Ordinary, special and extraordinary shareholders' meetings 30 April - PowerPoint PPT Presentation

Ordinary, special and extraordinary shareholders' meetings 30 April 2020

Agenda Governance Highlights 2019 COVID-19 2020 outlook Remuneration Voting Umicore shareholders' meetings 30 April 2020 2

Governance Umicore shareholders' meetings 30 April 2020 3

Board of directors Key • Financial performance and budget for the Group • Funding mandate (US private placement) board meeting topics • Innovation strategy in 2019 • M&A projects • Investment projects and strategic opportunities • Business reviews and market updates • Business risk assessment • IT security • Board and ExCom succession 7 full board meetings in 2019 100% attendance for full board meetings 100% attendance for all committees Umicore shareholders' meetings 30 April 2020 4

Application of new corporate governance rules Two-tier model • Supervisory board, composed exclusively of non-executive directors and New Belgian Code headed by a chairman of companies • Management board headed by the CEO and associations • The two-tier model is the most appropriate for Umicore going forward • Submitted for shareholders’ approval (EGM) Umicore board decided not to propose a resolution seeking to give dual voting rights to registered shareholders holding their shares for a period of more than two years • Results in only few minor changes in Umicore’s governance practice Belgian Code • The board has approved a new version of the corporate governance charter of Corporate • Umicore will report on compliance against its provisions in the annual report Governance 2020 • Remuneration • Directors already partly paid in shares • In addition, the board, upon advice of the nomination & remuneration committee, will set a minimum shareholding requirement for members of the executive management Umicore shareholders' meetings 30 April 2020 5

Proposed board member Mario Armero Umicore shareholders' meetings 30 April 2020 6

Highlights 2019 Umicore shareholders' meetings 30 April 2020 7

Significant strides made in the execution of Horizon 2020 strategy Clear leadership Doubled the size Turned sustainability Rebalanced in clean mobility of the business in into a greater portfolio & earnings materials and recycling terms of earnings competitive edge contributions REVENUES ROCE Capex +3% 12.6% €553m €3.4bn With a strong performance in a persistently challenging Close to 2018 REBIT -5% EPS R&D record level market context €509m €211m €1.30 Umicore shareholders' meetings 30 April 2020 8

Umicore shareholders' meetings 30 April 2020 9

Umicore shareholders' meetings 30 April 2020 10

Umicore shareholders' meetings 30 April 2020 11

Strong performance in persistently challenging market context Strong performance in persistently challenging environment ENERGY & SURFACE RECYCLING CATALYSIS TECHNOLOGIES Favorable supply environment Growth in cathode materials for Market share gains in gasoline EVs in line with the market catalyst applications Optimized input mix offset Higher cathode materials sales Leading light-duty catalyst largely lower volumes in H2, sequentially and YoY provider in China, largest car Higher metal prices market worldwide Cobalt price halved vs 2018 Strong growth from fuel cell Higher D&A and upfront catalyst applications greenfield investment costs 12 Umicore shareholders' meetings 30 April 2020

Strong performance in persistently challenging market context 34% 33% REVENUES REBIT REBITDA €1.5bn +7% €185m €264m +10% +11% Group CATALYSIS REBIT REVENUES REBIT REBITDA €1.2bn ENERGY & SURFACE €183m €271m -5% -29% -16% 33% TECHNOLOGIES Catalysis REVENUES REBIT REBITDA €681m €188m RECYCLING €250m +9% +40% +29% Energy & Surface Technologies Recycling Corporate not included 13 Umicore shareholders' meetings 30 April 2020

Striving for healthy & safe employees Delivering eco-efficient & ethical operations VALUE CHAIN & SOCIETY ECO-EFFICIENCY GREAT PLACE TO WORK Global Framework Agreement on Input from secondary 60% Growth in Belgium, China, Sustainable Development renewed & end-of-life materials Korea and Finland in 2019 Gold & silver certified conflict-free Connecting employees Measuring & increasing the share through the digital workplace RMI-conformant Cobalt refineries of purchased renewable energy Safety remains a priority -23% energy consumption 11,152 group employees -59% metal emissions to air 94% retention rate -57% metal emissions to water 83% sites without LTAs vs. 2015 baseline 14 Umicore shareholders' meetings 30 April 2020

COVID-19 Umicore shareholders' meetings 30 April 2020 15

Umicore’s response to COVID-19 Keeping our people healthy and ensuring safe working conditions Strict hygiene and precautionary measures Dedicated global task force Limited number of infected employees Preserving cash Reduce costs: production capacity adjusted and 10% of workforce furloughed Optimize working capital Delay investments (2020 capex expected between € 400 - € 450 million) Proposed reduced dividend of € 0.375 per share for the full year 2019 Strong funding structure and increased liquidity Strong balance sheet with ample liquidity (€ 1.2 bn immediate cash available) Well-balanced debt profile with no material maturities prior to 2023 Umicore shareholders' meetings 30 April 2020 16

Strong Q1 performance Well ahead of the previous year  Recycling: strong Q1 contribution from all business units  Supportive supply conditions and metal prices in Precious Metals Refining  Favorable trading conditions for precious and certain PGM metals in Precious Metals Management  Strong demand for gold investment products and gold recycling services in Jewelry & Industrial Metals  Catalysis and Energy & Surface Technologies: good start of the year with first impact of COVID-19  Outperforming the car market in Q1  Impact of COVID-19 on Automotive Catalysts and Rechargeable Battery Materials:  In February in China  As from mid-March in other key regions such as Europe and the US Umicore shareholders' meetings 30 April 2020 17

Impact of COVID-19 on automotive industry Global Car production -25% YoY in Q1 Purchasing power end- consumers impacted by China COVID-19 and demand anticipated to Car production slowly picking up, yet still significantly below 2019 remain fragile in 2020 levels in March (-45%) More pronounced decline in NEV production (-57% in March) Demand remaining fragile and inventory levels high Europe and North-America Umicore currently assumes that global car production for Car OEMs assembly lines shut down since mid-March the full year will be down by Significant decline in car production in Europe (-45%) and the US approximately 25% from the (-30%) in March levels of 2019 Assembly lines in Europe gradually restarting production; expected gradual restart in North-America around mid-May Umicore shareholders' meetings 30 April 2020 18

Update on COVID-19 impact on operations ENERGY & SURFACE RECYCLING CATALYSIS TECHNOLOGIES All sites remain in operation Production at Automotive Production at Rechargeable Catalysts : Battery Materials: and comply with strict sanitary standards Impacted in China during Lunar • Impacted in China during Lunar • NY holidays and following NY holidays and following weeks; weeks; slight pick-up since then slight pick-up since then Favorable trading conditions Full impact of COVID-19 on • for Precious Metals Temporary production stops in • performance expected as of Q2 Management regions outside China, Korea and Japan Full impact of COVID-19 on • Demand in other business Strong demand for gold performance expected as of Q2 units, in particular Cobalt & investment products and recycling at Jewelry & Specialty Materials also Demand in Precious Metals Industrial Metals significantly impacted by Chemistry significantly COVID-19 impacted by COVID-19 Umicore shareholders' meetings 30 April 2020 19

2020 outlook Umicore shareholders' meetings 30 April 2020 20

2020 outlook Based on strong Q1 and expectation of REBIT in Catalysis and Energy & continued favorable supply conditions, Surface Technologies expected well Recycling REBIT expected well above below levels of 2019 levels of 2019 Assuming that global car production will be down by approximately 25% from Assuming metal prices remain at their current level. the levels of 2019. Duration of COVID-19 impact highly uncertain and visibility on market demand extremely low, making it impossible today to give any reliable quantified outlook for 2020 2020 recurring EBIT expected to be well below the level of 2019 21 Umicore shareholders' meetings 30 April 2020

Remuneration Umicore shareholders' meetings 30 April 2020 22