SUSTAINABILITY REPORT EXECUTIVE SUMMARY 2018

From AMG’s initial formation we recognized the value created by offering technologies that enable our customers to reduce CO2 emissions. In a way, the atmosphere is our biggest stakeholder as atmospheric CO2 levels have exceeded 400 ppm. Global population is rising, as is affluence measured in GDP. The solution can only come from rising carbon efficiency of energy production and from lower energy intensity per unit of GDP. The problem with organizing rising carbon efficiency is that it takes time and big projects have a long CO2 payback period. For example, the production of an electric vehicle first consumes energy and then is charged for years with electricity coming from a carbon-dominated energy mix.

For years, we have experimented with measuring the CO2 reduction impact of a select set of AMG products and technology offerings that enable our customers to reduce CO2 in comparison to alternative products and technology offerings. We developed a proprietary methodology and started to measure that impact year over year. In 2018 we engaged ERM, a reputable

global environmental services firm to review and, where necessary, revise our methodology. That has led to an interim calculation of Avoided CO2 Emissions as shown in the Sustainability Performance Dashboard. According to our methodology, had AMG and its offerings not existed in 2018, over 50 million metric tons of CO2 would have entered the atmosphere. It is obvious that the incentives associated with the carbon reduction results above could be in the form of tradable credits against the various carbon penalties.

Our sustainability report is intended to provide information to our many stakeholders regarding our sustainability initiatives. We are proud of our progress and we are encouraged by the prospect of further developing our sustainability program.

Dr. Heinz C. Schimmelbusch, Chief Executive Officer

MESSAGE FROM THE CEO

“We are proud of our progress and we are encouraged by the prospect of further developing our sustainability program.”

AMG endorses and supports the definition of corporate social responsibility as set by the World Business Council for Sustainable Development, being: “…the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” For AMG and its affiliated companies, this definition translates into three main sustainable development objectives that the Company has formulated in connection with its financial objectives, technological capabilities, and its leading position in the global metallurgical industry. These objectives are:

To provide safe working conditions for our employees and be responsible stewards of the environment;

To meet or exceed regulatory standards by engaging in ethical business practices; and

To be a valued member of the local economy, community, and society by contributing to solutions to address the fundamental environmental and social challenges facing society today that we can control.

SUSTAINABILITY AT AMG

In 2018, AMG conducted a materiality assessment to advance its sustainability program by identifying environmental, social, governance, and product-related impacts, risks, and opportunities that are most critical to AMG’s business and stakeholders. The results of the materiality assessment inform AMG’s reporting, including specific topics and metrics to track and disclose. AMG’s list of material issues was developed primarily through two exercises: desktop research including peer benchmarking and stakeholder interviews. Internal stakeholders vetted the list of sustainability topics developed from the desktop research for relevance and significance, given their understanding of corporate risk formed through the continual company-wide risk assessment process. The list of sustainability topics was narrowed down to a priority list of material sustainability topics for AMG in the categories of environmental, social, governance, and products.

Our material sustainability topics are in the categories of environmental, social, governance, and products.

ENVIRONMENT

AMG is committed to achieving the highest standards of safety and environmental conduct at all of its manufacturing facilities, as well as producing materials that help its customers minimize negative environmental impact. Protecting the environment is directly linked to our focus on sustainable development.

AMG protects the environment in two specific ways. The first involves serving the green economy by acting as a key link in the supply chain of the advanced materials, recycling, and nuclear industries. Each of these sectors plays a vital role in addressing the ongoing challenges of climate change, waste reduction, and pollution reduction. The second involves AMG’s commitment to measuring and minimizing the environmental footprint associated with its own manufacturing operations. Managing our impact on the environment is of the utmost importance at AMG. As a company with low risk tolerance, we manage environmental impacts closely so that they do not develop into environmental risks. With a focus on AMG’s material environmental topics: air emissions, energy, resource efficiency, water, and wastewater. AMG strives for year-over-year reduction. In 2017, our Vice President of Sustainability, Environment, Health and Safety joined the AMG team and brought a renewed approach to our environmental objectives. Currently, AMG collects and audits environmental data from all locations once per year. The details of the Company’s management approach for material Environmental topics can be found under Environment in our 2018 Sustainability Report.

SOCIAL

AMG stakeholders remain central to AMG’s business. Diversity and inclusion, human rights, and safety are the primary focus of AMG’s approach to maintaining a sustainable business for our people. With a focus on our material social topics—health & safety, diversity & inclusion, and community engagement—we invest in our people to develop their skills and provide training in critical areas like technical and professional development, quality, anti-corruption policies, human rights policies and health and safety. AMG respects the rights and freedoms for individual employees to freely make choices about their career as described in Article 23 of the Universal Declaration of Human Rights.

Encompassing these efforts is AMG’s commitment to achieving the highest standards of safety and environmental conduct at all of its manufacturing facilities, and producing materials that help its customers to minimize negative environmental impact. The details of the Company’s management approach for material Social topics can be found under Social in our 2018 Sustainability Report.

GOVERNANCE

At AMG, we understand the importance of maintaining proper business ethics, regulatory compliance and risk management, each of which are one of AMG’s material governance topics. The Company endorses good corporate governance, with a focus on independence, accountability and transparency. AMG aims to be as open and transparent as possible about its structure, financial reporting, internal controls, tax reporting and procedures. Headquartered in the Netherlands, AMG also governs in accordance with best practices outlined in the Dutch Corporate Governance Code. Our robust approach to ethics, compliance, and risk management, across our various business units, serves as a strong foundation for a sustainable business. The details of the Company’s management approach for material Governance topics can be found under Governance in our 2018 Sustainability Report.

PRODUCTS

AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides vacuum furnace systems and services to the transportation, infrastructure, energy and specialty metals and chemicals end markets. AMG continues to meet the growing global demand for innovative new products that are lighter, stronger and resistant to higher temperatures. Through a focus on AMG’s material product topics: customer environmental impacts, product innovation, and product quality & safety, we develop innovative, high quality products to help our customers meet their performance and CO2 reduction goals. The details of the Company’s management approach for material Products topics can be found under Products in our 2018 Sustainability Report.

SUSTAINABILITY PERFORMANCE DASHBOARD 2017–2018

ENVIRONMENTGRI INDICATOR DESCRIPTION UNITS AMG CRITICAL MATERIALS AMG ENGINEERING AMG GROUP

2017 2018 2017 2018 2017 2018

301-2 Percent of Revenue from AMG Products

Using Recycled Materials as Input

% 14 17 0 0 14 17

302-1 Direct Energy Consumption

TJ 727 37 6 0 733 37*

302-2 Indirect Energy Consumption

TJ 2,507 2,485 159 146 2,666 2,631

303-1 Water Consumption

‘000 cubic meters

4,291 7,785 NA 52 4,291 7,837

305-1 CO2 Equivalent Emissions

mt 612,000 356,410 27,000 56,089 639,000* 412,499*

305-7 Particulates Discharged to Air

mt 911 105 0 0 911 105*

305-7 SOx Emissions mt 629 618 0 0 629 618

305-7 NOx Emissions mt 123 183 0 15 123 198

306-1 Metals Discharged mt 0.84 11 0 0 0.84 11*

306-2 Hazardous Waste (Including Recycled)

mt 4,023 1,740 96 36 4,119 1,776*

306-2 Non-Hazardous Waste

(Including Recycled)

mt 39,579 36,570 265 458 39,845 37,028

306-2 Waste Disposed to Landfill

mt 25,994 28,671 377 272 26,371 28,943

306-2 Waste Recycled % 30 25 29 43 30 25

306-3 Spills L 0 0 0 0 0 0

307-1 Environmental Fines

Thousand USD

0 0 0 0 0 0

AMG Metric Number of ISO 14001

Certified Facilities

Total 11 11 3 3 14 14

AMG Metric Number of ISO 50001

Certified Facilities

Total 2 2 2 2 4 4

GOVERNANCEGRI INDICATOR DESCRIPTION UNITS AMG CRITICAL MATERIALS AMG ENGINEERING AMG GROUP

2017 2018 2017 2018 2017 2018

205-2 Hours of Anti-Corruption

Training

Hours 452 2,147 374 270 826 2,417

419-1 Fines for Non-Compliance

with Laws and Regulations

Thousand USD

0 17,166 0 0 0 17,166

AMG Metric Hours Invested in Risk Management

Meetings

Hours 64 64 20 20 84 84

* In 2018, AMG introduced a new tool for data collection resulting in more efficient and accurate results. We developed consistent calculation methodologies in a number of areas to ensure data from across the globe is converted accurately. The updated methodologies resulted in significant changes from some of our 2017 data, specifically the reporting of Water Consumption, CO2 Equivalent Emissions, Particulates Discharged to Air, Metals Discharged, and Hazardous Waste.

PRODUCTSGRI INDICATOR DESCRIPTION UNITS AMG CRITICAL MATERIALS AMG ENGINEERING AMG GROUP

2017 2018 2017 2018 2017 2018

AMG Metric Number of ISO 9001 Certified Facilities

Total 17 17 7 7 24 24

AMG Metric Percent of Revenue from Green Products

(defined by LCA)

% 24 30 42 43 28 32

AMG Metric CO2 Emissions Avoided

mt NA 7,100,000 NA 43,700,000 NA** 50,800,000**

SOCIALGRI INDICATOR DESCRIPTION UNITS AMG CRITICAL MATERIALS AMG ENGINEERING AMG GROUP

2017 2018 2017 2018 2017 2018

102-8 Workforce Total 2,210 2,346 772 862 2,982 3,208

403-2 Total Incident Rates Rate 1.42 1.37 1.04 0.86 1.31 1.23

403-2 Lost Time Incident Rates

Rate 0.85 0.55 0.74 0.14 0.82 0.58

405-1 Gender Diversity % Male 85 84 82 81 84 81

405-1 Gender Diversity % Female 15 16 18 19 16 19

405-1 Age Diversity % Under 30 19 20 12 13 18 18

405-1 Age Diversity % 30 to 50 56 55 45 49 54 54

405-1 Age Diversity % Over 50 25 25 43 38 28 28

AMG Metric Number of OHSAS 18001

Certified Facilities

Total 14 14 3 3 17 17

AMG Metric Sites Where AMG Encourages Local Hiring Practices

% 100 100 100 100 100 100

RELEVANT AMG POLICIES

AMG Code of Business Conduct AMG Policy on Anti-Bribery, Anti-Corruption,

and Conflicts of Interest AMG Policy on Antitrust Compliance

& Competition Guidelines AMG Policy on Compliance with Sanctions

and Export Control Regulations

AMG Policy on Human Rights AMG Supplier Conduct Charter Diversity Policy Modern Slavery Act Statement Insider Dealing Regulations Speak Up & Reporting Policy

**AMG implemented a new LCA methodology to determine CO2 emissions avoided and began tracking in 2018.