Umicore on the way · We aim to minimize our environmental impact and be the best employer and neighbour. material solutions. ... Global positioning at end 2011 . 4 Umicore’s business

Umicore on the way

Umicore on the way

2

Umicore’s business approach

We transform metals into hi-tech materials

We use application know-how to create tailor-made solutions in close collaboration with our customers

We close the loop and secure supply by recycling production scrap and end-of-life materials

We aim to minimize our environmental impact and be the best employer and neighbour

material

solutionsMetals

Applicationknow-how

Recycling

Material

solutions

Chemistry

Material science

Metallurgy

3

Umicore in figures

Key financials 2011 H1 2012

Turnover €

14,481 M €

6,854 M

Revenues €

2,290 M €

1,241 M

Recurring EBITDA €

553 M €

266 M

Recurring EBIT €

416 M €

192 M

ROCE 18.6% 14.5%

R&D €

157 M € 87 M

Capex €

213 M € 95 M

Gearing ratio 13.4% 12.5%

Market cap. * €

~3,500 M €

~4,000 M

Recurring EPS €

2.69 €

1.31

Dividend €

1.00 €

0.50

* End of period, excluding treasury shares

Market cap. at end October 2012 at €

~4,500 M

14,572

people

7,635347

3,251244

1,6253

1,19551

866113

77

industrial sites15

R&D centres

Global positioning at end 2011

4

Umicore’s business groups

based on competences and markets

PM

Precious Metals

Recycling Energy Materials Catalysis Performance Materials

Unique recycling Unique recycling process dealing with process dealing with complex industrial complex industrial residues and endresidues and end--ofof--

life materialslife materials

Materials which Materials which enable the clean enable the clean production and production and storage of lowstorage of low--

carbon energycarbon energy

Technology solutions Technology solutions to treat automotive to treat automotive emissions and emissions and enhance other enhance other chemical processeschemical processes

Essential materials Essential materials and chemicals based and chemicals based on on PMsPMs

and Zn used and Zn used in in pharmapharma, , construcconstruc--

tiontion, electrical equip, electrical equip--

mentment, , ……

Business drivers

•

Materials scarcity

•

Recycling legislation

•

Energy efficiency

Business drivers

•

New (H)EV vehicles

•

Photovoltaic demand

•

Demand for safer products

Business drivers

•

Global emission legislation

•

Emerging markets

•

New applications (HDD)

Business drivers

•

Industrial production

•

Geographical expansion

•

Eco-friendly products

5

Strong growth potential

Recycling Energy Materials Catalysis Performance Materials

Double digit revenue growth

Based on key growth drivers aligned with market trends

Revenue growth at GDP rate

•

High R&D

•

High investments

•

Many new applications/markets

•

Lower R&D

•

High investments

•

Some new applica-

tions/markets

•

Growth will not be linear and not equal over all activities

•

Innovation as a differentiator for success in all areas

•

Growth in the context of broader sustainability targets

•

Growth will not be pursued at the expense of value creation

Goal to generate an average ROCE of 15-20%

6

Great place to work

Eco-

efficiency

Stakeholder engagement

Economic performance

Sustainability objectives for 2011-2015

Zero lost time accidents

Occupational exposure reduction

People development

Preferred employer

We aim to have ZERO lost time accidents

We will reduce the body concentrations of specific metals to which our employees have an exposure: Cd, Pb, Co, Ni, As, Pt

All employees will receive an annual appraisal to discuss individual development

We will target our actions based on the results of the 2010 People Survey

Growth and returns

Reduce carbon footprint

Emission reduction

Product sustainability

We aim to reduce our CO2

emissions by 20% vs

2006 levels and based on 2006 industrial scope

We aim to reduce by 20% the impact of metal emissions to water and air vs

2009 levels

We will invest in tools to better understand and measure the life cycles and impacts of our products

Sustainable procurement

Local community

We will implement the new Sustainable Procurement Charter throughout our business

All our sites will be expected to make further steps in identifying key stakeholders and engaging with the local community

We aim to achieve double digit revenue growth and our goal is to

generate an average return on capital employed of more than 15%

7

Business group split for H1 2012

Revenues

CA37%

EM15%

PM21%

RE27%

(excluding metal)

Corporate not included

EBIT

CA23%

EM7%

PM14%

RE56%

(recurring)


Capital employed

CA37%

EM22%

PM27%

RE14%

(average)


CA

CatalysisEM

Energy MaterialsPM

Performance MaterialsRE

Recycling

Excluding Corporate

8

2012 up to now

Revenue growth slowing (+8% in H1, +2% in Q3) in deteriorating economic environment

•

Performance Materials

businesses most affected

•

Most markets in Energy Materials

weakened further, except for Rechargeable Battery Materials

•

Further decrease of European automotive production impacting Catalysis

•

Supply environment remains very supportive in Recycling

Good performance maintained, although recurring EBIT down in H1 (-11%), reflecting

•

Price and mix effects

•

Higher R&D and depreciation

Positive cashflow generation so far allowed for further net debt

reduction

9

2012 going forward

2012 recurring EBIT still expected in range of €

370 -

390 million

Steps taken to adjust costs and production to demand levels

•

Steps taken in those business units faced with structural demand

changes

•

Philosophy continues to approach cost adjustments in a measured and selective way,

not jeopardizing our growth prospects

Long term strategy and investments unaffected

•

Current economic picture does not change main growth drivers

•

Strong balance sheet allows for financing

10

2012 main on-going investments

Catalysis

2010-2012

Capacity expansion and tech centre to address growing market in China

2010-2012

HDD production capacity for upcoming EURO 6 legislation in Europe

2012-2013

LDV Capacity and capability expansion for upcoming EURO 6 legislation in Europe

2012-2013

New JV setup and tech centre to better address Japanese OEMs

2012-2014

Strengthening of position in South America with new tech centre

2012-2014

Develop offering for Precious Metals Chemistry in North America

Energy materials

2012

Expansion of cathode material product portfolio to LFP with new JV and pilot line

2010-2013

Multiple capacity expansions for Rechargeable Battery Materials in Korea, China and Japan to keep pace with demand

2012-2014

Upgrade of Co powders production in Belgium

11

2012 main on-going investments

Performance Materials

2012-2014

New surface treatment plant for Zn building products in France

2012-2015

Investments for Zn powders and oxides production in Asia (India and China)

Recycling

2012-2013

Investments in Hoboken recycling plant to prepare for future debottlenecking and further enhance environmental performance

2012-2014

Expansion of Ag recycling & refining in Europe and in Asia

12

Umicore in the driver’s eat

Umicore in the driver’s eat

14

CO2

reduction targets for passenger vehicles

exist in most regions

95

Europe

-38%154 152

USA

-37%

240

109

Japan

-23%141145

China

-22%185

Source: Continental (2011)

CO2

emission targets for passenger vehicles[g/km]

130

181

125

167

2010

2015

2020

2010

2015

2020

2010

2015

2020

2010

2015

2020

Actual legislation

Proposed legislation

Enacted legislation

Estimated legislation

15

Challenging CO2

emission targets

pushes advanced engine configurations

•

Down-sized turbo-charged gasoline

•

Gasoline direct injection

•

Lean burning gasoline engines

•

Diesel

•

(Flex fuel)

•

Start-stop mechanism

•

HEV: Mild HEV Full HEV

•

PHEV: Parallel Range extender

•

EV: BEV FCEV

Advanced ICE configurations

Electrification

of the vehicle

Requires more complex

emission control catalyst solutions

Requires larger battery and

still automotive catalyst (except EV)

ICE

Internal Combustion Engine-powered vehicleHEV

Hybrid Electric VehiclePHEV

Plug-in Hybrid Electric VehicleEV

Electric VehicleBEV

Battery-powered Electric VehicleFCEV

Fuel Cell-powered Electric Vehicle

16

Different engine configurations

will be needed to reach the 2050 goals

100

50

150

00 400 600200 800 1000 1200 1400

CO2

emission

[g/km]

Range

[km]

ICE

diesel

ICE

gasoline

HEV/

PHEV

FCEV

BEV

2010

2050

2010

2050

2010

2050

2010

2050

2010

2050

EU 2015

target

EU 2020

target

ICE

Internal Combustion Engine-powered vehicleBEV

Battery-powered Electric VehicleHEV

Hybrid Electric VehiclePHEV

Plug-in Hybrid Electric VehicleFCEV

Fuel Cell-powered Electric Vehicle

Source:

A portfolio of power-trains for Europe: A fact-based analysis (EU coalition study 2010)

17

Different scenarios indicate growth of electrification

But ICE remains dominant in coming years

Scenario 1

60

70

80

90

100

110

2011

2012

2013

2014

2015

2016

2017

2018

2019

[M vehicles]

Scenario 3

60

70

80

90

100

110

2011

2012

2013

2014

2015

2016

2017

2018

2019

[M vehicles]

0 0

CO2

limits will be reached

through ICE improvement and electrification

(OEM push only)

On top of meeting CO2

limits,

there is also a positive TCO for consumers

(OEM push + customer pull)

Scenario 1 Scenario 3

BEV Battery-powered Electric VehiclePHEV Plug-in Hybrid Electric VehicleHEV Hybrid Electric VehicleICE Internal Combustion Engine-powered vehicle

Source:

Umicore estimate based on external databases (May 2012)

18

What’s in ICEs

for Umicore?

(Internal Combustion Engine-powered vehicles)

Recycling

Treating waste while recovering valuable metals

•Pt, Pd and Rh

from automotive catalysts

Automotive Catalyst

Increasing complexity with

•More stringent legislation

•Advanced ICE configurations

19

What’s in (P)HEVs

for Umicore?

((Plug-in) Hybrid Electric Vehicles)

Increasing size with electrification level

Complexity increases with size

Recycling


•Pt, Pd and Rh

from automotive catalysts

•Ni, Co, Cu (and REEs) from rechargeable batteries

Automotive Catalyst




•On/off mode of engine

Decreasing size with electrification level

Rechargeable battery

cathode material

20

What’s in BEVs

for Umicore?

(Battery-powered Electric Vehicles)


cathode material

Larger size depending on requested driving range

Complexity increases with size

Recycling



21

What’s in FCEVs

for Umicore?

(Fuel Cell-powered Electric Vehicles)

Large battery still needed in FCEV

Recycling


•Pt from fuel cells


Fuel Cell membrane

electrode assembly




Decreasing size with electrification level


cathode material

22

Umicore’s product offer covers all powertrain possibilities

ICE HEV PHEV EV

Normal Start-stop Mild FullParallel

systemRange

extenderBEV FCEV

Emission control catalyst

Relative

size+

++

+

++

+

++ ++ ++ +

No emission

control catalystRelative

complexity+ + + ++ +

++ +

Battery

Relative

sizeSmall SLI battery

(typically Pb-acid)

+ + ++ ++ +

++ ++

Relative

complexity+ ++ +

++ ++ ++ ++

Fuel cell No fuel cell+

++

23

24

Umicore’s regional position

Market leader (#1 or #2 position)

Smaller player (distant #3)

Circles indicative of 2011 light duty vehicle production volumes

(≠

catalyst revenues)

Automotive Catalysts

Umicore’s global leadership position in light duty applications

NorthNorth

AmericaAmerica

EuropeEurope

ChinaChina

KoreaKorea

SouthSouth

AmericaAmerica

JapanJapan

IndiaIndia

RussiaRussia

AustraliaAustralia

25

Automotive Catalysts

Umicore’s global footprint, producing and developing regionally

Burlington

Canada

Tulsa

USAHimeji

Japan

Onsan

Korea

Ansan

Korea

Suzhou

China

Rheinfelden

GermanyKarlskoga

SwedenHanau

GermanyFlorange

France

Americana

Brazil

Auburn Hills

USA

Port Elisabeth

South Africa

Production plant

R&D centre

26

Portable

electronics

NMC

AutomotiveNMC

Rechargeable Battery Materials

Umicore offering cathode technology and production synergies

Energy Storage

Systems (ESS)

LMO

LCO

NMC

LFP

LFP

NiMH

Other types (NaS, …)

2000 2005 2010 2015

Umicore material & application Not Umicore material

27

Rechargeable Battery Materials

Umicore’s global footprint, focused on Asia

Engis

BelgiumKobe

Japan

Cheonan

Korea

Hanau

GermanyJiangmen

China

Olen

Belgium

Production plant

R&D centre

28

Fuel Cells

Umicore’s global footprint, in early development

Hanau

Germany

Production plant

R&D centre

29

Recycling

Umicore’s global footprint (for automotive parts)

Hoboken

BelgiumMaxton

USA

Hanau

Germany

Bangkok

Thailand

Olen

Belgium

Collection centres:

Guarulhos

Brazil

Recycling plant

R&D centre

30

Annexes

32

Revenues, recurring EBITDA/EBIT

Revenues

510

529

883

861

844 96

5

860 98

7 1,14

7

1,24

1

526

829

810

864

841

945

985

863

1,01

3

1,17

2

1,11

5

1,03

6

1,35

8

1,69

3

1,72

5

1,68

5 1,91

0 2,10

0

1,72

3

2,00

0

2,31

8

1,24

1

0

500

1,000

1,500

2,000

2,500

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

(in million €)

Recurring EBIT

48 48

155

122

170 19

9 215

50

186 21

5

192

49

98

126

111

159 16

0

140

97

156

202

98

146

280

233

329 35

9

355

146

343

416

0

100

200

300

400

500

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

(in million €)

H1 H2

Restated in 2004, 2006 and 2008 for discontinued operations in following year

Revenues restated in 2011 for reviewed application of revenue definition

33

R&D

62

73 69 68 68

73

87

53

51

96

67 71

84

31

48

103 11

1

115 12

5

165

136

139

157

0

50

100

150

200

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

(in million €)

Capex

78

64

51 54 50

69

91

103

76

98 95

74

78 94 91

58

84

125

88

96

115

151

142

146

145

108

153

216

190

172

213

0

50

100

150

200

250

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

(in million €)

Continued investment in growth projects

H1 H2


R&D restated for scope adjustment in 2010

34

EPS remains at a high level

Interim dividend of €

0.50 / share

Recurring EPS0.

84

0.62

0.95

0.96

1.17 1.24 1.

39

1.31

0.31

0.48

0.57

0.59

0.78 0.83 0.

74

0.55

1.09

1.30

0.18

0.28 0.33

0.60

0.80

1.80 1.

93

0.73

2.33

2.69

1.73

1.21

1.41

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

(in € / share)

Dividend

0.28 0.

32

0.33 0.

37 0.42

0.65

0.65

0.65

0.80

1.00

0.33

0.40

0.50

0.00

0.25

0.50

0.75

1.00

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

(in € / share)

Dividend interim dividendH1 H2


35

Strong capital structure maintained

Debt ratios

20.0

%

12.5

%

33.7

%

31.3

%

11.4

%

10.4

%

15.8

%

35.0

%

45.1

%

13.4

%

18.6

%

1.9

1.3

1.3

1.7

0.8

0.6

0.50.5

1.2

2.0

1.0

0%

10%

20%

30%

40%

50%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

H1

2012

0.0

1.0

2.0

3.0

4.0

5.0

Gearing ratio (debt / debt+equity)Average net debt / recurring EBITDA

Net financial debt

767

725

616

813

178

333

177

360

267

255

340

204

643

585

515

0

200

400

600

800

1,000

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

H1

2012

(in million €)

Securitisation Net financial debt

Gross financial debt

Fixed rate loan20135%

Otherloans7%

Other bank facilities

27%

Commercial paper38%

Syndicated loan

2013/201623%

Restated for discontinued operations in 2004

36

Business Group summary

Catalysis Energy Materials

36

H1 H1(in million €) 2011 2012

Revenues 390.5 452.8 +16.0%

Recurring EBITDA 59.9 65.6 +9.5%

Recurring EBIT 45.5 48.7 +7.0%of which associates 1.9 4.7 +147.4%

EBIT 52.2 45.3 -13.2%

R&D 41.9 49.2 +17.4%Capex 24.5 37.8 +54.3%

REBIT margin 11.2% 9.7% -1.5%ROCE 13.3% 12.3% -1.0%

H1 H1(in million €) 2011 2012

Revenues 180.4 183.6 +1.8%

Recurring EBITDA 34.0 30.4 -10.6%

Recurring EBIT 21.4 14.4 -32.7%of which associates 3.8 2.4 -36.8%

EBIT 20.4 9.9 -51.5%

R&D 7.2 7.6 +5.6%Capex 33.8 15.6 -53.8%


37

Business Group summary

RecyclingPerformance Materials

37

H1 H1(in million €) 2011 2012

Revenues 270.8 267.2 -1.3%


Recurring EBIT 38.6 30.8 -20.2%of which associates 6.6 5.4 -18.2%

EBIT 38.2 30.6 -19.9%

R&D 8.3 9.4 +13.3%Capex 8.3 10.7 +28.9%


H1 H1(in million €) 2011 2012

Revenues 309.8 342.0 +10.4%


Recurring EBIT 132.9 121.9 -8.3%EBIT 137.7 114.3 -17.0%

R&D 6.1 9.9 +62.3%Capex 27.7 26.6 -4.0%

REBIT margin 42.9% 35.6% -7.3%ROCE 65.1% 83.3% +18.2%

38

39

Forward-looking statements

This presentation contains forward-looking information that involves risks and uncertainties, including statements about Umicore’s plans, objectives, expectations and intentions.

Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Umicore.

Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected.

As a result, neither Umicore nor any other person assumes any responsibility for the accuracy of these forward-looking statements.

Investor Relations

Geoffroy [email protected]+32-2-227 71 47

Evelien [email protected]+32-2-227 78 38

Investor Relations

Geoffroy [email protected]+32-2-227 71 47

Evelien [email protected]+32-2-227 78 38

Documents

Umicore on the way · We aim to minimize our environmental impact and be the best employer and neighbour. material solutions. ... Global positioning at end 2011 . 4 Umicore’s business