Umicore Sa · EURONEXT:UMI
Umicore Sa — FY2020 Earnings Presentation
27 slides from Umicore Sa's earnings presentation, Feb 11, 2021
Slide 1: Umicore FY 2020 performance
Umicore FY 2020 performance 11 February 2021
Slide 2: Overview
Overview Highlights 2020 2021 outlook Maintaining strategic course while responding effectively to COVID-19 crisis 2020 business review 2020 financial review Wrap-up Q&A Umicore FY 2020 performance 2
Slide 3: Highlights 2020
Highlights 2020 Record earnings in unprecedented conditions ENERGY & SURFACE CATALYSIS TECHNOLOGIES RECYCLING Significant impact of pandemic Impact of pandemic on several end-markets Record performance with a on automotive market in H1 nearly doubling of adj. EBIT Umicore disproportionately Excludin
Slide 4: 2021 outlook
:; umicore materials fr a better life 2021 outlook
Slide 5: 2021 outlook
2021 outlook Umicore expects to achieve substantial growth in earnings in 2021, with growth in all business Groups Given the current limited visibility, this outlook statement is made under the assumption that the ongoing COVID-19 outbreak would not result in additional material or protracted disrup
Slide 6: Maintaining the strategic course while responding effectively to the COVID-19 crisis
Maintaining the strategic course while responding effectively to the COVID-19 crisis
Slide 7: Maintaining the strategic course…
Maintaining the strategic course… Strong regulatory drivers Umicore committed to strategic underpin Umicore’s growth investments in clean mobility strategy and recycling EU ambition : zero-emission mobility Greenfield cathode materials plant in Poland : China : Commissioning by end of H1 2021 NEV su
Slide 8: … while responding effectively to the COVID-19 crisis
… while responding effectively to the COVID-19 crisis Health & safety Strong capital Production and liquidity footprint management reassessment Remain top priority Strict cost Consolidation of Strict hygiene and management North American other precautionary Optimization of Automotive Catalysts measu
Slide 9: 2020 business review
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Slide 10: Key figures FY 2020
Key figures FY 2020 REVENUES Adjusted EBIT Free Operating Cash Flow € 167 m (- € 39 m in 2019) € 3.2 bn € 536 m Net debt at € 1,414 m -4% YoY +5% YoY Net debt / LTM Adj. EBITDA 1.76x Adjusted NET PROFIT Adjusted EBITDA CAPEX € 403 m (Group share) € 322 m € 804 m Adjusted EPS € 1.34 Proposed gross an
Slide 11: COVID-19 outbreak: significant impact on auto-industry
COVID-19 outbreak: significant impact on auto-industry FY 2020 YoY evolution of passenger car production across all powertrains (source: IHS & Umicore - 31/12/2020) China Europe North America Global market 21% 16% 20% 12% 9% 6% 5% 5% 3% 3% 3% 3% 1% 6% 3% 3% 1% 3% -1% -2% -2% -2% -4% -6% -5% -8% -7%
Slide 12: Catalysis FY 2020 performance
Catalysis FY 2020 performance Revenues -7% and Adj. EBIT -17%; reflecting severe impact from the pandemic in H1 REVENUES 1,360 1,460 1,364 1,500 1,253 1,163 Automotive Catalysts 1,200 743 652 794 900 565 620 Revenue decline much lower than global car market contraction 600 300 598 633 709 717 Dispro
Slide 13: EV battery demand evolution
EV battery demand evolution Evolution global EV LDV battery demand (GWh) Global market 140 120% Global EV battery market up 17% to 137 137 GWh, driven by Europe 120 100% 100% 100 Regional differences in demand patterns: 79% 80% 80 60% 60% Little year-on-year growth in China, well 60 below industry a
Slide 14: E&ST FY 2020 performance
E&ST FY 2020 performance Revenues -15%; Adj. EBIT -59%; severe COVID-19 impact and significant negative operating leverage REVENUES Rechargeable Battery Materials Lower cathode materials revenues: higher NMC volumes for 1,500 1,289 1,225 EVs; lower LCO and ESS volumes 1,250 1,045 1,000 894 Pricing p
Slide 15: Recycling FY 2020 performance
Recycling FY 2020 performance An exceptional metal price environment, in particular for rhodium Rhodium (EUR/kg) Palladium (EUR/kg) Gold (EUR/kg) 500,000 100,000 100,000 Historically high and volatile 450,000 +148% 90,000 +12% 90,000 +33% precious and PGM price levels in 400,000 Dec. 2019/2020* 80,0
Slide 16: Recycling FY 2020 performance
Recycling FY 2020 performance Revenues +23%; Adj. EBIT +92%; higher metal prices and to a lesser extent favorable trading conditions and supply mix REVENUES 1,000 836 Precious Metals Recycling 750 641 650 626 681 396 Higher metal prices, particularly for PGMs 500 318 311 300 368 Supportive supply en
Slide 17: 2020 financial review
_ umicore materials fer a bette, life 2020 financial review
Slide 18: Record Adj. EBIT(DA) and margins driven by Recycling
Record Adj. EBIT(DA) and margins driven by Recycling Adj. EBIT & Adj. EBIT margin Record adj. EBIT (€ 536 m) and record adj. EBIT margin 16.3% 800 15.5% 14.8% 16.0% Stellar adj. EBIT growth in Recycling more than offset 13.2% 12.6% 513 536 14.0% decreases in Catalysis and E&ST. 600 509 12.0% 398 10.
Slide 19: Pronounced operating leverage effects
Pronounced operating leverage effects 1H 2020 FY 2020 2H 2020 Group (YoY delta in %) 1H 2020 2H 2020 FY 2020 Revenues -4% -3% -4% Adj. EBITDA +5% +8% +7% Adj. EBIT +1% +9% +5% Umicore FY 2020 performance
Slide 20: Full P&L
Full P&L Million € FY 2019 FY 2020 Adjusted EBIT 508.9 536.4 Slight increase in Adj. net Group - Net finance cost (83.2) (104.2) result and Adj. EPS - Adjusted Tax (102.5) (102.7) Adjusted net result 323.1 329.4 Higher interest charges mainly - Minorities (11.4) (7.0) due to higher financial debt Ad
Slide 21: Substantial adjustments to EBIT
Substantial adjustments to EBIT 1H 2020 2H 2020 FY 2020 - € 237 m EBIT Million € adjustments : Restructuring-related (31) (97) (128) • 1H : concentrated in Catalysis (31) (14) • 2H : concentrated in E&ST and Selected asset-impairments Million €(45) Recycling Environmental (1) (55) (56) (9) 1 • >50%
Slide 22: Increase in free operating cash flows
Increase in free operating cash flows million €, continued operations only 1000 800 489 627 707 Cash flow from operations before changes in 603 500 436 444 549 working capital up 13 % at € 707 m 431 213 323 0 13 92 Increase in cash working capital of € 104 m -113 -78 -104 mostly driven by higher PGM
Slide 23: Net cash flow bridge
Net cash flow bridge million € 650 Free operating cashflow of 600 € 168 million resulting in a 550 € 29 million decrease in 500 reported net debt 450 400 350 603 435 € 44 million portion of 300 convertible bond accounted for 250 as equity 200 150 79 100 Dividend cash out of € 60 m 168 56 limited to
Slide 24: Further strengthening and diversification of funding base
Further strengthening and diversification of funding base Harmonize million to m 31.1% 35.2% 35.0% 24.4% 13.8% 1.92 1500 1.76 1.9 1400 1300 1.40 Stable net financial debt of € 1,414 m, 1200 1.19 1.4 1100 slightly below the level of end 2019 1000 Gearing ratio 900 0.9 800 0.56 1443 700 1414 600 0.4
Slide 25: Wrap-up
:; umicore materials fr a better life Wrap-up
Slide 26: Wrap-up
Wrap-up Maintaining strategic course and commitment to growth investments in clean mobility and recycling while responding effectively to the COVID-19 crisis Strongest financial Success of Horizon 2020 performance ever despite strategy, building on unprecedented conditions complementarity of activit
Slide 27: Financial calendar
Financial calendar 26 March 2021 Publication of 2020 annual report 29 April 2021 Annual General Meeting of Shareholders 3 May 2021 Ex-dividend date 4 May 2021 Record date for the dividend 5 May 2021 Dividend payment date 30 July 2020 Half Year Results 2021 ` Link to all documents related to Umicore’