Net sales

Income (loss) from operations

Net loss

Net loss attributable to AGY Holding Corp

Non-GAAP measures:

EBITDA⁽¹⁾

Adjusted EBITDA⁽¹⁾

Adjusted EBITDA attributable to AGY Holding Corp.⁽²⁾

Adjusted EBITDA margin attributable to AGY Holding Corp.⁽³⁾

Management uses EBITDA and Adjusted EBITDA, which are non-GAAP financial measures, to measure operating performance.

Adjusted EBITDA attributable to AGY Holding Corp. excludes the portion of Adjusted EBITDA attributable to the non-controlling interest.

Adjusted EBITDA margin attributable to AGY Holding Corp. is calculated by dividing Adjusted EBITDA attributable to AGY Holding Corp. by net sales.

Consolidated net sales decreased $3.4 million, or 7.2%, from $47.1 million in the first quarter of 2012 to $43.7 million in the first quarter of 2013, which consists of $36.7 million of sales reported by the AGY US business segment (“AGY US”) and $7.0 million of sales reported by the AGY Asia business segment (“AGY Asia”). AGY US net sales in the first quarter of 2013 decreased $3.4 million, or 8.5%, compared to the first quarter of 2012. AGY Asia’s contribution to consolidated net sales in the first quarter of 2013 was essentially level compared to the first quarter of 2012 (after accounting for the elimination of intercompany sales).

The decrease in AGY US net sales was primarily driven by lower sales volumes, offset by continued favorable mix gains resulting from a greater focus on sale of specialty materials and product rationalization efforts. AGY US continued to improve its average selling price during the first quarter of 2013, which represented a 15.4% increase compared to the same period of 2012. The lower sales volume resulted primarily from reduced demand in several of our markets except aerospace, oil and gas applications and the high-end of the specialty electronics end-markets. Market conditions remained weak. We also experienced market share loss on commodity E Glass from competitive pressure in certain industrial applications, reduced domestic demand for architectural roofing application and a decrease in Continuous Filament Mat (“CFM”) with customer concerns regarding the sale of this business line.

Consolidated income from operations was $1.5 million for the first quarter of 2013, compared to a loss of $2.6 million for the same period in 2012. Adjusting for the impact of a $1.3 million decrease in restructuring charges, a $1.0 million decrease in metal depletion expenses from the advanced sale of 2012 metal recoveries in late 2011 for AGY US, a $0.1 million increase in restructuring costs and a $0.3 million increase in metal depletion expenses related to prior years for AGY Asia, AGY US and AGY Asia operating results increased by $1.8 million and $0.4 million, respectively, in the first quarter of 2013 compared to the same period of 2012.

Quarterly adjusted operating results for AGY US increased year-over-year, primarily from improvements in average selling price and a favorable product mix, as noted above, and from lowering manufacturing and selling, general and administrative expenses through operational efficiency improvement projects and cost control initiatives. Additionally, results were positively impacted by a decrease in non-cash costs of goods sold resulting primarily from (i) the 2012 sale of inventory, manufactured in 2011 with larger efficiency losses, (ii) indirect cost absorption related to a larger inventory decrease in 2012 when compared to the first quarter of 2013, and (iii) lower metal operating losses. Partially offsetting this gain were lower sales volumes, as noted above, and higher alloy lease costs.

AGY Asia adjusted operating results for the first quarter of 2013 improved year-over-year, primarily due to lower taxes and freight costs associated with lower export sales during the first quarter of 2013 and lower selling, general and administrative expenses as a result of reduced headcount. Partially offsetting this gain were lower sales volumes, as noted above, and inflation in labor and energy costs at the AGY Asia manufacturing facility in Shanghai, China.

Adjusted EBITDA attributable to the Company (which excludes the portion of Adjusted EBITDA attributable to the 30% non-controlling interest in AGY Asia) was $7.5 million for the first quarter of 2013, compared to $6.5 million in the first quarter of 2012. Primarily as a result of the

aforementioned factors, including improved average selling price and favorable product mix, lower operating costs and the decrease in non-cash cost of goods sold, which were offset only partially by lower sales volumes, AGY US first quarter 2013 Adjusted EBITDA of $6.5 million increased $0.8 million as compared to the first quarter of 2012 and AGY Asia first quarter 2013 Adjusted EBITDA attributable to the Company of $1.0 million increased $0.2 million as compared to the same period in 2012.

As of March 31, 2013, AGY US’s cash balance and total debt, net of cash, were $0.7 million and $214.0 million, respectively. Compared to December 31, 2012, the $0.8 million decrease in net debt was primarily attributable to $1.8 million of operating cash flows (net of $1.3 million of restructuring costs payment) and $1.1 million of capital spending. As of March 31, 2013, AGY US had total liquidity of approximately $14.4 million.

As of March 31, 2013, AGY Asia’s cash balance and total debt, net of cash, were $2.8 million and $38.8 million, respectively, representing a $0.5 million increase in net debt compared to December 31, 2012. As of March 31, 2013, AGY Asia had total liquidity of approximately $2.8 million, consisting only of unrestricted cash as access to undrawn borrowing availability under the AGY Asia financing agreements has terminated. After several amendments to the term loan amortization schedule negotiated in 2012 and in the first quarter of 2013 with the lender, AGY Asia has remaining mandatory repayment obligations of $22.8 million in 2013, of which $16.7 million is due in May 2013, which we will not be able to satisfy and will create a default under the term loan facility and a potential acceleration of the $27.2 million of outstanding debt if the lender does not amend the term loan to revise the amortization. The lender also retains the right to accelerate the loan repayment at any time if no substantial progress is made towards a refinancing, recapitalization or change in control of AGY Asia. In addition, the working capital loan facility under the AGY Asia financing documents matures in May 2013 and AGY Asia has sought a waiver of compliance with the covenant requiring a debt-to-assets ratio of no more than 60%, which was not met at December 31, 2012 and March 31, 2013. The lender has not responded to AGY Asia’s request for a waiver. AGY continues to explore opportunities to sell AGY Asia and is currently negotiating with a potential buyer, who signed a non-binding letter of intent, and the lender under the AGY Asia financing documents regarding the terms of a possible sale transaction. All amounts borrowed under the credit facility for AGY Asia are non-recourse to AGY Holdings Corp. and its domestic subsidiaries.

Assets

Current assets:

Cash

Restricted cash

Trade accounts receivable, less allowances of $2,506 and $2,351 at March 31, 2013 and December 31, 2012, respectively

Inventories, net

Deferred tax assets

Other current assets

Total current assets

Property, plant and equipment, and alloy metals, net

Restricted cash

Intangible assets, net

Other assets

TOTAL

Liabilities, Obligation Under Put/Call for Noncontrolling Interest and Shareholder’s Deficit

Current liabilities:

Accounts payable

Accrued liabilities

Short-term borrowings

Current portion of long-term debt

Total current liabilities

Long-term debt

Pension and other employee benefit plans

Deferred tax liabilities

Total liabilities

Commitments and contingencies

Obligation under put/call for noncontrolling interest

Shareholder’s equity (deficit):

Common stock, $.01 par value per share; 1,000 shares authorized; 100 shares issued and outstanding at March 31, 2013 and December 31, 2012

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive deficit

Total AGY Holding Corp. shareholder’s deficit

Noncontrolling interest

Total shareholder’s deficit

TOTAL

Net sales

Cost of goods sold

Gross profit

Selling, general and administrative expenses

Restructuring charges

Amortization of intangible assets

Other operating expense

Income (loss) from operations

Other non-operating (expense) income:

Interest expense

Other income, net

Loss before income tax expense

Income tax expense

Net loss

Less: Net loss attributable to the noncontrolling interest

Net loss attributable to AGY Holding Corp.

(Unaudited)

Three Months Ended

March 31,

Net loss attributable to AGY Holding Corp.

Pension and other postretirement benefit plans – net of tax of $0

Foreign currency translation adjustments

Comprehensive loss attributable to AGY Holding Corp.

Net loss attributable to noncontrolling interest

Foreign currency translation adjustments

Comprehensive income attributable to noncontrolling interest

Net loss

Pension and other postretirement benefit plans – net of tax of $0

Foreign currency translation adjustments

Comprehensive loss, including portion attributable to noncontrolling interest

Three Months Ended

March 31,

Cash flow from operating activities:

Net loss

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation

Alloy metals depletion, net

Amortization of debt issuance costs

Amortization of intangibles with definite lives

Loss on sale, disposal or exchange of property and equipment and alloy metals

Stock compensation

Changes in assets and liabilities:

Trade accounts receivable

Inventories

Other assets

Accounts payable

Accrued liabilities

Pension and other employee benefit plans

Net cash provided by operating activities

Cash flows from investing activities:

Purchases of property and equipment and alloy metals

Increase in restricted cash

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from Revolving Credit Facility borrowings

Payments on Revolving Credit Facility borrowings

Payment on AGY Asia Credit Facility borrowings

Net cash used in financing activities

Effect of exchange rate changes on cash

Net (decrease) increase in cash

Cash, beginning of period

Cash, end of period

Supplemental disclosures of cash flow information:

Cash paid for interest

Cash paid for income taxes

Supplemental disclosures of non-cash financing/investing activities:

(Decrease) increase in minimum pension liability adjustment

Construction in-progress included in accounts payable

Statement of operations data:

Net loss

Interest expense

Income tax expense (benefit)

Depreciation and amortization

EBITDA

EBITDA

Adjustments to EBITDA:

Alloy depletion charge, net

Non-cash compensation charges

Management fees

Restructuring charges

Adjusted EBITDA

Less: Adjusted EBITDA attributable to the noncontrolling interest

Adjusted EBITDA attributable to AGY Holding Corp.

Adjusted EBITDA allocated to AGY Holding Corp. segment breakdown:

AGY US and Corporate

AGY Asia

Net Sales

Income (loss) from operations

Net loss

Net loss attributable to AGY Holding Corp.

Non-GAAP measures:

EBITDA⁽¹⁾

Adjusted EBITDA⁽¹⁾

Adjusted EBITDA attributable to AGY Holding Corp.⁽²⁾

Adjusted EBITDA margin attributable to AGY Holding Corp.⁽³⁾

Net Sales

Income from operations

Net loss

Net loss attributable to AGY Holding Corp.

Non-GAAP measures:

EBITDA⁽¹⁾

Adjusted EBITDA⁽¹⁾

Adjusted EBITDA attributable to AGY Holding Corp.⁽²⁾

Adjusted EBITDA margin attributable to AGY Holding Corp.⁽³⁾