Umicore Sa · EURONEXT:UMI
Umicore Sa — Shareholder Meeting (2011)
36 slides from Umicore Sa's shareholder meeting presentation, 2011
Slide 1: 2010 Report to Shareholders & Society
2010 Report to Shareholders & Society
Slide 2: Overview
Overview • Economic report • Environmental report • Social report • Governance report • Vision 2015 2
Slide 3: Economic report
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Slide 4: Highlights
Highlights • Results rebounded to pre-downturn levels driven by recovering demand • Strong balance sheet maintained • EPS reached record level • Full year dividend proposed of ¤ 0.80 / share • Shareprice reflecting recovery • Continued investment in growth projects 4
Slide 5: Recovering economy drove revenue growth…
Recovering economy drove revenue growth… Revenues (in million €) 2500 • Revenues up 16 % at ¤ 2 billion 2100 2000 1910 2000 1693 1725 1685 985 1723 1013 • Recovery seen in all business segments 945 864 841 863 • Global car production up 25 % 1500 1358 810 • High levels of supply for recycling in all
Slide 6: …and profitability
…and profitability Recurring EBIT (in million €) 600 18.9% 19.6% • Recurring EBIT close to pre-downturn levels 17.8% 17.5% driven primarily by growing revenues 500 15.3% 400 359 355 343 • ROCE of 17.5 % reflects recovering EBIT 329 14.0% 160 140 and disciplined capital management 300 280 169 156 7.7
Slide 7: The balance sheet remains strong
The balance sheet remains strong Net financial debt 45.1% (in million €) 1750 • At year end net debt stood at ¤ 360 million 1500 35.0% (¤ 177 million at year end 2009) 33.7% 31.3% 1250 • The increase reflects the growing working 1000 capital needs which were largely driven by 767 725 20.0% 18.6% ris
Slide 8: EPS at record level, dividend increase proposed
EPS at record level dividend increase proposed Recurring EPS (in € / share) 3.00 • Recurring EPS at a record level of ¤ 2.33 per 2.50 2.33 share (up 219 %) 1.93 1.09 2.00 1.73 1.80 • Proposed dividend of ¤ 0.80 per share 0.74 1.41 0.78 0.83 1.50 1.21 • Taking into account the interim dividend of 0.5
Slide 9: Shareprice reflecting recovery
Shareprice reflecting recovery 4 500 000 45 € 4 000 000 40 € 3 500 000 +66 % over 2010 35 € 3 000 000 30 € 2 500 000 25 € 2 000 000 20 € 1 500 000 15 € 1 000 000 10 € 500 000 5€ 0 0€ 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Umicore yearly / monthly average daily trading volum
Slide 10: Continued investment in growth projects
Continued investment in growth projects R&D 200 167 136 135 • R&D spend of ¤ 135 million 150 126 132 95 111 63 67 67 • Represents 6 % of revenues 100 54 31 48 44 • R&D efforts expected to remain at high levels in 50 66 72 73 68 66 2011 0 • Capex reached ¤ 172 million 2002 2003 2004 2005 2006 2007 20
Slide 11: Continued investment in growth projects
Continued investment in growth projects • Preparing for the (H)EV market • Intensive qualification on-going with battery manufacturers and OEMs • Capacity & capability expansion in Japan, Korea and China well on track • Strengthening of technology and IP portfolio • Preparing for the HDD market • Aw
Slide 12: 2011 Q1 Trading update
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Slide 13: Highlights
Highlights • Strong start of the year continuing the trend seen in 2010 and in line with longer-term growth ambitions • Umicore’s revenues up 13 % year on year, with strong growth in all business groups • Strong operational cashflows • Net financial debt below ¤ 300 million • Full year recurring EBI
Slide 14: Impact of Japan earthquake and tsunami
Impact of Japan earthquake and tsunami • No Umicore employees hurt • Operational impact on Umicore very limited • Automotive catalyst plant in Himeji and battery materials plant in under construction in Kobe undamaged • Light damage to Tsukuba plant, smaller plant serving Electroplating and Precious
Slide 15: Business overview
Business overview Catalysis Energy Materials • Revenues up 13 % • Revenues up 12 % • Automotive Catalysts revenues outperformed • Cobalt & Specialty Materials revenues well up the global car production growth of 5% • Recovery of volumes for rechargeable battery • In line with market in Europe, with
Slide 16: Business overview
Business overview Performance Materials Recycling • Revenues up 10 % • Revenues up 16 % • Technical Materials and Element Six Abrasives • Precious Metals Refining revenues well up revenues well up in line with activity levels • Buoyant supply conditions improve input mix, in tooling and electrical i
Slide 17: Outlook
Outlook Based on Q1 performance and assuming current market conditions continue to prevail, Umicore expects full year recurring EBIT to be in the range of ¤ 400 million to ¤ 425 million Reflects year-on-year growth pattern observed in Catalysis, buoyant supply conditions in Recycling, stable perform
Slide 18: Environmental report
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Slide 19: Environmental performance overview
Environmental performance overview • Small increase in environ- CO2 emissions/revenues Water & energy consumption / revenues mental impact mainly due to water energy higher production levels • Environmental emissions were lower compared to pre- downturn levels, with similar production levels and 200
Slide 20: Environmental objectives 2006-2010
Environmental objectives 2006-2010 20
Slide 21: Social report
Social report
Slide 22: Social performance overview
Social performance overview • Umicore recovered from the downturn Accident frequency rate • Phasing out of temporary measures 14 12 • Increase of workforce 10 end 2009: 13,720 → end 2010: 14,386 8 6 • New greenfields and expansions on-going 4 2 0 • Average number of training hours stable at 44.3h 20
Slide 23: People survey 2010
People survey 2010 Difference with 2007 • High participation rate of 86 % Safety +2 Social & environmental responsibility +3 • Overall results shows consistent Engagement 0 progress in most categories Operational efficiency +1 • In most countries where Umicore Direct supervision +4 has a presence, i
Slide 24: Social objectives 2006-2010
Social objectives 2006-2010 24
Slide 25: Governance report
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Slide 26: Corporate governance
Corporate governance • Main subjects of Board discussion • Financial performance and EHS performance • Budget, operational and investment plans • Strategic headlines and development projects (including Vision 2015 and potential acquisitions) • Succession planning • 7 full Board meetings in 2010 with
Slide 27: Board remuneration changes
Board remuneration changes • Board recommends to add an annual grant of restricted stock to the current fee structure, amounting to 300 shares per Board member, except the CEO • Based on conducted remuneration benchmarking surveys early 2011, on companies with market cap of ¤ 4–6 billion • Concludes
Slide 28: Executive remuneration
Executive remuneration 2009 2010 • Shares & options held by ExCom at end 2010 CEO fixed 500,000 500,000 • Outstanding options: 713,625 variable 250,000 240,000 (strike price range of ¤ 14.44- 32.57) pension 234,672 225,783 • Total number of shares held by Executive other 26,275 28,196 1 Committee me
Slide 29: Vision 2015
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Slide 30: Vision 2015 – an overview
Vision 2015 – an overview • New Vision 2015 strategy introduced in 2010 • Key growth areas identified, responding to global megatrends: • Expand Automotive Catalysts into new segments • Materials for (H)EV batteries • Expand Recycling especially through UHT technology • Grow Umicore’s presence in ma
Slide 31: Key megatrends for Umicore
Key megatrends for Umicore Resource scarcity More stringent emission control Renewable energy Electrification of the automobile 31
Slide 32: Umicore well positioned & growth opportunities aligned with megatrends
Umicore well positioned & growth opportunities well aligned with key megatrends Resource scarcity More stringent emission control Market position Market position Umicore is the largest recycler of precious Umicore provides catalysts for 1 out of 3 cars in metals, able to recycle more than 20 differe
Slide 33: New sustainability objectives
New sustainability objectives • Previous set of 10 environmental & social objectives ran from 2006-2010 • Designed to raise the level of awareness and preparedness through the Group • Qualitative in nature • Stakeholder engagement process launched in 2009 • New set of 10 ambitious and largely quanti
Slide 34: Vision 2015: New set of objectives
Vision 2015: New set of objectives Economic We aim to achieve double digit revenue growth and our goal is to Growth and returns performance generate an average return on capital employed of more than 15% Great place Zero lost time accidents We aim to have ZERO lost time accidents to work We will red
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
Slide 36: Add the front page image
Add the front page image