SUSTAINABILITY REPORT EXECUTIVE SUMMARY 2019

This scenario-based planning approach seems to be appropriate in the current environment, especially in trying to prepare for alternative longer-term economic outcomes of the COVID-19 crisis.

The world’s greatest intellects are now appropriately focusing their ingenuity on defeating the coronavirus. The search for a vaccine or cure to this pandemic has taken center stage on a global scale. Although we cannot say how or when, the determination of our finest is sure to meet the challenge and provide a solution to this blight. We are aware that our specialty, critical materials, will not likely play a key role in that solution and therefore it is imperative that despite the near-term emergency, that we remain focused on our mission of CO2 reduction. This challenge, though longer in term, is of no less significance than it was prior to the outset of the pandemic. We are convinced that critical materials will play a defining role in addressing the long-term crisis of global warming. The short-term unpredictability we face today is only matched by the certainty that we face in the long-term existential crisis posed by climate change. We will not lose focus on our mission as this is where our contribution to the world will be felt.

The immediate concern of everyone globally is the COVID-19 crisis. Therefore, let me start by stating that presently we have no active cases and only very few employees under self-quarantine. This comes with a big caveat; it might change tomorrow as we are only in control of a tiny fraction of the parameters active here. Our daily EHS reporting system covers 33 sites in 15 countries with over 3,200 employees. We are extremely pleased about this. Within the area of what we can control, the management teams of our nine business units are very much focused on continuing this performance and the AMG Management Board is unwaveringly dedicated to the safety of our people.

As regard to the COVID-19 crisis and the resulting societal and economic impacts, we want to be careful with predictions. We do not know whether the pre-crisis global work “order” will return to a kind of “old normal,” or go on to a “new normal,” and if so, what that would look like. At AMG, we have established a systematic approach to continuously update carefully selected scenarios for monitoring our forward-looking results.

MESSAGE FROM THE CEO

“AMG’s mission is to provide critical materials and related process technologies to advance a less carbon intensive world.”

The AMG Portfolio: We believe that AMG, as a portfolio of nine niche market leaders in critical materials and related technologies, is prepared to survive severe downturns. We lead our niche markets, we are the low-cost producer in our markets, we are the process technology leader, we are the lead innovator, we are end market diversified, and we know our industries deeply.

When we formed AMG, we had acquired a portfolio of critical materials producers and related technology assets which would serve the biggest societal trends of our times, namely energy transition and the urgent need to save energy. We integrated these assets into AMG. Our assets include unique access to resources, sometimes in remote locations; proprietary process technologies; and long standing and solid customer relationships. In their niche markets, the acquired companies—without exception—are global market leaders. It turned out that our customers, the global industrial names, have been targeting the same trends we were targeting.

CO2: Energy transition and energy saving have a special place in our portfolio. The functionality of this is captured by a powerful equation: CO2 emissions are a function of population growth, growth of affluence, changes in the carbon intensity of energy production, and energy efficiency. From day one we defined our role in this equation. AMG is to provide critical materials and related process technologies to advance a less carbon intensive world.

More than 5 years ago we started to develop a methodology to measure the CO2 reducing impact our products and services have on the CO2 emissions of our customers. The primary motive was to provide an empirical basis for our claim to be assisting clean energy production and energy saving. Over time we refined these methodologies also with the help of third parties, such as ERM. For 2019, we were pleased to announce that the net impact of AMG on global CO2 emissions is a savings of 67 million tons. That is an amazing result of which we are extremely proud.

The COVID-19 Crisis and Strategy Adjustments: As regard to financial stability, the resilience of the AMG portfolio can be illustrated by the fact that all of our nine business units were EBITDA positive in 2019, albeit at a low level given the historically depressive price levels. We have repeated that in Q1 2020 and are planning to do it again for full year 2020, subject, of course, to what I said earlier about predictability. Second, we have a strong balance sheet with sound liquidity and our number one priority is to keep it that way.

AMG’s long-term strategy of value creation was amended in 2019 by three transformational projects. First, we increased our presence in the circular economy by approving the project to double our refinery waste recycling capacity, and therefore double our secondary production of vanadium, molybdenum, and nickel in Ohio. This expansion was facilitated by the issuance of bonds in the U.S. tax-exempt market, generating a total of $325 million in proceeds through the Ohio Air Quality Development Authority. Second, we decided to build a lithium hydroxide plant in Germany. And third, we formed AMG Technologies by combining AMG Engineering and AMG Titanium Alloys & Coatings.

Vanadium and Circular Economy: Two parameters have driven the growth prospects of AMG’s vanadium secondary recovery projects; one is the IMO2020 legislation prohibiting high sulfur fuels for maritime use; the second being the strategic decision of crude oil-producing countries to move downstream and build refineries instead of exporting crude oil. These two trends have led to a significant increase in the demand for “fresh” catalysts and that implies an increase in “spent” catalysts generation. That is the basic space of activity for the newly formed Shell AMG Recycling B.V., offering state-of-the-art recycling options for vanadium containing refinery waste worldwide. Our studies have quantified the substantial advantages of extracting vanadium from refinery waste, compared to primary mining, both in terms of CO2 footprint and cash costs.

Energy Storage and Renewable Energy: Renewable energy expansion requires a proportionate expansion of electricity storage capacity. That is because renewable energy production is highly volatile. Wind blows, or it does not. The sun shines, or it does not. Traditionally, large scale stationary electricity storage has been provided by hydro pump stations, pumping water up during the night using surplus electricity from continuous fossil fuel power plants and releasing electricity during the day. In the renewable energy world, that does not work, especially given the growth in electric vehicles (EV). The sun does not shine at night. The wind might not blow. EV drivers come home and charge their cars overnight. This completely upends the supply-demand balance that made hydro storage facilities feasible. Going forward, vanadium batteries are the most competitive solution for battery-based electricity storage systems. This is a transformational market opportunity for AMG and the Shell AMG joint venture since we are expanding the vanadium supply. We will produce less ferrovanadium and more vanadium oxide for use in batteries.

Lithium Hydroxide Refinery: The LiOH refinery in Zeitz, Sachsen-Anhalt, Germany, is being designed and will be operated using cutting edge technology in order to be energy and cost efficient while minimizing its CO2 footprint. The refinery will produce battery-grade hydroxide, targeting the emerging European lithium ion battery industry. The location of the refinery in the heart of Europe will also help the environmental impact of long-haul transportation. Mid- to long-term,

our lithium value chain concept from mining to battery pack assembling will eliminate shipping of highly dilutive lithium equivalents such as spodumene ore over long distances. To have such a plant nearby also increases the supply security of our customers and provides for a more intensive communication between supplier and customer.

AMG Technologies: The formation of AMG Technologies, combining AMG Engineering (“ALD”) and AMG Titanium Alloys & Coatings (“TAC”) in 2019 under a joint management structure, has been in the making for quite some time. The breakthrough innovation of titanium aluminides was the result of many years of collaboration between the units. ALD vacuum furnaces are the core of AMG TAC’s plant after all. The specific strategic targets of the new company include the acceleration of furnace technology development by combining engineering and operating expertise; the offering of furnace solutions for metal conversion in the form of Build-Own-Operate models as practiced in heat-treatment for some time; and the expanding of the scope of our engineering services beyond vacuum furnace technology such as the building of recycling facilities based on proprietary technologies of AMG TAC.

Summary: AMG’s mission is to provide critical materials and related process technologies to advance a less carbon intensive world.

AMG is dedicated to long-term value creation. We are operating a portfolio of market leaders. Our balance sheet is strong. The significant Ohio investment, doubling our vanadium recycling capacity, is financed by a special bond facility with a very long maturity and a low fixed interest rate. Our growth projects in recycling and lithium chemicals are proceeding as planned. AMG Technologies is operating with a high backlog and we see the current challenges facing the aerospace industry receding later in 2021/2022. In the COVID-19 times, our short-term priorities are cash and liquidity preservation, but we have not lost focus on our long-term mission which is evidenced by the transformational strategic projects detailed above.

Dr. Heinz C. SchimmelbuschChief Executive Officer

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 informed the content of this report, 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 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.

ENVIRONMENTAMG 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 and waste and pollution reduction. The second initiative 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 significant 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 2019 Sustainability Report.

SOCIALAMG stakeholders and the communities where we operate remain central to our business. Within our company, our human rights principles are sustained through the provision of safe and healthy working conditions in a non-discriminatory environment. We continuously support these principles by living our values in our interactions with local and national governments, and the communities in which we operate. Where possible, we endeavor to extend our values and principles to our suppliers and contractors. 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 2019 Sustainability Report.

GOVERNANCEAt 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 2019 Sustainability Report.

PRODUCTSAMG 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 2019 Sustainability Report.

SUSTAINABILITY PERFORMANCE DASHBOARD 2018–2019

ENVIRONMENTGRI INDICATOR DESCRIPTION UNITS AMG CRITICAL MATERIALS AMG TECHNOLOGIES AMG GROUP

2018 2019 2018 2019 2018 2019

301-2

Percent of Revenue from AMG Products

Using Recycled Materials as Input

% 25 22 0 0 17 14

302-1 Direct Energy Consumption TJ 37 32 0 0 37 32

302-2 Indirect Energy Consumption TJ 2,420 2,421 211 196 2,631 2,617

303-1 Water ConsumptionThousand

Cubic Meters

8,020 11,384 111 117 8,131* 11,501

305-1 CO2 Equivalent Emissions mt 480,018 507,602 33,768 32,560 513,786* 540,162

305-7 Particulates Discharged to Air mt 105 105 0 0 105 105

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

305-7 NOx Emissions mt 183 198 15 10 198 208

306-1 Metals Discharged mt 2 1 9 29 11 30

306-2 Hazardous Waste (Including Recycled) mt 3,203 2,763 2,423 1,524 5,626* 4,287

306-2 Non-Hazardous Waste (Including Recycled) mt 38,059 31,023 5,579 9,192 43,638* 40,215

306-2 Waste Disposed to Landfill mt 24,871 18,117 58 533 24,929* 18,650

306-2 Percent of Waste Recycled % 40 46 99 95 49* 58

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 8 8 3 4 11 12

AMG Metric Number of ISO 50001 Certified Facilities Total 2 2 3 4 5 6

GOVERNANCEGRI INDICATOR DESCRIPTION UNITS AMG CRITICAL MATERIALS AMG TECHNOLOGIES AMG GROUP

2018 2019 2018 2019 2018 2019

205-2Hours of

Anti-Corruption Training

Hours 2,133 1,477 284 411 2,417 1,888

412-2 Hours of Human Rights Training Hours 461 752 138 172 599 924

419-1Fines for

Non-Compliance with Laws and Regulations

Thousand USD 17 4 0 0 17 4

AMG Metric Hours Invested in Risk Management Meetings Hours 64 120 20 32 84 152

* AMG has improved its 2019 reporting methodology. Therefore, some of the 2018 results were updated retroactively to provide data that is comparable year-over-year.

PRODUCTSGRI INDICATOR DESCRIPTION UNITS AMG CRITICAL MATERIALS AMG TECHNOLOGIES AMG GROUP

2018 2019 2018 2019 2018 2019

AMG Metric Number of ISO 9001 Certified Facilities Total 16 16 7 8 23 24

AMG MetricPercent of Revenue

from Green Products (defined by LCA)

% 35 30 28 27 32 29

AMG Metric CO2 Emissions Avoided mt 7,100,000 12,676,433 43,700,000 55,095,684 50,800,000 67,772,117

SOCIALGRI INDICATOR DESCRIPTION UNITS AMG CRITICAL MATERIALS AMG TECHNOLOGIES AMG GROUP

2018 2019 2018 2019 2018 2019

102-8 Workforce Total 1,873 1,851 1,335 1,394 3,208 3,245

403-2 Total Incident Rates Rate 1.35 1.82 1.15 0.92 1.23 1.46

403-2 Lost Time Incident Rates Rate 0.62 0.86 0.67 0.73 0.58 0.80

405-1 Gender Diversity % Male 86 77 80 82 81 79

405-1 Gender Diversity % Female 14 23 20 18 19 21

405-1 Age Diversity % Under 30 21 21 14 15 18 18

405-1 Age Diversity % 30 to 50 55 55 51 50 54 53

405-1 Age Diversity % Over 50 24 24 35 35 28 29

AMG Metric Number of OHSAS 18001 Certified Facilities Total 14 9 3 2 17 11

AMG Metric Number of ISO 45001 Certified Facilities Total 0 8 0 4 0 12

AMG MetricSites Where AMG Encourages Local Hiring Practices

% 100 100 100 100 100 100

AMG Metric Volunteer Hours Hours N/A 1,516 N/A 0 N/A 1,516

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