Umicore Sa · EURONEXT:UMI
Umicore Sa — Shareholder Meeting (2009)
36 slides from Umicore Sa's shareholder meeting presentation, 2009
Slide 1: 2008 report to shareholders & society
2008 report to shareholders & society
Slide 2: Overview
Overview Highlights • Economic report • Environmental report • Social report • Governance report 2009 Q1 update 2
Slide 3: Economic report
umicore matrrials-fr a batter life Economic report
Slide 4: Continued strong performance
Continued strong performance Revenues (excluding metal) Recurring EBIT (in million €) (in million €) 19,7% 19,2% 4000 20,0% 600 20,0% 17,9% 17,3% 17,4% 18,0% 18,0% 3500 15,2% 500 15,3% 14,7% 16,0% 16,0% 3000 13,6% 14,0% 14,0% 400 359 355 2500 11,5% 2124 12,0% 329 12,0% 160 140 9,4% 1910 280 2000 997
Slide 5: Rapid deterioration of business environment in Q4
Rapid deterioration of business environment in Q4 • Annual global car production down 4% (down 12% in H2 and down 21% in Q4); Plant closures at most major OEMs and significant destocking underway • Sales of mobile phones down 13% in Q4, while sales growth of laptops was slower than generally anticip
Slide 6: Dealing with reduced demand
Dealing with reduced demand • Umicore is continuing to adapt its production profile to the current demand situation • Workforce of consolidated companies reduced by 400 people from October 2008 to date with a further reduction of 150 planned • More than 1,000 people on reduced working time or tempor
Slide 7: Investing in the long-term: R&D focus
Investing in the long-term: R&D focus R&D (in million €) 200 7,0% R&D expenditure increased further in 7,0% 2008 175 5,8% 5,8% 166 5,7% 6,0% 5,4% 93 • Higher expenditure in Automotive 150 5,0% Catalysts (mainly due to the 125 inclusion of Delphi R&D) 125 112 110 104 62 3,2% 53 4,0% • Corporate proje
Slide 8: Investing in the long-term: Capex
Investing in the long-term: Capex Capex 2008 capex up by 41% 300 • pre-concentration plant (PMS) • production & testing investments (AC) 250 216 • combined heat power generation (AM) • new Li-Ion cathode materials plant 200 (AM) 151 153 150 142 146 145 125 • API plant (PMP&C) 108 74 84 100 78 94 91
Slide 9: The balance sheet remains strong
The balance sheet remains strong Net financial debt Gross debt (in million €) 43,9% 2.000 44,0% Other bank Bonds 1.750 39,0% facilities (maturity 34,2% 33,4% 17% 2012) 34,0% 26% 1.500 29,0% 25,4% 1.250 24,0% 19,8% Commercial 1.000 paper Long-term 19,0% 14% loan 743 773 750 (maturity 577 610 14,0% 20
Slide 10: EPS
EPS EPS (in €) 2.00 1.80 1.93 • Adjusted EPS increased by 7 % 1.73 1.41 • Accretive share buy-back effect 1.50 of 9 % 1.21 1.00 • Proposed dividend of € 0.65 per 0.80 share, stable versus 2007 0.57 • Ex-dividend date is 30 April with 0.50 0.65 0.65 0.32 0.33 0.37 0.42 payout commencing on 6 May 0.28
Slide 11: Stock performance
© umicore Stock performance 40 4,000,000 35 3,500,000 30 3,000,000 25 2,500,000 20 2,000,000 15 1,500,000 10 1,000,000 5 500,000 iin ia 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 — Umicore share price — Dow Jones Specialty Chemicals index (indexed) . . Umicore yearly / monthly average
Slide 12: Environmental report
umicore’ materials for a betta life
Slide 13: Environmental performance analysis: key indicators
Environmental performance analysis: key indicators Metal emissions key indicators: (in kg) • Metal emission to water & air 20 000 8 to water 15 000 6 • Greenhouse gas emission to air to air 10 000 4 per unit • Water and energy consumption 5 000 2 revenue per unit revenue 0 0 2007 2008 Greenhouse gas
Slide 14: Environmental performance analysis: key indicators
Environmental performance analysis: key indicators Compliance excess rate (%) 2,0 key indicators: 1,5 • (hazardous) waste production 1,0 • compliance excess rate ☺ 0,5 0,0 2007 2008 Total waste produced Input materials (tonnes) (% of tonnage) 100 000 50 45 40 Primary materials 35 80 000 30 25 Non ha
Slide 15: Environmental objectives 2006-2010
Environmental objectives 2006-2010 2008 100% 3% 4% good progress made in 2008 towards the 6% 14% five objectives 21% 2006 2007 2008 25% 40% 31% 75% 29% 50% 65% 71% 63% 57% 57% 25% 14% 0% Emission Management Impact Energy Product EHS improvement system and assessment efficiency plan dataset Actions c
Slide 16: Social report
© umicore matrrials-fr a batter life
Slide 17: Human resources
Human resources Workforce, Dec 31 2008 Europe 54% North America 6% South America 8% Asia-Pacific 22% Africa 11% • 85 production sites 17
Slide 18: Social objectives 2006-2010
Social objectives 2006-2010 2008 100% 4% 4% 5% 10% 17% 20% 2006 2007 2008 18% 75% 50% 95% 90% 78% 79% 80% 25% 0% Community Preferred Dialogue Learning Human Rights employer Actions completed Actions underway Actions yet to start 18 Objective met Actions ongoing Actions yet to start
Slide 19: Occupational health
Occupational health • Good progress was made in the area of occupational health, particularly regarding the workplace exposure to the metals and materials that Umicore produces • Lead in blood levels continue to decrease at Hoboken • Umicore supports research into occupational exposure to Indium Tin
Slide 20: Occupational safety
Occupational safety • Safety performance in 2008 was not satisfactory with accident frequency rate and severity rate falling short of the improvement targets • A specific task force has been set up to identify ways in which further progress can be made with a specific remit to trial innovative metho
Slide 21: Corporate Governance Report
Corporate Governance Report
Slide 22: Corporate governance
Corporate governance • Succession of Karel Vinck as Chairman and of Thomas Leysen as CEO • Chairman / CEO succession planning, reviewing the company’s capital structure and the discussion of various acquisition projects were the main strategic issues at Board level in 2008 • Excellent attendance rec
Slide 23: Corporate governance
Corporate governance Executive Committee Gross Remuneration • Healthy balance between fixed and variable components for all managers 2007 2008 Δ CEO • Top 114 managers receive stock fixed 500,000 500,000 options (712,500 options granted in variable 1 2 473,616 435,000 2008 at average strike price of
Slide 24: Q1 Update 2009
Q1 Update 2009
Slide 25: Q1 overview
Q1 overview • Market conditions deteriorated further from the fourth quarter 2008 with de-stocking prevalent in many industries served by Umicore • Revenues down by 23% year-on-year and down 9% vs Q4 2008 • Working capital reductions led to debt decreasing by some €110m compared to the end of 2008 •
Slide 26: Q1 business summary
Q1 business summary • Advanced Materials revenues down 26% (-18% vs Q4) • Decline in demand for cobalt-related products exacerbated by de-stocking, especially in tooling and rechargeable battery materials • Germanium-related activities have proved more resilient • Very challenging market for Element
Slide 27: Q1 business summary
Q1 business summary • Precious Metals Services revenues down 9% (+4% vs Q4) • Availability of supply from various streams is becoming scarcer • Commercial terms and premiums lower • Far less supportive market conditions for the Metals Management activities • Zinc Specialties revenues down 18% (-4% v
Slide 28: Outlook
Outlook • Visibility remains limited • Q2 should show a minor improvement on the very challenging conditions of the first three months • H1 REBIT not expected to exceed € 50m 28
Slide 29: Conclusions
Conclusions • Outlook on short term reflects very challenging business environment • Strong financial position allows Umicore to continue to finance longer term projects • Umicore is well positioned in emerging business segments which address important global sustainability issues 29
Slide 30: Annex
© umicor
Slide 31: Advanced Materials
Advanced Materials • Strong growth in revenues and Key figures profits (in million €) 2007* 2008 • Cobalt & Specialty Materials grew Revenues 332.0 395.0 +19.0% well, although sales volumes fell in Q4 EBITDA 83.5 86.3 +3.3% • Strong growth in germanium REBIT 62.3 71.1 +14.2% substrates feeding incre
Slide 32: Precious Metals Products & Catalysts
Precious Metals Products & Catalysts • Revenues increased, largely as a Key figures result of full-year inclusion of Delphi (in million €) 2007* 2008 operations Revenues 926.0 1,016.9 +9.8% • Automotive Catalysts felt the full impact of significant contraction in EBITDA 193.5 136.6 -29.4% automotive
Slide 33: Precious Metals Services
Precious Metals Services • High availability of both industrial Key figures by-products and end-of-life (in million €) 2007 2008 materials Revenues 357.9 420.1 +17.4% • Higher revenues generated from by- products EBITDA 173.3 218.2 +25.9% • Performance aided by contracted REBIT 133.9 183.7 +37.2% hi
Slide 34: Zinc Specialties
Zinc Specialties • Improved contribution from Building Key figures Products (compared to a weak (in million €) 2007 2008 2007) Revenues 294.1 291.7 -0.8% • Construction sector in Europe EBITDA 61.7 65.5 +6.1% weakened through 2008 REBIT 41.9 45.7 +9.1% • Reduced contribution from Zinc of which assoc
Slide 35: Forward-looking statements
Forward-looking statements This presentation contains forward-looking information that involves risks and uncertainties, including statements about Umicore’s plans, objectives, expectations and intentions Readers are cautioned that forward-looking statements include known and unknown risks and are s
Slide 36: 2008 report to shareholders & society
2008 report to shareholders & society