Umicore Investor Presentation March 2020
Introduction to Umicore
We are a global materials technology and recycling group The world’s leading One of three global A leading supplier of key leaders in emission control materials for rechargeable recycler of complex waste catalysts for light-duty and batteries used in electrified streams containing heavy-duty vehicles and transportation and portable precious and other for all fuel types electronics valuable metals 3
With a unique position in clean mobility materials and recycling Internal Plug-In Hybrid Combustion Engine Electric Vehicle Umicore provides: Umicore provides: Emission control catalysts Battery cathode materials and emission control catalysts Fuel cells Full Electric Vehicle Umicore provides: Umicore provides: Electro-catalyst and Battery cathode materials battery cathode materials Present across all drive trains and offering sustainable closed- loop services 4
Built on sound foundations Supportive Unique business Industry leader in megatrends & model sustainability legislation resource scarcity more stringent emission control electrification recycling recycling of the automobile We help improve air quality, make electrified transport possible and tackle resource scarcity 5 5
With a robust financial performance and a global presence Key figures (FY 2019) Recurring Revenues EBITDA € 3.4 bn € 753 m Recurring ROCE EBIT 12.6% € 509 m 40% - Europe Revenues* by geography 14% - North America 4% - South America 39% - Asia-Pacific 6 3% - Africa * 2019 data
We deliver on our Horizon 2020 strategy Clear leadership Doubled the size in clean mobility of the business in materials and terms of earnings recycling Rebalanced the Turned portfolio sustainability into & earnings a greater contributions competitive edge 7
With a focused & balanced Group structure ENERGY & SURFACE CATALYSIS RECYCLING TECHNOLOGIES Automotive Catalysts Rechargeable Battery Materials Precious Metals Refining Precious Metals Chemistry Cobalt & Specialty Materials Jewelry & Industrial Metals Electroplating Precious Metals Management Electro-Optic Materials Capital employed* Revenues* Recurring EBIT* (average) (excluding metal) 13% 20% 35% 33% 34% 43% 52% 37% 33% 8 * FY 2019 data; corporate not included
Unique position in Automotive Catalysts Strong growth drivers : Umicore best positioned to Tightening emission norms for capture growth in growing LDV and HDD, in particular in gasoline segment; largest share China, Europe and India of cGPF platforms won in China and Europe Significant value uplift especially in gasoline catalysts Umicore well positioned to capture growth in HDD segments Increasing share of gasoline platforms in the global mix Umicore expanding capacity in Increasing uptake of fuel cell fuel cells drivetrains 9
Unique position in Rechargeable Battery Materials for xEV Electrification confirmed as main avenue to Umicore uniquely positioned to address drastically reduce vehicle emissions in mid- and long-term requirements of this industry, long-term while managing short-term fluctuations Strongly supported by legislation and evidenced with agility by massive roll- out of car OEM’s e -mobility Full spectrum of highest quality strategies cathode materials Increasing electrification drives strong market demand in mid and long-term Process technology and ability to scale up fast Innovation pipeline spanning next Technology roadmap offers ample room for 20 years innovation and differentiation Product Integrated supply chain and battery recycling Process Closed loop offering 10
Unique position in Recycling RECYCLING Metallurgical leadership and proprietary technologies for Increasing resource scarcity and need for closing the treating complex residues and by- loop products Growing complexity of materials to recycle Increased availability of complex materials, in particular Closing the loop in product businesses by end-of-life materials offering recycling services Eco-efficient recycling processes are becoming the norm Over 200 different input streams Umicore uniquely positioned to capture growth as the Recovery of more than world’s largest and most complex precious metal 20 different metals recycler with world class environmental and quality standards 11
We have a solid framework for value creation Focus on Strong Focus on cashflows and growth returns solid capital structure • Multiple growth drivers • Earnings growth objective • Prioritize cash for strategic organic growth projects • Secular trends • Group and segment • Currently in accelerated returns > cost of capital • Supporting legislation investment phase • 15%+ ROCE target • Privilege organic growth • Strong self-funding capacity • Value creation precedes • Complementary M&A, with (normalized excl. current ROCE maximization focus on value creation acceleration) • Cash return to shareholders R&D 6% of Capex € 553 m* revenues 12 * 2019 data
Maintaining a healthy capital structure 35,2% 31,1% 24,4% 2000 2,00 1,92 1,80 1800 15,3% 13,8% 1,60 1600 Gearing 1,40 1443 1400 1,40 ratio 1,19 1200 1,20 1,00 1000 840 861 Net debt 0,80 800 0,64 / recurring EBITDA 0,56 600 0,60 321 296 400 0,40 0,20 200 Consolidated net 0,00 0 financial debt, end of 2015 2016 2017 2018 2019 period million € Net financial debt of € 1,443 m, Corresponds to : Funding headroom to execute including new € 390 m long term US growth strategy while private debt placement, drawn in 1.9x net debt to recurring remaining within the September 2019 EBITDA ratio investment grade territory 35% net gearing ratio Diversified funding base and balanced maturity profile 13
Business Group Overview Catalysis
Catalysis A world leader in emission control catalysts for light-duty and Automotive heavy-duty vehicles and for all fuel types. Complemented by Catalysts smaller stationary catalyst applications (marine, power generation, …). Precious Develops and produces metal-based catalysts used in chemistry, Metals life sciences and pharmaceutical applications. Also has a complete portfolio of catalyst technologies for fuel cells. Chemistry 15
Automotive Catalysts: business model We develop technologies which allow our customers to meet automotive emission legislation at the lowest Total Cost of Ownership Complete catalyst systems Customer focus to reduce exhaust gas emissions People Operational engagement excellence Global manufacturing & technical footprint 16
Automotive Catalysts Production Footprint 19 plants in 14 countries, 10 R&D / tech. centers in 7 countries Frederikssund Karlskoga Lyngby Nowa Ruda Songdo Denmark Sweden Denmark Poland Korea Onsan Hanau Burlington Korea Germany Canada Tokoname Japan Auburn Hills, MI Florange USA France Kobe Japan Rheinfelden/ Tulsa, OK USA Bad Säckingen Himeji Germany Japan Houston, TX USA Tianjin China Americana Suzhou Brazil China (2) Production plant R&D/Tech. center Joinville Port Elizabeth Pune Rayong Production plant/R&D Tech. center Brazil South Africa India Thailand Stationary 17
Catalysis 2019 market context More stringent emission norms Recession in global car market in key regions Global light-duty vehicle production down by Euro 6d TEMP for all new vehicles since 6.3% year on year: September 2019 China - 8.9% Europe - 5.0% Early implementation of China 6a in July 2019 North America - 4.4% in several major cities and provinces China down 2 nd year in a row; steep contraction Increasing share of gasoline particulate filters in H1 19, while pace of decline eased in Europe and China somewhat in H2 19 Falling diesel production in Europe (-12%), share of 35% in European car market 18
Catalysis 2019 performance Revenues +7% and REBIT +10%; outperforming market reflecting market share gains in light-duty gasoline REVENUES 1.460 1500 1.253 1.360 1.163 1.094 Automotive Catalysts 743 652 1000 620 565 545 Market share gains in light-duty gasoline 500 709 717 Growing penetration of cGPFs in China and Europe 633 598 549 0 Leadership position in light-duty vehicles in China H1 2015 2016 2017 2018 2019 Higher volumes and revenues in heavy-duty diesel H2 REBIT Precious Metals Chemistry 300 13,2% 250 Strong demand from pharmaceutical and chemical 12,7% 12,3% 12,4% 10,6% industries 200 185 166 168 152 Significant increase in demand for fuel cell catalysts 124 150 99 82 85 75 100 63 50 86 87 81 78 61 0 2015 2016 2017 2018 2019 million € 19
Catalysis – major milestones in 2019 Capacity expansions Sustained investments Opening of new plant to support growth of in product and for fuel cell catalysts Automotive Catalysts in process innovation in Korea China, Poland and India 20
Impressions Bad-Säckingen plant AC, Germany Catalyst elements Test bench Nowa Ruda plant AC, Poland Installation stationary DNox catalyst Canned catalyst 21
Business Group Overview Energy & Surface Technologies
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