Umicore H1 2019 performance 31 July 2019 Overview Highlights H1 - PowerPoint PPT Presentation

Umicore H1 2019 performance 31 July 2019

Overview Highlights H1 2019 2019 outlook H1 2019 business review Wrap up Q&A Umicore H1 2019 performance 2

Highlights H1 2019 Robust performance in challenging Committed to long-term strategy in clean market conditions and compared to mobility materials and recycling record levels in 2018 Important steps taken to expand integrated and Catalysis: substantially outperforming automotive sustainable battery materials value chain in Europe market Agreement to acquire Freeport Cobalt’s refining E&ST: disciplined approach to capital spending, and cathode precursor activities in Finland adapting to short-term fluctuations in demand RECURRING NET Long-term partnership with Glencore for PROFIT (Group share) Recycling: significant improvement in throughput rates sustainable cobalt supply following last wave of investment Capacity expansions supporting growth in Automotive Free Cash Flow of € 50 m (- € 104 m in H1 18); Catalysts; greenfield sites under construction in China cashflow from operations of € 308 m ( € 102 m in H1 and Poland for battery materials 18) including stable working capital Successful placement of € 390 m private debt at low Continued investments in R&D fixed interest rates Interim dividend of € 0.375 Umicore H1 2019 performance 3 3

H2 2019 perspectives RECYCLING CATALYSIS ENERGY & SURFACE TECHNOLOGIES Strong performance expected Volume growth expected in Continued increase of throughput rate and favorable despite persisting headwinds in cathode materials automotive industry supply environment Full impact of subsidy cuts on EV Market share gains in gasoline demand in China Annualized processed volumes Potential pick-up in demand for well above 2018 record level Benefitting from cGPFs in Europe ESS and China Favorable supply environment Lower demand from portable Capacity expansions in Poland, electronics and e-buses Tailwinds from metal prices China and India New capacity in China, at an July fire in Hoboken (REBIT adapted pace Revenue growth in Precious impact of about € 10 m) Metals Chemistry Higher D&A and upfront greenfield costs Persisting low cobalt price Umicore H1 2019 performance 4

2019 outlook confirmed Umicore confirms its outlook of recurring EBIT for the full year 2019 in a range of € 475 million to € 525 million, assuming no material further deterioration of the macroeconomic environment RECYCLING ENERGY & SURFACE CATALYSIS TECHNOLOGIES Recurring Recurring Recurring EBIT EBIT to grow EBIT to grow well below the year on year year on year level of last year Umicore H1 2019 performance 5

H1 2019 business review

Catalysis H1 2019 market context Strong headwinds in the automotive industry Global light-duty vehicle production contracted by 6.7% year on year China down 12.1% Europe down 6.4% North America down 3.6% China, the world’s largest car market, significantly declining since H2 2018 after years of strong growth Falling diesel production in Europe (-13%), share of 36% of car production in the region No concrete signs of immediate recovery Umicore H1 2019 performance 7

Catalysis H1 2019 performance Revenues +1% and stable REBIT; in strong contrast with declining auto market REVENUES 800 700 Automotive Catalysts (~90% Catalysis revenues) 717 709 600 652 633 620 500 598 565 549 545 400 300 Market share gains in light duty gasoline 200 100 Growing penetration of cGPFs 0 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Good customer and platform mix esp. in China  H1 Higher revenues in heavy-duty diesel  H2 REBIT 100 Precious Metals Chemistry 90 80 87 86 85 82 81 70 Strong demand from pharmaceutical and chemical 78 75 60 industries 63 61 50 Higher revenues from fuel cell catalysts 40 30 20 10 0 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 million € Umicore H1 2019 performance 8

Strong growth drivers in Catalysis Umicore best positioned to Tightening emission norms for capture growth in growing LDV and HDD, in particular in gasoline segment China, Europe and India Largest share of cGPF platforms Significant value uplift especially won in China and Europe in gasoline catalysts Umicore well positioned to Increasing share of gasoline capture growth in HDD segments platforms in the global mix Umicore expanding capacity in Increasing uptake of fuel cell fuel cells drivetrains Umicore H1 2019 performance 9

E&ST H1 19 market context Slowing growth pace of demand for cathode materials and lower metal prices Transportation: slowdown in EV demand in China, the world’s largest EV market ESS in Korea: production of new systems halted after safety incidents Subdued demand for high-end portable electronics Depressed cobalt price and inflow of unethically sourced artisanal cobalt Excess customer inventories of high-cobalt containing products Umicore H1 2019 performance 10

E&ST H1 19 performance Revenues -7%; REBIT -16% reflecting slowdown in demand and lower metal prices REVENUES Rechargeable Battery Materials 700 600 650 639 607 500 400 495 Lower NMC for ESS and LCO sales 398 300 321 Flat demand for automotive applications 298 200 289 288 100 0 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Recycling and refining activities hit by lower metal prices  H1  H2 Cobalt & Specialty Materials REBIT 160 140 Customer destocking of excess inventories 136 120 121 100 Activities impacted by low metal prices 102 80 Inflow of cheaper unethically sourced artisanal cobalt 79 60 61 40 45 40 37 20 30 Revenues for Electroplating slightly down; stable for 0 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Electro-Optic Materials Battery materials value chain is ~70% E&ST revenues million € Umicore H1 2019 performance 11

Strong growth drivers for E&ST Electrification and technology differentiation Electrification confirmed as the main Technology roadmap offers ample avenue to drastically reduce vehicle room for innovation and emissions in mid & long term differentiation: Product: range, charging times, Strongly supported by legislation: durability Continued regulatory push in China Process: ability to scale up fast, cost despite earlier than anticipated efficient and flexible processes, subsidy cuts quality consistency CO 2 legislation in Europe Closed loop offering and evidenced by the massive roll- out of car OEM’s e -mobility strategies Umicore ideally positioned to address the long-term requirements of this industry, while managing short-term fluctuations with agility Umicore H1 2019 performance 12

Expanding integrated and sustainable battery materials supply chain Agreement to acquire Freeport Partnership with Glencore for Cobalt’s refining and cathode sustainable cobalt supply precursor activities in Finland Long-term supply guarantee for substantial part of our cobalt needs Fully integrated and sustainable battery materials supply chain in Europe Cobalt sourced from state-of-the-art industrial mining operations, then shipped to our refineries globally To support Umicore’s and its customers’ European growth plans Umicore battery supply chain in Europe Supply precursors for cathode materials production in Poland, due to start in H2 2020 Complementary IP and know-how for refining and precursor production Team of experienced battery industry professionals Acquisition earnings accretive from 2020 and value accretive from 2021 Closing subject to customary conditions and approvals 13 Umicore H1 2019 performance

Recycling H1 2019 market context Supportive market environment Strong supply mix Increased availability of complex materials, in particular end- of-life materials Stricter enforcement of import ban of e-scrap in China High volumes of more complex spent catalysts Higher prices for certain PGMs Umicore H1 2019 performance 14

Recycling H1 2019 performance Revenues and REBIT -2%(*) due to extended maintenance shutdown REVENUES 600 450 Precious Metals Recycling (~70% Recycling revenues) 300 343 339 327 320 323 318 313 311 300 150 Better throughput rates following latest wave of investments in Hoboken 0 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Lower processed volumes due to extended scheduled  H1 shutdown  H2 REBIT Better supply mix and higher metal prices 100 Revenues for Jewelry & Industrial Metals slightly up; higher earnings contribution from Precious 79 77 76 73 65 50 63 62 56 55 Metals Management 0 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 (*) excluding the impact of the divestment of the European activities of Technical million € Materials at the end of January 2018 Umicore H1 2019 performance 15

Strong drivers for Recycling Increasing resource scarcity Umicore uniquely positioned to and need for closing the loop capture growth in this segment as the world’s largest and most Growing complexity of complex precious metal materials to recycle recycler with world class environmental and quality Eco-efficient recycling standards processes are becoming the norm Umicore H1 2019 performance 16

Wrap-up