Umicore H1 2020 review 31 July 2020 Overview Keeping our people - PowerPoint PPT Presentation

Umicore H1 2020 review 31 July 2020

Overview Keeping our people healthy and ensuring safe working conditions Environmental focus on the Hoboken plant Significant improvement in safety performance COVID-19 impact on the business Long term growth drivers remain intact Q&A 2

Coronavirus spread Source: World Health Organization 3

Umicore globally Europe North America 706 6,100 people people Asia / Pacific South America 3,285 people 607 Africa people 240 people 4

The health and safety of our employees Strict hygiene and other precautionary measures in all facilities worldwide . A dedicated task force monitoring operations globally with a focus on protecting employees’ health . Business and workplace Personal safety measures safety measures Business travel suspended since early 2020. Support to our employees to help them stay healthy Preventive quarantines and strict medical protocols in case of suspected contamination. outside the workplace. Workplace reorganization to guarantee social distancing. Systematic workplace disinfection and cleaning. Facemasks for private use to all employees Virtual meetings replacing physical ones. worldwide. Working from home whenever possible. 5

Lead in blood levels around the Hoboken plant Lead in blood evolution (average) CDC individual blood lead reference value in µg/dl 2019 readings historically low , well below 5µg/dl norm. Unexpected increase , despite dust emissions well below the legal norm. Investigations ongoing, exploring sustainable solutions, including the possibility of making an offer to buy certain houses closest to the plant. Umicore H1 2019 review 6

Incidents on the Hoboken plant Fire incidents Fire in lead refinery in March Small fire on the roof of a waste water treatment section in July Root-cause investigations ongoing, increased focus on prevention and fire protection Continue substantial investments to the environment. 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. 7

Significant improvement of safety performance Lost Time Accidents Additional targeted safety action plans, focus on 50 behavioural change. 40 30 Regular safety inspections. 20 Safety inspections and evaluation criteria to increase 10 personal engagement towards safety. 0 H1 2019 H1 2020 Frequency Rate Severity Rate 5 0,2 4 0,15 3 0,1 2 0,05 1 0 0 H1 2019 H1 2020 H1 2019 H1 2020 8

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 9 9

Immediate and longer-term measures to manage the COVID-19 crisis Preserving cash Strengthening of funding Assessing production Immediate response structure and increasing footprint and asset utilization liquidity Reduce costs (e.g. production Consolidation of North American Additional funding: placement of € capacity adjusted and use of automotive catalyst production 500 m convertible bond and € 125 m temporary unemployment activities in Burlington, Canada loan from EIB measures where applicable) Discontinuation of automotive Strong balance sheet with ample Optimize working capital catalyst production in Tulsa, USA liquidity (€ 1.2 bn cash and equivalents + ~ € 1bn additional committed undrawn credit lines) Additional cash and non-cash Delay investments except for EHS and strategic projects adjustments may be required in H2 Well-balanced LT debt profile with no material maturities prior to 2023 Reduced dividend of € 0.375 per share for the full year 2019 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 € 11

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

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 € 13

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 € 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 15

Wrap-up Resilient H1 20 results, in Strong performance in Umicore’s priority remains most challenging context Recycling offset COVID-19 to keep its employees ever faced, highlight merits impact in Catalysis and healthy and ensure safe of complementarity of Energy & Surface working conditions activities within portfolio Technologies Portfolio of complementary activities, prudent Long-term strategic drivers remain intact, liquidity management and disciplined supporting growth opportunities in clean investment approach make Umicore well mobility and recycling equipped to maintain its strategic course and emerge stronger from this crisis 16

Q&A