1. Ormet Corporation
Mike Tanchuk
CEO & President
Houlihan Lokey’s 4th Annual
Global Industrials Conference
February 24, 2009

2. Any statements made during this presentation that are
not historical facts are “forward-looking” statements. These
forward-looking statements may include comments on our
plans, strategies or beliefs concerning our business and the
markets in which we operate. Without limiting the foregoing, the
words “believes”, “anticipates”, “expects” and other similar
expressions are intended to identify certain forward-looking
statements. These statements are based on information
currently available to us and we assume no obligation to update
these statements as circumstances change. There are risks and
uncertainties that could cause actual events to differ materially
from these forward-looking statements.
2

3. Introduction - My Background

4. Ormet Facilities
• Primary Reduction Plant – Hannibal, OH
- 265,000 tons/yr capacity
- Power needs 540 MW

5. Ormet Facilities
• Alumina Plant – Burnside, LA
- 540,000 tons/yr capacity
- Idled December 2006

6. Ormet’s Raw Material Sourcing
Has Become Global

7. Ormet History
1956
Ormet Corporation organized by Olin
Corporation and Revere Copper and Brass,
Inc.
1958
Ormet’s Hannibal Reduction Plant begins
making aluminum.
Ormet opens the Burnside Bulk Marine
Terminal and Burnside Alumina Plant.
1974
Consolidated Aluminum Corporation
acquires Olin’s interest in Ormet and
assumes 66 % ownership, with Revere
owning 34%.
1986
Oralco purchases what is now Ormet
Primary Aluminum Corporation.

8. Ormet History
2004
Ormet files for chapter 11 bankruptcy.
Union at the reduction plant go on strike
2005
Emergence from Chapter 11
2006
Labor contract ratified
New power contract
Start-up of Hannibal smelter begins
Shutdown of Burnside refinery
$50 million rights offering
2007
Completion of smelter start-up
$175 million credit facilities established
$30 million equity raised
$35 million convertible note
New Management Team put in place
Shutdown of casting operations

9. Volatile
Commodity Market “Price Majeure”
Legacy Costs from
~$50 million/yr Chinese Suppliers
CHALLENGES
INTO
Liquidity Needs PBGC Waiver
2008
Risk Adverse
Operating Costs
Banking Environment

10. 2008 Focus
Reach full operating capacity with improved
safety results
Stabilize revenue
Get value from working capital
Stabilize raw material prices
Minimize counterparty risks
Sell unneeded assets
Put additional financing in place as needed
Set stage for long term power contract

11. 2008
Achieve Operating Stability
• Safest year in company
history
• Full capacity achieved
• Positive union relations
continued
• Operating efficiency at
record levels
$ Over $12 million in
reduced operating costs

12. Stabilize Revenue
• Aluminum priced on London Metal
Exchange
• Commodity forward pricing
• Hedging plan developed based on revenue
certainty
• Pricing layered in for 2008 and 2009
• Combined physical and financial contracts

13. Gain Value from Working Capital
• Key raw material limited value from
bank
• Developed tolling approach
• Sold key raw material and product
inventory to tolling party
• Integrated hedges into toll
$ Increase liquidity by a net of $25 million

14. Gain Value from Working Capital
(cont.)
• 2006 power contract tied up $35
million in working capital
• Developed positive relationship with
AEP
• Secondary business contracts evolved
for barge transportation
• Reduced amount of electric deposit
required freeing up $15 million

15. Stabilize Raw Material Prices
• Explored international raw material
suppliers and brokers expanding Ormet’s
supplier base
• Developed relationships directly with
foreign suppliers
• Put in place Chinese monitoring system
$ Negotiated better terms as markets
slowed - $9 million improvement
$ Significant reduction in pricing - $50
million annualized from peak 2008

16. Sell Unneeded Assets
• Burnside facility has
~2000 acres of real
estate suited for
industrial development
• Developed relationship
with potential users
$ Sold 300 acres for $9
million in late 2008
• Continued marketing of
non refinery assets
including marine
terminal with offers
pending

17. Minimize Counterparty Risks
• Increasingly volatile commercial
environment
• Balance customer/supplier
diversity with certainty
• Single party exposure $760 million
• Decided to lock in revenue,
payment terms, inventory with very
large and stable international
trading company

18. Additional Financing
• Requested financing only after
executing “self help” program
• Strong support from key shareholders
$ Negotiated $10 million loan with
warrants before market crisis

19. Long Term Power Contract
• Worked cooperatively
with Ohio Government
on new legislation
• Developed approach to
allow for recognition of
electric load size,
economic impact on the
local community and
need to retain jobs
• Governor signed
legislation May 2008
• Began development of
detailed contract in late
2008

20. 2009 Focus
Prepare for low commodity pricing in 2010 but be
ready for better times
Deleverage and prepare for refinancing in 2010
Further improve operating efficiency
Get more value from working capital
Sell non-core assets
Finalize long term power agreement with LME
component
Increase equity market awareness of Ormet
Negotiate longer term commercial agreements
Negotiate new labor agreement for the Hannibal
facility