BODYCOTE STRATEGY

Presentation to the ShareholdersAGM 25 May 2005

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Strategy of Growth

• Our Goal is to consistently deliver to our shareholders an attractive return on capital.

• Carefully focussed development of all Strategic Business Units

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Growing Testing

• New Outsource Projects• Middle East

– 6 permanent laboratories– 9 site laboratories– New Projects e.g. Burj Tower Dubai

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Growing Testing

• Extending Strategic Partnerships– Additional Engine Test Facilities in

Tennessee and Mexico

• CSM Acquisition, Sweden

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Growing Testing

• New Services– Detroit Lab – specialist testing of vehicle

interiors– Bodycote Plastic Piping Group:

technology transfer –e.g. Chlorine test– Entry to Food Testing Market

• Lawlabs

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Growing Testing

• New Markets– Caspian Region – Bodycote brand drives

business to our regional labs– New agents in Libya and Turkey

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Growing Heat Treatment

• Geographically• Poland

– Five plants– Organic and acquisitional expansion

• CEG– Eastern European expansion

• China– SP in Wuxi,

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Growing Heat Treatment

• Penetration of Growth Markets– Aerospace – Development of metal joining

specialities, Vacuum Brazing and Electron Beam Welding

– Low Pressure Carburising of latest technology diesel injector parts

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Growing Heat Treatment

• ‘Swap-out’ of Facilities– Portfolio management– Disposal for market strategy or profit

improvement• Sale of Grand Rapids

– Replacement with better business

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Growing Metallurgical Coatings

• Niche market developments– K-Tech – Thin film ceramic diffusion

coatings – CoatAlloy – metallic diffusion coatings– Sherardizing– Anodising

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Growing Metallurgical Coatings

– Extends our geographical reach– Expands the variety of PVD coatings– Enlarges our technical expertise– 41 Coating Centres in 15 Countries– 700 Employees

Physical Vapour Deposition (PVD)

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Growing HIP

• Densal® II– Volume automotive sector– Now attractive for volume production of

cast aluminium automotive components– Additional capacity for Germany to

support new model and engine programmes

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'95 '96 '97 '98 '99 '00 '01 '02 '03 '04

Global Sales Growth

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© BMW AG

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Bodycote Strategy - Goal

• Our Goal is to consistently deliver to our shareholders an attractive return on capital.