Umicore Sa · EURONEXT:UMI
Umicore Sa — Investor Day (September 2015)
33 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: Recycling
Recycling Speaker Stephan Csoma Executive Vice-President, Recycling
Slide 3: Agenda
Agenda Business Short loop and long group profile loop recycling Growth and Asian profitability Key presence drivers takeaways 3
Slide 4: Business group profile
Business group profile Recycling Platinum Technical Jewellery and Precious Metals Precious Metals Engineered Materials Industrial Metals Refining Management Materials (TM) (JIM) (PMR) (PMM) (PEM) 4
Slide 5: Closing the loop in Recycling
Closing the loop in Recycling LONG by-products from mining LOOP and smelting / refining + SHORT end-of-life materials LOOP Mining / smelting and refining by-products, industrial residues and end- Customers’ industrial of-life products residues, spent equipment and production scrap JIM, TM and PEM PM
Slide 6: Short closed loop in Recycling
Short closed loop in Recycling Platinum Technical Jewellery Engineered Materials and Industrial Metals Materials Precious Metals Management (PMM) sources precious metals for industrial business units 6
Slide 7: Asian presence becoming increasingly important
Asian presence becoming increasingly important Jewellery and Expanding base Industrial Metals in S.E. Asia Platinum Production in Engineered Yokohama, Japan Materials Technical Production in Materials Suzhou, China 7
Slide 8: Growth and profitability drivers
Growth and profitability drivers Main Profitability Business unit growth drivers drivers Jewellery and Global demand for jewellery Integration of products and and industries eg. mint or recycling services Industrial Metals decorative Platinum Evolution in the high-purity Product design / innovation
Slide 9: Key takeaways
Key takeaways Integration of Continue short loop offering Umicore to grow in the focus on cost enhances line with the market competitiveness competitiveness of and maintain and regional product activities strong performance positioning 9
Slide 10: Precious Metals Refining
Precious Metals Refining Speaker Luc Gellens Senior Vice-President, Umicore Precious Metals Refining
Slide 11: Agenda
Agenda Business model Business Growth Key and competition drivers strategy takeaways 3
Slide 12: Agenda
Agenda Business model Business Growth Key and competition drivers strategy takeaways 4
Slide 13: Precious Metals Refining today
Precious Metals Refining today Largest and most complex precious metals recycling operation in the world World leading refiner of 20 different metals Processes more than 200 different types of raw materials World class environmental and quality standards 5
Slide 14: The value chain of metals
The value chain of metals 200+ materials to close the loop New Ores & Refined products concentrates metals SMELTERS MINES & REFINERS INDUSTRY CONSUMERS Complex Smelting Complex Complex mining & refining production end-of-life by-products residues scrap materials Industrial by-products Recyclables 86
Slide 15: Precious Metals Refining today: 6,400 lots, >500 customers
Precious Metals Refining today By-products Recyclables 6,400 lots >500 customers 7
Slide 16: How PMR generates revenues
How PMR generates revenues Main revenue drivers Treatment Metal yield & refining charges Treatment charges are Umicore assumes the risk determined, among other of recovery above or under criteria, by the complexity the contractually agreed of the materials. recovery rate. 8
Slide 17: Metal price exposure
Metal price exposure Managing the effects Metal price exposure of metal price movements on earnings Systematic hedging of Direct: Indirect: transactional exposure through metal through raw (pass through metal) yield material availability Depending on market conditions hedging of (part of) structural
Slide 18: Umicore has unique technology
Umicore has unique technology Umicore is unique due to its proprietary complex flowsheet that combines three metallurgical streams This enables Flexibility to treat Recovery & Ability to optimize Scope to broaden a broad range of valorization of feed and therefore to new types of input materials the
Slide 19: Umicore has unique technology
Umicore has unique technology • Umicore technology guarantees environmentally friendly processing, a high yield and a more competitive cost • PMR has invested heavily in new and advanced processes • PMR introduced its unique UHT technology for Battery Recycling four years ago 11
Slide 20: Competitive landscape
Competitive landscape None can take in the wide span of materials and metals Degree of Category Examples Products overlap Cu, Pb, Zn by-products Stolberg, Penoles, Glencore, containing precious metals Base metal (PM) • Most Tech Cominco, LS Nikko, Refiners Brixlegg competitors Some e-scrap are custo
Slide 21: Agenda
Agenda Business model Business Growth Key and competition drivers strategy takeaways 13
Slide 22: Long-term business drivers
Long-term business drivers Resource Increased complexity Eco-efficiency scarcity of materials Capture more value through capacity expansion, unique technologies and new streams of recycling 14
Slide 23: Resource scarcity
Resource scarcity Opportunity for PMR to process more materials Increase of production of metals Processing end of life products leads to more by-products from is necessary for a sustainable the base metals and PGM industry supply of metals Evolution of global production level 1980-2014 Pb (m tonnes
Slide 24: Increased complexity of materials
Increased complexity of materials Availability to increase for Umicore • Availability of complex concentrates on the rise which means higher complexity of by-products from primary refiners • Diversity and complexity in the recyclables market limits processing of these materials by base metals smelte
Slide 25: Eco-efficiency
Eco-efficiency Trend towards higher recycling rates • Base metal smelters are E-waste generated 41.8 million tonnes increasingly obliged to find an outlet in 2014 for their by-products Only 4 billion people are covered by national • Recycling markets of legislation end-of-life products to increase •
Slide 26: Agenda
Agenda Business model Business Growth Key and competition drivers strategy takeaways 18
Slide 27: Growth strategy 2015-2020
Growth strategy 2015-2020 Increase Continuous R&D to maintain Recycling in capacity upgrade of fixed technology development assets base leadership 19
Slide 28: Capacity increase is key to growth
Capacity increase is key to growth Projected Investment to increase volume evolution capacity at Hoboken by 40% Execution 2014-2015; ramp-up 2016-2017 Further improvement of competitiveness through economy of scale Refining charges will initially not 2014 2015 2016 2017 2018 follow the same pace as
Slide 29: Continuous upgrade of fixed asset base
Continuous upgrade of fixed asset base • Continuous improvement through investments in fixed assets will continue • Innovation remains critical in guaranteeing strong performance (environment, metal yield, cost) • Debottlenecking never stops 21
Slide 30: R&D to maintain technology leadership
R&D to maintain technology leadership • PMR continues to invest heavily in R&D • Innovative process technology ensures PMR remains the leader in complex metallurgy • Battery recycling technology, introduced in 2011, is offering options for future process improvements 50% 50% Hoboken in plant experim
Slide 31: Recycling development: battery recycling
Recycling development Battery recycling End-of-life Li-ion battery market • The demo plant is operational since 2011. Processing of spent 70,000 tonnes rechargeable batteries optimized and validated 60,000 50,000 • The market is set to develop strongly in the coming years 40,000 30,000 • By 2020, Um
Slide 32: Agenda
Agenda Business model Business Growth Key and competition drivers strategy takeaways 24
Slide 33: Key takeaways
Key takeaways Unique Increasing position in availability of complex complex recycling materials Active pursuit of Near-term growth driven growth avenues by 40% expansion of post 2020, Hoboken facility. Full including battery benefits from 2018. recycling 25