Umicore Sa · EURONEXT:UMI
Umicore Sa — Investor Day (2012)
43 slides from Umicore Sa's investor day presentation, 2012
Slide 1: Strategic review Capital Markets Event Korea 2012
Strategic review Capital Markets Event Korea 2012 Marc Grynberg, CEO
Slide 2: Key growth drivers
Key growth drivers Catalysis: Energy Materials: • Global legislation • New (H)EV vehicles • Emerging markets • Photovoltaic demand • HDD • Demand for safer products Performance Materials: Recycling: • Industrial production • Materials scarcity • Geographical expansion • Legislation • Products with r
Slide 3: Vision 2015: our growth profile
Vision 2015: our growth profile Faster growth GDP growth Catalysis Performance Materials Energy Materials Recycling • High R&D • Lower R&D • High investments • High investments • Many new applications • Some new applications / markets / markets 3
Slide 4: Umicore growth profile
Umicore growth profile Technology to remain the key differentiator Growth will not be linear Growth will not be pursued at the expense of value creation Returns remain fundamentally important and Umicore’s goal is to generate an average return on capital of 15%+ between now and 2015 4
Slide 5: Strategic roadmap
Strategic roadmap 2010-2012 2012-2015 2015+ Prepare Focus Accelerate Regain profitability Intensification of Acceleration of of 2007-2008 investment efforts growth Lay the foundations Initial pay-off for Growing into for exceptional major growth leadership positions growth initiatives initiatives in
Slide 6: Progress report
Progress report
Slide 7: Catalysis progress report
Catalysis progress report (in million € ) Revenues 900 Outstanding growth in most markets 813 712 699 600 New HDD contracts in all regions 586 300 New LDV contracts globally 0 New investment wave: 2008 2009 2010 2011 • Technology development centre in Suzhou, (in million € ) REBIT & ROCE China 100 1
Slide 8: Catalysis priorities 2012
Catalysis priorities 2012 (in million € ) Capex 75 Expansion in existing markets for HDD and LDV 50 53.0 49.5 46.0 45.7 Investment in emerging automotive markets 25 Increase penetration with Japanese OEMs 0 both in Japan and elsewhere 2008 2009 2010 2011 Pursue PMC investments in USA 8
Slide 9: Energy Materials progress report
Energy Materials progress report (in million € ) Revenues 500 Significant growth in cathode materials sales 400 especially for electrified vehicle batteries 395.0 395.9 300 347.6 305.1 Profitability lower due to start-up costs of 200 new investments 100 0 Qualification of new rotary targets in TFP 2
Slide 10: Energy Materials priorities 2012
Energy Materials priorities 2012 (in million € ) Capex 75 Develop RBM as stand-alone BU 67.6 + new products, infrastructure, IP 50 52.3 51.0 Start next expansion phase in Korea 38.3 25 Expansion of TFP 0 2008 2009 2010 2011 Adapt EOM production footprint CSM to focus on supply of critical materials
Slide 11: Performance Materials progress report
Performance Materials progress report (in million € ) Revenues 600 2011 growth well above global GDP levels in most areas 400 483.4 471.2 446.3 404.2 Investments up by 32% 200 Successful steps in internationalizing the 0 business & developing new market niches 2008 2009 2010 2011 • Ammonia and cyani
Slide 12: Performance Materials priorities 2012
Performance Materials priorities 2012 (in million € ) Capex 50 Further expansion of Platinum Engineered Materials in Germany 33.5 31.6 25 Expanding Building Products’ coated 23.9 23.9 materials production in France 0 Further expansion in Asia 2008 2009 2010 2011 12
Slide 13: Recycling progress report
Recycling progress report (in million € ) Revenues 800 Outstanding revenue growth and record levels of profit 600 609.5 508.2 506.1 400 Strong supply environment and favourable 426.7 market conditions for all businesses 200 0 New investments launched: 2008 2009 2010 2011 • Sampling (in million € ) R
Slide 14: Recycling priorities 2012
Recycling priorities 2012 (in million € ) Capex 75 Bring new investments on-stream: sampling, 66.1 jewellery 50 54.9 55.7 50.3 UHT technology: 25 • Trialling of new materials for both precious and specialty metal containing 0 2008 2009 2010 2011 residues. • Further market studies Further expansion i
Slide 15: Group financial / investment summary
Group financial / investment summary
Slide 16: Financial and investment summary
Financial and investment summary (in million € ) Revenues (in million € ) REBIT & ROCE (in million € ) REBITDA 2,400 500 600 18.6% 2,290 19.6% 17.5% 17.8% 560 553 2,100 500 520 2,000 400 416 410 1,800 1,910 471 467 469 359 370 1,723 355 400 343 300 1,200 300 200 263 8.1% 200 600 146 100 100 0 0 0 20
Slide 17: Financial and investment summary
Financial and investment summary (in million € ) Capex 300 200 216 213 191 172 153 100 0 2007 2008 2009 2010 2011 2012e 17
Slide 18: Financial and investment summary
Financial and investment summary (in million € ) Capex 300 200 216 213 191 172 153 100 0 2007 2008 2009 2010 2011 2012e 18
Slide 19: Social & environmental progress
Social & environmental progress
Slide 20: Great place to work
Great place to work Zero Accidents Initiatives underway to further promote safety culture at Umicore eg Umicore Safety Awards / Site recognition (3-years & 5-years). 2011 safety performance: LTA up from 56 to 60. Severity rate improved. Occupational exposure reduction First year of benchmarking perf
Slide 21: Eco-efficiency
Eco-efficiency Reduce carbon footprint We have reduced emissions by 14% vs 2006 (for comparable scope of activity). Energy audits are being implemented at the sites with the highest emissions. Emission reduction We have already achieved reductions in the impact of our metal emissions of 31% (to wate
Slide 22: Stakeholder engagement
Stakeholder engagement Sustainable procurement Intense supplier screening was conducted for most non raw materials suppliers in 2011. Focus in 2012 will be on business units screening of raw materials suppliers Local community Community engagement was stepped up in 2011. More than half of all sites
Slide 23: Umicore in the driver's seat
OQ: Vision —_——_—__. a> 2015 The Umicore Way Double digit growth ROCE 15-20% Accidents 0 CO, -20% Metal emissions -20% umMIcOo trials-fr a bate nat max re A lefe
Slide 24: World automotive production outlook by region
World automotive production outlook by region Established Markets Car production Emerging Markets Car production [M vehicles] [M vehicles] 60 60 50 50 40 40 30 30 20 20 10 10 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2000 2001 2002 2003 2
Slide 25: World automotive production scenarios by drivetrain
World automotive production scenarios by drivetrain Scenario 1 Scenario 3 [M vehicles] [M vehicles] 110 110 100 100 90 90 80 80 70 70 600 600 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019 Electric Vehicle (EV) PHEV (Plug-in Hybrid Electric Vehicle) HEV (Hy
Slide 26: EU 2050 CO2 roadmap
EU 2050 CO, roadmap — Total 1 EU-27 total GHG emissions Sector abatement 59 I Power 95-100% 52 53 54 LD Road transport 95% Bi Air & sea transport 50% BB industry* 40% 0 0 ‘3 01 || il Builcings 95% 0.9 0.9 0.9 : 0.6 i waste 100% ; 0,1 riculture 20% ,_ 1990 2010 2030 2050 2050 abated? Bo x B Source: I
Slide 27: Reduction targets exist in most regions
Reduction targets exist in most regions CO2 emission targets for passenger vehicles [g/km] actual enacted proposed 240 estimated -37% 181 185 -22% 167 154 -38% 152 -23% 141 130 125 145 109 95 2015 2020 2010 2015 2020 2010 2015 2020 2010 2015 2020 2010 Europe USA Japan China Source: Continental (2011
Slide 28: Different engine configurations will be needed to reach the 2050 goals
Different engine configurations will be needed to reach the 2050 goals CO2 2010 emission [g/km] 2010 150 ICE ICE 20 10 gasoline diesel EU 2015 target 2010 100 PHEV 2050 2050 EU 2020 2 0 50 target 2010 FCEV 50 BEV 2050 2050 0 0 200 400 600 800 1000 1200 1400 Range [km] ICE Internal Combustion Engine-
Slide 29: Umicore's product offer covers all powertrain possibilities
Umicore’s product offer covers all powertrain possibilities ICE HEV PHEV EV Parallel Range Normal Start-stop Mild Full BEV FCEV system extender Relative size +++ +++ +++ ++ ++ + Emission No emission control control catalyst catalyst Relative complexity + + + ++ +++ + Relative size + + ++ ++ +++ ++ B
Slide 30: Automotive Catalysts
Automotive Catalysts Russia Europe North Korea America China Global leadership position Japan India Regional positions South Market leader America Australia (#1 or #2 position) Smaller player (distant #3) Circles indicative of 2011 light duty vehicle production volumes (≠ catalyst revenues) 30
Slide 31: Automotive Catalysts
Automotive Catalysts Umicore has built a leading position in light duty catalysis – especially for complex engine types including hybrid vehicles Complexity set to increase further: NOx after- treatment, gasoline particulate filters, hydrocarbon traps etc Umicore has specific expertise in catalysis
Slide 32: Rechargeable battery materials
Rechargeable battery materials Li-ion cathode production Extensive product and IP portfolio: [tonnages] LCO, NMC, LFP Broad production footprint close to customer base Strong track record in rapid production 2000 2005 2010 2011 2012 upscaling Umicore figures (estimate for 2012) Automotive industry T
Slide 33: Fuel Cells
Fuel Cells Umicore Precious Metals Chemistry produces electrocatalysts Solvicore JV develops membrane electrode assemblies (MEAs) Umicore focus is long term and increasingly on automotive applications A fuel cell future would require a combination of catalyst and battery materials know-how: ideal fo
Slide 34: Recycling
Recycling Umicore is unique in its recycling capabilities relating to the sustainable powertrain roadmap • Automotive catalysts 9 • Batteries 9 • Fuel cells 9 Umicore’s battery pre-processing line in Hanau Tightening legislation eg ELV and Battery Directives in EU Materials scarcity and traceability
Slide 35: Umicore is in the driver's seat
Umicore is in the driver’s seat Automotive catalysts Battery materials Fuel cell materials Recycling 35
Slide 36: ICE
Umicore is in the driver’s seat ICE Automotive catalysts Battery materials Fuel cell materials Recycling 36
Slide 37: HEV
Umicore is in the driver’s seat HEV Automotive catalysts Battery materials Fuel cell materials Recycling 37
Slide 38: BEV
Umicore is in the driver’s seat BEV Automotive catalysts Battery materials Fuel cell materials Recycling 38
Slide 39: FCEV
Umicore is in the driver’s seat FCEV Automotive catalysts Battery materials Fuel cell materials Recycling 39
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Slide 41: 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
Slide 42: The presenter
The presenter Marc Grynberg Chief Executive Officer Umicore Marc Grynberg was appointed Chief Executive Officer of Umicore in November 2008. He was head of the Group’s Automotive Catalysts business unit from 2006 to 2008 and served as Umicore’s CFO from 2000 until 2006. He joined Umicore in 1996 as
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