Umicore Sa · EURONEXT:UMI
Umicore Sa — Investor Day (September 2015)
34 slides from Umicore Sa's investor day presentation, Sep 2, 2015
Slide 1: 2 September 2015, Andaz London Liverpool Street
2 September 2015 Andaz London Liverpool Street
Slide 2: Energy & Surface Technologies
Energy & Surface Technologies Speaker Marc Van Sande Executive Vice-President, Energy & Surface Technologies
Slide 3: Agenda
Agenda Shared Business characteristics group profile of the business units Growth Asian & profitability Key presence drivers takeaways 3
Slide 4: Business group profile
Business group profile Energy & Surface Technologies Thin Film Electro-Optic Rechargeable Cobalt & Specialty Electroplating Products Materials Battery Materials Materials (EP) (TFP) (EOM) (RBM) (CSM) 4
Slide 5: Materials for energy and surface applications
Materials for energy and surface applications RBM CSM EP TFP EOM Wear and Electrification corrosion of vehicles protection and decorative coating Efficient Optics portable and devices electronics High efficiency solar cells Light emitting diodes (LED) Energy storage 5
Slide 6: Closing the loop
Closing the loop Rechargeable Closed loop through Battery Battery Materials Recycling pilot ready for scaling up Residues from the tooling and aerospace Cobalt & Specialty industries and catalysts from the Materials petrochemical industry Residues from Electroplating electroplating baths (other BU)
Slide 7: Asian presence increasingly important
Asian presence increasingly important Shift of several industries to Asia Supply coming from Asia Lower cost environment Rechargeable Cobalt & Specialty Electro-Optic Electroplating Thin Film Products Battery Materials Materials Materials 7
Slide 8: Growth & profitability drivers
Growth & profitability drivers Main Profitability Business unit growth drivers drivers Rechargeable Scale effects, product and process Vehicle electrification Battery Materials technologies Cobalt & Specialty Growth in RBM Supply chain integration, Materials Plating and chemicals industries process
Slide 9: Key takeaways
Key takeaways All activities are Double digit Importance of related to the core revenue and Asian presence, competences of earnings growth integrated supply Umicore potential chain & scale 9
Slide 10: Rechargeable Battery Materials
Rechargeable Battery Materials Speaker Kurt Vandeputte Vice-President, Rechargeable Battery Materials
Slide 11: Agenda
Agenda Market Business drivers and Growth Key profile prospects opportunity takeaways 3
Slide 12: Agenda
Agenda Market Business drivers and Growth Key profile prospects opportunity takeaways 4
Slide 13: A close fit with megatrends
A close fit with megatrends Transportation: Megatrends fuel-based towards electricity-based Electricity generation: increasing share from non-fossil sources resource scarcity (wind, sun, bio, hydro,…) more stringent emission control Metal-based functional materials enable electrification recyclabili
Slide 14: A leading player in the industry
A leading player in the industry Market Umicore characteristics offering A broad spectrum of metal- • Li-ion battery technology is based materials used in Li-ion established reference for batteries portables and automotive applications Umicore is a leading cathode material supplier with a large indu
Slide 15: A global presence
A global presence R&D and Industrialization • Product R&D (KR, JP, BE) • Process Development (BE, KR) • Engineering (KR) Operations Customer Teams • LCO, NMC (KR,PRC) • LFP (BE) • Dedicated teams • ISO9001/14001/18001 • Sales & Marketing • TS16949 • Applied Technology • in EU, US, KR, JP, Applicatio
Slide 16: Unique integration in the value chain
Unique integration in the value chain Raw material Metal Product Application End use Portable electronics Recycling & intermediates Power tools (P) HEV / Li-ion EV residues rechargeable batteries E-bikes residues Stationary power Umicore occupies a unique position in the value chain guaranteeing hig
Slide 17: Unique industrialization capabilities
Unique industrialization capabilities Two decades of market Process innovation fuels presence in cathode productivity improvements materials for Li-ion batteries while maintaining highest quality standards (stringent automotive standards) Established industrial footprint close to the customer Integr
Slide 18: Umicore's production plant in Cheonan
Umicore’s production plant in Cheonan The biggest cathode material production facility in the world 10
Slide 19: Agenda
Agenda Market Business drivers and Growth Key profile prospects opportunity takeaways 11
Slide 20: Supportive market conditions
Supportive market conditions Base case Rechargeable 400 battery market (GWh) Portable Societal driver Electrification Regulatory driver 200 Energy Storage System Regulatory driver 0 2015 2020 2025 The main growth driver will be vehicle electrification 12
Slide 21: Exciting upside potential
Exciting upside potential High case Rechargeable 400 battery market (GWh) Portable Societal driver Electrification Regulatory driver 200 Energy Storage System Regulatory driver 0 2015 2020 2025 The main growth driver will be vehicle electrification 13
Slide 22: Market focus: Portables
Market focus: Portables • Main Li-ion market segment 5% 5 % today driving material technology directions • Smart phone, tablet and notebook applications are 19% the volume drivers in the electronics subsegment 71% • Electric Power Two-Wheels is a new growth driver based on similar battery and materi
Slide 23: Market focus: Electrified transport
Market focus: Electrified transport Total automotive production by drivetrain 5% 5 • Market segment is very % pHEV / EV diverse (automotive, heavy 3% pHEV / EV duty, marine, aviation) 1% though near-term driven by automotive Micro HEV Micro HEV / HEV / HEV • Car market continues 29% 61% on growth tr
Slide 24: Market focus: Electrified transport
Market focus: Electrified transport Segments Battery Size (kWh) 10 25 75 50 200 0.4 1 Micro HEV HEV pHEV EV medium EV long Delivery van E-bus Understanding Li-ion Selecting most cost effective Expanding to small battery requirements for Li-ion battery system for a given delivery vans, utility automo
Slide 25: Market focus: Electrified transport
Market focus: Electrified transport Share of automotive battery in 2020 in GWh • Aligning the right material technology and production capacities with the specific 3% market demand profiles is crucial 7% 21% • Energy, more specifically ‘Cost of Energy’ ($/kWh), is a key driving 22% force for materia
Slide 26: Market focus: Energy Storage Systems
Market focus: Energy Storage Systems • Li-ion based storage systems serve only a niche segment • Industrial power grid connected systems offer the main opportunity • Increasing non-fossil electricity forces regulators to define ‘minimum’ connected electricity storage buffers to guarantee power grid
Slide 27: Agenda
Agenda Market Business drivers and Growth Key profile prospects opportunity takeaways 19
Slide 28: Umicore cathode material heat map
Umicore cathode material heat map Segment Cathode Material Options Portables Premium HE LCO NMC/NCA Portables Standard NMC LCO LMO Automotive ‘Energy’ NMC/NCA LMO Umicore present Automotive ‘Power’ NMC/NCA LMO LFP Energy Storage LFP NMC/NCA LMO System Umicore’s portfolio focuses on sizeable segments
Slide 29: Material specific market opportunity evolution
Material specific market opportunity evolution Portables Transportation 2015-2020 2015-2020 8%3 % 4% 14% 11% 22% 19% 15% 48% 59% 56% 11% 31% 22% 74% HE LCO NMC and NMC 3% the technology technologies of of choice choice ESS 2015-2020 Umicore covers the main market 20% 18% segments with its HE LCO, NM
Slide 30: Significant accessible market for Umicore
Significant accessible market for Umicore Base case 300 Cathode material demand in 250 kT (indexed) 200 150 Market 100 accessible LMO for Umicore LFP NMC 50 LCO HE LCO 0 2015 2020 Umicore is well positioned to participate strongly in the market growth 22
Slide 31: Significant accessible market for Umicore
Significant accessible market for Umicore High case 300 Cathode material demand in 250 kT (indexed) 200 150 Market accessible 100 for Umicore LMO LFP NMC 50 LCO HE LCO 0 2015 2020 high case Umicore’s supply chain integration and industrialization competences support a transformational growth scenari
Slide 32: Growth strategy 2015-2020
Growth strategy 2015-2020 Establish technology- Maintain based leadership in leadership in xEV and continue Reach portable massive industrial sustainable applications expansion profitability Cost leadership through economies of scale, process development, competitive sourcing (jointly with CSM) and
Slide 33: Agenda
Agenda Market Business drivers and Growth Key profile prospects opportunity takeaways 25
Slide 34: Key takeaways
Key takeaways Li-ion is the technology Market demand remains of choice for portable and strong and transport automotive segments in electrification is the the coming decade main growth driver • Eexcellent cathode materials Umicore is uniquely technology and freedom to operate positioned to capture •