Umicore Sa · EURONEXT:UMI
Umicore Sa — Investor Presentation (May 2023)
107 slides from Umicore Sa's investor presentation, May 2023
Slide 1: Investor presentation May 2023
Investor presentation May 2023
Slide 2: Introducing Umicore
Introducing Umicore
Slide 3: Who we are
Who we are We deliver sustainable solutions to address global megatrends Our products and services accelerate global mobility transformation, cater for the growing need for advanced materials and enable even greater circularity for critical metals Growing Mobility need for We are the leading circula
Slide 4: Your global supplier, locally
Your global supplier, locally COLLEAGUES Europe North America 11,565 6,645 718 Asia / Pacific PRODUCTION SITES 17 3,348 9 44 7 13 1 R&D | TECHNICAL CENTERS 6 15 Africa South America 164 690 1 4 1 4
Slide 5: Our strongly rooted foundations
Our strongly rooted foundations Growing Unique Mobility need for Supportive transformation advanced business model materials megatrends INTERNAL DRIVER EXTERNAL DRIVER Industry leader in sustainability 5
Slide 6: Accelerating megatrends driving all activities
Accelerating megatrends driving all activities 6
Slide 7: Megatrends: Mobility Transformation
Megatrends: Mobility Transformation 7
Slide 8: Mobility transformation radically accelerating
Mobility transformation radically accelerating Uniquely positioned to help the world transition to cleaner mobility Internal Prime Full Electric ICE equipped Combustion Vehicle electrification vehicles will Engine path for light Battery active remain the Emission control materials transportation Cat
Slide 9: Automotive Catalysts
Automotive Catalysts Capture peak profitability and maximize value Embarking the mobility transformation together with our customers Strong technology position in light of upcoming emission legislation Long-standing partner in delivering cleaner air with embedded sustainability value through sustain
Slide 10: Rechargeable Battery Materials
Rechargeable Battery Materials Capture profitable growth and create sustainable value Value-creative strategic partnerships across the value chain Broad technology & IP portfolio covering design-to-performance and design-to-cost applications, incl. next-gen technologies Pioneering responsibly-source
Slide 11: Battery Recycling Solutions
Battery Recycling Solutions Capture profitable growth in circular battery value chain Supporting our customers with a circular offering from the start and ready to accelerate together Long-standing materials and process technology know-how Embedded sustainability value through sustainable recycling
Slide 12: Fuel Cell Catalysts
Fuel Cell Catalysts Capturing the emerging growth Long-term global leader in PEM fuel cell catalysts at industrial scale Industry-leading materials in terms of durability, performance and PGM loading Embedded sustainability value delivering high performance solutions for zero emissions transport Umi
Slide 13: Megatrends: Advanced Materials
Megatrends: Advanced Materials 13
Slide 14: Key enabling technology in various sectors
Key enabling technology in various sectors Attractive markets and differentiated technology Serving demanding Synergies in R&D, Circularity = efficient Key differentiator high-tech applications metal management and sustainable business model Cobalt & Plating, chemicals, automotive, Residues from too
Slide 15: Precious Metals Refining
Precious Metals Refining Leadership in sustainable, complex and low carbon recycling Trusted partner for more than 20 years, recovering 17 different metals from more than 200 complex waste streams Offering superior metal yields touching the full metal value chain with leading CO2 performance with ne
Slide 16: We Go for Zero: Sustainability Champion
We Go for Zero Sustainability Champion 16
Slide 17: Let's Go for Zero
Let's Go for Zero the ambitions behind being a Sustainability Net Zero GHG emissions by 2035 Champion Zero Zero harm inequality Net Zero GHG. Zero regrets. Endless possibilities. 17
Slide 18: Net Zero GHG emissions by 2035
Net Zero GHG emissions by 2035 Net Zero Scope 1+2 scope 1+2 792 000 tons CO2e baseline -50% -100% GHG -20% 2019 2025 2030 2035 Scope 3 -42% 7.1 tons CO2e/ton tons CO2e/ton purchased materials purchased materials intensity baseline committed 18
Slide 19: Zero inequality
Zero inequality WHERE WE ARE 11,565 WE GO FOR Gender parity in management as soon as possible, with Group employees TODAY 35% women in management by 2030 25% Women in management1 Increased cultural diversity 21.6% in management teams by 2025 Non-Europeans in senior management1 75 Measuring and discl
Slide 20: Zero harm
Zero harm • Minimizing impact Wellbeing @ work Sustainable sourcing on the environment champion • -25% diffuse emissions by Zero work related injuries 2025 with continuous Driving positive impact Zero excess exposure improvement of other types of in the value chain metal emissions Mental, physical,
Slide 21: 2030 RISE strategy: Growth, returns and cashflows
2030 RISE strategy Growth, returns and cashflows
Slide 22: Horizon 2020 strategy financial targets
Horizon 2020 strategy financial targets Delivered on financial targets 2015 – 2020 Targets 2020 Values 2021 Values CAGR revenues of 7 % 7% 9% Accelerating CAGR adj. EBITDA of 8 % 12 % 18 % profitable growth Double adj. EBIT to € 0.5bn by 2020 Achieved in 2018 Tripled by 2021 High investments & stron
Slide 23: Horizon 2020 strategy drove step-change
Horizon 2020 strategy drove step-change Doubled in size : earnings, capital employed and value 2015 STEP CHANGE 2021 CAGR 2015-2021 adj EBITDA Workforce (‘000) 8.8 + 26 % 11.1 +25% +21% +20% +18% Revenues (€ bn) 2.3 x 1.7 4.0 +15% +15% +15% adj EBITDA (€ bn) 0.47 x 2.7 1.25 +10% +5% Average Capital
Slide 24: Differentiated sources of value creation
Differentiated sources of value creation Balancing growth, returns and cash flows for the Group Value driver Low Contribution to Umicore’s value creation High • Attractive earnings growth driven by Earnings Rechargeable Battery Materials & growth Battery Recycling Solutions (adj EBITDA growth) • Gro
Slide 25: Umicore Group earnings growth ambition
Umicore Group earnings growth ambition Secular earnings growth while maintaining attractive historical margins 2,000 adj EBITDA Ambitious 2026 growth plan with 1,800 Double digit CAGR 1,600 at 2020 rates Rechargeable Battery Materials as 1,400 appr. € 1.5 bn transformative factor and growth in Catal
Slide 26: Growth investments to accelerate
Growth investments to accelerate Over 3/4th of Group capex in battery materials, battery recycling & fuel cells Capex 2015-2021 Capex 2022-2026* Bulk of Group capex oriented towards secular growth opportunities Catalysis E&ST Rechargeable Battery Materials € 2.8 bn Recycling > € 5 bn & Battery Recyc
Slide 27: Capital allocation shift to accelerate
Capital allocation shift to accelerate Doubling of capital employed subject to value creative returns Average Trend vector 2030 vs 2026 Close to doubling of average capital employed by Capital Employed 2026 (vs 2021) driven by Rechargeable Battery GROUP Materials & Battery Recycling Solutions Cataly
Slide 28: Capital allocation shift to accelerate
Capital allocation shift to accelerate Group returns above cost of capital with some temporary dilution in E&ST Catalysis E&ST Recycling GROUP ROCE ROCE ROCE ROCE 2015 - ’20 average – ~14 % 2015 - ’20 average – ~11 % 2015 - ’20 average – ~37 % 2015 - ’20 average – ~14 % Near-term returns Stay above
Slide 29: Operational cash flow profile
Operational cash flow profile Substantial free cash flows in Catalysis & Recycling reinvested into E&ST 9.000 Cumulative € 6 - 7 bn 7.000 cash flows 2022 - 2026 Group free Substantial free cash flows in 5.000 operational cash flow Catalysis and Recycling Catalysis appr. break even Accelerating furth
Slide 30: Funding levers
Funding levers From full autonomous funding to co-funding partnership model Policy unchanged : Maintain Investment Grade status Embedded in group strategy Optional Strong ESG- Co-funding Joint Grants Capital free focused partnership Venture and other Market operational debt funding model investment
Slide 31: 2022 overview
. umicore | 022 overview: Ae he ees a
Slide 32: Key milestones 2022 & Q1 2023
Key milestones 2022 & Q1 2023 Strong progress in executing 2030 RISE Customers & Contracts LT, strategic 46GWh supply agreement JV with VW PowerCo for 164 GWh CAM MoU with VW PowerCo for 40GWh in Mercedes-Benz honors Umicore AC for next generation Hi-Ni CAM with in Europe, a value-creative partnersh
Slide 33: Key milestones 2022
Key milestones 2022 Strong progress in executing 2030 RISE Regional Value Chains & Manufacturing Footprint Start of production of the CAM Gigafactory Building a Fuel Cell Catalyst plant in LT supply agreement with Terrafame for low MoU with Canadian Government, in Nysa (Poland), making Umicore the o
Slide 34: Key figures 2022
Key figures 2022 Resilient business performance in a volatile market Revenue bridge (€ m) 4,155 -2 Revenues Adj. EBITDA 3,791 276 89 € 4.2 bn € 1.2 bn 1.107 +10% yoy -8% yoy 1.108 1,278 1,001 Adj. Net profit, Adj. EBITDA 1,687 1,776 Group share margin FY 21 restated Catalysis E&ST Recycling FY 22 €
Slide 35: History of strong adj. EBITDA and margins
History of strong adj. EBITDA and margins Revenues1 (€m) 4.500 3.963 3.791 4.155 0,35 • Revenue (excl. metals) steadily 4.000 3.271 3.361 3.239 0,3 increasing the last 5 years, stable 2.093 1.814 3.500 1.737 3.000 0,25 on the first year of Covid 1.726 1.684 1.587 1.564 1.675 2.500 0,2 2.000 0,15 2.1
Slide 36: Free operating cash-flow remains strong
Free operating cash-flow remains strong Supporting future growth Operating cash-flow breakdown Cash flow from operations after Continued operations only ,€ Millions 1405 1177 1200 800 changes in working capital 627 707 1238 700 at € 835 million, driven by higher 835 549 603 167 working capital requi
Slide 37: Condensed consolidated P&L
Condensed consolidated P&L Solid net result € Million 2021 2022 • Increase in adj. net financial cost, Adjusted EBITDA 1,251 1,151 reflecting higher net interest charges, - Depr. & Amortization (280) (286) in particular on short term loans, and somewhat higher FX-related Adjusted EBIT 971 865 costs
Slide 38: Solid capital structure
Solid capital structure 1600 250,00% 1.443 1.414 1400 1,92 200,00% 1200 1,76 1.104 In 2022, 1000 960 • Net financial debt of 861 150,00% € 1.1 bn (€ +0.1 bn yoy) 800 600 1,19 0,96 100,00% • Leverage ratio of 0.96x LTM 0,77 adj EBITDA 400 35,2% 35,0% 50,00% 24,4% 23,3% 23,6% 200 0 0,00% 2018 2019 202
Slide 39: Stable net financial debt versus end 2021
Stable net financial debt versus end 2021 Leverage ratio of 0.96x LTM adj EBITDA Net cash-flow bridge (€ m) • Free operating cashflow of € 344 million, despite € 342 million increase in working capital and € 491 million investments • Funded a combined € 517 million cash outflow related to taxes, net
Slide 40: Q1 updated guidance for full year 2023
Q1 updated guidance for full year 2023 as published on 27 April, 2023 CATALYSIS E&ST RECYCLING Adj. EBIT/EBITDA expected somewhat Adj. EBIT/EBITDA anticipated Adj. EBIT/EBITDA expected to be in above 2022 record levels, slightly somewhat below 2022 level, slightly the lower range of current market a
Slide 41: Appendices
:; umicore materials fr a better life Appendices
Slide 42: Thank you!
Thank you! Investor Relations contacts: Subscribe to our press-release Caroline Kerremans HEAD OF INVESTOR RELATIONS Caroline.kerrements@eu.umicore.com Eva Behaeghe SENIOR INVESTOR RELATIONS MANAGER Eva.behaeghe@eu.umicore.com Adrien Raicher INVESTOR RELATIONS MANAGER Adrien.raicher@eu.umicore.com T
Slide 43: Disclaimer
Disclaimer This presentation is provided This presentation contains forward-looking information that involves risks solely for general information and uncertainties, including statements about Umicore’s plans, objectives, purposes about Umicore and expectations its activities. This presentation and
Slide 44: Additional information
Additional information 01 Business Group Overview 01.a Catalysis 01.b E&ST 01.c Recycling Shareholder structure, financial 02 calendar and leadership overview 03 Financial KPIs 04 Glossary 44
Slide 45: 01. Business Group Overview
:; umicore materials fr a better life 01. Business Group Overview
Slide 46: Catalysis
Catalysis Colleague working with robot at Umicore Catalysis Production Plant 46
Slide 47: Catalysis overview
Catalysis overview We are one of the leading producers of emission control catalysts for gasoline and Automotive diesel on-road and non-road applications, power generation and industrial processes Catalysts to meet environmental standards around the world. We are experts in metals-based catalysis fo
Slide 48: Catalysis: balancing growth, returns and cash flows
Catalysis Balancing growth, returns and cash flows Value driver Low Contribution to Umicore’s value creation High • Capture unprecedented value Earnings peak in Automotive Catalysts in Fuel the decade growth (adj EBITDA growth) Cells • Prepare growth acceleration in fuel cell catalysts after mid-dec
Slide 49: Catalysis: medium-term growth, efficiency and cash
Catalysis Committed to capture medium-term growth while driving efficiency & cash adj EBITDA Double digit CAGR 550 at 2020 rates 500 Close to 450 € 0.5 bn Mid single digit 400 € 0.4 bn CAGR 2021-2026 Attractive medium- term growth from 350 300 car market recovery, final legislation cycle 250 and HDD
Slide 50: Catalysis 2022 | Market context
Catalysis 2022 | Market context Subdued global car market over 2022 Annual global passenger car production (all ICE powertrains) • Continued global logistic disruptions, shortages of semi-conductors, COVID-19 resurgence (H1 in China) Millions 100 87,6 90 80 73,0 72,5 73,6 • Manufacturers reduced pro
Slide 51: Catalysis 2022 | Performance
Catalysis 2022 | Performance Revenues up 5%, adj. EBITDA margin at 23.6% Catalysis revenues (€ m) 1.687 1.776 1.750 1.460 1.500 1.360 1.364 Record performance, margins well above historical levels 1.250 780 879 1.000 652 743 794 750 Automotive Catalysts 500 • Outperformed global car market, 908 897
Slide 52: Catalysis 2022 | AC revenue composition
Catalysis 2022 | AC revenue composition AC delivers strong free operating cash-flows in a challenging context 2022 Automotive Catalysts revenues per segment Strong market position • Leading position in LDG segment, with marketshare HDD gains in most global markets in 2022 14% • Favorable customer an
Slide 53: Zoom in on Automotive Catalysts and Fuel Cell & Stationary Catalysts
Zoom in on Automotive Catalysts (AC) and Fuel Cell & Stationary Catalysts (FCS) 53
Slide 54: Capture peak in Automotive Catalysts and emerging growth in Fuel Cells
Catalysis: capture peak in Automotive Catalysts and emerging growth in Fuel Cells Fuel Cells: Automotive Catalysts: • Strong position in light-duty gasoline; prepare growth extending value capturing segment benefiting most from upcoming acceleration after through presence in most emissions legislati
Slide 55: Accelerating mobility transformation
Accelerating mobility transformation ICE remains dominant powertrain solution in 2030 Light-duty vehicles Heavy-duty vehicles Proportion by powertrain in global production Proportion by powertrain in global production Source: Umicore market model – LDV Source: Umicore market model – HDV (incl. mediu
Slide 56: Attractive value to capture the next decade
Attractive value to capture the next decade Emission catalyst market moving towards unprecedented value peak Light, Medium & Heavy-Duty Vehicles Global automotive catalyst volumes (liters) Value growth driven by market -2% rebound and tighter legislation CAGR -4% +14% CAGR for light-duty and heavy-d
Slide 57: Automotive Catalysts – RISE
Automotive Catalysts – RISE Capture peak profitability and maximize value Capture maximum value from market peak • Maintain strong position in light- duty gasoline catalysts globally • Continued growth in heavy-duty catalysts in China and Europe EMBARKING THE STRONG LONGSTANDING ORGANIZATIONAL MOBIL
Slide 58: PEM catalyst market to witness exponential growth towards 2040
PEM catalyst market to witness exponential growth towards 2040 Total cathode materials Global PEM demandregulatory Strong to grow dramatically support for 300 – 400 tons catalyst demand towards 2030, hydrogen primarily economy driven in Europe per application (t) by light-duty and EVs segment APAC r
Slide 59: Fuel Cells – RISE
Fuel Cells – RISE Capture emerging growth as leading fuel cell catalyst provider Capture near term growth in fuel cells for HDV/MDV and long range LDV BUILDING BENCHMARK KEY PARTNER SCALING-UP CUSTOMER MATERIALS – FOR THE PRODUCTION COOPERATIONS INNOVATION AND TRANSITION TO FOOTPRINT IN Adjacent opp
Slide 60: E&ST
E&ST Colleague working on the next generation of CAM in Umicore Process Competence Center, in Olen 60
Slide 61: Energy & Surface Technologies overview
Energy & Surface Technologies overview Rechargeable We are a pioneer in battery materials and a leading cathode material supplier for Battery rechargeable lithium-ion batteries, giving added range and performance to electric Materials vehicles, and longer battery life for portable electronics. We ar
Slide 62: E&ST: balancing growth, returns and cash flows
E&ST Balancing growth, returns and cash flows Value driver Low Contribution to Umicore’s value creation High • Unprecedented Earnings transformational growth in growth Rechargeable Battery (adj EBITDA growth) Materials Cost of • Partial payback by 2026 from high Return-driver Capital growth investme
Slide 63: E&ST: Rechargeable Battery Materials to drive transformative growth
E&ST Rechargeable Battery Materials to drive transformative growth 900 adj EBITDA 800 Non-linear 700 € 0.6 to 0.8 bn appr. 20% CAGR Step-change in revenues & earnings as 600 2021-2026 + 15 % CAGR or x 2.3 or appr. x 2.5 from mid-decade driven by Rechargeable 500 Battery Materials 400 € 0.26 bn 300 2
Slide 64: E&ST 2022 | Market context
E&ST 2022 | Market context Lithium price blasts mid-2021 Weighting battery powder in Olen, Process Lithium carbonate (EUR/kg) competence center 90 80 70 60 50 40 30 20 10 0 Average 2021 Average 2022 30/12/2022 spot price 14 €/kg 68 €/kg 75 €/kg 64
Slide 65: E&ST 2022 | Market context
E&ST 2022 | Market context EV sales reached 10% of global new vehicles sales in 2022 • Mobility transformation – rapid acceleration continues • Regulatory push: EU zero-CO2 target in 2035 and US Inflation Reduction Act • Higher customer demand for EVs • Car OEMs commit to significant investments to
Slide 66: CAM Capacity Development
CAM Capacity Development Structural CAM undersupply European addressable CAM market supply & demand balance (GWh, excl. LFP) 1049 • 2022 - 2030 – NMC pCAM and CAM manufacturing 648 capacity in EU & N-A insufficient to cover local demand -28% • Supply gap to be only temporarily bridged from Asia: -73
Slide 67: E&ST 2022 | Performance
E&ST 2022 | Performance Revenues (€ m) Revenues +28%, adj. EBITDA margin at 22.3% 1.289 1.225 1.278 1.250 1.174 1.045 1.001 Higher revenues and earnings in RBM and CSM 1.000 639 618 580 646 750 488 504 500 Rechargeable Battery Materials 650 631 250 607 557 594 498 • As anticipated, sales volumes of
Slide 68: Zoom in on Rechargeable Battery Materials (RBM)
Zoom in on Rechargeable Battery Materials (RBM) 68
Slide 69: Electrification increasing at fast pace
Electrification increasing at fast pace, triggered by regulatory push and OEM commitments Light-duty vehicles Medium- and Heavy-duty vehicles Proportion by powertrain Proportion by powertrain in global car production in global car production Source: Umicore market model Source: Umicore market model
Slide 70: Umicore chemistries addressing ~75% of Light-duty EV CAM demand
Umicore chemistries addressing ~75% of total Light-duty EV CAM demand Global CAM Evolving technologies demand (GWh) 2,400 reflecting car OEMs’ need for LDV only – performance- and cost-focused Chemistry split ~25% Umicore solutions CAGR addressable market, covering ~75% design- NM(C) chemistries (in
Slide 71: >20% annual market growth across all regions
>20% annual market growth across all regions CAM demand (GWh) across regions LDV only EUROPE NORTH AMERICA Europe, China and 1000 1000 900 ~25% 900 North America 800 800 700 CAGR 700 ~22% expected to represent 600 600 CAGR 500 500 400 ~90% of total LDV 400 300 200 300 200 CAM demand 100 100 0 0 2022
Slide 72: Rechargeable Battery Materials - the plan to 2030
Rechargeable Battery Materials - the plan to 2030 GWh >400 High-Nickel Battery chemistry High-Nickel High-Nickel HLM Solid State CAM Mid-Nickel Production at scale Mid-Nickel Solid State Catholyte Mid-Nickel HV Mid-Nickel HV GWh 230 Korea China Europe Europe 1/2 2/2 North America GWh 65 GWh 15 2015
Slide 73: Cathode active materials crucial for the mobility transformation
Cathode active materials crucial for the mobility transformation … CAM critical component determining electrification success Key Biggest single Critical driver of technological contributor to long-term cell lever for battery overall battery technology performance cost strategy 73
Slide 74: Requiring critical competences and skills
… requiring critical competences and skills for CAM producers to succeed Product Process Supply High performance and quality Mastering complexity and Strategic access to raw materials product with customized end specs flexibility of production process – low carbon intensity, highest ESG requirements
Slide 75: Rechargeable Battery Materials – RISE
Rechargeable Battery Materials – RISE Capture profitable growth and create sustainable value Extend leadership in Europe Enter North America with local production VALUE CREATIVE TECHNOLOGY & IP KEY PARTNER STEP-CHANGE STRATEGIC PORTFOLIO IN TRANSITION IN PROCESS, PARTNERSHIPS COVERING TO LOW CARBON
Slide 76: Recycling
Recycling Hoboken, main central building 76
Slide 77: Recycling overview
Recycling overview We operate the world’s most sophisticated precious metals recycling facility and we Precious Metals are experts in treating the most complex materials. Our refining and recycling Refining technology gives used metals a new lease of life. Our processes help bring value to the circu
Slide 78: Recycling: balancing growth, returns and cash flows
Recycling Balancing growth, returns and cash flows Value driver Low Contribution to Umicore’s value creation High Normalizing Stable • Earnings path to depend on Earnings PGM prices PGM prices prevailing metal prices growth Battery (adj EBITDA growth) • Initial battery recycling payback Recycling se
Slide 79: Recycling: strong margins, returns and cash flows
Recycling Strong margins, returns & cash flows and Battery Recycling kicking in mid-decade € 0.64 bn 700 adj EBITDA + 21 % CAGR High single digit 600 + 14 % at 2020 rates CAGR at 2020 rates Close to Earnings dependent on assumed metal 500 € 0.5 bn normalization well prices but continue to generating
Slide 80: Recycling 2022 | Market context
Recycling 2022 | Market context Volatile precious metal prices Rhodium (KEUR/kg) 900 Hoboken plant 800 700 600 500 400 300 200 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Rh price 2021 Rh price 2022 Average 2021 Average 2022 30/12/2022 spot price 544 K€/kg 472 K€/kg 369 K€/kg Information a
Slide 81: Recycling 2022 | Performance
Recycling 2022 | Performance Stable revenues, adj. EBITDA margin at 48.1% Revenues (€ m) 1.250 1.108 1.107 1.000 836 Excellent operational performance, tempered by inflation 681 457 569 750 626 headwinds and a less favorable precious metal price environment 396 500 300 368 250 652 537 327 313 440 Pr
Slide 82: Zoom in on Precious Metal Refining and Battery Recycling Solutions
Zoom in on Precious Metal Refining (PMR) and Battery Recycling Solutions (BRS) 82
Slide 83: Precious Metals Refining as platform for Battery Recycling
Recycling: Precious Metals Refining as solid platform to enable success in Battery Recycling EBITDA >30% of Business Precious Metals Refining Group Undisputed leader in complex precious metals recycling EBITDA with minimized carbon footprint Battery Recycling 2022 2026 2030 Battery Recycling: Batter
Slide 84: Precious Metal Refining
Precious Metal Refining Largest and most complex precious metals recycling operation in the world Leading refiner of 17 different metals Processes more than 200 different types of raw materials World class environmental and quality standards 84
Slide 85: The value chain of metals
The value chain of metals Ores & Refined New concentrates metals products Smelters Consumers Mines Industry & refiners Complex mining Smelting Complex Complex concentrates & refining production end-of-life & residues residues scrap materials Industrial by-products End-of life materials 85
Slide 86: Revenue Drivers
Revenue Drivers Main revenue drivers Treatment & refining Metal yield charges Treatment charges are Umicore assumes the risk determined, among other of recovery above or criteria, by the complexity under the contractually of the materials agreed recovery rate 86
Slide 87: Metal price exposure
Metal price exposure Managing the effects of metal price movements Direct: Indirect: on earnings through metal through raw Systematic hedging of yield material availability transactional exposure Depending on market conditions hedging of (part of) structural metal price exposure through contractual
Slide 88: Umicore has unique technology
Umicore has unique technology Umicore is unique due to its proprietary complex flowsheet that combines three metallurgical streams This enables Ability to optimize Flexibility to treat Recovery & Scope to broaden feed and a broad range of valorization of the to new types of therefore input materials
Slide 89: Production scrap primary source of supply towards 2030
Production scrap primary source of supply towards 2030 End-of-life 2500 EV batteries and production scrap available for recycling (kMT, global) Total cathode materials Continuous startup of battery demand to grow dramatically 2000 plants towards expected to produce 2030, primarily driven significant
Slide 90: Global recycling need accelerating significantly post 2030
Global recycling need accelerating significantly post 2030 Robust technology to cope with feed mix changes End-of-life EV batteries and production scrap available Total cathode materials for recycling – per region (kMT, global) From 2030 end-of-life demand to grow dramatically 7.000 expected to beco
Slide 91: Recycling is crucial for the mobility transformation
Recycling is crucial for the mobility transformation… Recycling as SECURING critical additional RAW MAJOR Multiple use of source of supply MATERIALS ESG minerals versus single ADVANTAGES use of fossil fuels Upcoming recycled content targets Mandatory End-of-Life for new battery production battery re
Slide 92: Requiring critical competences and skills for battery recyclers
…requiring critical competences and skills for battery recyclers to succeed Process Product Services Effective volume & mass reduction at Output of high-quality battery Capability to collect and treat a wide massive scale (> 100kt/y) grade materials (no downcycling) variety of materials (production
Slide 93: Battery Recycling Solutions – RISE
Battery Recycling Solutions – RISE Capture profitable growth in circular battery value chain Scale up as frontrunner in Europe and prepare industrial presence in North America Leverage the optimal SUPPORTING OUR SCIENCE MEETS KEY ENABLER SCALABLE pyro-hydro balance as CUSTOMERS WITH BUSINESS: FOR TH
Slide 94: 02. Shareholder structure, financial calendar and leadership overview
02. Shareholder Structure, Shareholder structure, financial calendar and leadership overview
Slide 95: Shareholder structure
Shareholder structure Worldwide presence with mixed investor styles shareholders Share – Geographical and investment style distribution(1) Key shareholders(2) Remainder; 7% Firms % RoW; GARP; Groupe Bruxelles Lambert S.A. 15.98% 14% 12% Norway; Baillie Gifford & Co and Baillie Gifford United 9.91% 1
Slide 96: Financial calendar
Financial calendar 28 March 2023 Annual report 2022 27 April 2023 AGM 2022 ` 02 May 2023 Ex-dividend trading date 03 May 2023 Record date for the dividend 04 May 2023 Payment date for the dividend 28 July 2023 Half-year results 2023 Title 96
Slide 97: Umicore Leadership overview
Umicore Leadership overview Mathias Miedreich Chief Executive Officer Wannes Frank Géraldine Bart Ralph Denis Peferoen Daufenbach Nolens Sap Kiessling Goffaux Chief Financial Officer Chief Strategy Officer Executive Vice-President Executive Vice-President Executive Vice-President Executive Vice-Pres
Slide 98: 03. Financial KPIs
_ umicore materials fer a bette, life 03. Financial KPIs 2022
Slide 99: Financial KPIs
Financial KPIs (in million €) 2021 2022 Turnover 24.054 25.436 Revenues (excluding metal) (*) 3.791 4.155 Adjusted EBITDA 1.251 1.151 Adjusted EBIT 971 865 of which associates 21 16 EBIT adjustments (75) (32) Total EBIT 896 832 Adjusted EBIT margin (*) 25.1% 20.4% Effective adjusted tax rate 23.1% 2
Slide 100: Business Group key figures
Business Group key figures CATALYSIS ENERGY & SURFACE TECHNOLOGIES RECYCLING FY FY FY FY FY FY (in million €) 2021 2022 (in million €) 2021 2022 (in million €) 2021 2022 Total turnover 8.155 7.738 Total turnover 3.534 4.974 Total turnover 15.609 15.338 Total revenues (excluding metal) 1.687 1.776 Re
Slide 101: 04. Glossary
:; umicore materials fr a better life 04. Glossary
Slide 102: Glossary
Glossary The below definitions cover Umicore’s main financial Alternative Performance Measures (non-IFRS definitions). Adjusted EBIT: EBIT - EBIT adjustments. Effective adjusted tax rate: Adjusted tax charge / adjusted profit (loss) before income tax of fully consolidated companies. Adjusted EBIT ma
Slide 103: Glossary: Catalysis
Glossary The below definitions cover Umicore’s main business & technical abbreviations Catalysis Glossary Automotive platform: A shared set of common design, engineering and production efforts as well as major components over a number of outwardly distinct models of vehicles Catalysis/catalyst: Cata
Slide 104: Glossary: Rechargeable Battery Materials
Glossary The below definitions cover Umicore’s main business & technical abbreviations Rechargeable Battery Materials Glossary: Battery Electric Vehicle (BEV): full electric vehicle Cathode active materials (CAM): The cathode is the positive side in a (rechargeable) lithium-ion battery. In the charg
Slide 105: Glossary: Recycling
Glossary The below definitions cover Umicore’s main business & technical abbreviations Recycling Glossary: Closed loop: For Umicore a “closed loop” involves taking back secondary materials from customers (e.g. production residues) or End-of-Life materials (e.g. used mobile phones, automotive catalys
Slide 106: Glossary: ESG performance measures
Glossary The below definitions cover ESG-related Performance Measures Scope 1 CO2e emissions: A reporting organization’s direct GHG emissions. CO2 equivalent (CO2e): The universal unit of measurement to indicate the global warming potential (GWP) of each of the six greenhouse gases, expressed in ter
Slide 107: Umicore
. umicore materials fr a better, life