 824) (6 185)
Interest on shareholders loan (205) (200)
Working capital changes, net (35 917) (21 517)
Gain on sale of excess precious metals inventory (19 190) (19 733)
Restructuring Costs 788 7 342
Income tax paid (35 609) (11 935)
Cash flows from operating activities 40 578 36 845
Purchase of subsidiaries (54 410) (7 264)
Purchase of fixed assets (15 355) (15 171)
Proceeds from the sale of fixed assets 9 658 14 208
Proceeds from the sale of excess precious-metals inventory 59 795 43 968
Shareholders loans 501 (11 180)
Proceeds from the sale of / (acquisition of) intangible assets (73) (131)
Purchase of precious-metals inventory (1 997) (13 693)
Payment of restructuring expenses (1 241) (10 366)
Cash flows from investing activities (3 122) 371
Change in short-term borrowings 12 032 8 580
Increase 29 525 17 493
Decrease (17 493) (8 913)
Change in long-term borrowings 37 704 –
Increase 37 704 –
Sale of capital contribution warrants to shareholders – 1 640
Cash flows from financing activities 49 736 10 220
Effects of exchange rate changes on cash and cash equivalents 568 (7 407)
Change in cash and cash equivalents 87 760 40 029
Cash and cash equivalents, at beginning of year 106 107 66 078
CASH AND CASH EQUIVAlENTS, AT END oF YEAR 193 867 106 107

consolIdated stateMent oF changes In equIty For the year ended dec. 31, 2011
in CHF 1 000
2011
Share
capital
Share
premium
Accumulated
profits
Cumulative
translation
adjustment
Goodwill on
acquisitions
Treasury
shares Total
Total equity as of 1.1 800 37 056 329 279 (45 052) (11 541) – 310 542
Profit for the year – – 77 901 – – – 77 901
Dividend – – – – – – –
Shareholder capital contribution – – – – – – –
Sale of own shares – – – – – – –
Transfers – – – – – – –
Goodwill acquired – – – – (17 326) – (17 326)
Exchange difference – – – 1 294 – – 1 294
ToTAl EQUITY AS oF 31.12 800 37 056 407 180 (43 758) (28 867) – 372 411
2010
Total equity as of 1.1 800 35 416 274 338 (29 773) (11 541) – 269 240
Profit for the year – – 54 941 – – – 54 941
Dividend – – – – – – –
Shareholder 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
23

24
group coMpanIes as oF deceMber 31, 2011
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 (Curaçao) N.V. Curaçao, N.A. USD 6 100%
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. Milan, 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) S.A.
Luquillo, Puerto Rico USD 10 100%
de C.V.
Metalor Technologies Services (Mexico) S.A.
Naucalpan, Mexico MXN 50 100%
de C.V. Naucalpan, Mexico MXN 50 100%
Metalor Technologies (Japan) Corp. Tokyo, Japan Yen 310 000 100%
Miatomo Seicon Engineering Co. Ltc. Brando-City Yen 100 000 100%
Metalor Coating (Korea) Corp. Seoul, Korea KRW 100 000 100%
Metalor Coating (Taiwan) Corp. Kaohsiung TWD 50 000 100%
Metalor Coating (Singapore) PTE Ltd. Singapore, SG SGD 1 500 100%
Metalor Coating (Shanghai) Co. Ltd. Shanghai, China RMB 15 356 100%
* 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
Hubert Angleys
Dr. Yuxing Shang
Jacques Michel
Jacques Schaffnit
Laurence Drummond
Ricky Lau
Kenji Kasuga
Willem Roels
John Reid
audItors
Michael Ackermann
Laurent Bludzien
Chairman
Member
Member
Member
Member
Chief Executive Officer
Chief Financial Officer
Executive Vice President, Refining Division
Executive Vice President, Advanced Coatings Division
Executive Vice President, Electrotechnics Division
Area Vice President Americas
Area Executive Greater China
Area Executive Asia Pacific
Vice President Human Resources
Group Treasurer
Ernst & Young Ltd., Lausanne, Switzerland
Ernst & Young Ltd., Lausanne, Switzerland
25

26
group operatIng coMpanIes
(As of December 31, 2011)
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 25
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 Technologies USA
Division
1640 Thomas Street
Port Huron, MI 48061, USA
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. Producción 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
unIted KIngdoM
metalor Technologies (UK) ltd.
Division
74 Warstone Lane
Birmingham B18 6NG, UK
Phone +44 121 236 3241
Fax +44 121 236 3568

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
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
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
metalor Coatings (Shanghai) Co.ltd.
Division
No. 3 Building, 800 Shenfu Road,
Xinzhuang Industry Park
Minhang District
Shanghai
China 201108
Phone +86 21 5442 7450/3060
Fax +86 21 5442 7451/0790
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
metalor Coatings (Taiwan) Corp.
Division
16 East 7th Street,
Nan-Tze Export Processing Zone
Kaohsiung, Taiwan R.O.C.
Phone +886 7 368 0560
Fax +886 7 365 3174
sIngapore
metalor Technologies (Singapore)
PTE ltd.
Division
67 Tech Park Crescent TUAS
Singapore 638074
Phone +65 6863 1600
Fax +65 6863 0102
metalor Coatings (Singapore) PTE ltd.
Division
52 Tuas Road
Singapore 638502
Phone +65 6863 0166
Fax +65 6863 1816
thaIland
metalor Technologies (Singapore)
PTE ltd.
Bangkok Representative office
Division
Prime State Mini Office
79/4 Moo2, 5th Floor
Srinakarin Road, Nongborn,
Pravej District
Bangkok 10260
Thailand
Phone +66 2 366 0718/9
Fax +66 2 366 0720
Japan
metalor Technologies (Japan) Corp.
Division
9F, Shinagawa East One Tower,
2-16-1, Kohnan, Minato-Ku,
Tokyo 108-0075
Phone +81 3 6863 3385
Fax +81 3 6863 3565
Numazu Plant
Division
678 Ipponmatsu, Numazu-City
Shizuoka-Prefecture 410-0314
Phone +81 55 966 1080
Fax +81 55 967 2544
mitomo Semicon Engineering Co.
ltd.
Tsukuba Plant
Division
25-3, Koshindaira, Brando-City
Ibaraki-Prefecture 306-0608
Phone +81 297 36 8800
Fax +81 297 36 8802
Korea
metalor Coatings (Korea) Corp.
Division
401 Goodmorning Bldg.
1366 Seocho-Dong, Seocho-Ku
Seoul 137-863
Phone +82 2 3453 4264
Fax +82 2 3453 4147
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 registered 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.
Editing: Alphadoc Sàrl, Neuchâtel
Design: > graffiti-communication.ch
Photos: Metalor / > graffiti-communication.ch
Print: IDM, Imprimerie des Montagnes, La Chaux-de-Fonds
Edition: English 1800
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