Umicore Sa · EURONEXT:UMI
Umicore Sa — Investor Day (November 2010)
43 slides from Umicore Sa's investor day presentation, Nov 18, 2010
Slide 1: Vision 2015
Vision 2015 Marc Grynberg – CEO Capital Markets Event on Recycling – 18-19 Nov 2010
Slide 2: Agenda
Agenda • Strategy 2011-2015 overview • Growth ambitions in Vision 2015 • Catalysis • Energy Materials • Performance Materials • Recycling • Investment profile and status • Environmental & social objectives 2011-2015 2
Slide 3: Strategy 2011-2015 overview
Strategy 2011-2015 overview
Slide 4: Our journey
Our journey 1990s Late’90s-’00s Mid-’00s Late’00s-’10s Building for the Industrial Plan Product focus Transformation Laying the foundations for Build the downstream Transforming divestments future financial survival product businesses and acquisitions Increasing focus on clean technologies Dealing w
Slide 5: Our strategy: Vision 2015
Our strategy: Vision 2015 Clear growth focus • Rechargeable battery materials for (H)EV • Emission control catalysts • Materials for PV • Recycling + One integrated sustainable Innovation as a = development strategy…. differentiator for success in all areas + Performance-based environmental and soci
Slide 6: Growth opportunities aligned with megatrends
Growth opportunities aligned with megatrends Expand recycling, Expand especially through UHT Automotive Catalysts technology into new segments Develop Umicore’s Rechargeable battery presence in materials materials for electrified for photovoltaics vehicles 6
Slide 7: Growth opportunities aligned with megatrends
Growth opportunities aligned with megatrends Resource scarcity More stringent emission control Renewable energy Electrification of the automobile 7
Slide 8: Growth opportunities: selection criteria
Growth opportunities: selection criteria 9 market potential 9 profitability potential 9 potential to reach a critical size 9 technological competencies 9 distinctive technology edge 9 competitive landscape 9 risks vs reward 8
Slide 9: Organization adapted to support this focus
Organization adapted to support this focus Energy Materials Recycling Electro- Precious Thin Film Battery Optic Metals Products Recycling Materials Management Metallurgy Cobalt & Precious Jewellery & Chemistry Specialty Metals Industrial Materials Materials Refining Metals science Materials Building
Slide 10: Growth ambitions in Vision 2015
Growth ambitions in Vision 2015
Slide 11: Umicore growth ambitions
Umicore growth ambitions • New market developments offer the potential for Catalysis, Energy Materials and Recycling to achieve average annual double digit growth between now and 2015 / 2020 • Performance Materials is expected to develop in order to grow at global GDP rate • The growth will not be l
Slide 12: Investments
Investments Organic growth investments • To generate the high levels of growth, major investments will be required and average capital expenditure is expected to increase between 2010 and 2015 • The largest projects will be in areas for exceptional growth • Ample investments will be made in other bu
Slide 13: Energy Materials
Optics Co Batteries Photovoltaics Ge Ni Pigments Energy Materials In Zn Displays Tools
Slide 14: Key growth area: rechargeable battery materials
Key growth area: rechargeable battery materials The market Umicore’s position • The main growth driver is the • Umicore is a renowned leader in materials electrification of the car for batteries used in portable electronics • By 2015 HEV, PHEV and EV are expected to • Umicore is a pioneer in new cat
Slide 15: Cathode material demand projections
Cathode material demand projections Examples of cathode material required Cathode material demand (in tonnes) 200,000 2010 Notebook Netbook 180,000 10g x 1.2bn = 12,000 tonnes Handset Power tools 160,000 HEV EV PHEV 2010 140,000 100g x 170m = 17,000 tonnes 120,000 100,000 2020 80,000 3-5kg x 4.5m =
Slide 16: Key growth area: materials for photovoltaics (PV)
Key growth area: materials for photovoltaics (PV) The market Umicore’s position • Photovoltaics set to make up an • Umicore is the world leader in germanium increasingly significant portion of the substrates used in concentrator PV energy mix in the coming years • Umicore is introducing new material
Slide 17: Perspectives in main PV areas where Umicore is present
Perspectives in main PV areas where Umicore is present Projected CPV market evolution Projected thin film market evolution 4 30 CIGS TFSi 25 CdTe 3 G W insta lled ca pa city G W insta lled ca pa city 20 2 15 10 1 5 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2
Slide 18: Overall perspectives in Energy Materials
Overall perspectives in Energy Materials • Investments have been stepped up to ensure a strong platform for the key growth areas • Rechargeable battery materials expansion in Japan, Korea and China • New investment wave in TFP • Completion of substrates expansion in US • Other businesses have the op
Slide 19: Catalysis
Pd Rh Emission Pt control Catalysis & other Ru Ir catalysts
Slide 20: Key growth area: heavy duty diesel (HDD)
Key growth area: heavy duty diesel (HDD) The market Umicore’s position • HDD offers a significant opportunity for • Umicore has developed a full and incremental growth in medium term for competitive technology portfolio for on- Catalysis road & non-road applications • Tighter emission legislation is
Slide 21: The HDD market
The HDD market Potential evolution of HDD market On Road Euro VI (2013) On Road Euro IV (2012) in €bn (ex pgms)* Off Road Euro V (2014) Tier 4i, Tier 4F 3,0 (2013/2014) On Road Euro IV (2014) Off Road Tier 4 (2013) 2,5 CAGR of +20% ex substrates 2010- On Road 2015 EPA2010 Off Road 2,0 Tier 4i, Tier
Slide 22: Key growth area: catalysts for light duty vehicles
Key growth area: catalysts for light duty vehicles The market Umicore’s position • In addition to the heavy duty diesel • Umicore is one of three leading players opportunity there are new developments worldwide in light duty technology requirements • Umicore has a full range of technologies • The ne
Slide 23: The light duty emission control market
The light duty emission control market Evolution of emission norms Vehicle Production (in million cars) 100 RoW Greater China EU Euro 5 Euro 6 Umicore South America leadership 80 Europe position South Korea US Tier 3 North America Japan 60 Brazil Euro 4 Euro 5 China Euro 4 Euro 5 40 India BS 4 20 20
Slide 24: Total growth perspectives in automotive catalyst market
Total growth perspectives in automotive catalyst market Potential evolution of total automotive catalyst market 2010-2015 (€bn ex. pgms) 7 6 6 CAGR of 10% ex substrates 2010- 2015 5 4 3,5 Substrates 3 2 1 0 2010 2015 Source: CSM NB: the market does not show marine or locomotive off-road market poten
Slide 25: Overall perspectives in Catalysis
Overall perspectives in Catalysis • The largest growth opportunities within the segment exist in Automotive Catalysts • There are additional growth opportunities in other areas of Catalysis such as homogeneous catalysis and active pharmaceutical ingredients (APIs) • The presence in new markets provi
Slide 26: Performance Materials
Electrics Au Ag Electronics Performance Pt Pd Rh Ru Ir Zn Construction Chemicals Materials Pharma
Slide 27: Overview of Performance Materials
Overview of Performance Materials The market Umicore’s position • Application areas served by Umicore are • Umicore has leadership positions in Europe growing in most product areas • Health and environmental considerations • Umicore has successfully grown its are driving the need for new material bu
Slide 28: Performance Materials Key development opportunities
Performance Materials Key development opportunities • Maximize the potential of zinc for use on roofs and façades of energy efficient and environmentally- friendly buildings • Further development of new geographical markets in Building Products Facelift in Hoboken using Umicore’s zinc products • Fur
Slide 29: Performance Materials Key development opportunities
Performance Materials Key development opportunities • Potential expansion of the Platinum Engineered Materials business in Asia and Eastern Europe • New product development in the Electroplating business towards environmentally-friendly electrolytes Electroplating • Introduction of increasingly cust
Slide 30: Overall perspectives in Performance Materials
Overall perspectives in Performance Materials • In Performance Materials we are Turnover developing the business to grow in line (for 2009, by destination) with global GDP Africa Asia / 1% • In many instances this will require Pacific 19% businesses to further develop their presence in non-European
Slide 31: Recycling
Ag Au Industrial Pt Pd Rh Ru Ir residues In Se Te Sn Bi Recycling Cu Pb Ni Sb As End-of-life materials
Slide 32: Key growth area: battery recycling
Key growth area: battery recycling The market Umicore’s position • The increasing use of rechargeable • Umicore has a unique, patented batteries requires new recycling solutions technology especially for larger battery types used in electrified vehicles • The process is effective, efficient and envi
Slide 33: Overall perspectives in Recycling
Overall perspectives in Recycling • The unique Precious Metals Refining operation is set to continue its excellent performance and generate outstanding returns • Possibilities are being explored to apply UHT technology to other input streams than rechargeable batteries • Supply conditions are set to
Slide 34: Key messages for Recycling
Key messages for Recycling • Uniqueness in: • Technology • Complexity of materials treated • Number of metals recovered • Supportive environment: • Scarcity of materials • Increasing materials complexity • Legislation and other social / environmental pressures 34
Slide 35: Environmental & social objectives 2011-2015
Environmental & social objectives 2011-2015
Slide 36: New environmental and social objectives
New environmental and social objectives • The current set of 10 environmental and social objectives run from 2006-2010 • These objectives were designed to raise the level of awareness and preparedness through the Group and were qualitative in nature • Excellent progress with most objectives met or c
Slide 37: Great place to work
Great place to work ZERO lost time We aim to have ZERO lost time accidents accidents We will reduce the body concentrations of specific metals Occupational to which our employees have an exposure: exposure reduction Cd, Pb, Co, Ni, As, Pt All employees will receive an annual appraisal to discuss Peo
Slide 38: Eco-efficiency
Eco-efficiency We will reduce our CO2 emissions by 20% = a reduction Reduce carbon of some 100,000 tonnes per year vs footprint 2006 levels and based on 2006 industrial scope We will reduce by 20% the impact of metal emissions to Emission reduction water and air vs 2009 levels and based on 2009 indu
Slide 39: Stakeholder engagement
Stakeholder engagement Sustainable We will implement the new Sustainable Procurement procurement Charter throughout the Group All our sites will be expected to make further steps in Local community identifying key stakeholders and engaging with the local community 39
Slide 40: Summary
Summary
Slide 41: Strategic roadmap
Strategic roadmap 2010-2012 2012-2015 2015+ Prepare Focus Accelerate Regain profitability Intensification of investment Acceleration of growth of 2007-2008 efforts Optimum economic, Lay the foundations for certain Initial pay-off for major environmental and social major growth initiatives growth ini
Slide 42: 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 43: Marc Grynberg
Marc Grynberg Chief Executive Officer Marc Grynberg was appointed Chief Executive Officer of Umicore in November 2008, succeeding Thomas Leysen. He joined Umicore in 1996 as Group Controller. He was Umicore’s CFO from 2000 until 2006, after which he became the head of the Group’s Automotive Catalyst