Umicore Investor Presentation May 2019
Introduction to Umicore
Who 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
Our foundations Supportive Unique business Industry leader in megatrends & model sustainability legislation resource scarcity more stringent emission control electrification recycling recycling of the automobile 4 5
Unique position in clean mobility materials and recycling Present across all drive trains and offering sustainable closed-loop services 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 5
Unique position in clean mobility materials Full service offering vs competitors Automotive Battery Fuel cell Refining & catalysts materials catalysts recycling ✔✔✔ Incumbent services ✔ Early stage Umicore ✔✔✔ ✔✔✔ ✔ ✔✔✔ Automotive ✔✔✔ ✔ ✔ ✔ catalyst competitors (incumbent in spent automotive catalysts) Battery material ✔✔✔ ✔ competitors Fuel cell catalyst ✔✔✔ ✔ ✔ competitors 6 6
Unique position in recycling Metallurgical leadership and closed loop offering Unique technologies in Hoboken for treating LONG complex residues and LOOP by-products Unique technologies Closing the loop for treating complex residues in product businesses & by offering recycling by-products services Over 200 input streams SHORT LOOP Recovery of 20 metals Recycling services for customer production scrap & residues 7
Where we come from Two centuries’ transformation away from mining & base metals 1800 1850 1900 1950 2000 2019 2015-2018 1805 1853 1873-1887-1901 1906 1908-1919 1989 2003 2005-2007 Streamlined portfolio Vieille Asturienne des Degussa - Union Minière du Métallurgique Union Minière Acquisition Spin-off Zinc – Focus on and acceleration in Montagne Mines Usine de Haut Katanga Hoboken & Group of PMG clean mobility and recycling désargentation - Société de Copper growth drivers ACEC Minerais refining Where it all began Crossing borders Pieces of the puzzle A defining decade Today • Since 2015, increased focus on accelerating • • • • Several mining and smelting Acquisition of Union Minière du Merger in 1989 of UMHK with Acquisition of PMG in 2003 clean mobility and recycling (“Horizon 2020”) companies coming together Haut Katanga (UMHK), mining and smelting subsidiaries adding presence in automotive producer of copper and other resulting in an integrated catalyst sector • Divested four non-strategic units and acquired industrial group “Union Minière” metals • Haldor Topsoe’s heavy duty diesel and In 2005, spin-off of copper • Gradual sale of mining activities; business to Cumerio, later stationary catalyst business in 2017. focus on precious metals, zinc Aurubis • Ongoing €1.1bn capacity expansion in battery products and advanced materials • In 2007, spin-off of zinc refining illustrated by name change to materials in China, Korea and Poland and alloy business, resulting in Umicore in 2001 Nyrstar • Today Umicore is a global materials technology and recycling group, with more than 10,000 employees and revenues (excl. metals) of € 3.3 billion 8
Global presence COLLEAGUES PRODUCTION SITES R&D / TECHNOLOGY CENTERS 10,419 48 14 838 11 5,723 2 17 2,992 5 14 6 678 259 5 1 1 9
Our Group structure : focused and balanced 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 EBIT Revenues (average) (recurring) (excluding metal) RE RE RE CA 15% CA 19% 24% 30% CA 38% 42% E&ST E&ST E&ST 47% 39% 46% 10 11 CA = Catalysis, E&ST = Energy & Surface Technologies, RE = Recycling; Corporate not included
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 11
In 2018, we made significant progress towards the 2020 ambitions 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 € 3.3bn +17%* €478 m 15.4% Record results in 2018 REBIT Strategic choices and € 514m REC NET PROFIT R&D recent investments +29%* €326m +22% € 196m REBITDA paying off € 720m +23%* *Excluding discontinued operations 12
Consistent execution of the strategy Main investment projects • Capacity expansion in Europe, China and India following major business wins • Initial investment in fuel cell catalyst Catalysis capacity expansion in Korea TIANJIN, CHINA • Completion of € 460 million investment program in China and Korea on an accelerated schedule • € 660 million greenfield investments in China Energy & Surface and Poland ongoing INCHEON, Technologies KOREA • Completion of environmental investments in Hoboken resulting in significant reduction in emissions. Recycling HOBOKEN, BELGIUM 13
Consistent execution of the strategy Technology innovation drives our business R&D ENERGY & SURFACE • Up 12% to € 196 million • 6% of Umicore’s revenues TECHNOLOGIES • Innovation roadmap spanning the next 20 years for rechargeable CATALYSIS battery materials • New product developments • Developing new process for upcoming emission technologies regulations in Europe and China; fuel cell technology • Battery recycling • State of the art process technologies 14 14
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 16
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 17
Total LDV and HDD catalyst market set for unprecedented value growth MARKET VALUE EVOLUTION BY REGION Massive tightening of emission norms in China, Europe Europe and India drive Greater China massive value uplift in both the LDV and HDD catalyst Japan / Korea markets Middle East / Africa Value growth North America by far outpacing vehicle production South America South Asia Technology and (mainly India) Innovation play 1 2 3 2017 2020 2025 Source: IHS, KGP, Umicore estimates 18
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 19
Umicore well positioned to capture this growth Next to volume growth , unprecedented future system value step-up due to tightening emission norms in Europe, China and India in particular. Light-Duty Vehicles Heavy-Duty Diesel Stationary : ▪ Growing niche ▪ ▪ Gaining significant share Growing from a distant # in growing gasoline 3 position ▪ New legislation segment ▪ Strong position in China, ▪ Leverage global ▪ Disproportionate share of the largest HDD market presence gasoline GPF platforms ▪ Development partner of won in China and Europe most major HDD OEMs Through R&D, we continue to build a competitive technology portfolio and invest in additional flexible capacity using proprietary processes 20
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