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Umicore FY 2020 performance
11 February 2021
Highlights 2020
2021 outlook
Maintaining strategic course while responding effectively to COVID-19
crisis
2020 business review
2020 financial review
Wrap-up
Q&A
Overview
Umicore FY 2020 performance 2
Highlights 2020
Umicore FY 2020 performance 3
Record performance with a
nearly doubling of adj. EBIT
YoY, reflecting strong growth
across all business units
Exceptional metal price
environment
High activity levels despite
COVID-19 crisis and favorable
trading conditions
Impact of pandemic on several
end-markets
Excluding impact of excess
inventories, Umicore’s EV
cathode materials volumes grew
broadly in line with EV battery
demand
Adj. EBIT reflecting underutilized
capacity and pricing pressure in
China, as well as costs related to
recent and ongoing expansions
Significant impact of pandemic
on automotive market in H1
Umicore disproportionately
exposed to market recovery in
H2 due to strong position in
gasoline for LDV
Strict cost management and
operational excellence
initiatives
3
CATALYSIS
ENERGY & SURFACE
TECHNOLOGIES RECYCLING
Record earnings in unprecedented conditions
2021 outlook
5
2021 outlook
Umicore expects to achieve substantial growth in earnings in 2021,
with growth in all business Groups
Given the current limited visibility, this outlook statement is made under the assumption that the ongoing COVID-19
outbreak would not result in additional material or protracted disruptions to the economy or Umicore’s operations
Umicore FY 2020 performance
CATALYSIS RECYCLINGENERGY & SURFACE
TECHNOLOGIES
Further benefit from leading edge
technology offering in gasoline
applications for LDV in China and
Europe
Initial impact of China VI legislation
for HDD applications
Savings from footprint adjustments
and cost improvements carried out
in 2020
Favorable metal prices
Supportive supply mix and
moderate volume growth in
Precious Metals Refining
If current elevated metal price
levels were to prevail throughout
the year, Adj. EBIT would increase
very significantly vs 2020
Substantial growth in sales volumes of
cathode materials for EVs
Persisting Chinese overcapacity and
pricing pressure
Some € 50m increase in fixed costs in
Rechargeable Battery Materials
Volume growth to result in meaningful
Adj. EBIT growth, in line with current
market consensus1
1 Umicore has engaged Vara Research GmbH to survey brokerage analysts to provide analysts' consensus estimates to the market. The most recent consensus is
available on https://vara-services.com/umicore/
Maintaining the strategic course while
responding effectively to the COVID-19 crisis
Maintaining the strategic course…
7Umicore FY 2020 performance
Strong regulatory drivers underpin Umicore’s growth
strategy
Umicore committed to strategic investments in clean mobility
and recycling
EU ambition : zero-emission mobility
China :
NEV subsidy plan extended (2022)
Higher NEV penetration rate (20% by
2025, 50% by 2035)
Green recovery measures and stimuli for
cleaner mobility
Stricter emission norms for ICE (China VI
regulation for HDD in July 2021)
Increased need for a more circular
economy
Greenfield cathode materials plant in Poland :
Commissioning by end of H1 2021
1st industrial-scale plant in Europe
Fuel cell catalyst production ramp-up in Korea
Catalyst production capacity expansion in China
for LDV and HDV
Multi-year investment program to improve safety
and environmental performance of Hoboken
recycling plant
… while responding effectively to the COVID-19
crisis
8
Health & safety Strong capital
and liquidity
management
Umicore FY 2020 performance
Remain top priority
Strict hygiene and
other precautionary
measures
Dedicated task force
monitoring global
operations
Strict cost
management
Optimization of
working capital
Postponement of
certain investments
Further strengthening
of liquidity
Production
footprint
reassessment
Consolidation of
North American
Automotive Catalysts
production
Streamlining of
Cobalt & Specialty
Materials activities
Impairment of certain
assets
2020 business review
Free Operating Cash Flow
€ 167 m (- € 39 m in 2019)
Net debt at € 1,414 m
Net debt / LTM Adj. EBITDA 1.76x
Key figures FY 2020
1010
Record earnings in unprecedented conditions
€ 3.2 bn
-4% YoY
REVENUES
Adjusted EPS € 1.34
Proposed gross annual dividend of
€ 0.75 per share
Adjusted NET PROFIT
(Group share) € 322 m
ROCE 12.1%
€ 536 m
+5% YoY
Adjusted EBIT
€ 403 mCAPEX€ 804 m
+7% YoY
Adjusted EBITDA
Umicore FY 2020 performance
Note: All references to revenues in this document refer to revenues excluding metals (all revenue elements – value of purchased metals)
-7%-5%
-39%
-93%
-64%
-22%
-10%
-18%
3%
-4%
1% 3%
Ja
n
Feb
Mar
Apr
May
Ju
n
Ju
l
Aug
Sep
Oct
No
v
De
c
COVID-19 outbreak: significant impact on
auto-industry
FY 2020 YoY evolution of passenger car production across all powertrains (source: IHS & Umicore - 31/12/2020)
China Europe North America Global market
Umicore FY 2020 performance
-12%
-21%
-34%
-62%
-51%
-16%
-5%-8%
5% 3%
-2%
1%
Jan
Feb
Mar
Apr
May Jun
Jul
Aug
Sep
Oct
Nov
Dec
-27%
-88%
-47%
-1%
16%21%
20%
6%
12%9%
3%
-2%
Ja
n
Feb
Mar
Apr
May
Ju
n
Ju
l
Aug
Sep
Oct
No
v
De
c-2%
3%
-31%
-99%
-84%
-20%
6%
-6%
3% 3%
-9%
5%
Ja
n
Feb
Mar
Apr
May
Ju
n
Ju
l
Aug
Sep
Oct
No
v
De
c
-18% YoY-5% YoY -22% YoY -20% YoY
H1: shut down of car OEM’s assembly lines and dealerships in key regions as a result of government imposed lock-downs
H2: pick-up in global car demand, albeit with discrepancies between regions in terms of timing, speed and intensity of the recovery
11
Automotive Catalysts
Revenue decline much lower than global car market
contraction
Disproportionate benefit from market recovery in H2
Outperformed LDV market in China and Europe
Higher sales of catalysts for HDD applications
Cost savings (footprint adjustments + operational
excellence initiatives)
Precious Metals ChemistryRevenues down due to COVID-19 impact on
automotive industry
Continued strong demand for fuel cell catalysts
Catalysis FY 2020 performance
12
Revenues -7% and Adj. EBIT -17%; reflecting severe impact from the pandemic in H1
Umicore FY 2020 performance
REVENUES
H1
H2
598 633 709 717571
565 620652 743
794
1,1631,253
1,360 1,460 1,364
0
300
600
900
1,200
1,500
2016
2017
2018
2019
2020
78 81 86 87
21
75 85 82 99
132
152166 168
185
154
0
50
100
150
200
201
6
201
7
201
8
201
9
202
0
Adjusted EBIT
million €
Evolution global EV LDV battery demand (GWh)
Umicore FY 2020 performance
Source: EV Volumes, Umicore
EV battery demand evolution
13
Global market
137
60%
79%
100%
23%
17%
0%
20%
40%
60%
80%
100%
120%
0
20
40
60
80
100
120
140
2015 2016 2017 2018 2019 2020
Global (LDV in Gwh)
Global YoY LDV GWh growth (%)
Global EV battery market up 17% to 137
GWh, driven by Europe
Regional differences in demand patterns:
Little year-on-year growth in China, well
below industry anticipations
More than doubling of demand in
Europe driven by CO2 Directive
Contrasting evolution in China with demand
dropping in H1 and some recovery starting at
year-end
14
Revenues -15%; Adj. EBIT -59%; severe COVID-19 impact and significant negative
operating leverage
Umicore FY 2020 performance
Rechargeable Battery Materials
Lower cathode materials revenues: higher NMC volumes for
EVs; lower LCO and ESS volumes
Pricing pressure, underutilized capacity in China
Higher fixed costs related to expansions
Cobalt & Specialty Materials
Lower revenues reflecting impact of COVID-19
Lower contribution from refining & recycling activities; reduced
demand for cobalt and nickel chemicals
Electroplating recorded slightly higher revenues; revenues
in Electro-Optic Materials decreased
H1
H2
REVENUES
million €
E&ST FY 2020 performance
288 398650 607 557
322
495
639 618488610
894
1,289 1,225
1,045
0
250
500
750
1,000
1,250
1,500
2016
2017
2018
2019
2020
37 61121 102
5445
79
136
81
21
82
141
257
183
75
0
50
100
150
200
250
300
20
16
20
17
20
18
20
19
20
20
Adjusted EBIT
Recycling FY 2020 performance
15Umicore FY 2020 performance
An exceptional metal price environment, in particular for rhodium
Historically high and volatile
precious and PGM price levels in
2020, in particular for rhodium.
Rhodium price surged in H2 20 in a
context of tight supply and high
demand from the car industry as a
result of increasingly stringent
emission norms.
Current prices for precious and
PGM metals already well above the
average received prices in 2020.0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Ja
n
Ap
r
Ju
l
Oct
Ja
n
Ap
r
Ju
l
Oct
Ja
n
Ap
r
Ju
l
Oct
2018 2019 2020
Palladium (EUR/kg)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Ja
n
Ap
r
Ju
l
Oct
Ja
n
Ap
r
Ju
l
Oct
Ja
n
Ap
r
Ju
l
Oct
2018 2019 2020
Rhodium (EUR/kg)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Ja
n
Ap
r
Ju
l
Oct
Ja
n
Ap
r
Ju
l
Oct
Ja
n
Ap
r
Ju
l
Oct
2018 2019 2020
Gold (EUR/kg)
Source: Umicore
*Comparison of average metal rates December 2019 vs December 2020
+148% Dec. 2019/2020*
+12% Dec. 2019/2020*
+33% Dec. 2019/2020*
62 73 79 76
19163 55 56112
171
125 128 135
188
362
0
100
200
300
400
20
16
20
17
20
18
20
19
20
20
H1
H2
Recycling FY 2020 performance
16
Revenues +23%; Adj. EBIT +92%; higher metal prices and to a lesser extent
favorable trading conditions and supply mix
Umicore FY 2020 performance
Precious Metals Recycling
Higher metal prices, particularly for PGMs
Supportive supply environment
Supportive trading conditions
Higher processed volumes (vs. extended maintenance
in ‘19)
Increased Jewelry & Industrial Metals revenues
Substantial increase in earnings contribution from
Precious Metals Management
REVENUES
323 339 327 313440
318 311 300 368
396641 650 626
681
836
0
250
500
750
1,000
2016
2017
2018
2019
2020
Adjusted EBIT
million €
2020 financial review
18
Adj. EBIT & Adj. EBIT margin
Group, excluding discontinued activities, million € Umicore FY 2020 performance
Record Adj. EBIT(DA) and margins driven by
Recycling
Record adj. EBIT (€ 536 m) and record adj. EBIT
margin
Stellar adj. EBIT growth in Recycling more than offset
decreases in Catalysis and E&ST.
Includes € 24 m higher D&A charges year on year from
recent investments and acquisition.
Strong rebound in Catalysis with 2H adj. EBIT, up 34 %
year on year.
Record adj. EBIT margin driven by higher metal margin
in Recycling.
Record adj. EBITDA (€ 804 m) and record adj.
EBITDA margin
Strong operating cash flow with highest adjusted EBITDA
contribution in history.
Adj. EBITDA up 7 % year on year vs + 5 % for adj. EBIT.
Adj EBITDA margins more resilient across business
groups than adj. EBIT.
Adj. EBITDA & Adj. EBITDA margin
155 195 261 240 243
165203
252 269 293320
398
513509
53612.6%
13.2%
15.5% 14.8%16.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0
200
400
600
800
2016
2017
2018
2019
2020
238 288 364 357 376
258299
356 396 429
19.9% 20.0%21.9% 22.1%
24.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
200
400
600
800
1000
1200
2016 2017 2018 2019 2020
496587
720805
753
Pronounced operating leverage effects1H 2020
2H 2020
FY 2020
Umicore FY 2020 performance
Group (YoY delta in %)
1H 2020 2H 2020 FY 2020
Revenues -4% -3% -4%
Adj. EBITDA +5% +8% +7%
Adj. EBIT +1% +9% +5%
Full P&L
20
FY 2019
508.9
(83.2)
(102.5)
323.1
(11.4)
311.7
1.30
(23.9)
287.8
Adjusted EBIT
- Net finance cost
- Adjusted Tax
Adjusted net result
- Minorities
Adjusted net result Group share
Adjusted EPS
Adjustments to net result Group
share
Net result Group share
Umicore FY 2020 performance
FY 2020Million €
Slight increase in Adj. net Group
result and Adj. EPS
Higher interest charges mainly
due to higher financial debt
Stable adjusted tax charge and
stable effective adjusted group
tax rate (24.2%)
Substantial adjustments in
response to COVID-19
536.4
(104.2)
(102.7)
329.4
(7.0)
322.4
1.34
(191.9)
130.5
Substantial adjustments to EBIT
21Umicore FY 2020 performance
Million €
1H 2020
(31)
(31)
(1)
(9)
(72)
14
(1)
(58)
Restructuring-related
Selected asset-impairments
Environmental
Other
Total EBIT adjustments
Adjusted tax result
Adjusted minority result
Net adjustments (Group Share)
Million €
(97)
(14)
(55)
1
(165)
30
3
(134)
(128)
(45)
(56)
(8)
(237)
44
2
(192)
2H 2020 FY 2020 - € 237 m EBIT adjustments :
• 1H : concentrated in Catalysis
• 2H : concentrated in E&ST and
Recycling
• >50% restructuring-related
• Hoboken green zone provision of
€ 50 m
• - € 147 m non-cash charges vs - €
90 m (future) cash out
• Net result impact : - € 192 m
• Full year adjustments to EBIT per business group :
• Catalysis : - € 57 m
• E&ST : - € 112 m
• Recycling : - € 51 m
• Corporate : - € 17 m
(of which Element 6 : - € 14 m)
22Umicore FY 2020 performance*Free cashflow from operations = cashflow generated from operations – capex & capitalized development expenses
Cash flow from operations before changes in
working capital up 13 % at € 707 m
Increase in cash working capital of € 104 m
mostly driven by higher PGM prices
Cash working capital increase mostly in Catalysis
(Recycling to a lesser extent); decrease in E&ST
Cash flow from operations after working capital
up 10 % at € 603 m
Free cash flow from operations up from - € 39
m in 2019 to € 168 m
Highest amount in recent years
Selective capex spending in view of market
context (€ 403 m vs € 553 m in 2019)
Increase in free operating cash flows million €, continued operations only
million €, continued operations only
323
444
213
92
549
603
-113
13
-276
-708
-78 -104
436
431
489
800627
707
-1000
-500
0
500
1000
FY15 FY16 FY17 FY18 FY19 FY20
Cashflow generated from operations after net working capital cash flowNet working capital cash flowsCashflow from operations before net working capital cash flow
323444
21392
549 603
-225 -288-377
-498 -588
-435
98156
-164
-406 -39
168
-800
-600
-400
-200
0
200
400
600
800
FY15 FY16 FY17 FY18 FY19 FY20
Cashflow generated from operations after net working capital cash flowCapex + capitalized development expensesFree cashflow from operations
603
2956 12
-50
0
50
100
150
200
250
300
350
400
450
500
550
600
650
23Umicore FY 2020 performance
Net cash flow bridge
million €
Conversion
right of
convertible
bond
recognized
in equity
Cashflow
from
operations
Capex &
capitalized
development
expenses
Free
Operating
Cashflow
Net interest
paid
Other (FX,
own shares,
lease
liability…)
Decrease in
reported net
financial debt
Free operating cashflow of
€ 168 million resulting in a
€ 29 million decrease in
reported net debt
€ 44 million portion of
convertible bond accounted for
as equity
Dividend cash out of € 60 m
limited to interim dividend
payout in H2 20
Dividends
paid to
Umicore
shareholders
435
168
79
60 44
296
840 861
1443 14140.56
1.40
1.19
1.921.76
-0.6
-0.1
0.4
0.9
1.4
1.9
0100200300400500600700800900
100011001200130014001500
2016
2017
2018
2019
2020
24
Further strengthening and diversification of funding base
0
100
200
300
400
500
2023 2024 2025 2026 2027 2028 2029 2030 2031
Long-Term Fixed Rate Debt Maturity Profilemillion €
Umicore FY 2020 performance
Stable net financial debt of € 1,414 m,
slightly below the level of end 2019
Corresponds to robust credit ratios :
• Net debt / Adjusted EBITDA ratio of
1.76x
• Net gearing ratio of 35%
Further diversification of LT funding
base :
• € 125 m 8-year EIB loan
• € 500 m 5-year convertible bond
Consolidated net
financial debt, end of
period
Gearing
ratio
Net debt
/ Adj. EBITDA
13.8%
31.1%
24.4%
35.2% 35.0%Harmonize million to m
Wrap-up
Wrap-up
26Umicore FY 2020 performance
Success of Horizon 2020
strategy, building on
complementarity of activities
Strongest financial
performance ever despite
unprecedented conditions
Long-term strategic drivers
stronger than ever; further
progress in execution of
growth strategy in 2021
Maintaining strategic course and commitment to growth
investments in clean mobility and recycling while
responding effectively to the COVID-19 crisis
Umicore’s priority remains
to keep its employees
healthy and safe
`
27Umicore FY 2020 performance
Financial calendar
26 March 2021
29 April 2021
3 May 2021
4 May 2021
5 May 2021
30 July 2020
Publication of 2020 annual report
Annual General Meeting of Shareholders
Ex-dividend date
Record date for the dividend
Dividend payment date
Half Year Results 2021
Link to all documents related to Umicore’s 2020 FY results
For a glossary of used financial and technical terms please refer to https://www.umicore.com/en/investors/glossary/