Umicore H1 2020 performance 31 July 2020 Overview COVID- 19 - PowerPoint PPT Presentation

Umicore H1 2020 performance 31 July 2020

Overview COVID- 19 outbreak and Umicore’s response H1 2020 business review Outlook H1 2020 financial review Wrap up Q&A Umicore H1 2020 performance 2

COVID-19 outbreak: impact on auto-industry H1 2020 YoY evolution of passenger car production across all powertrains (source: IHS & Umicore - 20/07/2020) China Europe North America Global market 2.500.000 2.500.000 2.500.000 9.000.000 -47% -34% -27% 8.000.000 -12% -62%-54% -39% -67% -26% 2.000.000 2.000.000 2.000.000 -21% 7.000.000 -93% -34% 6.000.000 -31% -85% 1.500.000 1.500.000 1.500.000 -30% -99% 5.000.000 -88% 4.000.000 1.000.000 1.000.000 1.000.000 3.000.000 2.000.000 500.000 500.000 500.000 1.000.000 0 0 0 0 January February March April May June January February March April May June January February March April May June January February March April May June 2019 2020 2019 2020 2019 2020 2019 2020 H1 2020 global car production down 35% YoY

COVID-19 outbreak: impact on EV sales H1 2020 YoY evolution of BEV and pHEV car sales (source: EV Volumes) China Europe Global market -31% 300.000 300.000 300.000 250.000 250.000 250.000 -14% -54%* -21% 200.000 200.000 200.000 -7% -26% 150.000 150.000 150.000 -49% +17% -27% -50% 100.000 100.000 100.000 -21% +40% +117% +49% +112% +20% -18% 50.000 50.000 -62% 50.000 0 0 0 January February March April May June January February March April May June Average January February March April May June Average Average H2 2018 H2 2018 H2 2018 2019 2020 2019 2020 36,000 2019 2020 218,000 128,000 *Pre-buying in June 2019 due to lower subsidy H1 2020 EV sales down 17% YoY regime as of July 2019

Immediate measures in response to COVID-19 Preserving cash Keeping our people healthy and ensuring Reduce costs (e.g. production capacity safe working conditions adjusted and use of temporary unemployment measures where applicable) Strict hygiene and precautionary Optimize working capital measures Dedicated task force to monitor Delay investments except for EHS and strategic projects operations globally Reduced dividend of € 0.375 per share for the full year 2019 5

Longer-term measures in response to COVID-19 Assessing production Strengthening of funding footprint and asset structure and increasing utilization liquidity Additional funding: placement of € 500 m Consolidation of North American convertible bond and € 125 m loan from automotive catalyst production EIB activities in Burlington, Canada Discontinuation of automotive catalyst Strong balance sheet with ample liquidity (€ 1.2 bn cash and equivalents + ~ € 1bn production in Tulsa, USA additional committed undrawn credit lines) Additional cash and non-cash adjustments may be required in H2 Well-balanced LT debt profile with no material maturities prior to 2023 6

H1 2020 business review

Key figures H1 2020 REVENUES Free Operating Cash Flow Adjusted EBIT € 108 m € 1.6 bn € 243 m Net debt at € 1,349 m -4% YoY Stable YoY Net debt / LTM Adj. EBITDA 1.75x Adjusted NET PROFIT Adjusted EBITDA € 152 m CAPEX (Group share) € 376 m € 148 m +5% YoY Adjusted EPS € 0.62 ROCE 10.9 % Interim dividend of € 0.25 per share Strong performance in Recycling offset COVID-19 impact in Catalysis and E&ST Umicore H1 2020 performance 8 8

Catalysis H1 2020 performance Revenues -20% and Adj. EBIT -75%; severe impact from COVID-19 and related car OEM production shutdowns REVENUES 800 743 717 600 709 652 633 620 Automotive Catalysts 598 571 565 400 Widespread car OEM production shutdowns and car 200 sales plunging 0 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 Severe impact on revenues and volumes  H1 Further outperformance of LDV market in China  H2 HDD less down than market given higher demand for Adjusted EBIT China V technologies 120 100 99 80 Precious Metals Chemistry 86 87 85 82 81 78 75 60 Revenues down due to COVID-19 impact on 40 automotive industry 20 21 Continued strong demand for pharmaceutical 0 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 ingredients and fuel cell catalysts million € Umicore H1 2020 performance 9

E&ST H1 2020 performance Revenues -8%; Adj. EBIT -47%; severe COVID-19 impact and higher fixed costs REVENUES Rechargeable Battery Materials 700 600 Overall volumes of cathode materials lower YoY and 650 639 618 607 500 557 materially lower than expected due to COVID-19 495 400 Higher fixed costs related to recent and ongoing expansions 398 300 322 288 200 Significant negative operating leverage 100 Positive contribution of Kokkola activities acquired in Dec . ’19 0 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020  H1 Construction of Nysa plant delayed due to COVID-19 restrictions; commissioning planned in H1 2021  H2 REBIT Adjusted EBIT 130 136 Cobalt & Specialty Materials 110 121 90 102 Most end-markets impacted by COVID-19 70 81 79 Lower cobalt and nickel prices impacted refining & recycling 50 61 54 30 45 activities 37 10 -10 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 Electroplating recorded slightly higher revenues; revenues in Electro-Optic Materials were roughly stable million € Umicore H1 2020 performance 10

Recycling H1 2020 performance Revenues +40%; Adj. EBIT +150%; increased volumes, higher metal prices and favorable supply mix REVENUES 600 450 Precious Metals Recycling 440 300 368 339 323 327 318 313 311 300 Higher processed volumes (vs. extended maintenance 150 in H1 19) 0 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 Higher metal prices  H1 Robust supply conditions and optimization of input mix  H2 Adjusted EBIT Increased Jewelry & Industrial Metals revenues 200 Substantial earnings contribution from Precious 191 150 Metals Management 100 112 79 76 50 73 62 63 55 56 0 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020 million € Umicore H1 2020 performance 11

Environmental focus on the Hoboken plant Lead in blood children Fire incidents Multiple years of decreases with 2019 Fire in lead refinery in March 2020 readings historically low , well below 5µg/dl norm Small fire on the roof of a waste water treatment section in July Unexpected increase in July 2020 readings, despite d ust emissions well Root-cause investigations ongoing, below the legal norm increased focus on prevention and fire protection Root-cause investigations ongoing, exploring solutions , including the possibility of making an offer to buy certain houses closest to the plant Continue to dedicate substantial investments to the environment and intensify the investment program launched several years ago to further reduce emissions . Reinforce internal organization and further strengthen emergency planning to protect the environment and to minimize the impact on the community. Safe operations remain our top priority . 12 .

Outlook

2020 outlook Given the current evolution of the pandemic and the uncertainty it creates in Umicore’s key end-markets, it remains impossible to provide a reliable quantified outlook for 2020. Notwithstanding the very limited market visibility, Umicore continues to expect its full year adjusted EBIT to be below the levels reached in 2019 . ENERGY & SURFACE CATALYSIS RECYCLING TECHNOLOGIES 2020 Adj. EBIT expected well 2020 Adj. EBIT expected well 2020 Adj. EBIT expected well below levels of 2019 above levels of 2019 below levels of 2019 H2 Adj. EBIT likely below H1 levels as H2 revenues and Adj. EBIT well above H1 performance not to be extrapolated inventory corrections in the rechargeable to H2: H1 levels, based on a scenario of 25% battery supply chain are expected to drop in global car production in 2020 - 4-week planned maintenance exacerbate the impact of weak trading shutdown (PMR) conditions across business units - Seasonality effects in other businesses Umicore H1 2020 performance 14

Long-term growth drivers remain intact COVID-19 stimuli plans aimed at a ‘green recovery’ in China and Europe China: Extension of NEV subsidy plan from 2020 until end 2022 and confirmation of increased mandatory NEV credit targets for 2021-2023 ENERGY & SURFACE Europe: EU recovery plan predicated on European Green deal, including ambition TECHNOLOGIES towards zero-emission mobility. Stimuli packages in several countries (Germany, France, Spain) with subsidies for electrified vehicles Tightening emission norms continue to be on the agenda in key regions, confirming the need for more complex automotive catalyst technologies going forward CATALYSIS Resource scarcity and complexity of materials Path towards a more circular economy RECYCLING Umicore H1 2020 performance 15

H1 2020 financial review